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HomeMy WebLinkAboutDEPARTMENTAL BUDGET REVIEWS and CALL-BACKS FOR FY 2012-13, 4/3/2012-4/24/2012 COMMITTEE OF THE WHOLE FY 2012-2013 Departmental Budget Reviews MINUTES The FY 2012-2013 Departmental Budget Reviews of the Committee of the Whole of the Council of the County of Kaua`i, was called to order by Jay Furfaro, Chair, at the Council Chambers, 4396 Rice Street, Suite 201, Lihu'e, Kaua`i, on Tuesday, April 3, 2012 at 9:13 a.m., after which the following members answered the call of the roll: Honorable Tim Bynum Honorable Dickie Chang Honorable KipuKai Kuali`i Honorable Nadine Nakamura Honorable Mel Rapozo Honorable JoAnn A.Yukimura Honorable Jay Furfaro, Council Chair Chair Furfaro: Aloha and good morning everyone, in particular Mr. Mayor, your staff, delighted to see you this morning as we begin our Departmental Reviews. For Members of the Council, just let the record reflect all members are present, no need to do a roll call. I would like to share with you our start of the Budget Reviews, and I believe our intent is to give you the floor this morning, Mayor, to make the opening comments. Then we will take some commentary from your staff that is to your right, and then I will actually take a recess and we will be required to take public testimony after that portion. So at what point we will get to the public testimony, it will be close to when we take our first recess. For those in the audience today, we will be doing the overview by the Managing Director, staffing guides and payroll assumptions, the benefit lines under EUTF and ERS. We will have our first unit working on Utilities and Energy Costs by afternoon. Mayor, I believe you will be coming back at 2:30 p.m. or will your staff be doing your office at 2:30 p.m.? There being no objections, the rules were suspended. BERNARD P. CARVALHO, JR., Mayor: We have staff coming back. Chair Furfaro: And then we will end the day for today with the Office of the County Attorney. Each day as we come to a conclusion, we will actually go into recess and based on how long the County Attorney's presentation is today, I will or will not make it over the Kalihiwai Bridge tonight since it closes at 5 p.m., so the pressure is on. On that note, may I welcome you, Mr. Mayor, and to your staff, and I give you the floor. OVERVIEW: Mr. Mayor: Okay, Council Chair Furfaro, Vice Chair Yukimura, Members of the County Council, on behalf, of course, myself and our Administrative Team right behind me, Good Morning and Aloha. Councilmembers: Aloha. Mr. Mayor: This has been a very busy year for all of us. Much has been accomplished and we have much to be proud of. During my State of the County address, I talked about weathering the storm, and it was a timely theme as we had just gone through some three distinct serious weather events. With all the branches and levels of government working together, along with the support of our local nonprofit agencies, and the resilience and resourcefulness of our community-at-large, we were able to get through the challenges and move forward. Since I have become Mayor, it seems that the process of budgeting is likewise a challenge of weathering the storm. We have been faced with not just maintaining, but improving services in the face of declining revenues. We have had to be creative, resourceful, and to count on our partners in government and the private sector to create opportunities out of shortfalls. The Council has been our partner, of course, in this effort and continues to be our partner. rte` April 3, 2012 Overview p.2 Over the past three years we have raised fees and implemented new fees. We had utilized furloughs, dollar-funded dozens of positions, and restructured certain operations in order to save money and, of course, balance the budget. We have deferred equipment purchases, floated bonds, refinanced debt, and created a Reserve Policy in order to save money and balance the budget. In short, we have been conservative in our approach in budgeting, and I am here to tell you today that we are still taking a conservative approach to budgeting. For me, this year was more challenging than those in the recent past because I feel strongly that we must start to wean ourselves off the temporary cuts, namely the dollar-funding of positions and the deferral of equipment purchases. To put it into a football analogy, we can only go so far with less than a full team on the field, and we can only push our players so far if we have not provided them with the proper equipment and the proper resources. And yes, we are proposing to restore our full team, and yes, we are proposing to equip them properly, and yes, that takes extra dollars. But we are also (inaudible) fiscally conservative in other areas to help absorb that renewed investment. So I would like to provide a broad overview, and I want to keep it moving in that direction, and then we will move it over to our Administrative Team, Gary and Wally and Ernie, to give you the details of all the different parts of our budget delivery. As for the really big picture, every year we struggle with the challenge of fixed cost increases. The six percent (6%) increase in operating expenses that we proposed for next year have been almost fully attributed to increases in fringe benefits and retirement costs for personnel, debt service, and rising utility and fuel costs. Externally, we know our economy is still struggling, and our revenues continue to decline. The good news is that recent economic indicators for the Visitor Industry are positive, and our Certified Tax Roll is higher than we had anticipated even on March 15. Wally and his team, our team, will discuss the revenues in detail shortly. Now to kind of zoom and focus back to our budget proposal, I would like to address the g p p dollar-funded positions. Last year we restored a handful of dollar-funded positions. From the beginning of our budget discussions this year, I expressed my intention to restore as many of the remaining dollar-funded positions as possible. I believe it is absolutely essential to do so to close the gap in services and improve our overall service delivery to our internal and external customers, internal and external. Most of these positions have been vacant for two to three years. These are primarily line level positions, and we are proposing to redescribe many of them to better fit the needs of our various agencies today. Changes are mostly lateral or downward allocations. Here are some examples that we will propose to restore: a dollar-funded Police Records Clerk is being renamed an ID technician to better meet the needs of the Kaua`i Police Department. A Senior Clerk position in the Kaua`i Fire Department is being moved to Personnel Services and will be part of the Human Resource reorganization effort, which I will discuss shortly. A dollar-funded Special Projects Officer position from the Finance Administration budget will be re-described to an entry level procurement and specifications specialist, and transferred to the Division of Purchasing. A dollar-funded Grant Specialist Position in Parks & Recreation is being reallocated to a Permit Clerk, for that department to account for additional work that will result from the new park rules, the opening of new Lydgate Campgrounds, and other operational changes in the Department of Parks &Recreation. Equipment is another area in which we are proposing to reinvest next year. It is as simple as this. Our workers cannot do the job if they do not have the right equipment. So from new police and fire vehicles, to a new forklift and aerial lift truck in Parks & Recreation, to excavators, bushwhackers, and wood chipping machines in Public Works, these purchases are essential in our ability to provide timely services and maintain facilities, and will allow us to reduce overtime by adequately equipping our workforce. The total equipment investment we are proposing is more than $5 million; however, because we will be using lease agreements to acquire most of these items, the impact to the fiscal 2013 budget will be a little over $1 million debt service. Some people will question these increases in manpower and equipment in a financial environment that is unstable. We know that we have to cut costs in other areas in order to accommodate the increased spending in these areas. So I would like to briefly highlight for you where we are focusing on reducing costs, budgeting more conservatively, and increasing productivity. I described for you some of the dollar-funded positions that we are proposing to fund. For most of them, we propose to fund them just eight months next year to account for the recruiting and hiring process. The re-describing of the positions that I have detailed help us to improve efficiency. A prime example is the funding of a working Labor Supervisor currently in Public Works, which we are proposing to transfer to the Transportation Agency as a Mechanic Helper. What we would like to do is centralize small equipment repairs out of the Transportation Baseyard, which will allow the Lihu`e Auto Shop to focus on vehicle maintenance for our aging fleet. Now this change will allow our April 3, 2012 Overview p.3 Parks, Public Works, Fire, and other agencies to get their equipment back in a more quickly and timely manner because it will not prioritized behind police and emergency vehicles. Everybody will have the attention that they need. We will also allow our Auto Shop to better service vehicles and extend their life, saving us money in the long run with the new vehicles and the new purchases. In the area of energy and efficiency sustainability, many, many things have happened, which will save us money next fiscal year and into the future. Photovoltaic retrofits, as you all know, have been completed at the Lihu`e Civic Center and Kaiakea Fire Station. We are starting procurement for our next project, which will be the Police/Civil Defense/Prosecuting Attorney Complex, and that is moving. Our five electric vehicles have been purchased and are in operation and 10 charging stations are being installed as we speak. The Performance Contract for the Wastewater Division is well underway with a comprehensive plan of action being negotiated with the energy services company as we speak. We expect to complete negotiations sometime in May. We are excited because the aggressive efficiency of renewable components that are proposed, including a possible net zero, 100% energy proposal at one of our facilities, meaning that we could generate enough renewable energy at the facility to power our Wastewater operations 100%, net zero. An invitation for bids for the second Performance Contract for other County facilities is in development, and hopefully will provide us similar opportunities as those we are finding in Wastewater. Our sustainability team has been assembled and is working cooperatively to green our County operations to the greatest extent possible. The team consists, of course, of Manager Glenn Sato, Energy Coordinator Ben Sullivan, and Brian Inouye, who serves as the Energy Facilities Manager. Our sustainability consultant, Ken Stokes, provides guidance and training for us as well. A staff level Green Team has been created and is already working on policies to be implemented in the next few months that will green many aspects of our operation and save money. We continue to negotiate with unions to provide more flexibility in the use of our manpower so that we can make a notable dent in our overtime costs. We are still in those talks as we speak, but hope that it will result in agreements that will save us up to $500,000.00 a year in overtime. We all agreed last year that the County needs greater depth and focus on human resource management. An internal task force has been formed and has been working throughout the year to research and develop a plan for the formation of a true human resources operation within the Department of Personnel Services. This transformation will take place without creating new positions. We are proposing to move personnel, who are performing human resource related functions within various departments, into Personnel Services, and hope to have the transition complete by this fall. Better management of our human resources will provide for a more healthy, productive, and effective, efficient workplace. It will place a greater emphasis on Risk Management, and we project it will create huge savings for us in the future years to come. In continuing efforts to go paperless, which is already saving us significant dollars, the Purchasing Agency this year has made big.strides. The County-designed electronic procurement system now allows for the following online services: Solicitations for Goods, Services, and Construction; Advertisements for Professional Services; Addenda for all Bid Types; Informal and Formal Bid Tabulations; Awards, Notices, and Other Procurement Notices; and Auction Notices and Information. All of the above is in the works as we speak. We have also created an electronic contract execution/distribution process, eliminating the need for multiple copies of large documents, and recently completed the online posting of all Division of Purchasing forms via the County's SharePoint Portal. In terms of budgeting more conservatively, the following initiatives are either in place or being proposed for next fiscal year. Last year we scrubbed our Capital Improvement Projects (CIP) list to include funding only for projects that we felt would be underway within 18 months. Our personnel, particularly in Public Works and Parks and Recreation, have worked extremely hard to keep the funded projects moving and on track. I am proud to report of more than 100 projects on our approved CIP List, which you will be discussing shortly, more than 80% are either complete, in progress, or will be in procurement by September 2012. This is a tremendous accomplishment because it not only ensures that we will complete infrastructures upgrades in a timely manner, but also keeps the CIP dollars flowing into our economy as quickly as possible. We are not tying up scarce dollars on projects that are not ready to go. April 3, 2012 Overview p.4 Our Reserve Policy continues to be our safeguard against the unforeseen crisis. Last year we proposed a reserve at the high end of the recommended percentages. This year we are proposing to stay within the percentages recommended by the Government Finance Officers Association, but have reduced the reserve in order to free up dollars for other areas of critical need and to balance the budget. Another point of discussion in past years is the surplus that exists in our very special fund accounts. Many of you have requested that we utilize those funds prior to subsidizing special funds from the General Fund. This year we decided to spend down the money in each of the special funds before transferring anything from the General Fund. As you know our departments lapse millions of dollars every year. We have taken a hard look at the amount that has been lapsed per department over the last two years and feel it is time to budget more realistically based on the performance. Because of this exercise, we have asked Administrative Departments to reduce their overall budget by roughly 25% of the average amount of funds lapsed for the past two fiscal years. We invite all departments of the County to follow this lead, not just for this year, but as a matter of policy moving forward until we see our spending becoming more realistic year after year. So this concludes my overall overview. Of course, there will be much more detail to come. Our departments are ready to inform and provide their information to you. I want to emphasize that we are doing our best, our very best to bring our operation back to normalcy and that does involve making investments in areas that have not been funded properly over the years. However, at the same time we are being mindful that costs must be contained, efficiencies must be gained wherever possible, and that sound fiscal management is at the core of everything we do. It will take each and every one of us working together to create the final product which will guide us next year. We have much experience around this table. I have 27 years of experience in County government, and starting from my way up in the lower levels and all the way up to now. So I feel strongly that I have been there. I understand the operations with County government. We all have our own experiences. It is about time we all come together with our experiences and work together in a better way to manage our government today. And that is the bottom line for all of us. I am hoping that we can move with healthy discussions, looking for some great outcomes as we begin to go and dialogue in all the various departments because be assured they were trying every single way to meet the needs of the people that we serve. It is only working cooperatively between us right here at the table that we can get to that means. So thank you for the time. I would like to turn it over to our fiscal team, our Managing Director Gary Heu and our team here, to go into more details with some of the graphs that we have to kind of give you a better pictorial overview. So thank you for the opportunity. Council Chair Furfaro: Mayor, thank you very much for the overview, and we will turn it over to Mr. Heu. Staff, were we able to accommodate another microphone for the table? We have one. Gentlemen, I am sorry, you will have to pass it back and forth. Thank you very much, Mr. Mayor. Go right ahead. GARY K. HEU, Managing Director: Good morning, Chair Furfaro and Councilmembers. Council Chair Furfaro: Mayor, I understand you are not leaving and that the intent will be to entertain questions after all of the particulars. You gave us an overview, which does not get down to some very identified processes. I am assuming your budget team will and then we will entertain questions. Mr. Mayor: That is correct. I gave the overview. I will be fielding every single question you folks have. Council Chair Furfaro: But you will be present. Mr. Mayor: Yes. Council Chair Furfaro: Mr. Heu, you have the floor. Mr. Heu: Thank you very much, Chair. Once again good morning. With me this morning is our Finance Director Wally Rezentes. You folks are all very familiar with Wally. You spent a lot of time with him last week. And then we have our Procurement and Budget Director, Mr. Ernest Barreira. And so first of all I would like to say thank you very much for the accommodations, for setting up the table for us. I think we are going to make good use of it over the April 3, 2012 Overview p.5 next four to six weeks. The Chair was very accommodating in helping to set this up because we felt like these should really be working sessions where we are having back and forth dialogue as we work our way through the budget. Anyway, we are happy to be here this morning. It seems like we were just here not that long ago. How quickly the year went by. Some major changes in terms of our staffing. I think one thing that quickly becomes evident is that Alvin Honda is no longer with us after his many decades of dedicated service to this County and in particular to the Finance Department and to the whole budget process. We certainly do miss Alvin's knowledge and experience. However, having said that, I just wanted to take a brief moment to introduce to you the other two members who comprise our Budget Team. We have our Budget Analyst Ann Wooton and then also sitting kind of close to Ann is our newest member to the team Ken Shimonishi. For those of you who have had contact with Princeville Corp. in the past, you will recognize that although he is originally a Westside boy, he spent his past years working up in Princeville in their Finance Department. So again, we are very happy to have Ann and Ken onboard as part of our Budget Team. I want to give real kudos to Ernie and the Budget Team considering the late date in which they parachuted into this process. As you folks know, the way that the County budgets is not necessarily an easy process to understand if you come from the private sector or elsewhere, and the enthusiasm which they engaged themselves in the process is commendable, and we just want to thank them up front. So to start off with I think we would all acknowledge that if we had an opportunity, maybe, to revamp the whole budget process, we might consider different things. I see Councilmember Bynum nodding his head. I think we go through this every year where we submit a budget to the Council on March 15 because we are so mandated to do per the Charter. However, it is not until later in the process that we get a better view of what our actual revenues are going to look like to bang against the proposed expenses. And that usually comes at about the March 30 date, which was last week Friday when we received our Certified Tax Roll. And then we go through an iterative process between March 30 and our May 8 submittal, in which we are in dialogue with you, Members of the Council, to get to a point where we submit our supplemental budget for your review, consideration, and approval. And so again, I know there are many of you who think, boy, we do not spend enough time together and I can assure you that over the next six weeks the Administration will be here in earnest dialogues with this Council to get us to an approved budget in May that we can all feel good about. So what we wanted to do is the Mayor gave us the vision, the big picture overview, and so now we would like to start to drill down a little more. And so as we progress through the discussion and move to the right, we will start drilling deeper and deeper into our proposed budget. So if we could, we brought handouts for everybody and will start off with this handout here. Again, this will just give you the biggest view of the budget that we have submitted. Before I get into a specific discussion on this, I just wanted to give you folks a flavor of what it is that the Budget Team has had to deal with over the past four to eight weeks. When we first took a snapshot of the budget as submitted by the various departments, right out of the gate we were looking at a $10 million increase over last year's operating budget, and these were pure operational costs. I am not talking about debt service or anything of that nature. The budget guidance that was provided early on in the process this year was that there were to be no new positions and/or no fully funded dollar-positions, and no equipment over a certain amount—I think it was $20,000.00. All those types of requests were to come external to the budget. So in other words, whatever was put into the system by the departments should not have reflected any new positions, any dollar-funded positions that were going to be proposed to be fully funded or no new equipment over $20,000.00. So without even considering the external requests from the departments, we were already $10 million over the old operating budget. When we took into consideration the external additions by our departments. That layered another $10 million to what we needed to wade through and to get to a submittal on March 15. So right out of the gate we were looking at $20 million of increased costs that we were going to have to deal with. I am somewhat proud to say that after a lot of discussion between the Budget Team and the various departments, and sometimes long and engaged and heated discussions, that we were able to bring that number down to about $5.2 million. So out of the total $20 million, actually it was closer to $21 million additional costs that were proposed for this coming year, we were able to whittle that down to about $5.2 million. So, if you look at that chart up there, it may help to better understand what we submitted for this year. So, if you look at the first column, it will show you our current year budget at...and I am just going to talk about that top portion of the budget. I am going to leave out of the discussion for now the Reserve line and the Self-Insurance line. Our Finance Director will get into more detail on those items as we progress through the discussion. You can see that what we are dealing with is what I would call an operating April 3, 2012 Overview p.6 budget of about $162 million against our proposed budget of$172 million. That gives us a positive variance of about $10.2 million equating to an approximate 6.3% increase over our operating budget. Now, the debt service line, as you can see, increased significantly and again, our Finance Director will get into more detail on what drove that debt service increase and how we are addressing that. So that leaves us with that very top line, which is where I think a lot of your, as Councilmembers, where a lot of your interest resides because that truly is what it takes to operate our various departments. So we are calling it our operating departments' budget. So if you look at the top line, current fiscal year, we are talking about approximately $157 million to run our various departments. Y g $ Our proposal this year for the Fiscal Year 2013 is $162.6 million for an increase of about $5.2 million and the percent increase is about 3.34%. So what I would like to do now, again remembering that the $5.2 million positive variance is where we ended up after we began with an additional $21 million in cost to consider, is to kind of drill down further on that $5.2 million variance. What we have is a pie chart here, which shows you the various components that make up that 3.34% positive variance. As you can see, what we would call our Health Fund Contributions make up half of that pie chart. We thought it was important that you visually were able to understand where much of our increased operating costs are coming from. And really when you take our OPEB line item for the County, as well as the Health Fund Contribution line, that constitutes almost 64% of our overall variance for departmental operating costs. That is significant. Ms.Yukimura: Can you explain for the public what OPEB and EUTF are? Mr. Heu: Let us see if I can get the acronym. Other Post Employment Benefits and then the Employee Union Trust Fund is EUTF. Combined...we can break those things out. We do have them broken out in line items in the budget; however, both of those...those are components. They are both components of the overall Health Fund Cost for the County, whether it is for retiree medical benefits or for active employees, it is about 64% of that variance that we are discussing today. So you can see really that is a huge chunk of our overall increase, again for departmental operating budgets. In addition, you can see that Utilities is also a major component of our 3.34% variance. Most of those costs can be attributed to increase in the cost of fuel and electricity. And so I believe later this afternoon we are actually having a very specific discussion on Utility and Fuel Usage within the County. I believe that is at 1 o'clock this afternoon. So there will be a lot more detail provided on that. And then moving down to Salaries, what that represents is the portion of the proposed year for which we intend to fund our fully funded...we are calling it fully funded dollar-funded positions. But in actuality we are not going to fund them for the entire year, understanding that there is a process that we need to go for hiring, and then we also saw that as an opportunity to save some dollars for next fiscal year. The other component of salaries is, even though we have not negotiated any additional increases for wages for collective bargaining, we do still have things such as Step g g p Movements that we have to address per collective bargaining agreements, as well as when positions are reallocated and upward, those also have a cost associated with that. And so all those components come together to show you that Salary line item. Actually, embedded in that Salary line item is an actual decrease in what we are projecting for overtime. So when we get into the more detailed cost, you will be able to see some of those savings that we are projecting for overtime. Anyway, that is just to give you, again, the big picture in terms of where we started off. If we could refer back to the first slide, thank you. When you do drop down to the bottom line, last year we submitted a budget for current fiscal year for $185.8 million, that is compared against the proposed budget for $161.2 million. It shows it as a decrease, but really what we are talking about is the fact that we established a Reserve Fund last year to the tune of$25.4 million. And then this year we are looking at accessing some of those Reserve Funds to help balance our budget submittal for March 15. I think what has been said over the last few weeks is that the budget that we submit on May 8, based on this iterative process and our discussion with Council, may look different. Some things that right out of the gate that we need to consider is the fact that the Certified Tax Roll, in fact, came in a little higher than anticipated, which is good news for everybody, and I think part of that was the fact that the number of real property tax...I do not want to say challenges. What is the correct word? I am sorry it is just escaping my brain right now, but tax appeals have gone down significantly. Therefore, it allowed us to realize a little bump in what we anticipated to get from our real property tax collection. Additionally, there are some interest revenues that Wally will get into in a little more detail, and those two components may give us a bump of about $2 million as we start into this process. This is information that we did not necessarily have when we submitted our budget on March 15, so in that respect it is good news. There are obviously many ways that we can apply that April 3, 2012 Overview p.7 $2 million, and we look forward to having that discussion with Council. I know there would be those individuals who would say that we should apply it right back to our Reserve. That certainly is something that we are open to having a discussion on. I am sure there are also ways that Councilmembers envision using some of those funds. So at this point in time... Mr. Rapozo: Mr. Chair, can I ask a clarification question on that chart? Council Chair Furfaro: Surely. Mr. Rapozo: I am a little confused, Gary, on the Reserve line because the way I am reading it is or the way I think it should be is if the 2012 was $25.3 and fiscal year 2013, should not that number be $25.3 minus $10.758, so you get a positive figure on 2013? I am sorry? I mean that is not 142% drop. We dropped it by $10.7 million. So I am not sure what that is trying to portray, but it definitely skews the number. That 2013 figure should be a positive number. That should be reflective of what is in the budget for the Reserve. Mr. Heu: You are right. What is left in the budget is actually $14.6 million. You are correct(inaudible). Mr. Rapozo: Correct, so that changes all of the numbers on the bottom line. If somebody can fix that and get that on the screen because that is not accurate. That is telling me that we are $10.7 million short in the Reserve line and that is not the case. We have...as I read it, we have the $14 million or so. Mr. Heu: $14.6, you are correct. Mr. Rapozo: Maybe we could fix that, Mr. Chair, and get that up. Council Chair Furfaro: Yes, and I think it is understood in basic math. You have two negative integers, then you add the numbers to get to the $36. But we have a negative integer, then a positive integer, and so that number should be $14. Mr. Heu: In there is $14. It is $14.6 million. Thank you for... Mr. Rapozo: But that changes the entire calculations, so it is very hard to move forward. If we can get that, I am sure... You have that on a spreadsheet available where we can just punch in the numbers? Mr. Heu: We do not have it here, but certainly we can have it by this afternoon. Mr. Rapozo: I will do it manually. It is not that big a problem, but I think it just changes the entire scope of that spreadsheet. Mr. Heu: Chair... Council Chair Furfaro: Go right ahead. Mr. Heu: At this point in time, we can continue to drill deeper into the presentation or as you had indicated earlier if you would like to take a break at this point in time and do some public testimony, or we can continue on with Wally and Ernie if you would like. Council Chair Furfaro: Well, I think if we are able to take a break, is there any chance that we could call over and have a sheet correction here during the break time? Mr. Heu: Sure, absolutely. Council Chair Furfaro: Okay, we are going to take a 10-minute break now. There being no objections, the meeting was recessed at 9:54 a.m. The meeting was called back to order at 10:12 a.m., and proceeded as follows: April 3, 2012 Overview p.8 Council Chair Furfaro: Thank you very much. For the Administration, I would like to ask that if we could just fold this presentation because this presentation is about the operating budget, and if we could fold this presentation just at the first line that shows operating departments. I think based on your pie chart that you shared with us earlier, I think what we want to be able to say is of the $5.2 million in increases, almost 60% of that $5.263 million is actually associated with the cost of employee benefits. That seems to be the biggest piece of the increase. And I think as we go through the process, again, in all fairness to the Administration, from last year I was indicating that the Reserve Fund should not be reflected as a budget item because it is in fact a reserve just like the Open Space Commission. But what we are looking at is an opportunity to clean up your information a little bit, but for this purpose a budget that is going from $157 million to $162 million, an increase of $5.2 million, which 60% of it is reflecting benefits. Before I recognize any Councilmembers, Wally, could you acknowledge my simple presentation of that first line. There being no objections, the rules were suspended. WALLACE G. REZENTES, JR., Finance Director: Yes, that is a fine explanation, sir. Council Chair Furfaro: Vice Chair Yukimura. Ms.Yukimura: Just a question about process. I thought the Mayor was going to be here so we can ask him some questions. Is he gone now? And if he is right outside and wants to go, is it possible to ask him some questions first before he leaves? Council Chair Furfaro: While we are waiting for the Mayor, Gary, we are going to focus on this first line going forward, and obviously we will have later discussions about replenishments dealing with our choices as it comes to the Reserve and how to replenish it, so thank you. Mayor, thank you for coming back in. We are just going to be focusing on this first line here for now, which shows the biggest part of the increase as being attached with budget benefits for the staff, about 60% of that, and Vice Chair Yukimura had a question, but she did not want to pose the question until you were back in the room. Vice Chair, you have the floor. Ms.Yukimura: Actually, Chair, I have a series of questions based on the Mayor's presentation, and I think other Councilmembers may have some too. Council Chair Furfaro: We will get to there, if you can hold on there. Ms.Yukimura: That was my question about procedure. I just was not sure whether the Mayor was going to stay. Council Chair Furfaro: I will say it again. The Mayor agreed to stay. We will get through the big three presentation over here, and then we will be open for questions, and the Mayor has indicated he will be staying for this portion. Ms.Yukimura: Okay, thank you. Council Chair Furfaro: I guess from Mr. Heu, we are going to you, Wally? Or are we going to Ernie? Mr. Rezentes: Actually, we are going to move to Ernie right now, and then I will be third batter...fourth batter. ERNEST BARREIRA, Budget&Purchasing Director: Honorable Chair Furfaro, Vice Chair Yukimura... Council Chair Furfaro: Before you go any further, you know the fourth batter is usually the clean-up hitter. You are supposed to put it out of the park. Mr. Barreira: Members of the Council, good morning, Ernie Barriera, Budget& Purchasing Director. I would like to thank you for the opportunity to present this morning in order to initiate vital discussions in terms of our fiscal 2013 budget process. It is very clear to me that in terms of the budget, the legislative and executive branches clearly share the same ultimate goal and objective. That is to deliver and execute a budget that will meet the public service needs and best interests of our people. With regard to the budget, we also agree that it is incumbent upon April 3, 2012 Overview p.9 all of us to ensure that we exercise the highest standards of accountability and integrity in the expenditure of our public funds. I am honored to be a part of this critical process and look forward to our collaborative and cooperation as we embark upon Fiscal Year 2013 Operating Budget for the County of Kaua`i. The overall strategy to submitting a balanced budget, as required by law, relied upon a multi-faceted approach that factored in a number of critical elements in terms of meeting the demands for public service and in proposing the expenditure of public funds, given the current economic challenges and limitations. I would like to share with you some of the strategies and deliberations that we explored. The Budget Team conducted a comprehensive evaluation of all CIP projects based on certain assumptions to include: (a) the likelihood of these projects moving effectively and showing measureable progress over the next 18-month period based on plans and proposals, as well as resources required for the project; (b) the importance of the project in terms of essential public services; (c) the speed with which vitally needed capital funds could be infused into the economy in order to proactively impact jobs and investment; (d) and analysis to ensure that only funds needed to advance the project in its current planning or construction state would be allocated accordingly. This is to avoid fully funding projects from design through construction without accurately assessing the time that will be involved for the various phases of these projects. In short, CIP funds were allocated to projects in terms of actual funds needed to achieve completion based on the planning initiatives. This enabled a strategy of CIP funding reallocations to other projects based on this analysis. There have been measureable and substantial movements in CIP projects in terms of the growth in professional services and formal procurement by 56% over the past two fiscal years. This shows evidence of design and construction activities respectively, and that the public is enjoying a reasonable return on its investment. We developed and pursued a lapse factor of 25% that the Mayor touched on with regard to our Fiscal Year 2013 budget reduction for all departments based on an analysis of the amount of funds lapsed by each County department over the past two fiscal years. This strategy was twofold: to ensure that departments and agencies were provided with the resources needed to meet their mission, while at the same time being careful to take into account past lapses and adjusting these budget appropriations accordingly. Support for the acquisition of$5.5 million in new equipment for departments in order to enhance productivity placed needed resources into the hands of our workers, positively impact overtime costs which have occurred as a result of excessive manpower being allocated in place of the absence of needed equipment, and to substantially improve the delivery of services to the public in terms of increased responsiveness and completion of needed tasks. We have continued to utilize lease financing to minimize the immediate cost to the County in terms of debt service outlined by our Mayor of$1.1 million for Fiscal Year 2013 as opposed to having to expend the entire $5.5 million out of the purchase for this next fiscal year. We have made a very strong and significant commitment and vision to reinvent the budget review, preparation, execution, and management processes to ensure a higher level of effectiveness and accountability. The key elements in this process will involve collaboration between all branches of government to ensure that we share our vision and desired outcomes. Involvement of our shareholders will be essential as well. This revised process will need to be more responsive and focused on performance, measurement, and accountability. The Administration has shown its commitment to this initiative as evidenced by the creation of a new Budget Division without any increased cost to the County and the hiring of a professional consultant to assist us in the process of review and reinvention. I thank you for the opportunity to share a few components of our budget strategy for Fiscal Year 2013 and look forward to our continued efforts in partnership over the next several months in delivering an effective and meaningful budget for our people. Thank you, Mr. Chair. Council Chair Furfaro: Mr. Rezentes, will you be... Mr. Rezentes: Yes, thank you, Councilmembers, for this opportunity. I wanted to also echo what the Managing Director Gary Heu said about our Budget Team. It is a newly formed team this year and I am very happy that they are fully engaged and working towards filling a gap that...with Alvin Honda's departure, I think all of you know Alvin had, I believe, over 40 years of government service and knew County operations very well. I think with this team, April 3, 2012 Overview p.10 everyone has their different abilities that they bring to the table, different qualities, and I think it is going to be a positive step for the County to have engaged the team that we have, and I think you will see that as we move forward throughout the years. To touch a little more deeply on some of the specific budgetary numbers, we did receive our Certified Tax Roll last week Friday, and I apologize in advance, I believe last week or the last couple of weeks I have touched on a lot of things that I am going to touch on again today. It seems like last week and the prior week's discussions, all had budget overlays to them, so I apologize in advance if I am repeating myself in some of these instances. The Certified Tax Roll for the County in Fiscal Year 2013 as based on this past Friday is $78,338,499, and compared to the current year Fiscal 2012 Certified Tax Roll of $79,287,121, we have nearly a $1 million reduction, which represents approximately 1.2%. As described over the last couple of weeks, we are going to begin to engage in the reviews of our tax rate structure based on the individual tax categories that we have, and we will be making a recommendation to this body as part of our May 8 submittal. I believe that in the course between now and May 8, we are intending to engage the County Council in discourse along those lines, and we are always open to have discussions with you leading up to our May 8 submittal. One of the tenets that we followed in creating the March 15 budget is a push to utilize the available fund balances within the Enterprise Funds and Special Funds. And in our individual meetings with you folks, we also mentioned that the intent is to rely as least as possible on the General Fund and ensure that there is spend down in all the respective Special and Enterprise Funds, especially those that rely on the General Fund for funding on an annual basis. One point that is very important to make here is that we are able to rely on the fund balances in these funds for Fiscal 2013. In Fiscal 2014, we are not going to be able to rely as heavily because we have spent down the funds. We would have spent down the funds in 2013. So again, that...I am repeating myself here, but that is an important point to note leading into the Fiscal 2014 budget a year from now. The reduction in the Reserve Fund from $25.382 million to $14.63 million, nearly a $10.8 million decrease is a concern as well, and I think we have mentioned that in your individual meetings. We want to look at, over time, reestablishing the Reserve Fund to appropriate levels and we definitely would like to work with the County Council towards that end. One of the things I have mentioned beyond the Reserve Fund, what we did to balance the Fiscal 2013 budget was to utilize General Fund CIP money and move that back to the General Fund to the tune of$3.72 million. So the Reserve Fund combined with movement of General Fund CIP to General Fund Operating is a significant amount of money that is not a recurring source to tap into in future years. So those two aspects, the spend down of the Special Funds and Enterprise Funds, as well as the non-recurring sources of revenue from the Reserve and the General Fund CIP, will be ongoing challenges in upcoming budgets. Another item that is beyond our control, it is at the State level, and I believe in your discussions with Wes Machida from the ERS, the ERS Administrator who came about a couple of months ago, I think he mentioned a piece of legislation that the ERS Board was proposing, and it is still ongoing, and that is Senate Bill No. 2750, which is the anti-spiking legislation, that is making its way through on O`ahu at the Capitol. I am intending to have some discussion soon with Wes, as well as some of my counterparts. Some of the concerns raised by that anti-spiking legislation is its effects on the Counties, namely the result of overtime in areas of police and fire. What the ERS is trying to do here is to recoup some of the added cost exposures as a result of the high three salary levels that is attributable to increases in overtime in the three-year period. When the Retirement System has to do recalculations on future retirement benefits for say an employee that had an average high three level of $60,000 and in their last three years it is now $90,000, that has a dramatic impact on future benefit payouts to that individual. What the ERS is trying to do is say to each employer you now pay for that difference, that increase. Some of the employers have come to the table and said, hey, what if we cannot afford to pay it in one lump sum or in one fiscal year? Is there a way to temper that increase in cost over so many years? And that is the kind of discussion that is ongoing right now at the legislature. And I just wanted to bring this to the topic here because we do not know the outcome of that legislation, and it could have budgetary impacts for us in the future, again especially in the areas for our SHOPO and HFFA employees. i Another area that is ongoing and an increased challenge as a result of our economic conditions is the Real Property Tax Collections. The Finance Department will touch a little bit more on this in our budget presentation, but the collection of real property taxes has been an increased April 3, 2012 Overview p.11 challenge over the last couple of years, and credit goes to our Real Property Collection staff, who is working through this period. Of note is that as of March 31, 2012, the County's delinquency rate stood at 5.43% or $4.75 million. Of this $4.75 million, $2.56 million is attributable to the current fiscal year delinquency and $2.19 million is attributable to prior fiscal year delinquencies. When we compare year-over-year fiscal year number or percentage, for fiscal 2010, 2011, and 2012, the trend is increasing. In 2010 the delinquency rate was 3.78%, in 2011 it was 4.02%, and in fiscal year ending 2012 it was 5.43%. So that is an ongoing challenge, and we hope to improve. I know there is a scheduled foreclosure sale within the next couple of months to help reduce the delinquency, but that again is an ongoing challenge for us going into the future. You have also seen the increase in the County's overall debt service requirements. Debt service will continue to be at the levels that we are budgeting for the foreseeable future. There is, as a result of our 2010 bond issue, and I think Gary had mentioned it a little earlier, there is an interest subsidy that the Federal government will pay us annually as a result of the 2010 BABs and RZEBD bond float that we did for $120 million spread between us and Water. So that moneys will be part of our budget going forward, but ultimately our debt service levels will be in the $8-$9 million range for the foreseeable future. We do continue to look at opportunities to refinance debt when appropriate. Usually we look at the cost of issuance compared to the cash flow improvements, and we are hoping the market stays right now in the area that it is or improves a little bit because we are going to be engaged in the next couple of months on a refinance, and I believe the treasurer had reported that to you recently, and we are hoping in the June timeframe to have a successful refinance and lower our debt service in the neighborhood of approximately $100,000 or so a year. Again, that is predicated on the market conditions. Basically those are the points that I wanted to raise that, again, have impacts, some statistics on taxes, revenues, future cost exposures that are in our control, not in our control, and things that we are working in the future in trying to get a better handle on moving forward into 2013 and 2014. Council Chair Furfaro: Thank you very much for the presentation so far, and I want to just query a few things, and then I will go on to my colleagues. First and foremost, I think we all need to realize that budget strategies are made up of certain assumptions and forecasts, as well as the County is on a cash accounting system, so we do not always get a clear snapshot because there are several moving pieces. I think it is safe on the assumptions so far that you have presented to us as you will be using $10.7 million of the reserve to balance the budget. It is also understood so far that with the Tax Roll, we are about $1 million ahead of where you estimated us to be for revenue. But I also want to point out, and I am going to just not look for an answer to this question, but I do want to pass out to everyone here at the Council...you have a $12.3 million amount in your summary Y Y Y Y sheet as the startup from other savings, and my question is are we going to get there, and I do not need the answer today, but if I put this piece up on the screen, you can see where my concern is on getting to that $12 million. I have pointed out that for six months in the year, actually we are about $4.5 million ahead of ourselves in under spent money from the big five accounts: Solid Waste, Golf, and so forth. I shared this during the tax discussion. We have savings in actual budgeted payroll for six months of$1.5 million, and we have benefits savings calculated at about 67% as a million bucks. So for six months of this year, we are about halfway to that $12 million mark. Because we are on a cash accounting system, I am not sure how much emphasis has gone on on where the additional savings are. You have said to us that the instruction to the department heads was to reduce any unspent money over the last two years by 25%. That obviously has not been taken into consideration here. These assumptions here are based on General Fund Salaries where we have actual salaries of $25.6 million against a budget of $27.1 million. So that is how I got the $1.5 million. And then I calculated the benefits that were on the sheet at $18 million and actually we are running about $17.3 million. So that is where the other million comes from. The question I have here is, is this a trend we are going to see that continues for the rest of this budget year? And I would like to ask, no answer now, if the HR department, when we get to the HR later on, Gary, if they could show us the percentage of benefits associated to the raw payroll. Is it 67%? I have heard various things. I heard 72, I had 80, I heard 80.2, and some of that might be reflected in what you have indicated are the new projected costs associated with us. But making certain assumptions here and looking at the reforecast, I think these are things that we should actually know about when we get to the payroll account. Also, are you going to be presenting us something that shows us what you are projecting the lapse to be, in other words unspent money that you are going to reduce in the budget going forward, and is that coming from some payroll positions and so forth? It is not real clear as we go this first blush. I guess also I saw and we just cut that sheet in half, but I heard Wally mention it, are we to April 3, 2012 Overview p.12 assume that the additional debt service of$9.7 million that grew from $4.8 million, is it our intent, I know I heard later in the year to go to the Bond Counsel, but it is our assumption that we will be refinancing all debt that the County has or if you can just give us some clarification going forward on what that$9.7 would mean. I would also like, so we can start using the term, what are internal customers and how do we define external customers? Obviously some of them are your department heads that certainly have certain staffing needs, but I would like to get a written definition of an internal and external customer. I know as we go forward, we expanded the budget time this year, but there has been some discussion about revamping the budget process, and we look forward to dialogue on how we begin thinking through that track. Again I mentioned the benefit cost as it relates to a percentage of payroll, and are there impacts, since I have heard it twice from two different presenters today, the decrease in overtime as some of the results that we are going to get because PT&E, the Payroll Taxes & Benefits, are also calculated on overtime that sometimes pumps up our percentages. So if we are on a mission to control that overtime, we feel we can do it, we should also see the impact in savings there. So, again, this was the overview. This is just a picture of some of the things I would certainly like to share with you when we get to CIP, when we get to the Human Resources Department. Be prepared for these types of questions. On that note, Vice Chair, I will give you the floor. And may I also announce that you also will be leaving us a little bit this afternoon, which is certainly understood. So I do have your letter of departure. You have the floor. Ms.Yukimura: Thank you, Chair. I am going to address my questions to the Mayor knowing that perhaps he is not going to be answering all of them, and some of them may be even answered during the budget session. I just first of all wanted to commend you and your team, Mayor, for some significant progress that I see in the budget process, and I find it encouraging that these various initiatives are being taken. For example your action to address sustainability, I think, is highly commendable, and I look forward to the proposals coming forth. I am glad to see that the County will try to walk the talk, and I hope that the sustainability efforts will also address public policies that impact the whole island, such as the solar water heating issue. I appreciate that we are trying to achieve much tighter budgeting. The Council has long been concerned about this, especially our Budget Chair Councilmember Bynum and our Chair, and I think all of us. So to see some efforts going into addressing these various surpluses, whether they are in Special Funds or in individual budgets, is, I think, moving us to better budgeting. I really appreciate the efforts that have been achieved in our Procurement Office as an example of what we need to do elsewhere in terms of moving towards more paperless functioning, and I also appreciate the efforts to streamline and increase the analysis of CIP Projects so that we are moving them out faster, and we are making sure that they really are our top priorities, that we are making the best use of our CIP moneys and getting the best return on investment. So these are my questions and issues, and I think like the Chair, I am just going to list them, and then you can choose to answer whatever you want to answer today and maybe some of the answers will come through the budgetary process. In terms of departmental performance and use of budgets, I am very concerned about supervisory and management quality because I think that is really the best insurance to proper and optimal use of budgetary moneys, whether it is the Public Works Department, Parks Department, it is the quality of our managers and supervisors. And I think that can have some of the biggest impacts on proper use of money. So I would like to know how that is being addressed. I am wondering whether there is anybody from the Council Services that is included on your Green Team because I think we need to be part of that. Just the other day I think Palmer was asking, after Dr. Jackson's presentation, where is your recycling; he was holding his recycling things in his hand, and he was downstairs saying, where are our receptacles. I commend the direction you are taking on the HR Department. I think it is long overdue, but I do not think the Council really has been briefed on it, and I would appreciate a briefing on that. You say the transition is to be completed by the fall, and I really feel uninformed about it. I also wondered what additional costs are involved, and maybe you have included that in the budget. So I look forward to seeing about that. April 3, 2012 Overview p.13 When the Council made the decision, and I was on the Council many years ago, to acquire the shopping center across the street, which is now forming many of our offices, I think in a very cost-effective way and also in a Smart Growth way. I think it is very functional that people just have to walk from their offices to the County Council or back toward the Administration, so I think that was a good decision. I am concerned that we are using a lot of that space for storage, and we are having some of our offices rented outside. So I want to know how we are addressing the storage issue because it does not seem like the highest and best use of space to use what could be used for office space for storage. I also was extremely discouraged and upset that I do not see any money in the CIP budget for a MRF, and that was promised in the last briefing from your Solid Waste Division. I was astounded to see zero or a dollar. So I would like an explanation of that. Better yet, I would like to see how the MRF is included in the budget and we will move ahead on it. The MRF is not just about increasing recycling and reuse, it is about increasing the life of the Kekaha Landfill, which is a crisis situation. So hopefully there is a good explanation for that, and we are actually going to be moving ahead. I do not know how we can fund the `Ele`ele Housing Project without a Housing Strategic Plan that shows that that is the best place to put our housing moneys and energies and efforts. And your Housing Agency has told me they do not have a strategic plan, and I think it is the cart before the horse to embark on a huge project that we have never done before. We have never built a housing project from scratch in a single-family place in a place that has been told to us at our Smart Growth conferences is not a Smart Growth project because it is not located where we need it, near the jobs and near our population bases, where the jobs are. So I do not understand any of this at all. Steven Covey had a phrase about spending a lot of effort, time, and money climbing the ladder only to find that it is on the wrong wall, and I have a feeling that this `Ele`ele Project is such a project, especially if it diverts our efforts from other lower hanging fruit of projects in areas where we need the housing. It was very interesting in our previous discussions last week where we talked about 80% of base pay as being the percentage for fringe and benefits, and I think in the public sector it is closer toward 50%. And I think we had some discussion with the Salary Commission when they were before us recently. I am asking why that is so and what are the leverage factors for changing that if it is not an appropriate figure? If the private sector and other places are doing it and keeping satisfied employees with a 50% plus figure, why is our public figure 80%, and how are we going to sustain that? And then I want to know how you are tying budget to the goals and performance, and hopefully that is going to come out. My last question is how are we looking at our Special Funds in terms of finding more sustainable ways for these funds? I believe there are some public municipal golf courses, and I have not had a chance to research it, that are actually closer to breaking even than we are. We are right now what this proposed subsidy for our golf course this year is $700,000+ and it has been like that for the last five years at least, but it was not always like that. And what are the issues here? And even our Road Fund, what is the more sustainable way of dealing with our Road Fund because we cannot...it does not seem like a really good process to keep subsidizing it by the General Fund. And we also know we need to sustain our repairs and maintenance because we do not want to become like Honolulu, where the roads are so bad that the cost is coming not in terms of taxpayer money but in terms of personal income to fix cars, and that is what is happening. So, how are we going to address that issue into the future about having a sustainable Highway Fund and indeed a sustainable Bus Fund because those are the two modes of land transportation that we need to know how we are going to sustain and indeed for our Bus Fund how we are going to grow it because we have to grow it, especially with the cost of gas going up. People need other alternatives to the private car, even as we keep our roads sound for private car travel. Those are my questions and if you have some quick answers right now for some of them, that would be wonderful. Otherwise, if you can let us know that they will be addressed later in the game, we would like to know that. Thank you. Council Chair Furfaro: Just before we go any further, so it seems as I raised the PT&E concerns, we can get to that when we have Personnel here. But it would be really nice to be able to compare the private sector is at 52-55%, as Vice Chair Yukimura pointed out, but it is the April 3, 2012 Overview p.14 same question that I raised. I do have one answer for the Vice Chair's questions. Thank you very much for inviting a member from our team to be part of your Green Team and Eddie Topenio has been recently assigned that task. Ms.Yukimura: Wonderful. Council Chair Furfaro: So we do have a Council staff member who will in fact be part of the Mayor's Green Team. I think Mr. Bynum... Ms.Yukimura: Were there some answers... Council Chair Furfaro: Oh, I did not... Mr. Mayor: (Inaudible) just overall. We have assembled a great team of men and women who represent our Administration. All have different levels of expertise. All have different ways of managing their different operations and are being evaluated, really, whether it be through the department head level or working hand-in-hand with myself. I am talking the top supervisors now that work directly within the departments. And so I work closely with the department heads to assure that the management levels are moving in a direction that is going to help the departments, of course, achieve their goals and objectives. If there is need for any type of training or any type of follow-up or support, we will talk about it. And again, everybody has different strengths. Some can deliver the message, some can do more internal reviews and have the expertise in different fields and areas, so I choose to manage that way and evaluate accordingly. And if there is anything that needs to be looked at and addressed, then I will address it, and that is how we have been managing it, and if there is any opportunity for discussion there, but be assured that whether it be through the department head, the deputy, or others within that particular structure, that if there is any need to address it, then I will. Ms. Yukimura: May I just... Council Chair Furfaro: Go right ahead. Ms.Yukimura: I think one of our concerns is whether qualified people are being hired, and another concern is that it is not just the top management. It is about middle management and supervisory, what kind of training and accountabilities are there on that and hiring practices and promotional practices that ensure the highest quality of performance. Mr. Mayor: Which leads into our whole Human Resource restructuring and looking at how we evaluate, how we hire, how we look at and seek applicants that really fit the positions that are open, and looking at opportunities in all areas, and we are sitting here and telling you folks let us work it to get to a place where we can achieve the best employees for the County at any level. And sometimes it is difficult, but at the same time if there is any type of training opportunities, I believe, with this whole reforming and restructuring that this opportunity will come about. So that is where I am with that. The Green Team...I just want to touch some of these areas. The Green Team we have already talked about. HR, I forget the question, but just overall that there is a movement there, and I know you will be having your presentation very shortly. We have been talking about the specifics. I know Chair and I have talked about it as well and all of us. So if you can hold off on that one until that full presentation is delivered to you folks. We have an office space...you want to talk about one? Mr. Heu: Regarding the Space Planning for the Civic Center, as you recall a few years ago we commissioned a study for the County to take a look at our immediate and immediate future needs. And so the first component of that has recently been completed, which was the new Fire Headquarters in the Pi'ikoi Building. And so what happened is, if you recall, we had actually budgeted about $2 million in the CIP for storage. So we were looking at some sort of off-campus facility to deal with our storage requirements, and that was either going to be to lease space or perhaps to purchase a location and erect a structure purely for storage purposes. That was prior to the Big Save space becoming available. You are right that currently there are areas within Pi`ikoi and Moikeha being used for storage. They were being used for those purposes until such time April 3, 2012 Overview p.15 as we could move ahead with the build out of Pi`ikoi. So now with the availability of the Big Save location, it really starts to...it has had a big impact on our plans, and so we are taking a look within the overall Civic Center Complex, what areas are appropriate for storage as well as office space. So the availability of the Big Save space has had us go back and relook at our plans for how we are going to do the build out of Pi`ikoi. So first thing is first, there was found to be asbestos in the old Big Save location, and so we have a contract being put out right now to go ahead and to mitigate and clean up the asbestos. That is the first step. While that is taking place, we do have some preliminary plans, revision of plans on how we intend to use that Big Save space for additional office space, as well as maybe taking a look at shifting what was planned to be office space for our storage needs. We also have the Honsador location and that is another opportunity for us to deal with some of our longer term storage requirements. I think there are some things that you may want us to keep closer to you from an operational standpoint and there are some longer term storage requirements that would appropriately allow for those things to be off-campus. So right now, again, we are in the planning stage. The plan was to move ahead with certain portions of the Pi`ikoi build out. I think the next in line was we had our Environmental Services as well as Planning. Planning g is really in need of additional space. We just brought on three additional people yesterday started with our Planning Department, and we have them in a temporary location in the Pi`ikoi Building. So we definitely are going to move forward as quickly as possible with that. But again, some of the initial plans that we had had to be revamped and relooked at based on the availability of Big Save. Ms.Yukimura: So... Council Chair Furfaro: Go right ahead,Vice Chair. Ms.Yukimura: Thank you. There is a mezzanine, is there not in the Pi`ikoi Building? Mr. Heu: Yes, that is the portion that has been used in large part for the Fire build out. Ms.Yukimura: So that is used up pretty much. Mr. Heu: Yes. Ms.Yukimura: Okay. When I am talking about storage, I am not just talking about an alternative place to put it in. I am wondering if you have explored a different form of the documents or whatever that we have to store? Mr. Heu: Absolutely. Ms.Yukimura: I mean are we looking at reduction...I mean with the IT technology and of course you have to weigh the cost, but that is the interface, right, with how we are filing, how we are...I am not familiar with the nature of the storage. I am assuming it is mainly files, and I may be mistaken. But I just want to say that conceptually it is not just about moving the stuff to another place. It is about whether we are able to reduce the volume of storage. Mr. Heu: The Document Imaging initiative continues, yes. Ms.Yukimura: Okay, and I hope it is not with the mistake that we made. Council Chair Furfaro: We did not make that mistake. Ms.Yukimura: We did not make that mistake. Thank you, I was just going to correct myself. Council Chair Furfaro: Okay, let us be very careful. The bid did not go out with the catalog indexes, which are missing. Ms.Yukimura: I mean that was, in my mind, an outrageous design mistake or procurement scoping or whatever it was. But it was requiring two actions instead of one because you did not have the categorization set up, so we had to copy all of it as I understand it and then we have to re-sort it and put it in the proper categories. Anyway, it was not the highest standard of performance. And so in handling the storage from an IT standpoint, I hope that those issues are going to be addressed. April 3, 2012 Overview p.16 Council Chair Furfaro: Just to assure you, I have met with IT on the need to now, since we have all of our records duplicated now in a file format, we need to get feedback from them on the cost to do Phase 2, which was the indexing and labeling, and that is on its way. Ms.Yukimura: Thank you. So the last thing about storage, what is the Honsador location? Mr. Chang: Kauai Lagoons. Ms.Yukimura: Oh, okay, it is that structure. All right. Thank you very much for that answer. Is there... Mr. Mayor: I wanted to just touch a little bit on the MRF and just talk directly to you, all of us here. Can we just agree that there is a need for a MRF, okay. You can smile and laugh all you want, Councilmember, but I am just telling you we all agree. Hold off, hold off. Let me speak, let speak. I am speaking. We all agree there is a need for a MRF. Now between Vice Chair Yukimura and I, where we disagree is do we need it today or do we need to really do a feasibility study and make sure that the type...there are various types of MRFs and we all agree. Now, right now as we speak we have a team in place, our Solid Waste Team, which includes Mr.John Harder, who is working on a feasibility study. I am awaiting the results. My directive to our team was to help me understand what is the need, what type of MRF do we need, when do we need it, what are the timelines so we can make a better decision on when and why. I never said we would not entertain it. I think it is needed, we all agree, but I think we disagree on the timing. And I am leaving that to the discussion when the Solid Waste Team comes forward with all the details of this particular discussion. I just wanted to say my piece, Councilmember Yukimura. Ms.Yukimura: Mayor, we have an Integrated Solid Waste Management Plan which we passed at least four years ago. Mr. Mayor: Okay. Ms.Yukimura: And the MRF was a first-year project to do the feasibility study the first year and begin to... Mr. Mayor: And when I came into office, there were many different tracks happening all at once, and I had to look at which could we actually do realistically, which projects within that plan we had to wait on and do a good study on like you always say, do the study, and now we are in that process. So I think the timing of what we are talking about is on the table right now. And I do not disagree with you, but I am telling you that when our team comes forward, I am just speaking right now, they will be able to detail out how and what has been happening, and why it is not being addressed according to what you are saying. Ms.Yukimura: Mr. Mayor. Mr. Mayor: Yes. Ms.Yukimura: Last budget session we were told that during the year between last budget and this budget we would get progress on the MRF and that it would be not necessarily at the landfill and a few months ago they said that the MRF would be included in this budget. Mr. Mayor: Okay. Ms.Yukimura: And I do not see it. Mr. Mayor: And my response to you. Ms.Yukimura: And this has been year after year after year of delay when we could be using this to divert the solid waste from the landfill and extend the life of the landfill. We are not following our plans. This is unbelievable to me. Mr. Mayor: Okay, thank you. April 3, 2012 Overview p.17 Council Chair Furfaro: I am going to end that conversation right there. Mayor, I just want to remind you that we put two days on the side for this subject. We have 2 o'clock on Friday, April 13 and we have a continuation in Public Works on Monday, the 16th. Mr. Mayor: Okay, thank you. Council Chair Furfaro: Let us be prepared for some of the specifics then. Mr. Mayor: I just wanted to make one last mention. Council Chair Furfaro: You have five more Councilmembers to go. Mr. Mayor: So just the goals and objectives, hopefully it answers a lot of the other questions, but I am happy that we were able to follow through on your, Chair Furfaro, request that our departments assemble their information packets which includes their goals and objectives, and all of their information, pie charts, everything that you need on the day we start deliberations and talk story, and all of it has been submitted for your review and your reading pleasure, and it is all in summary form, per your request, and I am happy that our department heads and our fiscal team were able to put the numbers together so you have an opportunity to review this information before we actually go into the details. And that has been given to you and you have that for your purview, and I just wanted to touch because that we Councilmembers' question, I think, on goals and objectives. I am kind of tying it into that whole discussion. And so I am done. Thank you. Council Chair Furfaro: And my compliments on submitting that. I have not read all of the material, but I will have some time at the Kalihiwai Bridge tonight on the way home. Mr. Rezentes: I have a question, I guess just a clarification for Councilmember Yukimura. You had mentioned in your discussion points the need to be sustainable in the Golf Fund, Highway, Transportation, Bus. So that I am clear, you are looking at being sustainable from both a renewable perspective or financial and renewable perspective? Ms.Yukimura: Thanks for that question. I meant mainly in financial terms, financial sustainability. Mr. Rezentes: Okay. Ms.Yukimura: Yes, thank you. I trust we are going to try to make it also environmentally sustainable. Mr. Rezentes: Sometimes you can kill two birds with one stone, really. Ms.Yukimura: Well actually to the extent that we are making the Bus System both sustainable and growable, that is very much aligned with environmental sustainability too. Thank you. Council Chair Furfaro: Thank you. It is tough to buy into financial sustainability when we are transferring almost $20 million to make this year, but that is a goal. I am going to follow our seniority here which takes us to Finance Chair, Mr. Bynum, then we are going to Mr. Rapozo, then we are going to go to Mr. Chang, then we are going to go to Councilmember Nakamura, and then we will end with Councilmember Kuali`i. Mr. Bynum, you have the floor, and again, general overview type things and what you anticipate them to get back in the various departments. Mr. Bynum: Good morning, Mayor. Thanks for being here. Mr. Mayor: Good morning, Councilmember Bynum. Mr. Bynum: Thanks for the presentation. I am not going to go down my whole laundry list of things I am concerned about. That will come up over the next few weeks. But I am going to highlight some big ones and ask a few specific questions that I would appreciate an answer to today. Let me start with saying that I appreciate your budget. I said in the media today that I support the overall gist of the message, which is we have taken austerity measures, we have made cuts, we have held off on positions, we have held off during this difficult economic time, and April 3, 2012 Overview p.18 that it is time to start addressing the services that have, to some extent, deteriorated. And so overall I support your approach to the budget. I think it is time to hire some of these positions that we have held vacant, and we will get into the details as we get into it. I also very much appreciate that you are addressing a concern that I have put out over the last few years that we not hold funds, especially receiving funds, in our Solid Waste, Wastewater. I am glad that we are in agreement that going forward we are not going to do that. I think that is very significant. I also appreciate that you are looking at the variances because I think a lot of confusion has happened among our employees and the general public of not understanding that what we budget is not what we actually do, that there is a large variance between our stated intention and what we actually do. And tightening that, I think, is a goal and you have adopted that goal. I appreciate that. I would note that those are not savings, though. In your budget message you said we are going to save money that way. You are just telling your departments do not build in money you know you are not going to spend, right? So that is a good thing and it would beg the question of you saying look at your variances and reduce the money you did not spend by 25%, why not 75%? But it is a step in the right direction. I appreciate that. You said in your statement, you acknowledged that we have raised fees in the last few years and I want to ask four questions, they each have two parts, and I would appreciate an answer from you, Mayor. The first one is do you acknowledge that in the last three years resident homeowners have paid more than$4 million in increased property tax and fees? Mr. Mayor: So you are going to ask me that question? Mr. Bynum: Yes, do you acknowledge that that is a fact? That in the last three years...you said our revenues have decreased. I agree they have. But in the last three years resident homeowners have paid more than a $4 million increase in property taxes and fees. Do you acknowledge that? Mr. Mayor: Okay. Yes. So what do you... Mr. Bynum: And you also acknowledge that tax classes other than residents have had substantial decrease in taxes? Mr. Mayor: Overall, overall. Mr. Bynum: Do you acknowledge that? Mr. Mayor: Mm-hm. Mr. Bynum: Okay, so that is part I of question 1. Is that okay with you? It is okay that residents are paying increases while everyone else is getting decreases? Mr. Mayor: I think we have gone over this over and over again. Mr. Bynum: I have never heard an answer, and right now you are in a public forum... Mr. Mayor: Our team has come before you and talked...we have even talked numerous hours with you, Councilmember Bynum, on this particular issue. Mr. Bynum: And I have never heard an answer. Y Mr. Mayor: We have gone over and over... Mr. Bynum: Is it okay with you that over the last three years while we are having decreased revenues that those decreased revenues have gone to non-residents while at the same time residents have aid increases. Is that okay? p Y Mr. Rezentes: I think we have discussed... Mr. Bynum: I would like the Mayor to answer the question, Wally. It is a fair question, Mayor. You just acknowledged that residents have... April 3, 2012 Overview p.19 Mr. Rezentes: You are only painting a part of the picture. What about the entire term of the benefit period? Mr. Mayor: We have gone through this discussion numerous times. Mr. Rezentes: Not the last three years, the entire term of the program? And I believe... Mr. Bynum: Wally, even after that discussion, I am a Councilmember here, I am the Finance Chair, I deserve to have my questions answered. I have asked you this question in private a dozen times. Mr. Mayor: And I have answered your question in all kinds of ways and you choose not to respond. Mr. Bynum: You acknowledge that residents are paying increases and that everyone else is paying a decrease. Why? Council Chair Furfaro: We can take a recess if you would like, Mayor? Mr. Bynum: I do not need a recess. I have the floor. Council Chair Furfaro: Well no, that is fair and reasonable. He has a team here. That is not unreasonable. Why do we not take a 10-minute recess? There being no objections, the meeting was recessed at 11:14 a.m. The meeting was called back to order at 11:34 a.m., and proceeded as follows: Council Chair Furfaro: We have returned from recess. You have the floor. Mr. Bynum. There being no objections, the rules were suspended. Mr. Bynum: So Mayor, Mr. Rezentes just before we went on break said well what about the longer term. I have said repeatedly here on the Council floor, during the run up of home values as home values increased, the non-resident tax category has paid big tax increases, right. But then the economy turned and since the economy has turned, the resident homeowners, you just acknowledged, over the last three years have paid increases while the other seven tax categories have paid decreases. Why is that? Mr. Mayor: Well for me, Councilmember Bynum, first of all I surround myself with great knowledgeable people who can help me with the numbers and all that stuff. I want to make clear that is why we are here as a team and we try to field questions accordingly. Right, Chair, I mean that is what we do. But I will answer the question for you. Number one, as far as tax relief, of course, if we all could at this table offer tax relief for our people, wonderful. But based on the budget that we have before you and the numbers I have to work with, it is right in front of you. The timing right now, and I agree with the Councilmembers who agreed, that the timing right now is not the right time, and I have told you this numerous times based upon our numerous discussions. I disagree with some of your numbers, Councilmember Bynum. I...hold off, this is my turn. The numbers that I have that is being given to me by our team, which includes you too because there were many discussion that we have had, hours of discussions that our team has offered you to help us understand where we need to be regarding tax relief. I totally, we all, I would love to give tax relief to people of this wonderful island of Kaua`i, but you know what? At this particular time, we do not have the resources, and we are trying to figure it out right now. And the 5-2 vote that was on the table, that is what it is. I am supportive; we are working it; I agree we need tax relief, Councilmember Bynum, but not at this particular time. We will have lengthy discussions with our Finance Team, Real Property, and all of that in our next coming budget session, Council Chair, and I would like to save that until that time. That is my statement for now because there are many discrepancies, as far as I am concerned, and we would like to make sure we get the right number in place. And I am more than happy, again, to offer the services of our people to work directly with you so we can come to a number that we can all agree upon. But until that time is done, I agree with the Council. You...the Council is the one who has to make the decision eventually on real property tax relief, the Council. I am willing to work it. That is all I am saying. Thank you April 3, 2012 Overview p.20 for the time. I look forward to our Finance Team coming forth with the numbers and the information that is going to help you, along with the people who are watching this discussion, to understand the need and the situation we are in right now with the budget that we have, and that is my statement. That is all I am going to say. I refer now to any question to our Finance Team or I would prefer, Council Chair, that we wait until our Finance discussion where we can get in-depth information. Thank you very much. Mr. Bynum: Well Mayor, you will not answer my other questions? Mr. Mayor: I have answered the question, Mr. Bynum, and that is it. Mr. Bynum: So you will not answer my other questions? Mr. Mayor: I have answered the question which you had posed to me. I am questioning you now. I disagree with your numbers and we will hold off. That is it. Mr. Bynum: Mr. Chair, I have the floor. I would like to... Council Chair Furfaro: You do not have the floor right now. I am going to pose a question to the Mayor's team. Mr. Bynum, there is plenty of time to review this on April 17. Wally, I want to expand the working period on April 17. Instead of starting Revenue Forecasting, Real Property Taxes, and Other Fees, could we start, if I am able to clear this, could we start at 8:30 a.m. and go to 12:30 p.m. on that date, Tuesday, April 17? Mr. Rezentes: Sure, that is possible. Council Chair Furfaro: Okay. Mr. Bynum: Council Chair? Council Chair Furfaro: Yes, let me finish instructing the staff, Mr. Bynum. Jade, would you make a note of that for me right now and see if we can expand that to a four-hour session. Now you have the floor, Mr. Bynum. Mr. Bynum: Just let the record reflect that the Mayor has left the room and also I want to say that I have been talking about these tax issues for two years. I presented these figures which I got from the Finance Department. In 2008 was when the change happened, and I put these figures out. I have met with the Finance Department repeatedly on the Council floor. I have said if you object to any of these figures, tell me now. So in 2008 everybody paid a certain tax bill. If you look at the three years since then, and see if taxes would have stayed static in 2008, what is the change over a three-year period. And the change is that resident homeowners have paid more than $3.1 million increases than if their tax bills would have stayed the same as 2008. And in the same period, the non-resident taxpayers have had substantial decreases. I am not objecting to those decreases because they deserve to have a reduction in their taxes, but resident homeowners deserve to have a reduction as well. My other questions, if the Mayor would have been courteous enough to answer them and be held accountable to the Council like his Department Heads are willing to be, was the Mayor has submitted a proposal for this year, the fourth year, and he has told us that there will be close to a $2 million reduction in revenues. I wanted to ask him who is going to pay less taxes as a result of your proposal for this year because everyone sitting at that table knows the answer. It is those seven non-resident tax categories. And even though we increased the low-income exemption this year, which will help people that are having a problem and that is a good thing I supported that the Mayor put forward. The resident tax class will have little or no benefit of this reduction of taxes, probably a slight increase, maybe a slight decrease, but the savings is going to go to non-resident tax classes. The last question I would have asked him is does he acknowledge that there are taxpayers that are paying say $700 and the exact same valued home somewhere else is paying $1200 or $1500 or $1700, that there are huge inequities that exist only in the resident homeowners class because every other class pays assessed value times rate, and each taxpayer in those classes is treated equitably. Council Chair Furfaro: Since the Mayor here... 1 April 3, 2012 Overview p.21 Mr. Bynum: I am almost done. Council Chair Furfaro: I understand, but you posed that question to the Mayor and I just want to make note he is not here. That is a question you said you would have. Mr. Bynum: And my last question would have been does the Administration intend to give us different rates in May? And if they do, why do they not own it when they submit their budget? So, the Mayor got really angry because I asked him these question. I think these are fair questions. And what I get in response is a blank stare. Council Chair Furfaro: Let us see if Mr. Rezentes can pose any answers to that question. Mr. Rezentes, you have the floor. Mr. Rezentes: Yes, the last question that Councilmember Bynum proposed, the bottom line is that we presented a balanced budget on March 15. We presented real property tax rates that allowed us to balance the budget on March 15. We did everything that we were supposed to do to balance the budget, present rates, etcetera, for the March 15 submittal. I have said many times in the last couple of weeks that once we receive the Certified Tax Roll data, we will be looking at rate scenarios that could change based on the Certified Tax Roll numbers. It is my opinion, and I believe the opinion of the County Attorney, that we are in the right to...we have the ability, the Administration has the ability to propose rate changes in the May 8 submittal for the Council to review. And I have said that we are going to be studying various rate scenarios over the next weeks. We are open to having discussions with Councilmembers along those lines leading up to May. And that is, again, our intention. Council Chair Furfaro: I am going to let Mr. Bynum have the floor again. He indicated to me this will be his last question directed to you folks. So, Mr. Bynum, you have the floor. Mr. Bynum: So I hear that answer, Wally, that you may submit different rates in May. Is that correct? Mr. Rezentes: For about the 10th time, yes. Mr. Bynum: I just want to say that when you submit rates in May, you had more than enough information to make a proposal in your first budget submittal about any rate changes. You know that what you propose will mean further decreases for non-resident tax categories. And when you present in May, you will give us that proposal on a Friday afternoon, and then dump this whole question into the laps of the Council, so you do not have to own it because suddenly the decision maker is the Council. I think if you were going to make rate change proposals, it should have come with your submittal in March. I do not think it is appropriate for the Administration to tactically use the May submittal to not be held accountable to your positions until the last minute. That is my statement and I think that is one of the fundamental flaws with our budget process, that your submittal comes with almost no time to do analysis or to do follow-up. We are going to spend the next 2-1/2 weeks talking about the submittal you gave us in March. You should own that submittal, including the tax rates that you just gave us. Council Chair Furfaro: On that note, I am going to move over to Mr. Rapozo. But before I recognize him, I want to make sure I summarize. I have extended the period on revenues and tax base for a two-hour session on Tuesday, April 17. I want to make sure that we know that we are going to either talk about is there a need for additional relief via the higher exemptions or as Mr. Bynum has just raised, a review of the tax rates considering the current financial conditions of the County. I also want to make sure that if the discussion is focused on what the Administration can propose, if they do so propose, and not bring up a whole discussion at this point regarding the tax rates. I personally believe that if we tinker with exemptions, we are just going to create other disparities. But I am going to leave it at that, and we are in agreement that we are going to have a longer session on April 17. That is agreed,Administration? Mr. Rezentes: Yes. Council Chair Furfaro: Thank you. On that note, Mr. Rapozo, you have the floor. April 3, 2012 Overview p.22 Mr. Rapozo: Thank you. I just have a couple of questions. It is philosophical questions, it is policy questions, it is not...I do not think today was intended to go into specifics because we have five weeks to do that. So I am going to limit it to just some overall questions, Wally. (1) We have to be careful with this year's budget because we have next year's budget to deal with next year. Have we looked at the impact to next year with the various...we are increasing some positions, that is fixed cost, that is obviously going to grow next year. There is a Reserve Fund restoration. The Resolution that we passed says we will have a reserve in a range of 20-25% of the previous year's actuals. If I do the math correctly with my iPhone calculator, our current reserve will be at 7%. So that is well below the resolution we just passed, too, in December of 2011. It also states that if in fact the funds from the Reserve Funds are utilized that it shall be replenished within a year. So that is pretty much what I am looking at. As we move forward, we have to deal with next year's budget. How are we planning and have we even thought about it, how are we planning on doing the Reserve Fund restoration, which will be probably about $11 million? Also, Wally, as you mentioned this year, you folks...and I think rightfully so and I fully support it, is the spending down of the Surplus Funds and the Special Funds. Last year to balance the budget we used $3.1 million in Special Funds paid out. This year we are spending $12.9 million, so about $10 million there that we are spending down, right, to balance the budget. So we will not have that next year, and I think you made that pretty clear in your statement. So we will not have that $10 million. So that is $10 million Reserve Fund possibly another $10 or $11 million, that is $20 million out of the chute that we have to make u and that is wh ... ou know tax relief, I have to agree with the Mayor. p>. Y Y g Y How in the heck are we going to try to offer some tax relief now? But have we thought about that? That is the question. Have we thought about that going forward? How are we going to address that shortfall next year? Mr. Rezentes: I think about it often, and I think that is one of the reasons why we need to look at the Real Property Tax Rates scenarios going forward in May, as well as in Fiscal Year 2014. There may be a need to look at operationally methods in which we do not spend down on budgetary amounts, but to be quite honest with you, I think when Council does the analysis on the budget, when we do analysis on the budget, the fact of the matter is our inability to quickly hire employees, the movements that we made in years past to dollar fund positions, all had a financial positive impact on the budget. And sad to say that our inability to quickly hire employees has provided this County's taxpayers with funds that had helped us to even build the fund balances in various accounts. It helped us to actually have a Reserve Fund. There are municipalities out there and I am sure when you engage your counterparts at HSAC and nationally at NACo, a lot of municipalities over the last three, four, five years have eroded their Reserve Funds down to zero because they felt they did not want to pass on increases in taxes, fees , etcetera, in a time when the economy was not strong enough. They did not want to pass it on, and there is only so much you can go until you hit the point where you do not have a reserve or you do not have fund balances available. And that is part of the analysis that we need to look at beyond even 2013, but 2014 and 2015 when we make these types of decisions. We need to get on a path where we are looking at revenue measures to increase fees, increase measures to increase taxes or whatever, and also at the same time look at expenditures and making sure that we are spending down on what we need to spend down, conserving on what we need to conserve. I do not have all the answers, to be quite honest with you today, but it is something that we are developing and it is something that we need to do in the coming months for Fiscal 2013, as well as 2014 and 2015. Mr. Rapozo: I guess you answered it. You have been looking at it. I think we all have to look at a longer range. It is not just this year's budget we have to deal with because that next Council, whoever it will be and your team is going to have to figure out a way...how we are going to make ends meet next year. And I think we have to keep that very close in our minds and not just try to get through this budget so we can pay the bills and then next year come up, ha, ha, people, now we get to bump your taxes because we cannot afford it anymore. And then Mr. Chair, just the last question. I know you touched on it earlier about the debt service because there is a significant increase. Are we planning to borrow more money with this refinance or is... Mr. Rezentes: No, no, we are not. Mr. Rapozo: Okay, I will limit those questions because I know the other Councilmembers have questions as well, so I will save the rest until we get into those specifics. Thank you. April 3, 2012 Overview p.23 Council Chair Furfaro: Mr. Chang, you have some questions that maybe have been surfaced? Mr. Chang: I will just ask one quick question for now. So when we decided, as you were preparing the budget, you folks cut 25% right off the board with all the department heads. Is that correct? Mr. Barreira: Councilmember Chang, if I may clarify. The 25% cut was actually 25% of the calculated lapsed average for each department. So it was a highly customized figure based on actual numbers. So it is not 25% of the full appropriation. It was 25% of that calculated average of the surplus lapsed for each department, and it was not applied uniformly because there were a couple of exceptions, for example as you know what we had talked about in the budget message was if you had attained 10% or $50,000.00 in terms of meeting that lapse requirement, then we would apply the 25% reduction of the average lapse in that particular department. We had a situation where our Elderly Agency met the calculated requirements, but we exempted them from that reduction because it would have meant a significant impact upon their operation. So we did exercise some discretion in terms of that. I think Vice Chair Yukimura or Councilmember Bynum might have made reference to perhaps 25% was not enough. Obviously, I come from a different type of budget process in my 25 years at the State level, where essentially we always were allocated a shortfall because we always ran surpluses in terms of payroll and related costs. When you do not fill positions, you run that surplus. A budget is a science of approximations. The best we can do is approximate what we need, but many times we cannot meet the exact numbers. It is not an exact science. Mr. Chang: So did we have individual discussions with the department heads to let them know in time what was coming down and what was the analogy for the department, and so in the long run, would it help or hurt? Have we identified what departments it will help or hurt? Mr. Barreira: Yes, we did meet with all the departments in terms of our entire analysis with regard to what kind of multi-faceted approaches we were going to take in terms of our budget reduction, and in terms of meeting the balanced budget requirement during our March submission. So we did have those discussions, and we were able to give them the exact dollar figures that would be impacted with regard to the reduction. We do not feel it is going to result in an inability for any department to meet its goals and objectives because in terms of a 25% reduction, in an approximated surplus average over two years, it leaves a 75% cushion, which we believe is still workable in terms of giving the department heads discretion to transfer money appropriately if necessary to meet their operational needs. Mr. Heu: Yes, the only thing I was going to add, Councilmember Chang, is that while we set the target, we left it to the individual departments/agencies to identify where that 25% reduction was going to come from. Mr. Chang: Okay, I understand. Chairman, thank you. Council Chair Furfaro: Okay. Mr. Heu, I am going to give the floor to Councilwoman Nakamura, but I just want to get one clarity on the 25% lapse. Did it include operating costs and payroll for these departments? Mr. Heu: It was a total. Council Chair Furfaro: It was a total, right. Okay, thank you very much. Councilmember Nakamura, you have the floor. To the two gentlemen in the back, after Mr. Kualii has his turn, I will entertain some testimony from the public. Ms. Nakamura: Thank you very much for your presentation this morning, and I just wanted to add a few comments. Just one that I am really glad to see the purchasing of equipment and the centralization of maintenance. I think those are really two very good approaches to management and the budget because we heard too often about workers who could not do their work or had to work overtime because they did not have the equipment and had to borrow it from another department, and therefore, could only use it on the weekend, and therefore, incurred overtime. So thank you very much for moving in that direction. April 3, 2012 Overview p.24 I also wanted to thank you for moving on the creation of a Human Resources Department, and I look forward to discussions on sort of the details of how that gets implemented. I think using the lapse approach, looking at lapsed funds from previous budgets and really trying to make the budget more accountable is very commendable as well. I think the concern that I had was all the opportunity costs that we have been missing out on because the moneys were not spent over the years. The great things we could have done with the funds had we budgeted more stringently. So thank you for doing that. A couple of things that I am hoping that we will really take a close look at in this budget process and one is adequate succession planning so that the government does not come to a standstill because a very knowledgeable person has left the County but has not adequately trained his or her successor. So I am hoping that we will fund in that direction and I want to take a real good look at the delinquencies and how we can try to...because it is substantial numbers that we are looking at again, so how do we look at previous year delinquencies? Do we write them off? And what can we anticipate to gain, what are the strategies that we can put in place to minimize delinquencies in the future. And just really looking at this whole asset management function for the County because we have some pretty incredible physical assets and how are we really using them wisely. So thank you, again, for your presentation this morning. Council Chair Furfaro: Thank you, Councilmember Nakamura. And I presume we will have an opportunity when we get the HR presentation to talk about continuity and success planning then. So please take that message back. That is going to be something that is going to come up with the Council at that time. Councilmember Kuali`i. Mr. Kuali`i: Thank you, Mr. Chair. Aloha and mahalo, Gary, Wally, and Ernie. I would start by saying thank you to the Mayor, the Administration, and all of you for the hard work that you are putting in and will be over the next several weeks as we work together to complete this budget. I, too, like the rest of the Councilmembers, appreciate the direction we are going in and making the process better. I would ask, because I know when the Mayor gave his opening remarks, as well as some of you, that you were reading off of written statements, if you would be kind enough to provide that in writing as well, so I can go back over it. And then I think the Mayor talked about it and Councilmembers have addressed questions, and you said a little more, but about this 25% average fund relapse, and I think, Ernie, you called it a matter of policy moving forward. So if there is a written policy on that that was submitted to all the department heads asking them to prepare their budgets, taking that policy into consideration, maybe you could also provide a copy of that policy. That would help me a lot. And then along that, I think a Councilmember said why not 75%. In my notes when I was first hearing you talk about it, why not 50%. So I kind of want to have an idea of how it is working, how you are proposing it to work, and what kind of dollars in the budget it represents, so some total amount. I am assuming it is going to be some million, two million, three million, some amount that is helping us get to filling that gap of the shortfall. And so if you could also provide some examples of the types of actual cuts that the departments are making. Because I know like there are dollar-funded positions. Some of them the Mayor talked about getting up to a level to provide the services so these dollar-funded positions are being funded. But there are other dollar-funded positions that are still sitting there, and I am just wondering if there is not consideration of a policy that also addresses that because the potential for that position sitting there to be filled at some point in the future is more easily done, more likely to happen because they are there. So like Councilmember Rapozo was talking about, we have to think about this year's budget process, but the following years as well. So what is happening with that as far as are we getting to where we need to be by filling the dollar-funded positions that are being proposed to be filled in this budget. And the remaining dollar-funded positions, if some of them have been there for maybe two budget cycles, would it not be prudent to eliminate that because it is sitting there potentially to be filled, but if it has not been filled for a couple of years, why would we leave them there because we can already see the writing on the wall on what this budget cycle is going to be like as far as the shortfalls and clearly next budget cycle's too because I think like Councilmember Rapozo also said is that when we fill these dollar-funded positions, now we have a larger base of salary requirements going forward. That was the whole thing I was thinking about too with the home exemptions is that once we gave those kind of additional relief, we would have to figure out to pay for it this year, but next year we would be in the same boat, having to figure out where these additional revenues would come from. April 3, 2012 Overview p.25 Maybe the last point, because we are kind of slipping into there, as I have heard, maybe it was you Wally, maybe others, in the last few months in the discussions over the home exemptions and all that we were considering, you talked about the rates and yes, we have this Roll now and based on that when the May submittal comes, the rates could be different. I thought I heard more than once you use the phrase "revenue neutral," and so I think that if the Administration is actually going to provide us or propose/recommend rates in May that actually brings us to "revenue neutral" based on what we need based on this budget that in fact that could address Councilmember Bynum's concern about one group, the homesteaders paying more because of the way assessed values went and the rates were not touched and all the other classes are paying less because they had deductions, again based on assessed value. So to me the idea of "revenue neutral" means you would propose rates that would not allow all the other categories to continue to pay less than they did the year before, and then do the opposite for the homestead classification, where they are not paying more than they paid the year before, so"revenue neutral." And those are the things I have and you can answer now or we can get it later. Mr. Rezentes: Councilmember Kuali`i, relating to revenue neutral, I can understand there may be different interpretations of what revenue neutral means. In some people's understanding of revenue neutral means that if say $80 million is the total revenue for a given tax year or for real property tax revenues is $80 million, say. You would develop a rate, a tax rate scenario that would bring you to that number. So say fiscal year 2012 we collected $80 million in real property tax revenue. We would build, based on the Certified Tax Roll, a tax rate structure to take us to that $80 million. Some people have called revenue neutral they are going to go revenue neutral based on an average of the last two or three, say, fiscal year cycles, and the revenue neutral is to that point. Again, I do not think...you cannot look in Webster's Dictionary and really define it. Everyone has, I think, a little different interpretation. Mr. Kuali`i: Just to be clear so when I was thinking about Councilmember Bynum's concerns about the different categories, you were talking about the total, not necessarily about how it would break down between the different categories. 1 Mr. Rezentes: Right, the total amount of taxation, yes. Mr. Kuali`i: But obviously after you present your recommended rates to the Council, even though the time would be short, we can consider that or we can consider maybe what other people would think as revenue neutral. Mr. Rezentes: Yes, absolutely. Mr. Barreira: Councilmember Kualii, if I could answer a couple of your questions, in terms of a policy with regard to the 25% practice that was pursued this year, it was more actually a strategy this year. My personal bias, having managed budgets for a lot of years, is that I would like a more firm policy approach and that is something that we are going to have to take up at the Administrative level. The department heads were quite receptive when we addressed this because they understood the implications of this year's budget with our fourth consecutive year of revenue reduction in terms of real property taxes. So they understood the charge and they were cooperative. Because in terms of avoiding micromanaging the budgets, we did defer to them to determine, based on their own knowledge of their operational needs, where the 25%reduction should come from, and it varied. I can give you a synopsis if that is your request, sir,,in terms of which department allocated a different set of reductions in terms of their operating budget. Am I to understand that is what you would like, sir? Mr. Kuali`i: That's good. Mr. Barreira: Very good. Council Chair Furfaro: Mr. Heu, did you want one more response? Mr. Heu: Yes, just a couple of things. Number one, relative to the exercise on the 25% reduction to the annualized or the average two—year lapse, I think one thing that we needed to help departments with this year, it was a new thing, because with the establishment of a formalized reserve...when you think about it in terms of how we budgeted over the years, it really is a paradigm shift. In years and decades gone by, we really relied heavily upon April 3, 2012 Overview p.26 that Unappropriated Surplus to provide for the balancing of the subsequent year budget and really acting as an informal type of reserve. Now that we have formalized a reserve, I think that over time we are able to do further analysis and really drill down on where those surpluses exist and how we can appropriately reduce them without putting any given department in a really tenuous position in terms of shortfall. So that is number one, just that whole paradigm shift for all of us as we look at J p g budgeting in this new environment where we have an established reserve. The other thing that I was going to say because of the number of people that mentioned it, and it is the whole proposed development of the Human Resources Department. My understanding, Chair, is that we will in fact be doing a presentation and having discussion on that as part of the Department of Personnel Services review to take place next week Thursday. At first I was going to ask for perhaps some additional time on that Thursday because of the amount of discussion. It looks like we would be managing during that review, but actually it looks like you start at 1:30 p.m. and you have it pretty much blocked off for the rest of the afternoon, so that should probably be sufficient time to address all the various concerns that have come up today. Part of that discussion, as we discussed earlier this morning, Chair, is going to be a discussion on the various positions, whether they are contractual, grant funded. To Councilmember Kuali`i's question about the various dollar- funded positions, we were having a discussion yesterday and I think it was Wally who said all dollar- funded positions are not created equally, which is true, because there are certain dollar-funded positions that will remain dollar-funded simply because those positions will be funded out of a grant or they will be funded out of a CIP project, a capital project. So there will always be a rationale for maintaining a certain level of dollar-funded positions to accommodate those external sources of funding. But we definitely hear your message relative to general funded dollar-funded positions if in fact there is no current need and/or whether it be through re-description of the position or in its original form, then should we look at the possibility of that position going away until such time as there may become a need in the future when we could come to Council to actually justify an additional position. So I think those are points well taken, and we will definitely get into more discussion on specific positions, carrying costs, I think Councilmember Rapozo identified whether we had done an analysis of the carrying costs, not just for this budget year, but for future years, and what is the impact. And so we will be prepared to have those discussions when we have the overall DPS/Human Resources discussion next week Thursday. Council Chair Furfaro: Yes, I did reserve half a day for that discussion, so we will go right to 4:30 p.m. Before I go to some public testimony as we are coming up on your time here, I did want to share with you and I am going to pass out to you, and this is more directed towards Ernie, if this can be evaluated before that meeting with the HR and the Personnel Department. It seems as we started the year and I said to you earlier that we are using $10.7 from the Reserve. I am a proponent of a much bigger reserve. I think you know that because the resolution that Mr. Rapozo read from was in fact the resolution that I introduced, but we do not have an ordinance yet. I want to say that in trying to get to the $12 million on the FIFO account, the first in money and the first out money, I only got halfway, but how I got there halfway, Ernie, and I would like you to take a look at is this payroll summary here is basically from the payroll ledger that indicates that we under spent by $1.5 million. But when I asked the question about the lapse of funds, I am hearing that you folks might have been using $300,000 of this lapsed payroll, and so I want to caution you because for a two-month period, that is $700,000.00 of unused payroll. Twenty percent of$1.5 million times the last two quarters of the year. I want to make sure that you folks are not double counting what your savings would be to get you to the $12 million. And then to support that, I have done a worksheet that indicates of the 14 dollar-funded positions and the 4 new positions, without any real knowledge of what you are recruiting and how you are paying for those particulars, I am indicating that you have tied up $529,000.00 in new payroll in a 12-month period. But I am reading in the budget narrative you are only planning to do that for about eight months. So please study these sheets a little bit because I do think we have a little bit of a reach, and then if I can point out, Gary, to you, up at the top of the worksheet that I did, because we added a $358,000.00 of payroll taxes and benefits, I am showing Social Security Benefits at 7.6%, Health Fund at 10%, Retirement Contribution is 15.5%, OPEB 34%, which gets me only to about 67%. So when we get to the Personnel process, hopefully we can tighten up those percentages a little bit, and again, today's discussion was also tied to having some understanding about new staffing and payroll costs. So I just want to leave those sheets with you for now. The Members have them. If you could help us there, I would certainly appreciate it. But now I would like to see if there is testimony from the public, and we are going to see a few of you folks at 1:30 p.m. because we are going to go into Energy and Utilities, so thank you very much. Mr. Heu: Thank you. April 3, 2012 Overview p.27 Council Chair Furfaro: On that note, are there members from the public that would like to come up? Go ahead, Glenn. Ken, are you going to speak as well? I tell you what. We have 13 minutes here. I will give you both 6 minutes because I see no one else in the audience wanting to speak. GLENN MICKENS: Thank you, Jay. For the record Glenn Mickens. I have to agree with Mel on this reserve, about this $25 million and the $10 million. You have a positive and a negative. This math I learned was you subtract one from the other to get a number. Wally tried to explain; there is some other way he did it. Maybe it is like the New Math they tried in schools many years ago. I never did figure that out. I think they abandoned it. Council Chair Furfaro: Just for your benefit right now, they will have another opportunity to present that, Glenn. The line we are most concerned with is the Operating Budget. It is the top line. Mr. Mickens: Right, okay. But again, you come up with at $36 million deficit there and... Council Chair Furfaro: We are going to get that cleaned up. Mr. Mickens: I got you. Okay, Jay, thank you. I find it interesting that the Administration continues to throw out confusing numbers when the budget for Fiscal Year 2013 is being proposed. The Administration says that the Operating Budget for Fiscal Year 2013 totals $161+ million represents a $24.6 million or 14% reduction from the current fiscal year. But then they say that the current fiscal year budget of$185.9 million includes a $25.4 million Reserve Fund, which is no longer a component of the Operating Budget for Fiscal Year 2013, and thus the large variance. Paragraph 2, which I think should have been the lead paragraph, says the County's actual proposed Fiscal Year Operating Budget expenses total $172.7 million compared to $162.5 million for the current fiscal year, a $10 million increase. Tell the people the way it is, not the way they propose it to be. Some people in the K5loa Camp are being evicted from their homes. They have been in them for 50 or 60 years. Why does not the Administration budget emergency funds to help Grove Farm fast track their 12 acres into residential zoning and leave those residents living on the 12 acres they are now on. That way Grove Farm could build their 50 units on the rezoned land, but leave the Koloa Camp as it is. In your bullet point number 8 on page 3, you state that upgrade to Po`ipu and Lydgate Beach Parks bathroom facilities are underway in an effort to set the standard for World Class beach parks on Kaua`i. Does this Administration have any idea what a World Class beach park or recreation area is like? Look at our hotels and their golf courses. These are the World Class areas. Simply building better bathrooms...and when the last bill was passed, the added restrooms were removed from the bill for larger groups of campers, so where are those "underway" facilities? This will not make a World Class Park. An irrigation system to keep the lawns green when there is no rain; have enough laborers there and their own equipment to keep the park manicured; cleaning Morgan Pond, as you have seen in the papers, after rains to allow locals and visitors to use it in one day, not in weeks; having a beach cleaning machine to keep our beaches manicured like Waikiki and all the California beaches. I have raised these questions for many years with no response. Adding restrooms would only be like putting lights in Vidinha Stadium Baseball Park. It would not make it a World Class or a first class park. It needs standard sized dugouts and enclosed fences around the outfield, dressing rooms facilities for home and visiting clubs, a good food stand, people who know how to properly maintain a good facility, and a proper press box and a proper bull pen. I will skip over a couple of these. Of the $18 million funded positions, how many of these are for the labor in the trenches and how much is for the white collar workers? I tried to find that out, maybe I... I tried and looked through that budget thing; it would take a CPA or somebody to be able to analyze that thing. It is way above my pay grade. Council Chair Furfaro: Did you say you pay grade, way above your pay grade? Mr. Mickens: Pardon, yes, way above my pay grade. Council Chair Furfaro: Oh, okay. April 3, 2012 Overview p.28 Mr. Mickens: Not yours. From all of my research, I found out that when Larry Teves was in charge of our roads, we had a total of 51 laborers in our baseyard to cover an area from Puhi to pass Anahola. Today we have 19. This is the research I have gotten talking to some of the guys in the trenches. We desperately need more labor and proper equipment for these workers to make Kaua`i truly the Garden Island. I see nothing in this budget to open more cane haul roads to alleviate traffic. Was not the closing of Kapa'a Bypass in our latest storm proof that Kuhio Highway became a parking lot with no alternative roads to use? And was not Kuhio Highway being cut by the Ka Loko Dam break even more reason to get more cane hauls roads and Jay's point now that they are going to close Kalihiwai Bridge for a certain length of time? To me it is just added proof that we have to have more roads on this island to traverse getting from Point A to Point B. All these proposed projects, but again nothing for alternate roads to travel on, not only for alleviating traffic but for emergency means of traveling our island as with hurricanes, tsunamis, fire, or even accidents on one highway (inaudible) this island. Anyway, I know that you said, Jay, that we are going to have further things on Public Works and Parks and Recreation. I will keep some of this for that particular testimony. But I do appreciate you guys sitting here for hours and hours going through these things, quizzing...I was highly disappointed in hearing the Mayor walked out of the place when I thought Tim was asking some very pertinent questions. I thought it was easily answered, but I was disappointed in the Mayor leaving. Anyway, thank you very much, Jay. Council Chair Furfaro: You know what I am going to do, I am going to give you a copy of what I just gave Finance, and please note I stamped it. It is the same piece that Councilmembers got, but it tries to reconcile those 18 positions that are going through there. Mr. Mickens: Good. Council Chair Furfaro: And again, it has some estimated PT&E with it, but since you asked the question and I have done the schedule, please notice it is stamped"draft." Mr. Mickens: Okay. When Mel went around the island going over all these things, I remember the people asking those relevant questions about how many guys do we need. In some of the places we are way undermanned. Council Chair Furfaro: I will give one for Ken, too, because I am sure he is going to ask the same question. Mr. Mickens: Thank you, Jay. Council Chair Furfaro: Thank you. Mr. Taylor, you have the floor. KEN TAYLOR: Chair and Members of the Council, my name is Ken Taylor. I would like to thank the Mayor and his team for their presentation this morning. I would like to congratulate your team for asking some tough questions. I think their time was well spent. My concerns is I see this budget and I have not had a chance to read through the whole budget, but looking at some of it, it is business as usual. And unfortunately, it is not sustainable. We have to start making some changes and we can either wait until they are forced upon us or we can start working gradually while we have some time. And I think it is time that we take a better look at our budget and what we are talking about doing here on-island so that we can be sustainable. I would like to read for you a little bit from an article written by a lady Gail Tverberg. She says we live in a world with a very limited solution to our sustainable problems. I often hear the view if we would just get off fossil fuel, then our society would be sustainable or if the price of oil would just go high enough, then renewables would become economic and the economy would be sustainable. Unfortunately our problems with sustainability began a long time before fossil fuels came around and the views above represent an incomplete understanding of our predicament. When fossil fuels became available, they were a solution to another sustainable problem, rapid deforestation and difficulties in feeding the population at the time. Getting rid of fossil fuels will likely lead to a very rapid deforestation, and many people dying of lack of water or food. If getting off fossil fuels is a solution to our predicament, it is one with a very bad side effect. It goes on, but I will not read anymore of that. But we need, on this island, to spend more time and effort making sure that we have the two necessities of life: food and water. We have the potential, but we are not addressing April 3, 2012 Overview p.29 the problem. And I think that it is time that we start looking more closely at these problems. We can do without electricity. Yes, it will not be a pleasant situation compared to today, but we could do without electricity if we have food and water. We cannot do without either one of those. You have heard this one before, but I want to read it again because I think it is very important with what you are dealing with and I am only reading these because I think, as you move through the budget process, you should keep it in mind at all times. This is from Paul Hawkins, "We have an economy that tells us that it is cheaper to destroy earth in real time rather than renew, restore, and sustain it. You can print money to bail out a bank, but you cannot print life to bail out the planet. At present we are stealing the future, selling it to the present, and calling it gross domestic product. We can just as easily have an economy that is based on healing the future instead of stealing it. We can either create assets for the future or take the assets of the future. One is called restoration, the other is exploitation. And whenever we exploit the earth, we exploit the people and cause untold suffering. Working for the earth is not a way to get rich; it is a way to be rich." And I just hope that as you move through these budget hearings that you will think about these things and hopefully...I can leave copies of this for you to reread completely. But we have to change the way we do business and the way we think. We know we see a little bit of blurbs in the paper recently that tourism is up, the economy is coming back. Well, I will tell you it is a very short period that this is going to be an uptake because we cannot sustain consumption that we have been using for the last 50 years, and until we get a grip on the reality of consumption the way we have been doing things, it is not sustainable. It is not about me and you folks, it is about the young people of this community that really is concerning to me. We are cheating them out of a life that will be worth living. Thank you. Council Chair Furfaro: Ken, my staff did give you a copy of the spreadsheet. Again, I just want to reiterate that it was just a draft by myself. It was not compared with anything. And secondly at 1:30 p.m. when we come back, we will be going through Energy and Utilities. I will provide anyone who wants to speak again, three minutes during that time. So if you are back, I just want to let you know you will have an opportunity to speak at the end of that too. Mr. Taylor: Thank you. Council Chair Furfaro: On that note, it is 12:30 p.m. and we are going to go into a recess until 1:30 p.m. The budget review was recessed at 12:33 p.m. April 3, 2012 Utility/Energy Costs p.1 The departmental budget reviews reconvened on April 3, 2012 at 1:37 p.m., and proceeded as follows: Councilmember Bynum (present at 2 p.m.) Councilmember Rapozo (present at 2:18 p.m.) Excused: Councilmember Yukimura UTILITY/ENERGY COSTS: Chair Furfaro: Aloha everyone. We have now returned from our recess and I also want to make note that Council Vice Chair Yukimura will be absent from today's session, but for the Members, I submitted 11 questions from the Vice Chair to the Energy Team, and I have asked them, as I communicated back on February 10, 2012 to the Administration, we are hoping for a 48-hour turnaround on the questions. So on that note, Glenn, do you want to bring over your team or do you want to bring them all up? We have three chairs. So I understand that the two of you, you and Ben, will go through the PowerPoint, and then we will have Brian in reserve, then we will have Ernie backing up Brian? So you have a whole team here. The rules are suspended, Glenn, you may start with your opening narrative and then we can go into your PowerPoint. There being no objections, the rules were suspended. GLENN SATO, Sustainability Manager: Good afternoon, Council Chair and Councilmembers. I just wanted to... Chair Furfaro: Excuse me, Glenn, for the record I want to confirm that you did get three copies of the questions from Vice Chair Yukimura? You do have them? Mr. Sato: Yes, I do. For the record, Glenn Sato, Sustainability Manager for the County of Kaua`i. With me is Ben Sullivan, Energy Coordinator, and also sitting in the gallery is Brian Inouye, the Building Officer and Facility Energy Specialist and also recently Certified Energy Manager. Chair Furfaro: That is great. Mr. Sato: I just want to go through the PowerPoint. The slides are numbered on the top middle section for ease of questions after the presentation. But if we can just go through the presentation and hold the questions until the end that would probably... Chair Furfaro: That will be our plan. At your request, we will hold questions until the end. Mr. Sato: This first slide is basically to give you a perspective of kilowatt hours used in the last fiscal year. Fiscal year 2009-2010, if you notice, it is almost 20,000,000 kilowatt hours, 19.972. When you compare that with fiscal year July 2010 to June 2011, you can see that the kilowatt hour usage has dropped, but the dollar amount that we paid for the electricity has increased, and that is basically due to the price of oil. Whenever oil prices increase, our utility bills go up correspondingly. We are in that phase right now when you look at the gas prices as you pass gasoline stations. When you see our prices getting close to $4.75 or $4.80 per gallon, you know that our utility fuel costs are also going up. This is basically a breakdown of how Economic Development tracks electrical use data. Public Works Wastewater facilities, Public Works Building Division facilities, Parks & Recreation, Water Department, Streetlights, and there is an Other category where a lot of the smaller accounts are aggregated. This graph here basically is just a visual presentation on...you can just see that Water is the largest electrical use in the County. It is roughly 38%. Next is Wastewater, approximately 23%. Building Division is approximately 17%, and Building Division facilities, they cover the Police/Prosecutor/Civil Defense Complex; they cover Civic Center, Historic County Building, the building we are in right now, Annex I next door; and there is a description as we get farther down the slides. So you have the smaller users, Streetlights is about 10%, Parks around 6%, and the Fire, Police, and Others, you can estimate at just about 2% or so. April 3, 2012 Utility/Energy Costs p.2 So as I mentioned, this breakdown and data is via the KIUC record keeping system. We have roughly 300 County accounts that are being billed at any given time. And this is pretty much what the KIUC printout looks like. It gives the account number, and the account number, the first long list of numbers there, it is all the same for every County account. It is the subaccount number 321 and 326, those are specific to the respective facilities. So 3190 Kapule Highway, that is the Lihu`e Wastewater Treatment Plant, that is account number 321. And if you look at the "A" that is right below that, the rate heading, "A" means that account is Active. Under the rate category, "5P1" basically says that it is on a P-schedule, and the facility code is just Economic Development's coding system so we know that everything under Code Q is a Wastewater Account. It gives you the months in the fiscal year, the kilowatt hours used per month, the billed dollar equivalent, and the dollar amount is the billed amount, so it includes anything from customer charges to kilowatt hour usage, etcetera. Next is KVARH, KW, and then Power Factor. The Power Factor comes in only on the really large, large facilities. Going to the list of facilities, Public Works Wastewater Facilities, you have four wastewater facilities: Wailua, Lihu`e, `Ele`ele, and Waimea. We also track all of the supporting facilities, such as pump stations, booster stations. These stations with any type of meter have their own accounts. Public Works Building Division, as I mentioned before, they pay the bills for the Police, Prosecuting Attorney, Civil Defense facility on Kaana Street. They also cover the bills for Lihu`e Civic Center, Historic County Building and Annex I, and also the portables that are being used by Convention Hall. Department of Parks & Recreation covers anything from athletic fields, tennis courts, pavilions, our two swimming pools at Kapa'a and Waimea, any park facilities such as Lydgate, Spouting Horn, all the gymnasiums, the neighborhood centers, the stadiums, the War Memorial Convention Hall, and the Wailua Golf Course. Department of Water, this includes their operations and office and lab facility. It includes all their wells, their pumping stations, storage tanks. This does not include the Lihu`e Surface Water System, as I was advised the County purchases the water and it is all inclusive of any other charges. Fire Department, we have their Administrative Offices. They were on Akahi Street. We have those numbers from their rental on Akahi Street. They recently moved to the Pi`ikoi Building, so their use at Pi`ikoi will be lumped in with the Pi`ikoi Building meter. Waimea Fire and Police facility, Hanapepe Fire Station, Kalaheo, Koloa, Lihu`e and Kealia is the Kaiakea Fire Station. Police Department, they cover Hanalei Police and Fire, and various tower sites for communications. Streetlights, as I mentioned, this is roughly about 10% of what we use in terms of kilowatt hours. As of February 2012, KIUC's count is that we have 2,902 total County streetlights. And by streetlights, these include the streetlights that you see along the roadways. It also includes traffic signals and warning flashers. The streetlights are unmetered. So basically the County is being charged by a predetermined stipulated use and approved PUC rate schedule. Traffic signals and warning flashers are metered, so those are billed according to use. The majority of our streetlights are 100 watt high pressure sodium. They have some 150 watt and 250 watt streetlights at the intersections. The "Other" category includes Public Works baseyard, Solid Waste, Civil Defense, the Auditor's office rental, Housing, and also Transportation. And as I mentioned, this is just Economic Development's way of keeping track of our usage. Just moving on I just wanted to just talk about or mention some of the recent energy efficiency projects that we have implemented. In 2010 we did the WorkWise Office where we installed LED replacements for the T-8 fluorescent lights. So we are trying out the LEDs there. The windows have been tinted. They also have daylight sensors. In 2009-2010, the Fire Department replaced 7 of their inefficient refrigerators. Civic Center in 2010, we also replaced some T-8 fluorescents with linear LEDs. This was a pilot. What we did was there were some security lights that were on 24/7, all the time, primarily April 3, 2012 Utility/Energy Costs p.3 over the doorways and major entrances. So we purchased some really emerging technology LED lights and replaced them. And so far we have been going on probably year three, so early 2010/2011, so it is over two years now, and we have not had any failures at all, and they have been working well. It is a matter of waiting for the price of the technology to really come down. We worked with the Fire Station high bay lights. Those were T-12s, and we changed them to T-8s. That was done in 2011. 2011 also saw some installing additional air handler controls at the Lihu`e Civic Center. We also did the window tinting in 2011. This project was actually...it was a hurricane hardening project, but the side benefit was that it came with tinting that basically cut the heat gain into the building, so it helps the air conditioning unit. We also had a hand in this building right here, the Historic County Building renovation project. The Parks Department is going through a sports field lighting retrofit. It is part of the Shearwater Agreement. I will report on that a little down the line in terms of what has been completed and what still needs to be done. That update was provided by the Parks Department. And we are also testing LED and induction lights at the Lihu`e Civic Center parking lot. So if you are around this area nighttime, try driving on the north side of the parking area, the Civic Center parking lot, and you will see the distinct differences in the lights. This is the Parks lighting retrofit. As reported by Parks, they have completed Vidinha Stadium — the football, soccer and track fields. They have completed Hanapepe Stadium — the football and soccer field; Peter Rayno Park; Lihu`e Tennis Park; Isenberg Park; Kapa'a New Town Park — the football field. Still to be completed is the Kapa'a New Town Park —the softball, soccer, tennis, basketball, and roller hockey areas. Still to be completed also includes Waioli Town Park, the Hanapepe Stadium tennis area, Wailua Houselots Park, Waimea Canyon Park, Koloa Park, Kekaha Park, Kalawai Park, Wailua Homesteads Park, Waimea tennis courts, the Vidinha Stadium parking lot, Anahola Village Park, Vidinha Stadium baseball field, and Kilauea Park. Chair Furfaro: Excuse me, just on that note so we are all square, to be completed in the near future? By the end of this year? Is this list prioritized by which it is going to be... Mr. Sato: It is not a prioritized list. I would defer to the Parks Department in terms of the schedule of completion. Chair Furfaro: Very good, I will keep that question for them. Mr. Sato: Some of the Efficiency Projects that are ongoing or we are working on right now is our Wastewater Energy Savings Performance Contract. We are in the Investment Grade Audit phase. Ben will highlight the details right after this. We are working on a Building Division/Parks Department Energy Savings Performance Contract. We are working to develop a draft RFP, so that is being worked on right now, and we are also looking at the Energy Management System, and how we can possibly upgrade the entire system. We are doing our due diligence and research phase right now too. This is the Wastewater Energy Savings Performance Contract, so I would like to turn it over to Ben right now, and he can walk you through what is happening. BEN SULLIVAN, Energy Coordinator: Thank you Councilmembers. We are very excited to be... Chair Furfaro: Ben, you have to introduce yourself. Mr. Sullivan: I am sorry, Ben Sullivan, Energy Coordinator, for the record, and we are very excited to be in the middle of negotiations actually on this Wastewater Energy Savings Performance Contract. There has been a lot of work done already. Glenn and the office got the initial invitation for proposals out quite a long time ago, and selected a contractor, and they already turned in their Investment Grade Audit, and we have been putting a lot of review into that, and just heavily into negotiations. Just for review, the contract is done by an Energy Savings April 3, 2012 Utility/Energy Costs p.4 Company, who comes in and analyzes all the systems at these Wastewater facilities and studies them for energy saving retrofits. So there are all kinds of equipment at all these facilities, obviously, and they propose renovations based on energy savings, which is not the typical path, but one that yields considerable energy savings as you do these capital improvements. The scope of the project is just the three facilities as you see up on the screen. Waimea, who was obviously in the middle of a different process, and so that was omitted from this contract. This is a slide that shows some of the proposed recommended energy savings measures, and there are things in there that you may or may not have interest in. I know, Council Chair, that you have some background in this. So things like rotary drum thickeners and lighting retrofits, power quality management, the aeration blowers—this is Ed Tschupp's area, and he has worked very closely with the contractors to make sure that these are going to meet their needs and also going to operate appropriately. But there is going to be some very significant energy savings as a result. Here again, is the ECM Savings Summary Table. So you are seeing on the left the measures broken down by plant, and then on the right side of the slide there, you can see the annual savings qualified for each measure, and these are estimated savings. It is important to note that there are a lot of operability variance in terms of what the weather might be like or what the influence condition is, and how much volume there is and things like that. But the Energy Savings Company does the best job they can. In this case Chevron Energy Solutions is doing the best job they can to estimate that, and as we negotiate the contract, we get into the fine points of these estimates as well. So there you are seeing the total of the estimated savings for the ECMs from this project, and that is a little over a million kilowatt hours, so 5% of the overall County energy use, in this case almost 25% of Wastewater's use annually. So we are very happy with that result and we look forward to being able to implement the project. There are some additional notes in here that are worth paying attention to. The tax exempt lease purchases, one of the financing mechanisms, I think we have covered everything on that slide. Another very significant component of these projects is the opportunity to put in PV at two of the three facilities. The proposal, as it exists today, includes options with the possibility of putting in PV both in Lihu`e and `Ele`ele. In Wailua, we are unable to because of land constraints out at the plant. But both in Lihu`e and`Ele`ele we feel like we have some land area and some load that we can match up with that, and we are working with KIUC to see if those systems are going to go forward, and then we will be negotiating with the energy savings company again to execute those projects. I think Glenn already mentioned this, but next in the cue as far as energy savings performance contracts is to look at all the public works and parks facilities, and take it through the same process. Where we are now in that is we are just developing the invitations for proposals and as background for the Council, it is an invitation as opposed to a request because it is a list that is prequalified through DAGS. So DAGS basically prequalifies a limited list of ESCos. I think there are about six of them on the list. And the invitation goes out to all six, they return the proposals, and then the County will review those proposals, and choose the one that is most favorable to the community. Mr. Chang: Mr. Chair. Chair Furfaro: Go ahead. Mr. Chang: Excuse me, when you use your acronyms like DAGS, for the viewers, can we just let them know what the... Mr. Sullivan: I would be happy to, yes, thank you, good point. (Mr. Bynum was noted present.) Mr. Chang: Thank you. Mr. Sullivan: So DAGS... Chair Furfaro: For some of us too, huh, Dickie? Mr. Chang: I did not want to admit that I did not know what he was talking about. April 3, 2012 Utility/Energy Costs p.5 Chair Furfaro: I will join on. If you can expand on the acronyms, it would be appreciated. Mr. Sullivan: The State Department of Accounting and General Services is DAGS and if there are other acronyms, I would be happy to pick up on them. I might say ESPC a lot, which is Energy Savings Performance Contract, and then ESCo is Energy Savings Company basically. But please catch me, I have a bad habit of using some acronyms. Mr. Chang: And when you get there, you can repeat it again. Mr. Sullivan: All right. Mr. Chang: Thank you. Mr. Sullivan: We are hoping to see at least a 10-20% savings out of this next one as well. And that is to say 10-20% savings on the total usage of those facilities, which in this case is a little over 20% of all of the County's energy use. So if you include Public Works Buildings, as well as Parks facilities, that ends up being, as you see in the top bullet there, 4.6 million kilowatt hours in this last fiscal, so significant savings opportunities. When we do this we have to be careful and look at what has already been done because some of those...if we have done recent retrofits, as you can see again on the slide, they will have an impact on our ability to really get deep savings out of the contract. But we are still very positive about the potential. Now this I am going to hand back over to Glenn to take it from here. Thank you. Mr. Sato: Glenn Sato, Sustainability Manager, again. This slide basically shows what we have done in the past in terms of renewable projects. We have put in some PV streetlights at the Kaua`i Resource Center. That was in 2000. We have also helped the Water Department in 2001 add PV (photovoltaic) power to their SCADA system. These were installed at six water tank sites. Mr. Chang: SCADA? Mr. Sato: Sensory Control and Data Acquisition System, so basically it is a remote wireless...it collects data from the remote locations. The Lihu`e Civic Center Pi`ikoi Building PV system went in in 2011, and we just completed the Kaiakea Fire Station ground mounted PV system earlier this year. I just wanted to point out the Lihu`e Civic Center System, we have a monitoring system that provides real time performance. It provides the public with the ability to dial into it via the Internet, and they can see actual performance data. It is a deck monitoring system, and it provides PV system production, building demand. It gives you net consumption. It also gives you weather information and environmental information. And this is just a screen shot of what it shows. If you look at that graph on the right side, the blue line shows you the solar kilowatt hour production. That is the PV system. The brown line is the demand meter. It shows you what the facility is using in terms of power, and the net consumption meter is that third line. I have to tell you that we are having some glitches in the monitoring system, so we have a technician coming out this weekend, in fact, to go over both, the Lihu`e Civic Center and the Kaiakea Fire Station monitoring systems. This is just a shot of the PV panels on the Pi`ikoi Building. That is the only picture I had. That is a great shot. The Kaiakea Fire Station, same thing, real time performance can be seen at that location. It provides the same type of information as the Civic Center System. Screen shot of what we can see via that deck monitoring system. This is a shot of the ground mounted panels. If you go pass that area, it is a beautiful station, and the PV system only makes it more special. April 3, 2012 Utility/Energy Costs p.6 We have some renewable energy projects that are either ongoing or upcoming. As I mentioned, Wastewater, we are looking at Lihu`e and `Ele`ele photovoltaic power systems, estimated at roughly 700 kilowatts. We are looking at going through a Power Purchase Agreement for that. The Police/Prosecuting Attorney/Civil Defense facility, that was going through a design-build County pay for the system type procurement, but right now we are looking at the feasibility of going also with a Power Purchase Agreement and seeing which one would be more beneficial to the County. The third project is a project that I have been working on for quite a while now. It is the Kekaha Landfill Methane Project. If you look at the consultant report, the first consultant report that we generated estimated that there was enough gas to provide 1.6 megawatts of power. The Navy did a Confirmation Study and that Confirmation Study actually said that there was a 3 megawatt potential for that. So they actually almost doubled, almost doubled the estimated power that could be generated. And we are looking at...it is a County landfill, so it is County gas. But we are looking at either Navy or KIUC to come up and build a facility. So it will be a partnership. Hopefully we can do a three-way partnership that benefits the three major partners, basically the County, Navy, and KIUC. So that is still in the discussion stages right now. Chair Furfaro: Glenn, may I ask when that study on the potential was done, did we then assume also that there is no contamination of any of the potential methane? Did the study go that far? Mr. Sato: Yes, we did actually three gas quality tests on the methane, and the test results basically came in that it is your typical methane found in landfills. There was not any high levels of corrosives in the gas, so in terms of power production, that is really good news for the equipment to be used. Chair Furfaro: Great news, thank you. Mr. Sato: Some of the additional Energy Efficiency Initiatives that we are working on...as I mentioned, we are trying to improve the Energy Management System software and monitoring capabilities. We have our facilities energy expert/our certified Energy Manager Brian Inouye that will work with the facilities' staff as we implement the Energy Savings Performance Contract. With three of us on the team right now, we will be closely able to monitor the energy savings performance measures that are implemented just to make sure that we are meeting the M&V protocols. With additional help, we want to get into more pilot programs to look at new products that are coming on the market, and that is basically when I mentioned the Civic Center parking lot and testing out LED and Induction Lighting, that is where we are going on that. And we want to partner with KIUC to develop any cost share initiatives. We have been taking advantage of KIUC's Demand Side Management Program, and we have qualified for quite a bit of rebates, so we want to continue that effort. Ben and I are also working in two active energy-related dockets via the Public Utilities Commission. The first docket 2010-0037 looks at energy efficiency portfolio standards. That started just last month, March 2012. I am participating in docket 2011-0206 on reliability standards for renewable energy, and we have very spirited discussions going on right now with the various parties to this docket. Just to put it up there so everyone can see, the Energy and Sustainability Team includes myself. I started in this position September 2011. Ben Sullivan, Energy Coordinator, started his position December 2011. Brian Inouye, Building Officer and Facility Energy Specialist, his position was reallocated October 2011. Although we are...especially myself and Brian, we have been longtime County employees joining up with newcomer Ben Sullivan. We have just started, but we are actually continuing a lot of the programs, so we feel that we have a good headstart. The Expanded Roles of the County Energy Team: As I mentioned a lot of this before, but we want to look at more efficiency and renewable projects. We need better participation in these PUC dockets because a lot of these dockets set the stage for what happens in the future or what can be accomplished in the future. We want to expand our grant application and energy tracking potential. April 3, 2012 Utility/Energy Costs p.7 Some grant opportunities have come our way, and we have...with the three-man team, we have had the ability to respond faster. We want to be able to do measurement and verification of the energy savings recommendations to make sure that we are achieving what the energy savings company has promised. The fifth bullet, the ability to better track and respond to energy-related legislation, this is really coming to the forefront this session. We had one bill, House Bill No. 2121 that p rohibited State and County and Federal agencies es from entering into Power Purchase Agreements, and we vigorously opposed it. It passed from the House to the Senate, and then all of a sudden it disappeared. So it requires a lot of help in terms of tracking, what happens to the bill. It disappeared, but we are not certain that it is totally gone, so we have to really make sure that we are working with our lobbyist and with our Administration team in terms of making sure that it does not pass. Chair Furfaro: Maybe the Green Lantern had something to do with it. It is off the radar screen? Mr. Sato: The bill that contained the anti-PPA provision was gutted on the Senate side and replaced with a totally different bill. But then my understanding is that gutted version can resurrect itself... Chair Furfaro: Anytime. Mr. Sato: Yes. So that is why we really need to make sure we are tracking it closely. The second to the last bullet is we need to have better knowledge of new products and especially software that is coming on the market. That involves a lot of legwork, a lot of interacting with vendors, with our partners in the other counties, and with our counterparts on the State Energy Office level. We want to expand our participation in statewide energy and sustainability initiatives. Chair Furfaro: Glenn, do you have a bill number for that because our Ashley might be able to track it for us as well. Mr. Sato: It is House Bill 2121, House Draft 2, Senate Draft 1. But Senate Draft 1 changed the bill totally. It went from anti-PPA to a net energy metering bill, which we actually support. Chair Furfaro: Ashley, you got that? Thank you. Thank you, Glenn. Mr. Sato: This is just a list of some of the partnerships and cooperative agreements that we have forged along the way. It is not all extensive and complete, but it just gives you an idea of who we are working with. I know Vice Chair Yukimura mentioned this in one of her questions, but we have started a staff level Green Team. It was formed in January 2012. We had our first meeting February 9. We meet once a month, and our initial focus areas, the group decided that we want to look at air conditioning thermostat control program, a County ride sharing promotion program, disposables to reusables campaign, and a paper reduction campaign. Going on the last two, disposables to reusables is trying to encourage County offices to get rid of the Styrofoam, the paper plates, the plastic forks. If you have to use glassware, plastic ware, we all have sinks, so if we can all wash our dishes and reuse it that way. The paper reduction campaign is double-sided copying, copying only when necessary, trying to do more electronic transmission of data instead of hard copies. So we are making progress on those four areas. These are the members of the staff level Green Team. We tried to kind of spread out and have representation from different offices and agencies. The Mayor asked me at one time if there was a limit to the Green Team, and I said no. This is what we are starting with. Anybody that wants to join the Green Team and can get supervisor's permission, we meet every second Thursday in Pi`ikoi B. So every month we have this meeting. As we generate interest, if more people want to join us, that is fine. If the entire County wants to become a part of the Green Team, then we know we are there, we have been very successful. I just want to mention Allison Fraley from the Solid Waste Division, Jeremy Lee from Transportation, of course Brian Inouye from Building Division, Eddie Topenio from Council Services, Faith Shiramizu...she was with Water, but she just transferred to Public Works, so we are going to have to contact Water and try to get another representative who might be interested in joining our team. Shelley Teraoka from Housing, of course Ben Sullivan from Economic Development, Mary Daubert from the Mayor's Office, Lea Kaiaokamalie from Planning, and then myself. Basically, that is it. Open for questions. (Mr. Rapozo was noted present.) April 3, 2012 Utility/Energy Costs p.8 Chair Furfaro: Thank you and your team for a very nice presentation, and I just want to get a little clarity on a few items here before we open up to comments. On your KIUC actual invoices, there are two, in particular... Mr. Sato: Are you referring to page 6, the example. Chair Furfaro: It is page 6 on your samples. Tell us a little bit about the Power Factors. Mr. Sato: I will defer to Ben on that. Chair Furfaro: Okay, Ben, we have Power Factors that go from a low of 93 to what seems to be 99% across the line in the Wailua Plant. Mr. Sullivan: So Power Factor takes a little bit of getting to know. I am sure you are familiar, Council Chair, but the variable is basically when you have inductive loads, they consume some of the resources of the grid, and so KIUC will measure that and they will charge in the large power category for lower power factors. The variance for power factor in large power is +5% from the original bill. So it is not an enormous variable relative to other things, but it is important to watch. But that is pretty much... Chair Furfaro: So I guess we are watching the Wailua Plant. Mr. Sullivan: Yes, as a matter of fact, that is well within compliance. There is no penalty for the power factor you see in there. It has to be...I am not going to say because I do not recall exactly, but the tariffs are available at KIUC, and they state the required power factors before you actually start paying a penalty. Chair Furfaro: You are pretty satisfied with Wastewater there. Mr. Sato: Chair? I think I can clarify, make it kind of more simple. Chair Furfaro: Sure. Mr. Sato: KIUC's large user rate schedule, Schedule P, basically says that the average power factor of 85% is like your zero point. If you go below 85%, you get penalized one-half of 1% that is going to be added to your kilowatt hour usage for each 1% of average power factor below that 85%. Chair Furfaro: Or they take you to a different schedule, right? Mr. Sato: That is really complicated. 85 is zero. You can go 5% below and get penalized 5% or you can go 5% above and get credited 5%. So when we are hitting 95%, 96%, we are good. Chair Furfaro: 99% at Wailua, you are pretty happy. Mr. Sato: Yes. Chair Furfaro: I just wanted to explain that particular piece. Did we come across anybody below 85? Mr. Sato: We have some facilities like that. In fact, the Civic Center, what we are looking at right now is our power factor went down for Pi`ikoi when we put the PV system on. So we have to look at that and that might be part of the scope of work for the second performance contract. Chair Furfaro: Okay, that sounds reasonable for fine tuning, I guess. The Kapa'a and Waimea Swimming Pools, when it comes to their operation in Parks & Recreation, any issues there that you know of at the two pools? Mr. Sato: Right now, not that I know of. April 3, 2012 Utility/Energy Costs p.9 Chair Furfaro: Okay, moving right along on your presentation, which was an excellent one, when we measure Housing as a department, how many of our projects actually have common area utility meters for associations, walkways, common areas? Do we know? Mr. Sato: If I recall, it was just basically Pa'anau and... Chair Furfaro: Kalepa? Mr. Sato: Yes. Chair Furfaro: So they have a... Mr. Sato: Right and for some reason, they have...you can ask them for clarification, but on some of the bills, they come and go, but they have actually it looks like dwelling units where they are picking up the bill for a period of time, and I am not sure if those are in transition to be sold or what. Chair Furfaro: Okay, so we can send that question over some clarity, and I will help you restructure that if need be. The Fire Department's seven refrigerators — it is my understanding within the Fire and Police Department, they are the only two departments that are actually allowed food service refrigeration and so forth. Do you know what the replacement factors have been on these refrigerators. Mr. Sato: No, I do not. Chair Furfaro: Do you, by any chance? Mr. Sullivan: No, I do not, Council Chair. Chair Furfaro: That might be worth looking into. And when it comes to this Historic County Building, did we get the transition with the contractor who was using power versus our use of power now. Did we get a cut over time? Are we all happy that the contractor is paying, what the contractor is doing, and... Mr. Sato: Yes, I do not have the specifics on that. I believe that is Doug Haigh. I am not sure if... Chair Furfaro: Maybe Brian can help on that because I understand the first month of operation we had a pretty large bill, but they were also doing work in the building. Brian, could you look into that? BRIAN INOUYE, Building Officer and Facility Energy Specialist, Certified Energy Manager: Yes, that is correct. I will check with the (inaudible). Chair Furfaro: These are the questions on timing. We will check with the Parks Department as you suggested, Glenn, and then when it comes to the Wastewater area, the de-energizer of the chlorine contract and the tank mixer, do we know when that is happening? We are trying to get rid of the chlorine process. Mr. Sullivan: That was de-energized quite a while ago actually. It is no longer being...the motor is no longer being run. Chair Furfaro: Thank you. And the aeration blowers in `Ele`ele, have they been upgraded? Mr. Sullivan: That is a good question for Ed. In general, the ECMs that are listed with Chevron have not been performed yet because those are all capital projects that would be after we negotiate the contract and they proceed, but there are some projects that he may be working on ongoing. Chair Furfaro: Is that a shared cost savings with Standard Oil? How do we justify their participation? April 3, 2012 Utility/Energy Costs p.10 Mr. Sullivan: The way that the Energy Savings Performance Contract is structured is that the ESCo performs an Investment Grade Audit, and they propose all these energy savings measures, and they are reviewed by the County, and obviously once that contractor is selected, they get in, and the Investment Grade Audit, we review that, and then we select the measures we want to go forward with. And the capital improvements are paid by the energy savings (inaudible). So that is the mechanism through which... Chair Furfaro: So there is no shared savings plan with the contractor? Mr. Sullivan: No, there is no shared savings, no. Chair Furfaro: We get all of the savings. Mr. Sullivan: They are being paid to perform the work. That work is a broader scope than maybe would typically be done through standard procurement because they are getting all the Wastewater facilities at one time and they are doing multiple projects. So it is a very streamline procurement method, and it allows the work to be done more expeditiously. Chair Furfaro: When we get into the Wastewater Treatment Plants, I think my next question you answered, just them. I want you to know in the picture I am standing behind the Mayor, that is why you do not see me. The Trane system...maybe this is a question for Brian. I have, especially when it comes to Police/Prosecutor/Civil Defense Office, I am not pleased with the temperature we are running that chill water system at. I think it is way too low for what the building can be designed, and I think the Trane service contract failed us to some degree over there. Do you know if they have been able to make a new evaluation for us on what chill water temperature they recommend in writing so we do not get condensation? Mr. Inouye: Trane actually is only the company that did the control system. The actual... Chair Furfaro: That is the main system. Mr. Inouye: Yes, but the actual set points were actually designed by the mechanical engineer that did the building on the design build project. Chair Furfaro: Have we gotten some feedback from them because they are running those chill water temperatures 6-7 degrees lower than what I would run them in a 300-room hotel. Mr. Inouye: Brian Inouye, Building Division. We have not gone back to the Deign-Build team yet. That is something that we probably can look at or we are looking at possibly doing that with the new contract coming up on the Energy Management side. So basically Trane is following the directions of the mechanical engineer as far as the set points that were put into the system. Chair Furfaro: I understand. So we are basically saying to Trane, you are following the design, so you are correct. And I have to tell you, I have not had the greatest exposure with them in my many years of having energy management systems in place. They could make a recommendation, I think, to us that we could then discuss with the engineering group. Mr. Inouye: Okay, that is a good suggestion. I can talk to them. Chair Furfaro: Ask them for recommendations. Is Trane here in this Historic Building? Mr. Inouye: They did the controls also here, yes. Chair Furfaro: I am somewhat familiar on how to set those chill water temperatures and these are still too cold here. So if you could follow those too because I think they would help us greatly in the Police/Civil Defense Building, as well as this building, when it comes to the set of the chill water temperatures. On another note, Eddie says he is very enthusiastic about being part of your Green Team, but he is going to get a note from Vice Chair Yukimura, where are recycling buckets? So thank you April 3, 2012 Utility/Energy Costs p.11 very much. Brian, thank you for those, but I think there are some potential savings there on these chill water sets. Mr. Inouye: We will take a look at that definitely. Chair Furfaro: Thank you very much. Mr. Bynum, then Mr. Chang. Mr. Bynum: Really a couple quick questions. Is our lobbyist helping you track Bill SD 2121 and are you aware that we have a County lobbyist? Mr. Sato: Yes, we have been working with Scott Matsuura. Mr. Bynum: And are you familiar with the Building Code exemptions bill and are you tracking that? Mr. Sato: I am familiar with the bill. We are tracking it in terms of where it is at right now. Mr. Bynum: So there are a number of bills at the Legislature this year that imposing the Legislature's will, potentially, on the County's operations, right? You are aware of that? Mr. Sato: Yes, it is always a hard thing: homerule, unfunded mandates. Mr. Bynum: These are homerule issues. We adopted an energy efficiency building code and the legislature is trying to say, no, we are going to...we can pre-empt that. Homerule is an important issue for us. We should be able to control our own destiny on Kaua`i. But you have answered my question, just are you aware of these bills because I think it is really important. It is as you said, the legislature can do things that we cannot do. We cannot gut and replace in the last minute. We cannot call a hearing with 10 hours notice, right. So thank you for the presentation. Chair Furfaro: Mr. Chang. Mr. Thank you, Chairman, thank you, gentlemen. Can you give me an update, maybe when was the last time, referring to page no. 32—thank you for numbering the pages—that we had with the Navy in regards to the Kekaha Landfill potential methane update. Mr. Sato: In terms of communicating with them? Mr. Chang: Like what is their status? Mr. Sato: Right now I spoke to this gentleman named Kendall Kam, he is with the Pearl Harbor Naval Office. This is really...it is really difficult to understand, but in terms of the Navy, they view themselves as going through a procurement process. So right now it is on the Navy's side being discussed with their chain of command. We need to wait for that chain of command to provide...we have asked basically a question, are you interested in developing this project. There is a methodology where they can actually work with the local utility to develop the project, and partner with the County because we are the owner of the landfill and the gas. In order for them to clear getting to that point of working with the utility, it needs to clear their legal and administrative hurdles, and that is what we are waiting for right now. Mr. Chang: And that was kind of like my understanding. I was hoping I could get Captain Mongiello on the agenda soon, but Wednesday is not a good day for him. I was going to also ask you, can you monitor the power that is used like at Moikeha, Pi`ikoi, Prosecutor? Can we monitor everybody, how we are using different energy? In other words, would there be a separate bill for this building? Or could there be a separate... Mr. Sato: If there is a meter connected to a facility, we can monitor it. What is really difficult is say, Civic Center, Pi`ikoi Building, with one meter to monitor and say oh, how much is Elderly Affairs using and Housing and the Fire Department because we do not have that capability. It is on one meter. It is on one common facility. Mr. Chang: So you know if this building has one meter? April 3, 2012 Utility/Energy Costs p.12 Mr. Sato: Yes. Mr. Chang: So we could monitor our own energy use here. Mr. Sato: Yes. Mr. Chang: Okay. Did you want to say something, Ben? Mr. Sullivan: I was just going to add to what Glenn said. If you look on page 18, there was reference to energy management system upgrades, which is something we are very, very interested in. So we are pursuing that with a lot of vigor. There is a lot of new offerings on the market in terms of software platforms. As you all probably well know, the cost of monitoring energy and submetering and things like that has come down substantially, so we are very ambitious about changing that system, but it is a very big and involved process. So it is going to take some time. Mr. Chang: And for us because this place has been kind of retrofitted in many ways, it would be nice to look back at what we used to, perhaps, spend and how on a month-to- month basis we can personally try to better our...lower our rates. And lastly, what I was going to ask you is, with the new photovoltaics that is going to be coming up... A while back when the Kurt Bosshards or the hospital, the airport was doing their photovoltaics, just as an example, if a plate or what have you costs $5 then, it costs a dollar now. So that is going to be down the line, a tremendous amount of savings for us. My point is like say for example Kaiakea, when we are doing photovoltaic projects like...are we...is there like specs to see what kind of maybe corrodes or rusts? You know like in the mountain you do not have the onshore winds and stuff like that because I know the Fire Department on the inside because the onshore winds are coming in, so I am just concerned about a different product as far as the metals or the steel or what have you that is in consideration when we decide what we want to do. Mr. Sato: I can tell you this. We had a special meeting with Solar World, the module manufacturer, they happened to be on-island. So Doug Haigh called them in to a meeting with all his inspectors, and they talked about the corrosion problem and basically asked the module manufacturer if their product could stand up to the harsh marine environment, especially out in Kaiakea, and they actually went out there, they looked at the...so they knew what they were looking at, the proximity to the ocean, the ocean breeze and everything. And they pretty much stood by their product. So we actually have a letter of guarantee or a letter of endorsement of their product. Mr. Chang: Great, that is good news. Okay, thank you, Chairman. Chair Furfaro: Mr. KipuKai. Mr. Kuali`i: Thank you, Mr. Chair. Aloha and mahalo for all of you being here and for the work that you do. On page 4, you gave the breakdown of the kilowatt hours, and you noted that water was the highest, the largest electrical use for the County. I caught all the percentages, but I missed that one. Did you say it is 40%? Mr. Sato: In this comparison, it is for Fiscal Year 2010-2011. It is roughly 38%. Mr. Kuali`i: 38%. Another one I missed was Parks. a Mr. Sato: Parks is about 6%. Mr. Kuali`i: 6%. So in most of these different areas like Public Works — Wastewater, Public Works — Building, you had slides later that sort of gave a little bit of a breakdown, the different facilities or what have you. But for the first one, which is the largest, what...how does that breakdown? It is actually just the County's use of water in all facilities? Mr. Sato: No, this is...it is actually shown on slide 10. Whatever is under the Department of Water is their operational cost and what they are using in terms of electricity. And that includes their office building, their operations complex, and also their lab facility that is in the back. It includes all the wells. Most of Kaua`i's water is from deep wells, so April 3, 2012 Utility/Energy Costs p.13 they need a lot of pumping and a lot of electricity. Our only surface water system is actually the Lihu`e Surface Water Treatment Plant that is with Grove Farm. Mr. Kuali`i: So that water is the Department of Water. Mr. Sato: Yes. Mr. Kuali`i: And so it is actually the use of water by the citizens. Mr. Sato: Yes, this PowerPoint, the entire PowerPoint was just put together to show you County operations, and what we are spending in terms of money for electricity, and what we are actually doing to try to improve our efficiency, cut our kilowatt hours. There is not much that we can do in terms of the price because that pretty much goes up and down with the price of oil. And right now, unfortunately, we are in an upturn. I looked at January and then April, and the cost in January to what we are paying in April for residential, I think it was about a 13% increase, and for our large commercial, like our Lihu`e Civic Center, it is 15%. So in four months we've gone up 15%. And you can see that we you pass the service stations. The price per gallon of unleaded has jumped up quite a bit in the last 2 or 3 weeks. Chair Furfaro: But that is typical every year. Mr. Sato: Yes. Chair Furfaro: Okay, I mean it is important for us to understand. You get to peak around the July weekend and it takes you through August. Mr. Sato: And then you have some world events that might spike it even more like that August, I think it 2008 where it hit the high. Chair Furfaro: Sure. Mr. Kuali`i: I just...in thinking about water and how the pumping of water is the biggest use of electricity. I am just thinking if we measured the different uses of water that the County uses, not just the citizens use, but the County as our operations, and thought about conserving and moving in a direction the same way we are doing for electricity, to save, to be more efficient, to conserve, to cut back with electricity. We should be doing that with water because that in turn helps with electricity. And I just think in order for us to do that going forward, we have to be measuring it, measuring what the County uses in the different buildings for plumbing, what we put out in the public for whatever public consumption, for our grounds, so it is showing up just as electrical use by these different pieces, the Parks piece, the Public Works Building piece, but it would be interesting to see our water usage by the County, measured in different ways, the same way we are looking at electricity. Mr. Sato: You know, as we develop our energy management system and create a better database, that would be part of the...on the wish list is to be able to track water usage in that type of detail. When we do our Energy Savings Performance Contract, if you noticed on the Wastewater recommendations, some of the recommendations cover water savings, and in terms of the scope of work, the scope of work will actually give pretty much free range to the energy service company to look at not only electricity use, but water savings, and any other savings that...it could be an operational change that results in water savings, and they can make that type of recommendation also. It does not necessarily have to be like a hardware or a pump and motor change. Mr. Kuali`i: My last point on that, too, is that because with the educational part about conservation and everything, so different places within the County we can be talking about that, but if the County itself, as an entity, is leading the way by showing "and this is what we are doing." First we have to measure it, then we have to put programs in place that will be sustainable. We have to overcome this mindset that Kauai is the wettest spot on the earth. We have all our rivers, and all that. Yes, we have a lot of water, but we are paying for water, and we are using oil to pump and to distribute that water. So how are we shifting away from the kind of water we have to get with burning oil and then the other kinds of water? Our new parks and our new development of Parks and Ag Parks should be located next to streams and rivers, and we should be focusing on utilizing groundwater for the County as well as much as possible and kind of leading the April 3, 2012 Utility/Energy Costs p.14 way as an example to our citizens for their residential yards, for farmers, whatever. It is just the point about water. On the ground mounted panels at Kaiakea, why are they ground mounted and not mounted on the building? What is the difference? Mr. Sato: We hired a design engineer to look at the potential on the roof. There was not enough space. The amount of roof space facing south was not available for any good size system. Because that parcel had a...it is a large footprint and there was land available, the decision was to put a ground mounted system, and it is easier to maintain. Mr. Kuali`i: And then that is kind of what you said too about the Wastewater facilities, that two out of the three you were looking at PV, but the Wailua there was not enough land there. Mr. Sato: Yes. Wailua's footprint is too small, plus you have all those really tall, I think, ironwood trees around that facility, but the footprint itself is too small for any sizeable system. Mr. Kuali`i: The Wailua facility is pretty small too. Is it our smallest facility? Mr. Sato: I believe in terms of what it is processing, yes, it is. Mr. Kuali`i: So that is over there by Coco Palms. Mr. Sato: It is right by Lydgate. Mr. Kuali`i: Oh, by Lydgate? Mr. Sato: Yes. Mr. Kuali`i: Okay. So there is adjacent lands, though, not County land. Mr. Sato: Yes, it is Hawaiian Homes. Mr. Kuali`i: There is Hawaiian Home Lands. Mr. Sato: Yes, right. Mr. Kuali`i: And Hawaiian Homes has agreements with KIUC for their power station there. So it is a potential, I suppose. Mr. Sullivan: I think you are absolutely right, and we were definitely interested because it is a large load and the possibility of renewable energy at the site,. We did not see it as feasible for this contract because this contract has to move forward. And so therefore, because of the lack of availability of County land, we decided that it was not worth pursuing in this effort,but certainly something we are going to continue to look at. Mr. Kuali`i: This is the last thing, I missed a couple of the acronyms. What was M&V? Mr. Sato: Measurement &Verification. So basically when you install or put in an energy efficiency measure, you want to be able to measure the results of your work to make sure that it is working properly and you are achieving the savings. Mr. Kuali`i: And ECMs? Mr. Sato: Energy Conservation Measures. Mr. Kuali`i: Okay, that is it. Thank you, Chair. Thank you. Chair Furfaro: In five minutes, we have to change the tape. Mr. Rapozo. April 3, 2012 Utility/Energy Costs p.15 Mr. Rapozo: Thank you. I just have one question, and it is about that power factor. You said we get penalized if we drop. So if we install a PV system on one of our County facilities and we save electricity because we are using the sun, they charge us an extra penalty for that? Is that what you said? Mr. Sato: No. We are trying to figure out why the power factor at Pi`ikoi dropped. I guess the bottom line is if you drop below 85%power factor, then you start to incur a penalty. If you go above 85% power factor, you actually can realize a gain. What I can do is I can leave this tariff schedule that...it is technical. I think if you have an electrical engineer that you can run this by... Mr. Rapozo: Is there is a lay person's reason for the power factor to drop? Mr. Sullivan: I think...Brian may have some insight into this, but we do not know exactly what happened with the power factor and there is not a direct correlation to PV per se, so it is not...you do not put in a PV system and your power factor goes down. That is not a correlation. Mr. Rapozo: So what drops a power factor? Mr. Sullivan: Well, if you have more inductive loads, like more motors running constantly. That would bring your power factor down, would be one example, but I would be hard pressed to give you a lot more because, again, it is not...I am not an engineer either. Mr. Rapozo: Well, it is kind of scary if we are getting penalized and we do not know why. I would assume...does the audit show that, these power audits that we are running? Mr. Sato: We are not doing the audit yet on the Lihu`e Civic Center. Right now we have a technician from the monitoring system for the monitoring system company coming over. So we want to correct that first to get really good readings on what the PV system is producing. The drop in power factor, we are talking to KIUC to try to figure out if it is actually related to the PV system or if it is something else, mechanically. Mr. Rapozo: How long has the power factor for Pi`ikoi been at 85 or been that low? Mr. Sato: I do not really know what the current power factor is, but we just looked at the...when we looked at the PV system and we tried to see if there was a correlation with the monitoring system reporting accurately in terms of what the production was, we realized that the power factor had dropped. But we are not really sure how long...if it just happened when we looked at the readings... Mr. Rapozo: Does not the bill show you very month? Mr. Sato: Oh no, that bill that is up there is actually taken from a past fiscal year. It is just a cut sheet showing how... Mr. Rapozo: Try go back to that sheet. That is page... Mr. Sato: That cut sheet is only for wastewater. It is actually the Wastewater facility. Mr. Rapozo: Right, but I am assuming that Pi`ikoi has one of these, right? Mr. Sato: Right. Mr. Rapozo: Okay, so if you looked at the Pi`ikoi Building account and you went power factor...I mean it is pretty easy by this chart to say when we started with the 85 or the very low reading. It breaks it down by month, July, August, September, October, November. Just by looking at this sheet for Pi`ikoi, one would know right away when it dropped to 85 and it was at the time... Chair Furfaro: On that note, he is waving at me now. April 3, 2012 Utility/Energy Costs p.16 Mr. Rapozo: Okay, no problem. Chair Furfaro: We have to do a tape change. You got that question? That allows you a few moments to locate your pages. There being no objections, the meeting was recessed at 2:52 p.m. The meeting was called back to order at 2:56 p.m., and proceeded as follows: There being no objections, the rules were suspended. Chair Furfaro: We are back on. Mr. Rapozo. Gentlemen, do you want to take a shot on the comparison of demand versus actual...the factor, and then how the factor is calculated at a 0.5% for every point you fall below 85% utilization? Do you want to... Do you want to come back with a written answer? Mr. Sato: Councilmember Rapozo, that sheet right there reflects last fiscal's billing information for the Pi`ikoi Building. If you look on the left subaccount 354, that is the meter before the PV system was installed. When you look down below, it says 433. That is the new meter after the PV system was installed. So when you look at the power factor, we were in the 88-89 range, so we were in the bonus range or the plus. Chair Furfaro: Safe. Mr. Sato: Yes. After we put the PV system in, we noticed that the power factor had dropped to 83 and that is what we are trying to get a handle on. We have a concern that it could be related to the PV system. We are not really sure. This type of information, we get it every fiscal or every calendar year. We do not have the ability...we have been working with KIUC to try to give us monthly information. Chair Furfaro: But they should be able to answer you, Glenn, on the power factor versus the demand factor. We kind of discussed it at the break what those are. So let us send them a question about the demand factor versus the power factor, and provide Mr. Rapozo with that formula because it sure looks like it exists. I mean you drop two points below in demand, you get a charge of 1% more on the rate. Mr. Sato: That formula is on this Schedule P rate schedule. Chair Furfaro: But I think they are controlled by the PUC, so they better have some pretty exact standards because they are controlled by the Public Utilities Commission. That should be a question you should send back over to us to satisfy Mr. Rapozo. Mr. Rapozo: So Glenn, from July 2011 to the present, we are still looking at the 83 number? Has it been consistently below 85? Mr. Sato: I do not know if it is right at 83 all those months, but I would have to go back into the records. I only brought this last printout for fiscal year ending June 2011. Mr. Rapozo: KIUC would have to give us that information. Mr. Sato: Sure. Mr. Rapozo: I am not an electrical engineer, but I am an investigator by trade. From pre-PV we are at 88—89. Post we are 83 down and consistent at 83. One would believe that it was probably caused because of the PV, unless there is something else, and it has been a year, almost a year. Mr. Sato: Right at that time, too though, we had the Fire Department System that was just being completed. I am not really sure what we can point to at that point. It is not just...I would not say it was totally because of the PV. Mr. Rapozo: I think we have to find out. April 3, 2012 Utility/Energy Costs p.17 Chair Furfaro: I think Ben has some more to answer to you. Mr. Sullivan: Councilman, I think you are bringing up a great point, and again, back to the idea of energy monitoring, these are the kinds of things that we can actually flag and alert once we have a system up. The reality is it is somewhat difficult right now in that we have been getting annual hard copy data from KIUC that we can input manually. And they have improved on that in that we get it in Excel now monthly, but that just has only been in the last couple of months. So it is an excellent point, and we hope to get that kind of functionality once the system is up and running, so that we can remedy these type of problems very quickly. Chair Furfaro: You can remind them from me that I think we are one of their top five customers. Good question. We will send it over, Mr. Rapozo. You have any more? Councilwoman Nakamura? Ms. Nakamura: To follow up on that point, though, so the system that...the energy management system, is that something that we...it is a software program? What is it that we need to put in place? Mr. Sullivan: There is an amazing number of offerings out there in the market right now, and it is kind of the wild, wild west. There is things as basic as just taking meter data and inputting it, and all you get is what we are getting now, what we get electronically. As you are all very aware, there is also advance metering going in with KIUC and so there is potential for additional data to come in. Beyond that there is submetering that is now quite a lot less expensive and circuit level metering. So, really what we are looking is the entire range of offerings, and we are trying to figure out what is the best fit for Kaua`i without spending an undue amount of time making that decision. We recognize it is a fairly urgent matter. So, I guess that is the (inaudible). It is typically software and it is software as a service, like a cloud-based solution where anyone can access it based on the security in the system. Ms. Nakamura: I know about four or five years ago I was on the Cost Control Commission when this first came up. That was the problem. It was having 300 accounts and no one really monitoring it, no one really being accountable, and no way to really summarize the data. So it was actually done manually, I guess, as it is now. So it is good to see the team in place, the audit recommendations being looked at. I think we are moving in the right direction here, and I think this is a really great direction we are heading into. So thank you for your summary. Mr. Sato: One comment I would like to make is that I think Brian's role is really critical because when I used to track the utility bill information and interact with the respective agencies, sometimes only the old timers knew what was going on. For example when Dee Dee Morikawa was downstairs as the Office Manager for Parks & Recreation, I called her up and I said, this does not make sense. KIUC is flagging this as a comfort station, but the use is super high. And she tells me, oh yeah, the ball field lights are connected to that meter and that is why it is like that. Without her knowledge, I would not know that. That is the type of interaction we need with these agencies to get those little nuances and be able to jot that down and have that in your notepad so you know what is being connected to a particular meter. Ms. Nakamura: I think it is just going to help a lot with accountability. So it is just good to see that you are moving in that direction. Council Chair Furfaro: Okay, well that is nice to have a nice comment at the end. I am not so much buying into this, okay. This is not the first year we have talked about, Ben, submetering. It costs about $2200 to submeter some of these outlets, no different than a hotel. You put a dress shop, a snack shop into the facilities, you submeter the tenant, the tenant gets an invoice. To me, Nadine is new, Ben, you are new, and so forth, but this is an old discussion. If we are serious about having people...instead of calling up Dee Dee about which toilets are connected to the park lights, submeter the thing, and then we know. It is very accountable there, and so I encourage you. I know if we at least took the Pi`ikoi Building and submetered the Pi`ikoi Building and treated departments as if they were tenants, we will be a lot farther along on this thing than we are right now. But the progress we made is tremendous. You all need to be complimented. But there is a lot more we can do than just say we have to depend on history because earlier this morning we were talking about the continuity reports when people leave the County, and we certainly do not want the person who in Parks & Recreation just by instinct knows which ball park lights are connected to which toilet lights is gone so we do not have the information. So progress has been made, but we have a lot more to do, April 3, 2012 Utility/Energy Costs p.18 and I think what I saw today was a great start, fantastic, fantastic. Brian, again, you have heard this from me, get a recommendation from Trane on our chill water systems and see what the energy management designers have to say about Trane's recommendation, and then let us set the chill water and see what happens, if people start leaving their sweaters at home. Mr. Inouye: Okay, I will do that. Council Chair Furfaro: Great job, gentlemen, great job. Thank you. The budget review was recessed at 3:07 p.m. April 3, 2012 Mayor's Office p.1 The departmental budget reviews reconvened on April 3, 2012 at 3:08 p.m., and proceeded as follows: Councilmember Yukimura (present at 4 p.m.) MAYOR'S OFFICE: Chair Furfaro: Mr. Heu, if you do not mind, I have to return a phone call and so I am going to step out, and since this is the Committee of the Whole, I am going to turn this over the Mr. Rapozo at this point. So, Mr. Rapozo? I will be back shortly. (Chair Furfaro was noted excused.) Mr. Rapozo: Mr. Heu, welcome back. Why do we not start with an overview. I know you folks had most of the morning session to discuss the overview, but if there is anything specific that you would like to cover in your presentation, everyone has your presentation, so. There being no objections, the rules were suspended. GARY HEU, Managing Director: Okay, terrific. I think ours is probably one of the shorter presentations. We are one of the smaller departments. For the record Gary Heu. Let us see, maybe what I can do is just kind of highlight some of the...I do not want to lead you through the whole presentation, but maybe just highlight some of the successes and achievements that we realized over the past year. This past year we saw the initiation of the Mayor's Community Outreach Meetings, and so we are going before the various community organizations, those places that have actual community associations such as Kilauea Neighborhood Association, Koloa Neighborhood Association, going up to Hanalei and down to Kekaha. And then we also are doing just general community outreach meetings in various geographic areas. The net effect is that we are getting out into the community quite often to hear the concerns of our citizens throughout the island. It is interesting to note- Councilmember Rapozo, you probably noticed this; I know you have been going out there and doing some community meetings too—it seems that the further we get away from core, the Lihu`e core, the more participation in the meetings we get. We find that our Kekaha meetings are very, very well attended, as are our north shore meetings up at Kilauea and Hanalei. I am not sure what the message is there, but we will continue to have our meetings in Lihu`e and give those folks an opportunity to come out and hear information from the Mayor and also be able to provide some input. We continue with our customer service initiative. That continues to be one of our major focuses. We continually look for ways to better serve the community. Sometimes things as small Y g as...I am not sure if you folks have been to the Civic Center area between Moikeha and Pi`ikoi, and if you notice there is a...as you come off the parking lot, there is a permanent structure. It has a diagram of the building, and it would be ideal if that diagram of the building noted where all the various departments were. I have so many times come across someone looking very puzzled at that board, and all they see is Moikeha and Pi`ikoi, and there is nothing in-between to tell them that the Office of Economic Development is in this building or that building. So things as small as that that we recognize and say there is a need to do a better job in terms of assisting the public to get to where they need to be. You folks have heard quite a bit regarding our sustainability initiative, not only in the Mayor's presentation this morning, but I am sure that Glenn and Ben and Brian shared a lot of that with you in their presentation that just completed. Kekaha Host Community Benefits, we listed that because although that program initially got off to a slow start, it is starting to gain traction, and it may not be at a place where everybody is 100% happy about how that program is being managed, but to a great extent we think that we are addressing the needs of the Citizens Advisory Committee as they determine it should be. You folks provided, in this past year's budget, additional funding for a facilitator, and my understanding is that process has been going fairly well. So we continue to stay connected with them. Our main role now within the County is to process those grants as they come to us. So we have processed some smaller grants. I think we are now in the phase where we are looking at some grant review and approval for initiatives that are substantially larger. April 3, 2012 Mayor's Office p.2 We continue to work on making our documents and our meetings more accessible to the community. I think there are a lot of people around this table who have been part of that initiative, and I hope everybody is happy in terms of where we are, and although we may still have a ways to go in certain areas, certainly, I think, people would agree that documents and access to various meetings are a lot more accessible than they were three years ago. And so we want to thank you for your support in that area. We continue to have dialogue and push forward an initiative to site an Adolescent Drug Treatment Center. There are some of you around the table who have had a long history with that as have I, and I am just happy to see that we are continuing to move that forward at this point in time. The Mayor talked about the various challenges that we are facing relative to the economy and our fiscal position, some improvements that we have made within the Mayor's Office and particularly with the communications team, I cannot say enough about how the Mayor's vision to beef up support in that area has made a tremendous difference, I think, in terms of getting information to the public. I know that probably most of you around the table are on Facebook, and I sure hope that you folks have liked our County Facebook page. If you are not, please go ahead and like our Facebook page. What we found is that that was one way that we were actually able to keep some sort of communication during the latest power outage that we had with KIUC. We were able to make cell phone calls to the radio stations, as well as to post some updates on Facebook, and again, we are trying to use every means possible to stay connected and improve our communications with the public. You folks are well aware of the Mayor's Holo Holo 2020 Plan, and on page 4 of our presentation, we have listed some of the headway that we have made in terms of implementing that plan. And a lot of these initiatives, though there are things that the Mayor wanted to see put forward, we would not have been able to accomplish without the support of this Council, so we thank you again for that. Just to name a few things, the Kaua`i Community College student ridership pilot project, you folks recently, I believe, amended an ordinance which would allow that program to continue through this school year. We recently had that free ride promotion, which I understand was very, very successful, and complemented the Department of Health and the military's Tropic Care Program, which was a great benefit to the community. We have just begun with constructing of bus shelters. We got a couple completed and when Transportation comes before you, they will make a more detailed presentation on that just to let you folks know we have just put in for a $1 million grant to help accomplish building or constructing more shelters around our island. So again, I am not going to go through the whole list. You folks can, at your leisure, take a look at that. But again, I just wanted to highlight some of the things. It has been a very, very busy year for us, and this coming fiscal year looks no different. What I wanted to do now is maybe just to shift gears just a bit to talk about our actual budget. Again, we are not one of the more fun departments because our budgets are so small anyway that we have a variance, a grand total of $97,000.00 positive variance. So rather than taking line items through the budget, I just wanted to point out where the major variances came up. As I identified earlier this morning, employee benefits is always going to be a large component of any positive variance for all of our departments this year, and we were no different. We have realized an increase of about $20,000 just for fringe benefits for our employees. One major shift is that we did take one position out of the Mayor's Office and reallocated that position. We are proposing to reallocate it to the proposed Human Resources Department, and that is our ADA Coordinator position. That will become an HR specialist position. So the net effect of that is, when you took the salary and the benefits out of that, it was abo t $94,000.00 that was transferred out of the Mayor's Office budget into the proposed Human Res urces Department. So that was a decrease in our budget; however, that was offset by an in rease in Boards and Commissions. Boards and Commissions is going to be taking on more r sponsibility in terms of supporting the Civil Service Commission and the Board of Review this oming year. So there is some additional expense associated with that. I addition, there is a omponent of the Other Services within Boards and Commissions, and a major component of that increase of$154,000.00 is about a $100,000.00 that has been identified. The Salary Review Commission is wanting to commission another study to, again, take a look at salaries within the County executive salaries within the County. So that is a new and proposed cost in that particular line-item under Other Services that is to the tune of about $100,000.00. There are additional costs this coming year for any charter amendment education that needs to take place, and we have some increased cost for our legislative web service, which allows us to better track things that are happening in the Legislature. Other than those things, there are some minor shifts. We took a little moneys out of some of our Special Projects in the Mayor's Office, but at the same time we added additional costs in there to support Boards and Commissions. So in a April 3, 2012 Mayor's Office p.3 nutshell, that is our tiny little budget that we do so much with. I am open to any questions either on the presentation or the line item budget that you folks might have. Mr. Rapozo: Thank you, Gary. Mr. Bynum? Mr. Bynum: I think I have only one question. Last year we funded a D.C. lobbyist. Did we hire one? Mr. Heu: We are in the final state of that procurement. It has been kind of a lengthy process. This particular year we had a lot of good options in terms of people who were interested in that contract. So we are in the final phases of that procurement and hope to have them on-board within a week or so. Mr. Bynum: I have to say I have a concern about that going back several Councils to when Ron Kouchi was here, and there was a commitment from the Mayor's Office that the selection and hiring and engagement with a D.C. lobbyist would be a collaborative thing between the Council and the Mayor's Office. So, how have we collaborated in that decision making? Mr. Heu: We had a member of Council Services who sat on the review, the review of the consultants. Mr. Bynum: And who was that? Mr. Heu: Jade Tanigawa. Mr. Bynum: I am sorry, Jade? Mr. Heu: Jade. Mr. Bynum: It is the first I have heard of that. Can you tell us who we are hiring? Mr. Heu: I know who it is. I am not sure if... Mr. Bynum: Probably say no. I will give you a heads up. Mr. Heu: We have not finished the negotiation and given out Notice to Proceed. Mr. Bynum: I will follow up offline on that. You remember the history, right? And we had this person last...we funded it last year and it did not happen last year or what is in this year, so it is about to happen. So it took three-quarters of a year to do the procurement. Mr. Heu: Last year we had somebody on-board last year. That was Ferguson. Mr. Chang: We did not. Mr. Bynum: You removed the funding. Mr. Heu: Right. Mr. Bynum: I mean it was there; we had the lobbyist that I thought provided us good service. Then there was no funding and no explanation. Mr. Heu: My apologies, yes... Mr. Bynum: And then there was funding again and...I mean I was in D.C. and there was no lobbyist to engage with when I was there. Mr. Heu: I think it is...to clarify, we use the term lobbyist kind of loosely. Mr. Bynum: Yes. April 3, 2012 Mayor's Office p.4 Mr. Heu: But if you folks remember during the budget discussions, it was not so much the hiring a consultant to lobby our congressional delegation, but it was to hire a D.C. consultant who was going to be able help us to identify and secure various types of grant funding. Earmarks have gone away. And so the discussion, as I recall around the table last year, was that it was important for us now to engage a consultant who would be able to help us identify various grants that the County could avail itself of within the various federal agencies. And so that is really the intent of the consultant that we are about bring on board. Mr. Bynum: And I understand that. The discussion was with earmarks going away, that does not mean federal funds go away. Mr. Heu: Right. Mr. Bynum: It actually makes it more essential that we have representation, is what I heard from our congressional delegation, that things have changed and it makes it even more... So I do not want to belabor it now, but I do not...this was a big issue about three or four years ago, and I felt there was a strong commitment to collaborate on the selection, scope of work, and I am glad someone from Council Services was involved, but that is news to me, and we can follow up. Other than that, thank you very much. (Chair Furfaro was noted present.) Mr. Rapozo: Thank you. Mr. Chair? Chair Furfaro: Why do you not continue? Mr. Rapozo: Mr. Chang. Mr. Chang: Thank you. I just want to follow up on Councilmember Bynum's question or concern because I think I know a little bit about the history, but if I am not mistaken, in our budget—I am trying to find it—we had actually budgeted travel so our "lobbyist" can come here to look at Wastewater or look at levies or look at different projects that we were asking him about. Because if I am not mistaken, they were supposed to...it was budgeted for two visits that they could come over and actually look at our projects, assess the projects, and then go after assistance. And again, Kapaia Bridge, the levies, just to follow up on all the different projects because my relationship with the lobbyist was the fact that I wanted them to come to Kaua`i to see what we had because they had to be aggressive on the hill to find out what funding was available so they could give us the heads up and get out there and go after those grants. So I really want to say myself, personally, I think it is very important that we have people...our past lobbyist is the only one that I dealt with. I enjoyed the fact that once we got up to Capitol Hill, everything was set up and my experience in the past was they were very well connected, very informed, and I felt that from what I observed, they had great relationships with the people that we were trying to...we, as the island of Kauai and State of Hawai`i. I felt very comfortable with our lobbyist, so much so that I was hoping that we would retain him because I did not want any other County to say, hey, Kauai is not interested in this firm, let us go after the firm because I just thought, in my opinion, that they were very effective. So I just wanted to say I do specifically remember budgeting for travel that they could come here, and I have wanted to say it is still very important that we can have them look at our projects. If they help us with the funding for the projects, they should be familiar at least with the updates if we are going back for more moneys down in the future. So I just wanted to state my support and importance to get them actively going again on Kaua`i. Mr. Heu: I thank you for that and I agree, Councilmember, in terms of making sure that as part of the scope of work that is negotiated relative to the on-island presence, not only to see the projects, but to interface with the departments who they are going to have to work with and even to come before the Council to provide an update on the various opportunities. Mr. Chang: Thank you. Mr. Rapozo: Councilmember Nakamura. Ms. Nakamura: Thank you. Would it be possible to get a copy of the consultant's scope of work, then? April 3, 2012 Mayor's Office p.5 Mr. Heu: Sure. Ms. Nakamura: The D.C. lobbyist's scope of work. Thank you. On the ADA Coordinator position, I just wanted to find out if removal of this position is consistent with the original Federal Consent decree? Mr. Heu: Well, I think...I do not know if I can give you a specific answer to that, but my assumption is going to be that whatever is required of this consent decree, that function would continue as that position was transferred. If you are asking was it mandated that the position be within the Office of the Mayor? That is something that we can certainly confirm to see if there is that kind of requirement. Ms. Nakamura: So why would a position that looks at implementing Federal ADA requirements be put in the newly created Department of Human Resources? Mr. Heu: I think there is probably a certain risk management type of component and tie there. When you look at the overall...when you look at that position, it really could have been placed in a number of places. Certainly in the Mayor's Office it has been appropriate, but it could also have been placed in the Attorney's Office. It could also be placed in Public Works. As we did the analysis, it appeared that since we were making this move to create a fully functioning Human Resources Department with a strong component and focus on risk management, we thought that that was probably an appropriate place for it. Ms. Nakamura: And will the requirements of the current job description of the coordinator be then transferred to the Human Resources Department, as it currently is, or will it morph into something else? Mr. Heu: Yes, in terms of the core functions, the core functions will remain. If there are opportunities to gain some synergies and in fact make it a little more cross-functional, then we would certainly want to explore those possibilities. But I think those are good questions. I think that, again, hopefully we can provide maybe a little more detail when we do the presentation on HR next week Thursday. Ms. Nakamura: Okay, thank you. On the sustainability initiative, last year one of the questions that you responded to had to do with when we would get the carbon footprint measurement, and the office's response...this was something that we got toward the tail end of the budget process, but one of the responses was that you would hope to have the carbon measurement complete by the calendar year 2011. So I was just wondering, has that objective been achieved, and if not, when would you expect to have that done. Mr. Heu: I haven't seen a final document on that, but certainly I can take that as a follow-up, and we can probably get that information to you probably within the next day or so. Ms. Nakamura: Thank you. On the Kekaha Host Benefit progress, when do you expect to have the remainder,of the 880 allocated to the community? Mr. Heu: That is a really good question. I have not seen the grants that have been coming in, and so I am uncertain as to what they total at this point in time. I cannot tell you, in fact, that the grant proposals we have, in fact, have in hand, would in fact deplete that 988. But again we can probably provide you some kind of update and get that to be part of the Public Works discussion when they come before you. Ms. Nakamura: And on the residential Adolescent Drug Treatment Center in the most current discussions, are we still looking at one site or are we looking at multiple sites to provide the treatment to the community? Mr. Heu: Hold on one second. I am going to ask Theresa Koki to come up. She has really been the lead at this point in time. And so my sense is that we are still looking at the one site that you are well aware of. But I do not want to misstate anything, so I will ask Theresa just to provide a real brief update on that. THERESA KOKI: Good afternoon, Council Chair, Members of the Council. IN answer to your question... April 3, 2012 Mayor's Office p.6 Mr. Rapozo: State your name for the record. Ms. Koki: I am sorry. For the record my name is Theresa Koki. To answer your question, Councilmember Nakamura, we are currently still looking at one site. It will be determined, however, by the feasibility consultant what other options we may have to address the need that we have here. Mr. Heu: Thanks, Theresa. Ms. Nakamura: I guess one thing that I was hoping to look for in this strategic write-up was how we address the work of our Audit Department, and part of that has to do with the fact that we, as a County, we are spending over a million dollars now on the Audit Department, and I wanted to find out what mechanisms or systems we put in place in the Mayor's Office to ensure that the work products that come out of that office are addressed and addressed in a timely way and monitored. It seems like the best place for that to happen is through the Office of the Mayor. That was just something that I was looking for and just wanted to pass that along. Mr. Heu: Appreciate the comments. Again, I have been before this Council at least a few times to talk about various audit reports, and you raise a good concern. I think that currently certain departments are identified as those who would be closest to the recommendations that are being made. Currently we are really counting on those departments to push forward the implementation. Having said that, there is always the chance that as departments are so involved in the daily work that they do in putting out the fires that they do that sometimes those things tend to get put on the side. So you are correct. We would probably welcome some additional oversight, but we are certainly not going to ask for resources at this point in time, although I have come before you to say that having this new audit agency, and the initiatives that they push forward definitely increases the workload for a number of our core departments, and I think that is important to recognize, whether or not we provide additional resources for that or not. I think it is just...it is a fact. And so recently we just responded in a timely manner to an additional audit, a fuel audit. But again, it takes people in leadership positions within those organizations to spend time and to assure that we are providing adequate responses. And then on the backend to assure that we are implementing those recommendations. Ms. Nakamura: I think that is the key, that it does take resources to respond and then to ensure follow-up, and I guess that is where it seems when you have an audit done several years ago, and then another follow-up audit that says the same things, and two or three years have passed, but nothing has been done, then why are we spending all these resources on these audits if we are not going to address the concerns. But somehow systems need to be put in place to make that follow-up happen. I think we need to recognize that there are resources on the admin side that is needed to do a good job on the follow-up side. Mr. Heu: Thank you. Mr. Rapozo: Thank you. Mr. Chair. Chair Furfaro: So Gary, there is no dispute here that the audit's dotted line is actually to the legislative body, and when they do an audit they submit it to the Administration, before they submit it to us, for your comments. And obviously after they do or do not receive commentary, the final piece comes to us. But I would strongly recommend if you folks feel you are at a point where to reconcile certain work assignments or capital projects or so forth that you respond appropriately to them that minimum resources are available to respond to the suggested pieces so that when it comes to us we have an answer. A lot of those things I actually think are dealing with early on—and I have shared this with the auditors before—they need to frame the parameters of what the standards are for certain things, such as the fuel audit recently, and so forth. It is easier for them to come back to us with a recommendation that says, parameters are needed to be placed and so forth, and then for us to evaluate, hey, do you have the resources to do that. I just want to make it clear that you are often see their reports in draft form before we see them. Thank you. Mr. Rapozo: Mr. Kuali`i? Mr. Kuali`i: Aloha and mahalo, Gary. Just some quick questions, I was trying to follow you, you were going pretty quick. The ADA Coordinator position moving from the April 3, 2012 Mayor's Office p.7 Mayor's Office to the proposed new Human Resources Department is a $94,000.00 decrease. The fringe benefits, you say, went up about$20,000. Mr. Heu: Yes. Mr. Kuali`i: Yet, when I look at the bottom line, both the Boards and Commissions budget overall and the Mayor's budget overall go up. The Boards and Commissions goes up 15.8% and the Mayor's goes up 6.8%. The biggest items you alluded to were...you printed out was the $100,000.00 Salary Review Commission, but that is all showing on page 8, yeah, in the $230,000.00 line item: Investigative hearings, masters, transcript services, charter education. Page 8 near the bottom. Mr. Heu: Okay, let us see. That is Account 30, I believe, that is. Mr. Kuali`i: So the $175,500 has a line item of video and web streaming services. Up above it has state Legislative lobbyist web services. The $230,000 has a $100,000 in there for the Salary Review Commission. Mr. Heu: What happens is that narrative is all summed up for the grand total of$405,000, right? Mr. Kuali`i: Right. Mr. Heu: And so the narrative is broken out and showing the video and web streaming services for 175, like you identified. That is a $25,000.00 increase over current year. And then the rest of that stuff is just lumped together in that $130,000.00. I have a breakout that I can verbalize to you or I can provide that to you additionally in writing, if you want. Mr. Kuali`i: I take it just because in the narrative that you talked about, nothing was talked about as far as that goes. I guess I am just looking for the difference. Mr. Heu: The biggest increases. Mr. Kuali`i: The biggest increases and that is where they are. Mr. Heu: Absolutely. Mr. Kuali`i: There is nothing with the salaries? Mr. Heu: No and in fact there was a slight decrease in salaries for the Boards and Commissions. That is because we have a new hire who was brought on-board to replace Paula Morikami when Paula stepped up to be the Board and Commissions Administrator. So the salary for that position actually went down. Mr. Kuali`i: The other thing that might be helpful is because when you look at just the position number, E-224, and a generic title like Executive Assistant to the Mayor (inaudible), is one of these positions the person that handles our drug program? Mr. Heu: Let us see. Yes, you will see Position number 9151 that is on page 8. That is spelled out. But you are right. You know it is interesting because there are working titles and then there are titles are provided via... Mr. Kuali`i: Civil Service Titles. Mr. Heu: DPS, in other words, if you were to try to find...this year we actually changed it in the narrative. If you look on page 1 of the Mayor's budget, position no. E-80. Previously you would have seen Executive Assistant to the Mayor, but we are using Beth's working title, which is Director of Communications, which more accurately describes the function that position performs. Mr. Kuali`i: Okay, so only that position on page 8, the County Drug Facility Coordinator is the only position in all these top administrative type positions that is working on our drug program. April 3, 2012 Mayor's Office p.8 Mr. Heu: There are actually some contracted employees that are funded out of a State grant. That grant, my understanding, goes away at the end of this coming June. Mr. Kuali`i: I do not know, I thought I heard something about a drug czar or something. There is no other position? Mr. Heu: Drug Czar, no. Theresa is as close as we get to a drug czar. Mr. Kuali`i: Okay, that was it, thank you. Mr. Rapozo: Thank you. Mr. Chair, did you want to take this back? I do have some questions. • Chair Furfaro: You can take the floor last and I will take the next section. Mr. Rapozo: Gary, I think they covered it most of it. The lobbyist, the change in title for E-80, that was just that, just a change in title, no salary increase or anything right? Mr. Heu: No salary increase, no. Mr. Rapozo: I have one question on the lease of the vehicle. We are in the second year of a three-year lease? And is that our lease payment for the year? Is it $24,500? Mr. Heu: That is an estimate that...we are in procurement right now, and... Mr. Rapozo: The lease is already, it is a done lease, right? Was not the lease already established? This thing says it is the second year of a three-year lease. So I am assuming that... Mr. Heu: Yes, next year this proposed budget is the second year of a three-year lease. The first year is current year right now. Mr. Rapozo: Right. Mr. Heu: And we are in procurement right now for that vehicle. Mr. Rapozo: That does not make sense. If it is a three-year lease, is not the lease for three years, so your payments are for three years? Mr. Heu: But we have not completed the lease purchase at this point in time. Mr. Rapozo: Okay, I am confused. Mr. Heu: Ernie. Mr. Rapozo: When you leave a vehicle—and I have a leased vehicle. So you go there and your first year of the lease and they say it is a three-year lease. Of course ours is only $243 a month, and it is for three years. It is a 36-month lease. Every month the payment will not change. I do not go back next year and say we need to renegotiate the lease. So I guess I am kind of concerned if it is the second year of a three-year lease, that should be fixed. That amount should have been fixed from what we approved last year. Mr. Heu: Yes, but we have not procured it yet. We are in the procurement process at this point in time. And as... Mr. Rapozo: So what did we do last year? Mr. Heu: Current year? Mr. Rapozo: Correct, this year here. It was in last year's budget, right? April 3, 2012 Mayor's Office p.9 Mr. Heu: It was not in last year's budget. This is current year is the first year that expense showed up. Mr. Rapozo: Okay. Mr. Heu: So again, we have not procured the lease yet, but we are in the process. Mr. Rapozo: But that car has been here for a year. Mr. Heu: No, we do not have a car. Mr. Rapozo: It is a new one? Mr. Heu: Yes. Mr. Rapozo: Okay, this thing says .SUV Hybrid. I am assuming it is the Mayor's car. Mr. Heu: No, that is the Mayor's personal vehicle. Mr. Rapozo: Oh, okay. So we are getting another one. Mr. Heu: I see the confusion. Mr. Rapozo: We are going to get one. Mr. Heu: The Mayor's Office...we are kind of like the step-child. We never really had a vehicle in the Mayor's Office. We used to at one point in time have one on loan from Public Works, and then... Chair Furfaro: You can borrow ours. Mr. Rapozo: We have an Explorer, though, and it is nowhere near $24,000. I guess if I do the math for a three-year program that means we are going to be paying in three years $73,500 for an SUV. Mr. Heu: That amount is probably over stated, but we did not want to get into a position where we could not negotiate for the lease because there was not sufficient funding. Mr. Rapozo: Okay, it just seems quite high. Normally a lease, there is a residual at the end of the term. So unless this vehicle is $100,000, we should not be paying $73,000 for three years, I guess, is what I am saying. Mr. Heu: Right and it is probably not $73,000. Mr. Rapozo: Well that is what the budget is. Mr. Heu: Yes, because what we found ourselves was in a situation where when we tried to go through procurement we found that the existing funds were not sufficient and so we needed to bump that up. It is probably bumped up a little more than necessary, but we did not want to have to come back again to do that one more time. Mr. Rapozo: Okay. The next question is I know you mentioned that the ADA Coordinator is being moved to HR. I guess when we get to Personnel, when we get to that department we can get more specific answers. On page 6, which is your Equal Access Department or Equal Access Division, I am assuming that is the ADA Division. Mr. Heu: Yes. Mr. Rapozo: You are still showing regular salaries of $56,196, that is not including the benefits and the trainings. On page 6, it is not listed. It is interesting. It is not listed as a position. April 3, 2012 Mayor's Office p.10 Mr. Heu: Right. What happens is when you look over to the right-hand side and the Mayor's Review, it is zeroed out? Mr. Rapozo: Okay, okay. So in essence that person is going to be...and I think Nadine may have asked the question already, but... So this person will be moved to HR and what is that person's title going to be? It is not going to be the ADA Coordinator? Mr. Heu: No, my understanding is it is going to be converted to a Civil Service position. So it would be a civil service title, which would allow us to perform those job functions appropriately. So I think again it is a Human Resources Specialist II maybe? I am not sure. I would have to go look at the Human Resources... Mr. Rapozo: And you folks believe that would be in compliance with the Burkhalter settlement? Mr. Heu: We believe it would, but it would never hurt to do the double check. Mr. Rapozo: Please, because as I remember that settlement agreement, it was pretty clear that we needed someone dedicated to ADA, not as a part-time duty or an HR person. I believe, and I know I have a copy somewhere in my files, but it was pretty clear, as I remember, that we would have to have that one person and that is all that person's function was. So if you could check, Gary... Mr. Heu: We will make sure that we are in compliance. Mr. Rapozo: We will also check as well. And then the other question, I noticed the County Drug Facility Coordinator is there now, but we do not have a drug person, the Anti-Drug Coordinator. Is that a change, page 8? Mr. Heu: The County Drug Facility Coordinator... Mr. Rapozo: Yes, we used to have an Anti-Drug Coordinator, but this here now, I am assuming the County Drug Facility Coordinator will be...I am assuming...according to your... you are going to be siting that Adolescent Treatment Center. Mr. Heu: Yes. Mr. Rapozo: So have we given up the Anti-Drug Coordinator or is that going to be a... Mr. Heu: No, that will still be part of the responsibilities. In fact, slowly we are going to make the transition. I am not sure if you saw in the news, I am not sure if it hit the news yet, but the Mayor announced yesterday what we commonly refer to as the Anti-Drug Program has been renamed, I guess you could call that a brand name kind of thing, to Life's Choices, which has maybe a more positive connotation. Because we feel that the effort really is more than an anti-drug type of effort. A lot of the work that Theresa and her team have been doing over the years has to do with underage drinking, other behaviors that contribute to potential future drug use. And so it was just felt that a more appropriate title for the program would be Life's Choices. Mr. Rapozo: And so your Drug Facility Coordinator will be doing that as well? Mr. Heu: Yes, that is all part of the package. Mr. Rapozo: That is pretty rough, Gary. That is like a lot of work for one person. Mr. Heu: Yes, we continue to look for additional funding opportunities. We said that we currently have contract employees that work under a grant, so it is our intent to continue to look for additional sources of funding so that we can continue to have a more robust program with sufficient resources to support that. April 3, 2012 Mayor's Office p.11 Mr. Rapozo: And why...I could never understand this, but why is the Anti- Drug Program under the Boards and Commissions? And I looked at the Charter...the Charter Amendment and the discussions that led up to the Boards and Commissions being formed, why are they under Boards and Commissions? It is like completely, I believe, irrelevant to each other. I do not understand that. Mr. Heu: That is a good question. It is a fair question. In part that was done as a matter of just having the ability to provide some direct oversight based on... It all falls under the Mayor's Office, Boards and Commissions, ADA, the Life's Choices Program. Within the Administrative circles, we affectionately refer to the Mayor's Office upper campus and the Mayor's Office lower campus. The ADA Program and the Life's Choices Program were situated on the lower campus along with Boards and Commissions, and it was just felt that to provide that more direct oversight, it was placed under the Boards and Commissions Administrator. I would agree that there are probably better fits, but it has suited our requirements over the past couple of years, and if something else makes more sense in the future, we are always open to consider that, but currently that is where it is located. And we felt that, again, when we were developing the Human Resources proposal, that was an opportunity to peel off the ADA Coordinator and situate it where we thought it maybe was more appropriate within HR and not under Boards and Commissions. Mr. Rapozo: Okay, I guess I just do not agree with it being there. I think the Boards and Commissions Administrator needs to be focused and concerned about the commissions and the boards, the training, accountability for our Boards and Commissions. I think and I guess maybe I just envision an Anti-Drug Program to be a lot more involved. If you ask me where I think it should belong, if you ask me between Boards and Commissions Administrator or the Police Department, I would say put it under the Police Department because I think that is where the resources are, that is where the information is, that is where the data... Boards and Commissions, Paula is back there and I mean no disrespect to her or her abilities to supervise, but I just cannot see that fit, likewise, the ADA Coordinator. At the end of the day, it is your choice. My point is I want to make sure that this island gets the best bang for the buck with the Anti-Drug Program or whatever it is going to be called now. I do not see the connection between Boards and Commissions and an Anti-Drug Office. So what you are saying is that this new Drug Facility Coordinator is the old Anti- Drug Coordinator, and that person will be in charge of this facility siting and moving forward with the Adolescent Drug Treatment Center, as well as the existing job of the grants and the...that is what you are saying? Mr. Heu: Yes, and again, I go back to the fact that we continue to look for additional sources of funding, non-General Fund to be able to continue to fund some of the contract work that is taking place to support the Life's Choices Program. Chair Furfaro: I would not start there. We are half an hour over. Mr. Rapozo: Yes, I understand. Chair Furfaro: You pau? (Councilmember Yukimura was noted presented.) Mr. Rapozo: I am done for now because of the time. Councilmember Yukimura, I know you just walked in, but did you have a question? If not, I will turn it over to the Chair and he can call up the County Attorney. We are half an hour behind. Ms.Yukimura: Right and you are on Boards and Commissions under the Mayor. Who is running the meeting, excuse me. Mr. Rapozo: He stepped out. Chair Furfaro: I stepped out. I am about ready to take it back. I am reminding us that we are half an hour off schedule already. There might be many questions that were answered in your absence. Ms.Yukimura: That is fine. I do not expect to rehash anything that I have missed right now. I am going to review the tapes of the meeting. Thank you. April 3, 2012 Mayor's Office p.12 Chair Furfaro: I do want you to know that your questions were submitted to the Energy group and I asked them to respond within 48 hours. That is our new standard, 48-hour turnaround. Mr. Bynum. Mr. Bynum: Very quickly, the Employee Council still healthy? Very small funding in there. Mr. Heu: Yes, we just had our annual Employee Council appreciation lunch and the newest development is that we have formed an executive level feedback team. One of the concerns of the Employee Council leadership was that they did not feel like they had sufficient visibility and they were wanting to be able to do quarterly presentations to an entity that would provide them feedback and additional support. So that executive...we have to find a good term for it. I do not know. I am just calling it the feedback team because that is what I see our role is. It consists of myself, the County Attorney Al Castillo, Finance Director Wally Rezentes, County Engineer Larry Dill, and Communications Director Beth Tokioka. We felt that was a good set of eyes to provide guidance if the Council was seeking guidance and input. Mr. Bynum: So the Council is still active. Mr. Heu: It is. Mr. Bynum: Their most visible thing that I am aware of is the employee events. They are still involved with the Halloween and the song contest. Mr. Heu: They are, but there have been, over the years, numerous "concerns" that are raised by the Employee Council, some regarding things as mundane as parking, things that are a little more serious such as safety,just general safety around the building. We have been in discussion with the Employee Council because, again, they do a terrific job of putting on some of those special events, but we think there is a lot...in talking with Max Kato-Klutke, who has been an incredible leader for that organization all these years, we think it has the potential to be so much more. When you look at the people who sit on the Employee Council, it represents truly a cross-functional representation of the County's organization, and what we would like to see, I think, is that...I think we all understand that there are many processes that can be improved, need to be improved within County government, and a lot of those processes involve cross-functional responsibilities, and we'have everybody represented there. So we are looking towards the Employee Council to identify some of those processes that from their perspective can be and need to be improved, and then forming a cross-functional task force to take a look at that and then make recommendations up to the executive feedback team. Mr. Bynum: The answer you are giving me is more extensive than I expected, but it also is saying to me that it is still active, it is still involved in a variety of issues,just the most visible of which are these events. And just my two cents is I am very supportive of that whole effort. I am really glad to hear that it is not just those events, it is other things, and I appreciate you mentioning Max. He is awesome and I hope he does not get burned out and some of those things fall out if he decides to take a break. So thanks for that answer and I think it is a great answer. I am happy to hear it. Mr. Heu: Thank you. Chair Furfaro: Gary, you might want to...since we are all in the canoe together, you might reference the group as the waka, and maybe your group, instead of the executive committee, you want to be the steering committee for the Employee Council. Mr. Heu: Yes, it is a tough one. That is a good suggestion. It has been a tough one because we do not want the Employee Council to feel like it is being managed, and we want to see it as a collaborative effort, and if they need us to bounce ideas off of and provide input, we are happy to do that. Chair Furfaro: Okay, anyway, that was just a suggestion. Kealawa`a, the way of the canoe, and it has to be steered by somebody. On that note, we are going to close the Mayor's Office. We have a few questions going over. The budget review was recessed at 4:06 p.m. April 3, 2012 County Attorney's Office p.1 The departmental budget reviews reconvened on April 3, 2012 at 4:15 p.m., and proceeded as follows: Councilmember Yukimura (present at 4:19 p.m.; excused at 4:39 p.m.) Councilmember Nakamura (present at 4:23 p.m.) COUNTY ATTORNEY'S OFFICE: Chair Furfaro: We are back from recess. I do want to acknowledge that Councilmember Nakamura was excused from a good portion of the Mayor's review as it went to Boards and Commissions, of which there is a possible conflict because her husband does contractual work for Boards and Commissions. She recused herself for a good portion of that piece. Now we are into the County Attorney's presentation, and Mr. Castillo has his team here. If you could have them all introduce themselves for the purpose of the record. It would be much appreciated, and the rules are suspended. There being no objections, the rules were suspended. ALFRED B. CASTILLO, JR., County Attorney: Council Chair, Councilmembers, Council Services,All Castillo, County Attorney, and I will let Pam introduce herself to all of Kaua`i. PAM COX, Law Office Manager : Pam Cox. AMY ESAKI, First Deputy County Attorney: Amy Esaki. Chair Furfaro: So Al, we have Amy Esaki and Pam Cox here as part of your team. You have the floor. Mr. Castillo: Thank you. Council Chair, first of all I know this morning you said something about being quick because the bridge is closing at 5 p.m. I remember in the early 1980s as a young deputy prosecutor doing court at the Hanalei District Court. The police coming into court telling us and the judge, "You have about 45 minutes to get back across or the bridge will close." So we quickly gathered our things and we left, so I can empathize with your position, and I know going home to family is very important, so I will be brief. I have submitted to Council the 2013 budget presentation and I hope all of you have it. I would like to basically discuss or highlight three different areas. The first is I would like to mention...what I did was I put it in page 1 of the Office of the County Attorney's objectives, and first and foremost is to provide legal services with dignity and respect. I think above all else that is very important for myself, as well as the staff. Number two, I am blessed with wonderful people that I work with. All of the deputy county attorneys have been with me since the day I started. What that means is we have the ability to develop and build expertise in the various areas that they serve, and what that also means for myself is that I have a reliable database from which the office can draw upon. And third, I would like to say that looking at the numbers that I have submitted to the Mayor and the Council, there is one correction. I was trying to do my math this morning on page 6 and I looked at the $180,839 and that is...if you did your math, the math is wrong. It should read $181,439. Basically what I have submitted for my budget is a lesser amount than what we asked for last year, and basically for that is because you are aware and I guess the Mayor is aware, Finance is aware, we are aware that we have been saving money basically on the use of Special Counsel. Each year moneys that we have set aside for Special Counsel so-called lapsed and went back into the General Fund. Our savings to the County is a blessing in terms of savings, but it also is indicative of the additional burdens that we placed upon the Office of the County Attorney. However, we do the best we can to provide the services that we are supposed to. That is all that I have. If there are any questions for me, I hope I can answer them or I have Amy and Pam here that they might be of assistance. (Ms.Yukimura was noted present.) Chair Furfaro: Okay. Well, Mr. Castillo, your office represents this Council as a body as well, and I do want to say through negotiating through some challenges, there are situations that if each person does not have a clear sense of what the client is trying to accomplish, then sometimes emotions get the best of us as we get through this process over here, and I do not want to have emotions be any factor of our review of your department. But I do want to say I concur with you with the fine staff you have put together over there, and it is very nice to know that we have people that are growing in character and ability. It has been certainly a plus for the County, April 3, 2012 County Attorney's Office p.2 but I do want to say again, our review will be one that you are our attorney as well. Sometimes that is a fine line to walk and sometimes as we go through negotiating we do not want to have misunderstandings that maybe cause unnecessary conflicts. So I want to thank you and your department for the work that you have done over the last two years. We have had a lot of challenging issues, but one of the questions I am going to point out to you is do you have an appropriate staff? Mr. Castillo: Right now because of the challenges that we have, we have...appropriate in terms of yes, we do. We would like to add one more and that is contained in the budget, in our budget request, and I have been able to work with Eric Honma on that, and thanks to that, it allows a small increase. Chair Furfaro: So I was correct in my assumption you are looking to add an attorney? Mr. Castillo: Yes. Chair Furfaro: Okay, Members, questions for the County Attorney? Mr. Chang. Mr. Chang: Thank you, Chair. I want to ask a question and a lot of it is in commending your office, can you give us a guesstimate since you have taken office, from the conception to maybe the past year most recently, what kind of moneys do you believe that we have saved by keeping as much of the work in-house versus outside consultation, special assistance? (Ms. Nakamura was noted to be present.) Mr. Castillo: In the three years that I have been here, I believe, we have saved over $2 million, at least $2 million. I can get you the exact number, but I am thinking at least $2 million. Mr. Chang: That is why I wanted to commend the staff and the office for understanding the law and being able to take it in-house and keep it in-house because I think that is very important to know about the government savings on that legal end, which can sometimes be quite costly. Mr. Castillo: Not only that, also in terms of the benefit of having more litigators in our office, we just settled a case where it started at a $1.9 million case and we settled for less than $200,000. So things like that helps out the County. Mr. Chang: Thank you. Mr. Castillo: You are welcome. Mr. Chang: And that is good information for the general public. Thank you, Chairman. Chair Furfaro: Mr. Bynum. Mr. Bynum: I expected you to do more of a presentation because there is good news in your budget. The allocation for Special Counsel is being reduced by $250,000 because you have a track record of not using those funds. I believe you also have really helped collect a lot of debt owed to the County, and you have deputies working on that initiative: Did I understand the only turnover your office has had has been based on retirement and promotions? Mr. Castillo: Retirement, basically yes, Joy Goto, and promotion, well Mike Dahilig has always been with us in planning, but now he is the Director. So yes, there is no turnover. Mr. Bynum: Right and so was Mike's position filled with somebody different. April 3, 2012 County Attorney's Office p.3 Mr. Castillo: Yes, then we were able to attract someone that graduated from Punahou, who is originally from Kaimuki, and who married someone from Kaua`i, Saegusa. Her name is Jodi Higuchi-Saegusa. Mr. Bynum: So that is really the new attorney, but the rest of them have been with you since you first hired them. Mr. Castillo: Yes, and Jodi has been with us for over a year. Mr. Bynum: I think that is nice that there has not been turnover. I do not have other questions. I read your presentation, and just let me say from my perspective, you have been more than willing to release your County Attorney opinions, and I have noticed since the three years a quicker turnaround with the requests that I make to your office in most instances, and that is much appreciated. And your willingness to release those documents to the public and basically stand behind your work because I do not always agree with your opinions, right, but I know that you have researched them and provide them. And unlike previous county attorneys, in my opinion, who wanted all of those legal opinions kept in the utmost secrecy, you have been willing, unless there was a specific legal reason to keep it confidential, that response has always been sure, go ahead, release it. Mr. Castillo: Thank you and thank you for that because the County Attorney opinions that we come out with, I think it is a privilege to be able to when we can release what we can because at least the people can see the level of work that we do. We do a lot of work, we do a lot of research into the opinions, all of the opinions that we do. Mr. Bynum: Thank you. Mr. Castillo: You are welcome. Chair Furfaro: Mr. Kuali`i, go ahead Mr. Kuali`i: Aloha and mahalo all of you, so just a quick question. You said the savings on the Special Counsel line item was $2 million over what period? Mr. Castillo: Over a three-year period. I do not know the exact amount, but it has been a lot. Mr. Kuali`i: Is this the first year that you are reducing the budget for the Special Counsel line item from $1 million to $750,000? Mr. Castillo: Yes, it is the first year and that is in coordination and in conjunction with the efforts of the Finance Department. What terminology that they use, that is up to them, but every year there is a lapse of funds. So we are just hoping to do what we can to help the County out in not going out and getting Special Counsel too much. Mr. Kuali`i: So that is the 25%lapse they were talking about. Mr. Castillo: Yes, yes. Mr. Kuali`i: Okay, thank you. Mr. Castillo: You are welcome. Chair Furfaro: Mr. Rapozo... Mr. Rapozo: I have a question. Chair Furfaro: Go ahead. Mr. Rapozo: I see you get 7 iPads, request for 7 iPads. Mr. Castillo: We took your lead, sir, and really one of the hardest things is we have deputies here and there and everywhere. There are a lot of times that we need to communicate and it is really hard to communicate with something small like a phone and do this April 3, 2012 County Attorney's Office p.4 and that. I just thought that to increase productivity and to be able to store things that you need and pass things around when you need them, we could provide better services for you, in addition to that is the service that we hope to provide for you, an increased level. But yes, we did ask. I termed it some kind of technology. Mr. Rapozo: I think we did the same thing. Mr. Castillo: So I followed your lead, sir. Mr. Rapozo: There are a lot of legal applications out there for the iPad and it actually can reduce paper, especially in your field. So I commend you folks for...I mean it is a battle to get these things from Finance and from IT. Mr. Castillo: I know. Mr. Rapozo: And they are still hounding me about mine, but I will support it and like I said, I would encourage you folks to utilize it with the intent to reduce paper. We have ilegislate is the legislators app that we are trying to get familiar with, but I know there is a bunch of them for attorneys. Mr. Castillo: Thank you and I know there are parameters, and I hope we can all stick to those parameters. Thank you very much. Mr. Rapozo: Thank you. Chair Furfaro: Other Members, did you have anything before I recognize Mr. Bynum a second time? Ms. Nakamura: Thank you for being here. I wanted to find out, we are nine months into this fiscal year and it looks like you have expended $1.6 million out of your $3.4 million budget, and I was just wondering where do you expect to end this year? Do you expect to expend the full$3.4 million? Mr. Castillo: No, we actually do not, and in terms of budgets, it is interesting because when I look at the budget that I have, what I would like to do is spend every cent that is given to me. And when we do not...you could argue for and against the fact that we do not spend all of the money, and I do not know if that is coming across... Ms. Nakamura: • I think you should be commended for staying within the budget and... Mr. Castillo: Thank you because we do not intend to spend all of that. I know for a fact that as we near the end of the fiscal year, if there are amounts that we can use for training that will help in areas that I find that we need, then that is what we use the money for. Other than that, we do not intend to spend all of the money that we have been given for 2012 also. Ms. Nakamura: Do you have an estimated amount that you... Mr. Castillo: No, I am sorry, I do not have. I am sorry I am not like other departments where some of the other department heads and the nature of their business, they keep track of every dollar that they have and they kind of know where they are going to spend it. For me, it is not as...that kind of information, I cannot readily give out. Ms. Nakamura: Okay, then in 2010 what was your actual Special Counsel expenses? Mr. Castillo: I am sorry I do not have my 2010 amounts, but we can get back to you. Ms. Nakamura: That would be good to have. Mr. Castillo: But what happened was I know for a fact that when I came in 2009 March, the starting point at that time was we had 32 Special Counsels on-board. We have drastically reduced that and we have used Special Counsel now not only in cases where there are April 3, 2012 County Attorney's Office p.5 multiple defendants where we would use only one Special Counsel and then we would have our other litigators be part of the litigation. Ms. Nakamura: And in your list of challenges on page 3, you mention here legal assistance training in contract management. I am just wondering what does this mean. Is it you want to be trained or you want to train others? Mr. Castillo: Yes, we want to train all of the agencies/departments that need the training and the assistance. Ms. Nakamura: So would that not be then an upcoming initiative? Mr. Castillo: Yes. Ms. Nakamura: It is a challenge and it is an initiative. Mr. Castillo: Yes. Ms. Nakamura: Because it seems like that is where sometimes we get into problems with the County by not being on top of it and not using techniques that might prevent miscommunication and misunderstanding. So I think that is a really good initiative to have. I just wanted to make sure that it actually gets done, that you have the resources to do that. Mr. Castillo: Yes and thank you very much because when I look at all of the activity that we have had to go through before you and even on the administrative side, there is a real need for this area. Ms. Nakamura: And do you do that in-house or do you contract that out? Mr. Castillo: We do it in-house for now, and if we need to go out and have some sort of assistance, we will. But as far as I am concerned, the training in this area, and we are trying to work with Brandon Raines, and we are trying to work with the people that handle contracts, and we are trying to formulate a system where we can keep track of all our contracts and make sure that people are accountable and they are reliable in terms of contract management. Ms. Nakamura: Okay, it seems like one is an information system piece. Mr. Castillo: Yes. Ms. Nakamura: And another is a training piece. Mr. Castillo: Yes. Ms. Nakamura: But it seems that we should try to articulate those two pieces and put together what is it you are trying to do in this upcoming year with respect to these two pieces. Mr. Castillo: Okay. Ms. Nakamura: And how many County employees would you like to be able to train over the year so that we can see at the end of the year you have accomplished your goal or not. I am unable to discern that from your presentation. Mr. Castillo: Point well taken and we can surely take your lead. Ms. Nakamura: Thank you. Chair Furfaro: With Ernie here, I just want to make sure you understand that the numbers we are comparing in the book do not represent nine months. They represent eight and even the eight might be short one full pay period because it was cut off on the 15th. I see Ernie acknowledging that, so just FYI. So before we pat ourselves on the back too hard, make sure you understand that you have not reported all of your payroll for that period, okay. Mr. Castillo: I am glad Ernie is here. April 3, 2012 County Attorney's Office p.6 Chair Furfaro: Any other questions for the County Attorney here? Go right ahead. Mr. Kuali`i: On the new position, is that a full position or a half position? I only see $33,333 in the budget. Mr. Castillo: It is actually a new position supported by Liquor 50% of the work, but it is a new position. Mr. Kuali`i: Then the only other thing was because I do not know that I really understand how your department works, but is the ratio between the clerks and the attorneys...obviously the clerks support the attorneys, yes? So if you are adding an attorney, the current clerk availability of staff will still absorb and support that new attorney as well. Mr. Castillo: Yes. How are we going to do it? Only time will tell regarding whether or not we have enough support staff. However, we do have...I can only use myself as an example where I have all my forms and documents in my computer and I like to do things myself. I can do a lot of work myself, so I do not know how... (Ms.Yukimura was noted excused.) Mr. Kuali`i: And then I do see there are two dollar-funded positions. One is tied to funding by the Water Department, that is an attorney, though. Mr. Castillo: Yes. Mr. Kuali`i: And then there is a law clerk. That is dollar-funded with an EX, E-71. Okay, thank you. Mr. Castillo: Thank you. Chair Furfaro: Are there any more comments before I pull this to a close? And I would like to share, again, with you, Al, I want to make sure my statement is very strong to this point, we are a client of yours too. We also demand an equal standing to the Administration. I also think with the talent that you have in your office it is fair to us to see that we hold you to the highest standard in delivering our legal counsel, and I sincerely mean that. I can be very direct at times, but at the outcome is we get quality work, and your body has provided us quality work because we get right to the point with you. The fact of the matter, it has been very, very much appreciated by your entire staff, but we are not the step-children across the street here. We are equal in the legal services that you provide us, and I want to thank you and your entire staff for that. Thank you very much. Mr. Castillo: Thank you. Chair Furfaro: I think that wraps us up for the day. Thank you. The budget review was recessed at 4:41 p.m. April 5, 2012 Chair's Commentary p.1 The departmental reviews reconvened on April 5, 2010 at 10:11 a.m. and proceeded as follows: Excused: Councilmember Tim Bynum COUNCIL CHAIR'S COMMENTARY Council Chair Furfaro: Aloha, good morning, I would like to call our budget recess back to order, this was from our opening day and after yesterday's Council and Committee meetings we are back in budget sessions. This morning the presentation to start is actually a presentation by the Chairman of the Committee of the Whole. Basically as Chairman of the Committee of the Whole, I am the leader and coordinator of the budget process so today is an opportunity for me to present an evaluation and my own perception of certain assumptions made in the budget. I have passed out to you the actual presentation as well as another cheat sheet as you might say so that we are all familiar and conditioned to understand the process when we refer to certain accounting terms. What is a reforecast? What is a trend? It is all there for reference purposes. So, on that note I am going to go to the front and make my presentation. I do want to say that the most important part of us having an opportunity to participate in this budget review over the next four weeks is a major part of our role as Councilmembers. Again as I said as the Chairman of the Budget Committee, I wanted to make a presentation that gives some overview that we might want to pursue with the Administration as we go through various departments and questions. We did hear from the Mayor and from the County Attorney who is our Attorney as well, but as we go through the process first of all there are five areas that I think are extremely important for us. Number one, we want to validate the information that we get from the individual departments and we have asked them by memorandum to please turn around for us questions that we ask within 48 hours. That is a new standard, different from in the past but 48 hours within the working period. Second, I think we share as a group and we should inspire having a shared vision in being able to hear from each other respectfully and open communication. Three, It is important that the Administration and those departments also know, it is our role to challenge the process. Making sure the information we have is good and accurate because no one made a bad decision because we had too much good information and that is what this process is all about. We also want to have a level of encouragement for those departments to act and not to procrastinate or delay and this is extremely important for the success of our county and also to set the highest possible standards we can through encouragement and putting a little reach in their budgets. Let us make sure they are realistic and that they are goals that can be reached so when we set them they are in fact obtainable. On that note I would like to start with my presentation. Scott, thank you very much and first of all I want to go over the biggest portion of our revenue which is the Real Property Section. The Finance Director on March 30, certified the Real Property Tax and the Real Property Tax as it was certified, was at 82 million, four hundred seventy one thousand seven hundred sixty six thousand dollars. From that certified amount, 37 thousand, 706 was discounted as it relates to the Real Property Tax revenues that went to the long-term rental program for people. That kept their units in the program and that was introduced by Vice Chair Yukimura a few years ago as well as the PHU. Although people don't see the reduction, it is a reduced from potential revenue of 4 million, ninety six five sixty one, and that was all part of the 2% PHU credit leaving the County with 78.338.499 of Real Property Tax revenues for the tax period of 2012-2013. There's a little summary there on this piece that reflects those items that I just gave in the narrative and the given description of Real Property Tax that we had presented to us the last few weeks adjusted to a position that the Administration stated their goal is to be revenue neutral. I want to share with you the definition of revenue neutral because what is not in this cap is a reality that in the year for the year we are issuing building permits, we are seeing those revenues come in about a 12-month lag. We also need to know that although we are a million dollars ahead of what April 5, 2012 Chair's Commentary p.2 was originally projected, there is the reality that we have actually seen less appeals this past year. In fact says this is one of the lowest percentage of appeals that came across in the process in recent years that I know of the last 10 years so you know that's an indication that this conservative appeal process may indicate that we're getting closer to the right values and less and less people are appealing. I would like to go through this whole presentation before I entertain any questions by you folks. The next slide please? The reforecast as we talk about fix expenses, there are some existing trends that need to be reviewed in the reforecast especially as it relates to fix expenses. I want to make note especially of fuel cost, when I recently looked in the 6-month ledger, I think there is a pretty good prepaid account for fuel for the bus, the operation of the bus. I think we also realize that we have one of the highest fuel cost across the nation ever at this period of time, so I think we need to make note of that as we go forward and then look at our next piece of information which was presented to us by the newly formulated energy team. Energy cost is something that is going to mandate a very aggressive management process as we look at our new bills. There are other assumptions as we go through this that is not coming across very clear to me. There were no assumptions in the information we got that related to certain assumptions about payroll. What is the aggregate amount of payroll for this period that we are going into? Utilities and we had a presentation but we certainly need to find ourselves in a better position with sub-metering and our own building is very important to look at here.We should be able to sub-meter the Historical Society which is attached to us rather than giving them a fixed utility cost that was negotiated 11 years ago and that did not come across in the presentation of utilities. We have money carried over from this building in the amount of we are under by about 459 thousand dollars. Perhaps when we get to the CIP Budget we want to manage the cost of electricity a little more efficiently and we might ask as we expand in the Piikoi Building, what are we doing about sub-metering the new departments that moved into those areas? The only way we are going to make people accountable for utility cost is they have got to be able to say... what am I measured against. So I think that is something that we should also look at. We also did not get real clear assumptions other then what Wally was able to share with us dealing with some OPEB issues. Some of it we got from Wally, some of it we saw in the newspaper where HMSA is seeking a 4.9 percent increase in medical benefit payments but we need to have a clear opportunity with that. I am hoping that between Ernie and the Finance Department, that they will be able to share a little bit more of that information when we get moving into the Finance area. From the health benefits we also talk about insurance issues and we should be having discussions about any increases in insurance exposure for premiums. We also should ask planning although important Ag Land pieces are not going to hit us until maybe the end of this year. Do we have any kind of projections what we might be seeing in the way of discounted tax revenues from landowners who make certain commitments on their property?Again these are just assumptions we should be preparing for in our dialog going forward. We talked a little bit about the growth of public transport and the fuel cost and one of the things I want to caution us all on is be very careful that we do not find ourselves over promising and maybe under delivering at this particular point in time. The repair and maintenance of the County Parks, we recently saw a presentation by Lenny and he is coming up in the very near future. Put a quick pencil to that investment plan to expand our parks was almost 58 million dollars over a 10-year period. I think we need to also understand is to get the parks to a certain level which has been a topic of my discussion from 10 years ago when I got on the Council. We want to know the cost of repair and maintenance? The R&M of those parks, is it a passive park at a C level park? Is it a B park that is in the neighborhood? Or is it an A park which is one of our regional parks? What costs are associated by acre? We can calculate that so at least they can present something to us. Let us go to the next slide Scott?Thank you very much. Develop and identify our wish list. We talked a little bit about this in the last slide but there's a lot of dialog going on now about finding improvements as it relates to complete streets and April 5, 2012 Chair's Commentary p.3 finding the availability of money to do that as well. The growth rate of the Kaua`i Bus. How do we see it and how to we neutrally agree with the Administration? Sufficient staffing to be in compliance with the guidelines established by the State Department of Health and the Waste Water Divisions. That is an area that is going to be some tension and I know we brought it to the personnel's departments' attention. How do we fund the parks master plan? This County has excellent credit rating; we have done a very good job and my hats off to past Administration as well but certainly current Administrations we have in most cases a double A plus credit rating. The question for this Council is going to be in concert with the Administration, how far do we want to borrow on the intent on us doing some things that create great recreational activities for our citizens? It is a wonderful family builder because we do not charge for the use of our pools and parks so it has great sense of community value that cannot be measured in dollars. Also developing other County facilities especially neighborhood centers and there was some discussion most recently about a (inaudible) theatre along the coastline in the Kapa'a area, ongoing improvements for Parks and Recreation making good note of our credit and our ability to borrow if we had too. Next slide please?We need to also address the subsidy provided to our enterprise funds. How do we move forward in self- sufficiency there? On this topic we have County Housing development ongoing operational cost associated with the amenities we put into the project are also tied to common area cost for sidewalk sliding etc, Solid Waste fund and having a better understanding of our landfill cost. We do have a 7.7million dollar reserve placed in there but that is all tied to its closure. The sewer fund is one that is constantly scrutinized and I want to compliment the Administration for over the years being able although our receivable there is pretty substantial, it is far less then it was 3 years ago so we should give some credit where credit is due to the Finance Department. I think the most important thing that that is on our radar screen when we talked to Mr. Rapozo, Lenny is the golf fund. If you do not remember when we budgeted we had concessions as a pretty high number but it looks like we are going to be negative about seven hundred thousand in that account. What is the strategy for getting the clubhouse re-opened? Are we trying to be a restaurant or something that brings in other revenues based on having a vendor there? Or do we want that amenity to really be focused on supporting golf? A place where golfers can go for sandwiches, pupus after work, maybe a bar for a cold drink and to compare golf card scores that closes at 7:30. We do not necessarily understand what is the status of that concession although, I think it should be much smaller and it should provide an amenity, that amenity should then increase the numbers of rounds of golf which ultimately should reduce some of our exposure there. I think we should also have some discussion when Lenny is here about all the concessions at the golf course when parks come up. I mean we got a concession for ball, we got a concession for carts, and we got a concession for the pro shop. Does it become more attractive with one operator watching those amenities? Those are things that should be coming up in our discussion as well. Scott may I have the next slide please? How do we fund our major CIP Projects through bond funding? I touched on that a little bit but I do want to say that we need to give Larry and Lyle a chance to really evaluate what highway that we're going to focus on and also balance that with the repair and maintenance. I think we were all discouraged that we had fallen behind several years in just our repaving, but it seems like we are back on track but we need to have that discussion. Wastewater, I'm very concerned there we still have a couple of plants that still have unacceptable levels from the Board of Health and this is an item that I hate to say we're going to have to make sure we roll up our sleeves and put some money towards those kinds of improvements. From the (inaudible) to the digester tanks, there all suspects with some of our scores. Solid Waste facilities we have not resolved some of the issues about even the CAC and hosting the Solid Waste facility. I think it is possible to rather than put us in a cash position for that, maybe now that we are charging for refuse collection and so forth we should at least have some dialog about determining the boundaries around Kekaha Town and perhaps rather than cash, look at waving fees since there hosting the facility. Just food for thought down the way but we're not going to be able to sustain the cash position for a long period of time regardless of what the consequences we end up April 5, 2012 Chair's Commentary p.4 with its location. They have been very supportive; I had a meeting with the CAC but that should be a discussion. Then along the line I think we need to have a little bit more discussion with Larry and the Planning Department, a joint discussion about levees and bridges and our community. We have gone through the March 2007 range, we have gone through this recent experience that we had where we had temporary closures. I got me a lot of reading time on my way home to the North Shore parked on the side of the road, but I had to change the battery because I used so much electricity on the side of the road but it is a serious item that we need to look at. When you look at what they are doing out in Kilauea right now, their cleaning both sides of the ravine that runs under the highway. Yes it's a State Highway but it also comes back to say that perhaps some of this is in relationship to the fact that we don't put enough money into repair and maintenance of our bridges and levees and that should be something that surfaces as well. Next slide please? Revenues, what options are available? Recently we all know that we touched on changing certain fees, we have other revenue sources not just property taxes. We have State Grants, we have Federal Grants. Are we applying for them? Just as a follow up to yesterday, it's not about grants being no charge, there's a proviso in the budget that requires this body to manage those and I suggest you all go back to the previous budgets and realize if you have an Ethics Board that looks at even people like myself, nine years with Habitat for Humanity. From an ethics standpoint I had to step down. Eight years as treasury with the Salvation Army, Ethics Board I had to step down. Executive Director for 2 years as the founding director of Leadership Kaua`i, because we process individuals I got a note from them that I needed to step down. It is the same with grants, it might come to you free but the reality is you want to make sure it is fully disclosed and goes before the Council and making sure there are no attachments. That's the simple piece I'm saying that we need to know and as you know I sent a very stern note and Jade has it, I sent it over a week ago prior to even this discussion we had yesterday, but we need to make sure that all the departments are pursuing grants with our approval in advance and timely. That has come up in part of my 14 months as chairman several times and it was not new. The other thing we are experiencing and we are the first county to do this is with the CFDs, there is a source there for us to see certain amenities within certain districts that could be assessed a special fee. That helps us offset some of the cost associated with doing business and government and adding to our asset list. Could I have the next slide please?This slide it is kind of hard for us to see it right at the moment but I wanted you folks to have one and you have a hard copy and I will give one to the media as well so they have a copy of this presentation. We needed to look at all taxes and make some assumptions on what is growing, what is not. From our licenses and permits with street use it is almost like there has been no change in some of these permits. Business licenses, non-business licenses, revenues from our investments as well as our revenues from property taxes... property concessions I am sorry. These all add up in addition to our found money so... thank you, thank you, so inter-government revenues is always subject in there you know the State Grant Aid is there but it actually relates to the TAT Tax. It is always subject to review by the Legislature, we do not know the outcome until the legislature actually adjourns itself, but there is a little summary there for you for all the other revenues. Can we go to the next slide Scott please?Thank you. We have this summary here that shows now the 2011-12 to the 2012-13 and the variances and it's important for us to point,out that we found potential revenue equaled to just one million dollars through the re-visiting of fees. I would also like to say we still have not used the building permit authorization appropriately as I pointed out and I gave those documents to Mr. Rapozo and I know he's going to follow that up with the building department but I don't think there's anything wrong with us using and that's why it was designed when I did it, using the forecasted building permits to make some assumptions about some of our revenue growing in the year for the year. In fact from the charts I shared with you, that might be something that we want to add some money to Invasive Species and so for. Maybe we want to count, maybe we want to get more for Humane Society, and maybe we use the projected growth to give them some money because neither of those came up with any funds in the first draft and first blush for what I have seen from the Mayors first draft of the budget. Yet I think we all know from April 5, 2012 Chair's Commentary p.5 the workshop that I presented, those are a very important components of our community to maintain the kind of quality that we want. We should have some discussion about building permits related to future revenues short term within a twelve or eighteen month period. Scott we can go to the next slide. We also need to keep in mind that the county revenues and our ability to sustain an appropriate level will have a direct impact on the county's bond rating. I think for myself who drafted the resolution on the reserve fund copied after Denver, I was surprised to see how much money we tapped of the reserve fund this time out but it's not sustainable at that kind of rate to tap that fund. I have left in the Finance Committee the ability for them to introduce some form of ordinance that says we have a reserved fund, it's earmarked for these emergencies and what we can respond from but what it is right now with just a resolution it is subject to approval from the administration to use that money. We need to get it into an ordinance. Contributions to the CIP and the general fund, we have to have some discussion when we get to CIP today. I applaud Mr. Bynum for the big worksheet and Larry guys putting it together but it can be managed from a very smaller summary sheet, for example the comparison that we did on last year's 82 million for this year's 61 million and I did send over the communication that when we have them in front of us in a week I think on the 18th or maybe it's 2 weeks, that we want to know what was completed, added to what assets of the county and if money was deferred for approval based on the fact that they didn't think it's a project we were going to get too. What is the reserve strategy on that money because at one time it was in the CIP pot? So our big question going forward is, how do we balance the County's growth? I know some of the taxpayers may not want to hear this but, we have a average tax in the homeowners classification that is running about a dollar and eighty-one cents per thousand-dollar value. We have not had a tax increase for nine years we have not changed rates. That is something that we need to study especially as it relates to what we identify to the Administration as our priorities, Scott, next slide? The next one is questions and I also want to share with you folks that the request for additional detail from the administration when making grant request was sent over almost 10 days ago. It was an issue that came up from our proviso. I also left you folks some terminology that is related to my presentation just so that we can all be very aware when you use the term "trend analysis". For example the budget you got and I had this discussion with member Nakamura, it does not represent as it only goes through the period of February eight months, it doesn't go through the date of March which is on the corner and it is lagging 2 weeks of payroll. Actually what you are seeing on your comparison on the trends there is through February but it only has one-half of the payroll period in it. What is the difference between cash accounting and accruals? That's really important because what you're looking at may not reflect all of the actual bills for that period through February so I just wanted to caution you on making a flat out trend analysis on it. We spent this much for two thirds of the year therefore we may end up with a surplus and we may end up with some kind of a surplus. I also want to caution you is if you remember my presentation during the tax period they're starting the budget saying they are forecasting a 12.5 million dollar surplus but when I took 6 months to reconcile what they had they were half way there, but again they could have some outstanding invoices that haven't been booked for those 6 months and I think Wally guys are doing an excellent job but they're forecasting it right to the penny. There are other areas we can look at for found money. There are the buildings permits that we will realize within the next period of time and that night give us a little wiggle room. I also covered in there the need for reforecast and I took that out of there as it references things that deal with storms that cause unplanned budget but the piece I pulled out talked about rain flooding and snow storms. We know we do not have snow here but we are half way there because we had hail last week. Those are things that we have to consider. That is what the intent of my giving you an overview of the departmental budget so that we had the time to put up some red flags, understand some areas we might be doing better than we thought. When I look at this whole process I have a couple verbal messages that we... we need to pass this out. Using 10.7 million of the reserve and reducing the CIP by 3.6 and also this projection of a surplus which we cannot acknowledge yet of 12.5. To me the bottom line is the entire team on the other side needs to April 5, 2012 Chair's Commentary p.6 understand that it is not business as usual. It is not business as usual. These requirements are going to need them to be closer to their financial objectives in their departments and us as a body year after year cannot keep tapping the reserve to use it to replenish funds, to start the next year. Either we have a reserve or we do not have a reserve. I want to let you know I personally think that is a pretty fragile way about doing business, dipping into it that much. It is inevitable that we are going to have to really evaluate tax basis but it certainly is not business as usual. Thank you for your time, for letting me give an oversight and I think you all have copies of both my budget terminology as well as the power point presentation. It is a good place to be to start our budget dialog with the various departments and these are some of the red flags I think we should watch for. Yes Mr. Rapozo: Mr. Rapozo: Are you going to stay over there? Mr. Furfaro: Yes I will stay right here. Mr. Rapozo: Okay good. I just want to say thank you, I think what this is and I do not believe has ever been done to portray to the public the council's perspective of budgeting and finance. I think you have clarified a lot of unknowns out in the public and more so about our financial position because as you know the last few months all of us have been approached and confronted and people expressed their concerns that we have all this money. I think you have pretty much clarified the reality of the County of Kaua`i's fiscal position in addition to the highlights of the bond ratings and so forth. So are we in a fiscally bad position? I don't think so. Are we headed for trouble? I think so and I just Mr. Chair, I just want your final comments about the reserve policy, I think it's important for the public to understand that just four months ago in December the council passed the resolution that basically, although It's not an ordinance but it is what I believe to be the policy statement of this body that we would maintain a 20-25 percent balance in a reserve of the prior year's expenditures not the current years but the prior years. As I mentioned when we were going through in the budget session, if we go through the removal of that 10.8 million or whatever it is from the reserve fund we will effectively drop the reserve balance to 7 percent, 7 percent when the guidelines that we passed in December said 20 to 25 so I would have to agree with you whole heartedly that is not a wise decision. The CIP Projects that you mentioned, the 3 plus million dollar reduction and as we looked at the list yesterday I think we all and once we got to see it in a report form like that which is the first time I think we've ever seen that. It was clear to me that there are millions of dollars in that projects that we know are longer than 18 months away from (inaudible). It's quite obvious some of those things are there, I don't know what the value of keeping a CIP Budget inflated like that but there's some source of revenues there that I believe we should go after before we start touching the reserve account. The one thing that we did not see... we saw the reduction of the reserve, we saw the reduction of the CIP, what we did not see was a reduction in spending. That I think is the biggest concern I have, what we had was the 25 percent cuts or the directive from the Mayor to the departments saying "hey" you must cut 25 percent of all the money that you did not spend. That is not a cut in spending that is a cut in non-spending. What I think we need to take a look at is... what are the non-essential expenditures that came across to us on March 15 and start to eliminate those? Give the public some credit and say "hey" we're asking you guys to cut, we're asking you guys to struggle, we're all struggling. It's time I think the county tie our belts a little tighter and we haven't done that in the budget in fact we increased the budget and the fact that we've cut the non spending of surpluses that doesn't in my opinion constitute a cut in spending. So I appreciate the presentation I think it's like my eight budget but I think every day we learn a little bit more and this truly helps, this truly helps get a better picture of the financial situation I think. It gives us a better guideline as we move forward to the budget reviews. Thank you very much, Mr. Chair. April 5, 2012 Chair's Commentary p.7 Mr. Furfaro: Okay and again you know the intent here as I said these are just some overviews and assumptions we should quarry as we go through the other units. For example, there is one that is there that deals with the bond issue and our debt service is currently about 4.5 million dollars, it is in their budget maybe reflecting about 7.9. Now I'm not sure if there is an opportunity here for some debt consolidation which brings us to a short-term increase in debt payment but a long-term savings. That could be a strategy that Wally folks had put together or is it to kind of leverage some other projects, we haven't got there. I do know the Administration invited me again to go with them to the Mainland with the bond council but that's the only quarry I have at this point that I there going to make some move to refinance this debt but we maybe can quarry when Wally has a chance too. What is the growth in a death service and what is the long-term savings for us? I also want to say that the Resolution on the reserve was a pretty aggressive one. I copied the City of Denver but there are many reasons the City of Denver is healthier then perhaps the City of San Diego which actually went in to a debt restructuring a few years back. It is out choice and the only way that choice is that we have to come up with a common agreement of what the reserve should be and have a mutual understanding with the Administration and that's done by ordinance. I cannot introduce that as the Chairman, I'm hoping that will come out of finance relatively soon once we have a good understanding. Our goals going forward should be like the five points I made. Number one lets validate the information we get. Let's make sure we all understand and let's work with the Department Heads to inspire a shared vision of what our County... you know my children they trace their ancestry back to 1854 in this County. That's a long time to be at a place but it also requires us to be able to sustain a place for the next 3 generations, extremely important. Let's also not tie the product to a point where we're tying people's hands. I'm very pleased with the progress that's being made in engineering with the two team leaders we have there. I think we have some new people in finance that are kind of taking a more aggressive approach to making information transparent to us and we need to give them encouragement.Yes Vice Chair. Ms.Yukimura: Thank you very much. I think this has been helpful in stepping back and looking at the big picture and the important parameters that we have to look at. I just have some questions? Mr. Furfaro: If you noticed my pages are numbered. Ms.Yukimura: Okay. You mentioned something about 450 thousand in our account? Council Services account?Is this regarding energy?I wasn't sure what your reference was. Mr. Furfaro: That is the difference between what was budgeted to renovate this building and what was actually spent as a conclusion and I would be glad to share that. I sent a note over to general accounting in the Building Department and the balance of this building actually came in four hundred and whatever the number was under what we forecasted the cost to be. It did not include any landscaping improvements for outside. Ms.Yukimura: Is that in the CIP Budget? Mr. Furfaro: Yes. Ms.Yukimura: Okay. Mr. Furfaro: And I made reference to that as far as if we want to find some money to sub meter some places that might be money we could use. Ms.Yukimura: Right, right. I think that feedback accountability that you're talking about that sub meters would give is really important if we want to save energy. The users have to have direct feedback in order to have any motive to save or to measure how to be... April 5, 2012 Chair's Commentary p.8 Mr. Furfaro: To be part of the green team. They want to know how you're doing. Ms.Yukimura: Right, and people who have hybrids and those cars that give you feed back say there always watching it and that's just the nature of human beings to watch the curves that they affect. Mr. Furfaro: I will share that summary with you, I have it downstairs somewhere. Ms.Yukimura: Okay great. I appreciated your... that's 5, slide 5, about self sufficiency of our enterprise funds. I really think there is a potential to do better in the areas where we have to subsidize these funds from the general fund. I think by setting a policy that encourages that kind of thinking we could find a lot of opportunities that we're not even looking at now. Mr. Furfaro: And I'm saying our first look should maybe be to those concessions that pay us rent. Ms.Yukimura: Yes and then this whole process of budgeting in your definitions on your budget 101. Mr. Furfaro: Yes. Ms.Yukimura: You have this definition of zero based budgeting. Mr. Furfaro: Yes. Ms.Yukimura: Now we don't do this? Mr. Furfaro: No we don't. Ms.Yukimura: And I'm very... Mr. Furfaro: I've heard it tossed around and I want to make sure, I don't support it but I heard it tossed around from some of our regulars here. So I want to make sure that we all understand that I would not do it with my Hotel and Resort operation. It doesn't quite work that way. Ms.Yukimura: You are far more experienced then I am in managing and creating budgets on an organizational scale, but there is some value like in starting from scratch so that you justify everything you need and I'm just thinking I guess they have management by objectives. These are terms that I don't know very well either but something that makes people much more conscious of and focused on program objectives and goals and measuring how well they are achieving it. I'm just wondering how we use the budget process to do that. Mr. Furfaro: And I think that is one of the weak links and I'm looking forward to the discussion we had on this Human Resource Department. I think that is one of the weak links in our current revue of performance. I think there clearly is an opportunity and I have gone to Civil Service and I have presented these things where Department Heads can be measured against their performance in their departments. If for example I'm going to measure the engineer about utilities but I don't have a way to determine the scope of utilities that he manages, it's kind of hard to put that in a goals and objectives in his performance review. That's why I think the first step is doing some sub metering where we can. That's where we can hold accountabilities and people's reviews. The reviews right now are basically hit on 7 or 9 key items but that can be greatly expanded when April 5, 2012 Chair's Commentary p.9 we're dealing with the kind of operating cost that we have now. Especially with our Department Heads that have direct responsibility. Employees issues, fuel, replacement value of equipment, making sure that we have right repair and maintenance goals. Those should be worked into reviews and that's my opinion. Ms.Yukimura: And I think the private sector does that a lot more than we do and I know that they have to be properly structured because if they're not they actually incentivize the wrong. I mean just like in schools they'll incentivize cheating or whatever and that don't get us to the proper performance so I realize they have to be very carefully designed or identified. Now on the issue of accrual based accounting, is that something you think we should look at in terms of how we do our budgeting or are there things that mitigate against it? Mr. Furfaro: Well, there are pros and cons and it seems that people have been affiliated with government for a longer time than I have quite longer, really sees government as a cash/accounting system. That's why it takes us a period of time to actually close the year. In a cash accounting system and I don't know if Wally folks use the same term but they have what is called the 13 month. They have the 12 months where their booking the cost and then they have a whole one extra month in there to make sure that they call in all the invoices and so forth. Now in an accrual process if I were to buy something in the accrual pot, let's say I had a 50 thousand dollar project in the year for the year and the last five months I would book 10 thousand dollars worth of that expenses over the last five months, then when the final invoices come in I would reconcile them and I would take a credit because the total bills only came in at 49 thousand. I just want to say that the way we do business is you have to know that until we are actually booking some final invoices we don't have a perfect picture of our cash. I think they do it and maybe we can get some clarification later from them. They have that 13 month where they actually and I think some of you have seen where they send out invoices and telling you we're getting ready to close so get any outstanding invoices you have to get them as current as you can. But that's really just subject to people responding accordingly so we have that 13 month in the county. Ms.Yukimura: My last question is regarding slide six, which is major CIP Projects. One of the keys is what we pay attention to and I was just thinking in terms of highway improvements. The other and it doesn't always show up as CIP it often shows up as operating cost is the bus. I mean the highways are roads but the bus is the other way of moving on land. So I was wondering if there was a way we could put the bus system in on this major list. Mr. Furfaro: Well we could as if it was related to again by the accounting 1 definition. We buy a new bus it's a CIP item. We install a new gas pump and facilities for storage and that's CIP. But the operating portion of the bus is clearly an operating cost and that's where the definition is. We could put a section over there for bus and CIP. You know I know the Mayor in particular is trying to be very aggressive in trying to build all these bus stops and so forth and that's certainly a CIP item and can be certainly put in, in relationship to an amenity that's added to the s of the county. The buses, fuel storage, pumps but I think we could. Ms.Yukimura: Well I'm also thinking of Mr. (inaudible) latest report to us where they're looking at possible satellite base yards in order to cut down on the operating cost and funding the CIP, that CIP investment with the savings from the operating cost.You know the fact that buses have to go all the way out to the north shore from Lihu'e on a not in service operational line. Mr. Furfaro: I have never been able to figure that out so you can always take someone back to Lihu'e. Ms.Yukimura: Well I think they do some of that and I'm told that the buses were at one time kept at the homes of the employees for the night so they could start out at the beginning 1 April 5, 2012 Chair's Commentary p.10 point but that had its problems so it's an operational analysis that has to be done but still there's this real just like even yesterday when we talked about the Kawaihau Police Station. There is this interaction between capital costs and operating costs. How we use the capital costs effects what our operating costs are and so I'm just thinking it's useful to build in that kind of awareness of the connections. Mr. Furfaro: You know there's an (inaudible) I agree that is between operating and capital that is basically related to good planning. Ms.Yukimura: Exactly and design, good planning and design. And the other thing in solid waste facilities and I was thinking would also be useful to break it down into landfill and diversion. Mr. Furfaro: Yes. Ms.Yukimura: Because we actually want to move more towards the zero waste approach since our zero waste resolution passed and the more we do that the less our landfill cost will be or the longer the life will be of the landfill. So there's that relationship and there's just the tendency to think solid waste facilities landfill and transfer stations and I just want us to begin to think more and more diversion zero waste facilities. Mr. Furfaro: Understood. Ms.Yukimura: Yeah just as a way to help us. But thank you very much I think this is very important to look at the broad parameters and relationships. Mr. Furfaro: And I think in the future we should have an opportunity that someone who gives a budget overview from the perspective of the council therefore whoever is in charge of the Committee of the Whole that takes care of budget. So I just want to share this early on with you folks. Ms.Yukimura: Thank you. Mr. Furfaro: Okay. Thank you very much and I will return to my seat and I think we have Economic Development up first right? Mr. Kuali`i: Mr. Chair? Mr. Furfaro: Oh yes you have a question, go ahead please. Mr. Kuali`i: Yes it maybe not so much of a question but, I think and yes we are short of time now and some of the other councilmember's really didn't get a chance. In the interest of time I just want to be very brief and say that I appreciate this report and all this information. I think your point about validating the information we get is probably the most important one. I liked what you said that it's not business as usual. As an example yesterday when we were looking at the positions report and I think that's' this councils biggest responsibility because our labor cost is the biggest cost. In your bullets here you talked about the labor cost and the status of employee union contract so there's that with pay raises that come into place and this whole thing about the vacant positions that are fully funded and remain vacant that's the biggest place where this lapse funding or surplus funding. I think that's where we have to crack down and what Mr. Rapozo mentioned about cutting the Mayors budget. The Mayor is asking the Department Heads to cut 25% of the amounts that they didn't spend so that's the amounts that we're over budgeted that we as a council allowed to be over budgeted and I think in this year we have to look much closer at the positions and April 5, 2012 Chair's Commentary p.11 we need better information from human resources. We talked about that yesterday as far as getting better reports and helping/giving them the tools and staff they need in the Department of Personnel Services to make sure that we can get that accurate and timely data on positions. Positions that are funded and vacant and no intention to be filled and then there's temporary assignments and they go on forever, so what is temporary? Potentially millions of dollars are there that I think we have to address and I think... yeah that's what I wanted to say. Mr. Furfaro: No and I think that was a oint ood as I g point did extract from them a commitment and although the charter requires them to sent us those reports 10 days after the closing. We did mutually agree that they will try to make incremental improvements and get that report to us in a 30 day period. I think that was a good first step. The other pieces on the payroll summary I made for you for 6 months we were lagging 1.5 million and I wanted to make sure that I clarify and I think it was Ernie Barreira that answered yesterday. Did the 25% savings from surpluses include those departments that were running under payroll and he said yes. So that certainly will reactivate the discussion when personnel is over, so I appreciate your comments. On that note I'm sorry I just was trying to give up the chair to economic development. So any other questions before... Ms. Nakamura: No just thank you chair for providing this overview the big picture and concerns and issues that we need to look at. Just a process recommendation as we go through this is my recommendation would be that councilmember's ask one or two major questions as a round robin until we run out of time. Mr. Furfaro: Okay understood. Good point okay thank you everyone. Oh Dickie you have a question? Mr. Chang: I guess I wanted to say thank you and we'll absorb... Mr. Furfaro: Mahalo to you to braddah. Mr. Chang: Thank you. Chairman excuse me, can we take a 5 minute break so we prepare for the next... Mr. Furfaro: Okay let's take a 10 minute break and include a caption break now because I think George has us until lunchtime right? Okay we're going to take a break now. There being no objections, the committee recessed at 11:10 a.m. April 5, 2012 Office of Economic Development p.1 The Committee reconvened at 11:27 a.m., and proceeded as follows. Excused: Councilmember Mel Rapozo (excused from the meeting at 11:10 a.m.) Councilmember Tim Bynum ECONOMIC DEVELOPMENT: Mr. Furfaro: Okay we are back from our 10 minute recess. Again just FYI today we are covering economic development, we had the council overview and we have the Auditor this afternoon then we have Planning and we are potentially able to go until six o'clock with planning today as we posted the schedule. A couple other announcements, Mr. Bynum has an excuse absence for the morning and Mr. Rapozo is gone for about a half an hour and he will be returning so we should probably reflect that accordingly in the minutes until people have returned. I also will make a request of the Administration, I would like and I think we have the Office of Economic Development coming up George and if I could ask you to come up because this next comment is directed to you. When we have an amendment to something that's already been submitted to us, I would just like to see the amendment rather than change the whole document because I have all my notes in the previous document and I'm sure other Council members... you know you write on the original piece and I would rather just read the amendments. GEORGE COSTA, DIRECTOR OFFICE OF ECONOMIC DEVELOPMENT: Okay point well taken, for the record George Costa, Director for the Office of Economic Development. I just wanted to basically have a couple of housekeeping items and I apologize as I was reviewing the presentation again last night and these are minor items so maybe instead of creating some concern with the council, but I do want to apologize. Basically the changes that I did make to that document and sent down this morning and the other thing to was our computer system was down since five o'clock yesterday and I pretty much worked through the night hoping it would come up sometime during the night but unlike the Hotel Industry where you have someone on call 24/7, that's not the case. I apologize for that but I wanted to get the copies into all of your hands and basically there were only 3 changes to that document. The first one was on page 10 and I had rearranged the bullet points and there were a couple of blank bullet points and I just eliminated them. There was no additional information that was supposed to go in there so that was a minor change and on page 21... Mr. Furfaro: So your gun only has 5 bullets in it I guess? Mr. Costa: What's that? Mr. Furfaro: - You removed 2 of the bullet points so I guess your gun only has 5 bullets in it. Mr. Costa: That's correct at least for that section. On page 21 where you know I basically took a summary of the variances of the Office of Economic Developments budget and I did a worksheet. When we re-calculated the benefits and the OPEB, there was a significant increase and the increase was reflected in the budget, it was reflected in some of the narrative but in that worksheet I did not include that increase. That was the change that I made so the document you got this morning correctly reflects what's in the budget that you received earlier. And page 23 is basically the narrative that explains that variance. So those were the 3 changes that I made and again I apologize for doing that at literally the 24th hour but I just wanted to make sure that I had all the numbers correct before I approach this body. Mr. Furfaro: Mr. Chang has a question for you Mr. Costa. April 5, 2012 Office of Economic Development p.2 Mr. Costa: Yes. Mr. Chang: Just a quick question on page twenty one. So in the operating expenses, is it the Kaua`i Food Bank SNAP Program or the Kauai Independent food Bank SNAP Program? Mr. Costa: Oh it's the Kaua`i Independent Food Bank SNAP Program. Mr. Chang: Okay because I didn't know if there was a... because that's always a.... Mr. Costa: Right, right because we have two here on the Island. Mr. Chang: And then I hope this is not a ridiculous question but under benefits where you have the green line. One is a hundred twenty three one o six, one is a hundred twenty three one o seven. Mr. Costa: It's a rounding number. Mr. Chang: Oh okay, okay. Mr. Costa: The result of rounding on my excel program. Mr. Chang: Okay. Chairman thank you. Mr. Furfaro: You're welcome. Okay Mr. Costa you may start. Mr. Costa: Thank you very much. Aloha Council Chair Furfaro, Vice Chair Yukimura and Councilmember's, for the record George Costa, Director for the Office of Economic Development. Today even though you've had our narrative to review I will go through and highlight a lot of the points that we went through. A lot has happened over the last year within our department. We're comprised of five specialists and now we have a new Sustainability Manager in our department and we have a Secretary and an Accountant. We are a very small staff but the Office of Economic Development is very exciting and there's a lot happening within that department. I feel we are like the catch all within the county, we get chicken complaints, and we get complaints about traffic if it affects economy, if it affects tourism, if it affects agriculture so we get to deal with a host of things. What I want to do right now is acknowledge the Mayor, the Administration, and our County Council, for your support in what we do. I would also really like to acknowledge our Community, the Office of Economic Development interfaces with businesses, we interface with non-profits so really with the small staff that we have we can't accomplish as much as we have without the collaboration and cooperation from pretty much everybody in the community. So I wanted to start by just thanking everybody for their support. For the office of economic development our mission is to work in partnership with the community, business and government sectors to create economic opportunities towards the development of a healthy, stable and balanced economy for the County of Kaua`i. The office of economic development promotes and nurtures sustainable economic development within the Kaua`i County that is consistent with the community's needs and priorities. Our Goals and Objectives as a government entity, we interface as I mentioned with businesses and community leaders as well as other government agencies and programs to enhance Kaua`i's Economic Development Opportunities. The objective of our office is to assist businesses of all sizes, emerging industries and organizations in providing technical and financial support as feasible April 5, 2012 Office of Economic Development p.3 in an effort to provide4 full employment for all of Kaua`i's residents. We also utilize the guiding principles of the Kaua`i Economic Development Plan, Comprehensive Economic Development Strategy or commonly referred to as the CEDS, to help improve Kaua`i's economy over the next 10 years. There are 3 points within the CEDS that we really try to adhere to and the first one is economic diversification. To strengthen selective industry clusters to minimize dependence on a single industry. As we all know and I have often referred to our visitor industry as our main economic engine and you know from 2 years ago our visitor industry has rebounded and it's obviously not back to the levels of 2006 and 2007, but we have shown gradual improvement. I believe while our visitor industry is helping to sustain Kaua`i's economy this is our opportunity to really look at diversification, look at the other industry clusters. Agriculture, energy, sports and recreation and the health and wellness clusters. Also our goals and objectives are to collect data and maintain statistical information and reports to be used as a library resource for individuals, businesses and organizations. The general public is provided excess to materials, documents and publications in the office of economic development library and to some extent the county's website. With that one of our goals is one to look at the library that we currently have and reorganize a lot of the hard copy materials that we have.A lot of them are probably out dated and as you know a lot of what we utilize now is on the internet online. So what we want to do is create on our county website with the office of economic development section an area where we list websites that we use as a resource so that someone can go directly to that resource without having to either come in physically to our office or a phone call so we have those resources available to the public and the entrepreneurs and businesses. As far as recapping our fiscal year 2011, our successes and achievements and I won't go through the whole list but I do want to highlight certain areas. In the area of sustainability we are very fortunate that again through the Mayor and Administration and the County Council approved the sustainability manager position last year. Glen Sato who was our energy coordinator filled this role it's an important role not only for the County but in the next year we want to be a leader and set an example for our community as far as sustainability is concerned and then create policies and programs that will encompass the entire island. Also the formation of the green team within the county that can help the county again be a leader be an example to our community that we can help be more resourceful more efficient and reduce the cost of government through energy saving and other programs. As far as tourism we were here earlier with Sue Kanoho of the Kaua`i Visitors Bureau and our other visitor industry partners, again thank you to this county council for supporting the various programs that we started off with. I know when I first came on board in 2009 right out of the gate I asked,for a million dollars and people thought we were crazy but really what you did to help support that I believe is where we are today in our economic turnaround. So again we want to thank you for that. Sue Kanoho is a great leader in our visitor industry, she can really put together programs that have very good return on investment and so I want to acknowledge Sue and her team for that. In the last few days there has been various reports publicized not only in the garden island but in our Honolulu paper about the visitor number s and I just want to repeat a couple of them. Arrivals to Kaua`i, I know when we sat here 2 years ago we had dropped 30% in less than a year on our visitor arrivals and we are very thankful that we ended up the last year 6.3 percent above 2010 in visitor arrivals. Visitor expenditures were almost 20% and visitor per person per day spending was almost 11% so again in a great contribution in our economy we will continue to strive to keep that sector of our economy viable and vibrant. Like I said there are other sections in the office of economic development that we will focus on to help diversification. In energy we're very pleased as I mentioned because of the good work that Glen Sato did I'm glad to see that he got the opportunity to become our sustainability manager. That also created another opportunity as we now have Ben Sullivan on board as part of our team. Ben brings a wealth of knowledge with regards to energy and just in a few short months that he's been with us he's hit the ground running and with both he and Glen they make up a really good team. I just want to acknowledge some of the accomplishments that Glen did initially and Ben's continuing to carry. We implemented the energy savings April 5, 2012 Office of Economic Development p.4 performance contract and that's being worked on as we speak, installed the photovoltaic system on the Lihu`e Civic Center, installed the photovoltaic system at the Kaiakea Fire Station and now we have within our county fleet five electric vehicles. We recently installed the charging stations that go along with those vehicles and I'm one of the users of those vehicles, I think there great. The Nissan Leaf is a great vehicle and for me personally its really helped me to altar my driving habits because you basically have a hundred mile tank so to speak or charge and I've had to attend meetings in the last month in Kekaha, Hanapepe, Kilauea, Hanalei and those hundred miles go pretty quickly. If you're heavy footed, if you use ac, if you use the radio because that all drains the battery so like I said it really has helped retrain my thoughts and my driving habits. In the area of agriculture, Bill Spitz is our agricultural specialist, you know we have launched our Kaua`i Grown Program and working with Melissa McFerrin of the Kaua`i County Farm Bureau. You're going to see a lot more from this program like Kauai made its at the infancy stages but we just signed agreements with Sueoka Store, Ishihara Market, Times, Big Save. Hopefully in the next months you'll start seeing marketing programs, branding and marketing programs of Kauai grown featuring our local farmers and ranchers. The sunshine markets we are presently in the process of going through our administrative rules. We've done our community outreach; we've gone to all the communities that have a sunshine market. We've received input and we actually had our hearing last week when the power went out so we had to reschedule that until May. I'm hoping by June we'll have our new Administrative Rules in place, we'll have value added products in our markets so that's another area where I would like to thank the County Council for their support on that. Film needless to say you've all seen what our film industry has done. Art Umezu who is our film commissioner is very busy. Last year we had the filming done on the island. This year we had all the premiers with "Just Go with It" "Soul Surfer" with our own Bethany Hamilton. We also had Pirates of the Caribbean and we ended up with the "Descendents" so you know Kauai got its fair share of notoriety within the film industry and with the general public. I know Sue cannot attest to this we are now seeing visitors coming to Kauai just because they want to see where a lot of these places were filmed. In the area of workforce development Jan Miyamoto who's actually at another agricultural skills meeting today and can't be here... oh she just walked in; great. Jan has been very busy she's already set up several training sessions. The photovoltaic installation, the state energy sector partnership grant program, Jan helped to build that. We utilized the resources of Kauai Community College in that training we also had the certified energy manager training and I'm happy to say that the county and including 3 county engineers that got certified. Jan Miyamoto does a great job in working with the Kauai Workforce Investment Board to ensure that even with the limited the funds we do get from the Federal Government and the State, those are turned around into these training programs and programs that are going to help either displaced workers or unemployed. In the office of economic development you have before you a list of the various organizations and agencies and non profits that we work with so I won't go through the list but again we want to acknowledge all of those that are out there helping the office of economic development do what we do. There are a lot of challenges and so I won't go into the detail of that obviously in each sector we have our challenges but hopefully in what we present here in today's budget we'll try to address those challenges unless anyone has questions for melater I want to get into the budget portion of our presentation. For the most part the office of economic development, we have a very small staff and the bulk of our budget really is comprised of the various grants and programs that we have. Mr. Furfaro: George can I ask you a question before you get into your budget sheet? Mr. Costa: Yes. Mr. Furfaro: I want to make a call on this. 1 April 5, 2012 Office of Economic Development p.5 Mr. Costa: Okay. Mr. Furfaro: You do have fifty thousand dollars in your invasive species summary here. Mr. Costa: I beg your pardon. Mr. Furfaro: You do have fifty thousand dollars in your Kaua`i invasive species account. Mr. Costa: Let's see. Mr. Furfaro: It's listed in your bullet points. Mr. Costa: Oh it's listed as a bullet point because these are areas that we have funded in the past but there not funded in this budget proposal so basically those bullet points or that section basically says that we funded these organizations in the past and they may be coming to this body for... Mr. Furfaro: Okay I just want to caution you because that invasive species Y just Y p money was always put in by the council. We got the grant that was a request of a hundred thousand _ and I took your bullet point as reducing the previous amount but yet you still had something in there,but you're telling me you in fact do not have anything in there? Mr. Costa: We don't have anything in there in this budget. Mr. Furfaro: Okay and I just want to make you whether it was the Koki frog or other issues especially in the Po'ipu area, this council felt it was important. Okay good so I will make this a call accordingly. Thank you, thank you for that and I didn't mean to interrupt. Mr. Costa: So what I would like to do at this point is highlight in our budget for the most part our budget staffing has remained the same. There are 3 areas that I want to highlight that we're proposing. The first one is a new position which we have titled that position as Economic Development Technician. Right now as I mentioned we have the five specialists and Glen Sato as our sustainability manager, each person works independently and by them there is really no assistance so as each specialists works and seeks grants, writes the grants and goes through that whole process case and point is like Glen Sato he's been very successful in obtaining grants. When he attains the grants he has to manage the grants and it becomes very difficult if there is no additional support to help him either do the research for the grants or help him with the numerous reports that are required when you do get grants and to report on a regular basis. Also within the office of economic development, for myself because we collaborate and we meet with all this various organizations a lot of my time is spent out in the community and I get to do my work basically between 5 p.m. and 10 p.m., or whatever time it takes. So I for myself could use some additional assistance so this position that we're proposing and we're calling it a technician because that person would work with all five specialist and the sustainability manager and myself, in whatever projects that we have. Some of the projects I have taken on myself that I can manage but if there is a certain project that we really want to move forward and we need an additional body that's where this person would come in. Besides that we have some other programs within the office of economic development that we could also delegate to this person. We have the Kaua`i made program which when Beth Tokioka my predecessor was in the office of economic development started the program it's doing very well but to some degree Beth still April 5, 2012 Office of Economic Development p.6 does some work on Kaua`i made and we want to be able to wean Beth off of that and have someone specific in the office of economic development oversee that program. Along with that as I mentioned earlier a lot of things have happened within our community and then our economy affects economic development or somehow involves economic development. We got involved well our office got involved with small businesses when there was a rash of crimes throughout the island so now we have formed the Mayor's crime task force which I oversee. That's another area where this technician could help organize those meetings and move that forward. You probably have heard that we have some other pet projects coming up in the works right now, Hanapepe vendors you know there's some vendor activity that's going on in Hanapepe on Friday nights. We get involve with that we're working with the planning department and public works and the vendors themselves and the businesses of Hanapepe in trying to see what we can do to keep that economic activity viable but also address safety and other issues. We have permitting issues so that's another project we've taken on so again we could use the help with someone like that technician would afford us. Two other changes within our staffing and as I mentioned Jan Miyamoto is our workforce development specialist and she is funded partially by the county and partially by the WIA grants. I mentioned a lot of those funds have been reduced over time and so whatever funds we do get we want to keep towards the programs themselves and not take funds away to basically pay for the administrative side of things. What we're proposing is an additional 25 thousand to have Jan fully funded by the county and any funds that we do get from the federal government or the State can go directly to programs that she can administer. The last change... Mr. Chang: Excuse me George? Mr. Costa: Yes. Mr. Chang: I'm sorry to interrupt. WIA... Mr. Costa: The Workforce Investment Act. And the third change would be as I mentioned we have an accountant in our department. Right now he is basically funded by the HTA Grant that we received and part of the workforce investment act grant. Last year we came to the council and asked because we've had to rely on him to assists us with the other fiscal responsibilities of the other sectors in the office of economic development, including energy programs that I work on the film and so we funded Kent Horikawa another 10 thousand dollars but that's another position that we want to support more with county funds so he can be an overall accountant for the office of economic development. Otherwise we pretty much do our own accounting because we don't have a full time accounting person in that office. Those are the basic the main staff changes that we've made to our budget and if you look ahead in that page that I said I did a summary on the variances and that's I believe on page 21 of your handout. It has a worksheet that shows the 3 main sections of our budget and the top section is salaries and wages and it shoes what we have currently in this year's fiscal budget and what we're proposing. So the main changed that I mentioned come out to about 90 thousand dollars in addition to what we currently have. In the next section as I mentioned the benefit section (A) part of that increase reflects what we have and those additions, 90 thousand dollars in additions that increase in the benefits reflects the increase of those positions as well. When we get to our actual budget as I mentioned the bulk or 62% of our budget reflects the various programs in agriculture, tourism, film, energy and what I did basically was look at that section of our budget, look what the variance is to this year and basically explain what the main variances are. When we look at our operating budget we're looking at a... excuse me one moment. So when we look at our main budget we actually shoe a decrease from this current year of about three hundred and ten thousand dollars and those decreases can be reflected in four key areas. One is in the agricultural area, livestock under the Kauai Cattlemen's Association. There budget has been April 5, 2012 Office of Economic Development p.7 reduced by about 19 hundred dollars. Another agricultural area is the Kaua`i Independent Food Bank as Councilman Chang had pointed out the SNAP program where we are eliminating that program. Right now we're actually working with the Kaua`i Independent Food Bank with the current grant that they have to ensure that the funds that are there right now we can implement that program. The other two areas are the CEDS program that we're currently doing right now, under KEDB CEDS there's a $135.00 dollars under feasibility studies that are ongoing right now. Those include feasibility studies for a slaughter chill facility; another feasibility study that's being conducted right now is a commercial kitchen business incubator. Another one is a digital media center and also the capacity building for the Kaua`i County Farm Bureau. So all of those programs that are budgeted this year are in the works right now and aren't reflected in next year's budget obviously. Those are the main changes and then KPAA also is presently conducting a feasibility studies with regards to the health and wellness sector. They are also doing a sustainability study as well and that equates to a hundred and forty five thousand dollars. As I mentioned are in the works now and we'll have the results of those by the end of June, but unfortunately we won't know the results of that to budget in this budget what we need to do for the coming year. So that basically adds up to the three hundred and ten thousand dollar reduction and overall the office of economic development as far as programs basically we're supporting the same programs to pretty much the same funding degree as this year accept for these here. So the office of economic development is reflecting a reduction of 4.2 percent or almost a hundred thousand dollars, ninety eight thousand to be exact. Mr. Furfaro: That's the total reduction from previous years? Mr. Costa: From this current year yes. And those as I mentioned those four areas that I just went over are the components of that reduction. Mr. Furfaro: What was that, George, ninety-eight thousand? Mr. Costa: The overall department for the office of economic development is showing a ninety eight thousand dollar decrease from this current year. Obviously we have the increase in staffing and we have the increase in benefits and on the operation side a decrease of three hundred ten thousand so in that aspect it's about a hundred thousand. Mr. Furfaro: I understand where you're coming from thank you. Mr. Costa: I will open up to any questions. Ms.Yukimura: George, first of all I want to say that when I look at the breath or scope of the programs your having to oversee and the importance to the island I'm really impress that you do it with such a small team and very hard working I might mention. I just wanted to express my appreciation to you and your office for doing this very good work. You just mentioned and I just didn't hear the program that you sad will be completed by June and therefore whatever the results are, are not going to be in this budget. What was that? Mr. Costa: Yeah that's kind of a catch twenty two. When we went before this council last year for the CEDS programs those were to look at various projects that have actually been on the books for a number of years. One is the papaya infestation facility, the other as I mentioned was looking at a slaughter chill facility that we can either build or maybe even improve to keep the cattle that we export to the mainland and then buy back through the retail stores to keep that on island where we can raise the cattle, slaughter and process and chill here. Those feasibility studies are being conducted as we speak but unfortunately the timing of it is we won't know the results of which projects we can move forward and to what degree and how much, we won't know April 5, 2012 Office of Economic Development p.8 that. Maybe by our May submittal we may have a better idea but right now it's hard to budget something that I don't know what the outcome is going to be right now. Ms.Yukimura: Okay I'm aware of those studies and your right that at least when we looked at it 2 months ago there were some real challenges and uncertainties. Okay but I just wasn't sure what you were referring to. On the SNAP program are you saying that there is going to be a way to continue it even though the funding is not going to be in this budget that you're proposing? Mr. Costa: Well I'm not really sure actually we're scheduling a meeting with the new manager that's there now and obviously they've had some changes just within the last six months and I think they're on their third manager right now. We are scheduled to meet with that person next week to see exactly what's going to be done with money they do have this year the twenty eight thousand dollars that was approve. So for right now and maybe it might change by the next submittal, what we want to see is if they have the capacity to carry out that program next year well for this year and then if possible next year as well. Ms.Yukimura: Okay because at the get fit annual meeting that was part of the presentation because locally grown food to our residents is one of the goals and I know they were saying that the position that keeps the program going and it showed that, that was the concern in terms of sustaining that position. I don't know what all the options are but I think it is a program we want to somehow sustain. There were really good results in terms of the numbers of clients or SNAP eligible buyers who were using the program and it was really encouraging to hear that they were getting fresh local produce into their diets. So you will be meeting with them? Mr. Costa: With the new manager I believe who just came on board. Ms.Yukimura: To discuss the sustainability of the program? Mr. Costa: Well to discuss this year's current program to see how they are going to manage that and basically utilize the twenty eight thousand to ensure that, that program continues and also to give us a sense of confidence that this program can continue and if so we may be coming back at the next submittal with some support. Ms.Yukimura: Yes I would like to know some kind of ball park figure for keeping it sustained?And whether there might be I mean this is a federal program, I think this is a federal program right? Mr. Costa: Right. Ms.Yukimura: So I'm just wondering whether there might be some sources of financing either through federal programs or other sources. What would be a logical thing would be the soda tax that the Governor has been proposing. Maybe we need to lobby for that and make sure that these kinds of programs are included in the financing that comes from that. Mr. Costa: I know since I've been involved over the last few years that organization has come to this body and basically I shared significant results of the recruitment, getting people on the SNAP program so it does really well and so we just want to see if that can be continued. Ms.Yukimura: Right and what I'm looking for is some sustainable funding but okay if we can get some ball park figures that would be helpful thank you. April 5, 2012 Office of Economic Development p.9 Mr. Furfaro: A follow up from previous request. Did you solicit from their board their audit? Mr. Costa: Oh yes, we did. Mr. Furfaro: Okay and has our audit department had a chance to look at it? Mr. Costa: Not our audit department but Bill Spitz and I did meet back then and it was last year sometime that we went through the audit so I will follow up with that. You are referring to the county's auditor? Mr. Furfaro: Yes. Ms.Yukimura: You're referring to the audit of the food bank? Mr. Furfaro: Yes of the food bank. Mr. Costa: Right and what they did with the funds. Mr. Furfaro: Because we gave them twenty eight thousand that I think they haven't spent yet. Mr. Costa: For this year they haven't. Mr. Furfaro: Yes. Mr. Costa: Yes they haven't spent but when we did the audit last year we were auditing basically the previous six years because we wanted to see what the program did. Mr. Furfaro: So I would want you to have the most current audit reviewed if you can request that for the board. Mr. Costa: Okay. Mr. Kuali`i: Thank you Mr. Chair. Aloha and Mahalo for being here George. Thank you for being here and thank you for all the work you do and all your staff as well. Some specific questions, have you had any position vacant for any part of fiscal year 2012 so far? Mr. Costa: No. Mr. Kuali`i: I was going to ask about positions funded by grants and you've talked about that. So as far as the potential for any more grant monies to help fund positions, I know a lot of non-profits the way they're able to fund their positions is with specific projects like maybe in these 5 different areas that staff is working on they get grants for the projects but then a portion of that money can actually help pay for a portion of the staffs time.At this point the county is except for the positions you mentioned the county is fully funding all those specialist positions in the different areas of agriculture, tourism, whatever? Mr. Costa: Right. Mr. Kuali`i: But they're working on projects and perhaps some of those projects have or could have grant moneys associated with them, and I would like to see going April 5, 2012 Office of Economic Development p.10 forward if we could go after those grant moneys for projects that actually we could use a portion of that to help pay for positions. What sounds like is happening is the opposite that some of the you said with the workforce investment act, funding that that position was partially funded by that • grant, you are now asking the county to fully fund it because the funds are dwindling. I recognize that the work is important and it needs to get done so it needs to be paid for somehow but I don't want us to give upon the possibility of funding those positions with grant money as well. Mr. Costa: Absolutely. Mr. Kuali`i: The other position you talked about was the accountant I guess and is that a full time position? Mr. Costa: Yes. Mr. Kuali`i: It has been or it's going to be? Mr. Costa: It has been. Mr. Kuali`i: It's been a full time position filled and funded by HTA and WA grants? Mr. Costa: Yes. Mr. Kuali`i: But going forward your funding it out of the budget? Mr. Costa: Yes those funds have been drastically reduced over time and it's gotten to the point now where what we have left for actual program is is very small. Jan Miyamoto is our specialist and I think she can probably speak to that so at some time in point I could call her up and have her explain a lot better. Mr. Kuali`i: And maybe the last thing on this portion on the actual positions is, so you also have a Clerk Typist position? Mr. Costa: Yes. Mr. Kuali`i: That's a dollar funded position? Mr. Costa: Dollar funded right. • Mr. Kuali`i: So how long have you had that dollar funded position? Mr. Costa: Seven years and she's basically funded by a HTA grant. Mr. Kuali`i: And that grant is okay? Mr. Costa: No that grant is also getting reduced too. Mr. Kuali`i: But you're leaving that as a dollar funded position? Mr. Costa: Right she works part time. Mr. Kuali`i: So in those seven years it's been that way? April 5, 2012 Office of Economic Development p.11 Mr. Costa: Right. Mr. Kuali`i: Dollar funded positions funded by grants? Mr. Costa: Right. Mr. Kuali`i: Okay. The other thing is so you mentioned about the ninety thousand dollars and you associated it with changing in the positions and that the benefits costs would be related. In looking at the variance the salary increase of eighty one thousand eight hundred and sixty dollars represents a 15% increase. The other post employee benefits from one seventy four thousand to two nineteen and forty five thousand increase represents a 26% increase. But the health fund contribution has gone from thirty seven thousand four hundred fifty to a hundred and nine thousand one hundred thirty four, for a seventy one thousand increase which is nearly 200% increase so I was wondering was that because part of that is attributed to the new positions but part of it is also attributed to the old positions? Mr. Costa: The current staff. Mr. Kuali`i: So we will probably see that across the board than with all... and if cost has increased drastically. Mr. Costa: Right. Mr. Kuali`i: That's it I just want to recognize that there is a lot that you're doing and I like that you talked about all the different work that this new Economic Development Technician could be helping with as far as in the different projects, bringing Kaua`i made fully back into your office, freeing Beth up and the Hanapepe vendor's issue and all of that. As much as your doing this (inaudible)to do a lot more too. Mr. Costa: Oh definitely. Mr. Kuali`i: Thank you. Mr. Costa: We've got a waiting list. Mr. Kuali`i: Thank you. Mr. Costa: You're welcome. Mr. Furfaro: Mr. Chang. Mr. Chang: Thank you Chairman. George thanks for being here. On page number 14, number 4 regarding our visitor industry, Kauai Visitors Bureau. So you're saying that you wanted to increase their budget by twenty five thousand from the seventy five last year? Mr. Costa: Yeah I just noticed that it says one twenty five and that one suppose to be a dollar sign so it's increased by twenty five thousand from last year's seventy five. So right now in the budget it's a hundred thousand for this year. Mr. Chang: Okay so a little history we gave the Kaua`i Visitors Bureau seventy five thousand last year? Mr. Costa: For this current year. April 5, 2012 Office of Economic Development p.12 Mr. Chang: Okay but wasn't that cut from, what was, didn't we not cut it pretty drastically? Mr. Costa: Yes I believe it was one forty the year before. Mr. Chang: So was that reflective of the two hundred thousand dollars that we got from the TAT or was that because of the million dollar grant? Mr. Costa: Well part of it was the million dollar grants and Kaua`i Visitors Bureau got an administration fee, a reduced administration fee from that million dollars so the actual funds that occur every year for the Kaua`i Visitors Bureau was reduced from one forty down to seventy five this year. Mr. Chang: So help me out. Mr. Furfaro: Mr. Chang may I ask for some clarification before you go any further? Mr. Chang: Thank you. Mr. Furfaro: The one million was in two increments of five hundred thousand each? Mr. Costa: Right. Mr. Furfaro: Two separate years? Mr. Costa: Right. Mr. Furfaro: Okay I just wanted to make sure we didn't give a million dollars in one year. We gave urn... Mr. Costa: Phase one and phase two of which they... Mr. Furfaro: Okay was spread over two year's right? Mr. Costa: Right. Mr. Furfaro: Prior to that, prior to that grant it was a hundred and forty thousand? Mr. Costa: Right. Mr. Furfaro: After that grant we went to seventy five thousand of which this year you're asking for another twenty five thousand? Mr. Costa: Right to increase it back up to at least a hundred thousand. Mr. Furfaro: But you're not taking it to the pre-grant year amount?You're not taking it to the one forty? Mr. Costa: Not right now, but I probably should. April 5, 2012 Office of Economic Development p.13 Mr. Chang: So your saying not right now but probably should. Okay I guess I will be... Mr. Furfaro: That's my question Mr. Chang. If we gave them extra money why aren't we getting to pre-levels?And your answer is? Mr. Chang: Can I answer what he wants to answer. I think was what you said that you're hoping to get at least... Mr. Costa: Well actually I have to look at the entire OED budget right so for me personally when I'm looking at adding another position, I would like to increase a lot of the different sectors to what I feel they should be. Mr. Furfaro: That wasn't the question George to go to all sectors. Mr. Costa: Yeah I know. Mr. Chang: let me word it another way if you can since you mentioned positions that you're adding. On page number 10, Office of Economic Development you talked about the department receives a lot of attention in the forms of projects and grants that provides opportunities for job creation and or job maintenance. Many of the projects assigned to the Office of Economic Development are those that do not fit with the mission of the other county departments. The small staff that makes up the office of economic development is very dedicated and tries their best to bring all projects to fruition. This can be especially difficult to accomplish on a timely basis with managing multiple projects and priorities along with being an intercool part of Kauai's Business Community. The Office of Economic Development Director, meaning you George K. Costa, alone averages a minimum of four hours of meetings a day for the past 3 years and that doesn't include I would imagine weekends. At least one additional staff position will be requested, so I guess what I'm saying is that I really want to be supportive of your department and especially as the Chair of the Office of Economic Development here. I understand of the work that you guys are going through and what I wanted to say is that we've already had a yearend summary which was incredibly a well received by the community with what the visitor industry has done with that two hundred dollar stimulus money which I believe was a part of the TAT tax that we received. They went above and beyond and we received testimony from abroad from Councilmember Bynum, which unfortunately is not here today. It was the first time I believe he actually manned the booth and actually stood there throughout the course of the day to see what it is to hit the ground running and these positive messages and I'm not going to quote what he said he would recommend passing on. I just have to say right off the bet I'm going to be totally supportive with at least a bare minimum trying to get to that pre-levels and if not more. You know statistically you mentioned the Garden Island newspaper and the Star Advertise. I mean when I see it on Howard Dicus about month after month after month, you know I think Ken Stokes just came out with a report that the industry is just going... and everything else is going sideways. We need to piggy back on the Kanani's of this world, the descendents of this world. I have said this many of times and I have said it recently, out of sight out of mind, we are not out of sight out of mind we are in the forefront and we can't stop the momentum because if this is the engine that's driving us than in my opinion we have to fuel a proven object. I think Sue Kanoho and her small staff is going above and beyond and yet another entity with no job description. That's like you guys so I'm hoping we're all lobbying our TAT but I just want to say out loud that if your office needs assistance that helps us when we fund the office than we get our projects taken care of and that's what the engine that going to get small sectors you mentioned small and large. I just wanted to say publicly this is something that I'm really going to be pushing for is our visitor industry. I will just keep my questions short now so we can go around the room so everyone can get to say what they need to say. Thank you. April 5, 2012 Office of Economic Development p.14 Mr. Furfaro: Councilmember Nakamura. Ms. Nakamura: Thank you George and to your office for all your great work. I had a question that has to do with the Kilauea Ag Park. I wanted to find out when was the environmental assessment completed? Mr. Costa: It was completed last year in September. Ms. Nakamura: September; and I know it's a line item in the CIP budget to move on to the design work and I'm just wondering is that the direction that this administration is committed too? Mr. Costa: Well right now and I just met with the Kilauea Neighborhood Association on Tuesday night and went over the results of the environmental assessment and a lot of the recommendations and the associated cost with what's really transpired and it's you know for me I heard about it growing up about the Ag Park and I have gotten to meet Linda and Kawika Sproat and the farmers that are very passionate about that project. I mean I'm talking about from what the 70's and the 80's and it's been 30 years in waiting for this project and I really feel for them because the message I delivered the other night was the reality of it all that over the 30 years the cost has increased. When you look at 75 acres it's a nice piece of land but there use to be surface water, irrigation water but now you don't because basically its surrounded by urban sprawl and so now with part of that environment assessment one of the recommendations by Tom Nance who was the hired consultant who was the hired consultant for waters is saying since there is no surface water and there's basically 5 five eight inch meters basically for house use to drill 3 four hundred foot wells and a 3 hundred thousand dollar storage tank which basically took the cost of that project from 4 million to almost 7 million. So that's one challenge and the other challenge is as part of the flora fauna study it's observed that the Nene and some other endangered species loved that place and so now we're going to have to address the whole conservation habitat plan and that we've just now breaking the surface on that I'm trying to get my arms around that in what's involved, what do we need to do. I'm also looking at the time element because I've seen what the County has to go through, what KIUC went through in developing their conservation habitat plan. I basically told the (inaudible) I know you want this done like yesterday but when you look at all of these challenges we may be talking about a year, two years, three years, I mean I don't know what the cost is going to be than. So the feedback from the community was you know what now that it's in the county's hands the costs has skyrocketed. I said well I'm just delivering the message on what we're required to do now and some of the community the farmers and especially they have equipment their saying why doesn't the county just lease us the land and will go on and develop the Ag Park ourselves. Well I didn't even get my arms around that or even if that's possible. Like I said I just met with the community, I'm going through my notes and I still have to meet with the Mayor and Public Works and the other staff but that's kind of where we are right now with the Kilauea Ag Park. And the other thing too is I have every intention of coming to this body and presenting what I presented to the community as well which is the results of that study. Ms. Nakamura: The other question that I had has to do with the CEDS line item in the CIP. So you're right about the timing of the feasibility studies which really we won't get until May or June and yet the Federal funding process starts up soon and part of that funding for economic development projects requires matching funds. So we're sort of caught if we don't do something in this budget cycle than we wait another year before beginning the process. So the thinking was and some people were thinking that it might be able to do a CEDS CIP sort of place holder until we get the results of the different business study and get a better idea about which one would be the best to pursue given our limited funds. April 5, 2012 Office of Economic Development p.15 Mr. Costa: Right. Ms. Nakamura: So you know that's something that I still would like to pursue and add to the two hundred fifty thousand dollar place holder and I just wanted to put that out. If you have any other comments... why don't we go around again? Mr. Furfaro: You want me to send you a couple of carryovers from last year to see what's happening there? Mr. Costa: Okay. Mr. Furfaro: First in the area of invasive species we sponsored a day of a workshop and it seems to me and it's critical that we don't lose a handle on where we've gotten so far. Especially with some of the firms and it looks like they got some great partnerships with the hunting communities and so forth as we have issues going into our valleys and so forth. On the Koki frog in particular it seems to be that we need to really have this one of the year as it was presented to us to make sure that we've gotten to a point that it's eradicated but they pointed out to us that it's going to take a year to really listen closely to see what's happening in Lawa`i, Po'ipu and Kalaheo. How much discussion was there in taking out the invasive species money? Mr. Costa: You know again we looked at all the various projects and being that we had just funded the invasive species fifty thousand. It was just one of those that we felt again because they had done so much great work in controlling that, that maybe the funding needed to be there. On a personal note I have to say that I spent this last weekend in Hilo. Mr. Furfaro: Unbelievable huh? Mr. Costa: It's the first time actually my wife and I celebrated our anniversary. Mr. Furfaro: It is unbelievable. Mr. Costa: I had not been back to Hilo since they've had coqui frogs and I couldn't believe and besides the coqui frogs they've got... what's that plant? Mr. Furfaro: The miconia. Mr. Costa: The microns and I saw that all over especially on that Eastern coastline and I've been involved with KB (Kaua`i bee keepers association) and they got their challenges you now with (inaudible). For me personally I think we should... Mr. Furfaro: I just want to share with that I'm glad you went to Hilo I go once a month. I want you to know they were probably singing to you because you cam e on your anniversary. But I just want to ask that and a couple of things before I want to jump to the Visitors Bureau but let me see if councilwomen Yukimura has any questions on the invasive species why don't you go ahead first. Ms.Yukimura: Yes regarding invasive species I think we have to look at the cost of not controlling them and include the agricultural pests. We already are aware of how much the fruit fly has cost to out ag industry and actually I hear that the parrots are causing a lot of problems to the ag industry as well. I think it's a really good investment from watershed protection miconia, to visitor industry protection Koki frog, to ag industry protection. It's like a really important April 5, 2012 Office of Economic Development p.16 insurance policy so if we think about it that way I think it's more than worth fifty thousand at least and I know their asking for a hundred thousand but I keep thinking that the Water Department and Board is a logical partner in funding because watershed protection is primary to water. What was that beautiful film that DLNR just put out...The Forest Follows The...well it's a beautiful film and the message is like really important. So to me it's as justified as economic development expenditure. Mr. Furfaro: Just to give you some history on that back in 2006 the State had a million bucks and they have Kauai nothing. Councilwomen Yukimura and I, we lobbied the first amount of money which was a hundred and twenty eight thousand dollars from the County to get on top of it for Po'ipu and Lawai. The next year we have 68 thousand and then we got into a maintenance level of about fifty of the million dollars that the State used on the Big Island. Guess what I hope you enjoyed the orchestra on your anniversary, it is and they did nothing, they accomplished nothing so I wanted to re-visit that. On the Visitor Industry I'm going to give this to you this occupancy report George, I think we may have talked about this before but I want to find out as the State compares the inventory classifications that we have on Kauai which in the State we have 21.4% luxury, 37.8% deluxe, 33% standard and I don't have to go through these terms because you and I both know what they mean and what those amenities are, and 7.6% in the economy budget class. I would like to get those percentages from HVB of our makeup? Mr. Costa: Okay. Mr. Furfaro: And I will pass you this report. Also in occupancy has grown 3.1% with the way Dickie described it is like we're in the money. You know that song? Okay so we haven't quite gotten there yet but we do have the great report indicates our average daily rate is up 84 dollars and 52 cents. Spending is up substantially in other areas but we need to know the mix so that we know what's driving that high rate. When we started in the Visitor Industry you and I the TAT was 5% then it went to seven and a half and I couldn't get home last night so I checked out my TAT and it was 9.2%. The State is going to be the beneficiary of the growth in these TAT revenues not us. I think it's certainly important for us to have an understanding of what kind of categories we have and what it's contributing. I think I asked this of you last year, couldn't we go to the State or even ask the HVB to help us on this or some of these visitors associations. Why can't we be a member of the star report? Mr. Costa: Nalani Brun and I who is our tourism (inaudible) and you did mention it about 2 months ago so we're working on being a member of that. Mr. Furfaro: Okay because I want to make sure we get the star report, if we get the star report we can see the payoff. We get these things from the State, Economic Development and they're a year behind so I have to do a few phone calls to a few people I know in the business to find out how you're doing. If we became members of the star reports we can measure the results and if I know we can measure the results than I would certainly support us getting that to the previous year's level but I want to make sure we can measure it George. Mr. Costa: Okay. Mr. Furfaro: Okay and it's 12:30 and I don't know where the time went but we're going to go around the table for a few more minutes if you don't mind? Mr. Costa: No not at all. Mr. Furfaro: Because you're not back on the agenda after lunch. Mr. Kualii. Okay we'll have questions coming over to you George. Ms. Nakamura. April 5, 2012 Office of Economic Development p.17 Ms. Nakamura: I'm just concerned about the HTA's reduction in product enhancement funds and I wanted to find out what is the total reduction for this upcoming year? Mr. Costa: Twenty five thousand. Ms. Nakamura: Oh twenty five? Okay and is that why you have funding in your budget?Does that try to make up for the reduction in HTA? Mr. Costa: Right because a lot will come from the Administrative side right? Ms. Nakamura: So that's why you have that new line item in here? Mr. Costa: Yes. Ms. Nakamura: That's good to see. I really think that, that is such an important program for residents and visitors so I think we should try to do whatever we can to support it. Mr. Costa: I just want to add, excuse me I just want to add that yesterday Nalani conducted and I know Sue was in attendance. Nalani conducted a workshop at the Hyatt to help capacity building for those that put on festivals and events and help them not only look at grant monies but also other types of funding sources for their events to become self sustaining because obviously HTA's looking to wean different events off of their funding. Mr. Kuali`i: Thank you Mr. Chair. I will still submit most of what I have in writing but I wanted to talk about one thing and that is I kind of want to figure out and it's mainly in the agricultural area I guess. I want to have a clear sense of how we're actually supporting the growth distribution and excess to healthy foods. We have monies like twenty six thousand to the sunshine market through the garden island resource and I'm not sure of that organization and five thousand value added and then we have Kaua`i grown sixty thousand. So the SNAP Program at the Food Bank and the EBT Program, the EBT Program is for the farmer's market right? Mr. Costa: Right. Mr. Kuali`i: So there's no funding there so I mean these different pots of money kind of like doing all the same work together I mean it would be helpful to me to know. If you put a dollar amount like Kauai Grown sixty thousand, so the narrative on that how is that sixty thousand is being spent really. Maybe it is supporting the Farmers Market I mean because it's all the same thing right? It's the growing distribution and healthy access to healthy foods here on Kauai? Mr. Costa: Right. Mr. Kuali`i: So I see these small pots of different funds but I'm not sure how its working together and which monies are doing what and whether now that means the EBT Program at the farmers market which is really successful might struggle. They just got off the ground right? I mean they're in the year in the making. What we heard like Vice Chair Yukimura said at the Get Fit Kauai Annual Meeting was that a lot of our families who has never been to the farmers market and this has given them the chance with that subsidy and that ability and with someone there a part time staff person actually helping facilitate I think is something we should continue. Whatever minimal amount of funding we can put in there it's that we are getting a big benefit for twenty thousand dollars, thirty thousand dollars, whatever. So to have it totally blank I'm a little worried that they just got it going and how are they going to sustain it. April 5, 2012 Office of Economic Development p.18 Mr. Costa: Okay. Mr. Kuali`i: Thank you. Mr. Furfaro: You're welcome. Now George I have a new understanding with the Administration that we send over questions during business hours. We have 48 hours to turn them around so we're going to send questions over to you and we would appreciate it by the end of the day on Tuesday if you can have those written responses back to us. Mr. Costa: Okay. Mr. Furfaro: Thank you very much for the presentation today and what I would like to do is ask if there's members of the public that would like to have 3 minutes to speak on these items? I don't see other members of the public here so we'll probably break for lunch and we'll be back at 1:40 for the Administration and we're going to start with the Audit Department. George again thank you very much for the presentation. Mr. Costa: Thank you. Mr. Furfaro: We are on a lunch recess until 1:40. There being no objections, the budget reviews recessed at 12:43 p.m. April 5, 2012 Auditor p.1 The Departmental Budget Reviews reconvened at 1:45 p.m., and proceeded as follows: Excused: Councilmember Bynum OFFICE of THE COUNTY AUDITOR: CHAIR FURFARO: I want to welcome the County Auditors that are here for their; presentation. There was submittal from them from August 5, 2012, and I do want to circulate around the table one minor change and he has handled it how I requested, an amendment which really indicates a date change which was reflected in its original package on certain attachments for the CAFR should now reflect December 15, 2011 rather than December 21, 2011. That is the only change, am I correct there? ERNESTO PASION,AUDITOR: Yes sir. Chair Furfaro: If I can ask you and Lani to just introduce yourselves, that would be fine and you will have the floor. Mr. Pasion: Good afternoon, Chair Furfaro, and Councilmembers, my name is Ernesto G. Pasion, County Auditor for the record and with me is Lani Nakazawa, Audit Manager. Chair Furfaro: Okay, we have Mr. Bynum out on another appointment. Other than that we have all members present. You have the mic. Mr. Pasion: Thank you Chair. I have submitted to you as requested my Budget Presentation Material and I am going to read it. The mission of my office is, in the 2008 General Election, a Charter Amendment to establish the office of the auditor was overwhelmingly approved by the voters, receiving 75% of the votes. The office is staffed with the County Auditor, Audit Manager, Staff Auditor,Audit Analyst and a Departmental Staff Assistant. Our mission is to promote honest, efficient, effective and accountable government for the County of Kaua`i through carefully selected audit of critical areas. We have three goals. Goal 1: To serve as a catalyst for positive change throughout county operations. Goal 2: To help ensure that the County's scarce resources are used effectively, efficiently and economically. Goal 3: To inspire public trust by safeguarding the County's financial integrity by having annual financial audits done by outside auditors and conducting in-house performances audits. Now we are going to evaluate provide you with an evaluation of the fiscal year 2011-2012 objectives. In furtherance of its goals, the Office of the County Auditor pursued the goals described below. The objectives, whether they were achieved, and obstacles or challenges are shown in the following matrix. The matrix we followed was provided by the Council. Objective...Produce the county-wide FY 2010-2011 Comprehensive Annual Financial Report, which we usually call the CAFR. By having this one we met goals 1, 2, and 3. The CAFR was presented to the County Council with the outside Auditors on December 15, 2011 and the draft was provided to the County Council December 9, 2011. The next objective was to complete three to five audits during the fiscal year, which would meet goals 1, and 2. April 5, 2012 Auditor p.2 Audit 1: Fuel Audit Phase 1. The objective was met, and it was issued yesterday or the other day and you must have read it in the paper. It was covered by the Garden Island. Audit 2: Audit of County's Cash Management Practice and Control, work is in progress and will be issued in FY 2011-2012. Audit 3: Audit of County Capital Project Management (Road Resurfacing Program). Fieldwork is substantially completed and analysis is being conducted. We anticipate issuing a report in FY 2011-2012 What kinds of obstacle and challenges we met? County records are scarce, non-existent or incomplete, making historical research difficult. Other projects contributing to goals: conduct pre-audit assessments, which meet goals 1, and 2. A) Hazardous work conditions at the Kekaha Landfill. This report will be issued before the end of the fiscal year. B) Sick leave use. Research is being conducted. The sick leave pre-audit assessment will be completed before the end of the fiscal year. C) Solid waste overtime compensation practices. Entrance conference held and fieldwork is in process. And based on material we have so far, it will most likely be converted to a full audit. Other audits being conducted: A) Audit of County's Program to Manage Employee Cost: Furlough. Fieldwork is being conducted; It is anticipated that the audit will be completed by December 31, 2012. The delay is caused by the Finance Department in providing the necessary data to the Auditor's Office. In addition, the database provided was incomplete, and resulted in extra costs for work by the consultant to bridge the gaps in the database. B)Audit of County's Program to manage employee costs: Partial hiring freeze. Field work is being conducted. It is anticipated that the audit will be completed in FY 2012-2013. County hiring records are maintained in paper form, on index cards. Data had to be manually extracted and converted to electronic form for analysis by the Auditor's Office, resulting in delays and additional cost. C) Pre-audit assessment of selected issues regarding the enforcement of planning and building permit conditions. Entrance conference held and fieldwork is in process and again County records are in paper form and data must be extracted manually. In addition personal changes in the Building Division permitting section in the Planning Department make historical research challenging. Will objectives be accomplished by June 30, 2012? Please describe some of the obstacles or challenges that have prevented the department from accomplishing objectives, and your strategies to address obstacles or challenges. And it says please see matrix above for description of completion dates and audit-related challenges. Other Successes and achievements: April 5, 2012 Auditor p.3 The Audit Department's other successes and accomplishments within the last year are as follows: 1. The office utilized an innovative RFP approach to procuring the annual financial audits, resulting in savings of$40,000 for the financial audit for FY 2010-2011. The audit was performed by N&K CPAs on its first year of a four-year contract. Presentation by N&K CPAs took place before the County Council on 12/21/11. 2. In 2007, the Association of Government Accountants (AGA) initiated a Citizen Centric Government Report, which aims to bring citizens into discussions over local priorities by making government financial documents short and easy to understand. The report seeks to answer the question "are we better off today than when we were last year?" The office issued the FY 2009- 2010 Citizen Centric Report, the very first one issued in the State of Hawai`i. Subsequent to this now the City and County of Honolulu has issued their FY 2010-2011. The report provided a reader- friendly version of the CAFR. The office also produced a FY 2010-2011 Citizen Centric Report that was submitted to the AGA for review. 3. The office achieved full staffing levels, hiring the Program Support Technician provided by the County Council in the last budget. This position provides valuable clerical and analytical assistance to the Audit Staff. Challenges: Acceptance of audit functions: During the past two fiscal years, the office has provided training sessions to head of key County Departments about the audit function in order to decrease apprehension about audits. In addition, we have implemented informal exit conferences prior to issuing draft reports, so we can discuss proposed audit findings with auditees, and make changes to the drafts, if necessary. Although these efforts have resulted in increased, positive auditee interaction, acceptance of the audit function requires more responsive attention. Impairments to independence: Government auditing standards provide that audit organizations must be free from external impairments to independence. Such impairments occur when auditors are deterred from acting objectively and exercising professional skepticism by pressures from management and employees of the audited entity or oversight organization. Examples of impairments experienced by the office are externally imposed restrictions on access to records, government officials, or other individuals needed to conduct the audit; and restrictions on funds or other resources provided to the audit organization that adversely affect the audit organization's ability to carry out its responsibilities. Lack of legal representation: The office does not have impartial legal representation to assist it in performing its functions. For example, we have seen the County Attorney and the Deputy County Attorney assigned to represent the Auditor's Office appear in adversarial roles in audit investigations. FY 2012-2013 GOALS AND OBJECTIVES Basically our goals are the same as the prior fiscal year. Goal 1: To serve as a catalyst for positive change throughout County operations. April 5, 2012 Auditor p.4 Goal 2: To help ensure that the County's scarce resources are used effectively, efficiently and economically. Goal 3: To inspire public trust by safeguarding the County's financial integrity by having annual financial audits done by outside auditors and conducting in-house performances audits. Objectives for fiscal year 2012-2013: In order to achieve these goals and to address its challenges, the office has adopted the following objectives for FY 2012-2013 as follows. 1. Complete CAFR and present to County Council in December, 2012, which will meet our goals 1, 2, and 3. 2. Complete performance audits and pre-audit assessments, which will meet goals 1, and 2. 3. Complete Citizen Centric Report for FY 2011-2012, submit for national recognition, which would meet goals 1, and 3. Initiatives to address challenges: Challenge 1: Acceptance of audit function. The office will work toward greater acceptance of the audit function through education presentations. The office plans to continue to offer to the County Department Heads, Managers, and Supervisors a presentation regarding the audit process to help County Employees better understand the role of the County Auditor and the ways in which audits re typically conducted. The office will also continue to meet or exceed the Generally Accepted Government Auditing Standards (GAGAS) and other professional requirements for continuing education to maintain a level of professionalism that promotes greater acceptance of the audit function. The office will offer to make presentation to the public, through organizations such as the Kaua`i Chambers of Commerce, Filipino Chamber of Commerce, Kaua`i Planning Action Alliance (KPAA), to explain the role and responsibilities of the County Auditor and the audit process. The office recently made a presentation to the Lihu`e Business Association and received positive responses from members and attendees. Challenge 2: Impairments to independence. The office hopes that its upcoming peer review will provide it with the opportunity to solicit outside input regarding this challenge. The GAGAS requires that an audit organization performing audits or attestation engagements must have an external peer review performed by reviewers independent of the audit organization at least once every three years. The external peer review can provide a reasonable basis for determining, for the period under review, whether the level of external impairments allow the office reasonable assurance of conforming to applicable professional standards. Challenge 3: Lack of legal representation. The office intends to request that the County Attorney provide special counsel to advise and represent the office during the coming fiscal year. Office of the County Auditor Budget Overview April 5, 2012 Auditor p.5 The office of the County Auditor's FY 2012-2013 budget of$1,558,578 is $190,419 or 10.9%lower than the FY 2011-2012 adjusted budget of$1,748,997. Significant changes from the prior year in the FY 2012-2013 budget are: - Operations show a decrease of 23.2%. Budget for Operations of $825,608 represents 53%whereas in FY 2011-2012, it comprised 61.5%. - Salaries and wages show an increase of 6.3%; which is primarily attributed to a reallocation. - Benefits show an increase of 12.8%; due to increased wages and an increase in the benefit factor mandated by finance. The budget includes $25,000 for the procurement of outside auditors to perform a peer review of the office's completed audits and operating procedures, as required by government auditing standards. The budget also includes $10,000 for a dedicated server. During the AGA seminar held in Honolulu last year, the auditors of the jurisdictions in Hawai`i discussed the importance of having an independent server and adequate firewalls to provide security to sensitive audit files and communications. The other jurisdictions have such a system with the exception of the County of Kaua`i. The budget for the proposed system was developed with the assistance of an auditor from the County of Hawaii who was the Systems Manager in Hawai`i County, and has been discussed with IT management Now we go into the graphs, so for next year's budget salaries and wages will comprise 28%, benefits 18%, operations 53%, and equipment lease 1%. As compared to FY 2012 where salaries and wages were 24%, benefits 15%, operations, 61%, and equipment least 1% We go into page 8 and we show a graph showing comparison of salaries and wages of the coming fiscal year with the current fiscal year and the trends by categories where in wages it is going up 6.3% benefits 12.8%, operations -23.2%, and equipment lease 5.6%. The total adjusted the FY 2012 adjusted budget of $1,748,997 is 10.9% higher than the submitted FY 2013 budget of $1,558,578. Chair Furfaro: You said 10.9%higher. That's 10.9%lower. Mr. Pasion: Lower. Chair Furfaro: I'm correcting you, you said higher you're lower. Mr. Pasion: Sorry, it's lower than the last year. Thank you. Succession Planning 1. List critical positions within your department with impending retirements or departures (within 2-3 years). None at this time 2. In general, describe education/training plan for these position(s). Not applicable. April 5, 2012 Auditor p.6 3. Please review the attached "Budget Proviso," relating to training. Would you recommend any changes to the proviso to enable you to train staff in critical positions? No. 4. How many months of training in temporary positions are needed? Not applicable. Vacant Positions 1. List positions that have been vacant within your department for more than one year. None. 2. Describe why the vacancies have not been filled. Not applicable. 3. Describe your plan to address hiring obstacles. Not applicable. Chair Furfaro: Thank you very much for that report and I'm going to ask summary questions from the narrative you just provided us if I can. What are the assumptions in your salary and wage increase at 6.3%? And how does that compare to the rest of the County. Mr. Pasion: The 6.3% increase Chair, was derived by annualizing the first what is every allocation of the program technician to department staff assistant, that's the most ? difficult portion of it, and then the rest of that is the annualization of increases given in some parts of the year this year would be in fact next year. Chair Furfaro: Was there any guideline that you got on that from Personnel Department? That's a simple yes or no. Mr. Pasion: No guidance. Chair Furfaro: No guidance, okay. Your benefit line 12.8% increases those where assumptions made on the health package, welfare package? Mr. Pasion: That was all those percentages are mandated by Finance as a matter of fact they have to make adjustments. Chair Furfaro: Okay. So you got some narrative on those assumptions. Mr. Pasion: Correct. Chair Furfaro: Okay. Good. I'm going backwards, so look back at page 8. In relationship to the Auditor's Department could you provide for me your raw salary cost and what percentage all other payroll taxes and benefit would relate to. For example your twenty-eight total operating budget for raw payroll is X amount of dollars compared to your payroll cost, what does the 18% of your total department represent in the way of PT&E? You don't have to do that now, Ernie you can send it to me. Mr. Pasion: The total benefits for this coming fiscal year is $284,972. Chair Furfaro: So what is that percentage? Mr. Pasion: That is about 68%. Chair Furfaro: You are close to my number. My number was 67% for the County. We had other assumptions as high as 80% but for the purpose of this discussion 68%. April 5, 2012 Auditor p.7 Mr. Pasion: A significant portion of that Chair is the OPEB. Chair Furfaro: Yes, we know that. But what I am saying is your estimates are closer to mine. So we will leave it at that for now. On page 6 without getting into too much depth here, number three the lack of legal representation, I was under the impression that we had an understanding from the County Attorney's office that any legal work you needed in the department would be done by the First Deputy. Is that not the case? Mr. Pasion: Not the case Chair. As a matter of fact when I mentioned about adversarial, because as an Officer of the County they took the oath to support and defend the Charter, which means to say that defend, and support, and defend and protect its assets and everything else in the responsibility of the Auditor is to make sure that our assets are protected also. I took the oath whole heartedly and so... Chair Furfaro: Okay. I understand that part Ernie, because I took an oath too. My question is, I met with.the County Attorney's Office and I was told that the First Deputy would be your go to person. But that is not the case? Mr. Pasion: No, Chair. Chair Furfaro: Okay. Going back on some questions here than. Did you get any feedback on your first report for Your Citizen's Report, did you get any feedback on that report and is there any comment at this point that you want to share with us? Mr. Pasion: Yes Chair, especially when we made a presentation before the Lihu`e Business Association, they made comments, because of the volume of the CAFR and others in the annual report by looking at the quotation. They said it is concise and informative. They can look at it and see what the trends are as far as the County. Chair Furfaro: Besides mailing it out to those citizens with tax keys and so forth, how many maybe presentations did you make? I heard you say Lihu`e Business Association. Did you make any Rotary Club presentation? Mr. Pasion: No. Not yet. The forthcoming fiscal year we plan... Chair Furfaro: So you are going to build on that presentation? Mr. Pasion: Yes. Chair Furfaro: Okay. Other success here on page 4, I read this as if what was done by N&K its certain effects on the Financial Office. Did we actually come in forty thousand dollars less than budgeted? Mr. Pasion: Yes, because we were paying $250 to the outside Auditors situated in Pennsylvania and we paid them $210. The first year is $210 and this coming fiscal year they are going to be paid $215 compared to the $250 that we were paying. Chair Furfaro: So this year in the budget we have the second of three years with NK? Mr. Pasion: Second of four years. April 5, 2012 Auditor p.8 Chair Furfaro: That has been adjusted to the new number that we got from them? Mr. Pasion: Yes. Chair Furfaro: Thank you for that and congratulations on that. When do you expect to finish the audit from the impact of the employee furlough? Just a rough date for me Ernie, I would appreciate it. Mr. Pasion: Let me refer to ... Chair Furfaro: Let me pose it another way, do you think we will get the results of the audit before we get to the end of the year? Mr. Pasion: Yes before the end of the calendar year, not the fiscal year. Chair Furfaro: I am going now to page 2. What about the Solid Waste overtime audit you are doing? When do you think was...because the part I am worried about that currently in the PT&E they are calculating our benefits based on all payroll and you did that audit of overtime in Solid Waste. Mr. Pasion: We are doing a pre-audit, Chair on the Solid Waste overtime and as far as when it is going to be completed? You don't know until you get into the trenches, so you might get... Chair Furfaro: Okay, well I think we have some value there because of the way we calculate benefits percentages and then can you expand anything more on the County Road records? It seems that they are not as complete as we would like them to be, but what are we doing about it? Are they computerizing it? How are they improving the record keeping? Mr. Pasion: I would like to refer to Lath. LANI NAKAZAWA: I know that the new Roads Administration is attempting to put together as much information as they are able to. I think the challenge they have is the same one we had in the Audit and that is historical records are either non-existent or unavailable. There apparently use to be a data base before that we are not able to access anymore. For example the way we he had to do it for the project we looked at, which is the phase one of the fiscal year 2006-2007 is to look at each of the job tickets of the haulers individually to figure out how much paving was actually done. Chair Furfaro: Okay so there are some challenge to rebuild those records but going forward with this new engineering team and so forth, we have had discussions with them about documentation of millage and surfacing and cost per ton and so forth. You feel their implementing that now? Ms. Nakazawa: Yes, I think they are aware of the issues we are addressing. 1 Chair Furfaro: Well I want to thank my Colleagues for letting me go through it first but now I will pose questions from them. MEL RAPOZO: I guess congratulations on the successes. I think I have always been a very strong proponent of Auditors and audits and performance audits and not April 5, 2012 Auditor p.9 necessary investigative audits but performance audits to figure out how we can better improve the efficiency of this County and I think this direction of having an internal Auditor is a lot more cost effective than hiring an auditor every time you have an audit issue. I appreciate the change and again the successes congratulation on those. My question is, as far as your challenge as acceptance of the audit function I know in your report you say you are going to continue to work on that by making presentation and so forth but if you had to give me a percentage of acceptance County wide are we at 50%? Do 50% of the people in this County accept the audit function? Is it 75%? Is it 25%? I will tell you a lot of the people I talk to on the rank and file, not so much the administrators but the rank and file are very happy that we have this audit function now. I think they are concern in many cases they are just as concern inefficiencies of government as everyone is. So in your opinion or if you could or if you can't that is fine too but where do you think you are at as far as acceptance County wide? Mr. Pasion: Let me echo what you just said, Councilmember Rapozo. My Auditors they enjoy working with rank and file. We had good working relationship with Larry Dill recently, but going back to some of your audits. There have been some delays and kind of a...our request are often referred to the County Attorney or to review it, to make sure it is okay, so those the kind of obstacles that we have been trying to... Mr. Rapozo: Okay, that is the second challenge, but as far as the first challenge your acceptance, would you agree there is general acceptance by the general staff? Mr. Pasion: Just to let you know there are some Department Heads without even telling you who they are, they would welcome us to do performance audits, because what they have seen is they look at some of the audits done in the city where the audits are being used by the Department Heads to justify how they would improve their operations. Mr. Rapozo: That is the purpose of an audit. The purpose of an audit is to identify areas where we can improve. Years ago we were debating a specific audit on this floor, and it didn't get supported, but Gary Heu sat up there and said, we would like the opportunity for us to do our own internal audit first so that we can identify whether or not that was ever done I don't know but this function is part of government it is a Charter mandate and it is obvious that some people are going to be reluctant because they look at audits in a negative fashion. I think the education component needs to be focused on the positive component of performance audits and not look at it so negatively. I anticipate that acceptance actually getting better in time. The impairments, I know you talked about you just kind of referenced it. It bothers me to read this where the impediments or impairments where documents, where you are being restricted to documents those are the kind of things, Ernie if those are going on and I'm not sure if you have any dialog with our Chair or not but those are the kind of things I would like to know. If you are in an audit and you are getting resistance from anybody, I think the Council needs to know about it because I believe it is your authority to get whatever documents you need to complete your audit. If that is not happening, Ernie, we need to know about it. Chair Furfaro: Ernie, let me clarify that for the general information for the whole Body, Ernie and I meet every Thursday at 1:30 p.m. when he brings discrepancies to my attention, and I have either followed up with a written communication to the Administration or correspondence to the County Attorney on expectations but we continue to meet every Thursday at 1:30 p.m. Mr. Rapozo: Well thank you, and I can meet with the Chair, but that is of a concern to me if in fact that is happening. Then your final challenge the lack of legal representation I think the Chair made a comment about who you where suppose to be assigned and April 5, 2012 Auditor p.10 I'm hearing that is not the case. In this report you are basically saying you are going to be requesting Special Council going forward to represent you in situations you believe you need to have Special Council. I tell you in my first six years on the Council and I know Councilmember Yukimura was here and Councilmember Furfaro was here, I cannot remember a time where a Department Head or a Commission came to the Body to ask for Special Council. We deal with Special Council request for specific cases where we need expertise outside whether it is a civil law suit whatever the case maybe but in the last few months this would be our third request for Special Council because there is a lack of confidence in the County Attorney's Office. This is the third one. We had one from Ethics, we had one from the Police Commission. I'm sorry we had the Prosecutors and now we have the Auditors. So that is four and I think...and again this is my eighth year going on my eighth year on the Council, and correct me if I'm wrong Councilmember Yukimura and Councilmember Furfaro that has never happened in the past. So that to us here should be a red flag and something is not right and it concerns me when the Auditors cannot get County legal representation so I think that is something we probably going to have to take up individually later maybe in executive session because I believe if the Auditor cannot get legal representation. If the Auditor is facing an adversarial Attorney that is suppose to representing them then it is a concern for the County. I just wanted to make that comment because again this is number four I guess in probably as many months and that is of concern. I appreciate your addressing the how you are going to deal with the challenges because I think every Department will have some challenges and I know that there is ... I did not see it in here but there is the space issue with your current location and you did not cover that. I know I stepped out couple time to run get the report but did you address that in your presentation? Mr. Pasion: No, I did not Councilmember. Mr. Rapozo: I'm assuming this is the time to bring that up right Mr. Chair? Chair Furfaro: No, I had a pre-discussion with him. The adjusted amount which is not reflected in his budget for his needed space is about twenty-four thousand. He indicated to me that he did not make that presentation. Although I physically went to look at his space I do not know if any of you others went and I concurred with him we need to make that adjustment now and not later. Mr. Rapozo: I appreciate that Mr. Chair. I did speak with the Auditor. I have been down to his office and I would concur that need will be necessary. I guess we will be seeing it in a supplemental budget. Thank you very much, that is all I have Mr. Chair. Chair Furfaro: Okay, we will go to Mr. Chang. Mr. Chang: Thank you, I guess on that related subject, yesterday I am not sure if you saw the meetings that we had in regards to the Piikoi Building and I did also have a chance to walk through the space that you are looking at. They mentioned with the availability of some vacancy space there at the former Big Save. Is that any possibility for the Auditor's Office? Chair Furfaro: Let me clarify something. I want to make sure that we all understand there might be a little bit of a tug-of-war between the Council Chair and the Administration. That tug-of-war is we are the liaison to the County Auditor. The County Auditor in my opinion belongs in this building. To me the long term access for him is with the Historical Society long term. Because also when we are now taking bond of all the records and so forth, we have that kind of storage space at the mezzanine level downstairs, but it is an ultimate discussion when the lease runs out for the Historical Society what is the Administration doing for space planning for that service that they provide to us. I mean they are the keeper of our historic records April 5, 2012 Auditor p.11 but my position and I am sorry I have to make it clear at this discussion. I believe the Auditor needs to be in this building because we are the liaison for them. You may want to just know that as I give the floor back to Ernie to answer other questions. But that is my vision. Mr. Pasion: The answer to your question Councilmember Chang is that the decision as far as locating us here or at the Big Save is beyond my office. So it is up to the Council and the Mayor. Mr. Chang: Okay, I understand. Part of the discussion we had Vice Chair was utilization of our own building and our own facilities so we don't have to go out and rent. I did see a space I think it is very functional. My concern is I agree that we should be out on the same campus, if you will but also being familiar with the Historic Society I do not think that the space would be large enough I don't think. For what your departmental needs would be but since we mentioned that I figured I would throw that out. Chair Furfaro: But I want to make sure you also understand. Not only their conference room and the other space that currently houses three people, including reception, and there is the whole back of the building which is space that would be available to them and it means money you have to refurbish that area, we have to carpet it. We have a 2020 lease coming up. So that has to be a part of the discussion and since the liaison for the Auditor's department is the Council? I just think the closer to us the better. That is a whole other discussion. But I think Council Vice Chair's point well taken that we have this space that we own whether it is here or Big Save and right now the space we have them in we have an operating cost associated with that. Mr. Kuali'i. Mr. Kuali`i: Thank you Mr. Chair, thank you Ernie and Lani for the work you do and everyone else in your office and for being here today. I think you did a great presentation and the Chair and others have asked the questions I was concerned about. The only thing I would say... also I glad to see that you answered the question with regards to succession planning and the vacant positions because that is what I would have asked. The only thing I wanted to ask about and I appreciate this report to the citizens that you do and I just wanted to know in painting this financial picture are you working with the Mayor for the Administration, the Chair for the Council, and the CAFR with the Auditor. Mr. Pasion: We have utilized the ... to answer the question Councilmember we have prepared that and we have utilized the CAFR which is basically the source for the citizens report and incorporated some important information about what the County provides in terms of services from the annual report that submitted for the County Charter. Mr. Kuali`i: And is this a format something that is relatively standard done by other Government Agencies for the Citizens? Mr. Pasion: It is a prescribed format by the Association of Government Accountants. Otherwise there is no prescribed format people would do whatever they want. Mr. Kuali'i: I appreciate the showing the graphs about the reality with the estimated value of taxable properties and the real-property tax revenue. The only other thing I thought was maybe missing is that it talks about the expenditures as far as debt service but it does not say what the County's debt is. And I think anyone running a responsible household we know that we got to get our debt down and pay less on interest so it is good to just be aware of it so that when we are thinking about everything in general about revenue and expense we also recognize that we not starting from a zero point we starting from...which is legitimate to have that because it is April 5, 2012 Auditor p.12 investing in the bonds and all that but maybe as a basic matter of information the citizens would want to know that as well. Mr. Pasion: Thank you very much for that. It was a very good suggestion. Mr. Kuali`i: Thank you. Chair Furfaro: Yes, Ernie I think that is an excellent point because when I did the summery after our last Bond Counsel I indicated that we had a hundred and twenty-one million dollars of debt and that debt was reduced by the four million seven debt service that we had budgeted this year so we probably going to ... in the year a hundred and eighteen million in debt but I think that was an excellent point that Mr. Kuali`i bought up maybe for future reports we can have a little piece that reports on the debt. Councilmember Nakamura. Ms. Nakamura: Thank you very much for your report today and for the written strategic summary. I have a question about some of your objectives for this coming year. Previously, I am looking at page 5 and previously you objective number 2 complete performance audits and pre-audits assessments. So previously you said you would do three to five performance audits in the year. Is there any way to quantify your objective for the coming year? Mr. Pasion: We have a lot of, we have some carryovers from this year to the current fiscal year and we also have to look at what is coming in front of us and that is the reason why I do not have my Quarter Work Plan. Will be because it is an ongoing evaluation of what needs to be ... Ms. Nakamura: I think ranges are really good. That is how you presented it last year you had a range of... and I think is there something reasonable that you could present to us? Mr. Pasion: Yes, we are looking at two to four for next year because of all the carry over and we are also we have to look at what needs to looked into when we are presented with request from the Council. I understand talking to Councilmember Rapozo that there will be a resolution I don't know when that will that happen is that there is going to be a resolution on parks maintenance and management something like that so. I received a request from Vice-Chair Yukimura about also looking into the payroll system. I am sending my response to the Vice-Chair per the Charter it has to go through the resolution process. So those are things that we have to look into and that is the reason why I do not have specific or define... Ms. Nakamura: That is okay I am just thinking for ranges. I mean this year you were successful in meeting your goals between two to five audits and you accomplish that. That is what I am looking for are you.... Mr. Pasion: Two to four. Chair Furfaro: I do want to make sure the Members understand we look for your audit plan that supports the budget you gave to us. That is your plan you presented to us. As we go through the year if Councilmembers want to expand that there is two pieces I want to make sure you understand. One you touched on that is done by a Resolution, and the second part is they also need to know that should be followed by a Money Bill because when we agree on your plan for 2012-13 there are certain things that are known that are in your budget for that year. But if we start to add new pieces it starts by Resolution in front of the Council and followed by a Money Bill and I'm going to give the floor back to Councilmember Nakamura. April 5, 2012 Auditor p.13 Mr. Pasion: Thank you very much for that Chair. Ms. Nakamura: Ernie I have a question about your expenses for this year. Where do you expect to end the year, budget wise? Mr. Pasion: Budget wise we are expecting to we have a projected expenses this year $1,558,000. Oh, $1,748,997 I should say is what we are submitting. That is on page 8. Ms. Nakamura: Could you please repeat that again now? Mr. Pasion: On page 8 Councilmember it is a projected expenses for this year would be $1,748,997. Ms. Nakamura: That is actually your budget? Mr. Pasion: That is our projected ... Ms. Nakamura: That is also your expected expense? Mr. Pasion: Yes. Ms. Nakamura: Ok so you plan to hit that? Exactly? Mr. Pasion: We will try. Ms. Nakamura: No, don't try to spend it down if not necessary. I am just wondering if you had an as we go through sometimes the budget is more than the actual, so I was g ' y y... g g g > just wondering looking at...we have three more years left in the fiscal year...months... Mr. Pasion: Yesterday I had submitted a contract amendment on the (inaudible) audits. Because of the delay and the data that was provided to us we asked for an additional $40,000. It hard so... Ms. Nakamura: I was just wondering what your estimate is for the rest of the year. You can come back to us later. Chair Furfaro: We will send that over as a question. Vice-Chair Yukimura. Ms.Yukimura: I want to start by congratulation you. I think we have all been watching in terms of what the office will actually turn into. It was a concept that people voted for and the writing of your reports have been mixed but the results have been useful I think. I am certainly learning the value of the Auditor's Office, and look forward to the upcoming reports because I think it will give us some very valuable information and hopefully as you said it will inspire people to do better. I do not think I have any question except I do think it would be worthwhile to audit our payroll just based on the state discovery that they are losing $2 million from overpayments because of inaccurate payroll system. I don't know it the state does their payroll tracking by hand or manually. We are the only ones? I do not know. Manually in this day and age does not seem like the best way to be accurate and timely. I just see this as a key area of improvement that we need to work on. I am going to ask the Council to consider a resolution and I think all be talking to Finance later on in budget hearings about their plans for automating or bring in a better system. Thank you. April 5, 2012 Auditor p.14 Chair Furfaro: I just want to share with you, I do want to remind you that it would very appropriate for us to have your business plan by June 30th because I do not know what you are going to include in the budget you submitted to us and I want to be fair to the other Members and I think I can make the point where, I was not so personally concerned with the furlough audit. I had enough information myself. I would have voted for a bigger priority on the Solid Waste over time. I do not want to get caught in that Ernie, you need to get something for us this budget supports this business plan for the Auditor Department. And as we go forward we add things and we add the money to do that but we have to have your plan reasonably soon. We really do Ernie, I know you like the flexibility but I in the year for the year we need to know what we are going to get for the budgeted number. Maybe you are thinking it is going to include the two requests that came from Rapozo and Yukimura? I don't know. But quite frankly I do not want to get into a challenge match with other members if we what something that is not in the plan. I do not need an answer to that I just need to make the comment that we have to have that understanding. I am sure we might ask to do one or two new audits which are not in your budget. Mr. Pasion: Chair, just to let you guys know Councilmembers that like a said a while ago I took an oath to support and defend the Charter and according to the Charter I have to provide for you a plan before the start of the fiscal year and I will do that. The reason why ... Chair Furfaro: Ernie, I am actually protecting you because I do not want individual Members to lobby you for what they want in the plan and at the same time I want to make sure that it becomes your plan, your plan first. Mr. Pasion: I have some other audits in consideration. I am looking at Charter Compliance audit, and Hiring Practices Audit. Those kinds of things and Parks Management (inaudible) Security Audit, there is a lot of stuff we have to consider before we submit anything Chair Furfaro: You and I sound like we are on the same page. You understand that before we start the year, we need to have your plan and if we have new items not in there it is by resolution and by additional money. And I am going to give the floor to Mr. Rapozo, and then back to you Vice-Chair Yukimura. Mr. Rapozo: I do want to just say that when I did approach Mr. Pasion about the I requested or am interested in a audit of the Parks Equipment and Manning Staffing Levels and his advise was to do it through a resolution and I can appreciate that. And I can appreciate just what you have read off of your potential audits going forward I am actually really, really pleased. I also agree with Councilmember Yukimura that having heard what we have heard regarding the way payroll is done. Let us not forget that our Auditors picked several a discrepancies which was a major discrepancy several discrepancies about vacation time start of the year, didn't match with the vacation time at the end of the prior year. What is even more troubling the majority those incident that was found in the random audit was in Personnel so that is troubling. I tell you right now on the record I will withdraw my request for the resolution for the Park and I definitely support the resolution for the Payroll audits. Because I believe as Mr. Kuali`i said earlier today the vacant positions that accurate information is vital for us to go through. Likewise we got to make sure at the end of the year we are paying the right amount of money. I appreciate that Mr. Pasion and we will work that on our end. I guess though Mr. Chair because I really wasn't aware or even thought about the money bill that accompany that audit because ... I mean that resolution because it is true. His budget... Chair Furfaro: His budget will support his budget strategies for audit. Anything new to that would be totally unfair for us to ask him to do it with in... April 5, 2012 Auditor p.15 Mr. Rapozo: So that would mean we would need to identify some funds in our budget for maybe two or three audits for the year. I got it thank you. Chair Furfaro: I want to let the Vice-Chair have a ...she had her hand up for a question and Ernie and we are coming up on your time so I am going to give you the floor. Ms.Yukimura: Just real quick. I think we really want to acknowledge the autonomy of the County Auditor and at the same time I am think that a discussion with the Council could be useful to you in terms of knowing what our priorities and concerns are and still you are going to be independently determining your own work plan but still we are policy makers who see a lot because of the budget process and so forth and may have some issues we want to share with you. Mr. Pasion: Thank you very much Vice-Chair for challenging the independence of my office. Ms.Yukimura: I think we see that and I just wanted to acknowledge and make that clear. Mr. Pasion: Thank you. Chair Furfaro: I think we pretty much summed up the area that you financial picture here. I do want to make note that maybe the next time we meet we can reconfirm that rental office space number needs to be adjusted. I put a note in my book. I again am very satisfied with the report you gave us. Had a chance to revisit some procedures but Councilmember Nakamura has one or two more questions for you then we are going to call it a day with the Audit Department. Go ahead. Ms. Nakamura: Just a question on your overtime line item for a staff of 5 of you? Your line item is 10 thousand dollars? I was just wondering what...why that amount? Mr. Pasion: It is a projection based on the anticipated load and the determination for us to meet our committed audits to submit to the people and the Council. Ms. Nakamura: And I was just wondering, what was your actual amount of overtime for this year? Mr. Pasion: At this point I don't know but let me get back to you. I will get back to you on that one. Ms. Nakamura: Under consultant services your line item is $675,000, and I know a big chunk of that is for the CAFR. Mr. Pasion: Yes, $215 of that is for the CAFR. Ms. Nakamura: $250? Mr. Pasion: $215. Ms. Nakamura: $215, so then over $400,000 then is left for other audits? Mr. Pasion: That is correct. April 5, 2012 Auditor p.16 Ms. Nakamura: Do you expect to ... and can...do you have your actual for 2000 for this fiscal year? How much you have actually spent in that line item? Mr. Pasion: We will provide you with that information. Ms. Nakamura: Okay, thank you. Chair Furfaro: So Ernie, you will provide us that information through the period that we are comparing, which is through period eight through February. Would you have estimates of your contracts? Mr. Pasion: I will sit down with my team and we will go over the status of the audits that they are working on and what kind of expense that we have consider and we will put together the numbers. Chair Furfaro: Because I explained this earlier. Although it came over to us on March 15 it actually reflected the February period with a two weeks of payroll laps, so we are not comparing a full month here. Okay, so we will send it over as a question. If we have no more...go ahead Mr. Rapozo. Mr. Rapozo: It is more of a request. You know the way Finance came across with their CIP Report where it shows the, what's been spent, what's encumbered, if that possible in the report so we know what is encumbered, restricted, maybe not spent yet but something you anticipate just so we can get a better idea of what your expenditures are for this year so we can have a comparison. Chair Furfaro: That is what I referenced. The contracts that were initiated, but we have not seen all the associated bills. Mr. Pasion: Okay, we will provide that information. Chair Furfaro: One more question from Vice-Chair Yukimura. Ms.Yukimura: Just a respects the request for information, are we asking for every line item like that? Chair Furfaro: No,just on the contract? Ms.Yukimura: On the contracts? The two date expenditures and for over time as well. Chair Furfaro: Are we fine here? 1 Ms.Yukimura: Yes. Chair Furfaro: Okay, to the Audit Team thank you very much. Watch for our questions. Ernie, we are asking for a 48 hour turnaround. That means we are looking for the turnaround by the end of business day on Tuesday. We are going to take a ten minute recess here for the camera crew. So we are in recess until Planning comes over. There being no objections, the meeting was in recess at 2:54 p.m. April 5, 2012 Planning Department p.1 The Departmental Budget Reviews reconvened at 3:24 p.m., and proceeded as follows: Chair Furfaro: Thank you very much we are about five minutes ahead of our schedule and before we get started with Planning Mike, welcome. If you would like to introduce who you have here with you today from your department it would be appreciated and then I will turn the floor over to you. MICHAEL DAHILIG: Thank you Mr. Chair, I am here with Myles Hiranaka who is a Planner 7 and our go-to guy for anything relating to budget ... Chair Furfaro: Go-to guy. Mr. Dahilig That is the go-to guy. We also have Kaaina Hull, who is one of my Planners as well, and we have Leila Villon, who is the person who makes everything happen for the physical side, so they are here as support this afternoon. Mr. Chair, Members of the Council, again thank you for having me. For the record Mike Dahilig, Director of Planning, and I am here to present on behalf of my Department our 2013 budget request. We provided to the Council a set of PowerPoint slides just to kind of go over what is more so in the formal write up report for the Council's entertainment and just to give you an outline of what I'll be talking about this afternoon. Just to briefly go over again what is our mission for the Department and then go over what we have done so far in this fiscal year to date. As you remember from our presentation last fiscal year there was a set of goals that we broke down into sub goals and I'll give you an update on where we are with those. Going into the next fiscal year, I'll discuss some of the challenges that we are talking about in the report and then I'll lay out for you what we see as our benchmarks for the next fiscal year for the Department. Finally I'll just go over the budget request that we have as part of the overall Administration request. So just to reiterate and I don't like to read slides usually, but just (inaudible)for the presentation this afternoon. The County of Kaua`i, Department of Planning aims to provide through the regulation of land use in an open manner, a long range vision for physical, social, and cultural growth enhancement, and preservation of our unique past and present rural lifestyle and values for future generations. This is at the core of what our Department's mission is about. During this past fiscal year, what we have been able to do so far...one of the hallmark achievements of our Department was being able to push through Ordinance 912 with your help and it was signed into law this past October. We are in the process of actually processing applications for the TAU ordinance and we have gotten a lot of hits so far. I would like to thank Ian Jung from the County Attorney's Office for helping with crafting the legislation, as well as Dee Crowell, who has been our point man so far in processing. So far we have processed one approval to date and we have another six I believe pending before the Department for review. We have been in the midst of implementing Ordinance 904, and just a refresher, the Ordinance 904 has been the Ag TVR legislation that the Council passed about a year and a half ago and this related to I guess the special permit process we are near completion of the special permit processing bubble that was created by the legislation. We do have a few that are pending still with the hearings officer as a consequence of what I guess is contested case hearings. We are in the midst right now of launching General Plan technical studies. We have three of them as we have mentioned to the Council last year. One is Social Economics Study another one is relating to Land Use Build Out, and the third one is relating to Infrastructure Build Out. We are coming before the Council next week Wednesday for a grant request for a fourth technical study relating to Coastal Hazards and that would be before you (inaudible) I guess next week. April 5, 2012 Planning Department'p.2 We also took a look at implementing the new SMA rules. The Governor, during the last legislative session sign into law changes to Act 205, sorry, Chapter 205A and our Commission as well as Department help...we were the first County in the State to implement the new law as signed into effect by Governor Abercrombie. We have also taken a look at revamping the CIP process in terms of consistency with the General Plan in accordance with the Charter. It is still a work in progress but we were able to at least roll out something this year that we believe was more in line with what the Charter's intent was, which was analyzing consistency and looking at how all these different projects flow with each other. The Council also passed Ordinance 919 relating to civil fines. We did amend the Commission's rules this past year to essentially implement the Chapter 91 requirement regarding civil fines and we are actively right now looking at opportunities for a more advanced enforcement. One of the other hallmark achievement for our department was the Hawai`i Congress of Planning Officials Conference that was held in September of last year. I would again like to give kudos to Lea Ka`iaokamali`e and Marie Williams, as well as Nani Sadora, and other people in my department who helped make this happen. We had over 200 people come and attend and the co-sponsorship with EPA Hawai`i was a good success and it really put a good face ... and really represented our County well. Finally we made a lot of progress in filling positions as you look at our departmental budget. In fact on Monday we welcomed three new hires to our department and so we are getting up there, we are getting up to speed. We have gotten into overflow space in the Pi`ikoi Building and so we have been in a big growth spurt and we are welcome to have those three new people onboard. As you remember from the last fiscal year we had four goals for this year. One was restoring staff levels because the department at that time I believe had seven or eight vacancies including grant vacancies. We also wanted to take a look at innovating customer service intake and enforcement. Again how can we do this better, how can we track this better because at the hallmark of the intake, the data that has derived from it essentially allows us to do better planning. We also wanted to improve working conditions including training, bring our staff up to speed with respect to the newest thought and theories with planning, as well as giving our enforcement officers a lot more depth of respect to how they do their work. Finally was a focus effort on completing long range initiatives and again as I mentioned last year, long range planning is becoming more and more an increasing demand on our department because of the desire to place make. Everybody in our community wants to live in a healthy, livable, beautiful place and place making seems to be at the forefront demand for our department in terms of that type of product. As we go into the next fiscal year, we have a set of six challenges that we are looking at. One is office space. We are thankful that the Administration was able to provide us an overflow space in the Pi`ikoi Building but if we were to be fully staffed we would not be...actually that space did not let us any additional space. If we did need to have...as we hire more staff on we are going to have to find more places to put them. Again we are looking staffing trying to again get to that full level of staffing because when we are at full level we are at that peak performance. Another one I just want to put on the Councilmembers' radar screen is this maintenance of CZM grant match and what this is, is the department receives almost three hundred thousand dollars a year from NOAA through the State Office of Planning and so we are sub grant from them and what we are required to do is match by effort dollar for dollar the three hundred thousand. Due to the downturn in the economy we have been in a position where we have to be more proactive in producing coastal related work for the County including direct types of match for instance the UH Sea Grant agent that we do have that is direct funded we count that as part of our match but because we do not have the level of SMA and shoreline applications that we did in the past, it becomes more incumbent of the department to try to deploy resources in that matter and create work. It is a bit of a challenge. We are making sure we maintain full funding for this. We are April 5, 2012 Planning Department p.3 transitioning to e-filing and I am sure as the Council will hear over the next couple weeks that the Building Division is going to be coming online soon with their e-filing hardware and software, and as a direct plug-in to the plan review process we will be dovetailing with them too. We are getting wrapped up to train our plan reviewers to be able to use the new e-filing protocol. Also we have numerous long-range studies. If we do follow through with our procurement this year then we should be on track to ... the long-range Planning Division will actually have nine active projects during the upcoming fiscal year. That is something we do need to look at how to deploy staff resources towards as well as keep on top in order to ensure timely progression of these plans. Finally, as I mention last year we can always improve on enforcement. Enforcement has always been one of the largest criticisms of our department and we are acutely aware of that and it is something that with the simple fine authority we are looking at trying to be a bit more robust in our enforcement efforts. So if we take these six challenges we essentially are looking at four sets of goals for the upcoming fiscal year as we did last year we came out with four goals. This year we are looking at four goals. One is and you will recognize this because this is similar, is innovative customer service in take and digital records management. The next one is continue progress on long- ' range plans and initiatives. The third one is, with respect to enforcement capacity building, and the forth one is communicate opportunities for regulatory paradigm shifts. So this is what we hope to focus on over the next year and let me first go into the first one...let me just show this graph for you so you can see the comparison between last year's goals and this year's goals for this upcoming fiscal year. As you look at the first goal which is innovating customer service intake and digital records management what we want to do is sure we work with DPW and IT I continue implementation of the plan review initiative. We worked with Eric Kanoa and he has been great in terms of briefing us on what is coming over the horizon but what is part of phase two of the plan is to create Planning Department tailored plug in interface for our departmental needs, so right now it is being build around Building Division but we want to work with him to have our own interface and our own protocols set through this new unified system. The third on is deployment, we do have in the budget request a dollar funded position that is being half restored for this upcoming fiscal year and what we would like to do with that position is to have an analyst digitize and geo code the intake record into the new system. I know one of theefrequent concerns of the Council have been with the respect to the ability to GIS data mind and where we are with that. We think by having someone at the intake process being able to really geo-code and digitize the information that does come in, that will help aid in the process of data mining. Our second goal again was in respect to continue progress and long- range planning initiatives. The first one is and this has been a persistent concern for the department to ensure that these Kaua`i Development Plan does get completed and so we are aiming at the end of fall this year to try to have that at least finalized draft to the Commission and the Council. We also have to look at the CZO update phase two, we do have phase one before the Council, I'm sure that will come about as needed and when phase two does come through we need to be persistent in making sure we responsive to having that done by the latter half of 2012. We also want to insure steady progress with the Tenneco Advisory Committee for the general plan and ensure that the three plans we are looking at are delivered by next summer at least in a draft form. The TAC has already met we have a cross section of regulatory agencies as well as community members as part of that TAC and so that is something we are going to be working with them to at least get to a draft form by next summer. We are also looking at launching the CAC portions of the Lihu`e and the Koloa-Po`ipu-Kalaheo plans. As you know both of these plans did hit a speed bump and they were reauthorized in last year's budget. We in contracting stage right now and so we hope to have those community advisory Council starting to meet by next year. We want to complete the final draft of the IAL study and forward the recommendations to the Commission and the Council by the end of 2012. We are that close, but we are at the very last part which is the (inaudible) portion April 5, 2012 Planning Department p.4 that we still kind of mining through. Then we want to launch the County Wide Impact Fee Study. This is something that has been asked for in the past. We have already selected a consultant, the contract is with the Purchasing Office, so that is where we are with that and so we want to ensure that that gets watched appropriately. Our third goal was in respect to enforcing capacity building. We want to get undercover investigations of Trans Vacation Rental not holding certificates. We do have a budget line item for a request to have under investigation support and what we would like to do is try to expand how we are going about enforcing. Right now traditionally complaint based enforcement department and by having this type of support with people that know how to conduct undercover investigations we think is appropriate given the policy of the terminations by this body as well the administration. We expect to TVR being a priority for enforcement for the island. We also want to look at the increasing number of with held TVR renewal certificates for land use compliance investigation. We took a bite of ten this year to try to get up to speed in terms of how do we with hold, how do we notify, how do we monitor seize and assist, and these types of things, so we want to increase that number as well. We also want to target persistent violators as candidates for the application of the new civil file registration. Our hope is that if we are able to start bring people in on fines that the message will be out that the department is serious about land use violations and by having fines applied to persistent violators not...we have this spectrum of education compliance where the people are pretty much are flipping the bird to the County who want to hold them accountable and let pp g y them know that violations will not be tolerated. We want to target test cases or examples for that message to get out. Finally further training for investigators on search protocol and property evidence gathering. We are highly aware that our work is especially in recent years. Our work needs to be at a level equivalent to what a police officer would write as part of their reports. That is something we still need to get up, it is a weakness that we need to continue to put pressure on. We have great staff but by giving them the tools that they need and the training that they need hopefully we can get them to that level in case we are called to court. The last goal we had was communicating opportunities for regulatory paradigm shifts. We hope and essentially what that means is there are new theories in Planning that we would like to bring to Kaua`i and hopefully have Kaua`i be on the cutting edge of new planning theory with respect to how we interact with our land and how we use our land. So what we hope is that by having the transportation planner in place that would at least become the conduit between the Department of Public Works and Planning. We have a search committee already formed once we get the list from the Personnel Department. Half of the members are from Public Works, half of the members are from our department and so in concert with Larry Dill, and he has been great to partner on this position we were able to craft a job description that really does meet the needs of both departments, and hopefully this person will be the bridge that helps further a lot of the Complete Streets initiatives that by resolution the Council has said they would like to see more implementation of. We would also like to, as part of spreading the word, hold more workshops with stakeholders and introduce the Smart Growth Complete Streets and Form-Based Code concepts and again gauge the input and applicability that would be appropriate to the island. Again, everything is context based. Some things work for the island, some things may not, but I think by first getting people educated as to what the theories are that are out there, we can gauge what works for us, what does not work for us, and how can we tailor it for our needs. And that leads into continued capacity building for our staff in Planning. Again, it is an ever changing discipline, I am sure as many of you know, and so we need to be, again, consistently trained on that. And then finally we want to introduce potential policy guideposts for Form Based Code implementation through the General Plan. The General Plan is still years off, but what we want to April 5, 2012 Planning Department p.5 do is already start looking at Form-Based Code as a means of the preferred infrastructure for regulatory implementation once the General Plan is eventually adopted over the horizon. And so we want to start ramping up and getting those guideposts in place so that we understand that once we start the General Plan we already have an idea of what we want from a Form Based Code standpoint. So given those needs and those goals, this is our budget request. Essentially in concert with the rest of the other agencies, you will see that we have an increase of 1.4 for the dollar-funded position that is there, as well as a full funding of the Transportation Planner that was given by the Council last year. We do have a 5% increase in benefits, again, that is a mandatory requirement. You will notice that our departmental operations is a 63% cut. I want to give a caveat that a lot of that comes as a consequence of $300,000.00 that is not included in this year's budget but was included in last year's budget to handle contested case hearings. We do not need it this year. In fact we were very successful in being able to not have that contested case hearing budget eaten up as much as we thought it was going to be. So there actually may be money that gets returned to the General Fund once all of this is done with and through. But because of also the mandatory lapse restrictions, there is essentially the bottom line, which is just looking numerically at 63% cut in our departmental operations for next year. So, just kind of as the highlights of what we are asking for, again, total bottom line our budget is an 8.9% decrease off of last year's budget. We did reduce the contested case hearing support from two; $50,000; however, we have had to further restrict that due to the 25% lapse policy. We did request $25,000.00 for TVR undercover investigations, but then again due to the last policy we have had to restrict that down to a smaller amount. We do have a half-year funding for the Records Management Analyst, as well as full funding for the Transportation Planner, as I did mention earlier. And then there are minor operational increases with respect to getting furniture for the Planner VI that we are bringing on board, as well as duplication cost. If you take a look at just pictorially, our operating budget this year, about 10% goes to departmental and commission operations, and the other 90% goes to salaries, benefits, etcetera. And then just as a comparison through a bar chart, this is essentially when you look at the blue bars is last year's funding from the Council, and the red bars is what we are proposing as part of the Administration budget this year. So with that, Councilmembers, thank you for your time and Mr. Chair, I am open to any questions. Chair Furfaro: Thank you very much, Mike. I just want to ask a couple opening comments. First of all, it certainly sounds like from this presentation we have a lot of strategic thinking going on in your department, which I want you to know first of all is very much appreciated. It is very rewarding to see a fresh approach to this. So thank you very much and I think I speak for the entire Council when I say that. A couple things that I just want to point out on the radar screen is when we are ready to move forward with the enforcement programs, I want you to think in terms of even if we can get some kokua and doubling up some of these inspections for the first 90 days...I think you said it in your presentation, we want to be very visible about these issues with illegal programs, and we need to be very visible in the County, and we need to be sending a message that there has been much fair warning given and so those illegal operations need to know that. I think we are going to want to be very serious about it. I do not want to get into a lot of discussion about the next item, but Important Ag Land Studies we are hoping we are going to see something in November. Now, there is a lot of moving parts about what that plan looks like and so forth, which subsequently can be handled in other planning conferences. This piece is about the budget practice, and to me in my morning presentation April 5, 2012 Planning Department p.6 earlier today, one of the things I put on the radar screen is the financial impact that might be given as credits to those people wishing to dedicate these percentages of Important Ag Land. It also potentially has financial impact on the County's earning. And so I would like to let you know that I think we are very cognizant in this revenue cycle that there may be some impact there. Also, I want to say for the contested case hearings, I know when we talked last year, we did not know if we were going to be hiring a hearings officer or if we were going to take it on a case by case, but $300,000 of your savings is in that area. Are we close to the completion of hearing all these TVR applicants and are we real close, like 90% done? Mr. Dahilig: It is hard to say whether they are done or not, but they are actually in-process right now. And where they go with respect to motions and these types of things, all I can say at this point is every case is active. The County Attorney's Office is taking the lead on defending the County. Of the contested case hearing batch, Mr. Chair, all except one is an appeal from a Commission decision. The rest have been in respect to actually departmental denial of applications. We are vigorously trying to defend the department's position in administratively denying Ag TVR applications and so hopefully that will get wrapped up but right now they are in the process of going through their motions and hearing and we did hire Richard Nakamura from Honolulu as our Hearings Officer and so he's handling them all. Chair Furfaro: There is another part to that is dealing with this consideration that we have asked from the Tax Department about a category for those that actually end up being bona fide. We need to put them in the appropriate commercial tax category and we can't leave that revenue just laying there. For us it is a new category commercial potentially has the value of found revenue for us and I heard once that a Tyrannosaurus Rex today would be compared with a bird and when you said that we had applicants that kind of just, ah they are not going to do anything about it. I want us to turn back into the Tyrannosaurus Rex and really understand the mission here about clamping down on these. Once we went through this procedure. Council Vice- Chair Yukimura and I were on the original task force in 2002 that tried to come to an understanding of where we drew the line and how did we get to this point with control and managing no further growth. So we are really close to this egg hatching and I hope you were talking about that kind of bird because the Tyrannosaurus Rex comes out of an egg as well. Mr. Dahilig: I saw at Bishop Museum, they actually have the T- Rex with the feathers now. We will look at that. Chair Furfaro: So we have some very nice parallels to draw from. On that note I am going to let Mr. Rapozo have the floor, and I will eventually have to excuse myself from the meeting, but Mr. Rapozo will run it for the rest of the time that I have to leave. Thank you very much for these bullet points scenarios, very well done, Mr. Rapozo: Thank you Mr. Chair, Mike, thank you for being here. You have the actual budget? Mr. Dahilig: Yes I do. Mr. Rapozo: Try looking at what is referenced on page 69 on the top right. Under other services, you know the original budget $355 adjusted budget; $358 and then year to day you already spent this year $330,000, and then the Mayor's review is $26,029. Is that accurate? Mr. Dahilig: Yes it is, Councilmember. The $330 somewhat thousand is again the encumbrance of the hearings officer contracts from last year and so the April 5, 2012 • Planning Department p.7 savings we hope to realize once all these hearings officer's hearings are done with. When the contract is done that will go back, right now the full amount is (inaudible). Mr. Rapozo: I am not questioning that number. I am questioning the $26,000 because if you look at the text right below that, your text is showing for other services is; $55,500. There is a discrepancy between the $26,029 and the $55,500. Mr. Dahilig: We can attribute the reduction to and from the Mayor's review is that when we gave our budget proposal we would like a total of$55,500 for other services but due to the 25%laps restriction we had to figure out areas for reductions in cost and so as a consequence we have had to pull out $26,029 out of the other services and you also notice and so that was reducing the contested... Mr. Rapozo: Maybe Mike, I'm not making myself clear. Typically that number, the text defines or describes the total of the expenditure line, so if you have $26,029 for your other services line, your text should be $26,029 not $55,500. That is my question. That is not right, something is wrong. I'm not sure if it's a, I cannot imagine the software not picking that up. I would hate to have to go through each page of this budget and look at the text because it happens in the next one. You know your consultant services. Mr. Dahilig: Yes, we were aware of that in terms of when the budget did come out that that also reflects the discrepancy in the amount and ... Mr. Rapozo: And that is a serious discrepancy. Mr. Dahilig: Based on the bottom line as far as we can understand based on the bottom line requirement for the horizontal cut of 25% of our average laps over the past two years we've had to figure out areas to actually... Mr. Rapozo: No, Mike, I don't think you understanding me. It could be a finance question and not you. I don't know how these things work you punch in your budget. What I am saying is your consultant services budget right now as your Mayor has submitted is $104,318. Mr. Dahilig: That is correct. Mr. Rapozo: That number should be identical to the text. Mr. Dahilig: It should be. Mr. Rapozo: So that numbers have to match. Look at any budget ... this $104 has to match ... you cannot purchase; $124,318 worth of services for a $104,000 is what I am trying to say. Mr. Dahilig: I understand that Councilmember and I ... Mr. Rapozo: I have never seen that before and that is why I am kind of baffled. Is that manually put in? I would assume if you go to line 01801512.32 consultant services and it is $104318 I would assume the system would not let you... Chair Furfaro: Could you yield for Mr. Watanabe, who can explain that particular piece and go ahead you still have the floor Mr. Rapozo but Ricky would you take the floor and respond to Mr. Rapozo. April 5, 2012 Planning Department p.8 RICKY WATANABE: For the record Ricky Watanabe, County Clerk. Just to clarify what happens during budget, the level text in the budget is pretty much what the department had submitted to the Mayor. And what happens is once the Mayor formulates his proposal to the Council, the bottom right column under Mayor's Review column in the case of Councilmember Rapozo's sample $104 thousand that is the number that is actually requested. What should have happened was prior to submitting the Mayor's proposal that level text should have been changed to correspond with the right hand number. So that is what happened. So what happens when the Council goes through decision making and say the Council accepts the 104 thousand proposal, either the Mayor and his modification will change that level text or the Council Staff will catch it and change it appropriately. That is what happened. Chair Furfaro: Ricky, I want to make sure you spend the time with Ernie Barreria, because I do not want it to be in doubt as Mr. Rapozo is pointing out on these carry forwards that each department, whether it is Administration or We as the County Clerk's Office, is it clear on who is making the appropriate adjustment. Mr. Watanabe: Just furthermore Councilmembers, the level text is not included in the calculation. What happens is the level text is manually inputted and it does not calculate to match the right column under the Mayor's proposed request. Mr. Rapozo: I guess for me... Chair Furfaro: You said text, not tax, right? Mr. Rapozo: Text. Chair Furfaro: You know there is a little difference in the dialogue from Waimea to Hanalei (inaudible). Mr. Watanabe: Sorry about that. Chair Furfaro: You meant the text, not the tax. Mr. Watanabe: The level text. Mr. Rapozo: Thank you for the explanation. I guess the problem I am having is I can see what he has just defined in his plan. What he wants to do cannot be done with the budget that was submitted by the Mayor. Mr. Watanabe: So the question is correct. The question to the Department should be "You have been appropriate, through the Mayor's proposal, $104,000. Your justification in the level text represents $124,000. What are you going to do?" Mr. Rapozo: And this leads to my final question. I realize that...I do not want to take up a lot of time, but... Chair Furfaro: You have the floor. Mr. Rapozo: This is what the concern is and it ties right into my question. Your Mayor has submitted a $104,318 for consultant services. You have requested $124,318, which is $20,000 more. So that means you have to cut $20,000 someplace. You are not going to cut the Sea Grant position because that is for a position. That means you are going to cut April 5, 2012 Planning Department p.9 $20,000 from the Investigative Services, which means you are going to have $5,000, but you told us you have $25,000. Mr. Dahilig: We have $25,000, but it is restricted based on the 25% of the last... Mr. Rapozo: Well, you are going to have to take $20,000 out of there someplace and that is the confusion I have because typically when we look at the budget, the Mayor's review number, and you go straight to the text, it always is the same. This one does not. So I am thinking we have to remove $20,000 and where is it going to come from, and I do not want to have to go through your budget saying, okay, Mike, tell me which one now. The other one is even worse because you have $55,000 and that is for your contested case and all, but you are only being allowed $26,000, so you are almost $30,000 you have to cut out of there. Where are we going to take that? Is it going to be out of the contested case? I do not want to take $30,000 out of the contested case because what is going to happen is you are going to be here next year asking for a money bill to go hire a hearings officer, and I think that needs to be fixed. Again, that if the first time I have ever seen it that way. That leads me to the next question of the enforcement because I do not see any increase in enforcement officers or inspectors. I see the same and I know we provided additional positions for enforcement in the past, I mean pre-Dahilig. And you will make the record known that it was not you that got arrested in Honolulu. Let us just make that quite clear today. Chair Furfaro: We want to check your tattoos, huh? Mr. Rapozo: But I appreciate...the Chair clearly articulated what I believe is this Council's position that we need to aggressively enforce, and I understand it is complaint driven, Mike, but I have submitted some complaints and the resources are just...you folks are overtaxed as it is. Mr. Dahilig: Yes. Mr. Rapozo: Just with your normal job. So I do not feel really satisfied with the level of enforcement at this point. We have a lot more enforceable actions if we are going to go aggressively. How do you plan on doing it with the same enforcement staff? Chair Furfaro: Mike, before you answer that, five minutes ago they told me we need a tape change. So when we come back from the tape change, answer Mr. Rapozo's question. Mr. Rapozo, you will still have the floor when we come back. Mr. Rapozo: Thank you, sir. Chair Furfaro: And let us make it a 10-minute break, please. There being no objections, the meeting was recessed at 4:01 p.m. The meeting was called back to order at 4:16 p.m., and proceeded as follows: Chair Furfaro: From the Mayor's Budget Committee, before the end of the day, he is going to send over the report that reflects the lapse that Wally had talked to us about, that 25% Summary. Am I correct in your acknowledging? And we will be able to get it to all the members. And then again, I am going to step out around 4:30 p.m. and turn the meeting over to Mel, but Mel currently still has the floor. You have the floor. April 5, 2012 Planning Department p.10 Mr. Rapozo: Thank you and I did have a chance to speak to the Planning Director on the break. He did show me his documentation. So he did make the necessary adjustments. It just never got transposed to the budget. So thank you, Mike, and we will make sure we try to fix that. The other question as it pertains to the question that we left off with was the enforcement officers and that you have currently four planning inspectors. I am assuming some of them have different functions within your office in addition to doing their general planning inspections for plans and so forth. My concern as I again, I will restate I believe is the concern of this body, is the enforcement, especially with the newly passed TVR bills. What I will call the blatant violation of these laws and the fact is it is like speeding in an area that the people know that there are no cops around, up in the mountains. They are going to do it because they already know that we do not have the capacity to enforce. I realize how difficult it is for department heads to sit up there and ask, but I am going to ask you because I think we can probably get the support on this Council, as we see the increase in TVR permits and non-conforming use certificates, and as we see the rising amount of violators, my suggestion is that we somehow provide you with some resources where you could, when you need to, secure the services of a contract investigator. I do not know what that number is, but I would assume somewhere around...I will not even speculate, but somehow where we can get contract employees in for an 89-day period. They can go out and address the blatant violations that we know of right now and I know we all do, we just don't have the resources to go out and get them. When you start prioritizing the function of your department, really someone without a sign hanging at their TVR really is not that important, but to many citizens, to myself it is. I am contemplating introducing some kind of proposal to this body as we go through this budget to allow you that flexibility with some resources so you can go out and hire one or two contractor people for three months at a time to address the overload and to specifically to target the TVR bills that have passed. Is that something that you can work into? Mr. Dahilig: It was something that in crafting the priorities that we had this year and knowing the deficiency that was part of what you were describing as our thought process as well with the request for TVR investigation services. We did not have the exact deploy method in terms of how to use the fuzzel. We knew that we needed to supplement at least in the short term and in some means of beefing up our TVR enforcement and that was our I guess request in the budget for those types of services. We did toss around the idea of hiring retired Police Officers. We also looked at hiring contract investigators or even looked at partnering with KPD themselves and using this as a means of taking care of overtime work. There are a number of options on the table but we are acutely aware that we need to have additional support in that area and that was the heart of our original budget proposal for investigation services. Mr. Rapozo: Okay. And that is good to hear. We will definitely see if we can try to get something in there. The nice thing about contract is you know there are no benefits, there is no additional cost, there is no long term impact. You use it when you need it. Try to resolve some of these flagrant violations and then hopefully people realize once enforcement is in action I think people will tend to comply and I think we can really get to a really good positive end with a very low cost if you look at even if you went on a one 89-day contract even if it is two investigators. The cost to the County would be minimal. Thank you. Thank you, Mr. Chair. Chair Furfaro: Mr. Chang. Mr. Chang: Thank you. First of all, I would really want to commend you all for this wonderful presentation. It was very, very informative. I guess I am going to start off by piggybacking and tell Councilmember Rapozo that is a great idea on a contractual basis because every part of this presentation that...I should say the part that interests me the most April 5, 2012 Planning Department p.11 is the enforcement. I want to go back to my first term way back when, when we had to deal with these illegal transient vacation rentals and there was a very contentious bill on the floor that there was a lot of pressure. I think a lot of people did not realize why they were voting to pass a bill. But the fact of the matter is we voted to pass the bill, I did along with several other Councilmembers, so this discussion right now can happen. And now it is very important for myself and for the rest of the community to realize the reason that the bill was passed is we can now get out there and enforce it. What I would like to say, which is what I always said, we have a bunch of new sheriffs in town and I look back at that time. Mr. Dahilig, you were one of our deputy attorneys, and to see you as being the driving force back then, one of them, to now be in charge of the Planning Department, I am thrilled because I want these violators to understand that maybe in the old days you get a slap on the wrist, fix a couple of things, you are fine, you are good. I want to see people being fined. I want people getting needing to be fined and it is strict, it is clear, enforcement is going to happen. And a lot of the general public says, oh, I know these people that are operating someplace illegal here or someplace there, but I do not want to squeal; that is not my style or what have you. But I think that should be encouraged because we need to show the people that we mean business and the good old days...it is like the Chair said earlier, it is not business as usual. It is like I made reference, there is a bunch of new sheriffs in town with a lot of responsibilities and serious responsibilities. So I am glad that we are coming to this point because way back when it may not have been understood, it might not have been popular as far as the decision was made, but I am happy to see right now. I am going to support anything to do with enforcement so we can get this under control. So I just want to thank you for your budget presentation. I will be short, but that is a big message that I appreciate that we are going to go out there and get them. No scared them, go get them. Chair Furfaro: I am going to go back to Mr. Rapozo here because I am about two minutes before leaving, and then I am going to ask him to run the rest of the meeting. Mr. Rapozo, do you have any questions? Mr. Rapozo: No, I am actually fine and I will definitely yield my time to the rest of the Council after this point. Chair Furfaro: Okay, Mike, I am going to leave. There is no work on the Kalihiwai Bridge tonight and I am going to head home. But before I do, to everyone and to the Members here, I want to wish everybody a very happy Easter this weekend, and I want to make note we will start up 9 o'clock on Monday. Monday we have Civil Defense, we have Fire, we have Humane Society, we start at 9. Mike, I want to thank you for y> y your presentation, but I am going to turn the meeting over to the Vice Chair of the Committee of the Whole and let him finish with the other members. So members, Happy Easter, and I am going to depart for Hanalei. Mr. Rapozo: Thank you, sir, safe travels. Councilmember Nakamura, were you done? Mr. Chang are you done? Council Chair Furfaro was excused from the meeting at 4:27 p.m. Mr. Chang: If everybody else is done, I am done also. Mr. Rapozo: Well, then with no further business, we are...I do want to say that I want to finish Planning this evening and we are scheduled for 6 o'clock. We can actually extend to 6:30 p.m. if we have to because I do want to...we will not go beyond 6:30 p.m. because that is the dinner break, and we are going to end it. But I just want to make sure as we go around the table, keep in mind that we want to get finished with Planning if possible during this session. Planning Chair? Ms. Nakamura: Mike, thank you for your presentation. You have done a lot over the past year and your department should be acknowledged for your good work and April 5, 2012 Planning Department p.12 for your ambitious agenda for this coming year. One of the things that I wanted to do was to just looking back on the previous year on your budget and what your actuals were, there was a discrepancy of$430,000.00. Can you explain that? Mr. Dahilig: Just to clarify, Councilmember, again, $430,000 you said? Ms. Nakamura: $430,000.00 based on the budget versus actual for 2011. Mr. Dahilig: Okay. I am sorry, Councilmember, if you could point me to...a lot of the reduction was the special counsel reduction, again because we are not requesting the $350,000 that we requested last year. So we saw fit that we would only need $50,000 anticipating the level of contested case hearings for the upcoming year, and then the other reductions again were attributed to the lapsed policy and so we have had to take out approximately $100,000 out of the bottom line budget for the department and so we have looked at decreasing contested case hearings support even further as well as previously mentioned, the TVR undercover investigation support. We have done a couple reallocations to try to net some savings that way as well as looking at other minor reductions in supplies and those types of things. Ms. Nakamura: On the Transportation Planner position, has the job been posted? Mr. Dahilig: We did begin the process in October and the job was finally posted in March, this last month. So recruitment is ongoing as we speak. Ms. Nakamura: So, it took you five months from the time you requested the position, it took five months for the posting? Mr. Dahilig: Yes. Ms. Nakamura: How long have you been waiting for the list? Mr. Dahilig: It is an ongoing list, so I guess once we do get a sufficient amount of candidates, and I believe we have communicated we would like at least four that will get a list triggered to the department for review. Ms. Nakamura: So, when do you anticipate, what might be your best guess on when you might hire that position? Mr. Dahilig: To get a body in? Realistically would be in the summer some time given that we are in mid-spring. Ms. Nakamura: So, let us just say July. Thank you. I guess one of my concerns is the operational budget hit that you took because of the lapse and I am concerned about how that is going to affect your operations and your ability to implement this ambitious plan that you have. So I wanted to just take a look at that line item, Departmental Operations. So you are going from $498,000 to $184,000. Mr. Dahilig: That is correct Councilmember. ter. April 5, 2012 Planning Department p.13 Ms. Nakamura: And so, by doing that now you will not be able to...you will not have enough funds to do your contested case hearings transcript Hearings Officers potential mediation expenses? Mr. Dahilig: What it does is it essentially shifts the burden more so to the volunteer commissions. In the event that we do need to trigger contested case hearings, it will have to be handled by the Commission. The concern with Commission handled contested case hearings is procedural because there are motions, all these types of things. If it does come to a situation where you do have a case that is robust legally, as say the Hanalei Boating case, certainly that is something we are going to have to come to the department for. But I think what we were anticipating the funds to be used for ... was that some ... if we do start fining we are subject to Chapter 91 contested case hearing appeals. That would probably need to be handled, as well as your run-of-the-mill Commission permits that do get either Interveners or Appeal because of decisions by the Commission that an applicant, let us say does not like. So we thought $50,000 was an appropriate amount, but again due to the lapse, we have had to reduce that further. Ms. Nakamura: Again, the other line item is the Consultant Services, and where would you be taking in order to meet that gap? Would it be through the TVR investigative services? Mr. Dahilig: Yes, it would be. We would have to reduce it further and we would have to be a little more creative, figure out what we can do with less because right now we did have our UH Sea Grant agent start. In fact she started on Monday. So she is from the California Coast Commission and has quite extensive experience in regulatory coastal work. And so she just started and she is already getting her hands dirty. Because we have a body in there already, all the money is encumbered and so we would have to draw the rest of the lapse requirements out of the TVR investigation services line item. Ms. Nakamura: And that does not accomplish what I think the policy of this group is. So I think that is something we really have to take a close look at to see if we can find these funds elsewhere in the budget so that you can accomplish the goals that you have set that I think we all agree are good goals for the County. The other concern that I had...those are my two questions for now and then we can go around. Mr. Rapozo: Thank p you for the courtesy. Next Councilmember Yukimura. Two questions, there is a new sheriff in town. Ms. Yukimura: I am going to connect them with and. First of all, not a question but a just a excellent report today. Day and night to the reports that I remember years ago from the Planning Director so thank you very much for the work that has been done and for the vision in planning that is looking ahead. About the transportation planner on your slide 9 you talk about working with DPW, and excuse me, no it is on slide 13, use the new transportation as the conduit for communication between DPW and Planning. May I request that you add DOT there. Mr. Dahilig: Certainly. Ms. Yukimura: Because I am very concerned about the connections that are going to be made or that need to be made with the agency that governs a big part of our land transportation system. And then I wondered about the IAL lands because I see the deadline or the target by end of 2012 and far more than incentives, because we know incentives are not going to work. What is the plan for the regulatory revamping for agricultural lands? What ... I mean I cannot imagine another year passing without us at least beginning to address that. ICI April 5, 2012 Planning Department p.14 Mr. Dahilig: Quite frankly we have not congealed those ideas to the point where I can say exactly what, from a regulatory standpoint, we would be putting on the table. We just completed the last Technical Advisory Committee a couple of months ago concerning the actual benchmark number, and I know through previous legislative discussions, we provided at least a glimpse of how the IAL Study shakes out with respect to a spectrum of skills and a spectrum of points. They have settled on a tentative number of 28, and I think what we are looking at is once we deploy that number, how that shake out with respect to percentages of land, what is in and what is out, and then how do we then in turn create the process of regulating what is in and then regulating what is out. We, from a departmental standpoint, are still sitting on the number. We know that 28 is what it seems to be shaking out as, but we are looking at it from a broader context with respect to if we have 28, how much acreage is still in, this is how much acres are out. And so once we get that understanding I think we will really have the wheels turning with respect to what kind of regulatory support or type of regulatory restrictions we would be wanting to push to protect ag land and facilitate more farming. And so that would be my response at this point, Councilmember. Ms.Yukimura: To me it almost does not matter what the number is, it is how are you going to regulate them to protect against diminishment of the value of the Ag land and then how are you going to encourage them to be used for farming and for production of local food. Mr. Dahilig: Right. Ms. Yukimura: And if you do the regulation properly such that developers cannot really develop alternative non-Ag uses on it, I think there could be incentives then for landowners to make the lands available on long-term leases or even for sale because I am watching the...what is the big controversy with the D.H. Horton on Oahu? Mr. Dahilig: The Hoapili Project. Ms. Yukimura: The Hoapili Project? The farmers there are basically saying and boy the pictures in the paper are showing what beautiful Ag land it is. They are saying the availability is not only whether the land is regulated but how long a term do they have on it? Five-year leases do not give any incentive for investment of the kind of infrastructure that is needed for long-term farming. So it is a really complicated issue, but it is very important. It hinges a lot on how we regulate Ag land, and I do not want to wait until we identify it and then what do we do? Let it still all be under our present laws, which have shown to be highly inadequate to protect them? I would like to have some kind of a timetable about when you are going to address this regulatory...I am not asking you to give me the bill... Mr. Dahilig: Yes. Mr. Rapozo: Councilmember Yukimura, I think what we will do is we will put that on the agenda as an agenda item. That is more of a policy issue. It is more of an update on the IAL process versus the budget itself. Ms. Yukimura: I do not want to hear about an update on the IAL process. I want to know how a regulatory schematic is going to be worked in relationship to when the IAL process is finished and then what? How do we regulate those lands? So I just need some timetables basically. And my question is what kind of resources will you need to develop that schematic? This is a budget question. Mr. Rapozo: No, that is a budget question, yes. : , April 5, 2012 Planning Department p.15 Ms. Yukimura: So do you see what I...and thank you. Mr. Dahilig: I see where you are leading us to and it is... Mr. Rapozo: It is like a hint. Mr. Dahilig: It is something that I think off the cuff I would need to bring back to Lea and discuss with her the life beyond just the final product, if that is what I am understanding. And we have the Study and we have those incentives and regulatory schematics that are folded in as part of the recommendations, and I guess what I am hearing, Councilmember, is also you are looking at it from a beyond just the identification and implementation standpoint. But the actual next steps after that standpoint. I do not, off the cuff, have an answer, and maybe I can bring it back to Lea and try to... Ms.Yukimura: Because we had this discussion when Karl Kim presented the IAL to this body about a year ago. Mr. Dahilig: Right. Ms. Yukimura: And I asked Karl, you were in the audience, there is no way we can protect Ag land just by identifying it and using the existing laws. If our goal is protection of Ag land, it is not just identifying, it is a two-part process. I would have preferred that it be a parallel process because I did not see the need to sequence it, but we are where we are. But it is just a big missing gap for me. I mean a big gap, a missing piece, a very critical missing piece. So if you could come back in 48 hours. Mr. Dahilig Forty-eight hours? Mr. Rapozo: Good try, good try. Ms. Yukimura: They are going to send it as a question. Mr. Rapozo: I think that was a question on the actual budget, but I think he can come back in 48 hours if he needs any additional resources. Ms. Yukimura: I want to say, you have had a year. This was signaled and it was signaled five years ago. Mr. Rapozo: But he has been busy, he has been busy. I agree because I believe...and I was under the impression that this IAL Study was going to incorporate all of those in the Study and if not, then I agree we need to start moving. Because when you get that study it says okay that is A, that is B, that is C, that is D, then what because our current regulations do not recognize the IAL Study. So I think that is what the Councilmember is asking is are we prepared when that report comes to turn the switch and say okay, now we have the guideline from IAL, but now our laws are all obsolete because it does not address it, so good question. I think that is something that, Mike, you certainly...I do not think you can get that in 48 hours, but we ask that you do your best. Mr. Dahilig: Certainly. Ms. Yukimura: Thank you. April 5, 2012 Planning Department p.16 Mr. Rapozo: Councilmember Nakamura, you had a... Ms. Nakamura: Just on topic if you do not mind. My understanding is that the scope of the IAL Study includes recommendations on how this fits into the existing planning framework on Kaua`i. And so I think that is going to be the starting point for the discussions. I do not know if it is going to resolve all of the issues, but I think it is going to set a framework for how we need to move forward from there. Mr. Dahilig Just to give you an illustrative example of what we are going through in-house in terms of...it is like a Rubik's Cube when we are trying to implement something like this. One of the things, just for discussion purposes, was the issue of water. A lot of what we heard through the IAL Study is we can identify IAL lands but there is no delivery system for water. And so one of the proposals that we are tossing around is this notion of looking at similar type of legislation that was passed at the legislature which allowed private schools to essentially use the good faith and credit of the State to then have bonds that were issued to construct the school and they would pay the debt service for it. A lot of what you hear from the farmers is that they would like to actually build out their infrastructure for water but would it be possible to propose that the County allow its good faith and credit to be used for smaller farmers to come in and put in their infrastructure and then the farmers would then pay off the debt service. So those are the types of ideas that we are kind of tossing around because it is a Rubik's Cube and once we actually have the lands and we know where we are going to be, we have to look at it from many perspectives, not only just identify the lands like Councilmember Rapozo just said. Mr. Rapozo: Go ahead. Ms.Yukimura: If it is true that they are going to be recommendations, I still need a timetable for how the recommendations are going to turn into ordinances or bills or laws or whatever and I am not getting a sense that it is going to be addressing the regulation of land. Mr. Dahilig: I guess what we will have is we would ... what the study would have is bubbled ideas. You would not see bill and text necessarily but you have the ideas... Ms.Yukimura: So that is what I am talking about. What is the timetable like we had a consultant to do a vacation rental bill and we hired him, we needed money to hire him and then he had a product and then it came up to us. That is what I am looking for. Mr. Dahilig: I guess I would say Councilmember, that the delivery of the report with the recommendations in terms of what to look at regulatorily along with incentives wise would essentially be the launch point to infinity and beyond. With respect to what exactly we want to use for bill or that types of things, we would not be bundling necessarily as part of the report the actual ordinance changes but we would identify sections of the (inaudible). You may want to look at this, you may want to look at that and that is essentially what gets bundled as part of the recommendations with the overall IAL study. Ms.Yukimura: That will be helpful because we could take those and just turn them into bills ourselves. But is that all the Planning Department is going to do or are you planning to introduce some bills yourself? Mr. Dahilig: I would think it would be a shared process because once the IAL study does come out we anticipate there will be a lot of healthy debate over whether things are agreeable, not agreeable, and rather force the envelope and say okay, here is list one April 5, 2012 Planning Department p.17 through five, we are going to introduce a bill here. We need a temperature check and a tenor base on what the recommendations are before we would try to move any kind of legislation on our own. Mr. Rapozo: I would assume that once this IAL study is completed that the Planning Committee Chair I would believe that she would begin the process of some workshops that is going to bring everyone together to discuss this IAL study and I don't know. I guess it is safe to assume that within six to twelve months after the receipt of this IAL study we could pretty much have a pretty good idea of the legislative direction that this County wants to go again sharing collectively between the County Council and Administration. I think six to twelve months is probably a realistic goal to digest what that report will provide. That is not just going to be a ... it's going to be a 1) it's going to be a factual report science driven but it's also going to be a lot of potential disagreement with what is being presented so I think it is going to be a process optimistic that we can get through it within a year with some suggested legislative actions to be taken. I would expect that to be done soon because I think there will be some like you said healthy debate once we receive that report because IAL although we hope it is science driven and there is still going to be some conflict I believe that we (inaudible) the Planning Committee Chair will have her hands full,it will be a fun and enlightening discussion. Mr. Kuali`i, and staff, if you can note the questions from Councilmember Yukimura so we can get that over with a six hour deadline for the Planning Director. Mr. Kuali`i: Aloha, and mahalo Mike and Miles. Thank you for the work that you do and for all of your department. I agree with the Chair when he said that based on your presentation and knowing the work that you guys have been doing for a while now that it is nice to see the great strategic thinking. I appreciated your narrative so much and especially when you placed out the goals and we talked about the completing of the long range planning initiative and the HCP Planning Conference which I did get to go and I loved all the talked about the focus on place making. In your goals what really stuck out for me was the enforcement capacity building like some of the other Councilmembers have mentioned. When I was new to the Council last year about this time maybe for a week...maybe I wasn't here quite yet. One of the things that jumped out to me was with regards to code enforcement. I lived and worked in the city of West Hollywood was just a tiny three square mile city and in our city hall we had a Code Enforcement Division and they focused on that and I think that the potential for not only doing right by the people who want to see the environment better taken care of the sign ordinance all the different component of code enforcement to make it better for everyone but also the potential for revenue to pay for that enforcement. I don't see any new staffing for that and I am curious as to the existing staffing which positions actually do that and if there is any positions that do that primarily that is the core function of their job. I see jobs called Planning Inspector. Do they also do code enforcement? Mr. Dahilig: Let me give you a rundown of our team of inspectors. We have five inspectors one of them is a grant through the CZM program and so that particular inspector is primarily tasked with looking at the CZM violations. The other four inspectors, two based on previous appropriations are solely dedicated for Transient Vacation Rental enforcement. Right now what their primary goal and objective has been over the past year has been to support the implementation of Ordinance 904. What they need to do is actually transition from the inspector types of activities related application processing to actual maintenance of enforcement and a code enforcement level. So that is a part of the (inaudible) where we are going to make that transition towards. The other two inspectors that we do have, one is solely dedicated for inspections related to CBR or (inaudible) request that come from the State Real Estate Commission. Essentially our code enforcement if you look at our general code enforcement program is run by one individual. So we have five inspectors but that is the breakdown of where all those inspectors are deployed to. April 5, 2012 Planning Department p.18 Mr. Kuali`i: I do see three positions titled Planning Inspector III and two of them Planning Inspector II ... three for Planning Inspector II. What is the fifth position? Mr. Dahilig: The fifth one is included and I believe the Council has in their packet a copy of the CZM budget. Mr. Kuali`i: So, in the budget it says Land Use Plans Checker II but in this it says CZM Enforcement. Mr. Dahilig: These positions that are in the CZM grant budget are not listed as part of the County's operating budget. It is included as a matter of course but it is hundred percent grant funded. Mr. Kuali`i: So that these two positions have the exact same salary it is not the same position. Those are two different positions. Mr. Dahilig: Correct Councilmember. Mr. Kuali`i: Land Use Plans Checker II, and CZM Enforcement Officer. On this added sheet. Mr. Dahilig: That is the fifth inspector right there. Mr. Kuali`i: It is separated out because it is paid for by a grant? Mr. Dahilig: Yes. Mr. Kuali`i: And that grant is ongoing?Or it's the first year? Mr. Dahilig: It has been going on for a while. The County has been participating in the Coastal Zone Management program for quite some time. It is administered by the State Office of Planning through a grant from the National Oceanic and Atmospheric Administration. We have been thankful that the Federal Government has chosen to support Coastal Zone Management across the Nation. Based on the administration changes in Washington, sometimes funding is tenuous, but we have always been able to make things work and so this year we think we will be at level funding, if not there will be a 5% cut. We do not know what the final numbers are based on the State budget which also throws in some of the match that is required by the guys in Washington ,it is preliminary at this point. Les Milnes has been in the position for quite some time on the CZM funding so that is how long the funds have persisted. Mr. Kuali`i: So when you break it down and that really helps just by doing that. One of the Planning Inspectors that does focus on code enforcement how long has that one position been focusing in that one area? Mr. Dahilig: That is a good question Councilmember. I don't have that institutional memory. I'm going to toss it to the guy on my right. Mr. Kuali`i: Just...you know, two years, five years, ten years...a long long time. April 5, 2012 Planning Department p.19 MILES HIRONAKA: The Planning Inspector III I think has been over ten years with our department, and Planning Inspector II, the non-TVR Inspector just the Code Enforcement Inspector, is about four years. Mr. Kuali`i: Then the other thing I would just say that based on all the codes the County has out there that we are responsible to enforce and what kinds of records are we keeping? I mean I see you have on this page seven in your report, Comprehensive Zoning Ordinance inspection 763, violations 476, resolved 231, but that is specifically for the CZO so that's the Les Milnes position? Mr. Dahilig: That is everybody else. Mr. Kuali`i: So when you have 476 violations are there fines revenue attached to that. Mr. Dahilig: Not at this point. A lot of this data came in prior to the implementation of Ordinance 919 and any kind of fund, we have not realized anything yet from 919 because when we had to amend the Planning Commission Rules to provide due process should there be an appeal. The other element is that under State Law which is I believe HRS. 46 that it authorizes the Counties to do Civil Fines. There has to be an education and enforcement element and attempt to bring somebody into compliance first. If there is a violation that does persist then it becomes right for a fine. So when you see a lot of the violation notices and if you are looking particularly at the 476 number, what that amount is, is that we have given them a notice of violation, a cease and desist order, and a demand to contact the Department within 15 days untill we formulate a remediation plan. If they are non responsive and they continue to persist and blatantly violate, then that would be a candidate for the application of Ordinance 919. Mr. Kuali`i: You are basically saying then as long as fines and revenues go, with regards to code violations, that is something new going forward? Mr. Dahilig: That's correct. Mr. Kuali`i: So as a part of that, have we, with this new Ordinance passing and all, have we done an inventory of all our Codes and potential violations and a fine schedule of sorts? Mr. Dahilig: The current Ordinance only specifies that fines are allowed up to $10,000.00 a day or a one-time charge of up to $10,000.00. In terms of an actual schedule, we have left it at an ambiguous from a stand point of discretion. How blatant is the violation. Certain things certainly could rise to $10,000.00 if it is like "F U" we are not going to do this. We are not going to listen to you. That is the kind of stuff that we really want to pound them and say, aye you know we are serious about this. Others may just be simple violations and may show a lesser fine and so we have not come with a regulatory application schedule with respect to what fine is appropriate for what violation because also what we do find is that the variation in types of violations are enormous. It can be anything from lot coverage to clearing to extending a house. It varies with case by case and we kind of want to keep it that way. Mr. Kuali`i: So the variation is large but is the amount of potential violation potentially large as well? Because then I think if we had a system in place and if we establish something moving forward then maybe we can ultimately we could pay for four Code Enforcement Officers and you know it is not just about the fines and making the money but it is about funding the Code Enforcement Officer so the codes are enforced. This small city I lived in was three square miles and they probably had three or four code enforcement officers. Yeah there was a April 5, 2012 Planning Department p.20 lot of sidewalk dining and all that kind of things where there were all these special permits that was needed and they just looked for the posting and it was there, it was there, and if not, there was a fine, but there is a lot of potential there and we would be serving the public and making sure the codes were being followed and them potentially paying for it with the violations. Mr. Dahilig: I think that is the eventual goal. Knowing that due process has to be allowed and what my assessment has been is that the staff has to come up to that level where the amount of documentation and the constitutionality of searches does need to be fully implemented and from there it becomes the launching point for us to really be reliant on the work product to commit in and say we can chase them at a fine level now. If we are subject to a contested case hearing, I would want to win the contested case hearing and have the work product...it all comes down from the work product standpoint. Mr. Kuali`i: And that is why I'll just close with ... and that is why I really appreciated your slide 12 where you talked about goal 3 and the enforcement capacity building and you said it would no longer just be complaint based and that you are moving forward to train yourselves and train your staff to do search protocol, proper evidence gathering, and report crafting and the (inaudible). I think that we are differently moving in the right direction and if we need support for that I would love to help. Thank you. Mr. Rapozo: Thank you Mr. Kuali`i. Let us take a 5 minute recess. There being no objections, the meeting was recessed at 5:01 p.m. The meeting was called back to order at 5:04 p.m., and proceeded as follows: Mr. Rapozo: Thank you and welcome back. Mike, are you... and this is a follow-up to Mr. Kuali`i's question regarding the civil fines. Are you folks...I'm assuming we haven't received any fines at this point? I apologize for the laughter, just for the public viewing Mr. Chang here is having a laughing fit and I don't know why. Mr. Dahilig: We have not received any civil fines at this point. Mr. Rapozo: Are we prepared to move forward with fines. Mr. Dahilig: Yes, we are prepared to move forward with the fines. We did get the rules passed so the rules do allow us to already come in and start collecting the fines. But what we have done in the (inaudible) between the adoption and the approval of ordinance 919 and the actual adoption of the new commission rules that implement it further. We have already been putting notices on notices of violation that do say you may be subject to a fine. We have not moved forward on any enforcement yet...sorry not enforcement, we move forward with respect to actually pushing the fine on the violator but we have already been giving notice even before the regulatory machinery was in place. Mr. Rapozo: Thank you, and one of the things I would like to see and again it would require an amendment but is to have those civil fines deposited and I think Mr. Kuali`i touched on it already and spoke to the Planning Committee Chair, have those civil fines deposited into a Planning Enforcement Fund where I think it's what KipuKai was talking about. We can use those funds to compensate your efforts of enforcement. So it doesn't come out of the taxpayer's money. It's almost like the asset forfeiture fund where you use the bad guys money to fund the enforcement. That I think is one of the easiest mechanism and I think the people can April 5, 2012 Planning Department p.21 appreciate that because it doesn't come out of the taxpayer. It comes out of the violator. So we will work on that as we move forward. Councilmember Nakamura did you have a question? Ms. Nakamura: Thank you, page 9 of your report you talk about digitizing and centralizing complaint intake cataloging of disposition. So I guess I wanted to go back to the whole existing record system and tracking of parcels digitally. What is being done with respect to the old files? Mr. Dahilig: At this point Councilmember, we haven't ... I guess there was a Countywide effort to do the digital scanning through the laserfiche initiative. Our Department was not part of that first batch of Departments. We certainly would like to, once the next batch comes through, be a part of that to get things digitally scanned and put in. What we have done at this point really more so is turn off the tap and try to move forward approach at least in the interim and so we can get that backlog taken care of which is, we do not accept applications for Class III or Class IV or any other types of permits without digital scanned copy of all the submittal documents. That way it becomes easier for us as we try to create the mesh. A mouse in a pet project has really kind of come up with a data method of doing this and again it is for in-house purposes, but it is illustrative of what we are trying to do to be more robust in meshing GIS with our digitally scanned documents. As of this point we have not been able to take care of anything from January 1st of this year previously. We have just been able to do the policy change at this point. Ms. Nakamura: Do you... the concern that I have is because so much of it is on existing data on cards and existing maps that if anything should happen to those, you know we have lost a lot of good information and so I am just wondering if we should think strategically about how we approach that project. And recognizing it is a big project to undertake but something that we need to invest in to get good information moving forward. So I think it is really important and I would like to see some thought given as to how would we go about as Department tackling this project. Mr. Dahilig: As part of the lessons learned in terms of being a new Director, and coming in I thought okay, let's scan everything, let's stop everything, put everything in digital now, and then you realize just what the peripheral effect not only to our Department but to the Agencies as well. I would love just on my own to say to my Department and make the policy and say no paper. Our Department this weekend actually came in and threw away loads and loads of paper. It is amazing just how much you accumulate over time. A lot of it I would like to just have it come intake digitally, but what my realization was that it really is a canoe effort because in the rotation of plans and reviews we rely on the Department of Public Works, both Engineering and the Building Division, and so what works for us may not work for them. It has slowed my desire to want to charge gang busters ahead so it does require a multi-agency type of discussion beyond our Department. But it is something that I would still like to be persistent on and certainly more discussion is certainly needed. Ms. Nakamura: I think it would be good to prioritize what data would be very useful, parcel level data, and what would be nice to have but what is really needed to be functional as a Planning Department. It is a big effort but I think we need to break it down into chunks that is doable and then to put some money in the budget so that we can have the resources to get it done and that is something I would like to see moving forward. Mr. Dahilig: Okay, I can certainly answer that question. Mr. Rapozo: Thank you. One follow-on question and it is similar to that but is there a like a modular system available and I have been to enough conferences where we have been promised the world but is there a system in place for planning or permitting Public Works April 5, 2012 Planning Department p.22 where you basically buy a module for the different Divisions, Departments? I know at one point the late Bryan Baptise wanted to explore that and have a one stop shop where we come and it is all interconnected. Is that available? I know it's not available today in the County of Kaua`i but is there a program, a system available out there that we could transition to eventually? Mr. Dahilig: Councilmember, that transition actually is happening now with respect to the Building Division, and where we come in is that there is a separate module like you mentioned that gets plug in to what the Building Division is doing at least for their e-plan reviews. So because the bulk of our zone 1 permits, and that is the bulk of our paper, it comes through the Building Division anyway. What is envisioned is that that system first gets up and running, and we get use to that, and we add as part of the phase, the 2nd phase to this specific planning module to link into what it would be this unified system. So it is on ... Brandon has been great in terms of trying to map this thing out and its implementation. I'm sure there are going to be road bumps and hiccups especially trying to teach guys who are used to paper plans to now review things digitally. I think once that starts to snowball then he is going to look at inserting that planning module that we have seen in bits and pieces. Miles and Dee have been looking at it. Not all software fits every single exact need but what we have seen so far is about 89% or 90% there and we can definitely make the adjustment accordingly as well, so I think that is what we have on the horizon. Mr. Rapozo: Thank you. Councilmember Yukimura. Ms. Yukimura: Following-up on the questions about a data system. I don't think there is any really good way to do planning without good data, good planning without good planning, so I do see it as a priority as well, and you know my constant complaint have been, why you cannot tell me about Ag subdivision, right, and the parcels and so forth. To me that is like a fundamental question. So I just want to encourage and if there is a system that Brandon is working on and my question is going to be similar to Councilmember Rapozo's, where in the Country or in the State is there a good system working that we could use as a model. Not do it all at once but begin in a systematic way with all our partners, I mean with Planning's Partners, Public Works, Parks, Housing, you know Department of Health even, but all of those pieces just do it, at least there is an end in mind and there is a pathway or a map and you begin it; you cannot do it all at once. You certainly cannot fund it all at once but you do it systematically so you are not, you know again Covey put the ladder and climb up and find you are on the wrong wall or you are at a dead end and you cannot connect to this other Department or whatever, or you have scanned all your papers and now you have to go and categorize them. So it would give us a better comfort level if there were at least a plan in place and we could see that we are going step by step even if it is a ten year plan. Mr. Dahilig: (inaudible) I bring the canoe analogy to mind, because you know we do...to move to a true digital type of one stop where the goal is eventually that you submit one set of digital plans and it gets reviewed concurrently with all the Departments so we can see what each other are doing in real time, I mean that is the goal. Brandon has been the Star War Leader on this endeavor and we have jumped in the canoe with him and so we have been in constant communication with him. We do know that there are other model systems out there like for instance in Bend Oregon, they have a very great e-plan review system where nothing is actually submitted in paper at all. Instead they spend their time brewing beer and other things and having fun, but that is essentially the kind of goal we would like to get to is a similar system where there is virtually no paper. You can essentially print your permit off online and I think Brandon is well aware of that being the overarching and goal of the Administration and when we are ready to tee up to bat, I think is when he tells us to. Ms. Yukimura: Okay, well then we would like to get a briefing from Brandon about the overall system and how it all fits together and what the timelines are you know April 5, 2012 Planning Department p.23 that just would give us some comfort level that this system is being put in place. My second question is... Mr. Rapozo: Real quick I just want to add on to that. So is Brandon working on a new system? Is he working towards a new system? Is he trying to retrofit what we currently have? Is he...I guess I am not understanding what we are doing to reach that goal. Mr. Dahilig: I don't want to ... I guess I can only talk in conceptual terms but from what I understand and what is communicated to us is that the plug-ins that he is looking at are going to be able to draw on what is already data in our AS400 system and what it will do is it will draw through that to a new e-planner interface and then essentially again the core that it revolves around is the Building Division's operations, and so that is the first in this implementation of eventually having all Departments that do review plans within the County on being on a unified digital system. Mr. Rapozo: But is Brandon doing this? Is it a custom plug in? Is it stuff that he is designing or you don't know? That is fine too. Mr. Dahilig: I think it is a package. Miles can a... Mr. Rapozo: My concern is this, when I was in the Police Department we wanted to create a record management system, I forget what the committee was called back then but it was a computer committee submitted a proposal to the County was about 60,000 bucks to completely do a records management system for the Police Department. They said no we going to have our resident computer expert build the program. All of a sudden the Computer g p p p g mputer Expert disappears and then we are stuck with something that no one else can work on and I think if Bend Oregon, has a good module maybe we should look at Bend Oregon. I mean there is so many out there. The problem too is that you have so many and not all of them are really good so you can go out and spend a lot of money and then all of a sudden 3 years later the vendor is gone, they go out of business and we are stuck with a product that we cannot update, and so I am just curious what we are doing as far as internally trying to put all these components together. Mr. Hironaka: We are learning a little bit more about this e-plan system as we go along. In the next couple of weeks we are having meetings with the IT Division on this e-planning, what it can do or cannot do, so we are kind of learning a little bit more about it. I think the initial stage is to try to get the building permit process into this e-plan review. Now whether or not this can help our Planning Department's database need to be integrated or not, we are kind of learning a little bit more about that. Ms. Yukimura: But that is my concern though you don't do this thing piecemeal. You don't start to have all inputs on the Building Division and say okay now we ready for Planning but you don't even know how it is going to fit and you might be a lot ... I mean to me you bring all the groups together you say what are your present needs, what are your future needs, and how we going to make what is the best system, and then you begin to piece it together and you don't have to wait for one group to do it. You can do it. You can do it simultaneously because you are already part of a system that has been thought through. So enough on this but I think you get the gist of our concern that we would like the big picture in mind so all the pieces fit together and you don't go okay now you know after you spend $60,000.00 then you say but we needed this or his does not fit or we have not planned this interface. We are just asking. What was one of your goals, efficiently and effectively doing things? April 5, 2012 Planning Department p.24 Mr. Rapozo: We will send over a question and when IT comes over for their budget review we can touch on that because I am very interested in what we are doing and I agree I would much rather see a 10 year transitional plan to get to that point where it is truly a one stop shop where someone can come in and digitally submit their plans and every Agency gets it and every Agency submits their comments, so when Building, Public Works, Planning, you can see the comments as they are being done. It is available now and I know it is not cheap but I think what JoAnn is talking about is rather than focus on Buildings and try to retrofit a planning module down the road vs. why don't we just try to work on a system that we can have all the modules being planned...yes you can expand later. You don't have to do all the modules at once but at least when the designers of the software package know what they need to anticipate it is a lot cheaper transition. Okay so we will work with IT on that. Ms. Yukimura: My second question. What is this on page 8 where you have TVR registrations are $49,200.00? Mr. Dahilig: These are for fees collected. Ms.Yukimura: Oh, okay. Mr. Dahilig: We didn't have 49,000 TVRs. Mr. Rapozo: That is just in the North Shore. (inaudible) Ms. Yukimura: Okay, so the numbers in terms of numbers of TVRs is that the next bunch? Mr. Dahilig: Yes, the next bunch. Ms.Yukimura: And so, these are TVRs both within and without the resort VDAs, visitors destination. So we can just get a, because this was of concern when we were crafting the TVR legislation, how many actually exists, how many you know so I'll request some data about how many are in, how many are out of the TVRs, so bottom line where you have 149 pending processing. Are those the ones that are coming up for that are still before the Planning Commission the grandfathered ones? Mr. Dahilig: This is information that was at the end of last fiscal year so right now there are still that these numbers are still changing and when we look at 149 that would be the amount of I guess ordinance 904 reopened both the registrations outside and inside the VDA. So that includes the Ag TVR special permit request. If I were to take a snapshot in this picture, what you would see is that 413 nonconforming new certificates means that there is 413 Trans isn't Vacation Rentals that are certified by the County to be legal but outside the Visitor Destination Area. Ms. Yukimura: Really? Mr. Dahilig: Yes. Ms. Yukimura: And then how many of these are Ag? Mr. Dahilig: In terms of these we can provide you that breakdown. There has been an evolution based on the Commission's actives. Things are still pending. We can give a more up-to-date number if you would like to take a look at it. April 5, 2012 Planning Department p.25 Ms.Yukimura: Yes please. And can you also tell us when the final deadline will be so we actually know we have finalized figures on it. Mr. Dahilig: The final application were due last fall, so no one can apply for a (inaudible) anymore. Ms. Yukimura: But you have the 210 day evaluation time that is still running but ... Mr. Dahilig: Those are...we have one more TVR left on the Commission's docket relating to Ag, then we have a set of appeals that could either result in a TVR or not result in one. And so that is all that is pretty much left on the Commission's plate right now. Ms. Yukimura: What approximate number of appeals do you have? Mr. Dahilig: Five. Ms. Yukimura: Oh. Okay. Well without I cannot judge because I have not been following the merits of the decision making on Ag TVRs, but I surely can commend you for the volume of work that you have been doing on it and the processing that you have been doing. I am very curious to see what the numbers are but we will soon I guess get a picture of sort of the end of the road in terms of TVR processing and it would be interesting to take stocks sort of. Mr. Dahilig: The Commission as well as Dee Crowell and Mike Laureta deserve a lot of credit for being able to in a very short amount of time slog through a lot of these applications. It has been an adventure I'll say, and I can say anecdotally that the Commission has been very tough on these guys. They have been very tough. Ms.Yukimura: They should be. Mr. Dahilig: And so, right out of the get-go did set a pretty high threshhold and as the months wore on there were epiphanies that they had that resulted in further conditions and further regulations that were inserted as perfect conditions so they do deserve a lot of the credit for taking this. What we can anticipate in terms of what has actually made it all the way through will be in the range of 60 to 70 and so we will not have a final number until all these appeals are finally taken care of but that is the window that or the range that we would see the amount of special permitted Ag TVRs that went through Commission approval. Ms.Yukimura: And that will be a cap or a limit so we will know what the final result is and then there will be enforcement. Mr. Dahilig: Yes. Ms.Yukimura: Alright, thank you very much for that. Mr. Rapozo: What the numbers don't reflect are the illegal ones and I think those are...we got a lot more illegal than we do legal and I think that is a concern and I have watched a few of those approvals at the Planning Commission for the TVRs especially the Ag ones. I am not going to say that I agree with all of them. I think some of them were granted (inaudible) but that is the process they went through. They got their permit, their certificate. It is what it is so we will see what happens. Mr. Kuali`i you have any questions? Mr. Chang? Ms. Nakamura? April 5, 2012 Planning Department p.26 Ms. Nakamura: I want to make a comment on page 10. And this has to do with the East Kaua`i Development Plan and it has been a project that has gone through many different Project Managers internally. There has been many starts and stops along the way, and I just want to make, because there is a draft plan that I think will be making public shortly that really want to make sure that it goes through the proper community review process, and I will be recommending some additional funding to make that happen and to give it the CAC time to fully review it since they have not looked at it for several years. And I want to make sure we give the community and the broader community time to digest it and to make changes to it so that when it goes through the process there is community ownership for the vision and the goals and objectives in that plan. So just wanted to let you know and Members of the Council know that is something that I will be pursuing. Mr. Rapozo: Thank you. Councilmember Yukimura. Ms. Yukimura: Just as a follow-up to Councilmember Nakamura's. I actually deem it horrible as a record that we took four years to do the East Kaua`i Development Plan. I mean to me that things get old before you get to adopt something. And so I hope that we are going to have better track records on our next plans. Mr. Dahilig: It has been an example for us to learn lessons from. It is I guess the only word that I can describe what has gone on with the East Kaua`i Development Plan is unfortunate. And it has been. Ms. Yukimura: Yeah that is probably a better word than mine. Mr. Dahilig: I would like to say that people their duties are something better because our department right now is in the mode of trying to in a sense wrap it up and we are dealing with a consultant right now that has zero funds right now in his budget. We have a product that is still needing to be completed and so given that our approach has been we at least want to try to wrap it up and try to make it as presentable as possible. That has been one of our goals. It certainly is an issue for discussion before the body because we are tasked with working with what we can in terms of what is left and so but yeah it has not been I guess the strongest of performance with respect to this one and then something that we, at least I, as I hope moving forward we can use as an example for how to lay out our plans for the future. Ms. Yukimura: Well I think your responses are very well received. That is the only reason why I brought it up. That we can learn from this and use it as an example of what we want to try not to do because you lose the momentum, you lose the memory, and understanding that just so much is lost when it takes so long to do and I use as an example Mr. Charlier's performance both on the Koloa-Po`ipu Transportation Plan and on the Multi Module Plan. You know there is such a clear track, a clear pathway in terms of what the consultant is going to do and where the public gets to participate and what the outcomes are going to be. He touches bases with all the different places and then we get a result in 12 to 18 months so that I hope that we can move there. The other thing I wanted to ask about is the 6-year CIP report. I really commend you and your department, and Marie was the one that we are finally after years or decades, beginning to implement the Charter's intention that we tie our CIP to our Planning, and so I really commend you and thank you for doing this work. I am concerned about tying the CIP to what is either was not well done in the General Plan or what is becoming outdated in the General Plan, and my example of that is the northern connecter road in Po`ipu which is not a smart growth project. In my understanding of the transportation plan was really down the line and was supposed to have been looked at only after we have tried all of the short term things. So I don't think it should be in our April 5, 2012 Planning Department p.27 CIP. If we go by smart growth and we being to anticipate where we are going on the multi module land transportation plan we don't know where the State's land transportation plan is going but the indication from multi module study is we need to make a paradigm shift in how we do land transportation. Unless we are going to build 8 lane roads and follow the O`ahu paths of an urbanized system that is very contradictory to our main goal of the General Plan which is to maintain the rural environment. So I am going to raise that in our CIP discussions because the history of DOT planning and I was just listening to the tape from our Smart Growth Conference, the DVD, Not Your Grandfather's DOT, and I am going to actually play it here for a workshop in transportation is that we are going down a track of multiple projects that we are actually not going to do because we don't have the money and the environment or the context is changing over time and we are spending a lot of upfront money on these projects that are going to nowhere. They are really going to be a road to nowhere. They might not even get on the land. Hundreds of thousands of dollars spent on planning and design. Mr. Rapozo: Plan to nowhere. They don't even have a road. It's a plan to nowhere. Ms. Yukimura: So I want us to start looking at that and the innovative DOT Directors country wide have stopped their projects and said what is realistic and what are we really going to do? I think we really need to do that here. Even if we have to drag the DOT screaming and kicking along with us, but I just wanted to signal that. Mr. Rapozo: Mr. Kuala i. Mr. Kuali`i: I'm not sure if it was addressed, but somewhere in here you mentioned that even with the additional space in Pi`ikoi you still have staffing crowding issues. How is that going to be addressed going forward? And what kind of help you need from us? Mr. Dahilig: We have, and I am sure Kaaina, Myles, and Leila can describe the hurricane that went through our office this past week and knowing that we have three new staff members coming on board we did have to be a bit creative with respect to maintaining what our OSHA requirements with where we put people. Like I mentioned earlier even with the additional space in Pi`ikoi we really are not letting any additional space if we were to bring on more people and I think it becomes a predicament where we have to go and ask the Administration what other vacant space is there. Given that we have another I think at least...we do have a space for the Transportation Planner earmarked so he or she will not be left without house or home, but we do have 3 vacancies and if those do get filled then we are going to have to find more creative solutions as to where we are going to put them, but we are very tacked for space. We now store files in four different places in the County and so it's actually five different places because of the move. In my opinion it is not the type of work environment I would like to have with this respect to trying to create synergies between staff members but we make do with what we can. In a perfect world certainly I would like to have everyone together in the same space but other interests arise and we make do with what we can. Mr. Rapozo: Whatever happened with our Space Planner? Did we ever get a report? Mr. Dahilig: I do not know if that is our Department. Mr. Rapozo: Yeah. I was just curious. April 5, 2012 Planning Department p.28 Ms.Yukimura: I think I raised the question to the Mayor that this Civic Center had a vision. I mean there is still a lot of space there and we need to develop that space especially if we need it right now. We need an overall plan for that. Mr. Rapozo: There is no doubt in my mind that Planning is probably one of the most problematic and needed I guess. I do not know how they operate in there. Ms. Yukimura: I had told Beth that the fishbowl or Workforce place right across that that should have been for Planning. In my opinion we need to service our in-house needs first, but you did not have a Planning Director who was asking at that time, or anticipating or thinking about planning for the Planning Department, and so I think we would support you in making the request to the Administration and asking them to accelerate the space planning process in the Civic Center because we are totally supportive for you to have adequate space for your work and your employees. Mr. Dahilig: And thank you for that. We make do with what we can and it is a concern that I constantly do bring up with the Administration but I am not the Steersman, I am but a paddler. It is one of those things where they know my needs and I continue to let them know my needs and we just see where things go from there. Mr. Rapozo: It does not take much to realize your needs if you go into your office. Anyone can see you have inadequate space and that is sad and we need to pursue this somehow. This Council needs to with the available space at the old Big Save. Ms. Yukimura: I wanted to ask if you could ask staff to put a question to the Mayor to ask how Planning Department special needs are to be addressed. Mr. Rapozo: So noted. We have acknowledgment. Thank you very much. I think that is a good question because we have heard from the Auditor, we renting space and it is kind of hard to justify to the taxpayer paying rent and having so much vacant space. If we are going to pay rent, let's pay rent for storage and move the people in to where the people need to be. Anymore questions? Hang on JoAnn. Nadine? Dickie?JoAnn. Ms. Yukimura: So, I just wanted to ask for some rethought on the mission. Mr. Dahilig: The mission statement. Ms.Yukimura: Yeah. Because it is the County of Kaua`i's Planning Department aims to provide through the regulation of land use in an open matter. It is that phrase that I actually have some questions about it. My understanding and it may be erroneous or limited, is that Planning actually two parts, planning and regulation and it seemed that planning somehow got lost in it. Now the vision, you know a long range vision for physical, social, cultural growth moves into planning but it just seems that planning was lost. Then I just wanted to ask about open manner. Is that intention there is that to convey the concept of transparency? Is that what it is? Mr. Dahilig: This has been a vicious statement that has been passed down quite a while and so I am going to bump this over to Myles. He is going to smile at me for saying this (inaudible) by saying this but he'll give you a little bit more history on where this mission statement came from. it April 5, 2012 Planning Department p.29 Mr. Hironaka: This was a mission statement made several years prior to Mr. Dahilig coming to the Department. But, yes that is for some transparency as with all of our permitting process before the Commission is true of public hearing through an open process. Ms. Yukimura: Well I support that concept for sure. I am not sure those words fully convey it but anyway, the other thing is and I am quoting from what Mike said sometime today in his presentation, "a healthy, beautiful, livable place." That whole concept of place making, to me those words would capture peoples...not only people's imagination but they would inspire and I thing that is what you guys are working for. So, maybe some of that new concept or this idea of place making, you know because we have such an incredible place here and what we are doing is we are adding the built environment to this most incredible naturally beautiful place. I was just thinking that your mission you know I think we feel it in our gut what your mission is and maybe some words that might better convey that mission. Mr. Rapozo: Thank you very much Councilmember Yukimura. Any other questions? Comments? If not thank you very much Mike we will see you guys next time. Ms. Yukimura: Thank you very much. Mr. Rapozo: If there are no question, comments, this budget hearing is recessed until Monday morning at 9 a.m. for Civil Defense. Thank you very much. The office of the County Planning Department budget review was concluded. There being no objections, the meeting was in recess at 5:46 p.m. April 9, 2012 Civil Defense p.1 The departmental budget reviews reconvened on April 9, 2012 at 9:18 a.m., and proceeded as follows: Councilmember Bynum (present 9:22 a.m.) Councilmember Chang(present 9:31 a.m.) CIVIL DEFENSE: Chair Furfaro: Good morning Ted. THEODORE DALIGDIG, CIVIL DEFENSE MANAGER: Good morning Chair. My name is Teddy Daligdig and I am the Civil Defense Manager for the County of Kaua`i. With me is Karleen Abalos who is the Secretary and I would like to bring her forward so she can assist me in answering any questions that you may have. I would like to start by saying the mission of the Civil Defense and that is "to protect the lives and property of all the people living in Kaua`i County during emergencies or disaster events. We have a number of goals that we rely on in order to make this happen. Our first goal is to increase public awareness through outreach education programs in order to enhance timely, orderly and safe emergency response and preparedness. Number two (2), improve the operating efficiency of the Emergency Operations Center or as we call it — EOC. Number three (3); train our staff, governmental and non-governmental emergency responders by their participation in exercises and attendance at formal training sessions. Number four (4); improve the timeliness and efficiency of the local disaster warning and notification procedure. Number five (5), increase public awareness of the civil defense programs through public presentations, public relations news releases, hazard awareness programs, and distribution of emergency preparedness literature. Now I would like to go into the success and achievements for fiscal year 2012. Since July 2011, we initiated five (5) Flash Flood Warning partial activations with the most recent event March 3-10, 2012 having a County Disaster Declaration and State Disaster Declaration. We are awaiting approval from the Federal Governmental for a Federal Disaster Declaration which may release federal funds to help support the disaster recovery costs. Number two (2), since July 2011, we initiated one (1) Po`ipu fire partial activation. Number three (3), conducted the annual Weapons of Mass Destruction full scale exercise with Civil Support Team (93rd CST HANG), KPD, KFD, EMS, DOT Highways, Airport Security, and Harbors Division in September 2011. We also support grant purchases for the Kaua`I Police Department and the Kauai Fire Department. One of the other achievements is number five (5), seventeen (17) public presentations and outreach to community schools, organizations, interest groups around the island. Conducted a statewide Kai Mimiki 2011 Distant Tsunami Exercise this past October and we completed a comprehensive island-wide reservoir dam failure modeling and evacuation mapping project. Challenges. Number one (1), meeting the obligation of all grants administered through County Civil Defense Agency. Number two (2), general maintenance upkeep of forty-eight (48) State owned sirens. Continues collaboration with State Civil Defense Agency may produce new siren complete siren sites, replacement or upgrade of specific units. This project is ongoing and is expected to occur in late 2012 or early 2013. Number three (3), County employees serving in key department positions being trained in appropriate levels of Incident Command Systems (ICS) for operational and compliance requirements with the Department of Homeland Security. An increase in trained personnel has occurred over the last three (3) months. And finally number four (4), Department of Personnel lack experience with the upkeep of our communications systems. This is a serious discrepancy that is being addressed currently by management. Improvements. We added a new satellite dish to Civil Defense inventory increasing redundant emergency communication capabilities. We accepted the pandemic influenza plan and April 9, 2012 Civil Defense p.2 approved by the Administration. Number three (3), multiple emergency AC generators test with positive results, as recent as January 25 of this year. Enhanced communication updates with the Mayor's communication team and designated PIO office within the Emergency Operating center (EOC). The upcoming initiatives, I think this is important for me because it makes me be as proactive as possible. Ongoing Tactical Interoperability Communication Plan (TICP) administration. Ongoing training and exercise in ICS, and EOC activation. Increase education and outreach efforts communities as well as to schools and other private agencies. Update tsunami evacuation mapping for the island. Marketing of community evacuation route with standard State Civil Defense Signs. Indentify and designate safe holding area for Kekaha and Waimea communities. Indentify and designate safe holding area for residents and visitors of the Ha`ena/Hanalei communities. Spearheading Kaua`i portion of the 2012 Homeland Security Grant application and investment justification cycle. The next page is a graph that shows the breakdown of our budget, I am not going through each one of it. Me, personally, I like graphics and I am sure you like it too but it is pretty self explanatory. The biggest piece is our salaries and wages. On the next page you can see the comparison between 2012 and 2013 and as noted there, there is a total reduction in our current proposal versus 2012. Operating budget discussions. New positions or changes to any existing positions, indicating contractual, civil service, exempt, or appointed and the respective salary... we have none requesting or requested. Number two (2), we do not have any current vacancies or anticipate any vacant positions. Number three (3) we have one emergency management grant coordinator, fully funded hundred percent by Department of Homeland Security Funds and her contract expires in June 2012 with a year extension. That concludes my presentation and I am now ready to except any questions that you may have. Chair Furfaro: Thank you, Ted. Did you touch on any part here regarding the CERTs program? Mr. Daligdig: No, I did not. I can elaborate a little bit if you would like. Chair Furfaro: That is something that we are interested in as it relates to coordination with Police and Fire that we have these volunteer communities but I did not hear any narrative on that. How about civil air patrol? Mr. Daligdig: I did not touch on that but I am ready to touch on it. Chair Furfaro: I think they are part of your first responders as well. Mr. Daligdig: Yes. Chair Furfaro: We do grant them some funding as well. Regarding your operating center backups for redundancy, can you explain to us a little bit more if we had to vacate the new Civil Defense facilities, what is our plan as to where we go as the emergency generator here which concerns us has been disconnected and salvaged, what is the long term plan there? April 9, 2012 Civil Defense p.3 Mr. Daligdig: Our long term plan for a redundancy emergency operation is to move to a new location which is the one that has just been completed in the — I call it the round building—the Piikoi Building. We have a space that is located upstairs on the second floor and it is currently equipped with the necessary equipment if we needed to move. I must tell you right now that if we had to move right this minute, that would be a problem. The priority was getting the Fire Department in there and getting their systems up so that we have a continuity or services between the Fire Department, Police Department, Dispatch and so as far as Civil Defense, we are still upgrading our system is not quite there yet. Mr. Rapozo: Thank you Teddy for being here. The Chair touched on a few items that I would like to get clarity on. First of all in the budget I noticed that there is a fifteen thousand dollar decrease in the civil air patrol budget and there is a little over fifteen thousand dollar increase in the other rental section. Let us start with the civil air patrol, is there any reason why we cut fifteen thousand dollars from that line item? Mr. Daligdig: Yes, you brought up two (2)very important points. One that is the support we get from the civil air patrol which I think is very important and the second item has to do with communication systems, maintaining a current communication throughout the island. When we looked at and I had to prioritize this which one would take the cut, I felt the one that would have the least impact on our services would be civil air patrol which is coastal aerial surveys for us. On the other hand I felt that communications which is the cost and pay to have continuous communications around Kaua`i was important, so in evaluating that I felt that the communications piece has to be maintained. Mr. Rapozo: Where is that fifteen thousand dollars for other rentals because we have the breakdown but I do not know where... I can see it because in the current budget it is sixty-four, five, twenty-four in the new budget, so I can see the increase but I am not sure what line item that fifteen thousand dollars went to. I noticed and this is a question I ask every year, is the Kukuilono Park radio lease is forty-seven thousand dollars versus the other radio site leases which substantially less, so is that where the fifteen thousand went? Mr. Daligdig: Can I defer to Karleen for the information. Mr. Rapozo: I just want to know where that... first of all I think civil air patrol; they help tremendously in the warning system. I know we have problems with our sirens and I sure we still do, I do not think we fixed the sirens since the last year's budget. Mr. Daligdig: No, but we are in the process. Mr. Rapozo: Well that is what they said last year. All we have in tsunami, hurricane for those residence that live on the coast that are near the sirens that do not work, really is the civil air patrol. I was speaking with the civil air patrol people recently and the increase of fuel has basically limited them from any training flights right because they do not have the funds. Our funding is the only hope for them to continue the training and to continue to be ready, so I am concerned. The question on the Kukuilono site, why is Kukuilono so high compared to the others? KARLEEN ABALOS, PUBLIC SAFETY SERVICE SECRETARY: That is the lease rent that we negotiated. The lease is coming up, it expires June 30, 2012, we need to renegotiate again for another lease agreement. It is hard to estimate how much they are going to require us to pay based on increase. Our Grove Farm one already expired, the contract expired and I think Grove Farm—we were paying only about twenty-five hundred a year. Mr. Rapozo: Well your budget is showing ten thousand three hundred. April 9, 2012 Civil Defense p.4 Ms.Abalos: Yes, because he is saying now because of the new lease agreement he wants to charge us up to three thousand a month based on appraised values. We are not sure because our contract, we have not even seen what they want us to pay for that. Chair Furfaro: Could I interrupt just for a second? Mr. Rapozo: Please. Chair Furfaro: I want you folks to know, this has been a long issue with this Council and two (2) years ago, three (3) years ago when we knew we were close to the leases is coming up and so forth. I just want to ask you, has the County Attorney's Office been involved in negotiating these to a better price point for the County, a simple yes or no. Has the County Attorney's Office been involved to renegotiate these to a better price point? Mr. Daligdig: The answer is yes. Chair Furfaro: And yet the outcome is that we are seeing the increase in rentals rather than... Mr. Daligdig: We are anticipating an increase based on discussions that we had with them. Chair Furfaro: You know how often they had met with these individuals to portray our plight? Mr. Daligdig: I am not certain, no. Chair Furfaro: Okay, we will send over a communication. Mr. Rapozo: So, in your budget the other rentals, where is that fifteen thousand, forty dollars... where does that show up in your line items? Ms.Abalos: This is for the increase in the other rentals? Mr. Rapozo: Yes, on your other rentals line you have six (6) items, Grove Farm is ten thousand three hundred but you are saying that may go to thirty-six thousand. Moloa`a is twenty-four hundred, Anahola is eleven, six and then Kukuilono has this forty-seven thousand which I am not sure why that one is so high and then the Kalepa Ridge is twenty-five hundred, so where is that fifteen thousand increase, in which line item? Is it the Kukuilono line? Ms.Abalos: It will be the Kukuilono, it will be spread out between three (3). We have Kukuilono, Anahola site which we need to renegotiate also and the Kalepa is the Grove Farm that is owned by Grove Farm—the Kalepa Ridge. Mr. Rapozo: Okay well you have Kalepa Ridge and you have one for Grove Farm. Ms.Abalos: Grove Farm is a different site, it used to be owned by Grove Farm but Panicle took it over, so that is that one. Mr. Rapozo: Maybe we should update the budget. So the fifteen thousand right now, the increase and I am just going to be honest with you, I am going to hope this Council April 9, 2012 Civil Defense p.5 replenish the CAP funds because I think that is a critical component of the Civil Defense system especially when we have inoperable sirens, I think it is... I do not know what you expect those residents to do, they live on the coast. Chair Furfaro: Excuse me; can we get some clarity on that? Mr. Rapozo has a separate meeting along with me with the State who is involved in those sirens. This is a year ago. They have not responded yet? Mr. Daligdig: They have Mr. Chair, I have been in consistent negotiation with the State as (inaudible) this morning for the upgrade installation of new sirens around Kaua`i. In fact, we are going through the approval process right now and all the applications are before the various departments for their approval before it can be reinstalled. Chair Furfaro: I think though the way we left it with the State, Teddy is we wanted them to identify island some repair and maintenance contracts that could be pursued, so we did not have to wait in line for their vender to come over to fix sirens. We asked them to identify someone on island. Has that happened? Mr. Daligdig: Yes and no. Let me first clarify what I mean by that. We do have to team that comes from O`ahu that does periodic maintenance, one supporter. I have determined that it is not enough especially for the sirens that are on the coastal area. We have negotiated with them to have our own people go ahead, our own local contractors and repair the sirens and the bidding would be through a grant from State Civil Defense. We have one individual who is actually doing that right now but he is not yet on the contract, he is on a call out basis. If we have a siren problem area "E" and he goes out there and repairs the siren but there is no contract in place. Chair Furfaro: I am sorry to hear that we have not advanced that idea a little further with the State. Mr. Rapozo: We will submit some questions over and the questions are going to be real simple, the status of all the sirens on Kauai—we will compare that to the report we got last year and of course I would like to know more about the lease agreements because for the life of me... if we are going to be paying forty-seven thousand dollars a year for a little parcel of land for a tower, then maybe those are the kinds of parcels we should be going after for condemnation because I cannot imagine it being that expansive and it is for public benefit. Forty-seven thousand to rent a little plot for a tower, that comes up every single year and it never gets resolved. Chair Furfaro: I think we told them that were not acceptable. Mr. Rapozo: Follow up on the Chair's deal, I thought we had and you were P p g Y not here Teddy last year, I do not believe you were here last year. Mr. Daligdig: I came in July. Mr. Rapozo: You came in after. Mr. Daligdig: I take full responsibility. Mr. Rapozo: Well this is not about pointing fingers, it is about getting these things fixed and it does not matter who but I believe this Council send a very strong suggestion and the Chair touched on it, rather than waiting for the State to send their crew... research the opportunity to go out and contract local electricians and people that are trained and knowledgeable April 9, 2012 Civil Defense p.6 in repairing these sirens because that is such a critical component of our Civil Defense. The final comment which is very disturbing is the backup EOC. I was under the impression until the last power outage that downstairs was the backup, all of us here thought that the basement of this building was the backup EOC. When the power went off during a Council Meeting and we had no power, I walked around the building with Eddie Topenio to find out where the generator was and I was shocked to find out that this building does not even have a backup generator, so how could it be a backup EOC. I then found out that the backup EOC was moved to the Fire building. Now I am hearing that we are not even outfitted for... I am deeply concerned as a Public Safety Chair that we have the space down below, we need to get a backup EOC asap because when something happens, it is going to be too late to try to get a generator someplace, to be getting radio communications someplace and that kind of bothers me. My third question is what is the plans for the backup EOC and I am going to be honest with you, I find it real troubling that in the last few months, there has been a huge push with moving of positions and all of these things for HR and yes, I understand HR is a good direction but we have not moved an inch in Public Safety. That bothers me as the Chair of Public Safety that the sirens are still not working and now I am really concerned that we do not even have a backup EOC. I do not know what we would do if something should happen, where would we go? We do not even have a generator here, so this place is out of the question. Fire Department, I guess they are moving their personnel so that is out of the question. Where in the world would we go? That is the three (3) questions that I send over, I do not expect you to answer on the floor today and I do not mean to be pushy but I just have a real deep concern because it seems like an annual thing — we are working on it, working on it... you cannot take responsibility for what you were not here for. I am not here to blame you but I do expect you to... Mr. Daligdig: Move forward. Mr. Rapozo: Yes, thank you very much. Ms.Yukimura: The Chair asked about the CERTs maybe you could tell us how the Civil Defense is working with them and the other emergency response agencies. Mr. Daligdig: Yes. The CERTs organization is very strong in the Princeville and somewhat strong in the Kekaha area however throughout the rest of the island they are pretty weak to nonexistent. Training for CERTs is usually done by local Fire Department and they have done a really bang up job in training the people that are available. The problem that we have is the volunteers that we expect to get, we are not getting and that is a serious problem that I face right now. I have initiated out there to try to increase- I would call them civil defense volunteers, they used to be around when I was growing up and kind of more than into CERTs for different areas (inaudible). I was able to recruit four (4) people within the last forty-five (45) days which is not too encouraging. Ms.Yukimura: I am not sure that it is the best way for you... it is admirable but to just have one (1)person try to talk to people they know, is there not a way to... there is such a willingness to volunteer here on the island, could you possibly through the retired senior volunteer program or other recruiting mechanisms develop... I do not know if people know that there is this program to volunteer for. It may be a lack of awareness and it maybe something that has to be developed programmatically in terms of outreach and information. I do not know that it needs to be your job personally, necessarily but maybe there is someone in your division or in Fire Department or a team of emergency responder agencies that are crossed agencies and they develop a program. Mr. Daligdig: That is an excellent idea. I have covered in my discussions in outreach programs about the volunteer programs but I think it is time to go another step further like you suggested. Let me take it under advisement and see if I can come up with someone to do it. April 9, 2012 Civil Defense p.7 Ms.Yukimura: I am just aware of how important these committees are or these teams are when communication is cut off and there is mobility of really being in touch with the central body or even when you can be in touch how important it is to have people in the outline areas who have been trained, who know where the resources are, who know how to contact, who can help be leaders in the time of emergency. I just think it is a good insurance policy to develop these things and just wondered where we were on it. Mr. Daligdig: I totally agree and let me look into that and I will not make any promises, because we do not make any promises right but I will push it forward. Ms.Yukimura: Okay, yes, we will look forward maybe in the next budget to hear or even before then to maybe hear out in the public your recruiting program. I know it is not easy people come and go and yet we have a probably more stable community than most places in the Country and there are people who are willing to help especially if trained. My other question is • there were concerns that the website notification had no emergency power during the last emergency, just wondered if there was something being done with that, I have no idea how complex or how simple that is but it seems that we referred people to the website and then when the power was down, they were not able to access it. Maybe the responses always just go to the radio then but that is my question. Mr. Daligdig: Can I... Chair Furfaro: We can send the question over to you if you would like but please respond to us and I set a new standard here, responses are required within forty-eight (48) hours, we do not go pass the second work week. Ms.Yukimura: I still have a couple more questions but if others have. Mr. Bynum: I would like to follow up on the CERTs and I know that you haven't been here all that long but I believe still housed in the Fire Department and so I hope the Fire Department gives responsible and straight forward answers. CERTs started, it was very active I was attending events, people were getting training, they were being recognized, they were getting certificates, they were anxious to support the community, they was a volunteer coordinator. We know the history of this, there was a kaleo program, one of those people got stationed in the Fire Department and they were carrying on a lot of the activities that occurred including graffiti busters and park volunteers and CERT and they were housed in the Fire Department, that person was not retained by the current Administration and CERT was assigned to a different Fire person. Those events I think just virtually stopped, I do not get invited to them anymore, and I do not know what trainings are happening. I talked to the Fire Chief several months ago that our website, our County website still referred people to Catherine who did not even exist anymore for like the last two (2) years. The website was not up to date, you try to call this person and there will be a blank line, if we abandoned CERT, let us just say that, let us be honest about it... like we are still providing support to it when we are not. I know some of the volunteers are very frustrated, even if we did not have very targeted things for those volunteers to do, having the (inaudible) of trained people that do CPR, disaster preparedness and readiness in the community was a real benefit and they were anxious to help, they were asking please when you have a big event, let us do traffic control, let us help with communication, find a role for us and so I will be very sad to see all of that good work fade away, but let us be straight up... CERT is not a priority, it is not being staffed, tell us. If it is at a reduced thing, tell us. Certainly something I want straight forward answers on during this budget process. Chair Furfaro: Mr. Heu is raising his hand. April 9, 2012 Civil Defense p.8 GARY HEU, MANAGING DIRECTOR: Good morning Councilmembers, Chair, for the record Gary Heu. I just wanted to pop up and say I hear your concerns Councilmember Bynum and I think there were good questions raised by Vice Chair Yukimura. In our recent after action review of the storms that we had in March, the CERTS teams were an issue that was raised and primarily centered around the fact that what we found during the after action review was that there were two (2) areas that the issue was raised. Number one (1) was that it appeared that the America Red Cross to the nature of the storm and the current levels of staffing, you understand they are a primarily volunteer organization was unable to fully support the number of shelters that we were intending to proposing to open. Another issue that came up was when we had different areas within the island that became isolated, first it was Hanalei and then you had the section between Kalihiwai Bridge and Hanalei isolated at Kalihiwai Bridge, became apparent that what we have imbedded in g g e a pp those communities were CERT teams. As you identified CERT teams that had previously been trained and there was some very enthusiastic volunteers staffing those team, so again the issue was raised in the after action review of what about CERT teams and as you identified these people were trained and if we needed additional training relative to having them assist in supplementing or actually manning shelters, why wouldn't that be an appropriate use of those individuals if in fact that is something they were trained and prepared to do. What I can commit to you is that the Administration is fully supportive in looking at a more robust role that CERT teams can play. Again in any given response, the County's resources are limited whether it is Police, Fire, Public Works... so anytime that we can engage citizen volunteers in such activities like you mentioned some appropriate levels of traffic control and/or as I said possibility of using them to help man holding areas or shelters, certainly I think we want to take a look at that and one thing I heard thrown out as a potential obstacle in past is liability and that sort of thing. Well if it is a liability issue, let us work with the County Attorney's Office and figure out how it is that we can provide adequate protection to the County as well as the citizens and volunteers. I certainly do not think that should be a road block for us, we should find a way to get around that. I just wanted to share that with you this morning that that again it was an issue that was raised during the after action review and that is something that is going to be getting a lot more attention based on the fact that they are (inaudible)resource in the communities. Chair Furfaro: I wanted to let you know that on Friday we agree on a procedure of two (2) questions per Councilmember as we go around the table and we will keep it up until we exhaust time but you still have the floor. Mr. Bynum: During these recent weather episodes, were CERT people activated, is there a mechanism to active them? What is the status and I do not expect all these answers now but it is certainly something I want to hear from the Fire Department. Like I said I told the Chief months ago, your website is none functioning, it has misinformation—I gave him a heads up, I really want to know if you really have these people but there is no mechanism to actually engage in them, it is kind of meaningless. You cannot run a program without the resources and connectivity because I used to attend their events. I do not see any evidence of that any longer, perhaps I am wrong but maybe just that one (1) question was they activated during the weather events when the place was isolated? Mr. Heu: They were none activated. Mr. Bynum: Heads up on the Fire Department comes—I would like a more robust and what are we going to do with this resource? It is similar questions for the Parks Department about Adopt-A-Park, we had volunteers, and we had budgeting for recognition, signage at Parks to recognize those many groups that do volunteer. I do not know that it is that organized, I do not know what came of those things. April 9, 2012 Civil Defense p.9 Mr. Heu: I am not prepared to speak about the Parks stuff and I do not think you want to discuss Parks. Mr. Bynum: I was just using it as an example. Mr. Heu: However, what I would say I think your questions are right on point and I would tend to agree that we need to find an appropriate level of participations for these citizens volunteers in their local communities during these types of activations. If we cannot find a way to make that happened, and then you are correct, we should walk away from it but I do not think walking away from it is a place that we want to be at this point in time. Mr. Bynum: Thank you. Mr. Heu: Hopefully we will try to find a way to make it happen. Chair Furfaro: Is it fair and reasonable for us to perhaps plan to schedule an update on CERTs within the next forty-five (45) days? Mr. Heu: Sure, I think that is fair. Mr. Chang: I apologize I got here a little late but did want to clarify the acronym CERTs, Community, Emergency, Response, Team because I think a lot of people out there are wondering what are we talking about with CERT. I remember when the in section first started with Battalion Chief Bob Cayden that was taking care of this. I remember specifically the pride within the community, it was like to be on the CERT team, the community emergency response team, it was just like a no brainer when the community realized something was right around the corner, they were able to organize and deploy and I think the point as how important this response team is for all of Kaua`i. During that time and era the pride was huge and it was very well organized and it was like if someone knew something was coming, they were already ready to response. I wanted to follow-up on the alarms because if my mind serves me correctly, during the time of budget last year, at around that same time where we talked about the alarms not working that we identified various places in Kapa'a Town or different parts of the island soon thereafter or it might have been the same week, the State people were on island and we were going to piggy back with our Civil Defense people, I do not know if the Public Works — but we were going to watch them check the alarms so we would know how to do it. We were going to train at that point and I guess at that point, I really never thought about any kind of follow up so I am just going to ask that question, what actually happened because it was right during budget that we had the State people that were going to come to the alarms that our County people were going to follow them, so that they could learn and train to see which one were working. Some of them I think were solar and you could not—even if it was blinking, some of them were not working. It looked like it was working from the ground but then we realize it was not working so it did not matter if something was flashing, it never worked. That is my follow up question. Mr. Kuali`i: Aloha and Mahalo Teddy and Carleen. Whenever I am looking at the budget and see the word other, I usually want to usually end up wanting to know more. When Councilmember Rapozo asked about the other rentals and you talked about all the radio sites leases and all that that gave me the information and detail I wanted there. I too agree that we need to not have this recurring and that work out arrangements where we are not spending so much money for this public good that everybody benefits from including the people who are leasing the properties to us. On the other item though on other services there was some talk about the sirens maintenance and repair and when I look at that other services, I see a breakdown and I see contractual services for siren maintenance slash repair nine thousand one hundred and nine dollars, is that line item continue with contractual services or is that a separate line item? April 9, 2012 Civil Defense p.10 Ms.Abalos: (inaudible) Mr. Kuali`i: No but the detail under other services, I see three (3) what looks like three (3) different items. So one (1) of them contractual services for siren maintenance slash repair nine thousand one hundred and nine is the second item (inaudible) and there are no dollars accounted there? Ms.Abalos: That is all one item. Mr. Kuali`i: Okay. The next item says connect city fifty-five thousand, what is that? Ms.Abalos: That is the automated emergency call to everyone that we use. II Mr. Kuali`i: So the automated emergency call actually takes up most of that other services line item? Ms.Abalos: Yes. Mr. Kuali`i: So even though the siren maintenance and repair is a priority and something that needs to happen, there is only nine thousand dollars put in that line item. How much was put there for that purpose last year and how was it spent? Ms.Abalos: We had a little bit more, we cut back down. Usually we can use the County Public Works personnel and that is why we do not need to go outside to a private contractor to fix our sirens and we can call the State Civil Defense people to come down. Unfortunately this year we might tap into that a little bit more because the County electricians, they did not want to do a replacement of batteries. Mr. Kuali`i: That would be interesting to know that there is actually a job that you are responsible for getting done and that you actually have some of these moneys here for contractual services when you have to but that you actually are utilizing the services of another department to get it done. Somewhere in your narrative, you should tell us about things like that. The last thing for now is about positions, I saw a in the vacant positions report from the Department of Personnel Services that there is a Civil Defense position 9402 for a grants specialist two (2) and it is a contract position I guess, the effected date was 12/16/2010, so it is showing as vacant and it is showing as State funded, that I do not see it in your budget at all, is it that since that time of December 16, 2010 when the positions was vacant, is there any State grant funding to fund it? Do you anticipate any going forward? Mr. Daligdig: In fact we anticipate the opposite, the budget is getting smaller. We do not anticipate filling that position at all. Mr. Kuali`i: I think the interesting thing going forward it would be helpful to us when we are wanting to know about each and every position because it is our responsibility to budget those—provide those funding for those positions and to know how we are spending the money on positions. In fact if a position does not get granted and you are not applying for any grants then maybe you can report to Human Resources that it is closed or some kind of status that says it is not going to be in our budget, we are not applying for any grants and yet I thought I heard you say that you needed that kind of help. I guess it is a funding matter. April 9, 2012 Civil Defense p.11 Chair Furfaro: So we all understand that there are two (2) parts of that question, the needs for a grant writer that at one time was part of Police, Fire and Civil Defense and the second part if we are not getting any subsidies from the State, let us make a decision to get it off the radar screen with Personnel. Ms. Nakamura: Good morning Ted and Carleen. I have some questions and some have already been asked and so I am going to move on, in you last year's strategic plan, one of your upcoming initiatives was to update tsunami evacuation for the island and I noticed that it is on this year's initiative as well, I want to know what was done last year and what do you plan to do this year? Mr. Daligdig: It is being done in fact the entire State is being updated, Kaua`i being the last. I think that is positive for us because we are (inaudible) island's, some of the problems that they are having. Our update should come out by this July and preliminary indication show however that the changes would be very minimum for what you already see. (inaudible) that information will be coming out sometime in July. Ms. Nakamura: It maps the tsunami inundation areas? Mr. Daligdig: Yes. Ms. Nakamura: But does it also get into once you know what are the procedures? Mr. Daligdig: I also have an initiative that I call my evacuations route initiative and it is an initiative whereby once we establish the inundation areas, we now have an evacuation area which is usually larger than the inundation area. What we are finding out is that local people know that to head to high ground but the problems that we face is our visitors do not know that. I have an initiative in place right now, we are in coordination with the State, Public Works, the KPD where we actually going to mark the evacuation routes. In fact, I was worried about budgeting and I was able to get all the signage which I already have in my office. We are waiting for the approval to get the poles paid for and the entire initiative, the only cost to us would be Public Works would have to help us put it up once the actual locations and roads are identified in coordination with the Police Department road blocks and so forth. It is an initiative that I take personal responsibility because I think it is very important that we have people up and safe. Ms. Nakamura: My other question is that that is number five (5) on your upcoming initiatives, marking of community evacuation route with standard State Civil Defense signs. So you are saying you have the funding for signs in place? Mr. Daligdig: Yes. I already have the signs. Ms. Nakamura: You have the signs? Mr. Daligdig: Yes, they came in about a week and a half ago and now we have been told that the poles can be funded also through the State, so it is at low cost to the County which I am very happy. Initially the project was seventy thousand dollars, so I am saving seventy thousand dollars, how happy can you be? So far the work that has been working on this initiative has been very responsive and I hope to have it all in by the end of the year. Ms. Nakamura: This is using in-house Public Works staff to then install the signs? April 9, 2012 Civil Defense p.12 Mr. Daligdig: Yes. Ms. Nakamura: The actual protocols with the different hotels, as you said the visitors, the residents know where to go, it is the visitors and the coordination with the major hotels where the managers sometimes change over time and may not know what is going on, so what is the protocol that you have to continually update the visitor industry representatives? Mr. Daligdig: Couple of weeks ago, we had a real good meeting with the north side hotel industry and I felt that it was so positive that I am working on a plan to get the entire island especially the south side of the island involved in that kind of planning. So that there is a continuity of sharing information as new managers come and go, you are right what I am seeing is that with the change of new managers, there is lost information, there is no continuity. I am hoping to reestablish that and make it part of my evacuation plan. Ms. Nakamura: Is that part of the existing evacuation plan protocol? Or is it in writing anywhere? Chair Furfaro: Ted, maybe you want me to answer that, okay, because I am very disappointed with your statement. Civil Defense is supposed to meet quarterly with the Hotel Association Security Departments. There are four (4) Christmas trees that are set up for the north shore, Wailua-Kapa`a, the Kalapaki area, and for Po`ipu. They in fact get one (1) call from Civil Defense, maybe that is where the breakdown is and those security departments then relate to the Christmas tree and each resort is then responsible to call to other destinations. I think Nadine commented the fact of the matter is the General Manager are consistently changing but the security chiefs are not. I participated in that discussion out at the north shore and the two (2) General Managers that were present, you have got to put some responsibility on them or you have got to reactivate what is already in place for that. I can speak on that as past Chairman of the Hotel Association twice over a thirty-eight (38) year period. The system existed, you have to make about four (4) calls and then they call downward on the Christmas tree. The people that you need to reach out are not the General Managers, it is their Security Departments. I tell you one of the good leads for you is the gentleman that just got appointed, he was at the Hyatt, he is now on our Police Commission and he would be an excellent person for you to start and recreate that but it does exist. Ms. Nakamura: Maybe it would be helpful in the upcoming year to have some sort of system reinitiated if it already exist or some sort of training or something that I think shows that the system is working. Rather than wait for an event to happened, seems like you do a lot of good training for different types of emergencies and this might be something to put on the radar because we know it is a weakness. Chair Furfaro: I do agree with you going out with the north shore group was a good start but I think some of the initiative needs to be followed up through Civil Defense and the Security group. Ms.Yukimura: I would like to know the status of the upgrade of the eight hundred megahertz system, I think it has a different name now but I know Elton in your office has been part of a cross agency team that is working on it. It is very critical because it is the communication link for all emergency responders and I know there was a big — it has come of age and we need to make this big jump. Where are we on it and if you do not have your resource people here right now, we will follow up with a question but it is a pressing question for me and I think for other Councilmembers as well. Without it, you cannot respond effectively to emergency. Mr. Daligdig: Thank you for the question. Because it is (inaudible) I would prefer to answer the question in writing to you so that you would have... I can assure you that the April 9, 2012 Civil Defense p.13 communication system is being upgraded and it has been worked on and at this moment, I do not anticipate any problems. Ms.Yukimura: Okay then you will be able to give us a time table of costing where we are going to get the funding from—that kind of thing so we know it is going forward? Mr. Daligdig: Yes. It is probably something more for the IT Department to answer. Although Elton is the lead person for us, the IT department is really the ones that are taking the lead on the project. Ms.Yukimura: That is fine except that to me it is a core piece of Civil Defense puzzle, I am assuming that you folks are at minimum monitoring it. Mr. Daligdig: Yes. Ms.Yukimura: And just making sure that it is going to be happening so that you can transmit that information even though it is from IT. At some point we can have it as a briefing in Committee after budget but for now at least to give us an overview of its status. Mr. Daligdig: Okay, can do. Ms.Yukimura: My second question is on your pie charts, on page three (3)—I am sorry it is not self evident to me what the light blue wedge stands for. Ms.Abalos: That was the equipment. Ms.Yukimura: Okay. Your salaries and wages have gone up from sixty-nine percent of your budget to seventy-two percent of your budget? Ms. Abalos: Yes and mostly due to the benefits. The wages stayed the same but the benefits increased. Ms.Yukimura: Okay. Do you know what is causing that benefits increase, it is happening across the board... nobody knows but everyone is having to pay... Chair Furfaro: We have the background on that which when we had the Personnel Human Resource Department over the State, we can pull out our narrative but I was of the impression that the testimony that they gave us here was shared with all the department heads. I will dig it out again and I will share it with everyone. Ms.Yukimura: Yes, thank you. It is just coming up consistently. Mr. Bynum: Ted, I do not want to beat a dead horse but I just looked at the County's website for CERT, it talks about the training schedule for 2008 and 2009. In 2008 and 2009, we were having seven (7) to ten (10) trainings a year teaching citizens basic first aid, CPR right now there is none and even though I alerted this months ago, the out of dated website is still on. Chair Furfaro: Hopefully it is updated by the time we call you back in forty- five days because it will be an agenda item in Mr. Rapozo's Committee. April 9, 2012 Civil Defense p.14 Mr. Rapozo: We do have a deferred item in my Committee for the storm update, so we can address a lot of those concerns there but Teddy, I want to go back to the question KipuKai asked about the grant. That State funded grant position is still vacant? Mr. Daligdig: Yes, it is still vacant because we do not have the funding to fill the position. Mr. Rapozo: What do you mean we do not have the funding? Mr. Daligdig: We do not have the State grant who will allow us to use to fund that particular position. Mr. Rapozo: So it is not State funded anymore? Mr. Daligdig: It is not State funded. Mr. Rapozo: We do not have the money? Mr. Daligdig: No. Mr. Rapozo: And what was the funding for that position? What does that position call for, how much money? Mr. Daligdig: I am not sure because I was not here. Ms.Abalos: I believe it was about fifty-five thousand annually, plus benefits though. Mr. Rapozo: Well I... Ms.Abalos: There is a grant specialist which was grant funded and the grant coordinator which was County funded, there were two (2) different positions. Mr. Rapozo: Right and the Administration took the grant coordinator position to create this new manager position but we were assured on this table that grants would have been addressed and I see that is one of your challenges — meeting the obligation of all grants but then in your successes your are showing that you are supporting the grant purchases for the Police and the Fire so who is doing your grant work now? Have any grants been jeopardize because of this, have we lost any grants? Mr. Daligdig: We have not lost any grants, we have lost the amount of the grants. We have one (1) person who re-designated from a grant specialist position to a grants coordinator. Mr. Rapozo: In Civil Defense? Mr. Daligdig: In Civil Defense. It is a Federally funded position that I talked about earlier. Mr. Rapozo: So, how many people in your office right now? Mr. Daligdig: There is me, plus four (4). April 9, 2012 Civil Defense p.15 Ms.Abalos: Four (4)permanent and one (1) contract. Mr. Rapozo: So there is the Executive Session to the Mayor and then there is an Emergency Management Officer, there is a plans and operations officer and then there is a public safety services security that is what is on the budget Mr. Daligdig: Yes. Mr. Rapozo: Do you have anyone else? Mr. Daligdig: We have one (1)person that is paid by grants. Mr. Rapozo: Federal grants? Mr. Daligdig: Federal grants, one hundred percent. Mr. Rapozo: And that person does the grants? Mr. Daligdig: Yes. Mr. Rapozo: So do you have the coverage for all the grants? Mr. Daligdig: Right now, that is what we did, we arranged it so that we do have the coverage. Mr. Rapozo: Okay. Is it still a challenge? Mr. Daligdig: It was up until two (2) months ago when I reallocated a position and responsibilities. I did not make the adjustments on the slides that you have and I apologize for that. Mr. Rapozo: No problem. I just assumed that the State position failed and the information we get from Personnel is so old that I just had assumed that we had failed that position but if that funding from the State, when did that funding stop? Ms.Abalos: Actually it was filled by Gregg Morishige and he had to take a break due to not having the six month break after retirement. Mr. Rapozo: Correct. Ms.Abalos: So he did vacant the position but we could not fill again because the Homeland Security Grants that has been allowed to Kaua`i County has been decreasing every year we have been getting a reduction in that Homeland Security Grant. Because of course of federal, the federal government has been decreasing the applications to all the State. Mr. Rapozo: So the State funded position is that a Homeland Security Grant that funnels through the State? Mr. Daligdig: Yes. Mr. Rapozo: So that got cut? Mr. Daligdig: Yes. April 9, 2012 Civil Defense p.16 Ms.Abalos: Well we did not have enough money. Mr. Daligdig: It was reduced. Ms.Abalos: We could not pay the two (2)positions. Mr. Rapozo: I guess I have to look at the - I do not know because I am really confused... so we get two (2) grant funded positions, one (1) from the federal and one (1) from the state? Ms.Abalos: No, they are all federal. Mr. Daligdig: They are all federal but I refer to them as state because of it is the federal funds that come through the state to us. Mr. Rapozo: Right, okay. Mr. Daligdig: So we refer to them as State position but actually with federal moneys. Mr. Rapozo: Okay, I understand that. But you said we have one (1)person there now that gets funded by a federal grant? Mr. Daligdig: Yes. Chair Furfaro: Let us have some clarity — and that federal grant comes directly to us? Ms.Abalos: Through the State. Chair Furfaro: Through the State again, yes. Mr. Rapozo: Okay. Let me get a paper so I can draw this picture. There was a time where and normally we do not use name but you mentioned Murashige — did you have two (2)positions? Ms.Abalos: We had two (2) at that time. Mr. Rapozo: Okay, so I am going to put number one (1) and number two (2)because... Ms.Abalos: And both paid by Homeland Security Funds. Mr. Rapozo: Right, so this is Homeland Security Funds and you had one (1)person in the first position and one (1)in the second position. Ms.Abalos: Yes. Mr. Rapozo: That funding and let us just say that this position is "A" and he left because of the change in the law that said you need a six month break from retirement — okay, so now he leaves—what happened to that position? April 9, 2012 Civil Defense p.17 Ms.Abalos: It is vacant and I do not think we can fill it. Mr. Rapozo: You cannot fill it, why can't you fill it? Ms.Abalos: Because of lack of funding. Initially we had two (2) and a quarter million dollars coming in from Homeland Security Grants and that got reduced to nine hundred something thousand of which they took a portion for (inaudible) so we actually coming to us was sixty hundred thousand and I think we are going to be reducing even further. Mr. Rapozo: So the grant funds that we get from Homeland Security is not position specific? Ms.Abalos: No. Mr. Rapozo: It is not for—use this money for positions... Mr. Daligdig: No. Mr. Rapozo: So they give you the money and you decide how you want to spend it? Mr. Daligdig: There is a form that allows to spend for certain things and they are identified, so you cannot spend it on anything that you want. Positions for example, certain percentage of the grant can be spent towards a position. Mr. Rapozo: Okay. So the amount of the total grant was reduced? So there is no money available to hire that person again, that contract person? Is that what you are saying? Mr. Daligdig: Yes. Mr. Rapozo: Okay. I will follow up on some written questions. Chair Furfaro: We would like to have the questions going over today, so that they can turn it around of business on Wednesday. Ms.Yukimura: You have a pretty high level emergency management officer, is there a problem with him overseeing grants? Mr. Daligdig: Part of his responsibilities is to oversee and manage the grants. Ms.Yukimura: So he does have grant responsibilities? Mr. Daligdig: Yes. Ms.Yukimura: So you said you had a problem with grant writing but now with the—you have an emergency management grant coordinator who is federally funded. Mr. Daligdig: Yes. Ms.Yukimura: So between the two (2) of them now they can handle the grants? April 9, 2012 Civil Defense p.18 Mr. Daligdig: We are currently organized so that we are able to manage the grants, the other person mostly tracks how the grant is spent, provides the reporting to the State on how it is spent. The emergency management officer manages the grant (inaudible) how Police, Fire uses the money and what they can use this for. Ms.Yukimura: But within the Police and Fire department's they are managing their grants too. Mr. Daligdig: They are but ultimately Civil Defense is responsible for the actual management of the grant. Ms.Yukimura: Well and that is in the monitoring and accounting of the grant, right? So doesn't your grants manager do that? The reports come back, he or she has to make the reports back to the federal agency that has given the grant. Mr. Daligdig: Correct. Ms.Yukimura: So isn't there that monitoring process anyway — the accountability process? Mr. Daligdig: Yes, if you say it that way, yes. She is responsible for monitoring the grants in that respect. Ms.Yukimura: Okay and then you also have to have grant writers or people writing up grants? Mr. Daligdig: Currently we do not have a grant writer. Ms.Yukimura: And your emergency manager officer cannot writes grants? Mr. Daligdig: (inaudible) I do not think he is really qualified to write for specific grants. We were told that we can ask for assistance from management if we needed to apply for specific grants that are out there that we can go after. Ms.Yukimura: Okay. There was also a person in the County that was helping people write grants. Now she has become part of the budget team, so is there still that function in the County to assist in grant writing? Mr. Daligdig: As far as I am concerned, as far as I know, yes. If we need to have a grant written, someone from my section will go that person and will assist us in writing for that grant. Ms.Yukimura: Okay. Are you saying that your basic issues with grants are pretty much being addressed or that they are still a challenge? Mr. Daligdig: (inaudible) has been addressed. Challenges are that we would like to be able to do it ourselves but that is not possible, so we will continue to work with management and do the best we can with that person that we have up there to assist us. Ms.Yukimura: Okay. April 9, 2012 Civil Defense p.19 Chair Furfaro: Members, we were to go to 10:30 with Civil Defense but I am going to take it another ten minutes and just adjust our schedule to be able to go from a later time till 12:30 with the Humane Society. Please have your questions focused, we have got about ten more minutes here. Teddy, I just want to say that it is the position of this Council and it has been for several years to take advantage of grants, period. So make sure you have an understanding, so make sure you have an understanding what kind of kokua you can get because we have to look to found money. Ms. Nakamura: Just a follow up to Councilwoman Yukimura questions, so you have asked management for assisting in grant writing? Mr. Daligdig: I have not asked them right now but they have offered that services to us. Ms. Nakamura: And who from the management would assist Civil Defense with grant writing, if that is indeed a need? Mr. Daligdig: They gave me the person name, it was a female, I do not have her name. Chair Furfaro: It is Ann. Ann has gone from grant writing to the new budget team. That is the person you want to be talking to. Ms. Nakamura: One of the other challenges that you mentioned here is number four (4) on page — number two (2) department of Personnel lack of experience with the upkeep of our communication systems. This is a serious discrepancy that is being addressed by management. Can you explain this a little bit more about part of the communication system that need to be worked on. Mr. Daligdig: Yes. Councilmember Yukimura mentioned this earlier that communication is very important — and it is. In the Civil Defense Department, we do not have anyone that specifically trained to manage communication, by that I mean they are trained to know the system inside out. Yet we are responsible to ensure this continuous (inaudible) County. There is a plan right now that is being worked on by management to get any individual identified to be a person that can work on the system as we have wanted for a long time. I do not know what the plans are right now and I am not ready to answer any questions as who that person might be or who the plan might include. Chair Furfaro: Wally are you going to answer that question? WALLY REZENTES, JR., DIRECTOR OF FINANCE: I just wanted to mentioned that right now the telecommunications officer resides in the Department of Finance and our intention is to move forward with the hiring of a County Telecommunications Officer. We are in the recruitment mode right, our current employee is out on extended sick leave and will be retiring and so we are in a transition period right now but we intend and have requested funding and you will see it in the IT budget presentation a request for added funding for the telecommunications office position. We are also looking at the possibility in the May submittal to transition or transfer the position over to the Civil Defense operation to hopefully fill the gap. A lot of what the telecommunications officer does is public safety related and we felt that an appropriate home would be Civil Defense because they have the total outlook of public safety and communications. } April 9, 2012 Civil Defense p.20 Ms. Nakamura: Thank you for that explanation Wally. Just as a follow up since you are here, the previous question had to do with Anne Wooten moving over to budget and who will be doing grant applications to assist Civil Defense? Mr. Rezentes: Well Anne's role is not so much as seeking grants. Anne help manage grants and helps make sure we are dotting our "I" and crossing our "T" relative to grant compliancy. She works hand in hand with all the department personnel that have the specific knowledge within their own operations. That is basically her role in the past—it also has expanded to include a budgetary hat with our new budget team member. The intention would not to move Anne to Civil Defense, her role again is different in that it is not as much as a go out and seek grants although she helps facilitate that process, it is more ensuring that it is compliant, making sure that we are setting up the grants appropriately with the approvals from federal state and other agencies. Again working hand and hand with the individual accountants and department personnel that manage grants day to day. Chair Furfaro: Wally, can I summarize that if there are implied warranties for this equipment that Ted is pointing out to us that we are a little short of, we would in fact extend some of these warranties for relatively new equipment? Mr. Rezentes: Yes, sure. As much as we can push on our contractors, we do so. Usually that involves the negotiation in an RFP type of setting to ensure that one (1) whatever we get works and all the bugs are weeded out before we cut them loose, as well as we carry maintenance contracts with outside venders to ensure that the equipment is functioning as they should. Chair Furfaro: I just wanted to make sure that we are on the same page with the warranties. We have about five (5) more minutes before we take a break, Mr. Bynum, you have the floor. Mr. Bynum: Now I am confused and I will now request that—two (2) years Agency o we had the Civil Defense A which consisted of what... versus—and I would like to see this g Y in writing — what our Civil Defense Agency consisted of what personnel who are assigned to what projects versus our Civil Defense Agency now. Because we had a grants coordinator who was moved to a different position and that position was converted to another executive level person, and now I am hearing that there is now—that Anne Wooten did not generate grants, she managed them. Who generates the grants now? Who is fulfilling those roles, I am not clear, so if somebody can compare the agency two (2)years ago, with the agency now. Mr. Rezentes: Not wanting to talk for Ted, I know that the department — Civil Defense has had a team approach to grant applications and process with more than one team member there. I have sat in numerous meetings where Civil Defense staff two (2) or three (3) of them have facilitated a different appoints and time in grant processes working with federal agencies in the application process working with State Civil Defense employees as well. Again, it is I think more of a team approach as we speak and Ted can probably enlighten you a little more on how it has been handled since the positions have moved around. Mr. Bynum: We are coming to the end of the time, I have listened all morning and so if somebody could in writing just say Civil Defense Agency two (2)years ago was like this, we made significant changes in the structure and personnel. What were the issues that we needed additional personnel? Mr. Rezentes: How duties and responsibilities shifted and all of that... April 9, 2012 Civil Defense p.21 Mr. Bynum: Yes. But also why did we add personnel and change positions — what was the need two (2) years ago and how did we address that need under the new structure. I do not need an answer now but I appreciate an answer in writing because I have listened the whole morning and I do not understand that. Chair Furfaro: Ted on that note and on that particular question, I will give you till the end of the week to make the comparisons but all other questions that have been posed today — 4:30 on Wednesday, we would like to hear, you have till the end of the week to show the variances between the department two (2)years ago and the department now. Mr. Heu: Thank you Chair, for the record again Gary Heu. I just wanted to address one (1) issue that was raised right out of the gate this morning. Sorry I was not playing close enough attention, there was some discussion about the relocation of the alternate EOC site from its previously identified spot in your basement to the newly renovated fire head quarters. First of all I want to apologize if we as an Administration have not communicated effectively over the past couple of years relative to the development of the alternative EOC site as part of the fire build out. That was one of the reasons that we had expressed for a delay, we had a much shorter interval to complete construction but as we were developing the fire space, it was identified that we needed to find a more appropriate location for the alternate EOC and there was also a need for an alternate dispatch. As you know in our IT area there is a (inaudible) alternate dispatch center that has been used in the past for the purpose. Now both those functions are going to be co-located at the new fire head quarters. I know Councilmember Rapozo was very alarmed that if there was a need for an alternate EOC today, what would we do? The fact of the matter is that we do have space as I said over at the new fire head quarters, there is emergency power available. We have our hand held radios that are available, we have tables, chairs, mapping at that location as well as mobile communications with our communications van which includes internet access as well as satellite communications. If something were to happen today and we needed to redeploy the EOC functions, we would have a place to go and capability to manage that. It should be noted and in a follow up response we can provide a status of a particular grant that was actually applied for to fully equipped that alternate EOC and the alternate dispatch. So we can follow up on a communication to you what that status of that grant application is. Chair Furfaro: We look forward to that Gary but in the mean time though I know there was not any discussion about the redundancy in this building and that should be a new topic for the fact that things with Mother Nature happens on Wednesday too, so we need to have some redundancy here on those days of the week. I will end it at that. Mr. Chang: Gary, just for the members of the audience and the viewing audience, can ou specify what is EOC? Y p Y Mr. Heu: Emergency Operation Center. There being no objections, the rules were suspended. MAKA'ALA KAAUMOANA: On behalf of the Hanalei Watershed Hui, I just wanted to provide a couple of comments specifically to this budget item related to the work that is going on in Hanalei. First of all, I wanted to mahalo and commend Mr. Daligdig for his corporation with our community as we processed a larger community resiliency plan which includes a disaster preparedness program. We have been on this contract and grant for two (2) years, we currently applying for three (3) more large grants as usual Hanalei will just do our own. It included a door to door survey of the people who were in Hanalei last summer and included responses from some of our regular visitors who all seem to think that they know exactly what to do and where to go. That is comforting but they were wrong. The process is ongoing and I am not here today to describe that April 9, 2012 Civil Defense p.22 process but I want to be sure that this Council knew that our researcher and myself and some of our key information people from the community have met with all of the Administration Heads and very recently with Ted and his corporation is forthcoming and very appreciated and will matter. We did a debrief in Hanalei after the recent floods and I would like to make a small correction to the record and that it that it was not just Hanalei and Kalihiwai that was isolated, Manoa ford isolated everyone to the west of it — Ha`ena Beach Park. Lumaha`i was isolated between Ha`ena and Lumaha`i because of mountains slid and Waikoko had a major slide, so there was a pocket between Lumaha`i and Waikoko, there was a pocket between obviously between Waikoko and Hanalei because Hanalei road closed. There was a pocket from Hanalei Bridge to Princeville and for the first time every Princeville to Kilauea was isolated and then please do not forget the covert in Kilauea which nobody can believe how fast that alternate route was put in and how well that work went and we commend all of our partners in that. But in fact, there was another pocket and I am just not aware of the pockets in the other parts of the island, that is not where I stick my nose. It was a unique situation and there were some unique responses and one was Facebook. There were seven or eight of us that stayed home but had capacity to at least provide that communication. The problem that we have is not with our hotels, the problem we have is with our TVRs. The problem we have is with all the people with all the condos and homes and even the timeshare folks, that is the problems. The hotels are terrific at all these stuff. There is a discussion in Hanalei about revamping our CERT we are one of the communities that did not step up with a lot of the volunteers that wanted to do it. Two (2) reasons, one (1) we think we know it already and we probably do not and two (2) as a community going through some other processes that will booster and support CERT but we do not identify CERT as a distinct need right now, we see it as part of a larger program and it is probably my fault because I have been promoting this larger, more integrated effort. The Red Cross was in communication with me, it turns out that our researcher is a very highly disaster response and she was in O`ahu and they were responding as best they could from Oahu, they were flown over to be a part of the problem. What did become part of the problem after the road opened was something that we need as policy, we need for the visitors who have a car and a map and a board to stay home instead of come to see what happened. I wanted to take this opportunity to say that when the police first opened the Hanalei road they let everybody out and nobody in, yes, but when they finally reopened it, they said they did not have the capacity to limit people reopening to residence or people who could show that they were staying in a TVR in Hanalei, that would have been okay if they wanted to go back to where they were staying. Chair Furfaro: Maka'ala, we are going to have a separate discussion item at the request of Mr. Rapozo, we are a little bit behind and I limited testimony to three (3) minutes. Thank you for pointing out amount the stream, the fortunate part we had three (3) county workers that live on that side as they go to kokua and I think the point you made about the TVRs is something that need to be pursued by the visitors bureau, I have asked Mr. Chang to do that, I concur with you about the hotels being a resource but more importantly I think the police did the right thing and only letting traffic exit from Hanalei and we will be on an agenda item on the 18 if you would like to participate again in Mr. Rapozo's Committee. The budget review was recessed at 10:50 a.m. April 9, 2012 Kaua`i Humane Society p.1 The departmental budget reviews reconvened on April 9, 2012 at 11:12 a.m., and proceeded as follows: Excused: Councilmember Tim Bynum HUMANE SOCIETY: Chair Furfaro: We are back in session and Ernie, I just want to say for future if you could remind the various department heads, it would be demonstrating a great tradition of aloha if the department that is being reviewed remained in the Chambers until we took all public testimony. I want to point out that listening is a very important skill to be shared in a communication. I was a little bit bothered that all three (3) individuals from Civil Defense left before people who offered testimony was able to speak. If you can just make a note of it of my expectation when we live aloha, we listen to both sides of the story. On that note, this is an addendum to the schedule for the Kaua`i Humane Society that I am sorry I did not pass out earlier to you but I had this discussion with Laura Wiley a while back and here are the addendums to that. There being no objections, the rules were suspended. LAURA WILEY: Aloha Council, what a pleasure to be here. For the record, I am Laura Wiley and I would like to introduce the lovely lady to my right. If I could clarify one (1) thing before we proceed. Many of you may know that I retired from the Humane Society Board of Directors in January after nineteen (19) years of service. I still remain there CPA and Financial Advisor on a volunteer basis and the Board has asked me to accompany Shannon here today and I am very happy to do so. I also want to say that I called each of you individually in September to tell you the good news that we had hired a new Executive Director and you extended your aloha and asked me to bring her to Council Chambers and that was our full intention when she arrived, she hit the ground running and has been going at hurricane paste. I do apologize that we did not get to see you earlier but I am very pleased that we are here this morning. Those of you that have gone through an Executive search know how time consuming and how challenging it is and I would just like to relay on behalf of the Board of Directors how thrilled and pleased we are with our choice and having said that, I will introduce Shannon Blizzard our Executive Director. SHANNON BLIZZARD, Executive Director—Humane Society: Good morning. Chair Furfaro: Who will start your presentation with some general overview of the goal and mission of the Kauai Humane Society? Ms. Wiley: I will go ahead and start and I have told Shannon that if she wants me to stop talking to give me the elbow. Of course we are a private independent none-profit organization; we are govern by a Board of Directors and also governed by many regulatory agencies of course. We are mission based and our mission is to ensure compassionate, informed care of all animals on Kaua`i and to promote the human-animal bond. We have been blessed to have a really good working relationship with the Administration and with the Council as most people know we do operate the shelter in Puhi and we have many programs that we are proud of. I think that today we probably want to focus on the animal care and control aspect of our job which is what you contract with us to do. Basically, I think as far as this year goes, Shannon brings with her multitude of experience in the animal welfare industry and a lot of it is leading edge and cutting edge and our main purpose for this session in particular was pretty much to let Shannon go through her first year and learn and absorb. When she came to our shelter she saw things that needed to be changed immediately and she did so but with the bigger picture, she's kind of just taken the let me get a year under my belt and then I will know more what to say. That is why we submitted our current budget April 9, 2012 Kaua`i Humane Society p.2 flat sort of speak, the same amount as what was requested last year. She can talk more about that and she will get more of a feel about what she proceeds things are. That is why for this budget hearing, we just decided to keep things the way they were last year. We do have a lot of changes that I suspect we will be talking about and hopefully can start talking about off season like in the fall before you guys are swamped with budget. Overall, we are very proud of the job that we do and the service that we provide to the community. We feel that we are a vital part of Kaua`i family life. We are very proud of our shelter, we have a terrific landlord, Grove Farm of course who has leased us the land and we built a beautiful facility. We feel that we operate smoothly and efficiently and put Kaua`i's animals and families for front. Anything that we can do to answer any questions, please feel free. Ms. Blizzard: Good morning again Council and thank you for having us here. To answer your question as Laura mentioned I came from the community of Phoenix that is very progressive in the industry that we are in which is animal welfare. That community is seeing an inflexed of about a hundred thousand homeless pets per year enter the shelter and system. I come from a back ground that has trained me to think about how do we save more lives and that is what I bring to Kaua`i Humane Society directly as our goal. This is not the same perhaps organization it was ten, fifteen or sixty years ago — we are celebrating our sixtieth year this year in serving Kaua`i families. The expectations of the organization such as ours have changed over the years and it is not just picking up stray dogs and housing them until someone comes to claim them and if they are not claimed then they are put to sleep or euthanized, that is not the expectation for our mission, that is not our expectation of ourselves and it certainly not the community that supports us with their donation and programs and services we offer, that is not their expectation either. It is so that we maintain the animal shelter and an adoption center and to answer the question directly, we are here to save more lives, we are here to improve the lives of companion pets in our community, protect all animals in our community and serve the people in our community that have pets and have animals with different programs and services that allow them to maintain a responsible relationship with their pets. I think you will see that coming in our initiatives and our program goals and our growth over the next few years, is that we are really aiming to raise the status of the shelter pet that they are not some damaged animal in a shelter that no one else wanted so why should we come down to adopt them and really increase the communities awareness about what it means to be responsible. Chair Furfaro: Can you broaden your definition of animal welfare? Ms. Blizzard: My definition of animal welfare and for Kaua`i Humane Society is addressing the issues of pet overpopulation by increased adoption, increasing our spay and neuter initiatives and increasing the amount of animals that went lost and strayed from their original owner are returned to their original owner. Increasing the opportunity for our community to have access to information and services that increase their ability to be responsible, meaning that they are kind and compassionate, that they are providing appropriate medical and nutritional needs for their pets, also that we are impacting the next generation of pet caregivers which is a big part of our mission as well. We would love to be —the Kauai Humane Society did not have a purpose sixty years down the road, the human component means that we would probably will have that but we really want to do what we can to impact the lives and animals in our community primarily focused on the companion animals. That means dogs, cats, and small animals. Chair Furfaro: I would like to know if you have any new thinking for our island community as it relates to our chicken population. Ms. Blizzard: Not specifically related to chickens. Again, our mission is really focused on the companion pet. The chicken population— that is not a companion pet. We do April 9, 2012 Kaua`i Humane Society p.3 try to provide a service of care for individuals who may bring in an injured chicken to our care but our focus is on the companion animals, I do not have a good solution for you on that topic. Chair Furfaro: I wanted to get a clear understanding as your definition of your mission focused on companion animals versus in many areas what is turned out to be a very difficult challenge in our community but I would say that if in the past people brought chickens to the Humane Society I understand the kokua there was to euthanize them — the humane in that sense, is that still an existing practice and is there a charge if that does happen? Ms. Blizzard: We have recently instituted a small fee because there are cost associated for us on the other end. The cost of veterinarian care and that includes solutions for humane euthanasia continue to rise just as business — the cost of business increases. We would really like to have an alternative for those people because the Humane Society is not an exterminator. We do offer euthanasia services but they are primarily targeted at families, people, responsible pet owners who are seeking end of life care and not in a community who is trying to rid itself of a problem pest. That just not what the Kauai Humane Society is mission driven to do. Chair Furfaro: Just so we are real clear I am just asking and the word I used was kokua on what many people see as pest in our community. Do we have any idea what the population is of chickens? Ms. Blizzard: I have no idea. Chair Furfaro: Wild chickens. Ms. Blizzard: Again our focus is primarily on the companion put so that is not something that we have engaged in counting or managing or trying to address as it does not impact our mission directly. Chair Furfaro: Okay. I had my two (2) questions this round and that is how we do it. We try and go round the table allowing members to at least ask two (2) questions and then rotate on. Mr. Chang and then Mr. Rapozo. Mr. Chang: Thank you, Shannon for being here. I remember I could never forget your name because you are Shannon Blizzard from Phoenix. I was going to ask you when you mentioned the programs and the services that the Humane Society provides, is it in the quarterly bulletin or is it on the website of the programs of the services you folks provide? Ms. Blizzard: We have a very extensive website Kaua`iHumane.org that list our programs and services and just some general resources for pet owners or people wondering about certain topics related to companion pets. Programs include adoption, they include dog training, they include ways to interact with people that have pets and that need services. Obviously spay and neuter falls as a program for us, it is considered as a program because it addresses our mission but it is also a service that we provide. All of those things are listed on our website. I have a very active social media campaign too as another way to extending into educating the community at what we do and how they can find out more information about how we might be able to serve them. Mr. Chang: Is there any portion of the program—it is really sad when you go through any neighborhood and you see a dog on a chain and the dog can barely reach water or food and it is just evident and it is sad to see pretty much a pit because they can only... and I was just wondering if there is a program that maybe somebody can adopt the dog and walk the dog for the owner. When you see responsible dog owners on the multiuse path, everybody is happy. Everybody is happy and healthy and then when you see these —we had testimony here I remember April 9, 2012 Kauai Humane Society p.4 during the debate of responsible owners on the multiuse path, owners themselves that we just scared of their own dogs —they are in the cage, they need love or they are trying to communicate and then you just try to push the food in or water in and that is the show of love. I just wanted to see if there was kind of communication that we can give our owners out there an opportunity to really get out there, exercise but more importantly take care of the put as a responsible owner. Ms. Blizzard: We have program and again being new into the organization trying to adjust the priorities and how we will address some of those things called our Aloha for Y g adjust p g Animals Program. It was a program designed to take our vehicle and maybe a vet or a member of our team, volunteers and really try to canvas use the size of the island to our advantage to be able to really network within our community and spread word about responsible pet ownership. I will not quote the statute directly but my understanding is that it is legal in the State of Hawai`i to have a animal tethered on a chain as long its twice the length of its body. A small dog does not have to have a very long chain. It is part of the legislative issues that I think we are going to need as an agency to start to address. I had the pleasure of working with JoAnn on some topics but we are really trying to focus right now our attention spreading the word about who we are. When I came on I was not really sure what the community's perception of those programs and services were. We did launch a website that got a lot more information and we did launch more social media but it is really within the law that people can have that and I think that is where we need to address it. That does not make them responsible, that is not a definition that we can—but it is adequate which is the way the law reads. As you mentioned a dog is—especially dogs are highly social creatures and so we need to honor that part of them by providing them with the proper interaction and training, manners that really acclimate them into our family life and that is what we are seeking to do. Again, bringing the word companion back that this is a member of your household that you are dedicated to — it is mental and physical wellbeing. Mr. Chang: Thank you. Lastly, I do not have any more questions but can you just repeat the website? Ms. Blizzard: It is Kaua`iHumane.org. Mr. Rapozo: (Inaudible—mike off). Ms. Blizzard: I would just like to add to that — what you are saying is a definition of animal care taker, someone that maintains the animal shelter, the cleaning, the feeding, the enrichment, exercise, medication—the Humane Officers there are three (3) and they are badge and they are part of the contact that we carry with the County. They enforce the law, that pick up the stray dogs that respond, they have the training and the legal expertise in order to interpret and enforce those laws. I think by definition of the term animal caretaker, I could see if you were not clear on that why you would think we had much more staff to address those needs then we do actually have those trained and badge on staff. I will also add that I do not think you received an email—I was part of that email stream that would have said we do not have enough staff. We are always going to be under resourced, we are a private/non-profit organization with a growing demand. I would not have responded to the concerns that way, I agree with you. We are doing a lot of work in trying to shift the expectations for customer service and professionalism within our organization as it meets those law enforcement needs in trying to balance enforcing law but also trying to volunteering compliance because we are not trying to get more animals into the shelter that we cannot care for. We are trying to encourage a positive and responsible pet ownership. There is a limited amount of resources and our three (3) staff members that are dedicated for the enforcement of those laws again which would include the pickup of stray dogs or management of the leash law are working three hundred sixty-five days a year, they are on-call twenty-four hours a day and we do get calls about chickens and we do get calls about things that take our time about addressing because that is the right thing to do but it is a matter of prioritizing and we are working really hard at trying April 9, 2012 Kaua`i Humane Society p.5 to respond at a timely manner to call of the calls we get. I want to clarify animal caretaker is not someone that is in a staff position to be able to go out and enforce laws, we only have three (3) of those. Mr. Rapozo: Maybe we need to boost that. Ms. Blizzard: Perhaps. Mr. Rapozo: (inaudible) Ms. Blizzard: But the management of the animal shelter is mandated by the... Mr. Rapozo: (inaudible) the statute does not provide to the County to fund the Humane Society. Ms. Blizzard: No it does not. Mr. Rapozo: It says we are to contract with the Humane Society (inaudible) unlicensed dog and the maintenance of the shelter (inaudible).What I am saying is that we fund the Humane Society with a lot of money. That money if you look at the State law should be limited to just dogs and we are not we are funding the maintenance of the shelter for the cats, rabbits, for horses —for whatever else. That animal care taker that you talked about — eight (8) of them are not just taking care of ceased dogs or unlicensed. Ms. Blizzard: That is correct. Mr. Rapozo: I am just trying to say that we need to make the system right. Ms. Blizzard: I believe our contract definitely needs to be looked at. Mr. Rapozo: Right. Ms. Blizzard: I went back ten (10) years and could not find anything different then what is currently in front of me. Mr. Rapozo: (inaudible) Ms. Blizzard: But it is time for us to have a better clarity. Mr. Rapozo: Definitely clarify the rules and budget accordingly. If we need to expand the scope, that is fine as well but I think what the problem I have and other Councilmembers is that a constituent called says the Humane Society told me yesterday to pick up a dog and they wanted me to pay x amount of dollars, I thought the Humane Society was paid by the County. And this is the sort of thing that goes on and they do not understand (inaudible). I know myself that when we went to pick up my dog they told me that it was going to cost so much per pound, so I know what happens and I have no problem but the people need to know that the Humane Society does this for free and this for a charge. It is hard to explain to them especially when they see the budget session and they see that it cost six or seven hundred thousand dollars and they got to pay ten dollars to drop off a chicken. When I look at the State mandate we are funding a lot of money to take care of dogs but with that money this Council—County has funded a lot more services than what is required. I just think we need to understand that. April 9, 2012 Kaua`i Humane Society p.6 Ms. Blizzard: The portion of the budget that you have is just about the allocated areas that you fund. We do have a much larger budget that is not funded by the County upwards of two million dollars that is funded by the other programs are supplemented through our fundraising and donations and program services and things of that nature. I do understand what you are saying and I respect your position and I would like to work with the Council in updating and bringing our contract and the expectation that we have of each other closer in line to where I think it needs to be which is again why I came in this year with a flat budget request. I have requested with Chairman Furfaro and the Department of Finance that we take a look at the contract and what that means so that we can better define what you are funding and what we are subsidizing because we are a mission based independent organization and not a government department. It is a little tricky sometimes. Thank you for that feedback. Mr. Rapozo: And do not take this the wrong way but the reality is when you look at the County funded positions in your list that you provided in your report including the (inaudible) technicians, there are three of them, four (4) front desk clerks — all these people, that covers a lot more than just the ceased and maintenance of the unlicensed and loose dogs. Ms. Blizzard: Would you like to talk about the prevention of cruelty, the animal portion of our contract too. Chair Furfaro: Before we go any further, Mel, I just want to let you know I had separate correspondence over to the County Attorney's Office over the next sixty days to revisit the contract which has not been revisited in ten days and I hope to have... Mr. Rapozo: Ten years. Chair Furfaro: Ten years—that has not been updated in ten years and when they have comments for me, I plan to have a meeting with Wally and then we will have something back to the Council within the first quarter of this new year but this request will go over to the County Attorney's Office. Ms. Wiley: I would like to say something. Yes, we have been feeling the crunch of the contract for many years and knowing that we need to revisit and revise. The first few pages of our contract talk about some of the statutes that Councilmember Rapozo listed. The summarizing paragraph in our contract says where as in light of the proceeding authorities the County and the society therefore desire to maintain an animal shelter and carry out a general program of animal control and a program for a the prevention of cruelty to animals. That is kind of what is the glue that has held everything together for us and when Shannon and I started looking at the contract a couple of months ago, I think Councilmember Rapozo, we are talking about the same thing. We are talking about clear definitions of services provided etc., and clear cost associated with those services... I think we have outgrown it a lot, I think you guys have out grown it a lot as well. We really do look forward to a nice revamp of the contract. Chair Furfaro: Could you share with us the interpretations of some of your abbreviations and acronyms here for example, on your budget line the term CAM, the next term S&N as it relates to how you have allocated those money. I assume S&N is Spray and Neutering. Ms. Blizzard: Spay. And CAM is County Animal Management. Chair Furfaro: County Animal Management and if I look at the entire line of your organization will run as a deficit of three hundred thirty thousand dollars for the upcoming year, am I interpreting this correct? April 9, 2012 Kauai Humane Society p.7 Ms. Blizzard: That is correct. Chair Furfaro: Vice Chair, did you have a question? Ms.Yukimura: The reason why I am so appreciative of the work that the Kaua`i Humane Society does in terms of animal control and management is because when I first came aboard with the County, we were doing it as an in house function and it was not working. I had seen a tremendous increase in effectiveness even though the problems have increased in population of both humans and animals. Our phones would be ringing off the hook if the management and control of animals were still being done in the way that it was by the County years ago. I have appreciated I think doing it through a non-profit as long as we are clear about the lines about responsibility and accountability is much more cost effective then if the County were to try to do it. I just want to say how much I appreciate the work of the Humane Society. I also want to say that I think it is more than one statute that we are looking at here in terms of defining the work of animal control and management. It is actually a health issue at its worst and then it is about companionship and how we include animals in our lives at its best. This portion of our budget is really important and I wanted to ask some questions about it. The decrease in pet overpopulation through spay and neuter is your first goal and objective and I just wondered if you could summarize your approach in the next budget basically. It is in my mind and I guess in the discussions that will follow, I hope they would be included as part of the animal control part of your work that is it is something that the County should be funding as far as animal control. How are you approaching it in this next year? Ms. Blizzard: Topic of spay and neuter? Well with one it is more awareness to our community that we provide the service. I want to make very clear though that we definitely encourage every adopter and every person we interact with to have an established relationship with a private veterinarian because we do not offer full range services. The reason why spay and neuter is so important to us as an agency and I would argue all animal welfare agencies is because we are left with the bargain of the over population of more pets being born and influx into the shelter, the increase of cost and also the resources we have to serve those animals. Addressing more awareness to our community that spay and neuter services are available, trying to interact with certain parts of our community that may have some misconceptions about the importance of an unneutered dog to their lifestyle versus a neuter dog to their lifestyle, making that conservation okay to have and not one full of judgment. I think is really important step, it is working with other groups that are focusing on issues with cats in the community rather than the companion pets that we are trying to serve within the shelter walls. Making our services for spay and neuter more assessable, we have doubled our mobile schedule meaning our veterinarian and the bus — our Aloha for Animals bus goes out into the neighborhoods and makes those service available to those who may not be able to make it all the way down to the shelter. I have gone so far as to just our officers or volunteers or staff if they live in the neighborhood to pick up a pet and drop it back off to someone who is unable to physically transport the animal. It is such a critical part of our mission that we try to slow the flow down because it is not just puppies and kittens that we are seeing. It is the puppy and kitten that replaces the adult dog that has been a part of their family that is now not as shinny and new, so we got owner relinquishments happening. It is not just about the puppies and kittens but it is also about how it impacts the family dynamic when presented with opportunity for a new pet. Advertising, awareness, access—I think is how we are approaching spay and neuter this year. Ms.Yukimura: And we have here in your — so last year we funded spay and neuter to the tune of sixty thousand? Is that correct? fI Ms. Wiley: Sixty-five. April 9, 2012 Kaua`i Humane Society p.8 Ms.Yukimura: Oh okay. Sixty-five for this year and that is what is being asked for this year? Ms. Blizzard: Correct. Ms.Yukimura: Are you saying that people are not accessing it so that there is leftover money? Ms. Blizzard: Oh no, there is still leftover money. There is a line in our contract that says we cannot charge for spay and neuter services whatsoever. I have a particular issue with that statement in our contracts because I am responsible for trying to succeed in the mission and to be limited in liability to have a range of ways I determined... Ms.Yukimura: You can do ability to pay or? Ms. Blizzard: If someone had the ability to pay or someone did not have the ability to pay being able to serve both — we do ask for a donation but I think there might be some psychological difference between making a twenty dollar donation or fifty dollar donation or paying twenty dollars or fifty dollars for a service. Sometimes we see more on that line for the service. Sometimes when we just ask for the donation and again this is appealing to people that cannot afford the service otherwise that value it but cannot justify the cost of what it might be in a different clinic. We do not have any leftover money in that program, we run out of deficit and we would like not only to address the language in the contract that says we cannot charge for this service but also talk with our community partners and coming up with some alternative programs that would encourage spay and neuter but perhaps not come out of our bottom line through the grant. Ms.Yukimura: Excellent. My second question is you have a line called or at least in this summary sheet that we have been given AC&C, does that ring any bell? Ms. Blizzard: To me it means Animal Care & Control but... Ms.Yukimura: That is what that means? Ms. Blizzard: Animal Care & Control. Ms. Yukimura: And that is the rest of your budget? At least I am seeing your budget in two (2) summary lines spay and neuter and animal care and control and that line refers... Chair Furfaro: Animal care and control and services. Ms.Yukimura: That is mainly the maintenance of the shelter for its basic function, is that right? Ms. Blizzard: Yes. Do you want to add to that more? Ms. Wiley: I want to apologize for all the confusing initials we have thrown out. We have said that CAM is County Animal Management and it is and that is the same thing in our mind as Animal Care and Control or the animal welfare industry keeps getting better and better and we have more new hip acronyms that we need to use and we have crossed... we have made a mess of it. Chair Furfaro: Would you yield to Mr. Kuali`i or do you have one (1) more question? April 9, 2012 Kaua`i Humane Society p.9 Ms.Yukimura: Just one more question which — of that positions that you have listed on the last page of your presentation, is this hundred percent funded by the County? Are these positions hundred percent funded? Ms. Blizzard: No. They are not a hundred percent funded by the County, again there is some humane officers listed here that you received, there is two (2)listed. Ms.Yukimura: Yes. Ms. Blizzard: That is just the internal staffing issue with us as we go through some changes. Those are primarily covered there but the animal caretakers and things of that nature that are listed... Ms.Yukimura: They are proportional they are funded in part by the County and in part by some of your other programs. Mr. Kuali`i: Aloha. Welcome and thank you for the work that you do and thank you for being here today. Looking at the budget, I kind of want to see how the numbers add up and Vice Chair Yukimura was just asking about those positions and so it would be helpful to know which are the positions and with what dollar amount as far as the budget for this County total of six hundred and sixty thousand. If it is work that you have to do, you can submit it later but you kept mentioning three (3) humane officers but listed here is only two (2) right or is there a third one someone? Ms. Blizzard: She starts today. I just pulled our current numbers when I pulled that together, so that was more actual then budgeted. Mr. Kuali`i: Those are all at what salary level? Ms. Blizzard: Somewhere between twelve and eighteen. Mr. Kuali`i: What does that mean? Is that a part time position? Ms. Blizzard: Per hour. Twelve dollars to eighteen dollars per hour. Mr. Kuali`i: Are they all full time positions? Ms. Blizzard: We have one part time position right now and... Mr. Kuali`i: One of the three? Ms. Blizzard: Yes. Two full time and one part time. Again we had some changes in staffing over the last few months and taking that opportunity to really look because again those staff members are on call at night. They are responding over night and taking phone calls, so trying to create some level of balance for them has been a challenge with the amount of staffing that we have allocated to run those programs. Mr. Kuali`i: In this handout that we just got, that is the County budget. It has the five hundred ninety-five thousand and the sixty-five thousand and those are the amounts in this current fiscal year and is what you are proposing for the next fiscal year. But when you put it down here, you have this total income, is all the other income program services, are those from fees? April 9, 2012 Kaua`i Humane Society p.10 Ms. Wiley: Yes. We have an adoption fee and so... Mr. Kuali`i: The microchip, the pet surrender, the stray boarding? Ms. Wiley: Yes. Mr. Kuali`i: Okay. And then there is a grant line item, contribution and grants. Contributions and grants fifteen thousand for the County animal management and twenty- five thousand for spay and neuter, you must have another set of figures for the same work. Because that seems like a really small amount of money for the big organization that you are and the kinds of support that you receive from the public at large. Ms.Wiley: Right. Mr. Kuali`i: Maybe I am just talking about the national... Ms. Wiley: You are right, again this first column County animal management is just the services provided under the contract. Contributions and grants of fifteen thousand and twenty-five thousand I will tell you that we included it on one line, we could have had a contributions of fifteen thousand and that is what Shannon is talking about if somebody does surrender a pet or does come in for spay and neuter surgery and we ask if they can make a donation. If they do make a donation we feel that we need to accord it as revenue to help with the whole county and animal function because that is where it belongs. The twenty-five thousand dollars was a specific grant earmarked for spay/neuter so we could have put those on two (2) separate lines. But yes our Humane Society has all kinds of programs, humane education, the dog park, etc., I believe our total budget is about two point two million dollars. Mr. Kuali`i: The Chair had just mentioned earlier how this Council likes to see our departments working on grant funding as well, what do you foresee for this next year as far as the potential for going after grants for either the County animal management piece or the spay/neuter piece? And amounts if you have them. Ms. Blizzard: I will address the spay/neuter possibilities first and in the last eight months in doing some research into spay and neuter grants again coming from Phoenix where pet smart charities one of the largest animal welfare funders is located, have some good connections with those folks and they are telling me because my contract says I cannot charge for the services, they cannot provide me any grant moneys because it is there to subsidize and get me to lower my cost. I had been turned down for grants for spay and neuter. The grants in the County animal management side are really going to focused on increasing awareness about adoption. Again our focus is to reduce our pet population but also to save the lives of the animals entering the sheltering system. My focus is grants on trying to increase adoption, increase micro chipping, tagging and responsible pet ownership and access where we can for other services that they need to maintain that responsible lifestyle with their pet. The spay/neuter grants are and I think my professional opinion will be it will continue to be difficult to get with that wording in the contract. Chair Furfaro: Since you asked that question, could I ask Mr. Rezentes to come over because on March 23 I sent him and the County Attorney a piece of correspondence regarding and Wally as you walk up, I share this was after my meeting with Shannon Blizzard if there was any particular reason the County contract restricted this charging for any spay and neutering. I asked to be able to meeting with you and the County Attorney in particular on the grant hurtles that this puts in front of the Humane Society. April 9, 2012 Kaua`i Humane Society p.14 Ms. Blizzard: Yes and many of the people make a donation for that service but it is provided at no charge but I cannot re-home it if it enters my shelter system permanently. If we take it in and we just do not provide a service, I cannot re-home a feral cat. Ms. Nakamura: I am looking at page three of your plan, so it is the second — the middle section here where you have the five thousand eleven overview where you have your intake numbers by dogs, cats and others. Your intake for dogs for example was two thousand five hundred and then you returned about seven hundred and fifty of the dogs to owners. About six hundred may have been adopted and then you euthanized about thousand and so that balance then of about a hundred fifty would be the number of dogs that you keep at the shelter? Ms. Blizzard: At one time? Ms. Nakamura: At that point in time, yes. Ms. Blizzard: The capacity? Yes. Through in house and through foster care which is a small amount but we do have some foster care opportunities but yes that is our capacity. You have to include the time factor involved at what we do if an animal is picked up as a stray and it is license which is the law or microchipped, we can extend the time to look for that owner versus something that is not license, not microchipped which is another really important part of our outreach. So, yes about a hundred and fifty at a time. Ms. Nakamura: And so just to clarify where you want to take this organization is that you want to increase the numbers on the columns return to owner? Ms. Blizzard: Yes. Ms. Nakamura: Adoption? Ms. Blizzard: Yes. And I want to see intake and euthanasia go, I want those columns to flip. I want to see that our intake slows down, the flow of the animals into the shelter slows down and the animals going home through adoption or return to owner are the increase numbers and then our euthanasia numbers go down. To me that is not an acceptable formula there that you have in front of you, it needs to improve, we need to save more lives. Ms. Nakamura: And so the way to do that is through education on spay and neuter, do you believe that mandatory spayed and neuter for a pet is something the direction we need to go? Ms. Blizzard: Personally no. Because who is going to enforce that, how are you going to legislate that. The more you tell a person they have to do something it seems the more resistant they get so I do not think mandatory spay and neuter for all owned animals. In Phoenix, we were just introduced with an new opportunity that required shelters when an animal entered the sheltering system, could not be released back to an owner if it was not spayed or neutered or there was some type of reclaim view which is outside the reach of a lot of people, it was easier to get it spayed and neutered if it was a cost matter for them. And that just hit the ground where I was from before here so I do not know how well it has gone over but it is a start in the right direction. So if you are being responsible with your unspayed and un-neutered pet, that is one thing. When it impacts the animal welfare community and now it is part of the sheltering system, then it is another story. That might be one area that I would talk about but I think that would be putting the cart before the horse just a bit. April 9, 2012 Kaua`i Humane Society p.12 sick that he was suffering and the Vet said, his time is pau... that they took him to the Humane society for euthanasia and when he was put to sleep and it was just my mom and dad and they are both in their seventies, retired and living on fixed income and they did it without the rest of the family knowing. If we knew, we could have come up with some money to pay whatever fees or—and they understood it to be a fee, I do not think they thought it was any kind of contribution. Our dog was euthanized and they were having to make the choice of either just paying a smaller amount of thirty dollars and the Humane Society would—what do you call when they burn them? Cremate and bury in the garden with flowers which—or they had to pay over a hundred dollars to bring him back home and I think that they just made that decision on money. The rest of the family who was kind of sad that the family dog did not come back home and get buried in our backyard and our little niece was seven years old who lives with my mom and dad — that was her animal her whole life. Her crying to my mom and dad made it really hard for my mom and dad too. So it was just a horrible situation that I think should not happen. Whatever your policy is it needs to be more compassionate to the humans too not just the animals who are in that situation and make sure that everybody communicates clearly what is required and what is not required. That people really have the option of taking their animal home if that is what they would have wanted to do. Ms. Blizzard: I agree with you that communication and compassion is important to what we do and I am sorry that the experience that I would like to have seen did not live up to your expectation. We try but cannot be all things to all people and we do have some cost associated with it and they are reasonable when you consider the expenses behind it but I think that we all can always improve on outlining what is available, what those services cost and any alternatives if we cannot fit their needs. To go back to your original to your question about do the Vet offices have that? There is some improvement in those relationships that we need to continue to work on for the Kaua`i Humane Society and that industry because although to the community we look a lot alike in some of the services we provide, we are actually different businesses so I am going to continue to work on that and use the most cost effective ways I can which is electronic advertizing on social media to get that across. I think we can always improve on that and I will continue to remember that story when I think about ways to do that. Mr. Kuali`i: And for sure I do not want to hear that you are saying about cost effective, I want you to realize that I do not see and the average citizen would not see any additional cost once you have put the dog to sleep, where in fact that you now cremating the dog and that was more cost. It would have been less cost to allow them to take the home if that is allowable. Ms. Blizzard: I do not know the specifically the situation that you are referring to and I will not go into detail here in this area in the differences in ability to cremate a dog and get you the ashes back directly or in bulk but we are always going to be searching for ways and again that is part of what my strengths in coming to the organization are is to bring some passion and compassion to what we are doing. This is the only line of work that I can imagine doing, this is what makes my heartbeat and what gets me up in the morning, to make a difference in the lives of homeless pets in the community and I really want you to know that there are cost of business but we also do a lot of things that our donors and our supporters make up on the other end and we just have to get in line with ourselves on occasion and reevaluate our relationships and where we are including meetings and opportunities like this to receive some feedback and it is always a challenge, I know as the Executive Director, I do not get a lot of the calls that are complementing the services we provide or telling your staff did a great job that day and thank you so much, it is usually the people who want to complain about something. I would encourage any of the audience that is out there to share more positive things and keep the positivity flowing. Because what we do is incredibly emotional for us, it is a lot of— we take a lot of it home with us at night and we are there because we care about the lives of these animals and the lives of our community members, so we take that with us when we go forward. April 9, 2012 Kaua`i Humane Society p.11 Mr. Rezentes: We have not had the opportunity to meet yet. In fact, this morning I had text Al to see where we are at with respect to the meeting and I did want to make sure that I could attend the meeting with the County Attorney's that you had requested as well as the Humane Society. I think something should be in the works very shortly. Chair Furfaro: I just sent over another correspondence to the County Attorney on spaying and neutering and so we will get current on that first chance we have. Ms. Wiley: May I add something Council Chair? For the most part, a male cat that is not spayed will spray. Chair Furfaro: Got it. Ms. Wiley: So you are right. You nailed it. Chair Furfaro: I dealt with that a lot with the places where there is food present and then they come up and spray and mark their territory. We are going to pursue that and I have a secondary meeting coming up with Wally. Ms. Blizzard: I would like to add to that. The spay and neuter services when it comes to the management of an animal shelter is for every pet we send out for adoption as well, there is no way in this world I am going to adopt a pet out to a member of a community with— no matter how responsible they are, that is not already spayed and neuter. I will not put that responsibility in their hands. I want to be clear, it is not just about the community members, it is also about the animals that enter the shelter that leave through adoption which unfortunately, that is why we are in this business, ninety-nine percent of them need that sterilization services as well. Chair Furfaro: Shannon, I want to give the floor back to Councilmember Kuali`i. I just wanted to make sure all the members were aware of my correspondence in trying to lift what might be the hurtle for the Humane Society in generating some revenues. Mr. Kuali`i: One last thing on the numbers, I see on the top section on the income and then on the bottom section on the expenses, really the payroll line item is the largest item and that ends up being more with the six hundred thousand for the CAM and the hundred fifty thousand for the spay and neuter being seven hundred and fifty thousand or more than what the County is funding. This list of positions become more important because it tells me how that money is spent and what it represents. When I just see the total and a list but I do not know how to relate them and in one of the answers to Vice Chair Yukimura's question was that some of these positions could be partially funded by County money and other money and some are fully funded—a list of the positions with the dollars attached to justify the expense of payroll would be helpful to me. Ms. Blizzard: Sure. Mr. Kuali`i: The last thing is when Councilmember Rapozo talked about the people needing to know, I agree with that., I have come across some very specific examples and some even a little heart breaking where and you mentioned the website and my i-pads is not working right now, so I could not get to it. Do you also provide a brochure and is it available in the Veterinarian Offices that talks about what services you provide, what services you provide for free, what services you provide for sliding scale contribution, requested but not required and then what services you provide what for prices. I think everyone who loves their animals and takes good care of them and ends up taking them to the Vet from time to time, may come to the point where they need your services. I know one service that you—the Humane Society provided to my parents was when our family dog which they had for a very long time like seventeen years and when he was so April 9, 2012 Kaua`i Humane Society p.12 sick that he was suffering and the Vet said, his time is pau... that they took him to the Humane society for euthanasia and when he was put to sleep and it was just my mom and dad and they are both in their seventies, retired and living on fixed income and they did it without the rest of the family knowing. If we knew, we could have come up with some money to pay whatever fees or—and they understood it to be a fee, I do not think they thought it was any kind of contribution. Our dog was euthanized and they were having to make the choice of either just paying a smaller amount of thirty dollars and the Humane Society would—what do you call when they burn them? Cremate and bury in the garden with flowers which—or they had to pay over a hundred dollars to bring him back home and I think that they just made that decision on money. The rest of the family who was kind of sad that the family dog did not come back home and get buried in our backyard and our little niece was seven years old who lives with my mom and dad — that was her animal her whole life. Her crying to my mom and dad made it really hard for my mom and dad too. So it was just a horrible situation that I think should not happen. Whatever your policy is it needs to be more compassionate to the humans too not just the animals who are in that situation and make sure that everybody communicates clearly what is required and what is not required. That people really have the option of taking their animal home if that is what they would have wanted to do. Ms. Blizzard: I agree with you that communication and compassion is important to what we do and I am sorry that the experience that I would like to have seen did not live up to your expectation. We try but cannot be all things to all people and we do have some cost associated with it and they are reasonable when you consider the expenses behind it but I think that we all can always improve on outlining what is available, what those services cost and any alternatives if we cannot fit their needs. To go back to your original to your question about do the Vet offices have that? There is some improvement in those relationships that we need to continue to work on for the Kaua`i Humane Society and that industry because although to the community we look a lot alike in some of the services we provide, we are actually different businesses so I am going to continue to work on that and use the most cost effective ways I can which is electronic advertizing on social media to get that across. I think we can always improve on that and I will continue to remember that story when I think about ways to do that. Mr. Kuali`i: And for sure I do not want to hear that you are saying about cost effective, I want you to realize that I do not see and the average citizen would not see any additional cost once you have put the dog to sleep, where in fact that you now cremating the dog and that was more cost. It would have been less cost to allow them to take the home if that is allowable. Ms. Blizzard: I do not know the specifically the situation that you are referring to and I will not go into detail here in this area in the differences in ability to cremate a dog and get you the ashes back directly or in bulk but we are always going to be searching for ways and again that is part of what my strengths in coming to the organization are is to bring some passion and compassion to what we are doing. This is the only line of work that I can imagine doing, this is what makes my heartbeat and what gets me up in the morning, to make a difference in the lives of homeless pets in the community and I really want you to know that there are cost of business but we also do a lot of things that our donors and our supporters make up on the other end and we just have to get in line with ourselves on occasion and reevaluate our relationships and where we are including meetings and opportunities like this to receive some feedback and it is always a challenge, I know as the Executive Director, I do not get a lot of the calls that are complementing the services we provide or telling your staff did a great job that day and thank you so much, it is usually the people who want to complain about something. I would encourage any of the audience that is out there to share more positive things and keep the positivity flowing. Because what we do is incredibly emotional for us, it is a lot of— we take a lot of it home with us at night and we are there because we care about the lives of these animals and the lives of our community members, so we take that with us when we go forward. April 9, 2012 Kaua`i Humane Society p.13 Mr. Kuali`i: I just wanted you to know that I really appreciate — we appreciate and it is very important work that you do and whatever we can do to help for our community. Chair Furfaro: Is this right, I am looking here —it looks like there are seven active Vets on Kaua`i? Ms. Blizzard: I believe that is accurate. Chair Furfaro: Okay. Ms. Nakamura: Thank you for being here and for your presentation. What is your definition of companion animal? Ms. Blizzard: Dog, cat or small mammal like a rabbit — we deal with rabbits. There is not the guinea pig problem here that I am aware of or issue, we have some but that small mammals—dogs and cats, the occasional bird. We do go outside the lines of that and has been well publicized, we have sixteen horses in our care that are not considered a pet animal, they are considered a working animal. But yet because we are in an organization named of trying to prevent cruelty to animals, that is a branch that we have to go down. When I say companion animal, I mean dog, cat, small mammal and the occasional bird but primarily dogs and cats. Ms. Nakamura: And is it within the home or outside the home or does it matter? Ms. Blizzard: Primarily within the home. It does matter a lot inside the home or outside the home and I think what you are referring to is the feral cat population. Those are not companion pets, I cannot re-home a feral cat, I cannot bring it into my shelter, make sure it is health, spay and neuter, vaccinate it, and expect a reasonable member of our community come and adopt it as their companion because that is not what a feral cat is capable of providing for most people. Our focus—it is an important word to highlight that it is about the companion pet and those are the and that does not mean they live inside the home but they are part of that family, there is a relationship. I would like to think they have a name, I would like to think they have a toy or a bed or something of that nature but- a minimum a name would be... Ms. Nakamura: So one of the criteria is being part of a home? Ms. Blizzard: Part of a home, someone taking responsibility for that animal but does not extend to the feral cat population or protection of their safety and prevention of cruelty for them is a part of their mission. But in the shelter operations when they come in, I cannot re- home that animal, so that is not part of the programs or services that we are talking about. Adoption and increasing what I refer to in the presentation is a live release rate which I know is a really raw term and not a very fluffy term but it is the industry about how the animal comes into the shelter and how it leaves the shelter and I cannot re-home a feral cat. It is primarily part of somebody taking some level of responsibility for its care. Ms. Nakamura: If someone brings in a feral cat to be spay and neutered, you do provide the services for free? Ms. Blizzard: I do provide spay and neuter. Ms. Nakamura: Through this County program? April 9, 2012 Kaua`i Humane Society p.14 Ms. Blizzard: Yes and many of the people make a donation for that service but it is provided at no charge but I cannot re-home it if it enters my shelter system permanently. If we take it in and we just do not provide a service, I cannot re-home a feral cat. Ms. Nakamura: I am looking at page three of your plan, so it is the second — the middle section here where you have the five thousand eleven overview where you have your intake numbers by dogs, cats and others. Your intake for dogs for example was two thousand five hundred and then you returned about seven hundred and fifty of the dogs to owners. About six hundred may have been adopted and then you euthanized about thousand and so that balance then of about a hundred fifty would be the number of dogs that you keep at the shelter? Ms. Blizzard: At one time? Ms. Nakamura: At that point in time, yes. Ms. Blizzard: The capacity? Yes. Through in house and through foster care which is a small amount but we do have some foster care opportunities but yes that is our capacity. You have to include the time factor involved at what we do if an animal is picked up as a stray and it is license which is the law or microchipped, we can extend the time to look for that owner versus something that is not license, not microchipped which is another really important part of our outreach. So, yes about a hundred and fifty at a time. Ms. Nakamura: And so just to clarify where you want to take this organization is that you want to increase the numbers on the columns return to owner? Ms. Blizzard: Yes. Ms. Nakamura: Adoption? Ms. Blizzard: Yes. And I want to see intake and euthanasia g o, I want those columns to flip. I want to see that our intake slows down, the flow of the animals into the shelter slows down and the animals going home through adoption or return to owner are the increase numbers and then our euthanasia numbers go down. To me that is not an acceptable formula there that you have in front of you, it needs to improve, we need to save more lives. Ms. Nakamura: And so the way to do that is through education on spay and neuter, do you believe that mandatory spayed and neuter for a pet is something the direction we need to go? Ms. Blizzard: Personally no. Because who is going to enforce that, how are you going to legislate that. The more you tell a person they have to do something it seems the more resistant they get so I do not think mandatory spay and neuter for all owned animals. In Phoenix, we were just introduced with an new opportunity that required shelters when an animal entered the sheltering system, could not be released back to an owner if it was not spayed or neutered or there was some type of reclaim view which is outside the reach of a lot of people, it was easier to get it spayed and neutered if it was a cost matter for them. And that just hit the ground where I was from before here so I do not know how well it has gone over but it is a start in the right direction. So if you are being responsible with your unspayed and un-neutered pet, that is one thing. When it impacts the animal welfare community and now it is part of the sheltering system, then it is another story. That might be one area that I would talk about but I think that would be putting the cart before the horse just a bit. April 9, 2012 Kaua`i Humane Society p.15 Ms. Nakamura: Last year's budget and I see it again in this year's budget, advertising and promotion is one component and it is relatively small component of your budget that is being presented here, so fifteen hundred for the county animal management program and then seven thousand for your spay and neuter program, last year was this full amount spent? Ms. Blizzard: In advertising and promotion, yes. Ms. Nakamura: It was. Do you feel that this is an adequate amount? Ms. Blizzard: We can do more with more. Ms. Nakamura: If the goal is to reduce—it seems like... do you think.... Ms. Blizzard: I definitely think we could use that money to our advantage to spread message into provide outreach. Right now, again, as a private non-profit we are always going to have this eclipse of needs and resources and the social media craze and web-sites and electronic marketing is some of the things'I am trying to bring that is so much more cost effective —radio is a big hit here. We are blessed to have friends in radio but... lots of friends in radio. We try to make the most and again I think coming from—for me personally having adjusted from a City of four point three million to a much smaller community where it has some challenges, it also has some benefits because this coconut wireless thing is powerful and we can use it to our advantage. We can use opportunities like this to our advantage to spread the message. I think we as an agency need to be confident in our message, I think we need to not make excuses for our message because it may not be in line with what someone else does or thinks but that we are reasonable in working with those folks but there are lots of ways to get our messages out and I think if we are talking about increasing funding for what we provide, I would like to see it go to increasing life saving and treatment of animals that can bet treated in our care and then re-home. If you want to provide some more money to us, you are welcome to do so but I think we are at an advantage here that we can use that money more wisely in other ways. Ms. Nakamura: Thank you. Chair Furfaro: One of the things that we did not touch much on and I just want to say that my wife and I remember in the 70's when you did not see Nene goose in the North Shore and we do now. (inaudible)bird is making a comeback and all of these things that I think are very important for our host culture as we look at these indigenous pieces and for great reason that is why I ask about the feral cat population and the chickens, they then compete with—but maybe that is another discussion. Do you have anything to add before I ask for public testimony? I will be in touch with you again after we talk again with the legal department. Do I have anyone in the audience that wants to speak and I also want to let you know that I have two pieces of written correspondence for testimony that my staff can share with you if you like. Makaala, you have the floor. MAKAALA KAUOMOANA: For purposes of this subject, I am representing Hui (inaudible)which is the organization that provided the Kaua`i Plaintiff in the Seabird incidental take process with the County, KIUC, and the Saint Regis Hotel. I like to start by saying my first very pet was a chicken and her name was Bitty and her favorite thing to do with me was swing on my swing set. She lived on our porch screened in. All three of my personal pets have come from the Humane Society, the currents ones that I have. The feral chickens, I take no responsibility for. I usually prepare written testimony, this body knows that. I would like to appear with a script. I do not have it today and I appreciate staff and Councilmembers generosity in providing me this morning with the submittals that the Kaua`i Humane Society has submitted today but I did not have it till this morning, so I am not as well prepared as I would like to be and depending on how things go, I will April 9, 2012 Kaua`i Humane Society p.16 submit written testimony if I think is needed. I do appreciate receiving the information this morning. I remind the County that the last time I appeared on this issue, the end of this conversation was the County Attorney stating that because the County is still on federal probation for take of the endangered sea birds that you cannot support with money or any other way any action that might threaten those seabirds further or in anyway. Therefore my interpretation because I am not a lawyer, I am a community volunteer in this matter, my interpretation is that you cannot fund TNR or TNRM unless you can evidence of the management of the returned animals is such that they cannot hunt or cannot escape. What would be... Sorry... Trap, Neuter, and Release and the "M" is Manage. Sometimes Trap, Neuter and Return. In the interim between when I testified last on the last subject matter of feral kittens, our organization did take it upon ourselves to provide communication information correspondence with some of the major landowners that we were able to independently identify who may have feral cats feeding stations on their property. I know for a fact that some of them did not know that—explaining to them via our Attorney—Earth Justice and they are also liable and that they need to pay attention to those activities that are occurring on their lands, that was not a legal action, that was something that community volunteers did and I would be happy to do it again if I could indentify folks that need to understand the issue. For this item on your budget what I would request is that more specifics be provided, I think you folks did a really good job in following my notes as to what might be needed in further information related to the budget. I for one would like to know how much if any of the County money is being expended on the return of feral cats and hence the potential take of seabirds or other issues. Remember last time we talked it included from the Division of Aquatic resources the concern of toxoplasmosis and a few other things, so it is not just whether or not we find a dead bird, it is an issue of impacts on our community just by their existence. I would hope this Council would air of the side of caution and somehow develop some sort of estimate as to how much of the funding you are providing is expanded to the best they can tell. I acknowledge that it maybe a difficult issue but I would like to see that information published specifically for the item under income of spay and neuter program, the sixty- five thousand. Specifically under the item in expenses of professional services for spay and neuter because it is still an expense of funds, it is not the kitty but the guy going it and maybe specifically in supplies, I do not know. This is the only budget I see, I do not have it broken out — I do not know whether the supplies is for the center or whatever it is. But that is my main concern that KHS be asked to audit their program expenses and identify and report any money spent on trap, neuter and release animals or feral animals that are brought to them and demonstrate a verifiable alternative source of those funds other than the County. So if they say, we are not using County funds for that, we are using our grant money for that, so be it but I think we have a right to know that as a community. Mahalo. Chair Furfaro: Thank you very much. Welcome, please come right up and introduce yourself. You have three minutes on this subject matter. HOB OSTERLUND: I am a North Shore resident and a volunteer that has created a organization called Kaua`i Albatross Network, you can see the website AlbatrossKauai.org for more information. I have submitted testimony that you have in front of you. I have been observing our wildlife since the County Council of 1979-80 on the first photo on your right there when Councilwoman Yukimura was the first child protege on the County Council. I think you were twelve. Mr. Rapozo: Eleven. Ms. Osterlund: Eleven—okay, I knew it was something like that. You see in front of you my concern as well as my mahalo to the Kauai Humane Society and to the County Council for your great attention to this important matter. You will see that the cats now—wild feral cats now are named the world's worst invasive species for the damage that they are doing to our water ways, wildlife, to disease and that even when cats are fed and neutered, they continue to kill. April 9, 2012 Kauai Humane Society p.17 It is something that I think here on Kauai in particular, we cannot afford to see happen. You notice there on the bullet points the significant issues beyond the predation: the public health issue, the cat welfare themselves, the cats are often diseased, injured, they have a very short lifespan compared to housed cats and what they do to the environment in terms of fecal pollution in the public nuisance that they are, you will note that even PETA who you might remember even objecting when President Obama swatted at a fly, these people — even them against the trap, neuter and release programs because of the suffering it provides both for the cats as well as the wildlife. I would also like to also emphasize something else in the bullet points below about why in particular on Kauai. We have and focusing specifically on the albatross—if I might—KipuKai if I could pass this to you to pass around just so you can get a quick glance of a few photographs of the albatross here on Kauai. This is just one of many species of concern here but I want to focus on them in particular. First of all we have an unprecedented and cooperative program among four federal agencies, the State agency through DLNR and private landowners here to prevent bird / aircraft strike at PMRF by adoptive process of taking those eggs and adopting them to birds that need them up on the North Shore, it is a model. I am nationally publishing an article about that model here on Kauai this summer. The albatross is native here and it disappeared when people —because it was food as was their eggs. The first pair returned in 1979 the same time that Councilwoman Yukimura was on the first Council and I arrived. They have been able to gradually increase. We have about a hundred and fifty chicks right now, they are about two months old along the island of Kauai and hopefully all will fledge in about June or so. The coastal nesting property really is from Anahola to Princeville, that is basically fifteen miles of coastline that is a bit of a Noah's Ark for them, Midway is there main nesting colony but as you know Midway is at sea level when the Japanese Tsunami came through.a year ago, it took two of the Midway islands went completely submerged and the other island got a five foot wave that came in and washed out two hundred and twenty thousand chicks. Kauai specially the North Shore of Kauai serves a bit of a Noah's Ark, we have coastal bluff, we have almost an absence of mongoose and we have people who care—almost an absence of mongoose, I hope we can say absence again. Those three elements make it possible for those native seabirds to have safe habitat, regular fencing that keeps out dogs which is their main predator and pigs will not help with cats. There are areas that have had albatross colonies historically that no longer do because of predation (inaudible) how many times the predation was from dogs, how many was from cats, how much was human encroachment but we have disappear colonies. They have a cultural significance, they are called moli, they are called "kane's bird" or the "great white albatross of Kane" and the "spirit of the high places of the wind" in Hawaiian stories. The bird is also considered an aumakua. Economic importance — I cannot under estimate the amount of people interested in bird watching now in the United States alone, an estimated of sixty-two million people call themselves birdwatchers and they dropped in 2006, thirty-six billion dollars into our economy to go bird watch. Kauai is the only place —the only assessable place, almost—well two places in the entire world that you can go and be up close with albatross. There are twenty-four species of albatross and most of them nest in remote islands that would be so hard to get to that no one could possibly get there, it is way off the coast of New Zealand, those kinds of places would be too uncomfortable to go to and too expensive and a lot of them you cannot go to them legally. But on the island of Kauai, you can go on a tour and go up close and personal with the birds, you can take a walk on Lepeuli or Larson's Beach, you can go to Kilauea Point and watch them fly by you at eye level, no other place in the world can you do this. Although there is a small colony on O`ahu... Chair Furfaro: You got your six minutes. Ms. Osterlund: There about twenty chicks this year in Princeville, the private lands actually have—these last couple of years support a better survival then even the Kilauea Point for some reason we do not know but there are private lands that really matter. Basically, I would personally invite you, I got the okay from (inaudible) this morning to personally invite any or all of you to come on the tour, I guide that tour as a volunteer, I will take you on your very own special tour to go see these birds. They are extraordinary, they change your lives and here on Kauai is April 9, 2012 Kaua`i Humane Society p.18 really the only place these thirty-six billion dollars worth of money can be spent to come see albatross. I want to support the idea of Kauai as a bird watching destination and for your support in keeping the feral cats away from them. Chair Furfaro: We will make an attempt after the budget process to contact you on a site visit. Ms. Osterlund: The budget process is over when? Chair Furfaro: Somewhere around—the whole process about May 15. Ms. Osterlund: And May 15, I will take you out and you will see half grown chicks at that point. Mr. Rapozo: I know we are really pressed for time but I got to ask you about your comment about the mongoose because you said almost, have you—the reason I asked is because my brother was running down by the Marriott and saw one about two weeks ago and he knew what he saw, it was not a rat or cat. So it is just coincidental that you bring that up today. I am getting concerned. Ms. Osterlund: Me too. Mr. Rapozo: So what do you know about the... Ms. Osterlund: The Kaua`i Conservation Alliance who you all have met now had a meeting about that last week that I missed, so I did not get the update on that but I understand that there are some mongoose on Kaua`i. I do not know if it is two or a hundred, I hope it is two and that they are elderly and maybe a feral cat will get them. Chair Furfaro: Do we have anyone else that wishes to testify? MARSHA HARTER: I am a resident of Anahola and I submitted testimony which I believe you have and much of that was also discussed by Hob so I think I will just highlight a couple of points and then if you have any questions for me, please feel free to ask. My involvement with this issue has come about because of my interest of the albatross and I have been working with a small group of people who are supporting a landowner that is interested in reestablishing an albatross colony on their property that existed up until a few years ago and then through predation and perhaps some human encroachment is now gone and one of the — there is a large cat colony or there was a large cat colony in that area which is suspected to be part of the predation of the birds. I offered to—along with some others to help trap those feral cats. Just to give you a sense about how — in one month we trapped thirty cats and they ranged in age from a couple of months to quite mature cats, they were all obviously quite wild. I am not a veterinarian but did not look like in very good health. To give kudos to the Humane Society, I know that you do not often get them—everyone sees what you do not do and not what you do, do. They were incredibly supportive of our efforts. We would set the traps in the afternoon and they were covered and all the cats we caught during the night and in the morning we would call the Humane Society and they would come and pick up the trapped cats and take them to their facility in Puhi and euthanize them. We worked very efficiently together, they were incredibly responsive so I am just so grateful, we would not have been able to do that had it not been for the support that we had of the Humane Society. But just to give an impression about what that means for the bird life in the area, there are a lot of estimates out there about how many birds are killed by cats and it is not just the one they capture because cats have a lot of bacteria in their mouths and if they just even puncher a bird that still might survive, it usually ends to a bacterial infection. It is sort of a midrange estimate that one cat — free ranging cat April 9, 2012 Kaua`i Humane Society p.19 domestic or feral probably kills about a hundred birds a year. So in the time that I have trapped thirty cats, we figured that is twenty-seven hundred birds that were not killed or will not be killed because of feral cats this year. It is just an astounding number when you put it that way, so I wanted you to understand the ramifications of each feral cat and what on the environment. The other issue is that TNR—is projected as a solution to this problem but there really is not, there is so much mythology about TNR. First of all, if you feed cats you prevent them from killing and actually in the neuroanatomy of cats, the instinct for predator is quite separate from the instincts regarding hunger. A fully fed cat is going to prey on animals and hunt just as well as one that is not. Trap, neuter and release would reduce cat colonies, really there is just almost no evidence of trap, neuter and release programs around the United States that actually reduce colonies. I have sighted one in and probably the most dramatic one and that is such a carefully controlled and managed situation with so much money behind it. They have a full-time staff person and a part-time vet to take care of that colony. I think it is also important to consider that releasing feral cats — trap, neutering and then releasing for cats back into the wild is really in humane for those cats, their lifespan is less than five years whereas a cat that is in your home would probably live to fifteen or seventeen years on average. They have all kinds of diseases, not only diseases within the colony which colony is really good breeding ground for transmission for diseases because it is more concentrated but they also pass these diseases on to humans and to other mammals which can be quite critical health—a public health problem. For these multitude of reasons I really like to support the Humane Society's neutering and spay program but I do hope that you will consider this in any kind of funding that might be for supporting a feral cat or returning cats to the wild. Chair Furfaro: Thank you very much. We do have your testimony and the statistical information you just gave us is in paragraph four and five of your testimony. Ms. Harter: Yes it is and if you need the citations for that I am happy to provide that actual studies of which those numbers were based. Thank you. I also want to say thank you to all the Councilmembers, I know that you expend incredible amounts of time and on behalf of all of us on Kaua`i and I just really appreciate it. Chair Furfaro: Thank you. Is there anyone that wishes to testify on this item? Please, come right up. Could someone call the Fire Department and tell them, we will not recess again till 1:45. Ms. Wiley: We just had a couple of numbers for Makaala that Shannon was going to answer some of her questions. Ms. Blizzard: In the first half of this fiscal year July through December, we have provided eighteen... one thousand eight hundred and seventy-four spay, neuter services. That means we are on track to do almost four thousand over the course of the year. Of that so far, of that eighteen — nineteen hundred that we have done so far, two hundred and fifty-two which is a small percent of those have been track to feral. I think they bring up some good points and as you know we have the SOS programs, so we are aware of the importance of predator control. I want to point out another statistic is that one un-spayed cat over the course of seven years, statistically is responsible for forty-two thousand birds and so to pull back on spay, neuter creates more cats to then threaten the birds. I think there is going to have to be some real shift in paradigm how we work together to address these issues and I am hoping to doing that. I also think we need to bring in the groups that focus on this particular work — this feral cat work that are actually doing the trapping, the neutering, and the returning or the management of the colonies and recognize that the Humane Society's role primarily with the exception of the few times we may have helped the community member out is really focused on the spay, neuter portion not the trap, neuter and return or management of those colonies. I also think that it is important to work together in this and come up with some ways that work for both groups and respect to maintaining the wildlife and the birds and April 9, 2012 Kaua`i Humane Society p.20 also not expecting the Kaua`i Humane Society to come in and act as exterminators for these cats. There are groups that we need to embrace and bring in to this conversation and that particular group is Kauai Feral's, I have spoken with them previous to this meeting and have discuss some alternative funding or revenue... let me say it again, because it is a small portion of the services the County provides and we do run it as a deficit in the spay/neuter program as you know and I am contracted not to be able to charge for those services. If we can adjust the contract, they are willing to pay some portion of those expenses as revenue so that it would no longer be any confusion about whether it is County money or not and take that conversation to the next level. We as a private organization could work out with them specifically and to address some of the concerns that folks gave testimony here today. Chair Furfaro: Thank you, Shannon. Any questions of Shannon? Ms.Yukimura: Thank you for the information that you just provided, can you give me that statistic again, one un-spayed cat over a period of? Ms. Blizzard: Seven years. Ms.Yukimura: Okay. Ms. Blizzard: Statistically they calculate forty-two thousand cats and... Ms.Yukimura: Cats are produced? Ms. Blizzard: Yes. Because in the breeding cycle for cats are typically seasonal, they are pregnant for nine weeks approximately so in a season, they can have two litters which are approximately are six cats. If all those cats are not spay and neutered, you see how the pyramid continues to expand. The impact either way we go it is measurable and is great and is important to recognize on both sides but I think we need to come up with a new solution rather than not spay and neutering that would increase the population of cats quickly and then be more damaging and dangerous for those birds as well. I welcome some of those conversations but again I just want to point out we are not actively participating in the trapping and returning management, we do provide a spay/neuter service for someone who is willing to claim ownership of those cats. We statistically know if they are feral, we deal with them so we account for that accurately in our records. It is on track to be about four hundred/five hundred over the four thousand we are going to do this year, so it is a small percentage but one worthy of noting. Ms. Nakamura: Last year some time we were talking about the TRN program, one of the conversation that came out of it was the need to craft a soluation for Kauai. There are a lot of groups, stakeholders involved and I believe we need to address this issue or it is only going to get worst. I would like to be looking at funding a process to bring the stakeholders together and to craft the Kaua`i solution because I do not think we can wait for the State or anyone else to solve it for us. I just was wondering whether you would be willing to be a participant in that discussion? Ms. Blizzard: I absolutely be willing to participate in that discussion and I was saying to the women that gave testimony, a few of them outside that we need to work together. We both have reasonable compassion and passion about what we are doing and if we can come with some level of respect and meet with each other and respect for each other's positions, I think we can get farther than just saying kill the cats or no, do not kill the cats. But we need to have the right people at the table for the discussion and as we mentioned the Kaua`i Humane Society cannot be all things to all—just because we are animal related— we need to bring other groups in to this. Yes, I would be happy to participate and have some suggestion to bring to the table as well. April 9, 2012 Kaua`i Humane Society p.21 Chair Furfaro: Thank you very much for your presentation today. We will stay in touch on your review of your contract when I get together with Finance and Legal Department. The budget review was recessed at 12:45 p.m. April 9, 2012 Fire Department p.1 The departmental budget reviews reconvened on April 9, 2012 at 1:46 p.m., and proceeded as follows: Councilmember Kuali`i(present 1:50 p.m.) Councilmember Yukimura: (present 1:49 p.m.) Excused: Councilmember Bynum FIRE DEPARTMENT: Chair Furfaro: Mr. Bynum will be absent for the rest of the day. Both Councilmember's Kuali`i as well as Council Vice Chair Yukimura will be joining us shortly but we have a long way to go today and as long as I have four members, we can begin the process. I will turn the floor over to you, Chief. Chief, is this an amendment to your original? ROBERT WESTERMAN, Fire Chief: Yes, Chair. I apologize I did find some errors. The corrections are on page four and five but the way I had to print it so that you could put it in your booklets for replacements. Chair Furfaro: I did not want you to redo the whole book. Mr. Westerman: Right. Chair Furfaro: So if you could reference us, we will go to those points. The floor is yours. Mr. Westerman: Aloha and thank you for your service, we really appreciate that and I would also like to thank all the members of the Kauai Fire Department for another successful year and all the sacrifices they have made to make a difference and to make it happen. I would also like to dedicate this year's presentation to one of our members, who passed away shortly after retiring still in the prime of life. Let me start my budget briefing with a quote from Charles Darwin—we must never allow those things that matter most to be at the mercy of those things that matter least. I have to admit I am guilty of that sometimes, you can just ask my kids. They kind of remind me of that. What I am going to do today is allow our bureau Chiefs as you see we have quite a group in the audience. I also have additional personnel in the audience today and this is part of my succession planning effort and a little later on I will explain it in more detail. Each will brief their bureaus as we move along. I am not yet into page one of your budgets; this is just my overall brief. As we review the budget you will see that with less cash in hand, we have to make a difference on which programs or make decisions on which programs we will continue to operate and the long term effects of those in our community. Before we start let me help explain the budget and to further explain our needs and reducing the risk to our community and reducing the risk to our fire fighters and how those reductions reduce that in turn reduces the liability to the County of Kauai. Please at anytime you can stop us at anytime, we would like this to be an open discussion back and forth about our budget and the same with any of the bureau Chiefs. Today, baby boomers are seventy-five million strong and of the three hundred six million populations today and every seven point one seconds another member joins that society, they turn age seventy. They are twenty-four percent of our population, the largest demographic group in ever in the history of the United States. They are living longer, living longer than the silent generation by more than fifteen years and are the most demanding and educated people on earth. They grew up with Woodstock, Apple, IBM, Microsoft and John F. Kennedy. They used to say ask not what your country can do for you but what you can do for your country. Today they are saying and demanding that we want government to do for us and to do it right now. Just read your local newspaper, listen to any talk radio station or read the blogs, it April 9, 2012 Fire Department p.2 runs rapid on the internet every day and they want to know why government is failing yet they demand small government. The old saying of have your cake and eat it too comes to mind. They are going to expect that when they call 911 that they get immediate gratification and if they do not, we will definitely hear about it and I am sure you get plenty of those calls because I know we do. If you think the extras are the most plugged in, think again. They are just techno geeks talking to each other. The boomers are against increase in taxes for education because most of their kids are in their fifty's and their grandkids are in their thirties. They are going to demand services that fit their needs. They want improved and immediate medical response and facilities, increase senior programs, and increase bus services just to name a few. Then add our normal population changes and the national legislative reforms and the magnitude of the challenges, only increase. When establishing community priorities both the challenges and opportunities it presents, there is a call for open and honest dialog with the public. The Fire Department is and must be a contributor to the community's wellbeing and economic recovery. I think we will show that in our message today. For the Kaua`i fire service seventy percent of our responses are for medical needs and most of them are seniors living at home. We must plan for the future and how we will serve this population not at the expense of others but in concert with the rest. At age sixty-five they are sixty percent more likely to get burned in the home or have increase incidence of fires, at seventy-five they are seven percent more likely and eighty-five they are eight percent more likely. Forty-six percent of non-confined residential building fire extends beyond the room of origin. The leading cause of these fires are electrical malfunctions, sixteen percent unintentional or careless acts, fifteen percent, intentional twelve percent and open flame eleven percent. We had a lot of those open flames candles fires on Kauai. Smoke alarms were not present in twenty-one percent of the larger none confined fires in occupational residence. Most building detectors were installed when the home was built, if you remember, in the 70s we had a big push to get smoke alarms in homes. Well today, those homes are still here, most of the smoke alarms are still there and about fifty percent of them do not even have batteries in them because they have gone bad and never been replaced. Active community outreach is needed to reduce these incidences of none working smoke detectors. More education programs are needed and are proposed in the budget. Kaua`i fire loses, sixteen fires in 2011. Residential structural fires resulting in over five point seven, five, five million dollars in property lost and one loss of life in the late hours with no smoke detectors. The national death rate for structural fire is about point six percent, on Kaua`i it is seven point six percent and of our loss of five point seven, five, five million that is three hundred and sixty-six thousand dollars average per fire. Our rate is a little bit higher because we have fewer fires to mark that against—but still it is still a fairly high rate. We receive over twenty letters of commendation last year for the men and women of the department from every single bureau. Comments as simple as "Chief the men and women really look sharp in their new uniform" not knowing of course — we also made sure that those uniforms were NFPA compliant station wear. They look sharp but they also were purchased to reduce injury or the risk of injury of fire on the job. Thanks to the new Kaiakea station, my insurance went down by half because it is within five miles of the fire station, not realizing that this also helps us get closer to compliance with the national standards of response times. An amount of personnel on a fire within five minutes. Of course this is a reflection of the Council and Administration support of the Fire Department. The support of community cannot be higher as shown in the support of the first (inaudible) concert as a fundraiser for the Ocean Safety Bureau last year. Community feel empowered and wants to support these events. These events also help us to hold down budgets and to reduce the risk of community and our water safety officers. But let us talk about ninety-nine percent. No we are not talking about occupy Kauai ninety-nine percent movement. The fire budget last year in 2011, we spent ninety-nine point nine, nine percent of the our budget and out of twenty million dollars to expand all the way down to ninety thousand dollars was a challenge. Yes it is commendable but how can we possibly be that close. We did not come without issues. Issues of fire fighter safety when we reduced our staffing below three of our minimum four. This means that we April 9, 2012 Fire Department p.3 responded to fifteen fewer fires than eighty percent of the time with the required minimum to do an immediate search and rescue for a trapped resident. Or it meant that we did so without the mandated two in two out rules and has it fully deployed. I know it is difficult to understand that even though fire and fire rescues are less than one percent of our daily work, it is the most costly due to equipment and time for training. Chair Furfaro: Excuse me, Chief, for members that have not been with us all this time, the two and two response, I thought we were very close to achieving that ninety-nine percent of the time? Mr. Westerman: Yes sir, we really are. The Kaiakea station actually went along way to supporting that. The trick of course in explaining it briefly is that it takes about fifteen fire fighters, seven and a half minutes to do the twenty-one basic task in fighting a fire and we will talk about that a little bit later on. But the two in and two out rule is getting enough fire fighters on the scene within the first five minutes so that we have two fire fighters to go into to do a rescue and two fire fighters fully outfitted with their SCBA's and the (inaudible) to do a rescue on the outside. Yes, we are pretty close to that thanks to the safer program helped us getting the additional fire fighters on the Kaiakea stations. Chair Furfaro: Thank you for that clarity, Chief. Mr. Chang: SCBA? Mr. Westerman: Self Containing Breathing Apparatus. We also reduced our inspection cycles, we reduced our training significantly and by doing this we placed rescuers at higher risk by training less in our most critical areas such as diving and flying and we will talk about how we want to address that in the budget this year. Fire fighting and policing remains the most stressful jobs, according to a recent report fire fighters continue to be one of the most professional, stressful professions, second only to in listed military soldiers and rounding up the top five are airline pilots number three, military is number four and of course our police officers number five. Our dangerous work environment is one obvious factors contributing to the (inaudible). In 2011, the US on duty fire fighter fatalities actually was reduced for the first time below a hundred per year. In Hawai`i 2012, we had one on duty fire fighter death. We had reduced the national and annual fire fighter on duty deaths to under a hundred but still the number one killer is heart attacks. Kaua`i Fire has had two fire fighters have heart attacks while working or at home within the two years, so you will notice an increase in our annual physical budget, this year to do more in- depth and thorough testing. We hope to find the problems before they are one and to get them healthy hereby reducing the risk to the firemen, the community and the County. Without further ado, I will turn over to Deputy John Blalock and we will talk about our overall operating budget for the Fire Department. JOHN BLALOCK: Thank you, Chief. Chair Furfaro and Councilmembers, for the record John Blalock, Deputy Fire Chief, Kaua`i Fire Department. I will be discussing our operating budget for the Kaua`i Fire Department. Our overall budget will show a five point one, four increase over last year but like you heard in many departments so far, one point two million of the one million are salaries and benefits. If I break this down even further, two percent or roughly two hundred thousand is due to safer grant. What happens with the safer grants as we move into year three and year four, the County absorbs more of the responsibility of the cost that we initially were afforded. Over the five years that we will have this grant, we will have a savings of over one point five million to the County. Our largest dollar increase is our benefits, social security, health fund, retirement system, workmen comp, unemployment, and (inaudible). The line item is a thirteen percent increase over last year and is one million dollars increase. Our largest percentage increase in salaries is CBA items or overtimes, premiums, mileage, equipment allowances, annual physical, April 9, 2012 Fire Department p.4 drug screen and vacation payout. Which amounts to a twenty-two percent increase or roughly four hundred thousand. This also includes for the first time a fifty thousand dollar increase for vacation payouts. In the training bureau we have pushed and pulled training because of cuts and budget and as we try to manage our budget over the last two years, this year the training budget has increased by ninety-three thousand which is a thirty-six percent increase over 2012 and again this is playing catch up when we tried to push things into back years and try to catch up into coming years as we move and which fiscal year that we conduct the training in. Over time cost has also increased over last year about two hundred thousand. Currently, we are not able to maintain staffing levels as Chief has touched on eighty percent of the time, with the overtime dollars that have been budgeted. This year we are trying to be better prepared as we maintained the minimum levels. If you take a look at the graph there our operating budget is actually only ten percent of the overall budget which equates to two point four million. Twelve percent or three hundred thousand of that is due to training, we pay eight percent or two hundred thousand to utilities and out of the twenty-seven p y g p e twe t seven Y percent, sixty-four thousand goes to equipment leases and that leaves us about fifty-two percent of that original ten percent, one point three million to apply to the rest of the bills like gas, oil, paper, daily supplies, oxygen, medical supplies and vehicle repairs. As we had in the past we have continued to seek grant funding from many of our sources, we have received over one million dollars g g Y in grants over the last year and over six and a half million in the last five years. Some of the examples, we have a hundred and thirty thousand that we received this year for fire educational trailer, we had two hundred fifty thousand that we been awarded from the state to help fund Ke`e Beach lifeguards, we received another ninety-six thousand from the Forestry and Wildlife to help with fires and even part of that money, twenty-two thousand was used for helicopter training. We have receive over five hundred thousand from FEMA grants and another hundred fifty thousand from Homeland Security to assist with our training with the (inaudible) CST— Civil Support Team. The Civil Su pp ort Team was so impressed with our personnel that the y w ere also invited ted to participate in the Maui training and also traveled to Colorado to assist in a training there that covered the "X" games. Let me talk about some of the successes and achievements that we have come up this year. To better manage our personnel and resources and to minimize multiple inputs and the time associated with those extra actions we are moving to use our RMS —records management system to its full potential. We started to use our daily log book to help duplicate functions at the stations. We also use it to do daily staffing, timekeeping and to manage our time sheets. Hopefully one day to integrate it into the County system. Fire Prevention and line personnel has improved their grant writing capabilities by taking more classes and also attending the National fire academy to help us with grant management. These again, all help us as we try to manage our budget. The prevention bureau also has been with the Mayor's communication team to put out important safety messages such as the Kauai Family Magazine. Some of our upcoming initiatives, as you can see we are currently in our new Head Quarters which we will be adding a backup EOC — Emergency Operating Center and an alternative dispatch. This will help us to do maintenance work on the dispatch, test systems and allow for cleaning without allowing a break in services. Chair Furfaro: Before you go any further, on the redundancy for the Emergency Backup there was a discussion earlier here at the Council as our (inaudible)level used to be the redundant backup for emergency services, do you have an idea of when this facilities will be complete with the backups and the 911 emergency calls, are we talking a hundred and twenty day, are we talking six months, do you have an idea? Mr. Blalock: Currently like I said we are in the process and the procurement process of some of the units that we are going to have there. Currently, we are going to be housing Purchasing for a time being about a hundred and twenty days in that space but again April 9, 2012 Fire Department p.5 there is some lag time between when we get the equipment procured to occupy the spaces that we do have there. I am looking at six months and maybe longer than that. Chair Furfaro: All of the funding for the completion for that is in place now and will be encumbered by the end of June, do you know? Mr.Westerman: Chair, if I may, yes, this is both police and fire initiative, not just fire initiative. The alternative dispatch center which was built in as part of our renovation of the Piikoi space. Chair Furfaro: Part of Fire Department's renovation, right? Mr. Westerman: Right, a part of Fire Department's renovation space. Their funding is secured through the department of Homeland Security grant, they are currently at a position where they are waiting on an environmental study for FEMA to release those funds. Our money is either in budget or is also in what we can get in the Homeland Security grant and again is waiting on the environmental study. We kind of had the things bought but the problem was FEMA has changed their rules for these grants, that you have to have environmental studies so if you are not just purchasing equipment which we kind of felt that is what it was because it is attached to a building—they have to do this study. That is being done and should be accomplished fairly soon but the deputy's estimates is about right, we are estimating six months. It was decided as we went through this process of building or remodeling the emergency — the Piikoi Building for Fire that there was space to do that. Police have expressed an interest that they needed an alternate dispatch location, so it kind of worked out—they were willing give up the space that they needed for that. It was an ongoing thing and so it was all done as part of the renovation cost, it was all put in the renovation cost. The other thing that was not done yet is the backup generator. Chair Furfaro: That is the one I am looking for. Mr. Westerman: Well there is one currently and it works. And it worked this weekend actually it came on when... Chair Furfaro: Was it the one that they took out of this building? Mr. Westerman: No sir, this one has been there for a while. It was there... because it used to be the dispatch—down stairs used to be Police Dispatch so it is there but they are sizing it larger so as the facility grows, they are putting in a bigger one for future growth, current growth and future growth. Six months is probably where we think we are. Chair Furfaro: I am more concern about the generator. Do you know if they replaced the new one, if there is going to be any salvage credit going to the project for the smaller one or if the smaller one is rescheduled to come back to this building, do you know? Mr.Westerman: Sir, I do not know. You would have to ask Doug Haigh that question. Chair Furfaro: Okay, he is coming up soon. Mr. Westerman: I really do not have the answer to that but like I said — this one has been there. This generator that is there currently has been there for many years. Mr. Rapozo: Just so you know that the one that was here has been gone for many years too. April 9, 2012 Fire Department p.6 Chair Furfaro: That is the one that is over there. I almost think it because we do not have any disposal records of our generator and there is no salvage credits, so it had to go somewhere. Mr. Westerman: Right. We would have to let Doug answer that question. Mr. Rapozo: My question was more of a clarification because I think there was some confusion, there is an alternative dispatch and there is an alternate EOC and I think we might be getting confused. The alternate dispatch is self explanatory it is just a whole other console where in the event something happens at the building, they can mobilize the dispatchers to another location and they can operate 911 and so forth. But the EOC is the one we had the discussion this morning and I think you are talking about an alternate dispatch, you are not talking about an alternate... Mr. Westerman: Well I was talking about both actually, I apologize. Chair Furfaro: I got that impression this morning, ultimately you were going to be both. Mr. Westerman: Yes. Chair Furfaro: But we will continue to probe Mr. Haigh. Mr. Rapozo: So your space where you are relocating has enough space for an alternate dispatch as well as an alternate EOC? Mr. Westerman: Yes and we designed the facility so that actually our big training room space is going to be the alternate EOC as it be co-located with the alternate dispatch and since we are making sure that there was back up power for the alternate dispatch—it kind of all fit together, why even create an even third space. They asked me if I can give up the training for those kinds of events, well, of course if we have a significant even that the EOC is down and we need an alternate EOC, I am not going to be doing any training, so to use that room we kind of changed the scope a little bit to change the size of the room and put in the technology so that we can make it an alternate EOC also. Mr. Rapozo: And that is about six months out? Mr. Westerman: It is about six months out and I apologize that we did not get the full story to everybody sooner. It would kind of work its way through the system and it became what it is. As the deputy exposed, we are not going to even be able to use the space for about six months because Purchasing is going to move up into that space since we do not have the electronics yet to put in it and use it for their temporary office while they remodel their facilities downstairs. That is six months. Chair Furfaro: Chief, you have answered our questions... We do have a space planner onboard, we will be sending a separate communication after budget over to the administration. We wanted to be sure that we were in concert when we talked about the redundancy of the emergency facilities as well as 911 and you are only affirming to us that the information that we got from Civil Defense this morning is being worked into your plans. Mr. Westerman: Yes. April 9, 2012 Fire Department p.7 Chair Furfaro: And I think we are good with that at this point. Mr. Blalock: Another initiative that we will be coming up this year is our CADS systems which is Computer Aided Dispatching System that would allow our fire fighters really up to date things —they will be coming around the corner and we will be providing them with pre-fire plans, pictometry imaging, record management system, high speed internet also command post and communications for those. Part of this package also is our communications van which some of you have seen and we have utilized it a couple times in some of our incidences which was purchased with a public safety grant. This will enhance the command and control that we will have at both scenes here. Another one of our initiatives that we have done — to help hold down cost is that we continually as part of our organization we have asks for excess properties to help with managing our resources as a fire service. We have again requested and will be receiving—I think we have sent a communication into you folks—I do not know if it's there yet but we did send letters in to receive excess property of water tender to help us with water supply in areas that water is limited. We have also have been in dialog with the Honolulu Fire Department to receive one of their older water tenders which would again give the capacity to bring water to areas that is limited in water. We have also utilized a student from KCC to help us with data input and again to no cost to the County. It is a win/win for both of us as far as the student, she has some skill sets that she would be using to apply on top of her resume and it helps us as far as data input along with the prevention bureau. As referred to earlier, we talked about realignment and relocation plan for the ocean safety bureau and it will help us to better manage the ocean safety bureau. This would probably be a reoccurring theme throughout this presentation. Part of it is getting an ocean safety bureau in prevention and public education, so again education, education, as we go through this and as we try to better serve the community here. Kalani Vierra will be attending the National Conference in Miami and see Presidential approval for a National Beach Safety Week. Again, this year we have no large capital equipment items on the budget, although we do have some small vehicles on the budget that we are seeking approval for, for replacement. Chair Furfaro: On that note, are we going to be getting separately, I know that the ten years I have been on the Council, we have aggressively tried to have a replacement schedule for your main equipment as well as having maybe two of the trucks — the tankers, in reserve but will we be getting an aging inventory of your equipment even though you do not show any major replacements, will we be getting that Chief? Mr. Westerman: Yes, it is attached at the very end. You are absolutely right. We actually have —our two spares are significantly older vehicles and next year starting in budget, you will see that we are going to replace one because we have a lease falling off and so we want to pick up the next one as the lease comes on so the budget stays steady. The year after that 2014 budget or then 2015 budget, we will be requesting another one replacement so that way our in service reserve vehicles are not so agent that they become pretty much worthless and it is kind of the situation almost that we are in now. We put a lot of time and money and energy to keep the two reserves we have plus they also use them for training and we will identify that later on in the budget also. Chair Furfaro: Between pages twenty-three and twenty-five, is your aging inventory. Mr. Westerman: Yes. Chair Furfaro: And I want to make sure I confirm, as we had fall off on one lease, you will see on 2014 we will be starting a new lease as such. Mr. Westerman: Yes. April 9, 2012 Fire Department p.8 Chair Furfaro: That is the schedules on pages twenty-three through twenty- five? Mr. Westerman: Yes. Chair Furfaro: Thank Y ou. Mr. Blalock: Again, part of our vehicle replacement at least on our smaller vehicles, again, we have used some grant funding to help us with the replacement on that. Some of the challenges that we will be looking at this year is number one, community risk reduction—that is our number one priority and again firefighter risk reduction is our number two premise as we go through these challenges. As you have heard part of our problems that we look at again is staffing and staffing levels, trying to stay with seventeen, ten at the national standards that we are at. That also relates to staffing within our administration staff, again we have had a dollar funded clerk that we have had for four years and we continue to ask for the Clerk's position. Chair Furfaro: Let me ask you on the staffing issues because in my entire ten years on this Council, this Council has never pinched the Fire Department, so I just want to make sure you understand that if there was something on your wish list you did not get, I do not think it came from this Council. How many vacancies do you currently have—non-administrative? Mr. Westerman: Non-administrative - we have two firefighter vacancies. Chair Furfaro: And what is your hope of filling those? Are we recruiting classes from KCC? Mr. Westerman: The issue with... Mr. Blalock: Chair, when we look at filling vacancies and part of it when we asked last year is that we did —part of it was tied to the safer grant. We could not fall on the minimum level. Chair Furfaro: Understood. Mr. Blalock: So what we did last year, we asked for—we always had three dollar funded firefighter positions. We went ahead and funded and hired those positions that are kind of our saving grace right now. Chair Furfaro: From the grants? Mr. Blalock: From the grants. Chair Furfaro: And the grant was a three year period that depleted itself and we are almost out, right? So what is our plan now? Mr. Blalock: Well we are still in it. We are in year four of it but again what we did is that because we hired the dollar funded position, it not an urgency that I need to go ahead and hire one firefighter within the ninety day period because we went ahead and done that. We did our homework and looking at that — we would be covered. Again, when we looked at two firefighter position, it is not conducive or effective or efficient for us to do a class of two. We are probably going to look and see what happens through attrition and through the end of the year and April 9, 2012 Fire Department p.9 then with that coming up we will look at again maybe doing a class of five or something like that. That is where we are at right now. Chair Furfaro: Now I understand what you are doing for the firefighter positions. Of the eighteen positions that have been presented to us in the overall budget, are we filling the vacancy in your clerical spot? Mr. Westerman: No. Chair Furfaro: Okay, you have answered my question. That is something for us to look at down the line but that is one clerical position, am I right Chief? Mr. Westerman: Yes. Chair Furfaro: Okay, thank you. I am sorry to interrupt you but I have to take off at 2:30. Mr. Blalock: No, that is fine. It gives me a break to catch my breath. Chair Furfaro: I am sure you have a truck downstairs with oxygen. Mr. Blalock: We are requesting again and it is something that we looked down are two AC positions. Again for us if you even look at us nationally, we really are top light. Prior to Chief coming in there was just Chief and BCs and Captains level. I have come into a position I think that has afforded us and when we look at it, it has been a good thing but again we still need that mid-management level because of things falling through and everything becomes reprioritize so as far as meeting deadlines and accreditation, acceptable standards of coverage, thing like that, we really need to assign somebody and have the accountability to place it to someone in that position is kind of what we are asking for. Without the AC's—accreditation will be put on hold and we will probably taken off our goals for next year. AC —Assistant Chiefs. We are looking at Assistant Chief of Administration and Assistant Chief of Operations. Chair Furfaro: But, why would you be taking it off your goals? Mr. Blalock: Well what I am saying is that when we look at what we need and the resources we need as far as accreditation goals, we might be looking—if we cannot achieve it, we will probably looking at to take it off our goals because it puts on the waste side, it is not prioritized. Chair Furfaro: I guess what I am saying is that I would like the department to keep that on their goals and objectives and we are not limiting to just what we can accomplish in the next twelve months, let us look at the long term big picture and if that is something that is valuable to our accreditation, then we should not be holding it off year by year. It should stay in your narrative and it should be something that is on the wish list but at the same time, it has a little reach in it but it is obtainable. That is where we want to be. Mr. Blalock: Again, thank you, Chair. It is something that Chief and I have discussed many times again in looking at our strategic plan and again presenting like you are saying even if the wish list but we need to plot out where we are going and how we are proceeding as a department. I appreciate that comment from you. It is something that we decided purposely to have in and continually to ask for the AC positions. April 9, 2012 Fire Department p.10 Chair Furfaro: I would ask you to continue to keep it in your narrative and obviously it is a goal and it has some reach in it but we should know that it is part of the overall accreditation plan for the department. Mr. Rapozo: Chief, the two Assistant Chief's that you are requesting are — do they show up in the budget anywhere? Mr. Westerman: No. Mr. Rapozo: Okay. So, you are asking us? Mr. Westerman: No. We have already worked through the Administration and like what the Chair had said, we still need to keep this visible to everybody that we need this in order to move forward for certain programs. It is not that we cannot provide the service tomorrow without the AC's that is not the issue. The issue is that if we want to continue to grow and improve the quality of service to receive accreditation and to manage programs and reduce the risk and manage the programs or increasing programs that is just not enough senior level management in the department to do that. We cannot grow beyond where we are and actually I have turned down a couple of things that the Administration provided for me in the budget because I cannot manage it. It is okay to buy all the equipment in the world but if I do not have firefighters to drive the equipment, that is one thing. I can find enough firefighters to drive the equipment but if I cannot manage it safely, then that is where I have to say this is all we can do and we cannot provide anymore service than this. Now, if we want to go the next step, this is what we need and that is what we are identifying. We need the Assistant Chief in Operations to help us with that we have a couple programs that we would like to move forward, accreditation being one —Assistant Chief for the Administration the same way. And I am sure you know what that management level does for us... Mr. Rapozo: And I do Chief but I am reading your second bullet on challenges and it says two things, we are requesting an additional clerk over four years ago and we continue to request and then the second part is that we have requested additional senior staff for years and are requesting two Assistant Chiefs in order to bring order to the department. I just cannot find any in the budget itself. Mr. Westerman: Exactly and like what the Chair has said we need to continue to put that request forward and eventually the Administration will... Chair Furfaro: Keep it on the radar screen. It is a long term continuity quest. Mr. Westerman: And I am confident as maybe the economy turns around and there is a little bit more money that maybe the Administration will see that in order for us to push forward, that they will agree to that. We have had that conversation with the Mayor personally earlier today, we did discuss it some more and he has a good understanding of what it is that we want and what our desires are and I am sure some time in the next year or so, we will move forward with one if not two. Mr. Rapozo: And you are losing a senior clerk? Mr. Westerman: Yes. Mr. Rapozo: That is in the budget. You said you are requesting an additional clerk but in essence you are losing one? April 9, 2012 Fire Department p.11 Mr. Westerman: Well, that was a dollar funded position, it was never filled. Mr. Rapozo: The one that is being removed? Mr. Westerman: Yes. Mr. Rapozo: Or taken away? Mr. Westerman: Yes. Chair Furfaro: Chief, Councilmember Nakamura has a related question and then after that we need to take a tape change. Ms. Nakamura: Chief, what would be in your opinion the tangible benefits of accreditation? Mr. Westerman: Well the very first that comes to mind is the safety of the firefighters. When we establish as part of the accreditation to establish accreditation, it is like a self inspection program and you assess what you have done and how you are doing it and you then evaluate it against nationally excepted standards even local standards. You evaluate them so that you can see whether or not you are doing them more safely — more safely as you can be. If you are not, it identifies that and that reduces your risk. To me, I always say if we can reduce the risk we can knock off a zero and we are not prepared, one of the first things that if we have an accident, oceans inspectors will ask us — they want to see our training records, for example. Accreditation — make sure we are training our individual's right and we are training against the standard and that we are doing it routinely and we are doing it like we are supposed to. That is kind of what accreditation is all about—how we are doing it, are you doing it based on a standard somewhere and do you continue to do that? Not, penciling it in and putting it on the shelf someplace. Ms. Nakamura: It is really a risk management too. Mr. Westerman: It is a risk management, yes. Chair Furfaro: Chief, on that note, we are going to take a tape change. There being no objections, the Council recessed at 2:27 p.m. The Council reconvened at 2:37 p.m., and proceeded as follows: Mr. Kuali`i: Aloha Chief and Deputy. I am a little overwhelmed by what you had to present and it just tells me how much you guys have to do—it is a big job. I heard what you said about this — because we had quarterly reports from Human Resources and I was going to ask about those positions that you talked about specifically about the senior clerk and it being vacant on this report at least since April 1, 2009 and that Human Resources reports is as not recruiting nor request received. Obviously, you can initiate recruitment or a request if there is no funding and it is still showing as a dollar funded position. In the case of these two firefighter three positions, is that the two positions you were talking about? Mr.Westerman: Yes. Mr. Kuali`i: 711 and 774. So again, one of them was showing as effective date 11-1-11 and it says applications are being reviewed — County funded and then the other one effective 12-31-12, so more recent and same thing applications are being reviewed— County funded. April 9, 2012 Fire Department p.12 So in both cases it is County funded but it is because of the grant you talked about that was a three year grant but it was in its fourth year, it was still—got an extension for one year? Mr. Westerman: No the two positions that are open are funded. It is just that at this point in time it is not feasible to run a recruit class. Mr. Kuali`i: Oh okay. Mr. Westerman: What they are indicating there is that we are going through the promotion process and some recent months here to promote firefighters to those firefighter three positions. Then it will be firefighter's positions that reflect on DPS—Department of Public Service. Mr. Kuali`i: When the Mayor talked about the eighteen dollar funded positions that he is going to fund or proposing to fund and he funded them at eight months because he was allowing time for recruitment. In fact these positions if they are fully funded and they are not being recruited and not being filled and there is some lag to when it can be so—for whatever the fund reason, the size of the class or whatever, that would free up some funding to pay for the senior clerk. Mr. Westerman: I guess I am confused. We have five positions in the Fire Department that are not filled right now. Two of them are the firefighters three and they are fully funded and the choice is mine not to staff them currently. Mr. Kuali`i: And a wise choice if we can run a class of two. Mr. Westerman: Two of them are water safety officers which we are in the recruitment, we actually we have done the interviews and everything and our water safety supervisor is getting ready to present a possible list for me to review for hiring. The fifth position is the dollar funded senior clerk position and that is one July will move to Department of Human Resources. Mr. Kuali`i: But on that position it is dollar funded. Mr. Westerman: Right. Mr. Kuali`i: And it is (inaudible) to Human Resources as of December 31, 2001, not recruiting or request received. Mr. Westerman: Right because there was no funding, so I cannot... Mr. Kuali`i: I thought that perhaps when you were saying that those two firefighter's positions are not being filled but the funds were there but now you could use those funds to fill those... Mr. Westerman: Oh, I see what you are saying. There is some dynamic there. The first one is I would probably get a complaint from the union using one union salary's to pay for different union positions. The second one is because they are not there, I now incur overtime cost for people because we have to staff a certain level every day, so that funding is not readily available. Maybe part of it is but the full funding is not readily available. Yes, I understand what you are saying. Mr. Kuali`i: Okay. So the positions may be vacant and not recruited for yet but the funding is still being used to fill with other bodies and TA, overtime? April 9, 2012 Fire Department p.13 Mr. Westerman: Absolutely. Chair Furfaro: Chief, on the matter on payroll, I did a summary for the Administration after six months and the under amount for fire department for six months, you are actually including the added overtime. You were about fifty thousand seven hundred dollars still under budget. Mr. Westerman: That is good, that is close. Chair Furfaro: That is a little good news there. That was through the period that Mr. Kuali`i is referring to through December, about fifty thousand seven hundred dollars under budgeted for six months. Ms.Yukimura: I have a lot of questions but will we... Chair Furfaro: Why don't we let you start. Ms.Yukimura: Are we now in questions? We are done with the presentation? Chair Furfaro: I do not think we are done with the presentation, we still have one more deputy to speak. Do you have anything that came up in the narrative thus far because the Chief overrode my rules where I let him make a whole presentation but he said stop us anytime you want and that was his roll of the dice. Ms.Yukimura: Okay, two questions then. Could you give us an organizational chart? Mr. Westerman: Sure. That can be provided. Ms.Yukimura: And then just on the tangible benefits of accreditation and follow up to Councilmember Nakamura's question, I was a little bit puzzled that safety would be... I mean I know there can be improved safety but surely we must already have safety addressed? Mr. Westerman: Well yes but are we doing it right and are we doing it consistently and are we documenting it? That is what the rest of the program is. We have SOG's that say this is... Ms.Yukimura: SOG's are? Mr. Westerman: Standard Operating Guidelines, I am sorry. Ms.Yukimura: Okay. Mr. Westerman: We have some standard and general operating guidelines that tell us a basic approach in how to do most of every function that we have and that has a lot of safety built into it. When you write it, you are done and are we practicing them routinely and are we documenting that we are doing it and then if we find problems with that and it that is the second part of the accreditation is the reaccreditation every five years. Are you updating them and making sure that you have now changed the way you are doing business? An example is they say you should put compressor form on our fires and now we do. As you learn technology through the years and things get better, do we change the way we are doing business that is part of the accreditation and reaccreditation process. April 9, 2012 Fire Department p.14 Ms.Yukimura: Okay. Before we spend money for accreditation if our training as you say on page three of your presentation that we have not kept up with required certification and mandatory training, there seems to be an implementation here that we are in a catch up mode, it just seems like we should be really working on those things first before we go into the even finer areas of excellence. What I hear you saying and I have always supported accreditation for this very reason is that you reach higher level of excellence of performance, that is what I understood it accreditation to do in some respects. If we are not meeting our basic standards, I would prefer look at funding that first. Mr. Westerman: And thus the increase in the budget this year and that statement come from the last three years of reduced budgets. As we started to reduce budgets, if I remembered at about two years ago, we tried to do as much as we could in the 2009 budget, to spend as much training money as we can to get all the certifications and qualifications polled backwards, to get them updated. Because the budget was reduced, there is less money to do that. We pushed what we can push in a two year cycle off to the next year. And then in the next year you are only doing the very basic, the eleven budget and now again in the twelve budget as you saw, we spent ninety- nine percent of the money and still some things did not get refreshed that should have gotten refreshed since skills sets. But the most critical task stick and now in this year's budget we are saying look we have some things that need to get done, some certifications and re-certifications, qualifications that just simply have to get done. We are stretching, like you said we are stretching the envelope, absolutely. You are right... that is another thing with accreditation it tells you are you doing your training right? It evaluates your training program. What is falling off the plate, what are you not getting done? Are you being able to maintain your own standard that you set because accreditation is not always somebody else's standard. When you do your first accreditation you set your standard, what are you and your community willing to accept as the standard for your community? What level of service do we want? Do we want level four and we get there within a minute and we have fifteen fire trucks and a hundred people or do we get there in level one and we might show up sometime tomorrow? The accreditation process helps us set that level. Ms.Yukimura: That actually addresses another question that arose in my head, are we trying to reach national standards that are applied to big cities and so forth when we are a rural area. I like that idea that we set our own standards because we are a very spread out community too and we have used Davis California before, they have two fire stations or whatever and we have six for the same population but because of the way we are set up. Hopefully, we will address some of that with our land use planning as well. Coming back to the training, in looking at your training program you have stretched it and now you need to address the basics, is that what it is—the basics? Mr. Westerman: A good example of that is that we took some of the training money this year and we sent one of our firefighters out to get some special certifications and qualifications as a rescue diver instructor because we were lacking in maintaining that level of skill with our divers which is one of our most technical critical skills for our rescue firemen. We put the extra money into it this year because it reduces our cost in the future because if we do not have that skill in-house, we have to pay for that skill somewhere else. That means that we send a lot of firemen that are divers to get that skill or we bring multiple instructors over and consistently pay that. That is kind of what I meant how we push and pull and where we can make the savings in the program that makes it more beneficial in the long run. Ms.Yukimura: This is my last follow up question. When you train in diving, are it just the people who are involved in diving rescues or is it the whole department? Is it all your firefighters? April 9, 2012 Fire p Department p.15 P Mr. Westerman: Well the diving, no... Mr. Blalock: Councilmember Yukimura, I hear your questions and as far as what you are asking, they are because we have a rescue unit, there are a lot of specialty training that they have but even along with that there almost like an awareness (inaudible) type of training, it is not a rescue diver training which is higher up but we have firefighters that have (inaudible) in case they need to get in, they are not in a rescue dive mode but they also can go in as far as with the (inaudible) certification. A little bit of the push/pull things, I know you are a little bit worried about if we are letting certification lapse, we are not letting certification lapse, fiscal years and calendar years it does not line up and then generally what it is — for some of it certification and a refresher year and certification year, so it goes in two year cycles, not in everything but in some situations we can do that. As far as the refresher year versus a certification year, so that is how we manage some of those areas. We are not letting things fall but how we manage it is partly part of our job here and the training captains job in how we manages those training cycles. Ms.Yukimura: My question though, I hear what you are saying and I have Y g confidence that you are watching the basic certification so that the base of skills are not lost, it is just that are you also giving it out to others who do not really need it but it might be nice for them to have it? That is my question. Mr. Westerman: No, we do not... Ms.Yukimura: Are you giving your dive team the certification they need but then opening up the training to anybody else who wants it. It is a question about how you are using the training moneys. Mr. Westerman: Right and we do not do that. We train to the level that we need to have the people available. We do not just say it is the rescue crew because the rescue crew could be two people that day, so we might have other firemen or firefighter three's that are in the department, that are in another station that are trained in that level. They maintain that skill set for a while and an advantage or disadvantage in that what you are talking about — an example is that we might have young rescue man come in—a rescue firefighter two and he gets all this special certifications, he gets promoted to firefighter three and now he has to move out, because there is no firefighter three spot for him promoted in the rescue crew. He goes out and we try to maintain some of those skills that that person has as a firefighter three in case we need them back in the rescue crew. Eventually those skill sets will fall off. One, they do not want to dive anymore, the hazards involved with it, they do not want to fly anymore and then of course we have to train the new person. You are right, it is not every firefighter in the department that we do that, hazardous materials is one of the few that we train the majority of the department in versus a few only because that incident requires a lot more people. Yes, we do look at that and no, we do not just train everybody just because we can. The other part of that is we got a lot of equipment for the individual we got to maintain, that kind of stuff too. Ms.Yukimura: I like the answer trained to skill level that we need. That makes a lot of sense. Thank you. Mr. Chang: Maybe on another agenda item I have seen a lot of video of your training within the swimming pool, what you guys do in the helicopter for your divers, so maybe on another agenda item, I think the video would be very informational to all of us just to show the training that we have been talking about, number one. Number two, can you explain the water tender? What is water tender that you made reference earlier? April 9, 2012 Fire Department p.16 Mr. Blalock: Water truck with plenty water. I guess the best way to kind of explain it is in the old plantations days when you had the big truck with a lot of water in it... sorry to be like that but it is funny because how to go east of the Mississippi is called water tankers and then west of it is water tenders and some other places is water tankers or airplane with water in it and does water drops. Basically, what a water tender is, it is just helping us to bring water supply where it is needed in areas where a hydrant readily available or just due to the operations itself that needs to be refilled on an expeditious basis or something like that. Mr. Chang: Okay, thank you. Lastly, is there a number perhaps with all these responses and the incidences — do we have a breakdown as to how many are Kaua`i residents and how many are visitors? Chair Furfaro: I would like to hold that until we get to the helicopters. We got three more spots here, you have narrative on training, we still have narrative on water safety and we want to have some special dialog about the helicopters and we have not touched on it. Why don't I make a new rule Chief and you are going to apply to my policy, let the two deputies make their presentation and then we will come back. Mr. Westerman: We can go to our BC Albert Kaui and he can do his presentation and then actually we have each of the bureaus and you can choose whether you want to hear from them individually or not but we have the Prevention Bureau, the Training Bureau and the Ocean Safety Bureau. Chair Furfaro: We would like to hear from all three of them. Mr. Westerman: All three of them. So, if we just cruise on through all of them and then hold questions till the end? Chair Furfaro: And then you can call them up when we direct the questions at you. Mr. Westerman: Alright. ALBERT KAUI, Battalion Chief—Operating Bureau: Good afternoon Councilmembers. Decreases in revenues and the resulting reduced budgets combined with our already lagging infrastructure continue to widen the gap in our ability to provide adequate services and our continued preparation for the future. We have had a steady increase in our call load as visitors return, population increases and population ages. At the current rate of increase we went over five thousand calls again as predicted last year. The eventual return of large scale building and large tourism numbers will have its effect as we move forward. We continue to work and adjust our long range strategic plan and our short term goals and objectives to adapt to the dramatic swings in the economy. Our plan is to work as smartly as possible within the budget line items and transfer between funds only as necessary. In order to run as safely and efficiently as possible we have reduced some of our goals to below the accepted standards. As is the case with our daily staffing we try to maintain a standard of eighty percent versus the nationally accepted standard of ninety percent or better, in some stations close proximity helps, with the new Kaiakea station and SAFER staffing that helps but still without using more overtime and recalling firefighters we are still short of our goals. The NIST — national institute of standards and technology concluded that for a department to respond and complete the twenty-two most critical tasks safely and within reasonable timeframe the optimum daily staffing for an engine company is four firefighters. They concluded that the four person crews operating on a low hazard structure fire completed all the tasks on the fire ground on average seven minutes faster, April 9, 2012 Fire Department p.17 nearly thirty percent than the two person crews. The four person crews completed the same number of fire ground tasks on average, five point one minutes faster, nearly twenty-five percent better than the three person crews. It also concluded that time to water on the fire was improved by six percent over the three person crew. With the increased population and more so the increased call load for medical response, rescue response, natural and manmade disaster, and a host of other tasks that the department is asked to do today much less time is spent on training ensuring preparedness. This reduces the safety levels of our firefighters and increases the risk to our community. Successes and achievements. While we are still behind the national averages on staffing levels the department being fully staffed was able to maintain a higher than normal daily staffing average. There is still significant risk to firefighters with a delay response times to fully assemble a firefighting force. We were successful in saving two lives this year as a direct result of our increase in AED training and placement. This last year we purchased an additional 26 AD's so every truck in the department from F1 to OSB at Ke`e have an onboard AED. So far in 2012 we have had 2 lives saved accredited directly to the use of an AED. The County CADS contract is finally in full swing and with the additional of the ADAM software and the DECCAN software the program will be fully integrated with our RMS allowing for more information to our Captains as they respond to calls for service. Again, using firefighters in house and diligently applying for grants, we have replaced three of our trucks. We added capabilities to our helicopter operations, improved our pilots skills and our rescue personnel skills all using grant funds. This year the Fire Department responded to over 5033 calls for assistance a 9% increase over the previous year. We had 237 fire calls of which we investigated 16 fires this year with a total value loss estimate of $5,755,000 in damage and property. The 2 busiest stations are Kapa'a and Lihu`e. Our new Kaiakea station changed the response percentage between Kapa'a and Lihu`e a little but still leaving Kapa'a as the highest call volume. The additional of Kaiakea has had several positive results. First, the ability to relocate and respond to the Hanalei district without leaving the busiest district exposed. With the addition of the eighth station relocation and out of service duties for training allows for more on duty training without increased risk to the community. Some challenges. We cannot move forward without the proper staffing at the management level. The Assistant Chiefs of Operations and Administration are needed to keep programs on track like the defunct accreditation program. Many initiatives have been started but lack the following through without staff to monitor and manage the programs. Having a spare Engine fully equipped and functional for line duty is imperative to the safety of the community. Even with new operational engines, a reserve fleet is necessary to ensure 24/7 operations and a training fleet to teach our recruits and update drivers without affecting operations. Captain Tracy Cummings will do the Fire Training Bureau. TRACY CUMMING, Captain—Fire Training Bureau: Good afternoon Mr. Chair and members of the Council. I am going to skip my mission and goals and go right down to our successes and achievements. This year we completed a 16 week training course for the 23 KFD recruit class. This included fire evolution, ocean and mountain rescue principles, extrication, and a team building exercise at the ropes course in Waipa. We also had the completion of the KFD mandatory recertification training sessions which include 1st responder driver training, USIA, HAZMAT Tech, and HAZMAT awareness. We also conducted a joint search and rescue exercise with U.S. Coast guard, Civil Air Patrol, and Water April 9, 2012 Fire Department p.18 Safety Officers which consisted of utilizing radon along with Air 1 to effectively locate missing divers. The exercise reinforced our need for a better working relationship with the other agencies that may become involved and exposed the need for better communication training considerations for the future. We also had the additional of our grant acquired (inaudible) where communications capabilities immensely. We also conducted a state training exercise with the 93rd CST unit, along with the Kaua`i Police Department, the exercise consisted of the KFD's response to a clandestine situation along with KPD's Special Response Team and their clandestine team. The exercise improved our joint response to these situations and due to the success of the exercise it became a model scenario throughout the state. Due to the training bureau being instrumental in the planning and facilitation of the exercise we were invited to Maui County to be evaluators for their STX. Additionally, we received over 800 hours of education at no cost to the County of Kaua`i courtesy of FEMA. We sent over 20 firefighters to the mainland for training such as, Incident Response to Terrorism Bombing (IRTB), Prevention of and Response to Suicide Bombing Incidents (PRSBI), Radiological and Nuclear Response Training (RAD/NUC), Tactical Emergency Response Training (TERT). This is very valuable training at a significantly reduced costs. The cost of a single course is over ten thousand dollars per student, with airfare, per diem, hotel, ground transportation, facility cost, and instructor cost and we pay only two hundred forty dollars for our flight per diem. That is a huge savings for the department. Domestic bombing incidents in schools and illegal meth labs all follow the same basic protocols and these courses allow us the opportunity to respond and practice in as realistic a situation as possible. Some of the future initiatives of the training bureau is to establish and implement a "driver safety program" using MPRI's latest technologies in driver simulators. Also to establish and implement a respiratory protection program to ensure safety among fire personnel. To develop an initial fire attack program utilizing our burn trailer among fire line personnel that is measured and evaluated quarterly. To provide resources for further training and education in fire service fields of discipline through federal and state funded grants and opportunities thru FEMA, Department of Transportation, State Civil Defense and Homeland Security. Also we want to develop and maintain a more reliable and functional system of logging and tracking training records of all personnel and staff. To establish broader relationships with outside emergency resources such as PMRF, State Crash Fire, KPD, AMR, U.S. Coast Guard, Civil Air Patrol, and Civil Defense. But, it came with some challenges. With the training bureau consisting of only 2 members, facilitating quality training opportunities for 143 members is mediocre. More personnel are needed to conduct, evaluate, and track training progressions of our personnel. Consistency in records keeping needs to be more systematic in order to track them accurately. More clerical support is an essential needed. The training bureau has a 1999 Chevy Blazer and a 1996 Ford F150 that are in constant need of repair. These vehicles are used to transport equipment and personnel as well as to respond as Safety Officer in a multi company emergency situation. Our two training fire engines are also used as spares for first line response. These two engines, both 1994 Seagrave Pumpers require costly maintenance and upkeep due to their age. With the lack of a fire training facility, often schedules have to be made around other county agencies for the use of certain venues. Time lines do not always coincide with learning resources. Completion of the annual physicals with limited funding denied us the opportunities to offer a more comprehensive examination. A more detailed and involved exam is needed due to the fact that we are exposed to many hazardous environments. Lack of certain exams such as pulmonary function has hindered our ability to attend certain specialized training due to noncompliance to OSHA requirements. This is part of our budget increase. That is all I have for you today. Chair Furfaro: Let me ask you a couple questions. Mr. Cummings: Yes, sir. April 9, 2012 Fire Department p.19 Chair Furfaro: Why the under budgeted money especially as it does deals with the health and wellbeing of the officers and we are not completing this pulmonary check periodically. I mean, is this something that we should be doing and we just did not budget for it? Mr.Westerman: Well, it is budgeted this year. That is what he was saying. Chair Furfaro: Okay. Mr. Westerman: It was budgeted this year due to the increase pulmonary test and some other testing in the budget this year. Chair Furfaro: And then on the vehicles real quick. We had the Ford and the Blazer but the Blazer is young of the two but why are we not replacing the 1996 Ford? Mr. Cummings: The Ford is in fairly good condition. Chair Furfaro: It is older but better condition. Mr. Cummings: It is older but in better condition. The Blazer has been used as the old Battalion Chief vehicle. It has more mileage, it also caught fire on one occasion. Chair Furfaro: Okay. So, the 1996 Ford is just aging with a little bit more dignity? Mr. Cummings: Yes, sir. That is a good way to put it. Chair Furfaro: Are these vehicles showing up on your aging on pages twenty-three, does that show up on that aging list? Mr. Westerman: No, sir. This line is only the firearm apparatus. Chair Furfaro: Okay. Mr. Westerman: It is not the truck replacements — like ocean safety trucks or prevention truck or my truck—this is just firearm apparatus. Chair Furfaro: But somewhere I am going to find the 1999 Blazer being replaced? Mr. Westerman: Yes, it is. Chair Furfaro: Do I assume that... Mr. Westerman: We have four trucks in budget are being replaced. Chair Furfaro: But the 96 Ford is not one of them this year? Mr. Westerman: No, sir. Chair Furfaro: Questions on training, members? Thank you for a good report. April 9, 2012 Fire Department p.20 Mr. Cummings: Thank you, sir. Chair Furfaro: Vice Chair Yukimura. Ms.Yukimura: You mentioned in challenges with the training bureau consisting of only two member facilitating quality training is 143 members is mediocre—is that what you mean? Mr. Cummings: The facilitation of it is —because we have only two members, we have pretty much got to be everywhere all the time and it is pretty hard to get to be everywhere. Mr. Westerman: What we are getting at is that it is a challenge for the two — just the two to ensure that everything gets done. We get a lot of assistance from the line firefighters to assist with the training. Ms.Yukimura: That would make sense if you have senior members who are well trained in something, I am sure there is different levels of training running from watching videos to getting hands on training to actually getting out into the environment where you need the training. And you must hire some specialist as well to do certain kinds of training. Mr. Cummings: Well it is not so much the training itself, it is the management of it all and the facilitation of it. For two members to plan and to facilitate it has been tough. Mr. Westerman: An example is the last three and a half weeks, the second guy in training has been in Florida doing the divers certified training. That leaves the Fire Captain, Tracy Cummings, to do all of that training on his own. The challenges of the two individuals trying to maintain all of those records and the certification process for all of the firefighters. Ms.Yukimura: In terms of the recordkeeping, the use of IT or technology — are there new ways to track these things? Mr. Cummings: Well what we are using now is our record management system which is what we use to track our incident calls and stuff and we are slowly integrating our training records into that. As the crews do their daily training, they input it there and it becomes available to us. It is automatically kept in a data base. Ms.Yukimura: I found that your successes and achievements mentioned on page five, using the daily log book and managing daily staffing and timekeeping, I found that very commendable. I am hoping that as you integrate that with the best practices and information technology, you might be able to do some of it without additional labor or positions. I thought that was not for Fire necessarily but for all of us that was to be the benefits of IT, right? I know that it is not a complete substitute but I am hoping that we are developing the best of those systems before we ask for positions? Mr. Westerman: You are right Councilwoman but the other side of that is and (inaudible) the record management system we have for example, this is our system software is one of probably, I would guess what brand it has — forty-five or fifty different system software out there that IT has to help us manage. We have their support, Garret is onboard as our IT rep and we send him to training on our systems but it still requires input, it still requires management by Personnel and it requires a lot of management by IT to help us manage the software. The biggest problem is the integration of the software's. April 9, 2012 Fire Department p.21 Ms.Yukimura: Absolutely. And as we look at a payroll system and an employee records tracking system, we are going to need to interface all of this. The certifications, the trainings, they all have to be a part of the Personnel record, I would guess. Mr.Westerman: Right. Ms.Yukimura: And it is troubling that we do not have a basic system that is the very best that we can then work on the interfaces of that to — so we do not have forty-five different systems to train in or to manage. That is a County wide issue that has come up in previous sessions but... Chair Furfaro: Chief, we do have Finance here tomorrow and we probably would reach out with that question with IT. Mr. Westerman: But it is a challenge, I agree with you, to try to integrate them all is one but to try to get a system that fits everybody, I do not think you will ever find that shoe. There is still going to be issues in the way the PD handles their records management, how we have to have information... Ms.Yukimura: "PD" is? Mr. Westerman: Police Department. They have a records management system as part of the compute rated dispatch, they just brought theirs. We did not convert to their system, nor were we on the same system in the past as far as records management. It is just simply that is software manufactures are and I would say yes we can try to combine as much as we can but... Ms.Yukimura: But that is why you have an in house IT, so that all the systems can be intergraded somehow. Mr. Westerman: If that could happen, that would be good. Ms.Yukimura: I guess for you folks, is there a system that is the best practice for fire departments? Mr. Westerman: There are a hundred different record management systems out there for fire and we went through a big process to acquire this one and it is a good system and it functions well for us. It is able to integrate with the new CAD's that police just brought but we did not want opt to take the records management system that came with the new CAD's because it does not function the way we want it to function because the CAD's system bought is a police based CAD system. It does not function the exactly like fire. Believe me, we respond differently, our requirements are different, our reporting requirements are different, so that is why we get the then differences in the system. Ms.Yukimura: And there is no jurisdiction in the Country where the Police and Fire have actually or a software provider has figured out how to make an integrated system between Police and Fire? Mr. Westerman: I am not saying that there are not. There are integrated systems and there was one here if you wanted to spend twice the money then why replace the system that is working for Fire?Does that make sense? Ms.Yukimura: Because it might cost you more money over the next ten years to try to integrate the system. April 9, 2012 Fire Department p.22 Chair Furfaro: Let us put that on our IT issue. Ms.Yukimura: It is actually an IT but it is also interdepartmental. Chair Furfaro: Chief, I guess the choice of the word"mediocre"it might... Mr.Westerman: I will correct that in the future, Chair. Chair Furfaro: Safety questions at this point? Training questions? If not, Tracy, thank you very much. Mr. Cummings: Thank you and I would like to call up Captain Daryl Date. DARYL DATE, Fire Prevention Bureau: Good afternoon Council Chair and Councilmembers. Some of the successes and achievements of the bureau within the past year: the adoption of the NFPA 1 Uniform Fire code 2006 edition with local amendments. This code has taken effect for Kaua`i County on December 8, 2011. Presented the annual Fire Prevention Week Campaign message top over four thousand youth in an interactive and exciting skit. This type of presentation while very time consuming allows for a greater interaction with the youth and helps to start the conversation at home extending the reach of the program. The prevention bureau got awarded a fire safety grant of$130,000 from FEMA to purchase a fire safety trailer. This trailer will be an interactive educational tool to teach community members of all ages, fire and personal safety. In keeping with the Mayor's Holo Holo 2020 plan, we are reaching out an partnering with community to increase outreach, and expend the CERT program. Our fire inspector two, attended an installation of sprinkler systems class put on by the NFPA. The primary duty of the fire inspector two is plan review. This class has increased his competency level to perform this duty. The newest inspector in the bureau has attended and passed the new fire/arson investigator academy put on by the public agency training council. This inspector is now more proficient and self reliant in investigating structure fires. Three inspectors attended a burn to learn class on Maui. Actually, live burns on a variety of materials created a hands-on perspective to learning. There was also a side by side burn comparison of a mock living room with fire sprinklers in one and the other without. Some upcoming initiatives for the bureau: the award of FEMA grant for an education trailer will allow us to improve our county wide relationship in education our keiki to kapuna in all hazards approach. We will provide fire education and prevention training, disaster preparedness training for hurricane and tsunami, and neighborhood watch. To input data of island wide businesses to populate the records management systems for the mobile data terminals. To utilize the MDT's to its full potential, vital information that will be available to the responding engine company to any incident must first be inputted. Complete business inspections of apartments and condominiums. Inspections for all apartments and condos on the island are almost complete. Facilities on the North Shore are all the remain. Streamline process of collection of fees by the Bureau. With the adoption of the new fire code, three accounts have been created so that monies collected can now be used for the duties associated to the Prevention Bureau. One account is for fireworks permit and license fees. Another account is for miscellaneous permit fees such as temporary structures, LPG tank installation, and assembly occupancies of over three hundred. The last account is for plan review fees. Incorporated an after action report of line personnel for structure fires. The focus is to enhance the work performance of firefighters at fire scenes, and complete the link between the fire attack operations to the fire investigation aspect of structure fires. The fire investigator of the incident will explain the origin and cause determination. Positive results that aided the April 9, 2012 Fire Department p.23 investigation from actions taken by firefighters will be discussed, as well as things that could possibly have been done differently. Develop a prevention bureau website for more streamlined processes for information or permitting. Create FAQ page for different customer bases i.e., contractors, permit applicants, etc. Customers can find information on fire regulations they would normally call in for. Customers could also possibly apply for permits and pay on line. Permits could then be tracked and managed more effectively. Fireworks permit could be plotted on a map to verify locations. Need to develop standards guidelines for every activity in prevention bureau so that new inspectors can easily be trained. Some of the challenges that we are facing in the bureau: education, education, education—is our biggest challenge we must continue to find ways to engage the community so that we can continue to educate them about the hazards. The local business person is so engrossed in just making the sales of the day they sometimes overlook the simplest on items. If we can meet with them at least once a year and go over the facility maybe we can avoid a fire or injury. The homeowner, is busy with their daily lives working and managing a household. If we can engage the youth at school and encourage them to take home the message then maybe we have prevented a fire in the home. Upon the arrival of the fire safety trailer, a multitude of educational sessions will be requested by the community. At least two inspectors will be needed to manage these trainings. This will take away from the day to day duties that must be completed. This creates an opportunity to integrate the community via the CERT and other community based organization. To maintain the continuity of the prevention bureau. The creation of the firefighter one, two, and three positions provide lateral movement within the department. A means to make the forty hours a week prevention bureau more appealing to fire personnel must be created as so to prevent the revolving door. With just four personnel in the bureau, and two of them being firefighter three positions, must strain is put on the Lt. and Captain to constantly train the inspector one and firefighters threes to the point that their competency level allows them to be independent. Pay is not the only driving factor for recruiting and maintaining longevity in the bureau. Proactive use of technology can create more efficient use of time, and free inspectors from being kept in the office. Mainland and off island training may be appealing. The opportunity to quickly advance in rank is also attractive. We need to develop a package that is both appealing and efficient and start recruiting suitable personnel. The inputting of data into the RMS system to feed the mobile data terminals is extremely tedious. Information from business inspections that were once and still is on hardcopy must now be inputted into the computer. There are over three thousand businesses on the island. It takes one inspector approximately eight hours to input a dozen businesses. To maintain the business inspection rate at a five year cycle as mandated by State law. The Bureau averages about two hundred business inspections a year. This rate puts the inspection cycle at 15 years. To have fire extinguisher training sessions be a one person operation. With the current vehicle that is used to transport the fire extinguisher trainer to and from different businesses and community locations, two inspectors are needed to lift the equipment onto and off of the vehicle. The bureau averages 45 fire extinguisher training sessions per year. It takes an average of four hours to complete a session, which includes loading, cleaning and put back of the equipment. This adds up to one hundred eighty man hours spent on fire extinguisher training sessions alone, for two personnel, which is half of the Bureau staff. To accomplish this goal, a van with a lift gate is requested. To keep up with the consistent growth of the island's business and residential sectors with limited number of staff. An increase in staff is needed to take on this increase of workload. To utilize vehicles as April 9, 2012 Fire Department p.24 mobile offices to go directly out into the field instead of first reporting to the office, then out to the field. Bureau issued smart phones could instantly report personal schedules to all inspectors. Phones can also keep inspectors available for standby duty. Call forwarding from office keeps inspectors available to public inquiry. Mobile tablets can be used to directly input inspections. Mobile printers can produce completed forms to business owners. Inspectors would just need to report to the office to synchronize data back to the database as needed. This concludes my presentation, any questions? Chair Furfaro: I am going to give you, my two questions first and one is a statement and I do not want to get into a lot of dialog about it. In today's meeting with Civil Defense, there was a number of concerns raised with the citizen's emergency response team and support (CERTS). It is something that seems to have dormant on us and in forty-five days or so, we are going to have a special agenda item here but I would like to know, is the Fire Department taking the lead on this through Caption Date's office, is it Civil Defense? Who is the lead agency for CERTS? Mr. Westerman: Well Chair, I know you said you did not want to get a dialog of it but... Chair Furfaro: I just want to know who... Mr. Westerman: The fire department is responsible, sir. It is an active program. I guess some people have a different opinion but as you can see we are very active with the Princeville CERT group who has volunteered to help us out with this training program. We have CERT people from Kekaha all the way to Princeville which you heard this morning of course, Hanalei does not seem to be interested in CERT right now. Chair Furfaro: It is quite opposite from what I know from being out in Hanalei and we have talked about with Puupoa, that community—Bill Troutman in Kilauea seems to be active but I just want to make sure, I do not want to have a lot of dialog but who is leading that and I appreciate the Fire Department saying that function is ours. Just the heads-up, we are going to have a discussion just of CERTS. Mr. Westerman: I look forward to it. Chair Furfaro: And what kind of resources we need to apply to that, I am good with that answer Chief, I am good with the Captain Date. When we talk about the training effort that you have, I know you gave us some good numbers here about the loading and unloading of the fire extinguishers and so forth, but if it is a hundred and eighty hours a year for that training, that is about eight and a half percent of your training time if the other person is doing two thousand eighty hours of full time work a year, can we discuss some of these training items by using volunteers? If we train the CERTS people, can the CERTS people eventually participate in some of the other training that goes into the department? Mr. Westerman: Chair, I think that should be part of the discussion forty-five days from now. Chair Furfaro: Great answer. Mr. Westerman: Alright. Ms. Nakamura: The discussion about the smart phones to make your operations more efficient. April 9, 2012 Fire Department p.25 Mr. Date: Yes. Ms. Nakamura: Are any funds in this proposed budget to do this proposed budget to do this? Mr. Date: No. Ms. Nakamura: What would be the budgeted amount needed in order to do this? And this is something you can come back with — we will put in writing for you. Another gY p g Y question that I have is — it says here to maintain business inspection rated a five year cycle, it is mandated by State law, what is the ramifications if we do not do it every five years? Mr. Date: I am not sure on that. Mr. Rapozo: Just do not tell them. Ms. Nakamura: Let us hope they are not watching. Because I think there is different ways to approach that. Either you have more inspectors or we would have to increase our goal of six hundred business hours per year in order to meet that five year goal. Mr. Date: Right. Mr. Westerman: And some of the data originally came about two years ago. Because we were not getting everything done, more so in Honolulu then on Kauai, with State facilities, State airports have taken over doing state facilities at the airports, that is giving us a little bit of reprieve but not much. Part of the problem additionally with this especially when you talk about businesses, in the five year cycle, the same building can have three businesses, so if you go to Kukui Grove for example, and you do all the businesses and you say, well I do not need to go back for five years, which is not the case. Three or four businesses can turn over there, so you end up going back, so it is a multiplier and I do not know that there is a quote/unquote fine for us not being successful but we try as Daryl had pointed out... Mr. Date: All of the apartments and condominiums. Mr. Westerman: And if you remember we did all the bars and restaurants the year before to try to get certain groups done. Ms. Nakamura: How many inspectors did it take then to do the two hundred business inspections per year? Mr. Date: Basically, two. Ms. Nakamura: Two. Mr. Date: Yes. Ms. Nakamura: So to get to six hundred businesses per year, you would need four more bodies? Mr. Date: Being with all the workload that we need to do within the bureau, four would be at the most. April 9, 2012 Fire Department p.26 Ms. Nakamura: You are saying it takes one inspector to input eight—it takes eight hours to input a dozen businesses? Mr. Date: Yes. Ms. Nakamura: And so that means that the — if you have three thousand businesses, that would take two hundred and fifty days out of the year in order to do this. Is it the inspector who is inputting this data or do you have clerical staff to input the data, or is it best to be done by the inspector? Mr. Date: Like the Chief mentioned earlier, we do have an intern and we are currently using the intern to help us out in inputting this data. Ms. Nakamura: It is quite a huge task to input it. Mr. Date: Yes, it is very time consuming. Ms. Nakamura: And then as you are doing the inspections then you need to update the data? Mr. Date: Yes. Because up until recently all of the data was all on hard copy. Ms. Nakamura: Thank you. Mr. Chang: One of my concerns is what the Chair has brought up in the community emergency response team which we are going to hear about but anyway... for myself and the viewing audience again, I think you mentioned NFP and also LPG — if you can use that in a sentence and explain it because I kind of looked around and I could not find it. Mr. Date: LPG stands for Liquid Propane Gas and I believe that NFPA used—stands for National Fire Protection Association. Mr. Chang: My next question would be for the chief, are the other Counties National accredited? Mr. Westerman: Honolulu, is and PMRF, is, and Maui is working towards it. Mr. Chang: How many Assistant Chiefs does the County of Maui have or say for example the Assistant Chiefs for the Big Island, do we know that? Mr. Blalock: Currently the Big Island have two Assistant Chiefs and Maui also have two Assistant Chiefs but again even below that layering of Assistant Chiefs, they have special opts Chiefs and.maybe even two Battalions as opposed to one Battalions in which we carry. Their system also has afforded them clerical help in prevention, training—each division, they would have clerical help in these divisions also. The AC's again would have one in Admin, they would have one in Operations whereas the Big Island just due to their structure, they also have an AC of medical because they do have the emergency medical services on the Big Island. Mr. Chang: So the layers would be consistent with Prevention or Training? In other words, we have two training, is that true — Mr. Cummings and Mr. Garcia, for example. So those other counties have additional layers of help that our staff does not have? April 9, 2012 Fire Department p.27 Mr. Blalock: Yes. Mr. Chang: That is the consistent case with their staffing? Mr. Blalock: Yes. Mr. Rapozo: Please keep the questions to Training and not accreditation because we still got Ocean Safety which I anticipate a bunch of questions. Ms.Yukimura: First of all, congratulations for completing all of the business inspections of apartments and condominiums. Mr. Date: Thank you very much. Ms.Yukimura: The layout of your report indicates a lot of thinking about how to do things better, so I appreciate that. With this fire extinguisher training sessions, it is brilliant to say that while we can do it with one person, that is like our automatic rubbish pickup, instead of three people, we have one person using as you put it proactive use of technology. Do businesses pay for this training or is it something that we give to them free? Mr. Date: It is something that we provide free of charge. Ms.Yukimura: Is there a thought that we might just require all businesses to have this training and then let the private sector provide the training? It could even be another nonprofit like the Chamber of Commerce or it could be a business where they come train because it is required that everybody has to get this training. How often does a business have to get fire extinguisher training? Mr. Date: A lot of the businesses, they do it annually and I believe it is a mandate by... Ms.Yukimura: State law? Mr. Date: Yes. OSHA. Ms.Yukimura: OSHA, okay. Mr. Date: For a number of employees to train. Ms.Yukimura: Okay, so you already have a requirement that they have to do it and if they do not do it, then they are violating OSHA laws? Mr. Date: Do not quote me as saying OSHA but it might be actually a corporate requirement, I am not exactly sure. Ms.Yukimura: Well I am sure that... well I am starting to think that County — have we trained everybody to use fire extinguishers within the County itself. It is in the businesses self interest to have regular trainings of this, right? Mr. Date: Yes. Ms.Yukimura: Because you have change in personnel and so forth, so the person in the offices where the extinguisher is if the personnel changes, you have to update whoever April 9, 2012 Fire Department p.28 is new. It just seems to me that we are giving it free and is it perhaps you could just relieve the burden off us — the County and have it as a business, somebody who knows how to do the training just go around training but be paid for it? Mr. Date: That is an idea. Mr. Blalock: Part of it too even with the training, it is as the Fire Department we providing the service and part of it again is building relationships with those that are there. They are still part of all these shareholders in which we are responsible too. Part of it is building a relationship that is visible and there is value to that also. Ms.Yukimura: I agree. Is that the only interface we have with businesses? Mr. Date: No. Ms. Yukimura: If we are only doing it every fifteen years, we are not having that much of a relationship. But I am really respect the way that you folks have been systematically trying to get it done, that makes... but if that is the only way we establish and it is the only effective way of establishing relationships with a business, I agree that has some value. Then maybe we should be charging a fee at least but I actually think this is something you can... we usually do things if the private sector cannot provide it better than we can and it just seems like... then you could do so much of the other stuff that the private sector will not do. Mr. Westerman: We can surely look into that. There is other benefits, we do inspect their facilities when we are there and give them some hints on what might be safer practices for them and those kinds of things. Ms.Yukimura: Do we do that as part of the training? Mr. Date: Yes. Ms.Yukimura: Okay. Mr. Date: Fire Safety. Ms.Yukimura: Okay. Mr. Westerman: And we can look to see if there is somebody else that would be to provide it, it would just be the expense that is pushed on to the businesses versus the County. Whatever you would like us to pursue. We kind of like the scenario because we do get that interaction in the community a little more so and it is a little more personal for us. There are companies that inspect the buildings that have systems in them and they are required to be inspected. This also gives us the opportunity to make sure that those businesses that are providing that service are doing it correctly. Ms.Yukimura: I can see really some benefits to that if it is not fire extinguisher training but it is also inspection, are you also doing inspection of the business? Mr. Date: Not every year. If we go out and do the training every year but we also include a fire safety presentation as well. Ms.Yukimura: Because if you do both, it will take more time and it will not just be a hundred eighty man hours right? April 9, 2012 Fire Department p.29 Mr. Date: Yes. Ms.Yukimura: I guess it is just worth an analysis, I understand that it may be much more complex than I am looking at it and it may have more benefits then just training people to use an extinguisher. It is also —I can see labor intensive and I commend you for trying to figure out how to cut down on the labor.You have already identified one way by using the a van with a lift. Maybe just some analysis about what would be the most cost effective way to meet your multiple goals here. Mr. Blalock: One specific training,just as an example, I think two or three days ago, Lihu`e Station actually went down and had a good exercise with the Marriot as far as high- rise that we have, along with their security systems and their staff there. So when you are saying— it is not only specific to fire extinguisher training, there are other trainings that go on as part of— just being part of the community (inaudible) and checking their system as they work with us within that system. Ms.Yukimura: Did you train them in fire extinguisher as well at that time? Mr. Date: Not at the same time. Ms. Yukimura: I am not saying to put all of the trainings or work with businesses like what was just... I do not think there is anybody that could do the training that you just described so please do not misunderstand me. I am only talking about this extinguisher training. Mr. Rapozo: Thank you. I will just tell you right now as a business owner if you charge me, I would not call you. You would never get to come to my business and give me tips. I am just being honest. Businesses come in and they having a rough time, they cut out anything like that and I guess I just disagree that that is the service that we should offer. Get you in the businesses, look at some safety issues, fire issues, save the guy some heartache down the road before his building blows up. Ms. Nakamura: As part of the accreditation—would they be looking at... if we initiate it, would they be looking at inspection cycles? Mr. Westerman: Yes and actually the accreditation looks at everything that we do. Ms. Nakamura: So everything we are doing should be focused on how do we get to a successful accreditation and we should be working toward making that a priority if that is the direction we go. Mr. Westerman: Yes, Councilmember. Mr. Kuali`i: Very quick question. I did not necessarily hear the difference in the narrative but in the actual dollars under travel basically, airfare, per diem, car rental, there is a grouping called general and then another grouping that is called training, what is the difference between... why is it separated out like that? Mr. Westerman: Which bureau? Mr. Kuali`i: Prevention Bureau. April 9, 2012 Fire Department p.30 Mr.Westerman: Training is like the NFPA training that we sent the fire inspectors to—arson training, skill sets that they have to have that are training requirements. The other training are meetings like State Fire Council, they are —as part of the State Fire Council, we have the training captain as part of that and he travels for those meetings. Conferences local in the State that they are required to (inaudible) or we requested they attend, those are the kinds of other travels. Mr. Rapozo: Ocean Safety. KALANI VIERRA, Ocean Safety Bureau: Good afternoon, Council Chair and Councilmembers. I am the Operation Supervisor for the Ocean Safety Bureau. I will be skipping our mission statement and goals and objectives and will go directly into our successes and achievements. The Ocean Safety Bureau was again successful with our Junior Lifeguard program and won for the eighth years in a row. They have worked hard through the year to improve our water safety message and managed to get a video presentation on Hawaiian Airlines inbound mainland flights discussing water safety with myself. The Ocean Safety Bureau has worked hard over the last year to be inclusive and improve its interagency relationships. It has provided its Jet Ski training to the Kaua`i Fire Department, PMRF Fire Department, Department of Boating and Recreations, Department of Land and Natural Resources. The program is so well respected within the pacific region we were asked to go to Guam and assist with the department of a Jet Ski program and provide training for their ocean safety resource crews. Our own Jet Ski program along with the premium pay program has been extremely successful and is the example for the state and is currently being adopted by other county departments. The last years drawing rates are down from a record high fifteen in 2008, fourteen in 2009, nine in 2010, and thirteen in 2011. We must attribute some of this to the relationships we have continued to foster in community with the Junior Lifeguard Program. Water Safety Task Force, Kaua`i and Hawaiian Lifeguard Association, Kaua`i Explorer Daily report, the WAVE project, and the Rotary rescue Tube Project and the Beach Guardian program. Without community support we could not make these great reductions. In 2010, the OSB had a total of 1,683,925 beach attendance, 328 ocean rescues, 78,569 preventative actions, 3,200 1St Aids. In 2011, a total of 1,387,252 beach attendance, 378 rescues, 55,060 preventive actions, and a total of 3,416 1st Aids were conducted. As you can see our beach attendance went down but our rescues went up. Beach Safety Week is an ongoing celebrated event every May of each year, promoting beach safety in schools, businesses, and including public safety announcements. OSB celebrated this important USLA vent with the nation. The near future plan is to ask the President to declare beach safety week. The Ocean Safety Bureau supervising officer has been reallocated from WSSO to WSO- V. Three new rescue jet skis and four new ATV's are being utilized at different beaches around Kaua`i. The Kaua`i lifeguard Association has put on a huge fundraising campaign called the 1st Wave, to raise funds for these state of the art equipment. The standard operating policies and procedures are being updated. The operation can flow much smoother and with accountability. The Hanalei and Po`ipu storage/substation computer and printer capabilities. This will eliminate a lot of drive time to and from office with official paperwork. April 9, 2012 Fire Department p.31 The OSB started a monthly new article to provide information on our successes and present ocean safety information. As discussed earlier OSB is working on a realignment and reallocation plan for the ocean safety bureau to better supervise and manage our water safety personnel. As part of the realignment we are proposing in the future an OSB Prevention and Education Officer to assist with public education. The Prevention/Education Officer will also assist the OSB is creating a Keiki Junior Lifeguard Program for kids 8 through 12 years old. OSB will follow the guidelines of the successful Junior Lifeguard Program. The first trial starting date will be in June 2012. As part of the Fire Department Helicopter operations, we will be adding training and familiarization with our OSB ersonnel to assist in ocean rescue operations. The Jet Ski Program is p p g the most effective part of the OSB operations, numerous lives have been saved. A pilot roving Jet Ski Program is in the initial stages. The hopes are this program will improve our water rescue response times. The Kaua`i Lifeguard Association and the Ocean Safety Bureau are collaborating with the Kapa'a Rotary Club to return the ocean safety video at the airport baggage claim areas. Some of the challenges that we have are: Storage/substation facility for our East District is an ongoing problem, to protect some of our vital rescue equipment from the weather and salty environment. It would also serve as a work station for our East district supervisor. OSB is currently storing the trucks and ATV's at the Kapa'a Fire Station in the open weather after hours, creating possible vandalism, theft, and corrosion potentials. The long term injuries have been having an effect on manpower coverage. Overtime has gone up and the on-call lifeguard positions have been working on 40 hour 89 day contracts. Within our ocean safety public awareness and education campaign, we have lost major supporters in the funding our beach safety guides. This is huge in our ability to provide these beach guides around the island to hotels and businesses. We are working hard trying to gather new supporters but without them our message is not going to get and this will have an impact on our drawing rates. The OSB is not funded to change out our beach safety signs and a majority is either missing or rusting and ready to fall down. The challenge is maintaining and replacing these signs in the most corrosive environments. We are not staffed to do this work and depend on other agencies to budget, prioritize, and replace. Given the recent court decision on signs, we cannot afford to let this continue. Periodic equipment maintenance and repairs, scheduling have some conflicts due to the availability of the fire mechanic or the transportation mechanics. Special equipment has to be sent outside of the County jurisdiction to be repaired, like the water crafts, or trucks with patch and paint requirements. We have two small vehicles and equipment that is in desperate need of replacement. The Ha`ena tower and Kekaha tower truck is need of replacements due to the corrosive frame and chassis. These vehicles are vital to the operations because of the towing and 4x4 capacities. The OSB is requesting an increase of two on call lifeguard positions to assist with coverage, due to long term personal injuries, industrial injuries, vacation request, and sick leave. A re- allocation within the OSB operations could take place for the Prevention/Education Officer. Here is our little replacement plan on vehicles. Question? Chair Furfaro: Kalani, your replacement of vehicles is a sublist in addition to what you got on page 23 through 25, Chief? Mr. Westerman: Yes, Chair. April 9, 2012 Fire Department p.32 Chair Furfaro: But they do not show up on your list on page 23 to 25? Mr. Westerman: No, but two of them do show up in the budget. Chair Furfaro: Okay. Mr. Westerman: Two of his four vehicles are in the budget and two like he said, we are having roof line replacements and major work on all of them. Chair Furfaro: I think some of the narrative gets lost. We see money in the budget but we are hearing from him that they need replacement. We do not know if it has been budgeted to be replaced or you are asking us. So, the two trucks I guess that is Ha'ena and Hanalei, is that correct, Kalani? Mr.Vierra: Yes, Hanalei and Kekaha. Chair Furfaro: And you have four trucks in your total fleet? Mr.Vierra: In our total fleet, no, we have more than four trucks. Chair Furfaro: How many do you ou have? Mr.Vierra: About eleven. Chair Furfaro: Do we have an aging schedule for those vehicles? Mr. Westerman: I can get that for you, sir. Chair Furfaro: Okay. Make a note that we want to get the aging schedule for the lifeguard trucks. Do you know the year and make of those two trucks that you are getting replaced? Mr.Vierra: Two — 2000 Dodge Dakota's and two — 2002 Ford Rangers. Two of the four is still in operation, the other two are limited on— I would not use it for emergency response. Chair Furfaro: Do you know which two they are? Mr.Vierra: The Dodge Dakota's. Chair Furfaro: They are still in operation? Mr.Vierra: No. The Ford Ranger's are. Chair Furfaro: The Ford Ranger's, are, okay. But chief, they are different from the one we are seeing on page 23? On page 23, we have Ha`ena, Kekaha, Po`ipu, Hanalei... Mr. Westerman: That is his four worse trucks and two of them are replacing. Chair Furfaro: Understood, so they are in his report for replacement and they are part of the list that we are looking at right now? April 9, 2012 Fire Department p.33 Mr. Westerman: Yes. Chair Furfaro: And the worse are Ha`ena and Kekaha, is that right Kalani? Mr.Vierra: Well actually, we have two Dodge Dakota trucks, we have one that is not in operation but can be used. So, we have four trucks that is in need of replacement but we want to replace two out of the four. Chair Furfaro: But according to your report, they are not all year 2000. Mr.Vierra: No. Chair Furfaro: Two of them are 2002. Mr.Vierra: Yes. Chair Furfaro: And the 2002 trucks are in Ha`ena and Kekaha. Mr.Vierra: Yes. Chair Furfaro: And so the more recent trucks but those are the two that you are trying to replace? Mr.Vierra: I could have made a mistake, I think we need to replace the two Dodge Dakota's. Chair Furfaro: So it Po`ipu and Hanalei. Mr.Vierra: Yes, I am sorry. Chair Furfaro: Not Kekaha and Ha`ena, right? Mr.Vierra: The Kekaha and Ha`ena is in service and the other two is limited in service. Chair Furfaro: And we are going to send you question about sending us an aging list of your vehicles. Mr. Westerman: Chair, if you could just send over the request over for the entire department, I will give you the entire department. Chair Furfaro: That would be outstanding. I have no problem doing that at all. Send over the entire department including Water Safety. Mr. Rapozo: Chief, I do not know if you have the actual budget page 131 on the actual budget, this would be under fire operations actually, but I noticed the two ocean safety 4x4 trucks are there and it is listed as Kekaha and Hanalei. You have four vehicles on that item and it looks like new leases. You got the training SW, you got the prevention van with a lift, you got the two trucks and then you get two water crafts, that lease pay... because you got the value of the equipment but you also—it is showing a lease payment of seventy-four thousand. I am assuming it is multiyear lease and can you tell me how long that... is that the same for all of those pieces of equipment? April 9, 2012 Fire Department p.34 Mr. Westerman: I do not understand the question. Mr. Rapozo: Okay, are you looking at page... Mr. Westerman: Yes. And you are right, one of those might be an error as to what truck exactly it is, it might be the Po`ipu truck. Mr. Rapozo: Okay and that is fine. My question is if you look at contract number, it says lease purchase, new lease for below equipment seventy-four thousand, twenty-two dollars. Mr. Westerman: Okay. Mr. Rapozo: Right under that on the text you list each of the items that you are going to be leasing with the value of that asset. Mr.Westerman: Okay. Mr. Rapozo: So obviously it amounts to a lot more than seventy-four thousand and my question is the seventy-four thousand would be the annual lease payment for all of those. Mr. Westerman: I am assuming Wally is behind me shaking his head and doing this? Mr. Rapozo: I do not know. Chair Furfaro: He is not behind you and I guess the better way to pose the question is what is the lease on each vehicle, is it thirty-seven thousand? Mr. Rapozo: Well, I am showing seventy-four thousand for the total. Mr. Westerman: For the total. Mr. Rapozo: But they are only getting two. Mr. Westerman: That is the total annual payment for that. Mr. Rapozo: So my question is and maybe it is a Finance question—is it a three year lease, a five years lease? Mr. Westerman: Oh that, I do not know. Mr. Rapozo: How many years are we going to pay seventy-four thousand dollars is what I am trying to get at. Normally, it says year two of three year. This one is just seventy-four thousand, twenty-two dollars for about several hundred thousand dollars worth of equipment. I am just trying to figure out how long is that lease? And if Wally said five, he needs to come up to the mike because five years would be three hundred fifty grand — three hundred somewhat grand. Mr. Westerman: Like our other leases, the first year is really a guestimate until you get the purchase done and you know exactly what the lease terms are and then the next April 9, 2012 Fire p Department p.35 p year's budget will hold the exact dollar amount for the lease. I am assuming this is a guess on the cost of lease and what they might estimate might be. Chair Furfaro: I guess I want to be more specific in that Chief, we would like to know for seventy-four thousand this year in that process, are we getting four trucks, two trucks, all the equipment, what is the answer there? Mr.Westerman: Well that was estimated to be for four trucks, a Boston Whaler and (inaudible)inflatable. Chair Furfaro: And then Mr. Rapozo's question is that is for five pieces of equipment for how many years and we need Mr. Rezentes to come up to the mike. Mr. Rapozo: That is the real question for me — how long because a boat lease and a truck lease maybe different, I am not sure. Chair Furfaro: Mine was a little shorter than that, I just wanted to make sure that was for five pieces of equipment. Mr. Rapozo: It is actually for six pieces. Mr. Rezentes: I apologize we usually have that detailed out. I believe it is for a five year term but I need to confirm. I do not have my financial calculator with me. I usually bring that over to the budget sessions to do the annual amortization payments. Again, I believe it is five but I just need to confirm that and we can get that information back to you folks. I apologize because it is usually in the detail saying first year of a five year lease etc., and that is not in the text. Chair Furfaro: We will send that question over as Mr. Rapozo. I want to make sure that it is for all the equipment that is listed on that sheet. That is your understanding right Chief? Mr. Rapozo: Okay, we will see what comes back. I just want to make sure, I think for us it is important to know how long the lease is for? I just never seen—I guess the boat lease is what my concern is but for that price, we could purchase it outright. If we spend seventy- four grand a year, my math tells me that we could purchase those things outright and with a lease at the end of the term of the lease, you do not own the asset. You have an option to purchase the lease, purchase the residual value which is how leases typically work. Unless it is a lease to own but if we are going to spend that much money on an annual basis, we may as well purchase the assets outright. I could be way off base but I just know because I lease my car and at the end of my lease term, they send me a bill saying you want the car, pay this, if not, turn it in. Mr. Rezentes: It is of (inaudible) lease/purchase, so at the end of the lease, we own it. Mr. Rapozo: A hundred percent? Mr. Rezentes: Yes. Mr. Rapozo: Okay. And maybe if you could put that in here. It helps a lot for us. Ms. Nakamura: Thank you for your report one of the concerns that I have that you raised has to do with each signage either missing or rusting and ready to fall down in light of the April 9, 2012 Fire Department p.36 recent court decision of the DLNR signs that now the State has to pay for the lack of signage that lead to the death of a couple of tourist — visitor's. I am just wondering last year I asked for a comprehensive list of beach signs that needed to be repaired and replaced and you provided a response indentifying the beaches and the number of signs per beach, do you know if any of them have been repaired over the last year? Mr.Vierra: Yes. Ms. Nakamura: Maybe as a follow up why don't I ask the question of these signs that had to be repaired a year ago, how many were repaired or new signs are needed but I really think this is Risk Management issue that we need to be on top and I understand we need to coordinate with Public Works to order and install the signs for the Fire Department. Mr. Westerman: It is kind of like a three (3) department deal— Public Works, Parks and us. Planning was actually involved in sometime in the past, they used to purchase the signs out of a grant that they had but they no longer have that. Now it is an issue of trying to coordinate it and keep the signs replaced. Ms. Nakamura: Would you say that we are on top of it, most of these have been done or just a small portion? How would you characterize? Mr.Vierra: Most of them have been done by us. Ms. Nakamura: Okay. Chair Furfaro: Define us. Mr.Vierra: The lifeguards. Ms. Nakamura: Okay. Chair Furfaro: First of all, thank you lifeguards. Ms. Nakamura: I really think we need to give the attention to this because it is so critical and we will be doing a follow up question on that with—just to find out in the past the funding for these signs have come out of a different budget, so now that funding is not available, so we need to identify what department do you think the funding should come out of? Is that a CIP? Chair Furfaro: Quite frankly that is a pretty direct question. Chief, who is funding the signs and why are they not doing it and if you need some help from this Council, we would be glad to send some messages over. Mr.Westerman: Again, like I said it is a multitude of department's trying to work together to get this done. It is kind of like anything, if you want me to do it, give me the people and the resources to do it but if we need to share then sometimes we do not get it done as fast. Chair Furfaro: But chief, at the end of the day, this is a Risk Management issue for which Councilmember Nakamura has pointed out. I hope they are in the loop on this signage piece and so they can find themselves talking to the Building department as well. Mr.Westerman: Public Works does the signs sometimes and sometimes we have to buy them. It is a matter of budget's and where they are with the amount of people that they Y p p Y have. April 9, 2012 Fire Department p.37 Chair Furfaro: You need to write another standard operating guy, so we all know who does that. Mr. Westerman: I will take it as a point of interest and go back and sit down and talk with Public Works about how we can resolve. Chair Furfaro: A gentleman as always, thank you. Mr. Rapozo: - We have Risk Management tomorrow. Chair Furfaro: Did you hear him? We have Risk Management tomorrow. Mr. Westerman: Yes, sir, I heard you. Ms. Nakamura: On the period equipment maintenance and repairs, now that we are going toward a centralize equipment repair, will your equipment go to this centralize facility or are you still doing it on your own? Mr. Westerman: You have asked me a question I know nothing about. Ms. Nakamura: Okay. Mr. Westerman: As far as I know my fire mechanic and hopefully my second mechanic will be working on my equipment. Right now we do still have the support of Transportation because we do not have our central mechanic onboard with our trucks. Hopefully as soon as we can get the issue resolve with our second mechanic, we will be doing all of our maintenance. Ms. Nakamura: And so you are still looking then for a storage location in the Westside. Mr. Westerman: Yes. Ms. Nakamura: And what size facility are you looking for to house the equipment? Mr.Vierra: We have a two (2) storage facilities, one (1) in the Koloa area, behind the Koloa Fire Station and we have one (1) at the Hanalei base yard. And so we are looking at the similar size. Mr. Westerman: The Hanalei base yard is about... Mr.Vierra: Thirty by ninety. Ms. Nakamura: And the location would be like the Kapa'a base yard for example... is a possibility? Mr.Vierra: That was tossed around as a idea possibility. Chair Furfaro: And just so we know, the Hanalei facility was built with contributions from the North Shore Rotary and it was built in the old base yard in Hanalei. April 9, 2012 Fire Department p.38 Ms.Yukimura: First of all, congratulations on your eighth win for your junior lifeguard. What a record! Following up on the question about the storage sub-station — thirty by ninety is how big? Is it about this room? Mr.Vierra: Maybe a little smaller than this room. Ms.Yukimura: A little smaller than this room. That is pretty big but that is because you are storing equipment? Mr.Vierra: Trucks, trailers, equipment,ATVs, Jet Skies. Ms.Yukimura: I was wondering why it was not included in the Kaiakea Fire Stations plans or could a site there be used still as a retrofit? Mr.Westerman: I do not know why it was not approved in there. We did include other things in the Kaiakea Fire Station, extra space for a mechanic to work on that side. The lot was very difficult to work with even though it seemed like a lot of acres. We ended up with not very much usable space because of what we have to do. I am sure we can find a location that would not require the purchase of land, like the base yard as a possibility. When and if we move Kapaa Station location maybe we will locate it with the Kapaa Station. Ms. Yukimura: Even with the Police planning for their sub-station, it really— if one could take... ask who is missing or what are the other things we have to plan for in the next twenty years, we might catch some of this synergy on facilities, for not just Fire but Water Safety... or even outside the Fire Department if it fits. Not of course if it does not fit. My other question is about the long term injuries that you say have been a challenge in terms of men power coverage. Has there been an analysis of these long term injuries and what cause them, whether it could be prevented? Because it is obviously that we really have a big problem in having operations work well? Mr.Vierra: I do not think an analysis was done but there was a variety of different injuries from rescue board injuries to the Jet Skies response injuries to walk down the stairs on the tower type of injuries, there is a variety different injuries. Ms.Yukimura: Well is there not... Mr.Vierra: Some was long term and some was a few months. Ms.Yukimura: I am sure the Chair is more familiar then I am but I think there is some kind of saying that almost no accident is an accident and this is that area again of Risk Management but I think company's everywhere are striving for zero accidents because they have such an impact on operations. I am just wondering if there might not be a way to access some resources for the Water Safety Bureau in terms of analyzing and then implementing increase safety measures. Chair Furfaro: Has this been summarized for the Lost Prevention Department? Mr. Westerman: The Loss Prevention Department has been with all the way on these injuries and actually two (2) of the long term injuries have actually since left the service with us. That is kind of helping us —like I said we are getting ready to hire replacements. I truly understand what you are saying, Councilmember Yukimura... April 9, 2012 Fire Department p.39 Chair Furfaro: Let me finish the question. I just finished my fourth computer test of Lost Prevention. Mr. Westerman: Yes, sir. Chair Furfaro: I want you to know so far I have not gotten one (1) wrong, I have all my diplomas... is the same thing happening for water safety? Mr. Westerman: That is what I was going to say Chair, if we were sitting behind a desk and we were doing lost prevention behind the desk, taking that test, we were teaching someone how to use a fire extinguisher. Teaching them how to pick up a box, paper and not injured their back... Chair Furfaro: I want to make sure you understand, I am not agreeing with sitting behind a desk to do... I want field training. Mr. Westerman: These injuries result from water safety officers that are some of the fittest men and women living on the island of Kauai. In some of the most hazardous conditions hanging off of the back of a jet skies, bouncing through waves and yanking and grabbing people out of the water. There is nothing you can do other than to say take the injury, or not respond. These injuries are that level of injury. There not injuries from just walking down the beach or maybe picking up their board... Ms.Yukimura: Walking down the steps though is one thing. Mr. Westerman: Walking down the steps, I grant it but again... okay, you caught me on one (1) but for the most part and again we can create a class for walk down the steps carefully but most of the injuries we have are multiple years of injuries that happen to the water safety officers. Most of them are results from rescues or they are in a very hazardous condition and it is physically demanding on the body, those one we really... I do not know what we can do other than continue our physical conditioning and ask them to be careful. The other ones we do. We do participate in the Risk Management program but there has not been too many of them that was directly related to ocean safety. Ms.Yukimura: You are saying that you have actually analyzed these long term injuries and they are primarily hazardous—they are from hazardous situations? Most of your long term injuries are that cause? Mr. Westerman: Yes. Ms.Yukimura: And there are no training in terms of jet skies usage and so forth help to prevent some of that? Mr. Westerman: We do have jet skies training. We do caution them on how to properly pull people out of the water and how to grab the people. Ms.Yukimura: Do you know whether in these cases of these injuries they followed those rules or whether they did not or were not informed of the ways to do that? That is the kind of analysis I am asking because you are giving me an analysis but has it actually been done? Mr. Westerman: Other than me reviewing the documentation, no. April 9, 2012 Fire Department p.40 Mr. Blalock: As we fill out the report there is actions that could have been taken to prevent and things like that. As we go through them, whether it is retraining or things that we have to go through to... and every situation... what Chief is saying is that not every situation is the same. Although we try to follow certain guidelines on how we do rescues or how we do jet skies operations and not every situation is the same. As we do fill out IA reports asking what happened, what could have been done better and then there is some retraining with that effect to it but again there is so much that we train and so much that we do. Tripping down the stairs on a wet day or something, I do not know... maybe we need more... we can look at something to put in more sand... What prevented the measures could have been done and putting more sand strips and things like that. Chair Furfaro: Getting back to the water safety piece and I know Kalani knows this as well, I used to be a water safety instructor for the City and County of Honolulu and I think especially with the Jet Skies rescues, people do not realize that you are out there getting pounded in big surf that you should have no business in. Sometimes the waves are so thick, you cannot even see over as to the approaching next wave. I think it would be good to just periodically have some dialog about different techniques and approaches that have been used and just constant make improvements because it is the heat of the moment, the rescue, how you are approaching with the jet skies, how far behind the boogie board is being tallied, how you reach out and grab a risk, an arm, how you pull them up. It would not hurt in that really specialized kind of condition to just have some shared dialogs sometimes to talk about techniques because I think we really have a fine water safety department and when you are out in the ocean and so forth, reacting to instantaneous responses between the sets of a couple monstrous waves, it is good just to talk story kind of thing. Mr.Vierra: Do not get me wrong, all the injuries is not work related, we have a lot of off duty injuries also that is long term. Chair Furfaro: But I am just saying with the jet skies, I think it is just ongoing dialog and just constantly improving the techniques or experimenting with some new approaches that might be good for the jet skies in the water safety department. Ms.Yukimura: Regarding this beach safety signs, how much does it cost to do replacement in a timely matter? Mr.Vierra: For replace one (1) sign? Ms.Yukimura: Well I mean... like when we are repaving a road, we say a repaved road have a expected life of fifteen years or something, so then if you post one sign then you expect that and in five years or ten years, it needs to be replaced. What I guess I am describing is a sign replacement schedule. Mr.Vierra: Yes. Ms.Yukimura: And if you have fifty signs or a hundred signs and they have all been put in at once then whatever the... of course conditions are different. Mr.Vierra: Yes, the east side is where the most corrosive. Ms.Yukimura: Right, right. So you would have a differential in terms of replacement need but if you kind of have it organized then you know every year, you need so much money or every five years or whatever it is and do replacement, put it in the budget like it is a Y Y Y P p g regular thing and then a memo of understanding with Public Works that they would take it on or April 9, 2012 Fire Department p.41 something. Just to create some kind of a system to it, so it is not something you have to think about. It just comes up every interval or whatever. Is that a possibility? Mr.Vierra: It is. I think the east side signs have probably a two (2) to three (3)year time as to Kekaha has a seven(7) to eight(8)year. Ms.Yukimura: Okay, there you go. And then there is some vandalism which you would not be able to... it does not have a regular schedule. What ball park cost are we talking about? Because if it is not that much and it is of a critical nature, then we really should p ut the moneys in there. Mr.Westerman: Well it is not the cost of the material, it is the cost of the time of the people to come in and put up the signs. And if you are running all over the island back and forth and replacing the signs, that is a lot of logistical. Ms.Yukimura: Exactly. Mr. Westerman: It is a lot of logistics and that really creates the problem. If you said this year we want to budget for Westside, we are going to replace all the Westside signs, you get them all done within a week or so then that is probably something that kind be done. On the South shore or half of the south shore... because it is not just on our beaches, I mean they are everywhere. Ms.Yukimura: But having a system like that would even make it easier for Public Works is involved for them to do it because like you said, you go down there in one day or two days or one week or whatever you take, if you can assign out that kind of time, it is much more efficient than going back and forth. You will still have the occasional car bang the sign or something which would have to be case by case but... I am inviting you to tell us how money you think you will need annually on this. Mr. Westerman: We can work on that. Ms.Yukimura: But I am just thinking that if we do it like your vehicle or engine replacement schedule, it is just there... it pops up somehow. Chair Furfaro: Kalani, you have provided us a list of all the signs and if you take there and evaluate some kind of rotating schedule and it would be a good place to start this discussion and then make sure that we get Loss Prevention to sign off on it. Mr. Kuali`i: On the discussion about the long term injuries in your bullet on challenges, you said on-call lifeguard positions have been working on forty hour, eighty-nine day contracts... how many in an eighty-nine day period? Mr.Vierra: We had about six of them on the eighty-nine day working contract. Mr. Kuali`i: At the same time? Mr. Vierra: Yes. Mr. Kuali`i: So in the bullet later on how it is being addressed when you say the OSD is requesting an interest of two on-call lifeguard positions to assist with coverage. In the budget, is it the same the temporary beach lifeguards? April 9, 2012 Fire Department p.42 Mr.Vierra: Yes. Mr. Kuali`i: So, four on-call lifeguards, twelve months at ninety hours per week, fifteen dollars an hour, that is what is going to address that? Mr.Vierra: Yes. Mr. Kuali`i: Is forty-eight thousand dollars enough for that? You say nineteen hours a week but it is really only like fifteen hours a week. Mr.Vierra: Sometime we would work them eight hours a week, it all depends on the manpower. Sometimes we do not even work them for a month, it all depending on the manpower issues. Mr. Kuali`i: Thank you. Mr. Rapozo: It is a great opportunity to thank Kalani and the crew out there because you save a lot of people and it does not always make the paper. Somebody drowns, it goes Statewide, all the thousands of people you guys advise and warn and prevent from getting hurt, that goes unnoticed, so thank you very much. That leaves me to my first question. What about a system as far as the signs about sending a work request to Public Works because signs are not your job. Lifeguards should not be concerned about a stinking sign or it should not be. I appreciate the questions but... when I was in the military, I was a telephone guy, I showed up at a telephone service call and if I saw a problem with a sign or pole or whatever, we refer it to the civil engineers, they get it fixed. The phone guy did not have to go and fix a sign. You guys need to be on the beach watching the beach and not dealing with signs. We will deal with this with Risk Management shows up because it is their issue, it is not Public Works issues or lifeguards issues. What the heck are we doing when we know we get the lawsuits and the State paying all these millions out because of signs and it is being corroded and falling down and a simple form by your department to Public Works that sign needs to be up period and end of story and that is just my solution. Chair Furfaro: Let us make sure Mr. Rapozo, it is the responsibility of water safety to report it. Mr. Rapozo: Yes, no doubt about that. Because if we left that up to Public Works we would have no signs. The other question is about your storage facility every day I come into work I pass that big white tent on the golf course and I have asked Parks twice for a response what is the plan. Is that something you guys can use? That big white ten. That is an expensive that is all ripping already, it is falling apart and I am sure it can be repaired but is that something you guys could use if we had the site like at the base yard? Is that something that you guys are looking for where you could drive in and it is deteriorating right in front of our eyes, that is several hundred grand I believe that thing cost and it is sitting there flapping in the wind. I have sent several request to Parks, what is the plan and I get no response but if we could use that, we could relocate that to someplace where we got the land. Is that something you guys could use? Mr. Blalock: We would rather have the trailers that is right next to the tent. Mr. Rapozo: Well that is there too. I do not know what that is doing but you could not put your supplies in there. y¢f sS April 9, 2012 Fire Department p.43 Mr. Blalock: It would be an office at least for the site supervisor to work out of and to have a computer home base. Mr. Rapozo: We can ask for that too but I know for in fact for that white thing, there is use for that and I just think as I am hearing you talk about the trucks, trailers, jet skies, boats... I think it is perfect. We will send that over in a request. Well that is all I have and I appreciate what you guys do. Public safety and that is my basis, it is just something that we should not compromise and all what I am hearing is you guys need so much and I do not know how we are going to make all this happen but it is up to us on this table to try to make as much of that happen as possible. Chair Furfaro: As we go through this we will prioritize it but chief have we talked about helicopter at all? Mr. Westerman: No. Chair Furfaro: So when we do come back, we would like to talk about that. Do you have any other supervisors that need to report yet? Mr. Westerman: No sir. There being no objections, the Council recessed at 4:51 p.m. The Council reconvened at 5:07 p.m., and proceeded as follows: Mr. Chang: That display we had of all the rescues throughout 2008 or 2009, do we keep stats with how many are Kaua`i residents as opposed to off island tourist? Mr. Blalock: As far as when we do fill out the report, there is a tab if it is possible that we do get the information we would input it. If we do not get that information at that time, we would not input it, it would be unknown. If it is available and we had the time to gather information for it we would input it. Mr. Westerman: Basically what we are saying is that it would not be very accurate because we are not intentionally tracking it at this time. Mr. Chang: That would be good information that we give back to our State Legislatures also especially because a lot of stuff happens on State land. When we are in discussions about keeping money's here on Kauai and asking for funding, that would be a good stat that we can look in the future for the benefit of all of us just to see where we are at. Chair Furfaro: I think hand piece is the presentation. Mr. Westerman: This particular handout that you have it does indicate which one were on State land rescues were on State land but it does not indicate which one maybe visitors and which may be residents. Ms.Yukimura: Are these both helicopter and land? Mr. Westerman: These are both. Ms.Yukimura: Okay. April 9, 2012 Fire Department p.44 Mr. Westerman: And of these if you look at the last page, a hundred and thirty-five Air 1 was used on a hundred thirty-five for these particular incidences. Ms.Yukimura: Do you know what the total cost of operations is for Air 1? Mr. Westerman: Yes, it is our line item in our budget, three hundred sixty thousand dollars for a pilot contract. A hundred thousand dollars for our parts and seventy-five thousand dollars for our fuel but last year we did not use all of our hundred thousand dollars in parts, so we saved about a eighty thousand... because it is still in the first couple years and we got lucky and did not have any major parts break. I can get you the exact cost if you would like that. Ms.Yukimura: I would actually like to get on one page all the cost of operations. Are we still making payments on the helicopter? Mr. Westerman: Yes. Ms.Yukimura: Lease payments?So that was like two hundred? Mr. Westerman: Two hundred and nine thousand thirty-four or something like that. Ms.Yukimura: And then fuel is seventy-five thousand, pilot contract is three hundred sixty thousand. We are looking at six hundred thousand a year? Chair Furfaro: I guess that is a rough number? Mr. Westerman: I guess. Ms.Yukimura: More than that? What are we missing? Chair Furfaro: Did you do parts? Because they sent twenty thousand on parts. Mr. Blalock: Parts change... it is all calculated. Chair Furfaro: But you had a hundred thousand in your budget and you did not change anything? Mr.Westerman: Minor stuff on maintenance. Three hundred hour inspection, some blade work but most of the stuff that we had replaced was under warranty. Ms.Yukimura: Okay. So that number can be expected to grow as it gets older. Insurance? Do we have particular insurance for this? Mr.Westerman: I do not have it in my budget but we do have insurance, we would have to get that from Risk Management, they handles the insurance. Ms.Yukimura: How many usages, you said for the State lands it was a hundred thirty-five over a two year period... 2009... I do not know is this calendar years that we are talking about? Mr. Westerman: I have the other two charts that I gave you. It was kind of last minute, I did not anticipate these questions but if you would like to send over the exact April 9, 2012 Fire Department p.45 questions that you would like answered, I can provide those answers. I do not want to guess even though I have some... Chair Furfaro: Sure, understood. Mr. Westerman: ...information here, I can provide those exact numbers to you. Ms.Yukimura: I am just concerned about the cost of operation and if there were to be cost effective, there would be more than if we had contracted out or whatever. I was not here for the discussions on the purchase but I just wanted to see how it is all unfolding. Mr. Westerman: We hired a consultant to do that evaluation for us and Dillon Management, they did that several years ago. I can send you a copy of that and of course the two main issues are one (1), we could have continued the way we were but we still maintained that we had the extreme risk that we had, we were not training and we were not flying within the FAA requirements. The next three options are ranged different way in which to do this. One of them was a complete contract that is helicopter, pilots, everything which was more expensive than this option. This option was the cheapest of the three which was to purchase and then do the pilot maintenance contract. We can send a copy of that over. Chair Furfaro: Send them over here and so forth, the fact of the matter is we have already made the decision and at the time it was the best of the three options but why don't you send those over? Mr. Westerman: Sure, can do. Chair Furfaro: As we deal with this number, do you know of any other County's that at minimum at least charge for the fuel to go get somebody from the Valley, they at least charge for the fuel? Mr. Westerman: No. Nobody is charging for the fuel. Nobody is charging in Hawai`i for recues. Chair Furfaro: How about in places like Arizona, the Grand Canyon do you know? Mr. Westerman: I can tell you that a resort area in Colorado did several years ago and after about a year and a half, all the resort businesses ask that they stop charging because people left and went other places. What they did was they added a fee to the ticket to skies the mountains. When they added the fee, it cost more money to skies the mountains and that money was to pay for the helicopter rescue operations. Couple years later, they changed their mind because people went to other places. There is and we went over this before, there are two — County ordinance and there is a State law about us being able to bill for services. They have to have intentionally put themselves in harm's way and it has to be determined by our Corp Counsel and then we could consider charging people for that rescue event. I have not turned in a rescue report or operations report to the County Attorney since we have the helicopter and asked him to determine that—if it was intentionally put themselves in harm's way. I do not know if a rescue that would be close to me doing that. Chair Furfaro: I understand but my question was very simple — charge for fuel. We do not charge for fuel? Mr. Westerman: We do not charge for anything. April 9, 2012 Fire Department p.46 Mr. Chang: Is the Police Department using the helicopter also? Mr. Westerman: Yes, sir. Mr. Chang: I am trying to find, is in their budget that they have any line item helping with the cost of the helicopter maintenance? Mr. Westerman: I do not know but we charge them. Mr. Chang: Oh, okay. I understand. The last time we were here in discussion also, what are the hours of the helicopter? What is the earliest you can fly and what is the latest you can be? Mr. Westerman: An hour before sun up and an after sun down. Chair Furfaro: Depending on the season. Mr. Chang: And that goes with the Police Department also? Mr. Westerman: Yes. Mr. Chang: I remember one time we had a request for infrared, that stuff is not needed then? Mr. Westerman: The helicopters configured for nine vision goggles and we have them available but we do not have the pilots trained to flight night vision goggles. And if we have a full moon enough, it is possible that it was I guess we really have to think about flying if it was a full moon because there might be enough light for the pilots to fly. Mr. Chang: I guess that is when the Coast Guard kicks in? Mr. Westerman: Usually. Mr. Chang: Okay. Chair Furfaro: I would not depend on the silowets of the mountain to guide me at night. I like the first answer chief. Ms.Yukimura: I would be interested in receiving a rescue and operation report in terms of how many rescues we have made, how many have been—for what purposes and if we are doing it cross agency like for the Police Department, how many of those we have made and what charges back we have charged them. Actually when I saw in the budget for Civil Defense twenty-five hundred dollars for a helicopter to service our transmitting sites, I thought about how much it would cost to use our helicopter? Those issues come up when you have a helicopter and I am also interested in what the protocols are for determining when you use the helicopter and when you do not. Mr. Westerman: We have a County policy on when the helicopter is used and we cannot use it if we take business away from a private sector, this is an emergency piece of equipment not a routine piece of equipment. April 9, 2012 Fire Department p.47 Ms.Yukimura: That makes sense. I would like to request a rescue operations report. Mr. Westerman: That is just a regular RMS report for an incident. Ms.Yukimura: I would like a summary report—how many rescues are made a year. Mr. Westerman: If you can send over what you would like to see, we can compile that report. p p Ms.Yukimura: Okay. Chair Furfaro: This is one of those questions that I will allow to go till Friday, instead of a forty-eight hour turn around. Mr. Westerman: I think we can come up with it by... Chair Furfaro: I am giving you the extra time, if you do not want it that is fine... Mr. Westerman: It is a matter of if we can gather the data that you want and what format you want it in, then we can probably do that. Just so you understand, the Police Department, it is four hundred fifty dollars an hour for their flights time, that is fuel and basic wear and tear. Even as you noticed, Civil Defense have money in their budget to fly helicopters, Planning has money in their budget for helicopters, other departments have money in their budget for helicopters. For the none emergency flight times, so does Police but if they uses our helicopter... I take that back... if the Police uses the County helicopter, they pay us four hundred and fifty dollars to put in our budget to pay for the fuel and to pay for the wear and tear on the parts. It would be the same for anybody else, we would fly and have flown for a maintenance issue because it was down and we needed to fly immediately to find out if it was something that could be fixed right away, it was one of the radio systems. They discovered what was wrong, they came back and then they scheduled the maintenance flight for someone to carry up all the parts and equipment needed to make the repair of the facility. Mr. Rapozo: Where did that policy come from that we cannot use the County helicopter if—we cannot take away from the private? Mr. Westerman: Two things, one is the FAA issue. We are not a private carrier, we are public service and we cannot do private carrier work. Mr. Rapozo: Okay. Mr. Westerman: If we were to fly just people around the island. Mr. Rapozo: I understand that part but if Planning wanted to go do a... Chair Furfaro: Investigation. Mr. Rapozo: Yes investigation or aerial survey of the north shore, why would they not be able to use the County helicopter for that? April 9, 2012 Fire Department p.48 Mr. Westerman: Again, that is a private use of the helicopter that is not public use of the helicopter. Public use is defined as emergency work for the helicopter. Mr. Rapozo: And where does that come from? Mr. Westerman: That comes from the FAA. Mr. Rapozo: So the FAA prohibits us from using the helicopter for Planning? Mr.Westerman: It does not prohibits us from it, it just kind of restricts what we can do and again if the function can be done and is not an emergency situation — life or death situation, or in this case the radio network is down which is really life or death in the long run if you are at the far end of it if you wanted to think about it... then it becomes a public use helicopter or private use helicopter. We cannot mix the two. That was the problem that we had was that we had that mixture and in the old fashion way for doing it, there was a in the old US code allowable for on occasion for us to take the private helicopter service, turned it into public and go do the rescue and let him have his helicopter back. Do you understand what I am getting at? Mr. Rapozo: Yes. Mr.Westerman: And then the FAA says that does not exist anymore and by the way this is not occasional use, you are using that helicopter all the time. Now you are doing both private and public with the same helicopter and that is what they do not allow. It has to be... Mr. Rapozo: I guess... Mr. Westerman: There has to be a separation. Mr. Rapozo: I agree with that but I just look at the Planning use or the County use, any County use would be as not a public use, it would be a private use... a County use. Mr. Westerman: Well, I agree with Planning. The Planning issue, we have them in our plan that we can do it for an investigation because that is almost like a criminal service trying to investigate and end up with a criminal service. The issue of we know we want to fly someone in to repair something and we know what all the maintenance and parts are, we are actually taking work away from a public service helicopter or a private service helicopter. That is when the FAA would step in and say you are over stepping your bounce. Chair Furfaro: Chief, I have to tell you I have not seen these photographs but the Civil Air patrol that we support, I understand they took some wonderful documented pictures of Hanalei Valley during this period of flooding. I would think that we would have that same kind of flexibility with our aircraft because it would deal with potential public safety issues. It is something that we should probably ask the County Attorney's Office to give us kind of a definition of that. The Civil Air patrol did a great job with those photos from what I have heard from people on the North Shore yet we will have that kind of... for some of us that has been around for awhile, we remember the fire in Hanalei. That was kind of an emergency of understanding a brush fire to that nature. That clearly is to me an emergency use. Mr. Westerman: Absolutely. Chair Furfaro: I would think flooding would be the same. April 9, 2012 Fire Department p.49 Mr. Blalock: That would be covered under the public use because you are doing a damage assessment per say of any particular area and that would be allowable under the FAA. We are working on procuring cameras and that would be available for us to do something like that. Chair Furfaro: Okay. Mr. Chang: I think when we were first discussing the purchase of the helicopter, when we had the private vendor out on the Westside, because he was tour and travel, you would normally have a tour that is in the air and all of a sudden he would have to abort, go back to Burns Field refuel, get you guys there, so I think back then the discussion was the point was when you needed the emergency because the helicopter was stationed in Lihu`e, the point was there was nothing else involved if you needed to go just like that, you would be out the door sort to speak. That is kind of like the sense of urgency that we have and I guess we will continue to have because I can see if someone is doing surveillance or whatever is going out there then for them to respond back, those precious minutes could be damaging for a rescue operation. Mr. Blalock: We do have something plotted out... Mr. Westerman: On the lines of what you are saying... Mr. Blalock: We charted one as far as what is our response time prior to and it was like an hour versus... Chair Furfaro: Francisco, you need to come up to the table. FRANCISCO GARCIA: We did an analysis of just one year prior to having Air 1 and our response time for helicopter rescues, the average response time for a helicopter was fifty-eight minutes, was taking to respond to a call.After Air 1, it is taking us sixteen minutes. Chair Furfaro: One, six? Mr. Garcia: One, six—sixteen. In some instances, it took the highest was close to four hours to have access to a helicopter to respond to a rescue. Chair Furfaro: When we were using private... Mr. Garcia: When we were using a private contractor. Chair Furfaro: So we have gone as long as four hours to get something in the air to assist with that emergency but now we are averaging sixteen minutes. Mr. Garcia: Sixteen minutes... and some of that—the sixteen minutes are actually sounds more than it actually it is because a lot of the calls come in as somebody needs assistance on Hanakapi`ai Trail and until we have gotten confirmation that there is actually somebody in need of assistance, only then the helicopter goes into the air. We are not going to put the helicopter in the air until we have confirmation there is somebody that needs assistance. Chair Furfaro: Well Mr. Garcia, this is good information for us to continue to track. Mr. Garcia: Yes. April 9, 2012 Fire Department p.50 Chair Furfaro: Because that is definitely minutes that can make a difference in a rescue. Ms.Yukimura: If it is somebody with a sprained ankle on that trail, do you automatically release the helicopter for a rescue? What is your protocol decision making? Mr. Blalock: Depends where they are on the trail. If they are in Hanakoa, we would use a helicopter. It is not feasible to send fire fighters six miles in to hike and then carry them out six miles out of the trail. Ms.Yukimura: But a sprained ankle? So we are spending four hundred fifty dollars an hour to help somebody with a sprained ankle? Mr. Blalock: A lot of times it come in as a broken ankle. They will say it is a broken ankle, swollen... so we really do not know, we have to there and investigate. Ms.Yukimura: What if they are just tired and hungry and hot and they say it is a sprained ankle and it is not even that? Mr. Blalock: We still have to respond. We cannot ignore the call. Chair Furfaro: I think we are going to pursue the question with the County Attorney's Office about at least recovering cost if it is feasible and it might be a judgment call. That was a little bit of an exaggeration if somebody was just tired and hungry and wanted to ride, but I think the point is well taken. Ms.Yukimura: I am just asking how you distinguish between that request and others. Chair Furfaro: I think what he is saying how they call it in for a description. Mr. Blalock: We had a special instance today, last night somebody hiked out from the trail reporting we had ten people trapped on the other side of Hanakapi`ai stream because of flooding. This morning we relocated Engine 8 up to Station 1 rescue 3 and Engine 1 hiked into the trail. On arriving in Hanakapi`ai, we did not find anybody across the stream but a couple hiking out from Hanakoa reported there was a large group of people at Hanakoa. Previously I notified DLNR and advice them that we have some people trapped, so he had two (2) officers scheduled to fly in to Hanakapi`ai to do some work and redirected them to Hanakoa via private helicopters. The landed and found that a lady was indeed was having some chest pains, her and her husband and the other nine people were hiking out. We did utilize Air 1 to fly in to bring the couple out. A lot of them —we have to go in and investigate, we cannot just... it could be more serious and the County would be liable, the Fire Department if something happened. Ms.Yukimura: You cannot do everything and if you go through the proper assessment process, that would... I would guess that would somehow protect you or should in terms of how the law —what the law requires. I am not saying it is an easy call, that is why I am asking the question. How do you make these calls. Chair Furfaro: I think for now, you understand our concern because we are already an hour over today's session. It is critical that we have some type of evaluation, confirmation somehow how that works, I think that if all possible you should ponder this. April 9, 2012 Fire Department p.51 Mr. Blalock: I think there is a misconception that you are saying as soon as we get the call... Chair Furfaro: No, I think we understood. Mr. Blalock: We try to gather as much information... Ms.Yukimura: I am asking how you make the decision. Chair Furfaro: She is saying when you get that information, how do you make the call? Ms.Yukimura: I was just interested in how you make the assessment and the call to send in helicopters. Mr. Chang: Do we keep in touch with the visitor industry?Are there eyes and ears for us, do we call various companies, they then call their Captains via radios, to confirm and assist because if it is a sprained ankle, it is a lot more feasible that they can drop off somewhere or bring them all the way back to Port Allen. Are we communicating with the industry people also that they can be helpful as they have in the past? Chair Furfaro: And remember it is only a seasonal SOS. Mr. Westerman: Right that is exactly what I was going to say. They do help us. Sometimes the SOS come in from the tour helicopters because they said somebody wrote "help" on the beach or "SOS" and they will not land and cannot land. The boats is probably the only one that can do a really targeted assistance and as the Chair pointed out, it is very seasonal. It is not that we do not talk to them or do not talk to them, it is not something that is automatic—we do not know who it is going to be, where they are. So it is really not likely to count on it to be there every day. I did want to address if I could real quick about your other question. If for some reason we are flying Planning and we do an incident, our plan is very detailed in there about what they would do... in some cases it might say that Mr. Planning, we are going to dump you on the mountain and leave you there, we are going to do the rescue and then we are going to come back and get you. We are not going to waste time and taking you all the way back. All of the Department's know what the County helicopter policy is and know how they will fit inside that function. There are times they are all addressed and you are right we can do some county work, we just have to be careful to the level of county work we can do but the policy is very explicit, it is for life safety is number one and than Fire, Police, civil Defense operations are number two and then down priority number six on who gets to be using the helicopter at any given time. Ms. Nakamura: Of the two assistant chief positions that you think would be helpful, which one would be a priority? Mr. Westerman: Assistance Chief of operations for sure to start the system off. Ms. Nakamura: With the accreditation. Mr. Westerman: Yes. Ms. Nakamura: Who funded the beach safety guys previously? April 9, 2012 Fire Department p.52 Mr.Westerman: Before they visitor industry charity walk provided funding for us and Councilmember Chang has talked to us off line and maybe we can convince them to... and OED gave us some moneys in the past. Ms. Nakamura: How much is the cost of brochures? Mr. Westerman: Depends how much you order. Our orders have been as much as thirty thousand, depending on how many brochures we buy. Ms. Nakamura: Councilmember Chang is going to follow up on that? Mr. Chang: Yes. Obviously the more we buy, the less it is. Ms.Yukimura: Is there a real direct correlation between drowning and the beach guide? I have been working in drug prevention and they make us really try to look at the cause and effect. Mr. Westerman: Over the years the water safety task force has tried every avenue they could to make sure that we provide as much information as we can to the visitor industry. This is just one of many things that we do and we have never evaluated it. Ms.Yukimura: Have we done survey's to see that visitors actually really read it and they learn from it or is it a website thing now that they do on their phone that is more logical? They say that you do these seminars on drug prevention and that would prevent kids from using drugs, there is no real correlation to that. That is what I am just asking. The visitor industry does do survey's so maybe we need to include some questions to check if there is a real correlation. Mr. Westerman: We have done a couple different survey's Pat from the Wave Project has done one, I do not have all the specifics of that survey with me. I would say they must be doing something or they would have be using as many as they are. They do get picked up at the airport, we also have them at the airport and they get picked up at the airport and hopefully are looked at by visitors that picked them up and gotten some little knowledge from them. Again, there is no way... we have thought about an exit survey but do you know what it is like to get an exit survey at that airport, it is insane. Ms.Yukimura: But the visitor bureau does that. You could just add a question in their surveys. Mr. Westerman: Well I sure would like to find the person that would let me do that because we hit a couple stonewalls on that one. Mr. Rezentes: My wife works for a hotel on the North shore and they use the beach safety guides extensively and they do try to educate they guest with the guides. The reason why I know that is I am always asked to go to OED and pick them up boxes to take home so she can take it to work. Ms.Yukimura: That is good information. Mr. Rezentes: I am sure it is something... I know when they meet and sit down with their guest, they do provide that and they try to provide... give them some words of wisdom in some areas not to go and they use the guide extensively. April 9, 2012 Fire Department p.53 Ms.Yukimura: So it makes sense as an education visitor industry related expenditure to spend that money. Mr. Rezentes: I believe so, yes. Ms.Yukimura: Okay. Chair Furfaro: I just want to add to that, they order four hundred and eighty thousand brochures a year and they distribute it to most of the travel desk throughout the hotels and most of the time share complexes then do part of their breakfast briefings review of their brochures. Ms.Yukimura: What is that cost we are looking at? Ms. Nakamura: Fifteen to twenty thousand. Ms.Yukimura: My last question is you have five thousand calls approximately and it has been five thousand since 2007 or less, it is starting to go back up again, of that how many are fire related calls? Mr. Westerman: Last year, it was two hundred and thirty-seven if I remember my report correctly. Ms. Yukimura: Two hundred thirty-seven were fire related and how many fires? Oh, we had thirteen. Mr. Westerman: We had sixteen investigative fires, last calendar year. Ms.Yukimura: So 2011—sixteen investigated fires. Chair Furfaro: Any other last questions for the Fire Chief? Let us not confuse the rules, if you are sending over questions in writing, we want to get them turned around in forty-eight hours. Except for the two that I had identified. Could you give the Chief an idea, is there ten questions going over in writing? Ms.Yukimura: About five more questions. Chair Furfaro: About five more questions coming over in writing from what you did not hear verbally. Chief, I have a message for you, I appreciate all the work from your team and everything but it was very hard to follow some of your narrative that said you need this but yet when we look at the budget, we see it is in there. Thank you for an excellent job today by all of your department heads. On that note, I am going to call it an end to the Fire Department. The budget review was recessed at 5:46 p.m. w r s" April 10, 2012 Finance Department p.1 The departmental budget review reconvened on April 10, 2012 at 9:17 a.m. and proceeded as follows: FINANCE DEPARTMENT: COUNCIL CHAIR,JAY FURFARO: Aloha good morning I would like to call to order the Budget review agenda as posted. This is a carryover from yesterday and we're going to start the morning with the Department of Finance broken into areas from Risk Management I believe to I.T. and eventually we will end up with the Treasury at about 11:30.Mr. Rezentes you have the floor. WALLY REZENTES JR., DIRECTOR OF FINANCE: Thank you Chair and Councilmembers, Wally Rezentes Jr., Director of Finance for the record. We are going to be bringing up today the various division heads as we moved throughout the day and I'm hoping that today will be a little less taxing then yesterday was at least I have one finger crossed over here. The County of Kaua`i's Finance Department overall budget for fiscal year 13 is approximately 5 percent lower than fiscal year 2012, moving from about 12.88 million to approximately 12.24 million so roughly a 643 thousand dollar reduction. Part of the reasons for the decreases is budgeting closer to the line for our liability property an access work comp line items as well as increases indirect costs, central services cost and finance accounting and the transferring of some of the risk management functions that relate to personnel matters over to the Department of Personnel Services. In the interest of time I'm not going to be going over all of the achievements and successes that took place in the Department of Finance over the past fiscal year. I do want to however acknowledge the hard work of our Finance Department employees that have I think worked diligently throughout the fiscal year 11 and continuing in to fiscal year 12 in light of certain challenges that we have to deal with on a day to day basis. I highlighted the achievements in the document and I wanted to say that a lot of what I have in my section also you'll see in the various division sections in the respective reports. I must say in my finance administration section I jumped the gun a little bit relative to the certificate of achievement for excellence. We did submit the certificate of achievement for excellence to the GFOA for consideration and we hope to receive a response shortly. Rolling into our upcoming and slash future initiatives I would like to say that some of these initiatives will be part of again the discussions but the ones that are at the forefront now. I believe we had some initial discussion on our bond refinance opportunity that will be coming to this council in the last month or so. Approximately with an access of 20 million dollars in bonds we looked to be refinancing and Dave Spanski will be elaborating a little further on this but looks like the bond market actually has improved this week. The last couple of business days our hope is that we will save annually somewhere north of a hundred thousand dollars a year and in the 1.2 — 1.4 million dollar range over the life of the bonds. Mr. Furfaro: Excuse me Wally did you say to refinance approximately 20? Mr. Rezentes: Approximately 25 but it's going to be when we hit the market it will dictate really how much of a bond comes in the money for refinance and we hope to know in the next month or so exactly what amount that will be. Sometimes it's just timing of when we actually hit the market and we are in the midst of scheduling with Fitch, Standard's and Poor's and Moody's the credit rating presentation in San Francisco. On my second bullet point and I apologize its number 2 on the list on page 2. Our intention is to contract out professionals for professional services to assist us with an acquisition of a Payroll H.R. Management time and Attendance System. We feel that leveraging the services of an outside entity or professional will improve the end product and we will also be able to gather or have the consultants gather relevant information and utilize their expertise outside of Kaua`i and nationally to assist us with the creation April 10, 2012 Finance Department p.2 of an effective bid document that we can (inaudible) in the near future. This effort will be a coordination of a number of departments input personnel various other departments, finance, accounting and like I.T. will also be involved in the process so it's a multi departmental collaborative effort that we hope to work on in the upcoming fiscal year. The third initiative that I would like to speak to is working towards a significant change in our budget methodology process. I know I spoke to a number of you in individual meetings about the change in our budget methodology from our current line item based system to one that is tied to more goals and objectives and measurements etc... I have been researching different methodologies on line, reading items on the web with some Government (inaudible) as well as GFOA and they recommended that's practices and I know I'm also starting to send our new budget crew on to training sessions. Wilton just went to one in Arizona and I hope to have others in our budget areas as well as councilmember's to attend some of these sessions that are more progressive in cutting edge on what's happening in the State and local Government arena. What I did find is that it's not a one size fits all, it's not an off the shelf type of thing that you can just pull and plug in place and it will work here. It's something that would need to be fine tuned and worked on to fit Kaua`i County. I look forward to working with our consultants and with the County Council, with our staff and the departments on this initiative and again it's not something that... I don't want to over promise and un-deliver, I want to make sure that the process that we go through we receive solid buy in and we work towards successfully. I have read on a number of various State and Counties that have attempted to make this significant change only to revert back to their old system after a year or two or three in the new process. Again I hope to avoid that I went down this road in the late 90's I believe I would need to revert back to the line item budget and again I hope we're not going to go down that same path. The only way I can think of doing that is to make sure that everyone on our side of the house and on the council side has a real solid understanding of the undertaking and the process. I think going forward I would definitely want to include the council members and the council staff in that process. Mr. Furfaro: Wally let me get a little clarification again I'm sorry on the bond thing. It's potentially, potentially 25 million to refinance and you're figuring the savings to us will be about 125 thousand a year? Mr. Rezentes: In that area. Mr. Furfaro: In that area. Mr. Rezentes: And it's changing everyday because the market is changing every day. I asked Dave this morning he said the market is actually improving so there's a potential for a little more savings but again that's just all going to be based on timing from maybe a month or two from now when we enter the market. I'm hoping that we will be lucky like our last issuance was I think we timed the market pretty well. Mr. Furfaro: With the refinancing of those bonds you would see that as being maybe over the life of those bonds maybe 20 years? Mr. Rezentes: Could be it will range depending on what bonds we are refinancing, they have different maturity dates so usually what we can do or what we do is we'll have an average. Say if we're refinancing bonds that have expiration dates from 5-20 years, somewhere in the middle there would have the average amortization of the refinance bonds. Mr. Furfaro: That's good for me for now thank you. April 10, 2012 Finance Department p.3 Mr. Rezentes: One of the last points relating to a future initiative actually I think its kind of rose into a challenges and it's probably not per say just located within the department of finance but it's something that is I think very important and I need to dedicate more time and effort to improve upon it within the department of finance and that's related to succession planning. I think I need to get the department of finance into a better position relative to the succession management. One of my employees who are not here called it addressing the graying of the workforce but that person who mentioned that doesn't have any hair so I don't know he'll be here later and I think you know who he is. Unfortunately in a small county like ours a relative small county like ours we do not have the built in luxury of having staff redundancies in different areas or layers of employees that perform relatively the same type of work related task. As a result we have increase in exposure when employees leave county service or retire and we need to improve how we address these issues going forward. One of the ways to do that of course is to provide more opportunities for cross training as well as reprioritizing existing positions that become vacant. However the reprioritizing of vacant positions from one area to another will potentially leave a gap somewhere else so you're just pushing the exposure from one area to another. As we move forward and as funding opportunities become more available we do need to address these areas and a couple of areas in particular in the department of finance that is of some concern that will have priority within our department for budgetary purposes is treasury administration as well as our payroll section. In our treasury administration area we have treasurer and an accountant both of whom could retire within the next five years or so. We need to look at succession planning in this area, cross training in this area and in the future and you will see that a number of our departments or divisions or employees wear multiple hats because of our size. Dave will be the first to mention that he wears a treasures hat and he's only treasure in the State and maybe the Nation that also wears overseas drivers' licensing and motor vehicles at the same time. Again that is what it is today in the County of Kaua`i. Another area just a second area and there's more but another area that comes to light is our payroll section. We have one veteran employee who's been with us for a number of years with the county and below him we have basically 2 vacancies that we are in the process of filling very soon. These employees will need to be trained up in short order and information passed on from our seasoned employees over to those areas and again cross training is important and once we are able to get these 2 employees hired and trained and we've made offers for 2 positions in the last few days. I think today we have another one and one of these positions will be making a job offer so we can start the process of building a little bit of redundancy and training and cross training to prepare us better for the future. Another thing that I would like to mention is when we look at the H.R. payroll piece and we can also at the same time look at the potential of transferring risk via the outsourcing of various facets of the payroll functionality. We know that it has been done with mixed for lack of a better word mixed success in Maui County and there are some challenges and some of the challenges relate to our very complicated collective bargaining system specifically HFFA and SHOPO. Again our sister county, we can look to our sister county for some guidance in the process because they have gone through a relative recent RFP and contract to outsource some of their payroll functionality. Moving to our challenges and I've touched on these already and maybe I don't need to go through it any further but funding constraints and the staffing levels have always been a challenge. Staffing levels even can include the vacancy factors that we've endured over the last couple of years as well and all impact operations have risk assigned to these issues and challenges. I hope that as the economy improves and as we are able to have a positive turn in our revenues, we will be better to meet these budgetary and staffing issues and improve upon the service delivery to our external as well as our internal clients. The availability and use of technology is something that we and I.T. and other departments are working on constantly. There is so much demand right now by the different departments for new and bigger and better technological tools to do their job better and I think with April 10, 2012 Finance Department p.4 seeing what's out there in the market in their respective professional areas, there is always best of breed for lack of a better word best of breed software that's exist that a lot of departments want to get their hands over and there's many implementation issues and challenges that tie into such request. I know yesterday there was some discussion on the council floor I believe with the Fire Department and I think what I have seen over the last few years is that there is no enterprise wide solution that will satisfy everyone as much as they want to be satisfied with a specific product. There aren't a lot of companies that specialize in local and state government business. We see that at various conferences nationally but if you look at the individual components of those systems, they may not be what our departments want and would consider quote unquote best of breed. So you may have a C plus product for permitting a B product for accounting, etc... packaged in to one solution and when you have discussions with the departments of course their intent and their hope is to get systems that meet their needs to the fullest. They want the A product in their particular area and often times we try to help them succeed in that vein but we also have operational issues and challenges that are tied with maintaining multiple platforms and multiple systems at the same time. I won't go any further then that but I believe Brandon can touch on that when he comes up. One of the most significant challenges that we have faced in the last fiscal year the most significant operational challenge has been our vacant positions. It has taken a significant amount of time to go through the personnel process and hire a few of our key employees. Two of the most challenging hire's has been within the finance/accounting division or accountant 3 as well as our accounting technician. One of these positions has taken over 6 months and we're finally on the tail end to have the person come on board within the next few weeks... next week. We understand that personnel has had their own set of staffing vacancies but these two situations have been a challenge for us operationally and it has had an effect on overtime and morale, etc... We hope that the newly invented personnel function or department will significantly improve this process and the turnaround times for the finance department as well as all other departments. That's all I have to say on my piece, I was going to call up the various divisions unless you folks have questions for me at this time. Mr. Furfaro: Okay Wally this is what I would like to do. I would like to go around the table with a pair of questions from each councilmember so that everyone has some opportunity and maybe asking questions that others might have. I will start with Councilmember Kualii and we'll go around the table with 2 questions each. Councilmember Kualii you have the floor. Mr. Kualii: Thank you Chair,Aloha and good morning Wally. Mr. Rezentes: Good morning. Mr. Kualii: Mahalo for being here and the work that you do. On bullet number 3 in your successes and achievements, you talked about the Grant Management Program being able to close a hundred and fifty projects. It would be interesting to see just a little bit more detail even if just a listing of sorts as far as the number of years of each grants, the amount of dollars for the grant, the amount of dollars that the county matched with the grant or utilized to get the grant if any and other sources. Mr. Rezentes: So you're looking for more of how many or the listings of all our grants outstanding and... Mr. Kualii: No, no just what was completed. Mr. Rezentes: Oh was closed, okay. April 10, 2012 Finance Department p.5 Mr. Kualii: You mentioned that as a success and it would be interesting to understand that success just a little bit more. Mr. Rezentes: Okay. Mr. Kualii: So just with a little bit more detail to see how we're doing in leveraging and everyone recognizes that that's important so other sources tied with county sources. Often with grants you quantify the non dollar support so incline and column listing would be interesting too. I think that's it's for now, I will ask about positions later. Mr. Furfaro: Vice Chair Yukimura your 2 questions. Ms. Yukimura: Thank you Chair, good morning Wally. Mr. Rezentes: Good morning. Ms.Yukimura: First of all I want to congratulate and thank you're department because you have accomplished a lot you have a broad reach a lot of different operations that are involved in Finance and you have a lot of hard working people and I appreciate what has been accomplished. Especially from the Council point of view thank you very much for the granicus system. That's finally getting us to live council meetings and budget hearings and also I see we're moving towards the system with the agenda items so thank you also to Councilmember Bynum for that where the agenda items are coming available, so thank you. I wanted to ask questions about your payroll, human resources, time management, and time and attendance system. As you know that's been of interest to me over 4 to 5 years now and the reason why I focus attention on it is because I think it's such a core piece to county operations and the recent audit of state payroll has shown that there is a lot of mistakes and costs. I think the state was 2 million dollars in over payments which are hard to recover and unfair and all kinds of things so... I'm really concerned about personnel and people with knowledge about payroll being included in the design of the process. Do you have a committee that's working on this? Mr. Rezentes: We will and we will definitely include. Ms.Yukimura: You don't have a committee yet. Mr. Rezentes: No we would need to form a committee from multiple departments. We are going to go out shortly on our recruitment for via professional services to hire a consultant that will help us with the process from A-Z and help coordinate the information gathering components as well as helping us design an effective RFP or proposal whatever form it will be in the end. We definitely see the need to involve the personnel department from the beginning and we believe that more of the (inaudible) and more of the responsibility would need to go to that department because they are the initial department that's gathers the information on new employees etc... I think in the end there going to have to take on a bigger role and responsibility in the process of getting a bigger role and responsibility in the process of getting information again fed into whatever system we end up acquiring. Ms.Yukimura: So this consultant are you looking for someone who has experience with Hawai`i, State and County payroll? April 10, 2012 Finance Department p.6 Mr. Rezentes: Ideally and I'm not sure what's out there but I can tell you that there's not too many I believe there's not too many professionals out there that have a solid understanding of collective bargaining units in local Government or State Government per say. Ms.Yukimura: Right. Mr. Rezentes: But hopefully we can if they don't have that leverage their experiences in other municipalities that have otentiall similar situations. p Y Ms. Yukimura: Well you've mentioned earlier the complexities and the idiosyncrasies of our collective bargaining agreements and it's not just one there's many and it also to the complexity. That is one of my concerns that we need people who understand that complexity if we're going to develop a system that has to embrace and reflect those issues. Not to • mention the FLSA issues. Mr. Rezentes: Absolutely and again it will be a collective effort from various department staffs that deal with administering their collective bargaining agreements relative to payroll. There is people within Fire, within Police and other areas that have overtime built their own internal expertise in the understanding of their collective bargaining agreements relative to payroll. There are people within Fire, within Police and other areas that have overtime built their own internal expertise in the understanding of their respective collective bargaining agreements for their department. So we're going to have to make sure that there part of the time and leverage their knowledge and hopefully make sure that our consultant gets good information from our teams of people to formulate an RFP that will end up being a successful RFP and ultimately purchase. Ms. Yukimura: So there was a team originally that has been looking at that issue and internal in-house team. Mr. Rezentes: Over the years they have and some of them now are retired. Ms. Yukimura: But some of them... Mr. Rezentes: Some of them are still here. Ms. Yukimura: Yeah and I'm hoping that you will include them. Mr. Rezentes: We will. Ms.Yukimura: Okay and even those who are retired perhaps might be brought back in because the knowledge is invaluable if you're building a system and that's what we're going to be doing, a system that has to last us for a long time. My other question is in out sourcing I'm a little concerned about how we would out source particularly because I'm worried about response time and also about cost. Without sourcing every little request you make cost more money where as if you have in-house people who know the system well and can do most of it to me that would be more cost effective. Mr. Rezentes: The question really is how much (inaudible) transfer you want to have take place, I mean if you keep it all in house than your subject to what I mentioned earlier potential retirements, lack of staffing that can pick up the ball and run with it. By April 10, 2012 Finance Department p.7 outsourcing different facets of it where appropriate you are transferring the risk and liability and part of it how you structure the contract, how you manage the contract and how you handle those insurances. Ms.Yukimura: Well how you do your succession planning and so forth because you could have a consultant where the main person leaves the company too. Mr. Rezentes: True. Ms. Yukimura: And the knowledge goes off with them to so and of course in those cases you want them as an employee in the county. There are those arrangements that have been done but... Mr. Rezentes: And you're right. Ms. Yukimura: But I'm thinking long range and cost effectiveness if you can develop some really good people in-house and develop succession planning for that you may be better off, just in terms of cost and in terms of familiarity with system and in terms of getting input from in-house. Mr. Rezentes: I'm not set in this is the way we're going to formulate it but I think we're going to have to find that out and as we go through the process to see what best fits Kaua`i County. I'm not married to any particular oh we need to outsource this we need to keep this in-house etc... I'm open to figuring out as we go through the process what's best for us. Ms.Yukimura: And neither do I have an absolute solution that I know is the right solution. All I know is that we're at a really critical stage because we're building a system and the kind of foundation we set will either determine that we can really move relatively smoothly as we grow the system and we know where the modules will come because we've anticipated it. We have laid a fairly good some kind of a standardize frame work that we know how to do it or we have this piece meal system and every time we add on something it's very difficult because we didn't anticipate it and we didn't get the proper foundation and it's a mess. My outside knowledge of the states information technology system is that they did it the second way. Maybe there were some bright lights in some departments but as the state system there was no standardize process and I don't even know the exact words but no proper foundational framing. Actually I do know we had to do that when we first started to computerize this county with that AS400 and when we first started on board there was people learning word in one department and word perfect in another department. There were departments buying different kinds of software even though they had to interface at some point no one was thinking about that. It was our I.T. division with a blue ribbon advisory committee that laid out the foundation that's still serving us today. Mr. Furfaro: We need to get to questions to go around the table. You have had 2 questions so far and we're visiting history now and I understand the importance of it but we do need to go to other councilmember's. Ms. Yukimura: I'm sorry I don't mean to be-labor the point but I do... Mr. Rezentes: I would be happy to talk to you off-line too as we move through the process. Ms. Yukimura: Yes okay than just for the record though the importance of creating this foundational framework is what I'm talking about. And what I'm also April 10, 2012 Finance Department p.8 asking for is a really careful listening to the resources you have within the system because they really know the system well and it's an intricate very unique kind of system. So I'm glad you're looking at the other counties but I'm not sure they actually know how to do it either. Thank you. Mr. Furfaro: Mr. Bynum you have 2 questions to pose go right ahead. Mr. Bynum: Good Wally. Mr. Rezentes: Good morning. Mr. Bynum: But right now we're talking about the admin and the county? Mr. Rezentes: Administration. Mr. Bynum: So later the other divisions will be coming up? Mr. Rezentes: Yes every division will be coming up. Mr. Bynum: I want to focus on number 3 and you're up-coming future initiatives. Talk about coordinating budget staff and council services review best practices. I had hoped that we would have had meetings already this year about the changes in the budget and it just put constraints on all of our time but as we move forward to what level do we collaborate with the county council on the selection of a consultant on the scope of work that kind of thing. Is that something that we do collaboratively? Mr. Rezentes: We can and it's the administrations initiative but we definitely want to involve the county council in the process and ultimately in what we decide because again I don't want to create something that is the administrations alone knowing that I need the County Council to support and buy in to whatever process or methodology that's selected. I have read enough where not having that collaboration in the beginning stages and all the way through will likely end up with a solution that won't go anywhere. I'm not sure if you were here Tim but I did mention that I'm hoping and, I believe we discussed this with you when we were meeting individually that I'm hoping we can have various councilmember's and or staff attend the various training sessions that come about throughout the year to familiarize ourselves with what is "quote-unquote"being considered as best practices in the industry. Mr. Bynum: So you're item here says that you're hiring a consultant so I just want to know can we collaborate on the scope of work and the selection of that council. Mr. Rezentes: Yes we can talk definitely. Mr. Bynum: And what kind of time frame did you have in mind for this initiative? Mr. Rezentes: We actually have the resumes now so we'll be working on the selection within the next few weeks. We did go out and advertise. Mr. Bynum: Are you doing an RFQ process? April 10, 2012 Finance Department p.9 Mr. Rezentes: Professional services to hire a contractor, the consultant basically. Mr. Bynum: So than its fast track. Mr. Rezentes: Well we went through the advertisement process and got resumes in so now it's the review of the resume. Mr. Bynum: So you have documents about the scope of work on this consultant? Mr. Rezentes: No we have resumes. Mr. Bynum: So we've already made some changes and I appreciate that and that's should have been real property putting deadlines forward that's going to impact our budget going forward. I'm concerned that some of the changes may need a Charter change. Is that something that you've looked into and is that something we can accomplish because we only have an election once every two years?I have done some preliminary kind of trying to understand what those needs are but is that something that is part of this mix? Mr. Rezentes: We definitely need to discuss it and what should come forth in the next cycle. Some of the Charter change and I believe some Charter changes would be necessary to make the kind of structural changes that's needed to move the budget process forward in the year getting all the relative information moved up as well. I think there's some critical dates that we need to look at from a Charter perspective and we're going to work on that with real property staff as well as the county attorney staff. Mr. Bynum: I'm just feeling a time constraint that I don't know we want to wait 2 or 3 full years to do that and we're at a time table now so that's something I hope we can bid on sooner rather than later. We can see if we're on the same page because the best is that we agree on those changes. I appreciate that initiative and it's clear to me and... Mr. Rezentes: Part of it is you have to find the happy medium between how much you want to advance the calendar backwards and also have the understanding that you don't want to be too far early in the year because of the legislature. Ideally you would want to have timing where we can get through our process but not be so far in advance of our legislative calendar that might affect the budget that you just put in place. We could do that and make adjustments in the budget after but that kind of discussion would need to take place as well. Mr. Bynum: Well I would say right that one of the things that I'm looking at and concerned about is our practice of the Mayor's submitting in essence to budget and in my own view it looks like that's being viewed more strategically than it has in the past that your submitting a budget. When it's submitted your already anticipating changes in May and I think that is problematic we go through all of these hearings and so I really want us to have this dialog sooner rather than later. I actually sent memos to our staff about setting up those meetings about 6 months ago and it's not a criticism we've just all been overwhelmed with other stuff and transitional changes and leadership here at the county council. Those things are starting to settle and so I appreciate those answers and you may have answered this previously and this will be really quick. In the county you have one position that's vacant and one that's been on extended leave and is that's going to change soon?Is that what I heard in your testimony? April 10, 2012 Finance Department p.10 Mr. Rezentes: We have in accounting we have (2) two Technicians, Accountant Technician and Accountant III that's vacant and we're hoping in the very near future to have those two positions filled. Mr. Bynum: You're not seeking any new positions in accounting this year? Mr. Rezentes: No. Mr. Bynum: Is that going to be sufficient because I know you're... Mr. Rezentes: Ideally we could always add positions and part of it is a matter of funding. Mr. Bynum: And one of these the Risk Management position is moving to a different department? Mr. Rezentes: Personnel. Mr. Bynum: Okay. Mr. Rezentes: And they'll come up later. Mr. Bynum: That's enough for now because we'll have a chance to talk about real property and... Mr. Rezentes: What is going to happen and you'll see some of the H.R. Risk Management functionality will move to personnel and the property liability will stay back . with finance. We try to separate out the personnel related pieces like the count pieces with the personnel functionality and have them provide that oversight. Mr. Bynum: But the position is Janine's position right it's moving from finance to... Mr. Rezentes: We'll keep one position and personnel will have one position. Mr. Bynum: So is that Janine and Gerald? Mr. Rezentes: Yes. Mr. Bynum: And who stays where? Mr. Rezentes: Gerald's position will end up staying with finance. Mr. Bynum: Okay thank you. Mr. Rezentes: Okay. Mr. Furfaro: Just a little housekeeping note. The treasury report is at 11:30-12:30 and I think I sent the schedule out saying it was until 1 and we only had 30 minutes for lunch. I just wanted to make that announcement to everyone in case they start ordering take out April 10, 2012 Finance Department p.11 lunch. But the treasurer is 11:30- 12:30 and I'm going to bypass my time and give it to Nadine, Nadine. Ms. Nakamura: Thank you Wally for your report. One question that I had on the bond re-finance opportunity was we have about 60 million in our CIP and 25 and your saying you would re-finance 20... Mr. Rezentes: Twenty somewhat million yes. Ms. Nakamura: So that would not add to the pot it would just be at a lower interest rate? Mr. Rezentes: Right so lower that service. Ms. Nakamura: Right and looking at your preliminary numbers of how much CIP funds we are expanding and encumbering per year, it comes out to be about 25 million for the past few years. So I'm thinking in the next 2 or 3 years we're going to go through that pot of funds. Mr. Rezentes: Good, good that's a good thing. Ms. Nakamura: Which is want its intended to be for but my concern is about while we're re-financing should we be looking at increasing the pot? Or should that be done at a later time? Mr. Rezentes: I believe that the Department of Public Works, Parks and others that administer basically the bulk of the CIP projects have their hands full. I think what you're seeing now is a transition of expanding down on soft cost and now rolling in to the construction. I think and I'm hoping we can spend down on our existing CIP funds prior to us looking at new funding that have impacts administratively on people resources as well. Ms. Nakamura: Sure. Mr. Rezentes: I would have liked to spend as all of you and would have liked to have spent down our 05 and our 2010 bonds a lot sooner than we have. I think we are making inroads and improving along those lines but I think at this time it's more prudent for us to concentrate on the pot that we have, and working on the projects that are tied to the current pot that we have and entertain new or future requests at some time in the future. Ms. Nakamura: Okay that's fine. Mr. Rezentes: And obviously of course I don't want to spend that service or pay a mortgage out to a home that I don't have yet or not going to buy for 3 years or 4 years. Ms. Nakamura: Okay and the other question I have is as we begin this review of best practice methodology. In your opinion what are the key problems that you would like to see this process addressed? Mr. Rezentes: Well I think there are so much more demand for services than our ability to pay for the services. There are a whole lot of things that we get requests for and I'm sure you folks get request for that we cannot fund. Part of the new budget analysis is to April 10, 2012 Finance Department p.12 really get an understanding of what are the community's priorities and to have a frank discussion on what are the services, what are the core services, what are the services that the county provides that our constituents want. Also have a discussion of we only have this amount of money to pay for these service and an understanding of what is above the line and what's below the line that's doesn't make the cut. I think what I've read and what I've seen is that there's more of collaboration between administration, county council, the public of having meaningful discussions on what county taxes, what county fees should pay for. It's a different process on how we get to the point of what we choose to budget and what we choose not to budget. Ms. Nakamura: Would it be possible because my concern is engage a consultant to do this the best practices and try to improve some of our systems. Can we agree to work on a problem statement that describes what both the administration and council sees as the problems with the current budget and get agreement on that before we retain a consultant so that we know exactly what this consultant... Mr. Rezentes: You might have more than one problem. Ms. Nakamura: Exactly and that's what the problem statement should hopefully articulate. Mr. Rezentes: Yeah, yeah. Ms. Nakamura: Well anyway that's something I would want to encourage, thank you. Mr. Furfaro: Mr. Rapozo you have the floor. Mr. Rapozo: Thank you Wally, thanks for being here today. I guess when you have to pick the 2 most pounding questions I guess I have to find two. The first one is you guys did some restructuring in finance and you reallocated and moved some positions from purchasing. One of the questions or concerns I have county wide is it seems to me anyway that we're losing our grant infrastructure.We heard it from Civil Defense yesterday and I see you did reallocate where you moved one grant program manager over to a budget analysis and my concern is that we're not retaining our grant resources and that is a concern. I'm not sure if... Mr. Rezentes: What we actually did Councilmember Rapozo is create a staff of basically 2 analysis that will now have the function of budget and grants. Part of that is to create some redundancy that I mentioned before and I think less of a risk for retirement, people leaving that kind of thing. We've also added to Ernie's hat oversight over that functionality as well. I think we're in the process of having our newest employee trained up in the process and getting a foot hole in the grant process procedures requirements. I think we're with the available resources I think the move that we made actually is improving our product and maybe it won't be perfect right off the gate, right out of the gate but I think over time it will have a positive impact on the county and the departments that we serve. I think I mentioned I stepped in yesterday and I did mention relating to civil defense although they had an employee movement there 2 or 3 years ago whatever it was. There are 2 or 3 staff members that collaborate on the grant function and they were not here yesterday with Teddy but I know because I sit in on some of those grant preparation meetings and the staff that they have there have a lot of knowledge in the process, in working with state civil defense and working with the federal agents. A large part of that function is in the public safety arena, Alton, Mark, Chelsea that core group there are all collaborate in assisting the departments through their grant application process. They are on the phone making sure i's are dotted is sre crossed etc... April 10, 2012 Finance Department p.13 Mr. Rapozo: I guess my concern was that there was a time when we looked at the different budgets and there was always an employee for grant coordinator, grant manager and that's disappearing so I just want to make sure that as we start to rely more and more on grants we should take advantage of grants. It seems like we are giving them as additional duties to others when we're losing that resource and I just want to make sure and I trust your judgment and we had the discussion in the parking lot of the ABC store regarding you're restructuring. I have all the faith in your leadership but I'm starting to see that the resource is going away like the Dinosaurs we don't see Dinosaurs. Now we don't see any grant positions and they've all been converted and I'm assuming that these reallocations and movements and I don't have last year's budget but I believe they all came with increases and salaries. Is that correct? Mr. Rezentes: I think a matter of fact if you're actually talking the finance department there's a slight net savings but I think I can have Ernie elaborate on that when he comes up. Mr. Rapozo: Okay and the other question is in your budget you have a provision for temporary hire for section 3, what is that the 100 thousand dollars? It's on page 31 I'm sorry, it's right under your salaries of your administrative section of the budget. You have regular salaries than you have salaries and adjustments and an increase of 100 grand and in the text is says provisions for temporary hires. Mr. Rezentes: There's a section in the budget proviso that talks about the hiring of temporary positions and that is Section 3 of the budget ordinance proviso. The finance department has the catch all accounts to address or pay for at least some of those potential instances where there is need to temporary hire/temporary fund positions from other departments. Our preference and our internal procedure policy all along has been if the department themselves can fund it if they utilize that provision in Section 3 of the budget ordinance provisions and if they can internally fund it we would want them to internally fund it and not spend down on this 100 thousand. The 100 thousand is there available for those instances where there is a need to temporarily hire positions in any department. Mr. Rapozo: In any department? Mr. Rezentes: In any department relative to that authority given in Section 3. Mr. Rapozo: Is that a new proviso? Mr. Rezentes: No it's been there for awhile. Mr. Rapozo: We just never funded that? Mr. Rezentes. No we've had it there for a while and I believe we used it from time to time. I think the 100 thousand in reality the hundred thousand really would support the smaller departments that don't have as much budgetary flexibility if they have situations. Mr. Rapozo: I know we didn't have this last year. Mr. Rezentes: Yeah you did. Mr. Rapozo: No we didn't have it in our budget last year. April 10, 2012 Finance Department p.14 Mr. Rezentes: Temporary. Mr. Rapozo: Not as it's stated in your budget. Mr. Rezentes: No I think we did. Mr. Rapozo: That's a new item and it may have been in another line. Mr. Rezentes: Yeah and the intent is to comply with that Section 3 of the budget ordinance proviso. Mr. Rapozo: Okay and that's my 2 questions, I have more but I will... thank you. Mr. Rezentes: Thank you. Mr. Furfaro: Okay Mr. Chang. Mr. Chang: Mr. Chair I don't have any questions at this time thank you. Mr. Furfaro: Wally I have one before we call up your other departments. Mr. Rezentes: Alright. Mr. Furfaro: Transferring to the death service account, we're putting 9.7 million in that and that seems to have grown a bit is that a questions later for Ernie Barreira or can you help us. Mr. Rezentes: It's probably more for Dave but that's strictly principal and interest amount that's required to pay for our debt obligations. Mr. Furfaro: It looks like it almost doubled though. Mr. Rezentes: Yeah, yeah. Mr. Furfaro: Okay I just want to make sure and I want to understand the conditions and the debt services doubling this year from the previous year. I will hold that for Dave. Mr. Rezentes: And it will stay at those levels pretty much for the foreseeable future. Mr. Furfaro: If we re-finance that's the line item it's coming out of? Mr. Rezentes: It will be reduce yes. Mr. Furfaro: That's where it will be reduced. . April 10, 2012 Finance Department p.15 Mr. Rezentes: We'll likely pass the budget before we know what the savings will be but we will definitely know what that number is once we float the box. Mr. Furfaro: Understood and I will pose that to Dave. Mr. Rezentes: Yeah and Dave has I believe in his presentation he can provide a handout of what our debt service annual payment will be for the foreseeable future. Mr. Furfaro: Great thank you. I will go back to Councilmember Kualii but before I do what is the order of your people coming up? Mr. Rezentes: I got next is Purchasing then Finance/Accounting then Real Property Assessment and Real Property Collections, I.T., Risk Management then at your request Treasury last. Mr. Furfaro: Okay good, Mr. Kualii you have the floor. Mr. Kualii: Thank you Mr. Chair. When I held off on my positions questions I realize I have to ask it now because it's specifically here in Administration and it's for Wally before we move on. The vacant position that is a "Special Projects Officer" contract and it shows a dollar in the budget. It says effective date 2010, it says department handles county dollar funded position. I'm just wondering if is it vacant or filled and by a grant? Because it's not funded by the county but that doesn't necessarily mean there isn't a body in it and it's not being paid by a grant. Special Projects Officer contract position 1547, and if you need to... Mr. Rezentes: Right now it's a special projects officer but what it will convert to and Brandon will elaborate on that is a telecommunications officer position. Mr. Kualii: Okay it would have been good to just put it there like your little notes below. Because if its leaving here and going there even if it's a dollar funded position because with our Human Resource reports now I'm looking more closely. Well we will hear more about it later you said? Mr. Rezentes: Well actually in the line item budget on page 38 and we'll elaborate a little but I think if you see the last position there it was incorrectly listed as 212 and that is actually the 1547 that last position with the asterisk county telecommunication officer. We will update that in the May submittal to reflect that position as 1547. Mr. Kualii: Okay and the position right next to that 254 RP- Appraisal Review Officer. I was just wondering for 90 thousand, that's an existing position with a body in it? Mr. Rezentes: Yes. Mr. Kualii: And later on page 38 we have all the real property, no not the 38 sorry on page 52 you have all the real property positions. Real Property Appraisal Officer, Appraiser, Drafting Tech, Tax Clerk whatever... Why is this position not with the real property if its real property appraisal reviews officer? Mr. Rezentes: I think that position has more of an administration oversight, it's almost a resource to Sally and I and that position is actually Steve Hunt's position. So his position right now is Finance Admin. April 10, 2012 Finance Department p.16 Mr. Kualii: And the last thing out of curiosity and I don't know if I seen it anywhere else but what is a Private Secretary? Mr. Rezentes: It's a appointed secretary that's existing in I think most departments. Mr. Kualii: Oh it does? Mr. Rezentes: Yes. Mr. Kualii: Like the Head Administrative Assistant directly to the Director and Department Head. Mr. Rezentes: Right. Mr. Kualii: Okay thank you. Mr. Rapozo: Mr. Chair I just want to get clarification on what he just asked if possible? Mr. Furfaro: Okay go right ahead. Mr. Rapozo: I think the position that Mr. Kualii talked about the "Special Projects Officer" that's on your administration page is position number 1547. The position that you're talking about the I.T. Telecommunication Officer is 212 and according to what you submitted that position 212 is moving from... well it's confusing because on page 38 it says position from real property RPA Finance Admin Specialist I, but on page 52 it says Finance Services Secretary to I.T. as Public Safety Telecommunications Officer. So I guess your Admin Specialists I is your Secretary I'm not sure but that's 2 separate positions. The one that Mr. Kualii asked about the vacant Special Project Officer, that's not the one that's being moved? Mr. Rezentes: 1547 is currently a Special Projects Officer position that's dollar funded. Mr. Rapozo: Right. Mr. Rezentes: What we're proposing to do in the upcoming budget is to place that position in I.T. for the first six months of the year and the reason for that is we have a long standing employee that our telecommunications officer and a long time employee is on extended leave and... Mr. Rapozo: Yeah you covered that in your presentation and I'm confused as to what's 212 position number 212 on page 38? Mr. Rezentes: That 212 is listed in error but we're going to update it to be 1547, 212 I would need to go check where that... okay I'm sorry 212 is a position that is moving to the Department of Personnel Services in that restructuring. Let me go confirm there should be 212 in Department of Personnel Services. Ms. Nakamura: Yes there is. ii April 10, 2012 Finance Department p.17 Mr. Rezentes: Okay so that is a position that... Mr. Rapozo: But your text doesn't say that your text is saying... Mr. Rezentes: Yeah that's what I mentioned we have to update it, it was incorrect to put 212 in there it should be instead of 212 it should be listed as 1547 and we'll correct that in the May submittal. 212 is the position that was part of the restructuring of personnel. Mr. Rapozo: Well Wally I guess that was part of the problem, that restructuring never came to us and we don't even know what the plans are for H.R. and I don't know what's going to happen. What if this council says "no" and I know you talked about the collaboration with your transition of the new system and stuff and that's all fine and dandy but that doesn't happy and now we're in a situation where we have a whole bunch of movement, reallocations, changes, upgrades and this Council was never given the opportunity to even talk about it. I don't know what's going to happen after we do our deliberation and their already posting for the jobs but it's not your issue and I just had to say that because there are so many movements. Mr. Rezentes: I hear you. Mr. Rapozo: And we can't even keep track. Thank you and that's all I have Mr. Chair. Mr. Furfaro: Before I pass it over to you JoAnn, and Ernie I'm sorry I want you to know via talking with Ernie and a few of the people. I have voiced my concern that concern before Wally and I think this is backing in to a situation. I mean originally we thought we were going to get a February presentation to the council then it was March then it was after the budget. It is like backing in to it so, Vice Chair Yukimura. Ms. Yukimura: Thank you could you submit an arch art of your new finance restructuring? Mr. Rezentes: Okay. Ms. Yukimura: And arch art. Mr. Rezentes: I can give you an art chart by division. Ms.Yukimura: Right. Mr. Rezentes: Okay. Ms. Yukimura: Right and the two new job descriptions for your budget analysis which I think is a good move but we're just trying to understand what you're doing here and what the new picture looks like. Mr. Rezentes: Okay. Ms. Yukimura: The two budget analysis that are going to have the function of both budget and grants and so I think the job descriptions will help us understand what you're trying to do and hopefully (inaudible) some of the concerns about losing grant support. But those are Ann and Ken's positions right? April 10, 2012 Finance Department p.18 Mr. Rezentes: Correct. Ms. Yukimura: Okay and then... Mr. Rezentes: You know there has been pretty consistent misconception in different areas about finances functionality relative to grants. The reality is you will find the people that have the specific grant expertise in their respective areas lie in the respective departments. The finance side of the coin is more a resource to those folks and ensuring that we comply or they comply with all of the requirements that is laid forth by State, Federal or other entities and often times finances functionality is to ensure that departments timely submit documentations to the grant source and timely close out grants and sometimes crack the whip and get action to move things forward. It's not in the obtaining of grants per to say but more to help facilitate and help manage the grant function for the departments. Ms. Yukimura: And I understand that it's more an accountability function and an oversight function and a support function right and that makes sense to me because it is the different departments that know the subject matter. I think that will help us and the last thing would be... Mr. Rezentes: I was talking to Ann about it a little bit yesterday and she said she usually gets the call when there's some issues or some concerns about something that is approaching a deadline and they need to work towards getting documentation paperwork in etc... Ms. Yukimura: Or if someone is new at writing grants they can have her review it for comment and critique. So can you also submit for us an itemized costing of the refinancing? I would like to know how much the refinancing is costing us. Mr. Rezentes: The cost of issuance? Ms.Yukimura: Yes and well the consultants and whatever. Mr. Rezentes: And Dave can touch on that today too, later on today. Ms. Yukimura: Okay thank you. Mr. Furfaro: Mr. Bynum you have the floor. Mr. Bynum: Sorry Wally if I'm missing something here or you discussed it earlier but on your page 3 your budget overview it talks about an increase of 2.47 million cost allocations. So this whole paragraph is a little confusing to me because it says our FY-13 budget of 12.8 million is 5.4 percent less than our budget of 2012 which totaled 11 million 6. Mr. Rezentes: That's a typo it should be 12,240. Mr. Bynum: So what is the change increase of 2.47 million cost allocations? Can you explain that to me? Mr. Rezentes: Actually I thought it was more along the lines of 3 hundred somewhat thousand change in the cost allocation. Mr. Bynum: So the 11.6 million is a typo and it suppose to be what? April 10, 2012 Finance p Department p.19 P Mr. Rezentes: If you look on page 3 you see the 12.242.92? Mr. Bynum: Yes. Mr. Rezentes: That should be the number. Mr. Bynum: Okay good it wasn't me then? Mr. Rezentes: No that's me that's my bad. Mr. Bynum: But I still don't understand the main factor for this change was an increase of 2.47 million in cost allocations from various funds, so that's 2.4 million that coming from those funds into the finance budget? Mr. Rezentes: You know what Councilmember Bynum I apologize that whole paragraph and whole sentence should have been stricken. I think was from our last year's presentation and I apologize. Mr. Bynum: I'm confused now I'm sorry. I'm glad I was thinking I was missing something. Mr. Rezentes: No you caught. Mr. Bynum: Because it didn't make sense to me. Mr. Rezentes: I don't know maybe I didn't press save. Mr. Furfaro: Wally one second so we have the narrative being wrong but the... Mr. Rezentes: The dollars are correct. Mr. Furfaro: The table chart is correct. Mr. Rezentes: Correct. Mr. Furfaro: Thank you Mr. Bynum. Mr. Bynum: Okay so if the table chart is correct and your budget is down 6 hundred thousand and that's attributed to positions that are moving out of the departments? Mr. Rezentes: Part and part of it is reducing or budgeting closer to the line on our various estimated cost on our property liability excess or comp. Mr. Bynum: So planning for less variance? Mr. Rezentes: Right closer to the line and again the risk there is if there is a national or international impact catastrophe and how it affects the insurance industry may affect us. April 10, 2012 Finance Department p.20 Mr. Bynum: So the reduction is moving some positions into other departments. Mr. Rezentes: Personnel. Mr. Bynum: And budgeting closer to the line of your variance initiative you're taking with all the departments. Mr. Rezentes: And the variance in the cost allocation amounts in over the current year. Mr. Bynum: So cost allocation meaning it was last year that those funds started contributing to the cost of their operations to the finance. Mr. Rezentes: The different departmental cost that you know finance provides central services for a number of departments and a number of funds. What we do is finance/accounting does a contract for services to provide us with information on how much of our internal cost we can allocate to other areas of the county. Mr. Bynum: So when it moves from those funds like highways, liquor, solid waste, that's reflected in your 12 million dollar budget? Mr. Rezentes: Yes you will see it in finance/accountings line items. Mr. Bynum: Than it's a cost factor in those funds? Mr. Rezentes: You will see it as a negative in finance/accountings budget because the funding will come from other funds into that line item to offset the negative. Mr. Bynum: So actually I feel better this paragraph does have some significant typo and some census that shouldn't be in there. Mr. Rezentes: Yes. Mr. Bynum: So if it didn't make sense to me I'm not crazy right? Mr. Rezentes: You're correct for it not making sense. Mr. Bynum: Okay. Mr. Rezentes: And it's my fault, my fault. Mr. Bynum: I feel better thank you. Mr. Furfaro: Councilmember Nakamura do you want to take this? Okay Mr. Rapozo, go ahead. I'm going to hold the question right at the end for myself. So go right ahead. Mr. Rapozo: I have one and maybe this is not the right time but OPEB. Can you give us and we've seen when we look at the personnel cost in all the departments it's showing an extremely huge increase and a lot of it is attributed to OPEB and OPEB is separate from your regular benefits that's why its other personnel or whatever it's called? April 10, 2012 Finance Department p.21 Mr. Rezentes: It's tied to the health fund. Mr. Rapozo: When we talk about benefits to an employee, when we talk about the typical benefits medical, retirement and so forth, that's constitutes I think about 60 somewhat percent. Isn't that true when you're looking at the normal? Mr. Rezentes: You mean all fringes? Mr. Rapozo: Yes. Mr. Rezentes: Approximately eighty percent. Mr. Rapozo: Is eighty included the OPEB. Mr. Rezentes: Yes. Mr. Rapozo: Yeah well if you remove OPEB from that calculation I think that was the confusion. Mr. Rezentes: I see, I see, I mean I don't have the breakdown in front of me. Mr. Rapozo: But I guess my question was real simple it's just when you talk about the 80 plus percent that's including OPEB? Mr. Rapozo: Okay that's all had because I'm looking more in the way that the Chair figured it out and it's all based on the percentage of Social Security g p g urity and the FICA Medicare and so forth. That still remains at about the 60 or 65 percent range then when you include the OPEB which is tremendous now we bump that percentage up to about 80 plus percent. Mr. Furfaro: It goes from 67 to 80.2. Mr. Rapozo: Okay got it. Thank you that was my only question. Ms. Yukimura: So either now or later can we get a summarized explanation for that additional twenty percent. Could you provide you said you have the breakdown but not here, could you provide that breakdown for us? Mr. Rezentes: The framed breakdown? Ms. Yukimura: Yes that would be really helpful and can you do a brief summary you just said it was mainly due to health. Mr. Rezentes: The OPEB is a health fund cost yeah. Ms. Yukimura: But it's an addition. Mr. Rezentes: It's a component of the health fund cost and liability for current employees as well as retirees. April 10, 2012 Finance Department p.22 Ms. Yukimura: Is this is not normally counted? Health fund is not normally counted in fringe? Mr. Rezentes: It is. Ms. Yukimura: But this is an additional. Mr. Rezentes: It is and we identify OPEB in the fringe class breakdown because it's significant but we have a cost factor for that. Ms. Yukimura: And it just came about this year? Mr. Rezentes: Oh no we've had it for a number of years. It's been increasing over a number of years but yeah we've had the OPEB factor and the post employment benefit factor for a number of years. Ms. Yukimura: Well I've been out for awhile but 80 percent I've never heard of before, it was always 50-60 percent. Mr. Rezentes: It's been growing consistently from the 90's since I started in the mid 92's so I recall it starting... Ms. Yukimura: What is the cause of the change? Mr. Rezentes: A number of things, collective bargaining, retirement system packages and basically it even involve the average length of an employees and retirees lifetime. That has increased consistently over the years therefore retirement benefits, health fund benefits have to be paid over a longer period of time. These factors all impact how much the County needs to fund into a retirement or health fund. Ms.Yukimura: And after it's decided everybody says oh well it's a given we can't change it we can't do anything and so it's this vicious cycle of no accountability actually. Mr. Rezentes: There is and I believe when the head of the... Ms. Yukimura: And that's why we invited her over because the question was we went from 7.6 percent Social Security, 10.5 percent on Health, 15.5 percent in Retirement and 34.5 percent in OPED. That's where it was and then it climbed in her presentation. We all got a summary on that including yourself did you not? Mr. Rezentes: We did. Mr. Furfaro: Can you re-provide that to us Wally? Mr. Rezentes: Okay. Ms.Yukimura: Can you tell me what that acronym stands for sorry. Mr. Rezentes: OPEB? Ms.Yukimura: Yes. 2 rYA #' t t April 10, 2012 Finance Department p.23 Mr. Rezentes: Other post employment benefits. Ms.Yukimura: Okay so it does include pension not just health? Mr. Rezentes: No, no pension is on the employee retirement system in rest. Ms.Yukimura: Right, right, so this is mainly health, the health fund? Mr. Rezentes: Yes. Ms. Yukimura: So this is only the health fund and all the different aspects. Mr. Rezentes: OPEB is a component of the health fund contribution. Ms. Yukimura: Okay. Mr. Furfaro: So you'll provide that for us Wally? Mr. Rezentes: Yes. Mr. Furfaro: And you can do that within 2 days? Mr. Rezentes: Yes I gotta pull up I believe she provided that. Did she provide that Scott electronically I apologize I think you may have it electronically. Mr. Furfaro: We may have it electronically as well too. Mr. Rezentes: Yes I believe she left it here electronically. Mr. Furfaro: Well I think we want a confirmation from you because these are the numbers we're seeing in the budget we can obviously tract ours. You following me Ernie? Mr. Barreira: Yes. Mr. Furfaro: Okay so we want that number to be one that is substantiated in the financials. Mr. Rapozo: One more real quick question Mr. Chair. Wally does that have anything to do with our decision to pre-pay our benefit, you know the unfunded liability. Does that have any correlation to the fact that we decided to fully fund versus what others have done? Mr. Rezentes: Yes I mean we are paying more because we're making the collective decision that we're paying off over the course of the 30 years our unfunded liability. Mr. Rapozo: Right and I guess we had not done that our number would not be as... Mr. Rezentes: As significant yes. April 10, 2012 Finance Department p.24 Mr. Rapozo: Okay so I think that is what we've been missing and I asked this question over few weeks ago and everyone said no, no, no, that's the right thing to do. Mr. Furfaro: Did I say that? Mr. Rapozo: I think you were one of them. Mr. Furfaro: It couldn't have been me. Mr. Rapozo: It wasn't you Jay. Mr. Furfaro: It couldn't have been me but that's the piece we're missing here the accelerated cost will get a closer to the goal line quicker than anybody else. Mr. Rapozo: Right and that I think was my simple question a few weeks ago was and analysis done back then to determine now if we're going in this direction which we will fully fund it and I believe is the right decision and don't get me wrong. I think we're way ahead of the game when we do it this way but with that comes this additional employee cost ever year that takes us from 67 percent as the Chair has stated to 80.2 percent. So that's something that we have to understand that's the cause and it wasn't because collective bargaining, it wasn't because of anything else, it was because this county decided to fully fund the unfunded liability, which again I think when you look at all the pros and the cons it's think it's the right thing to do but with that comes the increased employee cost. Ms. Yukimura: I agree too that it's the right thing to do and it's the right thing because it actually makes real for us the implications of our collective bargaining agreements. Otherwise they are kicked down the road and you don't have to deal with them and someone else will have to deal with them just like we have to deal with what decision makers before us made now. But it is related to collective bargaining and other provisions that determine what our future cost will be right... okay, thank you. Mr. Furfaro: Yeah okay I'm going to give you the floor because I want to look at the schedule. Mr. Kualii: Just quickly to follow up on that. So that is also about accrued leaves that sit on the books for years and years and when they retire they can take a pay out of vacation and sick leave? Mr. Rezentes: Are you talking OPEB? Mr. Kualii: This OPEB liability. Mr. Rezentes: No that will be paid out upon accrued, accrued vacation usually gets paid out upon exiting the county when they retire or leave. Vacation is added to the retirement calculation and the OPEB is tied to future benefits or benefits that would need to be paid out for estimated for existing and future and retired people over their anticipated lifespan. There is an analysis I believe when the administrator was here she eluted to the fact that I think every 2 years they do the actuarial analysis every two years so that they reanalyze what payroll data, lifespan data, etc... and we have to make the appropriate changes going forward. So there is definite adjustments that are made to the system and part of the reason for the change is performance of the fund. They invest money so I good years when there's a good rate of return it will April 10, 2012 Finance Department p.25 also impact us positively on how much we set aside but they make certain assumptions in their actuarial analysis to include how much the average rate of return will be for the next x number of years. They have to do that kind of analysis to come to provide us all the employers with the appropriate numbers. Mr. Kualii: It leads me to think that knowing that we're funding it and we're recognizing all that liability and there's actual dollars forecasted to it, on the flip side we should be using that information in our recruitment and in our salary considerations because that's a huge benefit added to the salary. Mr. Rezentes: And I can attest that by budgeting for it and paying for it, it also is a very positive part of our credit rating. When we can go over there and say hey we're the only county in the state that is acknowledging and paying for this cost on an annual basis and have the buy in from both the admin and the council to continue to do that. It's not an easy thing to keep funding and our counterparts some have done to a certain extent, some have decided to push that bogie out into the future. It helps us in the credit rating that we have and that helps us with that service. Ms. Yukimura: Isn't it true in terms of recruitment the benefits are changing with new hires? Mr. Rezentes: Yes. Ms.Yukimura: So that actually our future obligations for existing and retired employees are taking away from the new hires. Mr. Rezentes: There was a change on the retirement system side on how much we would need to set aside for future employees, for the general employee category it's moving from I think 15 -15 and a half percent and police and fire from 19.7 -22 percent. So those have again these are for new employees that are recruited and start after July 1. Mr. Furfaro: It was necessary to do and on that note we're going to take a caption break here but I have some housekeeping announcements to make. Since we haven't gotten to your sub people yet I have made a leadership decision I guess that's what the other six have nominated me for. So we're going to move elderly affairs until the 20th of April and then we will take the treasurer at 1:30 Wally, so we can go with you right until 12:30. So we will do the treasurer today and we'll do transportation with the bus and then we will do liquor and end the day. Elderly will be re-scheduled and Aida's working on that for me right now. So let's take a 10 minute break and you may want to call the treasury people and let them know they will be on at 1:30 There being no objections, the Council recessed. The Council reconvened and proceeded as follows: Mr. Furfaro: Okay we're back in session, Mr. Barreira thank you for being up and I want to make something very clear. Last year through the budget questionnaire pieces the times that elapsed in the responses to the questions quite frankly were un-acceptable. Some went as long as ten days and we're setting a new goal but a goal is just a goal to get things turned around in 48 hours and I want to make sure because there are other department heads that are listening to this. I do expect them to be turned around in 48 hours unless they're saying question number 6 needs more research. I have announced as we've gone along today that there are April 10, 2012 Finance Department p.26 opportunities for people to get the rest of the week to answer the questions and so forth. But everyone knows this time of year, this is budget time, this is very critical for the council to have the responses but obviously we're a reasonable group of people but if you can understand that clearly. If they're not going to respond within the 48 hours just put in their research needed and we understand, we understand. Mr. Barreira you have the floor. Mr. Barreira: Thank you Honorable Chair Furfaro, Vice Chair Yukimura, Members of the Council. Good morning, Ernie Barreira, Budget and Purchasing Director. I am here this morning to present the Division of Purchasing budget but before I go in to that I know there was a question that councilmember Rapozo had asked in terms of the budget division and the allocation of positions. I would like to clarify that sir if I may before I go on to my formal presentation with regards to division of purchasing budget. I take no credit for the consolidation of the budget division I think it was a very creative opportunity by the administration to do that. What it did was we did not acquire any new positions in terms of bringing together the budget division. The departure of our former budget administrator, Alvin Honda created the opportunity to re-describe that position from a high ranking EM-5 position to an EM-3 budget analyst's position which is now occupied by Ken Shimonishi who is a budget analyst and is expected to also support the grant process as similar to Ann Wooten's position. Ann was an EM-1 a Grants Manager that was re-described to the budget analyst and both positions as well as my leadership over the division will focus both on budget as well as grant management. The resources that were in place in terms of grants within the department of finance have not gone away. One could say that they've been further broadened in terms of resources now being allocated to two different professional positions as opposed to only one. In terms of our budget division where the budget division was pretty much managed by one person for many, many years and now we have a division of 3 people. What is note worthy in terms of that reorganization is that it will come with just under 10 thousand dollars in reduction of salary costs as a result of the reallocations both downwards and upwards of those positions. For me having been the former Assistant Chief Procurement Officer, I have also assumed the responsibilities of budget director so it's basically the way of Government and I agree with that for today. With the increase demand of services but to diminish the amount of financial resources this is what we need to do, we need to identify people who can serve a broader role and still meet the goals and objectives of our organization within having to expand a tremendous amount of money. I think the mathematics if w had created a brand new procured hired division of budget would have been close to half a million dollars a year in terms of salaries and fringe benefits. By doing what we've done we're actually saving almost 10 thousand dollars a year in gross salaries. I would be happy to send over a very brief financial review on how I came up with those numbers if you would like that Mr. Chair? Mr. Furfaro: We would like it so if you could send that over within 48 hours I would appreciate it. Mr. Barreira: That I can do sir. Mr. Furfaro: If it takes longer then that then just put down "Research needed." Mr. Barreira: Yes and in terms of your directive council chair, we do understand it is 48 hours. Sometimes we are able to respond, I am primarily responsible for consolidating all of the requests and having them responded back to you timely. I am finding that sometimes 48 hours is not sufficient because of the complexity of the inquiry and especially those that have to go to multiple departments and agencies that becomes a challenge. We have conveyed to our department heads the importance of these inquiries and we will be responding with due time as April 10, 2012 Finance Department p.27 you requested and if we're unable to meet that requirement we will seek additional request for more time. Mr. Furfaro: And that's all I'm asking and right now I'm sitting here and we're discussing the new H.R. Department and myself and 2 councilmember's were involved in a discussion 3 weeks ago and still no responses to our questions. We really need to have understanding on both sides. Mr. Barreira: I will look into the outstanding inquiry and get back to you timely sir. Mr. Furfaro: Thank you. Mr. Barreira: I'm very happy to be here this morning to present the division of purchasing/budget that is a hat that I will wear this morning and I'm happy to answer any questions you might have. When I appeared before this honorable body a year ago we talked about the need to move very aggressively in terms of the division of purchasing, to move it from a rather traditional operation within the Government to make it more progressive more innovative in terms of harnessing whatever available technologies are in place to move us in to the 21st century. I am very pleased to report to you this morning some of the initiatives that we've taken up and some of the success stories that I'm able to share. I am not going to go over specifically the operational budget that I've submitted for the division of purchasing nor am I going to go over specifically the budgets support package. I believe those are self explanatory and what I would like to do is highlight some successes that we've under taken and also talk about some future initiatives that I would like to pursue. At the end before I close I would like to seek your assistance in terms of what I'm asking from you for the fiscal 13 budget. One is a cost item one is a non cost item. Over the past year we have been working diligently to try to identify the methodology's available to create an internet based e-procurement system for the county.As you know the old procurement system was very costly in terms of paper, manpower, postage, facsimiles and other in efficiencies that cost us time and money. Now while the old system worked it didn't work as good as it could work and we believe the system that we have in place today is far more effective and far more efficient. I am very pleased to inform you that as of July 1 of 2011, all of our formal bids and procurement activity now resides on the division of purchasing website as an internet based e-procurement system. That is very exciting for all of us and that includes all of our formal bids to include RFP's excuse me request for proposals and invitations for bids as well as our professional services, our postings for soul source and exempt procurements as well as our written and formal bids for our larger but small purchases. In addition to those resources being available on the World Wide Web we also are posting all of our addenda which are documents that are sent out to our bidding community when we modify the base bid documents that have to be changed. We also post on the internet our informal and formal tabulations that are post bid opening activities, and finally all awards that are issued by the division of purchasing now reside on the internet and the website as well. So what these functionalities have done is has taken away a substantial amount of the paper, has all but eliminated the use of postage including very expensive certified mail. It has taken away photo copying and has made it so much easier for both our customers, our shareholders in the community, our people, our contractors, our vendors, as well as our departments and agency personnel to more easily excess the important elements of our procurement system without having to follow these traditional methods of snail mail and other paper driven processes that take time and money. We are very excited about this initiative and the fact that we were able to roll this out as a collaborative initiative in less than 2 years speaks to the credibility of many people. I would be remised this morning Mr. Chair if not making brief mention giving proper accolades and acknowledgments for those people who deserve it. First off I would like to start with the division of April 10, 2012 Finance Department p.28 purchasing staff, those fabulous seven men and women who are responsible for millions of dollars worth of procurement for our county took on the challenge of moving from a traditional operation into a very modern day operation. Resistance to change as you know is significant in any organization, not withstanding that fact this individuals took this initiative on with a great deal of gusto and they were able to roll this initiative out in a relatively short period of time and it was a tremendous amount of time and energy. Special recognition is owed to Mr. Owen Wright, who is not only our senior procurement specialists in the division of purchasing but he also manages our technician operations. Owen Brought with him not only a tremendous amount of experience in procurement but also as a former IBM employee brought with him the technological knowledge needed to work collaboratively with our IT division to roll out these various initiatives. All of the initiatives that I'm going to speak of today were all spearheaded by Mr. Wright in the division of purchasing. He took the leadership provided and he ran with this project notwithstanding the many, many man hours that were available. Also equal recognition is owed to our fabulous, energetic IT Manager Mr. Brandon Raines. All of you know Brandon well you've worked with him and the man is never short of energy. He has worked side by side with us to toll out not only this internet based e-procurement system but all of the other technological initiatives that we've taken up this year. Special recognition is also owed to IT employee Mandi Swanson, Mandy was actually the Y resource in IT that programmed all of the codes necessary to let this internet based e-procurement p g Y p system and she did it in record time. It was extremely impressive and I'm not sure if any of you had the chance to go on the website but I suspect some of the support staff has done so who work on procurement, but it is quite impressive. I don't take credit for that I mean leadership is one thing but implementation is really where it's at. A prime example of substantially successful collaborative effort put together by a group of people who share the vision.g y g p p p Sion. You know leading, change e and initiative is very easy when the direction and vision is very clear and never compromising and to that I give credit to Mayor Carvalho, Managing Director Heu and Director Rezentes. When I entered the county in April of 2010, it was very clear to me what direction I should be heading and moving our operations into higher levels of technology were made very clear to me. For that credit is due to our executive team as well who have laid the pathway and provided the support needed to move in that direction. Of course I have heard a great deal about the need for technology from this Honorable group and in that regard you to take credit because you've made that clear you've made your expectations clear and we have been able to move in that direction as a result. So you have my collective thanks a well Mr. Chair and members of the council, thank you. Mr. Furfaro: Well thank you for recognizing all those that participated but so I don't get it confused with a movie maybe you can come up with another name other than the Fantastic Seven. Isn't there a western called the Fantastic Seven? Oh that's right it's the Magnificent Seven. Mr. Barreira: Yes that's an accurate description of what they are and do you want me to name those people Sir is that what you're asking? I would be happy to do that. Okay very good, of course our Operations Manager, Florence Kakuda, Mr. Wright Owen Wright, who is our Senior Specialist and our Technicians Manager, Rowena Victorino who is another Senior Specialist, Kristy Morita who is a Junior Specialist in the division and 3 very fabulous technicians starting with Hope Stem, Calvin Maeda who recently left us due to retirement and we're going to miss him greatly and of course last but not least Kerry Moses. All incredible people who put together a tremendous amount of energy to make this happen and I'm very proud of know these people. Mr. Furfaro: Thank you very much. 3 April 10, 2012 Finance Department p.29 Mr. Barreira: Thank you for asking Sir. There's two other initiatives I would like to talk to you about because they we're significant based on the things that I heard when I entered the division of purchasing back in 2010. The second item was our contract electronic initiative. When I first entered the county nearly two years ago in fact next week will make two years so it's been almost two years. I was quite amazed in the manner in which we facilitated our contract execution, we would gather up an original contract and four additional and they called them copies but for all intents and purposes they were also originals. Contracts ranged from a very thin document to a very thick document and we would send all five of these documents to our contractor to execute them via wet signature and review, have them transmitted back to the county and transport those very thick amounts of papers throughout the entire county, to the departments, to the county attorney and to the director of finance before finally getting it back into the division of purchasing and executing all of that paper. Now in addition to being a very highly inefficient process the other concern was in the case of litigation what would be define to be the original contract. So I consulted closely with the county attorney in working with addressing this initiative and we decided we were going to make incremental changes to that process to make it more efficient and make it smarter. So what we did initially was eliminate those multiple documents to one transmitted original with one original transmittal that comes along with the contract that is submitted to the division of purchasing, is then scanned as a PDF document p g, e t and that is sent to the contractor. The contractor is asked to generate an original to affix the signature and the other legal requirements and then to return it back to the division of purchasing where we will then transmit that one original throughout the county family, acquire the full signatures and when we have a fully executed contract we would scan it into the system and transmit to everyone electronically as opposed to a hard copy form. That saves us a tremendous amount of time and money in terms of postage and photocopying as well as the manpower that was utilized to do that. The next step which we just rolled out a copula of months ago was to try to eliminate the paper so all of the contracts that are transmitted to the division of purchasing today come in electronic form to include the transmittal and then we execute the contract that I have discussed with you. As a PDF scanned document transmitted to all affected parties electronically and what they do with it after they receive it if they wish to create a hard copy that is up to them but we're not going to facilitate that type of high paper intensity process that we've done in the past. There was one piece that was not yet implemented and is very close to being done so, Mr. Wright again developed an electronic contract portal which will reside at the division of purchasing. That portal is divided up by departments, county departments and agencies. That is the location where all our fully executed contracts will reside so no more will we even have to place more burden on our e-mail communication systems by having these large PDF attachments. Once we fully execute the contract it will be placed in the contract portal by department and agency and authorized county personnel that have already been pre-determined can come to that site and acquire that contract. They can print it, they can download it to a different modem, and they can do whatever they want in order to acquire that contractual information. One of the components of that contract portal is an electronic log which will enable people who come to the portal who can't quite recall a contract number or any other particulars would be able to search for that contract using different methods. Either by contract number by contract amount, by vendor and they will then be directed to the location of that contract. So it is a major movement towards having things done in a more efficient manner and getting away from the paper. In getting back to the share point portal and the electronic procurement system not only is the electronic procurement system now on-line in the division of purchasing web-site, but via the share point portal of the county under the division of purchasing we have also posted all of our electronic boiler plates for request for proposals, invitations for bids and also various policies and procedures to place these at the fingertips of our departments and agencies who need that information. The third initiative that was probably one of the most significant in terms of comments made from departments and agencies and even from members of this council was our electronic forms initiative. Once again it was a collaborative effort involving the division of April 10, 2012 Finance Department p.30 purchasing and Mr. Raines in the IT Division. It was a multi-step process that first of all had to identify accurately all of the procurement documents that are required by law under the Hawaii Revised Statues which HRS.103D as well as the associated administrative rules and our policies and procedures. I will tell you that there are over 120 procurement forms even after our attempts to consolidate there are 120 procurement forms that still exist. The first step in this process was to accurately identify all of the forms that are applicable to the law. Then it was conducting a subject matter review of those forms to make sure that they were accurate and they complimented the requirements that they had to meet under the statue. The third phase was very time consuming once again for Mr. Wright. He took all of those forms and re-programmed to be electronic data field capable. The vision was to get away from the paper, to get away from the snail mail and lets create a resource where county departments and agencies can go to a site acquire the forms that they need and transmit them electronically to expedite the process of procurement. In one of the presentations yesterday Chair made reference to that sometimes a six month procurement process and sometimes that's true so let's find ways to be more expeditious because we do have the discretion to do that. I am very pleased to report that as of last month the electronic forms are now posted on the County of Kaua`i's Sheer Point Site, under the division of purchasing. They are properly categorized by different categorization whether its procurement type or transmittal or contract documents and there are all electronically data field capable. Any member of the county family can go to that site download the form, fill it on their computer and transmit it to the division of purchasing in half the time that it would normally take to do so. I have left two options for the department heads, one is to and the vast majority of the forms that are used for procurement are not legally binding upon the county. These are simply internal documents that facilitate the work of procurement. So with regard to that I am fine with a department head vesting authority to type in a name on the space allocated for that document and immediately electronically transmitting it to the department of purchasing. Some department heads may wish to have it printed, apply a wet signature after which it will be scanned and emailed to us electronically. Either way is a tremendous movement towards the old process but the secondary system does not allow us the flexibility to move away from the paper. Even in terms of the director of finance there are a number of forms that he has to sign approvals to execute contracts and negotiate contracts, some recommendations of awards in terms of professional services. He is currently having department heads transmit the hard copies he is signing and then it is transmitted to us electronically. Now what is the problem with this picture I can make transition into the 2 needs that I have for council this year. The first is the non cost item that related to this item. We do not have in the county currently an electronic signature protocol and that is something that is probomatic for us. There are Government entities around the country and even in the state that have the ability to facilitate electronic signatures to expedite the processing of our work. The absence of electronic and now for the internal needs for our forms and our processing of procurement work, I don't think we need any legislative action to acquire that resource, I think in working with Mr. Raines and with the county attorney we can develop a protocol assuming the technology exist to empower our departments and agencies to be able to affix an electronic signature that's going to take away the paper. In terms of procurement there is a larger issue and that is in terms of what is the next step for our electronic procurement initiative. That is a very critical element that I would like to share with you today and it ties into the electronic signature and issue as well. While we have a very impressive e-procurement based system right now it is not fully interoperable in terms of our ability. We are able to let bids, to post information to share data but we are not able to receive electronic offers on that system. There is a bill making its way through House and Senate that is currently in conference Committee and its one the bills that is likely going to pass this year and we're very excited and its House Bill 2265. That bill is going to change the small procurement thresh holds for all county and state departments from its current state of under 25 thousand dollars to 100 thousand _ -m.. .. April 10, 2012 Finance Department p.31 dollars for goods and services and 250 thousand dollars for construction. I cannot even begin to tell you how that's going to help our operations because right now if a county agency or department has a need for a better service that extends 25 dollars or greater we have to facilitate a formal procurement methodology which is extremely time consuming. Now with the increased thresh holds that we can take advantage of it doesn't mean that we're going to recklessly purchase expensive items but it will give us more resources and flexibility to acquire these goods and services without having to jump through many, many hoops. So how are we going to move towards that interactive and interoperable internet based electronic procurement system. Once again with the assistance of our IT division we have spent the last year witnessing a number of E-Internet based E- procurement systems that are available in the marketplace. These provide tremendous resources in terms of not only allowing electronic offers to be submitted but allowing electronic bid openings as opposed to gathering people in our office and watching the clock and making sure their tome stamped offers are in place and timed. It becomes a internet worldwide bid opening because at 2:00 on that bid opening date the computers shuts it down and the bid is shared immediately with everyone in the world that chooses to go to that website and find that information. It also does auto bid tabulation which is incredible and that's going to save a tremendous amount of time for our county departments and agencies and that's a long term process. For total sum bids for invitations for bids that will be done automatically which will take the place of 3 or 4 manual steps that are currently in place. It will also do statistical analysis and enable us to track various types of procurement resources that we undertake. Now these systems range from 45 thousand dollars a year to a hundred thousand dollars a year, and depending on the other types of provisions it might be in place that we might want to utilize and it could get more costly. In these times of diminish resources financial resources and an increase demand for service we can't afford to spend that kind of money. Well thank goodness as part of our due diligence in witnessing these various applications we came across a company called Public Purchase. This company has been around for 15 years and it currently provides E-Procurement services to 27 hundred municipalities and county entities around the country and they do it for absolutely no cost. As long as you are a government agency or a vendor and you utilize their internet base E- Procurement system there is no cost. I'm sure there's going to be questions later about what's the catch and I will be happy to share that with you and I'm sure Mr. Raines could touch on that as well during his presentation. Obviously this is an opportunity that we can't turn down so over the next fiscal year we will be aggressively seeking a contractual arrangement with Public Purchase. Now most of these entities do not allow you to enter into a contractual agreement, they simply want an agreement saying this is what we're going to provide you okay and we sign. Public Purchase has proven its credibility by being willing to enter into a contractual relationship with the county which is going to substantially minimize our exposure and allow us to hold them accountable to the services they say they will provide. So where as we could be looking at a hundred thousand dollar expenditure a year we're going to be able to acquire this tremendous resource at no cost and there is also no hidden cost. As Mr. Raines can tell you these resources exist on a cloud so there's no stress placed upon our data systems within the county and the redundancies are all built in and we have researched the various safeguards that are in place and we are very confident in exercising our due diligence that this will be an asset that will tremendously benefit the county of Kaua`i. Mr. Furfaro: So you're committed right now to tell us that there's no hidden commission for them from the vendors? Mr. Barreira: And Mr. Raines can speak more eloquently on that topic as well. April 10, 2012 Finance Department p.32 Mr. Furfaro: Well I tell ou that's the most unbelievable le thing I've heard in a very long time. They are not collecting commissions on the vendors that supply 1 them? Mr. Barreira: Yes not on the internet base E-Procurement system which will let buds and one of the fascinating things Chair about this system and what we cannot currently do. It registered all vendors at the front end of (Inaudible). They register base on commodity and sub commodity codes which are defined by our NIGP Standards (National Institute of Government Procurement) Mr. Chang. Once we let a bid on to the system it does an automatic profile measurement of the bid and whether it meets the commodity or sub commodity registration and immediately notifies vendors that a bid is left on the system so they can go to the system and look at the bid to see if they want to participate in submitting an offer to the county. Mr. Furfaro: Okay I just want to let you know that in the resort business those are known as national change specs, okay they pre-identify whether its bath tissues to linens to so forth but the vendors do supply the third party with a commission. Mr. Barreira: Okay very good and I can't speak for the Hotel Industry Sir but I will take your word for it. So getting back to that E-Procurement system and electronic signatures right now in order for us to take advantage of that thresh hold that's is being changed and is likely going to be in acted in to law very shortly, we're going to have to have an internet based E-Procurement system that can let and receive bids. The problem with the absence of electronic signatures with regards to procurement, let's say we adopt the system and we start receiving electronic offers even after the offer is received by virtue of the content of the law, if we're going to award a vendor that contract before we can award they have to submit 3 things in hard copy wet signature from. The evidence of authority to sign the bid, any type of the offer itself and any bonds that are required to accompany the bid so that's going to make it cumbersome for our vendor community again, to have to comply with the contents of the procurement code in order to have their bid. If we do not receive that written documentation in 5 working days the bid will be deemed unresponsive and we have to go to the next lowest bidder which ultimately could cost the county money. So with regards to electronic signatures on bid documents and on contracts it will be essential that I perhaps seek the assistance of council for a resolution or perhaps even an ordinance to acknowledge the liability and importance of electronic signatures which could then be used as a vehicle to take up to the state legislature with our legislative team to pursue the amendment of the Hawaii State Procurement Code to acknowledge the acceptability of electronic signatures. That is going to help us in our contract management, that's going to help us in our E-Procurement system. Mr. Furfaro: And who do you see that controls the electronic signatures? I mean you need to develop a policy for us to understand who's controlling the key for the electronic signatures. Mr. Barreira: I think the first... Mr. Furfaro: And I'm not talking about a household key. Who's got a handle on that you need to develop a policy for us? Mr. Barreira: Yes sir and that's... Mr. Furfaro: To even consider. Mr. Barreira: Yes and I would be dishonest if I told you I have an extremely clear picture as we sit here today, I know where we want to get and I'm not quite clear what the elements are yet. I would think one of the key elements is the fact that the procurement �I' April 10, 2012 Finance Department p.33 code disallows it under certain circumstances. I think who will be instrumental in pursuing this initiative will be the subject matter expertise found in Mr. Raines and his division but of course council as well. If we can enter in to whether it's a resolution or an ordinance to acknowledge the importance and (inaudible) of electronic signatures I think it will help us move in that direction, and of course the county attorney. Mr. Furfaro: So is that your wish list item before I start opening up questions? Mr. Barreira: It's the free one it's the no cost one yes sir. Mr. Furfaro: That's the wish list item? Mr. Barreira: Yes. Mr. Furfaro: Okay and is there a cost item? Mr. Barreira: There is a cost item. Mr. Furfaro: Have you gotten there yet? Mr. Barreira: I will get there right now sir. Mr. Furfaro: Okay we will let you get there first. Mr. Barreira: One of the things you will see in my budget proposal for this year is my seeking your authorization to fully find a dollar funded position currently contained within the department of finance. Once again councilmember Rapozo it's 1547 and I will explain to you how that works in a minute. This position is currently a special projects officer and what I proposed in the next fiscal year is to allow us to fully fund that position and re-describe it effective December of 2013 as an Entry Level Procurement Specialist position and let me explain why. It is based on a work load analysis as well as the very important succession planning initiatives that we've been talking about for a very long time. Ms.Yukimura: That's 1547? Mr. Barreira: Yes and I will explain Vice Chair, it's a Specifications and Procurement Specialists. Mr. Furfaro: If you're going to talk without being recognized turn down your mics. Okay have you got all your pieces members? Ms. Yukimura: Entry Level Specifications and... Mr. Barreira: And procurement specialist. Mr. Furfaro: Procurement specialist. Mr. Barreira: Its an SR-16 position it's an entry level position. Now why... The reason that I'm pursuing this is (inaudible). Since I came on board I've conducted a comparative analysis over the past 3 years in terms of workload in the division of purchasing. The variables that I used to do this and it was un-scientific were our 2 largest procurement methods, April 10, 2012 Finance Department p.34 request for proposals and invitations for bids. In 2009 the formal request for those two categories came in at 21 formal requests. In 2012 that number increased to 32 and in 2011 that number increased to 50. Now keep in mind that's only conducting an analysis of 2 of the 6 major procurement methodologies that we rely upon and it's not looking at any other work load variable nor is it looking at our management at the purchase order system, our surplus system or the surplus system that we've managed within the division of purchasing. Looking at those numbers which represents about a 56 percent increase, I consider that to be statistically significant in terms of workload increase. There is a disproportionate relationship between those workload increases and the fact that it's been more than 10 years since there's been a manpower adjustment within the division of purchasing. So I think that's noteworthy to look at. The other issue Mr. Chair on terms of succession planning, I have been working on succession planning issued for many years as a Government Administrator and I think all of us can agree that we're not quite there yet, we haven't quite done the best job we can and I don't want to be guilty of the same crime. My reality in the division of purchasing out of my 7 staffers is that 3 of the most senior and experience staff members are going to be eligible for retirement very shortly. Two of those three have committed then when they achieve eligibility there going to retire and enter the good life. I don't want to be stuck in a situation if I do not take divisive action now to put forth a plan to meet that need we are going to be substantially crippled beginning 2015 and being unable to meet the strenuous demands p[lace upon us. When you consider that every dollar that is spent in the county begins with the division of purchasing it is a significant issue and I think we need to address that. My intent is to hire this entry level specialist, train the remaining specialist to make them competent in the science of procurement and have them ready to enter a new level of authority when the senior members leave so we can maintain the level of continuity that's important. I think that's a critical strategy one that I would like to explore and I would seek your kind support in moving in that direction. Mr. Furfaro: Just so you know Ernie that was one of the questions posed to this new HR Department. It's not just about purchasing and continuity, it's about the whole county and continuity. We're looking for a common plan that identifies interviews and reports who the high achievers are across the county. Mr. Barreira: Very good Chair. One of the things I've been confronted on is you're the electronic guy Ernie and you're moving towards harnessing technologies to make you more efficient, make you more effective. That is true and these initiatives are going to achieve those goals but the subject matter, knowledge, expertise and intelligence is vested within the procurement and specifications specialist will never be replaced by a machine or a computer or a software application. These individuals endure that the procurement code, the administrative rules and internal olicies p and procedures are met so that with adhere to a very credible procurement process and that all of the elements of a good procurement are maintained. That is essential and that is why I am perusing this. Mr. Furfaro: I want to make sure I clarify myself because I have many years of experience in continuity and the fact of the matter this is not something that we're going to turn over to a pre-determined software program that color codes people whether they are green, red, yellow, not wanting to move, ready to move or ready to retire,. It is a human resource function for the whole county. I just want to caution you on that sense I applaud you but at the same time caution you that there needs to be continuity through the corporation called the County of Kauai. Mr. Barreira: Absolutely agreed sir. • April 10, 2012 Finance Department p.35 Ms. Yukimura: Well first of all congratulations on your phenomenal achievement in a short time. Mr. Barreira: Thank you. Ms. Yukimura: And congratulations to your team and as you've pointed out it really does take the willingness to change and to work on it. My questions actually have to do with the electronic signature issue but before that on your overall achievements have you made any effort to estimate the cost savings? Mr. Barreira: Yes I have. Ms.Yukimura: And what ball park are we looking at? Mr. Barreira: The division of purchasing projects a 50 thousand dollar savings in operating expenses this year. Ms. Yukimura: So that's something that will be carried on year to year I don't know if in that amount but certainly it's a repetitive savings. Mr. Barreira: It supposed to long as there continues to be commitment to that and hopefully it catches all throughout the county. Ms. Yukimura: Yes it spreads. Mr. Barreira: Yes and the reason for that Vice Chair is the postal budget for the county is about a hundred and five thousand dollars and the division of purchasing occupies about 30 percent of that especially in our old operation. This year we have not mailed a single parcel, we have not sent out a single piece of certified mail, we have not spent the 20 thousand dollars in advertising cost that we had in the past. So those monies are going to be real savings in terms of our budget and as you recall Honorable Members of the Council I came to you earlier this year with a request to expand some money to finally seek a renovation in the division of purchasing which is 20 years overdue. And it was because of those changes that we were able to accommodate and find those funds so I thank you again for your support on that. Ms. Yukimura: So just from postage alone you're saving about 30 thousand? Mr. Barreira: About 28 to 30 thousand dollars yes. Ms. Yukimura; Wow that's phenomenal thank you. Mr. Furfaro: Go on you have your second question. Ms. Yukimura: Yes about the electronic signature you're suggesting that we need a change in state law? Is it possible to amend the present bill that's in conference committee to include the authorization if I heard you right it's an authorization for electronic signatures? Mr. Barreira: The bill that is currently in conference committee is strictly addressing the small purchase thresh hold under HRS-103D-305, it would have been an excellent suggestion and perhaps I should have thought of that to see if we could attach a proviso to April 10, 2012 Finance Department p.36 change that. In its current state because it's in conference committee I do not believe that, that's is possible, I would have to check with Paula Morikami who could provide more guidance on that point. Ms.Yukimura: It might be worth it to check they do, do some pretty surprising things in conference committee so and this would be a good purpose. Mr. Barreira: Yes and I will look into that. Ms. Yukimura: And then you're asking us for possibly a resolution for a bill in which I think sounds like something we would like to facilitate. Is there a model ordinance for authorization of the electronic signature that either perhaps we can find through NACO (National Association of Counties) or through the Association Of Purchasing Directors or somebody. Mr. Barreira: I don't know of anything Vice Chair currently but that is part of the due diligence and the research that I'm working on along with the county attorney to find whether there is some enabling law that we can utilize to formulate the ordinance for that bill. Ms. Yukimura: I think the benefits would be tremendous and of course you have to include the safeguards so whatever that takes is something I would be interested in doing and I'm sensing that perhaps the whole council would. Mr. Furfaro: If I see the controls I would be able to answer that but I would like to see the controls proposed first. Mr. Barreira: Very good Sir. Ms.Yukimura: Thank you. Mr. Furfaro: Yes and it's the same words, control, safeguard and I don't mean high controls I mean controls, Mr. Chang, then Mr.Rapozo. Mr. Chang: Thank you Mr. Barreira for being here I just flashed back your presentation of last year and how articulate you were without coming up for air. So I wish I had remembered to bring y tape recorder because I said this would be a perfect thing to tape while I'm driving from Lihu'e to Kapa'a and back so I can absorb all of this. I wanted to say first of all and congratulations we see obvious leaps and bounds. Public purchase has been around for about 17 years you say? Mr. Barreira: For about 15 years. Mr. Chang: Fifteen years okay and then they do about twenty seven hundred municipalities? Mr. Barreira: Yes. Mr. Chang: Did we contact any municipalities that you might be familiar with and ask what was that relationship with public purchase, because when we here no charge and no hidden cost you always waiting for the, but wait... there's more. Mr. Barreira: Yes. 1 April 10, 2012 Finance Department p.37 Mr. Chang: So have we gotten any historic feedback from any of these as far as your research? • Mr. Barreira: Yes I have spoken via e-mail communications to a number of these municipalities all of whom normally volunteer to come out and help as long as I pay their way to Hawai`i. They're always eager to come by and give us a hand. We have spoken to them and in all the people I have spoken to I have not heard one negative comment about public purchase in terms of its applicability and it usefulness to let bids and receive electronic offers. In fact one of my colleagues on Maui my counterpart on Maui is probably going to beat me to the punch to implement the system because he too is moving in that direction. Mr. Chang: Well that's good to know because fifteen years is a lot of credibility in this day and age with business. Another thing that you were talking about and the other one was the but... and this is this part. You have mentioned your position the 1547 and you're asking for an SR Position as I noticed that on page 34, but it just seems as though you're savings with postage, office supplies, advertising was huge. As Council Vice Chair Yukimura was asking and you're saying that this 50 thousand dollar savings will be this year, next year and next year and so forth. I mean we might be saving more. Mr. Barreira: The variable that I don't have control over is the amount of mail that's processed per county agency and department by county agencies and departments to the division of purchasing. I always hold my breath and Kerry Moses who manages and Hope Stem who manages our mail operations now, they know when a big mailing comes in they come and tell me Ernie we have a big mailing request coming in. That's always a concern and some of them is by statue or by ordinance and we have to facilitate mail, but where discretion is allowed we hope to minimize those expenses so I would hope councilmember Chang that it would be a recurring savings and if it's not quite frankly I would be very disappointed. Mr. Chang: I wanted to say congratulations because it does seem like so many things were outdated and you've been able to consolidate it such a short time in evidence by savings. It sounds so positive and if this was a perfect world and you got what you wanted for I think you said by the end of this year December. I mean if we looked into a crystal ball it looks like what would you be telling us one year from now?What's the positive thing you would be telling us one year from now? Mr. Furfaro: He would be telling you that the PoOst Office is broke. Mr. Barreira: I would love to be able to tell you that we've been effective in carrying out our intent to create the electronic signature statutory amendment to enable us to seek larger applications in our paperless initiative and that would be critical. Mr. Chang: I guess if you have your counterpart on Maui and if he does effectively beat you to the punch maybe we can be monitoring him and reporting so we can get on this as quick as possible. The last comment I would like to make and I think the gentlemen's name is Irwin Wright. Mr. Barreira: Mr. Wright yes. Mr. Chang: When you made reference to Mr. Wright a lot of people out there looking for Mr. Wright so looks like we got Mr. Wright in the right in the right place. April 10, 2012 Finance Department p.38 Mr. Barreira: We do and he's one of our seniors that are scheduled to leave us very shortly. Mr. Chang: Okay good and thank you for mentioning the reason in being we need that position with the entry level procurement specialist and what have you. Thank you. Mr. Barreira: Thank Y ou. Mr. Furfaro: Ernie thank you for giving praise to your people from Mr. Wright on and right on down thank you. Mr. Barreira: It couldn't happen without them, thank you. Mr. Rapozo: Thank you and thank you for a great presentation and one thing I really appreciate is the attempt to request the position and not do it before the budget year. That's drives me insane when that's done and it happens all too often but I have a general broader question for the purchasing division. As you know the council has our own procurement officer in the council chair and I know in past years that authority had been delegated back to the administration so we operated really without a Chief Procurement officer but I know the County Auditor was here and one of his challenges was the acceptance of the audit function and I guess I need to know. What is the acceptance level of the administration for the chief procurement officer function here at the legislative side of the house? Mr. Barreira: I know there has been quite a bit of discussion back and forth councilmember Rapozo about that issue. The statue is clear on who serves the role of Chief Procurement Office. I think in addition the director of finance; council chairs also serve that role. I think some of the confusion at least for me in trying to interpret the 1999 memorandum that we've all looked at a number of times... Mr. Rapozo: That should be tossed away already, that should be shredded and destroyed because it's now 2012. Mr. Barreira: Okay understood. I was looking at that as the authoritative document in terms of our discretion and we were assuming the responsibility for procurement for council and director of finance would serve in the role of chief procurement officer. I understand that's going to be resolved or if it has already been resolved. Mr. Furfaro: It was never an issue for us; it's not an issue for us and doesn't need resolving. The memorandum basically said since we have common employees that the procurement of supplies for the legislative body would be done through your staffing. It never conveyed the authority for purchasing. Mr. Rapozo: I guess the purpose for my question because I don't want to debate the authority because that authority is not debatable, that authority is quite clear. Are we able in all your methodologies going forward with the E-bidding and the E- purchasing and the E- contracts? How does that play into the legislative procurement process? Is that going to be a separate methodology that the council has to look at our own employees, is that something that we now that we're in budget is that something that we need to share in the cost? I'm not sure how that works but I know one thing is that the procurement decisions of this county council remains here and I just want to know how that's going to play into your plans going forward? April 10, 2012 Finance Department p.39 Mr. Barreira: Until I'm told otherwise all of the procurement applications that we are responsible for within the division of purchasing for all county departments and agencies to include the county council will remain until I am given administrative direction otherwise. Mr. Rapozo: So and let me just say if the council needed to purchase a budgeted item let's say a vehicle, let's say the budget approved a vehicle and the council chair signs off on it, how does that work?Does the requisition go over to your office? Mr. Barreira: Actually I believe Nancy does most of the procurement work for council. There is a protocol and you would have to of course verify the existence of funds via the requisition. Then you would have to prepare a formal bid document and transmitted formally electronically to the division of purchasing at our County of Kaua`i purchasing e-mail address then it would be attended to and p assigned to a specialist to facilitate the actual g procurement and purchase. Mr. Rapozo: Okay. Mr. Furfaro: With the exception of the preparation from Nancy going through the County Clerk, you're evaluation of that is correct. Mr. Barreira: Yes. Mr. Rapozo: I just want to make sure that going forward that we are going to be covered and if not then we obviously Mr. Chang need to prepare our budget with the necessary editions to accomplish the procurement processes for the legislative body. That's all y concern is and I just want to make sure that we're included in your plans going forward and if not then we just have to make that adjustments and that's all I'm saying. Mr. Furfaro: Sounds like we're included in the plans that Ernie has given us .Okay we still have a half an hour but half an hour is for IT so we'll go to one more question from Vice Chair Yukimura. Ms. Yukimura: First of all congratulations on your succession plan which sounds like a good plan sounds like something we need to be doing in all departments and it serves as a model in sense. My question is given that you've started the greening of procurement by going paperless, would your office be open to looking at how you could further green the procurement process and I'm talking about it in this respect. By requiring if we were the school system we would require more local food in the purchasing for the cafeterias. But for us a certain percentage of recycled glass in the development of pipeline installation or the requirement for complex fluorescent lights in any new building that we're going to build or in the purchase of lighting for replacement. There is a thousand different ways that could do that and I imagine that is something our sustainability manager is beginning to look at as well as our energy coordinator. There are so many advances that could be made because we're a major purchaser in terms of going for recycled paper and so forth and it would have to be cost effective so that every issue would have to be analyzed. I'm not making any presumptions about what and how you should procure in a more green way but just that kind of due diligence or investigation and goal setting for the procurement office and for the county. Mr. Barreira: The mayor has made it very clear that sustainability is an initiative and major initiative for the county. The creation of the sustainability team is evident of that and yes Vice Chair they are working diligently in that area. For us we will and our job is to April 10, 2012 Finance Department p.40 procure the good and service. There are initiatives already in place under law where you have to look at certain recyclables, HRS- 103D412 in terms of vehicles and councilmember Rapozo and I spoke off the record the other day about thy is a SUV so expensive? Because under the law unless it's law enforcement vehicle we have to use alternative fuel vehicles and those are far more costly. So it benefits the environment in terms of(inaudible)but it's more costly because manufacturing demands are higher. There are already things in the procurement code that mandates, alternate energy and other sustainability issues and I am all for it I mean the fact that our initiative on electronic procurement has substantially diminish the amount of paper that goes into that land filed and other places. We have moved aggressively in that area and we will continue to find ways to meet that expectation that the Mayor has set forth and that the council has spoken in support of as well. Ms. Yukimura: Okay just one follow up question to that. So I'm asking for not just following the law but actually developing some procurement policies that would be green procurement and to some extent you may need the authorization of all or you may feel more comfortable with the authorization of law, in which case proposing to us or to the state legislature but probably be starting at the county level would be something that I would,welcome in terms of how we might make our procurement greener. But with the acknowledgment of the other goals we have to meet in terms of being cost effective as well. Thank you. Mr. Barreira: Thank you. Mr. Furfaro: Do you have a number for this requisition of this entry level position that you're wanting to? Mr. Barreira: You're not going to want to hear this Chair but its 1547. Mr. Furfaro: 1547. Mr. Barreira: And perhaps off the record I can explain how all that works because it's rather complicated. Mr. Furfaro: No I think I can trace it from there I didn't write that position number down the last time. Mr. Kualii you have the floor. Mr. Kualii: Thank you Mr. Chair, Aloha. So earlier you talked about the savings with the no certified mail and I believe you said no advertising? Mr. Barreira: Yes. Mr. Kualii: So for certified mail it was 28 thousand or 30 thousand. What was the savings in advertising? Mr. Barreira: Its 20 thousand dollars. Mr. Kualii: And that is in the current fiscal year? Mr. Barreira: Yes in fact let me check that its 19 thousand in the current fiscal year 12 budget. We have not spent a cent of that money. Mr. Kualii: So in next year's budget there is also a line item for 19 thousand. April 10, 2012 Finance Department p.41 Mr. Barreira: It's going to be further reviewed and evaluated and amended in the May submittal. Mr. Kualii: So that could be zero? Mr. Barreira: It is very possible yes. Mr. Kualii: Okay thank you. Mr. Furfaro: Now we still have accounting and IT to go. Ernie I want to thank you very much for that information. I'm going to ask if accounting would like to speak first before IT I'm sorry. Mr. Rezentes: Mr. Chair I just wanted to confer if you're thinking I can have accounting come and peel Brandon off until after lunch? Mr. Furfaro: We can do that. Mr. Rezentes: Timing wise do you think that will work out? Mr. Furfaro: We can do that, we can peel him off. Mr. Rezentes: Until this afternoon the whole day. Mr. Chang: Did you explain to Brandon what that meant in... Mr. Rezentes: He catches on. Mr. Furfaro: He spent time in the Caribbean. So we'll have accounting come up. Wally just for your information questions for procurement and purchasing are yet to be developed from Councilmember Nakamura. She will be sending hers over in question form. RENEE YADAO,ACCOUNTING SYSTEMS ADMINISTRATOR: For the record Renee Yadao,Accounting Systems Administrator. Good afternoon councilmember's. Mr. Furfaro: Good afternoon Renee. Ms.Yadao: I would first like to start off with acknowledging my team. They continue to exceed my expectations and they would extremely hard and I would like to just acknowledge them at this time. If it's okay I would like to stick with the format and I believe you received that presentation earlier. Accountings mission: Is to provide oversight and maintain the accuracy and integrity of the county's financial system. Goals and Objectives: Primarily (1) to report accurately all financial related information in a timely manner and (2) Strive to promote transparency, streamline processes to increase, efficiencies, effectiveness and consistency throughout county wide operations. Accountings Success and Achievements: The first one is the Government Finance Officers Association or (GFOA) awarded a certificate of achievement of excellence in financial reporting to the County of Kaua`i, for its Comprehensive Annual Financial Report or (CAFR) for the fiscal year ended June 30, 2010. The County has received this award for 18 consecutive years and this award signifies the County's 2010 CAFR has achieved the highest standards in financial recordings in accordance with generally accepted accounting principles or (GAAP) and applicable legal requirements. We believe our current 2011 CAFR will continue to meet April 10, 2012 Finance Department p.42 such requirements. Number two: Continue to promote succession planning and elimination of operational silos by implementing cross training and cross functioning capabilities in anticipation of retirement and or attrition. Number three: Accounting division successfully implemented Phase 1 of expanding the P Card Program for other commodities of which included the development of operational policies and procedures, guidelines and standardized forms. Also with the assistance of IT Personnel the accounting team worked with First Hawaiian Bank in establishing and creating new card holder accounts. Online transactional and reporting access and system integration between center suite and sun guards government management and budgetary accounting application, which is our general ledger system. Currently all divisions within finance, Civil Defense, Transportation, County Attorney's, Liquor, Planning Commission, Council, Housing and Personnel Administration is piloting the P Card program to ensure a smooth transition while ultimately allowing the ability to manage unanticipated and undesirable situations that may occur during the pilot and testing phase. In the Month of April we have scheduled training for Agency on Elderly Affairs, Planning and Parks. To date 23 of 73 or 32 percent of the P Cards have been issued and distributed. Our current rebate percentage is 1.4 percent paid on a quarterly basis and current year to date 2012 rebate received through December 2011 was approximately 33 hundred dollars for both travel and other commodities. Our goal is to have all approved P Cards issued by the end of this calendar year. Challenges: Efforts to successfully maintain cross training continue to be challenging due to short staffing and unfilled vacant positions. In our current operating environment there are significant operational risks, effective implementation of cross training proves to represent an important risk management tool by sharing, spreading and capitalizing of individual retained knowledge in specialized functions. In order to minimize the impact of foreseen vacancies due to retirement, the accounting division instills a proactive and forward looking a pp roach to enable the required red knowledge transfer and allowance for documenting standardized operational procedures. Payroll: this is my high risk area, I have no backup. There is one individual and he is the central payroll accountant he has retained historical knowledge and subject matter expertise with one to two years at the most to retirement. I would like everyone to know so that everyone is put on notice there will be no claim of(inaudible) I have serious concerns. As I reflect back to last January's budget meeting I did request a new position for a Pre-Audit Clerk 1, to take on the assignments of the accounting trainee in order for her to focus on payroll and to shadow, develop and document operational procedures. My request was denied and unfortunately it was an opportunity lost of one here, it was time lost. Furthermore we are constantly covering for others in this division and when someone gets sick or takes vacation or extended leave or retires the goal of operational efficiency and effectiveness becomes unrealistic and unachievable. Going forward and with the anticipation of all vacancies filled the accounting division will become more efficient, optimized and effectively utilized resources available to ultimately lay the foundation for a strong and sound division. As I reflect on my two current positions that I've been advocating for and trying to get filled, it was a continuous issue with personnel. Their mission statement states, to provide quality service to the public, our employees and to all county department agencies's which will enhance achievement of their goals. Question; how can I achieve my goals if I can't obtain my list? In their departmental goals they mentioned established eligible list on a timely basis. Question; what is timely please define? I keep hearing comment such as it will get better I just need to be patient well the accounting division has deadlines, we have weekly, semi monthly, monthly, quarterly and annual deadlines. I have been told by many that I need to be patient.Accounting is responsible for vendor payments, IRS-1099 reporting, employee paychecks and I would like the option to say please be patient perhaps I will try next week. As I hear that we are moving in the H.R. one stop shop direction, I would hope that some form of client satisfaction survey be performed by an outside source. I understand that this is a period of transition however if you don't understand the root cause of the problem how are you to improve operational efficiency and effectiveness. April 10, 2012 Finance Department p.43 Mr. Furfaro: Before you go any further let me ask you a question? Ms.Yadao: Sure. Mr. Furfaro: On establishing this consistency you need for payroll debt, have you been able to identify someone in the organization that the finance department should be considering to train and elevate? Have you identified with them? Ms.Yadao: Well we were working with the current team and being in the position that I could allow one individual the opportunity to shadow at that time she was the only resource I had to position her to shadow. However I was not able to obtain a new position to relieve her of her current duties to focus in that direction. Mr. Furfaro: Okay continue your presentation. Ms. Yadao: If I could get anything out of this H.R. Function and the goals is to set clear expectations and for example develop procedural guidance for the departments, set bench marks and timelines for certain deliverables. For example it would take 1 to 2 business days to review a reallocation of request or 2 two to four hours to review each submitted application. Any guidance provided is a lot better than none. Improvements we have many improvements, the accounting division continuously strives to improve operational effectiveness and efficiencies when feasible or attainable. In addition to cross training high priority is placed on improving the following areas. Here are opportunities and time and attendance versus outsource. In looking at our options we need the following to occur; Number one this is a multi step project, heavy human resource investment is needed upfront in the preliminary and planning stage. Through thorough understanding of internal and external needs in order to determine what road to take we need to spend a great deal of time in the planning and preliminary phase of this project. It would be irresponsible to decide without knowing all of the facts or all of the requirements. Number 2; development of the request for proposal, we will rely on our I.T. divisions assistance to help with the RFP. Number 3; payroll accountant will need to lead the project for accounting and he will not be able to lead and focus on this project until the payroll specialist and or newly hired accountant 3 is crossed trained to take on payroll closing. Second one update revised dated policies and procedures, it is embarrassing it is severely outdated and in dire need of revision. Review and update fix asset accounting software; note this is a high exposure area for me fixed assets is the largest assets on our books and the auditor spent a great deal of time reviewing this area and it has been consistently and area of audit findings. We do our best to review and flag potential findings however we don't have a dedicated team member to focus solely on fixed assets. Lastly; mass clean up of vendor files, vendor files and maintenance should be performed annually the last attempt to perform this task was fiscal year 2009. Again it is because we are short staffed and we don't have available resources, I have constraints, time is a constraint and resources are a constraint for my division. If you would be so kind as to refer to my budget and in looking at the positions listed accounting division has 10 positions in total however we have been operating with 8 team members since October 2011 due to retirement and down to 7 from the end of December 2011 to mid February 2012 due to an extended leave. Position 290 I believe this position was created and subsequently dollar funded in fiscal year 2009, however it was recently filled with an existing team member in February 2012. Position 205 vacant since October 2011 due to retirement who had 32 years in the county, recently we have hired and incumbent and she is scheduled to start on April 16. Position 100 we allocated from an SR-16 to SR-15 or accounting technician, we recruited county wide and we received a list of one of which two applied on April 5. We had received approval to hire to we will be engaging and bringing on board. April 10, 2012 Finance Department p.44 Ms. Yukimura: Which number was that? Ms. Yadao: Position 100. Ms. Yukimura: Okay thank you. Mr. Furfaro: How long did it take you to get that approval from personnel? Ms. Yadao: It first started off with a reallocation request that was in February the beginning of February and it took 3 weeks to get the reallocation approved and we were able to solicit Intra County. We interviewed yesterday Monday and we hope to get her on board ASAP. Mr. Furfaro: Okay. Mr. Rapozo: Real quick on that reallocation. Mr. Furfaro: Sure go ahead. Mr. Rapozo: You said it was reallocated down? Ms. Yadao: Yes position 100, it was originally an SR-16 and the title was accounting trainee. Mr. Furfaro: Okay that's what we're showing in the budget, what should it be? Ms. Yadao: Accounting technician. Mr. Rapozo: Accounting technician? Ms. Yadao: Yes and please keep in mind the reason why it still was showing as accounting trainee is because we did not receive approval until mid to the later part of February so it remained the same. So we will make note and correct that. Mr. Rapozo: Okay. Mr. Furfaro: Okay we have about 8 minutes here and I would like to hear the rest of your narrative here? Ms.Yadao: Okay the accounting division should be described as the heart of the county. Information is subsequently funneled through accounting and ultimately reflected in the financial statements. We have not grown team wise as other departments have continued to grow, we have not. In accounting we are responsible for all accounts payable, payroll, and payroll related taxes, applicable employee benefit payments to ERS, UTF and labor unions. We are responsible for accounts receivable, IRS-1099 reporting and ultimately financial reporting and the CAFR. Three members including myself produce all schedules in the CAFR and work with the external auditors to meet GFOA established deadlines to continue to receive the certificate of achievement of excellence in financial reporting. We wear many hats in accounting and we have very little downtime. We have many area's to approve upon, yes, we are aware, however without adequate April 10, 2012 Finance Department p.45 staffing this effort is short-lived nor realistic. Thinking ahead I have two team members that have 27-30 plus years in the county. As I mentioned earlier they have retained historical knowledge in their areas, I would prefer to take a proactive approach versus a reactive approach when dealing with these foreseen vacancies. All I'm asking from this Council is an investment in this accounting team. Thank you for your time. Mr. Furfaro: Let me ask you first of all have you talked to the administration about an investment? Ms. Yadao: Yes. Mr. Furfaro: And what have they said to you? I mean I got Mr. Rezentes here but you didn't paint a very pretty picture for me. Ms.Yadao: Well it's an ongoing struggle and I know that adding employees is not considered a good... Mr. Furfaro: Okay let me ask Mr. Rezentes I Guess Mr. Rezentes was pointing out some concerns her with payroll department and some succession planning and it's not being reflected in the budget. Mr. Rezentes: Yeah and I believe that was part of my presentation this morning as well and part of the reason why we are filling a dollar funded position that was not filled for quite some time. There will be and I'm not sure the exact words used but there will be corporate knowledge transfer and unfortunately the people under our payroll person will be green to that area and other's going to be a lot of training and knowledge transfer that will come about in the next few months. We have like they said two vacancies that we will have new actually bodies for that went unfilled for quite some time and we hope that in itself once trained up will provide some of the resources necessary to assist with the inevitable transition timing before our senior employee in the payroll function will retire. Mr. Furfaro: So when we have a situation like 2 years and kind of really looks like some dragging by the personnel department about recruitment and so forth. How do we get the urgency to them to understand? Mr. Rezentes: The time it took to hire the accountant position was I think in the six month kind of neighborhood and you're talking about that's more like a police recruit type of timeframe and it was unfortunate and I did speak more than one occasion to personnel to obtain status and unfortunately I was given various timelines and or dates and those you know went by on more than one occasion. Mr. Furfaro: Well I think this is very revealing, very revealing. Renee how long have you been with us now? Ms. Yadao: Almost 2 years. Mr. Furfaro: Two years and if I recall you came to us from Kamehameha Schools Bishop Estate, am I right? Ms. Yadao: Yes I did. April 10, 2012 Finance Department p.46 Mr. Chang: Thank you Wally. Ms. Yadao thank you very much and I want to say thank you, you were very courageous and I would say in listening to your testimony was very passionate and you were also here three and a half hours ago so it must have been nerve wrecking to finally get your opportunity to speak. I want to thank you for you in being courageous. Also there were a lot of things that you were reading out of your narrative that we don't have and I would love to have a copy that we can have for all of us so we can highlight and look. The points that you made I think is very alarming especially for the volume that you have. Earlier we we're talking about the great successes in the purchasing department about jumping leaps and bounds and we had an opportunity to acknowledge those people but why don't you take this opportunity to acknowledge those that are behind the scenes that you are representing right so you can thank them for hanging in there because I hope help is right around the corner and soon. Ms. Yadao: I hope so too. I have a total of eight right now including myself. Kenneth Villabrille, Central Payroll Accountant, Sherri Silva, Fiscal Control Analysts, Teresa Caires, Central Accounting Analyst, Donna Gabrial, Accountant 111, Doris Agbulos, Fiscal Specialists Trainee, Marisa Sierra, Payroll Specialists and Patrise Pancho, Accounting Technician. Mr. Furfaro: Okay you need to thank them on our behalf. Ms.Yadao: I will. Mr. Furfaro: That they've been working understaffed for awhile and I want to thank you for bringing this to our attention. At this point I would prefer not have any more narrative until we actually have an understanding of what is actually occurring there especially as it related to another department like personnel.Vice Chair. Ms.Yukimura: May we questions? Mr. Furfaro: Yes but again you're not going to resolve it just here until we get some facts as to what has happened. Ms.Yukimura: Well I mean it's obvious to me that there have been many constraints and many have emanated from the operations or the non operations of personnel department. What I want to be clear about is given where you are today what your plan is for addressing the succession issues in your department? I think I heard bits and pieces but you also pointed out very astutely that if there's to be work done on the software and design for the payroll and time and attendance that your payroll specialist... what is Kens position? Ms.Yadao: Central Payroll Accountant. Ms.Yukimura: Than he's going to need to be involved in that process and that's going to mean time away from closing payroll or whatever his normal operations are. So I'm not clear you're saying with the existing staff and with now all this upcoming changes which they've been late but they are going to happen in the next month or so. You will be able to function for this coming year?Is that what you're saying? Ms. Yadao: Well there is a learning curve and unfortunately in Government it will probably take a year honestly. With the additional addition of the accountant 111 coming on board on the sixteen of this month, she will be working in accounts payable/payroll to learn and get acclimated with the Government and our system. April 10, 2012 Finance Department p.47 Mr. Furfaro: So she's hired and just pending coming on board. Ms.Yadao: Yes so she's hired and her start date is April 16. Mr. Rezentes: The accounting technician was just approved, I think they just interviewed yesterday and the approval was obtained by the Mayor last night before I went home so that will be hopefully... Mr. Furfaro: So the Mayor has signed off on that? Mr. Rezentes: Yes and that's internal and actually someone was hired form another department so usually that's speeds up the process as well. Ms. Yukimura: So your accountant 111 is that position number 205? Ms. Yadao: Yes. Ms. Yukimura: And that's the one coming on board on April 16? Ms. Yadao: Right. Ms. Yukimura: And that's the person who will train to succeed Mr. Villabrille? Ms.Yadao: She will be part of it. I have the payroll specialist position that will also be crossed trained. Ms. Yukimura: Okay. Mr. Furfaro: To be crossed trained? Ms.Yukimura: Right and to the extent that Mr. Villabrille input and services will be needed in the development of the I.T. payroll system, do you feel there will be enough time for that this year too? Ms.Yadao: Yes so we will be working towards that goal of cross training and luckily I have the payroll specialist who has been in the system for awhile and she is knowledgeable in payroll. However the actual duties of closing payroll is where we don't have any involvement currently but we would like to reach that girl hopefully within the next 6 months. In the meantime we have had preliminary discussions of gathering information or how to perceive with the direction we want to go as far as time and attendance and or out sourcing. There is a need and we are aware and we would like to move forward with some form of time and attendance. Ms. Yukimura: Absolutely. Ms. Yadao: However it is a lengthily process and you need to obtain information upfront rather than later. Ms.Yukimura: I agree. April 10, 2012 Finance Department p.48 Mr. Furfaro: On that note can you yield the floor to Mr. Rapozo who has a question because we are desperate for our time today but I want you to know that I will personally pursue some quarries with the personnel department. Mr. Rapozo. Mr. Rapozo: Thank you and thank you for being here I appreciate that and I know it's tough, I could sense it and obviously a very difficult task to come up here and said what you said. Like I've always said we don't know what we don't know and often time's employees are not going to come to the council and share some pretty difficult thing s. I'm bothered quite a bit and the question is even with your filled positions the bottom line is do you have enough staff in your division to adequately service the county?You have I guess 8 or 10 right? Ms. Yadao: I have 10 currently, 8 are filled and we are working currently, two is scheduled to come on board hopefully within the next... well one is next week as the accountant 111 and the other one we just recently received approval so hopefully... Mr. Rezentes: The hope is by May that we will have ten. Mr. Rapozo: Well that personnel issue will be dealt with later because that's a common "theme" in so many stinking departments; I'm so disgusted about that department right now so I'm not even going there. My bigger concern is in your division, I know the Chair has asked if you brought this up with the administration. Do you feel you have adequate personnel in there? Because realizing today it's you folks that do the worksheets for the CAFR, it's you folks that do all these accounts payables and manage the special funds that I have seen. The hundred grand for the special condition three or whatever and that was in her budget last year, that's where it was and that came out of your budget now but it was in last year's. I know it's difficult with your boss and I don't know I guess Wally is your boss but now is your opportunity and you have already opened the door. We need to know because there's a lot of request for positions in this budget from all departments. There is some I believe should not be approved because I don't think the need is there but I need to know if there's an area of you division that needs help whether it's with accounting or payroll, do you believe you need some help? Ms. Yadao: In my honest opinion? Mr. Rapozo: Yes. Ms. Yadao: And as the division head? Mr. Rapozo: Yes. Ms. Yadao: No. Mr. Rapozo: You think you can do it? Ms.Yadao: I need at least 2 more bodies. Mr. Rapozo: In addition to the 10? Ms.Yadao: Yes. Mr. Furfaro: Okay well that discussion is between you and your boss to begin with. Our role is to make sure recruitment is on time, they understand the urgency for April 10, 2012 Finance Department p.49 what is in the budget and we need to get that people started. I think if you need to expand your staffing you need to have some dialog with Mr. Rezentes and with the Mayor. Ms.Yadao: Okay. Mr. Rapozo: And I guess my comment to that is really to you Wally. If they need the help please provide the help because I don't have a problem gathering the votes to put a position because it's still up to them to fill it or to make it happen. I'm just saying it sounds like your pretty sincere and passionate in your job and it affects me to listen to you have to come up and beg us and that shouldn't happen. I agree with the Chair it's a discussion that you need with the administration but if that falls on their fears you got my number so call me so we can see what we can do on this end. I think that is a very important function of this county what you folks III do. Mr. Furfaro: I would like to end your question there and recognize the Vice Chair one more time and point out to everybody, we are running further behind. Mr. Kualii did you have a question? Mr. Kualii: I thought we were going to lunch so I refrained from speaking. Mr. Furfaro: I will allow you to speak again after Council Vice Chair. Ms.Yukimura: Thank you and actually I think my questions ties to the previous discussion. You said that there is no one dedicated or focused on fixed assets? Since when is that situation or have we in the history of accounting before have one person focused.on fixed assets and somehow it got dropped? Or is this a new proposal and can you explain to us the importance and you started to but I want to know more and get a better understanding of this fix assets issue. Ms. Yadao: To clarify I have an accountant 111 who is responsible for fixed assets, however that is not her only job function as she does cash receipts and she is currently the P Card administrator for Accounting. Ideally I would want one soul person responsible for fixed assets. Ms.Yukimura: Is that general practice in accounting to have one person focused on it and what does that person do in terms of ... yeah what is the outcome or result of a person being focused on fixed assets? Mr. Furfaro: Before you answer that I want to remind Vice Chair that my message to have expanded beyond these vacancies, you first have to have a discussion with the administration. Ms. Yadao: Okay. Mr. Furfaro: And I think her question is worth answering how many counties actually having somebody committed to the fix asset issue but obviously that's a joint piece that comes over also with engineering. Because someone like Clint Saiki, he's manages these projects up until there complete and when there completed and the amenity is there and the asset has to be reported. I thoroughly agree but I want to caution the council that these kind of discussions have to happen with Wally first. April 10, 2012 Finance Department p.50 Ms.Yukimura: Chair thank you and I'm not saying that I'm going to propose a position or anything, I'm just trying to understand based on your report to us which said there's no one dedicated on fixed assets, and what the importance of that is and how accounting works on that issue of fixed assets. Ms. Yadao: Well not all the time we are aware before hand or before we receive an asset, before we purchase an asset. Sometimes we find out after the fact and we have to seek the information to get the asset on to our books so things slip through the cracks. We don't have a dedicated person watching all of the payables and all of the contract payments and understanding if it's a fixed asset that should be on our books. We don't have that and we do our best with what we have currently, however it is the county that has to defend the audit findings when there are fixed asset findings. There was one last year so to mitigate the risk of these assets slipping through the cracks and not getting on our books I would like the council to know. Mr. Furfaro: And we do know because that has been reported Wally over four years ago in the audit that there is not a way of sorting out the recording of fixed assets. We have made some improvements but I want you to know it is something that keeps showing up in the audit. Mr. Rezentes: And again part of the role of the accountant is the policing and the policing out the departments so that when an asset is ready to be placed on our fixed asset ledger that they in fact provide the accounting division with the appropriate documentation. Often times the slipping through the cracks occur and this person has to go and chase... Ms.Yukimura: Okay as the Chair has pointed out we've had this before a person I can see and thank you for explaining the importance of catching or registering the fixed asset properly documenting it and so forth.A person could be part of the solution and the other part of the solution might be forms that are created for the reporting of fixed assets or the training of the different departments in terms of how they identify the people in the different departments who make the purchases and have to report it. So any way it's a lot of different ways it could be addressed and I'm not jumping to the conclusion that we should give you a person right now but I'm trying to understand the issue. The Chair is right the discussion about additional personnel should be discussed with the Finance Director and the Mayor first thank you. Mr. Furfaro: Without noting those are new positions but the ones that are in there should be a bigger urgency to fill them for you so you have people that can come in the role and start training and so forth. Mr. Kualii you have the floor. Mr. Kualii: Thank you Mr. Chair. Aloha and Mahalo Renee and thank you for all your work and pleas thank your team for me. I especially think the accounting function and department division is the heart of an organization and you provide the life blood for the entire operations of the county. I have concerns about the positions and I hear what you're saying and I hope the administration will be responsive to you and your needs. The one item that was taken out to me is, what is this 475 thousand which is mentioned in two ways, it says vacation credit payout and allowance for retirement and attrition. Ms.Yadao: The 475 thousand represents separation employee separation who has earned vacation and are payable within the current fiscal year. Mr. Kualii: So employee separation, earned leaves and payables in the current fiscal year? April 10, 2012 Finance Department p.51 Ms.Yadao: Current fiscal year yes. Mr. Kualii: Okay thank you. Mr. Rezentes: That's county wide yeah not only within finance. Mr. Furfaro: No, no that's with eleven hundred and thirty eight employees. Mr. Rezentes: And it's a tough guess on how many employees leave and again that's one that often times if we can't have the departments fund we try to have the departments to fund but it's the catch all account when there is separation or retirement. Mr. Furfaro: Okay Renee we're going to end on this note but before we do I wanted to let you know that the couple of years that you've been with us and the few times I've been able to quarry you about information and so forth. I just want to compliment you on being very successful and very thorough in the material you got back to this office and it doesn't go unnoticed. I also want you to know that this recruitment process continues to concern me and I will look into it but thank you very much for today. Ms.Yadao: Thank you Chair. Mr. Furfaro: Okay we're going to take a break for an hour for the staff as well and we will be back at 1:45. There being no objections, the council recessed at 12:45 p.m. The Council reconvened at 1:45 p.m., and proceeded as follows: Mr. Furfaro: Aloha everyone we are back from recess and we're continuing in the finance area. I would like to make one more announcement today because we are going to focus on finance and bus transportation I am rescheduling liquor until 1:30 on April 20 as well. Sally welcome and you have the floor. SALLY MOTTA, DEPUTY DIRECTOR OF FINANCE: Good afternoon Council Chair and Councilmember's that are here. I am Sally Motta, the Deputy Director of Finance for our County and I am here to give you a presentation for the Real Property Assessment Division and also for Collections. I wanted to let you know that in our assessment department we have 15 employees that are full time right now. We have our front office and they are the ones that deal directly with the public and we have our back office who is mainly our appraisal staff who also does deal with the public and actually goes out and actually (inaudible) properties that are involved. The real property assessment divisions mission is to accurately and uniformly assess all real property within Kaua`i County. Maintain current ownership and tax payer address information and create and maintain up to date tax maps. Provides public service education, website data and administer numerous tax relief programs underscore, numerous tax relief programs. Our successes and achievements in with we're most proud of is the fact that we have used our integrated technology as we have a system called pictometry and also our GIS mapping which allows us to be able to visually see the properties from the air. It is a great help to us and it allows us to get a true picture of what we are assessing. We've also added a new commercial appraiser and a senior condominium specialist and they are helping us being able to identify these types of properties better. The challenges we face are number one as I said earlier are the number of tax relief programs that need to be taken care of and also because of April 10, 2012 Finance Department p.52 the recent changes we've made to the tax law with your help we have new deadlines that we are working towards. We also are sending out a survey which went out yesterday and finished up mailing today and I provided you with a copy of that and this is going to every property in our county that has a building on it. What we will be requesting them to provide us with that information because as you know coming up in the next tax year we're going to be assessing our properties based on use and this is going to be the way we will get that information. This form will also be provided at anytime that property transfers title so we're working out how we're going to manage that as far as mailing out and also working with the title companies to perhaps have those be given to purchasers in their closing documentation. One of the challenges that we have right now that is something that you've heard from other departments is the fact that the departments have different types of web connections and programs, so we are working also with I.T. as far as trying to find something that will be mutually useable by all our departments so we can get information from planning and they can get information from us. That's always a struggle. Correcting assessments has become a long and very difficult task, as tasks for owner occupancy tax payers are not necessarily tied to their current use an assess values. We are also having tax relief programs that are coming in to play now for the long term leases and these are all things that were approved in the last tax bill 920 that's we passed just recently. As far as improvements these new changes for fiscal year 2014 are moving all the dates and things that we have for filing for exemptions, whether it is for AG dedication or whatever it is and so we're having to spend a lot of time educating the public to make sure they don't miss any of these times where they could possibly file for an exemption that is due to them. Our staff is incredible, they have had goals that have been set for them that they have met that was a huge challenge including moving up the dates for the 2013 fiscal year and the 2014 year also and have met that. I am very impressed with the personnel that we do have in our department and I'm always very happy when I get e-mails from either your staff or from the public telling me just how helpful they really all. On the technology four front we have a new program called change finder enhancement that will allow us to have a even better view of fly over of properties so that we have a better sighting so we can see how the properties are looking. This is one way we can help on anything that is missing or when someone calls and says we don't really have a building there it's burnt down or whatever this just gives us another avenue. We had a recent reorganization of the real property assessment department and this has created improved coordination with administration of the front of the house, activities clerical mapping section as well as the back part of the house. It has made a huge difference and I think that when you have any kind of connection with them you've met with our staff and you can see they are there to help you. Upcoming initiatives we have and listed them here so I'm not going through them a lot I know we're running a little late and I know that you guys have had a chance to read them. We have right now one position that is dollar funded that has been approved to be filled and we are in the process of interviewing for that and we will be having that finalized quite shortly. Unfortunately because of these new changes in the questionnaire that we sent out we do need that person on board relatively quickly so we're very happy we will be able to have that person within the next 30 days. That should work right along with the time we expect to have those... Mr. Furfaro: Did you get that commitment from personnel? I mean you just gave praise to the idea you will have it in 30 days. Did they give you that commitment that they're going to identify and recruit for you in 30 days? Ms. Motta: Yes, yes, we are working with them right now. Mr. Furfaro: Okay. April 10, 2012 Finance Department p.53 Ms. Motta: In conclusion we anticipate a very challenging year as we face a served time constraint by going from a January 1 date of value to an October 1 date of value. This means there will be two assessments created and mailed out this calendar year. Not only will RPA be a task with advancement in the assessment cycle in several months but also there are additional legislative changes affecting the tax classification appeal process that must be considered. We only had a hundred and sixty eight appeals filed this year that is a wonderful low number and so we're very happy with that. Mr. Furfaro: Is that an indication that people are starting to see equity in their tax bill that you have so few appeals? Ms. Motta: I do not... Mr. Furfaro: Could that be one of the conclusions? Ms. Motta: That definitely could be one of the contributors we feel that it may be. And the new exemption deadlines may also play a big role in anticipating possible employee overtime needs so that's something we're having to review. RPA has been enhance by the additional qualified and eager staff, challenged by public education through the administration of tax relief programs inspired by the tools available through new technology provided and respected for the quality and equity of our annual evaluations in keeping with current market trends. We do a modeling form of assessment and I think that's another reason why the appeals are down. We are no longer assessing as a high we're assessing as an island going around. That's all for assessments, do you have any questions before we go over to collections? Mr. Furfaro: Let's see if there are members that have questions as it relates to the tax office and assessments. Mr. Rapozo: Sally thanks for being here and I just had a question as clarification on your upcoming initiatives number 2. You talked about administration of tax relief programs which is currently assigned to position P276 which is an appraiser one. What's the T is that temporary? Ms. Motta: What we have done with this is that we have an employee that is in the process of being transferred over in a reallocation and right now the appraiser the 276 is a contract position. We are converting that into a full civil service. Mr. Rapozo: So that position 276 will become 225? Ms. Motta: Well it will remain; it will still be 276 because the person that is... I got my chart right here let me look at that so I don't get my numbers mixed up on it. Mr. Rapozo: Your narrative says it's going to go currently assigned to T276, will finally be administered by a civil service position as a result of the reallocation from a tax clerk to a tax relief specialists clerk which is 225. So I see that your 225 here is still listed as a tax clerk. Ms. Motta: Okay the 276 is remaining in our department and that person is the one that is going to be assisting with all the paper work that's coming in with all the new exemptions that are coming out. The long term lease exemptions, and then we created the April 10, 2012 Finance Department p.54 225 which is the tax relief service technician and that person is moving from a tax clerk position which is the one that is now being filled. Mr. Rapozo: So that will be changed in the supplemental I assume because right now it's listed still as a tax clerk. Ms. Nakamura: Dollar funded? Mr. Rapozo: No, no it's a fully funded SR-12, no 225. Ms. Motta: 225 is a brand new position that used to be dollar funded. Mr. Rapozo: Okay and what's the story with 286? That's another dollar funded position. Ms. Motta: 226? Mr. Furfaro: 286. Ms. Motta: Oh 286, 286 is vacant and that the one that's being filled. Mr. Rapozo: But how you're going to fill it with only a dollar in the line? It's dollar funded on the chart on your budget. Ms. Motta: Okay we have right now we have 286 as a dollar funded tax clerk position that's being filled and 276 is a contract employee that is remaining a contract employee that is going to be taking over the responsibilities for the long term leases and those types of exemptions that are coming in. What's the other number you were asking about? Mr. Rapozo: Well the narrative says that 276 will be administered by a civil service position which would be 225 and I see 225 here and that's a tax clerk but you're saying that's going to be reallocated? So if it's going to be reallocated I'm assuming it's going to be reallocated up but the budget still listed it as a SR-12. I guess the confusing part for me is the T positions those are contract positions? Mr. Furfaro: Wally have you been following this discussion? Mr. Rezentes: Yes. Mr. Rapozo: And 286 is dollar funded so I don't know how you're going to fill 286 because you don't have the funding for it. Mr. Rezentes: Yeah we are going to update that to 30.036 dollars in the May submittal. We are like Sally mentioned we are in recruitment mode right now to hire for 286. Mr. Furfaro: Give us that dollar number again. Mr. Rezentes: 286. April 10, 2012 Finance Department p.55 Mr. Furfaro: 286. Mr. Rapozo: No the dollar number. Mr. Rezentes: 30.036 and the 225 will change from a tax clerk to a tax services technician SR-14 at 32.424. So those changes will be made in our May submittal request. Chair Furfaro: The "t"positions are just contract, is that what the "t" means? The t274, t276? Mr. Rezentes: Yes, contract. Mr. Rapozo: Contract and that is what... annual? It is like an annual contract? Mr. Rezentes: Yes. Mr. Rapozo: Are there any new positions in this Division here? Were there contract positions there last year? Mr. Rezentes: Yes. But the difference is that we are funding — we have one reallocation and we are funding a previously dollar funded position that was 286 and that (inaudible) assistance in the assessment, the clerical section. Chair Furfaro: But Wally, for the purposes of us trying to keep track, there is only one position that you do intend to fill in the May supplemental budget and it is reflecting the dollars of thirty thousand, zero, three, five? Mr. Rezentes: 036, correct. Chair Furfaro: 036. So, that is from a dollar line — that is the only change? Mr. Rezentes: And then 225 will go from 30036 to 32424. Chair Furfaro: So the difference is what we need to account for? Mr. Rezentes: Correct. Chair Furfaro: I am sorry to do this to you. Wally, one more time. Mr. Rezentes: 32424. Mr. Chang: Can you do us a favor because where everybody's writing, when it gets cleaned up, can you give us a clean copy? Chair Furfaro: I just want to make a comment here Mr. Chang, the reason I am keeping tabs on these are basically we know what the pluses and minuses might be before we see the resubmittal, that is what I am trying to keep track of. So far, I have some tracking down that I want to make sure that we pick up on when we do our pluses and minuses. April 10, 2012 Finance Department p.56 Mr. Chang: I understand, yes. Mr. Rezentes: Could we just email it to Scott. Mr. Rapozo: Wally, if you can do that, we should probably send over a memorandum over to the Administration if there are... this had to have been known because your narrative talks about it. Your narrative talks about 286 being filled but for some reason... Mr. Rezentes: We missed it. Mr. Rapozo: Okay. Thank you. Ms. Motta: Any additional questions? Mr. Rezentes: We are going to call them when... Chair Furfaro: Was that Elderly Affairs? Mr. Rezentes: We are going to be another half hour or so... Chair Furfaro: No, no... we told them that they are rescheduled till April 20. Mr. Rapozo: It is difficult doing it this way. Chair Furfaro: I do not disagree with you. Mr. Rapozo: And rather wait for the May submittal, if we can send over a request to all the department heads if there is any stuff that was missed... Mr. Rezentes: Clean up. Mr. Rapozo: Yes because... the public sees the budget at this amount and in actuality it is more because these positions are not being identified in this submittal although we know it is going to be there. I am not sure why and this is not the first one and I am concerned. Mr. Rezentes: I understand. Mr. Rapozo: We want to be able to work off an accurate budget and it is frustrating. Chair Furfaro: I have a message for Mr. Barreira when he comes back into the room. Because I should not be keeping tabs over here that has making these kinds of adjustments right now. I will have a message for him at my request. He must have heard me. May I ask Ernie, we are very concerned that we have line items here that are not lining up to the numbers in the spread sheets. For example, we just went through these two positions that are in the tax office. One is number 286 of thirty thousand 036 and then we have a net variance of about seven thousand dollars for a position that said we had a certain amount of amount budgeted but then the position is being upgraded. I am over here—I am now keeping track of what does not match up with the narrative and so it is strongly suggested that to date we get a single email that makes mention of fil April 10, 2012 Finance Department p.57 these things that we agreed that are showing up in the operating narrative but are not showing up on the budgeted dollar line. If you can do that for all, it would be much appreciated. Mr. Barreira: Yes, sir. Mr. Chang: Chairman, what you might also want to request is maybe for the department heads coming tomorrow or the day after the following week, they just might want to recheck their numbers before they make their presentation. Chair Furfaro: Yes and the business I am in — you check your numbers before they submit it. Mr. Chang: Yes. Chair Furfaro: They did not do it. Mr. Chang: So, this will give them some time to... Chair Furfaro: Now, we have them wrestling with just getting back to us in forty-eight hours but what I am saying is I am directing Mr. Barreira to make that a single email to us and if I was a department head listening to this discussion right now, tomorrow morning, I would be talking to Mr. Barreira to clean up my narrative to match my numbers. I just want one piece. I do not want to load of amendments coming in from various department heads. If you wrote something, say it so and then show the financial piece that reflects that and so far we have gone three days and we caught several pieces that narrative does not match with dollars. I would like you to be the funnel. Sally, you have the floor. Ms. Motta: Does anybody have any questions? Ms.Yukimura: I do not have a question but I just want to thank you and your division because I know you have been under pressure with all the different changes Y p c anges and just the effort to keep up with current —keeping current assessments current. All the tax changes, all the public education, I know it has been a lot of work and we appreciate it. Ms. Motta: I appreciate the help that you gave them in order to make it happen. Chair Furfaro: We all function on the word kokua, so if you can follow up with Ernie on those two items, we would appreciate the kokua. Ms. Nakamura: Sally, are you also... did you also go over Real Property Collections, or is that a different? Ms. Motta: That is next. Ms. Nakamura: Okay, I have some questions relating... Chair Furfaro: And Sally, I hope when you go there, you will show us a little bit of an indication of where we are going with that bad debt, uncollected taxes? Ms. Motta: I have got that here. April 10, 2012 Finance Department p.58 Chair Furfaro: Okay, I want to make sure we got that. Is there any further questions before we go to the next level? Ms.Yukimura: On the question about the reason for the low number of appeals, is it not possibly true because the assessments have been going down or staying the same? I mean people will file appeals if they are going up. Ms. Motta: We are still getting appeals from people that think even when the values are going down, they are not going down far enough or fast enough. Ms. Yukimura: They are the real diehards, maybe, I do not know but certainly... Chair Furfaro: I need to make sure you understood my comment because the values are going down, the assessments and the crossing point of the actual tax bill is starting to be more acceptable. Ms. Yukimura: Yes. That is they are getting closer to the cap, right? Chair Furfaro: Yes. It could be contributing why people are dropping out of the cap. Ms. Yukimura: So, it is to summarize what the Chair says, it is not the assessment but the taxes that are getting—it is the assessed value but the cap is on taxes not on assessed value, right? Ms. Motta: The tax rate is on the assessed value. Ms. Yukimura: Okay. But the notices from which there is an appeal are the assessed value, so people will compare their last year assessed value to this year assessed value. Ms. Motta: That is one way, yes. Chair Furfaro: In a market that is going down. We have gone from nineteen billion dollar worth of value to about fifteen billion dollars worth of value. Ms. Yukimura: But with the cap being converted to a CPI when they get their tax bill then it could go up in the next cycle. Ms. Motta: If they are already under the PHU cap, it will be limited to going up to the amount of what the CPUI is. Ms. Yukimura: Right but it still go higher than what the two percent cap used to be? Ms. Motta: Correct. Ms. Yukimura: Because it is three point seven. • Ms. Motta: There is a new formula, correct. April 10, 2012 Finance Department p.59 Mr. Kuali`i: On this other services, the two hundred and two thousand, so that is remaining the same and I see... Ms. Motta: Where are you? Mr. Kuali`i: On 53. Other services, the two hundred and two thousand staying the same from last year to this year, are those two items the tax mapping and the property tax program and maintenance, are those... do we have the contract, the multiyear contract that we pay a contractor to provide those services? Ms. Motta: Those are four payment of the contracts that we have with our vendors, definitely for those services. Mr. Kuali`i: And it is going forward how many years? Ms. Motta: I am not sure how long... we are kind of tied d into them. It is one of those where you keep trying to find other ways but we are not able to yet because of the amount of expense of expense to start up with something. At this point, we are not in a financial position where we feel that we can really go out and look at million of dollars in new programs. kkwe can really go out and Iook at million of dollars in new programs. Mr. Kuali`i: Right. I wonder if the being tied to them means that they have the upper hand in the long run and if this contract is just for one more year, than the year after that they can come back to us and double the contract. Ms. Motta: Well the contract is on a program that we have at this time and for us to make changes, it means a new program and that is what the expenses the first year, because you have to pay for the licensing and everything else for that. Mr. Kuali`i: But you do not know how long we are tied in right now? Ms. Motta: I do not know that we—that there is a tie. Mr. Kuali`i: Maybe I can find out later. Thank you. Chair Furfaro: Just to reiterate where we are at—how many parts to your Real Property Tax that you have because we have Drivers License which will be relatively a few minutes, we have Risk Management, we have Treasury, IT—how many sections do you have in Real Property?After collections? Ms. Motta: No, not for Real Property. Chair Furfaro: After collections? Ms. Motta: Correct. Chair Furfaro: Okay. If we can just word out with Transportation Department, we might be late but they are staying on for today. Sally, thank you for that public announcement here. Now, let us talk about Collections. April 10, 2012 Finance Department p.60 Ms. Motta: The mission for the Real Property Tax Collection Department is to provide,prudent, financial management and services to the people of Kaua`i and to the Departments and Agencies of the County that we service. The Real Property Tax collection function administers the tax collection system and assist the custodial responsibility for all real property records. This is another department that runs extremely smoothly, they take their positions very seriously and they do an outstanding job. I also receive many emails from happy people that have dealt with the collections department that when you ask somebody to pay a bill, it is not always the easiest thing to have them smile, so they are very good at that. Their primary goal is to do the billing, collect on the accounts for the real property taxes and special assessments that are effective with our real property tax payments. They have the responsibility that along with our real property taxes that come directly to the County for our general fund, they also collect for the residential refuse collection which is our solid waste for the homeowners, garbage as they like to call it and also for Kukui`ula Community facility district tax which is the district that we are in right now with finalizing. Upcoming issues that they have is that they have — they needed to make changes on how we collect the funds. The funds that do come in for solid waste can be transferred into another account that is within the County. The funds that are going to be collected with the Kukui`ula are going to be sent to a trustee, so that is going to be something new that we are setting up. They also asked us to consider which will require a Charter amendment is to raise the fee that is charged for none sufficient funds on a check. Right now, we collect seven dollars and fifty cents and the bank charges us twenty-five. Chair Furfaro: So, how is Finance doing it? Are you going to introduce something to the Charter Review Committee? Ms. Motta: This just came to us when we started talking about the budgets from the department and it has been thrown around a bit and I believe that Cost Control is looking at it also, so we are trying to coordinate with them to make sure that... Chair Furfaro: We only have until June 1 to have it go through the process. Ms. Motta: Okay. Chair Furfaro: Either it goes from you people directly to the Charter Review Commission or you ask us to do it by request, we have two public hearings and we get it turned around. After April 15, we are cutting it very close. It is June 1—the deadline. Mr. Rapozo: Is it a Charter amendment or just a code amendment. I think it is just an amendment of our code. Ms. Motta: I am looking at this again and I think it says Chapter 6 of the code. Mr. Rapozo: I do not believe the Charter. And the staff can note that and we can get that ball rolling already. Ms. Motta: Yes, I saw Chapter and read Charter. So, that is my eye balls. Chair Furfaro: You are forgiven but send us a memorandum, if you want us to do it. April 10, 2012 Finance Department p.61 Ms. Motta: Okay. Chair Furfaro: And staff can get started on that. Sally, you can go ahead and continue. Ms. Motta: Okay. We are holding a foreclosure sale this year for five delinquent properties that are only owed for the real property taxes on them and one that is part of the Kukui`ula SFT property. Delinquencies are high, we hate to say but a lot of that is because of the economy. The figures that we have down here as of March 31 which was the latest records that we have are delinquency rate is five point four, three. We have outstanding taxes currently of four million seven hundred forty-nine thousand, six hundred and six dollars and forty-eight cents and all of those are delinquent taxes. Chair Furfaro: Is that the total? Ms. Motta: That is the total for all delinquent. Chair Furfaro: How is that compared to the previous year? Ms. Motta: It is higher. In 2011 it was three million three hundred forty-six thousand thirty-six dollars and thirty-three cents. Chair Furfaro: So, it is about seven hundred thousand and higher... no, it is about a million four higher? Ms. Motta: Correct. Chair Furfaro: Okay, let me ask you, what are we talking about with the next step as far as dealing with some notices and so forth with the legal department? Ms. Motta: What we will find is that with the March 31 date, there is a very good possibility that we will be getting more payments in within the next month or two. Chair Furfaro: I was not saying — send them to Court. I am saying what are we doing to talk with the Attorney's Office right now about a strategy on the delinquencies or if we had foreclosures on property, does the Housing department plan to buy those, what are the strategies? What is going on so far, Sally? Ms. Motta: At this particular point, the normal procedure is we do not even start foreclosure until properties are about three year delinquent. Chair Furfaro: That might be your past practice but are we talking to the County Attorney's? You are not aware of this but I can tell you what I have gone through in ten years about delinquent sewer fees, I got the same story, we do not do it until year five... and you will dig into it and you will find out there is nothing that sets up that guideline. That was like —oh let us give chance, I want to know have you started some discussion with the County Attorney's Office to come up with a strategy? That strategy might be... and in year one we do this? Just — start the dialog. Ms. Motta: At this point, we have not started communication with the... April 10, 2012 Finance Department p.62 Chair Furfaro: May I request that you come up with a plan and share it with us at a later date? Ms. Motta: Yes. Chair Furfaro: Mr. Rapozo, I am actually going to turn the meeting over to you, I have a 2:30 booking and I really wanted to get that question out and then if I can share with you - you have Department of Motor Vehicles and then you have Drivers License, Risk Management and IT, and the Treasury last. I think some of those are only a few minutes to review. You have the meeting Mr. Rapozo. Mr. Rapozo: The delinquency, Sally, that is taxes? Ms. Motta: Correct. Mr. Rapozo: And then the foreclosure obviously is foreclosures... so, when someone has a delinquency, do we put a tax lien on them? Ms. Motta: Yes, we put a lien on the property (inaudible). Mr. Rapozo: So, the four point seven million dollars, all of those property owners have lien on their properties right now? Ms. Motta: No. If you look down below on page twenty-two which shows what is the current fiscal year, the bottom figure for the 2010-2011 and prior is two million, one, eighty-five, eight, eighty-one, ninety-two—those are the ones that will be having a lien filed against them. Mr. Rapozo: It has not been done yet? Ms. Motta: No. We normally would not do that until July 1 which is the start on the next tax year. Mr. Rapozo: Okay. But some of these are prior, right? Some of these are pre-2011 fiscal year 2010-2011? Ms. Motta: Correct. Some of them as far back as five years. Mr. Rapozo: Okay. Did liens been placed on those properties. Ms. Motta: Those are the ones we are foreclosing on right now. Mr. Rapozo: Okay. Ms. Nakamura: Would it be possible Sally for us to get a better understanding of this picture to see how a summary of the outstanding none payments? Ms. Motta: I have a sheet here for the last... from the 2007-2008 tax year—I would be happy to share it with you. April 10, 2012 Finance Department p.63 Ms. Nakamura: That would be good to see and to understand. Based on that— I think that is what the Chair is saying—what is the strategy? If it goes back five years, how are you dealing with those as opposed to more recent? Ms. Motta: This is the first year there has been such a large increase and of course with staffing talking about doing foreclosures means more staff too. It is a very tedious position that requires a lot of man hours. We have one person that spends at least a quarter to a half of her time just preparing the letters that need to go out, ordering the title reports that need to be done, the litigation guarantees and keeping track of that. When you multiple that by how many you may be talking about then it is... there is expenses involved. Ms. Nakamura: What has been the practice in terms of actually collecting all these funds? Ms. Motta: Well, what we normally find is that after they are delinquent for about a year or say and I am just giving you a broad deadline is that we will send a letter out and say we have the right and we will file a lien against your property. A lot of times it is sufficient that people say "they are serious" then we will receive payment. Sometimes, it will be a case where the bill is actually not getting to somebody and somebody will see... will let us know — they will call us up and say I am sorry I have not had my bill, when is my taxes due? And that will be another way... but after we send that first letter out, we then follow up and with a second letter about sixty days later that is much more serious and then we will end up getting payments. We may get phone calls from people asking if we will make payment arrangements and try to work on them on a case by case basis. Ms. Nakamura: So given that there are so much outstanding debt, should we not be putting more man hours into this position so that we can collect. Knowing that it does take a lot of time and paper work and coordination with the County Attorney's Office. Ms. Motta: We normally have done foreclosures once a year and we have talked about moving it up to twice a year and starting it at an earlier time. Ms. Nakamura: In your opinion is there a need for additional manpower or person power to get the job done because we are looking at a large number here? Ms. Motta: Fortunately to is that the collection department was short two employees for almost six months. One of the two positions was just filled on Monday and the other positions is being filled on the 16. So we will have the manpower that we have been short before. So that will be a big help and this is just have been a matter of getting the department to understand what our priorities are. Ms. Nakamura: Thank you. Mr. Chang: You were short two positions? Ms. Motta: Correct. Mr. Chang: Was that two retirement? Ms. Motta: One of them was a position where employee had left and we needed to fill it and the other one was a retransferred a contract employee position into a full April 10, 2012 Finance Department p.64 time position and that is the one that is now being filled. So, we no longer have contracted employees in the collection department, we have full employees. Mr. Chang: And were they employed on a timely matter? Do you feel that you got your work help in a timely manner from the request? Ms. Motta: Pretty much. Mr. Rapozo: The question is how long did it take to fill the position, that is the right question because her satisfaction is a lot different than ours. Was it six months vacant? Ms. Motta: One of them was. Mr. Rapozo: What was the other timeframe? Ms. Motta: No, the other one was when we were transferring a position that was a contract, so, it was an entirely different situation. Mr. Rapozo: Thank you. Personnel, is lucky that I am not here Thursday afternoon. Mr. Kuali`i: I just think that if you could talk in specifics on page 55, there is six positions listed, so which of that positions are the two or is it different from that? You said one position was just filled and another position is just about to be filled? Ms. Motta: Right, but we do not have contract... Mr. Kuali`i: Oh, both of them are contract positions? The two that you were just talking about? Ms. Motta: I am not sure which number it was to be honest. It would be either 275 or 223. Mr. Kuali`i: Okay. Ms. Yukimura: Sally, do you have in writing the procedures for following up on delinquencies? Ms. Motta: The only in writing procedure that we have is the Chapter 5A. Ms.Yukimura: I am not familiar with that, how detailed is that? After so many months... or you file a lien at the end of the fiscal year and you go for foreclosure after so many years. Ms. Motta: Correct. It gives you the furthest away date on it and that has been the dates that have always been used by the Department. Ms. Yukimura: And what is the average... you have like every year the new delinquencies, the rate of correcting those delinquencies and the outstanding delinquencies that continue into the next year. April 10, 2012 Finance Department p.65 Ms. Motta: I do not have the numbers in front of me. I can find out if Michelle can provide those. Ms. Yukimura: That would be interesting to see. You said that this year in particular was the highest level of delinquencies in a long time and it is a little over half of the total outstanding delinquencies which mean that the rest were accumulation of prior years? Ms. Motta: Yes. Ms. Yukimura: I am just trying to get a sense of the nature of the delinquencies. What is the average outstanding delinquency year to year? Ms. Motta: Back in 2007-08 the delinquency was 2.5 million. 08- 09 was 3.9. 09-10 was... Ms. Yukimura: The totals... those were totals? Ms. Motta: Yes. Ms. Yukimura: Not just the new delinquencies for the year. Ms. Motta: Now for the year itself, current year outstanding for 2007 — it was 1.7. 2008-2009 it was 2.3. 2009-2010 was 2.1. 2010-2011 was 1.7 and then 2011 was 2.5. So, the per year is worst and then it is an accumulation of the previous ones that had still not yet been paid. Ms. Yukimura: I am just thinking you judge how do we judge the severity of the outstanding delinquencies and what would be your goal for clearing those delinquencies? Ms. Motta: The other way of looking at it too is that for every foreclosure we do, there is potential that we are taking a home away from somebody and so that is not something that we take likely. So, if you have somebody that is delinquent like five thousand dollars on their taxes for the last two years, if we foreclosed on them, they lose their home. It is a fine line between judging on when you are going to do a foreclosure knowing the ramifications. The departments feelings mainly in the past has always been that not to end up foreclosing against somebody and have them lose their home unless there was another way around that. Ms.Yukimura: Unless it might be a second home? Ms. Motta: Well, that is a possibly too. Ms.Yukimura: I can see where your strategy would be to prevent foreclosures therefore to settle on an arrangement for payment or... and that is why I was courteous on what your procedures are for following up on delinquencies or for clearly delinquencies in terms of how you negotiate, who is negotiating, what kinds of strategies you have? Ms. Motta: The only option we have for negotiating is to make payments for a period of time. We do not have the option of expecting a dollar. April 10, 2012 Finance Department p.66 Ms.Yukimura: And when you settle on those arrangements then they are no longer included in the delinquencies listed, is that correct? Mr. Rapozo: Hang on, I am going to have to stop you. We have to take a tape change. There being no objections, the Council recessed at 2:43 p.m. The Council reconvened at 2:46 p.m., and proceeded as follows: Ms.Yukimura: Maybe, you can guide us. Oh that's helpful the rate of delinquent at the bottom. Ms. Motta: Correct, that's the percentage. Ms.Yukimura: Percentage of total tax base that is delinquent? Mr. Rapozo: Yes. Ms. Yukimura: And current outstanding balance, current year outstanding tax balance beginning and current outstanding end so that would be the delinquency. Ms. Motta: Actually the current year outstanding balance beginning of fiscal year, so there is no delinquencies in that amount. Ms.Yukimura: That's just all the taxes owed. Ms. Motta: Right. Ms. Yukimura: That's the certified real property tax basically. Ms. Motta: Correct. Ms. Yukimura: And then all the collections and then that shows what is left. Ms. Motta: Correct. Ms. Yukimura: And that's what left and that is what's delinquency. Ms. Motta: Correct. Ms. Yukimura: Okay. { Ms. Motta: But you can see by looking under the last column at the bottom you can see how much we have been collecting each and every month. You can always tell that August and February are the two months that we collect the most in taxes because those are the due dates. Ms.Yukimura: So the grand total is really the bottom the second horizontal line that is the end of the year delinquency so to speak. ii April 10, 2012 Finance Department p.67 Ms. Motta: Correct. Ms. Yukimura: And I've already given you the questions that we would like additional data on so to give us a better idea of the nature of these delinquencies how big the average delinquency is, is it on a second home or a primary home? What else did we ask. Well this gives us every year what ... well actually this doesn't give us what the new delinquencies are because the grand total include all the previous years delinquencies? Ms. Motta: Yes it does. Ms.Yukimura: Okay so what is the amount of delinquencies each year? Mr. Rapozo: We'll put the questions to paper, Sally so you do not have to ... you can respond. Ms. Motta: Okay. Mr. Rapozo: As soon as you can. I won't put the 48 hour lock down rule because... Ms. Motta: It will be tomorrow. Mr. Rapozo: Tomorrow, okay you have 48 hours then. Ms.Yukimura: That's really good with responses. Thank you Sally. Mr. Rapozo: Okay, thank you Sally. Sally has to go give blood so. I bet every Department Head will come up now and say hey I got to go give blood okay. They tell me next up is DMV. Are you here for DMV? I do not really care I'm just saying this is what... Ms.Yukimura: The treasure has to be here for the DMV right? Mr. Rapozo: King Jay said DMV, Drivers License, Risk Management and IT, but if you are here we'll do IT. Ms.Yukimura: Unless the Chair wanted to be here for IT. BRANDON RAINS: He mentioned that he might not be here. Mr. Rapozo: Yeah I think he's gone for the day so go ahead why do not you start with your overhead Brandon and then we can ask questions after your complete presentation. Mr. Raines: Well good afternoon Councilmembers and for the record Brandon Raines, IT Manager. The first part of my presentation will cover the Information Technology Division section and the Finance budget report and after that I'll move to a high level CIP review addressing the products that are relevant to our Division and then I'll go over some staffing related budget request. Documentation on the CIP product, summary, and staff was provided as a supplement but I believe they incorporate it into the main budget directly after the standard presentation. Finally, I'm going to present some additional information in order to address the Council's request from yesterday afternoon about electronic plan review. April 10, 2012 Finance Department p.68 Ms. Yukimura: Thank you. Mr. Raines: Within the information technology division or IT our mission is to provide the Mayor's Office, County Agencies, and County Council with Information Technology services which enable them to serve the public in a cost effective and efficient manner. The primary g oal of our division is to provide quality customer omer service and expert technical services and empower County Employees through the availability of accessible and useful information as well as the use of automated systems that improve their productivity. This goal is complimented by several key objectives. 1) To provide County employees with easily accessible technical support and timely responses by a central helpdesk function. 2) Maintain and enhance the County's technical infrastructure to ensure reliable efficient and secure operations. 3) Assist County agencies with the procurement and implementation of new systems that will increase our operational efficiencies as well as improve the services available to our citizens and lastly 4) Recommend solutions and strategies that will leverage the power of technology to address County wide need. The last year has been a very busy time for IT and despite some of our limited resources we have been able to accomplish much and that is really due to the outstanding efforts of our current IT team members. Just some highlights of our more recent successes and achievements. I'd like to go through those. First we negotiated contract and managed the project implementation for upgrading our core components of our 800 mega hertz radio system. As part of that we have formed a cross agency team including IT, Fire, Police, and Civil Defense to help guide the project and insure appropriate representation from all key stake holders. This is really ... this project is phase one of a multi phase project to upgrade our Critical Public Safety Communications Infrastructure. That upgrade will result in a modern architecture that compliant with latest inter operability standards for supporting Counties emergency operations. This phase 1 this project that we are currently working on is on schedule for completion in summer of 2012, so this coming summer with subsequent phases to follow based upon available funding. Next we provide extensive technical support for the implementation of our next generation of computer CAD system from Vision Air. The new CAD system provides advanced public safety capabilities for dispatch operations and replaces the out dated largely unsupported system. We partnered with KPD to bring the system live in November of 2011 and completing the largest and most complex County system roll out in many years. Strong leadership and support from KDP in the project management role were key to achieving success on this project and we continue to roll out mobile data terminals and the new records management system that is part of Vision Air by the end of 2012. We worked with the Purchasing division, Ernie mentioned some of this earlier but we worked with them to implement an internet based solicitation as an in arm step toward complete electronic procurement solution. We also helped coordinate the research efforts to evaluate leading vendors of Government Base Electronic procurement system and had identified a hosted low cost solution that has targeted for implementation later this year. Once implemented that full eight procurement system will stream line purchasing activities across the county. We assisted the County and Purchasing Divisions with implementing a new intergraded P-Card module to stream line the purchase of other commodities and save operational dollars by reducing overhead. We initiated a pilot with selective departments and establish plans for roll out by the end of this year. We completed procurement for the new integrated systems to support electronic plan intake review and processing. We will talk about this later. Initiated the internal project planning activities and start implementation with the selected vendor in early 2012. This system would deliver all our (inaudible) plans allow citizens to submit plans electronically by the internet automate internal and external workloads associated with plan review and approval and provide efficient email t�t April 10, 2012 Finance Department p.69 communications notifications between County plan reviewers and citizens. We also implemented a new system to stream line support activities provided by the IT help desk function. Internal project reviews determined that the originally selected vendor solution involved too much cost in over head for future needs. As a result we researched and identified a new vendor that provided increased capabilities with less cost as well as less overhead. We redefined 3 open IT positions in order aline with future priorities and initiatives as well as to provide the key skill sets required for effectively managing operations going forward. With these changes the newly defined positions will allow us to start transforming the IT Division and begin to address our issues with staff to work ratio challenges without increasing budget and head count. Working closely with Personnel to facilitate these changes initiate the associate recruiting efforts. We continue our efforts to further (inaudible) capabilities across the County and work with Real Property Assessment on a pilot project to establish neighborhood codes that would provide greater efficiencies. Assist KPD dispatch with the implementation of new 911 mapping software and systems as part of the divisions of the air CAD roll out. Coordinate with Civil Defense and other agencies to improve citizen's safety through development of graphical tools identifying inundation evacuation zones for tsunami as well as reservoir breaches. We also partnered with various departments to provide technical input and guidance for implementing multiple vendor hosted solutions including online recruiting for Personnel that is NeoGov. Legislative tracking for Boards and Commission that was through a company called Jupiter Technology associated with our lobbyist. And computer based employee education for risk management. Most of us are getting emails about that through the safety logic. All these projects are excellent examples of leverage the technology and vendor infrastructure assets to deliver key services. This approach accelerates implementation time and reduce upfront cost and allow IT to do more with less in terms of meet automation needs across the County while minimizing additional demands on our limited resources. All three of those are good examples of actually using what people called cloud base technology. To be sure we face some serious challenges as we move ahead and the most significant these include managing change required to move away from paper based processes and implement next generation solutions can be very difficult due to a general resistance to change. While IT can help lead the way we will require strong support from effective agencies and stakeholders in order to be successful. A good example of that success is Ernie Berreira and his leadership in Purchasing. Without that leadership we wouldn't have been able to make all that progress this year. The adoption of new technologies required to move the County forward demands additional IT efforts, research, training and support. Balancing this with maintenance of current infrastructure and systems required for daily operations makes it difficult to provide quality customer service. And lastly in terms of challenges, recruiting for unstaffed IT positions was delayed due to a combination of internal evaluation required for an effective IT management transition. That was basically me taking my time to survey the lay of the land and identify what we have and what we need going forward in terms of new projects. As well as issues involving one employee's extended leave, these barriers have since been addressed but the unfilled IT positions have delayed progress on key issues while overloading current staff with additional responsibilities, time to recruit of qualified candidates into these redefined positions will be key to resolve the current situation. From a purely operational perspective there are several key improvements that we will focus on in the coming year for IT as a Division. We are going to rework and optimize IT staff workout load, allocation to take advantage of our additional capacity that we are going to get by the redefined positions being filled with new high level employees. We are going look to create flexible service contracts with key vendors to supplement our limited IT resources on an as needed bases allowing IT to address workloads spikes as well as evolving needs for specialized skill that we do not have in house. Basically there variable workloads rather than hiring more headcount we are going to try to establish better relationships with our existing vendors. We are going to be implementing a new methodology for IT project planning and tracking that will provide standardized reporting, increase collaboration, and improve communications. And finally develop a comprehensive set of standard operating procedures for the Division to improve how we do business within the County. Perhaps the most exciting part of being in it is the opportunity to work on upcoming initiatives that will have April 10, 2012 Finance Department p.70 a major impact on the county. The following is overview of the initiatives that we are going to be focusing on in the coming year. Infrastructure improvement - we're looking to establish wireless capabilities and mobile computing solutions and increased performance to support the next generation of applications and technologies. We plan to continue lever aning the cloud anywhere possible and provide information and services both internally for the county operations as well as for our citizens. Electronic plan review - again, more to come on this. Just a summary right here. Partnering with public works and departments and procure the system for electronic review. Provide technical support and administration to facility these activities. We are leveraging vendor hosting options to do this as well. We will complete the initial system pilots by the end of this here and have the roll out by summer of 2013. Countywide document imagining - a lot has been said about this particular one. After some - a lot of research and what we have done we are redoing this based on lessons from phase one and best practices and ensure greater success going forward. We plan to require candidate departments do all the documentation and prior to contracting services and document the backlog. Using them to do the most recent first and working back in time and eliminating expenditures for older documentation in which some cases may not not need to be maintain, and we need to work with the department and the hard document and being scanned and that is one of the benefits of doing the scanning in the first place. We plan to research and implement a system that has these forms and workable routing and electronic signatures. This is mostly for internal operations, while we will make progress about the form filled documents and that is wonderful, but the holy grail is that really the documents — they are routed around to us. You can see exactly where the document is, who is waiting to sign it. They can sign it on line without scanning and email it around and let is get rid the manila envelopes and paper form that we continue to push around the County. Finally meeting management - maybe not finally but I am getting there. Meeting management systems. We plan resolution and eliminating current base processes. Increasing information access transparency and stream line communications. We want to identify the options and costs with expected return on investment as part of a formal recommendation. What this is really kind of trying to change the paradigm in how we communicate. A good example of that is how the administration communicates with Council with things to go on the agenda. If we had a system and out by email and no paper and we could put the item requests in the system and create from those and generate the agenda. Put notes in. Automatic generate the minutes, these types of things. We are going to be looking at opportunities with our partner and has a suite of solutions and one is the "a legislate" tool and ipad application and Council got the agenda out on that piece and scanned versions of the supported documentation. Part of this is this application can be on the a pad and allow Councilmembers to synchronize with the website and have it on the local ipad and make questions or comments locally and have that in front of them in front of Council meetings instead of the giant binders and move towards that and not use the paper. It's a future thing but I wanted to mention it because it's pretty exciting that we're moving in that direction. IT strategic planning - this is something I wish I got to in my first year but plan more this year. We are reviewing all systems and infrastructure across the county and a road map for infrastructure, application services, reporting and technology. We need to identify the required funding of staffing implications to execute this plan and ultilize resources across the State and external efforts across the jurisdiction and aligning with the County is appropriate. It is a tall order but I think I will a lot more to talk about in terms of next year and requests to try to move the county forward. Finally community outreach for Holoholo 2020. This was listed as a customer service kiosk and based on the internal discussion a discussion was done to rethink this and the community and the process. Our goal is identify priorities for technology and take action where possible. This may take a public kiosk function or the information that we gather, the feedback remembering how to best do this is a exercise and greatly simplified and during the fiscal times. Rather than assuming we know what they want we plan to gather the public's input on technology based services that are most important to our residents and how they interact with county government and other things that serve the community at large. That will collected and analyzed and published back to the community and the key items identified and in a timely fashion and create positive feedback with April 10, 2012 Finance Department p.71 those participated and help to increase overall transparency and it would be on the county website and available at County premises and possibly public libraries. We will work with the Mayor's Office and increase participation and it's only as good as the feedback and so we need to do a good job promoting. It it's part of the public facing infrasturcture of the County and working with the CIP fund. Currently, we have allocated $40,000 for the survey setting that aside. Mr. Rapozo: I am going to stop you there before we get to the summary.Any questions on the first portion of Brandon's presentation? Ms. Yukimura: Obviously a huge amount of work accomplished so congratulations and thank you. Starting with the last first -your community outreach initiative. Because in the transportation plan this came up. I just wanted to put it on the list, but there was input from the public regarding wi-fi on buses and at bus stops. They just said it would be easier to wait at bus stops at long intervals even though our goal is to shorten the wait, and also on buses the more we can make buses a place to do work you encourage ridership, and in fact I just heard transportation seminar where these State Directors of State Transportation are saying that the genx and the younger set are wanting to ride bus and because then they can text and do their work instead of trying to drive. It is interesting, but an way just as one of the interfaces with technology just put that on the list, and then I have some questions about the 800 mega hertz radio system if I may? Mr. Rapozo: Was that the CIP? Ms. Yukimura: No, it is not under CIP. Mr. Raines: It is actually a current project and also a suggested future project—so, it is both really. Ms. Yukimura: Is it okay? Mr. Rapozo: Yes, that is fine. Ms. Yukimura: I am glad there is a cross agency team, and I guess congratulations are due that you have launched phase one. Is that correct? Mr. Raines: Actually phase one we completed the contract and negotiated the contract and initiated implementation. At this point in the project many of the key milestones have already been achieved and plan to bring the system live this summer. So phase one, that project will be completed by the summer. Ms. Yukimura: By the summer. Is it a year later than what the answers to last year's budget said it would be. They said it would be - phrase one contract execution by June 2011 and phase one system core upgrades completion by July 2011. Mr. Raines: Should have been 12. Ms.Yukimura: Oh okay, maybe it was a typo. Mr. Raines: We made it June that would have been a two month project. April 10, 2012 Finance Department p.72 Ms. Yukimura: I think you were just coming on board at that point. I do not know if you were even involved with this answer, but I am glad it's only a year. We have been waiting for 10 years for a lot of things, so and it is a key piece of emergency response, so I do not think any of us question the experience of it. One question is maintenance included in the contract? Mr. Raines: We have maintenance agreements. The equipment that is part of phase one, the new equipment going in gets covered for a year, and ongoing maintenance is contracted for annual basis therefore, but since we are buying new equipment and it comes with the one year warranty, our contracts after the initial goal are through pacific wireless and motorola here in Hawai`i. Ms. Yukimura: I believe the first one they gave 20 year contract or 10 years. Mr. Raines: But the current one, and I believe we're in year three. It is one year contract and two years to continue that is optional and you will see the costs will come down once the new equipment comes in and costly for the equipment that you can't buy replacement parts for. Ms. Yukimura: So that will change with the instillation of the new equipment? Mr. Raines: Since they have come to it that maintenance is part of our operational budget so we budget for that for the expected maintenance costs and not only the things upgraded today but the equipment at remote towers. Ms.Yukimura: Do you know an estimated maintenance cost? What is the ballpark? Mr. Rapozo: It is in there. They have huge - all the different maintenance contracts are... Mr. Raines: I tried to group it together but not one item together. Mr. Rapozo: You have it broken down pretty good in the text portion. Ms. Yukimura: Is it a million dollars? Mr. Raines: $600,000 right there. Ms. Yukimura: Okay. I have more questions. Is that okay? Mr. Rapozo: About what?About the system. Ms. Yukimura: You have Civil and Police and Fire with this. Any thought about others that use the system? I do not know if the transportation system, the bus, but during emergency their operations are going to be important. The emergency medical people... Mr. Raines: EMS, we are in contact with them. Ms. Yukimura: DLNR? April 10, 2012 Finance Department p.73 Mr. Raines: We have some external uses. Ms. Yukimura: Harbors and PMRF... So long as their needs are addressed too and I was wondering about sharing and the expense of the maintenance, or about getting second phase and third phase financing because you mentioned that as sort of - we do not know the answer yet to that? Mr. Raines: That is correct. In terms of financing I put together a project initiation document, or a PID for the CIP funds which was - did not make it into the budget but I have a write up that I will cover shortly about why we should consider this as a future CIP project. In my mind this is very important public project and when we did phase one we accepted that we ultimately want to do all three phases of the project. We still do not realize the full benefits. Mr. Rapozo: You are going to touch about that in that portion? Mr. Raines: Absolutely. Ms.Yukimura: Is that one of the projects in the CIP? Mr. Raines: It is a suggested new project. Mr. Rapozo: It did not get excepted he said. p g p Ms.Yukimura: I just want to suggest and I have suggested it before and so I am glad that Wally is here.... I think it is a perfect federal grant project. It involves fema and federal agencies. It is about emergency and safety and I think it should be a special request to the Senator Inouye and we should look around for Federal grants and I think this is something that beam can jump on board with. It is not a discretionary thing. Anyway I am just thinking from an negotiation - I mean Brandon is really correct in trying to develop a funding mechanism and by the County funding, but looking at connections, our lobbyists - we have a lobbyists;right? Mr. Rapozo: Shortly. Ms. Yukimura: And I just wanted the administration to think about this angle for funding because it is about $5 million. Mr. Rezentes: The Civil Defense team has acka e request through p g q g federal channels for a grant. I do not think we have gone to specifically to the Senator's Office, but through my understanding is they have done a package to submit for funding the second and third phases of the 800 mega hertz system build out. We got through the critical phase and p-25 compliancy and that is the first phase is.the most critical. Now, the next two, or third phase if we luck to have all the funding necessary we can combine phases two and three, and again that is predicated on hopefully outside sources, federal sources of funds. Ms. Yukimura: Well thank you. So, I think the Council can help in this area. I mean we have people who are well positioned in terms of their trips to Washington in terms of their contact it is. Mr. Rezentes: Let me suggest that we get maybe some of the Civil Defense team members and have a meeting with you folks, and maybe provide you know the appropriate information bullets... April 10, 2012 Finance Department p.74 Mr. Rapozo: Yes. What we will do is setup an agenda item so you can do a presentation and the Councilmember Kuali`i our Intergovernmental Relations Chair and our Board member from NACo can explore some opportunities for funding, but I want to get back to the actual budget here because we are short on time but thank you very much. Thank you. Ms. Nakamura: Thank you for your presentation and all the good work that your division is doing. I have a question about the it strategic planning. I am glad to see it on here, and I wanted to find out are you doing this in house, or do you intend to bring in a consultant? Mr. Raines: My intention is to start in house and once we get a better feel for the scope and breath of it, if we feel we need additional resources to get it done in a timely manner we will pursue that. Ms. Nakamura: And is it your goal to have a strategic plan done by the end of this fiscal? Mr. Raines: Yes. My goal is to have the strategic plan done by the next budget presentation, so I can see you folks with the appropriate funding requests and this type of thing because it will have implications and part of the trade off - I try to give people different scenarios to look at. Do you want this done in one year? Three years? Five years? And if we want it done faster and there are different implications to get there. Ms. Nakamura: Do you have enough funds in here where you may need to bring in a consultant? Mr. Raines: Yes. Ms. Nakamura: Good. On the community outreach initiative one of the concerns that I have about not just this survey, but many other county surveys that are done by other departments is they are not statistically relevant, or you are not taking a random sample. You are not using a statistically relevant sample size and so forth, so the people who might be giving you the data might be skewed in one way and not include those that access the website or go to a library, so I just want a general comment about doing surveys, involving the community. There are methods that - it may cost a little but I think the results might be more relevant information for our Department to work with. Mr. Raines: Yes. I think you have a very valid point. I guess my consideration during these tight fiscal times is I could spend $50,000, $60,000 doing a professional survey and analysis is that type of thing, but I think collaborating with our Departments and Council because my thought was to involve you before we pushed this out to the public. We could do a pretty good job of asking some information and structuring a survey we would get valuable information to include the community. I totally agree with the whole statistical analysis piece but initially my thought is let us gather data points we feel are important and give people to comment in a free form piece and meet collaborately and internally and make decisions and publish those. We cannot really represent the wants and needs of people who will not participate in the feedback loop. Ms. Nakamura: Yes, just to let you know recent community surveys done by- for the indicators project I think involves a sample size statistically relevant and in the two to $3,000 range. It might be more doable than the $50,000. April 10, 2012 Finance Department p.75 Mr. Raines: Looking at the it stuff it is costly - there are not a lot of examples about services, but what I think I am trying to achieve from this perspective is unique. The research I would love to borrow and steal something that is bought for but I do not see it out there. Ms. Nakamura: Thank you. Mr. Kuali`i: One thing when talking about the meeting management system and lead me to think about it and throughout the budget process I have been noticing increases in a lot of Departments in their travel line items and travel line items for general, and travel line items for training, and in a lot of cases big increases. Has your department worked on servicing the County in online meeting and training? Is there a place in the County like the State has in the basement where you can go and utilize the room because it is all set up for video conferencing? Mr. Raines: We do utilize the sources for meetings. We do not have a meeting service like "go to meeting"but certainly something that we can look at. If those costs are going up we can do that. Normally we rely on the vendors and partners and motorola are already paying for these things so instead of traveling to this island or this island we utilize their piece. It might be time for the County to consider our own service if we find we are moved to the trainings and meetings off island that we could do remotely. Sometimes they are not offered that way and get you away so they can focus, but it is not to say if there is a need we should support that and pursue it if that is a priority. Mr. Kuali`i: For sure for those that are offered that way we actually encourage that we do it that way. Mr. Raines: Well, most of them are offered as webnares we can do that by the fact that we have a internet connection. Mr. Kuali`i: Interesting to know and tracking that and how the county's doing in participating in webnares, the ones that are available for the different Departments or whatever. Mr. Raines: I know my department participates in webnares and does remote training because it is more cost effective. It is not as nice as going to a conference and getting off site but it can be effective. Mr. Kuali`i: I know in the Human Resources quarter report ending December 31, the two positions are the - on your page 273 and244 and both technology specialists four positions Sr-26. One shows as effective vacant since January first, 2010 and the other shows effective vacant as of December 5, 2008,so I mean a long time. Are these both the positions you talked about just being filled or about to be filled?I am interested in knowing the dates. Mr. Raines: I have a staffing summary and another summary and appropriate to go through that. Mr. Kuali`i: So, these two positions are tied to CIP? Mr. Raines: No. Let me go through my staffing presentation right now and I will go through all the openings. Basically we have two staffing related requests for fiscal year 13, and backing up a little bit the it division is working on less than optimal level and because April 10, 2012 Finance Department p.76 of the vacancies and extended leave for the communications officer and we were going get temporary positions and recruit someone for the telecommunications officer during this period. First the unfilled vacancies and what you are talking about right now. There are two positions and what we are requesting that we are able to recruit those and still SR-26 level but the minimum and... Mr. Rapozo: Brandon, has that been reallocated already? I see the budget. Mr. Raines: It is in there. Mr. Rapozo: No, I see the budget... so that is done? Mr. Raines: It is not a reallocation. It is just me saying I want to recruit above the minimum amount for these positions. Mr. Kuali`i: The interesting thing is if the recruitment is under way when would Human Resources know that? Because they have it listed as the old dollar amount but of course we do not have current data. This is from December 31. Mr. Raines: In the operational budget they are listed as 65 which is the new amount so if you look... Ms. Yukimura: He is not recruiting now, right? Mr. Rapozo: So it was always SR-26? Mr. Raines: SR-26, I am not asking to change that. All I am saying when were cruit for these positions can I please recruit above the minimum level and up to 65 based on what we find skill set, etc.? Mr. Kuali`i: But these positions were budgeted and vacant at the old- the minimum amount, as you say? Mr. Raines: They were vacant when I came about a year ago and what had happened I came on board and rather than just fill the open boxes I had, I took the position to analyze the staff and the skill sets and I spent the first five - four to six Y p months evaluatin g that and coming up with an evaluation. What I concluded was that the position descriptions that I had did not match what I needed. I then went about the process to rewrite the description positions and submitting a full recruitment package and that is with Personnel and so we can recruit maybe before July 1. I am certainly hopeful I can do that and we budgeted for the salaries. I can hire them at any point regardless of the amount I can hire them out, but I tried to say hey I might want to pay a little more to get the appropriate folks to move forward. Let me budget for that moving forward. I am not worried about this year. They are unfilled and I want to see that appropriate funding and going P forward so it is sustainable and I do not know exactly what I am going to find you about I hope to be recruiting shortly. Part of the delay is mine taking the time to do it and the other part is... Mr. Rapozo: Personnel - the buzz word. In number seven you said redefined three open it positions. Mr. Raines: Yes. Mr. Rapozo: Which were those? April 10, 2012 Finance Department p.77 Mr. Raines: So the open positions and I maybe used the word "open" loosely but the unfilled vacancies are 224 and 273. The extended leave is 556. I call that open because I have never really met that employee since I have been here in a year and that leave has lasted during my tenure so while in my mind the box is not open it is vacant and unfilled. I need to get the job. We are doing our best job but to fill in that gap but we do not have the skill set. We are doing the best job that we can, but we really need that vacancy to be filled to address the public safety concerns and the sooner the better, and what I asked is during the period it is kind of tough to navigate the HR things which probably are not appropriate to talk right here, but what you see in there is the famous position that we talked about earlier. That has been temporarily allocated to me in the first six months of the budget so I can hire into that while the sick leave expires for the incumbent so we do not have to wait until December. It is too long as it is and this is away to pursue this now and the box is not officially open I have to create another box temporarily and once the leave expires that position goes back and becomes... Chair Furfaro: May I say something? That is a problem within the County because we cannot open up that other box, so we end up with no ability to cross train with departing personnel, retiring personnel to have any continuity in turning over all those duties, so I think we as a group understand what you are saying there. Mr. Kuali`i: The only other thing, a separate item. When I was looking at the budget variances and line item for dues and subscriptions, the amount from last year to this year went from$82,000 to $152,000, so an increase of $70,000 or 86 percent. What is really different going forward as far as your dues and subscriptions line item? Mr. Raines: They went up about 71,000-dollar from last year. So $52,000 is the software license. That was previously grant funded. There are no grant funds for that so that is $52,000 of it. Another $10,000 came from the mass mobile device solutions and use for ipads and mobile devices to provide security and close the hole created by everybody getting an email on the devices. We are not there yet and another $10,000 we added to the internet subscription and we have 10 megabits in a pipe that goes out in two places.As we move to more based applications we require more band width and we are tapping out the current amount we have right now, so that is me looking forward trying to find away to expand the band width in budgeting and extra dollars to go there. I found a way to go there... at least with the pipe and telecom and triple the band width without paying extra dollars and that is coming before the Council tomorrow in the meeting and asking to do that utility and that in there so we can get the job done. It is a great opportunity to get triple the band width with no extra cost. I do not think I am getting the same deal with Hawaiian Tel which is across the way. So hence the extra dollars. Chair Furfaro: We are coming up on 3:30 now and you are probably more aware of my absence in the last 40 minutes of where we are at, so why do not you continue until we get to Risk Management. Mr. Rapozo: Brandon, my question is on the telecommunication officer, so the current incumbent is out on sick leave and has six months left. Mr. Raines: They are now on sick leave until December, so that current box, 556, that position number is not available until December and we did this to allow us to recruit now. Mr. Rapozo: What happens with 556? April 10, 2012 Finance Department p.78 Mr. Raines" I believe what will have this other one will be a duplicate one and 556 is not available and at such time the sick leaves expires and this person is rolled into 556 and the other one will go back to Ernie's position that you talked about this morning. g P Y g A temporary place holder so we can recruit now because we do not have another box unless we are granted that on a temporary basis. Mr. Rapozo: So 556 will remain? That will be - I mean is that incumbent going to retire? Mr. Raines: Yes. Mr. Rapozo: And this is a typo here. This 212 is not right. Mr. Raines: No, it should have been 1547, should have been stratched. Mr. Rapozo: And so, how does that happened? How does that happen if it is budgeted as a telecommunication officer? Mr. Raines: Can you answer that Wally? Mr. Rapozo: That is a problem that I have. These positions get changed throughout the year and we do not... Mr. Rezentes: The intent for that position is to be utilized by IT on an interim-basis temporarily until we bridge the gap with the hiring of a County telecommunications officer. Once approximate six months time period, once that is completed, the position 1547 will be transferred over to the Division of Purchasing and they will utilize the position to fund the vacancy that they have that they intend to fill, and 1547 the individual that will occupy 1547 will be moved to 1556. Mr. Rapozo: Right, but you... Mr. Rezentes: In the end we will have one telecommunications officer. Mr. Rapozo: I understand that but we are only funding that for six months so where do you get the funding to continue that position. Mr. Raines: We do not need it because the sick leave expires in December; right? So we funded a full... you see the county telecommunications 556 funded for the full year? Mr. Rapozo: That is not what I am questioning. I am questioning the other one and funding for six months. Mr. Raines: Because effectively have two for six months. Mr. Rapozo: And one retires and moves and then you have a vacant position and apparently sent back to... but it is not going to be funded. Mr. Raines: It is a good point. 1 April 10, 2012 Finance Department p.'79 Mr. Rapozo: I know it is. But again, I guess I questioned. Mr. Rezentes: Purchasing has it funded under their budget, I believe. If you look under Department of Purchasing. Mr. Rapozo: For a six month funding? Mr. Rezentes: Yes. Mr. Rapozo: Okay. Would it not be easier to... Mr. Rezentes: It is. Mr. Rapozo: ... to contract a position for six months for your telecommunication officer? Mr. Raines: The nature of the position, the specialized skill set, makes it really to contract out- I mean the fact is that we work with pacific wireless communications to provide support. Mr. Rapozo: How long has 556 been vacant? Mr. Raines: Since I have been here. Mr. Rapozo: How long has that been? Mr. Raines: Over a year. Mr. Rapozo: Exactly. So, apparently, it is not that critical where we... do you know what I am trying to say? Mr. Raines: I would like to say something about that. 556, the telecommunications officer provides some specialized county to the County. Right now you have people supplementing that position including myself. I spend two days a week from doing that and that keeps me from doing the job as a it Manager. Its not sustainable. To me that's a public safety issue for the County. Mr. Rapozo: On this Council we were never informed that. There was never a request for us to get this public safety position filled or contract or anything. That is what I am trying to say. Mr. Rezentes: We did not realize until maybe three, four, five months ago the outcome of the incumbent in that position, and what we have done is rely more heavily on our contractor to provide the necessary oversight management assistance to kind of bridge the gap of the two or three guys including Brandon that on the it side trying to help out as well. We are in transition mode, but we are addressing it. We think we can address it with the method that we are portraying here with that overlap in funding for the first six months of the fiscal year. Mr. Rapozo: That is fine. I guess I just- I am very uncomfortable the way positions are changed mid-year. It just drives me crazy when we go through a whole budget April 10, 2012 Finance Department p.80 session and get the justification and mid budget position changes from this position to that position, and then the following budget we have an entirely new structure, personnel structure that we approved the year before. You know, the Attorney's position that it is legal. I do not think it is proper. If you come in for a pog for that year I believe that should be the position you get, and this at least it is somewhat clear because we are only funding it for six months, but there is no proviso in here that says that position will be transferred - I mean it does not. It does not say after six months the position is transferred to purchasing and maybe the confusion is with the numbers because the number is not right in here, and I guess I have to get that out of my head and this is not two one two. Then it is a lot easier to follow and you see that in purchasing with six month funding. Ms. Yukimura: I believe this telecommunications officer was in the Police Department for a while. Mr. Rezentes: It was all over the place. .It was in Public Works at one time. It was in Police Department at one time. It was in Finance at one time. I think more than once in finance, and having gone through some of that throughout the years—you know, we feel that probably the most inappropriate place for it- we feel that under the Civil Defense. Again since we started with the process with it and the position was in it our intention was to go through the process of getting the person hired on, and then hopefully transitioning that individual over. Ms.Yukimura: So for about three or four years or maybe longer it is been a personnel issue that hasn't been resolved, and I commend you actually for coming to a solution on a very critical issue that is a public safety issue, and yeah it is a bit convoluted, but I think the end result is the right one in terms of getting someone on board that is qualified as soon as possible. Properly acknowledging and transitioning existing employee out, into retirement, and then putting the position once the person is hired and everything into the proper location, so that we can have somebody overseeing this upgraded 800 mega hertz system. The end result is the right one and seems to me that the Administration has finally found a way to do it. Mr. Rapozo: So the position is going to end up in civil defense, you said? Mr. Rezentes: Eventually, I think... Mr. Rapozo: Like in the May submittal? Mr. Rezentes: Potentially that is where we and again we want to transition we want a long-term make that transition over to Civil Defense. Chair Furfaro: Do we need to do it that soon, Wally? Mr. Rezentes: We do not have to. Mr. Rapozo: Well, I am asking what you guys going do? I see it in it here and I agree I think it belongs in Civil Defense. That makes sense. It is radio, public safety and that is the hub of all that stuff. Chair Furfaro: But I think we want the best exposure to the new hire as soon as we can until we has to swim upstream by himself. I ran resorts with large telecommunications systems reaching out and 19 thousand acre property. It is one you really if you go to get the right person you want the right exposure before we turn them over. April 10, 2012 Finance Department p.81 Mr. Rapozo: Okay. We are going to take a caption break. Brandon, you hang tight for 10 minutes and you can go into the CIP portion and you can over go over that. We will take a caption break and 10 minute recess. There being no objections, the Council recessed at 4:48 p.m. The Council reconvened at 5:00 p.m., and proceeded as follows: BRANDON RAINES, IT Communication & Project Manager: We are going to go over the CIP products for... there are currently four projects listed in the budget for IT. These include the planning, zoning /engineering system and the electronic review system. That is a project in progress and the document imagining project and another one in progress. It infrastructure improvements, also in progress and payroll personnel system and we talked about earlier and penning projects. First off progress on it owned CIP projects has generally been slow except with planning and zoning or electronic review and because of lack of resources caused by the open positions and longer than anticipated to set the projects and I will go through that in this executive summary. First off planning zoning or electronic review and follow the approval and funds were for venue and had them with public works and buy in and solution from the CIP vend are for the system. The file were transferred by end of 2012 and expired at the end of the year. The contract has been completed and implementations and covering one $25,000 of the budget from last year. Those funds are for licensing and implementation services which are under way. The remaining funds will be used for associated hardware and services requiring rolling out the project. Current plans are to conclude it this year and full roll out in fiscal year of 13 and summer of 2013. Document imagining. Phase one of the project was completed end 2012 and expanding the contract for motor vehicle registration. This required $120,000 in fund allocation and relayed phase two. The remaining balance is approximately 450k. I will say one thing that happened in the budget that one line item got split into two for this part and the general fund for this 1 CIP piece. Phase two was in facted with the office of the Prosecuting Attorney OPA using the budgeted funds so basically used the funds rather than the CIP funds and what is going on with them. We are anticipate Thanksgiving contribute will be and review of industry best practices. I believe the primary change will be organizing access to prior to contracting services for the backlog scanning. Again that will list concentrate and focus on scanning the most backlog first work back in time and maybe saving dollars so we don't have to scan everything depending on the requirements. It infrastructure improvements. Fiscal year 2012 budget cycle the scope was expanded to include deliverables and critical maintenance and architecture and scanning and paper elimination. While progress is slower because of limited resources there are key things covering 64k in the funds allocated and for services and equipment. We completed initial review of disaster recovery operations for the County's major systems and identified solutions for the sun guard ERP or AS400 as well as the IS property management. These items and services will be implemented in Q3 of 2012. We utilize free vendor service and critical maintenance. We worked with vendor partners to in fact the procurement efforts. In fact those have been procured. We are targeting this work for completion around summer of 2012. We increased data resource to address the immediate needs. We identified partners for overhauling the county website. We started the planning process to move that procurement forward and efficient efforts for cloud resources and partners providing server resources and to explore this next quarter for the project. Finally just a little bit about the payroll personnel piece. We kind of talked about this with Wally earlier. The system has been primarily focused on payroll options and possible placement for ERP and is required for personnel and time -these functions are dependent on payroll. Ms. Yukimura: ERP is what? Mr. Raines: Enterprise Resource Planning which is our financial system and has a community component for planning and building permits. April 10, 2012 Finance Department p.82 Ms.Yukimura: Thank you. Mr. Raines: Overall project progress has been slow to additional resource demands from 163. This law requires development of automated transaction base reporting for payroll and personnel reporting by the State and will be completed in July 2012 and the County must submit those transaction files instead of paper reports so it and payroll are collaborating to make this happen by the deadline. Chair Furfaro: Where are we submitting them to? Mr. Raines: To the state. They will be electronic files. Chair Furfaro: Unbelievable. The State wants to know about our payroll? Unable. They have a big problem and now want to look over our shoulders. Understood. Going forward. Mr. Raines: Okay. That is all I have to say about those. I did want to talk about a future CIP project recommendation and had to do with the mega hertz radio system. Phase one of the maintenance of this project has been going very well and the target for (inaudible) in summer of 2012 and first phase of a three phase project and for infrastructure and meet compliance and modern architecture and with the current operations. With phase one wrapping up at the end of fiscal year 12 and Alaska funding the county should look to fund phase two for the budget cycle otherwise there will be no options and effectively stall because of lack of funds. We are looking at grant options but during my recent discussions with the Civil Defense, Fire, Police, etc., it does not look like there are grant funds available for us in the next civil year. There may be after that, but achieving P-25 compliance and capability is required to keep pace with communications with Federal and State agencies. Additionally, they will improve operations functions and during large emergency responses. By initiating phase one the county recognized the importance of phase one and in the document for the formal proposal to mother role. Phase two is required to see the true benefits of this proposal. The work and cost are well documented and by both matters due to the former proposal prior to phase one initiation and as such the only ones required. These would require similar effort efforts. A project document has been completed and introduced for future consideration. Chair Furfaro: Brandon, for phase two and Motorola with no grant money available has there been discussion to put it possibly in the bond float? Mr. Raines: I introduced it as a CIP project during the most current... Chair Furfaro: (Inaudible) Bond or does not matter. Has there been dialogue? Mr. Raines: There has been dialogue and did not make the current CIP budget. Chair Furfaro: And phase two would take what period of time? Could it be done... Mr. Raines: One year. April 10, 2012 Finance Department p.83 Chair Furfaro: It could be done in twelve months, thank you. Ms.Yukimura: (inaudible) Mr. Raines: Phase three, no, I do not have it at the top of my head but I believe it is about two point one million. Ms. Yukimura: So we are looking for... to complete the project about five million... five point five million? Mr. Raines: For phase two, I proposed three million that was approximately 2.3 in core project and six to 700,000-dollar in additional radios and part of p-25 is replacing all of the radios out there because they are not compliant so phase three I believe is another 2.1 plus $600,000 so... I would say about 5.7 left on the top of my head. Chair Furfaro: How much have we invested so far with grant money? Mr. Raines: This contract is just over 2.2 million for phase one. Chair Furfaro: So it is 7.9 all together. Okay. Ms. Yukimura: So do we have to interface the system or is part of the project includes interfacing the system with the cad or the police system that you just put in place last year? Mr. Raines: There is a minor touch point, potential touch point, been the vision cad system and the radio system. We are not clear whether or not we are going to do that. Basically the new core of the radio system has like a computer terminal instead of these archaic buttons and switches that you see now so it's another computer terminal. The only interfaces and hook a button inside the cad or on this screen over here. There is that level working with dispatch to see which way they want to go. It is covered by the contract regardless of what direction we choose to take but there is a minor integration but it is to push a button to answer the radio but that is it. Ms. Yukimura: If that is all it takes to interface effectively that's pretty good. Okay. Thank you. Chair Furfaro: Any further questions? If not, aloha. Mr. Raines: Before I go and if we have time, I want to... Chair Furfaro: No, no... hold on. I went around the table asking if there are questions and there were no questions. If we had time, you have more to offer. You offer what we want and then when we go around the table and ask if you have any questions, do not say not right now and so forth... if you have a question, pose it. Finish your presentation. Mr. Raines: Okay. The last thing I wanted to do is address the request that we got from Council yesterday afternoon regarding electronic plan review and go through that discussion. First of all I am going to go over history and background that was presented during last year's budget piece and seems to be question about what the system is and why it is good for the County and who is using it et cetera, and I will go through that and the current project strategy, bigger picture, type of thing. April 10, 2012 Finance Department p.84 Mr. Chang: Wait a second. Do we have that here? Mr. Raines: No. I just put together some talking points but after the discussion if you want a communication of this I will get that to you. Mr. Chang: Thank you. Mr. Raines: Okay. So this is again from the excerpt from last year's presentation. A little history and background on the whole project. Based on the research in early 2011 this project was never previously defined in a high level and scope involved functionality for the integration but not seriously pursued and in early 2011 it and public works consider solutions for electronic review and intake and address obstacles with the paper base processes and enabling and electronic submission and eliminating paper and integrating with current systems, building permits and improving communications with the County and the citizens who are submitting plans. They determined that they were offering the solution as add on to the core system. Further research indicated it would meet our needs and best product implemented around the country. A few examples are Bend Oregon, Santa Monica, California and in Maryland. The plan solution from sun gardens and rebranded version of project docks and software and available to us by discount rising pricing and multiple vendors and Public Works were in agreement that would provide this and better service to our services. A little bit about scope and benefits. The review will provide County and staff and citizens and optimize the processes for plan, submission and existing... accessible to multiple departments including emergency responders were the ability for supports to do it electronically and plan reforms and submissions and notes and comments and base the on the communication between the county review team and citizens and as well as the (inaudible) process with stamps and publication to citizens. The feature features are functions will corrode benefits for the staff and citizens. Some include increased intake for review and inspection processing and reduced errors, reduced submissions, efficiencies and improve the plan. E review also supports the goals and promote green solutions and saving paper use, saving trees and smaller carbon footprint and eliminates the need for additional storage space. One note of interest on this, the City and County selected the same software solution as currently in implementation with go life plan for this year as well. While they do not have the sun guard association and the integration they recognize the value the application and decide to move forward anyway and they did it paralegal and talking to them over there they were pursuing the same software. Just providing a current... that is kind of history and background from last year. I want to talk about where we are now with the project and I want to start off with project benefits and goals. In addition to the information I provided from last year this is a list of details, summary and goals for the project going forward. This will allow the County to have plan review and development and applications including Building, Planning and Engineering. The process will be performed digitally and supporting green initiatives and prohibits hard copy of plans and for business and commercial and stops the need to drive to the County Office and single entry and begin to end processing. It improves the speed and accuracy of the County and the reviewers and marking and working the plan documents because they are electronic and in the system. Errors are therefore significantly reduced. We will have the documents come in they can be routed for concurrent review rather than the way they are now and takes longer. This is going to reduce counter submissions and thereby improve staff efficiencies and less questions coming across the County. One of the best features of the system is take version one of a plan and take version two of the a plan and there is a feature that basically identifies what has been added to the new version and what has been deleted from the original version and what is add is in green and what is removed is in red, so if you have a very complex building plan, say a commercial building, and did it early, and they really did the plan later that thing will light up like a Christmas tree is what will happen, and real life scenario a real jurisdiction rejected the second plan and forced them to go through the process again because they basically did not do it the first time. They did it to get it in the cue and an easy way for them to catch things rather than looking at complex plans and try and find everything. April 10, 2012 Finance Department p.85 We accept the eplan solution accepts all architect computer file formats and approved plans are electronically stored permanently and accessible and eliminates hard copy filing. The county currently archived 15 years of permits and seven years of residential permits. We will not have to archive those anymore. Implementation strategy for our e plan review project include the comprehensive modeling and staff training and phase goes for the process. Given the large culture changes for County workers and our citizens and best in phases and pilot the system and work outlet issues and go live before moving on to the next one. And calls to be completed in 2012 and full roll out by covering all permitting process in summer of 2013. Key deliverables and milestones of the project are small. While the application types by the Public Works Building and Engineering and Planning and develop work flows that support all these permit types. Train County staff and review and approval and work flow process. Train staff in these processes pilot the plan for the shall permit application. Go live with the building permit application. And zoning go live with those. Pilot the electronic plan review with engineering permit applications and go live with that and develop a back entry program for prior approved hard copy, so we stop the in flow address all the paper that we have so we have a full history on line. So as we scan the backlog we are going to be using the key that are appropriate for retreelal whether that is or what have you that needs to retreelal. A little bit about context and the big picture. Kind of step back from the project itself there is a much larger picture to be considered in terms of zoning and planning and this involves land management across Public Works, Planning and Real Property and others, and there were good discussions in last week's presentation on planning. I was fortunate enough to catch that. While they played a key role in the picture there is one thing that we must pursue and implementing e review we can stop the influx of paper and pursue other aspect. While the road map is under development we have made progress and the following items provide challenges and opportunities that we in creating the lodge strategic plan and system issues across the board. The imaging initiative utilizes this blat form. While this technology remains in the strategic plan it might not be applicable to this because they will be in plan review. Rather than having multiple depositories and rather than to look at it and capabilities and keep similar information in one place and avoid multiple copies. This supports the new approach by documenting imaging and turning off the tabs and create electronic versions before doing the backlog with contractor assistance. We need to change this and electronic input before addressing the backlog or we will never catch up of the County Manages a land (inaudible) will and two systems and some regard the sun system and the data planning system. The lack of a central County depository for land data has related in frustration and confusion and as Departments do their best and sharing the details with others. This all needs to part of the data base and this will be helpful in making this goal a reality but over all it will involve other systems and projects and the bottom line fixes the current problems and addresses those in the future. The County will need to prioritize staff and significant changes to major systems affecting land management including the is real property system and the sun system and do the planning system with commercial office shell to ensure reliability in the future. These require significant efforts and RFP process to implement. Clearly this is a lot of work but we can pursue these with land management processes and build them into the procurement cycle and buy buy pieces that fit the long-term strategy. Chair Furfaro: Before you go any further what parts of those are in the budget this year? Mr. Raines: Just the eplan review. Chair Furfaro: Okay. Mr. Raines: I think basically our review with sun guard indicate rather than just going to the next generation and open that can of worms. April 10, 2012 Finance Department p.86 Chair Furfaro: Okay, we are going to open that can of worms in a Council Meeting. We have gone over Public Works and Real Property, Planning and benefits and all of these. We need to have this as an erks agenda item very soon operate from the budget. I mean great information. Certainly we are going to gain a lot of efficiency, but there are costs associated with this in loading. What do we specifically do with the back scanning if we are not going to do it at all as well, but we need more than just a budget session to talk about all of these on potential benefits. We need a specific agenda item. If you could give a description to me I would like to put it on rather soon on the agenda. Mr. Raines: I would be happy to do that and I only thing I would say that strategic plan is still under development. I am underlining all the work I see that needs to be done. Chair Furfaro: Yes and that is why I want to have it. The work comes with certain costs so we would like an opportunity to see all of the benefits, not compressed in the time that we have tonight. I would like to see it as a separate agenda item either in Finance and or the Planning department because it is tremendous cross benefits here, and those are items that we need to prepare ourselves for future benefits. Mr. Raines: Just to close with that, the strategic planning that we discuss the earlier with the it initiatives for the next fiscal year in terms of creating a road map for services et cetera. This is part of that. This is about looking at all the systems that we have, how they integrate... Chair Furfaro: I did not misunderstand that but I am saying this is not the time to have serious discussion about all of those benefits. We are talking about this year's budget, but we want to see some visionary piece about where this can take us all in the future as well. Mr. Raines: I will close with this statement then. There is no one system or solution to address the land management requirements for the county but e plan review will provide one part of the solution while we pursue others to integrate to the modernization of technology. As part of this journey it is necessary to look at short, medium and long range solutions along the way. This is a great example to move forward. Chair Furfaro: I want to make sure you heard me. I do not debt the benefits of it but this is not the time to talk about the long-term benefits. It is my request of you to send over a piece of correspondence to the attention of this and we will put it on with special time in the very near future. Ms. Yukimura: I think you will be happy with that. It is a real joy to have the answers before you ask the questions and I feel that is what your report just did for me. I have some questions, but I am confident from hearing what you report presented that there is... that you have the long-term picture and whatever we do short term is going to be done with the longer term picture in mind. Chair Furfaro: (inaudible)is something going forward. Ms. Yukimura: So, I do not have any questions. April 10, 2012 Finance Department p.87 Chair Furfaro: Do you have an idea of what in the recent near future would work for you as far as putting it on your calendar because I see this discussion probably taking an hour and a half, two hours. Mr. Raines: I also see it involving more people than it. Chair Furfaro: Absolutely. Mr. Raines: Honestly, we are talking about systems used by a multitude of Departments and I would like at least a month to prepare. I do not know their schedules and we have to have serious discussions and high level road map and we can spend time with the productive discussions and use that input as we do the road map for next year. Chair Furfaro: I think you got my point. At 4:30 on the Finance's Department budget agenda for this year and nobody is in the audience except the finance people. We do not have Public Works here._We do not have Planning here. We need them present to talk... even if half a morning that we put as a special session, so I look forward your correspondence for the costing and at the same time I beg you to inquiry with Public Works, Engineering and Planning and Real Property. Mr. Raines: Got it. Chair Furfaro: Thank you very much. Do you agree? You and I have talked about this last October when we had lunch. Mr. Raines: I totally agree that we need some dialogue. My only hesitation is I think it is earlier in the process but let me get together with them and I will get back to you and we will schedule something and it is important and evening if it is interim to the next step. Chair Furfaro: Thank you for an excellent job as always. Where we going now?Risk management or Treasury? JANINE RAPOZO, Risk Management: Good afternoon Chair and members of the County Council. Thank you for the opportunity for me to present the Finance Department's Risk Management 2013 budget. The proposal administrator. During the past year the division of the Finance Department has spent a lot of time and effort in working towards creating an organizational structure that would best meet the needs of meeting the county human, and financial assets. As a result you will see in the budget proposal for the Risk Management Division the funding has been decreased due to the transfer of one of the functions to the Department of Personnel Services, so what you will see here in the Finance Department's Risk Management budget is a focus here on managing the financial and physical assets of the County through a comprehensive lost control program focusing on our experience programs and other risk management services. The focus on our human assets or our employees is being transferred to the department of personnel services health safety and employee relations division, and this particular department will be the one managing and focusing on training, safety, and workmen's compensation programs for our employees. Aside from that that was the biggest change in the Risk Management budget. The other highlights from this year include the implementation of the online work place safety program for all employees. We initiated the back to work program and work with the employees and the third matter administrators to get employees back to work after an injury and if we cannot settle the claims to limit our exposure. There is additional information I provided in the budget presentations so at this point I will see if there are any questions. April 10, 2012 Finance Department p.88 Chair Furfaro: Janine, can you describe a little more to us the return to work program? You know obviously if an unfortunate situation is we have a clerical person that breaks an arm it is kind of difficult to get them back behind a computer right away, but I am assuming you know we have opportunities here to create other work for them to actually get them back into the work force. Could you tell us... are there any parameters in that return to work program to keep the morale up and what are some of the parameters? Ms. Rapozo: The return to work program one of the key components of the program is make sure that employees after an injury or illness on the job to get them back to work, so one of the first things to do is see after the jury or illness whether or not they are able to come back even at light duty to some function that the county has a job for and one of the key things in this program if your own Department is unable to accommodate you for light duty we can look county wide for possibilities for you to did your job. That is the first component of it.As they improve hope to get back to full duty and your particular position. If you cannot we would look for long-term transfers into various positions in the County to see whether or not that would meet your needs as it is vacant. Chair Furfaro: As our specialist in that and have they been part of this developing this? Did they share guidelines what we can and what we can't ask the employees? Ms. Rapozo: Absolutely. They are a partner in this program. We did kind of look at the big island's program. They have a successful return to work program there, so we worked with them, and when we initiated the program and introduced it to all of our departments we had someone come over and a representative from the big island to basically share what they have learned to make sure we get off on the right track with this, and since we started the program we have brought back two employees to light duty and it is something that the Department may not have envisioned that would work for them and'it has worked so we are hopeful we can continue to look for opportunities like that for our employees. Chair Furfaro: And in doing this and we have been able to look at some kind of reduced cost for us on premiums or other particular associated insurance potential exposure. Ms. Rapozo: The biggest savings would be in the temporary portion disability payment that goes out to an employee when staying home on an injury. This way they are productive and getting work out of them and we are saving money. Chair Furfaro: So we are saving as well? Ms. Rapozo: That is correct. Chair Furfaro: Okay thank you. Questions regarding the return of work program or anything that they shared with us at this point? Ms. Nakamura: Janine, thank you for being here. I wanted to ask you a question about the safety logic and I have not been good about taking all of the courses that I have been assigned to take and I am wondering what is the actual usage of follow through once assignments have been made. Ms. Rapozo: That is a really good question. April 10, 2012 Finance Department p.89 Chair Furfaro: I have 100%. Ms. Rapozo: The Council Chair has 100%. What I have been doing... there are some delinquent people here but what we are trying to do is went people follow up so what I do is every month as much as I can I will produce a report for the Departments, and it goes to the Department Head as well as the liaison and the personnel officer or human resources person and send it out to them and say these persons haven't finished the assignment. Please follow up. I do not have authority to enforce it but I am working with the department heads to make sure they complete it. I do not have a percentage... Ms. Nakamura: Like a 75 percent completion or... Ms. Rapozo: On the first assignment which was done back in October we have I would say 75 to 80%. Now some of that is because I had to actually schedule groups in sessions to work with some of the off line employees so we got 300-400 in for that. We had six sessions for that and combined two of the trainings so they did not have to come for one for a half- hour and we will bring in them for that and there is that delirchtancy because of that situation. We have certain Departments and Transportation... I have given them access to the training so they can bring the bus driving in and view it on their screen and log it down and let me know, so there is a variety of ways because not everyone has computer access unfortunately. Half and half for the employees. It is getting better. I think initially people were not sure what it was and having problems with passwords and things like that but slowly they are realizing they are getting an assignment. Actually this particular department here is relatively good compared to some other Departments. Chair Furfaro: Every Thursday they get the sales pitch. But you know there are problems with the password. For me every time I go into it I got to ask for assistance... Ms. Rapozo: No, and I have been working with the vendor on that. I asked them to even change it and people can call me directly and it is because it is set up as a particular vendor approved program they were not able to do that, but slowly people are getting used to it and I am getting calls. Ms. Nakamura: One more question. This has to do with the presentation yesterday from the Fire Department regarding the Water Safety Bureau's concern about signage that we are seeing Risk Management concern and we are finding out that they are safety, the Water Safety Officers are putting up the signs themselves, and so I was wondering because it is multi-Agency Public Works supposed to be the instillation and I think they ordered the signs, but is that something you get involved with because potential liability to the County? Ms. Rapozo: Yes and for that particular signage, first of all, I do sit on a Risk Management Advisory for the State and just develop ing appropriate signage for the State and they are consistent and whether County or State supposed to submit where they want them placed and there are rules where they can be placed and that is the first step, and secondly I have not, but that is definitely a good idea for Risk Management to get involved in as far as signage and to have Public Works assist with putting up the signs. Ms. Nakamura: One of the things we had talked about yesterday was just identifying where the signs ought to be because the rust factor. Turn around is real fast in certain areas but putting together a schedule and making sure that we have the budget, a line item in the budget so it is just automatically done and systems are involved in install them. April 10, 2012 Finance Department p.90 Ms. Rapozo: Absolutely. And not just for those types of signage and bus stop signage and be proactive versus waiting until it rusts out and falls or anything like that. Chair Furfaro: Janine, you did hear that, we are looking at a three way team to pull this together. Public works to get the signs up. The Water Safety Officers to report them and yourself to periodically put it on your quarterly reviews as to what is the on going maintenance and rotation basis. Ms.Yukimura: First question is about goal or objective one. Establish and maintain a comprehensive inventory of county human and physical and financial assets and risks associated with each area. We just had a discussion about physical assets with the accounting Division today in Finance, and the issue about keeping track, and looks like you are doing the same thing here.An annual review to make sure there is a complete listing of the assets. Ms. Rapozo: We all part of the Finance Department and I think that is one of the roles that the risk management coordinator... there should be better coordination with the person in charge of inventory to make sure that we have the accurate listing of all of our assets and put them on the property schedule and get appropriate insurance to make sure that there is coverage should there be a catastrophe and I think the positions can work together on this. It is been here and there and I think with the little separation of duties now and some of the workers comp is going to personnel this particular position that is left in Finance will be able to work more on that. Ms. Yukimura: Okay. And that person is answerable or this is going to be a Division now in Finance or remain a Division in Finance, but with a more focused platform? Ms. Rapozo: Correct. On the physical and financial side, the insurance side, the self insurance side, property insurance. Ms. Yukimura: And this division will then be under the Deputy or... Ms. Rapozo: Wally would need to answer that question how he would like to structure. Ms. Yukimura: Actually we asked for the chart. Maybe that will show. Okay. And then the self insurance fund. That is not in this budget, but is this something that the Risk Management will have a say in or part of as that too determining the level of insurance for self insurance? Ms. Rapozo: The insurance premium accounts are in the I believe Finance either administrative or Accounting Division and might need to help me with that and the self insurance fund. There is a liability. I believe line item that is also in that particular pages and I cannot remember if it was administrative I think it is administrative. Ms.Yukimura: So what makes up the self insurance line item or amount?What are the different factors and who puts that together in terms of what is an adequated predicted... because that is what it is; right?It is a projected line item in the budget. Chair Furfaro: Wally, if you could come up because we have a line item in the budget referencing I think a new contribution of a million seven for self insurance and piggybacking on what seems to be some kind of a carry over. Whose jurisdiction of watching that is April 10, 2012 Finance Department p.91 really what is the question is? Who is watching the self insurance accounts? Is it risk management that remains in finance or is it risk management that comes over and goes into the new HR group? Mr. Rezentes: Finance. Chair Furfaro: Finance. Mr. Rezentes: Yes. For the self insurance part. Chair Furfaro: Okay, who is keeping their eye on that line item? Mr. Rezentes: It would be myself, another Risk Management employee. Ms. Yukimura: Where is that line item? Chair Furfaro: I know the item I referred to is on the budget summary sheet. Mr. Rezentes: It is on the second page of the budget ordinance. Chair Furfaro: On the overall budget, second page and go to the far lefthand side, page two and you will see the Self insurance line. Ms.Yukimura: Contribution to or from self insurance fund. But it is showing a negative 741,000-dollar... Chair Furfaro: Because they are transferring it over here. Ms.Yukimura: Okay.And so the amount is? Chair Furfaro: Three something. Ms.Yukimura: Three million? Chair Furfaro: I think it is three million seven or something. Ms. Yukimura: It is showing it as a contribution from capital improvement projects to or from. Chair Furfaro: From General Fund. Mr. Rezentes: Basically what our proposal is to moves the monies from self insurance fund over to the General Fund Operating Budget and we are requesting to do that. Chair Furfaro: Is that line item 3.7 or something? Mr. Rezentes: It is 741,000-dollars but there is a fund balance in the self insurance fund and I do not have that information now but I can provide that to you. April 10, 2012 Finance Department p.92 Chair Furfaro: We will send that over because I think it is 3.7. Am I right? Mr. Rezentes: I believe it is approximately that amount. Chair Furfaro: Scott, do you have that information in front of you? Oh okay. Ms. Yukimura: So you are going to show us where the self insurance moneys are in the budget? Mr. Rezentes: What we are doing is saying of the monies that we have available we are reducing that pot basically, and moving a portion of the self insurance fund money into the financial fund operating budget to assist the balancing the General Fund. Ms.Yukimura: Right. So you are miss using it from the self insurance fund? Mr. Rezentes: Right. Ms.Yukimura: So what is in it? Mr. Rezentes: That is the number I was trying to get. I do not have... Ms. Yukimura: And where is it indicated? Chair Furfaro: Here it is... It is in the Treasury Report. Mr. Rezentes: And it will be reduced to about one. Ms. Yukimura: One million? Mr. Rezentes: So, that will be used for risk manager, exposures of the County in excess of amounts that we have coverage for, liability, property, settlements, etc. Ms. Yukimura: So can you give us a record how much we have drawn on the fund for the last 10 years year by year? Mr. Rezentes: Yes. Ms.Yukimura: How do we make a calculation of how much we should put in that budget line item?And I was wondering if Risk Management had any input into it? Mr. Rezentes: In the last few years, we have significantly... I should say tap into it. It is been growing and growing for the last so many years. Ms. Yukimura: It has been growing, you said? Mr. Rezentes: Yes. Chair Furfaro: That is because we had excellent performance. April 10, 2012 Finance Department p.93 Mr. Rezentes: Solid years of not having to tap it and I believe for a number of year over year putting in about $250,000 year into the fund, and actually our prior auditors brought it to our attention"hey you have this pot of money that is building and building and you have not been utilizing it" and again we depended on... we have tapped into this fund in the current year we tapped into the proposed fiscal year 13, and I think we will have approximately a million dollars in there that could go towards unexpected settlements or property, liability settlements that are outside of our coveraged risk our covered policies. Ms.Yukimura: So it is like our open space fund which adds year after year? Mr. Rezentes: But there is no requirement to put in. Ms.Yukimura: Right. So we have (inaudible) whether we add or take out. Mr. Rezentes: Correct. Chair Furfaro: That usually comes from the auditors. Ms. Yukimura: So I am just asking -- so you can give me the track record of how much we have taken out year by year? How much we have utilized over the last 10 years? Okay. Thank you. Chair Furfaro: And you can have that Vice Chair. I will get myself a new copy.Any other questions for Risk Management? Mr. Rapozo: Janine, thanks for being here. You are the Risk Management administrator;right? Ms. Rapozo: Correct. Mr. Rapozo: So you participated in the task force regarding, I guess the separation of the administrater from the office? Ms. Rapozo: Correct. Mr. Rapozo: What is the biggest differentiation between the risk management function in personnel versus the risk management function in finance? Ms. Rapozo: The proposal, how it is going to be split? Is that what you are asking? Mr. Rapozo: What is the separation of duties? What is going to be the Finance Department's function in Risk Management, and what will the Personnel? Ms. Rapozo: So the Personnel side will be focused more on the employees and safety and training and management of the workers comp and in personnel services. The Finance side is focused more on the insurance side and I think one of the things we are looking at doing more work on is coming up with some really standardized insurance requirements for contracts so that we can transfer our liability more appropriately, and working with the different April 10, 2012 Finance Department p.94 departments in coming up with appropriate insurance requirements in their bid documents and things like that, and making sure once that happens when we do award a contract we're watching the certificates of insurance. Right now it's to the departments which is fine but we need to provide a lot of training on this and insurance can be complicated and that will remain at finance as well as the more fiscal aspects of workmen's comp. There is a payment aspect with the third party administrator with medical payments and salary payments as far as when someone is out on workers comp, so all the financial part of that workmen's comp section will remain in Finance as well as the insurance portion of Risk Management. Mr. Rap ozo: I notice this is like I think the only Division that - doesn't have any clerical support. Ms. Rapozo: Absolutely none. Mr. Rapozo: So the clerical support - where does the risk management coordinator get the support staff from?From the Treasurer? Ms. Rapozo: No. We do depend a lot on the main office of the administration and the accounting and finance to assist if necessary when there is larger projects or copying to be done and things like that, but for the most part the coordinator and myself do a lot of the clerical. Mr. Rapozo: Right. But you're not going to be there. Ms. Rapozo: Correct. Mr. Rapozo: So what happens? Mr. Rezentes: The clerical function goes to Personnel. The ones and portion that stays with us ... Mr. Rapozo: On the budget there is no clerical. Mr. Rezentes: Yes. And we would have we are different hats and have my secretary provide some of that assistance and support as well. Mr. Rapozo: Okay, thank you. Chair Furfaro: Janine, I want to tell you the comments about naming us the coinsured and the work to be done there... I have to tell you that worries me today. We release contracts and they should not be signed and unless prove for naming us coinsured for the scope of the project and wanted a red flag up there. Ms. Yukimura: I am just reading some of your successes and achievements. Just really worthy of note that our claims are down from the previous year's total and our closing rate on worker comp claims - these are worker comp claims? Ms. Rapozo: Correct. Ms. Yukimura: Was 10 8% that was over our goal of 100% and that we saved medical expenses $141,000.55 thousand recovered. That is nearly very tangible results from your work so thank you very much. Impressive to see real results. April 10, 2012 Finance Department p.95 Ms. Rapozo: You are welcome. Chair Furfaro: Can I give you the time on the floor. I am going to turn the meeting over to Mr. Rapozo. I need to step out for a minute and Vice Chair you have my Treasurer's report if the treasurer comes up.You have the full report there. Thank you. Mr. Kuali`i: I might have missed it. You might have said it. The line item on County wide training seminars. Ms. Rapozo: Yes. Mr. Kuali`i: $30,000-dollar? Ms. Rapozo: Yes and that is something that I need to work with the Finance Director on yet. I think in the split some of that money should be actually budgeted with Personnel in the division of safety and health. Mr. Kuali`i: Okay. Mr. Rapozo: Any more questions for Risk Management? If not, thank you very much. Ms. Rapozo: Thank you. - Mr. Rapozo: Next is whoever wants to come up. Is that you Treasurer?DMV?Is DMV here? DAVID SPANSKY: There are a lot of things, so what I would like to do... because you will want to go into debt service, you will want to go into cash management, you will want to go into cash flow—so let us take Motor Vehicle Registration first. Mr. Rapozo: Yes, because I think the Chair will be back and I am sure that he is intersted in all of that financial stuff but we will start with DMV. Mr. Spansky: Let us go right to the budget and we will start with Drivers Licensing and I do not know what page it is on for you... it is page forty-five to me. Overall, the budget as presented has increased one point two percent or four thousand nine hundred and sixty-eight dollars. Mr. Rapozo: Okay. Mr. Spansky: As far as the head count, you will notice that there is five dollar funded positions and those are all State funded. At the current time, up in the County funded portion, number 241 driver licenses examiner, that is vacant. We are currently in the recruitment process. Under County funded position number 308 drivers license clerk, that person will retire October 31 and that person is now currently working two to three days a week, earning their approved vacation. Under dollar funded position number 242 motor vehicle inspector, State funded, interviews are scheduled for at the end of this month. Mr. Rapozo: How long has position number 241 been vacant? April 10, 2012 Finance Department p.96 Mr. Spansky: Approximately three months. It is vacant but everyone is crossed trained so that is the actual person that takes the people out on the driving test. All these.. the Chief examiner, the drivers license inspector 268, the PMVI—they are all qualified to do that. Mr. Rapozo: Right but when do you anticipate getting that filled? Mr. Spansky: Well we are going to get the recruitment going so from day one, we are almost there and the advertisment should be going out, so usually when you work through Personnel it takes two to three months—from start to finish. If they do not have a list, we are going in with—I need this, it usually three to four month. Mr. Rapozo: To get a position filled? Mr. Spansky: Correct. Mr. Rapozo: So we should not be filling positions for the year then —new positions—vacant... we should always, we should budgeted eight months? I do not know, it is a common thread everybody taking eight months to fill a position and I do not know why it takes so long. I know that it is not your kuleana — it is a problem looks like County wide right now and we cannot get list and I am not sure why. Mr. Spansky: Again, 241 is going to be advertised soon so we are almost at the end and we will go through the hiring process. 252 —that will be interviewed by the end of this month. Mr. Rapozo: And that is the State funded one? Mr. Spansky: That is correct. Mr. Rapozo: And then the other one — how long ? In October, the one that the person is going to be retiring? Mr. Spansky: October 31. Mr. Rapozo: So they work two to three days a week? Mr. Spansky: That is correct. Mr. Rapozo: Alright.Anything else on Drivers License? Mr. Spansky: No, sir. Mr. Rapozo: Any other questions for Dave on DMV? I have one, the Taxi ordinance... Mr. Spansky: Yes, sir. Mr. Rapozo: I completely forgot about it until I got an email today and I do know—it came today regarding the taxi's but is that still under the function of... April 10, 2012 Finance Department p.97 Mr. Spansky: Yes, it is still on the function. We are trying to do whatever we can but it is just a complaint driven basis. Mr. Rapozo: It is... and how is that going? Mr. Spansky: I have not heard many complaints. Mr. Rapozo: Not too many complaints. Yes, because they are all violating the law down there so I guess nobody is saying anything. Mr. Spansky: But when they really violate it then we will get a complaint. Mr. Rapozo: Okay. So, it is complaint driven, that is good to know. Mr. Spansky: And again, we do not have a dedicated person... Mr. Rapozo: And I thought we put one in years ago. Mr. Spansky: We did years ago but then we decided promoted up and then that position became vacant again and then we went to the dollar funded and we started to hold down the funding. So then we just dollar funded it and last year I came to you with the legal (inaudible) and asking you to really fully fund it which we did and that person came on and we again promoted from within, so that is why there is vacant positions there because we promoted from within. We have not had any outside. This 252 position—this will be outside this coming one up at the end of April. A little more history, it never got there and so I pushed last year to get it funded for this real ID and the legal presence and you fund it and we filled it. So now, we are back to the same head count what we were back in 1992. Mr. Rapozo: So whatever the taxi? Mr. Spansky: (inaudible) because it used to be when the economies real good —you had seven or eight cruise ships during the week because there was a problem down there. Again, that is run by the State and I am going through my knowledge base but it is run by the harbor down there but we would get complaints that so and so is taking my ride —those things have gone up to the Mayor as well. Basically, it is complaint driven. Mr. Rapozo: I think the biggest abuse I see going down there right now because my office is actually down there now, so I get to see them every day is these guys running tours which I think might even be a PCU issue more than a County issue but they just put the paper sign on the window that says tours and as the tourist come off the ship, they will offer them a tour to the North Shore for eighty bucks and they just get in this unregistered/unlicensed and they just go. It is complaint driven and if you are not getting complaints then... Mr. Spansky: And we do not have the enforcement power. We can take away... in the system we took away your taxi ordinance but you still can operate. So now it becomes an enforcement matter. Mr. Rapozo: Okay. April 10, 2012 Finance Department p.98 Ms. Nakamura: Thank you for being here. I have a question on one of the challenges you mention in the report and number 23 and increased staff load attendance. Can you explain to me talking about some of the issues that lead to poor employee morale? Mr. Spansky: Okay. Let me -- can I read that? It says "work ratios and other increase word load make it difficulty to give quality customer service and reporting and attending and -- piling on of the leadership and government without additional resources. These facts lead to poor employee morale and hard to maintain customer satisfaction when service is poor." That's what you're referring to? Ms. Nakamura: Yes. Mr. Spansky: Okay. So you want me to go into the piling on mentality is happening? I can go back to 1991 if you want to -- so let me pull that out. Okay. In 1991 sewer payment collections were given to the motor vehicle registration area with no additional resources. In 1992 tipping few coupons and collections with landfill payments. 2001 bus pass issuance and collection. Okay. 2010 commercial refuse collections. I did not go... also we issued one after... Ms. Nakamura: So all the additional services were assigned to your Division... Mr. Spansky: One portion of the motor individual side, not the drivers license side, the motor vehicles side. The promotion I guess the one stop and you can go and pay everything. Ms. Nakamura: Right. Without additional staffing? Mr. Spansky: That is correct. I have to say when I got there there were only eight people and now we have 10. From 1992 we now have 10. We have people help open the mail and file and when we have absenteeism and back fill the windows. On a normal renewal registration is fairly easy, but if coming in with a new vehicle or bringing a new car from off island there are more things and more difficult and difficult and they can do the sewer bill and bus pass and tipping fee coupon. Ms. Nakamura: So do you feel that you need... are you requesting any additional staff? Mr. Spansky: None. Not at this point. Ms. Nakamura: Not at this point. Ms. Spansky: Not in either Division. Ms. Nakamura: And one of the discussion that came up was it a few days ago or last week had to do with the possible — the consideration about doing kiosk or satellite offices to allow the public from the north shore or west side to be able to pay some of the bills without having to drive in. I am just wondering what your thoughts are?What do you think... Mr. Spansky: Give me a minute. I did an analysis back on this in 2002. April 10, 2012 Finance Department p.99 Ms. Nakamura: Great. Mr. Spansky: I talked with Maui and I am going off memory and Maui said they did not get any additional resources and drain on the main office and you get the people there and you will work over there. Well, my union contract says I do not have to work there and I was hired for this area, and there is absenteeism and fund with two people and one is out on vacation and one calls out sick and no you have no one there and those are the circumstances. I think it's the way to go and probably where we will be at some point but you need the will to staff it and full on or partial? Only renewal with the paperwork you are okay. If you got a sewer bill you are okay. But if you have something complicated or sorry you did not put your car in storage properly. You owe back taxes of this amount of money. That gets a little complicated, but I think it is doable but not with the current staff that we had now. Ms. Nakamura: And if you had your wish list you would prefer more centralized... Mr. Spansky: I would not be the DMV Administrator. Ms. Nakamura: Just the Treasurer. Mr. Spanky: I would hire those people, an administrator like the other islands have. Ms. Nakamura: I read about that in your report, your unique title. And how many additional staff to you think to properly handle the work load? Mr. Spansky: Depends what we decide to do. Are you sending drivers licensing out and motor vehicles too so you are looking at ... Ms. Nakamura: So we decided we are not going to go the satellite route but maintain a central facility like we have now. And in your wish list what would be the proper staffing would be? Mr. Spansky: Oka . I think... I will probably get killed by the staff. However, I know on the drivers license side we have gone through the legal precedence and now you have to prove your identity as a U.S. Citizen so that has made the lines longer and you have to wait. We have to scan. We take your picture and then you only get a temporary license so the line gets backed up. We are not used to that and the citizens, public is not used to that either so that is—more staffing there if you want to get them in and get them out. However that is probably want reality. Ms. Nakamura: I am just asking what you think to properly serve. Mr. Spansky: I know they have done a facility study. I think back in 1992, when they were building the Civic center, I think the staff wanted ten teller stations on the Motor Vehicle side. They only gave us seven. Here is the problems that sometimes we get into, we get temporary employees or temporary people making long term decisions instead of letting the employee or the actual worker who knows the float, who knows what it does, help out and really acknowledge their suggestions. Ms. Nakamura: Thank you, Mr. Rapozo: Dave, you are the Treasury Operations Manager? April 10, 2012 Finance Department p.100 Mr. Spansky: No, that is Verna Yamase. Mr. Rapozo: Where are you sitting on here? Mr. Spansky: I do not sit. I sit off to myself. There is another piece. Mr. Rapozo: Which Division are you in? Mr. Kuali`i: Page 44. Mr. Spansky: The Treasury staff is two people — myself and a accountant. Mr. Rapozo: Okay. Mr. Chang: In regards to the taxi... Can the County regulate the rates for cabs? Mr. Spansky: No, we do not... you have an ordinance out there that says you got to get it coded, it is ten dollars for this... there is an ordinance. I do not know if I can do it off the top of my head. Ms.Yukimura: There is an ordinance. Mr. Chang: So, would the cost of gas and the cabs that are out there picking up the fares, if there is a request to raise rates, what process do they go through? Mr. Spansky: Well, to you. Mr. Chang: Are they under a union? Mr. Spansky: Not that I know of. Mr. Chang: Okay, so if there are concerns, they would go to the Council? Mr. Spansky: Probably. Ms.Yukimura: Dave, are you saying that we needed ten teller stations back in 1991? Mr. Spansky: I think the original proposals was to make 10 teller stations on that side. Ms.Yukimura: Are there room for 10 teller stations? Mr. Spansky: No. Ms. Yukimura: I mean when we moved in there, it was a huge expansion compared to where we were down at the old Hale Kaua`I building. a . �. A§MilitiWINONIONNIIN April 10, 2012 Finance Department p.101 Mr. Spansky: What could have been done more is that we have a beautiful lobby there, you could have probably come out six or seven feet more in the lobby with something like that for more space. Ms. Yukimura: Probably. Mr. Spansky: And then the drivers license side, it is a nice thing but its open counter and on the motor vehicle registration side, they are standing up and they got a little barrier and a little winder to close. If you are getting your drivers licenses, you sit down and they are sitting right across the table. Maybe at... it has not been a safety risk but with some of the thing s... with people standing in line... the y g et a little more... and now I do not have the right documents and now I am mad... at some point there might need to have a barrier there. Ms. Yukimura: Okay, what you are doing is looking at improving the process, right? Mr. Spansky: Well the process and the volume. If I want to compare... Ms. Yukimura: Right, so you are looking at how to handle this increased volume? Mr. Spansky: Right. And if I wanted to compare with somebody else, my increase volume is head count. The lines are shorter, if you do a comparison... because the other motor vehicle areas, they only do vehicles and their staff is three times in size. Vernas areas, there is ten people in there. If you go to Maui, there is thirty-four, if you go to Big Island, there is thirty and they just do cars. Okay, now if you got ten thousand... if we get eighty thousand cars, so ten people divided by eighty, they are doing eight thousand transactions but then you add on six thousand bus pass collections, you add on twenty-five thousand sewer bills, now you are up to per head... and I am counting managers and everyone... Ms. Yukimura: I love that you are doing this kinds of analysis and I want to invite you and your division to make proposals about how you can make this diversity of permits and fee collection and the issues that you raised from people waiting long in lines. It maybe time now to propose some renovations especially through IT procedures we can get rid of that a very underutilized if utilized at all one stop shop structure and move it out and look at Real Property and some others did if you encouraged online fee paying or other payment by mail or those kinds of things, how you can also reduce the volume but it takes sort of a comprehensive analysis which I do not think we are going into right now. Mr. Spansky: I made a proposal to the Administration and they agreed, I am going to use the one stop shop as soon as I can get a computer in there and get a panic button and try to do some of the more simpler things—like if you need a bus pass, and now, you can mail in your stuff, you can use the internet or walk in. Those are three options right there. Ms. Yukimura: And the bus — as Transportation Committee Chair, I know that the bus system was talked about it recently talked about being able to sell bus passes in store fronts. I think they are going to work with some vendors who have already told me that they are willing to sell bus passes in different parts of the community, so that might bring down your volume as well as improve customer servicing so people do not have to come into Lihu`e. Mr. Spansky: Sure. April 10, 2012 Finance Department p.102 Ms. Yukimura: Great that you are thinking about it. Mr. Spansky: It is not going to be tomorrow, there is something's have to get done, but we are going to try to do that. Ms. Yukimura: Good. Mr. Rapozo: And that will save some. Mr. Spansky: I got to worry about line policy. Mr. Rapozo: Well you are going to have to set it up in a way where... Mr. Spansky: Because there are going to be end of the month... Mr. Rapozo: Well, I have been there and it is a mess. Mr. Spansky: It is human nature to wait till the last minute to pay your bills. Mr. Rapozo: To do an online renewal, is there a surcharge as well? Mr. Spansky: Yes, any online payments there is a... just to use the service, you automatically charged 2.50. If you pay by echeck, it is Y Y g y p y y a dollar. If you use a credit card, it is 2.2 percent and that is passed on to the customer. Ms. Nakamura: If we were to calculate the amount of labor used to process manual fees, what would that come out to? Mr. Spansky: Well, (inaudible) study. Historically when you walk in to pay... or mailed your registration, you bring in one half, the girl walks to the back gets the tag and staple it on there and you pay and you walk out. Now, we can print it all out on one piece of paper and that is why you only get a smaller version of what you are used to getting. The mailings cheaper there and that is a little bit of the time motion study. If they talk story, it takes longer. Ms. Yukimura: One last suggestion having a rover person that they have at the airlines to go and say, do you have your right documents to pre people so that you do not need a station but you could use some people walking around to help shift through the line. Mr. Spansky: When attendance — everybody is there, Drivers License will (inaudible) to make sure they have got the proper— do you have this, do you have that? We do—do that. But it all takes attendance. Ms.Yukimura: Make a proposal after you have done the analysis. Thank you. Mr. Rapozo: Any more questions on DMV, taxis, anything else? If not, we will go right into the Treasury. April 10, 2012 Finance Department p.103 Mr. Spansky: If you go back to motor vehicle registration, that rolls up into the... you will notice and it is page 51 to me and I do not know what page it is to you represents... because this will roll into the Treasury reports and make (inaudible) a lot of answers. What we did back in 2010 we hired a consultant, for compliance issues and bonds to make sure we are not in any problems with the IRS, spend down things and so forth, so we have that, so we are not in any trouble. Some of them -yes, we do not spend down in a timely manner. Okay. So let us go to Treasury now. That is perfect. Mr. Rapozo: We did not spend all? Mr. Spansky: No. We have not made - they like to go into we have this two year, three... but we have to admit what you have to think of is November from 05 to February of 2010 the County borrowed $140 million. Mr. Rapozo Right and it is quite a bit. Mr. Spansky: Yeah. So that is quite a bit so spend 54 million a year. Mr. Rapozo: Have we done that? Mr. Spansky: No. Mr. Rapozo: Are we in trouble? Mr. Spansky: No, I have a document here that says we are not in trouble. Mr. Rapozo: Because I keep hearing that and more specifically with the recent bond. Mr. Spansky: Right and priority base. No payments have been made or required to be made to the internal revenue service with connection with the bond. Ms. Yukimura: Can you send us a copy of that? Mr. Spansky: I will send it to you email electronically. Okay. There has been two of them. This is dated August 16th in the last fiscal year and the 2005 bond and met that criteria when we have to report in our bond covenants but now we are reporting yearly so we know we are not in any situations or problems. Mr. Rapozo: Okay. So as far as you are concerned we are in good shape. Ms. Spansky: As far as any fee. Now, do you want to borrow money and not live in the house? Mr. Rapozo: Not me and that is my fear and projects on the bond flow I am concerned we're not going to get them out on time but it's not the 2005 issue. It's the most recent one. Mr. Spansky: Right. I guess I will start off with I know there is this thing about debt service so Scott, I have some handouts for you people. Okay, before you jump out of April 10, 2012 Finance Department p.104 your seat that is the County's—that is the people on the hook and County of Kaua`i and Department of Water. This is their debt service per year. The dark line is the principal. The light line is the interest. So you see this spike up in 2014 and when the build America bonds principal kicks in.You are paying interest only for the first three years. Okay. Next slide. I just give you a table to give you an idea of who is who. Okay. There is a county total. Okay. So the county principal includes a piece of golf in there for a million dollars, a million two and the rest is general obligation bonds. So the top right corner says County principal and County total. Then you have water principal, water interest and water total and total principal and grand total so the County's portion is over $118 million of principal. Interest is 475 and total of listed here.You can follow the plot. So just for the Chair, this is the County's debt service including water. That is overall debt service. Page 2 I will give you a tabular form so you can see who is who. Chair Furfaro: I wanted to get some kind of a mark up as we look up the year coming up where the debt service jumped pretty substantially. If you could give some of the highlights that I would appreciate it. Mr. Spansky: I do not want to throw anyone under the bus or do anything and go back to page 101 and debt service expense for 2011. 9.6 million. There is another line transfers in, 8.5 million. Okay. There is a transfer out and a balance. Okay. Historically I do not know - I was not involved. They asked for the debt service schedule. This is how it is reported. So when it was asked today what is the debt service. It is 8.5 million. I think as a policy- I am not sure but you take the 8.5 and accruing that and plus this and the principal and add those together and subtract out this year's principal and now you came to the 9.7. Chair Furfaro: I am good with that and wanted it explained to the group. Ms. Spansky: For everyone's education that total there on the county side is all county plus there is a 1.2 still of golf out there so that is in that total. You might have a total of 117 I heard you say. That is correct and the water total is in that-I mean the golf. Then the third chart I just give you a break out. Now this, is just the county portion. This is what it is looking like and I think Wally, mentioned a couple of times and close to $10 million until 2026 and drops off in 2027. Again the dark shade is the principal. Light shade is the interest. Chair Furfaro: Dave, this is the current particular presentation, so we do not know after the trip to refinance, this chart will change a little bit. Mr. Spansky: It will not change by much. You are looking at annual savings in the $100,000 to $130,000 range. Chair Furfaro: We were given $124,000 so far. Mr. Spansky: It is jumped around and early it was high and 129 was the latest but that's a week ago and the market has made a turn around as far as bond sales are good. Mr. Rapozo: But the refinance extend out? Mr. Spansky: It is one for one. Maturity for maturity. Keep in mind it is the 2005 bond and first 10 years are not counted and financing through that time and 13 years of reduced on the refinancing it is in the money. It is one for one. We are just matching the maturity. _ April 10, 2012 Finance Department p.105 Ms.Yukimura: Does that mean of 13 years of$100,000 savings? Mr. Spansky: Yes. If we did the refinance. The next slide just shows water portion by itself so you can get an idea. Ms.Yukimura: So it was $120 million bond issue - 60 for County and 60 for Water but Water has a lower payment. They are at 6 million rather than 10? Mr. Spansky: We have other bond issues out there. They paid off theirs. They have some smaller ones, but historically they have—since I have been here they would get new money like 3 million, 5 million. They had the 2020 plan and things came into play and borrowed the 60. Historically, since I have been here in 2020 I think we borrowed 22 for the EOC and then we borrowed 9 for some other things in 2001 and went back to market in 05 and we borrowed 42 of new money. Three something for water and the balance for 38 something for the county and went back out in 2010 for the 60/60 or the 120 million. Ms.Yukimura: To the extent water uses bond money and replace leaks and replace aging infrastructure that is going to result in savings in terms of pumping costs and so forth which then helps pay off. Depending how we use our bond money and whether there is any actual return on investment it will be more intangible return on investment as long as we spend that money carefully in terms of park improvements or road improvements or so forth, but they might not result in financial savings. Chair Furfaro: I think the difference in the graphs you have to point out. We, the County, are real debt service is about 121 million all together and pay it down to 118 million as Dave, explained to us they have a few small pieces hanging out there, and thus the difference in what the payment schedules are. Mr. Yukimura: Right, the pay back on their debt. Mr. Spansky: For example we borrowed 120 million. Interest rate was 3.3 so easy to say at 60 million times 3% and the interest is 1.8 and after the third year your principal kicks in and that is why you see the spike, and then levels off and drops down. Ms.Yukimura: 14 years - 15 years. Mr. Rapozo: Yes.Any questions for Dave and the debt service presentation?I mean I do not know Dave. Is it the right time to be borrowing money? Mr. Spansky: We are not borrowing, we are refinancing. Mr. Rapozo: I understand that but thinking about a future bond float. I don't know if you are a financial adviser but... Yeah. I mean the percentage of debt to assets in the County. Mr. Spansky: We are fine. Chair Furfaro: We are in great shape. Mr. Spansky: We have 15 percent of your AV values. If we are talking billions - we can borrow almost$2 billion based upon the State's calculation. 15 percent of your -not that but just-you only have 67,000 people so put another speck. Go back to the table. April 10, 2012 Finance Department p.106 Okay. Look on the left hand corner County principal, 118 million. So 67,000 people to 70,000 divide that by every man, woman, and children here, 720 bucks.And then everybody's got water needs water so add water so that is every thousand dollars for every man, woman and children and up to that if you want to pay the debt off today. Ms.Yukimura: So what this tells me that the bond money that we do have is really pressure and we cannot afford to not spend it on your highest priorities and where we can if possible get a return on investment, the largest return on investment measured socially, economically and so forth, and we cannot afford to waste it. I mean I consider the fact that we have not managed our solid waste well and have to spend $9 million to retrofit our landfill as money we could have spent otherwise if we had done timely diversion in landfill development. Mr. Rapozo: I know Dave is not prepared to answer that. It is not a Treasurer's question.Any more questions for Dave? Chair Furfaro: I am wondering if you could summarize -you know with the bond partners and so forth we have a double a plus with two of the... Mr. Spansky: We are double A all a way across the board. Chair Furfaro: I thought we got to double a plus. Mr. Spansky: We maybe. That means we are a very strong credit risk. Chair Furfaro: Yes. And this last trip to the west coast, we actually got our credit rating upgraded a little bit. Mr. Spansky: It was reaffirmed from the prior one. There was no take away. Chair Furfaro: There I am with the double a plus. I think there was a little take away I thought anyway. Thank you very much for the bar graphs and everything. Ms. Yukimura: In converting the cap to this CPI would that influence our bond rating or show better fiscal management? Mr. Spansky: No. What the bond rating what it is looking at you know, your strength, what kind of things -what they really look for. Do you have the ability to pay? Do you have reserve?That's the biggest thing they are looking for. Is there something there? Ms. Yukimura: And does not it affect the ability to pay to have a more flexible cap? Mr. Spansky: I do not know. That's the biggest money maker I don't know go into that. I'm just the money management.You bring it to me I will manage it. Mr. Rezentes: The more you structure it has been brought up by bond under writers but the fact that our system that is in place today with the cab only involves one category of real property and taxes or assessment. It is not as concerning to the markets as say a California model where their entire system is bad under the cap. Had we developed a program that caps across the board or in more than one category?It will be a concern for the market because you April 10, 2012 Finance Department p.107 would not have the ability to make appropriate changes on the dime to as needed when needed to address you know revenues, spikes and valleys, so the fact that we - again, the fact that we have one category is - I think some concern, but the fact that we have the vast majority of the other categories that are not tied in that way you know we are okay. Chair Furfaro: The fact that the changes are now tied to the consumer price index going up to 3.7 and never falling below two that helps a little bit. Mr. Rezentes: I would think. Chair Furfaro: Just a nudge but it helps a little bit. Mr. Rezentes: I would think it is better in their eyes and perspective and it puts us in a little better position to at least now we are moving with the economy and the market, yeah. Chair Furfaro: Does anyone else have any more questions for Dave?I just want to say thank you for being here late and presenting us some great information. I think this brings it to the end of the day for finance.Again we rescheduled three groups on April 20. Please check your calendars and we only had time blocked between 8:30 and 10:30 but now it looks like we filled in the whole day on April 20 and this is based on the fact that we gave Finance a little more time today. The budget review was recessed at 6:47 p.m. April 12, 2012 Police Department p.1 The departmental budget review reconvened on April 12, 2012 at 9:04 a.m. and proceeded as follows: Excused: Councilmember Bynum POLICE DEPARTMENT: Chair Furfaro: We are ready to go. POLICE CHIEF, DARRYL PERRY: Good morning Chair and Councilmembers. Chair Furfaro: Good morning. Mr. Perry: What I would like to start off with is a power point presentation that gives... Mr. Chang: Excuse me can you please state your name for the record? Mr. Perry: Oh yes my apologies. Darryl Perry, Chief of Police for the County of Kaua`i. I will start off with the power point presentation and what will do is I have our team members here and will start with the Administrative Bureau and then will go into the patrol bureau and then the investigative bureau. The reason why we're doing that is we want to make sure that all the details or any particular information you want we will be able to provide to you. Also our main player and this is a happy day, she's in the hospital I don't know if she gave birth but she went into the hospital this morning, Denise Arruda and she's our accountant. She has helped to put all of this together so we're going to see if we can do a good job without her but she will be sorely missed. Chair Furfaro: But for a good reason. Mr. Perry: For a very good reason. Chair Furfaro: Very good reason. Okay Chief I'm going to relocate myself while you make your power point presentation so go right ahead. Mr. Perry: So this is our 2012-2013 budget and I would like to start off with our mission statement and our mission statement embraces the values of Pono. We have 3 major principals by which we live by and it includes respect, integrity and professionalism. The Police Department is about service, delivery and doing the very best job we can for our community. We intertwine that with our community, with the Aloha spirit as it is described in our HRS. We also have a vision and our vision talks about a community that is free from the fear of crime and that our citizens trust and believe that we will do the very best job possible, providing the best services possible. That's why our budget is so important to us. So let's start off with our official goals and later on I will talk about our wish list that we had. Because some of the Councilmembers asked me before what do we really want as opposed to what's up here? We will start off with recruitment; our goal is to fill as many positions as we can. Currently we have 26 vacant positions and we'll get into that later on by having 2 recruit classes. The first recruit class will begin this year on May 1 and will have 9 new recruits. We started that process actually about 2 years ago and we had planned to start the recruit class last year but that didn't come about because of the processes in the way we do the recruiting efforts and also the training. The second goal is to have a Citizen's Police Academy, we want to add 3 graduating classes. What that does is it provides our citizens with a means of understanding with what police officers and what the police department in general goes through. We will talk about such things as search and seizure, will talk about such things as what do you do in a scenario if you are confronted with a domestic violence case? What do you do if someone comes up to April 12, 2012 Police Department p.2 you and reports a crime?How do you handle it and how do you handle it and how do you appease the individual and what is the process it takes to move that case forward. It will be an opening experience and we're also looking at having the people that participate in this go through some driver training and perhaps the use of deadly force too. The third major goal is accreditation and we have John, Lieutenant John Takamura acting Captain and Patrol will be giving a brief overview at the end as to where we are in the accreditation process. That's an important process that will help this department and by extension the entire county. For our operating budget let's compare 2012 with 2013 and as you can see in the salaries and wages are approximately the same, about 53-54% of our total budget goes towards salaries. Benefits also is about 34% and I won't read it to you as you can see it up there but we took a slight decline this year in our overall budget as compared to 2012 and this is basically what it is. It's a 1.6 percent decrease or four hundred and fourteen thousand dollars. There was an overtime reduction which included five hundred forty six thousand, four hundred and thirteen dollars at twenty nine percent. Salary reductions the vacant positions there was a five percent across the board reduction in our vacancies for our salaries which total six hundred and seven thousand dollars. We currently as I mentioned have twenty six vacancies, sworn positions and seventeen civilian positions. Three of the positions are temporary grants which are dispatchers and six are part time crossing guards for our elementary schools so those are vacant. The promotions we will have promotions that will take place on April 22, we will be promoting six sergeants to lieutenants and ten officers to sergeants. The list that we have her concerning the vacancies won't be accurate after April 22, because everyone will be moving up and the vacancies will be on the bottom so we'll have to make corrections on those. Our priority list is we wanted 2 forensic crime scene technicians, we also wanted 16 patrol vehicles and the patrol bureau will get more into that as to the reasons why we needed those vehicles for the forensics ISB which is Investigative Services. We will talk about the reasons for having Crime Scenes Technicians.Also 3 marked vehicles for our SRO's in the schools. Mr. Chang: SRO's? Mr. Perry: Excuse me, School Resource Officers for our 3 high schools. There were 2 positions in this current budget that was dollar funded from last year and that was the Deputy Chief Secretary Position number 345 and Police Records Clerk 342. In this budget it was funded for 8 months but it was re-described so that we could have the 2 Crime Scene Forensic Technicians. In other words we didn't gain anything any positions as a matter of fact we had lost those 2 positions are lost because they are being re-described into the Crime Scene Forensic Technician position. Mr. Rapozo: Mr. Chair can I just ask a clarification question? Chair Furfaro: Yes go ahead. Mr. Rapozo: Chief the re-descriptions were your re-descriptions? Was that your request? Mr. Perry: No it wasn't. Mr. Rapozo: Okay I will get into it later but the Records Clerk was my biggest concern. Thank you. Mr. Perry: We will also be losing one position and it's the Personnel Clerk II, SR-13 Position number 346 and that would be Sherry Nakashima. She is our back ground assistant and I have a list of her duties and responsibilities. She will be moved to the new Human Resources Department starting July 1, 2012. My understanding is that she will continue to help with April 12, 2012 Police Department p.3 our recruitment efforts. We have lobbied the Mayor's office to retain Sherry but my understanding and speaking with Janine Rapozo she said that Sherry will still be helping the Kaua`i Police Department and perhaps providing more resources to assist in recruitment efforts. There are issues there concerning that because and we'll get into that later on. So at request this was actually our wish list, we have requested as previously noted 2 forensic crime scene technicians to process our crime scenes. Internal affairs we asked for 1 Lieutenant, 3 Sergeants and 1 Senior Clerk and the justifications I have it readily available for you. We also wanted to expand our Youth Services Programs throughout the island; island wide and we requested 2 police officers toward that effort. The Accountant Procurement and Supply Specialist is a civilian position and the reason why we wanted that position is because the officers in all bureaus are doing contracts, contracts and other financial types of assignments so that the department can get whatever we need. In terms of services, in terms of equipment and alike and this has put a great strain on our particularly our Administrative Bureau. Many, many hours are spent and we're not experts in this field and dealing with finance and procurement has been a very difficult at times because we don't know what needs to be done until it gets kicked back to us and we have to do it over and over again. So what we wanted to do was to have someone who is an expert in this area that can help us to expedite this process and relieve the officer's form doing this type of duties so that they can really do police work and supervise, unfortunately that wasn't included in our budget. I understand talks are now in place and have been in place for quite awhile with the Mayor's Office to perhaps alleviate this situation not only in our department but in other departments too. We also asked for funding for the Deputy Secretary's Position the one that was re-described and also the Records Clerk's Position that was re-described. We asked for those positions to be funded because initially it was dollar funded. Finally we had asked for beat expansion and what we wanted to do was put two new beats and this is a part of a long term strategic plan to have beats throughout the next twenty five years so we actually double the beats. For this phase we wanted to have two new beats put in place which requires a lieutenant, 3 sector sergeants and 12 officers. I understand that we have to fill our vacancies first or else why give us all those positions and so what we've done is we've well let me move forward on this. As I mentioned before the 82nd recruit class will have 9 members on May 1, but for the 83rd what we have right now is 160 applicants which was reduced 117. We are looking at processes to expedite this the way we do business, how do we get to speed things up? The Department of Personnel Services has been helping us on their side but it's the background that is our biggest hold up here. So what we're doing right now is revamping our process and we have a whole new team in there in the Administrative bureau and acting Assistant Chief Kaleo Perez can go into more background on how we're going to accomplish that. The main problem is our background investigators. We want to reduce the training the training is now 6 months but we want to reduce that number and also reduce our field training officer program.A better word for that would be on the job program after you finish recruit class you're riding with a season officer who will train you or evaluate you on how you're doing and give you recommendations on how you can improve so that you meet a certain standards. Before after recruit class they used to just throw us on the road and you're on your own but now we have mentors to help you along the way. This program is about 4 months and we're trying to reduce that a little bit more so from the time a person applies until the time he is actually on the road by himself, you're looking at maybe about two and a half three years time. We are really trying to reduce that because people that apply are saying that it takes too long I'm tired I don't want to wait any longer so they look for another job. We are doing our very best to expedite this process. In terms of retirement so far this year we 4 have retired senior officers and we expect another two by the end of the year. So right now we have 26 vacancies it may be up to 28 by the end of the year and for 2013 we expect 10 more, 2014 if no one retires in 2013 then we'll have 13 by 2014 I:' April 12, 2012 Police Department p.4 but by 2015 and now those are eligible to retire. By 2015 if no one retires in the previous years, 2013, 2014, by 2015 we'll have 20 officers who are eligible to retire. Chair Furfaro: Chief just so we're all clear, the eligible retirement for the police department is after 20 years? Mr. Perry: Twenty five years. Chair Furfaro: Twenty five years. Thank you Chief. Mr. Perry: So we have a double edged sword here if you look at the other departments particularly in Honolulu and Maui their duties and responsibilities are well defined. They have people in the positions to handle those duties and responsibilities, unfortunately on Kaua`i because of our vacancies and our inabilities to have more officers in the field our officers are doing double duties. They are doing a lot more than any other county that I know of in terms of responsibilities. So by the time an officer reaches twenty five years he's more or less or she's more or less ready to leave. They are absolutely burnt out where as in Honolulu and Maui because they're so specialized and they don't have to wear a number of hats their longevity is much better and they normally stay for 30-32 years, 32 years is the maximum for your retirement system benefits. They usually stay for 32 and they retire than they find another job like TSA security or something else. This is just an overview on our plans for the future in about 20-25 years perhaps or maybe longer we're hoping to get these numbers of(inaudible). There's 21 beats up there but that's for 20-30, 20-35 but the boundaries have already been made so the next Chief that comes in and as the vacancies are filled they can get new positions they can just plug them in. It's all set for whoever takes over for the next 25 years. I did this a couple of years ago and I wanted to reaffirm this. This is a statement for the first time in a long, long time I'm excited for this department and our employees. We have tried for many years to get projects, equipment, improved facilities, more personnel you name it but limited funding prohibited our progress. When I first accepted the position of Chief my goal was to make operational improvements within the department to give better service to the public. Over the years I found the demands of this position are many and that it is one of the most challenging jobs to undertake. This was by Police Chief Calvin Fujita in 1994. Eighteen years ago and things really haven't changed much it's still challenging and we still have budgetary concerns, so budgetary concerns will never go away it will always be here. So with that said I would like to thank you and then we can go more in to details of the budget. Thank you very much. Chair Furfaro: Thank you very much for your presentation Chief, I would like to ask a couple of quick questions just to... you know our rules are to limit our questions to 2 or 3 per member and go around the table so that we can share time equally. During your time as Chief, what discussions have we had with personnel as to some new techniques for recruiting? Have we talked about the possibility of when a new recruit graduates we might help them with anything from the closing cost from a house to certain bonuses for completing the class and being selected? What have we had in a way of discussions with personnel to improve recruiting efforts especially as there is downsizing in the military now and that seems to be a real possibility to look towards individuals form the military, the military police and so forth in a way of recruitment. Could you in a little nutshell tell us what kind of ideas have come out with personnel about? Mr. Perry: We've tried to target Mainland actually Mainland Officers who's departments are downsizing too but we haven't had much success and nor has there been a lot of interest. We have advertised on the internet, media, media meaning the radio and newspaper and DPS has stepped up to the plate and assisted us in processing the application on continuous basis so that there's no lag time. They are also given the test on weekends on Saturdays so that it doesn't April 12, 2012 Police Department p.5 have to infringe upon the applicant during the week day. In all fairness to them the issue is not the number of applicants we've been getting because we've been getting over a hundred plus applicants. The issue is the quality of applicants that we're getting and the quality of applicants hasn't been that high on average we had that 116 pass the test and it was referred to us already 9 had dropped out and as we go through the physical fitness section we'll again weed out more and when we do our backgrounds psych evaluations it will weed out more. By the end we will probably have like this class 9 or 10, it's less than 10 percent. So it's the quality of applicants that's the issue and we've also gone into the colleges and gone to fares to see if we could get really good quality applicants but it's difficult. All of the departments throughout the nation are experiencing that same issue and I think recently they had an article that was in the advertiser about the tinning blue line which indicates which talks about the difficulty in recruiting officers. Chair Furfaro: I saved that article; I got it downstairs I was going to bring it out during our personnel session this afternoon. That's the one showing the gray boxes for those that are retained and the blue boxes for those that are departing. That's the one right? Mr. Perry: Yes. Chair Furfaro: Okay I have that. Mr. Perry: So it's a difficult thing to recruit and I have to admit when we came in, when I came in back and Mel when you came in, the process wasn't as stringent as it is today. The reason why it's that way is because some of the officers when they came in they said this is not for me and so they left so all the training and all that money that we spent to train them went down the drain. Chair Furfaro: Sure. Mr. g for Perry: So now we're looking people that meet our values,p p , our mission statement and so it's been difficult. Chair Furfaro: How do we compare to other counties on the line of difficulty in recruiting qualified candidates?Is or standards much higher than let's say Maui, Big Island? Mr. Perry: Maui for Honolulu it's about the same for all the islands but I think Maui tried to expedite their process and unfortunately some of the officers that came in got into trouble immediately off the bet because they weren't screened properly. That led to liability issues so you have to pay later on for not doing proper screening and that's the difference with this type of work that we do.We have to screen properly or else we will have some issues down the line. Chair Furfaro: What is your manpower for screening? Who does the screening? Do we have enough people? Do we need to contract it out? Do we need to bring retired officers back to do the investigations?What are the mechanisms that you use? Mr. Perry: What I will do is acting Assistant Chief Kaleo Perez is in charge of ANT and I could answer that question... Chair Furfaro: Well I will park the question into Kaleo as an opportunity to come up. Okay I've has my 3 questions so I will pass it on to Mr. Rapozo. Mr. Rapozo: Thank you Chair and thank you Chief and thank you to all your department staff for doing what you do. I just want, because I only got 2 questions or 3 and the slides are numbered but the re-described positions I don't know if you can go back, Scott can you go April 12, 2012 Police Department p.6 back to the slide towards the beginning. Now the 2 Crime Scene Forensic Technicians are those positions the Crime Scene Forensic Technicians, are those positions you requested? Mr. Perry: Initially yes. Mr. Rapozo: Okay and as new positions? Mr. Perry: As new positions. Mr. Rapozo: Okay and the Administration re-described your Records Clerk and your Deputy Chief Secretary to accommodate your request? Mr. Perry: Yes those positions were dollar funded. Mr. Rapozo: Right and I still don't understand why they were dollar funded because I think especially the Records Clerk and I think that is my bigger concern is the Police Records Clerk. I believe ever since Estelle left that position was never filled correct? Mr. Perry: Yes Estelle's position was a Supervisor Position, this position wasn't filled and this is a very, very important position. Mr. Rapozo: And I speak from experience I had on occasion because of my other job to communicate with your re cords people and more specifically with legal documents but it seems to me that they are back logged and they will never catch up with the current system. I'm troubled that we are going to re-describe those positions and basically do away with the Police Records Clerk. I'm hoping that we can somehow get that position back in there and I can understand and appreciate the need for the Deputy Chief Secretary. I don't know how Gayle can do the work that she does for the Chief and the Deputy and I'm assuming that's still the structure. Mr. Perry: She's also a travel agent. Mr. Rapozo: She does all the travel? Mr. Perry: Yes. Mr. Rapozo: And your department does have a lot of travel. The other question that I have and for now I will stop with the second one it's another concern it's that Personnel Clerk that's going to be transferred over to H.R. and again the Police department is a little different animal than your traditional department. Your collective bargaining agreement is like the Fire Department is very different from your HGEA and UPW, not that anyone is more important than the other but I think when you look at the departments that have shift work, the departments that have all these different allowances and what you said in your testimony you said that H.R. I guess said that she would be able to offer more assistance to KPD in the recruiting area and that's what you were told by H.R.? Mr. Perry: Yes. Mr. Rapozo: I don't know how that can happen if their taking a body out of your department and putting them somewhere else. I don't see how that person can offer you more assistance. I just have to assume that, that position is going somewhere else to do other functions. So she's going to have or he's going to have less time to focus on their overall responsibilities so I find it hard to believe that that person after being relocated to another department will have... I guess that makes no sense to me is what I'm trying to say. One of the things that Police Officers and for me April 12, 2012 Police Department p.7 anyway the retention of Police Officers is making sure that they get all the benefits, all the resources so that they get paid properly. Making sure that their activities are accounted for and I just don't want to see that function get lost because that position is going to be moved. I'm going to have a real big problem with that position specifically because I believe we all have to look at and recruiting is very important but also retention. We have to make sure that our officers are being serviced properly in all facets of the job, not just bullets and guns and those kinds of things but the day to day, just their daily needs of the Police Officers. Again like I said I obviously the bias is apparent because I believe public safety should be the priority it should be in all that we do. The other thing is when you talked about retirements we are all aware with that new retirement reform that being tossed around and you can expect and in my opinion and that's my question my final question I lied I have 3. Do you anticipate even more retirements? There giving that reform a 3 year window and its going to take 3 years to implement this new retirement laws but wouldn't you agree that when that kicks in you're going to see major departures from the departments throughout the state? Mr. Perry: Yes. Mr. Rapozo: And that's something that we're going to have to really, really... Mr. Perry: Well let me get back to the background, well I call Sherry the background Clerk and I have four pages here of her duties and responsibilities which I agree it will be difficult for her to be away from the office and conduct her business. Mr. Rapozo: You said background but you're talking about the Personnel Clerk? Mr. Perry: Yes the Personnel Clerk. That's what we call her because she helps with the background. Mr. Rapozo: Background assistant? Mr. Perry: Yes she helps with the background but you know along with our recruitment process there are nuances within the department that goes on, daily activities and something that you have to clarify. Somebody who is right next to you is easier to converse versus someone that's away from the office. The other concern that we have is that again as I mentioned all our employees not only the sworn go through a stringent clearance process and the reason why we do that is because of the sensitivity of the work that we do and he information we receive from all of our applicants. Sherry, excuse me, Ms. Nakashima went through that process and she was cleared. Now and I'm not sure if Human Resources will screen their employees the way we screen our employees to make sure that there's nothing in their background that would cause us to believe that some information may be compromised. That's very important and that's something to consider. So if it was up to me, yes sure I want to keep her as I would want to keep the other two positions and get the two new Forensic Specialists Technicians. Mr. Rapozo: Thank you. Chair Furfaro: Mr. Chang. Before I do Mr. Chang I just wanted to make an announcement that Mr. Bynum had been in contact with the Council Office and will be late today. Mr. Chang: Thank you Chairmen, Chief good morning? Mr. Perry: Good morning. April 12, 2012 Police Department p.8 Mr. Chang: You're Technician as far as forensic the two that you're requesting. Would that come from within the department? Mr. Perry: Well that would be the way it's structured now if this budget is approved then the 2 positions will be re-described and so it will be, I guess you're correct within the department. What we wanted was 2 new positions; keep those positions so that we can fill them especially the Records Clerk-342 & 345 were the ones that we wanted to maintain. Mr. Chang: Three forty two and three forty five? Mr. Perry: Yes. Mr. Chang: I want to say congratulations of your appointment of 10 new Sergeants and 6 new Lieutenants. I like that upward movement for morale and just I think that's great.You mentioned a little bit about the reduction of five hundred forty six thousand, four thirteen reduction of savings, is that correct? Mr. Perry: Is that the overtime? Mr. Chang: No the reduction that you have the 29% bottom line. Mr. Perry: Yes overtime. Mr. Chang: You know yesterday we had the County Prosecutors Office was mentioning the pay scale of some of the Sergeants, Lieutenants, etc... that was far superseding the Deputy or the Chief itself. Mr. Perry: Yes. Mr. Chang: Those statistics were quite alarming if you will. What are we doing, do we monitor how the overtime is used or do we... is that on a seniority basis or how does that work to justify the overtime? Mr. Perry: The overtime is monitored by the Supervisors but when the need arises and with respect to the case we have late cases, we have felony investigations; we have search warrants that need to be conducted. We also have special projects that we do especially when we have storms and stuff. One of the major cases when we have homicides or shootings, those involve a number of overtime requirements not to mention that if officers are injured or sick than we have to back fill. What we want to make sure is that the public safety isn't compromised as well as the officer's safety is not compromised. So we monitor our overtime, we scrutinize to make sure that every dollar that we spend is justified and it goes through a process as it starts off with the IOC or the Sergeant and it goes up to the Lieutenant and the Captain. We make sure that we get the most bank for our buck it's not something that's looked on frivolously. Mr. Chang: Just out of curiosity and for the sake of the public I know that these officers a lot of them want to work and it's not about overtime but they want to work because when you're on it you're on it. But I would imagine that a lot of the stuff that the ranking file does on a daily basis or on an hourly basis when it's a little bit like a de-briefing or when you really got some time; do we have people that the officers can talk to? Is there like a psychologists or someone that they cannot just vent but share their feelings on a mutual basis that they can just get out and vent if you will? For the sake of the sanity of what the men and woman do 24/7, do we have that kind of support for the people that we need to support? April 12, 2012 Police Department p.9 Mr. Perry: We have peer counseling and we also have the Employee Assistance Program with the County but in many instances and we're working on that right now with retaining a psychologists so that that person can help us- with debriefing situations. For example when we had the recent shootings we also have the chaplain program that helps us to talk it out and then we have debriefing sessions but more or less what we need is real professional to come here that know how Police Officers think and how they respond. If you look at officers they are like marines or the military where I don't need help, I don't need any help but they really do because they're hurting inside. So we are structuring a program right now that helps them to be in contact with a psychologists, we're looking at contracting one in Honolulu so at any moment we can fly him down and help us with our debriefing session and it can be confidential. I think HPD has 3 or 4 on staff to help with that and I've been in touch with Chief Kealoha to help us promote our program. Interestingly I'm glad you mentioned that because there's something that we're looking to also for our officers that retire. After twenty five years or 30 plus years of being in this job there is no way of decompress before they go back into the civilian world. It's a very difficult situation many of them have no idea how to submit a job resume or how to conduct interviews and this adjustment period not only for the officer but also for the family members we are looking into a program like that. For example if you're working in homicide or your working in robbery detail or you're working in crimes against children and you're exposed to that type of violence and that type of thinking. You need to get some help before you go back into the civilian population otherwise you'll be carrying all that baggage with you and that's not fair and that's what we're trying to do right now to help our employees to do that. Mr. Chang: Sincerely that was the point that I was trying to make because I know that you talked about the marines or macho or you know you don't want to talk about your feelings, but I think that it's very, very important that the ranking file can understand that they can see someone because a lot of times it's a lot easier to talk to a stranger than it is to your own peers. I would highly recommend that we stay on that for the benefit of the people that we want to retain. Mr. Perry: Sure, absolutely. Mr. Chang: You know pre and post employment, thank you Chairmen. Chair Furfaro: I just want to get something clear on overtime if I can Chief? Mr. Perry: Sure. Chair Furfaro: In your new budget, you have a total of 1 million four twenty two budgeted for overtime. That number is being reduced based on your performance record in the current year? Mr. Perry: I'm sorry the number that I was given was one million three, five three, 1.3 million and it was reduced by 29 percent my apologies. Chair Furfaro: But in there is as pointed out to me is this are you comparing to what is called the standby overtime? Mr. Perry: Just regular overtime. Chair Furfaro: Just regular and the standby overtime is used for what purposes that's seems to be where the differences are. I'' April 12, 2012 Police Department p.10 Mr. Perry: The standby pay is for Officers for example our Detectives that are working on standby from night hours until the early morning hours. If there's a felony call out then they'll go ahead and respond to the case and the overtime begins at that point. Chair Furfaro: Got it okay so I think that's where the differences is what we're looking at and that Scott Sato had pointed out to me there is that other category. However this number originally over the years was budgeted on the straight overtime as high as a million six so that what you've reduced? Mr. Perry: Yes. Chair Furfaro: That number. Got it thank you very much and Vice Chair Yukimura did you want to have couple questions now? Ms.Yukimura: Yes. Chair Furfaro: Go ahead. Ms.Yukimura: Hi Chief and congratulations on the overtime reduction that's very significant,just a couple of preliminaries, what is your total number of sworn officers? Mr. Perry: 148 and 2 appointees would be myself and... Ms.Yukimura: And then civilian? Mr. Perry: 56 approximately 56. Ms.Yukimura: Okay and you mentioned the strategic plan with the beats I don't think your slides are numbered. Anyway it's your KPD goals and request slide. Oh wait a minute no I guess it's your new boundaries, beat boundaries. Anyways regarding your strategic plan do you have that in writing? Mr. Perry: I have that in writing yes I do. Ms.Yukimura: Is that something you can provide to the Council? Mr. Perry: Sure yes I will. Ms.Yukimura: Okay thank you and regarding I know that you had a slide showing the positions you had wanted but didn't make it through the Mayors budget I guess. With respect to the 2 KPAL Officers that you would like to have I guess I'm curious that if you're having a hard time recruiting Police Officers who have to go through specialized training, would it not be helpful for your recruiting to actually have KPAL positions that aren't officers and use them for what Councilmember Rapozo said Public Safety would be the priority in the core function. You would use your officers for the core function and still have people but they might be civilians that don't have to go through the really all of the police training to work on your KPAL Programs. Mr. Perry: That's a possibility, I don't think the other departments have explored that but that's something we can look at. Normally the reason why they have the Police Officers involved with that and it's not that they don't do other duties and responsibilities with respect to the law enforcement because their officers also have dual roles. They have the KPAL Program but if they're needed in other areas they're also functional in other areas. If there's a shortage on the beat or there's a special event that happens maybe a natural disaster they can April 12, 2012 Police Department p.11 respond appropriately so there's dual roles there. The reason why we want officers there is to make sure we have integration within the community and the youth sees our officers out there as being human beings and not something or somebody to be afraid of. We are out there to mentor them and send them on the right path. There are a number of advantages including recruitment later on in the years and that's why we have officers. When I was in Honolulu I was the commander for the KPAL Program well overall Juvenile Services Division but the parents also wanted to see our officers out there and not we had civilian volunteers but they wanted to see the officer. In our case down here Officer Mark Ozaki is the one that has taken responsibility for that and he needs help and we want to adopt the program within KPD as we're adopting the explorers program. Those programs are invaluable to our youth and the community. Ms.Yukimura: Yes don't get me wrong I think you're KPAL program is incredible and serving a lot of youth needs but if you have all these vacancies and public safety is the priority to have somebody be able to work full time in the police work. I can see having someone who can help on occasion if all your positions are full but if they aren't full than that's the priority. Maybe exploring and I also understand the desire to really have a clear interface of police officers in the community but your KPAL program doesn't only involve the KPAL officers it includes other officers as well right? Mr. Perry: Yes volunteers. Ms.Yukimura: So these KPAL people would organize and maybe there's a way to still distinguish them as of the Police Department so that you can achieve that recognition of the Police Department but still expand your flexibility and your people.Anyway I'm just wondering. Mr. Perry: And its true a sense that KPAL is actually a crime prevention program, that's what it all about. It feels good and we're out there but it's a crime prevention program. Ms.Yukimura: Right. Mr. Perry: And its true a sense and perhaps we could have one officer and one civilian but I would be reluctant to have 2 civilians or a civilian run the program. We need the presence of the Police Officer there and that's just my personal preference I feel it's a benefit to the community and to the department as a whole. Ms.Yukimura: Okay thank you. Chair Furfaro: I will let Councilmember Kualii have the floor. Mr. Kuali`i: Thank you Mr. Chair. Aloha Chief, aloha to you and your entire department for everything you do for us. Mr. Perry: Thank you. Mr. Kuali`i: One quick question is with regards to the retirement projections. So when you listed those different amounts and it would be about slide 17, oh you got it right away. So the 20 total in 2015, that's if none of the eligible retirees for each year before they actually retire? Mr. Perry: Yes. Mr. Kuali`i: So it's an accumulative effect? April 12, 2012 Police Department p.12 Mr. Perry: Yes it's an accumulative effect. Mr. Kuali`i: Okay and then on the slide with regards to positions salaries reduction slash vacancies. So we had Department of Personnel Services here with us last week or recently to do the quarterly reports on the vacant positions and there last report to us from December 31, 2011 and we should be getting another one in a week or two for March, so the data here is not really current but it was so different from what you said that I'm wondering how connected personnel is with serving your recruitment needs. You listed vacancies for the sworn officers at 26 and that is current? Mr. Perry: As of April 10. Mr. Kuali`i: Yes, so what or would you have an idea of what it would be as of December 31, 2011?Was it a big difference? Mr. Perry: I would say no it wouldn't be a big difference maybe 24 maybe 23. Mr. Kuali`i: Yeah so just a couple. Mr. Perry: Yeah just a couple. Mr. Kuali`i: So in their report they listed Police Services Officers as 14 and Police Officer one as 3 so they only had a total of 17 vacancies showing and of those there are 6 that show as pending results of selection process. However you said 10 officers? Mr. Perry: For the next recruiting class? Mr. Kuali`i: Oh no that's the promotion. So because 10 officers are being promoted to Sergeant that means your vacancy of 26 now becomes 36? Mr. Perry: No everybody just moves up because the vacancies are also are in the sergeants and lieutenants positions. Mr. Kuali`i: But if a Sergeant is moving to Lieutenant and an Officer is moving to Sergeant? Mr. Perry: Right. Mr. Kuali`i: Who's moving to Officer? Mr. Perry: Well we're filling if the number is 26 vacancies and the vacancies include the Lieutenant and Sergeants. If an officer moves to a Sergeant he fills that vacancy but this opens up so there's no change. Mr. Kuali`i: There just all officers. Mr. Perry: Yes and that's why I have 26 sworn, there all sworn. There's actually a breakdown in here on the number of positions that includes Lieutenants and Sergeants in the back of your packet. April 12, 2012 Police Department p.13 Mr. Kuali`i: Well it just seems like in of the positions that are being filled where they had effective vacancy dates of like May 1 of 2000 and one was April 27, 2010 and I understand its tied to the recruitment classes but and your limited by how many you actually have in the class. So H.R. is just following your class enrollment as far as what they're actually recruiting for? Mr. Perry: You mean recruiting for a new position, I mean for applicants? Mr. Kuali`i: What is the entry level position called? Mr. Perry: Police Services Officer. Mr. Kuali`i: That's right and there's a difference between Police Services Officer and Police Officer one? Mr. Perry: Yes. After you finish your recruit class after you're program which is field training officer program and then you finish your probation than you have an increase and your moved up to the next level which would be PSO-1. Mr. Kuali`i: I guess the final part of this question is so if you have a number like 26 and that's what you see as your vacancies and personnel is showing a totally different number like 14 or 13, 14 would be Police Services Officers? So it's not the 3 that is Police Officers? Mr. Perry: No. Mr. Kuali`i: So Police Officer one is not the entry level? Mr. Perry: No PSO's is (inaudible). Mr. Kuali`i: Okay so you have 26 they have 14 and that's like almost double. What is actually budgeted for and what are they actually helping you recruit? Mr. Perry: Helping our recruitment? Mr. Kuali`i: Yes. Mr. Perry: What they're doing is continuous recruitment and forwarding the names to us as quickly as possible. Do they have the Sergeants vacancies and Lieutenants vacancies listed there too? Mr. Kuali`i: Yes they have 5 Lieutenants and 3 Sergeants. Mr. Perry: Yeah you would have to add that in there too. Mr. Kuali`i: Okay. So now that would be 22. Mr. Perry: Which is right about there? Mr. Kuali`i: Okay thank you, thank you Chair. April 12, 2012 Police Department p.14 Chair Furfaro: Councilmember all good questions and Chief our vacancy report that has been given to us is only through December 31. However I'm going to get you a copy right now, they seem to be as much as 60 days behind in their reporting. Mr. Perry: Okay. Chair Furfaro: Will take that up this afternoon but we'll get you a copy of the last report that we received. Mr. Perry: Can I add one more thing with respect to promotions? Chair Furfaro: Sure. Mr. Perry: We just had an assessment center done and that's how we were able to move all the Lieutenants and promote Lieutenants and Sergeants. What was happening in the past is that as soon as the promotions took place the eligibility list to be promoted expired. What we've been trying to work with the Department of Personnel Services is to extend that list for about 18 months and we've worked with SHOPO on that. The reason why we want to do that is because if there's a vacancy and someone retires we want to be able to just plug them in and not use an OIC, promote the person and move them in. There may be some shortages on the bottom but we'll work that out. The reason why we're doing that is twofold it's because the person deserves to be promoted first of all they went through all of that testing and everything else and secondly it's cost effective for us to do that. In our last assessment center it cost us forth two thousand dollars to do that assessment. If the list expires and we have to do that every time it's not going to be worth it and the officers are going to have to wait longer and longer and longer. We are trying to look at ways to not only get the officers promoted so we can better service the community but also a save the County some money in the long run. Mr. Furfaro: Okay, Chief we have about 2 hours of still blocked for your time. Before I recognize Councilmember Nakamura could you give me a real quick overview of whose coming up to speak and on what particular topics of the group you have assembled today? Mr. Perry: What we wanted to do is bring our Administrative Patrol and Investigative Bureau up just to give you an overview of where they are today and some of the projects that their doing. I also wanted to talk to you about and bring you updated on the (CALEA) process the accreditation process so that you have a full understanding of where we're moving and where we are today. Chair Furfaro: Okay so go through that sequence again for me so I can... Mr. Perry: Okay we would want to bring the Bureau Commanders up to give you an overview of the projects their doing and some of the challenges there facing with their budgets and how they're addressing those budgets. Also to let you know about any grants they may have that their working on. Chair Furfaro: Okay I'm going to let Councilmember Nakamura have her time for you for questions and will you orchestrate how we bring them up? Mr. Perry: Yes I will. Chair Furfaro: Thank you very much. Councilwomen... April 12, 2012 Police Department p.15 Ms. Nakamura: Thank you Chair. Good morning and thank you for your presentation. I wanted to ask you about on page 1 of your budget presentation that was submitted earlier to us. You talked about one of your goals and objectives for this coming year is to have 2 recruit classes and so I wanted to ask you about what would be your goal and how many to get through the process? Mr. Perry: We and I will pass this and I'm sorry that I didn't do it earlier but this is the 39 step process that we do for recruiting and that's why it's taking so long. What we want to do again as I mentioned is to expedite the process and right now we have a 107 applicants. We are looking at processing these applicants and by the latest would be November and start the recruit class in December. That's going to be a tight squeeze because of all of the steps we have to do. Our goal is to and cross my fingers to have another 10 officers or applicants go through a recruit class. Ms. Nakamura: So it would be 9 in the first class and 10 in the second class? Mr. Perry: Nine in the first class, ten in the second class and it's not a guarantee that they will even make it through the program. Ms. Nakamura: Right. Mr. Perry: We have a (inaudible) of maybe 2 or 3 during each class and we may even end up with 7 in each class so a total of 14 so anywhere from 7 to 19. Ms. Nakamura; So, 14 to 19 total than? Mr. Perry: Yes. Ms. Nakamura: So probably expecting about 6 retirements, potential retirements within that time? Mr. Perry: Yes. Ms. Nakamura: So you're going to net hopefully 13 next year? Mr. Perry: Yes. Ms. Nakamura: And is it your goal to have 2 recruitment classes from now on or is it just one per year? Mr. Perry: No from now on. That's our plan and we need to do what we need to fill our vacancies because if we can't do it than we can't expand, we can't give you the services that this County deserves we have to fill our vacancies. Ms. Nakamura: Okay then I wanted to do a follow up to Councilmember Yukimura's question about KPAL. One of the goals that this Council passed was we did our Council goals for the County and one of them was promotion of youth development in a comprehensive way. I believe that KPAL is one of the components of carrying out this goal and now given that the number of vacancies of police officers I was happy to see it in your original wish list and it didn't get approved or did not get into the final list. However, and I can see the need is to be out in the beat to feel the beats and so I also agree that there is a need for the presence and supervision at the officer level. I was wondering whether there was any way to have that Supervisory Position as an Officer but somehow either through a grant through KPAL or so forth that the work can be distributed Island April 12, 2012 Police Department p.16 wide so the surfaces can be better delivered. I know there's a lot of ground work involved too setting up fields, doing that the behind the scenes, moving wrestling equipment from one place to another and there seems like there's a lot of work involved, but to use the officers where it makes the most sense. That's what I wanted to explore further whether even through a grant through KPD, or a grant through KPAL to try to have that infrastructure to carry it out with KPD as the lead supervisory entity. Would something like that be possible? Mr. Perry: Yes certainly we could look at that. The goal again is the expansion of the KPAL program because there are a lot of kids out there that we would like to service and now it's not only flag football or baseball or basketball. We want to do other programs which included something maybe like chess, have a chess program or break dancing or have something else that's different. Karaoke or something that's different that's not your traditional sport and just to engage the children so they no make hum bug. Ms. Nakamura: Yes and I think that's all consistent with where we need to be looking and the mentorship role that the officers play is critical. Anyway we'll be sending over a more follow-up question relating to that as to how that could possibly be done in this budget process? Mr. Perry: Yes. Ms. Nakamura: Also I wanted to ask one of the big initiatives is the safe routes to school program and there will be more CIP Programs to try and bring kids and get them out walking to school or biking to school and yet the issues with the crossing guards is a continuous problem of trying to fill that position and my understanding from last year was the pay and the time. One hour before school and one hour after it's difficult for people to commit to that so I was just wondering if there were any options that you've looked at recently to try to fill those positions? Mr. Perry: Not recently no we've been doing the regular recruitment in asking the schools to help us in looking for grandparents that might want to help keeping our Keiki's li safe but no we haven't export anything else. Ms. Nakamura: Do you think if we increased the pay that we would have greater interest?Have we approached the schools for teachers for example? Mr. Perry: I think we have you know but I'm really not up on that now but I can find out and we can answer that question. Ms. Nakamura: Yeah because for the after school programs we did at Kapa'a Elementary, the teachers were happy to put in 1 or 2 hours after school if they got paid for it. I was thinking that would seem like the natural personnel staff to look at because some of them are looking for extra money with all their cut backs too. Mr. Perry: Teachers? Ms. Nakamura: Some of them are so I was just wondering maybe an increase in the amount you think might make a difference? Mr. Perry: I think this amount and what is it now ten dollars or something? Ms. Nakamura: Ten yes. April 12, 2012 Police Department p.17 Mr. Perry: I think that was just increased recently because it was even less than that before. But we can look into that, pose that question and we'll do a follow up and get right back to you on that. Ms. Nakamura: Thank you those were my questions. Mr. Furfaro: Chief what I would like to do know is we have 2 extra microphones for your Division Heads to come up in the order that you would like. You can continue there but they can make their presentations and then you're comfortable to add or delete but why don't I let you go ahead and call up in increments of two. Who would you like to make the next presentation? Mr. Perry: I would like to start off with Acting Assistant Chief Kaleo Perez. He is in charge of the Administrative Bureau and followed by the Patrol Services Bureau which will be Assistant Chief Alejandre Quibilan. Mr. Furfaro: So come right up Gentlemen and those little square plexiglass pieces in front of you are actually the microphones and you can activate them by just pressing down on the point that faces you. SHERWIN KALE() PEREZ,ACTING ASSISTANT CHIEF: Aloha Council Chair Furfaro, and Councilmember's good morning. Sherwin "Kaleo" Perez, I'm the acting Assistant Chief for the Administrative and technical Bureau. The ANT Bureau comprises of the various administrative offices of the department which includes the research and development, community relations, transfers, fiscal, personnel, identification, fleet maintenance, records, firearms registry and evidence. The bureau unlike the other bureau's we're not known to be in the public eyes but we're the behind the scene workers. I like to compare our bureau with that of a car engine, you know you don't see the engine as the car goes you see the car but you don't see the engine but it's what makes the car go, I just wanted to add that in. Our bureau and how it is organized is we have an Assistant Chief which I am the current acting Assistant Chief and we have a Captain and a research a development section in which we have a Lieutenant there, under him we have a Sergeant and a community relations Sergeant. We also have the Personnel Clerk which is what we were talking about earlier with that being Sherry and we're going to get into her situation a little later on. We also have a training Lieutenant and he sits alone in the training department. We have an ID Lieutenant and under him we have a Fleet Maintenance Coordinator, then we have a Fiscal Officer, under her we have a Personnel Assistant and 2 Account Clerks and then we have the Police Records Supervisor. Under her 10 employees being one of which is the Records Clerk that Mel talked about earlier that the position has been re-described and we can talk about that a little later too. Currently as far as our vacancies within our bureau we have 3 vacancies one of which is the Fleet Coordinators position and right now there are 3 applicants and we have back ground checks on it right now which should be completed sometime in May and we're shooting for a projected date of filling that position in June. We have a Records Unit Supervisor who's also at the tail end of the background check and that position should be filled shortly also, we actually have somebody on an 89 day contract while the background check is on the way. The Research and Development Sergeant recently the Chief announced promotions and that position will be filled effective April 22. So currently the Chief talked about the vacancies, 26 sworn and 26 civilians and the breakdown by position after all the promotions are made come April you're going to have 6 Sergeant vacancies, 19 Police Officer vacancies and 1 Captain vacancy. We talked about the civilian vacancies in my section in addition to that you got 1 Public Service worker which is cell block Public Safety worker I'm sorry which is the guys that work in cell block. Just for your info the upcoming class that will be starting in recruit class come May 1, 3 of those guys were Public Safety workers so we will see a shortage also in that area. There are also 5 radio dispatcher vacancies right now and we are in the tail end of their April 12, 2012 Police Department p.18 backgrounds and there's a possibility that we would be able to fill 3 or at least 2 of that positions real shortly but that will still leave another 2 or 3 vacancies. We also have a Part Time Clerk off duty clerk in the Patrol Section that's vacant. We talked about possible retirements this year and included that the retirements are possible that 2 of our Senior Dispatchers are eligible so we can lose dispatchers also. As far as our current projects right now one of the major projects that's going on is we have this contract with Vision Air and this project includes the implementation of the new CAD System which is the new Computer Assisted Dispatch along with that we're implementing a FBR (Field base reporting system) where officers will be able to conduct investigations, write reports, data entry in the field. This program is made possible through a grant from Homeland Security and this is to buy laptop computers and our cars will now be equipped with this equipment so they'll be able to write reports in the field. We are going through that right now the Administrators have been trained in this already and we're looking at training for all the Officers sometime next month in May. Our records management system will also change to vision air and that's coming up and again we're choosing for a starting date of mid to late May. As far as other grants in the ANT Bureau we don't have grants that we work by as the other Bureaus do however our Fiscal Officer who is in the hospital she writes reports on the grants. She does the financial statements and reports based on the grants and some of the grants we work with is JAG Grants or (justice assistance grants) that comes from by way of the Prosecutors Office so we work closer with them in getting training and equipment through these JAG Grants. Other grants would include our Vice Unit as well as the Detectives and Traffic; they have grants that they manage in their respective sections. One of the challenges and you folks talked about it earlier is the proposed transfer of our R&D Personnel Clerk which is Sherry. Mr. Chang: R&D? Mr. Perez: The Research and Development, she works under that section and we were talking about how important the hiring and recruitment process is. Well she plays a very, very important role in that area I mean we see how lengthily of a time it is from when the applicants first apply for the test and all the way down the line as the Chief explained all these different steps to the day they hired. There are so many steps in between and it takes a very long time and this particular clerks position she is probably the most important person because she does all the paperwork, all the correspondence, all the phone contacts all the letters, without a clerk there we're going to really be hurting. It will hamper our ability to hire in a timely fashion and that's a given. Chair Furfaro: Kaleo what position number was that? Mr. Perez: Oh I'm sorry... Mr. Perry: Its 346. Chair Furfaro: That's 346, okay. Mr. Perez: Yeah so I'm here advocating for that position you know I mean Sherry is just wonderful and we might lose her but please don't give away our position we're going to need that because it's going to help us in the recruiting process. Chair Furfaro: I understood you were an advocate from your testimony. April 12, 2012 Police Department p.19 Mr. Perez: Absolutely. Also we were talking about the hiring process and the Chief touched up on it that it seems to be the background investigations that seem to be the one step that has taken us so long and the reasons for that is first of all the number of background investigators we have. First and foremost just a lack of background investigators, right now we're working with 2 background investigators one of who is on contract. Now these background investigators they don't only do the police services officers but they also have public safety workers, the dispatchers, the fleet maintenance coordinator, the records supervisor. They have all of these different jobs that they have to do backgrounds on and as you can imagine it's very, very demanding and it's a very long tedious task for the background investigators. That's one of the areas we're going to need help in and what we've done over the past week or so it brainstorm as to what can help us improve in this area. How can we expedite the process especially in this background investigation area? Well one of the ideas we came up with was looking at using our current staff from police officers up to sergeants and even lieutenants who have the skills and ability to conduct background investigations. Police officers already have the basic tools of an investigation and they get that in the recruit training and during their daily jobs. I think it wouldn't be very difficult to train our people get them up to speed get them to know the process the formats so that they're able to conduct background investigations.Again in talking with our people we felt that coming up with a number of pool of officers maybe up to 15 or 20 that we could us to conduct the background investigations which would greatly speed up the process and get those backgrounds out of the way. That is one I think step that's really making it so long of a process, any Questions? Chair Furfaro: Let me ask you Captain Perez, you talk about the need for having more Investigative Officers and so forth that would be able to expedite the background checks and so forth.Am I assuming that's some previous retired officers that you would recruit?What is the factor there? Mr. Perez: We have used previously retired officers over the past and of course they would have to be interested in doing the job. Chair Furfaro: Sure. Mr. Perez: We haven't been able to get that interest from them. We have right now one retired officer who's on the contract working on backgrounds but we haven't gotten very much interest in that area and so without that interest we're looking in house to try and get our people involved. Chair Furfaro: Okay. Mr. Perez: Well we're putting out the word to our retirees you know we're sending out... Chair Furfaro: Okay I would continue to encourage that but in the meantime you've answered my question and let me give it to Mr. Rapozo then Mr. Chang. Mr. Rapozo: Thank you just real brief questions. What is your turnaround time from when you send over a request and I'm looking at your PSO hiring checklist. Let's just say in general from the time you send over a request to fill a vacant position to when you get a list, let's say for a civilian employee? Mr. Perez: Turnaround time as far as? Mr. Rapozo: Let's say you send over a request to fill a vacant position, how long does it take for you to get a list back? April 12, 2012 Police Department p.20 Mr. Perez: It doesn't take long to get a list the part that takes long is the process.After we get the list if you're talking about police officer positions? Mr. Rapozo: Civilians, let's just say you need to fill a clerk's position, a records clerk. How long does that take you send over a request say I need for a clerk? Mr. Perez: Getting the list doesn't take very long however once we get that we start the process of again the backgrounds which takes time. Mr. Rapozo: I'm sorry. Mr. Perez: One to two weeks. Mr. Rapozo: That quick, there's no testing or anything involved? Mr. Perez: Some don't and some do. Mr. Rapozo: Yeah and if there's a test required? Mr. Perez: For which position? Mr. Rapozo: Any vacant position. Mr. Perez: Civil service? Mr. Rapozo: Yes and so how long does that... Mr. Perez: I don't know. Mr. Perry: We'll have to follow up on that. Mr. Rapozo: Okay. Mr. Perry: In some cases when we send the request over Lieutenant Miyamoto said one to two weeks but I'm sure it takes longer than that when it involves the test and the scoring of the test and then awhile for it to get back to us. However we will get to you on that. Mr. Rapozo: Okay and as far as the background, why does it take so long to do a background?On this thing it says 80 hours average, is that per applicant? Mr. Perez: Part of the process is handing out a PHP packet or what they call a personal history packet. Each candidate after completing the written exam and then you have to have satisfactory complete the... Chair Furfaro: Excuse me; excuse me, gentlemen you need to take your conversation outside with the 3 mics live we're hearing all the feedback. Mr. Rapozo: The public heard everything you just said. Mr. Chang: And we agree. Mr. Rapozo: Okay so a PHP packet you said? April 12, 2012 Police Department p.21 Mr. Perez: Yes the personal history packet. Mr. Rapozo: Okay and that goes to the applicant? Mr. Perez: Right and it's a pretty lengthy questionnaire that we'll ask you questions regarding your residency, where you live, your job history, and your education history, military. Y Mr. Rapozo: Okay and how long do they have to turn that back in? Mr. Perez: Probably about a month. Mr. Rapozo: Okay one month and we went through this with building permits the other day. Sometimes it's really deceiving because the agency will get tagged for taking so long but the applicant takes a long time to turn in the proper information so that's a month? Mr. Perez: That's my belief I might be off on that and I would like to get you a more definite answer on that. Mr. Rapozo: Yeah I'm just curious as to what the process is. So they do a PHP and they turn back in the packet so now it goes to you folks and then from that point what is done?Is it basically validating what they put? Mr. Perez: Right and after the PHP they do a pre-offer psychological test it's a written test and again it's a pretty lengthy written test, once that's done the test results or the test itself goes to the psychologist. The psychologists will take a look at the test and make a summary report based on the test and the background investigator will get the report back from the psychologists. Mr. Rapozo: Okay so up until that point the background investigator doesn't do anything yet up until that point? Mr. Perez: Correct. Mr. Rapozo: Everything is pretty much the test and the Doctor looks at it okay so now the background investigator gets it and what does that background investigator do? Mr. Perez: Okay so when the psychologists get the test back, he'll look at the test and he'll come up with... he'll score the test or he'll come up with a report and there's going to be some areas in the Doctor's report areas that's will be of questionable concern that is a result of the test. Mr. Rapozo: Which I would assume every applicant has some personable I mean... Mr. Perez: Sure and some has a lot more than others. Mr. Rapozo: Even to a psychiatrist they will find something wrong with it. Mr. Perez: Correct and what the officer does then is take that test and the Doctor's report and the officer will do what they call a clarification interview, where the red flags that the Doctor found the background investigator will interview the applicant on those red flags. April 12, 2012 Police Department p.22 Mr. Rapozo: Okay. Mr. Perez: Okay and that clarification report, is than sent back to the Doctor. The Doctor then evaluated that report he examines it then he will provide a rating what we call a non medical rating for each of the applicants based on the report from the officer so far. Mr. Rapozo: So up until this point there's really not much you can do to restrict the time or reduce the time that's just... Mr. Perez: Keep in mind the background investigation hasn't started yet. Mr. Rapozo: Right and I'm reading this list and I'm saying okay so up until this point and this is quite a long lengthy period already just with the psychological. Mr. Perez: Correct. Mr. Rapozo: I guess the question to the Chief is, is that pretty much standard throughout the State, that format where you take a test, interview, get another interview with the cop and then go back to the psychologists. Is that pretty much how it's done Statewide? Mr. Perry: That's pretty much standard and the reason why they do that again is to make sure that we get the candidates or the right candidates. Mr. Rapozo: Right. Mr. Perry: What Assistant Chief Kaleo Perez is talking about is they're looking at certain dimensions on a person's personality for lack of a better term. These dimensions are further explored and identified by the psychologists and we have to go back and clarify some of the issues they may have and it's re-scored again and there's a rating of high risk, medium risk or low risk. If they are in the high risk area as you see it's modified over here, if they're in a high risk area we don't even look at them they're gone. That's the position we take and in the past what we did was look at every individual and did background checks on all of them. However in worst situations you will find someone that has a high risk rating and yet you find out later on that there may have been some glitch in there but that's very rare. We found maybe one or two out of the 30 something candidates that we had, but that's rare. Right now to streamline this process if they are rated high risk by a psychologist we cut them out and they can reapply again later on. Mr. Rapozo: Okay and rather than go through all the technical part because I don't think we have much control over that it just has to be done.As far as the background investigations, is that something that could be contracted out private sector? Because you talked about having a pool of 15 or 20 patrolmen, lieutenants and sergeants so I'm assuming that would entail overtime because obviously they can't do background while they're working? If you look at the overtime rate of pay for any of these I mean we find that out in cell block and we know what that does. Is the background component of this process something that could be contracted out to a private firm that could meet the needs of a standard background check? I'm not sure what that 80 hours entail but if you're looking at the credit check, neighbor check, and employer check those things, is that something we could consider contracting out? I believe you could get it done a lot quicker number one and a lot less cost and we're already talking about our officers being burnt out because of the work and I know overtime is good stuff and I saw the slide yesterday about how much a patrolmen makes and I'm thinking about applying again. Why even be a Chief, I would just be a Lieutenant and just make more money than the Chief but I think to slow down the burnout of these April 12, 2012 Police Department p.23 officers and also to get quality work from a private firm I think might be... and I don't do background checks as a private investigator so I'm not here trying to get work for me but I know that there are firms in the State that do very well with employee background checks and that might be an option that we might consider. Mr. Perez: I think it's a possibility, I don't know if us as a department has looked at that before but it's a possibility. Mr. Rapozo: Well I just know without even doing the math that it would be cheaper than a pool of 20 officers. That I can tell you right now because I think a high intensity background checks in the industry today probably runs anywhere from five hundred bucks to upwards maybe seven fifty. If you're looking at 80 hours per applicant and you times that by a patrol officers overtime pay or a sergeants overtime pay its going to be a lot more In my opinion. Anyway just food for thought my own concern is getting that things done because one of the complaints I've heard is typically a guy maybe gets out of high school or college, he goes to Monster.com, goes to Star Bulletin in the classified ads and he sees all these jobs he shot guns out his resumes, he wants to be a cop but all of a sudden the Marriott or the Hyatt or Princeville calls and says hey we have an opening for a security and he's done he leaves our pool because he finds a job quicker and we lose that candidate. I'm just trying to figure out some of these things I can understand we cannot mess with, the psychological the polygraphs all of those things but on what we can control if there's a quicker way I would encourage you to find that out. Mr. Perez: Okay. Mr. Perry: I just wanted to mention that we did contract with a private investigator and this guy was actually from the Mainland and he belonged to a company but what happened is that when you do the background when you get your Detectives or Investigators License, you had to get an investigators license to do background checks and they didn't have it. The company could not come here and use all of their resources so we ended up with just one but that's an area we can explore too. Mr. Furfaro: I guess in round numbers what Mr. Rapozo is saying is even if it took the contract service 2 weeks to do somebody, they could do 26 background checks in a year and if it's a thousand bucks it's for about 26 thousand dollars we can have some contracted service to expedite this. I think Mr. Chang was next if that's right and then I will go to Councilmember Nakamura. Do you have questions? Mr. Chang: Please. Mr. Furfaro: Okay then Councilwomen Nakamura. Mr. Chang: You know I think Councilmember Rapozo had asked most of the questions I was concerned with and that was with background checks and I appreciate that we do background because maybe sometimes in the public we think, what's the big deal about background?When you're doing law enforcement that is a big deal. I guess my question was it might be nice to have an agenda item just for discussion with the Commissioners many of who have law enforcement investigative background and I think the Chief answered my questions in regards... I was thinking like a blue ribbon committee group that would be you know Human Resources background and what have you but I guess you just mentioned you need a license to actually do some sort of background check so there's really no way to speed up the process if you're like a concerned community member. April 12, 2012 Police Department p.24 Mr. Perry: Yes you need a license and the reason you need a license is like you and I we can go on Google and do a background search but if you need to get information that is confidential in nature and you need to go to different agencies to get that you will need a license to obtain that information. Other than that the requirements are such that no regular person without that license can do background searches and that the criteria and that's a State Law. Mr. Chang: So you mentioned that efforts to draw in "quote unquote" Mainland people recruits or whatever the situation is with the cost of living or housing or what have you. What are we doing in trying to keep many of our undecided young men and women in the profession to lure them into a possibility or just entertaining the thought of getting into law enforcement with the police officers? Is there a drive that or a recruitment effort out there to say hey we're looking for a few? Mr. Perez: We have a website that our department is on and we try to promote the job so we got that and we also have advertisements that we put out as well as attend job fares locally. I think our section is doing a lot in trying to draw attention and draw applicants. I am optimistic with the current list that we are working on to hire come December, we started with 116 names and on the previous list we started at about 60 or so names that we started with on that list. We've already seen an increase in applicants so that's a good sign. Mr. Perry: I Just wanted to add there's also a website called Discover or discovering policing and it's promoted by the International Association of Chiefs of Police. All the departments have their recruitment notices on there so if you're interested in becoming a Police Officer this would be a website you go to and it can scroll down to whatever state you're in and link you up to the agency that has vacancies or have openings so we're out there. Mr. Chang: I guess I would really like to say if we can work with the media and I'm sorry we don't have a reporter here. It just seems that if you folks are on site and there's just a question and answer and you got a bunch of recruits and it gets weeded down to a single digit number. In preparedness this is what to expect this is the black and white of everything that we're asking about and throughout that encouraging process to guide any potential candidate like any other job it's nice that we can expedite the process and show that we care and we want to follow up with any potential recruit. Graduation is right around the corner and college kids will be coming back from college and if there's an opportunity to make a living back home, I would like to see that pride instilled that there are opportunities to make a good living and be a big part of the community. I think if we get out there to ask and actively recruit and to show commitment to following through in helping them out.As you have said it's a tough rigorous process and not only do you go through the background check or the psychological check but you go through the physical field thereafter. I think if we paint the picture right off the bath as to what it's like and the commitment that's needed I would love to see a very vigorous recruitment program. I think way back when former Chair Asing was saying we'll never get the positions filled and... Mr. Perry: I owe him a lunch by the way. Mr. Chang: I knew that but I didn't want to bring that up. But that was the same story that it would never be filled but at least we're giving a real, real, good effort that we need a few proud citizens to be a big part of this community that I think it's building for the future. I would like to say maybe a conversation in the next agenda or at least with the Police Commission to get some sort of a dialog and I know that people aren't licensed; however maybe there could be some good community responses to recommendations. April 12, 2012 Police Department p.25 Mr. Perez: I just wanted to add that I believe there is a lot more interest generated now in the job of Police Officers. The union has done a great job and the current administration of SHOPO with the contracts. We have seen a boost in salaries from the previous contract and just the requirements and the job itself has attracted more people. I have seen that even with people who have left such as officers who have left us to join the DLNR, there finding that the grass is really not greener on the other side. Some of them have expressed regret in leaving and saying that we have all these benefits and one of which is 25 years. That contract has really been great for officers and people and it's been an attractive thing. Mr. Chang: Lastly that's a great point that you've made because being a football fan yourself we're always trying to recruit from the homegrown local talent. It being real nice because most of the local people and if we're having a hard time attracting mainlanders if you will the advantage is you know the community and you can be a part of the community and be respected in a community you already know and love. Mr. Perry: I just wanted to add the most successful program was the First Hawaiian Bank Program back in the 70's. The toughest dirtiest job that you could want and they doubled the beats in Honolulu. We have taken surveys on job fairs and we've attended a Y Y J number of job fares but we don't get any bank for a buck on that and in fact I would venture to say out of all the job fares that we've done for the t e p ast 4 years we might have had a couple people that were interested. We haven't recruited from that venue and the most successful venue is word of mouth, family members talking about each other or friends. That's why we are so interested in the Explorers Program and KPLA so we can use that avenue to bring people in. The good thing about the job fares is that we tell those individuals who are interested in police work or maybe just curious, to keep their nose clean and don't get in trouble because it will affect their ability to become a officers in the future. Mr. Furfaro: Okay Councilmember Nakamura. Chief I want to let you know we had you scheduled to 12:30 today and we're pretty much at the half way point and yet I know you have an event at noon. If you have to leave early we understand, we would like to be there but we need to finish our business today first then we will come. Mr. Bynum: Can we go to? Mr. Furfaro: Yes we can go to the next... but Councilwomen Nakamura has the last of the questions for Mr. Perez and then we will go to the next presentation. Ms. Nakamura: Of the 116 applicants, how many of them do you think you will do background checks on? Mr. Perez: Well already that number has dwindled down to 107 just from the phone contacts that sherry has done. Ms. Nakamura: So you will expect to do 107 background checks? Mr. Perez: Again before you get to the background checks you have to go through the PHP, the personal history packet. Ms. Nakamura: So there's some attrition going on in the process right? Mr. Perez: Yes and when we get to the backgrounds you might not see 107. April 12, 2012 Police Department p.26 Ms. Nakamura: What's your best guess half of it or seventy five percent? Mr. Perez: I couldn't say. Ms. Nakamura: Oh okay. Mr. Perez: Yes the physical readiness. Ms. Nakamura: And how many full time people do you have currently doing background checks? Mr. Perez: One, I'm sorry one officer and one contracted employee. Ms. Nakamura: And both do this full time? Mr. Perez: The officer is not full time she has other duties along with doing the background. Ms. Nakamura: Would you say half time? Mr. Perez: I would say three quarters time. Ms. Nakamura: So if a person is doing or if it takes 80 hours to do a background check in a given year one person could do 25 with vacation and whatever sick leave. So twenty five background checks per person per year and yet we have 3 times that amount of applicants so that's where that seems to be where the issue is and how do we think out of the box. Mr. Perez: Correct. Ms. Nakamura: I really would support Councilmember Rapozo's suggestion about finding some other way to get it done quickly because that seems to be the (inaudible). One more last thing is would it be possible and this is a good tool I think that clearly outlines the process. Would it be possible for you to add few more columns to show how long it takes KPD to do this task? Just average and how long the applicant takes to do their part of the work because it's the total and g g pp p the agency? There's outside agencies that have a role or your hired psychologist or whatever so we can see the bigger picture and also use it as a tool to see where the hold ups are. Mr. Perry: On average we can do that because of course it varies per candidate some may be on the Mainland, some may not return it in time, there's a variety of reasons why so it will vary but we can get you an average. Ms. Nakamura: I think it would be a good tool as we try to problem solve this issue together. Mr. Perry: We also have well we have 2 people the retired police officer and an officer doing it. We also in the (inaudible) we've handed out background checks to other officers within the ANT Bureau to do background checks so it's not just those two we have others that are helping out along the way. Mr. Furfaro: Okay Council Vice Chair Yukimura. April 12, 2012 Police Department p.27 Ms.Yukimura: Thank you. First of all congratulations on getting your CAD online, it's just been years where it's been in the works and that is a big accomplishment. Regarding I uess for the Chief what was that First Hawaiian Bank thing that you referred to? g g Y Mr. Perry: That was back in 1971/72 when I first joined the Police Department in Honolulu. Oh what it was, was a campaign media/radio/television and posters and it was by I think back then it was by Mr. Bellinger who was the President of First Hawaiian Bank and Chief Kealoha at that time had connections with First Hawaiian Bank and so it was a collaboration between the Private Sector and Police Department. At that time they doubled all of their beats throughout the whole Island, it was a huge expansion so the recruit classes that were going through were 50/60 plus officers and they were pushing like 3 recruit classes through a year. Ms.Yukimura: So it was a privately funded media outreach to attract more recruits into the police department? Mr. Perry: Yes. Ms.Yukimura: And it worked? Mr. Perry: It worked that's the time if you recall when the Vietnam War was winding down and we had a lot of Veterans that were coming out and I have to admit that back then the criteria for becoming an officer was a little bit less then it is today. One of the most difficult questions they asked me was id I was still playing basketball in a Triple A League so yes, I did pass the test and I did pass all of the qualifications because it was a little bit lacks back then. Ms.Yukimura: Yeah I mean but in the use of the Veterans there are issues of post traumatic stress and stuff that have to be considered. Mr. Perry: Sure. Ms.Yukimura: Okay and there are so many job openings both sworn and civilian apparently and there's so many people who want jobs you would think that somehow there could be a match. I know you love and want to keep sherry but, is there any possibility and know there's also a real distrust of the Personnel Department and its ability to produce the kind of internal service that's needed for different departments. We have seen it throughout this budget hearing but if there is a new vision coming up of a Human Resource Department that will really function professionally and if Sherry is part of it and really helping that H.R. Department understand the Police Departments needs and also getting more support for her function which I hope will include the recruiting function as well. I mean could it not possibly work well or better for the Police Department? Mr. Perez: It could work but I think there's nothing like having your clerk being readily available on-sight on-scene because there's constant interaction with the Personnel, with the Lieutenant and Sergeant and Sherry. They have constant discussions about where we're at what's going on and what's the next steps, so I applaud personnel for thinking of us in wanting to work with us, however I don't think you can get as effective a situation as having someone on sight. Ms.Yukimura: Okay but you know if you're looking at the process it's not really effective right? Mr. Perez: Excuse me? April 12, 2012 Police Department p.28 Ms.Yukimura: If you look at the overall process it's not being effective right now. We've been discussing for at least an hour on how to increase your rate and speed of recruitment. Mr. Perez: Well Sherry is... Mr. Furfaro: Excuse me I just want to say something. Vice Chair I think that's going to be my intent to take this as an agenda item in Mr. Rapozo's committee by inviting the Police Commission, Personnel Services, and the Chief. These depleting numbers and this process of recruiting and response time and so forth, at one point or another unless we come to a solution we won't have the right program in place. I think this is worthy of a Public Safety discussion in Mr. Rapozo's committee and I think you made some great points but we've been discussing recruitment for an hour when we should be talking in focus on your budget. But a great point and we will put it on. Ms.Yukimura: Okay. Mr. Furfaro: We will be having that discussion Kaleo as an agenda item. Let me get to questions from other members first. Ms.Yukimura: Okay thank you. Mr. Kualii: Thank you Mr. Chair I can be pretty quick. I do honor you're your right to deal and I appreciate that you put it forward and said that this is an issue that we have to address with the hiring process. As far as the need for more background investigators and I say that it is your right and decision whether you decide that you need more officer help, more civilian help or utilization of consultants. I do notice that in your actual budget under the consultant line item you've already increased that by 61 percent from 99 thousand to 160 thousand. The line item in there does include police applicant screening services of 60 thousand so, the question I did have is so of the officer that works three quarter time on that job, what is that position? Mr. Perez: The officer that's working on background right now? Mr. Kualii: Yes what is the job title? Mr. Perez: She is in research and development and she actually is part of the promotional group that we'll be moving up the ladder come April 22. Mr. Kualii: From an Officer to a Sergeant? Mr. Perez: Correct. Mr. Kualii: Then what is the contracted employee? Mr. Perez: He works full time on backgrounds. Mr. Kualii: What is that job title? Mr. Perez: Temporary hire. Mr. Kualii: So that's... what contract is that the 90 day hire? Mr. Perez: The 89 day. April 12, 2012 Police Department p.29 Mr. Kualii: And that's been for how long? Mr. Perez: I don't know how long he's been on but when the 89 day expires we just do another contract. Mr. Kualii: A long time. Mr. Perez: Oh yeah. Mr. Kualii: Could be years? Mr. Perez: Howell has been there for probably around 2 year's maybe. Mr. Perry: Howell the retired police officer, he's been there for about 2 years maybe longer. Mr. Kualii: Okay so it's clear that it's a need that you have, it's ongoing but the Administration has not allowed you to get a position for that? Mr. Perez: Yes we don't have permanent positions for background investigators. Mr. Kualii: I think that's a lacking then if it impacts the ability of you to recruit better and faster then we need to fund the position to do that. In an 89 day hire is suppose to be temporary so I think that glaringly missing, thank you. Mr. Furfaro: Chief on that note we need to take a caption break because we've been operating for 2 hours now and we'll come back to Quibilan as the next presentation. Let's take 10 minutes now and do know that I'm committing to a recruitment agenda item in Public Safety in the near future. Mr. Perez: Thank You. There being no objections, the committee recessed at 10:59 a.m. I,a The Committee reconvened at 11:17 a.m. and proceeded as follows. Mr. Furfaro: Hello we are back from our break and Chief I also want to know because Mr. Rapozo will not be with us this afternoon for he is taking care of some matters in Honolulu. I gave the certificate for the recognition at lunch time today to you folks and we will come sometime after that time but where do you want to go now? Mr. Perry: Okay what we want to do is give a quick update on the accreditation process and acting Captain John Takamura will be speaking about that and followed by Assistant Chief Alejandre Quibilan on the Patrol Services Bureau. Mr. Furfaro: Okay Captain the rules are suspended and you have the floor. There being no objections the rules were suspended: April 12, 2012 Police Department p.30 JOHN TAKAMURA: Good morning John Takamura with the Kaua`i Police Department. For the past year we basically as part of the accreditation we reviewed or revisited all of our policies. Just about 200 of them and part of the accreditation is that we need to have specific standards that is CALEA standards that need to be inputted in our written directives. So we got to the point of actually re-doing majority of the most important policies/created policies that needed to be done. At that point at the end of I guess you can say 2011, beginning of January we got to the point and made the decision to actually go ahead and apply for an accreditation. We submitted our application in January and I guess through some red tape we finally got the thing signed today by our Director of Finance and we just talked to Wally back there. Hopefully our application will be submitted at that time and at the receiving of the application our 3 year window starts to get our first initial assessment.With the help of Deputy Chief Contrades he started a mechanism where now the Administrative Review Board would do weekly reviews of our policies as my part doing the accreditation send it to the administrative review board, they approve it then the next step is meet and confer with the bargaining units. At that point the Chief signs off and we do our distribution. Part of accreditation is just not the updating of the policies but the next phase is to ensure that all of our personnel actually reads it, understands it and signs off. The most critical part is that we need to now collect proofs of compliance that we are now abiding by these set guidelines or policies. So hopefully 3 years if everything goes well we can be ready for an initial assessment in 3 years or maybe less. Okay CALEA actually is Commission of Accreditation of Law Enforcement Association and that CALEA is actually created back in 1979, there's 21 Board Members and 11 Chief of Police, 10 Public and Private Sector people that makes up the Commission. There's approximately for Law Enforcement as our size department size over 200 sworn and civilian employees we put ourselves in the category of being advanced accreditation. There are about 500 different standards that need to be addressed in every policy, directive you name it that we need to abide by. Out of the 500 it entails from our records evidence, the way we do business with the public our detention facility and everything you can think about that relates to police work. Of course the main purpose or the goal of accreditation is to have that seal of accreditation stamp saying that we are doing business properly. We are servicing the community properly, we servicing our employees properly and the way we do business is by the standards. Mr. Furfaro: Chief I know in your presentation you identified some items that you indicated were a wish list. Now I believe in early June I will be representing the Council again on another trip with the Mayor to the bond council in San Francisco. If there are items on your wish list and they have to be material items, if there are material items on your wish list that will help us meet the minimum requirement for accreditation could you provide that to us? The whole idea and I think we're well along the way with radio's and the pc's in the police vehicles with the officers and so forth, but if there is any physical piece that we need to be considering as part of the accreditation I would certainly like to have that so when we talk to the bond council we have an opportunity to make some kind of an acquisition if we're short on a minimum standard for a material item that would be helpful. Captain let me ask around the table if anyone has questions. Mr. Rapozo. Mr. Rapozo: Thank you Mr. Chair and I apologize that I will have to be leaving but I do want to try and get as many questions as possible. This is really a combination and it's regarding accreditation but I think this is more geared towards the Chief. Years ago this council attempted to provide a position to the Police Department for a Legal Advisor that would be focused on accreditation and to really to the day to day advising for the department and legal matters. Unfortunately that position was simply put in the County Attorney's Office and you got assigned an attorney who you really didn't have the opportunity to pick. Over the last few months with all the nonsense that's been going on, on this island, I started making phone calls and asked how other counties do it and interestingly enough and you probably know this Chief or are aware of this but Honolulu Police has a position that's called the Senior Police Legal Advisor. I have made copies for everyone here if you could just pass it out and it's interesting because the first thing I said was well April 12, 2012 Police Department p.31 we cannot to that on Kaua`i because our Charter says that the County Attorney's Office is the Chief Legal Advisor. Interestingly enough and the Charter of Honolulu has the exact same language as does Kauai as far as the County Attorney. This position, of the Senior Police Legal Advisor basically it and let me read it real quickly... It renders expert and legal service and advice to the Chief, advises on legality and constitutionality of investigative and law enforcement problems and procedures. The most important part and I'm going to skip all the rest but the one I'm more concerned about and I think we really need to entertain is it says "regularly advises on and reviews all revisions amendments and all newly drafted departmental policies, regulations and directives for legality sufficiency and inclusiveness of language." I think this ties right in to accreditation because if we want to get in that 3 year window we will need to get the help that's required. The other thing that this position does and this is where I think it is allowable by our Charter because again the Charter on Oahu is no different than ours but it says that this position will act as the liaison between the Corp Council and the Police Department. So this position does not take away any of the legal requirements or the requirements of the Charter. It basically says that this position is a specialists, it's a specialists that the Police Chief picks that is comfortable with working with based on experience. Also the minimum requirements would be obviously to be a Lawyer for 5 years but in Honolulu it says 2 years and I spoke to the office of this attorney and actually the attorney recommended that it be changed to 5 years experience in criminal law versus 2 years which is what they currently have. This saves the Police Department lots of money in liability, in lawsuits and it doesn't take away in fact they are not allowed to do legal opinions. All legal opinions for the Honolulu Police Department still has to come out of the Corp Council up there and it says in there to request formal opinions from the Corp Council as required, acts as the liaison with the Prosecuting Attorney and Corp Council in criminal and civil matters respectively and provides active case support in coordination in court presentations by conducting preliminary investigations and so forth. My point is we tried it before and it got messed up and I know this and the pay scale here for Honolulu is anywhere from $82.137.00 and obviously we can adjust that to the Kauai scale but is and I'm only talking accreditation because that's what we're on. Do you believe that this would be an asset to your attempt to get to accreditation within that required period? Mr. Perry: Yes it would. Mr. Rapozo: Okay I'm hoping and I passed it around and I'm hope everybody can take a look at it. I just think again and more recently with the events that have happened on this Island with the Police Department, I think the time has come where the department needs your own Chief, someone that you appoint, someone that you trust, someone that you appoint, someone that you can pick that you believe can take you into that accreditation process. The Fire Department has made a comment that they may be doing away with their accreditation attempts. That didn't come favorably by the council but resources are limited and to me accreditation is the old term you kill 2 birds with 1 stone. When you reach your accreditation standards, you've resolved a ton of issues within your organization it's going to happen it's a bi-product of accreditation. So I want to see us get there in 3 years. Will we do it? I don't know I think Maui took 7 and some departments take a lot longer. If we have this kind of specialist that can be on your staff that can help with that and you can find someone that has that knowledge base I think this will pay itself off many times over because of the results we will get in addition to all of the other stuff that we do that create legal issues, challenges and settlements. I just the settlement page that you provided on your narrative and it's quite a bit and it's another topic of internal affairs. I'm just saying as I look at the 8 cases I honestly believe if we had quality expert legal advice and policies designed into your department, I have to believe that a lot of those settlements would not have occurred. So you answered my question and I'm going to try again, I'm going to try again to see if we got the necessary votes to put this position in. I believe more important except for your records clerk, this would be my next priority for your department right now. April 12, 2012 Police Department p.32 Mr. Perry: I believe wasn't that in 2008 or 2009 or one of those years? Anyway that was the plan when I initially came here the plan was to be accredited and part of that plan was to have a legal advisor in-house. The reason why we wanted it in-house is so that if there's any conflicts with the County Attorney that the Chiefs office or the Kaua`i Police Department would be represented. I argued that but we lost the position anyway so I would be in favor if there's a possibility of getting a Legal Advisor for the Chief of Police so that we can move in that direction towards accreditation and be more effective as an agency.You got my vote but I need your vote. Mr. Rapozo: You got mine but you need 3 more. Mr. Perry: Okay. Mr. Rapozo: Thank you. Mr. Furfaro: Okay thank you. Ladies questions, we're talking about accreditation at this point. Excuse me councilwomen Nakamura. Ms. Nakamura: Thanks for the update on accreditation, its seems like a huge project to undertake and I wanted to find out if you have some kind of action plan on how to complete the 200 policies and 500 standards that you have to meet? How do you anticipate... is it just yourself right now that is working on it or is there other staff? Mr. Takamura: Yes we have the Patrol Administrative Sergeants position that is also helping. Ms. Nakamura: Okay so could you provide an action plan on how you anticipate to accomplish this in 3 years? And also what type of other resources do you anticipate needing in order to meet the standards? I'm not sure whether there are equipment needs or certain additional beat needs, training needs. What's the bigger financial implication of doing accreditation that we're aware of? Mr. Takamura: Well one important one is the training and luckily this past year we attended, well in 2011 we attended the conference in Cincinnati and that opened the eyes for us as far as what accreditation really is about. At that time with the conference we learned that 500 different standards but every year they add more they amend more and so forth. We've been fortunate enough to go and visit Maui because Maui just got a reaccreditation, their 3 year reaccreditation and we got to site visit and Maui has been very helpful as far as helping us on designing our launch. We visited Honolulu Police Department and they're going to be getting their 3 year assessment this year and actually Hawai`i County is going to do their initial this year, so hopefully we get to attend that and see what it's about. We're going to be the last county and its you know when you do joint training with the other counties with the other pd's in the state or in joint task force type of deal projects, you would want to be accredited along with them. That's a standard statewide it's going to be standard now. DLNR is actually trying to get accredited and I'm not sure how that is going. One tool that was important and I wanted to get was that our budget was POWER-DMS and this POWER-DMS would actually allow us to tract our policies. One part of it is... Ms. Nakamura: Can you repeat that?What is that called? Mr. Takamura: Its call Power-DMS and it's a software that now CALEA is backing and this software actually would allow us to tract our policies, because again one part of not just creating the policies with the standards, but we need to ensure that our policies is being updated or acknowledged by our personnel. Some policies as like our use of force and we need to have April 12, 2012 Police Department p.33 quarterly updates on it, our people need to review that quarterly. This Power-DMS would track and it would flag the employees that did not meet that and so forth. It actually would be a program that would allow us to take stats on evaluations, we need to do auditing with our evidence, we need to do auditing with our cell block and that Power-DMS actually helps us track. Everything is going to move electronically even with accreditation so that system would be a great tool to have. Ms. Nakamura: Thank you. Mr. Furfaro: Anymore questions focused on accreditation? Vice Chair Yukimura. Ms.Yukimura: I have always thought that accreditation is such a great goal and worthwhile effort and I appreciate how you've kept at it. Just as a follow up question first of all to councilmember Nakamura. How much will this software cost? Mr. Takamura: I believe it was close to five thousand. Ms.Yukimura: Okay well sounds like its well worth it if it's going to do... well from what little I understand it's this tracking of not just your policies but of your performance right or the results. There talking about this in the Department of Education in using statistics to track and monitor your performance and see how you're doing and how you can do better or even celebrating your achievements. It's a 3 year process did you say? Mr. Takamura: On this self assessment it's a 3 year process. Ms.Yukimura: Oh self assessment. Mr. Takamura: Yeah and when you're ready and you can say CALEO now we're ready to get our initial assessment, they'll come down and that's when they review all our policies. They will go over our proofs to make sure we have met the requirements and the big thing is that they actually go around and they will actually talk to officers, pull them on the side and ask them various questions to ensure that we are living accreditation and we're living our standards. They do ride alongs and so forth. Ms.Yukimura: Informal three sixty, yeah Chair? Mr. Furfaro: It's an informal three sixty that's correct. Ms.Yukimura: So this initial what is it called? Mr. Takamura: Assessment. Ms.Yukimura: Assessment, that's what the Big Island is now at, that's their stage? Mr. Takamura: Yes. Ms.Yukimura: And again a follow-up on Councilmember Nakamura, the fiscal requirements or implications of accreditation is that something that is forecastable or predictable?So that when we're doing our budgets into the future we know what's coming up. Mr. Takamura: The initial is like you got the initial fee, you don't pay a fee until you're ready to get your initial assessment. If you pass your initial assessment it's a five April 12, 2012 Police Department p.34 thousand dollar annual fee. Part of that fee also is when you're ready to do the reassessments and you need to fly over the assessors with CALEA, that's going to be a travel fee that we need to take care of too. Ms.Yukimura: I was thinking more in terms of upgrading your equipment or any where you find and I'm not sure I'm using the right word"Deficiencies" or things that need to be increased to meet the standards. But maybe that's not really known until you do your assessment? Mr. Takamura: Yes. Ms.Yukimura: Okay well congratulations and thank you for doing this work because I think like the Chief has known it's just going to bring the Police Department to another level. Thank you. Mr. Furfaro: Can I just ask, is some of this software as you identified for accreditation, is it in this new budget? Mr. Takamura: I don't know, it was placed initially but I'm not sure. Mr. Furfaro: Well maybe that's a question we'll have again for Finance a little later. Okay, if there are no more questions about accreditation, we will go to the next individual, Captain thank you very much. Mr. Takamura: Thank you. ALEJANDRE QUIBILAN,ASSISTANT CHIEF: Good morning Council Chair and Councilmembers, for the record, Assistant Chief Ale Quibilan, Patrol Services Bureau. This morning I will be providing an overview of the Patrol Services Bureau and will take any questions you may have regarding the Bureau or our budget. Patrol Services Bureau, the command structure, the commander of the bureau is myself, as an Assistant Chief. There is a position as a Captain as I would call him my Operations Officer. There is one Administrative Lieutenant in the position, one Traffic Safety Unit Lieutenant, one Hanalei District Lieutenant, one Lihu'e District Lieutenant, and one Waimea District Lieutenant. The Patrol Services Bureau as you may know is a 24/7-365 operation as in comparison to acting Assistant Chief Kaleo Perez had mentioned that his staff is behind the works, our people are at the forefront. They are the people you see in uniform in mark cars, they are the ones that answer the phone if you call 911 or have any questions regarding or want to file a complaint, misc our dispatchers they are all at the forefront, I consider them the tip of the spears as far as all the first responders and to include the Fire Department Medics we are at that very tip. The Patrol Services Bureau services 5 Judicial Districts, the Hanalei District which encompasses Ha'ena to Moloa'a, the Kawaihau District which is the Anahola area up to Kapa'a Town and Kapahi, the Lihu'e District which encompasses the Waipouli Wailua homestead into Lihu'e area up to halfway bridge. The Koloa District which encompasses Koloa town, Po'ipu, the resort area, Lawa`i up to Kalaheo and the Waimea District which probably area wise is the largest which begins approximately the `Ele'ele town area and goes all the way out to Polihale and all the way up to Koke'e that's a very large area that they cover. The Island is divided into 10 beats so at any given time there are 10 Officers, 3 Supervisors minimum we do not go below those numbers. So again as previously mentioned about shortages and overtime costs that's where we see a lot of our cost and we maintain that minimum staffing level across the Island at any given time. Substations that's under the control of the girl we have the North Shore, the Princeville Police and Fire Station on one and they were recently renovated I think within the last 5 years. The Kapa'a mini station is pretty much an office and you may know that we're moving and hoping to get into the Kapa'a Armory by June 1 and that would be our temporary April 12, 2012 Police Department p.35 location while we plan for the main Kawaihau permanent district station. Of course we have from the Lihu`e Officers they report to headquarters here in Lihu`e at the main station. In Koloa at the South Shore the Koloa mini station which is adjacent to the K5loa Neighborhood Center we have a small office there. In Waimea we have the Waimea-Fire Police Station which we have plans and we should be on track to move into the new temporary facility which is the old Waimea Dispensary hopefully in August of this year that's in the works right now. The other part of the Patrol Services Bureau as I mentioned is dispatch or it's also known as our public safety answering point or PSAP. For the community that's your 911 operator if you dial 911 it goes directly to that office and one of our hard working dispatchers will answer that phone. It's also known as Kauai warning point and for Kauai warning point its more for weather related or natural disaster type incidence whether it be a hurricane, a storm, flooding, earthquake, tsunami, they're directly connected to the State warning point. So any type of incident that occurs there's a hotline that goes directly to dispatch and it's connected statewide. Of course dispatch primary duties are to receive calls for service and then dispatch the first responders whether it is Police, Fire or Medics and in non emergency cases like a broken water main there would be contacted and they would notify the Water Department, Public Works or any other type even other non county agencies like State Department of Transportation Highways, Harbors, any kind of incidence that occur that's impacting the Community or services the dispatchers are responsible for making that point of contact. Dispatch is also our central communication point, the 800 mega (inaudible) radio is centralized out of a dispatch center that is our main line of communication for the Island for Public Safety and other services. Staffing for the Patrol Services Bureau, we have approximately 126 positions assigned and I'm obviously in earlier discussions we have vacancies but 126 of those positions are assigned to Patrol Services Bureau and its broken down by 89 sworn officers and 37 civilian staff. We have vacancies in every section, every unit in the Patrol Services Bureau so we're spread thin but we're balancing everything out so we can meet the demands. Mr. Furfaro: Could re ou repeat the number for the civilian? Y p Mr. Q uibilan: The civilian staff we have 37. Mr. Furfaro: 37 okay. Mr. Quibilan: That includes the dispatchers, the public safety workers and the clerical staff. Mr. Furfaro: Understood. Mr. Quibilan: As far as operations again as I mentioned we are 247/365, we don't take a day off no matter what the Holiday may be. We respond to calls for services both criminal, criminal activity and miscellaneous type of complaints or even just questions if they want to speak to an officer about a certain matter. Our primary focus is traffic safety obviously we're on the road constantly every single day and every night in trying to make our roads as safe as possible. In order to accomplish that we have a variety of methods and primarily everyone knows the Police Department as doing traffic enforcement which means stopping violators and issuing citations if need be we do also issue warnings. We provide public service announcements and you may have heard some of our officers on the radio talking about seat belt, child safety and such, so we are reaching out to the community. We also at requests provide clinics out there, the seat belt grant does mandate us to go out into the community and do child safety inspections, so we educate the public in that matter. We do bicycle clinics for the young children and we even go out to the schools and talk about Halloween safety, walking at night, talking to people, strangers, and those kinds of things. If I'm not mistaken today I heard something on the radio I believe shattered dreams is going on at Waimea High School, that's another and we're just part of that organization to get the message out to the schools and to the kids especially now that graduation is just around the corner and summer April 12, 2012 Police Department p.36 break for the students in just a couple of months. Again we participate in that and as Chief Perry has mentioned we have a website and last summer we had a summer hire that helped us create videos. Next week we are meeting with the County IT Personnel who will be viewing the videos and they have the captioning already completed on this video so we want to put that out on our website. I was just informed yesterday that they are ready to go. So again our primary function as traffic officers is to reduce the number of deaths and serious injury type accidents on our roadways across the island. Another part of our operation is we recently put together is our Fugitive Apprehensive Strife Team or (FAST). This group of officers was put together last week at the time Deputy Chief Mike Contrades as a Captain in the Patrol Bureau developed this team handpicked and selected these individuals. One of their primary objectives are to identify, locate and apprehend those individuals that are in the community with outstanding warrants or certain types of violations have occurred and they're a big concern. We target individuals that are committing crimes on a regular basis and we try to take them off our street and again that's one of our additional duties. Mr. Furfaro: Can you and I know this has been an item of the past but can you indicate to us any kind of measurement on how we've been able to address in reducing that number of individuals with outstanding warrants. Mr. Quibilan: Yes. The FAST Team their primary focus was on addressing the number of outstanding warrants that was still out there, people were not getting to court or refusing to attend court and they were still in our community causing problems so the FAST Team was created.Also each district commander was given a task to review warrants that was assigned to their district and focus on high profile individuals that we know are creating the problems and do select projects periodically during the quarter. At least once a quarter we go out there and try to identify or actually locate or identify them to locate these individuals. We know that a great number of them are not here on the island and that's through just contacts when our officers go out and try to research them their family members tell us they haven't been living here for a period of time. Some of them are dug in deep, they're just out there, they don't have a permanent residence, they don't have a job and they know if they see a blue & white marked vehicle they're walking in the opposite direction and they don't want to be apprehended. Mr. Furfaro: So with this fast track team was the goal set to reduce the number of outstanding notices from or just give it a percentage the goal was to reduce it by 15%, 20%, I mean what's the measurement there? Mr. Quibilan: Well I can give you the number of warrants that we receive on a monthly basis but as soon as we service a certain number of warrants we receive from the courts more warrants. We have tried to stabilize this and not to let it get out of hand. Mr. Furfaro: Okay so that's the goal to stabilize it? Mr. Quibilan: Yes to stabilize it. Mr. Furfaro: Okay so every sheet of brownies that comes up a new sheet comes in? Mr. Quibilan: That's correct. Mr. Furfaro: Okay I like brownies so... but the numbers are pretty big I just want to say. April 12, 2012 Police Department p.37 Mr. Quibilan: Yes it's in the several hundreds and it use to be up I think over a thousand at one time. Mr. Furfaro: Yes but it's in the hundreds now. Mr. Quibilan: Yes. Mr. Furfaro: But I think there's been about a 30% improvement but I want you to know this council is very sincere that if you needed to have some contract services to get those delivered I don't think you will have a problem hearing from us for some contract money. Mr. Quibilan: Thank you. Mr. Furfaro: Okay. Mr. Quibilan: Going on to support and assistance and what the patrol services bureau and what we do on an annual basis. We support approximately 22 functions, community functions throughout the year and you may know a whole lot of them and I will just throw a few out. The Kaua`i Marathon which has just recently started, the Waimea Town Celebration which is an annual event, Kaua`i Hospice 4th of July, The Kauai Farm Bureau Fair, Lights on Rice, the Waimea Lights Parade and a number of charity walks. In fact later this month we will be supporting the American Cancer Society Relay for Life. Majority of the requests are for either security or traffic control during their event. Some of them attract thousands of people as you know they are using the Vidinha Stadium complex as there venue and we do provide their security. Again there are about 22 of those events that occur throughout the year and every single year. In fact we also support and assist with other Governmental Agencies on their training exercises and they have certain requirements that they need to meet and a part of it has law enforcement participation. Some of them are the annual weapons of mass destruction, the National Guard has a 93rd Civil Support Team that's comes here I think they have been here for 8 years every year during the month of September. It's a joint operation between the National Guard, County, which is Police, Fire and we may have State Department of Health for those types of readiness types of exercise and preparedness. The transportation Security Administration they have requirements at the Lihu`e Airport and at the Harbor, again security and law enforcement type preparation and response. PMRF they have their requirements for security at their facility and in fact this past Tuesday we participated in a joint exercise at PMRF with their Navy Security. This was the second year and it appears to be an annual event and they have their requirements to meet as far as if something would occur on their facility and to exercise to MOU that we have between KPD and PMRF. Other support that we provide is not towards preparation but the Department of Education every year each school on this island exercises their evacuation drill and we are there to provide traffic safety for the kids to be leaving the school campus and getting to their safe zone.A lot of them if the school is close to a main artery, traffic is a concern. Most of these schools are next to a main artery or a highway. That's evacuating the schools. We also have been supporting the kids getting to school with the safe route to schools program so from home or a designated point, walking from there to school so we again provide them support. For non-governmental agencies and organizations, I'm sorry other state government agencies we support with Department of Land and Natural Resources, Department of Conservation and Resource Enforcement which is the DLNR (inaudible) care. We assist them when they have a major investigation they don't have the personnel resources we will augment their operation and back them up with our numbers. The Sheriff's Department very rarely but they will ask us to assist them primarily we will look at evictions, if they know they're going to have a problem with an eviction and they need additional manpower we will come in an assist them. Another agency that we've assisted regularly in the past was the Department of Homelands, r ...,. .. ..... .... ._ ...mow. .. ... .. _ .� �.. . ...� .. ,... v k � April 12, 2012 Police Department p.38 Hawaiian Homelands. Their issue is because they have a large landholding on the island and we have people trespassing on properties who have been camping out and living on property and we are the law enforcement arm for their investigators to come in and remove individuals. So again we've assisted in those areas. Again regarding operations one of our concerns is planning and preparedness, we constantly work with the Kaua`i Civil Defense Agency in meeting and discussion and preparation. As you may know things like tsunami maps, flooding ideation zones, we're meeting with them as far as road closure points, directions and how to get people out of the area as soon as possible. Other preparations we're doing are focusing on with Civil Defense is communication and (inaudible) fortunately we have grant funding and our focus is making sure we can talk to anyone who comes to support us on this island. After a hurricane, after a major disaster if people do come and support us we want to be able to communicate with them and work together with them. Some of the projects that we're working on right now, the ultimate dispatch center which is going to be located adjacent or part of the fire departments administrative offices at the second floor Piikoi Building. At this point yes we have the room available that was in agreement with the fire department. As of yesterday I was notified by the Civil Defense that the last part of purchasing the equipment has been approved by FEMA, that part was the EHP (Environmental Historical Preservation) portion of the grant that took them about 4-5 months to complete. We have the contract while we were waiting for the HP to be completed and approved we were working on the contract. The contract has been already developed and reviewed by our in house attorney, he has made his recommendation, comments, and I think we're good to go as far as sending it up to purchasing now and moving forward with getting the ultimate dispatch center online later this year. The Waimea... Mr. Furfaro: Can I interrupt just for a second. I don't want to go too much further without... because I know there is the recognition lunch today for your group. I just want to point out that the Council certainly appreciates having Chairman Kanekoa here in the audience, Commissioners Iona and Nebre and Randall Francisco, thank you very much as a group of Commissioners for being here demonstrating support for this budget function. I did want to say that because I don't know if any of you are slipping out to go to that luncheon or not but I wanted to recognize that you have 4 of your commissioners here. I will give the floor back to you folks. Mr. Quibilan: Thank you Chair, I will try to wrap this up as soon as possible. Some of the projects we are working on again as I mentioned the Waimea Dispensary we were talking about August to move in. The Kawaihau District Station, the permanent station we have started on that and currently the 800 megahertz radio system upgrade.Although IT and there's a whole lot of other people involved. Mr. Furfaro: We heard from them the other day. Mr. Quibilan: Yes and that's part of our upgrade. Some of our concerns that we have and just from the previous presentation by Chief Perry, and in conversation here all of it impacts patrol, the shortages. In speaking with the commanders in the district and the message to our people at this point, is our memo for the last couple years is "we do more with less" and what that means is if we can't get what we need, can't get the number of officers, the recruits, the recruitments in there on time and if funding is not available and certain things are coming out of the budget we still have a mission to accomplish. That mission is to make this community a safe as possible, to address all criminal activity and I'm asking our guys to step up even through the tightest of times and the hardest or the most difficult of times. Again we have 10 beats out there and we've had 10 beats since 1989, we've never increased the number of officers on our beats so again although the work load has increased we mentioned about earlier the talk was about additional duties. I think Captain Takamura, he is the Administrative Lieutenant overseeing dispatch cellblock, those April 12, 2012 Police Department p.39 operations he has to wear a second hat and do accreditation. There is no one that handles the grant, I wear that hat, I take care the grants. All of these purchasing items, contract items, although we're focused on our primary mission we're always take in additional duties to meet the requirements. More and more agencies, more and more organizations come up and submit letters to the Chiefs office for support and we try to meet their needs as much as we can with the resources that we have. I keep reminding our guys that we just have to keep it going every single day one step at a time and at the end of the day as long as the community is safe. At this point before I end I would like to thank every one of our officers and civilian staff. Most recently for their actions during the storm and disaster for the month of March but primarily if you look at our numbers for our officers last year and I just want to throw a couple of numbers out there, six and twenty'three thousand, six fatalities, 23 thousand three hundred citations issued. We believe that there is a factor in there that the more enforcement, the more that we are out there, the more information we can push the safer the roads can be. We compare that to ten fatal accidents in the previous year and I believe 8 in 2009. I think it was in 2004 that we had like 16 so again we want to keep it at single digits, we really, really would like people to be safe out there and if we can go with zero fatalities on our roads that would be excellent but realistically we obtain a certain goal with six fatal last year. I have to give it all to the guys, the men and women out there that work every single day and night, through shortages, through disasters and the most difficult of times. I thank you for giving me this opportunity. Mr. Furfaro: I thank you as well I felt your report was very complete. I will be sending over one question to help me understand this as we have gone through some emergencies in the past but starting you should also recognize your patrol officers who have done a very good job at the request of this Council visiting this building. We are one of the agencies that you give assistance to but my question is I didn't hear anything is your report that tells us how you work with TSA and I will send that question over. I would like to know what or if there is an emergency at the airport what is the protocol? What body has jurisdiction because I know we also have contracted security there. I will be sending over that question and I thank you for an excellent presentation. Mr. Quibilan: Thank you Chair. Mr. Furfaro: Members any questions for patrol? Go right ahead. Mr. Chang: Officer Quibilan, I will try to be as quick as I can. You say we have 10 officers and 3 supervisors everyday on a given time? Mr. Quibilan: Yes. { Mr. Chang: So just for my knowledge and for the community, does everybody have scanners or radios like whether they are off duty or on duty? Do people monitor as you mentioned the Waimea district from Polihale to `Ele`ele to Koke'e or what have you. So being that an officer may be stretched. I mean what happens when there's a response or a call or an emergency due? Can off duty people respond or what's the protocol? What happens at that given time? Mr. Quibilan: The officers are not allowed to respond unless given authority by their supervisor to respond. However it all depends if obviously we have a really serious situation I would expect the officer because our officers have take home cars assigned to get into their uniform and start responding and calling their supervisor while he or she is rolling out to the scene if it's a really bad situation. pg&4p' April 12, 2012 Police Department p.40 Mr. Chang: Okay and you also mentioned about crime watch and neighborhood... I think I heard you say something about neighborhood crime watch. Is that posted or is that the community or a street or a block that's concern about crime or you guys come around with censored lights or suggestions about overgrowth with shrubs or ways that people come into the community? Do we do that kind of an educational program to do that for the neighborhoods? Mr. Quibilan: Well the neighborhood watch program falls under Kaleo but for us our officers are told at night to leave on what's called their running light and it's a steady blue light for identification as they go through the green lights. Mr. Chang: Okay I just wanted to let the community know that there are programs out there that we are educating them or teaching them. With the rampaid of recently said that crime in the old days you respect the Kupuna or respect the children but there seems to be no respect and people are now getting into neighborhoods much more often or cars or what have you. I just wanted to make sure that the community knows that there's a program or an opportunity to call if they do have a concern within the neighborhood to help out with training or awareness. I think neighborhood crime watch now being that we're under staffed or under men if you will it's our responsibility to police our own areas if you will. I just wanted to make sure that Chief it that... Mr. Perry: Our Administrative Bureau handles our community outreach programs which includes neighborhood security watch which includes training and not only for our community but also for our businesses. There are a variety of ways you can get in contact with us which would be you could write to us, you can call us, you can go on our website and request an officer to come and talk to your group or your organization or even you individually and we would be more than happy to do that. Mr. Chang: And lastly I just wanted to comment, you mentioned the 22 plus community functions that you folks do and I want to just thank you in advance for helping out the Special Olympics, the Annual Troy Barboza Run/walk that happening this Saturday. I believe it starts at about 8:30 and the efforts that you do for the Charity Walk and I wanted wa ted to take this Y opportunity to say I was a little saddened and surprised a couple of months ago to find out that Officer Scribner retired but I want to just give a little shout out to him for his community service with the many, many Veterans Parade. He was a recognizable face at every given function I think that was his role and the community really appreciates his coordination and aloha so thank you. Mr. Furfaro: Okay Mr. Chang and I believe some of the questions might have come up if we want to further engage regarding community watch and so forth we should direct some questions over to Kaleo Perez. Am I correct in that interpretation? Very good, I also want to announce that Mr. Rapozo has a departed for today is Mom is hospitalized in Honolulu so he will not be with us the rest of the day. Other questions for Patrol?Vice Chair Yukimura. Ms.Yukimura: Actually Chair it's not a question I just want to thank Assistant Chief Quibilan for a very thorough and informative report. I want to also acknowledge and thank you for the really clear commitment to getting the job done with excellence no matter what the circumstances. We really appreciate that commitment. Mr. Quibilan: Thank you. Mr. Furfaro: Well said Council Vice Chair. Go right ahead... April 12, 2012 Police Department p.41 Mr. Kualii: Thank you Mr. Chair, just quick in the budget would your patrol services bureau be listed as just police because I didn't see the breakdown as patrol services bureau. And the other thing I think it would be... because I think you said there was 89 sworn and 37 civilian right? Mr. Quibilan: Yes sir. Mr. Kualii: But actually the breakdown of those positions wouldn't show or doesn't show in the budget in this separated out what I guess is the bureau where all the positions are in the Chiefs office. If your positions are dedicated to your bureau (inaudible) and that's the case with the different bureau's? Mr. Quibilan: That's correct. Mr. Kualii: Than it would be better and maybe Finance can work on something in the future because that's that the Fire Department has done and I think it's easier for us to have a sense of what you're working with and what you need as it breaks down by the different services and different bureaus. It's just something going forward, thank you for all your work. Mr. Quibilan: Thank you. Mr. Furfaro: Excellent point for future considerations on programming for all departments.Any other questions before we go to the next division? No, thank you again and just for your general information because we met originally in a full Council Meeting as we go through the process here when we go from recess to recess if we get down to 3 people we are still a committee. I just want to point that out with some conflicting needs of Councilmember's today, okay next one Chief. Mr. Perry: Thank you Chair. The last but not least is our investigative bureau with Assistant Chief Roy Asher and just a comment on the breakdown of the way it's done. The positions are all under the Chiefs office which is unusual for me because where my prior life, it was broken down by not only divisions but it was it was broken down by districts so you had a better understanding of who was where, what positions were where so maybe that would be a good idea to have it broken down like that. Mr. Furfaro: Yeah we just went through the same thing with the Fire Department so... Mr.Asher. ROY ASHER,ASSISTANT CHIEF INVESTIGATIVE SERVICES BUREAU: Good afternoon my name is Roy Asher, I'm the Assistant Chief with the Investigative Services Bureau. First I want to apologize for not being here early in the morning I was called away to court. Mr. Furfaro: Not to worry it's understood. Mr.Asher: Well let me give you an overview of our bureau and like (inaudible) said there in the forefront and the others are in the background. The Investigative Services Bureau we do it all and we do it well with the support of them of course. We are broken down into three sections within the bureau. The first one would be the general investigations which comprises of a Lieutenant and 11 Detectives that handles all sex assault, property crimes or crimes against persons, robberies, homicides, the whole cabinet of crimes. We do the follow up of what the patrol does in the beginning, they do the initial and we do the follow up and that's limited to felony cases and the misdemeanor stays down with patrol and they handle that from beginning to end. Of course we are available to assist, we do all the search warrants and arrest warrants when need be April 12, 2012 Police Department p.42 for misdemeanors and felonies. The next section we have is our special focus group which consists of a lieutenant and two detectives that mainly focus on white collar crimes and internet crimes and that's the specialty investigations. We have our youth services section which comprises of our Dare and SRO, the School Resource Offices. They handle also besides their normal work they also do the alcohol and tobacco stings that we run periodically. Attached to that section is also our Domestic Violence Investigation Coordinator, it's a civilian position and our missing person youth counselor position. Finally the third section within our bureau consists of a Lieutenant, 2 Sergeants and 11 investigators and that's the one we've always been short of as far as vacancies we actually only have 6 investigators. The 2 Sergeants one is operations and one is asset forfeiture and the asset for forfeiture was vacant for quite a while. In speaking of vacancies we operated this past year with a 31% vacancy shortage in my bureau alone but we make do. I know that you guys are anxious to go to lunch so I'm trying to make this fast. Mr. Furfaro: Did you say 37 percent? Mr.Asher: No 31 percent. Mr. Furfaro: 31 percent. Mr.Asher: I will give you an overview and one of the highlights or initiatives that we took this fiscal year is that we changed our schedule for our detectives to get a better coverage and utilize our people while we are in a (MOU) with the union. What our normal schedule was, was a Monday through Friday 7:45-4:30 was a normal detective schedule and we also had a standby a rotation standby where we had a detective on call 24/7-365 days that was available to be called out for any case that patrol may have generated of anything. We switched again with an (MOU) with what we call a 4/10 schedule which is a 10 hour work day at 4 days out of the week with either Friday off or Monday off, but we have a coverage again throughout Monday through Friday. In conjunction with that we had an A&B watch but because its 10 hours the first watch began at eight in the morning and ends at six in the evening. The second watch starts at noon and ends at ten so we've increased our coverage as far as the detective coverage and so we only have a very short window when we don't have a detective available but yet again we have them on standby. Again let me say the Investigative Services Bureau and I'm very fortunate that I have a bureau that's made up of ranking officers majority are Sergeants or Detectives which is a rank of sergeants and our officers are all special skilled officers in our vice unit and school resource. I have real good personnel and I don't have many young officers a lot of them are seasoned or ranked so it was very fortunate for me. Mr. Furfaro: Excuse me Roy, I just want to make sure the arrangements you just told us about the flexibility in the schedule and so forth, you told us you have an MOU with the unions on that? Mr.Asher: Yes. Mr. Furfaro: Is there a time frame on that I mean.... Mr.Asher: It's a 6 month and we're in our 3rd month right now. Mr. Furfaro: Okay and so it's a trial period? Mr.Asher: Yes. Mr. Furfaro: Okay thank you. April 12, 2012 Police Department p.43 Mr.Asher: And we're going to make some changes because right now like we said one watch is off on Friday and the other watch is off on Monday and we're going to tweak that because on the Friday I don't have a 3rd watch a 2nd watch I mean 3rd watch, and then Mondays I don't have a 2nd watch because they're off so we're going to divide those A& B teams so that we have complete coverage through all the watches. Some of the initiatives because money is tight we were able to go out and get through VAWA Funds (Violence against Women) funding to fund our Sane Program. I'm not sure if you're familiar with our Sane Program (Sex Assault Nursing Examiners) as part of our SART (Sex Assault Response Team) and the County funds those exams where the victims are not willing to make a police report but they still need the exam, so we were able to get funding for that to do those exams. In seeking that grant we also got monies to do some DNA testing as well as standby pay for our civilian sex assault nurse examiners. Last and again I apologize I wasn't here when they discussed that ID Tech Position. We also have internet crimes and that's one of our problems and more and more we're getting victims from internet crimes and cyber crimes so we have in our budget a request to buy a computer. In cases where we ceased computers sometimes they erase everything and this computer will allow us to extract that information. Right now we are sending this type of work out, out sourcing it to HPD or the States and we're not the highest priority and that's something we actually can do ourselves if we have the resources. Our detectives are actually trained in that but they just done have the resources so that's one of the things we really would like to see funded. Mr. Furfaro: So is that hardware and software for that? No, is it in the current budget or it hasn't been placed in? Mr.Asher: It wasn't in last year's budget and we had some issues with IT but they're coming around and helping us with that. Mr. Furfaro: Well thank you and we'll follow up with that. Mr.Asher: Last is our training budget and we still follow the same philosophy that I shared with you the last time around that we focus on bringing the instructors here now rather than sending our officers out to training. I give you an example when we budgeted for our homicide training we were able to secure the instructor here Vern Geberth. He's the guru of homicides he's out of New York and he was able to come out here and what we normally spend on two officers sent for one week we brought him here and we were able to train all our detectives, all our supervisors in patrol as well as 2 or 3 officers from every other county came to attend that. We had over 33 attendees to this training so that's the philosophy for us with training if we can bring the instructor here we would rather do that and get everyone trained. Mr. Furfaro: And I think the instructor would rather see himself coming to Hawai`i from New York. I think it's mutually beneficial. Mr.Asher: Yes we have never had any problems it's just getting on their calendar yeah. We also have again in support of our programs we've got several and I'm not sure if it was discussed but all the grants that we got particularly in vice. Our domestic (inaudible) eradication we have a hundred thousand in that and in support of that operation that's green harvest. Then we have the high intensity drug trafficking task force, that's 31 thousand and we have the Hawai`i narcotics task force a hundred thirty three thousand and the state marijuana eradication task force is a hundred fifty four thousand and we have a program with the US Marshall for eight thousand. We also have for every sale of alcohol to minors program as well as the tobacco program, it's all grants that we got and that in itself totals 19 thousand and those are the stings that we do. Mr. Furfaro: Is that shared with the Liquor Commission? April 12, 2012 Police Department p.44 Mr.Asher: That's in conjunction with them. They attend with our officers and their agents and we've been doing this program for about 3 years now and we just approved for continuous of another grant but we still at 24% non compliance. That's sad and it's been talked about at the Council as well as the Commission. They know we're coming and it's still 24%... It's sad. Chair Furfaro: Let me see if there is any questions at this point for your division.Vice Chair Yukimura you have any questions at this point? Ms.Yukimura: Just a preliminary comment, it's very impressive that this pilot project of changing you investigative schedule and kudos to you and the union for coming up with it. It's an example to me of a mission driven department because you figured out you know what your job is and you figured out how to do it rather than just staying in t he old ways.Also the shift of bringing in trainers instead of sending your people to training sounds like a real plus so thank you for that. You're list of grants, is that something you can submit or is it in our material submitted to us? Mr.Asher: No but I can get it to you. Chair Furfaro: Okay we will send that out as a question typed to you. Ms.Yukimura: Okay and your ID Tech, I may have missed it, I know the position has been mentioned but can you give a little bit of an explanation as to why it would be important to you. Mr.Asher: Right now we are the only County that doesn't have a Evidence Specialist or Crime Scene Specialist to collect the evidence, process it and that. That's one of the things that we in prosecution it gets attacked is evidence handling. Right now what we rely on is we have a Lieutenant assigned to that position that collects the evidence and for the most part we have to source out our testing because we don't have that specialty. In no fault of the Lieutenant but often times they are initially not properly trained for that kind of work so when we do train them they rotate through promotions, transfers or retirement. With the positions that we are seeking we will get professionals that are schooled in that and are certified in that type of specialty and hopefully with some continuity as well in the two positions. Again I have to emphasize we are the only county that doesn't have that and we're still relying on a sworn person to do that. We invest in the training but like I said they rotate out and we start from scratch again and that's the thing that gets attacked in the case. We can have a solid case and O.J. Simpson's case is a prime example of how they attack of the evidence collected. They use specialist you know... Ms.Yukimura: What that would do also is to free up your uniform Lieutenants to do the other work. Chair Furfaro: May I add a question to that please? Ms. Yukimura: Yes go ahead please. Chair Furfaro: Do you have a job code category that's been identified for that position? Mr.Asher: We're in the process of writing the positions, I've gotten job descriptions from Maui as well as O`ahu and the Big Island. I have samples for us to write and put together. April 12, 2012 Police Department p.45 Chair Furfaro: I think we're going to send the question to you as well if we could get at least one example of that position if you could respond to us I would appreciate it. Vice Chair you still have the floor. Ms Yukimura: I'm pau thank you. Chair Furfaro: Oh you're pau. Mr. Kualii did you have any questions? Mr. Chang? Council women Nakamura? Thank you very much again for a thorough report, we've got about 4 questions for your division will be sending over to you. Mr.Asher: Thank you. Chair Furfaro: Chief we are back to you and before I take any public testimony if you want to give a summation here that's fine, if not... Mr. Perry: No as you can see our duties and responsibilities are many and diverse and I'm so happy that we have the experts over here to help us move this department forward and keep our community safe. With your continued support we would like to keep this department marching forward to a just be better and actually my goal was to be the best department in the state and we're working in that direction so that's about it. Chair Furfaro: I'm going to see if Mr. Iona from the Commission wants to give any testimony and then I will open it up to other testimonies. Charles our testimony period we will give you 6 minutes by our normal rules. CHARLES IONA: Good afternoon Chair Furfaro and members of the Council, Charles Iona. I would just like to testify on some of the topics that have been discussed earlier during these last couple of hours. For your edification the issue of continuous recruitment has been brought before the commission and we have talked in length and in great detail about the recruitment process and what's involved. I can share with you that I believe now under the refocusing with acting Chief Kaleo Perez and how ANT wants to handle the recruitment, I believe we will get a better response. The Police Department in it of itself is a different breed of animal and that is that's it's not like any other organization where if you were to get a recruitment process in there, there are certain guidelines that are met such as Engineering or something that needs a license to even be considered. What happens is you get raw recruitment that comes in and just to get through the front door you go through so many steps, then comes the background side. I think the Chief touched on the fact that you can fast track a lot of things in our professions, the Police Department you just can't do that. Because there is a very, very severe backlash if you don't catch the problem right from the get-go. A lot of Police Departments now have changed and I know when I went through my recruit training, firearms training came in the back end of the six month training. What they found is with all that money spent if you can't shoot a gun you get weeded out you don't become a cop so you lost all that money in the beginning so now a lot of training brings the firearms in the front. So with recruitment it's an ongoing process and the Chief we've asked in much detail how can we get that to the forefront. I think one of the things is the Police Department in and of itself, they serve the community but at the same time it takes a certain type of approach to recruiting, it's almost like with Hotels as you've mentioned several times. You have your marketing division you go out and you attract. I think Maui was one of the first years back when we were in there when they kind of went out over the edge and made it they glamorized police work in a sense and we never saw it before but it did help. I noticed over the years because the standards being so high the recruitment process takes even longer. I can tell you for myself in 2006 I thought I come out of retirement and I applied for the Kauai Police Department and I know the Chief don't want me to say this but I did, and I April 12, 2012 Police Department p.46 passed with flying colors and went through the assessment process and all that and I can truly say that as I speak right now I still haven't gotten a letter whether I've been accepted or not. So again I say that because with his leadership and so forth I think things have changed and it will get done faster. Addressing Councilmember Chang's idea of the de-briefing, you talked about de-briefing, Kaua`i was the first after Hurricane Iniki-post Hurricane Iniki, I was assigned to the Federal Government on a sabbatical with the US Department of Health and Maui was use as a pilot program for the critical and (inaudible) stress debriefing unit. We came on line first and we came here and we were assigned to work with Kaua`i Police Department Personnel because of all the horrific situations they were faced with. Honolulu took off after that which they continue to have a peer counseling program and one thing that have been mentioned over and over again is that when you are exposed how do you unexposed yourself. That's why it's so important to have a unit like that within the organization. I can tell you with the Honolulu Medical Examiner's Office and this touches on accreditation, that medical examiner's office and was mentioned yesterday that Kaua`i Police Department and the Chief Of Police is the coroner. Because of the population base in Honolulu the medical examiner's office is a standalone that does a death investigation aside from the police department. That office is accredited as in only one of four in the entire United States that is accredited, so I know the process they are talking about, I urge this body to support that process because as a death investigator we had to have so much training in forensics and the application as to how forensics is done, the science itself. The accreditation I believe Honolulu just got their second accreditation process through. I think going forward it speaks a lot for the police department and we at the commission are very, very up on that program and want them to be accredited because it talks with much authority especially when you go into court that you're coming from an accredited body it speaks a lot for itself. Lastly I'm open for any questions that you may have. Chair Furfaro: Charles you were in the audience when I indicated after we get through the budget cycle I'm going to put in Mr. Rapozo's committee this issue about recruitment of candidates for the police department. Mr. Iona: Yes sir. Chair Furfaro: And I would hope that you folks would participate when we do that but I will put that on as a new item after we get through the budget. Mr. Iona: Will do. Chair Furfaro: Are there any questions for the commissioner? If not Charles thank you for being here.Anymore testimony from the public?I'm sorry I got Jessie in the back. SHAYLENE ISERI CARVALHO, PROSECUTING ATTORNEY: Good afternoon, Shaylene Iseri Carvalho, Prosecuting Attorney. I was not previewed to the conversations that have taken place earlier I just wanted to touch up on some of the things that I brought out last week. It is the Prosecuting Attorney's Office position that the records department, especially at the police department, are really the bricks and motor of the organization. They work extremely hard and they provide an extremely vital service with respect to the impact on our office. Of course all of the officers have a huge impact and I believe they are doing a great job the officers and I also believe that the records department is doing an excellent job. I do believe that if they had more resources that they definitely would be able to do an even better job. There is only so much work that one human being can do and they do the utmost best in providing the services to our office. All of the records that the police officers do all of the court records of warrants of violations of orders of protection of restraining orders, all of those are funneled through the records department before they are sent out. Meaning that when an officer goes out on a beat he comes across a defendant and they do what they call a warrant check or BOLO (be on the lookout for a person to question) all of that is entered onto the RMS system so we have to ensure that all of the records are updated if at all possible that very day, April 12, 2012 Police Department p.47 that they're imputed and updated that very day especially when we're dealing with high level intensity type of offences like restraining orders etc... I believe that they are doing a great job, I looked over the budget and saw that one of the clerk positions that was suppose to assist with the imputing and scanning of documents at the police department was removed and substituted for another position. I find that that would be an error for the department, Again this is not something I'm previewed to as to what the chief has stated as far as what are the needs for his department, I'm basing the needs on the needs of my department and having to rely on the records that come to my office as well as to the other police officers. When we have an abuse case or an order of protection case, all that information is information that we constantly call their domestic violence coordinator to determine if there are these documents in place. So they need to be updated regularly and I believe again the best job that they can but this one person is doing an extremely wide range of responsibilities that if she had help I'm sure she would relish in being more productive then what she is right now. So that is the records clerk, there's also and we have talked over numerous meetings about not only retention but about recruitment and that is also the Personnel Clerk which I believe when I looked at the budget was also slated to be removed out of the office. I would find that this would be a disservice to the department and all of its efforts towards recruitment because this person is definitely a crucial asset to the department in this regard and definitely because of the confidentiality work that is involved at the police department that position should stay within physically as well as the job duties because it takes all of her time to be doing the recruitment for the police department that be housed physically at the police department. I also and I'm very proud of the police department coming forward in trying to get civilians for their ID Technicians to process the crime scenes. I have been on numerous crime scenes and it's amazing what the detectives are able to do because they process entire scenes. It's not only the detectives or the officers but it's also the high level people. You have the assistant chief also collecting evidence; you have the Lieutenants, the Captains, they're all involved participating in the process collection and processing of evidence. If we had civilians that would do this it would seriously cut down on the time that we need in order to subpoena because every person that collects evidence is one that will be subpoenaed because there's a chain of custody requirement by the State in order to prove the case beyond a reasonable doubt that we cannot have any link in that chain of custody at the time we present it in trial or the case will get dismissed. So if we have a lengthily trial which a lot of times we do whether it's a drug case or a firearm case or anytime evidence is collected we have all of these officers waiting to testify. They come numerous times because they have to come at motions to suppress evidence which is pretrial motions and if we are successful at that we have to subpoena the same multiple witnesses to come to court at the time of trial in front of the jury. So there are a lot of manpower that could otherwise be out doing investigations where this ID Tech (persons) I see 2 in the budget 3 would be extremely nice or 1 in every district and the reason is because it would save so much money compared to the overtime or even the time of officers having to wait outside the court. Only one witness can testify at any given time but we have to subpoena all of our witnesses to be present at the first time that the hearing is scheduled. So we have a hearing we just got back from a hearing I had 3 officers that were present there at a two voluntariness hearing motions today that were there from 8:30 until we came here which was afternoon and they waited all day until we finally presented evidence. Because we can only call one witness at a time we still have to have and required to have all our witnesses present in court in order for when that witness finishes the next one is ready and available to come forward to testify. A lot of manpower is placed at the court and so if we had civilians doing that we would also of course obviate the need of having 6 officers who process the scene to maybe having one or two civilians who are waiting at the court to testify. They will also be again specialized but these officers have been doing so much of the processing that they are pretty well experienced now in processing scenes, however their time could be better used doing other things as opposed to establishing chain April 12, 2012 Police Department p.48 of custody of the evidence they collect.And those would be my thoughts with respect to those types of positions and again they are the bricks and motor of the organization and I believe we need a strong foundation on the very bottom of these kinds of workers that are out in the field in order to sustain the top level and high quality detectives that are doing complex investigations. There time would be better best served doing that type of work as opposed to the data collection and recovery of processing at different scenes. Chair Furfaro: Okay, well thank you very much I do want to let you know that position 346 which is the records position caught our attention today and certainly there's going to be more dialog on that. Secondly the HR Committee is our next item after lunch and we seem to think we need to have more dialog in a separate committee meeting about that position that's supports recruitment in the police department so your points are well taken. Ms. Carvalho: Oh wonderful thank you. Chair Furfaro: Any other questions for the Prosecutors Office? Thank you very much. Ms. Carvalho: Thank you. Chair Furfaro: I think that chief we're going to be calling this piece to a close, we will be sending over some questions we have. We would like when required to get a 48 hour turnaround time but if there is something that you can't or you need more time just indicate that you're requesting more time and more research on that item. I don't think we're going to make at quarter to one, I don't think we're going to make your luncheon. Please acknowledge that we did have an opportunity to recognize the supervisor in the 911 department and communications, but I don't think we're going to be making it since it started at 12:00, sorry and I apologize for that. Mr. Perry: We can make a plate... I would just like to thank the council again for all of your support and this budgetary process so far has been painless. You more than any other body feels our pain and feels our frustration in moving the department forward. With your continued support I look forward to great things to happen in the near future. Chair Furfaro: Well thank you very much I don't want to over promise but we're certainly going to look at these points that have been brought to our attention. Thank you and like I said in the beginning, thank you for all the work that's done by your staff, your department, the commissioners and everyone associated with public safety. Mr. Perry: Thank you. Chair Furfaro: Thank you very much. B.C. we're going to go into recess for lunch and members lets come back at 1:40 or let's do 1:50 in case some of you want to do the shuttle. The budget review was recessed at 12:46 p.m. April 12, 2012 Personnel p 1 The Departmental Budget Review reconvened at 1:55 p.m., and proceeded as follows: Councilmember Bynum (Excused) Councilmember Rapozo (Excused) PERSONNEL DEPARTMENT Chair Furfaro: Good afternoon. Thank you for adjusting the time for us to start this piece as the Council wanted to attend the recognition luncheon for our Public Safety Departments along with our 911 Department recognition so I had asked that we would start at 1:50 p.m. and we are actually starting at 1:55 p.m. so my apologies. I am going to ask if we can have Department queries right after the overall presentation I guess Malcolm as you will be making it. We will be four Members for a part of the day but since we called the meeting together with a full attendance we will continue to operate with as many as four Councilmembers present. Mr. Rapozo has left for the afternoon headed to Honolulu. His mom is in the hospital. Mr. Bynum has acknowledged that he might not be in today because he is under the weather. Vice-Chair Yukimura will be departing at approximately 2:30 p.m. So who is going to be making the initial presentation? It would be much appreciated if you folks can tell us who your team is and come up to the Microphone. Gary, are you going to be giving us the overview along with the Committee? As you folks were outside the room I announced that we are going to be losing Members periodically so I want to get you some Q & A for Vice-Chair Yukimura from the beginning so are you going to be making the presentation of the reorganization? GARY HE n G HEU: I am U a not going to be making the presentation. Chair Furfaro: Well that is the person we would like to hear from. Mr. Heu: What we are going to do is bring up and introduce the task force that has been working on this initiative and they will be making the presentation relative to the proposed Human Resources Department and transition from our current Department of Personnel Services and then after they do the presentation I am sure there will be a lot of questions and they will have answers for you folks and then we will transition into actual Department of Personnel Services Proposed Budget for next year. Chair Furfaro: So let us get started with the overview first if we can Gary because I have Members leaving at 2:30 p.m. Mr. Chang: You want to just state your name for the record. Mr. Heu: Sure. My name is Gary Heu, Managing Director. At this point in time I would like to call up John Isobe, also Janine Rapozo, and I believe Karen Matsumoto is also with us this afternoon. The one team member who is not present is Deputy County Attorney Marc Guyot. Chair Furfaro: We have three microphones Gary. Mr. Heu: I'm sorry, Kris Nakamura, I'm not sure if Kris wants to come up also but Kris is a member of the task force also. April 12, 2012 Personnel p2 Chair Furfaro: Let us have her come up. Let us place another chair there. All of you folks if you can just hug a little closer we would appreciate it. John, if you want to introduce all the Members first for the record and then you can start the presentation. JOHN ISOBE: Good afternoon Councilmembers. Chair Furfaro: Good afternoon John and it is good to see you. You are a Member of this Committee but you have retired from the County, is that correct? Mr. Isobe: Yes, serving on voluntary basis at this point. Chair Furfaro: We like volunteers. Mr. Isobe: Let me start by introducing the Members of the task force. To my right are Janine Rapozo, Kris Nakamura, and Karen Matsumoto. The other individual that is also a member but is unable to attend this afternoon is Marc Guyot from the County Attorney's Office. So we are here this afternoon to present to you the task force recommendation on restructuring the Personnel Department or expanding the functions of the Personnel Department into a Human Resource or to incorporate an expanded Human Resources function. Let me start with some background. The purpose of the task force was really the impetus was provided by the Cost Control Commission back in May of 2011 and the Cost Control Commission recommended that the County Administration conduct an internal review to determine the feasibility and cost implications if personnel within the various Departments who are currently performing Personnel and or Human Resources functions are transferred to the Department of Personnel Services to consolidate responsibilities and eliminate duplication of work and expand the functional responsibility of Department of Personnel Services to include employee training, workers compensation, safety awareness, injury prevention, employee benefits, and work force planning. These recommendations were also supported by the Civil Service Commission. The next slide shows the current structure of the Personnel Services Department and as you can see within the Personnel Services Department it is overseen by the Civil Service Commission. Then you have the Office of the Director, and the functions that are currently being performed by DPS are labor relations, recruitment and examinations, classification and pay, and transactions. As you can see the overall organization or structure is fairly flat and consists of a specialist who is assigned specific departments and responsible for assisting with all of the personnel functions that I just reviewed. What we found in our review is that the current structure of personnel services had some challenges. One of which is decentralize technical personnel expertise and duplication of efforts between the various Departments and the Department of Personnel Services. There was a lack of consistency in the County's Policies and Procedures among the various Departments and the Department of Personnel Services. There were some challenges in the timely filling of vacancies, a lack of a full range of HR functions such as benefits, workers compensation, health and safety and training, and lastly the long term cost from exposure to liability issues associated with variations with policy management and decentralized personnel operations. So what the Task Force did is we went through a methodical review process as we conducted our review and evaluation. First we reviewed the organizational structure of other Government jurisdictions as well as private entities. Next we reviewed the position descriptions and conducted written surveys of all Departmental Personnel Staff. Then we also conducted direct desk audits of Departmental Personnel Staff. We determined the functions and manpower needs of the restructured Personnel Department, conducted reviews with the Director of Personnel Services, the affected Department Heads, and the HGEA, and finally completed an organization plan including appropriate .,. _ .. mac. April 12, 2012 Personnel p3 Departmental Positions to be transferred, developed some classifications, and looked at the associated costs for this restructuring. The next slide shows you an overview of what the proposed restructuring would look like. As you can see the Director will continue to report to the Civil Service Commission. However the Department or the proposal is that the Department be restructured into distinct divisions that will handle various Personnel functions. The first is the administrative services and benefits division that will oversee all employees' service, programs, and benefit, manage and update employee record, coordinate the development of personnel rules and also provide general clerical support to all of the division. The other division would be the recruitment and examination division that would assist departments with recruitment and selection of qualified candidates for County jobs. Another division would be the classification and labor relations division. They would administer classification and pay plans for County positions, conduct classification review, prepare and revise class specification and position descriptions, recommend compensation levels of the various positions. In addition this division would participate in collective bargaining, contract negotiations, conduct grievance hearing, and advocate for the County in arbitration cases, and assist Department in coordinating other Personnel management processes and resolve employee management related problems. We also added a Health and Safety Division that would be responsible for countywide training focused primarily on health, safety awareness, and injury prevention. Also in the area of workers compensation, ADA and EEOC related concerns. The result of this would be acentralized personnel department that offers a full range of human resources services. The next slide is actually the proposed organized structure and the various positions that would be included in the Personnel Department. The new organizational structure has been designed not only to expand the current capacity of the Department of Personnel Services but ensures that each Division within the Department had sufficient staffing to provide timely response and service to all of the Departments in the County. It is also intended to address the challenges that currently exist by 1. eliminating duplication of work effort between DPS and the various Departments, provide consistency in documenting and implementing Personnel Policies and Procedures, consolidate the technical expertise within the Personnel Department so it is equally available to all County Agencies. It streamlines the processing of personnel-related requests both for the Departments as well as the individual employees in the County. Coordinate and conduct training for all County Employees and mitigate personnel risk and legal Claims against the County in the hope that it would decrease cost and liabilities for the County of Kaua`i. What we anticipate will happen once this restructuring is finalized and fully operational is that the County will see improved HR services and responsiveness from DPS since the various HR functions will now be strategically located in the Personnel Department and assigned to Divisions that are overseen by Managers with sufficient staff to effectively serve all of the Departments. More specifically it is expected that DPS will provide timely support in filling vacancies, work with the various Managers and Supervisors on individual employee and or union complaints, providing advice and support on complaints and grievances, assist in conducting internal Personnel related investigations such as harassment, ADA, and EEOC complaints, provide clear, consistent, and timely guidance as well as training on proper implementation and discipline regarding work policies such as leave abuse, tardiness, work place violence, discrimination, etc. And lastly, the streamlining and consolidation of HR functions into the Department of Personnel Services should free up time of various Departmental staff that were formally assigned HR duties and allow the respective department heads to allow these employees to function on other unattended responsibilities within the respective Departments. We also have a few more things that the Task Force is still reviewing. In the month of April we are still reviewing the office space requirements and any other budgetary requirements that may be necessary. In May, we hope to finalize the eligible list for vacant positions in the Department of Personnel Services. In July, fill the vacant positions and transition the current employees from other departments to the Department of April 12, 2012 Personnel p4 Personnel Services, and lastly in October, hopefully have a fully functioning and restructured Personnel Services Department. In closing, what we found is that in order for this effort to be successful there needs to be the corporation and support from management at all levels. The other thought that we had is that the County really is a service organization and as all of you know if you look at the County Budget, approximately 80% of the operating budget expenditures are personnel related cost. For this reason the benefits derived from moving towards a comprehensive full service Human Resource structure should have an extremely high impact on the County's overall performance and success. That really concludes our short presentation. The members of the Task Force are here to respond to any questions. Thank you for your time and as I said we are here to respond to whatever questions you have. Chair Furfaro: John, I am going to pose one question at the beginning here. If we can have the lights on I'd appreciate it. I am going to give the benefit of some of the questions to Vice Chair Yukimura who is going to leave and then with the four of us that is left, we will go around with periodic questions. As you said in your opening narrative, this process was brought about by the Cost Control Commission. Where is the narrative on their recommendation? Mr. Isobe: The narrative is part of the Cost Control Commission's report. I do not have it but I can get you a copy of that. Chair Furfaro: I would like to request. I want to make sure what they recommended and what we are looking at as goals kind of parallel what the recommendation was to begin with. So on that note as I indicated the Vice Chair might have to leave and the four of us will continue, but I would like to give her the floor first. Ms. Yukimura: Thank you Chair, actually I am not sure that I have that many question, I don't mind going around (inaudible). This report, which is a first impression report for us because we have never seen any of this before is greatly it is well done. I appreciate it reflects a lot of work and thought and I think it has been long overdue so I appreciate all the thinking and design work and homework that has been done in order to get to this place. I guess the first question that comes to mind is how this whole plan has been introduced to the Departments and specifically to the personnel who will be transferred in terms of explaining to them what the rationale is and getting their feedback and preparing them for this kind of a transition? Mr. Isobe: Well the Task Force actually has been having a lot of dialog with both individual employees that are proposed to be transferred as well as with the affected Departments and as we went through the review process initially it was amongst the members of the Task Force. As I had said, we reviewed initially the position descriptions and looking at the positions descriptions formulated our initial recommendations if you will and decided that to validate what was on those position descriptions we went through and conducted some audits of the various people to talk to them about what they were really doing as part of their everyday activities and what was surprising, at least for me was that in certain cases the position descriptions and what the people were actually doing did not align. As a result we then made adjustments accordingly based on their functions that they were actually performing in the Departments in terms of coming up with the recommendations. After we did that review we then sat with the individual Department Heads and reviewed our findings with them as well as some of our recommendations and given the input from them adjusted again. What you are now seeing is the, I guess the combination of all of those various discussions. From that point we also then did an overall April 12, 2012 Personnel p5 presentation to KCT which is all of the Department Heads as well as had a conversation with the HGEA representatives locally here on Kaua`i to review these recommendations. So, it has been a work in progress and kind of a back and forth dialog in terms of how we arrived at these final. Ms.Yukimura: That is good and I think that is how it should be (inaudible). In a regular dialog and kind of an evolving plan (inaudible) I was wondering if any other members of the Task Force have (inaudible)? Chair Furfaro: When you want to speak you just press down on that, just like I am doing right now as I am reminded by(inaudible). Then the mic works. JANINE RAPOZO: I think what John said is basically what we did and it was a lot of work of back and forth with the Departments and the employees. Considering a lot of different things and that is why our recommendations have changed several times and this is the final recommendation based on all of the input that we could gather and to the best of the knowledge that we gathered this is what we came up with. So, we thank all the Departments that were involved and all of the employees for all of their honest input so that we could get to the place that we are. Ms.Yukimura: I presume the dialog was extensive with the Civil Service Commission as well? Mr. Isobe: We did a review with the Civil Service Commission. Whether or not it was extensive... Ms.Yukimura: Are they on-board? Mr. Isobe: Yes, yes. They are fully engaged and well aware of what we are proposing. Ms.Yukimura: So my other question is I presume you have done an evaluation or analysis of the legal requirements or structures and you feel that this can be done within the existing legal framework? I know Mr. Guyot is not here. Ms. Rapozo: Marc would probably be better to answer that question, but this is really being considered as a reorganization of the department, and so the only difference is that we are crossing over departments so that would be part of the budget process, and that is why part of the budget process involves the transfer of the positions. Ms.Yukimura: I am sorry, did not hear your last comments. Ms. Rapozo: This is considered a reorganization like any other department and normally it is with positions within a department that are reorganized. This is actually crossing over departments, and that is why it had to be part of the budget process, to move the positions. Ms.Yukimura: To move the... Mr. Isobe: Existing positions in the departments into Personnel. Ms.Yukimura: I should know this, but I do not. You are allowed to move positions interdepartmentally when they are empty or when you are reallocating them and you are not allowed to do it when there are bodies? April 12, 2012 Personnel p6 KAREN MATSUMOTO: I believe you are allowed to move positions... Ms.Yukimura: You should state your name, Karen. Ms. Matsumoto: Karen Matsumoto. I believe you can move positions through reallocations or reassignment of work across departments if you come to Council and change the funding because it relates to the Operating Budget. But other than that, within its own department, they would be able to do reallocations. Ms.Yukimura: I think, Chair, (inaudible) Council Chair Furfaro: So everybody knows, before we go too far, Mr. Chang and other Members, I passed out to you the records that we had from the December 15 Annual Cost Control Report. That is what we have, John. In that report there is only about 1-1/2 pages of narrative that deals with this consolidation of the HR Department. I just want to make sure what I am looking for is more of an overall position statement that was discussed by the Cost Control Commission because they are not the efficiency committee, they are not the revenue committee, and they are the cost control. So I think I want to make sure I understand this recommendation was based on what assumptions they made to save operating cost, other than the fact that we just transferred certain pieces to other departments or other departments lost people, but it was transferred over to the new central piece. I just want to say to me this is the only piece we have and it is the Cost Control Annual Report of which only about a third of it is talking about personnel management. So if there is any other strategic paper that they worked on as a commission, I would like very much to have it. Mr. Chang, you have the floor. Mr. Chang: Thank you Chairman and Karen and John thanks for volunteering and Janine and Kris thank you for being here. I have a couple of questions and excuse my ignorance if you will but we are looking at this in my case for the first time as far as Human Resources. I think most people realize and understand that Human Resources Department is very important. But, wouldn't have this been a good agenda item to make a presentation prior to the budget just to let us know what was coming down the pipe, because I do not know how much Personnel will we end up with in Personnel/Human Resources, what would be the total bodies? Chair Furfaro: Before we go any further, let me answer to the Committee's position on this. We had asked for a separate presentation. They had preferred to do it during the budget time because I think as Janine had mentioned earlier they were kind of fine tweaking it for a period of time that at least that is how I understood the explanation that you needed that window to have a complete proposal and I am not here or there on it I am just saying that they did initiate what they felt was their explanation that they had not tweaked it far enough to actually prepare it earlier. If I am wrong on that assumption please... Mr. Isobe: No that is absolutely correct. Anything that we would have come up and said earlier would have been subject to change and in fact as I was saying that the initial assumptions that we had made have changed continuously as we gathered more and more information. And the difficulty at least from my perspective having served on this Task Force is that had we come up and made certain assumptions, those assumptions may or may not have been accurate at that time and would have been cause for potential mis information and further confusion and that is why we had requested that we be allowed to work and try and finalize the recommendation before we came up and did any kind of updates. Mr. Chang: So, I am glad that I started off with excuse my ignorance so we can forgive that part. So how much personnel would we end up with in this department? April 12, 2012 Personnel p7 Ms. Rapozo: Right now the Department of Personnel Services has 9 employees, including the Director, it would end up with 18, so it will double. Mr. Chang: Did we have a posting or what did we do? Did we inquire about having a bona fide Human Resources Director? What are the qualifications of being at top management? I am looking at the budget right now. We are going to have a Director of Personnel Services; we got HR Manager II, HR Manager II, and support staff. What did we do on a classic note? Did we say County of Kaua`i looking for a Human Resources Director? What was the gist of the Task Force? I mean is there somebody that is a classic 10, 15, 12, 5 year human resource director? Ms. Rapozo: Right now the position will remain as a Director of Personnel Services and that person is appointed by the Civil Service Commission and I believe the qualifications would be by Charter. We left that as is. As far as the other position the HR Manager, the HR Specialist, Clerks, and Assistants, we did come up with position classifications or looked at the position classifications that were available from other jurisdictions and try to find a way of what this department would need man power wise and expertise-wise in order to be successful. Chair Furfaro: Mr. Chang, before you go any further, you know we are going to start getting into some legal questions and they have already started. Can I ask you why Marc is not here? Ms. Rapozo: He had another commitment is what he told us. Chair Furfaro: You know, Mr. Heu, I want to let you know, our commitment, the single biggest thing that we can do in the year for the year is review this budget. I just wanted to ask, you know we are going to have to change the tape in 5 minutes here. Today I still actually got some narrative from another Department who was delinquent on what (inaudible). Everyone knows this calendar. We put this calendar out. Do we have a County attorney available to us then today during this budget session? When we take this recess I think it is extremely important and the reason I say that is I have experience dealing with all of the factions of Personnel. I mean between the Moana Surfrider and the Princess Kaiulani, we had 21 hundred employees operating the department. At Sheraton Waikiki we had 18 hundred employees. These numbers are bigger than the employees that we currently have but I would certainly like to have some crossover from questions that are legal to have someone from the legal department available to us. Why don't we take a break? There being no objections, the meeting was recessed at 2:28 p.m. The meeting was called back to order at 2:38 p.m., and proceeded as follows: Chair Furfaro: Mr. Chang, you have the floor. Mr. Chang: Thank you Chairman, I think when we last took our break I was trying to understand the whole process as far as like a classic Human Resources Director and how do we assign a Manager from within when we never had a Human Resource Department? Ms. Rapozo: I'm sorry. Is the question how are we assigning the duties of the current staff to HR? Mr. Chang: I think more of the qualifications. Let's say for example I am running a hotel and there is a Director of Human Resources who had 20 years or 15 April 12, 2012 Personnel p8 years. I mean you hear of a classic Human Resources Director. You open up a hotel or you go to a hotel somebody has 20, 25, 30 years Human Resources. My classmate is the Director of Human Resources at the Hilton Hawaiian Village with 18 hundred employees. She has been there forever and you go through the Human Resources and you become a Director. So what I am trying to say is that you got a Director and the Director has several Managers but those Managers probably were well versed somewhere or another within Human Resources so when you break down your columns as far as the three Managers like Recruitment Examination Division or Pay Labor Relations Division or Health and Safety Division. It seem to me that you would have a somebody in Human Resource with that classic background come in from the outside if you will to manage Health and Safety because they had years of expertise on that Pay and Labor Relations with that subject or Recruitment Examination. So I'm thinking if we are pulling people from various Departments, what are their qualifications or what is their experience to lead this very important Human Resources Personnel Department? That is what I am asking. Ms. Rapozo: The Task Force did look at that. They did look at once the determination as what Divisions would be created and what manpower would be needed. It was looked at how best that the Department could be serviced with people and whether or not they are qualified to take those positions. So that assessment was done. There are also some vacancies within there that is being posted and of course those people come in with the necessary minimum qualifications and experience. Mr. Chang: I just wanted to say, when the budget item came up I was trying to make different calls with the various hoteliers that I know, not just on the island but in the State and when I hear that there is 18 in the Human Resources Personnel and I understand County and State runs different but the Chair had made mention about the Sheraton chain or the Sheraton Waikiki or what have you, Hilton Hawaiian Village between their timeshare and their hotel has 18 hundred plus employees but they have13 personnel in human resources so I'm trying to figure out whether it is 11,038 or so County Employees with 18 Personnel. I was just trying to get a correlation as to how do we compare apples to apples or oranges to oranges. I am just trying to figure this out myself because like I said, excuse my ignorance right from the bat, but I'm just trying to figure out how this works because everybody, well most of the people I talked to all agreed that it is long due that our County has a Human Resources Department. Mr. Isobe: I am sorry. I am still not clear on the question. Mr. Chang: The question is we are going through the budget right now and when we go through the budget as everybody gets scrutinized or there is a wish list or what have you, when you look at the amount of positions that we are creating especially with the pay scale of many of these Managers, how do we justify a salary based on experience, skill level, or that is what I am trying to find out right now because when you look at your bottom line here for your yearly expenses for Personnel and Human Resources that is a substantial amount of money for top management, and I just want to find out what the skill level is and what is the background. What are the years of experience in your classic Human Resources Department? That would be the question. Mr. Isobe: You're talking for the Division people? Mr. Chang: I am talking for our Personnel Human Resources Department. Mr. Isobe: In terms of each of the positions within the Department or I'm sorry... April 12, 2012 Personnel p9 Chair Furfaro: Dickie you want to give me a chance. I'll try on this. Mr. Chang: Yeah, well I'm going to try one more time. We have a Human Resources Department of 18 perspectives, a staff of 18. With the Director of Personnel a Human Resources Manager II, a Human Resources Manager II, a Human Resources Manager II all of which are making somewhere around 6 digits. So what is the rationale of having 1, 2, 3, 4 top ranked officers or managers if you will, managing the Department and so these people that will be coming into their position, I am just trying to figure out what is that skill set, where is the history behind Human Resources because if we are elevating from what I am hearing different people coming from different Departments, are they ready? Or are they skilled? Or do they have that experience leading a Department which is a brand new Human Resource Department for our County. I guess the bottom line I am saying if there was any recruitment from the outside just seems as though a classic Human Resources Person could have came from, let's say for example Wilcox Hospital, St. Regis, Amfac or you know that kind of a thing that it's a bona fide director of Human Resources. Mr. Isobe: I guess the simplest way for me to answer that question is that for those people that are currently within the departments that are being proposed to be transferred they already hold comparable positions to what is being recommended in this proposed organizational chart. For those positions that are currently vacant or that are being newly created we are going out and recruiting for people and as a result of that recruitment we would require that those individuals have a certain amount of skillsets relative to the pay classifications those are pretty much set by the compensation, the government compensation plan, is the best way I can describe it. Mr. Chang: I think you might have mentioned that earlier. I'm just trying...it's new and I believe it is well needed but I am just trying to figure this out on a fiscal side as we scrutinize throughout the budget. It is not something personal. I am just trying to figure this out. Mr. Isobe: Again, if you look at the structure. The Managers and the Division Heads are proposed as EM-3s. So there is a salary range if you will for EM-3s and that is the proposed salary ranges that are being reflected in the budget. Mr. Chang: Okay, thanks John. Chair Furfaro: I would like to take a moment to try and frame this a little bit for myself and see if we agree. I am putting this flip chart up for the focus of Scott is going to put it up on the board at the same time. First of all I think you know I am looking for some recommendations that came from the Cost Control Commission that talks about the structure and the importance that they felt in pulling it together. Now what I want to know is as we are going through these other departments within the organization called the County of Kaua`i, I am going to categorize HR Front Office, HR Back Office, HR Center of Excellence. For example in the "Center of Excellence," I am going to ask like do I assume that we are going to have centralized training. Is that training going to reflect the culture of the County and the values of the County, we are going to have a mutual recognition of who our internal customers are, who are external customers are, because that's been used in people's presentation but the definition of internal and external customers has never been defined to this body. I am sorry if I am using a few years of maybe 38 years of cultural training in the visitor industry but everything I hear we are going to answer the phone with aloha, we are going to service customers as real clients. Where are those kinds of things happening? April 12, 2012 Personnel p 10 Front Office: okay, central point of contact even just to apply for the job. What kind of faces are we going to have on the counter? Recognition Programs: employee of the month, employee of the quarter. You know the face on the front. The Back Office support for HR. Payroll: what are we doing with payroll? We just had the State recognize that they had $2,000,000.00 worth of payroll errors in a period of not more than 6 years. $2,000,000 of missed errors and these come through on what I know as in the hotel business as a SR report which is a code. This is what you get paid for this negotiated piece of job classification and so forth. Over all Benefit Management: In the back office also, in there we have our labor contracts. I am just talking in those terms. Down here in the center of excellence, what about the corporation's issues amongst employees? How are we getting that message out to them when a vacancy occurs and so forth? Right now I see it on the web and so forth but now you having one central place do that. They cannot walk in and see my Nancy Fontanilla here because they want to apply for a position that is open in the Police Department in their civil pieces. Have we gotten this far in your presentation? Has this been presented to the Civil Service Commission as these are the functions? And then if we have one overall Human Resource Director who are these Departments run by when they fall in? Are these other not Human Resource Directors they are a Human Resource Manager in the back office who is in charge of payroll, benefits, and labor contracts? Have we gotten this piece that far? Mr. Isobe: From the Task Force perspective, my simple answer is yes. All of those things should be addressed. I cannot as a member of this Task Force say to you how it will be addressed. I can tell you we have talked about it. I can tell you that we agreed that all of those things need to occur. Relative to payroll, I believe we are still recommending that payroll stay in the Finance Department and not move to HR at this point and we looked at that. A lot of the issues have to do with how the HR Department or the Personnel Department is ultimately put together and managed. So is there an expectation that there will be centralized training, is there an expectation that there will be improved customer service both for the internal and external customers? Absolutely, that is the expectation. Chair Furfaro: Okay. Let me point out HR front office, I'll put another one here, recruitment. I am looking at the Police budget and their key person is being moved. If I was the Chief of Police, how do I know that I am going to get better service in a Department that currently has 24 vacancies and we are lucky if we are doing interviews at a pace that every eighty days I am at least clearing one applicant for references. But we are moving the Police person to this new Department. That is what I read in the organization act. Am I right? What assurances if I am the Police Chief that I am going to have kind of attention given to my recruitment? Ms. Rapozo: Chair, you know as a Task Force we did look at a lot of those things, as far as we are making these presentations, we are making these sort of promises or expectations to a lot of the Departments, but the Task Force really is making recommendations to the Departments with the hope that the Personnel Department, the restructured Department will take the recommendations and implement them. The Task Force at this time given the structure that we are proposing feels that with that structure they will have enough resources to be able to address all of what you have stated on the flip chart. April 12, 2012 Personnel p11 Chair Furfaro: Okay. Let us drill this down to one. Let's just talk about recruitment. I have had in this week in the budget I have had situations where recruitments have gone 6 months because of interpretations presently left at the discretion of people other than the Division Head that needs that kokua. The position is approved. HR has no say in a position that has been approved by this Council. It is in the budget, it is funded for the budget. So let me ask you that. We knew that last year at budget time. Where does this stumbling block occur in recruitment? I mean it currently exists. We have got to recognize the current challenges we have. Now if somebody said to me, well the current Personnel Department is somewhat understaffed da da da ... or they are not automated or something like that I can understand it but if I am trying to cure existing shortcomings but I don't understand even some of the minute details of what this overall management change in Human Resources is going to deliver for the (inaudible) of the culture at the County of Kauai. I got to have a better understanding myself. I mean right'now we go into areas like labor contracts. I have always felt badly for Malcolm because at the end of the day the Kaua`i County we only have one vote when it comes to bargaining. Malcolm goes over there, sits at the table, listens, and so forth, but all it takes is the Governor with his four votes to convince one Mayor what is going to happen and it is done. We live with it. To me that is the bigger part and I think at one time, and I am not sure, the State Hospitals also had one vote. So at one point the Governor doesn't even have to get a Mayor to agree. He can just get the State Hospitals system and it's done. We have to be real about those things, but more importantly then, we have to make sure if that is the outcome of the back office and labor contracts we have got to make sure in our HR center of excellence we have some very good internal control concepts. Especially when it comes to payroll grades and so forth, but now you telling me payroll is going to stay in accounting. It is the single biggest expanse of the County is raw payroll, followed by at least another 67% in benefit administration, but payroll is not going to be moved into a control of this central system as I heard it right now and I am just saying I looking for more in this new Department. That is what I am saying. I am looking for a center that serves all recruitment, management, benefit administration, labor negotiations, and we got some hurdles based on the way it is currently set up for who has the voting rights. Once it is done then we got to administer it but I don't think we can administer benefits and have payrolls in another area. I personally think that it should be part of the HR Department for the Department of 1,118 employees that is a sizable number and to me is it 17 that the 18 people you told Dickie we would have at this new organization? I can live with that number as long as I know that all of these things happening there. We are not duplicating other parts in other departments. It is either all managed in a central system or I don't think we are going to make the kind of improvements that we would like to. I think we are...how do I want to say this? We could be setting ourselves for a little failure. All of the benefits, all of the payrolls need to be managed in one place. Sorry I had to draw this out but that is what I am looking for and I think there is a difference between overall HR directors that moves this team. Now, if Marc, and thank you for coming over, you want to add something, you can press the button and speak. MARC GUYOT: Chair and Councilmembers (inaudible) ... Chair Furfaro: Let us make sure you understand you are always welcome, especially on an important item like this. Mr. Guyot: And I had planned to be here. I am working on a deadline. I have to fly to Honolulu tomorrow to file something at an agency there. I am having technical difficulty following you this afternoon while I was at my office so I have not really seen what has gone on. I have looked at the presentation previously. What I wanted to speak to Chair was... Mr. Chang: You may want to state your name for the record. April 12, 2012 Personnel p12 Mr. Guyot: Marc Guyot, Deputy County Attorney, and member of the HR Transition Task Force. Of the three areas that you have put up on the flip chart and Scott has put up on the screen for everyone, they have been addressed within the program perhaps just under a different title, a different hat, but they are all areas that we are concerned. Central points of contact have been discussed to centralize as much as possible within the HR department. Recognition programs: The HR Department would be envisioned in being able to insure some type of uniformity between the departments whenever possible but that is something that really should be by the department. Using a hotel as an example, people from the building shouldn't decide who the housekeeping of the month is. So to a certain degree there has to be an interaction between the individual departments... Chair Furfaro: I want to make sure you are making my point because in the hotel business whether you are in the back of the house, purchasing, the front desk and so forth you all have a common value and a common culture. Mr. Guyot: But for recognition purposes you know the employee of the month should I think be decided by the individual departments. Recruitments as you have pointed out have been a problem and it is a problem with the current system that we have. You specifically mentioned Police. That has been an ongoing problem with or without the individual that is there now that is doing a fine job. Chair Furfaro: You just said something that I don't agree with. I am going to let you know that more resources should have gone to the Police Department. I don't think we should have depended on off duty officers to be doing background checks and so forth. Get some reasonable professional help in there. That is important. Mr. Guyot: Chair, the understanding that we had heard for a while was that the department was looking at outsourcing that and so there might be some miscommunication on that but that is something that should be looked at as well. Chair Furfaro: They will be coming back on that subject because 24 vacancies in the Police Department with the amount of effort I have seen that we have placed, to me is unacceptable. Between Fire, between Police, between Civil Defense to me that is ... at our level of political subdivision. I mean that is the primary retinal for government. Public safety. Mr. Guyot: That is one of our most important functions, Chair, and that is what the community expects of us. The issues of payroll are intertwined with each of the specialized unions and the respective departments, specifically Police and Fire, tied into Finance as well as IT. We essentially have two full IT people that work on the county payroll system. It is incredibly complicated with the FLSA for the different pay grades and rates that the different employees are given. In order to be compliant with previous lawsuits, it is kind of a specialized area. Chair Furfaro: I understand that because I have been on the Council when we have settled those lawsuits and I can tell you right now, much of the comments (inaudible) payroll records and so forth. I mean it was surfaced to us with the people from accounting. The accounting group that was here, that we have not filled vacancies and we only have two people in the County who are qualified currently to manage our timesheets and payroll records as it is. That is to me, that is an important piece especially we are now looking at new electronic payroll systems and recording the documentation. I mean it is giving us another opportunity when we look at the HR department. Where should that function be? Do we have the right personnel? Do we have the right payroll system? I am not saying they're all going to get sorted out right now. I hope you understand that John. I am saying those got to be on the radar screen too so we can constantly make improvements with this new centralized HR Department. We got to put some goals out there and April 12, 2012 Personnel p 13 they have to be realistic. They got to have some reach,but they got to be realistic too. That is what I am asking you guys about looking into. Mr. Guyot: These are all areas that we have looked at and for our initial presentation with the first transition from DPS to HR. Those are areas that we wanted to focus more on the HR function at this point and payroll is an important aspect of it. And it was considered and making the step from 8 or 9 to 18 is going to be a big step. Then if we start to incorporate the finance and it, you get a lot of things that start to go beyond pure HR if you will and they are all important areas but right now the recommendation from Cost Control Commission was to have an HR Department for the reasons. Many of the reasons they mentioned were pure HR type functions and that is what we tried to focus on. Chair Furfaro: Well I was trying to go through the December 11th annual report and it was about a page a half of narrative which was to me not enough to understand, and ideal .... I mean I have dealt with personnel matters my whole adult business career and guess what, there have been times where I have promoted a lot of people and I tell you there is at least five or six general managers floating around now that worked for me. At the same time I can tell you there is at least five or six people that are floating around that well documented we parted ways, and what I am saying that has got to be the whole picture. Performance evaluation, payroll controls,just like I brought the ... maybe it is better for us to only start with the front of the house kind of pieces. Then kind of develop this kind of back of the house training and cultural and value system. Mr. Guyot: Actually Chair as the three main areas that you put in the HR back office that maybe one way to do that is to separate them out initially. As you know the labor contracts are done with Malcolm with his one vote as well as the Departments who works closely with KPD, Fire, and then we work with the other two unions, UPW and HGEA. The overall benefits most of them come out of EUTF as well as negotiated within the labor contracts so those are quite entwined. But your center of excellence we have looked at centralized training and that is what we have started on our own in the last year and we plan to do more of that so there is consistency so that everyone is on the same page and the culture of Kaua`i is promoted. Internal/external customers, the discussion that we've had in the Task Force is looking for a HR/DPS/HR Department that asks what can we do for you? How can we make this happen? Tell us what you need. And that has been an area with the extra people that we feel that department would be able to do that. Cooperation issues amongst employees, I think that would come under the centralized training and being able to handle employee disputes. Many times it is with the guidance of HR in the department and then depending on it may be strictly within the HR Department. Chair Furfaro: And again you are making my point. Trying to take this in phases might be much better for us and then we have a common vision of where we want to go to and a common agreement. When we talked about values that are important to us and so forth as a culture here in the County, I mean we should have a pool of employees that we are talking to them about what do they value in what they do with their jobs and so forth, and that would launch a kind of a cultural issue that we can all agree on. Do we have an overall mission statement for the County? No? Do we have various mission statements for various departments? I know we have one here. Do we have a value statement for the County that all the employees have participated in? Those are the kinds of things that I am saying that if we chart this out it might be better and I want to make sure you get my message here again. I am for centralizing HR. I am for it because I think in the long run it will cultivate the culture, the attitude that we want, in our corporation called the County of Kauai. I just need a little more depth on these phases that and these might be just basically the wrong but I think you can follow it for me. April 12, 2012 Personnel p14 Mr. Guyot: I think that is where I was trying to go, Chair. At least two of the three we have incorporated into the current HR transition and the third one with the back office, it can go either way but it is still being addressed currently between Finance and IT as well as within to a certain degree the HR Department. So we have called it different names and I was just hoping to clarify that potato, potato kind of thing Chair. Chair Furfaro: Okay. I just want to say this two position so far because of the needs that are in Public Safety I have to tell you I am concerned with the moving or the eliminating of records person in the Police Department being merged, their number being consolidated and going to administration, man that gives us tons of exposure if we get contaminated evidence. You know what I am saying there and the other one is the issue with recruitment in the Police Department by kind of putting their person in a central area. I mean if we had 7 vacancies average a year I might go along with this, but you know the 24 vacancies we have right now. We have 24 vacancies in the Police Department since I have been on the Council. Doing the same of what does not work does not get us to the conclusion and I am very worried I think the department in the next four years has twenty-one retirements, potential retirements, and we are struggling to get nine people out of a training class. It is not working and then the Chief would lose that position. He needs someone in there that is really dedicated to recruit them. (Inaudible) job number I think 345 or 346 was going to remain there but more focus on recruitment then they can send them to a central place but who is focused on that recruitment? I am worried about that. And I mean that. There has been twenty plus vacancies every year that I have been on the Council. But you know what by honoring my other Councilmembers they are all probably writing questions down and saying the Chair is taking a lot of time and maybe he'll give me a time to speak. I have said what I need to say and we will go around the table here but please consider what I am saying here John as this thing develops. Councilwoman Nakamura. Ms. Nakamura: Thank you Chair. Just to get up to speed I have a question about one time we had received a correspondence from Sherman Shiraishi asking us to comment on a proposed Charter amendment to create a department of Human Resources and I was just wondering, it seems like we moved away from that and or have we not? I just wanted to get an update on just the basic foundation of this change. Will it require a Charter amendment or not? Mr. Isobe: In response to that, the Charter amendment proposal was really something again that came out of the Cost Control Commission and the thought behind that was prompted as part of their discussions as I recall. They, the Cost Control Commission had wanted initially to do a I guess it was called preliminary audit of the Department of Personnel Services to see in fact what were the functions and whether those functions were in fact being adhered to and carried forward. The response that they got from the Auditor's Office was that the Charter currently did not specify that certain human resources functions were under the umbrella of the current Personnel Department and so what the Cost Control Commission proposed was that the Charter be amended to in fact incorporate a more expansive human resource function and responsibility. The other thing that also surfaced as part of that discussion was that whether or not this could be handled under reorganization, if you will. Which is how the Task Force was formed and the work of the Task Force currently is being conducted is looking at reorganization of the current Personnel Department. The difference being that the work that we have done and the recommendations that we are making can be undone, if you will, by future Administrations or even the current Administration and so what we have suggested is that the Charter amendment be held in a abeyance for now until the Human Resources expansion or the Human Resources functions can be imbedded into the Personnel Department can be reviewed because this really is a work in progress and some of the things that the Chair had mentioned in fact are anticipated to occur but how it ultimately occurs, some of it is really management, others are philosophical in terms of what ji April 12, 2012 Personnel p 15 is the culture going to be, what is the mission statement of the County and the values. So once those things are more refined then the County may want to consider moving forward with a Charter amendment at that point in time because if the Charter amendment were in fact to go forward it would solidify everything in concrete if you will. So what we said is allow this transition to occur. See how the transition works. I am sure in future years what you are going to find is further refinements and improvements are going to be necessary. Once the County has decided that this is in fact the way it wants the HR Department to then look and function then you will put the Charter amendment before the electorate and see whether or not that is something that can be supported. Ms. Nakamura: It is legal to proceed down this path? Mr. Isobe: Correct. That is the information that we received. Ms. Nakamura: Do you want to expand on that, Marc? Mr. Guyot: No. The County Attorneys had provided an opinion and I did not author that particular opinion but my understanding is that we are able to proceed in the way Mr. Isobe had just explained. Ms. Nakamura: Would it be possible to get a copy of that opinion? Mr. Isobe: I believe we submitted to the Council a copy of the opinion that was given to the Cost Control Commission. Ms. Nakamura: Okay. I think it is in here. I think I did see it. I have another question that has to do with proposed organizational that is on page 8 of your presentation. I am looking at the different boxes there and trying to relate it to your budget on page 62 of the entire budget. Some of the positions were blank in here. The Director of Personnel Services, what is the classification of that position? Mr. Guyot: Councilmember, it is not a classified position. It is covered in the salary ordinance. Ms. Nakamura: Okay. Got it, so that is not included. The HR specialist I. Ms. Rapozo: That is an SR-20. Ms. Nakamura: And the Private Secretary? Ms. Rapozo: It is an SR-20. Ms. Nakamura: It is an SR-20, okay. There was a blank so I just want to clarify and on this list we received from in response to questions the Council sent over dated March 21. There is a list of the 17 different positions within the County that have some Personnel Function. I believe there is a list of 17 with a percentage of how much of the time they spend on Personnel and then another list of 7 identified as they also have some Personnel function so a total of 24. So some of these got moved over and some are going to remain so and this is a follow-up question you don't have to answer now but could we get a ... and it should tie together with the budget that has been presented. I am assuming since we have 18 in this new organization and there are nine existing employees, no contemplated retirements, or vacancies. Ms. Rapozo: There are vacancies right now at DPS. April 12, 2012 Personnel p16 Ms. Nakamura: But there are nine positions got transferred over. Is that correct? Ms. Rapozo: Correct. Ms. Nakamura: So maybe that would be the nine listed here. One of the things I noticed in the organizational structure and I think it is tied into the Chair's comments about performance evaluation and training. What box does that do those two functions fit? Because that was the whole idea is to elevate the way we do Human Resources in the County and performance evaluation is something that really we all know has not been done very well and not consistently so what box does that fit into as we look on page 7 of the proposed restructuring. Mr. Guyot: As you are looking at the organizational structure, Councilmember Nakamura, under the Human Resource health and safety section the box on the far right, the arm going down, the second level has a training and workers comp individual. So working with the division head as well as that person they would work on the centralized County's training. As far as the ... you would go to the administrative section which is on the upper left HR Specialist I, and that is where the notices of reviews and evaluation would be coming out from the HR Department as we envisioned it. There would be some training that would be going on on the supervisory levels so that there are consistent, well thought out, and quality type reviews and evaluations for employees. That is where the guidance that we envisioned would come from the HR Department. Ms. Nakamura: That's in the admin box? Mr. Guyot: Yes, the upper left hand side. Ms. Nakamura: So that is performance reviews? Mr. Guyot: That would be covered. If you look at the narrative structure, the proposed restructuring functional statement you would see that in there. Ms. Nakamura: Is that employee services programs? Mr. Guyot: That would be one of the areas covered by that. Ms. Nakamura: Just in that Health and Safety Division, somehow training ... it seems like... training does not seem to ... it seems to be buried in there where it seems like that is a really key function of that section so that is just a recommendation that somehow training be put into the division title so it is not ... Mr. Guyot: The division title is Health, Safety, and Employee Relations and this is more for the centralized types of trainings-harassment, discrimination, workplace violence, workplace investigations, management supervisory training, how to conduct evaluations, working with the unions to get better understanding of the union contracts and how to apply them, and how to do grievance properly and discipline. Ms. Nakamura: What is that section that say assist and coordinates with other personnel management processes in resolving industrial industry? What does that mean? April 12, 2012 Personnel p 17 Mr. Guyot: That may be a typo that would be covered under either work comp, or training. Looking at incidents and accidents that happen and also taking a look at near miss accidents trying to... Ms. Nakamura: Industrial accidents? Mr. Guyot: Yes. Ms. Nakamura: And one of the questions I had also had to do with ... is there a representative of the Civil Service Commission here? And just to I am sure you presented to them and can you kind of summarize their response to the plan? Mr. Isobe: I don't know that I can speak for the Civil Service Commission but as I have indicated, we did make a presentation. I think at least from my perspective they acknowledged and were fully engaged I guess in terms of moving forward with the proposed recommendations. I think we all agree that there is still a work in progress. There is a lot that still needs to be done and even the Chair's comments I think are well taken. The devil obviously is in the details and a lot of it has to do with how the department ultimately comes together and how the department ultimately is managed and it is the hope of this Task Force that those concerns that have been raised and this is not the first time quite frankly that we have heard these concerns. The concerns have been raised to us even in our conversations and with various department heads as well as employees. But again from the Task Force's perspective we believe that the structure that we are proposing can in fact fullfill the commitments or the anticipated commitments that we are making but again ... Ms. Nakamura: Just a final question that has to do with the salaries of the top employees here. Of the four positions it adds up close to $400,000 which represents 38% of your total salary budget line item. So I was just wondering was there research looking at comparables of what other Counties pay for these HR Specialist, HR Managers, and HR Managers that are being paid between$92,101. Mr. Guyot: Yes, Councilmember these salaries are consistent with similar type of individuals in other counties. Ms. Rapozo: And actually Councilmember Nakamura, those positions that are being transferred is actually being downgraded. They are actually right now holding EM-5 positions and they will be reallocated down to EM-3s. Ms. Nakamura: So these are existing positions. Ms. Rapozo: Correct, filled positions that are being transferred from other departments so that figure is actually in the budget elsewhere currently. Ms. Nakamura: That has been removed from the budget in order to accommodate this. Ms. Rapozo: It is being removed from that department's budget and transferred to Personnel. Ms. Nakamura: Thank you very much for that clarification. Chair Furfaro: Ok, Mr. KipuKai. ill April 12, 2012 Personnel p18 Mr. Kuali'i: Thank you Mr. Chair. Aloha unto all of you and mahalo for your work as a Task Force, especially to the volunteers. It is a little odd to me that I have to direct my questions to you when I would rather direct them to management, like the Personnel Director or to one of the six figure executive assistants of the Mayor. I think this is a really big project and I appreciate your work but now you are sitting on the firing line and as Citizens and I don't think that is right. I don't think that is fair. I also don't think it is fair that we are only hearing about this now. For whatever reason even if you think theremight have been changes as soon as you had some structure, some idea of what structural change you wanted to make it should have come before us because then we could give you questions and then we could have more information. You could at least know what information we want. I want a lot more information than this. This is presented and you have presented it in such a wonderful way but it is more like the narrative and the theory. And it sounds great but it doesn't tell me truly exactly what...where we going from and where we going to and why and how and that we have the support from each position that is being altered. We are hearing like the Chair said from of the Departments that perhaps some of these positions you are removing from other departments to put into this new Human Resources Department they are going kicking and screaming because they have a lot of work to do for their Department and even in your own...I would have liked to have seen this chart, the proposed new structure. It shows 18 positions what was each position before and what is each position now. Specifically where did it come from, what department, what was it paid in its former place, what was it entitled, what was the position title and what it is in this new position. We could have seen each block been shown twice. A block of what it used to be and a block of what you are proposing it to be. This structure is nice because it gives us little bit of narrative but that is hardly (inaudible) which gives me information to compare and I am wondering why there are three divisions that seem to have importance in that they have Human Resource Managers to head them up. One of them with only two positions under that Manager, one of them with three positions under that Manager and another one with three positions under that Manager. Yeah there are different areas actually it is not even titled here on this chart, but the fourth area being...so you have recruitment and examination, classification and pay, labor relations, and health and safety division and then there is a fourth division and it's administrative services/ benefits but is not given the weight or importance to have a manager and in fact the person heading that up is paid half the salary but has to oversee four staff and has to do all of that. Plan, develop, administrate, employee service programs, administer benefit employees systems program, administer and audit employee records management activity, coordinates development of Personnel rules, provide clerical support to division personnel. I would imagine they would have to support all the departments as well. How does that not get the weight that the other divisions get? This is a big change and a big investment and even though it might have been proposed as nine existing positions and nine new positions that are just being transferred from other departments so there is no real additional expense involved. I think there potentially could be a lot of additional expense if you are taking away from departments and they have to scramble and figure out how to get things done on their end without the support that you just taken away from them and especially if as a result of what you are establishing you not providing them any better services. So maybe there needs to be some way to try...I just do think enough or we don't know enough for one thing and I would like to see more information and it would have been nice to get it earlier as opposed to now. If you can provide a new chart with those exact old positions and new positions how all 18 positions lay out. The prior positions, the new positions, and the prior salary the new salary, the prior responsibilities, the new responsibilities, you did show this, I don't know that you presented it yet. I kind of figured it out, it is saying that everything is being done now in the middle by the Personnel/ Human Resources Department and then you have the arrows going this way if it is the things that the Department of Public Services was already doing and the arrows going that way are the things that was coming out of the Department but there are still a lot of things that were left to the Department and I want to see how that is being continued on within the Departments if you took the position away. That would be good to know. Thank you. April 12, 2012 Personnel p19 Chair Furfaro: Mr. Chang, do you have more comments at this point? John, I think what we probably want to do is we have got a few questions to send over. I think the biggest one I have shared is isn't it better for us to get real specialized in these three areas and phase the plan in but that I subject to probably that an understanding that you have with the Civil Service Commission and I think right now we might probably want to talk about Personnel with the Personnel Director who is here. Before we end this session I want to say thank you to the Task Force because I think we are really addressing common observations that need addressing and hopefully give us the right outcome but we will go right into Personnel. Did you have another question, Nadine? Ms. Nakamura: No. I was just going to say that this represents a lot of work and a lot of thinking about how to make this shift in the County which is huge so thank you g Y g Y very much for your work. Mr. Isobe: If I can make a couple parting or closing comments relative to everything at least from my perspective that I have heard. Chair Furfaro: Parting comments we will accept. Mr. Isobe: Thank you. I think in any large organization or any organization change is really really change is really really difficult and what makes change in a lot of incidents hard is the unknown and I understand that the individual departments may have concerns about transferring employees but I would that the Council really look at the fact that yes the employees are being transferred from one department into the Department of Personnel Services but along with that functions are also being transferred. So again please bear in mind that a lot of the functions that are currently being performed within the departments are now going to be assumed by DPS. The Task Force did put a lot of thought into which positions should be transferred and it is hoped and anticipated that at the end once this transition is complete, the departments will actually see an improved level of services and at a very minimum a consistent level of service more than what they are getting right now and that is really what is anticipated. It is not our objective to try and hurt any department. Chair Furfaro: John, I want to let you know that I agree with your statement as in my lifetime I have changed from Sheratons to Westins, Hiltons to Outriggers, to Inter Continentals and the bottom line is any kind of change is really important to communicate the retinal and the benefit of the outcomes, because people have to buy into it and I think what we are hearing now is not so much a rebellion of the idea, it is venting few other concerns that have come up. In particular those are concerns that I want to continue to have dialog on because that is the only way people will accept change, so I do agree with you on that item. Before I call up the Personnel Department, John, I want to say thank you very much for continuing to be doing volunteer work for the County but we need to take a 10 minute break and then we will have Malcolm come up. There being no objections, the meeting was recessed at 3:38 p.m. The meeting was called back to order at 3:58 p.m., and proceeded as follows: Chair Furfaro: Hi, welcome Malcolm. April 12, 2012 Personnel p20 MALCOLM FERNANDEZ: Good afternoon Mr. Chair and Councilmen, Malcolm Fernendez, Director of Personnel Services here to present Department of Personnel Budget Presentation. Chair Furfaro: Malcolm, before you go too far, I think based on the (inaudible) committee that is talking about this restructuring and so forth and that is really the budget we have in front of us how they presented the restructuring. I think most of our focus is going to be on other things that have impact on the budget right now like I would like you to give us some better understanding what is happening since that is your role, like with the bargaining units. What is our status with HGEA, what is our status with UPW, because I think you also senge some of my frustrations with the fact that some of those things were just flat out out voted on? Also some of the administrative things that you might want to surface with us about the budget as it relates to other cost associated with benefits and so forth. Things that might or should be on our radar screen right now and any follow-up you can on any idea on staffing issues in particular for the Police Department recruitment because we are at a point now as you heard me say, I have been on the Council 10 years and we have had 20 vacancies every year. We cannot be trying the same things and if you had anything to offer on that. That is what I would like to give you the floor on first. Bringing us up to date on bargaining unit issues, recruitment process and other things that you can add to kind of enhance what we have already seen in the restructuring of what will become a pretty big department so why don't I give you the floor on that. Mr. Fernandez: In regards to the labor status right now we have an agreement with HGEA and it has been completed and we also executed a supplemental agreement with HGEA. For UPW we have agreement also with the master contract with UPW with a supplemental agreement pending. For the other units SHOPO and HFFA we are currently still in negotiations and moving towards arbitration on both of them. Chair Furfaro: Moving towards arbitration with Fire and Police? Is that what I am hearing? Mr. Fernandez: That is correct. Chair Furfaro: And what is the hurdles that are making us probably agreeing on arbitration. Mr. Fernandez: Well they are looking at really the cost items are items that are going to be determined by the Governor and the Mayors. Right now in negotiations we looking at the non-cost items which are mainly are operational issues that we try to settle before we go to arbitration so again it is a process that takes a while and they will go through that process until they reach a point where they feel that hey we have settled and agreed upon all of the non-cost items and the things that are left are just the cost items and at that point it will go to arbitration. Chair Furfaro: Do you know what the instructions were in general on making some assumptions only assumptions what the instructions were across the board to operating departments as to you know should they keep their salary line flat. We are still in a position that we are not looking at the 5% but maybe across the board look was to remain flat to this year to add 2 %%. Mr. Fernandez: I really don't know what the assumptions were as far as how it was put to the Department Heads as to what to prepare for. •Chair Furfaro: Do you mind if I sent that question over to you and Mr. Heu and Ernie Barreira, I think we need to have an understanding of what over a six month April 12, 2012 Personnel p21 period for has been a $27 million payroll line. What are the assumptions that Department Heads put in their budget when it came to those increases. Mr. Fernandez: Yes I think you should address to... Chair Furfaro: Sounds like Mr. Heu is willing to address it now. Mr. Heu: Just real quickly Chair, Gary Heu for the record. The assumption was that there would be no collective bargaining increases for the coming year. Chair Furfaro: Okay, the assumption is if all the rates appearing in this budget, the assumption is they remain flat? Mr. Heu: As we said on the opening day of the budget hearings there are some increases reflected due to step movements which are (inaudible) collective bargaining existing agreement as well as some reallocations. Chair Furfaro: Okay, so anything that was related to a step agreement pre-budget is reflected in the going forward. Mr. Heu: Yes. Chair Furfaro: Good. Thank you very much. How about as it comes to items that deal with any kind of a heads up that we should have as it relates other payroll and benefits...is there anything that... Mr. Fernandez: Nothing that I can comment on at this point. I haven't been updated as far as from the State side as to what to expect at this point. As far as the recruitment is concerned for especially for Police, we have had ongoing basis testing for them on quarterly basis in order to give them more names to process and I think that just about 3 weeks ago we had given them additional names to process. Chair Furfaro: They indicated to us today that they for this upcoming recruitment class they actually got a 109 names from you and that was whittled down to like 89 I guess at that first blush cut. They don't anticipate actually getting from that recruitment class between 9 and 12 people I think that is what they told us. Is that beginning to be the average? Mr. Fernandez: Just about so, when we looked at about 100, then if we get 10 in the end that is about right. Chair Furfaro: That is what they said to us. Have we done anything extra in way of as we fade out of these two wars in the Mid East are there tentatively any opportunity for us to be sharing job postings with various military agencies that handle the disposition of people leaving the service? I mean have we developed any relationships there? Mr. Fernandez: I'll have to check on that. I don't believe that we have had that kind of a relationship. It is generally we have just gone out in the public, in the papers, online, and that is how we have been recruiting. We can explore to see what other avenues we can look at. Chair Furfaro: Yeah, I would like to expend every opportunity we have and see what we can do to enhance...do we have any regulations about ways to handle people April 12, 2012 Personnel p22 extending their time in the Police Department through some kind of monetary enrichment...a guy is willing to sign another 5 years rather then retire at 25 years. I mean do we have anything that we could entice them to stay another 5 years. Mr. Fernandez: Nothing right now but something ht g ow b t so ething to look at I guess. Chair Furfaro: Is that something we would have to have discussion with the unions? Mr. Fernandez: I would think so if it involves additional money then I think we need to discuss that. Chair Furfaro: Some type of a retention plan. Mr. Fernandez: The impact is not only with us but it can be with the other jurisdiction who might not want to go along with that and what the implications then are. Chair Furfaro: It would be good for us overall for public safety to look at any potential opportunity we have to enhance them so let me see if we have other questions around the table. Mr. Chang? Mr. Chang: None for me sir. Chair Furfaro: None for you? Mr. Kuali'i? Mr. Kuali`i: Not yet. Chair Furfaro: Okay, Councilwoman Nakamura. Ms. Nakamura: Thank you for being here. One of the things that have come up over and over in these budget reviews has been Department concern over recruitment processes and I was just wondering in your goals and objectives would it be possible to, okay it says here under objectives to process by providing to support department agencies by providing a certificate of eligible applicants in a timely manner. Okay you have it kind of broken down within 90 work day timely classification within 60 work days. What is your overall goal from the time a request is made to begin recruitment for a position what are your internal goals. Mr. Fernandez: That is the internal goal. Within 90 days we try to get it out but there are a lot of factors that involve the recruitment like we can go out and depending on what the department chooses. If they choose to go just internal, intra, inter, okay and we get nobody that might be the first 90 days or 60 day whatever it takes. Now the department might come back in again and say now I want to go open now. So we go again intra, intra open, and that might take another period of time for us to get a list to them. So again this is for the fact that maybe you are the first one in line but you may not be the first one in line when you ask for us to go and recruit. There may be others. It is not just one department that we are recruiting for. We are recruiting for all the departments. Ms. Nakamura: The proposed re-org that was just described to us is that going to help to expedite...do you see anything in this new proposed structure that will help to expedite the process or do you see more bodies in the structure that is going to help you to move things more quickly? April 12, 2012 Personnel p23 Mr. Fernandez: When we looked at it and again I got to comment that when we had these discussions going on with the Task Force and everybody else that was involved in looking at the restructuring I think the positive thing that we looked at was we would be able to have if we had more bodies we could easily do a lot more. We understood that there were other issues within the departments but as a first step we needed to look at something as a starting point to get this going. This was at least a starting point like the Chair said things evolve and things change. Organizations need to start somewhere and then from there make a determination as you go on whether or not you need to change or not or what. I see it as something positive for us. Ms. Nakamura: Do you think with this structure that it should help expedite the process because there are more bodies? Mr. Fernandez: Definitely. Ms. Nakamura: Are the location of the bodies in the right place that is going to help the recruitment along. Mr. Fernandez: We had discussion with the Task Force and everyone had their own opinions as to how it was supposed to be or they wanted it structured but enlarged when we looked at it we kind of all agreed that as a starting point this maybe it, Looking at everything in context because we also looked at cost. May be this was the best way to go most conservative way to go and then we see from here. Ms. Nakamura: If you had your wish list on the bodies that it'would take to expedite the recruitment process what position or positions would you be asking for? Mr. Fernandez: I would be looking at the area of classification and having another body in classification and having classification separate from labor relations. Ms. Nakamura: Right now it is clumped together and right now there is one labor relations and there is two SR-20 — SR-20 under classification, and you are saying separating the classification would be would help or increasing the number of classification. So these are people who are when you say classification what exactly are they doing? Mr. Fernandez: They are evaluating the jobs and putting them in the right class and also pricing it. Ms. Nakamura: Okay. So for and this is done for new and existing and new positions? Mr. Fernandez: That is correct. Ms. Nakamura: Thank you. Chair Furfaro: I'm sorry Mr. Kuali`i you have the floor. Mr. Kuali`i: Thank you Mr. Chair. Aloha Malcolm, mahalo for your work. Actually Councilmember Nakamura was asking one of the questions I'm interested in and I did want to follow —up. So who currently handles classifications and labors and negotiations position, I am looking at the positions starting on page 62 with Director of Personnel Services, HR Manager II, and then it goes down, Private Secretary, HR Specialist II, by position number if possible. April 12, 2012 Personnel p24 Mr. Fernandez: Well if you looking at the Division we have scoped it out on your chart would be... Mr. Kuali`i: I am looking at the budget. Mr. Fernandez: You looking at the budget would be the manager would be 2101. Mr. Kuali`i: 2101, currently so that position handles classifications and labor and negotiation? Mr. Fernandez: Yes, under this organizational chart that should be the head of that division. Mr. Kuali`i: Ok. (inaudible) that leads me to another question too because with that organizational chart in the organizational chart in the new structure I see three HR Manager Its but in your budget I see four and I see a wide range of dollar amounts. There is 2101 HR Manager II, EM-3 $101,000, 2105 HR Manager II EM-3 $45,800 which is one of the new positions transferred well I don't know it doesn't show. It has ... and which is one of the new positions transferred well I don't know it doesn't show. It has an asterisk it doesn't say where it is being transferred from. I am assuming the asterisk means it is a new position but it is 800 HR Manager II EM-3 $101,000 and then the fourth one is position 289 HR Manager II position 212 and 289 transferred from Finance and that one is $92,000 so the 92, the 101, the 103 they are similar in a similar range. Why is position 2105 at 45 thousand? Mr. Fernandez: I got to go back and tell you that there was an error there. Actually it should be listed as HR Specialist II and that is vacant. Mr. Kuali`i: That is 2105? Mr. Fernandez: 2105. Mr. Kuali`i: So HR Specialist II is 2105, and that $45576 is the correct budgeted amount? Mr. Fernandez: That is the correct budgeted amount because that would be an SR-22. Mr. Kuali`i: Oh it is not EM-3 it's SR-22 and you said that was vacant? Mr. Fernandez: It was vacant. Chair Furfaro: Currently is vacant? Mr. Fernandez: Yes. Mr. Kuali`i: And vacant since when? Effective when? Mr. Fernandez: Since Karen retired. Mr. Kuali`i: And that was just recently or .. April 12, 2012 Personnel p25 Mr. Fernandez: End of the year. Mr. Kuali`i: December 31St? Mr. Fernandez: Yes. Mr. Kuali`i: So in this next quarterly report it will show as vacant but on the report that we got from you till December 31st did not show any positions vacant for Department of Personnel Services. I thought in the reorganization the 9 existing positions, one of those 9 is that vacant position Human Resource Specialist II Karen's former position so that will be filled and it is one of the boxes in here. The other 9 positions are all transferred positions proposed to be transferred in, are they all coming with bodies in them or any of them coming vacant and then you have to recruit for that too? Mr. Fernandez: Some are coming vacant. Mr. Kuali`i: Some. Mr. Fernandez: Yeah. Mr. Kuali`i: Do you know which ones? Mr. Fernandez: I believe 2111 is vacant. Mr. Kuali`i: 2111 is a clerk. Mr. Fernandez: 702 is vacant, 212 is vacant, and I think 2465 is vacant. Mr. Kuali`i: Maybe you know or maybe not. Do you know how long they were vacant? In your Human Resources quarterly vacant position report I should be able to find it if I go back and look at the Department they came from. Mr. Fernandez: Yeah. Mr. Kuali`i: Okay. I will look for that and that will be it for now. Chair Furfaro: I just want to reconfirm with Malcolm the report we have is current thru December 31st so he should be able to find it right? Mr. Fernandez: Yes. Chair Furfaro: Any additional questions for Malcolm? I will give it right back to you if you would like. Mr. Kuali`i: So just on... Chair Furfaro: He is becoming our payroll official. Mr. Kuali`i: On the budget I just looked at some of our variances with our variance report and so in fact the entire budget from the Department of Personnel Services pretty much doubles from 1 million to 2 million and I would imagine the bulk of that is from the proposed 9 positions coming in. April 12, 2012 Personnel p26 Mr. Fernandez: That is correct. Mr. Kuali`i: So on some smaller items like your training line item. Last year it was $7,000 for next year you are proposing $55,000 which is a $48,000 increase or like 685% variance, are you first of all how that. From the $7,000 you had in the current fiscal year for training, how quickly did you exhaust that and find that that was way too little money for training? Mr. Fernandez: What it is, is really the absorption of the other functions that coming over came with the training for those guys from those areas also like disability awareness training, title III, program access, ADA facilities guidelines, those kind of things that were not normally done by us and now would be if we had them this is what the additional cost will be to provide those trainings. Mr. Kuali`i: So how about the ... and I didn't get to look into detail but you can tell me and maybe I can look for it while you are telling me. The consultant services line item, last year it was $30,000 and the next year it is proposed to be $154,000 which is like a 400% increase variance. Mr. Fernandez: Yes. That increase is normally we would be looking at for us without the addition without the new functions just $30,000 or so or a little bit more and which basically involve our EAP. With the new functions and responsibilities now we are looking at worker's comp claim, (inaudible) report, auxiliary aides, other ADA support services and so forth. So those are the bulk, those are the things that are addition and which we will be also taking on. Mr. Chang: Malcolm, I am sorry, what is EAP? Mr. Fernandez: Employee assistance program. Mr. Kuali`i: So it seems like kind of a double whammy because if we are creating a new division that has a Human Resource Manager II and 3 Human Resource Specialist to focus on health and safety, and employee relations. Is that where the EAP program will be housed in that division? Mr. Fernandez: Yes. It can be housed there. It has been with us all the time so. Mr. Kuali`i: So what if ... but yet we are still paying consultant services of a $154,000 for that service? Mr. Fernandez: It is not for that. It is for the additional ... Ms. Rapozo: Excuse me, Councilmember Kuali i if I could, we did give a hand out a one pager when we did our presentation to the Council and there is an associated cost difference of where the funding is coming from. So when you talked about the consultant services I think it is about five lines down and it shows you the difference from the current DPS budget to the proposal for next year and the difference and where it is coming from so a big portion of that consultant services is coming from our third party administrator which assist with our workers comp claims. So that is about a $120,000 transferred. Mr. Kuali`i: So in fact you are saying this was in the finance accounting? April 12, 2012 Personnel p27 Ms. Rapozo: That is correct. 1 Mr. Kuali`i: The responsibility and the money? Ms. Rapozo: Is transferred, correct. Mr. Kuali is Instead of being the responsibility and money and finances, accounting budget, will now be in this budget. Ms. Rapozo: That is correct. Mr. Kuali'i: The only other thing I had and it is not a lot of money but it is kind of everywhere so and I think it is little amounts, big percentage increases, but if it is everywhere in the County after a while I think I can ask staff to do some kind of analyses but it will probably end up being a lot of money and it has to do with travel and airfare, general per diem, general car rental, and parking general and this one specifically looking at is for Personnel Commission the total Personnel Commission dollar amount last year was $6,400 and for the next year it is $16,730 so like 160% increase. Most of that increase is coming in the lines items of airfare, general per diem, general car rental, and parking general. This is for the Civil Service Commission? Mr. Fernandez: I am glad you brought it up because I was supposed to bring it up and say that 1) Civil Services is going to be on the Boards and Commissions. 2) Actually what happened was we had $13,000 in our budget which was mistakenly put in Civil Service budget for travel. So that amount that you see that is in excess over here in Civil Service actually should be put back into DPS's budget because if you look in DPS's budget closely you will notice that we missing something like $10,000 worth at least of travel. Chair Furfaro: You are missing...excuse me if I can Councilmember, Councilmember do you mind? You are missing approximately $10,000 worth of travel and the other group is overstated by $13,000? Mr. Fernandez: Well at least $10,000 overstated. Chair Furfaro: Can someone make a note of that when we do our plus and minuses. Mr. Fernandez: Gary just brought up a note here and said that it is for other commodities, we were short something like $7,400 other commodities which is the travel. Chair Furfaro: You were short $7,000 but your compared year-to-date compared to the new year you are up 160% higher? Something has got to be netting out there and we better start controlling travel. Mr. Fernandez: I think it is coming from Risk Management and your ADA. They also had travel in their budget which came into ours. Chair Furfaro: Okay, we will make our own comparison on those two. Mr. Heu: Chair, Gary for the record, when we were doing another check of the Personnel budget I guess it had been past practice that travel related to collective bargaining negotiations was identified under other commodities. I know this came up, you were on the Council. This is the one that came up and I am not sure why we never fixed that because we have been trying over the years to continue to drive all travel to the proper travel accounts. I think there has been discussion on the floor previously how training accounts used to April 12, 2012 Personnel p28 contain travel items, so over the years we have been trying to force all those travel expenses to specific travel line items. In this case other commodities are one of those other areas where we needed to clean up and so we needed to transfer travel out of there into proper travel accounts. I think what happened is like Malcolm identified couple things were lost in the translation as we were doing some of the transition activity and one of those things is that all expenses for the Civil Service g Y g p Commission should have been transferred to and identified in Boards and Commission since that Commission is now going to fall under Boards and Commissions. It looks like what happened in part was that some of those travel funds that came out of other commodities was in fact shifted into the travel for Civil Service Commission so we are going to get all that cleaned up prior to the May 8th submittal. Chair Furfaro: Okay, I can appreciate that but I want to make sure you know what I am doing. I am already writing what I think we are going to add or cut. I want to be able have an understanding if we are changing that line by $9,000 that is part of our minuses because we might want to add something somewhere else. I got to have some assurances, Gary, that you guys are going to adjust that accordingly. Mr. Heu: Yes, we will. Chair Furfaro: Okay. You have the floor. Mr. Kuali'i: That is all I have, Malcolm, for now. Thank you. Thank you, Mr. Chair. Chair Furfaro: I think we are in a good place for today anyway. I am going to ask the staff to make a note to actually I am going to ask Scott to make a note. Let's check those two travel lines when the re-submittal comes over and I thought we were pau but we have got one more opportunity here. And you noticed I said one more opportunity so I will give the floor to Councilmember Nakamura. Ms. Nakamura: Malcolm, earlier with the Police Department they provided us with a list showing the thirty-nine step that it takes to hire a Police Officer. That included the they will be adding to that list to describe how long it takes on the Department side, how long it takes on the applicant side, or other agency side so that we can get a better idea of where the system is bogging down and why it is taking nine months to get through this process. Similarly I think it would be helpful to see what is the typical process for hiring an employee or what are the different designations of hiring somebody new or reallocating a position and what is the process and what is the timeline you take? I see you have some guidelines in your plan that is very useful but can we see what those guidelines are, how long...it can be average of your typical situation so we can get a better understanding because there is this trend of concern among many agencies about the timing and I don't think we can get a handle on it unless we can see where the bottlenecks are in the process, what some of those causes might be, and I am concerned that even as we transition to this larger entity that those problems will still exist, so what are we doing differently as we move forward. I will put that down as a follow-up. Chair Furfaro: Mr. Chang. Mr. Chang: Malcolm, again thanks to yourself and the Task Force. I just wanted to let you know as you can visible see we are missing 3 Councilmembers so I am sure that they would have had similar concerns or many more questions so imagine the magnificent seven was here three of them are gone so just think about what they might be thinking also just to stay ahead of the game so thank you. April 12, 2012 Personnel p29 Chair Furfaro: I am not going to call this session again because people were absent. They had requirements, they had duties, and so forth but we will be sending over a list of questions and I do want to say that I appreciate the Councilmember Nakamura's last presentation to you as it seem like such an overburden some process to get to a candidate for the Police Department so I am sure there will be more dialog on that in the near future as well so, on that note I am going to let you go and I will remind everybody that we start at 9:00 a.m. with Parks. Have some breakfast because we are going to go until 1 o'clock tomorrow before we break for lunch. When we come back at 2 o'clock we are going to do CIP. That is what my calendar says, Public Works CIP tomorrow. Am I correct? Is there anyone that wants to give additional testimony for today? If not thank you everyone and we are in recess at 4:35 p.m. There being no objections, the meeting was recessed at 4:35 p.m. April 13, 2012 Parks &Recreation p.1 The departmental budget reviews reconvened on April 13, 2012 at 9:14 a.m., and proceeded as follows: Councilmember Bynum (excused) Councilmember Chang(present at 9:19 a.m., and excused at 11:45 a.m.) Councilmember Rapozo (excused) PARKS &RECREATION: Chair Furfaro: Aloha, good morning. I would like to call back from recess our budget review and we are starting today with Parks and Recreation. The tentative time set today, I hope everybody had breakfast, because we're going to go right to 1:00, if necessary. Break from 1-2, and then we're going to handle Engineering and CIP. Mr. Chang will be in soon he has a mechanical. Mr. Rapozo is in Honolulu, as I said yesterday his mama had some surgery, and Mr. Bynum has returned to the doctor and will be excused with a medical excuse for today. If he can come in later, he will, but he has called and so announced to us he will be out on sick call. Okay, Lenny, I'm going to leave with you the same way I left it with the Police Chief. If you want to carry through the presentation and remain there and periodically, if we want to call up your sub department headed, we have two live mics next door and for those in the audience, I plan to take testimony as I have been doing. I see Glenn is here today, but I have been letting testimony happen after the presentation, so that those that are in attendance, that want to see what the content is, and then wants to have questions after that, that will be the time. Is that fine with you, Mr. Mickens? I guess it is. Is that fine with you, Mr. Mickens, I said? How about the gentleman in the back behind you? Is that fine with you, too? Very good, Lenny, you have the floor and if you are going to start with your PowerPoint presentation, I'm going to relocate. L. Rapozo: Yes, Chair Furfaro: You have the floor. L. Rapozo: Good morning. How is it everybody? For the record, Director of Parks and Recreation, Lenny Rapozo. As the Chair had mentioned I will be doing the PowerPoint presentation and I will be doing all parks and recreation and maintenance presentation and Ian Costa, who is the Deputy Director of Parks, will do the present for golf for which he directly over sees the successes of golf Wailua Golf Course. Before I get started with the PowerPoint presentation I would like to introduce the members or the Administrative Members of our staff of each division. Sitting here with the hat is Craig Carney, who is the Director of Golf Maintenance Operations. Next to him is George Ahlgren, who is the Parks Maintenance Chief. Behind him is the Recreation Administrator, Cindy Duterte. Next to her is our Fiscal Division Administrator, Lynn Kuboyama and our Permit and Security Coordinate, John Martin, who falls under fiscal and permitting, in case you have questions regarding rangers, john would be happy to answer the operations, and in the corner is William Trugillo, who is the Parks Planning and Development Administrator. Next to him of course is our Deputy Director Ian Costa, and sitting right behind my right is our Convention Hall Manager, Eddy Sorita and if you have been into this lovely new building, is he up on the wall effectivel977. With that being said, that was his first term, Chair. Okay with that being said, this is a presentation for Parks and Recreation. Page 1, our mission is promoting and enhancing the quality of life for the residents of our island home Kaua'i. Goals and objectives: The Department of Parks and Recreation comprised of seven divisions, the Administration, Fiscal, Personnel, Convention Hall, Parks Maintenance and Beautification, Recreation Planning and Development, and Wailua Golf Course. It's the goal of the Department of Parks and Recreation to maintain core services to the community and improve the quality of services; repair upgraded and improves facilities that are enjoyed by the visitors and residents of Kaua'i. On November 4 of 2006 the electorate of Kaua'i voted to change the Kauai County Charter creating the Department of Parks April 13, 2012 Parks & Recreation p.2 and Recreation. The department is relatively new, considering that we have been in existence since 2006 and formally operational in 2007. The Department continues to evolve and find its own identity, organizational structure, daily operations and a place in County Government. As we continue to transition, Administration Division and The Department of Parks and Recreation strives to steady the course, improve the delivery of services, responsive to the community, while meeting the demands of improving and maintaining all of our park facilities. This budget proposal reflects the need of the Department to continue to work in providing the community with recreational programs and facilities within the financial means of this county. On this first -- the operating budget for the Department Of Parks and Recreation overall you see a decrease in our requests in our budgeted requests. With that, operations are significantly decreased because it was part of the finance department's goal to maximize other funds and to help with minimizing the use of general funds money. Some of our operational needs are being met by the use of the Spouting Horn rent, which gets placed into a 2009 Fund as it's called, but we call it"the Park Enhancement Fund," which provides us monies to do anything to enhance the park facilities. Equipment and leases also shows a significant decrease of 26.5% because a lot of our equipment replacement will be gotten from this particular fund. Those are the significant decreases. Benefits, again, benefits have gone up 11.3% for our Department, but as with all other Departments this year, those needs are met. These pie charts show a correlation of the percentages as a whole broken down by salaries, benefits, utilities, equipment leases, and operations. The bottom is the operating budget of the whole Department, which shows, again, the different salaries and wages, benefits, utilities, equipment leases of our operations. Welcome Councilmember Dickie Chang. Mr. Chang: Beautiful puka shell necklaces Mr. Rapozo. L. Rapozo: Thank you, I need to thank Aunty Lisa Namuu who gave me this. We are on page 3 Mr. Chang. Mr. Chang: Thank you, happy to be here. L. Rapozo: The bar graph is a comparison of the current budget of 2012 and our future fiscal year budget of 2013 as you can see from this bar is pretty much identical with the exception to operations which is much lower and we discussed earlier as to some of the reasons. The Department of Parks and Recreation budget has an overall decrease of 1.5%, modest increases are seen in salaries and benefits for the next fiscal year utilities, are scrutinized more closely and the department has taken measures to reduce utility costs. Such measures can be seen in that we now request KIUC to disconnect power to those facilities that will have no activity during the fledging season, thereby eliminating the standby charge that most of us experience. Department sends a request to KIUC to restore power to those facilities with a reconnection cost is $20 per facility, which is far less than having the power on with a high standby charge. The department of parks and recreation believes that this proactive approach not only saves money, but allows us to budget a lower increase to utilities that May have been had if we had not implemented this practice. Operationally we're requesting a reduced amount to perform the same amount of maintenance and service for less. DOPR's largest increase is seen in equipment lease as the department attempts to replace aged equipment which was not done in the past due to budgetary constraints. The Department of Parks and Recreation is requesting the funding of dollar funded positions to be returned to full funding. A funding of re-described positions and new positions to perform the added duties as expected. Briefly DOPR are requesting the following positions for the reasons stated thereof. Re-described positions, the truck driver position for parks irrigation specialist. As a County has built newer, more modern parks and recreation facilities, we have included more modern automatic irrigation systems. Drip systems and infrastructure that is not supported or able to be maintained by the current job descriptions and staff within park maintenance and the beautification division. As a result, new parks and their irrigation systems as well as older manual irrigation systems are falling in disrepair. Irrigation systems are being shut off rather than making repair and April 13, 2012 Parks & Recreation p.3 the safety and aesthetic appearance of the sites are significantly diminished. In addition, this position will be responsible for the construction of new irrigation systems within our parks. The grant specialist position to a permit clerk for commercial activities. Council passed legislation that requires that DOPR to promulgate rules to regulate peddlers and concessionaires at County parks, playgrounds and other facilities and prohibit peddling on the beaches of Kaua`i. Effective November 18 of 2011, the Department of Parks & Recreation rules and regulations relating to the use of parks and park facilities by peddlers and concessionaires were placed into effect. This position will be responsible for handling the permitting for all commercial activities requested in park facilities, the issuance of commercial permits in park facilities, the scheduling of public hearings for activities in parks, including but not limited to the publishing of notices as required by law, the transcription and maintenance of all public hearing records as it pertains to commercial activities in parks facilities. This position will also provide temporary coverage for the permitting counter when the other permitting clerk is away from the counter on approved leave. Dollar funded positions for Golf. The Grounds Helper position is currently being filled by an Auto Mechanic I at the rate of $22.00- $23.00/hour, on an overtime rate of$33.34. The Tractor Mower Operator at a rate of$17.09 per hour on an overtime rate of $25.63 per hour. The overtime is incurred during weekends. On some days the employees are being paid more than the revenues generated by the driving range balls sales. The comp-time that the employees earn takes away from their primary job duties which are originally hired for Golf Course Maintenance. The Golf Course is slowly falling behind in the mechanic shop and tractor mower work. Production out in the field would be slowly declining, so we are asking to fund this dollar fund position. At the Golf Course the grounds helper, there are two half time grounds helper with their sole responsibilities or one of their main responsibilities is the retrieval of the range balls. One of them retired and in previous budget man dates we had to dollar fund the other one to meet the objected target goal. Councilmember Yukimura that should be page 4 that we are on. Ms.Yukimura: Thank Y ou. L. Rapozo: So by having only one and he is only a half time position we have to overtime or bring other guys to do the same function and in the structure of the organization none of the other grounds keepers want the overtime and thereby consistently it has fallen upon these two auto mechanics and the more mower operator at a higher rate. The other dollar funded position is a System Sprinkler Repair Position at the Golf Course which is the life line of the Golf Course irrigation system. Over the past 4 years the irrigation system has slowly been degrading due to the lack of maintenance. Valve boxes are over grown with dirt, grass, and unable to be located easily. Isolation valves have not been serviced which prevents shutdown of the 95 psi 12inch main line in the event of breaks. The satellites in the field are corroded from the salt breeze will be causing extensive repair in the near future. Flushing, plugging, the dirty heads are years behind. Raising the settled irrigation heads need to be done to reduce any injuries to employees and golfers. There are zero maintenance to 3-50 horsepower flood suction pumps and 1-50 horsepower vertical turbine pump. The main control panel in the pump station had not been serviced and cleaned for over three years. The irrigation system has started to show signs of miss-management and degrading. Soon it will cost additional expenses to bring the system back to good working order. At this time the irrigation system is below substandard. With one of the largest investments on the Golf Course and the yearly depth service expense of $150,000 we are asking that this position should be filled to assure year round maintenance of the system. We have gone too long in trying to meet budgetary targets to have this position continued as a dollar funded position. New positions and I'd like to also put a disclaimer in is that the Mayor intended to add all new positions in the May submittal. When we received our budget, our request for 3 additional park April 13, 2012 Parks &Recreation p.4 ranger positions was included in the budget, so to be consistent with the budget that was delivered to your Council it is included in our report. Councilmember Nakamura. Ms. Nakamura: Can you repeat that again, Lenny. I don't know that I followed you. L. Rapozo: The Mayor's intention in this budget submittal was to fully fund dollar-funded positions. Any new positions they intended to fund in the submittal in May. When the budget was given to Parks, our request was to have new positions that I'm going to explain right now. That was supposed to come in May, but for whatever reason, and I'm happy, because I'm here to explain them to you, it was put in the March submittal and to keep my presentation consistent, with what was presented to you, it is included in my presentation. Chair Furfaro: So that everybody is really clear, Lenny, the budget that was submitted to us had 18 new positions in it. Fourteen of those were dollar-funded and four of them were actually new positions. This is for all Departments. Then in the narrative that we got from Mr. Heu, it was explained to us that some of those positions that came over in the 18, in the 18 new positions, I believe 8 of them were not to have been funded for the entire term, but were only supposed to be in the May forecast reflecting an eight-month budget? L. Rapozo: Correct. Chair Furfaro: And so, our question, when we chat with Wally on Tuesday will be focused again on which is the narrative correct as received with all of those positions being referred, or will the narrative be corrected in the May re-submittal? L. Rapozo: I guess that is going to be Wally's. Chair Furfaro: Yes, we will take that up on Tuesday. L. Rapozo: Yes, but for my presentation today, Park's budget that is presented to you, my narrative is accurate with what is the budget and reflects to your Council. Chair Furfaro: Understood. L. Rapozo: Yes. Chair Furfaro: Thank you, Lenny. L. Rapozo: So with the new positions we were asking for three new park rangers positions. The council passed legislation requiring the Parks and Recreation to promulgate rules to regulate peddlers and concessionaires in County Parks and other facilities and prohibit peddling on beaches of Kaua'i. With the new effective rules of November 18, 2011 the Department of Parks and Recreation rules related to parks and peddlers were placed in effect. In order to effectively enforce the anticipated activities that will occur within our parks, as well as the result of new regulations, it is the priority of the Department to prepare for these activities. In addition, with anticipated opening of the new Lydgate campground, we will require further coverage of other parks and the park itself with the Park Security Officers and this is the need for the additional personnel. The second permit clerk that we're asking for is for league activities. There have been an increasing number of new recreational leagues that are being coordinated by members of our community, such as the Kaua'i Youth Football League, Women's Roller Derby, Winter Baseball now. Various uses of park facilities and equipment that require special use permits. This position will be responsible for handling all league permitting, follow-up with the league coordinators, be the liaison between the April 13, 2012 Parks & Recreation p.5 leagues and park maintenance, and the use of the special use permits for all County Facilities and equipment. The mobile sound stage gains in popularity each year and through our work to maintain and deliver this popular stage to community events. We help non-profits and community-based organizations to host spectacular and successful events throughout the year that require the issuance of special permit that includes proper safety issues and safe keeping of this park asset. This position will also provide temporary covers for permitting counter, when the other clerk is away from the desk on approved leave. As more activities occur within our community, right now it's been falling upon the parks permitting and security coordinator, who is a supervisor. This clerk will be needed to handle this particular segment to deal with all league activities. It has gotten so huge and this will allow our park security supervisor to not only monitors this, but also to be in the field as another park ranger out there, which is what we would want rather than he is bogged down with special permit and working with league coordinators. Chair Furfaro: Lenny, before you go any further I think Vice-Chair Yukimura may have a point for clarification. Ms.Yukimura: Not at this point. Thank you, Chair. Chair Furfaro: Go ahead Lenny. L. Rapozo: Thank you. We're requesting a new park caretaker, two positions, 19 hours for Lydgate and Po'ipu Beach Parks. The Lydgate and Po'ipu Beach Parks are both well-used facilities by visitors and members of our community. The new position would provide additional restroom cleaning services during weekends and holidays, when the increased restroom facilities take place. So these two positions at Lydgate Park will service the bathrooms by the pond and the main pavilion, the bathroom by Kamalani Playground and the camp ground it would be additional. Ms.Yukimura: I do have a question. Are you talking about one or two positions? L. Rapozo Two, one for Lydgate and one for Po'ipu. Ms. Yukimura: Okay, that is not clear here. Thank you. L. Rapozo: The Po`ipu would of course service the two bathrooms at Po`ipu and also at the Spouting Horn. Successes and achievements... I'm sorry, this graph that table shows all of the vacancies that are in parks and the statuses of those vacancies. Any questions for that or do you want me to move on? Chair Furfaro: Councilmember Nakamura, you have a question, go ahead. Ms. Nakamura Yeah, Lenny, I was just wondering, how has progress been on filling the vacancies? L. Rapozo: It takes a while. Ms. Nakamura: What would be, from the time you submit a request, how long...what is the turnaround time ending up being? L. Rapozo: If you look at position 1212, which is the Park Security Officer I to fill that position, which available funding was September of last year? We just completed interviews last week for that particular position. Chair Furfaro: Eight months, Lenny? April 13, 2012 Parks & Recreation p.6 L. Rapozo: Yes. Chair Furfaro: Eight months. Ms. Nakamura: Is that pretty typical? L. Rapozo: For new hires. The West Recreation Coordinator and Senior Recreation Coordinator, which has taken a shorter time, maybe four months. Ms. Nakamura: Okay, we were informed that the typical turnaround could be a few days or a few months, but that is not what we're hearing from the Departments. L. Rapozo: I have one horror story for a particular position that we're looking to -- there is an inequity in terms of what the person is doing in terms of the rest of the organization and we asked it to be reallocated or re-described to give it a higher rating and we're still waiting and it's been almost three years for that one. Ms. Nakamura: Three years for a reallocation? L. Rapozo: Yes,just tell us. Chair Furfaro: Will you send that particular information over to me, Lenny? L. Rapozo: For? Chair Furfaro: On the horror story that you just described that took three years? L. Rapozo: Yes. It's still pending. Chair Furfaro: Send the particulars over to me. We seem to be missing an understanding in getting various miscommunications here what the problems are, especially as we look at reorganizing the three phrases of human resource. We need to know some of these understand. L. Rapozo: And I understand that they get busy, but sometimes the length of time goes on beyond being busy. Chair Furfaro: I could understand if someone hadn't been in the office for three, but telling us it is about being busy is not acceptable. Councilmember Nakamura, I'll ask for the particulars on that and you still have the floor? You are finished. Any more questions up to this point before I give the floor back to? Mr. Rapozo, please continue. L. Rapozo: Thank you. Now, Fiscal and Personnel Division on page 6, Park Rangers successes and achievement. Park Rangers continue to assist in community events such as the marathon by monitoring the course and providing assistance as needed. During the first marathon a Park Ranger came across an upset young boy that had gotten separated from his grandfather and sister near Kealia Beach. During the 2011 marathon Ranger Supervisor Scott Nakata found a second young man wandering the path near Donkey Beach. He was separated from his parents and he was transported back to be reunited with his parents. In the pass Park Rangers assist on off-duty hours with events such as the County age group track meets the Mayor's invitational track meet and Senior Field Day at Lydgate Park and the summer enrichment programs funded at Lydgate Park. Rangers continue to be a wealth of information for both visitors and local April 13, 2012 Parks & Recreation p.7 residents and they also help out with general information about our island and how the Department of Parks and Recreation works and the services that we provide. To many visitors coming to a new place for the first time the ranger is usually the first contact that they have with the island. For most this first contact is the beginning of an enjoyable vacation and they rely on their encounters to get more information about our island. They warn visitors of the strong currents and of our beaches that have no lifeguard service. Rangers spend an extra 5-10 minutes to give our visitors the information that they need to help find one of our finest offices in the county, to get more camping permits or how to get to the best luau in town. The enforcement staff prides themselves as educators first and enforcement and citation come only as a last resort. Park Rangers are extra eyes and ears for the Kaua'i Police Department and regularly assist KPD in monitoring parks and other recreational facilities for problems that include, but are not limited to vandalism, graffiti, criminal property damage, underage drinking and drug abuse. Park Rangers actively assist KPD in locating persons wanted on bench warrants as a lot of these individuals hide out at parks and campgrounds. Because Park Rangers are on the road a lot, they have assisted KPD in locating vehicles used in the commission of crimes, with the assistance of KPD, Park Rangers do periodic enforcement sweep of camp grounds and parks in order to control illegal activities. Park Rangers also assist the Department's Maintenance and Beautification section when they do periodic major maintenance at our facilities by keeping the General Public out of work areas. This allows maintenance work to be done in a timely manner without delay or interference. The challenges of Park Rangers: For the most part the only thing most people hear about Park Rangers is something negative. Mainly from people who have encountered a Park Ranger because they were caught camping without a permit or cited for allowing their dog to run free on the coastal path or in a park. What most people don't hear or say is the assistance Park Rangers give the General Public and more so the Visitors of our island. Hearing something negative from someone who was caught camping without a permit. With 70 plus parks and recreational facilities, including the coastal path, the current five park rangers on the road, it's very difficult to effectively patrol and enforce current ordinances. Even if the enforcement staffs are returned to six, there will be gaps in coverage when staffs are out sick, on vacation, days off or on IA. With the recent changes in the peddlers and concessionaires Ordinances, monitoring these commercial permits will be their responsibilities. With the passing of Lydgate camping Ordinance, and rules regulations this will be another campground that will need to be monitored on a daily basis. The popularity of the coastal path and the plan increase in length would also need to be monitored more closely. Ideally adequate coverage of our parks is three separate shifts, early morning, midday and evening. The morning and evening shifts would have four Park Rangers and the midday shift would have three Park Rangers. This would be just enough Park Rangers to cover days off, vacation or sick-leave on each shift. Chair Furfaro: Lenny? L. Rapozo: Yes. Chair Furfaro: I am going make a request of you. I mean, literature is very complete and we all have it, thanks to the efforts of your Department. But could you go through these things more in a summary piece? L. Rapozo: Sure? Chair Furfaro: I would appreciate that, because I am going on my list and just reading this, after hearing some of the episodes we have gone through my questions are going to be long and many, so maybe if we can do the summary on the proposal. Members, does anybody have a problem? Okay. L. Rapozo: So there is a need for more park rangers. April 13, 2012 Parks &Recreation p.8 Chair Furfaro: Great summary. L. Rapozo: And the great stuff they do. C'mon, guys, I have six more divisions to go through. In the back of your pamphlet, and this would be from page 42 you have a complete cost of our priority requests and justifications, as it was proposed for equipment, as well as for the Park Rangers and Clerks. But since we're on Park Rangers, at the end of those priorities, we did provide for you, if we're granted the three Park Rangers, a schedule of what we envision it would be for the staff, for the staff, for Park Rangers, their coverage's. You have the narrative on page5l- 52 and from page 53 it has the shifts and what their coverage would be and after page 55 we have a color-coded graph, labeled 55a through 55e in terms of the different coverages Chair Furfaro: That is this spreadsheet here? L. Rapozo: Correct. Ms.Yukimura: So there is no difference in the one that was submitted to us earlier on right? Or is there a difference? L. Rapozo: There is no difference with-- I'm sorry -- page 53 in the previous submittal I was dreaming. I wanted six new rangers and that was an error. We put three. So this one reflects three, coverage of three. Ms. Yukimura: okay. L. Rapozo: I was hoping that Santa would come in April. Ms.Yukimura: Let's see, so the one that we got today. L. Rapozo: That reflects the three. Ms.Yukimura: Is the one we should look at? L. Rapozo: The first half, correct, actually the one that was submitted earlier that reflect three as well, it's just that particular portion of 53-55, yes. The one in your hand is correct. Ms.Yukimura: No wonder I said I don't understand. L. Rapozo: If you look at the color-coded one. Ms.Yukimura: Thank you. Chair Furfaro: So the text and narrative reflects three additional Rangers? L. Rapozo: Yes. Chair Furfaro: What do the financials reflect? L. Rapozo: Currently what is in our budget, three additional Rangers? Chair Furfaro: It has the three right? L. Rapozo: Correct. April 13, 2012 Parks &Recreation p.9 Chair Furfaro: But your wish list is an additional three that didn't make the cutoff? L. Rapozo: Well, correct. Chair Furfaro: But the financials reflect an additional three? L. Rapozo: Yes. Chair Furfaro: Thank you for the clarification. L. Rapozo: For now, we can definitely work with three. Chair Furfaro: Any more questions on the staffing section only. Go ahead Councilmember. Ms. Nakamura: Thank you for doing this analysis and presentation, because I think it shows how you would use the resources, and the shortages now that really make it important for us to move in this direction. So thanks for providing the documentation. L. Rapozo: Thank you. Permitting section-- I'm sorry? Chair Furfaro: Vice-Chair Yukimura? Ms.Yukimura: So the job description of the Ranger remains the same? L. Rapozo: Correct. Ms. Yukimura: That doesn't change? L. Rapozo: Yes. Ms. Yukimura: Could you provide that as a follow-up? The job description. Chair Furfaro: Okay staff, put that in a question. Before we let Mr. Rapozo continue, any more questions so far about staffing? Ms. Yukimura: Yes, I do. Chair Furfaro: Okay, let's give Mr. Kuali`i the floor first. Go ahead. Mr. Kuali`i: And it is tied to the budget, but it's positions and I don't know if we're doing that now or later, but I looked at the chart on page5, on the vacancies and I compared it with the vacancies-- oh, let me say aloha and mahalo, first Lenny. Thank you for the work that you do. On the vacant report that we got from human resources, and it was since December... it's only effective December 31, 2011, so we're getting another report shortly from them, but I do notice that a lot of these positions have been vacant for a long time. Like, Sprinkler System Repair Worker. You did say that that was an issue. L. Rapozo: It's about 4 years I think. April 13, 2012 Parks &Recreation p.10 Mr. Kuali`i: And that is why you are re-describing the Truck Driver position to a Parks Irrigation Specialist and yet this Sprinkler System Repair worker has been vacant for four years. And that is one of the dollar-funded positions? L. Rapozo: Let me clarify: The Sprinkler System Repair Worker is at the Golf Course. So that is a different division. That person was charged with the sprinkler or irrigation system solely at the Golf Course. The gentleman who was there had retired and when we came on board, we had to make certain budget mandates that we dollar funded that position, so we could hit the target. That has been four years and thereby the sprinkler system at the golf course hasn't had the proper maintenance for four years. So we do not want it neglected anymore and we need to fund that. The irrigation specialist that we're asking for, which is re-described from the truck driver position, this position would address irrigation needs in our parks. We have certain parks, Waimea Canyon Park, Kekaha Park, The Bike Path down in Lihi, that have irrigation systems that have falling into disrepair or don't work as efficiently as they should as well as the north Vidinha Stadium has irrigation for the soccer fields. That one there we're very lucky because the community because of the use of it and the popularity of soccer, community people have stepped up and kind of monitored that irrigation and when it's been broken, unless major repairs have been done, they have been doing the maintenance of that. So that is the difference between those two positions. Mr. Kuali`i: And of the dollar-funded positions, 1986 Grounds Helper 900 Sprinkler System and the Truck Driver is also a dollar-funded position; right? That is being re- described? L. Rapozo: Correct. Mr. Kuali`i: So that is three dollar-funded positions. L. Rapozo: Correct. Mr. Kuali`i: Out of the 18 new positions, when the chair said 14 was dollar funded and four were new, that means that 3 of thel4 are those 3? L. Rapozo: Yes. Mr. Kuali`i: Submitted five new positions? L. Rapozo: Yes. Mr. Kuali`i: So when we just heard about 14 dollar-funded positions and four new positions, you alone actually have five. So it's not four. L. Rapozo: Is that what it comes out to? Yes. Mr. Kuali`i: So that is going to assume that nobody else throughout the county has any new positions and you actually have one more than what was included in the 18 positions. L. Rapozo: I don't know about the number 18. I can just tell you what my department has. Like I mentioned at the beginning, those new positions should have been part of the May submittal, but because it was presented in the budget at this point, I wanted my narrative to reflect accuracy of what was submitted to council. April 13, 2012 Parks &Recreation p.11 Chair Furfaro: Let me interrupt for a second and ask Ernie Barrera to come up or a second. Ernie if you could come up next to the Director of Parks. Now we understand as the questions have come from Councilmember Kuali`i, we have been able to identify those dollar-funded and new positions in Parks. Did I summarize what I believe the administration is doing when it came to total positions? There are 18 reflected now, and there is another eight that are supposed to be reflected in the May submittal? Mr. Barreira: Good morning, Chair, Ernie Barrera; Budgeting and Purchasing Director. I sent to Council yesterday or the day before yesterday a very comprehensive report involving the distribution and the allocation of dollar-funded and new positions. To include dollar- funded positions that even involved further explanation in terms of the re-description element of those positions. So I do not have that in front of me, Chair. I apologize. Chair Furfaro: I will call you up at 2:00 p.m. before we start the CIP, because I don't think any of us have read the reconstructed memo that you distributed to us. Maybe one member did, but I haven't, because I paid attention to other council business when we finished yesterday, so just so that we have an opportunity to get some clarity at 2:00. Could you be prepared to discuss that with us? Mr. Barreira: Yes, sir, I will have that with me at 2:00. Chair Furfaro: Go ahead, Councilmember. Ms. Nakamura: Ernie, is this one the dated April 3rd? Mr. Barreira: That would be the email communication, but there was a formal transmittal that was sent two days ago. Ms. Nakamura: Does it reflect that email communication? Mr. Barreira: It reflects that communication and gives additional information in terms of all dollar-funded positions in the County. Ms. Nakamura: That I have not received. Chair Furfaro: We'll all look for it and we are going to allow you 15 minutes at 2:00 to give us a summary so we understand as it go to question various Departments, we can reconcile the two together. Mr. Barreira: Very good, chair. Thank you. Ms. Nakamura: This memo basically says that there are four dollar-funded positions with in parks and recreation that you are supporting. And that there are four that were incorrectly included in this March submittal that includes three Park Security Officers and one Permit Clerk, so that is an additional four, so total of eight? Mr. Barreira: That is correct, Councilwoman. Ms. Nakamura: Okay thank you. Chair Furfaro: And does that tie into what Mr. Rapozo is expressing to us now. Mr. Barreira: Yes, it is accurate. April 13, 2012 Parks &Recreation p.12 Chair Furfaro: Very good, we'll see you at 2 o'clock. Mr. Kuali`i, you have a question for Mr. Barreira. We'll see you at 2 o'clock Mr. Kuali`i you have the floor. Mr. Kuali`i: Thank you, Mr. Chair. In trying to compare the vacancies that you list and then the vacancies that permanent Personnel Services list, it's just a couple of positions that doesn't show and maybe it's only because it came up in the last couple of months. But maybe you can tell me, this position no. 1956, Senior Recreation Coordinator. That is a vacancy that you list, and the status you list is "vacant pending interviews." approximately how long has that been vacant? Since when? L. Rapozo: I believe the end of the year. Mr. Kuali`i: So just end of December? L. Rapozo: Yes. Mr. Kuali`i: (Inaudible) personnel shows a vacancy of Senior Activities Manager and also labeled as contracts and says not recruiting to be reallocated? L. Rapozo: That is 1956. Mr. Kuali`i: That's 1956 Chair Furfaro: That is not the year right? L. Rapozo: No that's the position number. Mr. Kuali`i: Personnel report, you have 1954, Senior Activities Manager and in your report you have 1956 Senior Recreation Coordinator. L. Rapozo: Councilmember Kuali`i, I don't know why the numbers are different but from my organizational chart it is 1956. Chair Furfaro: You do know earlier that was a joke I made right? L. Rapozo: Yes. Chair Furfaro: The position was vacant form 1956. L. Rapozo: The person who was the senior, what you had mentioned, she had retired and we looked at the needs of our community and what that position was tasked to do, and she was the senior working with senior centers as we currently know of it today. There is a new senior out there and this senior recreational coordinator is going to address the 21st century senior. We're re-describing that position to address the 21st century senior, the senior who is much more active. The senior who is doing water zumba, the senior who is much more computer literate that we no longer see seniors that we know of as making sushi class knitting and doing crafts which we still have and which we still love, but there is ... we talk about kids and getting programs for the kids can get to the next level. It's our hope and our intent to take the seniors of Kauai to get to the next level, the 21st century senior. So in closing it is the same position but we're re-describing it to reflect the needs of our community. p,� April 13, 2012 Parks & Recreation p.13 Mr. Kuali`i: And there is nothing wrong with that, why wasn't it explained? You talked about two other re-described positions and why wouldn't you and the Department of Parks and Recreation and the Department of Personnel Services is in sync? Why would they tell us one thing and you tell us another? L. Rapozo: I guess my response, my thinking might be different and it's different from yours. When I was tasked with re-describing, it was one that was vacant, dollar. Funded vacancy and that we described and that may have helped to explain that position, you are right, but it wasn't done in this report, because in my thinking it was current and looking to be re fill and not dollar funded instructed to be re-described. Mr. Kuali`i: So it really doesn't look like the same position to me, because your position, 1956 has a different title and you are funding it. And in human resources it says contracts and it's the only one that says "contracts," of all the Parks and Recreation positions that are shown as vacant by the Department of Personnel Services. So then my next question would be regarding do you receive grants that you fund positions with? And could this be one of those positions that is sitting vacant because you didn't get the grant, and you don't expect to get the grant? L. Rapozo: All of our staff Civil Service Staff, we don't receive any grants for those positions. The reason that it's vacant is because the person who was in it retired and we're moving to fill with a new person, but with more comprehensive job description to address the needs of our community. Mr. Kuali`i: Oh, so 1954 is reallocated to 1956? L. Rapozo: You know the number for some reason p there is a disconnection with the number, but it should be the same position. The senior -- Mr. Kuali`i: Senior Activities Manager... L. Rapozo: Became the Senior Recreational Coordinator, because we don't them to manage, but to coordinate more programs to address the 21... Mr. Kuali`i: And what is the SR or (Inaudible)... L. Rapozo: So you are right Mr. Kuali`i it is 1954. They just looked at our or your budget and that is a SR22. On mine it is page 9 of the budget. Mr. Kuali`i: I have different numbers. L. Rapozo: I'm sure your numbers are higher than mine. It's under recreation, in the text. Mr. Kuali`i: The other last one was oh, yes, so it's position 1861, and it says reallocated to Personnel so Department of Personnel Specialist SR22. So even knowing that we have seen some discrepancies between your vacancy and what Personnel is working on, you are okay with that position moving out of parks and recreation and going to a new potential Human Resources Department? L. Rapozo: Councilmember Kuali`i, in my previous life, before I came to County Government, I was in State Government and we had a Human Resources Division. It is a good move for this County. It's long overdue to make that happen and yes, the duties of that April 13, 2012 Parks &Recreation p.14 position, the duties of the position, not necessary by the body, but the duties needs to go to HR and yes, I'm supportive of that move. Mr. Kuali`i: I wonder if along the same argument if you would be supportive of the fiscal position in your Department moving to Finance Department? Because the Finance focuses on-- what do you mean? L. Rapozo: The only fiscal is this Personnel Assistant that comes under "fiscal," that is moving to the Human Resource Department. Mr. Kuali`i: I don't think so because I saw a few positions I have to come back to that. Chair Furfaro: Mr. Chang, do you have any? L. Rapozo: Yes please find it because I want to know if you know something that I don't know. I line find that out too. Mr. Kuali`i: That is the 1861 is the person (inaudible) L. Rapozo: Yeah. Mr. Kuali`i: In your budgeting and in this vacancy listing, you have a division called Fiscal. L. Rapozo: Correct. Mr. Kuali`i: What is that Division? L. Rapozo: What is that Division? They are responsible for the fiscal and personnel and park rangers and permitting section all fall under the fiscal division. Mr. Kuali`i: Do you have anyone that handles any financing or accounting functions there? L. Rapozo: That is our fiscal division. Yes. Mr. Kuali`i: I saw positions. I just don't see them now. I will come back later. Thank you, Mr. Chair. Page 177. Chair Furfaro: everyone. Page 177 for ever g Y Mr. Kuali`i: Yes. So page 177, thank you, Councilmember Nakamura. Position 1203 Budget/Fiscal Specialist, position 1207 Accountant II. L. Rapozo: Yes. Mr. Kuali`i: The others I this is Program Support Technician might be program-related. Those two positions for the same reason that you argued that 1861 Human Resources Specialist I is long overdue and appropriate to go to a Human Resources Department wouldn't it also be appropriate for Budget Fiscal Specialist and Accountant II to go to our Finance Department, where we even have an Accounting Division and, in fact our Accounting Division Manager was before us and you could see in her face how overworked she and her division is so for the same (inaudible). April 13, 2012 Parks &Recreation p.15 L. Rapozo: I believe the way the current system is setup, we need to have our own fiscal people handling the needs of our Fiscal of our Department. The way Personnel is moving or Human Resources is moving it makes sense that the Personnel duties leave our department and go over. Mr. Kuali`i: Thank you, Chair Furfaro: Okay we're still on staffing I'm going to go to Council Vice-Chair Yukimura than Councilmember Nakamura. Ms. Yukimura: Thank you, Lenny. I first want to say I think it makes sense go from Truck Driver to Park Irrigation Specialist. I think that is a big need and affects a lot of park functioning and I think we're at a level in terms of need and number of parks that have irrigation that justify that. I have a question about your Permit Clerk for commercial activities and for league activities and it may just be my ignorance in terms of how things are structured. When you do a job description, are you going to say it's a Permit Clerk for commercial activities and a Permit Clerk for league activities? L. Rapozo: Yes, that is the intent. . Ms.Yukimura: Because it seems somewhat limiting and I'm just wondering...well first of all I'm just wondering if that's really clerk work in terms of the handling as to whether the policies are being followed. Although I guess you have to do that at the permit level. L. Rapozo: Yes, there will be all cross trains in terms of camping permits or making reservations for facility permits but that is secondary as opposed to them focusing on commercial activities. In doing the commercial activities Councilmember Yukimura we found, and right now thanks to having a very effect Private Secretary myself she has kind of taken on that role in terms of doing the transcripts, because remember now part of the rules is that every activity that comes up, we need to have a public hearing within that community. And as activities come up, it can anywhere from lunch wagons from snuba, to renting chairs on the beach. We have made the commitment to the community to address those activities in that particular community. So in handling all of this, with the applications for the activity, issuing of permits, transcripts on the public hearings and doing the public hearings and meeting notices, and coordinating those kinds of things it's a job within itself. The League Permitting Clerk again will be cross-trained to do camping and stuff we normally do to help out when others are away, which is what we lack currently. So we're trying to make it a better system. The leagues on this island has gotten humongous, both youth leagues, adult leagues ranging from softball and I had mentioned in my narrative, winter baseball now is something new. It's a new baseball, which our people in our community said hey, you know what? We have kids idle during winter and let's get them playing baseball and which is a good thing, but it has an effect on the maintenance when baseball takes place in the spring which is really a spring sport and we are trying to prep the fields so we have to work all of that in. The Permitting Clerk would need to know, okay are we going to play in Koloa, but we have to get the mounds ready for the traditional season when baseball is played over there and be able to coordinate all of this stuff that is just one sport. You know, we have KIF as another sport and all of these leagues have really taken off. And it is a good stuff. Futsol is another new one that is kicked round on the South Shore. Well a parent wanted to do futsol our in Kapa`a, and boom, all of a sudden you have 70 kids to use the roller rink, which is a wonderful thing it adds a different aspects to the roller rink aside from having the roller derby and the inline hockey and because of the 70 kids, you cannot fit them all over there on the Eastside and now they going to have to use -- and we're trying to balance a tennis court because futsol is like soccer on a basketball court or tennis court. Use one tennis court so that they don't have a great impact on the tennis community. Those are some of the April 13, 2012 Parks &Recreation p.16 things that this Permit Clerk that is going to deal with leagues has to coordinate. So I believe there will be enough work for each position. Ms. Yukimura: I really appreciate that explanation. I mean I can see the need for a lot closer coordination and not just coordination among users, but also as you pointed out, between maintenance and use. L. Rapozo: Councilmember Yukimura, we just had a situation up in Kilauea. For the first time ever in this HYSA league Kilauea has seven soccer teams. For the first time Kawaihau has two, I believe major division baseball. It's a big congestion at Kilauea Park. And you have well-intended parents trying to do whatever they want to do and I'm sure you all got the emails, because I saw them. We bring in the league coordinators or the representative of that league, because our parks, we deal with just one person in that league and they manage their league. This park clerk would bring in the two and work it out and we worked it out. We went to the park plan, we need more space, given, we understand that, but we worked it out. So that everybody can participate. Ms. Yukimura: Okay. It just is a little bit of a disconnect for me that a clerk would be doing that kind of coordination. So it seems like it's a higher level position to do some of that. And so it's a matter of are you going to be able to hire at that salary level g g y el for that kind of functioning and whether it's really a Clerk Position that should be doing that. L. Rapozo: I welcome more but we try to... Ms.Yukimura: Well, it's not just about more, like more clerks? L. Rapozo: No, I'm not talking about more clerks. If you want a higher level, I welcome that. If you believe that function would fit better that way. Ms. Yukimura: Well then it may not be a Clerk and the Clerk would just follow whatever the arrangements are done by the higher-level position. So I'm not willing to impose my tentative thinking on it, but I'm asking you to maybe take a look at it and see if it's a different level kind of position. So anyway, that is just my question. And then on the Commercial Activities Permit Clerk, thank you for explaining to me and I want further clarification. Are we saying that for all concessions you need a public hearing on the specific award of a permit to a specific concession? L. Rapozo: The activity. The activity. Ms. Yukimura: Okay. So once the activity is set, then there — no, but the permit is not for an activity the permit will be to a specific concessionaire. L. Rapozo: Correct, before we get to the permit, we need to go into the community and to set the leaps and bounds of the activity. So for instance right now we did the two I believe the two toughest that we have on the island. We took on the toughest which is surf schools and boating in Hanalei. We had the public hearing. The public hearing is still open, because we need to do some other things as a County. So this Permit Clerk would need to make sure that we continue to move in that direction. If there is a snag in what we need to do, we need to go as the managers or administrators, let's breakthrough the wall and get that done. Ms. Yukimura: To me that is more park planning, like a planning and I'm not even sure what level planner that would be doing some of that, not a clerk. April 13, 2012 Parks &Recreation p.17 L. Rapozo: I disagreeing because if it's just following through, as oppose to actually doing the work, I agree but I'm not going to pay someone higher to track something. We can do that with a Clerk. Ms.Yukimura: I totally agree with you. I'm thinking as you describe it and I think a Clerk, not being totally familiar with the job description and level of functioning, but the Clerk makes sense for taking of minutes and transcripts, although I'm not sure that is a clerk. It might be secretary level. Whatever it is, putting that aside, somebody that can do a more mechanical function versus policy thinking in terms of input -- taking input from the community and setting levels of activity. L. Rapozo: She is not going to be doing policy. .I will give you an example. For the activities -- Chair Furfaro: Excuse me, Lenny, I think you have answered the question. Okay? I want everybody to know, the section we're on right now until 10:30 is about staffing questions as it related to the overall plan. I plan to take a recess at 10:30 and then we're going to go again, because we're going to go to 1:00 today with parks. Staffing questions now. Go ahead, Council Vice-Chair. Ms. Yukimura: I am just giving some input and asking some questions, not necessarily disagreeing, but my last question is about the Park Ranger. Some of the Park Ranger functioning that you described, being an ambassador and interface with visitors and stuff, I see that as a role of almost every County employee who is out on the parks. L. Rapozo: Yes. Ms.Yukimura: Whether it's a Water Safety Officer, a Caretaker, you know who is cleaning the bathrooms, or raking the leaves, or the Park Ranger. And to make it like a core function to be out there I think is at some point we can get there, but right now, it would be mainly the enforcement and management of our rules is my thinking. So in terms of -- and we have recently added Park Rangers. So I'm just trying to think how fast do we jump off? And I understand that our ultimate goal will be that kind of coverage that you are talking about. I am just not sure how much/how soon is kind of the questions that are coming up for me. L. Rapozo: Yes, a couple of things on what you just said. I hope all of our County employees has that aloha spirit, because that was one of the major trainings we went through is the aloha trainings when we first came in to give that customer service training. But the Ranger's function is to go to different campsites to check permits and so their initial contact with these people as part of the job. We expect our Park Caretakers, Grounds Keepers to have the same type of aloha, but other than going straight to the bathroom, to service the bathroom or getting the rubbish, they may come into contact and I hope that those employees show the same type of customer service. But what we're depicting is yes, they are the ambassadors because they initiate the contact with the public. They initiate those contacts and you and I have all been tourist of someplace in America and we don't really know all of their requirements and a lot of people just going camp in the parks. That is why they are educators first and citations as a last resort. As I had mentioned earlier in looking at what our current fiscal situation, I cannot tell you when we're going to get to the point that we'll have the coverage that we're going to be satisfied with. Because we're working with x amount of available funds and trying to meet the needs of what we expect for our community, and still working that the funds need to be given also to other Departments for other functions. .I would love to come here with my Christmas list and get everything that we could get. That would be wonderful. Ms.Yukimura: You and everybody else in the county. April 13, 2012 Parks & Recreation p.18 L. Rapozo: Yeah, and everybody else going get mad with me right but that's okay. I hear what you are saying and I cannot tell you exactly when we'll get to that place that we want to be, but we're moving in that direction as quickly as we can, I think. Ms.Yukimura: Okay, thank you. L. Rapozo: Thank you. Chair Furfaro: Lenny, before I recognize other Councilmembers, I just want you to know that the culture that we have in the County, our vision and our mission statements are something that we surfaced with this new Human Resource Department yesterday that we have this kind of continuity. Going back to staffing here, Councilmember Nakamura, you have the floor. Ms. Nakamura: Thank you, Lenny, I have a question. Over the past few days we have been talking to different departments and some of them have talked about the concerns that they have given their staffing. In the areas of procurement and contracting, the Police Department mentioned it yesterday. Before then it was Civil Defense. So it's of kind of a follow-up to Councilmember Kuali`i's question. Do you feel that you have the adequate resources in your Department to do a good job at procurement and contracting, because it's a specialized area? L. Rapozo: It's always a challenge I feel for and the ones who really do all of our contracts and bidders who have the most experience is Planning and Development, because he does all of our CIP... well he is the lead of all of our CIP and the Parks Maintenance Chief who does the tree-trimming and port-a-potties. It's tough, the procurement, because procurement laws are such, that they don't want us to be coming home with Hawaiian Heirloom Jewelry on our wrist. They keeping us out of there but I think it takes longer I think our people are challenged with trying to get the contracts through the procurement process to get the services that we need. Ms. Nakamura: One of the suggestions that just informally talking to some of the players was would it make scenes for maybe Fire, Police, Civil Defense to have bodies that are just focused on procurement and contracts and to move the contracts out to get the monies out and spent? Do you feel that the current resources are adequate to move your projects? L. Rapozo: No, it could be better.Yes, it could be better in the timing. Ms. Nakamura: Yeah, and if you were to do — if we were to look in this direction, where would that body belong? Where would that position be in your Fiscal Department or Planning and Development, where they push out CIP projects? L. Rapozo: I would envision that would be in Fiscal, because our Parks Maintenance, I would like it not to focus on CIP. Parks Maintenance has contracts and Golf has Contracts. I would rather it be a Department thing. Fiscal handles Department wide and Fiscal handles related matters and I would want that in the Fiscal side so it could service Planning, Park Maintenance Golf and even Recreation, because we have bus contracts, meal contracts. Ms. Nakamura: So is that what your positions do now, the Budget Fiscal Specialist and your Accountant L. Rapozo: No, not with contracts. Unfortunately they are tasked with enough in the Financial of our Department. Really the Division Heads have been handling that portion. April 13, 2012 Parks &Recreation p.19 Ms. Nakamura: I think what we're trying to figure out. What is the bottleneck within the Departments to get funds out, and it seems like this is system wide that there is a need here. L. Rapozo: That would be good, thank you. Chair Furfaro: Lenny, along those lines, who would you be paired with? For example we see Fire, Police and Civil Defense as a similar public safety needs, responses and so forth. Where would you see -- L. Rapozo: Definitely Public Works. Chair Furfaro: Public Works, okay, Public Works, Parks, any others L. Rapozo: No in terms of the type of work that we do, we're pretty similar. Chair Furfaro: Thank you very much. I think we left off on page 45, at least as I drank my carrot juice to improve my memory. L. Rapozo: Page 45, up there get page 7. Chair Furfaro: No, but that was when you was reading. L. Rapozo:p Oh, okay. If you go to page 10, which is the graphs of the j Operating Budget for Parks and Recreation Administration and Fiscal we can see again the Fiscal Division the decrease in salaries and wages, I attest to the moving of the Personnel Specialist to HR. Equipment, there is a decrease, because we got some replacements in the works from the last budget and this budget, the replacement and equipment will be mostly attended to Park Maintenance, the Po'ipu Enhancement Fund. And again on page 11 is the pie charts of the fiscal and Administration Division. The Convention Hall, the successes of the Convention Hall, over this past fiscal year, we continue to do facility upgrades with the following upgrades. There is a new installation of a new tank less water heater for the kitchen to supply unlimited flow of the water to the users. Replacement of two old countertops in the kitchen and exhibit hall service rooms and replacement of all toilet and handle towel dispensers in all restrooms. Replacement of a badly corroded and leaking roof hatch in the theater that was discovered and implementation of a contract to replace the 1095 seats of the 47-year-old seats in the theater at a lower cost than what was anticipated by at least $100,000 that was a good thing. Chair Furfaro: Is that what the bids came in? L. Rapozo: The bids came in, correct. Chair Furfaro: Because in concept we approved this at $400. L. Rapozo: Came in at $260, I believe and we're anticipating contingencies, so we're just keeping $300 on the books and another $100,000 is being reprogrammed by finance. Okay. Eddie Serita. Chair Furfaro: Good job, Eddie. L. Rapozo: So again the Convention Hall continues to be a work in progress. It's a 47-year-old facility that we continue to upgrade. So some of the improvements that April 13, 2012 Parks &Recreation p.20 we look to is to replace the deteriorating air conditioning registers in the theater at a cost of about $8,000 to improve the air quality in the theater. Improve the theater stage with additional curtains to enhance show performances. Purchase a new commercial rated stove for the kitchen and two or more new attractive trash receptacles for the covered walkway outside the lobby. Purchase new floor scrubber for our floor maintenance and refinish our valuable the Grand Piano that was purchased in 1977 to enhance its appearance. So we want to do that. .I think one of the exciting things of the Convention Hall is that although it's 47 years old, if you think about it, it's larger than the KCC Theater that we have and it's being well-used and I think the exciting things that is up controlling that Eddie has been more in contact than what I have is a Shakespearean play that is coming. Kermit Christiansen from Jupiter Florida who has done these Shakespearean Plays all over the United States have been wanting to bring all of his people here, which I think is going to be something exciting. I hope we can fill the room up. It is exciting because it gives us a different cultural experience for our island, which is what we try to do and provide. Page 15 on our breakdown of the Operating Budget of the Convention Hall, the operations, the increase is so high, because we anticipate added costs, boys and girls club is taking over the two dilapidated portables, the old County portables in the back of the Convention Hall. They are going to provide a Lihu'e Clubhouse for the kids of Wilcox. Unfortunately for Eddie, fortunate for that facility, the water and sewer is hooked up to the Convention Hall. So we anticipate some increase in cost there for the usage there and that is attributed to some of the increase in the operations of that facility. Again the pie budgets for the different...we move to park maintenance now if you don't have any question. Chair Furfaro: I have one. Between the Convention Hall and I think Hoolokahi do we have any questions and I will start with one myself. The bad hatch on the Convention facility L. Rapozo: Yes. Chair Furfaro: Can that be moved up in priority? Obviously, if we continue to have the leaks and water in there, it might lead to additional damage. L. Rapozo: The hatch. We fixed that up. It was done, chair. Chair Furfaro: It was done? L. Rapozo: Yes, that is one of the successes. Chair Furfaro: Oh, I will just strike that and go to Mr. Chang for a question. Thank you Eddie for being on top of that. Mr. Chang: Lenny, thank you very much. In regards to the Convention Hall, what is the policy? It's always sold out, I mean it's always reserved. Do we take a deposit, because it seems as though people will reserve it and at the drop of the bucket they will cancel and there is no cancelation policy and it kind of hinders those that may want to use it, but it's already -- what is the policy? L. Rapozo: We take a deposit, but there is no penalty for withdrawing your event. Mr. Chang: And that might be something that we may want to look at, because I know Mr. Serita, a lot of times people at the drop of the hat say I don't need it and there is such a wait list with the Convention Center and I think a lot of that wait list is due to the fact that we charge an extremely reasonable price for the public. I mean, can you tell us what the charge is for a table? Or what is the charge is? April 13, 2012 Parks &Recreation p.21 L. Rapozo: The list is from 1995 or '96 is the current structure. And we have done research in terms of looking at -- I didn't bring it, but we have done research looking at across the state what the charges are. We haven't sat down and really looked at what we want to charge for Kaua`i.Yeah, you are right, it's a great deal. Chair Furfaro: Mr. Chang has volunteered o be on that committee. L. Rapozo: You can lead the Ad Hoc Subcommittee on that proposal. Mr. Chang: I would love to, along with Mr. Mickens. The reason I say that is there were discussions in the past, because to rent a chair or to rent a table, it's extremely reasonable? L. Rapozo: Yes. Mr. Chang: And it's a great thing for the community, but simple things like, say, for example, we have an 1100 plus capacity, Shakespeare or what have you, but it would be nice to have a sound system within the whole center and a couple of TV monitors, that people—if you can't get in, you could still be part of the whole deal, and even when you are renting out the convention area with the kitchen and that stage, often times everybody moves out and I would love to see a PA system and I would love to see a monitor, stereo sound system, but also with television or screens that everybody can be part of the whole process, because it's such a popular and demanding place that it should be interconnected with this side of the hall with the theater side of the hall. I think it can be a spectacular place. Like you say it's twice as large as KCC. I don't want to raise rates on anybody, but I think it's been long due because it's so popular and affordable. Affordable in any way, it is leaps and bounds how much people can save and that is why it's so popular. So there should be a non-refundable deposit and I they it's such a utilized area that I would like to see everybody interacting within what technology is all about. I think the Convention Center I think could be someplace magnificent. L. Rapozo: There is no doubt that the acoustics in the exhibit can be improved, but remember that exhibit hall (A) was actually added on and initially all we had was in front of the kitchen and the lobby area. So when they built exhibit hall (A) (inaudible) yes, the acoustics is not as great as we would want it to be, but again, it's an exhibit hall. The other thing is that we have County PA system that you can hear in the front and you have speakers that can go in the back so that everybody can have. If you are asking for us to put in improvements in terms of the sound system for the theater and exhibit area, I'm sure that could be done but with the recent event, Island Torch Productions, this is by no means a commercial for them, but they held the last MMA event at the Convention Hall and I think this was the third event we had with them. Eddie Sorita: Fourth. L. Rapozo: Fourth event and they have brought in their own system, where going through the risk management and our attorneys to make sure we were all covered and Eddie's diligence with the indemnification forms and for every participant as well as the facility indemnification forms. They maxed out. about 1500 people were held in the facility. So they had the event in the theater and they had monitors in the exhibit halls for those that were in there that choose a different avenue or different setting to setting to watch the event. My understanding is that Councilmember Yukimura is a fan of those activities so she was there. So she had firsthand experience and I'm happy and glad you did, because you saw it's a different range of people that come to that event. But getting back to your point, there is the technology out there. These people have used the technology to do exactly what you have described. Yes. April 13, 2012 Parks &Recreation p.22 Mr. Chang: And I would like to see that as a wish-list, for permanent deal for the public because I am always into the acronym and I'm sure I am saying that right is MMA, Council Vice-Chair Yukimura is a black belt in mixed martial arts so stay away. Thank you. Chair Furfaro: That is an abbreviation. Ms.Yukimura: I am a learning audience. Chair Furfaro: Thank you, Convention Hall, Vice-Chair Yukimura. Ms.Yukimura: First of all I until you mentioned it realized Boys and Girls Club although I see now it is in the budget. I just want to declare a potential conflict of interest because I sit on the advisory board so in terms of voting on that particular item I won't. But my question is about the Hoolokahi project or Program which I think is a fabulous program because it really optimizes the volunteer help that we get from citizens and community groups, so my question and I don't know if Eddie wants to try to answer it but is the amount set aside for the program sufficient to support that kind of Community/County effort? L. Rapozo: The Hoolokahi Program as I have been schooled in it was to give the community an opportunity to come to the County for grants of not more than $5,000 to do projects within their respective communities. The adopt a park program, which I think is what you are referring to, the community groups have come forward to adopt a park, to pick up supplies to enhance park facilities. We have increased that budget a little bit because there has been demand. Working with the park maintenance division, Eddie and George has been able to meet the community needs. Last year Eddie's budget reflected 25 picnic tables that the friends of Kamalani and Lydgate built for the facilities down there. With the paid we understand there is always needs for those things. There is slight increases in there and hopefully we can meet the needs of our community to continue those programs. Regards to a Hoolokahi recently what we have been doing is community groups have come in and requested to do things within their communities. We have looked at the park trust funds to fund those grants or some other means to fund those projects. Ms.Yukimura: Thank you for the clarification so the line item special projects under Convention Hall, that is what is funding these adopt the park? L. Rapozo: Correct. Yes I believe so. Ms. Yukimura: And Hoolokahi is the larger projects? L. Rapozo: Hoolokahi, from my understanding the way it was envisioned would have a set amount of money in an account and people within the community that wanted to do a like a batting cage or wanted to do a pavilion or a , -- I'm sorry, it cannot be a pavilion. Anyways the limit from what I understand was $5,000. It was a grant program to do stuff within your community. Chair Furfaro: Let's get that corrected that is actually the maximum. L. Rapozo: The maximum, yes, correct. Chair Furfaro: The limit is where it starts from. It's the maximum. L. Rapozo: Yes, that's correct, the maximum of $5000. We haven't had too many requests for that. The request that generated recently had been from youth groups that April 13, 2012 Parks & Recreation p.23 wanted to do batting cages. The last one was in Waimea. I had some preliminary discussions with Kawaihau Little League to do one or two of them and that is kind of what Hoolokahi projects have been recently. Ms.Yukimura: Oh, okay. Thank you. Chair Furfaro: Councilmember Nakamura? Ms. Nakamura: There are so many community volunteers who do so much in our parks, and I was just wondering, you know how on the RSVP side with the elderly we do this whole recognition of volunteers, because of the thousands of hours of volunteers of work they put, saving the County thousands of dollars, I think the same situation here. I was wondering, Lenny, do you think there would be any value to recognizing volunteers? L. Rapozo: It never hurts to show your appreciation. I agree and I apologize if we should have a formal appreciation event for them. Definitely. Ms. Nakamura: It's a very structured program from what I understand with RSVP, they tabulate how many volunteer hours are put in and doing 5, 10, 15, 20, 25years of recognition but they have that one luncheon that is a pretty major event and really shows the County's appreciation. I know something like that takes a lot of man hours to organize as well. But I just wanted to toss that idea out and see if you think we should do something. L. Rapozo: Definitely, something, Definitely. Chair Furfaro: Vice-Chair Yukimura. Ms. Yukimura: I just want to piggy-back on that. I know Councilmember Bynum has been talking about that, too. so I think there is a lot of interest in that and I think also at the same time we recognize how full your hands are already, so it may not start out as that kind of big, formal recognition, but in small steps to find ways to recognize. L. Rapozo: I totally agree that appreciation, growing up, the most two important words I learned were "thank you."it's very important. Chair Furfaro: Members, we have Convention Center, Hoolokahi and adopt a park in this portion. Any more questions on those items? We're on to page 17 of 56 and I just want to say that we spent about 40% of our time on 25% of the topics. So before we take this first break, any questions directed on those three items? No? Okay. It is quarter to 11:00. Let us be punctual and take a 10-minute break, if that works for everybody. We are in recess for ten minutes. There being no objections, the meeting was recessed at 10:45 a.m. The meeting was called back to order at 11:07 p.m., and proceeded as follows Chair Furfaro: We are back from our caption break, our recess. On that note, Lenny, we would like to go on to Repair & Maintenance, R & M items perceived differently, again, Members from what we will see this afternoon in CIP, which is Capital Improvement Plans. So Repair and Maintenance. LENNY RAPOZO, DIRECTOR, PARKS AND RECREATION: Thank you, for the record Director of Parks and Recreation, Lenny Rapozo. April 13, 2012 Parks & Recreation p.24 We are moving to Park Maintenance and Beautification. I will just go over the successes and achievements real briefly. Successes and achievements, community outreach, again this year the Parks Division has effectively made connections within our community surrounding our Parks and Recreation facilities throughout the island. The support given by the Park Maintenance Beautification and Stadium Divisions help the community to be connected with one another and our with our Department. Examples from the past year include numerous beach and park clean-up events, volunteer painting, building of picnic tables, and improvements to our baseball and softball fields. The improvements to Peter Rayno Park by the Senior Softball League had been particularly noteworthy. In addition, because we have responsibility for the large community gathering places we are involved with and help to provide the venue for families to gather for birthdays, graduations, weddings, and reunions. We also maintain and repair the sports facilities in which our children, adults, and seniors recreate and compete for the health and enjoyment for everyone involved. Finally our mobile sound stage gains in popularity each year and through our work to maintain and deliver this popular stage to the community events, we help non-profits and community-based organizations to host spectacular and successful events throughout the year. We are proud of the positive impact our services delivered to the residents and visitors of Kaua`i. Another success has been training. We have invested more time or tried to find more training opportunities to include tree care, landscaping maintenance, pruning, safe use of fertilizers and pesticide, risk management, customer service and supervisory training. Providing and attending training classes is extremely important and a positive part of what we are trying to accomplish in the Maintenance Division. Additionally, a safety training is scheduled in the coming year. New and more professional equipment - In past year with your support we have been able to provide the staff with more small equipment replacement items, but more importantly, we have been able to start replacing riding mowers, utility carts that were deferred for replacement in previous budget years. Once these vehicles are in service, we expect to see an increase in productivity on many levels. Staff are working well with Purchasing and Development with better specifications and bids received are highly competitive, with better equipment, staff morale is improving. The other thing is when purchasing of the small equipment moved to our department and it was not at one time it came out of Public Works motor pool. It allowed us to control the quality of equipment in that we were now buying more commercial grade equipment. In the past we were getting equipment that we used as home users as opposed to stuff that was being used on a daily basis and needed to be more heavy-duty. Intra and Inter Department communications in most areas improved communication between Department of Parks Divisions and other Departments is making a positive difference. Good professional relationships are being fostered between the OPR Divisions and improvements are noted in our communication and coordination with Public Works, Finance, Purchasing, Water, and the Mayor's Office,just to name a few. Customer service, the division is continued still working to improve our delivery of customer service. Phone calls and emails are returned more promptly, residents feel that they are being listened to and receive resolution on issues more quickly than before. Administration and staff are willing to meet at Parks with community members to discuss issues and take action on them. Administration and staff are more responsive and respectful to ideas and feelings of park users through these direct interactions. Those are the successes and achievements of this Department. Challenges, of course, continue to be staffing, but we had spoke about that earlier. We have some aging facilities, which are challenges. Communication, although it is improved, we can always improve on communication with clear communication. Some of our improvements, we are hiring more staffing, with this budget and also we have done some playground repair, the fencing and backstops. We are proposing to do some maintenance and repair on that, but I would like to move on April 13, 2012 Parks &Recreation p.25 to our operating budget for park maintenance, which is on page 20.The equipment and lease we talked about replacing all of the aged equipment and you can see a significant reduction at 69.9%. Part of that is that Finance has asked us to take moneys from the Park Enhancement Fund, which is the Spouting Horn rental moneys that we get as a County, to purchase the new materials. So there is the significant drop. The other significant drop that you will see in our new equipment request, it was erroneously placed in Recreation, and that correction will be made in the May submittal. I have communicated that to Finance in reviewing our budget. Mr. Chang: I am sorry, could you repeat that, please? Mr. L. Rapozo: The equipment? Mr. Chang: Yes. Mr. L. Rapozo: Part of it is the replacement of the equipment, we have requested the funds to come from what I call"the park enhancement fund," which is the rent moneys or the moneys that are paid to the County from the Spouting Horn vendors. The other new equipment that we asked for, bucket truck, forklift, to help us do the work, you can see a sharp increase in Recreation, that was put in the Recreation budget by mistake. I communicated that to Finance, and in the May submittal, that will be cleaned up. But for the purpose of being accurate and consistent with this presentation, it is not in this portion of the presentation. I just wanted to bring that up. Same is being held true with operations. You may be wondering why there is a 40.9% decrease. Well, a couple of reasons, part of the R &M in buildings, which was $80,000.00 in the original request for this budget as you see, we have been asked by Finance to take those moneys out of the Park Enhancement Fund as well. And I really want to emphasize that we have asked for less money in the past from $103,000.00 to $80,000.00, because we had understood that we will be making...we will be doing corrections to our lights in our facilities. Henceforth, new lights, less maintenance, right? So there is a decrease in that. In the construction side, $183,000.00 total was removed, and that portion of that moneies, again, were also taken out. We have been asked to take out from the Park Enhancement Fund. Chair Furfaro: Lenny, I want to make sure what we understand what we are saying here for all the Members. When you talk about the Park Enhancement Funds, are talking about the special park fees that are assessed by districts? Mr. L. Rapozo: No. The Park Enhancement Fund I mentioned earlier are fees that are paid by the Spouting Horn vendors to the County as I understand to help better park facilities. Chair Furfaro: On that point I want to make sure we check with Legal and make sure that fees coming out of Po`ipu can be used in other districts. Mr. L. Rapozo: I believe that is what Finance is doing as well. Chair Furfaro: Did you say that earlier? Mr. L. Rapozo: No. But we were directed by Finance to shift the moneys of the request from that fund. Chair Furfaro: I wanted to make sure because we have some pretty rigid guidelines about the 5 park districts. So if you could just follow-up on that. Vice Chair Yukimura. April 13, 2012 Parks &Recreation p.26 Ms.Yukimura: I think the park fund, I think it is new and I was wondering if we could call the Finance Director up to explain. Chair Furfaro: Sure. Wally, if you can talk about this new fund, but also address the question I had earlier about one park district funds being used in other districts. WALLY REZENTES, JR., DIRECTOR OF FINANCE: A number of years ago the County Council assed an Ordinance that allowed the Parks Department to utilize the revenues of the P p Spouting Horn vendors for, use that revenues to put back into Parks. It is generic to do improvements and maintenance, etcetera to parks Countywide. It was not a district by district thing. We can get a copy of the Ordinance passed for that purpose, but it has been a number of years ago. I would say my guess maybe 8 or 10 years ago. Chair Furfaro: I will ask the staff to get a copy of that Ordinance because I think both JoAnn and I supported it, but I want to make sure no verbiage in there restricting the district. JoAnn had a question. Ms.Yukimura: Will we be putting other moneys in there as well, other moneys from concessions etcetera? Mr. Rezentes: No. That is strictly from Spouting Horn only. Ms. Yukimura: Where do the concession moneys go? It goes into the General Fund? Mr. Rezentes: No. That fund, the moneys go into a separate fund outside the General Fund, and it can be utilized for park improvement and expenditures for parks. Ms. Yukimura: I am not being clear. Lunch wagons, any other concessions that are non-Spouting Horn, are those moneys eligible to go into the Spouting Horn Fund? Mr. Rezentes: No. Ms.Yukimura: And if not, where do they go?Under "fees?" Mr. Rezentes: Yes, they go into a different section. The Spouting Horn Fund is actually called our 209 Fund. The other fees, the miscellaneous fees that come from vendors go elsewhere, not into the 209 Fund. Ms.Yukimura: Where do they go?Licenses and permits? Mr. Rezentes: Yes. It will probably be in the General Fund. I do not have it in front of me, but we can provide you that information exactly where it goes. Ms.Yukimura: How much money comes from other park concessions generally? Mr. Rezentes: I do not have that number off hand. Chair Furfaro: But we do have that as an agenda item Tuesday when we cover Revenues. Ms. Yukimura: Okay. April 13, 2012 Parks &Recreation p.27 Mr. Rezentes: It is not that much money. Chair Furfaro: But you will be prepared to discuss that with us Tuesday, Wally? Mr. Rezentes: We can have that information. Ms.Yukimura: The reason I am asking is just like DLNR is looking for a sustainable source of moneys. The Spouting Horn Funds are by no means sustainable for parks. But what we are doing is to earmark them for parks. Mr. Rezentes: Correct. Ms. Yukimura: I am looking for other logical earmarks that might feed into the parks, some kind of sustainable source. Chair Furfaro: Thank you, Wally, we will get some more clarification Tuesday. Ms. Nakamura: I have a question for Wally. Chair Furfaro: Wally, we still have a question for you. Ms. Nakamura: So is the Park Enhancement Fund different from the Beautification Fund? Mr. Rezentes: Yes. Ms. Nakamura: So it is just not listed here under special revenue funds? Mr. Rezentes: I believe when you look at the ordinance, it will say that the funds are deemed as appropriated. I think the intent of the County Council at the time was to allow the Parks Department to have ready access to the Spouting Horn Funding source to make improvements and buy supplies, etcetera; to improve parks Countywide. Chair Furfaro: We are getting a copy of the Ordinance. Ms. Yukimura: So I just want to be clear about the name of Spouting Horn Fund. It has been called the Spouting Horn Fund, and then is it also the Park Enhancement Fund... Mr. L. Rapozo: That is my term. Ms. Yukimura: But we are talking about the same fund? Mr. L. Rapozo: Yes. Ms. Yukimura: Okay. Can we settle on one name? Mr. Rezentes: I like the way, Lenny...Park Enhancement Fund. Chair Furfaro: We will get the ordinance and we will all start using the term in the ordinance, how is that? April 13, 2012 Parks & Recreation p.28 Ms.Yukimura: Yes, that might give us some idea. Eventually we will get to a standard phrase, so we know what we are talking about. Thank you. Chair Furfaro: Wally, thank you again. Mr. Rezentes: Thank you. Mr. L. Rapozo: I wanted to explain this graph. The reduction in the salaries and wages is...a policy decision was made where all small equipment within the County will now be centralized in one particular place. So they are moving the Mechanic that is currently in Parks, the proposal is to move the Mechanic as reflected in the budget, with Transportation and they will be based there to take on the repair of all small equipment within the County; that includes Public Works and Parks. That is the relationship to the slight decrease in salaries and wages. The pie chart reflects different increases and decreases, as well as the bar graph. Ms. Yukimura: Regarding the move of the Mechanic from Parks to Transportation and I like the general idea of improving the internal service and increasing the speed of repair. This is basically for repair and upkeep of small equipment? Mr. L. Rapozo: engine. Small p g Ms. Yukimura: Small engines. Ms. L. Rapozo: To get an idea Councilmember Yukimura, nothing bigger than a riding lawnmower. Ms. Yukimura: They are not all going to be stored there, they are going to be fixed there? Mr. L. Rapozo: Yes, fixed and returned back. Ms. Yukimura: Great. Thank you. Mr. L. Rapozo: With regards to the Parks Beautification, the slight increase in salaries and wages are a reflection of the Irrigation Technician that we hope to acquire. Ms. Yukimura: A position that you are hoping to acquire? Mr. L. Rapozo: The Irrigation Technician that we talked about earlier, that would be part of the Parks Beautification and be responsible for-irrigation within all parks.Again we have the different bar graph and pie chart. In the Stadiums Division, this line item is salaries and wages. The reduction can be attributed to, we are managing our overtime better. I will show it at the end of the presentation the Department overall. We have changed some polices in terms of overtime within the Department, which has shown a good reduction within the last 2 fiscal years for our Department. That is a reflection of this request for less amount for salaries and wages and overtime. The equipment lease reduction is because we...last year we had a lot of motors that were replaced here and so those moneys of course to replace the current equipment in this budget, that is the reason for that decrease. In the operational, the R & M of buildings we show a reduction of$40,000.00 to $10,000.00. The reason for this in the repair and maintenance for buildings, that is where we have the repair of light fixtures at our stadiums. All of us recall that we completed the CIP project of retrofitting all of lights within our stadiums. With brand new lights, there should not be a need at the current time for April 13, 2012 Parks & Recreation p.29 any...I should not say any, but much repair and maintenance in terms of changing the light bulbs and contracting somebody out to get up that high to change it. The County does not have the equipment to reach the heights of the poles at the football stadiums that we have. Chair Furfaro: I am just going to share with you folks, we are going to go back on this other item. The ordinance reads "any fees or revenues made pursuant to section 23 shall be deposited in the Department of Parks and Recreation operating budget account." So it makes no mention in the ordinance about it going to a special account. I have just asked them to look and see if there was an amendment to that. That is where we are at right now. Vice Chair, you have the floor. Ms.Yukimura: (Inaudible) Chair Furfaro: We are done with that. I just want to let you know we have it up on the screen here. Ms.Yukimura: Thank you. Regarding the lights then, first of all, congratulations for getting that job done, and then secondly, can we anticipate any lower electrical costs where those lights... Mr. L. Rapozo: Yes. Ms.Yukimura: More electrically efficient? Mr. L. Rapozo: Yes. Ms.Yukimura: Is that reflected in the budget? Mr. L. Rapozo: Yes. Ms. Yukimura: Excellent. Do you know how much we are saving? Mr. L. Rapozo: I do not know the percentage or the cost we are saving on lights, but it is more efficient. Chair Furfaro: You do not want the percentage of the cost, you want the percentage of the kilowatts? Ms. Yukimura: Right, because we may not have savings. We have seen it Countywide that our kilowatt usage has gone down, but our electrical costs have not because the cost of oil has been going up, which again emphasizes the need to get off of oil. Chair Furfaro: Councilmember Nakamura? Ms. Nakamura: The budget is showing utilities being flat, 0% increase. So it is a good thing. Mr. L. Rapozo: Even though we spent less, I do not know what kind of activities is coming up that the stadium will require the use of lights... Ms. Nakamura: I was just there last night and the field looks great and the seats... the bathrooms. I had a question about... I had heard that the Track and Field Statewide meets cannot be held there because of the field events. W.. .... April 13, 2012 Parks &Recreation p.30 Mr. L. Rapozo: Actually it is the shot put. Ms. Nakamura: Is it where the shot put is? Mr. L. Rapozo: Where the shot put is located out towards the grassy area, for where all of us future pro football players practice while the game is going on, is the ring for the shot put and the discus. Our athletes now through these particular events throw it farther than what it was designed for. Ms. Nakamura: Okay. Mr. L. Rapozo: So as part of this getting to CIP, part of our intent is to relocate that. Two things, I want to attend the State Track Meet in Hilo this year, to see how they do it. They had suggested that we move that particular event as part of the football field, but I am against that, because the football field, we have a crown to help with drainage so we can play. When you get the shot put on a crown, the ball will roll off. So they need it flat. So we are not going to take the crown off. So what we envision and working with Planning and our consultants, when we are doing it, is that we are going to relocate the shot put and throw towards the left field of the baseball field, and again, this is all preliminary discussions, throwing it out. Possibly have a retractable fence towards the baseball field, open it up for the track and field, and bring it back. There is some other stuff with the track too that we need to correct, but that needs to be one of the prohibitive reasons as to why track and field cannot come here. The timing device might be out of date and we have to look into that, and other things with the track that was brought to our attention. That is the infrastructure that we need to correct first before we can really push and fix the other stuff to attract a state track meet, and I want it here. The Mayor and I and most of us are sports enthusiasts and so yes, we want it here. Chair Furfaro: Do you know that I read from the electronic version, but were there any amendments to that? So everybody should go to page 3 and read Section F. We can do that as we continue here. Wally, do you have something to add? Mr. Rezentes: I was going to bring that up because I knew there was an update. That is why I was trying to scramble to get the information. Chair Furfaro: We have it right now dated April 23, 2008, and the original was dated May 11th, 2007. We have that. Let us continue, Lenny. Mr. L. Rapozo: According to this we should be calling it the parks and recreation improvement and maintenance revolving fund. That is a mouthful. I like Park Enhancement, it was more easy. It is what it is. Chair Furfaro: That answers our question about the enhancement fund. Mr. L. Rapozo: That is right. We will move on from stadiums, thank you. Mr. Chang: Question. Chair Furfaro: You have a question? Go ahead. Mr. Chang: Thank you. Let me ask you this question, at nights do the different ballparks, do they have timers that the lights just go on or are there certain nights that E' people can use by using a timer?What is the... �j April 13, 2012 Parks &Recreation p.31 Mr. L. Rapozo: At the different parks we have timers, but in order to engage the lights to come on, you have to press a button and the hope is for some reason that event is canceled, for whatever reason, the lights would not be on for no reason. We do have others who will just go turn lights for whatever. We tried this system at the Lihu`e tennis court, where we now can actually facilitate the change of the timer, input when someone is going to use it, turn it off and back on by using our smartphone. We just tried it out there, and our Planning and Development Administrator is working out really well. At some point hopefully we can do that with all of our parks, with all the new retrofits, yes, that is the technology. The latest technology, and the nice thing is that a lot of problems that we have with the old type of timers, the dial-type. When the electricity goes off, somebody has to physically reset, as opposed to what happens at the tennis court. It is like your cell phone, you turn off your cell phone and turn it back on, based on the computer, it automatically sets the date and time; that is what happens at LIhu`e tennis court. So that is a somewhat new and exciting technology that we want to implement but fiscally, this is not the right time to do. Mr. Chang: The reason I asked, is that I passed Koloa Park Tuesday night and it was raining and nobody was there, but the lights were on. I do not know when it turns off. Mr. L. Rapozo: Most places 10:00 p.m. is the latest that we go, unless they have special permission by the Department. So the Koloa Park, Dickie, you could have gone by the bathroom and there is red button you could have pushed it and turned it off. You could have helped us save money, Dickie. Mr. Chang: My fault. Mr. L. Rapozo: Thank you for bringing that up, Dickie. I am so sorry about that. Mr. Chair, thank you. Chair Furfaro: Lenny, before you continue, I am going to step out for a few minutes to follow up on something. The Chairman of the Committee of the Whole is absent, followed by the rules should be our Finance Chair, followed by Vice Chair. Councilwoman Yukimura would you run the meeting now? Ms.Yukimura: Thank you. Councilmember Kuali`i has a question. Mr. Kuali`i: Lenny, you had mentioned about the equipment being mistakenly in recreation and it should be correctly in maintenance or beautification? Mr. L. Rapozo: That will be in beautification. Mr. Kuali`i: Beautification.And so as is showing in recreation, the amount I see under line item called "vehicle lease purchases," from last year's budget of$12,900.00 goes up to $100,242.00. Mr. L. Rapozo: I am sorry, in which division? Mr. Kuali`i: It is showing now erroneously as you indicated in the recreation division. On our page it is 184, or the third page of the Recreation Division section. Then looking at the detail and I think you said something about the detail not being correct. So I am wondering if you could tell us... Mr. L. Rapozo: You are talking about the Ford pick-up?The new leases? April 13, 2012 Parks &Recreation p.32 Mr. Kuali`i: Exactly. Mr. L. Rapozo: As I mentioned, this should be in Park Maintenance and Beautification. Mr. Kuali`i: I know it should be there, but even still the total of the detail explanation does not add up. Mr. L. Rapozo: That would be a Finance Department question because they figure that out for us. Mr. Kuali`iK Let me ask this then, as far as is this... all of these equipment listed what you know to be what you are getting and what you need? Mr. L. Rapozo: Correct. Mr. Kuali`i: There is 3 replacement vehicles, 4, so 4 replacement vehicles, averaging $35,000.00, and that is a lease? Mr. L. Rapozo: Correct. Mr. Kuali`i: And that is for how long? Mr. L. Rapozo: I believe it is a three-year lease. Mr. Kuali`i: Three-year lease. So that $35,000.00 is the cost for 3 years? Mr. L. Rapozo: I believe it is the cost of the equipment itself. The anticipated costs, because if you look at the text amounts, the aerial bucket truck itself is $185,000.00 and the total is $100,000.00? Mr. Kuali`i: Right. Mr. L. Rapozo: So I do not know what the breakdown is. That is something that Finance would have. Mr. Kuali`i: So it is just the value of the vehicle and not meant... Mr. L. Rapozo: Correct. Mr. Kuali`i: But the cost of the leases is $100,000.00? Mr. L. Rapozo: I do not have the breakdown, but the total cost for those items is $100,242.00. The breakdown is something Finance could give you. Mr. Kuali`i: So the last thing on that, so it has a replacement of those 4 vehicles and it has 3 new pieces of equiptment? Mr. L. Rapozo: Correct. Mr. Kuali`i: A new aerial lift truck, which is valued at $185,000.00, I would be interested to know what the budgeted costs for that on the lease is, and then the new fork I 1 April 13, 2012 Parks &Recreation p.33 lift two ton, and then a new cub cadet tractor/loader. So my question on all 3 of those pieces of equipment is, what is our need for this more heavy-duty type equipment in Parks and Recreation? What is the expected frequency of their use? Will they be used on a daily basis? Once a week basis? And who will operate them?What are those specific positions? Mr. L. Rapozo: Currently with the aerial lift truck, Public Works has one. We have asked for use of it and if you have been to a lot of our parks right now, there is a lot of tree- trimming to be done. Our guys currently in Parks we are only able to get as high as we can reach with a pole saw. We are currently training our people,'because Public Works was willing to bring their manpower with the bucket truck to do the necessary maintenance needs for Parks. We have an increase in projects that they need to take care of their own, and it has become difficult to get our needs and their needs met on a timely basis. We feel not only with the trimming of the trees, replacing light bulbs in some of our ball fields, that we can reach with this particular equipment. We have enough need right now in Parks to have a use of this particular equipment, the aerial bucket truck. In regards to the forklift... Mr. Kuali`i: Does anybody else have one? Mr. L. Rapozo: The forklift? Mr. Kuali`i: Yes. Mr. L. Rapozo: There is one in Public Works that services the whole island and whatever needs of the County. The moving of bleachers, although we do not advocate loaning bleachers out, because with aluminum bleachers every time you move them it tweaks, and it may affect its integrity in terms of its strength. But nonetheless, our community has requested the use of our bleachers for different events and to get the bleachers there, we need the forklift to move the bleachers. Other uses within Parks in changing and moving different skips of whatever parts or whatever. For example, Hanama`ulu Hillsiders just renovated the infield of Peter Rayno Park. We were able to get donated 12 skips of sod. The request to use the forklift was not available and luckily one of the people or the seniors helping with the renovation had access to one, and I believe it was his own personal forklift for his business, and he was willing to use it to move the grass or the pellets of sod. So those are just examples of the need for this particular equipment is for. The new cub cadet tractor/loader... Mr. Chang: Can I ask a quick question? Ms. Yukimura: Is that a follow-up? Go ahead. Mr. Chang: When you mention the tree-trimming, do we mulch? Mr. L. Rapozo: Currently, I do not know. We do not do the tree-trimming, but part of the equipment would have a mulcher. Mr. Chang: So if we are doing general maintenance as far as tree- trimming, would that automatically trigger... Mr. L. Rapozo: We used to take our stuff to the Lihu`e Transfer Station green waste, and now we take it to K u i Nursery Landscaping. Mr. Chang: So they will mulch it and give it back to the community? April 13, 2012 Parks &Recreation p.34 Mr. L. Rapozo: I do not know what they do after we drop it off, but they mulch it and after that I am not sure what happens after that. Mr. Chang: We can do a follow-up. Mr. L. Rapozo: The coconut is the little machine with a frontloader that can get into tight spots in working down at the stadium and help addressing some of the baseball -- instead of having a big loader there without damaging some of the fields. It's a nice little machine to have. Mr. Kuali`i: And nobody else has one? Mr. L. Rapoza: Nobody else has one. Mr. Kuali`i: And it would work with that issue? Mr. L. Rapozo: In parks, we are fortunate that we all play nicely in the playground together. So even though it's designated for the stadium, whoever would need it, golf, whoever needed it within the department. Ms.Yukimura: Thank you. Mr. Kuali`i: Thank you. Ms.Yukimura: Other questions on this subject? I have one follow-up question. Mr. L. Rapozo: Sure. Ms. Yukimura: So for these trucks you have drivers and employees who know how to use them? Mr. L. Rapozo: The aerial lift trucks, we are working with personnel to have positions that we can TA to, to operate. And our current division head in park maintenance is coordinating the training for the use of that particular equipment. Ms.Yukimura: Will you be dovetailing the training with public works and others? What I see here is we're trying to get your needs met in a timely way but also avoid duplications. So in terms of equipment repair, in terms of training, are there things that can be done with others who have this kind of equipment is my question? Mr. L. Rapozo: As I had mentioned earlier, the reason we are requesting this equipment is because Public Works needs -- they have equipment — they have their priorities; we don't have it. Ms Yukimura: So I'm agreeing with you that you need your own equipment. I'm just asking about being able to do the other parts together, training, equipment repair and so forth so you don't have to create this whole superstructure or infrastructure to support this kind of new functioning. Mr. L. Rapozo: Currently the way we envisioned it we were going to train current staff, and when there is a need, we are going to take our staff to use on this particular equipment. April 13, 2012 Parks &Recreation p.35 Ms. Yukimura: So who is going to repair your equipment? Mr. L. Rapozo: The trainer for this particular equipment is the county trainer, the current one that we have, so we're trying to coordinate with him. Ms. Yukimura: And the training is done one by one? It's not like a classroom training? Mr. L. Rapozo: Right. Ms.Yukimura: And that answers my question with respect to training. I'm just looking for other aspects where you are not going to create mechanic shop in parks to deal with this equipment, right? Mr. L. Rapozo: No, this will go back over in the motor pool—piiloke. Ms.Yukimura: Okay. So you are getting the economies of scale there. Mr. L. Rapozo: Yes. The same way we're doing with all our other equipment, large scale equipment. Ms. Yukimura: Thank you. Why don't you continue. Mr. L. Rapozo: We're going to move to recreation. Ms. Yukimura: Before we move, what is the distinction between park maintenance and beautification? Mr. L. Rapozo: Beautification maintains County facilities. So the lawn in the front of this historic county building is the lawn. That would be beautification. Around the complex across the street: beautification. It's not a park. Anything that is not a park, classified as a "park,"beautification maintains. Ms.Yukimura: Is there a reason to keep them separate? Mr. L. Rapozo: Their functions are different. One is related to park maintenance and the others ones are related to County facilities. Ms.Yukimura: It's still basically all park maintenance. Mr. L. Rapozo: Similar grounds as opposed to parks, but similar cutting grass, yes, that kind of stuff, yes. Mr.Yukimura: Right. So it couldn't be a subdivision of park maintenance? Mr. L. Rapozo: No, I think it's good the way it is Ms.Yukimura: It's the most efficient and effective way to address the need? Mr. L. Rapozo: Yes.. April 13, 2012 Parks & Recreation p.36 Ms.Yukimura: All right. Go ahead. Let's go into recreation. Mr. L. Rapozo: Recreation, I will just highlight their successes. Morale continues its work in progress in the recreation division and the staff appreciates the ongoing support. Recreation staff has shown initiative to take on more responsibilities and the positive attitude displayed has had a tremendous effect on the participants of our programs. The recreation division service 162,280 individuals in the fiscal year of 2012 with daily activities and special events. Some of the activities and events include open swim, swim classes, line dancing, Japanese dance, hula, ukulele, yoga, et cetera. Summer, winter, and spring programs the Mayor's age group track meet, which we will be rename as the Mayor's Youth Track Meet, basketball leagues, basketball clinics, senior bowling, ballroom dancing, softball, senior valentines dance, field day and food and craft fair. Good beginning alliance funding to start up a pre-kindergarten summer school program, which was the first for the department of Parks and Recreation. This program was a collaboration with the child and family services and the Department of Education. Good beginnings worked with Kekaha Elementary School in identifying and registering eligible incoming children. A total of 20 children were enrolled. The pre-kindergarten summer school program implemented activities that focused on all of the following domains: social, cognitive and motor development and language skills to assist the child in getting a good start. The teachers conducted a pre-assessment of all children to determine a baseline on their abilities and skills. Lesson planning encouraged, enhanced, and strengthened those domains. Variations of activities were included to provide individualization for each child's strength and weaknesses and parents were encouraged to volunteer in the program, thereby gaining knowledge and information on their child's learning and extending that learning at home. Ms. Yukimura: Lenny, excuse me. Mr. L. Rapozo: Yes. Ms. Yukimura It's really wonderful what you are telling us, but because, I think, we have some time limits, can you maybe... Mr. L. Rapozo: I just wanted to go through the successes. Ms.Yukimura: Okay. Mr. L. Rapozo: Because I think it's important that - a lot of times we come here because something's up, but the recreation and every department they have done some incredible work. Ms.Yukimura: They have. Mr. L. Rapozo: In their achievements within our community. Ms.Yukimura: I agree. Mr. Rapozo: And the reason that we are highlighting the Good Beginnings is that this is something new. This fills a gap of the pre-kindergarten age group during the summertime, when we think of the summer fun, summer enrichment programs that we take on kids from elementary and above. And this was geared towards children that met the income requirements, and a lot of times these children didn't have any formal socialization in the form of going a preschool or anything. So this was something that was very effective, very wonderful to see, and Recreation took the lead in addressing something like this and working with Good Beginnings Alliance. April 13, 2012 Parks & Recreation p.37 Ms. Yukimura: It's a wonderful partnership with, like you have shown, the Department of Education and Child and Family Services. I totally agree, and you are right about celebrating it. Mr. L. Rapozo: Yes. And the outreach is down in Kekaha. A lot of times where the new programs start we always look at places and outreach to the rural community, such as Kekaha to work on this program. Ms Yukimura: Okay, go ahead. Mr. L. Rapozo: Lastly, child and family services, funding for a 2011 summer preschool. This summer program started on June 21st and ran to July 29th and was modeled after the Head Start program, providing educational, social and emotional experiences as well as nutritional meals, outdoor activities and excursions to local venues. The program ran from 8:00 in the morning through 3:30 p.m. Monday through Friday. It included structured involvement in language development, social skill building and developmental appropriate learning activities, playground activities, visits by police and fire departments, and other community resources and family activities at centers. In addition, children received nutritious breakfast, lunch, and afternoon snacks. Again, the Recreation worked with an outside agency to do something, to provide another need in our community. Ms.Yukimura: Wonderful. Where did this one occur?Was it Kekaha too? Mr. L. Rapozo: Lihu'e and Kapa`a? Ms. Yukimura: Thank you. Mr. L. Rapozo: Lastly the improvements: We added or modified innovative exercise programs, of which we all can use, yours truly included. For our seniors we had Drums Alive, zumba gold, aqua zumba, tai chi, yoga, healthy cooking demonstrations and cultural dance classes and Hawaiian hula, Japanese dance, Phillipino dance, inter generational activities like Tutu and Me, our preschool children—where preschool children come over to the senior center and spend time with the seniors reading and singing. We purchased equipment for the Kapa'a fitness room and those are listed there, and those are the improvements for this particular division or a brief summary of what they accomplished. Ms.Yukimura: Thank you. Mr. L. Rapozo: Moving to the operating budget for the Recreation division, I want to highlight that the increase in salaries here in Recreation - the 11.4% increase we attribute to — we are going from 140 summer rec aides to 157. And this being that the numbers have increased in our summer fun, and we want to provide better supervision for the kids, No. 1. And also, there are some special-need kids coming to our summer fun, where we can specialize in addressing the our special-needs kids and trying to have them get fulfilled in the program, and I think it is a good thing.And utilities -I'm sorry? Ms. Yukimura: So that accounts for the increase in salaries you are talking about? Mr. Rapozo: Yes. And the utilities, we were just notified by Wastewater that there was an accounted sewer for the Lihu`e Neighborhood Center on the new side. We have been paying sewer, we thought it was for the whole complex, but they just recently discovered when April 13, 2012 Parks &Recreation p.38 we did the work at the Isenberg Center that we haven't been charged for the Lihu`e new side neighborhood center, and they took us back six years and they gave us a new hefty bill like anybody in the County would get. So we need to, not only pay the bill, but also account for that recurring expense now. So that's the increase in utilities for recreation. Ms Yukimura: And that is included?That payback is included? Mr. L. Rapozo: The utilities, yes. Chair Furfaro: I'm sorry, I want to make sure I understood this. So they are billing us six years in arrears and we are accepting that? Mr. L Rapozo: The process, form my understanding - I have not paid it yet, but the process, of my understanding, that I would come before this body and ask for relief. Chair Furfaro: And the bill total for six years is how much? [Inaudible] Mr. L. Rapozo: $3600. Chair Furfaro: It wasn't$350,000? Mr. L. Rapozo: No. Chair Furfar: $3600? Mr. L. Rapozo: Yes. Chair Furfaro: Or $36,000? Mr. L. Rapozo: $3,600. $3,600. Chair Furfaro: Thank you, Lenny. Mr. L. Rapozo: The equipment and lease, as I had mentioned earlier, the big increase was because of what our discussion was with the bucket truck and all of that stuff being in this budget as well. Finally, in operations, the drastic decrease in operations is again we were asked by finance to reprioritize the other supplies, which came out to about $82,944 to would go to the — they asked if we could look at putting it in the Parks and Recreation improvement and maintenance revolving fund. And that money is there, as well as the $55,000 for the special project that was earmarked for the different organizations, as well as the meals for summer fun, $65,000 of that. So that's the decrease in operations. And, of course, that hasn't been finalized because they want to make sure that we are all in line. Ms.Yukimura: Questions? Planning and development is the next. So you are finished--this is concluding recreation? Mr. L. Rapozo: Yes. Ms.Yukimura: So questions for recreations, Councilmember Nakamura? Ms. Nakamura: You know this Child and Family Service summer preschool. How many children did you serve in this program? April 13, 2012 Parks & Recreation p.39 Mr. L. Rapozo: Do you remember? 720. Ms. Nakamura: This and the Good Beginnings Alliance, I think, are terrific programs, really moving in new directions, and now reaching out to potential at-risk special-needs kids. I am really happy to see these programs. Mr. L. Rapozo: This is Cindy Duterte, she's the Division Administrator. And this is part of her work as the recreation administrator which the division has done excellent work, as well as moving the 21st senior, addressing the needs of the 21st senior. Ms. Nakamura: All really, I think, great directions for the County to be moving in. One of the things I am going to be asking for moving forward is metrics, because I don't think this really captures it completely, the number of summer fun participants, the number of elderly. I think we need to get a better scope of what we are doing because I think it's much more than we're probably all aware of. And, again, I think, we should recognize the kind of progress you are making. Mr. L. Rapozo: I believe it's in our annual report, the department's annual report. Ms. Nakamura: Okay. So maybe we should be looking at that hand in hand. Ms. Duterte: And with the addition of our senior specialist, and placing the recreation leader under the senior. Ms. Yukimura: You should give your name. Ms. Duterte: Oh, I'm sorry, Cindy Duterte, Division Head for Recreation. So with the reallocation of the senior specialist, enhancing that program and putting our rec leader under the senior specialist, we'll be able to provide more statistics that could better describe the picture. Mr. L. Rapozo: And on page 28 of your description, the 21st senior is explained as the new challenge for this division. Ms.Yukimura: Thank you. Go ahead. Ms. Nakamura: So with the decrease in operations, that will be made up from the enhancement fund? Mr. L. Rapozo: That is the anticipation, yes. Ms. Nakamura: To get up to the 2012 levels? Mr. L. Rapozo: Correct. Ms. Nakamura: That is your goal? Mr. Rapozo: Yes. Mr. Nakamura: Okay, thank you. April 13, 2012 Parks &Recreation p.40 Ms. Yukimura: Other questions? Mr. Kuali`i: Mr. I do. Ms.Yukimura: Councilmember Kuali`i. Mr. Kuali`i: So under"recreation:—hi Cindy, aloha. Ms. Duterte: Hi. Mr. Kuali`i: You called yourself Division Head. Ms. Duterte: Yes. Mr. Kuali`i: So in the budget, would that be executive on recreation? Ms. Duterte: Yes, it is. Ms. Duterte: Yes, it is. Mr. Kuali'i: Or recreation coordinator? Okay. And there is a line item that says, "bus service for the summer spring and winter programs." Is that bus service from our bus, from Kaua'i bus? Mr. L. Rapozo: That is the bus we contract a service to different excursions. Mr. Kuali'i: So the Parks and Recreation contracts with Transportation? Ms. Duterte: Bus transportation and then the local bus vendors bid and then the lowest usually gets awarded. Mr. Kuali'i: But that is not the County bus? Ms. Duterte: No, it is not. It is private entity. Mr. Kuali'i: That is another bus? Mr. L. Rapozo: No, it is private entity. Mr. Kuali'i: Okay. And then this, and I probably asked it last year, and I don't really remember the detailed breakdown, but there's a line item called "special projects." And it was $65,000 last year, and it's going down to $55,000 this year, so down $10,000. But what are two or three examples of how that $55,000 is being expended on projects? Maybe two or three examples that will expend, say, half or more of that 55,000. Mr. L. Rapozo: Well, those are monies that are given to — you see in the text area - are we looking at the same one? Mr. Kuali'i: It's a line item with no line items, there's text attached; it just says"special projects, $65,000 last year $55,000 this year." Mr. L. Rapozo: There should be text showing that the monies, $10,000 went to KPAL. April 13, 2012 Parks &Recreation p.41 Mr. Kuali`i: Okay. Mr. L. Rapozo: $20,000 goes to Good Beginnings. And the other one went to Child and Family Services. And the reduction is a result of having to meet some of the cuts that was asked of us by finance. Mr. Kuali`i: So you said $10,000 KPAL, $20,000 Good Beginnings. So the balance of 35,000 to Child and Family Services? Mr. L. Rapozo: I am sorry, mine got cut off somewhere, but that's what those other projects were for, special services. Mr. Kuali`i: That Child and Family Services, that's for that Head Start? Mr. L. Rapozo: Yes, okay. Child and Family Services, 25,000 10,000; 10,000 for KPAL and 20,000 for Good Beginnings, the pre-kindergarten program that we just talked about. Mr. Kuali`i: Right. Mr. L. Rapozo: Yes, thank you. Mine got cut off for some reason. Mr. Kuali`i: Okay. That's it. Thank you. Ms. Yukimura: I just wanted to get clear, Cindy, the Child and Family Service 2011 summer preschool in Lihu`e and Kapa`a, how many participants were there? Mr. L. Rapozo: Roughly 720 we said? Ms. Duterte: No, I believe there were 20 at each site. Ms. Yukimura: So Lihu`e 20, Kapa`a 20? Ms. Duterte: Yes. Ms. Yukimura: And 720 is your... Ms. Duterte: Summer... Ms. Yukimura: Summer fun or summer enrichment. Thank you. Okay. I just want to say that these innovative programs are so wonderful, and they really are in the right direction. The preschool component is getting more and more attention in terms of how critical it is. And then, of course, the changing landscape with seniors with the changing -- the way you term it, calling it the 21st century senior is really the trend that we have to watch and meet. So thank you for that very good work. Very exciting, wonderful ways that the recreation program is evolving. Ms. Duterte: Thank you. Ms.Yukimura: Other questions? If not, let's keep moving. Mr. L. Rapozo: Our next division. Thank you, Cindy. Is planning and development. Planning and Development is where all of our construction projects emerge from. And the successes and achievements of this past year: construction — construction of the Kekaha Fire April 13, 2012 Parks &Recreation p.42 Park Dugout, which was initiated by Mr. Carmana, Jose, as part of his senior project, the lighting retrofit of the Kapa'a New Town Park Football Field; the ADA improvements, which are ongoing at Waimea Canyon and Kekaha Fire Park; the completion of the Isenberg Comfort Station renovation; the ADA announcer booth construction at Kalawai Park, there are three of them, as well as Isenberg Park. Isenberg is the one that got burnt down. 'Ele'ele Nani Park basketball court which was completed, as well as the Hanapepe Cliffside Park basketball court which is being well- used at both facilities. Playground resurfacing at Wailua Houselots and Waimea Canyon, parking lot resurfacing at Waimea Canyon and Hanapepe Neighborhood Center, which is going out. The playing court resurfacing of basketball courts will be completed at Isenberg, Laukona, Willikoa, Anahola Homesteads and Kapa'a New Town by the end of the fiscal year.And the construction of the Kapa'a New Town locker room were up to bids and there are some amendments -- or questions being asked by the contractor. So that will be completed shortly. And beach upgrades at various parks. Check spellings Ms.Yukimura: So we do have the list. Maybe you can talk about the budget projections in terms of the projects that you will be doing in this coming year? Mr. L. Rapozo: You want to do that now or you want to do that at the CIP time, because that is going to be pretty much the same. Ms. Yukimura: Well, in terms of planning and development, what your goals are? Mr. Rapozo: The planning and design are where we are with all of those projects. Ms. Yukimura: You have a listing of those projects? They are kind of hard to see, because they are small. Mr. L. Rapozo: Right here. Planning and Design, right here, page 31. Ms.Yukimura: Yes, I know. We can see it, that is for sure. So maybe we can just-- unless you want to point out any particular ones, we can ask questions about the planning and design. Mr. L. Rapozo: The successes that I just mentioned, those are projects that are completed. And we've gotten great responses from people in the Hanapepe community for their basketball court, and `Ele'ele for their basketball court. The use of the announcer booths, now that ° softball is in full swing, Isenberg is being well-used as well as Kalawai. So those are g g � g good things that we put back into the community. And Kapa'a we have a new locker room, hopefully, under construction by the end of the year. So different parts of the Island have gotten different things. On page 33, are visual projects that have been completed, visual pictures of projects that have been completed. Ms.Yukimura: And they are showing on the screen, too. So that is good. Mr. L. Rapozo: Yes. Ms. Yukimura: It's wonderful to see these projects completed. Like you say, they just add to your mission, quality of life. jl Mr. L. Rapozo: Some of them have been on for a while, in terms of like the Isenberg Comfort Station. I know there's a couple of members have mentioned that, including the Chair, but those are completed. April 13, 2012 Parks & cre Re anon p.43 Ms.Yukimura: Did you want to go over anything else, Lenny? Mr. L. Rapozo: For this division, we are really proud of them moving projects. William has done a really good job of moving projects. And the question earlier about procurement would really help William in terms of moving even more projects to be done. We do have a lot of projects on the board, as a department, and it is illustrated by looking at the plans and designs. As you can see, in No. 5, you may think of it as being only one project, but look at how many facilities they affect in terms of ball field, lighting, and retrofit. I believe we have - one two, three, four, five - 12 facilities just under that alone that he is working with the consultant to complete. We had hoped that the complete design would have been done by May. The consultant had asked for more time, which is understandable, considering the scope of what he is doing. So there is some exciting things to look forward to in terms of the community, in terms of facility upgrades. Ms. Nakamura: I wanted to pass out to Parks and Recreation Staff, the Council's priority list of goals and objectives because it relates to you directly. All of you here are really leaders of the organization. And I don't know if you all received a copy of this before. Lenny, have you seen it? Mr. L Rapozo: No, I haven't. Ms. Nakamura: You haven't? Okay. Earlier this year we, as a Council, worked on some of the priorities for the County. And I thought it would be helpful for you to see that Park -- the improved management and delivery of programs in the Department of Parks and Recreation is one of our No. 1 priorities as a Council. And when you turn the page, the promotion of youth development in a comprehensive way is another high priority. And both of them relate to the work that you do. So I just wanted to make a comment that all of this ties into the good work that I see happening in this department. And that what I'm hoping through this budget process is that you will have the resources to deliver on these priorities. And I think we're moving in that direction. So I just wanted to make that comment. Mr. L. Rapozo: Thank you. Ms. Yukimura: Any other questions or comments? Mr. Kuali'i: I have a question on the Isenberg Park Comfort Station renovation, which you have a picture of a completed project. Did that include a correction to the ADA error we made where we took away one stall? Mr. L. Rapozo: Yes. Ms.Yukimura: Okay. So how much did this cost? Mr. L. Rapozo: Oh, I had that number. I forget what it was. Ms. Yukimura: The reason I'm asking about this is this is a problem across the Island, and the County Council has been concerned about this for many years. And we have been asking for many years about the design cost of correcting that problem. So if we have a - I don't know that it will be true in every case, but it should be similar - we would like to know what that cost is so we could maybe budget repairs on others. And maybe you have that already in your plans. Mr. L. Rapozo: And that is true. A lot of it -- the factors remain as to the connection of the ADA. In this particular case, we have to complete ADA connections from the April 13, 2012 Parks &Recreation p.44 parking lot to the facility. For instance, in Peter Rayno Park with the new comfort station,ADA was already there right by, so that cost was significantly lower than - as opposed to what we did down in Ha`ena Beach Park. Ha`ena Beach Park was, I believe was the high 200,000s because we had to put in a walkways and everything to the comfort station. So I understand where you are coming. So a lot of it will depend on the connection for the ADA. If we touch it, we got to put it in at the same time. Ms.Yukimura: Well, I'm sure it is a requirement or it would not be an ADA- approved construction, but what about the other bathrooms where people line up? Mr. L. Rapozo: I agree with what you are saying, but, again, what kind tie- ins do we have, ADA, at that facility we got to change. Ms.Yukimura: So could you give us an inventory, a list of all the bathrooms that need correction so we can see where they are where they're located? Mr. L. Rapozo: Okay. Ms.Yukimura: And I agree with you that they need to be prioritized. they may not be done all at once but in the places where we have tournaments and stuff and where the lines really are a problem, it seems that we should maybe include some budgetary monies to address them or at least if the citizens see that we have a plan, and that their turn will come, then they will be satisfied that at least we haven't forgotten. Mr. L. Rapozo: Alright. Ms. Yukimura: And then the other one is the playground equipment and the problems that, I think, we're having in Kilauea. I know the Chair was very interested in that, where the ground cover or the foundation under the swings and equipment is breaking up and causing some potential for accidents. And I think you are beginning to address it, but I'm aware that this playground equipment were bought all at about the same time. So I'm wondering how we're addressing the upcoming issues of aging playground infrastructure and how we're going to address them, because it came up in our last budget. And we were told that there was money for it. And I don't know if there is for the full amount that you need. So I would like to be sure that we can cover it in this budget. Mr. L. Rapozo: As we discussed at a community meeting regarding the Kilauea community meeting. Ms.Yukimura: And we haven't-we weren't all there, so if you can... Mr. L. Rapozo: Yes, I understand. The Chair was there at the time. They had come up with proposals saying it was only going to cost $20,000. And they made reference to Prince Park out in Princeville. The Chair did some research, and the cost was much higher than that. Our staff, we have sent -- they have training in playground safety. And the infrastructure for that particular playground is still okay, although some of the elements we need to change. So we will not put in new playgrounds, but we are addressing -- we need some lower level elements, some ground level elements to help some of the kids with ADA abilities. They can have -- we don't have enough ground elements. At the construction time of that particular playground, it appears that, as I read through the documentation, DECAB would say- what is it?—"recommended," I guess was the term, if I recall correctly. It really did not have enough ground elements so that kids with ADA issues had enough things to play with. Working with George and William, working together looked April 13, 2012 Parks &Recreation p.45 at the current elements or amenities they had there. If we replace a swing, which you need twice as much room because you have to go back this way and forward this way. We replace the swing with like a tire swing, you still have a swing, but does not require as much space. We can add onto that particular amenity and get a little bit more elements for kids to play on. So in the budget, we said there were monies to repair, which is what we had moved to. We had brought in the same type of material that was available at the time to take care of the immediate needs. We are looking to repair the whole surface and redo the whole surface. We did make some repairs -- and I'm sorry I should have printed this -- to the patches underneath the swing, which really is not -- although it looks like it's dangerous, in parks maintenance, it's the landing areas that poses more of a risk. And the landing areas of the swing was more of a concern of-- then when they get in. And a comment was made that if a kid drags his foot, it may get caught, and that is true. But I do have pictures, Council member Yukimura, that we did do some repairs, to even the landing area. And this was just done within the last few days. We received some materials that we needed to repair those area, but not enough, but we made some repairs to the particular playground that you have. We do have a playground replacement schedule. Check spellings Ms. Yukimura: You do? Good. Mr. L. Rapozo: We do have it. But, again, that is predicated upon fiscal monies available and prioritizing what we want to do. Ms. Yukimura: So just staying on the Kilauea playground equipment first. Your plans are to change the ground elements, put in different swings, tire swings. And then there was this playgrounds equipment that was quite dangerous that exposed metal edges, and so forth, that has been removed now? Mr. L. Rapozo: Our guys went out there and did not find that. They did find a small area on the steps going up as having some. But as far as metal sticking out, I don't believe they found that there. Ms.Yukimura: Wow, I saw something that could really cut a child or an adult. And maybe that is the one they saw and fixed, you said? Mr. L. Rapozo: No. I said we fixed the ground underneath the swing. Ms.Yukimura: Right. Mr. L. Rapozo: And the playground equipment, from my understanding, is okay. Ms.Yukimura: Okay. So that, I guess, will require a site visit. So basically at Kilauea, your plan is to change the ground element under both the swings and the playground equipment? Mr. L. Rapozo: We want to not change all the elements. We want to add ground elements. There are not enough ground elements for children with ADA capabilities or abilities for them to have enough to do on that particular structure. • April 13, 2012 Parks &Recreation p.46 Ms.Yukimura: Okay. Because I didn't think it was necessarily an ADA issue. I thought... Mr. L. Rapozo: It's not, but in looking at the swing, we could add on some stuff. The basic-the poles and the support beams are still good. Ms.Yukimura: Yeah, I don't think— Mr. L. Rapozo: We can change some... Ms.Yukimura: -- it was the swings. It was what the kids could fall onto if they fell... Mr. L. Rapozo: I mentioned we are looking to change, fix or change the surface on... Ms. Yukimura: And how much is that going to cost, and is that in the budget? Mr. L. Rapozo: I believe we put it in the CIP budget. Ms.Yukimura: Okay. And the other playground equipment, and I don't know where they are all located, but you have a replacement schedule for them as well? Mr. L. Rapozo: Yes. Ms. Yukimura: Can you provide that? Mr. L. Rapozo: Yes. Mr. Kuali`i: I have a question. Ms. Yukimura: Yes, Councilmember Kuali'i? Mr. Kuali`i: Since you are getting very specific, someone brought to my attention that the Omao Park, a playground for little kids, does not have a gate on it, and that road is very heavily used and most people don't follow the speed limit because it is a main artery, if you will.Are there any plans to put a gate on that fence and can we do it? Mr. L. Rapozo: This is not an issue that has been brought to our attention. Mr. Kuali`i: It has? Mr. L. Rapozo: No, it hasn't. Mr. Kuali`i: Okay. But we can - this is new, yes. Maybe we can educate the people to slow down. Mr. Kuali`i: Absolutely. Mr. L. Rapozo: And some more people need to watch their kids, too, at the park. And we can possibly do a gate and fence. Mr. L. Rapozo: A gate will really help because it is right there. April 13, 2012 Parks &Recreation p.47 Ms. Yukimura: Which park is this? Mr. L. Rapozo: Omao Park. Ms.Yukimura: Okay. Thank you. All right. Let us move on then. Mr. L. Rapozo: Okay. Ms.Yukimura: Thank you. Mr. L. Rapozo: This concludes the park maintenance, and now we are moving into golf. So I had mentioned earlier that golf is under the Director Supervision of our Deputy Ian Costa, so I will have him do the golf presentation. Check here Ms.Yukimura: Thank you. IAN COSTA, Deputy Director of Parks &Recreation: Good afternoon, Ian Costa, Deputy Director of Parks and Recreation. I am going to pick up where Lenny left off on page 38, beginning with the golf courses successes. Approximately three and a half acres of existing greens have been successfully converted from Bermunda grass to Seashore Paspalam the last couple of years. Seashore Paspalam is a hardy grass that uses 30s% less water, 40% less fertilizer and 50% less fungicide and no herbicide. I have also been informed that by doing this internally, without any interruption in golf play, we have saved retail value of about $2 million in that conversion. Secondly, the USGA green section has recently done an inspection and review of the Wailua Golf Course and rated its greens the best it has been in 28 years and has concluded that the course is ready to host a major USGA event. They did qualify that by saying that because of the length of the course, that it would likely be limited to women's events. The golf cart concession has been recently successfully awarded and resulted in new, reliable carts for all the users. It's a five-year contract and replaced in excess of the - actually in excess of 5-year-old carts that were used previously. We did install an ATM machine that has been a great convenience for the golfers. And having been chosen best of the best, first place golf course by the community, recognition is extended for the fifth consecutive year. That was for 2011. The award is sponsored by the Midweek Magazine of Star Advertiser. And I just got called yesterday, and we did just get awarded for the sixth straight year first, best of the best. Challenges well, and I did want to mention beginning May - April 30th and through May 3rd we are hosting the State High School Golf Championship. And we'll have all the high schools from around the State attending. Mr. L. Rapozo: Which, Ian, it is the only the State Golf Tournament - Wailua is the only municipal golf course they use. Mr. Costa: They normally only hold it at resort courses. Some of the ongoing challenges, ongoing challenge of minimizing the gap between the golf course revenues and expenses by maximizing golf play by both residents and visitors through green fee proposals and course promotions, providing needed facility upgrades and repairs, which include repairs and upgrades to the water lines, wastewater lines that serve clubhouse facilities, demolition and reconstruction of scoreboard, repair and replacement of the driving range nets, as well as installation or upgrade of the irrigation pump system to add a filtering system, which does not exist currently. Providing securing a successful restaurant concession to provide food and beverage service and amenities for the patrons of Wailua Golf Course. And a number of the repairs that we have listed, including the waste line repairs and replacement, as well as replacement of the windows, are all in the restaurant facility. And we are doing this, starting these immediately, in preparation for going out to rebid for the restaurant concession. Again, pursuit of amendments to golf fee rates April 13, 2012 Parks &Recreation p.48 and the definition of the "Kaua`i resident," to help maximize golf play and simplify the administration for golf fee rates for both residents and non-residents. We have met with Kaua`i Golf Association once and anticipating another meeting with them shortly prior to any introduction of amendments. Development of value-added incentives in golf fee value packages to offer visitors, which can be promoted to the County's Office of Economic Development and the Kaua`i Visitors Bureau. Because the golf rates are set by ordinance, currently, the golf fee ordinance does not allow a break in golf fees that we can then offer the resorts. In a meeting recently with the Visitor's Bureau and economic development, that is one of the critical things that I think has not allowed us to engage in a formal partnership with the resorts to date. So that is another proposal we are - will be running by the Kaua`i Golf Association prior to introduction. Ms.Yukimura: Ian, I am sorry, what was your last point? I was talking to staff because the golf course fees cannot be altered. Mr. Costa: Because the golf course fees are set by ordinance, there is no means within the ordinance or otherwise to allow us to offer discounted rates to resorts so that they pass that on through golf room packages. So we have some ideas that we have introduced to the KGA, and we will meet with them again shorlty prior to us introducing anything to put in the ordinance. Ms.Yukimura: Okay. Mr. Costa: I will skip over improvements. It is a little redundant, the achievements that I just mentioned. Some of the upcoming initiatives: Again, continued partnership with the Royal Coconut Coast Association. To offer golf packages, we did try and work with them. But because we are not able to offer them value-added rates or discounted rates, we really have not capitalized on that partnership. We have yet to begin conversion of the tee boxes to the Seashore Paspalam grass and avoid closure of the golf course to do that, using golf course staff, as we did with the greens. Again, as I mentioned, we will begin renovations to the clubhouse infrastructure, including electrical service, water lines, wastewater lines, restaurant windows, scoreboard, as well as replacing the existing PA system, which is necessary to maintain orderly starting of golfers and notifying them that they are on the tee. Replacement of the driving range net and supports, improvement of cart pass throughout the golf course. These we will be doing using golf course staff as we can. And as I mentioned, also, installation of a filter to the course's irrigation system to increase its reliability and reduce maintenance of having to clean sprinkler heads when they get plugged. Looking at the operating budget of the golf course, salary and wages, an increase of 2.2%. This is mostly - largely attributable to the two dollar-funded positions that we're reinstating, the irrigation specialist, as well as the grounds helper. Also reflected in the increase in the benefits. Utility increase is primarily due to the increase in utility costs, equipment lease, significant increase. We are asking to replace all of equipment: Mowers, carts, which have been deferred for the last four to five years. And we have already exceeded the expected useful life of those equipments. And then a slight decrease in operations. That is primarily due to, again, the conversion to Paspalam, which reduces the use of water and fertilizer fairly significantly right. And when we aerate the greens, our aeration equipment that we use now creates smaller pookas if you will, or tie-ins, therefore, we use less sand and we recycle the sand as well. So that is where that reduction in operation costs comes in. Page 41 basically—I am sorry, the pie chart at the bottom of page 40 reflects what I just covered. Last year's budget and the pie charts on page 41 reflect what I just went over. Following that is a list of our prioritized equipment replacements. And you can see there are a number of them, basically all our mowers and some of the support equipment like the utility carts. Check tie-ins April 13, 2012 Parks &Recreation p.49 Ms. Yukimura: Anything more? Okay. Thank you. Let us see, just as a time check, we are going to go to 1:00. And Lenny, after Ian and the golf course presentation, do you have anything else? Mr. L. Rapozo: I just want to introduce something. Ms. Yukimura: Yeah, I do see you have overtime as your last page. Alright. The Chair is back. We will take questions on the golf course, hear your summary, hear public testimony and then finish by 1:00 is our goal. Mr. L. Rapozo: That is our goal. Ms. Yukimura: Okay. So questions on the golf course? Chair, do you want to take it back now? Chair Furfaro: And before I do, can I ask, have we talked about our strategy for the clubhouse operation? Ms. Yukimura: No, we have not. Chair Furfaro: Since the revenue generated from the clubhouse is an opportunity for us to reduce operating costs because it is offset by revenues, what, in a nutshell, is our timetable and direction in having a successful operation for the clubhouse? Mr. Costa: Are you speaking of the restaurant? Chair Furfaro: The restaurant, because we have four concessionaires there, am I right? We have golf balls, we have carts, we have pro shop and we have restaurant; right? So what is our overall strategy? I mean, we are not trying to make it a dinner house again, I hope, because it should be an amenity that services the golfers. And some pau hana activity at the 19th hole. What is our strategy there? And I do not expect to go through it today. I just want to know, are we close to a strategy, so I should put another agenda item on that we can discuss in The Committee of the Whole. And tied to that, also, is the R&M of the building, like replacing the plumbing and floor. So I just went through with the Finance Director. I am going to keep all of the CIP items on until Thursday because today we got only half a day for Public Works and Monday for Public Works. And we are going to cover the landfill and solid waste and wastewater and all of that. So I am going to keep CIP as posted for all day on the 19th. Will you be able to answer us on the clubhouse as far as having investment plan to get the restaurant back operationally and what do we have to do, replace the floor, replace the plumbing, replace the roof? Mr. Costa: There are a number of items that we are beginning to do improvements. Namely, the big items are replacing the wastewater lines, which are underneath the concrete slabs, replacing the windows of the restaurants, golf course net replacement, clubhouse PA system replacement. We are actually funding all of those through the enhancement fund or 209 account. It is a little over $200,000, so that we can take those improvements on. Chair Furfaro: And that is happening where? In the enhancement fund? Mr. L. Rapozo: The new parks - Parks and Recreation improvement and maintenance revolving fund. Chair Furfaro: And we have that kind of money in there. April 13, 2012 Parks & Recreation p.50 Mr. L. Rapozo: Yes. Chair Furfaro: Okay. Mr. Costa: I asked Lenny to look at funding it so that we would not have to wait for the next budget cycle to begin in the interest of getting to a position where we may again... Chair Furfaro: But if your plan is to go through enhancement fund, then I am going to schedule that as a new item very soon on the regular Council Agenda. I want to see the strategy for the clubhouse. Mr. Costa: So the CIP will reflect very limited amount of projects. There are a few. But we decided to fund those items that was in our best interest to take on quickly and have to deal with sort of sanitary and like safety-type issues. Chair Furfaro: And then you know on Tuesday, I have added a category to the review to talk about revenues. It is not about property taxes, other than the certified roll going forward. It is about all of those other categories that come out on our summary sheet that show us income. And in there is income for concessions as they relate to the golf course, the vendors at Po`ipu and so forth. That will be part of that discussion with Finance on Tuesday. So I will be scheduling, Lenny, an agenda item in the normal process of Council to have a strategic presentation on golf, where we are going with the golf course in general. Mr. L. Rapozo: Okay. Chair Furfaro: Fair enough? Mr. Costa: I do want to say that if you recall last year because of the economic climate, we were experiencing probably recent all-time low in play and, therefore, revenue. That has increased considerably. Chair Furfaro: Okay. Well, I think that there is enough really important questions to ask. And I think you know when I was general manager at Molokai, the golf course also came under my operation, on Maui as well, at Makaha as well, at Princeville as well. So I think we need a good understanding of the strategies being used for the amenities to enhance the golf course. We want to encourage more rounds, but we want the right amenities in place. And we started with simply getting an opportunity to have a cash machine there so people can access money so that they can spend. I mean, if they are going to drive to Kapa'a to get an auto at First Hawaiian Bank, they might as well go to Wailua Pizza Hut and buy a pitcher of beer and not even go back to the golf course. So we want to have those kind of discussions. So that will be an item relatively soon, Lenny? Mr. L. Rapozo: Sure. Chair Furfaro: And I hope we all understand we want to focus on those concessions that we contracts with on Tuesday when we go through the revenue re-forecasting. Mr. L. Rapozo: Okay. Chair Furfaro: That is not directed at property, although we want to deal with this certification. We have all other of channels of revenue that we need to know about April 13, 2012 Parks &Recreation p.51 Ms. Nakamura: Thank you, Ian, for that update. I was glad to hear that the ATM was installed, and that all of the improvements to the greens that make it playable for USGA that is just really terrific, good news. I had a question here, under your "challenges," you talk about needing to upgrade facilities and repair water and wastewater lines, specifically. So I was just wondering what type of repairs are needed? Mr. Costa: With respect to the wastewater lines, that facility was built in the early '60s. The wastewater lines are cast-iron, buried in essentially beach sand. Most of those are corroding and, in some cases, collapsing. So that entails cutting the slabs, taking those pipes out and putting new pipes in.As far as the water lines, that is not so much for the clubhouse as the lines that feed the drinking fountains and restrooms on the course itself. Same reason: Those have corroded over the years and have several leaks here and there that the staff has - sometime it is difficult to identify and isolate because it is sand and it does not pond, but we usually find those out from our water. So those are the two primary, as well as the electrical line. Again, when it was built, it was an underground line that called "a direct bury." They did not use conduits back then. It is a line buried in the sand that is corroding and shorting. And so we are replacing it. Because we have known burials in the area, we are putting in an overhead line to replace that. Ms. Nakamura: And are these the funds to do the improvements in this budget or will be future expenses. Mr. Costa: We have identified those funds in the... Mr. L. Rapozo: Parks and Recreation improvement and maintenance revolving fund. Ms. Nakamura: Okay. Thank you. Ms.Yukimura: For one thing, Chair, I think we need a report on the revolving fund. Chair Furfaro: Yes, I do agree. Ms.Yukimura: Because somehow that is not in the budget. Chair Furfaro: And a pretty substantial number, too. Ms.Yukimura: Yes. And for Ian, on the major repairs being plan, they are due, in fact, to an aging facility that has not been really attended to in a regular way;right? Mr. Costa: Correct. Ms. Yukimura: So is there going to be an assessment of the facilities and a plan, an overall plan, for replacement and repair?It seems we need to do it rather than just reacting to leaks and so forth. I am just asking if there is going to be, based on - I know you have just come onto the job, but there is all of these sort of crises. So to just get ahead of the process somehow and do an overall assessment and work out a repair plan, is any of that in the works or contemplated? Mr. Costa: Yes. We will do that, but I think the next month or two, we are not anticipating contracting out for preparation of bid documents. So we will be doing that in- house over the next month or so. April 13, 2012 Parks &Recreation p.52 Ms.Yukimura: Who is "we are doing those bid documents?" Is that Public Works or Parks? Mr. Costa: Me and (Inaudible). Ms. Yukimura: I mean, because I am not sure having to break up the concrete. If you use trenchless technology, which can go under swimming pools, that might be the way to repair the pipes under the concrete. Mr. Costa: We have to tie-in to existing drain locations, fixture locations. Ms. Yukimura: Anyway, I do not know the specifics but it just sounds like a fairly big job. Mr. Costa: It is, yes. Ms.Yukimura: Okay. And congratulations on the Paspalam, how do you pronounce that? Mr. Costa: Paspalam. Ms. Yukimura: That is a fabulous improvement and you said it is saving $2 million? Mr. Costa: That would be the retail cost to contract that out to replace the greens. Ms.Yukimura: And we have been doing it in-house? Mr. Costa: Right, over the past couple of years. Ms.Yukimura: Well, kudos to Craig and Staff. Mr. Costa: Definitely. The greens are about 97% converted. Ms.Yukimura: Very impressive. Mr. Costa: Much more durable surface. Ms.Yukimura: Yes. And then just lowering all the costs in terms of maintenance and water and herbicide and everything. I mean, that is a stunning example of really resources and good thinking. Chair Furfaro: Congratulations as well because many golf courses that have changed in Hawai`i from 360 Bermuda to this Paspalam. And thanks for being focused on doing the right thing for our golf course. Mr. Costa: It is the hard work of our crew. Chair Furfaro: Yes, duly recognized. Lenny, you wanted to touch on overtime, and I still have to let the public to have an opportunity to speak. April 13, 2012 Parks &Recreation p.53 Mr. L. Rapozo: I want to finish with our summary. Our summary, the Department of Parks and Recreation, we strive to provide quality facilities for the residents and visitors of Kaua`i. It is the department's goal is to provide these facilities in the most efficient and economical means allows while providing great customer service. DOPR's administration continues to work with all various divisions to reduce costs such as overtime, which has been reduced. And in the last budget, utilities, such as electric, was reduced. For you, I wanted to share with you as this graph, for the last four years or into the current year, some of our efforts to reduce overtime. In this business, overtime will occur; it is a given. But when we came on board, we thought we could manage overtime a little bit better. And we have done some policy changes that have addressed that. And aside from the money savings, we need to commend the staff, who have had to adapt to the way we do business in Parks. And we just wanted to bring that out and show that to this Body, this pie chart of the decrease in overtime. And some of this overtime, we have no control of in terms of natural disasters that occur, the latest water/rain events, the latest tsunami events, that we have had, those are out of our control. But other stuff that is within our control, we have diligently looked at possible policy changes and effects and how we can better manage overtime. And the whole staff of the department, I think, is to be commended with our achievement in this regard. The Department of Parks and Recreation and the Department of Public Works with legal representation of the County Attorney continue to work to settle and provide the County with direction on the Endangered Species Act. The County is determined to find a balance with the recreation and cultural needs of our citizens and to be sensitive and mindful to the Island's wildlife. The DOP, our community outreach to provide our young with the opportunity to experience activities and events here on the Island, otherwise not able to participate due to financial constraints. Present events continue to include basketball clinics by Coach Yeogi, who has come to Kaua`i for over 20-plus years to do basketball clinics. Coach Againa and a football clinic by NFL player, or former player, Chad Owens. Some of the future events we hope to make possible for our keiki, we have verbal commitments by Brian Derby to conduct football alignment camps. The Derby camps have produced numerous players who have honed their skills to play college football. Brian has coached in Japan, where he brought his expertise in linemen play worldwide. He is also partnering up with... and this meetings that I had as of yesterday, with the Hawai`i Athletes in Action, which is Auhna Toa Soapo, who is a homegrown product and UH product and also NFL product, who will be coming with Brian. And what Auhna brings is a combine. A date for this is June 15-17 at our own Vidinha Stadium. They will focus on kids from 8 years old and above. And what the combine does—I am sorry, let me take a step back. What Brian does is he teaches the art of being a linemen and bettering your skills as a linemen in football. And what Auhna will do in a combine is that they will put these athletes into different tests and record them. And as these athletes, we intend to have the combines come back. And as these athletes participate in these combines, their tracking will show a progression, hopefully, of these athletes as they get better. Or if they are not getting better, look at why. But it also the combine provides our parents of these athletes an opportunity to hear and educate themselves as to what is required to be a college athlete or to get our kids into college by bettering their scores education-wise and SAT-wise. It is just our way of reaching out. We also have a commitment by the UH Women's Soccer Team that is going to be here June 9-10, where they will be doing clinics for all our soccer players here on the Island. On the 10th — I am sorry, June 9th, they will have the clinic. On June 10th, they will have a session for anybody who wants to play soccer at the college level. You will have college coaches here to evaluate you and tell you whether or not you have the right stuff or what you need to improve on to get to the next level. We also have spoke with Bob Campbell, who is a major league hitting instructor to provide hitting clinics for our future baseball players. We also had discussion with the rodeo community to probably have a professional rodeo competitor to come to Kauai to provide clinics for our rodeo kids who - has become very popular. As we move forward with the development of skateparks, one in Lihu`e and Hanapepe, are in the works. And the Department of Parks and Recreation has spoken to April 13, 2012 Parks &Recreation p.54 representatives of Danny Wig, who has been characterized as the Michael Jordan of skateboarding, to coordinate a clinic and to help us design and construct these facilities in partnership, which includes funding as well as design. With all that we have accomplished, and with all that we, as the Department of Parks and Recreation, hope to accomplish in the future, the Department recognizes that we cannot make them a reality without the collaboration and partnership of the Kaua`i County Council, the community organizations, the community volunteers, and all of our hard-working employees of the department. To end, the result is the benefits that the residents and visitors of Kaua`i will receive by the hard work that we hope to accomplish and we intend to provide this community. Thank you very much for the opportunity for this presentation. Ms. Yukimura: Thank you very much for the summary and for all the ways for bringing these athletes over to help our young people reach and stretch for their success. Just on the overtime and congratulations on that, too your graph is that monetary amounts that we are saving? Mr. L. Rapozo: Yes. Ms.Yukimura: So we have saved $100,000? Mr. L. Rapozo: Yes. I am sorry. This is overtime that we were spending. These are amounts that we had paid out. Ms.Yukimura: Overtime hours? Mr. L. Rapozo: No, money. Ms.Yukimura: It is money, right? So it's gone from $180,000 in 2009 to $80,000 or 78... Mr. L. Rapozo: A little over $80,000 currently, but the fiscal year has not been... we are not.,. Ms.Yukimura: So I do not want a lot of detail but what kind of changes in the policies have you made? Mr. L. Rapozo: We look at, for instance, stadium at the event itself. In the past our people at the stadium would stay no matter what type of event was there. They would be there at the facility. You go to certain events, the facility is open, but there is hardly anybody in the stands. And our determination, in my opinion, was not really needed. As opposed to having KIF football with thousands of people over there, then we need staff on-hand in case something comes up. And anything can come up when you have a lot people around. Just those different -- those simple things has saved us a lot of overtime. In looking at some other places was on weekend services, if we lowered the minimum requirements to deliver the services. So if we have an 8-hour guy, and we anticipate him not being there, can we get away with, instead of the 8-hour guy, who part of his responsibility is to weedwhack on the weekend and get him, this person, to come in and cover mainly clean the bathrooms, empty the rubbish cans, and we are going to be okay. So we looked at that as possible doing that. And those things that are management's prerogative, when it comes to that, and we have used that to reduce and try to help in our overtime situation. We are just trying to manage our budget a bit better. April 13, 2012 Parks &Recreation p.55 Ms. Yukimura: I think that is what we are looking for: Better management. And it can result when you do it like you are showing. It can result in overtime reductions. Mr. L. Rapozo: I'm not sure when we are going to hit that plateau where we cannot reduce it anymore. Because as I said, in this business overtime is inevitable. And I want to pay overtime when we need to provide the service. Ms.Yukimura: Right. I think that is a really good distinction. We want to pay overtime where it is due, but where we do not need it, we want to manage it so that it is not wasting taxpayers' money, basically. Mr. L. Rapozo: Yes. Ms.Yukimura: Okay. Excellent. Thank you very much. Mr. Kuali`i: Thank you, Mr. Chair. Just one quick last thing that I might have missed. And I think Vice Chair Yukimura asked for the job description of the park rangers, and I would be interested in that, too. The park ranger is the park security officer? Mr. L. Rapozo: Correct. Mr. Kuali`i: In the fiscal division budget, I see the five positions. Five existing positions, four are filled, and one is currently hiring, pending interviews. So that would be five. And then there is a Parks Security Officer II and that is the supervisor? Mr. L. Rapozo: Yes. Mr. Kuali`i: And also park ranger? Mr. L. Rapozo: Yes. He is the working supervisor out in the field. Mr. Kuali`i: And the last thing is so the three new park security officers start April 1st. That is April 1st, 2013; correct? Mr. L. Rapozo: Correct. Mr. Kuali`i: So ten months into the fiscal year? Mr. L. Rapozo: Yes. Mr. Kuali'i: Is that because that is when you anticipate opening the Lydgate Campgrounds? Mr. L. Rapozo: No. Mr. Kuali`i: Why did you pick that time? Mr. L. Rapozo: That's because of recent experiences in hiring the Body. And also there was some other fiscal needs that we needed to meet by Finance. So we moved the date for that funding to April 1st. Mr. Kuali'i: Nine months in. So when do you anticipate opening the Lydgate Park Campgrounds? April 13, 2012 Parks &Recreation p.56 Mr. L. Rapozo: The rules were done. We had the public hearing. It's going around for signatures right now. And hopefully by the end of the month, we'll be ready to go. Mr. Kuali`i: And, in fact, the park as it is now without the campgrounds open, is already being patroled by the existing park rangers. They spread themselves all over the Island. Mr. L. Rapozo: Correct. Mr. Kuali`i: When the campgrounds open, you are saying there will be more need for more park rangers too? Mr. L. Rapozo: Yes. Mr. Kuali`i: The last thing is I noticed something in Recreation, a line item, and it is just$7500, but it is for physicals, drug testing, and background checks. Mr. L. Rapozo: Yes. Mr. Kuali`i: Do we use any of that money for drug testing? Mr. L. Rapozo: Yes, it's mostly for the summer hires. Mr. Kuali`i: Summer hires. Mr. L. Rapozo: Yes. Mr. Kuali`i: Okay. Thank you. Thank you, Chair. Chair Furfaro: Okay. I am going to finish with a few comments myself, Lenny. First of all, thank you very much for all the great work. I do want to point out to you that some of these savings as well, though, is you focused on better use of the resources that you have had. That is a big thing and oversight of management, that perhaps some of the resources were underused in the past. So thank you for that. No. 2, when we look at overtime at first blush, we always look at that time and a half as the expense. But the reality is that if the work is done based on shortage of staff and so forth, we would have had the straight time pay realized anyway. So it is only the halftime or premium part that is really giving us exposure. And with the numbers that I have seen, you are to be complimented with your entire staff. I think you did us a great justice here in the wa y y ou presented your overall department. And I want to th ank everybody that is here today that contributed to that. We do need to have a separate discussion about the resource. And the resource I'm talking about is the Wailua Golf Course, because it is a very big plus. But to everyone, from the campsites to the convention facilities, to the permitting, to interaction with our youth and our seniors,job well done. Thank you. Chair Furfaro: Thank you very much. Mr. L. Rapozo: Thank you. On behalf of our department, thank you. Chair Furfaro: We are going to open up for some public comment on Parks. Glen, you can have the floor now. And then we are going to break for lunch. So watch for a posting on the Wailua Golf Course. April 13, 2012 Parks &Recreation p.57 GLENN MICKENS: I thank Lenny for a fine presentation and for Chair Furfaro's efficient manner in running all of these budget hearings. Please let me read my testimony that you have a copy of for the viewing public. I have addressed these issues before but never got definitive answers. When we had so many problems with camping in Lydgate Park 20 years, why are we insisting on repeating what turned out to be a huge mistake? Drugs and a murder closed it then, and with crystal meth and other drugs being far larger problems today than they were then, with KPD being understaffed and using their officers to look after prioritized issues and not being able to oversee these campgrounds and with few park rangers to rely on for help, why the need to create the same problems again? The caretakers at the park have enough to do now with 10 bathrooms, that is men's and women's, to maintain numerous pavilions to look after, new soccer fields to maintain. And what is an update? And Lenny gave that update. I have got it here in his PowerPoint. On the irrigation system installed in this soccer field where it is never been used in soccer fields before, athletic fields or golf courses. JoAnn remembers this, we talked about it. When was that? Three years ago or four years ago?When was the soccer field opened?I think Jay was here and JoAnn. Chair Furfaro: If it was in the last ten years, he was here. Mr. Mickens: Okay. You were here. But I do not think the other two members were here. Mel, may have been here too. The Kamalani Bridge where drinking takes place each weekend, and our crew has to clean it up. And acres of land to cut and weed whack along the bike path. And if I may refer to Lenny's PowerPoint here. Briefly he says, "Over the past four years irrigation system has slowly been degrading due to lack of maintenance." Due to lack of maintenance? Then who was supposed to be looking after it? Remember, JoAnn, I made the point pp g p those drip irrigation systems take much more maintenance than pops-up? If those orifices plug up, you do not know it until the grass is dead up above it. And you have to keep on back flushing those systems out in order for them to work. And I know that our workers don't have the expertise to be able to do it, so it had to be the people that did it. It obviously did not happen. Remember when we sat here and talked about how it is going to costm what did that system cost? $200,000 or 150,000, $200,000. And I said, "JoAnn if we put that system in, we are going to come right back and replace it. It's going to cost us double to put another irrigation system into place." So now, obviously this has happened. Lenny says the main control panel in the pump station has not been serviced and cleaned for over three years. The irrigation system has started to show signs of mismanagement and degrading. At this time the irrigation is below substandard. Who is in charge of those places to see that we have maintenance going on then?Why did we allow this to happen? But we did and now it's going to cost us a total of probably $400,000 to put in another irrigation system. If these campgrounds are open, are two more workers being hired to look at them as was asked at a previous Council meeting? I think Lenny did address that. And what about the bathrooms that were such a hot-button issue. And what are the workers doing such a fine job have the proper equipment to properly maintain the park, their own equipment at the park when they need it? And I think the equipment thing says it's in their budget also, which is very good. When are we going get a beach cleaning machine like they have in Honolulu and on the mainland beaches to keep the sand clean and free of debris that can injure the bathers and our keiki, and when we are going to make sure that debris that fills Morgan Pond after every heavy rain is removed in days or two and not in weeks? Or that the problem with the toxic waste flowing into the pond and other areas of the parks, to close it, get fixed permanently. Five, our parks and recreation facilities are not world-class and they badly need attention as your 2012 Kaua`i Council goals that you just passed out, said in 1-B2, "improve maintenance standards," and obviously we're not getting that done. And lastly, when are we going to hire enough workers to properly maintain Kapa'a New Park? We have two full-time workers there now. Lenny said three, but I don't think there are three all the time down there. And there is no way they can probably look after two baseball, one softball field, the pavilion, a skateboard facility, an in-line skating facility, a football field with lights and stands, batting cages and take care of the grass in that area. And who made the decision to put crushed rock mix on the intermediate baseball field? No baseball field should ever use any material on their home plate area, April 13, 2012 Parks & Recreation p.58 the base pass, and the infield except a mixture of clay and sand. On the mainland that call that Dodger dirt. The Dodgers use red clay on the plate and on the mounds. But this is—pure clay is very hard to maintain. You have to keep it damp and it is a job. So they can't do it. But you are fortunate here in Kaua'I, you have red dirt as part of your soil. We used to have to go out and buy the stuff at a brick place to put in the mounds at UCLA, but you're lucky you have it here in the soils. But you do not put crushed rock on an infield or anything. Kids sliding on it are going to tear themselves up. I just wonder, who had the -- who pushed the button to say, "Let us put this crushed rock on the infield"? We obviously need supervisors with the expertise to know what has to be done in the maintenance of these facilities. It will be interesting to see how many of these projects will be completed with labor positions filled and proper maintenance implemented as your item 1-B2 in the 2012 goal says, "Improve maintenance standards." Hopefully continual updates will be given so we don't have to sit here at budget time next year to see if these things take place. It's going to take a lot of money. I think that this budget that they have is—we were talking about those—where is that in the CIP budget, like locker room facilities in Kapa'a New Park? I haven't seen anything started yet, but I know that is not going to be cheap to build that. But, again, each one of these things, Jay, as you well know, in the hotel business all of your life, every one of these things will take money and maintenance to take care of them, not just get the money to build them, but it's going to take a lot of money to maintain them and properly maintain. But it's going to take people to be able to do it. But anyway, this is basically my testimony. And, again, like you said, the overtime issue that they addressed that is money in the public's pocket, and I am glad to see that happen. Chair Furfaro: Glenn, I am going to respond to just a few of your questions here. I thank you for recognizing that because, as I said, it seems like the first step was for them to perhaps tighten up some of the resources. Now they can make an evaluation of the types of grades that they want to keep in the particular parks. Your repair and maintenance comments about the sprinkler systems are very true. We need to move on to identifying R &M a little closer on a regular basis. This small equipment list that has been submitted in the Mayor's budget, having a common repair and maintenance, and then using some maintenance and repair people that are already in the budget at a central location should help to expedite that. But I just want to let you know that your comments are very well-received. I think they are starting out in grading some of these parks. And although the question was asked after the Council's workshop, our piece on goals and outcomes that we talked about, some of the goals for the Parks Department was not sent directly to Lenny, but it was shared with the administration. So maybe it is taking some time to filter down. Mr. Mickens: It is excellent, and I do hope a copy goes to Lenny, and I hope they can abide by it, because I think you have gone over some things here that I do not think were addressed. Chair Furfaro: I know that that was delivered to the administration as the vision from the Council. And maybe it is just getting down to the department heads. Thank you for your comments. Mr. Mickens: Thank you again, Jay, for your — I have said it before, but from the public standpoint, after sitting in this chair for 18 years or so, I have never had the courtesy that you extend to the public for — seeing that we have time to be able to talk, and it is really refreshing to see it. So anyway, thank you, Jay. Chair Furfaro: Thank you. And we have to remember it is all our island. On that note, we are going to recess for lunch, and we won't be back—Yes? Ms.Yukimura: I just want to say one thing to follow-up on what Glen has said. The issue about irrigation just brings up how important planning and design of the facilities. April 13, 2012 Parks &Recreation p.59 A lot of maintenance problems can be avoided by proper design. That is why I want to signal to Parks that I hope you pay a lot of attention to that in the design of the facilities. Thank you. Chair Furfaro: Yes. I think that is a good point. There's two parts of this. General Motors makes Cadillac's, they make Buicks, they then make Oldsmobile - maybe not anymore, Pontiac and then Chevrolets. So there's different grades on this thing. But the R & M part, that's all so important for remembering is they all take oil in the engine so we got to keep things operating that way. So thank you. And on that notes, we're going to come back at 10 minutes — 15 minutes past 2:00, and we will start with a presentation by Ernie, for 15 minutes.And we are in recess for lunch now. There being no objections, the meeting was recessed at 1:10 p.m. April 13, 2012 Public Works (Operating& CIP)p.1 The departmental budget reviews reconvened on April 13, 2012 at 2:21 p.m., and proceeded as follows: Councilmember Kuali`i(present 2:24 p.m.) Councilmember Nakamura (present 2:23p.m.) EXCUSED: Councilmember Bynum Councilmember Rapozo PUBLIC WORKS (OPERATING & CIP): Chair Furfaro: I am going to ask Mr. Barreira to clarify some of those particular budget submittals that dealt with staffing levels. Mr. Barreira: Good afternoon, Chair and members of the Council, Ernie Barreira, Budget and Purchasing Director. Pursuant to the Council's request, we will be clarifying this afternoon the positions that were submitted in the March submittal in terms of the dollar funded positions and those that were incorrectly transmitted with regard to new positions. I think rather than going into a very in cumbersome discussion, if you look at the email that was sent to this Council on April 3 and I will speak to that issue this afternoon. That is the most comprehensive review of the issue and I think it will end clarification in terms of what has been submitted in our budget presentation. On April 11, I sent a follow up communication to the Council through the various staff members of Council in terms of some work that our budget analyst had put together to clarify not only the dollar funded positions that came into the March submittal but also all dollar funded positions in the Council and I do not want to into that detail here since that is not the charge but that information is available once again on the April 11 email with several attachments to include Chair, the original transmittal that you sent to us in terms of your understanding of which positions were dollar funded. Our budget analyst worked hard and did get a response out and we did since respond. Chair Furfaro: Much appreciated. Mr. Barreira: You are welcome sir. In terms of the dollar funded positions that should have come in the March transmittal and which I have since clarified. We should have accurately documented fifteen dollar funded positions in the March submittal which was based on the vitally needed services to return our services to the community. Only twelve of those were accurately reflected the FY 2013 operating budget that was submitted on March 15 and these follows: 1) was a records management analyst which is a proposed re-description of a land use (inaudible) position number 2031 which is a Planning Department position. The two identification technicians who are proposed re-descriptions of both a secretary and records clerk from the Police Department position numbers 345 and 342 respectively. A human resources assistant which is a proposed re-description of a senior clerk position number 702 from Fire. A plumber position 1532 which comes from Public Works Building Maintenance. A repair shop supervisor which was position number 897 from Public Works Automotive. A mechanics helper which is a proposed re-description of a labor working supervisor from the Highway Fund Hanalei base yard position number 955. A half time grounds helper which is position number 1986 from the Golf Fund. A sprinkler repair worker position number 900 also from Golf and the tenth position is a permit clerk which is a proposed re-description of a grant specialist 3 position number 1946 from Parks the planning and development division. An irrigation technician which is a proposed re-description of truck driver position number 1345 from Parks beautification which we just discussed this afternoon. The twelve position is a procurement and specification specialist 1 which is a proposed re-description of the special projects officer position number 1547 in Finance administration. Those were the twelve positions that were accurately conveyed as dollar funded in the March submittal. The other three April 13, 2012 Public Works (Operating & CIP)p.2 which were also accurately included but required some kind of clarification are as follows, the first was a superintendent of highway construction position number 827 in Public Works highways administration. In this particular position it was reflected that — the intent of the Mayor was that this position be transferred to Public Works Solid Waste division and re-described as a waste diversion program advisor and we intend to clarify this correction in our May submittal. The second position was a HCNM supervisor position number 835 in Public Works Highways Hanapepe, this position is included in the March submittal and is re-described as a waste diversion program advisor. This position however should have remained in its current classification with the Highways division with funding resorted for an eighth month period. And finally, the third which would make our fifteenth dollar funded position which required clarification was the law clerk position number E71 from the Office of the County Attorney, this position was incorrectly included in the Office of the County Attorney FY 13 March submittal as their dollar funded law clerk. It should have been reflected as a proposed re-describe deputy county attorney representing fifty percent funding. The position is intended to serve as a liquor department deputy county attorney with the balance of a fifty percent funding to be supported through the liquor fund. The fifty percent also applies to the fringe benefits. In addition to the errors that I have just noted, there were eight additional positions that were incorrectly included in our March submittal. These should not have occurred as it was the Administrations intent to only advance designated dollar funded positions as noted earlier in my presentation and in the Mayor's budget message which accompanied the March submittal. These are the incorrect eight positions that should not be in the March submittal: three parks security officers, one permit clerk also from Parks, an engineering aid from Public Works engineering, a waste water treatment plant operator assistant from Public Works waste water, a sewer maintenance helper from Public Works waste water, and an economic development technician from our Office of Economic Development. Once again, I extend to the Council our apologies for these inadvertent submissions in the budget. We will clarify and correct these errors in our May submission to the Council. Chair Furfaro: Thank you very much. Again, I think that is a May 3 submittal? Mr. Barreira: May 8 submittal. Chair Furfaro: At that time what you have just read to us in the narrative we should be able to follow specifically in the resubmittal? Mr. Barreira: Yes. Chair Furfaro: Any questions? Ms. Nakamura: With the fifteen dollar funded and then the eighth that got slipped in inadvertently that was twenty-three positions, is that correct? Mr. Barreira: Yes. Ms. Nakamura: Of the eight, we have heard this morning that four of them may be including in the May submittal? Mr. Barreira: That is yet to be determined the budget team will review those and the Mayor will have to make the determination. Ms. Nakamura: So, none of that is set at this time? Of the eight, you do not know which one? April 13, 2012 Public Works (Operating & CIP)p.3 Mr. Barreira: For the sake of the March submittal, those should not be in existence. Ms. Nakamura: Thank you. Mr. Kuali`i: I am sorry because I walked in a couple minutes late, the handout is the April 11 email with several different spreadsheets attached? Mr. Barreira: The simplest read is the April 3 email which is what I am referencing in my presentation this afternoon. Mr. Kuali`i: Because I was trying to follow it that way and I was... Mr. Barreira: I would be happy to hand it off to you temporally if you would like to look at it. Mr. Kuali`i: I got the April 3 one. Mr. Barreira: It is also in the April 11 transmittal, I did include that as well as a repeat submission. Mr. Kuali`i: So that is the initial twelve positions and then the second list of the eight positions? Mr. Barreira: Actually it is twelve that are accurately submitted in the budget, three that are incorrectly but were not allocated properly in terms of our intent on the re- description. Mr. Kuali`i: The three that are incorrectly, what are they again and how will they be corrected? Mr. Barreira: Once again, the first position if the superintendent of Highway construction and that is position number 827 in Public highways administration. It was the intent of our Mayor that this position be transferred to Public Works solid waste division and re- described as a waste diversion program advisor and that is what we will submit in the May submission. The second one... and I apologize, perhaps Mr. Tabata can... HC&M... Chair Furfaro: We wanted to get a definition of an abbreviation. Mr. Barreira: Highways, Construction and Maintenance? Mr. Tabata: Yes. Mr. Barreira: Highways, Construction and Maintenance supervisor position number 835 which is in Public Works highways in Hanapepe. The position in the March submittal is described as a Waste Division Program Advisory, that should have remained in its current classification within the highway division with funding restored and all of these dollar funded positions came in as a recommendation for eight months of funding. Once again based on the time it will take to recruit. The third position was the law clerk position number E71 in the Office of the County Attorney, this position was incorrectly included in our March submittal as a dollar funded law clerk position, it should have been reflected as a proposed re-described deputy county attorney at fifty percent funding. The position is intended to serve as a liquor department deputy county April 13, 2012 Public Works (Operating & CIP)p.4 attorney with the balance of fifty percent funding to be supported thru the liquor fund and those were the three. Mr. Kuali`i: Now I understand because I am looking at it. The only other thing is now these other eight positions, we just was talking with Parks and Recreation earlier today and I asked about the three park security officers and why they were started in April 1, 2013, which seem to be nine months, ten months into the fiscal year and why would it not just start the following fiscal year? Are you telling me that that is in there by mistake and that is coming out? Mr. Barreira: My testimony is that those eight should never have been in the March submittal. Whether they are going to appear in the May submittal is yet to be determined. Mr. Kuali`i: Should never have been in the March submittal? Mr. Barreira: Yes. Mr. Kuali`i: Should never have been in the March submittal? Mr. Barreira: Yes. Mr. Kuali`i: Thank you very much. Chair Furfaro: Thank you very much for taking the time to have us reconcile some of these staffing guides and I am going to go ahead and excuse you and we will look forward for the corrections in the May 8 submittal. These items in Engineering and Public Works is going to be as follows, we got a half a day focused on Public Works and Engineering and a full day on Monday and then on Thursday, we are doing CIP. I want to make sure we have a mutual understanding that as we go thru operational issues over the next two periods of time, that some of these lead supervisors are going to be available to us such as Donald Fujimoto, etc., am I correct Mr. Dill? Let the record show that he is acknowledging yes. Before I call up Lyle because this is a two day process, we have someone who wants to give public testimony now on operating issues for Public Works. I am going to have to excuse you from the piece. Seems to be some other pressing business this afternoon, coming across of the NBA schedule. GLENN MICKENS: One of the biggest questions I need answered is do we have enough worker? I mean in the trench workers to properly look after the area from Puhi to Anahola. Reliable sources have told me that there are 19 Indians, not chiefs in Kapa'a base yard to do whatever is needed in that total area. When Larry Tavis was in charge of our roads I understand y g a d that he had 50 workers in this same base yard to cover that area. I had the greatest respect for Larry and for the way he and his crew did their jobs. Obviously if Larry had almost 3 times as many workers to take care of that area as Larry Dill now has it is understandable that he could do the job better. Thus the question arises as to why we do not have more workers when our Mayor can fill 18 new positions and none of them are for these needed workers. If my information is wrong please tell me why we are struggling to keep Kaua`i beautiful. I walk a 4 mile area in Hauiki meadows each day and have seen our workers using cane knives to cut overhanging trees from our roads. I have seen them using extension chain saws to reach tree branches whereas I see private tree trimmers using hydraulic bucket lifts to do the same job in less time using less man hours. So why do we not have proper equipment and efficient man power to do the jobs right? April 13, 2012 Public Works (Operating & CIP)p.5 I will try not to be too repetitive and go into my 18 year roads repaving crusade. But this Council approved our roads resurfacing list months ago and I have still not seen any repaving going on. And, again why have we accumulated $8.8 million dollars, a number given in the Garden Island in this repaving schedule while not doing any resurfacing for the last 3 years whereas, in the past, the County on a yearly basis approved about $2 million dollars for repaving and it was used. I am happy to see the bid contract given to Glover and Grace Pacific now using 1 ton of AC per 108 square feet and not the 1 ton per 90 square feet as used in the past to give us the 1 %2 inch of finished grade. And I am happy to see whenever the work begins... Larry now using HAPI standards to repave our roads. It will save our tax payers a lot of money. Hauiki road about a 2 mile long road that is not a major thoroughfare was repaved in December of 2008. Again, I walk this road on a daily basis and find sections that are cracking and edges of shoulders that have fallen off due to the easement areas not being graded or backfilled to the level of the road. I have brought this issue up before and though Public Works has done some backfilling along portions of the roads there are many areas such as Hauiki, Kainahola and others that still need backfilling. And, again it appears that lack of manpower is the problem. Upper Waipouli road is a total disaster and though our Public Works crew work on shoulders and sections of it all the time, we should not be wasting our manpower, material and equipment on doing this, either we complete repave this road, it is 13 feet wide and completely needs repaving, or leave the minor part of it like it is. There is one section of it that has 7 or 8 pot holes in it that have had cold mix dumped in it 30 or 40 times since I moved to Kaua`i 22 years ago. This cold mix just washes out with the rains a total waste of our money. Again, either repave the whole 1 mile long road or stop doing pieces of it that do no long term good. As Ken Stokes article once pointed out Kaua`i has the worst roads in the state and we have to overhaul the system and address this problem. When we can spend hundreds of thousands of dollars on positions that the Mayor has given to a few and leave the drivers of this island with badly paved road, then something is very wrong. When are we going to make alternate roads on Kauai a priority paving our can haul roads? Haven't these storms that shut down the Kapa'a by pass road and the Koloko dam break that stopped traffic flow on Kuhi`o Highway been messages enough to tell us to do this? When traffic accidents, or road work can make our highways a parking lot isn't it way past time to get other roads opened? We have spent years and a potential $105 million dollars working on a multi use path that is not even on the same radar screen as more by pass roads so where is the leadership in this government? Chair Furfaro: Glenn, let me ask you here when it comes to road side maintenance, I read this as you would be supportive of us acquiring a truck with hydraulic bucket lift? Mr. Mickens: Yes. I understand from one of my sources that they do have one on the island but I think they need a lot more. Chair Furfaro: I want to make sure, you are talking about a hydraulic lift that has a man in it with a chain saw? Mr. Mickens: Yes. Chair Furfaro: Or a lift that only has a chain saw on the end of it and you guide it from down on the ground? April 13, 2012 Public Works (Operating & CIP)p.6 Mr. Mickens: I have watched those guys cut it but they have chain saw as part of the lift, you may be right the guy at the bottom may control it, I am not sure. Chair Furfaro: I think Larry folks, I do not think they let their roads projects until May, when it gets a little dryer but I will ask that question when we get into the Roads section with Larry. But I think their cycle is... they do not do the work in the first quarter when it is wet. Mr. Mickens: I am sure that Larry is still waiting to find out whether there connector road like Olohena that we talked about so many times... whether it is or it is not a connector road because if it is a connector road, you will get federal funds where... but federal or state does give some money to all our roads? We do get some money from those don't we? Chair Furfaro: We do get some. Mr. Mickens: Very little, okay. Chair Furfaro: The last item is talking about roads, were you looking for some speed signs at one time for parts of Olohena? Mr. Mickens: Basically over there by Thronas Rentals the turn... there is water under the road and that water has to be drained off before they go ahead and repave over the top of that. Chair Furfaro: I think the one that is (inaudible) speed control is Lawa`i down in front of the condominiums and surfing areas, I think there was a long time request made by resolution by this County that we have no fulfilled getting those... speed signs up. But you are right your previous one dealt with the water settling there. Mr. Mickens: I think it is a spring, I do not think it has anything to do with the water department. Some people said there might be a water line, are you familiar with that? Chair Furfaro: It could be a spring under the road. Mr. Mickens: Unless you drain it off, it is going to keep coming up no matter what you do to pave the road over. Chair Furfaro: Any body else has any questions for Mr. Mickens? Let us start with Public Works and I will let you set the tone of who is coming up when Larry. We are going to have two days of it and I would like to get thru this operational part today by 4:30. Mr. Dill: You have our budget presentation before you and we are have also provided you with the PowerPoint slides that we would like to go through. We will start off by giving an overview of the Department of Public Works and then we will call up division by division to discuss specifically to their various operations. I am going to start off with an apology Mr. Barreira gave a presentation just before us regarding staffing and so our presentation was done upon the budget that we were provided, so it is not consistent with what Ernie just mentioned to you. We will address that case by case as it goes with our presentation. Starting off with our mission — The Department of Public Works mission is to deliver excellent service to our constituents, and support the health and safety of their communities, with sustainable services and solutions. Talking about some events from FY 2012 we do the best we can to look for other funding sources simply then our County general fund to achieve our goals and take April 13, 2012 Public Works (Operating & CIP)p.7 care of the infrastructure. We did through the efforts of various folks in Public Works including our fiscal officers and our various divisions recover approximately 9.3 million dollars in federal grant reimbursement funding and leveraged County CIP funds in various construction projects. Utilized 3.0 million dollars in low cost state revolving fund financing for infrastructure improvements that refers specifically to our waste water project that is the Department of Health State revolving fund. It gives us an opportunity for funding, I think the interest rate is three quarters of a percent, so good way to use our money. Solicited several presentations from Capital improvement program management software vendors to support development of a RFP for FY 2013. FY 2013 generally the Public Works, we seek to support the objectives of the six divisions within the Department, ensuring manpower, equipment and materials needs are met adequately in order to meet the overall Goals of Public Works. Implement Objectives of Public Works in order to meet the Goals of the Mayor, including Holo Holo 2020. Ensure the health, safety and welfare of the public. Implement systems that will serve to reduce complaints and emergencies which will allow us to focus on proactive activities. We do receive a lot of complaints that we need to respond to and do the best to respond as quickly as we can to the community. Obviously that takes away from our day to day activities so we are working to set up preventive maintenance management systems whereby we can begin to eat away at that and focus our efforts to being proactive rather than reactive. Some of our challenges for 2013 is planning for future improvements while continuing to meet the day to day needs and demands of the community. Utilizing funds in the most efficient manner while maintaining satisfactory levels of service. Succession planning, since we are talking about Public Works Administration that includes our fiscal division as we as our personnel division helping the administration office a significant transition that we are looking at in fiscal year 2013 is the retirement of our fiscal officer. Unfortunately, our fiscal office has been proactive in planning for that event and has been grooming his next in command for takeover, so we are confident that that this happening smoothly and will happen smoothly. We work hard with our union partners obviously the UPW and the HGEA both play a significant role in our efforts, so we have many things that we have to deal with them on and we work hard to maintain a positive working relationship with them as we move forward to achieve our mutual goals. Expediting the regulatory review process, I think our building permit actually has made some strides in that area and we are also working with our engineering division. The chief of our engineering division who is on vacation at the moment is the gentleman with most of the experience, expertise and industrial knowledge in that regard. We are working with him to see that he passes it on to the folks of the regulatory review section to make that process more effective and ultimately to plan for the transition and succession planning that will be happening in that regard sometime. Ms.Yukimura: Larry, who is that? Mr. Dill: Wally Kudo. Our fiscal officer is Mr. Cling Saiki. Ms.Yukimura: Okay. Mr. Dill: As I mentioned we spent a lot of time in FY 2012 looking for the right solution or planning for the right solution for our CIP management software, so FY 2013 we will be moving forward in assessing the CIP program actually in RFP mode to make that happen to implement. Our employees have a clear understanding of roles and responsibility in reorganizations with reference to the Engineering Division where we set up specific sections for project development, others for regulatory review. I am going to run now through the various divisions and some specific objectives and initiatives to address those objectives. I am going to go through them here in a fairly broad brush format.As we get to the Divisions, you will see us address these in particular. Feel free to ask questions of course but we will invest them in more detail when we get to the divisions. For the Engineering Division as I mentioned before, we are looking to ensure that the transfer of regulatory review for subdivision, grading, and flood are maximized so we are April 13, 2012 Public Works (Operating & CIP)p.8 continuing the process to move those responsibilities to the regulatory review section to free up the chief of the division to spend more time to actively managing the division as opposed to doing the regulatory review himself and he will spend more time training and setting up protocols for... seeing that processes are moved down the chain of command to make that more efficient. We are working to ensure manpower and training to rebuild the design capabilities of the division. We do a little bit of in house, we would like to do more on that and so both on as I mentioned the regulatory and project management side, we look to see more of that in house for some of the more straight forward projects that are not too time consuming. To support that effort when you get to the engineering division you will see that we talked about an engineering aid because I mentioned that it is not consistent with what Mr. Barreira spoke about earlier so I was lost over that. We have done some additional training for our staff that we will be talking about when we get to the specific division review and also we got some project funded staff there that we are using to help us with projects. We also done some training this year for project inspection which allows us to certify the inspections of federal highway projects to help to empower our staff to do more. Objective number four (4) is a completion of the transition to a CIP management softeware solution and as I mentioned a lot of work has been done in regards to repairing the RFP requesting funding for this body to do that next fiscal year and hope to move forward with that. Objective number five the complete streets resolution thanks to the resolution that was adopted by this body, actually I will give the credit to our Deputy County Engineer Lyle who is has been spearheading the effort whereby we have been working to create a complete streets manual, we have engineering designs manuals now which we use to guide us in reviewing and approving projects. We need a complete streets manual to put things in a form that our engineers can use as a guideline but also those who are doing the projects out there can use as well. We are basing the after much review on County manual and so we are beginning with that project, we have got Housing Agency, Transportation, Planning and Public Works involved in regular meetings to review the meetings to review the manual and revise it, edit it to meet our needs and again Lyle is meeting that effort and so engineering is a big part of the effort to adopt...putting complete streets into practice. Safe routes to school is in somewhat a related effort that we are also working on. Again, our deputy County Engineer Lyle is deeply involved in this having visited every Elementary School on Kaua`i and visited with the Principles and look at address their needs so that mainly their school children has opportunities to work safely to get from their homes to their neighborhoods to their schools. That is a significant effort. Our Building Division, of course we need to ensure that code enforce continues to meet the needs of the public. We continue to develop qualify personnel by recruitment and/or training in house. One of their big initiatives this year that goes on this week's Council agenda was the adoption of the 2006 International Building and Residential Codes and also the building division is supporting the implementation of e-plan review system presently in process. It will make us much more efficient in reviewing our building permit applications as well as save us a lot of paper. That is in the works and Building Division will address that more when they come forward. Objective number two (2), ensuring building maintenance continues to meet the needs of the public. We have been improving our maintenance management tracking systems software or our work order status reporting system. Looking for ways to create more matrix as well as keep track and show how different projects are prioritized in the work order system. That is not training that happens not only within our building maintenance but training the other departments, when they submit the work orders make sure they do it correctly so we know when they are prioritized and when is it a regular request. Building division also does a significant amount of project management. We are implementing the use of project funding for our project and construction managers in the building division to most efficiently use the resources available to us and we are actually in the process of looking at somebody else and bringing him on board to help us with those efforts. Continuing to provide proper training. We have been working with federal highways, they comes over... they let us know they were going to try to come over on a monthly basis especially permanent to our federal highways projects to help us train our new project manager in the process x � r April 13, 2012 Public Works (Operating & CIP)p.9 because there are a lot of hoops to jump through when you use federal highway funds. We have been working with federal highways on that issue. For our Roads division objective number one continue on going base yard operations to meet public expectations. Roads guys are the guys that response a lot Mr. Mickens was talking about things like pot holes and the Road guys are the front line troops on this and so they are the guys that are charged with that responsibility. In order to make them as I mentioned earlier, try to move us into a proactive maintenance mode as opposed to a reactive mode. We are working to acquire and implement management software systems, help us to prioritize our efforts and keep us in a proactive mode as much as possible. You are aware that the Roads Division spend a lot of time on the Levees, we were successful in getting the Hanapepe levees back into active status with the United State Army of Corp. Engineering Program and we are getting close with the Waimea levees. We had some equipment and materials we had to (inaudible) delayed that a little bit but we are getting close to that. Along those regards we will be seeing as we specifically talk about roads how we are formulating creating some crews to address levees. Objective number three, also a special construction crew to address special needs with regards to roads and bridge type maintenance that we do not have formally address right now. Our automotive division does a great job in meeting the needs of all county departments with the staffing and resources that he has available. We will be talking more in detail about some plans to do some minor improvements which will hopefully have a significant change in his capacity to address the needs of the County in his efforts there in automatics. Environmental Services solid waste division obviously their big project is the new landfill. The EIS project is well on the way and we need to continue to support and move that process forward. In the mean time objective number two Kekaha landfill, we are making sure that we do what we can to extend the life of the landfill and use that airspace as wisely as possible. Cell number two design is on task and we will be looking for funding in the CIP when we get to that presentation for construction of Cell two at the landfill. On the wastewater side, we have four wastewater human plants that must all meet Department of Health and EPA standards and so we continue our operational compliance of our wastewater operations as you probably know the Waimea wastewater plant going through a significant expansion and upgrade and that will come hand in hand with some new requirements when we have that online and also some new opportunities. We have a lot of projects going on and you will see when we get to that division. We have under objective number two to help us with maintaining compliance and managing and developing the new projects newly hired engineers essentially an assistant chief in the wastewater division to help support the project management of the various division projects and help with planning and development of the various funded upgrades from the SRF fund. Here we have an overall summary of the Public Works budget comparing FY 2012 and FY 2013. You will see that salaries and wages are pretty flat, not a lot of change there, less than a percent. Cost of benefits have gone up though our wages have not gone up, our cost of benefits has increased. Our utility cost, we show an increase of about twenty-five percent and that is largely due to the (inaudible) though there are some increase cost due to some lighting or requirements that do exist, you will see an increase in the equipment lease line item which is a reflection of a proposed equipment that we have coming before you. Our operations cost, there is an eight percent increase there that is one significant portion of that is our roads division you will see has a significant request in their operations for more materials and supplies to help them with a lot of the road maintenance issues that are out there. Overall, we show a budget request about ten percent increase over last year's budget. Here we shown, this is the same information showed in a graphical format. As I mentioned salary and wages are pretty stable and we have some increase in the other areas as I mentioned. That was my overview of the budget for the Public Works Administration fiscal side and overall the department. I would be happy to take any questions now. April 13, 2012 Public Works (Operating & CIP)p.10 Ms.Yukimura: Are there any questions for Mr. Dill? Mr. Dill: As I mentioned Wally Kudo is on vacation, Ken Teshima is here to represent Engineering. KEN TESHIMA: I am covering for Wally Kudo. What you see up there is a summary of some of our accomplishments and status of the efforts that we are currently pursuing. We did send some of our staff for qualifications especially for federal highway, more specifically for federal highway inspection requirements. Kokee road, we did in house design and we are already in the process of beginning the construction. Piikoi renovation, we completed the planning and design for that project. Historic bridge — Opaekaa, Puu opae and Kapahi, the improvements for those bridges, the design and planning are underway. Hanapepe Bridge and Pedestrian walkway, the planning and design are also completed and we are soliciting from HDOT and federal highway to get approval to advertise for construction. Ala Kalanikaumaka is essentially the northern leg of the western bypass which the permits and clearances are essentially completed with the NEPA process. That gives us a green light for a hundred percent design process, we got approval for sixty percent, and funds for sixty percent has been obligated so we are pursuing that now. We are in the process for soliciting design teams for that. Lae Guardrails, that is a small road in Kalaheo, we got the design members on board. The Koloa Guardrail safety improvements that project is a consequence of some safety issues statistically Koloa road some federal money, instead of a eighty/twenty, it is a ninety/ten so we are paying only ten percent of that. We are beginning the procurement process for design like most of these. Kanaele road is in the same situation, Hanapepe Road resurfacing, Puhi road, Maluhia Road, they are all in the procurement process which is sets the foundation of what occurs for next fiscal year. The biennial bridge inspections, it is every two years. We are soliciting professional services to take care that. Kokee road resurfacing, that is for the next fiscal year but we are beginning that process now already. The bulk of the work will be fiscal year 2013 I believe for construction. The Hanapepe bridge construction also. The Hanapepe road resurfacing planning and design which should be moving before the next fiscal year starts in that process hopefully. Ms.Yukimura: You are talking now this FY 2013 is what you are going to be doing? Mr. Teshima: Yes. Most of the things that I mentioned in 2012 continues on, so it is possible a multiyear processes. Mr. Chang: I am sorry possibly multiyear process beginning 2012 or 2013? Mr. Teshima: We started in 2012 it will carry through to 2013. Mr. Chang: What is the status of the Lae guardrail improvements? Mr. Teshima: We have advertised and we do have a consultant on board for the design and we are in the negotiating process right now. Mr. Chang: That is the guardrail adjacent to the reservoir? Mr. Teshima: Yes. Mr. Chang: If I can really make mention of the concern. The residence have stated that the guardrail was actually ruined after Iwa and there has been request again and . April 13, 2012 Public Works (Operating & CIP)p.11 again for that rail because if you are not familiar with the road, the guardrail is very well needed because if you miss the turn, the reservoir is right there. I know that we requested that a while back and it was funded but I just wanted to see if we can really, I do not want to say fast track but keep that in concern because the residence have waited for some thirty somewhat years. Ms.Yukimura: Well looks like they are moving on it, yes? Mr. Teshima: Yes, and we do understand the severity of the situations. Mr. Chang: Yes because that is a very dangerous turn there. Mr. Dill: Vice Chair, I should have mentioned in the beginning generally speaking for the divisions as we go through the various reports, the format would be we are going to talk about FY 2012 and various things were accomplished and this current year, talk about FY 2013 and some of the things we anticipate for FY 2013 and then in the presentation that was given to you, you were given budget information and some graphs which pointed out the variations between FY 2012 and 2013 budget. We are going to talk about in our presentation the reasons for those variations the significant ones and then the final section with staffing. Based on Mr. Barreira's presentation, we may not touch on all the issues of staffing because again our presentation was predicated on the budget as it was printed out. Ms.Yukimura: Okay I just want to observe that this two part budget process is extremely difficult for the Council. And then we are going to have such a short time to deal with the budget when it comes up, the second addendum supplemental but let us get to the end of the division and then have questions. Continue Ken. Mr. Teshima: Hana e e Road, we are already startin g t h e planning and design and the bulk of the work will be done in fiscal year 2013 to get into construction assuming there is funding. Kawaihau road complete streets that effort is to look at the concept of complete streets safe routes to school consolidated into that project or that concept in consolidate into that project. Operating budget discussion, increase in operations is due to Engineering division's training budget moving form Public Works Administration to engineering. A couple of new employees has started in last FY maybe about six percent of the fiscal year and now it is a hundred percent for FY 13. Public Works Admin has moved to engineering and also there is an increase of direct salaries means that there is an increase in benefits, so essentially that should take care of the different variance. Ms.Yukimura: Alright, thank you. The 2012 you are just letting us know that you filled the construction inspector position? Mr. Dill: Yes and the two civil engineering one positions. Ms.Yukimura: Were they dollar funded or were they funded? Mr. Dill: I think the construction inspector was vacant and the two engineering positions, were they new positions last year? Ms.Yukimura: They were fully funded positions? Mr. Teshima: One was dollar funded and one was transferred from Solid Waste. April 13, 2012 Public Works (Operating & CIP)p.12 Ms.Yukimura: The engineering position is not in the present budget, it does not accounted for the six percent increase in salaries and wages that you show on page twenty-two of your report, is that correct? Mr. Dill: The engineering position is in the budget graph. Ms.Yukimura: But it was not supposed to be? Mr. Dill: That is my understanding. Ms.Yukimura: And then we are going to discuss its rationale when we have three days to discuss it? Right, when you send it to us and then we go straight into discussion making? Mr. Dill: That is my understanding. Ms.Yukimura: That does not make sense. I think we should but you do not know whether we are going to talk about it yet because the Administration has not made up its mind what positions are going to set up? Mr. Dill: I do not have directions to talk about it. Ms.Yukimura: Questions of Engineering? Ms. Nakamura: One of the challenges is upgrading drafting capabilities to support this division and I was wondering what do you think that... does that involve staff or equipment? Mr. Teshima: It is a combination of many things. For engineering increase this ability to do in house design, the primary data comes from surveying and now it is loaded into the drafting system electronically. We need to beef that part up. There is one person who is inaudible operator and for h (inaudible) ope ato ado those who can do it one but we need to have that ability to expand that resource and that may include or it will include possibly better computers because we do have the software to do it but it does not function too well. Ms. Nakamura: Is it more efficient to be doing this work in house, some of the work in house? Mr. Teshima: Yes and no. It depends on the complexity of the project. We always look at whether the value is there or not because the projects are not only engineering, it is about that is usually planning and design, outside the scope of pure engineering. So if we keep it all in house, we get bogged down with the planning, clearances, permits and environmental stuff. Usually the engineering is the easy part. Mr. Dill: If I may add to that too. We have picked up additional (inaudible) licenses especially as we bring in young engineers on board who maybe more familiar with some of the things. We have also conducted the training and so we are taking some steps in that direction to enhance our capabilities. Ms. Nakamura: This is probably not in this year's budget but if we are looking at in the future, this would be... II April 13, 2012 Public Works (Operating & CIP)p.13 Mr. Teshima: It is in this year's budget. We have a line item for fourteen thousand dollars for CAD software and so that will buy us two more licenses. Ms. Nakamura: So you have the software but... and you have people who can operate it? Mr. Dill: Yes and we have conducted training and continue to do so. Ms. Nakamura: Okay. Another question-that I had, recently the Council expanded the scope of the open space commission and one of the things that we have tasked the commission staff to do is to begin working on some of the public access that has been committed to open... we have asked developers or we worked it out where we are supposed to have this public access to the ocean and to certain places but there needs to be work done to survey the land or figure out how that access is going to happen or where that parking is going to be and so forth. I was wondering whether it makes sense in upcoming initiatives or part of a goal of this division is to assist on the implementation of that piece. Do they have funds to possibly do some of it, to contract some of it out but if it is a smaller project or, is that possible to make sure that it is on your radar, this public access is something that... there is a lot of that has not been resolved. There is going to be some work involved in trying to make it accessible. Mr. Dill: Certainly in Public Works and Engineering did request for support surveying support and minor design projects (inaudible) we can certainly help out those on a case by case basis. Ms.Yukimura: On the issue of your drafting capabilities and your support tech, are the computers that you think you might need in this budget too? Mr. Teshima: Yes, we have one. I was at the end of our budget tax information. We have a new computer in there with associated basic software. Chair Furfaro: I want to go back to the open space piece. Larry,you do know by Charter that the control of the easement pieces, public access pieces as far as meeting the requirements for reasonable care and public safety, that authority is with you, nobody else. It is not with the Mayor, it is not with the Planning Director, it is not with the Council that is with the Chief Engineer of the County. I just wanted to make sure you folks knew that. If you find something that is not safe, you have the ability to close it for repair for up to six months. I am sure open space would look for your kokua on a follow up to Councilmember Nakamura as it relates to evaluated these requirements. Mr. Kuali`i: My one question had to do with the Department of Personnel Services showed as a vacant position as of December 31, 2011 and that is a civil engineer six position with a position number of 1937 where is that position in this engineering division? I do not see it and are all positions listed on the budget on page 160 all filled except for the ones on the bottom where there is switching or repositioning? Mr. Dill: All of the funded positions are filled. Mr. Kuali`i: There is one civil engineer six which is position number 1433, SR 28, $88,8487—that is filled? Mr. Dill: Correct. Mr. Kuali`i: Is there another... April 13, 2012 Public Works (Operating & CIP)p.14 Mr. Dill: What was the position number you mentioned earlier? Mr. Kuali`i: 1937. Mr. Dill: I am going to have to get back to you on that one. Mr. Kuali`i: Okay because it is the same positions, civil engineer six and in the 12-31-11 Department of Personnel services vacancy report, it said fund source, County funded effected date of the vacancy November 1, 2011 so it was just the end of last year. It then says recruitment status, names referred November 1, 2011 so I would imagine that by now maybe somebody would have been hired into that position unless something else happened which we do not know. Mr. Dill: 1937, I see it. I mentioned as I briefly went through the Waste water presentation that we have a newly hired civil engineers six, that is the assistant chief of the waste water division. We had an engineer, we lost one over to Department of Water and then we hired Eric Agena. Mr. Kuali`i: Wastewater? Mr. Dill: Correct. Mr. Kuali`i: 1937. Mr. Dill: It is on page... it is in the Wastewater Division. Mr. Kuali`i: I am not sure why Personnel put it has Public Works Administration. Mr. Dill: I do not know... it is Public Works Wastewater. Mr. Kuali`i: I will make note of that. Ms.Yukimura: Other questions? I have one then. On the northern western bypass road, exactly what is the status? You have completed the EA? Mr. Teshima: The State EA is completed HRS 343requirements and the NEPA EA is essentially completed, it needs to get posted with the OEQC. Once that time runs down, it is completed. Ms.Yukimura: Are you attempting to get a no significant impact? Mr. Teshima: Yes. Ms.Yukimura: You are kidding right? Mr. Teshima: No. Ms.Yukimura: That is such a huge project, how it can be a no significant impact? It is over wetlands. April 13, 2012 Public Works (Operating & CIP)p.15 Mr. Teshima: It is but the structure is designed and aligned so that it does not impact the wetlands. Ms.Yukimura: How much was the estimated cost to complete? Mr. Teshima: Construction, we estimate twenty million at this point in time. Ms.Yukimura: Twenty million dollars of how much of a roll, how long? Mr. Teshima: About four, tenths of a mile. Ms.Yukimura: For four, tenths of a mile. And I guess you are trying for an eighty/twenty match? Mr. Teshima: Yes. Ms.Yukimura: Okay. So is that in terms of County portion? Chair Furfaro: Four million dollars from the County. Ms.Yukimura: And how are you planning to get that money? Mr. Dill: Well, that is not coming in this year's budget. Ms.Yukimura: I know. I still asking you how do you plan to get that money? Mr. Dill: We do not have an answer for you at this time. Chair Furfaro: But most likely that is a new bond issue. Mr. Dill: Most likely. Ms.Yukimura: You are already looking at ten million dollars in bond payments on our existing bond, okay, thank you. When is the deadline for a decision? Mr. Teshima: What decision? Ms.Yukimura: A no significant impact decision? Mr. Teshima: The 343 is done, the (inaudible) was completed. The NEPA EA went through all the different agencies included federal highway, they signed off on it and agreed that (inaudible)is where it is. The only difference is during the thirty day period of it being posted, if there is any comments then we need to address it. Ms.Yukimura: So the thirty day period has started or has not started until it is posted? Mr. Teshima: It has not started, we are going to try to post it sometime in late April or May, and I do not know the exact date. Ms.Yukimura: Okay, thank you. April 13, 2012 Public Works (Operating & CIP)p.16 Chair Furfaro: Let us try to keep as many of the CIP questions until Thursday. We are going to revisit this on Thursday, if you can tighten up some of those questions, it would be very much appreciated. Ms.Yukimura: Thank you, Ken. We will proceed with Building... what is your next division? DOUG HAIGH: Good afternoon. The highlights for the Building Division FY 2012 we completed the Historic Building renovation. Chair Furfaro: And under budget. Four hundred... not a very flexible budget but under budget. Take some credit where credit is due. Ms.Yukimura: Well under the final budget. Mr. Haigh: We have completed the Kaiakea Fire Station PV system and it is up and running. Our LEED certification is just about done. Piikoi Fire Department Administration Offices, the building division handled the construction management, engineering division assisted us with... they did the design and we took over and did the construction management. Fire has moved in and we are in our final punch list. 2006 International code and international residential code, we have completed our code amendments and have submitted to the Council and I believe we had first hearing this week. That is major accomplishments. For FY 2013 we plan to move forward with electronic plan review, we are doing this in partnership with IT division of the Department of Finance. We actually have some of our initial meetings next week with the vendor. Pono Kai and Moanakai Seawall are two projects we hope to do depending on permitting, it has been a very long process getting our Department of Health permits and it is ongoing. Hardy Street project basically we are doing a complete street upgrade to Hardy street and that one we hope that... we will be proceeding with that project this year. The Kapa'a base yard renovation project is under construction scheduled to be completed this summer and from there we will be moving Parks and Recreation Beautifications division, we will have space in the renovated space. Kapa'a base yard State Department of Transportation gave us their half of the base yard when they moved to their new facilities in Puhi. The major part of the project is structural renovation. Lihu`e civic center site improvements, we hope to be going out to bid this summer for that project, if not sooner. Operating budget, really not a whole lot of new stuff in our operating budget. We have some vehicles replacing two vehicles and providing a pickup truck for a new plumber. Chair Furfaro: Excuse me, are those lease purchases? Mr. Haigh: Yes. We defer to the Department of Finance on how they procure their equipment. You will see a large increase on the operating budget but that is ninety- nine percent due to the fact that last year the R&M projects were shifted to the CIP budget rather than the operating budget so this year we brought them back in to the operating budget, that is where we are seeing the gain increase to our budget. Chair Furfaro: Excuse me, can I ask you when we are moving R&M versus CIP and so forth, we are actually getting a generally accounting understanding of what qualifies for CIP versus what qualifies for R&M?Is that something that Clint is tracking? Mr. Haigh: I would say that we defer to the Director of Finance on those issues. There is a lot of different opinions on such things but the Director of Finance are... April 13, 2012 Public Works (Operating & CIP)p.17 Chair Furfaro: I am delighted because you are going back what my opinion was putting everything in CIP the last time, I do not think was acceptable because you got to book the asset after the add it but we have an understanding of what qualifies for CIP versus what should be R&M. Is there an statement we can go to? Mr. Haigh: I would have to defer to the Director of Finance. Chair Furfaro: Okay. I will put that down for a question when we see him again. Mr. Haigh: And then we have some increase in utility cost primarily due to the additional of Fire Administration office in the Piikoi building and also inflation to our energy cost. Staffing... Mr. Dill: We are going to ask... Doug was not here for the earlier discussion. We will wait on that discussion, we will stress that we continue hiring a project manager on a project funded basis to help us manage our CIP projects. Ms.Yukimura: Thank you, Doug. Questions for building? Chair Furfaro: I would like to ask Clint to come up on this building piece in CIP and so forth just so that at least somebody is pursuing it for us by Thursday. CLINT SAIKI: Good afternoon. Chair Furfaro: Clint, when we go into CIP on Thursday, I am wanting to see g Y, g if we cannot have something in a way of a narrative under general accounting practices that tells us what qualifies for... or let us put it this way what does not qualify for CIP and is really a repair and maintenance item. Is there an accounting narrative that you can provide us by Thursday? Mr. Saiki: The issue that is up for discussion right now is the change in policy really on how we handle the R&M projects from this year to this current fiscal year but it was a policy decision that was made by the Finance Department on how we should be financing those projects at the time. Basically it was a decision that came up and primarily you would need to have an opinion by the Director on why he made that call during that time. Chair Furfaro: There would be a policy somewhere, I would think. It is not a discretionary item. When we put paint on stuff and what is the difference on blinds versus FF&E. There has to be some kind of narrative around. Mr. Saiki: Majority of those projects are maybe in a gray area in terms of whether they are truly maintenance or there were some improvements that were made that would increase the life of the asset to such an extent that it would not be considered a capitol improvement. Chair Furfaro: Sure, I mean you put a roof on a house, it increases the life of the house. Mr. Saiki: That is true. Chair Furfaro: But if you paint the kitchen guess what... the choice of color is your wife's choice, it is not a CIP decision. 1 April 13, 2012 Public Works (Operating & CIP)p.18 Mr. Saiki: I agree. And some of those projects were combined in a sense that there were some maintenance aspects to the projects but they were also improvements that were made that we have increased the life of the asset. In those cases, it is an subjective decision that it could go either way because of the character of the project. Chair Furfaro: I do not like subjective decisions. I would like to see something in writing that is very objective that tells me if you are putting a new roof on the house, that it is going to extend the life of the house another ten years. Or you are putting a retaining wall up basically it is going to help you from flooding and so forth but when you do it like... changing the screens in this building and new paint and so forth, there needs to be definitions here and to me that is a change in philosophy that we need to know. We spent big bucks to fix this building, now, we are not going to wait another ninety-nine year, eight months before we fix the windows again. There is some R&M that goes into this building. I would love to see if you could pose that question that you can actually deliver some kind of narrative that tells us how we determined what is R&M and what is CIP. Mr. Saiki: Basic definition, we can clarify but the decision on where the projects were funded was a policy decision that I would need to defer it to the Director to respond to you. Chair Furfaro: Fair enough. Ms.Yukimura: Thank you, Clint. Ms. Nakamura: Thank you Doug for all of your accomplishments this past year. You had a lot on your plate, it looks like. One of the challenges that you mentioned in your report is filling vacant positions in a timely manner, what has been the biggest obstacle in this process? The other thing is about how long has it taken you to fill these vacant positions? Mr. Haigh: We have been lucky in some of them. We were able to use the building permit revolving fund to pre-hire or to hire someone and train them in the anticipation of retirement. So we had that in some instances. Other instances, we have been using... staff has been moving up into the positions, so there is cross training before the retirement. A couple of the positions have been difficult to fill because the people who are in line did not have the necessary qualifications. Once we had the seniority, did not have the necessarily have the qualifications. So those were our biggest and the ability to pass the civil service test sometimes we have been people who have been in this division for many years and are very capable doing the work but they are not taking the testes in one of their skills and so that can be a challenge. I think the Building Division is in pretty good shape. The biggest challenge is more on the capital improvement side of things. Our construction management, our project managers... the dollar funded policy is a little bit of a challenge because it is hard to bring in experienced County people who have worked elsewhere to come on just a contract basis with no sense of permanence even though the positions we funded have stayed permanent because we have to need, but if somebody is making the life decision of moving to Kaua`i and they are only looking at a temporary contract position, it is a challenge. And the frustrations of working in a public sector is very different so when we pull in outside construction managers who used to work in the private sector, it is quite a change in environment for them to work within the public sector and the difficulties we have. But right now, the Building Division, we are in pretty good shape as far as our succession issues. Ms. Nakamura: Managing multiple projects with minimal staff is another challenge. One of the other things we noticed when looking at the CIP projects for the County is just how many of them are being supervised by you or projected managed by you and you are also the manager of this Division that has how many employees? April 13, 2012 Public Works (Operating& CIP)p.19 Mr. Haigh: About ninety. I think it was just yesterday the County Engineer and I were talking about that specific issue. We were looking at new hires under the dollar funded positions and it was do we get somebody with field experience in more construction management side or do we get somebody higher up with the project management and government in dealing with the different regulatory agencies. The Deputy County Engineer told me, Doug, you need to get guys to do the project management so you can do the Administration. So my bosses see that too. Ms. Nakamura: Because I do not know how you do it with having so much on your plate. Mr. Haigh: I have been fortunate to have very good staff who managed the sections. That is having good staff below you really helps you. One thing, the additional plumber is a current dollar funded position that we are looking at fully funding and then the project managers are also dollar funded positions so I guess we are outside of that... separate discussion that I do not know anything about. Mr. Kuali`i: One position I have noticed in the Department of Personnel Services report, position 1528 the supervisory building inspector, is that a recent vacancy that is not going to be filled because Human Resources says pending request from Department or by now you have requested that they recruit? Mr. Haigh: It was a recent retiree. Mr. Kuali`i: At the end of last year. Mr. Haigh: Yes and we have the Personnel next in line with seniority and a temporary assignment handling that position. We have got a lot of other things going on right now and we are comfortable with him in that position and so we just have not put the energy over to formulizing opening the position and doing what we need to do to fill it. It is clearly our intent to fill within if we can and the gentleman who is in that position now is doing a good job and so we are in a little bit in limbo and we get a little more time and then we will address that personnel issue. Mr. Kuali`i: It is just that we have been hearing from Department after Department, their frustration with how long it takes a recruitment from Department of Personnel Services and so if you intend for that to happen, you might as well get them started because you might have to wait six to nine months. Mr. Haigh: Yes. Mr. Kuali`i: A lot of Departments have been saying. Mr. Haigh: In this particular instance, we do not have a sense of urgency because we are managing it because we are lucky we have the building permit revolving fund so these positions kind of move up, so the person who is doing the TA into that supervisory position, we are filing the positions below him by utilizing somebody funded with the revolving fund. Mr. Kuali`i: So then I have a question sort of what is the practice and what is the requirement regarding temporary assignment, how temporary is temporary? April 13, 2012 Public Works (Operating & CIP)p.20 Mr. Haigh: I would say six months would be reasonable and just like you mentioned it takes time to do the hire. It is on our plate to move forward with that is just we have not... Mr. Kuali`i: One thing I would just argue on behalf of the guy that is doing the great job is that, you know he would have the chance to go after the job permanently once it is posted and if it is going to take Human Resources awhile, the sooner you get it posted, the better. Mr. Haigh: I appreciate that, thank you. Chair Furfaro: Doug, I think for the benefit of Lyle and Larry, I was a big proponent for earmarking money from the CIP so that you could have some project managers. Do you remember that? Mr. Haigh: Yes and those are our dollar funded positions. Chair Furfaro: And we have the Auditor's bring their guy in and all of a sudden he was recommending that we hire all these people for these specialize issues and we are not big enough to do that but I have to tell you, how long have you been with the County now? Mr. Haigh: Twenty years. Chair Furfaro: Have you ever remembered a year that we have not spent or identified a CIP (inaudible) that was less than fifteen million dollars? Mr. Haigh: No. Chair Furfaro: And so if we take five percent of the fifteen million dollar package so that you could have some regular project managers that is four hundred and fifty thousand dollars. We have Pat, who else do we have? Mr. Haigh: Right now as contract hire... I think Pat is the only one. Chair Furfaro: Okay but my point is if we never fallen behind fifteen million in CIP and everything that comes out in the audit is about and this is believe me is something I believe in very strongly, that Doug cannot manage everything no matter how talented he is, we should not be saying that well because... we might have an extra guy and so forth... how long has Pat been with us so far? Mr. Haigh: About five years now. Chair Furfaro: Five years as a project manager. I think we can do it another time when we have CIP budgets that are in the twenty and thirty million dollar bracket, I would just want to encourage you not to use that rationale in the past, and let us look at another project manager for you charge against the percentage of the budgeted project money. You deserve it. Mr. Haigh: The challenge has been is that we have to charge specific projects. Chair Furfaro: Understood. Mr. Haigh: And it works out. April 13, 2012 Public Works (Operating & CIP)p.21 Chair Furfaro: You have an excellent accountant for project management in Clint Saiki. Mr. Haigh: He is retiring. Chair Furfaro: Well get him to set up a program before he retires but do not sell yourself short, I think you hear my message. Mr. Haigh: Yes, I hear you. Ms.Yukimura: I want to be clear I am hearing the right message, I think what I am hearing from the Chair is saying make a civil service position, basically. Chair Furfaro: Well I am just saying do not tell me you cannot retain somebody is the reason we have not pursued it, that is what I am saying. Because we have enough money every period of time. Now if that turns into another position fine, maybe you want to do it with Pat, but I do not think this County would find themselves ever spending or indentifying less than fifty million dollars in projects and fifteen million dollars in projects need management. You cannot stretch you all over the place. Ms.Yukimura: I think I am hearing the Chair saying that the volume of projects will be such that you could actually justify through conventional funding maybe one more project manager position. Chair Furfaro: That is right. Ms.Yukimura: Okay, thank you. You mentioned that your utility cost are going to be increased in janitorial because of the move of Fire back into Fire Offices? Mr. Haigh: Correct. Ms.Yukimura: At some point with the help of our energy coordinator and sustainability manager, those might be put in the department's respective budget at sometime but we are not doing it now because we do not have separate meters? Mr. Haigh: Well there has not been an Administration decision to do such. Yes, if you are going to do that there are different ways in the portioning the cost and separate meters is one way to do it but technically our buildings are designed where we have multiple agencies in buildings under the same electronically panel distribution system, individual meters is a challenge to do. It is possible but I think really that should be part of... we are looking at bringing in outside help for our energy use for buildings which we are moving forward through the Office of Economic Development. I think through that process there is going to be an ideal opportunity to look at those issues on how best to manage and minimize our energy cost. Ms.Yukimura: It just occurred to me that there might be some kind of accountability process through load controllers and whether you could actually identify who is drawing on the load and allocate electrical cost within one meter building and I do not know if that is possible but to the extent that you are pulling on different sources and so forth, I do not know. Mr. Haigh: We are also distributing the air conditioning, we have a central (inaudible) plant that is servicing all multiple agencies within the building. There is ways that you can do things to monitor by adding controls and monitoring devises but it is a matter of April 13, 2012 Public Works (Operating & CIP)p.22 looking at the big picture and what is going to be our most effective means of minimizing our energy cost. With the outside expert through OED, I think we will really have a great opportunity to take a look at that. Ms.Yukimura: While we are at it I just want to say one thing that to me that is not working about this building is the air conditioning in this room, I mean it is freezing. Mr. Haigh: That is just a matter of setting the thermostat. Ms.Yukimura: We have set it at eighty. Mr. Haigh: Okay, we can adjust that. Ms.Yukimura: Please, thank you. Mr. Kuali`i: In the budget— those are all the positions at the bottom, you got 904.8 project management officer contract, the 904.9 contract management, 905.1 construction manager... I mean the other one is construction manager also and then 904.7 project manager. You show four dollar funded positions but Department of Personnel Services show five, they also have a 904.6 and actually then in Mr. Barriera's report, he shows five also but one of them, he says not applicable—it does not have a position number. Mr. Haigh: Yes, that is what is on our spreadsheet for our budget list. Mr. Kuali`i: So, you have five dollar positions? Mr. Haigh: There are five shown and one does not have a position number. Mr. Kuali`i: Okay, so that is the last one that is 904.6. Mr. Haigh: Yes. Mr. Kuali`i: Glitch, the number just did not come through. Mr. Haigh: Yes. Ms. Nakamura: So, are you saying that just one of those five are filled? Mr. Haigh: That is correct. We have had two of them that are filled previously but people have chosen to... Ms. Nakamura: I am hearing you to say that it is because it is annually renewed that potential applicant may not have the job securities so it may not want to apply for this position? Mr. Haigh: Correct. Ms. Nakamura: And so if it is a civil service position that that might make it more attractive? Mr. Haigh: That is correct. April 13, 2012 Public Works (Operating & CIP)p.23 Ms. Nakamura: If we are saying we have funds in the CIP budget for it, it really needs to be in the Operating budget for it to be helpful to you? Mr. Haigh: Well to increase the probability, retaining somebody and attracting somebody. Ms. Nakamura: Right and given the amount of projects that your division oversees, there is probably going to be work to justify it? Mr. Haigh: I would defer to the County Engineer and the Deputy County Engineer what their long range plan is for projects for the Building Division. Ms. Nakamura: I see. Mr. Dill: Very likely. Ms. Nakamura: Well okay, if that is the case then, maybe we need to... when we do the CIP discussion is identify those projects that will likely be a Building Division Department project and then look at what it is going to take then to get those projects implemented and then work backwards? LYLE TABATA: That is just part of... what Doug mentioned is part of the whole... the second part is we cannot pay these people enough. Ms. Nakamura: Okay. Mr. Haigh: It is a doubled sided sword because if we go to the civil service position, you will end up paying them a little less in some instances. Where in this project management positions, we have a little bit more flexibility. Ms. Nakamura: I see. Mr. Tabata: In a private industry, people get paid many times double what we can pay. Ms. Nakamura: Right. Mr. Tabata: That is why Doug takes it upon himself to manage it because he has the background, the expertise in government. Where if you bring in somebody from the outside, they do not have that expertise. Ms. Nakamura: Right now we do not have the flexibility since all of them are the dollar funded positions, you have to go through the CIP budget which allows you to hire at a higher rate but there may be a candidate out there who wants that security but... I am just wondering if it helps to have the flexibility moving forward or just to say... Mr. Dill: It would have to have both opportunities. We can fund them by the CIP or if we had a civil service position. If we have someone with the PE license after their name, that allows us to hire at a higher level and often we can find people who has the necessary experience and expertise, we do not happen to have that and that becomes'a challenge. Ms. Nakamura: Okay, that is something to consider. { April 13, 2012 Public Works (Operating& CIP)p.24 Ms.Yukimura: Any other questions? One last one on page fourteen and I think the Chair was already looking at it, the funding... the fifty-five percent increase in operations which is your building maintenance is because of funding none recurring R&M projects that was moved to the CIP budget last year? Mr. Haigh: Correct. Ms.Yukimura: They are none recurring and you made them... so now why is it more in this year's budget? Mr. Haigh: Like I mentioned... Ms.Yukimura: Oh, because now you... Mr. Haigh: ...the Director of Finance is making that decision. It is made beyond us. Ms.Yukimura: But why is it none recurring? Because the reason it is back in there is because you actually have R&M expenses again. Mr. Haigh: But it is not like a salary or a utility cost that you are paying every month. It is individual projects that are being done to improve our assets and in some cases we are putting on roofs which extends the life... Ms.Yukimura: I understand, okay. That does not give good budget reflection though but thank you very much. Any more questions? If not, let us move on. EDWARD TSCHUPP: Good afternoon. DONALD FUJIMOTO: Good afternoon. Mr. Tshupp: We are happy to be here today and appreciate the Council's support. In Waste Water Division for FY 2012 we have been working pretty hard in Waimea with projects in seventy-five percent complete, there are new equipments that are starting to get started up and so on. We have also had a very good experience with a contractor evaluating and doing energy audits for the division, the other three Wastewater Treatment Plants have been analyzed for energy audits and we are working on trying to contract for the implementation of those improvements. We also have a couple other construction projects that are currently in progress, one is replacement of an emergency generator at the `Ele`ele Plant and the other is the Complete Renovation of our Lihu`e Laboratory Facilities. Looking forward to next year, we are looking forward to the completion of the Waimea WWTP expansion and upgrade project. That also opens the door of working on distributing the new R1 water being developed as part of that project. We have been working with (inaudible) land company on scoping improvements to the existing (inaudible) none potable water distribution system that serves through the town. We also had some preliminary discussions with Parks Department about take offs of the R1 water that could go to serve the sports field complex. We have been awarded and there is a grant application process that we need to go through but in 2010 there was a earmark, one of the last earmarks — congressional earmark to the County for Waimea Wastewater work that we are proposing to apply to the planning and design elements of the distribution system upgrades. That is a new project showing up this year. It is not reflected in the budget with a budget allocation because we are really hoping to leverage some of our federal funds. The third item on the list is the implementation of the energy efficiency work and then the remaining items are the next three Wailua, `Ele`ele and SCADA are projects that we are currently working with Purchasing Division on getting out to bid, so they will be going out into April 13, 2012 Public Works (Operating & CIP)p.25 construction next year The Wailua and `Ele`ele projects are SRF funded through the Health Department, the SCADA project is bond funded. The final project on this list is the odor control project that the funds were allocated this last year by Council to proceed with coming up with odor control improvements at Coco Palms. At present we are in the process of rewarding the design contract for that project. Ms.Yukimura: For which project? Mr. Tschupp: Coco Palms SPS odor control project. Ms.Yukimura: Badly needed project. Mr. Tschupp: We have actually a lot of our funding in the operating budget are fairly consistent from year to year and something that I keep saying to the County Engineer and the Finance Director and the Deputy County Engineer is that we actually generate a significant amount of revenue from our operations and the revenue side is almost never reflected in these budget discussions because I do not believe there are many other agencies that are essentially generating the kind of revenue that we generate. In respect, we are close to being self sufficient and our schedule of rates and charges was designed and approved by this... maybe it was last Council with rate increases that are taking us even closer to being self sufficient. That is the yard stick that we are trying to reach over the next couple of years. Chair Furfaro: Just so we know, this year there is a change in our presentation on Tuesday in the afternoon session, we are going over all revenues including yours. Mr. Tschupp: Okay. .Y Chair Furfaro: Just for the body, if you look at the agenda, there is a section about revenues. Ms. Nakamura: I just was going to say, it would be good to have that in your presentation to see the big picture with the revenues and expenses in the future. Mr. Tschupp: That would be a different format than I think most of the other County agencies deal with. Ms.Yukimura: But if I may ask Ernie, it would be good to have it your regular portion of Ed's budget as all the other County agencies and then just an enterprise fund budget presented to us. So we could see that picture that both the Chair and Councilmember Nakamura are talking about and you have also suggested that it is the revenue side. Mr. Tschupp: We have one of the areas on the summary table is operating budget discussion, increase equipment/lease equipment cost. This is a relatively small relative to the number of facilities that we operate but we do have a couple of pieces of equipment, mobile equipment that are up for replacement. It is a relatively large percent increase on the order of twenty somewhat percent but it is not a big dollar item. I was told to skip this one because it was already addressed... that is it... We do have on staffing, we do have many of our staff have been there for quite awhile and many are looking at retirement and it is a challenge for our... particularly the grade for operators and we basically need two grade four operators at each plant plus the supervisor and I have...we have been very fortunate in this last year that we had some folks successfully pass their grade four exams last year and I think it is a reflection on the ongoing training as well as the motivation of the employees. Because it is not a trivial examination, it is a April 13, 2012 Public Works (Operating & CIP)p.26 very mass centric, very professional kind of examination, it is not easy to pass and yet we do have some retirements coming up, a couple key ones this year—a supervisor and grade four operator. Ms.Yukimura: Well congratulations to your employees who went through that. That is the kind of planning basically that we need, even if it is just encouragement and support to go do those test and prepare for them. Chair Furfaro: I have raised this question with you before with Wastewater and it is a consistent issue with our inspection forms and it relates to the hiring of an electrician for the plant. If you read every comment that we had from the State Health Department, it is like Wastewater does not provide the appropriate technical background with electrical worker, what is our strategy there? Mr. Tschupp: We address that in two different ways and even though we say this to the Health Department, I agree wholeheartedly that the best approach is to fill that position with an industrial electrician. One of our strategies is to attempt to do that and it is very difficult for some of the reasons that Mr. Haigh mentioned even though it is a permanent position, it is a very competitive environment out there and County levels of compensation are nowhere near (inaudible) with what that licensed electrician can get in the private sector. Chair Furfaro: When it is a good construction period. Mr. Tschupp: But even over the last couple of years, it has been a pretty cut throat very flat economy and yet still we have not had qualified applicants coming in. Chair Furfaro: But we have never come back with a strategy that this Council is asking for... is that something because of the ability to identify, hire and retain electricians, is that something in our thinking that we have to talk to the bargaining unit about that particular pay grade? Have we evaluated that approach and what it would take to secure you the right compensation to... because we cannot go on year after year with this deficiency from the Health Department that is not acceptable too. Mr. Tschupp: I have not push that with the Department of Personnel and I am hearing you once again because I acknowledged that you have asked this before. I am not really clear what it would take to do that. Chair Furfaro: I would really appreciate that we do not go another year with the same deficiency and then we did not come up with a strategy to talk to HR and get something going with the union about retention about that position. Mr. Dill: Thank you, Council Chair. We will look into that. Ms.Yukimura: May I also suggest that you talk to the other Counties because if they are having the same problem collaborative strategy on it might be useful especially if you are going into collective bargaining with some proposals. Mr. Tschupp: It does reflect upon the broader contract agreement which is part of why Personnel Management has to be involved. Ms.Yukimura: With a new Human Resources Department, hopefully they will be able to do that kind of more sophisticated research and strategizing. Mr. Tschupp: I can but hope. April 13, 2012 Public Works (Operating & CIP)p.27 Chair Furfaro: And please note, we do not have to negotiate a whole new contract...we have to open dialog with them about the approach to red circle a position for one P g pp p person. That is what I would hope we would be able to at least initiate. Mr. Tschupp: The other side of our equation on agreed that we should fill the position and do what we need to do. I just wanted to reassure Council that although it shows up with the Health Department as a deficiency, I think that they are applying their limited knowledge of our actual flexibility to go out and do an emergency procurement and when we have an emergency involving an electrical problem, we have never had the Finance Director stand in our way or any institutional entity stand in our way here within the County to go out and hire that contractor. Chair Furfaro: And I do not think that is what you heard from me here. You did not hear that from me. Mr. Tschupp: I just wanted to make that clear. Chair Furfaro: I am saying year after year seeing that in the report, I think we have to have some dialog to see if we can red circle something to make it more attractive. Mr. Tschupp: I appreciate that, thank you. Ms.Yukimura: Other questions of Ed? Mr. Kuali`i: I just wanted to clarify, that is position number 1918 which is called plant electricallelectric EQ repairer? Mr. Tschupp: That is correct. Mr. Kuali`i: That DPS shows as continuous recruitment. Mr. Tschupp: That is correct. Mr. Kuali`i: So for year and year, it is unsuccessful in recruiting and for the reasons you stated. What other positions are currently vacant? Is 907 sewer maintenance helper vacant as of August 8, 2011 and it says pending discussion with Department or has that been moved up? Mr. Tschupp: 907 has been filled, yes. Mr. Kuali`i: Currently? Filled like within the last month or two? Mr. Tschupp: I think it was a couple months back. Mr. Kuali`i: But after December 31 because that is when the report we have from DPS and then the other one... the 1937, I think that is the one that came from... what was showing somewhere else, 1937 civil engineer 6 SR 28 eighty-five thousand was vacant as of November 1, 2011, the status they have is names referred. Mr. Tschupp: That is Eric Agena and he started with the agency in February. Mr. Dill: That is the one we spoke about earlier Councilmember. April 13, 2012 Public Works (Operating & CIP)p.28 Mr. Kuali`i: The other thing is in the budget it shows eighty-five thousand, four hundred and twenty-eight dollars and in the recruitment dollars they show sixty-two, four, two, four but you are saying as of July 1 that person is being paid eighty-five, four, two, eight? At the rate that is in the budget? Mr. Tschupp: That is my understanding. Mr. Kuali`i: HR just got the number wrong? Mr. Tschupp: When we were recruiting, we recruit a possible across a range and because the person that was selected has several years of experience in government, he ends up over the step category that is at a higher pay scale then the starting salary. Mr. Kuali`i: Right. The last one is, there is a position fourteen, forty-three that is called civil engineer six and in parenthesis it has fifty percent and says transferred to Solid Waste, is that a half time position that was transferred to Solid Waste? Mr. Tschupp: I believe that refers to Mr. Fujimoto here on my right. Mr. Kuali`i: Oh, okay. Mr. Tschupp: Environmental Services Officer. Mr. Dill: He's position is funded half from Solid Waste and half from Wastewater since he oversees both of those divisions. Mr. Kuali`i: Okay, so I do not know why it says transfers but it is a split position and that is half the salary? Mr. Dill: Correct. Chair Furfaro: A housekeeping item just for... at 4:30 we are required to take a caption break but I would like to say at 4:30 we are done for Engineering for today because we are going to start back up again on Monday at 9:00. Ms.Yukimura: Very good Chair, thank you. Any other questions for Mr. Tschupp? Ms. Nakamura: I wanted to ask you a question about the (inaudible) solids disposal diversion and what strategy you have for doing that? Mr. Tschupp: This is something that I got to take and give a lot of credit to Solid Waste because they are the ones who are taking the ball and running with that, partly that is a function of staffing. Before Eric started I was really strapped but I believe that they are in the process of preparing for publication a request for proposals for alternative, there is many possible alternatives and I would invite Donald to add any comments that he may have. Mr. Fujimoto: Just echoing with what Ed said, we are just about ready to go out for procurement, so it should be coming out in the next month or so. The funding is actually, we are looking at funding it... it is kind of complex because the funding is under Wastewater and the complication is actually when we go through procurement. If we obligate that funds for procurement can we use this operations as well? Maybe one way to do it is to try to target next fiscal year. April 13, 2012 Public Works (Operating & CIP)p.29 Ms. Nakamura: In terms of implementing the project? Mr. Fujimoto: Yes, and even going out to bid because to bid a project, you will need the funding, you need to secure the funding. Ms. Nakamura: So there is no funding in... Mr. Fujimoto: Well there is funding but it is already used for operations for our present operations. The gray comes in when we go out to funding, do we obligate that money once we go out for procurement and therefore freeze ourselves from being able to use the same funds for the operations. Ms.Yukimura: Well that is because right now you are paying money to take care of the sewage sludge? Mr. Fujimoto: Yes. Ms.Yukimura: You are taking it to the landfill and paying tipping fees. We are looking for a project that might recycle and divert that and use it in a more productive way then taking up landfill space, so we are in a transition and in the long picture, your operational cost should go down. Mr. Tschupp: That would be desirable. Ms.Yukimura: And because there may be some revenues coming in or at least be a break ever where the people who are doing this other project will pay for it or will use it. Mr. Tschupp: It is a funding... it is a immediate near term how do you fund the procurement aspect and I think there are ways to do that within Finance Department. Ms. Nakamura: Do we know about how much needs to be in the budget to in order to make this work? Mr. Fujimoto: Right now the preliminary feedback that we are having is that we are hoping that it would be significantly less however even (inaudible) the rates are almost similar to the tipping fees. We are looking at almost similar cost but the big issue is diverting from the landfill and becoming more efficient. Mr. Dill: Councilmember Nakamura, I am not sure if we have explained clearly but Wastewater Division has in its budget a line item for tipping fees in the landfill which is a significant number. At the end of the fiscal year, having moving forward hopefully with this whatever proposal is the fund, we can fund it out of that line item. Ms. Nakamura: I see. Mr. Tschupp: I believe that is a hundred and sixty thousand and that is part of our operations. Ms. Nakamura: I also have a question about the energy audits are not completed. April 13, 2012 Public Works (Operating & CIP)p.30 Mr. Tschupp: The investment grade audits I believe are the final version that was supposed to be emailed to us today. They delivered the draft a couple months ago, we went through them and discussed it. Ms. Nakamura: Is there anything in the budget on implementing any of the energy conservation measures? Mr. Tschupp: There is not because the fundamental approach for those energy conservation measures is that the energy savings would fund the improvements. It is one of those... instead of paying KIUC, we would go out and do some capital expenses through the contractor and divert the KIUC funds — potential payment to paying as if it was a bond float the capitalization for the improvements. Ms.Yukimura: And once you pay that off then it should be an energy saving... it should be a saving? Mr. Tschupp: Right. Ms. Nakamura: So who fronts the initial investments? Mr. Tschupp: The whole procurement for this thing was done under the State procurement offices primary procurement mechanism that was set up by them and bottom line is we go to supplemental contract that either is a guaranteed energy savings contract, that is a financial mechanism or it is a purchase power agreement or both, I think we are actually looking at both. Ms. Nakamura: It sounds like a separate briefing. Mr. Tschupp: Executing a contract that pays for the capital and takes the avoided revenue stream for the debt service. Chair Furfaro: Sometimes they refer to that as a shared revenue program where you share with the supplier of the investment a part of your savings. But in this case, it is the full amount? Have you seen that contract? Mr. Tschupp: The guaranteed energy savings aspect to it is that if we do not achieve the energy savings that the contractor said... Chair Furfaro: Promised us. Mr. Tschupp: Promised us that we go back to them and say pay up. Chair Furfaro: I had a very bad experience myself in a hotel doing that shared revenue process because we did not live up to... Ms.Yukimura: I think we have some history of that ourselves as a County and so they have to be very carefully crafted and you have to have good contractor consultants. Mr. Tschupp: The negotiation is not insignificant by any means. It is a real process and we are, actually that whole contract is administered through the Office of Economic Development, Glenn Sato guys, and Ben Sullivan is doing a terrific job of watching out for some of our County interest and we are already in decisions with Finance Department and the County Attorney's to assist with the... April 13, 2012 Public Works (Operating & CIP)p.31 Ms.Yukimura: Good because you are going to need really good legal advice as well and oversight. I have one question. On you R1 distribution project which is a recycle water project, right? Mr. Dill: That is correct. Ms.Yukimura: It is very exciting and a wonderful thing that is happening and I think projects the future or reflects what we are going to be doing more and more of in the future, so you are pioneering this. Are we a utility in our distribution of our the water? Mr. Tschupp: That is a very good question. It could be. That is one of the details that needs to be sorted out if we go through the existing system that Kikiola operates and just do some improvements there, that is... a question is whether we take over that system or whether we just sell to that system and that has not been established between us and Kikiola. Ms.Yukimura: And I think the Water Department is looking at some of those issues too because it is coming up on other parts of the island so you might talk to them because... as well as to Attorney's or some experts in the utility field because this is breaking new ground and how you set up the systems is important and also can be effected by the existing regulatory framework that we all live in. Mr. Tschupp: Maui County Wastewater is running an R1 distribution system so they are a good model for us. Ms.Yukimura: Yes, it would be good to check with them too. Lastly, not a question but I think you were far too modest Ed, in your successes and achievements you did not mention the EPA award that you have won. Mr. Dill: That was last year, a long time ago. Ms.Yukimura: Past history but it is in the last year and we want to acknowledge you and your staff and all the people who had a part in it because that was a very significant award and recognition and job well done. If there is no other... Chair Furfaro: Well that is perfect, we finished Wastewater right on the nose and if you have no more to offer us today, then we are going to start up Larry again on Monday at 9:00. Also, just pointing out again Larry, you might want to share some information with us in advance on revenues which will come up on Tuesday. The budget review recessed at 4:29 p.m. April 16, 2012 Public Works (Operating & CIP) continuation p.1 The departmental reviews reconvened on April 16, 2012 at 9:14 a.m. and proceeded as follows: Councilmember Rapozo (present at 9:26 a.m.) PUBLIC WORKS: Chair Furfaro: Aloha good morning, I'm calling back into session the Budget process that was in recess from Friday. On that note Mr. Dill it is my understanding that we're going to start today with automotive right?And eventually work towards the start of the CIP Review. How do you have your program laid out for us,just so we can all make a few notes this morning? I did get that right we are going to start with automotive right? LARRY DILL, COUNTY ENGINEER: That's correct. Good morning Council Chair and members of the council, Larry Dill, County Engineer for the record. Our agenda for this morning we plan to start off with the repair shop/automotive then move to the highways operating budget and finish off with the solid waste operating budget. My understanding was that CIP was re-scheduled for Thursday? Chair Furfaro: Yes it is scheduled for Thursday but we put it in the calendar for the purposes of if you come through with flying colors and its only 1:30 in the afternoon, we might want to start talking about some of those items. Mr. Dill: I apologize I'm not prepared for that for today. Chair Furfaro: Okay then we'll go to a long recess. Mr. Dill: Okay. Chair Furfaro: Okay but I think we do have it in the narrative. It talks about going into the engineering department and it leads up as... Mr. Dill: I apologize it was my understanding that it was in there than there was a change to that. That was my understanding and I apologize if that's not correct. Chair Furfaro: Well this was my calendar so we'll take it as it comes and if you noticed even Thursday says if necessary a continuation department of public works and then CIP, but all 3 days also indicated CIP. So gentlemen you have the floor, good morning. Mr. Dill: Can we get the slides projected on the screen please? Chair Furfaro: Larry I'm going to move to the side table. Mr. Dill: Good morning again we will be proceeding as we were last Friday with our various divisions we finished 3 on Friday and we have 3 more this morning. Generally speaking our general format will be talking about fiscal year 2012 and some of the highlights and issues there. We will then talk about fiscal year 2013, and then we will look at operating budget discussion highlights where there is significant variations or cost that we have not perhaps anticipated and then any staffing issues pertinent to that division. I will turn it over now to our chief of our automotive division, Dwayne Adachi. April 16, 2012 Public Works (Operating & CIP) continuation p.2 DWAYNE ADACHI, CHIEF AUTOMOTIVE DIVISION: Good morning, Council Chair, Councilmember's, Dwayne Adachi Automotive Division. We have a short slide presentation that goes over what we did in 2012. We purchased some new vehicles and equipment including 1 bushwhacker mower, 1 skid steer loader, 3 refuge transfer trailers and 2 hybrid SUV's. We also implemented a refuse transfer station preventive maintenance program. Some improvements that we've made to our facility were to provide additional work space within the existing building footprint. In 2013 we plan to acquire and implement a new fuel management system to replace the obsolete system we are currently operating. We plan to procure approximately 3.3 million dollars worth of vehicles and equipment for all county departments. One of the main areas where we're concerned about is the increase in the fuel cost so the main item is the increase in diesel which we estimating seven hundred thirty thousand dollars versus last year's amount of five hundred fifty and gasoline also. We estimate four hundred fifty five thousand versus last year's three hundred eighty five thousand. Staffing, we recently hired a supervisor to fill that vacant position which was dollar funded and that's about it for the slide presentation if you guys have any questions? Mr. Dill: If I may add a couple of things here for clarification and reminder that the automotive division is funded by the highway fund so it comes under that fund. Also to elaborate a little bit on this repair shop supervisor position, we have hired someone but we're at in him into that position so we are requesting funding of that dollar funded position since we are using vacancies elsewhere to fund that position. It is a key position that Dwayne has been basically covering himself for some time now and with this new position though he's only at in, he's allowing our shop to be a lot more effective and efficient in its operations. Since we are using other vacant funding if we fund the dollar funded supervisor position that would allow us to fill those vacancies and increase our capacity at the shop. Chair Furfaro: Larry I'm going to continue our practice, we're going to start with 2 questions each as we go around the table and so forth from various councilmembers. I will pose my first 2 questions I have 4 all together, but we'll see if others will quarry some of the same that I have. The new fuel management system, is this selection and the terms to accurately report the fuel system and its use and so forth, has that been exposed to the county auditors department so that we all have an understanding of how do we use these electronic codes cards as that they are? How do we keep a system of specimen signatures knowing who's approved and so forth. Has that system been looked at by the auditors department? Mr.Adachi: We currently doing research now on this new fuel management system and it's basically the same procedure the only difference would be the hardware and the software, which supposedly is more reliable. Right now the system we have is obsolete and difficult to repair and get parts for. To transition into the new system shouldn't be that difficult. Mr. Dill: If I can add to that chair. As you saw in the audit that came back from the auditor's, they pointed out many deficiencies in our current system. As Dwayne pointed out we have not gotten into the details of the procurement so we are fully aware though of the auditors concerns and areas they want us to address in procuring that system which is part of the driver for us acquiring the system. Chair Furfaro: I just think it would be wise of us to have them look at it and see if they can make any recommendations about controls in advance of actually implementing the new system. My second question when we talk about the refuge trucks and trailers, I have been to the shop several times now and I've noticed a number of times I've seen the new refuge trucks in the yard being serviced. My last visit I found 3, we have 6 right? Mr. Dill: Yes. April 16, 2012 Public Works (Operating& CIP) continuation p.3 Chair Furfaro: I found 3 of the 6 in for repair at the same time. Do we have a manufacturer issue there?Have we been in touch with them? Mr.Adachi: Yes we've been having problems with the engine manufacture the warranty because the new trucks are still under the warranty period and one of the difficulties we face now is the representative for the engine company is based on O`ahu. They have representatives on each Island except Kauai and so it's difficult to get repairs done in a timely manner because they like to impose traveling fees on us and we feel the county shouldn't be paying for traveling fees under the warranty period. So we go back and forth with the engine manufacturer. Chair Furfaro: So at this point the warranties are still active, we have this discrepancy about this travel fees. May I ask if the County Attorney's Office is involved at this point to make sure we are documenting these discrepancies?If they're not I find I just request that they do it now. LYLE TABATA, DEPUTY COUNTY ENGINEER: Maybe I can answer that. Lyle Tabata, Deputy Engineer. I recently was made aware of this and what we have done is our supervisor has gone back to the manufacturer on the Mainland to work with them around the Hawaii rep and he has directed the service according to what our needs are. We are letting that process works its way first before we get the County Attorney involved. Chair Furfaro: Actually I want to say that we don't have a very good track record on things like warranties at the Kilauea Gym because we waited too long to get the County Attorney's Office involved so I am going to make a request if we can at this point to at least send a cover letter to the manufacturer that we got a couple of issues and at least we're on record. I think that would be my recommendation. Those are my 2 questions for this first go around and thank you gentlemen and I hope you understand my sensitivity to it because we had a couple of warranties on building work expire and we had to come back and rebuild the documentation. Okay I'm going to go to Mr. Chang first Council Vice Chair, and then I will come to you second. Okay Mr. Chang and I'm going to move back to my seat. Mr. Chang: Thank you good morning Dwayne and thank you for being here. It might sound self explanatory but what is a bushwhacker mower and a skid steer loader? Mr. Chang: The bushwhacker mower is what we use to maintain the roadside, the vegetation it's the tracker with the side arm that cuts in on the side arm. And the skid steer loader is a small loader referred to as a skid steer, it's like a bobcat we use to have in the old days. But now we got small rubber track loaders. Mr. Chang: So after we cut on the side of the road the remnants of the weeds or the bush just sits there?Is that how that works? Mr.Adachi: Yeah pretty much. Mr. Chang: Do we coordinate with like your department when you guys are getting ready to cut because I noticed a lot of times we cut and it exposes a lot of the rubbish and then the rubbish doesn't sit in the grass and it's now exposed and starts blowing. Mr. Dill: Councilmember Chang Dwayne's role is simply the procurement of the equipment and the maintenance of the equipment but can I ask when highways comes up that you can pose that question and we'll address it then. April 16, 2012 Public Works (Operating & CIP) continuation p.4 Mr. Chang: Okay, okay. Mr. Dill: Thank you. Mr. Chang: Just one quick fact question. In regards to the contractor that we have that doesn't want to fly out to do maintenance. Are there other situations like that with some of the other vendors? Mr.Adachi: Yes we ran into that in the past just basically with this engine company. But we've worked around that and we've had the company make concessions and fly the person over. The same in this case it's just that the back and forth communication in trying to get that done is time consuming. Mr. Chang: Yeah. Mr.Adachi: You wait for this guy, wait for that guy and we keep going back and forth but in the end they always agree and they send someone down but it takes awhile. Mr. Chang: Okay thanks. Thank you Chairman. Chair Furfaro: Vice Chair Yukimura. Ms.Yukimura: Good morning, as a follow up to the questions from both Chair and councilmember Chang on this warranty issue. To me it's quite outrageous that they don't immediately come and rather than having to work around it, isn't there something we can put in the bid documents that insures prompt service on the warranties and a leverage system that says if they don't respond in so many days that there's a daily penalty? Mr.Adachi: It states in the bid document under the scope of work that the contractor has 4 days to get the warranty issues addressed and after that we can start charging liquidated damages for each and every day. Ms.Yukimura: Well that's why I think the Chair's advice to get the County Attorney's involved maybe good, you just start charging them liquidated damages and then it's in their court.Although it still doesn't solve our problem I mean with solid waste you need daily service and so maybe in our bid documents we say for the warranty period they station a separate truck on Kaua`i until the warranty is covered so we have immediate substitute. I don't know what it is but it's such an urgently needed service on a daily basis that it seems to me we might look at both our procurement documents and our legal documents so that you folks don't have to spend all this time trying to get what we should be able to assume. That's just for future even especially if we've had trouble in the past with this manufacturer. My question is about fuel because the statistics your showing is terms of increase costs are quite dramatic and this diesel does it cover our bus fuel? Or is this other vehicles? Mr.Adachi: No bus has a separate account, transportation has a separate account. Ms.Yukimura: Okay so when the bus consultant Jim Charlier came forward they have identified that as a key problem in future planning and so it seems if you put together the needs of the bus system and the needs here, it really gives us urgency in terms of finding a substitute fuel and biodiesel comes to mind immediately. There are huge complications but it seems April 16, 2012 Public Works (Operating & CIP) continuation p.5 to be that dove tailing in our energy plan and your needs the counties basic operational needs, there should be maybe a special initiative to figure out this fuel issue. Arriving at fuel self sufficiency is maybe the most urgent thing we need to do and you know Pacific Bio Diesel is an international company now that has started out of Maui and at least we should be talking to them about what the issues are. So gasoline is similar but not as bad of a problem? I'm not even sure how to begin with that one. Ok lastly, thank you for mentioning Larry that the automotive is funded by the highways fund, but automotive takes care of more than just highway operations right? So the question is how are we separating the cost to actually get accurate cost for what is highway related and what is other and are we charging it to the other operations so we know the true costs? Mr. Dill: We do charge out the other operations to other departments though I don't believe that we are 100% consistent in the way we do that so, we have been having discussions with the Finance Director about that. I would like to leave that up to him to address since he has control over that issue but good point but well taken and we are discussing that with him. Ms.Yukimura: So you said there are allocations but how accurate they are is the question? Mr. Dill: Well not how accurate but how consistent we are in charging various departments. Ms.Yukimura: I see, I see, so that would go to how reliable your figures are? Mr. Dill: Well I think decisions have been made to charge some departments perhaps and perhaps not charge other departments. And I don't know the history on that. Ms.Yukimura: Okay, okay, thank you very much. Chair Furfaro: Okay Mr. Bynum. Mr. Bynum: Good morning gentlemen and I wanted to start with just sharing with everyone here including my colleagues, I have missed some budget sessions recently because of illness and because of addressing legal matters that have been imposed on me. I apologize if any of my questions are redundant, I am doing the best I can this day and track with what's going on. So you are proposing a new fuel system and I think that's great and I remember an initiative that didn't happen from Public Works a number of years ago that I see that's related so I want to ask some questions about fleet management and fuel management and that will be my question for this round. The initiative I'm referring to was kind of new high tech 8 or 10 years ago or it was probably 4/5 years ago but it's becoming routine now which is GIS tracking of vehicles. It has many purposes both audit and knowing how fuel is spent but also knowing where your assets are in the field given an emergency. Also the potential and there's been a history and I'm sure it doesn't happen now but there's been a history of county people kind of hanging out and not working and I know that history is real and I'm sure it was a long time ago but it also addresses that kind of fraud that might happen. If you think your workers are out over here but all the vehicles are still at the base yard and that's why I'm hoping that this system you're looking at integrates GIS tracking of vehicle. Is that something you're talking about or considering because I think it's related to fuel systems in often a part of that package? Mr. Dill: The system we're looking at does not include a GIS option. April 16, 2012 Public Works (Operating& CIP) continuation p.6 Mr. Bynum: So are you aware that that was an initiative from public works in the past? Mr. Dill: No I'm not. Mr. Bynum: At that time as I recall was like we're going to collect this data that's not instantly available all of the time but when you drive back into the base yard you get the days data, how many miles were driven, where and that kind of thing. That's one of the systems that was discussed here at budget a number of years ago but it was cut from the budget and not by council I don't think but by the administration. I would really like that to be considered and I may do follow up questions, I mean it's become fairly routine with large fleet management and the cost have plummeted compare to 10 years ago of putting in those kinds of systems. We are all GIS and GPS on all of these phones and that's how cheap it's become so I would strongly encourage our entire county fleet to have that system. Mr. Dill: Okay we can look into that as part of our system. Mr. Bynum: And that can be part of your -fuel I'm pretty sure same companies and that's all for now. Oh I'm sorry I got two questions. I heard earlier in the budget that we're looking at doing small equipment repair at the bus, and is that going to relieve your operation from some of that stuff? Mr.Adachi: That would alleviate some of the work load. Mr. Bynum: And there was some discussion about having a new facility sometime?Is that on the back burner, front burner? Mr. Dill: Its not on the front burner at the moment, other priorities have come up. We are still investigating that but that's a big cost proposal that we are looking at in the long term. Mr. Bynum: Right and so it makes sense if you're stuck with your existing space to get working on primarily the fleet so work the big equipment there and take the small equipment elsewhere. Mr. Dill: Yes and it will make Dwayne's operation more efficient by relieving all the small equipment stuff. Mr. Bynum: Thank you very much. Chair Furfaro: We're going to go around the table with two incremental questions for each member. Does anyone want to take some time now? I see Mr. Kualii checking his score card over there.Are you ready for any questions now? Mr. Kualii: Is this the right place to ask about positions for automotive? Chair Furfaro: It sure is. Mr. Kualii: Yes. Chair Furfaro: Yes and then councilmember Nakamura after that. Mr. Rapozo if I step out can I ask you to continue to dialog? April 16, 2012 Public Works (Operating & CIP) continuation p.7 Mr. Rapozo: Sure. Mr. Kualii: Thank you Mr. Chair.Aloha and good morning and thank you for all your work. You have mentioned the dollar funding of the repair shop supervisor position. Can you tell me how long it's been dollar funded and vacant? Mr.Adachi: For the past 3 years it's been dollar funded. Mr. Kualii: Is there other current dollar funded vacant positions that is being budgeted and proposed to be filled? Mr.Adachi: Not for our division. Mr. Kualii: Are there any other vacancies that are proposed to be filled? Mr.Adachi: Currently I have a vacant welder position and a vacant body repair position. We are using the funding from those positions to fill the supervisor position. Mr. Kualii: So you said a vacant welder position? Mr.Adachi: Right. Mr. Kualii: So that is position 1338? Yeah okay in the Department of personnel services from their report from December 31 up to December 31 they put fund dollar funded repair shop supervisor. So position 1338 which is a heavy auto and construction equipment welder which has been vacant since 10-1-2009 is being reallocated to have the funding for the supervisor? Mr.Adachi: We just transfer the funds so that... Mr. Kualii: Like lapse surplus funds wasn't used because the position was vacant and it was budgeted for... and you're utilizing those funds to now fill the dollar funded positions? Mr. Tabata: Maybe I can answer. When Larry and I reviewed Dwayne's operation last year after last year's budget was approved, we felt very strongly that he needed another person to help him. So we took the funding from these two vacancies 1338 and 1342 and we funded and we hired consequently a supervisor for him. Once you approved our budget the dollar funded position would then be funded and we will fill these two vacancies with personnel through the recruitment process. Mr. Kualii: So it's just a temporary use of the surplus funding? Mr. Tabata: Right and we do intend to fill this position with the new fiscal budget. Mr. Kualii: You intend to fill both positions? Mr. Tabata: Yes. Mr. Kualii: The welder and the body and fender repair. April 16, 2012 Public Works (Operating & CIP) continuation p.8 Mr. Tabata: Right. Mr. Kualii: Okay. What about 1336 which is construction equipment mechanic 1? Personnel show it as vacant since November 1, 2009 and in their recruitment status they say... I'm sorry 1336 vacant since November 1, 2011 so just last year the end of last year, not recruiting no request receive county funded. So it just went vacant in November of last year? Mr.Adachi: Yes. Mr. Kualii: Someone retired? Mr.Adachi: A mechanic retired and we plan to fill that position in the future. Mr. Kualii: What was that? Mr.Adachi: We plan to fill that position in the future. Mr. Kualii: Have you been experiencing delays with recruitment with department of personnel services and knowing that it might take 6 months or more, when are you going to get them started in recruiting? Mr.Adachi: We're working on it right now. Mr. Kualii: Working on it right now. Okay thank you so much, thank you Mr. Chair. Ms. Nakamura: Thank you for your presentation and your work in trying to expand the facility. It seems like you added 6 thousand square feet over the past year to increase your operation? Mr.Adachi: That was property that we had that was unusable because it wasn't really paved it was overgrown, so we cleaned it up and paved the area and we're using it for storage now to get some of the equipment out of the way so we can free up our operating space. Ms. Nakamura: So do you do the automotive and heavy equipment for all of the county agencies? Mr.Adachi: Well with the exception of the Fire Department, who has their own mechanic, Transportation has their own facility, the Water Department has their own and we take care of everyone else. Ms. Nakamura: So Police goes to you? Mr.Adachi: Right. Ms. Nakamura: Okay and I also noticed that you're also doing procurement for all the vehicles and heavy equipment? Mr.Adachi: I do. April 16, 2012 Public Works (Operating & CIP) continuation p.9 Ms. Nakamura: I'm just wondering, what thing we're hearing from other departments is the difficulty they have and the length of time to procure a lot staff get assigned the procurement responsibility but it's only a part of their job or their not really experienced in it and therefore it takes awhile. I'm just wondering do you feel that you have adequate capacity to do procurement. Does it work out fine with you? Mr.Adachi: Yeah it's just that the process has a course to go through and so it's just the time it takes just to complete the process. Mr. Dill: One thing I will add their too is the one reason Dwayne's been stretched thin is because he hasn't had a supervisor and that's takes away from his management duties which is the specifications and procurement of the equipment. Ms. Nakamura: Okay. Mr. Dill: So taking the supervisory off his plate will allow him to do those things. Ms. Nakamura: And that's your responsibility is the procurement? Mr.Adachi: Correct. Ms. Nakamura: Okay that was my 2 questions. Chair Furfaro: Does anyone else have any questions, if not I have 2 that I will pose now while others are contemplating other questions. On the fuel system that you are projecting a 32% increase in diesel fuel usage and an 18% increase in gas usage, how much of that is related to the change in prices?And how much of that increase is related to expanded travel time? Mr.Adachi: Usage remains the same it's just the cost that is the reason for the increase, the price of fuel. Chair Furfaro: So we're anticipating which usually will peak in August we're anticipating that whole increase will somehow come into this summer and that what we're going to forecast for the rest of the year? Mr.Adachi: We have no way of projecting the cost or where it's going to go. Chair Furfaro: But typically our records do indicate that the peak of fuel pricing occurs in July and August and we have gotten there yet. Mr.Adachi: It still going up. Chair Furfaro: Okay and so that's the same rationale on the 18% increase in gas? Mr. Dill: Yes and also Council Chair you may note that the budgeted numbers of five hundred fifty thousand, three hundred and eighty five and we are burning that faster than was projected last year. April 16, 2012 Public Works (Operating & CIP) continuation p.10 Chair Furfaro: Yeah I can see it's about 16% higher in your first six months and we haven't ended the year yet and it's already high. I was just trying to find out if any of that is expanded in the number of vehicles or the kind of traveling we're doing but it's all related to fuel cost, the pure and simple cost of fuel. Now Larry because I have set up an extra revenue model for this new budget sequence and I think we're coming up on it tomorrow. I will be giving you a copy of all the revenue pieces and this is not about property taxes so solely this is about all revenue. Do you folks have an idea of where we are at with the county fuel tax or should I save that question for another day? Because as the fuel prices go up everybody notices that less fuel is used and people are being more conservative. The county's share of the fuel tax doesn't necessarily align itself with the actual increase in fuel. Do you folks have an idea of the projected county fuel tax revenue? Mr. Dill Well after our meeting Friday afternoon we did do some quick looks at our projections this year versus last year and I haven't has a chance to analyze it but... Chair Furfaro: Well than we'll save it for tomorrow. Mr. Dill: Okay alright. Chair Furfaro: We'll save it for tomorrow I would rather you have the time as we put in our schedules and try to guess it. We'll safe it for tomorrow. Questions, Mr. Rapozo you have questions? Mr. Rapozo: I just have one and I apologize I was at an appointment in the morning so I stepped in late so if you did answer it I apologize. Regarding your vacancies, one of your challenges are the vacancies, when do you anticipate having those all filled? Mr.Adachi: As soon as if we get the funding reinstated for the dollar funded position we plan to move forward with the hiring of those 2 vacant positions. Mr. Rapozo: And typically how long does that take you? I know because every position is different here with testing and different types of screening but for your positions, is there basically a back log or? Mr.Adachi: I don't know it's hard to answer that question right now I'm not sure exactly how long it will take. Mr. Tabata: I can answer that. We've been typically anywhere from 2 to 3 months. We try to be more proactive in our effort to recruit and assure the hiring practice along. If I typically don't get feedback I follow up myself and I help the process. Mr. Rapozo: Okay and the vacant positions that are being funded, those are 8 month funded not 12 month right? Mr. Tabata: Well our vacancies right now and we kind of discussed this earlier are being used right now to fund the supervisor. Mr. Rapozo: Correct but I'm talking about going forward July 1, if what your budget is submitted includes funding of those 2 positions correct?And the supervisors position? Mr. Dill: At 12 months. Mr. Rapozo: Oh it's at 12 not 8? 1 April 16, 2012 Public Works (Operating & CIP) continuation p.11 Mr. Tabata: Ours is at 12 months. Mr. guys Rapozo: You u s at 12? p g Mr. Dill: For this division that's right. Mr. Rapozo: That's fine I know some of the positions I noticed was 8 month funding and I just wanted to know that. The other question is you talked about another challenge of not enough days you got 10 technicians and 8 days so what do those 2 technicians do on a typical day is your days are all full? Mr.Adachi: We share workspace and try to fix as many vehicles as we can. Mr. Rapozo: Right and so some technicians are actually doing work outside of the bay? Mr.Adachi: Sometimes yes. Mr. Rapozo: I have been down there many times in the past and those guys are hard workers and I guess the frustration is like you said we've out grown that space. Years ago I suggested that we try to create another facility for public safety for police and fire so that their vehicles get addressed at another location. I'm not sure if that's even feasible but I know that's a concern for some of the police officers that the turnaround time for the police vehicles sometimes is a long time. For the non public safety sector does it really matter? Mr.Adachi: We average about four and a half days. Mr. Rapozo: For the police? Mr.Adachi: For overall. Mr. Rapozo: Oh overall, so the police don't have a separate priority schedule or if they come in they just go into the rotation schedule like everyone else? Mr.Adachi: Right. Mr. Dill: We did have a meeting with the folks over at the police department because they had some of the same concerns you are mentioning and we are working with them to create some protocols to allow us to better meet each other's needs. Help us to help them sort of thing. So I think we're improving in that regard concerning the police department. Mr. Rapozo: I haven't heard too many complaints lately but I know it's always a concern. Mr. Dill: Good and yes it's always a concern. Mr. Rapozo: Like I said for the County Clerks explorer it really doesn't matter if it sits there. We would like to get it done but I think the public safety vehicles come first and we have to get them back on the streets. That's all I have Mr. Chair, thank you. April 16, 2012 Public Works (Operating & CIP) continuation p.12 Chair Furfaro: Okay, Vice Chair Yukimura and on that note Mr. Rapozo I'm going to have to step out could you coordinate the meeting? Ms.Yukimura: Thank you and congratulations for your success of meeting the needs and demands of the different departments because that's your core function and if you're doing that that's commendable. I know that you've addressed some of the challenges as well so we know there's room for getting better, but related to that is your future capacity and you've identified that as a challenge and you've mentioned it as an upcoming initiative. I think this analysis of workplace facility capacity is very important and I'm glad that you've identified it, it sounds like it's not fully activated yet but my question is, do you have what you need in this year's budget to support that or is there anything that's needed? Mr. Dill: Well the immediate thing we're doing is Dwayne had one of his highlights was we're looking at something we can do within the existing billing footprint to create more workspace. So that would be an immediate need that we had budgeted or requested budgeted for this year. We are having at this point discussions longer term and currently the auto shop is a 5 day a week operation so we're discussing the possibility of going to a six day a week operation. That might be a way that we can utilize existing space more efficiently. Also on the table is and my very conceptual discussion is how we might build a facility which of course would be a significant investment on the county's part. So that's kind of where we're at with those things. Ms.Yukimura: You know these related items that come up and this idea of a separate facility for police but that's means a whole... well either way it means decentralized so all the issues that come up with that in terms of supervision and so forth. Those are the kind of long term things you need to look at and even the bus system looking at decentralized facilities which you may or may not know about. That's coming up in their long range planning so there might be some opportunity for joint usage if there are decentralized or separated by function. Those are kind of all the different parameters you have to look at if you're doing this long range 20 years planning maybe. I don't know if you need particular help with a planning consultant or anything like that but that's just my question and you're saying not in this budget, but maybe in future budgets? Mr. Dill: Right. Ms.Yukimura: Okay and I loved the idea as you have identified performance metrics in your upcoming initiatives?Are you saying that you're going to identify, you've identified 4 right here and is it are you saying in this initiative you're just trying to turn these initiatives faster, I mean these performance metrics faster? Mr. Dill: Well generally speaking that's correct and we need to understand how we're performing and if we're lagging then how we can address that. We are 1 working with IT now to come up with a way for because Dwayne uses the worker order system through the S-400 how we can generate a report for us on the regular automatic basis and he'll be able to check and have a number every month to see how his performance is versus those metrics. Ms.Yukimura: Yeah I think it's the management guru damming who said what you can't measure you can't manage, something like that and so you're trying to identify these parameters and measure them is very commendable. I had one more question If I may then I'm done. Is that's okay?You do have a replacement schedule for all your equipment right? Mr.Adachi: Right. if April 16, 2012 Public Works (Operating & CIP) continuation p.13 Ms.Yukimura: Okay and that you're following or you're using that more or less as a guide? Okay excellent thank you very much. Mr. Rapozo: Okay anyone else?Mr. Kualii. Mr. Kualii: Thank you, just one more quick one. So in your narrative on the successes and achievements you listed some of the vehicles and equipment, when I looked at the budget on page 228 it has the line item for lease and its going from two hundred thousand to five hundred thousand. So the three hundred thousand increase addresses that vehicles and equipment, there's a long list of detail like it says second of three year lease at 39 thousand but it doesn't say what vehicle or equipment it's for. I'm curious also about the annual cost so the new leases for the following equipment amounts to over four hundred thousand dollars and it has several equipment and not all attributable specifically to you I guess but can you tell me a little bit about the equipment that is yours. Maybe this is also a request for finance as sort of a lease schedule because I.would be interested in the new leases... Mr.Adachi: I think what you're looking at is the amount that we pay yearly for the leases that we're responsible for. Each year we enter into a new lease agreement for the new vehicles that we purchase so that's the current amount that we owe the bank for the lease. Mr. Kualii: I don't know if you can see this budget but it can't be these amounts because it amounts to well over the four hundred thousand dollar amount. It looks like over a million maybe so I'm thinking it's the value of equipment over time but it doesn't show the monthly amount that we're actually paying, or the number of years I don't know are all the leases six years? Mr. Dill: Councilmember the list of equipment you see on page 229 is what you see there is the purchase cost. Mr.Adachi: That was what was budgeted for to purchase this equipment. Mr. Kualii: Right but then the five hundred and two thousand is the annual lease cost including the previous lease and the new lease and I would ask and those are Finance Director really sort of questions. Mr. Kualii: Yeah but when you say that is the purchase cost, we're not purchasing. Mr. Dill: Correct we're leasing. Mr. Kualii: So that would be the cost if we purchased it? Mr. Dill: Correct. Mr. Kualii: So it would be interesting to see the breakdown of what is the lease payment for each of those pieces? And how many years is the lease good for so when we negotiate a contract we're going to pay this amount for 6 years? Is the first year? Mr. Dill: Right. Mr. Kualii: The other thing is so the cost per year the number of years and whether at the end of the lease we own the equipment or not or do we have a buy option of what it will cost then. So if it's a finance question I can... April 16, 2012 Public Works (Operating & CIP) continuation p.14 Mr. Rapozo: Wally if you can I think this is similar to the question I asked a few days ago that it's a lease to purchase program. Mr. Rezentes: Yes in the end we own the asset. It's a five year term and like it was said earlier the prices or the cost items per equipment on page 229 is our best estimate at this time before procurement on what the items will cost us. On page 228 the four hundred sixty two thousand, two nine two, that is the annualized cost of the lease, estimated annualized cost of the lease for a five year term. I apologize we should have said that it would be for a 5 year term of these. We will definitely update that for the May budget submittal too. I'm sorry Wally Rezentes Jr., Director of Finance. Mr. Kualii: Okay that helps some thank you. Mr. Rapozo: Thank you any other questions for auto shop? Go ahead Councilmember Nakamura. Ms. Nakamura: Because the diesel cost has been probably your single largest increase in this division from five hundred fifty thousand to seven hundred thirty thousand this coming year. I was just wondering we are sort of stuck with paying this fee because of the type of equipment that we're running but are there development in the market to move towards other types of fuel sources for these types of equipment?You know like with cars there are alternatives now that we can look at. Mr.Adachi: Well currently now and you are referring to the hybrid, there is not much in the marketplace right now, basically you're looking at the fuel consumption for diesel is refuge trucks or truck tractors, fire trucks, heavy equipment, construction equipment. Basically the alternative fuel in that application would be bio-diesel right now but we went down that path a few years ago and we ran into problems not being able to procure quality fuel, quality bio-diesel. Ms. Nakamura: Right. Mr.Adachi: So we had to put that program on hold because the fuel was starting to damage our equipment so we're right back to our only option is just ultra low sulfur diesel. Ms. Nakamura: So until the technology catches up to where we have a higher quality fuel at commercial rates... Mr.Adachi: Or we could get some type of quality bio-diesel delivered to the island right now, which was what Councilmember Yukimura referred to Pacific Bio-Diesel which is on Maui. There is no outlet here for their product for us to procure. Ms. Nakamura: So is that algae bio-diesel facility not... is that still in experimental phase or? Ms.Yukimura: I don't think you call it bio-diesel. Mr. Rapozo: It's jet fuel. Ms.Yukimura: Yeah it's jet fuel. April 16, 2012 Public Works (Operating & CIP) continuation p.15 Mr. Rapozo: They're making jet fuel. Ms. Nakamura: Oh okay. Mr.Adachi: That's not the type of fuel we use. Mr. Rapozo: Unless we buy rocket powered tractors and maybe we can get the recipe from North Korea. For anyone watching that wants to get into the market of bio-diesel an opportunity sits there but right now it's just not available. Mr. Tabata: I guess to add on to Dwayne's remarks; our challenge has been getting the product delivered to our island at a reasonable cost. Mr. Rapozo: And quality. Mr. Tabata: And quality yes. Ms. Nakamura: Thank you for clarifying. My last questions is I think the metrics is good because it tells us what our baseline is but it would be good to also see where you want to be and what are your goals. If this is the baseline metrics for accident rates or vehicle turnarounds, equipment repairs turnaround. Where do you want to be when you're fully staffed?You don't have to answer that now but if you want to that's fine. Mr. Dill: Will look into that. Mr. Rapozo: I think four and a half days is great if you can turn it out in 4 days it's better than... that's really, really good, that's very, very acceptable.Any other questions? Go ahead councilmember Yukimura. Ms.Yukimura: Yes I fell like there has been improvement so we do appreciate that and want to encourage you to keep moving in that direction. Just in relationship to the questions about bio-diesel. I agree with you that it is about that delivery at a reasonable cost and long range right now it's a matter and I think even Pacific Bio-Diesel's facing it and it's a matter of source of bio-diesel. You are either going to get it from recycle vegetable oil or from some kind of a plant and they're still in an experimental phase on that. But preserving Ag land so we can actually have economically viable bio plant material for bio-diesel is going to be one of the future issues I think if we want to be able to produce it on island. I think it's worth talking and I'm just thinking gosh maybe we could finance as a county project for county fuel with federal monies just experiment that might be able to find out what is the best plant, what is the best bio mass source and actually run some experiments. Doing it with people like Pacific Bio-Diesel, who are doing this worldwide? Thank you and that's Kelly and Bob King, thank you. Mr. Rapozo: Any more questions? Thank you very much, Mr. Chair. Mr. Furfaro: Thank you, thank you Mr. Rapozo. So can we go into highways now Larry. Larry I'm going to have to break away to meet with Wally Rezentes for a few minutes at 10:30, but before I do I want to pass out to all the members the sub categories and agendas for tomorrows revenue review which I hope you'll tighten up those questions I asked earlier for tomorrow.Are we going to have a power point presentation? Mr. Dill: Yes here we go and there's the first slide right there. April 16, 2012 Public Works (Operating & CIP) continuation p.16 Mr. Furfaro: Okay I'm going to relocate myself. HIGHWAY DIVISION: EDWARD RENAUD, ROADS ADMINISTRATOR: Good morning Council Chair and Councilmember's, Ed Renaud for the record. Island wide resurfacing, this is one of the first times we have incorporated the road reconstruction work and this is a needed process because we're going to get more life out of the road on the resurfacing so it's going to work perfectly. Besides this we have other things to do on the shoulders and all that stuff but with all the multiple things to improve its going to work out real well. The levee, the Hanapepe levee has been turned around like you all know in November so I thank everyone for that. Waimea is coming on board, highway gates are coming on very shortly in May and we've already started with the contractor out there with other gates that need to be installed, cleaned or whatever. We are looking at a completion date of June but we have until July and in July we do the inspection with the core of engineers to close that project. We have completed, roads operations has completed discrimination harassment training with their members. Emergency response training with their supervisors and ADA accessible improvements of the base yards has been completed by The Building Division, thanks to them. Vehicle equipment training has been ongoing and going on real well. Major responses to storm events from March turns around real well and we're just waiting for the final assessment from State and FEMA assessment. Roads Division, we are in implementation of micro paver management system and its working out real well but we're looking at other resources to assist the program so this way we can have an updated of our county roads island wide. We are implementing a maintenance program so this way we can be accountable all of us in roads division. DIS is ongoing and this is one of the systems we are working with and it's going out very shortly for a bid proposal. We are also working with IT, they did some training or they did a contract and we are working with them on what they have available to assist roads with. Reorganization of the field a (inaudible) man power that is ongoing and we believe with this dedication that we are going to turn around the levee's in a more time available so we do away with the overtime. Special construction section is a must to have so we can put it all in one so called section and we can do specialized work there. Traffic signs and marking there is no change but it will be under that section. Equipment to istics we have equipments, J ust one equipment that we service all the base yards so by putting it in this section it will be on a schedule but we can help all roads different districts besides county wide. Bridge maintenance, we are looking at bringing that up to speed and working hand in hand with engineering. Okay operation, budget, fuel cost I believe we went over that already unless you have any questions we can go over that. Chair Furfaro: We will hold questions to the end Ed. Mr. Renaud: Inflation and additional lighting and I think that was answered last week with assistance. Increase in equipment lease, the new equipment we're bringing on is to help the field so we can move better in our operations and get more projects done. Staffing, I will leave it up to Administration I won't discuss anything on that, I don't know anything about that. Okay that's it any questions please? Mr. Furfaro: Ed I'm going to ask my colleagues to bear with me I've got several questions before we go to our 2 pair question because I have to step out with the County Attorney and Wally Rezentes. But first just a comment on the emergency response to the storm event, when do you think we're going to see a final statement? Is it all being and maybe Larry can help, is it all being coordinated with Civil Defense? When is the goal for the council to see what the thresh hole was on the emergency responses? April 16, 2012 Public Works (Operating& CIP) continuation p.17 Mr. Dill: You're correct Council Chair Civil Defense is takin g the lead in coordinating all of that. I know that they are planning to come to council I believe on Wednesday to address that. Chair Furfaro: Okay are you current with all the information they requested from you? Mr. Dill: Yes we've provided all reports and assessment as to damages in the report. Chair Furfaro: Okay so again just a note thank you for the response and the work done during that period of time. Is this a correct assumption now, we are in fact doing one ton of asphalt per one hundred and eight square feet of road service? Mr. Renaud: That is the correct plan. Chair Furfaro: That is correct, okay. Now where is your roads group based? Are they based mostly in Kapa`a, and from Kapa`a, they go to Anahola all the way to Puhi? What is the status of your team? Mr. Renaud: Okay I will give you the breakdown, the Southwest side goes from Mana to halfway bridge, from halfway bridge to Anahola river is Kapa`a. Chair Furfaro: To Anahola River. Mr. Renaud: Correct. And from Anahola Bridge it goes all the way out to Ha'ena. Chair Furfaro: Where are your people based? Mr. Renaud: The first portion or southwest is Hanapepe base yard and that's considered a large base yard, the next group is the Kapa'a base yard and that's similar in size... Chair Furfaro: You have numbers for us? How much of your staff is in Hanapepe? Mr. Renaud: Hanapepe we average 28 people. Chair Furfaro: Twenty eight okay. Mr. Renaud: That's with refuge and everything. Chair Furfaro: That includes refuge? Mr. Renaud: Correct and in Kapa'a we average about the same and in Hanalei we average about eighteen. Chair Furfaro: And in the scope of this staff, what tasks do they take? What tasks are assigned to them besides roads maintenance? April 16, 2012 Public Works (Operating & CIP) continuation p.18 Mr. Renaud: Basically •it's roads maintenance; number one is roads maintenance, anything from roads and anything out there. The second thing is we support solid waste, we support other county agencies whether it be parks or whoever that needs our help on a scheduled thing and that's how we move around. Chair Furfaro: If I recall as we automated our team you were going to use less and less for solid waste. Is that correct? Mr. Renaud: Correct. Chair Furfaro: Is that correct? Mr. Renaud: Yes. Chair Furfaro: What I've end take is all the tree trimming and everything that this roads group does falls in their scope but can I ask you with the small equipment that we're getting I see it's a local practice it's a local culture it's something that we all grew up with but we still use machetes? Aren't we going to get small equipment for these gentlemen's so we can increase productivity? Mr. Renaud: We still use machetes? Chair Furfaro: Yes. Mr. Renaud: We only use machetes in most of the time if we're trimming trees we're using chain saws. Chair Furfaro: Okay well I have to tell you unless I was in a time warp I just saw this last week. So I want to make sure if we're going to set a small equipment base that we're getting enough equipment for you folks. Mr. Renaud: I believe we have enough equipment out there and the only other thing I would say is if there is not enough then the district bureau should send in and have a meeting with me so we can discuss all this. Now before he comes in and he has things that are missing, stolen or lost, they have to come in with the reports and tell me why. That's the bottom line because there's police reports and everything that is needed before we can assist but the Administration has been real fine with this and at the end of fiscal we have bought some added chain saws and weed eaters, so that's one of the procedures. Chair Furfaro: I had a long discussion with the Mayor on this and I want to make sure if we're making this kind of investments in small tools that we in fact are going to use the tools that are suppose to improve productivity. It's a pretty substantial amount that we're investing in small tools. So you can assure me of that and if my colleagues can be a little bit patient with me I only have a couple more real quick questions. Ed typically we have authorized about 1.7 million dollars a year for road resurfacing, average, okay. Now understood we seem to have fallen behind about 3 years, now we have a pot of money that you folks have done a really good job in putting together a new schedule for us and everything. What area's is that going to cover and when typically do we do that work? I made a statement the other day and I want to make sure I'm repeating what I heard that usually we wait until the rainy season is done and we start road resurfacing sometime in May, is that typically when we start? April 16, 2012 Public Works (Operating & CIP) continuation p.19 Mr. Renaud: Right now we don't have the contract, the contract when I did check into it everything was ready to be processed or presented over to roads. I think by the end of the week I will have that contract in hand but before this we had meetings and our low bidder was Grace Pacific and I ha meetings with them for pre-schedules and things like that. When we sat down on the table we were talking something like May or June, but last week I found out they had a change in reorganization of their people so whoever was in charge of Hawai`i is not there anymore. We are scheduled to have a meeting very shortly as soon as I receive the contract this week hopefully its next week to sit down with whoever is going to run the projects. As soon as I can push that out that's my number one goal. Chair Furfaro: Okay so there's no deviation from our hundred and eight square feet, one half inch covering per ton. The two main people here are Grace Pacific and Glover? Mr. Renaud: Yes. Chair Furfaro: And they both bid on the job? Mr. Renaud: Both of them bid on the job and the low bidder came out to be Grace Pacific where this is one of the first times they have taken all of it Island wide, usually its divided but this time they took it all. Mr. Chang: I'm sorry what was that? Mr. Renaud: They took the whole island wide resurfacing and it came in really well. Chair Furfaro: So you can see my concern, we got 3 years of resurfacing to do, one contractor and I think the money in the pot is 6.3 million. Are they going to be able to get us caught up in that time frame with that amount of work to the specs that we gave them; Do you folks feel comfortable with that? Mr. Renaud: Well the thing is when I first sat down with them before they did the reorganization I was comfortable but right now I need to sit down with whoever is going to be in charge and their people from Honolulu because I have to be reassured before we go there that they are going to supplement me on the conditions that we just stated and in a timely manner. There are other projects they have on island, for example our Koke'e Road and I personally am not involved in Koke'e road my only concern is Island wide resurfacing and that's where I'm at. The thing is if we can get it on time and everything I will be okay, but if they tell me no I'm going to request to have a meeting with whoever and I will make sure administration is with me and for them to bring another crew from another island to assist this because I don't want this to be stretched on. Chair Furfaro: Okay and I don't either, after I saw ken stokes article that we have some of the worst roads in the State, our County, I don't want another 3 year period to go by because they couldn't get the job done after we've given this money aside to get us caught up. I'm assuming at this point the 6.3 million dollar 3 year pot that we have there is going from late May or early June and its going to carry us through September and we're going to be able to do that work. You are confirming that right? Mr. Renaud: I'm going to confirm that. I am confirming that period. Chair Furfaro: Larry you told us about the preparation of the overhang on the roads in particular some of the narrow roads up at Waipouli and... what's the road that Glenn April 16, 2012 Public Works (Operating& CIP) continuation p.20 lives on? Olohena and we are always hearing about nobody prepping the sides of the road. In this job scope who is doing the road prepping? Mr. Renaud: We are going to do it and looking at the North Shore the road prepping out there is simple it's no problem. Chair Furfaro: Because there's no shoulder. Mr. Renaud: I walked every road and looking at the South West Side is similar, the biggest work we had on preparing the road is going to be on the Kapa'a District. Because of the Kawaihau and all this stuff we are paying a lot of money to get the road repaired in the proper way and in those areas the shoulder need to be improved and that's the biggest problem out there. Chair Furfaro: But like upper Waipouli and so forth we're going to prep the shoulders and get it... Mr. Renaud: Oh yes. Chair Furfaro: Okay I'm good with that. Now I want to confirm these numbers one more time because I'm going to look at it with aficionado of staffing guides which is Mr. Kualii, he has a keen eye for this, Hanapepe approximately 28 people? Mr. Renaud: That's what we have now. Chair Furfaro: Kapa'a approximately 28 people? Mr. Renaud: That's what we have now. Chair Furfaro: The Hanalei base yard approximately 18? Mr. Renaud: Correct. Chair Furfaro: Thank you very much. Mr. Rapozo I'm going to turn the meeting over to you when I step out for a meeting. Thank you for letting me asks my questions upfront. Mr. Rapozo: Any other questions, if not thank you very... Mr. Bynum. Mr. Bynum: I want to follow up with Jay for a second and you and I have talked about this over the years Ed. When you say prepare for, so prepare the sides of the road for the contractor to come in is that like clearing the brush away and giving them a clean work surface and subsequently when as my understanding the asphalt has to cure for a period of time before you redress the side. Who does that side redressing after the concrete? Mr. Renaud: On county roads this island wide resurfacing is going to be the county. When we do collector roads the contractor themselves will be the person doing that portion because the collector roads are much busier then the county roads. Ili Mr. Bynum: So, on the county roads we need to come back after the asphalt has cured for a period of time and make the side of the road level with the pavement right? jaVOSENISUMMUNKONNOOMANNO4Mr - 4_.z mow- "' _- April 16, 2012 Public Works (Operating & CIP) continuation p.21 Mr. Renaud: Let me go one step forward, I did not explain, my apology. In the Kapa'a area right now the shoulders are very high so what happens is the water comes on to the edge of the road. What we need to do is have the water go off the road and be in a swell of that position and that's what we are going to do there. I believe we're going to have to go to every house and let the residents know what we're doing because it's going to be a drastic change and so that we can have water away from our roads. It's an educational portion for our roads people and it's also something that will keep the life of our road. Mr. Bynum: Okay so you come in and prepare the road for the contractor to come and the sides are dressed then the asphalt comes in so it raises it this far, so there's a period in time where there's a drop off right on the edge of the asphalt and it needs to be that way for awhile until it cures. Have I got this right? Mr. Renaud: Yes. Mr. Bynum: Then we come in and redress the sides of the road by bringing gravel, dirt whatever, so now in the future when the water comes off the road it doesn't pull right next to the asphalt it moves into its intended place. Mr. Renaud: Correct. Mr. Bynum: So when the water is collecting immediately adjacent to the asphalt, that bad for road maintenance right? Mr. Renaud: Correct. Mr. Bynum: So I assume you do some ongoing maintenance when you're aware of those areas in between resurfacing, saying "hey" look the roads not dressed properly, the water is pulling and it's a safety issue as well right because tires go off of the roadway into water or whether they can get thrown off. That's been an issue for many years and for many years we never did it and you know that history but we're doing it now. Mr. Renaud: We're going to do it, yes. Chair Furfaro: I'm going to step out and Mr. Bynum has given me a moment here. I'm going to pass out Larry this is in preparation for the revenue presentation tomorrow. I'm just going to distribute the memorandum that details those areas that we're looking for, you'll get your copy, Clint will get a copy and so forth, but just so that there's clarity about the revenue parcel in tomorrow's presentation. Thank you Mr., Bynum for giving me the time and Mr. Rapozo I'm stepping out now. Mr. Bynum: So back to my main question I was following up on this service and I just want to make sure I understood it and who's doing what. Going forward we can anticipate a resurfacing contract every year? Mr. Renaud: I don't see a problem, we just have to get our micro paver program online and there are a lot of other things we need to do to get that ready. Once we have this report coming in it's going to be much easier to look at island wide and what the problems we have in every district and this is how we're going to base our roads with the number of dollars we receive. So we are going to each district but before we can get there we need some inventory done and we are looking at consultants on the outside that will be out very shortly. April 16, 2012 Public Works (Operating & CIP) continuation p.22 Mr. Bynum: I just wanted to go over a couple of things that in my mind are improvements that the roads division had made over the last couple of years and make sure I get it right. Right now we are optimizing our federal monies by identifying collector roads where they can be federal reimbursements and we're also in dialog with the State about how those roads are labeled and making changes where necessary and a large by that effort is to procure as much federal financing as possible. Have I got that right? Mr. Renaud: Correct. Mr. Bynum: I just really want to acknowledge the leadership from roads and the team for going there. It's also my understanding that we're looking at the base underneath the paving more thoroughly and where patching needs to be done prior to resurfacing. In the past we kind of resurfaced over weak areas and now we're defining those weak areas and doing improvements prior to resurfacing. Have I got that right? Mr. Renaud: That's right. Mr. Bynum: And that's an improvement that I've seen under this leadership and so it may mean that our costs are higher per mile but then those roads are more likely to remain safe and stable for a longer period and in the long rum be of cost savings. Just for my point of view, thank you, it's much better to do 3 miles properly then 4 miles that we have to revisit 10 years sooner than we would have had too. I'm really surprised Mr. Mickens isn't here today because he's been on us about these issues, sometimes correct sometimes incorrect in my view but there really has been a responsiveness from roads. The down side was we missed a year or two in roads resurfacing that kind of caught me unaware at one point and that's why my initial question going forward, you have all these initiatives in place but we can anticipate a roads resurfacing contract virtually every year, if there isn't a heads up about why you would want to skip a year. Other then that I have a whole bunch of laundry list of smaller questions I can do offline and I see the changes and I appreciate it very much. Mr. Rapozo: Thank you, Mr. Kualii. Mr. Kualii: Thank you Aloha and Mahalo Ed, Mahalo for the work that you and your division do. My questions like the chair (inaudible) are pretty specific on positions and in starting with the Hanapepe base yard I see several vacancies and again my report is from 12-31 end of eleven so if the position has been filled maybe you can just say so and when it was filled. 860 equipment operator 4 BC-11, forty seven thousand nine hundred, vacant since 7-1-2010, DPS status was names referred personnel names referred 10-12-11 filled. Has that position been filled? Mr. Renaud: 860? Mr. Kualii: Page 212 Hanapepe base yard. Mr. Renaud: What was the position number? Mr. Kualii: 860. Mr. Renaud: 860. Mr. Kualii: Equipment operator 4. April 16, 2012 Public Works (Operating & CIP) continuation p.23 Mr. Renaud: Yeah I know I'm looking at my... 860 is part of reorganization and its moving from maintenance to levee. Mr. Kualii: Maintenance to... Mr. Renaud: Levee, the levee's yeah. Mr. Kualii: Okay. Mr. Renaud: I don't know if it was filled. I don't think it was filled, but the thing is it's going to be for we have an excavator there an older excavator and that excavator has been turned around to be a flare attachment on it so it can extend out so it can do both the levee's on both sides of the slopes instead of using manpower. It's much faster with that and we've been having a little problem with the excavator but the shop has been real great in turning it around, it's an older model but it's something different that we have been trying to do to cut back on manpower. Mr. Kualii: In the reorganization the position title will remain the same and the salary will remain the same? Mr. Renaud: No it's going to be changed to 4, Equipment Operator 4. Mr. Kualii: 860 is Equipment Operator 4. Mr. Renaud: Yeah it's in our budget. Mr. Kualii: So it will stay the same? Mr. Renaud: Yes. Mr. Kualii: The next one is 939 Laborer 2, it was vacant since 3-1-11 and personnel status on 12-31-11, was to be filled 1-3-12. Was that filled on 1-3-12? Mr. Renaud: I believe so;I believe all laboring positions have been filled. Mr. Kualii: And 940 Laborer 1 was vacant since 11-7-11 and it said not recruiting, no request received.Are you currently recruiting? Mr. Renaud: Yes we are. Mr. Kualii: You have requested and it is being worked on by personnel? Mr. Renaud: Correct. Mr. Kualii: Same thing for 9-4-01, Equipment Operator 1? Mr. Renaud: Correct. Mr. Kualii: And position 872 Equipment Operator 2, vacant since July 1, 2010, it says the status was pending discussion with department. Mr. Renaud: Correct that's one of the ones that is going to the levees. April 16, 2012 Public Works (Operating & CIP) continuation p.24 Mr. Kualii: 872, is going to levee also? Mr. Renaud: Correct. Mr. Kualii: And the last note down here says (inaudible) supervisor 1 is being transferred in from Kapa'a base yard? Oh out to Kapa'a base yard. Yeah that's why there is no dollar amount in that position and we should see that in Kapa'a right?And 835... wait a minute, oh that's the same one okay lets jump to Kapa'a base yard. There is only one vacancy according to personnel 847 Field Operations Clerk and it was vacant since June 30? Mr. Renaud: It's been filled. Mr. Kualii: It's filled? Mr. Renaud: Yes. Mr. Kualii: As of when? Mr. Renaud: April the 2nd first day of work. Mr. Kualii: So just a couple weeks ago? Mr. Renaud: Yes. Mr. Kualii: I guess Hanalei is next. The Labor Working Supervisor Position 955, vacant since 10-1-09 status on 12-31-11 was not recruiting, no request received. What's the situation with that? Mr. Dill: I'm sorry was that 955? Mr. Kualii: 955. Mr. Dill: That's was dollar funded right? Mr. Kualii: It says previously dollar funded start November 1, so is that going to be recruited and going to start November 1, 2012? Position 955 Hanalei base yard page 218 on the budget. Mr. Tabata: That's the position we're using to reallocate for the mechanic that's going to take care of the small equipment in transportation. Mr. Kualii: Position 955 so it's not being recruited into the Hanalei base yard to start on November 1 as a laborer working supervisor?It's being reallocated to what? Mr. Tabata: Transportation for the small equipment mechanic. Mr. Kualii: Okay so besides being reallocated you're also saying that it's being transferred to another area? Okay can you repeat that? Mr. Tabata: The reallocation is to transportation for the small equipment mechanic. April 16, 2012 Public Works (Operating& CIP) continuation p.25 Mr. Kualii: Out of Hanalei base yard to where? Mr. Tabata: To transportation for the small equipment mechanic. Mr. Kualii: Now just say that in the budget there's this little asterisks on the bottom that gives us little notes of what's happening but that wasn't noted at all so just to make a note of that. So if I go look elsewhere the reason why there's no dollar amount here is because it's being reallocated into transportation. The last thing is sign and road marketing, is that part of yours too? Okay so in signs and roads marketing there's a position.899 TS and Marking Crew Leader that was vacant just since October and personnel had a status of not recruiting, no request received. Is that currently being recruited for? Mr. Renaud: Yes that's going to be reallocated to special construction section re-org. Mr. Kualii: Is that changing construction uses but reallocated to special construction section? Mr. Renaud: Yes and its going to be under bridge construction and maintenance. Mr. Kualii: And the title and compensation will change also? Mr. Renaud: Yes. Mr. Kualii: So in the signs and roads marking budget, it is showing forty two thousand, eight hundred and sixteen. So unlike the other one we just talked about where no figure was showing because the budget will show up where it's being reallocated to and it is here, this is going out? Mr. Renaud: Correct. Mr. Kualii The forty two thousand eight hundred and sixty, and we'll see that in the next submittal.And the last position is the base yard attendant BC537, vacant since July 2, 2010 and it says on hold pending division re-org so what's happening with that position? Mr. Renaud: Excuse me could you give me that number again, the position number. Mr. Kualii: Sure it's 1063 Base Yard Attendant. Mr. Renaud: That's another one that's going to be part of the reorganization, 2 special construction section and it's going to be a part of the bridge construction maintenance. Mr. Kualii: So the thirty seven thousand dollars will be moving with that position? Mr. Renaud: Correct. Mr. Kualii: The only other thing and I might be missing it but on the total on the next page... oh its leased vehicles again probably. The Leased line item signs and roads April 16, 2012 Public Works (Operating & CIP) continuation p.26 marketing is going from five hundred forty two thousand to 1.2 million but there is no detail so I of course would want to see that detail. Again because it's leased and I believe it's the last page of the signs and roads markings budget section. Mr. Dill: The lease number is zero there and the signs and roads markings are the sum totals. Mr. Kualii: Okay I was just told it's actually the total not just for signs and roads. We already addressed that earlier, thank you. Mr. Rapozo: Thank you and before I get to Councilmember Nakamura maybe you can provide for us because it's very difficult to follow the transfers and the reallocations using the budget. There are several positions that Mr. KipuKai touched on that doesn't reflect it being moved and the perception is just going to remain in there so if you could provide and we will send over a question. Just provide us a spreadsheet with all the transfers because it's not lining up with what's being provided so I just want to make sure we understand where it is and I guess for me the most important thing is, what was the net effect to the department with these transfers and what the net impact was whether fiscally. I added up on our comparison sheet and its showing a decrease but I cannot imagine just going over what you just said with the upward allocations, I can't imagine a decrease.Again I believe some of the positions maybe transferred out of public works, so if you could make it real easy to follow chart of what staying and what's moving and what's leaving because I'm having a difficult time following and maybe it's just me. Councilmember Nakamura. Ms. Nakamura: Thank you and thank you for your presentation Ed and for the progress you are making on procuring the micro paver software. It's something you talked about last year and it looks like it's in place and the training has been done. What I wanted to find out is how long do you think it's going to take to do the data capture to make this software useable? Mr. Renaud: When we looked at the software the software is a really good software it's just documentation intense but then I researched and roads didn't have all the information because I want accurate roads with width, length, miles whatever, what's wrong with it, when we paved it and all of that. We found some but we didn't find anything that accurate so what we are doing right now any week now shortly within this month we're going out for our inventory upgrade on all of our county roads. With this we have different criteria's for example (inaudible) of the pavement roads what wrong with the 5 criteria's we gave them we want them to look at whoever the vendors are going to be with the bid. We also looked at all the existing signs what's out there, existing pavement, bridges, you name it everything and they come back with the information and the GIS layer and this way we will share with our engineering and our public works and whoever else. But we need this info so that everything we put in micro paver is accurate. Ms. Nakamura: So that's the contract you're going to be letting out? Mr. Renaud: Yes. Ms. Nakamura: And so the funding was in last year's budget? Mr. Renaud: Yes it was all part of the funding that was allocated to us. Ms. Nakamura: Okay and when do you expect the completion of that project? Mr. Renaud: The completion of that project we're looking at 3 months. April 16, 2012 Public Works (Operating & CIP) continuation p.27 Ms. Nakamura: Three months. Mr. Renaud: Well that's what I'm requesting of in the contract, 3 months turnaround. Ms. Nakamura: Okay. Mr. Renaud: There's an original of what we really need it for and the other one is an additive and if it comes within our budget than hopefully I can do all of it this time around. Ms. Nakamura: That's great. Also I wanted to find out because we actually are doing some catching up from previous years in this contract, so was it roughly 6 million dollars in this? Mr. Renaud: Its seven hundred thousand dollars I think we left on the table. I shouldn't have told Dickie that because he wants me to pave the whole island. But there's about seven hundred minus from the 6.1 that was allocated to us. I know Chair said 3 but my (inaudible) was 6. 1. Ms. Nakamura: How many miles is that generally? Mr. Renaud: Right now I don't have it with me, there are too many things but I would say... I think it was about 20 miles or so. Mr. Dill: If you can send that question over we can respond and get the right answer. Ms. Nakamura: Sure and I guess what I'm getting at is moving forward what is the metric for your department? I know you're doing not just the paving I mean you're doing the fix as well so I just wanted to get a sense of what do you hope to be able to accomplish. Mr. Renaud: Well my goal is very big and I think it's too big and I'm looking to do 30 miles a year. Before we can get there we first have to repair our roads the proper way. Once we get the repairs done then w can say we're moving that channel, now with that program on board it's going to help us with the information of the inventory. It's going to tell us everything that is wrong island wide of county roads and every district and we will go into this data and say okay we have about a million and a half and it's going to tell us the critical areas and... where we would have to address instead of going out and selecting this and someone says my road is this and my road is...This criteria by an independent vendor will help us. Ms. Nakamura: So it's really short term goals was to do the fix and once you have that in place then long term you could try and work towards 30 miles per year? Mr. Renaud: Correct. Ms. Nakamura: So it's just a matter of how long is it going to take to get us to that point. Mr. Renaud: I hope within 5 years and so that's why I think big and I'm trying to push that. Ms. Nakamura: That's great, thank you. April 16, 2012 Public Works (Operating & CIP) continuation p.28 Mr. Rapozo: Did anyone else have a question? Councilmember Yukimura. Ms.Yukimura: Thank you, you're 30 miles a year goal which I liked that you have a goal that makes everyone reach, but would that put us on a preventive maintenance schedule? Mr. Renaud: It would have to be on a preventive maintenance schedule and with some of the equipment that we are requesting for its going to help us get there. Ms.Yukimura: Do you mean that if we do 30 miles a year we will be in a preventive mode? Mr. Renaud: Yes we have to be because these 30 miles is going to be done correctly. Ms.Yukimura: Right and then you can depend on a more or less a how many year life are you? Mr. Renaud: Well it's supposed to be 10 year life. Ms.Yukimura: Roads are supposed to have 10 year lives? Mr. Renaud: Yes. Ms.Yukimura: And we have 3 hundred miles of roads? Mr. Renaud: That's what I was told and that's why with the inventory that we are requesting of a vendor, hopefully they can come up and tell us what we actually have of that. Ms.Yukimura: Okay, do you have any projections as to how many new roads we are creating every year? That if we had a good GIS data system from planning we should be able to get right? Because with every new subdivision approved you could get the road mileage so I would hope that there's going to be some interface with that and Brandon Raines did give us a big picture forecast of the kind of system we're going to start building. Your inventory upgrade you said was by contract so you're actually hiring someone to do that? Okay to be done in 3 months approximately? Okay and then how does the micro paver pavement management system and the 4 winds maintenance management information system productivity enhancement tool, how do they interface? Mr. Renaud: Well micro paver will tell us about our roads period. Everything, anything about our roads, our signs, signage or pavement marking, there's a lot of things that program can keep a library for us. Ms.Yukimura: That's the micro paver? Mr. Renaud: Right, now for the 4 winds I don't know where we're at with 4 winds right now but I have a meeting with administration on that. What that program tells us or helps us with is being accountable everybody. I being time sheets or work orders you name it that's what we're going to do with that program. Right now we don't know everything that's happening in the field unless we pressure our supervisors and I don't know how true that is with the program itself we can go online and everything will be electronic. We can go online and look at every base April 16, 2012 Public Works (Operating & CIP) continuation p.29 yard so we need the program so that we can move forward and it's just going to simplify everything out there what we do. Mr. Tabata: If I can add it's an asset management software where by micro-paver is strictly designed for the roads and the additional help that Ed is saying when we got micro-paver as he mentioned we looked into our records and they weren't adequate. We are now hiring another firm to come in and inventory all of our roads for us and it will just upload into micro-paver. Now 4 winds is an asset management tool of everything else it is responsible for, canals, we didn't mention the canals. There is also drainage ways, storm ways, storm drains, trees and right of ways different right of ways. Every asset that the county owns that's not a building will be input into this arena. So we will be able to like Ed said create systematic work orders to be able to track and you can also go to the point of management where we can track performance for the various base yards based on turnaround time to complete repairs and categorizing everything. Right now it's all done manually and papers get loss in the shuffle between the base yards to the main office things get lost and it will also be able to allow him to better track his cost to do the work out there and allow us to manage smarter. I think we do a lot of work out there because redundant we do our repairs the work orders come in from the field or from the public. We go and do the job next week we get the same thing and we've sent guys back out there and oh we've already done this. So these are our tools to help us do things let's just say smarter that we want to implement. Waste Water uses 4 winds, State Highways uses 4 winds, and Department of Water uses 4 winds so it's the software of choice right now. Hopefully we can get piggy back on to what waste water has and make a quantum leap or I wouldn't say quantum leap but a leap forward. Ms.Yukimura: Thank you for that explanation, Its very commendable that you're moving in that direction. I just have all these questions about interfacing with our assets management inventory, our fiscal assets inventory and I don't know if that... Mr. Tabata: Yes that will be all catalog in this because these soft-wares are data bases and then we quarry the types of reports that we need and we can create the different forms that we need from the data base. They are powerful enough and they are geared strictly for maintenance. Ms.Yukimura: The time and attendance is that any interface? Mr. Tabata: Right that will allow us to keep track of our people better. What they do and what they are assigned for the day. Ms.Yukimura: Okay and internally I have no questions about if it's the soft- ware choice, I just don't know if there has to be some attention to interface with the payroll system? Mr. Renaud: Yes it will and that's the biggest thing. Mr.Yukimura: Okay so all of that is going to be attended to in the design of the system? Mr. Renaud: Correct. Ms.Yukimura: Okay well that's good thank you very much. Mr. Rapozo: Thank you. With that its 11 o'clock, we're going to take a 10 minute caption break and return and I believe Mr. Bynum you have some questions. April 16, 2012 Public Works (Operating & CIP) continuation p.30 There being no objections, the Committee recessed at 11:01 a.m. The Committee reconvened at 11:13 a.m., and proceeded as follows. Mr. Rapozo: Okay we are back in session thank you very much. Mr. Bynum. Mr. Bynum: Maybe one last question that I ask every year at budget this is my little pet thing here. Thermo plastic lane markings... did we acquire that equipment or are we doing it that way, and if not why not? Mr. Renaud: If I go thermo right now it's going to cost me five hundred grand estimated price plus one position and I cannot go there right now. Thermo is not that critical for me on county roads, we do use thermo on smaller version on our stops and as for collector roads that's for the contractor. Mr. Bynum: Right so the contractor's going to do it on collector roads and I'm just going to ask these questions like I do every year. Mr. Renaud: No I'm good. Mr. Bynum: We're all in agreement that it maintains much better, that it has much higher visibility. That it increases road safety right we all agree with that? Mr. Renaud: Correct. Mr. Bynum: So acquiring the equipment to do it that way I'm sure is a cost expense but if it saves one life, two lives, three lives, because what I hear a lot is people worried and I know we can't keep up with painting as much as we would like but when you're on Kaua`i's rural roads at night, raining and the paint is gone, the difference between a thermo strip and the painted strip is the painted strip is gone, it's just not there and you don't see it at night in the rain and that's the kind of things probably more than anything I hear about safety concerns. I believe it's an investment we need to make because its safety and in long term we will save money right? Mr. Renaud: Well I'm not disagreeing with you but the thing is I want to research that further because there are a lot of county roads, not collector roads but county roads that we don't stripe the whole road. Mr. Bynum: Right. Mr. Renaud: Okay so I don't want to put money in the wrong place and I understand where you're coming from. Let me research all of that first and with my inventory coming back it's going to tell me what's out there and then I will put a number together and I don't have a problem coming back to administration. Mr. Bynum: Okay and I'm not trying to be argumentative but that's what I've heard for 4 years, oh let me research it this year and let me see if will do it next year. Mr. Renaud: No well the thing is we said that on collector roads and that's { why collector roads are the busiest roads and the thing is with heavy traffic so we are making our contractors do that. On our county roads we don't have that many roads but we can go there but I need to do some research. April 16, 2012 Public Works (Operating & CIP) continuation p.31 Mr. Bynum: Okay but that's a change in the contract to have the contractors do this thermo striping right? Mr. Renaud: Correct. Mr. Bynum: And that improvement that's a good thing. These other lease software systems that you're talking about integrate with GIS right and I don't know if this is for you or for the bigger picture but hopefully as the county invests and I think that's IT that helps and says you can use this too especially GIS that has so many potential uses. Are we mapping and then the software easements, utility easements, public access easements. We were talking about getting an inventory of county roads, assets right and part of that data are these utility easements and specifically public access easements. Is that part of what you guys are doing if not you someone else? Does anyone know? Mr. Renaud: Its not part of our roads but the thing is that also another phase and I will talk to Wally and Administration if we can go together into that. For this first phase we're not into that yet so it can be the next one. Mr. Bynum: I would just hope the overall expert here is the IT division right and they're going to be consulting with you guys so we're not buying software over here for this purpose and software over here for this purpose. Hopefully that discussion is happening so that and I guess my last question would be all of the software purchases that you're doing is and his been in consultation with IT? Mr. Renaud: Yes even GIS, I just had a meeting with... well we sat down and we talked about the GIS and all this stuff and I one time in a different meeting I heard that we had something in county. We have something in county but it's not really up to par where I'm going with the GIS that I have so what we're going to do we are sharing our GIS with him and what he has so that we have a bigger picture. Everything we do we do consult with GIS, I mean IT excuse me. Mr. Bynum: Right and whatever data you're collecting from micro-paver hopefully that's a data layer in GIS. Mr. Renaud: Correct it is. Mr. Bynum: Okay thank you. Mr. Rapozo: Thank you councilmember Nakamura. Ms. Nakamura: Hi, this is just a comment for Larry and Lyle that I'm just happy to see the funding in there for training. It's a big job but it's well worth it the conferences that you've outlined here, it seems like it will increase capacity to do the work. I also wanted to ask you the question about the street lights because that's another big jump in costs from a million to 1.6 million. I was just wondering is that just because of the cost of electricity? Mr. Dill: That's correct and as I mentioned earlier for the fuel similar to the electricity cause, we are burning at a faster rate this year as our budget projected for and so it reflects the current rate as I well as I anticipated the inflation in cost. Ms. Nakamura: Okay, and this issue about addressing the roads in limbo and paper roads. What is the direction that you want to move in with this issue? April 16, 2012 Public Works (Operating & CIP) continuation p.32 Mr. Dill: Well I guess mainly we are looking for clarification it's been as issue for 30 years and we have been talking to the attorneys about this and I don't pretend to be an attorney or close to the legal aspects of this but there's a difference of opinion as I understand between the AG's Office the state Ag and our attorneys as to who has the responsibility for the maintenance of these roads. Who are the owners of these roads and it's an ongoing issue for us and makes it difficult to determine how we service our residents, our Kaua`i residents. It's our initial response and as an initial response we want to take care of our people but obviously the ratification to that when it's a road we say we don't own, once we go out there and start maintaining it well we own it. So we continue to work with the attorneys on that and unfortunately I don't have a real good answer for you on that in this stage except to say that we continue to work with our attorneys on trying to reach some sort of a Resolution on that. Ms. Nakamura: Okay and maybe this could be a follow up Public Works Committee discussion because of the outstanding issues involved. It's just a suggestion. Mr. Bynum: Twenty five when we talked about it 5 years ago and it is a huge issue so welcome to the every 2 or 3 year goes around and what are we going to do about this. The State just dumped this on the County years ago and the county said no thank you... State you don't get to unilaterally just give us all this responsibility, all of this liability so I'm laughing because I don't know that it will ever be resolved. I have a file somewhere with a big report from Warren Perry when he was the County Attorney in the County Attorney's Office and that's at least I think 30 years ago. Mr. Rapozo: Okay well the Chair is back and I just want to say in last year's budget submittal or budget presentation that was one of the initiatives, was to work with the attorneys and we have dueling opinions someone has to make that call because we have to service the people and I agree with that. I'm not surprised that our opinion, our county attorney's opinion is different from the Attorney General and that seems to be common now days but regardless if we're going to go with our county attorneys opinion than we tell the people sorry and call your State Representative but we have to do something. It was an initiative last year it's not this year but it hasn't been resolved so I think we need to... Mr. Chair and I will turn it over to you. Mr. Furfaro: Larry I just want to make sure you know the roads in limbo go back to 1926, they don't go back 25 years or 30 years, they go back to 1926 when the territorial government and the state's first started with this pilikia, the County didn't want to maintain certain roads the State didn't want to cover liability on certain roads. There is one that you and I are very familiar with it's the plum tree road that goes down from the Westin and it goes down to Anini to what used to be the 1957 bridge that crossed Anini Stream. You know eventually the State sold it and it was very interesting but in 2004 Peter Nakamura did a lot of investigating for us when we started with this open space commission and Mr. Asing you use to refer to it as the low hanging fruits. Where are the roads that we can just make claim too. So it's almost a 90 year history that deals with roads in limbo and I don't think the State has changed its position and recently the most recent roads in limbo issue is dealing with the road in Poi`pu that has the stone wall that goes down to what was a trail. The State had first indicated we could move to acquire it and the State than went through court and claimed it for themselves and that's the Hapa Trail or the Hapa Road in Poi`pu. It's going to take us some legal investigations for directions and I thought that's where we were going to start, not so much on the engineering items but get some legal interpretations so I just wanted to clear the air of how long this has been going on in the territory of Hawaii. Okay Mr. Kualii and than Council Vice Chair Yukimura. April 16, 2012 Public Works (Operating & CIP) continuation p.33 Mr. Kualii: Thank you Mr. Chair. I too had a question about the street lights and I'm curious if because of the 6 hundred thousand dollar jump. Councilmember Nakamura got to about the electric costs and I'm wondering if the inventory of street lights has changed? Have we added street lights to any county roads and I would imagine in addition to the electrical costs sky rocketing, the volume growing is part of the reason too? Mr. Dill: That is part of the reason and I don't have a firm number for you at the moment but as subdivisions get developed the street lights get turned on as density increases so you have vacant lots that get filled with houses, requests coming through for additional street lights so that is a factor. Like I said I don't have a firm number for you at this time. Mr. Kualii: Okay and the newer developments are incorporating whatever sustainable better lighting technologies are available out there? Mr. Dill: Yes they would use the latest specifications by KIUC. Mr. Kualii: Okay and than the other question had to do with the line items of other services with a zero amount in the 11/12 budget and a 350 thousand dollar amount in the 12/13 proposed budget. Under the detail I see 2 explanations, tree trimming and Maluhia Road tree trimming. The amounts that show there does not add up to three hundred and fifty thousand so I'm wondering if you had a basic detail explanation of how that 350 thousand breaks down? Is that some amount to tree trimming in general and then some other amount to Maluhia Road tree trimming?It's on page 223 in our budget. Mr. Dill: There is a typo in there. The five hundred on you Maluhia Road tree trimming should be 3 hundred. Mr. Kualii: So the tree trimming remains at 50 thousand and the Maluhia Road tree trimming is 3 hundred thousand? Mr. Dill: Correct. Mr. Kualii: So how is that money expended? Is it work that we do as a County or that we pay a sub contractor to do? Mr. Dill: Correct. Mr. Kualii: So how is that money expended? Is it work that we do as a County or that we pay a sub contractor to do? Mr. Renaud: That's going to be contracted out and the thing is we need to get a contractor with arborist on board and what we do is we walk the road. I have already walked the strip myself and a few landscapers just to see what kind of ballpark numbers I would come up with. It's more about safety because there are a lot of dead limbs up there and some dead trees that need to come down. So working with an arborist and a contractor a so called designed built that would work perfect. We have to go out there and select what we see out there with advice of the abreast. Mr. Kualii: So that line item of 3 hundred thousand is all allocated towards contracting out the work to trim Maluhia Road. The fifty thousand is that just a tree trimming line item?Is that for County done tree trimming? April 16, 2012 Public Works (Operating & CIP) continuation p.34 Mr. Renaud: Okay what the 50 is for is there are a lot of residents and I guess they are new residents that just moved in and they bought a particular property and they don't want to see any County trees on their property. What happened up in Kapa'a we have a lot of trees up there that are 40 feet in height plus and somehow I don't believe that was a county tree project but maybe it was on the property and if it goes over to the county right of way it becomes a county tree. So now everybody wants it removed because it is unsafe and everything so we put some money in there because we cannot do everything in roads as I'm talking right now and there are some specialties that we cannot do and this is why we need to go out and contract. We don't have the expertise on working around electrical and the utility company prefers to do it themselves. So if there are trees that have to be removed and we after talking discussions with the attorneys and our county surveyors then we would have to remove the trees. So we put some money in there to see where we're at. Mr. Kualii: So based on the amount of requests we have from citizens/residents and based on potential liability if you will. I know of one specific example that was brought to my attention and I forwarded on to Public Works was that after the heavy rains up on the main road right above Kapa'a Middle School, that along the road side they said were some county areas where there are large trees and because the soil was softened some of the trees are loosened and a couple of them have even fallen and they were worried about additional trees falling. They wanted the county to get in there and trim the trees, take um down and whatever based on the potential liability. Its fifty thousand dollars enough to deal with where all these potential problems are and big liabilities could exist. Mr. Renaud: In all honesty no but the thing is we are assess each complaint that come through and if the county, if there is no electric around our extension boom trucks can get up there we will do it ourselves. For the areas that we can't do we contract it out. Mr. Kualii: Is this just for tree trimming or in the case where the tree needed to be removed.Would that be handled there too? Mr. Renaud: Like I said if the county can do it than we'll do it. Mr. Kualii: Where in the budget is that accounted for? Mr. Renaud: It's our R&M. Mr. Kualii: Oh R&M that's right. The other thing is how much of the county's tree trimming needs as a whole across the county across Parks and Recreation, is that coordinated in any way through public works because I'm interested about this whole new software system and stuff because the management and the scheduling of even those assets the tree trimming like Lyle had mentioned as part of the list. Because Parks and Recreation came before us and they were asking for some special equipment because they said their tree trimming needs sometimes they can get addressed by public works but not timely for them so they want to get this specialized expensive equipment to do it themselves. I'm concerned that Parks and Rec is not necessarily in the tree trimming business and I think it should be public works whether you do it yourself in-house or you contract it out like you're doing with the Maluhia road project. I'm just saying what is the truth on that and can you accommodate tree trimming throughout the county and do you consider it your responsibility? Mr. Dill: If I may councilmember Kualii. The Parks & Rec folks their goals are a little different when it comes to tree maintenance. We look at safety issues primarily, we look at tree trimming and we don't look at things like beautification. So Parks & Rec's focus is April 16, 2012 Public Works (Operating & CIP) continuation p.35 maintenance and beautification issues. Sometimes we do assist them if they have one of the larger projects and they aren't equipped or have the equipment that we do for that but our focuses are not necessarily the same so we assist sometimes and also they do provide us with assistance when we need an arborists expertise they provide us with that but our focuses are a little different and the Parks guys I don't think want our crew coming in to do beautification because beautification is not our forte. Mr. Kualii: They actually said they would request help from you and that you sometimes could help them but other times weren't responsive enough to suit their needs. I would think if it's just a matter of beautification that it could be scheduled and I would rather see this county not duplicate the equipment if often that equipment might be sitting idle. I would imagine in your case it's less likely to be sitting idle because you have the big jobs throughout the county, but I think if Parks & Rec gets similar tree trimming equipment they are not going to be using it day in and day out well maybe they are. They can show me a schedule or something but I'm interested to know that moving forward with this software, what kind of tree trimming schedule you have and how you can or cannot accommodate Parks & Rec or anyone else in the department or the county that has those needs. Mr. Renaud: I don't have a problem assisting parks or any other agency okay, but when it comes to parks what I request of them is I will have my operator operate the truck and they come with their people because we don't have the special expertise that they have. Excuse me we are rough, you know if it's dead we will take it down if we can and that's our forte. To trim a tree nice, where to trim it and what not that's not our forte so you know we're willing to train them > Y g to use our equipment but the thing is per union we want to go with our equipment operator and the equipment and we're willing to have them on the job but they need to go to the training, a safety training then we don't have a problem. I can understand we're you're coming from on equipment and what not with the county, that's not a problem. Mr. Kualii: Thank you, thank you Mr. Chair. Chair Furfaro: Vice Chair before I give you the floor can I point out something? We have a lot of difficulties with these encroachments on issues okay. I was at Kilauea Park yesterday and this diagram that I just drew Larry is a puka that's been in the slides steps since 2 months ago when we brought it up in the Parks Department. It is jagged, it is rusty and I think Ms. Boynton may have sent Vice Chair Yukimura some photos of this but it is after hearing from parks on Friday I stopped in at Kilauea Park and it's this piece that really bothers me. A two or three year old could walk up the steps and slip their foot right through that puka and its jagged and 2 months is a long time and it's like the same problem with the trees. We need to develop that value of Kokua between departments especially parks and Lenny touched on it on Friday as we brought it up with repairs and maintenance in the parks area but I do think there's some common expectations of Public Works to provide some response to safety issues. I really want to compliment Ed and your attitude about helping, Kokua but it's that public works area that keeps crossing over where parks is thinking that public works is going to do it and parks thinks the road people can take care of a tree issue and so forth. Somehow I don't know what the answer is but we have to tighten it up Larry and I'm going to give this little note to you about Kilauea but somebody or it somehow has to go on the radar screen when the help is requested from this cross over departments and the work gets done. This is not good for a 2 or 3 year old that could put their foot right through the steps on the slide. I guess what we're hearing here is roads has equipment and the lifts and you and I know how we use to handle those kinds of things with the tree trimmers out at Princeville whether it was for the Community Association or the golf course and so forth, but there's got to be a way to get that on the radar screen so the work actually gets done. I want to tell you that I appreciate Ed's willingness for the value of Kokua. April 16, 2012 Public Works (Operating & CIP) continuation p.36 Mr. Dill: Thank you we did have some issues we worked out with parks as they were requesting some assistance and how that happened, we sat down and met with them several times. I think we've made a lot of progress as far as the tree trimming is concerned and when they would be able to schedule to use our equipment and we would need to send operators along to help support their operation. I think we have some along way in that regard. I can't speak to their volume of workload and how that meets their needs. Chair Furfaro: Well it's interesting that the Mayor's granddaughter was in the Kilauea playground yesterday and she's a two and a half year old who uses the slide and this is medal work and I don't know that the parks guy's have that specialization but if you could look into it I would appreciate it.Vice Chair thank you for your patience. Ms.Yukimura: Thank you Chair. On the issue of those roads that are in limbo roads thank you. Could you not perhaps work on it instead of trying to take the whole bundle of roads just on a road that maybe logical for us to manage and use and just work some agreements where the State says whatever rights we have we give to you and we take it over and start managing it. It's sort of like whatever the legal relationship is between the Mayor and the Police Chief; they could still workout some things between themselves perhaps and could we perhaps not do that on a road by road basis because to take it all on at once is very complex. Maybe one road whether it's Hapa Road or some other road which I'm sure you know better which ones might be the logical ones may be a very short one that's very manageable and we work out some protocols about it and work on it one by one possibly. Mr. Dill: I will talk to the attorneys, I don't know the legalities of that once you accept one you accept them all. I don't know if that's a concern or not but obviously when you take over new roads to maintain we're accepting some fiscal responsibility along with that. Ms.Yukimura: Absolutely. Mr. Dill: But that certainly is a good idea and we will look into that and see if it makes sense for us to take some of the roads over Ms.Yukimura: It's sort of a pilot project so you actually flush out what the issues are on one simple case and see if there are more possibilities on the larger scene. And lastly regarding the street lights, there have been several proposals for photovoltaic street lights and it sort of makes sense that you would use the suns energy during the day and turn it into lighting at night. I don't know, In my mind I'm remembering some proposals for a pilot project and I'm just wondering if we might explore that and at the same time I'm presuming we're having shielded lights for because of the shearwater and bird issue. Thank you. Chair Furfaro: Mr. Rapozo you have the floor. Mr. Rapozo: Thank you.With the restructuring of Public Works and this is just a follow on to my regular question and I know you mentioned something about the union based on duties between divisions whether its parks or public works roads or whoever and it kind of triggered this question because I know last year we had some issues with automated or maybe it wasn't last year it might have been 3 years ago. How are we communicating with the union as far as restructuring? Are we meeting the contractual requirements as far as... some of these positions are being re-defined and changed and I'm not sure if they're all within UPW or they're actually moving towards other unions. Have we been in contact and in compliance with the contract regarding the restructuring? April 16, 2012 Public Works (Operating & CIP) continuation p.37 Mr. Renaud: I believe a 105 is required when we're working with UPW and in checking with our personnel that went forward. Mr. Rapozo: But is that... checking with personnel, our personnel? Mr. Renaud: Our personnel? Mr. Rapozo: Our personnel. So If I ask the union they would have the same answer? Mr. Renaud: I hope so, I think, I cannot answer that you would have to ask them. Mr. Rapozo: I don't know as we sit here today, I'm not sure what the status is but I know I did have discussions with UPW within the last couple of months and that wasn't the concern, I mean that wasn't the case. I just want to make sure that we're dotting our eyes, crossing our tees because you know what happens when the grievances are filed and everything is held up and I just hate to be moving in the direction that's going to cost us more money in the end. Mr. Renaud: I take that back we did meet with the union reps the 3 of us and we did present the positions that we're moving forward in the re-org. Mr. Rapozo: So everything is ok? Mr. Renaud: I don't know if everything is okay but we did answer all the questions that the union had asked. Mr. Rapozo: I guess the real question is, are we in compliance with the contract? Mr. Renaud: I believe so. Mr. Rapozo: Okay thank you. Chair Furfaro: Do you want to send some correspondence over to administration? Mr. Rapozo: Well we can. I know we had a big concern with the automated where the trucks were purchased before and I just want to make sure because this is substantial change this is not small. Again I cannot even count how many positions have been transferred and moved and reallocated. I just want to make sure we're in compliance with the collective bargaining because whether we agree or disagree with the contract we have to follow it and I just want to make sure we do that before we push this budget through. We can do that Mr. Chair and I guess I would ask that communications be sent to both the administration as well as the UPW and we can get a better indication of what's going on. The other question is we're sending it over again but the equipment request I have to agree with Councilmember Kualii and I wasn't here for the parks presentation but I know parks has a lot of work with the coconut trees and the trimming of the coconut trees and that and that is always a concern and that's not you're Kuleana but I would agree that we probably should centralized the tree trimming function of the county to one agency, whether it's parks or public works because to have 2 sets of equipment and tools makes no sense whatsoever. The equipment request this year is aggressive it's huge, the last time I saw a budget like this was April 16, 2012 Public Works (Operating & CIP) continuation p.38 when Mayor Baptiste decided to go ahead and get the much needed equipment. So I just want to get a comparison department by department to see and make sure we're not purchasing too much. Understanding that maybe we can lease it and we can spend 1 million dollars this year to get 5 million dollars of equipment but the last thing we want is to see equipment sitting and not being used. I know not so much for you folks because, I think you're equipment get used but county wide I always said the motor pool format of the military is wonderful.All the machines and equipment goes to one motor pool section. If public works needs a loader they go sign out the loader, if parks needed a dump truck they go sign out the dump truck. It's one focus motor pool versus all these trucks and mowers and all over the place, some of them broken some of them not working some of them sitting idle versus the motor pool department where you only sign out what you need. That to me makes a lot more sense and there's a lot of equipment I believe about 5 million dollars and maybe even more than 5 million dollars worth of equipment we're buying this year. I just want to make sure it's equipment that we definitely need right now. Mr. Renaud: Lyle and I talked about that because we seen equipment here parked and we're doing some duplication so I kind of jumped on his case and I said you're the Deputy now and we got to change some things. We need something like that, one place with a schedule that we assign and give to the motor pool and etc... until we use the equipment. We have so many duplications in the county, we have our own companies and that's not feasible right now the way things are with the economy but we talked about it. Mr. Rapozo: Right and that even makes me think even further now as should we move forward with this huge equipment purchase. If you folks are looking at a better system and you already heard my suggestion it would be (inaudible) now to go spend all this money to come back with a system that now we have too much. I think JoAnn's claim to fame is the planning aspect, we need to plan first, plan what we're going to do and then make the purchase versus all this equipment because we can and figure a way to get it into the system later. I guess we can have that discussion as we get into decision making. I'm glad you guys are looking at an alternative because we cannot continue to purchase, purchase, and purchase. Chair Furfaro: Ed before you respond to that let me say something that's very basic here. A large purchase of equipment and I'm glad Ernie's in the room here. A large purchase like this for small tools and equipment is really important that those assets and the recording of the financial inventory go on our books.You folks need to make sure there's a policy and procedure that effectively recognizes where that equipment gets issued out but more importantly getting back to Mr. Rapozo, I would think at some point in time your providing us a list of what we have that's going to be retired and its going to be taken off of our books. So I will send that over as a question from the Council wanting to know what changes are going to be reflected in our asset inventory for equipment that's going to be retired okay and I think that's real important. Ed you have the floor. Mr. Renaud: Yeah I got one thing. The equipment that we are requesting I have the breakdown where it's all going. I shouldn't say this but I'm going to say it, there's one equipment that we have in the county but when I researched and it took me one year to come up with this list. I studied the roads division the equipment we need and do we go equipment or more men? I went more equipment so we can specialize and get people assigned to it and so forth and that's why we have the special so called construction that we're trying to push forward. We go to each district we have the operator with this particular equipment, we go to each district we schedule with the district supervisor that we're going to need x number of other equipment or manpower to do this operation. But when I researched this other one, this one equipment in order for me to use it I would have to work on overtime and it cost me big dollars so I said ok I'm going to put in for one because I have enough work for this one particular equipment for 4 years right now if I start by one April 16, 2012 Public Works (Operating & CIP) continuation p.39 operator from the special crew and going to each district and doing this maintenance and this is the drainage and every drainage I looked at it is capacity full. Chair Furfaro: Well all I got to say is we should have started earlier on that and if we don't start this year you're going to be 5 years behind. Ok? You get my point I want to know what equipment is being retired as we go forward to buy new. And Ed if we're that seriously behind maybe we ought to talk in terms of leasing and maybe you got 2 guys that qualify and the equipment we get is leased and leased not to own but to lease to let the leases expire. But we want to be very sure that what we're retiring and what we're replacing is accounted for. I think Ernie you agree with my observation and you can just nod your head. We have to know what we're going to retire in this way of small equipment. Mr. Rapozo: One more question. Chair Furfaro: Go ahead Mr. Rapozo. Mr. Rapozo: As far as Public Works is concerned your inventories of all your equipment, small tools, small equipment. You guys maintain that inventory and when was the last time we actually checked it for accuracy?I did get parks as I requested it, it took a long time but I finally got the parks tool list and I can tell you there is a lot of stuff on that list that are not where they suppose to be in various parks and so forth. I mean small tools like weed whackers and so forth and they may have broke or are just not accounted for. Are we pretty comfortable with the asset the inventory for public works? If I picked up inventory for Hanapepe Base yard and I went with the list every piece would be on there? Mr. Renaud: I had my list come in from my district supervisors and my traffic signs those 4 areas and whatever they produce it has to be honest. Mr. Rapozo: But do we even check that does someone do it like an audit of it internal... Mr. Renaud: Ok by collecting this inventory that's my next step. Mr. Rapozo: Okay and I would encourage you to do that. I'm concerned with the parks one but I don't know if we do that occasionally or if we do it enough. It's like the budget we get the budget typically it's the same budget we had last year with a little fine tuning. But in the tools and I'll go back again to the military I mean monthly inventories were what we had to do in every screw driver and it was almost ridiculous but that's the only way we keep track. Someone needs to be in charge of that, someone needs to make sure at the end of the month when they go down the tool box and there missing whatever and not so much to go find out if it got stolen but so we can replace it so these guys can do their job. I think that's the bigger concern versus coming up every 4 years with a 5 million dollar requisition because we need equipment that we simply don't have. I thank that goes for what the Mr. Chair is saying, the Fire Department does a replacement schedule on the big equipment, fire trucks and so forth and I think that's what we're asking is on the major equipment really what is the replacement schedule going to be is it a 5 year, 10 year asset, 20 year asset. These big loaders are they going to be replacing something and I think it's important for us as we go forward, thank you. Chair Furfaro: Okay thank you Mr. Rapozo. So Larry I'm sure you heard that we're looking on getting a grip on these getting a grip on these intangibles I think general accounting practices they should be inventoried once a year. April 16, 2012 Public Works (Operating & CIP) continuation p.40 Mr. Dill: Yes and I don't know what the history on that is Chair, we r'Y , just requested and just received inventory of small equipment from all the base yards. Now we have to follow up on that and the larger equipment is on a replacement schedule and one factor is how old it is, the miles, the use, hours, etc... Those are one of the criteria there that we replace equipment and retire it and replace it with a new one.We do track those. Chair Furfaro: That's why getting a grip on these intangibles to me is very important. We don't want to over promise but we certainly want to make sure our staff, our employees have the right tools to do the job that's expected of them. Cliff you heard my comment that once a year an inventory should be done as a general accounting practice, any other questions here? Gentlemen thank you very, very, much and I got an answer from your assistant engineer that they were of the impression that parks was going to take care of that staircase and I've asked him if he could check up on it one more time please. Okay B.C., it is five of twelve and I think it is our intent to start Solid Waste and I think we will have most of the afternoon for solid waste. We can either plan to break now Larry for a half an hour and come back at 1 p.m., or we take a half hour now and break at 12:30? Mr. Dill: I prefer to break now and come back. Chair Furfaro: We can start on a new subject matter at 1:00 p.m., I'm sorry for the staff in the back but we don't want to lose of track of thought as we go through this process. Okay I'm going to excuse you folks. Mr. Dill: Okay so 1:00? Chair Furfaro: Yes 1:00, we're going to take public testimony as I've been doing. I'm asking for public testimony at the end of each session. Is there anyone who wishes to give public testimony at this point and time? Come right up. So that you know I take public testimony at the end of each session so the session we've covered is the automotive shop and the highway and roads department. I will give another opportunity to everyone who wants to testify on solid waste when we go through that. LEILANI MINDORO, KAUAI DIVISION DIRECTOR, UPW: I'm sorry I know its right before lunch but I just wanted to go over a few questions and I know you had asked... I'm sorry Leilani Mindoro, Kaua`i Division Director for United Public Workers. I just wanted to state that Ed Renaud was right in one factor that the union and the employer has been in consultation regarding a reorganization of the roads division. It was also brought to my attention that they were moving positions and some of the positions that were being moved were 2 positions and I believe it was the Superintendent Highway Construction and Maintenance Supervisor 1, position #835 and the other was Hanalei from Hanalei base yard and that was the Working Supervisor position#955. These were dollar funded numbers based on the consultation and we're going to have to get back and meet again on this. It's not complete we are waiting for some information from the employer but my understanding in regards to position 835, that position initially was supposed to be HGEA be reallocated to a HGEA position outside of roads and into solid waste. Again I'm sure because the process in which the employer suppose to take when they reallocate a position outside of the bargaining unit is to present that documentation to the union and we then go into consultation whether or not we agree and if we do not agree then if we do not agree it goes into the Labor Board process. Chair Furfaro: Can I ask you to repeat that position number I see Mr. Kualii is making a note but we can surface that question with Solid Waste that's coming up. April 16, 2012 Public Works (Operating & CIP) continuation p.41 Ms. Mindoro: That was number 835 from the Hanapepe Base Yard and I know in the discussion with Mr. Kualii basically had asked whether or not that position was going to be, he was informed that that position was going to be transferred to Kapa'a Base Yard but in the discussion that was brought to my attention initially it was going to an HGEA position. So I'm not sure where it's going. Mr. Furfaro: Okay we will follow up on that when we're in Solid Waste. Ms. Mindoro: Okay and the other position which was not initially in our re- org the 835, the second position, position number 955 that's the Labor Working Supervisor from the Hanalei Base Yard. That position from my understanding from the previous discussion is going to be re-allocated to a Small Equipment Mechanic from Transportation. However in the re-org that re- organization discussion that we had with roads that was created but not completed at this point, that position was going to stay within the roads division so there is a conflict of information but again Mr. Renaud was correct in saying there was an initiation of consultation with the union it just has not been completed at this time. In this re-organization of the transportation we're also going to need to know what's happening with transportation which was not initially consulted with us. Chair Furfaro: Okay. Ms. Mindoro: So that's all I have to really say. Chair Furfaro: Okay let's see if we have any questions for you. Mr. Bynum. Mr. Bynum: Thanks Leilani for being here. I Leilani, are you intending on being here this afternoon for the solid waste discussion? Ms. Mindoro: I wasn't initially but I am going to be coming back yes. Mr. Bynum: We'll maybe I will save my questions but eventually I'm just going to say overall how is Public Works doing in respect in engaging with UPW? Ms. Mindoro: Over all we're working to improve the relationship. Initially we had a very good working relationship and there was better communication. I don't know if it is because there are new administrative personnel and we have to... I don't know if it's the feeling each other out sort a speak to try and figure where we're at. We are working to try to resolve many of our grievances and many of the issues and hopefully the communication will improve. Again these were the first positions that are aware that were moved from one place to another so I don't have a list of all of these reallocated but I will be looking to get those so I'm aware as to where other positions may be moved too or from. Mr. Bynum: We'll if you're here this afternoon I may have some specific questions about solid waste because there's a lot of changes happening. Ms. Mindoro: Okay I do want to add one thing if I may, that with the discussion of tree trimming and a little history from UPW. There was a tree trimming group that consisted of a tree trimmer and an assistant so there were 2 people within the tree trimming unit. That tree trimming unit I would say before my time back in about 2 thousand or give or take a year either way was absorbed into the roads division. That tree trimming piece of equipment that tree trimmer the boom truck is basically a temporary as needed number, it is not assigned to any specific personnel. My understanding in solid waste is it is rotated base yard to base yard so that the areas of which roads division works they basically on a cycle will do their tree trimming. As for parks and I April 16, 2012 Public Works (Operating& CIP) continuation p.42 beg to differ when it becomes a safety issue and their focus is not safety its beautification, parks, to advocate for parks it does become a safety issue when you have fallen branches at soccer fields or... and Pm a very strong advocate for the park usage for the kids for soccer or baseball. It's real important that accessibility of this equipment be available education for usage of this equipment for parks because we want to keep our Keiki's safe and our adults who go out to these parks and play. Chair Furfaro: I don't think you heard and sympathy from this council directed at their limited resources in any employment role safety is first. Ms. Mindoro: Exactly. Mr. Rapozo: I have a real quick question. Chair Furfaro: Go ahead Mr. Rapozo. Mr. Rapozo: Leilani you said you were trying to resolve your grievances right now, how many you guys have? Ms. Mindoro: Our parks grievances were running at approximately twelve I believe... Mr. Rapozo: Okay ballpark is fine. So that's parks 12, public works? Ms. Mindoro: Public Works we had a back log of probably seven. So about 19 total between parks and public works? Ms. Mindoro: Yes. Mr. Rapozo: Okay thank you. Ms. Mindoro: And at this point just to let you know we have resolved and we've been meeting with the department heads as well as step 2 from for the Mayor's representative to try and resolve it and at this point we have resolved just about all of them. There are 2 that we have to agree to disagree and there are 2 that may go further than the county law will go into arbitration. Chair Furfaro: Well that's the good news and thank you for that summary. Vice Chair Yukimura has a question for you. Ms.Yukimura: I just wondered the sheets on employee transfers and filling I think is public information so perhaps we should just make it available to Leilani. We can do that after we adjourn. Ms. Mindoro: Okay thank you. Chair Furfaro: I'm sorry staff you heard that inquiry? Okay Leilani we have one more question for you and that's from Councilmember Kualii. Mr. Kualii: Yeah along the lines of Vice Chair Yukimura's suggestion to make the personnel report available I think that's pretty important because of the vacancies. I suppose that this reallocation of the labor working supervisor position to the small equipment mechanic and I think from what you're saying is not one that you're participating in so far? fi 6� April 16, 2012 Public Works (Operating & CIP) continuation p.43 Ms. Mindoro: Correct my understanding is that position was going to stay as a working supervisor with the roads division during the re-organization. Mr. Kualii: Okay because that's not what was told to us and that's not what... Ms. Mindoro: Because part of that re-organization they're doing the levee crew at Hanapepe, so the other working supervisor position and that position number was 1995 and that one is currently occupied. That position would move with the crew member under the re- organization to the levee crew, so that piece of equipment... Mr. Kualii: That's Hanapepe yeah? Ms. Mindoro: Yes would be specifically for that so that working supervisor and by moving that 835 would eliminate the working supervisor and basically you'll have all of your different crews that need that working supervisor to be able to assist in the delegation and ensure that the work is done appropriately in the field. Mr. Kualii: What about this other position 956 laborer 2. Ms. Mindoro: Okay. Mr. Kualii: Also in the Hanalei Base Yard. Ms. Mindoro: 952. Mr. Kualii: 956 laborer 2. The asterisk says transfer to traffic signs markings and there's nothing budgeted in Hanalei Base Yard so I'm assuming it's going to show up in signs and marketing. Ms. Mindoro: And its going to signs and marketing you said? Mr. Kualii: Yes 956 laborer 2. I guess it's not the position itself is not changing. Does the union also get involved when it moves from the Hanalei base yard to signs and roads marketing? Ms. Mindoro: Yes because it's all roads division it would be in the roads reorganization so I did write down the numbers that was discussed earlier, so I can go back and just ensure that what was discussed in our reorganization is basically what is actually happening. Mr. Kualii: Okay thank you, thank you Mr. Chair. Chair Furfaro: Leilani, I'm going to thank you for your testimony. We are going to come back at 1:15 Larry from lunch to take solid waste and we'll follow up on your quarries than. Ms. Mindoro: Okay thank you. Chair Furfaro: Okay we are on recess for lunch until 1:15. There being no objections, the committee recessed at 12:11 p.m. April 16, 2012 Public Works (Operating & CIP) continuation p.44 The Committee reconvened at 1:23 p.m., and proceeded as follows. Chair Furfaro: Good afternoon we are back from our lunch recess and Mr. Dill do you want to launch the discussion now on solid waste?We can get another chair for you folks over there too. Alison we can get another chair over there too. Larry I want to thank you on the lunch break Lyle has talked with the Parks Department about the playground at Kilauea and the (puka)in the grill that covers the first step so... Mr. Dill: Good very good. Good afternoon Council Chair and members of the Council, Larry Dill, County Engineer for the record. Moving on now and this afternoon we will be discussing the operating budget for the Solid Waste Division and in our format we'll be talking first of all about some highlights of fiscal year 2012 and we'll discuss some highlights of fiscal year 2013 and anticipate and talk about some highlights of the operating budget and some staff issues. I will turn it over to the head of our solid waste division, Troy Tanigawa. TROY TANIGAWA, HEAD OF DIVISION OF SOLID WASTE MANAGEMENT: For the record Troy Tanigawa, head of division of solid waste management.As Larry has mentioned we have some noble accomplishments that we wanted point out. We've implemented phase 2 of the transition from manual to automated refuse collection that included the areas in Kapa`a, the Kawaihau District. We completed our pilot curbside recycling program that was done in Lihu`e and produced the final report that's available upon request. We've implemented the residential refuse collection assessment program and generated new revenues for the county. We conducted an electronic recycling event this past fiscal year and two roads to recycling tours that showcased different aspects of the solid waste recycling programs. We've initiated the environmental impact statement for the proposed new landfill. Moving on to some highlights for upcoming fiscal year 2013, some challenges we face include are phase 3 of the automated refuge collection program. We are going to be embarking on negotiations with the union, sighting of the proposed new landfill, that process continues with substantial work being done this coming fiscal year on the environmental impact statement. Another program or challenge that we're facing is the deposit beverage container program, this year we were informed by the state that more than likely funding that we are currently receiving in the coming fiscal year will be cut off due to budget constraints in the program and it's a developing situation that we're going to be facing that will impact all of the current programs that are funded through that grant. That would include some certified redemption center operations in areas where that we consider underserviced by certified operators that can redeem beverage containers as well as 2 county staff positions. We will be monitoring that very closely and hoping to see a turn for the better. We also have construction and demolition diversion initiatives that include coming up with an ordinance to further diversion in that area. Also to further diversion of materials of the landfill will be introducing business recycling requirements by ordinance. There will also be a move to increase public education in our diversions programs and we have a new program on tap that we can get into a little bit more discussion later on when we reach recycling programs is a recycling grants program. There is also an increase budget I should say for our household hazardous waste collections appropriation request so we can increase more services in that area. We would like to look at expanding electronic recycling events, improvements for the Kaua`i Recycles Program and also to move on procuring services to increase diversion of bio solids from the landfill. In this slide we just wanted to point out that there are 2 areas that we experience most of our increases in and that was in line item 4, indirect cost central services as well as our recycling services costs. The last slide is just to point out that we're going to be continuing with our contract with our Waste Diversion Programs Advisor in our solid waste division and it points out the position that would be using. There is one slight change to that and instead of the Highway Construction and Maintenance April 16, 2012 Public Works (Operating & CIP) continuation p.45 Supervisor it will be the Highways Superintend Position that we plan to use. That's all I have and I will open up for any questions. Chair Furfaro: Are your people going to make a presentation at this time before I go back to my seat? Mr. Dill: No we have no further presentations. Chair Furfaro: I'm going to practice the same by going around for couple questions each. I have 5 questions here but I will wait my turn after I ask my first 2 and I need and maybe Mr. Barreira you can help us here. He just presented to us that this highway position being transferred to solid waste and that has come up earlier, and is that going from one union to the other and where is the discussion about that reallocation of that staff position. ERNIE BARREIRA, BUDGET &PURCHASING DIRECTOR: Yes Mr. Chair, Ernie Barreira, Budget & Purchasing Director. Thank you for the opportunity to clarify, the position that was just mentioned by Mr. Tanigawa in terms of which is actually an EM Position. I had reported earlier both in writing and verbally at the council last Friday that there were some submission errors in the March budget. One of them was that where as the Superintendent of Highway Construction which is position number 827. That is a position that we intend to seek your approval to re-describe and to transfer to the public works/solid waste division as a waste diversion program advisor. Chair Furfaro: Is that an EM category? Mr. Barreira: I believe it's an EM 5 Position sir? Chair Furfaro: EM 5? Mr. Barreira: Yes. Chair Furfaro: Okay has solid waste had this discussion or who should be initiating this discussion either with the HGEA or UPW do you know? Mr. Barreira: I couldn't say sir I'm not sure who normally takes that responsibility. Mr. Dill: Yes that would be the county engineer myself, but as we pointed out we're not moving now or re-allocating from one union to another, its within the HGEA, but we will coordinate that with the HGEA. Chair Furfaro: Okay so both positions were identified as the workforce in HGEA? Mr. Dill: That's correct. Chair Furfaro: Okay so no way did it cross over with UPW? Mr. Dill: that's correct. Mr. Barreira: Chair if I may since we're on the topic of clarification and the highway construction and maintenance supervisor position number 835 which is a public works April 16, 2012 Public Works (Operating & CIP) continuation p.46 highways Hanapepe base yard position. That was submitted in error as well and that will remain in its current classification as our budget submission in May will clarify. Chair Furfaro: Okay so the 835 position is going to be clarified in the May 3rd submittal? Mr. Barreira: May 8th submittal sir. Chair Furfaro: May 8th I'm sorry. Mr. Barreira: And that position is not going to change, its classification and functionality will remain the same. Chair Furfaro: Okay. I will give you the floor in a couple of minutes; I just want to go to my other question and then Mel you can start off. Troy I didn't understand your question or maybe I should say your statement about some of the struggling we've got going on in the recycling program. Could you clarify that for us again? Mr. Tanigawa: Well Alison has been in touch with the state the most, she's been point on getting the information about the beverage container recycling programs so I will let her answer any details of what you need to know. Chair Furfaro: Sounds like you're going to take us to an expert so we'll go to the expert,Alison. ALISON FRALEY, SOLID WASTE PROGRAM COORDINATOR: For the record, Alison Fraley Solid Waste Program Coordinator. We've been receiving a grant from the State Department of Health since the bottle deposit law went into effect. For the past 3 years we've been funded at a level of about 265 thousand dollars and the funding basically goes towards 2 staff positions that monitor the ro ram here on Kauai. They go to all the retail outlets and the certified redemption centers on p g yg P a regular basis and report back to the state. They also provide customer service to county residents if something goes wrong with the redemption centers they assist and they also provide public education. We have the 2 staff positions and all of their mileage and their office overhead and that kind of thing. We also have 2 redemption centers that are funded through contracts with the recycler to provide redemption center services in Kekaha and in Koloa. So we have an annual contract with Kaua`i Community Recycling Services to provide those in locations who were underserviced in the inception of the deposit program. We heard from the state a few months ago that they have a deficit and a fund and that they will no longer support the county in fiscal year 2014. Chair Furfaro: Okay so they have a deficit in the program? Ms. Fraley: Yes. Chair Furfaro: Therefore our 265 thousand dollar grant to staff, transport and to the reporting documents is not going to be available to us? Ms. Fraley: That's what they've said. Chair Furfaro: That's what they've said. Ms. Fraley: Yes. 1 April 16, 2012 Public Works (Operating & CIP) continuation p.47 Mr. Fujimoto: Next fiscal year. Ms. Fraley: In 2014. Mr. Furfaro: Yeah I understood the numbers so what is our strategy? Mr. Dill: If I may Council Chair, I'm not sure if Alison mentioned but we were first notified by the State, they were telling us that they would remove the funding in fiscal year 13 so our initial response in coordination with other counties because we weren't the only county affected.We were to work with them to get in reinstated for this fiscal year upcoming. Chair Furfaro: Sounds like you were successful. Mr. Dill: Through the efforts mainly led by Alison I would say we were successful so that's a recent happening. So you have raised a good point but we don't have a good answer for you yet. We've got in reinstated until 13 then we have to take a look at 14. We have been considering among other things is asking the state for an audit of their program so we can understand better how they've been expanding the funds for this DBC Program but we need to pursue that. Chair Furfaro: Eh I like that, no guts no glory. That's the state to be audited. Okay so we don't have a new plan for 2014? Mr. Dill: No. Chair Furfaro: We did get the extension for one year? Mr. Dill: Yes. Chair Furfaro: Okay so we'll put it on a future agenda item and see where you folks are going. I had promised Mr. Rapozo the floor next for his first 2 questions. Go ahead Mr. Rap ozo. Mr. Rapozo: I was just going to get clarification on that transferred position because we just sat through the description from public works and they verified that's those positions were going to be moved. I'm reading the April 3 memo from Mr. Barreira and they did clarify those 2 positions so I will waive my 2 questions right now. Chair Furfaro: Okay Vice Chair Yukimura, you have the floor. Ms.Yukimura: Thank you, I want to do a follow up on the deposit beverage container issue. I thought there was a surplus of funds at one point, what happened? Ms. Fraley: We don't know. We thought so and they thought so too but we were recently informed that they had a deficit so there needs to be some accountability there and an audit like Larry mentioned. Ms.Yukimura: Well the other thing is if it's not too late to get the Legislature to authorize an audit this year, so that it can be done during this year and to look at the law because doesn't the law and I think the law has to support the cost of bringing in these beverage containers. I mean arguably you could raise the deposit one more cent and then cover the deficits on all the islands or the... April 16, 2012 Public Works (Operating & CIP) continuation p.48 Ms. Fraley: Well the law states that half cents that there's this one cent non refundable fee that supports this program at this time. The law states that once the redemption climbs above 70% that another half cent can be charged to the customer a non refundable half cent. So that's one way that monies could come into the program to support our grant and other activities to administer the program however right now there is a house resolution that is urging the department of health not to charge that half cent, not to raise the fee, before an audit is completed. Ms.Yukimura: Okay well. Ms. Fraley: So there is activity at the state level the ledges. Ms.Yukimura: Oh okay so an audit is trying to be authorized? Ms. Fraley: Yes but at the same time we are saying don't increase the fee which is a concern to us. Ms.Yukimura: And we are over the 70%recovery rate? Ms. Fraley: Yes about 80% and we have been for many years. Ms.Yukimura: You know that is a remarkable record to celebrate actually because 80% of all the beverage containers are being recyclable through this law and it's quite astounding. I'm just wondering if council intervention or support for certain legislative options are important. Ms. Fraley: Yes I would say. Ms.Yukimura: This year. Ms. Fraley: Yes I would say and appreciate it. Mr. Dill: We are drafting testimony to support both an audit but also an increase in the fees to help support that program. It's interesting that the program success is also a challenge for because the more successful the program the less money is available to run the program. Ms.Yukimura: Yes that's very ironic. Chair Furfaro: Larry did you just say you've already offered testimony on those 2 topics. Mr. Dill: We have drafted testimony but haven't submitted it yet. Chair Furfaro: Oh draft but haven't submit yet. Could you send a draft of that to the council as well? Mr. Dill: Sure. Ms.Yukimura: So the resolution is pending? Ms. Fraley: There are 2 and it's just crossed over at this time. April 16, 2012 Public Works (Operating & CIP) continuation p.49 Chair Furfaro: Okay Larry, thank you. Vice Chair Yukimura you still have the floor. Ms.Yukimura: Well I need to ask my question about the materials facility? Chair Furfaro: We can come back, we can come back. Ms. Yukimura: Oh I can ask it. I would like to have a status report on the materials status facility? Mr. Dill: We had done a lot of work this year on the materials status facility in house and we have not yet reach the conclusion as to whether the facility would be best as a county owned county operated or county owned privately operated or privately owned privately operated facility. So as we have not reached that point we are really not ready to make a presentation to you. We are very close to altering (inaudible) we need to make that decision but in working with the administration we haven't got to that point of establishing the direction for that. Ms.Yukimura: So is there any money in the budget for it for this year? Mr. Dill: No we have not put money in the budget for this year but depending on the decision be made shortly and on the direction then hopefully we would see money in the May submittal. Ms.Yukimura: I think the council needs to be briefed on the options you're looking at and the implications for operational costs and other issues. I mean it's not just an administration decision. Mr. Dill: Well I would like to think that the administration needs to come up with a recommendation before the council has its proposed direction and then I agree with you we would certainly cover the options, pros and cons of each and support the recommendation that's being given. Ms.Yukimura: And you're going to do that all before the 6th or whatever the date is? Mr. Dill: Well I hope so yes. Chair Furfaro: When do you think that would happen? Mr. Dill: When do I think that would happen? Chair Furfaro: Yes. Mr. Dill: I'm... Chair Furfaro: I mean should I be scheduling a call back session for the council just to talk about... Mr. Dill: Maybe just a special session for the council just for that issue. But until we agree with the administration on the direction on which is the proposed solution to April 16, 2012 Public Works (Operating & CIP) continuation p.50 pursue, I wouldn't request that you call a session until that happens. I feel we are very close to do that. Chair Furfaro: It is in our overall plan right? Mr. Dill: Yes. Chair Furfaro: Okay Council Vice Chair you have the floor. Ms.Yukimura: And it has been delayed in the plan for about 4 or 5 years so... Chair Furfaro: I don't know if that long, maybe more like three but it's been awhile,Alison could you share that better with us. Is it closer to 3? Ms. Fraley: Closer to 3. Chair Furfaro: Closer to 3? Ms. Fraley: Closer to 3 yes. Mr.Yukimura: Okay but in the meantime our landfill is filling up and we have to spend money to extend it? Ms. Fraley: Yes. Ms.Yukimura: And I mean we at least the council has said it's a priority and every session you've come to us and you've said you're going to report to us or have it in the budget and include a report to us to show us that we were going to proceed for the last six months for about every six months. Alright well I think anymore delays is really too long so I hope we can get it reported to us and included in this budget, Thank you. Chair Furfaro: Okay, Mr. Bynum. Mr. Bynum: I have 2 questions and I'm going to stop crying over this spilled milk okay but I do want to talk about the implications of that. First the simple question, projected revenues for fiscal and this is regarding residential refuge collection. Projected revenues for fiscal year 11/12 were 2.7 million, revenues received by February 1, is 1.7. Is that below your expectations and do we know what those factors are? It's a million dollar difference and the tax bills went out in January and maybe they all hadn't come in by then or is there an update to these numbers because it's April now? Mr. Tanigawa: Yes Councilmember Bynum I can update you. We just got the very recent information as of last week we are up to 2.77 million dollars so we are just about to... Mr. Bynum: So right on target. Isn't that great when you get an answer like that? Thank you. I sent over written questions previously and I think there's an update coming so first I want to take responsibility for wording those incorrectly and you folks responded to the request I made but one of the questions was and I'm going from memory. Isn't it true that when we adopted the integrated solid waste plan we were going to and our major goal was to avoid horizontal.... Oh what's this? Vertical yes, wasn't one of our primary goals to avoid any further vertical expansion of the Kekaha Landfill right? That was a major goal and in my correspondence I said lateral and you answered it correctly, it was my fault and I used the wrong word. I'm pretty April 16, 2012 Public Works (Operating & CIP) continuation p.51 clear in my mind that that was a major goal to avoid vertical expansion of the land fill. Now we are relying on that, is that correct? I mean in order to and there is no way for us to avoid a vertical expansion on the landfill at this point. That's a question, is there any way for us to avoid a vertical expansion of the landfill? Mr. Dill: That will be (inaudible) upon a few things and I think the most significant of which is how soon a new landfill can be brought on-line and also on how successful waste diversion efforts are. Mr. Bynum: Right and what is the estimated cost to the county of doing and using and closing that... was is the additional cost related to a vertical expansion? Mr. Tanigawa: Excuse me. The additional costs are substantially less than the cost that we experience with the lateral expansions. We started developing figures so we know where we need to go as far as funding and how much capacity we would have when we approach the council to make a recommendation on that. I don't have that figures with me but I can get back to you. Mr. Bynum: Is it 10 million? Mr. Tanigawa: No. Mr. Bynum: Less then? Mr. Tanigawa: The less vertical expansion we did at the Kekaha Landfill was within the original Phase 2 footprint. I believe the total of debt just in compass costs, planning related costs for an environmental assessment and the Department of Health permits, so just a very round figure under a million dollars. Mr. Bynum: I'm surprised and that's good news. Mr. Tanigawa: Probably much less than that for the last vertical expansion that we do. Mr. Bynum: That's way less than I expected to hear. DONALD FUJIMOTO, ENVIRONMENTAL SERVICES OFFICER: Councilmember Bynum, Donald Fujimoto, Environmental Services Officer. I think you're confusing the cell 2 lateral expansion with the vertical. The cell 2 will require about 10 million dollars and that is part of the lateral expansion and we're doing that right now. The lateral expansion had actually 2 phases and expanding on what Troy said the vertical expansion is (inaudible) as far as the additional cost because the lining is already in place it's just a matter of going up and revising our permits. Mr. Bynum: So that's a major factor that makes the cost less. Mr. Fujimoto: Yes it's the fact that it's already lined. There are other options out there and obviously you know cell 3 which was part of that original. Cell 3 is over phase 1 which is presently on-line. Mr. Bynum: No I mean that's part of what you get from being here for 5 and a half or 6 years talking about this issue and that's why I remember we were all solid we were telling people in Kekaha that's it we're not going any higher and now we need to own it. We're going April 16, 2012 Public Works (Operating & CIP) continuation p.52 higher and so I'm still concerned if we're going to be able to accomplish this goal and also in that and I will close with this and I will have other questions when we come back around. Also in that I ask and I want this on the public record and I think I have had this distributed to other councilmember's but I asked whether you were supportive of the initiative to get special council to oversee the EIS for the landfill expansion and I got a solid yes at the departmental level here in support of that. Thank you. Chair Furfaro: Before going any further let me ask you. Donald are you an engineer? Mr. Fujimoto: Yes. Chair Furfaro: What kind of engineer are you? Mr. Fujimoto: Civil. Mr. Furfaro: Okay, Troy you're background? Mr. Tanigawa: Double (inaudible)with education I have my civil background. Chair Furfaro: Okay Mr. Dill? Mr. Dill: Civil. Chair Furfaro: Okay so let's make sure we understand, we have 3 engineers' professional backgrounds here okay. Spilled milk is an accident and I don't expect accidents to happen with the engineering staff that we have here. The MURF okay is in a paid 35 thousand dollar study that is several years old, so that's not by accident and it is actually by design with the approval of this council. I would like to send over some questions that are dealing with in writing describing costs associated with the one vertical expansion and the 2 laterals. I want to get an understanding what that costs are so we can look for the money and in June when we are talking a bond visit again let's let the council have some idea of these costs for these 3 extensions. I think you folks understand what we are saying here. We are very professional about this but this is taking much, much too much time and now it doesn't look like we're really focusing our attention on what the costs are and how we get moving. That's my observation after being on the council for 10 years. In 2004 we started a lot of dialog about this and I think we know where we need to be and we need to do it Mr. Dill by a design plan to get us there. I think you folks agree it's a big item its costly and we need to be focused on it because it's only going to lead us to other questions about Kekaha having to host that facility for a longer period of time which brings up a whole new set of questions. I would appreciate it if you answered the questions about the cost related to 2 laterals and 1 vertical so we see it in writing. Okay Mr. Rapozo. Mr. Rapozo: Okay let me change subjects real quick because I have a feeling we're going to go back to that subject. Chair Furfaro: I want you to know I'm pau with it. Mr. Rapozo: Okay. In other services in the recycling division on page 250, there's an increase in over 350 thousand dollars, could you explain I see the breakdown but I'm not sure where... is that all in the Kaua`i recycle, Kaua`i is spelled wrong by the way. Is that 35 plus thousand is it in there? April 16, 2012 Public Works (Operating & CIP) continuation p.53 Ms. Fraley: Mainly in the Kaua`i Recycles Program and also there's an addition in the Household Hazardous Waste Program to increase public service for that program as well. Mr. Rapozo: Okay can you explain the increases? The Kauai Recycles first of all. Ms. Fraley: Yes Kaua`i Recycles we are actually out to bid right now for a new contract. The new contract and first of all in the current contract we've continued to see growth and public participation. The last couple of years there have been a 25 percent increase in the amount of materials coming into those bins and because of that an increase in the number of hauls and that's what the major cost of this program. So we're out to bid and we don't know how the bid is going to come in but the new contract calls for major increase in hauls to provide better service to the public we've heard that people go to the bins and we don't ever want that to happen we don't ever want to discourage recycling, so increase in hauls.Also increase in the materials collected and we are adding tin cans to the program so that people can recycle their food cans and that's a commodity that's just going to the landfill that the public really wants to recycle. Also there are increase requirements to clean the sites and we know this is all going to cost money so we put our best guess and what this contract could cost. Mr. Rapozo: How does that contract work? How do we pay out for that program? So the contractor picks up our stuff? Ms. Fraley: Yes the way the contract works is we rent the bins. Mr. Rapozo: We rent the bins? Ms. Fraley: Yes we don't own the bins the contractor provides the bins for us. They provide all the hauling services as well as the processing of the material they mark the material recycle it and report back. Mr. Rapozo: And then they keep the material? Ms. Fraley: Correct. Mr. Rapozo: And get paid off of the material? Ms. Fraley: Yes. Mr. Rapozo: And then the household hazardous waste that's just the requirement that we're going to have to start collecting hazardous waste or is that something new? Ms. Fraley: No those are the public collections we want to increase the service and right now it's annually and what happens when people move off island or they need to get rid of their materials right away, there not able to and so we want to increase that service perhaps to twice a year whatever we can afford to have better public service for that material. Mr. Rapozo: Well what does 120 thousand get us? Ms. Fraley: Double the service right now. Mr. Rapozo: So we're at 60 right now? April 16, 2012 Public Works (Operating & CIP) continuation p.54 Ms. Fraley: Yes. Mr. Rapozo: And that's once a year. Ms. Fraley: Yes and also that covers our new battery recycling program. We do collect household batteries at the Kaua`i Resource Center now starting in March 2011, so continuance of that program as well. Hopefully increase participation in that program as people become more aware. Mr. Rapozo: Okay and the other question is relating to the expansions. The vertical doesn't eliminate and this would be for probably you Donald. The vertical expansion doesn't take away the lateral I mean it's in addition to it right?We're already doing the lateral of the first lateral correct?And then the vertical is on phase 2. Mr. Fujimoto: There are a couple of options I guess or several options. Mr. Rapozo: We did the workshop here not long ago we did that all day workshop. Has anything changed from that because you provided the numbers, you provided the maps, all the colored drawings all of that stuff so nothing has changed so we can refer back to that information correct? Mr. Fujimoto: Yes. Mr. Rapozo: Thank you that's all I needed to know. Chair Furfaro: That doesn't relieve you folks from my request. I want to make sure you know that doesn't relieve you folks from my request and I will give you until the end of the week to give us that information on the vertical cost as well as the 2 lateral: Okay any other questions, Vice Chair Yukimura. No one is raising their hand. Mr. Rapozo will you run the meeting for a little while. Mr. Rapozo: Sure. Mr. Kualii: Thank you. Aloha, just because I know you said it was submitted in error but I want to know now what's going to be resubmitted on May 8 and I thought I heard you say both ways that position 835 would end up stating in public works Hanapepe base yard. But position 835 is being transferred and re-described correct for the EM5 Waste Diversion Program Advisor? The waste division program advisor will show up in this solid waste recycling budget even though nothing is showing right now. Mr. Dill: Okay position 835 is going to stay in its classification and its opposition at the Hanapepe base yard. Mr. Kualii: As 8CNM Supervisor one? Mr. Dill: Correct. Mr. Kualii: And it's a dollar funded position but it's going to be funded at the WS10level? Mr. Dill: Yeah if that's its current level than it's correct. April 16, 2012 Public Works (Operating & CIP) continuation p.55 Mr. Kualii: In the budget it says WS10 but under the dollar item its blank, so it's not budgeted for in the public works Hanapepe base yard line item. Mr. Dill: Right. Mr. Kualii: I think the reason it wasn't budgeted there is because is because you were transferring it out to solid waste but then I'm looking for it in the solid waste listing of positions where the dollar amount with a position titled EM5 Waste Division Program Advisor since you said that's what it's being re-described as and I just done see it. Mr. Dill: Right and as indicated before that was an error. Mr. Kualii: Okay getting pass that it was an error, what is going to be Yg gp g g correct? Mr. Dill: Okay so position 835 is going to stay at the Hanapepe base yard at its current designation. Mr. Kualii: So the error was that it had no dollar amount for the WS10 classification. So what is the correct dollar amount that's going to be put back in? Mr. Dill: I'm sorry I don't have that number with me. Mr. Kualii: Okay I want that number? Mr. Dill: Okay. Mr. Kualii: And what is the correct number for the EM5 Waste Diversion Program Advisor position that's going to show up in the solid waste recycling budget and then it's not a re-described position anymore it's a new position right? Or is it some other position that's being re-described? Mr. Dill: The position we planned to use for that is position 827. Mr. Kualii: Position? Mr. Dill: Position 827 that was the superintendent of highway construction. Mr. Kualii: Okay so isn't there 2 positions, 835 the waste diversion program advisor and position 827 for the waste diversion supervisor. Mr. Dill: No. Mr. Kualii: It was pretty clear that when Larry talked about it the other day or... so that's the same position. So 835 is staying so that's no longer the issue, 827 is the position that's going to be the EM5 and what is the title again, Waste diversion Program Advisor or Waste Diversion Supervisor? Mr. Dill: Waste Diversion Program Advisor. April 16, 2012 Public Works (Operating & CIP) continuation p.56 Mr. Kualii: Okay and that will be paid at EM5? Mr. Dill: Yes SR-22. Mr. Kualii: Oh SR-22. Mr. Dill: Yes. Mr. Kualii: And it was EM-R5? Mr. Dill: EM-5. Mr. Kualii: EM-5 I'm sorry. When it was the Superintendent of HC&M Highways in the roads admin, and that position will start on November 1 so it has 8 months funding? Mr. Dill: We may come back in the May submittal and request 12 months funding for that. Mr. Kualii: Because you anticipate being successful with the recruitment earlier than later? Mr. Dill: There's someone in that position already. Mr. Kualii: Okay. So you will come back and request 12 month funding? Mr. Dill: Most likely yes. Mr. Kualii: The other position is 1064 Refuse Collection Crew Leader, BC-9. Ms.Yukimura: Where is it? Mr. Kualii: Page 245 the list of positions for solid waste recycling. The Department of Personnel Services shows that it's vacant since September 5 of 2011 so just September 5 but under status of recruitment it just has department handles internally. So how is the department handling that internally? Is it currently under recruitment? Have you filled the position since it's been vacant since September of last year? Mr. Tanigawa: I don't have the details of that but what I can do is go back and we'll check on that and we can get back to you. Mr. Kualii: Okay that's position 1064, vacant since September 5 and recruitment status according to personnel is department handles internally so you can get back to me. Mr. Rapozo: Thank you, Councilmember Nakamura. Ms. Nakamura: Thank you for your report. I wanted to ask you a question about public education mainly because of the plastic bag ordinance and the shift now from plastic to paper. I thought part of the component was going to be public education component to try to get people to shift from now paper to recyclable and bringing your own bags, but when I go to the store I April 16, 2012 Public Works (Operating & CIP) continuation p.57 don't observe that. I observe a lot of people using paper bags and so I'm just wondering if there is any place in this budget that moves us in that direction or is it the role of some other entity to do that? Ms. Fraley: Well the public education budget could be used for those purposes and initially when the law went into effect we did radio campaigns, we did some news ads, we worked with the Chamber of Commerce, but your saying as a customer you're not seeing it at the stores and probably more could be done in those areas. Ms. Nakamura: And what is the line item budget for public education? Ms. Fraley: Its on page... we have a recycling budget for it and it's on page 250. Ms.Yukimura: Okay. Ms. Fraley: There is an increase this year, last year it was 20 thousand and we're making the request of 45 thousand this year. We plan to increase and we found that radio promotions are very successful and though we do want to do some other work to increase public education this year. So we want to continue with intensive radio ads for all of our different programs especially event type programs like electronics and household hazardous waste. We may be doing special print jobs and promotional pieces like what you're talking about for the bag program and banners for the stores and things like that, and also working to educate students as well. Ms. Nakamura: So your current budget this year was? Ms. Fraley: 20 thousand. Ms. Nakamura: Okay so you're doubling it. Ms. Fraley: Yeah a little more than double well yeah more than double 45. Ms. Nakamura: Okay thank you. I also had a question relating to the former (inaudible) site. There were things about toxic waste at that site based on the previous operations. Is the cleanup of that in this budget? Mr. Tanigawa: Right now we're working with consultants to try and assess the level of contamination if any. We have done partial assessments on the site already and we're working to complete full (inaudible) testing on the entire site that was used, area's that were used. We will have more information about cost once we have that done we will have some preliminary numbers in a couple of months because we have our consultants looking at the results and they're going to formulate some recommendations and cost estimates for us. So we'll have more information to discuss with you folks when we reach that point. Ms. Nakamura: So there's probably nothing in this budget to address the concerns? Mr. Tanigawa: No we don't have any. Ms. Nakamura: Yeah and we would be looking for that in the next budget. Mr. Tanigawa: More than likely yes. April 16, 2012 Public Works (Operating & CIP) continuation p.58 Ms. Nakamura: Thank you, those were my 2 questions for now. Mr. Furfaro: Thank you I had a question. This is also for Clint in the Finance Department for solid waste and so forth. Larry how periodically do we review capital improvement investments at the landsite?At the land field? Mr. Dill: Oh at the land field. Mr. Furfaro: Yeah equipment that we have there, investments? Mr. Dill: I know that our Solid Waste Division staff visits there regularly but I don't know the schedule off hand. How often? Mr. Tanigawa: Weekly. Mr. Dill: Weekly. Chair Furfaro: Okay and do you submit annually a financial statement about the value of those assets that are there? Mr. Tanigawa: Council Chair right now according to our contract sanifill or waste management provides all of the heavy equipment at the site and what the county provides is fairly minimal, small tools and I think the largest price item in this year's current fiscal year 2012 budget we replaced was a personnel cart. It's a four wheel drive that can get in all areas of the site but beyond that we have smaller tools. We don't have a regular report the bottom line is and if it's the desire to get that in place and more consistent reporting on that we can look at that. Chair Furfaro: I don't think that's so much of a request coming from the council. We had a little bit of a quarry about the purchase of a large earth moving machine two years ago and so forth so I just for financial recording it's required for us to have a detailed inventory of what our items are. Maybe since the majority is actually coming from the contractor do you request from them to indicate to you to fulfill the contract of what equipment is on the facility, on the property for the use of them fulfilling their contract. Mr. Tanigawa: We have some equipment required in our per bid bin, those primary pieces of equipment have basic functions that we do require to be in place. We had recently asked them for information on what equipment is going to have to be replaced in the near future and... Chair Furfaro: Well that's where I'm going. I'm starting to have a little bit of a problem that they provide us a list of items that we have to replace but they're interpreted as being their equipment? Mr. Tanigawa: Well actually it's equipment that they own that we are asking them for information so we can foresee ahead of time these pieces of equipment that are going t o be changed. We don't want the equipment to be on site because of age and wear and tear and it ends up going down. For example compactors, compactors are a major piece of equipment and while we can sustain land field operations without that we end up losing airspace because there isn't the efficient compaction... Chair Furfaro: Yeah but that's provided in their contract right? April 16, 2012 Public Works (Operating & CIP) continuation p.59 Mr. Tanigawa: So we ask them for that type of information but we don't ask them for any detailed financial information. Chair Furfaro: I think I want us to start okay? Mr. Tanigawa: Okay. Chair Furfaro: I it's the terms of their contract that they're providing us, earth moving machines, their providing us with compactor information, the deals with the life eventually of our land filed and so forth and we have a contract with them and they're suppose to provide that to us. I would like to see that we start each new year knowing what equipment they have and especially if they amortize it off the property when it leaves we can verify that its gone and they have a replacement item. I think that is reasonable that we have some detail to their contract. I forget what piece of earth moving equipment it was last year we were dealing with a piece that would scrape the collections out of the metal wheels and so forth. I think our employees though that was a new piece of equipment that we gave but reality it's part of their contract and so for them to fulfill the contract obligation we should have at least a list verify the list of equipment that's theirs that's at the site. If you could do that for me I would certainly appreciate it and I can ask Clint to get involve too. Would you make sure that happens? Let the record show he is acknowledging with a nod of the head, thank you Clint, any other questions?Vice Chair then Mr. Bynum. Ms.Yukimura: Yes thank you I just want to say that it might be 3 years from adoption from our solid waste plan but it was a year or 2 before that and the MURF wasn't even in the draft plan and it was only until zero waste Kaua`i brought in Eric Nordmeier and Gary Heu went to visit the MURF there that it got into the plans. And ten million dollars later we don't have a MURF and we don't have the jobs that the MURF would create either. This expansion of the land filed is not going to create jobs like a MURF will. I wanted to ask about your completed pilot curbside recycling program. Do you have a evaluation report on that? I don't need to hear the factors but can you submit that? Ms. Fraley: Yes. Ms.Yukimura: Also your residential refuse collection, is that a study? Ms. Fraley: No that's the program where we collect the fees from the residents for the refuse service. Mr.Yukimura: Oh good okay. Well congratulations on that that's a big step forward. Ms. Fraley: Thank you. Ms.Yukimura: Also congratulations on your 25% increase in recycling. That's a hefty increase and really is testimony to your good work. My next question is, have you explored the... I mean I'm looking at this 120 thousand for 1 household hazardous waste collection? Ms. Fraley: It would be for 2 plus the battery recycling. Ms.Yukimura: The what? Ms. Fraley: I'm sorry the household battery recycling. April 16, 2012 Public Works (Operating & CIP) continuation p.60 Ms.Yukimura: Plus the batteries so its covers that as well? Ms. Fraley: Yes. Ms.Yukimura: And then there's 55 thousand for used motor oil collection. Ms. Fraley: Yes. Ms.Yukimura: So that's a 175 thousand. But then there's electronic recycling which is 80, I mean that's over 200 thousand. What is the value of a charm, just opening up a charm so that people can come day after day during the year then you don't have to do these special incident... I mean the logistics get more expansive and you do this for 10 years you might pay for a charm. I'm sure it doesn't just include the cost of the building and it's more complicated than that but over time it seems that it could be cheaper. Has anyone done an analysis of this? Ms. Fraley: Well that's the goal of the integrated solid waste management plan is to have ongoing collection services for these items. I want to say that the motor oil program is ongoing and we have it at all the transfer stations and that's a daily program but for electronics we are hoping to expand the program so we can have more consistency. We have the State Law in place where manufacturers are required to have programs but all they've offered were mail back programs. There have been activity at the legislature to amend the law to make it better on the neighbor Islands but they haven't been successful. What we've seen is the manufacturers actually contracting recyclers on O`ahu to hold events on the neighbor islands and we've recently received a zero bid for an event that we're going to be holding in a couple of months which is much different than the high price of that we paid for a very successful event in October. We are seeing this program forming and fluctuating and we're hoping to take advantage of the manufacturers support in the next fiscal year and have a much better program and maybe even something where computers could be collected by appointment and something that's open on a way regular basis than once a year. That's always the intent is to provide better convenience for the public and we know that's how they can participate is if the programs are convenient, that's the goal. Ms.Yukimura: Okay but I haven't gotten the answer to my question which is... have you looked at the value of opening a charm? Couldn't the manufacturers focus their money and pay us for operating the charm because we're going to be the site of collection of their recycled electronics. Ms. Fraley: So a permanent facility is in the plan but it's farther out. Our goal is to get that MURF going first. Ms.Yukimura: Yeah but what is the timetable for the charm? Mr. Fujimoto: Year five. Ms.Yukimura: Well we're in year three so you say year five you start the Y Y YY Y planning and design of the charm or you open the charm? Mr. Fujimoto: I think that's the timetable for that. Ms.Yukimura: I'm sorry I can't hear you. { April 16, 2012 Public Works (Operating& CIP) continuation p.61 Mr. Fujimoto: If I remember correctly, in year 5 the charm is supposed to be scheduled to be open. Ms.Yukimura: Okay so who's doing the planning leading up to the opening in year 5? Mr. Fujimoto: Again this is an ongoing process and I think I should be the last one to explain to you really the issue and the reason why primarily we're behind. A lot comes down to the economics and the affordability and how fast we want to push this through. I think there was definitely a big period of when the economy and everything slowed down and at that point there was a conscious decision to slow some of these developments of the integrated solid waste management plan. Ms.Yukimura: There was a decision to slow down the management plan; is that what you're saying? Mr. Fujimoto: Yes. Ms.Yukimura: Who made the decision? Mr. Fujimoto: Well part of it if you remember part of it was also required because of the union agreements. We wanted to initiate some of these plans sooner than later but the plan was not accepted so we were asked to wait until the plan got approved. Ms.Yukimura: Excuse me I'm not sure that unions are involved in electronic recycling. Mr. Fujimoto: Well I'm talking about... Ms.Yukimura: Or hazardous waste. Mr. Fujimoto: Right there are other issues in this plan that has a higher priority and you were talking about one of them and that the MURF. We are still actively trying to p Y Y g Y Y g get that online. Ms.Yukimura: So the 3 year delay of the MURF is not only delaying the MURF but it's also delaying the charm and all those issues? Mr. Fujimoto: Yes. Ms.Yukimura: You know that's the first time we're hearing this. Mr. Chang: Vice Chair excuse me for the public again can you remind us what is charm please? Ms.Yukimura: Thank you, you're right, charm is an acronym shame on me for Center For Hard To Recycle Materials. It involves electronics, hazardous waste and other such items. I'm sorry that I missed that. Chair Furfaro: Now we all know it's not a breakfast cereal we're good. Mr. Bynum.Yeah you have to lighten up things here sometimes okay. Mr. Bynum. April 16, 2012 Public Works (Operating & CIP) continuation p.62 Mr. Bynum: I want to follow up on something JoAnn said and then ask my 2 questions. Excuse me for the straight talk okay, Donald what you just said is very significant that there was decision made to slow down the integrated solid waste program. I believe that was a political decision and so I do not hold the people that are sitting up there responsible for these delays. What you just said is the first time anyone has said it and that's been my assumption all along just from reality to just look and see. You left this position vacant for an existing amount of time, we would ask questions and there would be no movement on it so I wanted to say this publicly. I'm not holding you guys responsible for that, those were political decisions and the problem is, it wasn't "together we can", it wasn't collaborative, no one came to the council and said we think for these reasons we should slow this project down. What we heard officially was we got the plan we're on it and we're working on it. So that's my political comment. My question has to do with the big picture, last year solid waste expenditures were about 12 million and this year the budget is for 14.4 right? Revenues are up because of the trash fee collection primarily and so we're anticipating revenues of 6.2 million for a 14 million dollar budget. So obviously that doesn't jive because revenues are far lower than expenditures. Now the 14 million I'm hoping your budget is somewhat tighter then it was because of this lapse factor that administration has told us about, that you're budgeting tighter. We all know we probably won't expand 14 million this year, at the end of the fiscal year we have a 14 million dollar budget right... does this makes sense of what I'm saying so far and so this year and I'm very appreciative of this 5 million of that 14 million is coming from a fund balance you were holding in solid waste. I don't think it's appropriate and the administration has agreed and I think that's one of the places where we have agreement this year that these funds that need supplement from the general fund should not be holding bin balances at the end of the year. We should look to end the fiscal year with a pretty small fund balance and I know solid waste has set aside some funds for land field closure so taking those out you know... so that means for this year the contribution from the general fund is 2.3 right to get to the 14 million but we're using 5 million, 5.7 million from the fund balance. So just going forward let's say our actual expenditures are 13 and our income is 6.2 then we're going to be looking at the next fiscal year at supplementing from the general fund at around 6 or 7 million. Does this all make sense? Okay and so I just wanted to make sure we were all on the same page about this when looking at the big picture. I very much appreciate that the administration not only in the solid waste fund but others isn't going to be holding in essence what the general fund balance should be in the receiving funds. Chair Furfaro: Mr. Bynum could you go over those numbers one more time so they can write them down as you reconcile.... Mr. Bynum: Sure well I mean it's all right here from the CAFR in the budget. Chair Furfaro: No but I think hearing from you on how they can reconcile... Mr. Bynum: Well last year's actual expenditures in the solid waste fund was 12 million 13 thousand. Now the budget was much higher than that but like most of our budget we don't expand every dollar we budgeted and so the actual cost was 12 million to run solid waste. This year's budget is 14 million 4 hundred and 23 thousand and to get that you have 6.2 million dollars of revenues from fees and I assume primarily tipping fees and trash collection fees primarily. You have a 5.7 million dollar contribution from the current solid waste fund balance and 2.4 million being transferred in from the general fund to get to your budgeted amount of 14 million 423. I just wanted to make sure we were all in agreement about those numbers and how we got there and also that it has implications for the next fiscal year and it gives us somewhat of an idea and there's actually a question at the end of this too. It gives us somewhat of an idea of what kind and if we're �'i April 16, 2012 Public Works (Operating & CIP) continuation p.63 managing our solid waste fund properly which means we make sure there's enough funds to get through the year but not a big surplus at the end of the year. Then we evaluate and on the next budget we put the funds in that we need and we can anticipate and FY-14, we're not going to have that 5.7 million dollar fund balance to plug in here so we're going to need to be prepared to supplement the solid waste fund in around the 6 or 7 million dollar range. Assuming that cost generally stays the same and here's the question, is there some big cost item in terms of this operational budget that the council is not aware of that's coming up other then kind of normal increases. Chair Furfaro: If you're not prepared to answer that right now will take a 5 minute tape change and you can answer it after the tape change. Mr. Dill: Actually I was going to ask Council Chair and Councilmember Bynum if you could put that over in writing and we'll respond to that in writing and make sure we get you a good answer. Mr. Bynum: Okay is there a staff member that wrote this down? If not they should come ask me. Mr. Dill: Okay. Mr. Bynum: I just... we're getting back to the kind of budgeting that I thought we should have and I'm very happy about that. Chair Furfaro: And it's taking us awhile to get there but we're on the right track. Mr. Bynum: But it's reasonable at this point to say, are there things on the horizon that's going to bump that higher than the kind of normal increases of cost. Ms.Yukimura: May I ask a question? Chair Furfaro: Just one moment. Ms.Yukimura: Related, related. Chair Furfaro: I understand but that will be the second question that we won't expect the answer until Friday rather than the 2 day turnaround. Yvette do you have that? Okay very good, Vice Chair Yukimura. Ms.Yukimura: So related to this because we're going to start paying principal on our bond monies, are the bond payments included that are attributable to solid waste costs included in our operating budget for solid waste. Mr. Dill: I would have to ask the Director of Finance to respond to that question. Ms.Yukimura: Okay and you can add it to your question that you'll be answering but they may not I don't know if there are bond payments that are related to the present land field but there certainly will be for the land filed expansion at Kekaha and the new land filed cost.You start putting that in and you begin to really see what solid waste is costing us. April 16, 2012 Public Works (Operating & CIP) continuation p.64 Chair Furfaro: Okay now on that note Mr. Bynum will still have the floor but Y Y Mr. Rapozo has a follow up question on this item, but we're going to take a 10 minute break and when we come back Mr. Bynum will have the floor, so hold on Mr. Rapozo. Mr. Rapozo: Mine is not a follow up question. Chair Furfaro: Okay so we're going to take a 10 minute break a tape change and when we come back Mr. Bynum still has the floor. There being no objections, the Committee recessed at 2:35 p.m. The Committee reconvened at 2:54 p.m., and proceeded as follows. Chair Furfaro: Okay we are back from recess and Mr. Bynum you have the floor. Mr. Bynum: I'm going to pass. Chair Furfaro: Okay Mr. Rapozo you were going to have a new item right? Mr. Rapozo: Yes thank you. I just wanted clarification on the indirect cost. I noticed it went up from two hundred thousand from seven hundred to nine hundred, does anyone know the indirect cost there is no explanation? Mr. Dill: That was our cost allocation for service support from our Finance Department. Mr. Rapozo: So what are we getting for that extra two hundred grand?Are we getting lunch or dinner or? Mr. Dill: Not that I'm aware of. Mr. Rapozo: So what's the increase anyone know? Mr. Dill: I would ask that maybe Mr. Barreira would be able to address that and if not maybe we can ask the Director of Finance because that's an allocated cost. Mr. Rapozo: Yeah I understand that and this two hundred grand I don't know what we're getting. Maybe we just send that over. Mr. Dill: Yeah. Chair Furfaro: Larry you're sure that's not some new allocation for legal fees? Mr. Dill: No and my understanding is that's an increase of the exsisting allocation.. Mr. Rapozo: Yeah I understand that and this two hundred grand I don't know what we're getting. Maybe we just send that over. Mr. Dill: Yeah. April 16, 2012 Public Works (Operating & CIP) continuation p.65 Chair Furfaro: Larry you're sure that's not some new allocation for legal fees? Mr. Dill: No and my understanding is that's an increase of the existing allocation. Chair Furfaro: Okay. Mr. Rapozo: That's a big increase. Mr. Dill: Yes and that's why we pointed it out. Mr. Rapozo: So I just want to make sure and Wally is around maybe we can get Wally to come in. Chair Furfaro: I think Wally left for a staff meeting today that's what he told me. Mr. Rapozo: This is the most important staff meeting on the planet Mr. Chair. Chair Furfaro: Yeah well he did check in with me and that was the answer, he's working on some things for a future committee for Mr. Bynum. Mr. Rapozo: Okay and just one more question and it's pertaining to the Host Community Benefits Facilitator. Is that going to be a recurring fee every year? I thought we hired a facilitator to help set up the process but is that going to be something we do every year? From what I understand the process was set up and they already started to award some money. Are we going to pay 80 thousand dollars a year for her to run a meeting or... Mr. Dill: I don't know the answer to your question. Chair Furfaro: I have the answer, well I have the information I don't know that I have the answer. I had a separate meeting with the CAC, I understand that the current contract would be completed in May. I understood the CAC had indicated that it would have only been a onetime need for them they've already started awarding some projects. That's all I know at this point and it was after meeting with the Kekaha... Mr. Rapozo: Actually you and I met with them here. Chair Furfaro: Oh yeah you were part of the group. Mr. Rapozo: That's why I'm surprised to see it in the budget again because I thought that was done; I mean the last council put in 90 thousand dollars to facilitate to get the process started and from what I understand it's moving. Chair Furfaro: That will be a good piece for our plus and minuses but I believe both Mr. Rapozo and myself are under the understanding that when the contract runs out in May there is maybe not an effort to redo it but now to focus on projects. So we will save that for our plus and minuses. April 16, 2012 Public Works (Operating & CIP) continuation p.66 Mr. Rapozo: I would much rather put that 80 grand into the fund for community work then a facilitator that might not be needed at this time. Thank you. Chair Furfaro: Yes Mr. Bynum has a follow up question on this subject, go ahead. Mr. Bynum: We have money going into the fund every year couldn't the community group decide to use some of that for administrative cost if they chose too? Ms. Fraley: Yes. Mr. Bynum: Thank you. Chair Furfaro: I am sending a note out to Mr. Bulatao and his group that this will obviously be a discussion item on Thursday when we go into the CIP discussion if any of them wanted to be available Thursday was the day for that with CIP. Vice Chair Yukimura and then Mr. KipuKai after council vice chair. Ms.Yukimura: Regarding that indirect services line item I think there's been increases in lot of the departments and so a report from the Finance Director as to how these allocations are being made will be very helpful. Chair Furfaro: Okay so the staff will direct a question over if you can make a note we will send one question over to the Finance Director asking for some background information on the increase across the board in reallocation expenses for various departments. Mr. Barreira did you hear that?Very good, a separate memorandum and you still have the floor. Ms.Yukimura: My other question is on your procurement of bio-solids diversion services can you explain a little bit about that? Mr. Tanigawa: Yes what we're doing is we're preparing an RFP to go out to solicit proposals from various service providers and we're not targeting any specific type of processes or technology. We've been approached by a few firms that have different types of systems that they Y Y claim can manage bio-solids.We are also going to be asking him to manage headwork screenings and grit that's also a byproduct of the waste treatment process that pose potential nuisances at the land filed. It just makes operations more tedious and difficult so we're going to try and go out for that service as soon as we can. We are targeting before the end of the fiscal year to get something out on the street and we hope to find some feasible alternatives. Ms. Yukimura: And are you involving you in house contractor John Harder on this? Mr. Tanigawa: I don't think he's been involved a lot in it. Ms.Yukimura: Except that on Maui he's very familiar with Maui's program of sewage and mixing it with the green waste to come up to this high quality soil conditioner. It was done during his term as Director of Solid Waste so I would think you would drawn on some of his background information about a process that seems to be working well on Maui. Mr. Dill: Okay thank you we'll be sure to involve him in that. Ms.Yukimura: Thank you. April 16, 2012 Public Works (Operating& CIP) continuation p.67 Chair Furfaro: Please do Larry and I also understand that more and more the Feds are frowning on mixing these dry solids with product that might bake in certain areas so I think that would be part of the discussion as well would it not? Mr. Dill: Yes. Chair Furfaro: Vice chair are you done?Mr. KipuKai. Mr. Kualii: Thank you Mr. Chair, so on the solid waste recycling division budget page 248 that has a detail on the lease. The lease line item from 541 thousand last year went up to 738. There is some detail and in order to try and understand it because it just says second of five year lease but it doesn't say what type of equipment. I looked at last year's budget and there was some detail there to so I think I was able to make some determinations that of the top five the bottom of the third five year lease since last year was the second of five year was a transfer trailer and last year we pad 84 thousand and now its 74 thousand. I'm not sure why the amount changed but it went down so that's good. The other one fourth of five year lease auto collect trucks, last year we paid 143 thousand and this year it's 145. The fifth of five year lease auto collection trucks is the same amount we paid 139,906 last year and we're paying 139,906 this year. The 2 above that the second of five year lease one of them is showing 228,100 and if that is the annual payment then what is that piece of equipment. I don't see it in last year's budget so it must have been in its first year in another division or somewhere else in the county, in Public Works? What is that first equipment leased item, second of a five year lease, 228 thousand? Mr. Dill: Councilmember Kualii we don't have the details of those leases with us but we'd be glad to get back to you with that information as to what those cost are covering. Mr. Kualii: Okay and I made a request to finance I will make a specific request to you because I want to see now in that lower section where it says new lease for the following equipment. Wally said that's all the leases are 5 years and there all lease to own so that amount like for truck tractor 180 thousand, 180 thousand is just the estimated purchase price if you were buying it? Mr. Dill: Correct. Mr. Kualii: So these 4 items, 180,180,130 and 165, there's some amount you're estimating as the annualized cost of the lease for a 5 year term for each of them, and they add up to 121 thousand? Mr. Dill: Correct. Mr. Kualii: It would be interesting to know the breakdown and to assume that they are all 5 years and after 5 years we own it. The last question I had on that is after 5 years and we own it. How many more years can we own it? I know it depends on the different types of equipment but like this rear loader refuge truck, this truck tractor, I mean we're leasing it and getting it new this coming fiscal year and then we're entering into a 5 year lease and after 5 years it will be paid off and we'll own the equipment. So beyond those 5 years how many more years use we're going to get? You can answer later because it might be a different answer for the different piece of equipment too. April 16, 2012 Public Works (Operating & CIP) continuation p.68 Mr. Dill: Right and in our auto shop Dwayne Adachi is our Chief over there and he has a heavy equipment replacement schedule so he assigns a life3 to all of these guys. That information is readily available and we can get it back to you if you submit it in writing. Mr. Kualii: Okay that will all help me, thank you Mr. Chair. Chair Furfaro: Are you raising your hand no? Councilwomen Nakamura. Ms. Nakamura: Thank you I just wanted to get a clarification because I'm looking at page 240 of the budget and the Kekaha Land filed contract is 1.8 million, is that correct? That's what we pay the contractor and is that the annual payment to the contractor? Mr. Tanigawa: That's actually our annual budget requests and their actual payment is based on tonnage that goes into the land filed. Ms. Nakamura: Okay and do we know in 2011 what that was? Mr. Tanigawa: I don't have the figure off the top of my head but I can get it for you. Ms. Nakamura: Okay and so that's really the biggest line item in that category and then what I wanted to check is there seems to be some recycling items that are also part of this. The green waste processing, the vehicle metals recycling... it's under this solid waste and not recycling. Is there a reason? Mr. Tanigawa: This area of the account is solid waste programs; these are under the umbrella of solid waste programs although it deals with the waste diversion also. Ms. Nakamura: Yeah it's kind of both. Mr. Tanigawa: Yeah. Ms. Nakamura: I had a question on page 251 other supplies. So you're asking for about 860 more composting bins and I was wondering what do you plan to do with those bins? Ms. Fraley: We plan to continue with the public distribution of the bins. Right now we have about 500 bins in stock and at the current rate of distribution we giving about 30 bins out per month. By word of mouth and a little bit of promotion if we stay with that frequency of distribution our stock would be depleted towards the end of next fiscal year so we don't ever want to have a point when we don't have bins available for people that want to do the backyard composting. Instead you can add food waste to your diversion and you can also keep from traveling to the transfer station so it's a very low cost program. Ms. Nakamura: So any person or any member of the public can ask your office for a bin? Ms. Fraley: Yes and we provide an educational training at the time we distribute the bin so people will know how to use before they take it home. Ms. Nakamura: Thank you. April 16, 2012 Public Works (Operating& CIP) continuation p.69 Chair Furfaro: Okay before I go to Vice Chair Yukimura, the 1.8 million Troy we need a better understanding of that number because it seems all of the land filed numbers indicate we're going down right?We're going down with tonnage? Mr. Tanigawa: Tonnage has been low but it looks like it's picking up now. Chair Furfaro: Okay we cannot look like its picking up now with 1.8 million dollars. I'm trying to find out they charge us by the tonnage? Mr. Tanigawa: Correct. Chair Furfaro: Okay if we had an opportunity to save 10 thousand dollars a month on this billing which is 150 thousand dollars a month and a 1.8 million drops down to 168, that's a 120 thousand dollars. I would like to think that if we were wrong we could ask for more money but I don't like the numbers if at one side we're saying the land filed tonnage is going down but on the other side we're saying and the money to service the contract is going up, that's not real proficient. Mr. Tanigawa: Well the difficult thing about this contract is it's not a static number because the further the tonnage drops it jumps up to a different figure. They have operational cost and overhead that they need to support and... Chair Furfaro: But we have to have a better handle on just big numbers like this, we have to have a better handle. If you're going to tell me that there going to do... what do they do in a month? Mr. Tanigawa: It ranges from 58 hundred tons a month to right now I think the high was 64 hundred tons. Chair Furfaro: Okay so at 58 hundred tons a month and 64 as a peak okay and they have in their contract this scale that says if we fall below five four then new y a ew rate applies. I'm not even seeing that schedule do you follow me Mr. Dill? Mr. Dill: Yes. Chair Furfaro: So I'm not given an opportunity to guess on the credibility of that number. Mr. Tanigawa: Understood. Chair Furfaro: Okay and so if everything we're doing is about trying to divert and so forth then I would like to see some of the savings now even if it's only 120 thousand dollars for the year. One hundred and twenty thousand dollars a year might get us a couple more people at the dollar funded manpower line, okay? Mr. Tanigawa: Yes. Chair Furfaro: So you know lets know the situation is relatively tight and it's not for us not to try and make the numbers work to the best of our ability but we have to have some reasonable reach in their about our goals. May I just point out Clint do you know what that schedule is and at what point does the number change if we go below 5.6 thousand? April 16, 2012 Public Works (Operating & CIP) continuation p.70 Mr. Tanigawa: If I can just add to what you're saying here? g just Y Y g Chair Furfaro: Let me just finish this I want to know and he can just shake his head. Does he have the schedule?The tonnage schedule, who has the tonnage schedule? Mr. Tanigawa: I don't have it here with me but we keep it at the office. It's accessible to the staff or anyone who needs it. If I could just point out Chair that the unit rate jumps up if we fall below 6 thousand tons and it just so happens where we are we've been titter/tottering back and forth. It's been really difficult to say that we're going to be above 6 thousand this amount of time and below so what we've done in the past was we've tried to balance it to say half of the time we are here and half of the time we were here. Chair Furfaro: Okay and what is the difference? What is the difference if we're on the titter/totter and 6 months out of the year I'm on the high part of the titter/totter and the other 6 months I'm on the low end, what is the net savings between the 6 months at the high end and the 6 months at the low end? Mr. Tanigawa: I do not understand your questions as far as that savings? Chair Furfaro: Okay let me pose the question one more time and let me see if Mr. Dill understands me. Mr. Dill if 6 months of the year we're at the volume of 6 thousand tons or less and 6 months of the year we're at 6 thousand tons more, what is the difference between those 2 and why doesn't that become my savings just rather than chance um that everything is going to be at least six? Mr. Dill: Council Chair I understand the question but we don't have the numbers here but we can certainly respond to you if you put that in writing. Chair Furfaro: Okay put' it in writing but that one I would want a turnaround in 2 days okay? Mr. Dill: Okay. Chair Furfaro: Our job here is not to find out lets pad this lets have a little flat here and there. Maybe for us we want to have some reasonable stretch but we don't want everything to be a blended number.All this other money we're throwing at recycling and so forth, we have to have a pay off somewhere and to me it's in what this fee is. So we'll send it over if that number can be tightened up more than 1 million 8 and some background on it. Vice Chair Yukimura you have the floor. Ms.Yukimura: Thank you, I wanted to piggy back on 2 of Councilmember Nakamura's questions. One is the opportunity to promote the compose bins because when we were at the dispatch celebration the celebration of dispatchers week. Three ladies there were talking about the problem of not being able to burn their rubbish anymore and I mentioned to them that they could get these free compose bins and that would take care a lot of their smaller leaves and so forth but maybe not the palm fronds and those kinds of things. They were really excited to know about this program so hopefully other people in the listening audience who are feeling suppressed by the burning regulations now that are being enforced, will know there is an alternative for this and that's the composting bin. From all your analysis it looks like one of the most cost effective diversion methods. It keeps everything at home they don't have to take it anywhere and it's very cheap in terms of county cost and really helps with green waste diversion and its very beautiful substantial fgg: y[39 ti April 16, 2012 Public Works (Operating & CIP) continuation p.71 strong compose bins that last long. The other question if I can remember, what other question did you ask? Chair Furfaro: We can go to Mr. Bynum... Ms.Yukimura: No, no okay I remember. The question about why they are recycling programs listed under solid waste programs. Alison and I were talking during the break that it would be helpful if maybe next year you could look at organizing the budget in terms of diversion programs and waste management programs, to help us see the really see the differential between the two and actually conceptually if we're moving towards a zero waste goal which has been articulated by the council as our policy and goal we can begin to see how our budget is moving in that direction too, so a request for next year, no need to come back with anything this year. Ms. Fraley: Thank you. Ms.Yukimura: Thank you. • Chair Furfaro: Mr.Bynum: Mr. Bynum: Two things and I want to stick with the big picture. I like this discussion we just had about the tonnage going in the land filed and just for all of our edification and the listening audience that's so huge as Mel says millions. We all want to reduce the tonnage going into the land filed for a lot of reasons not the least of which maybe we can still avoid this vertical expansion. But there are other factors that we want to happen that will increase tonnage and part of the decrease tonnage is our recycling efforts and our diversion efforts. The other is the economy has been horror over the last few years, fewer visitors, fewer consumer spending reduces things into the land filed. There are other factors and I think most of us hope that out hotels have high occupancy rates and most of us wants the economy to be more vibrant and that will mean more tonnage going into the land filed. There's a whole bunch of factors that impact that and I think we're coming into an era where hopefully our economy is going to be more vibrant and it's just logical that there is 10 thousand more tourists here then there was last year. Each person creates some disposals in their life and hopefully we can offset that with all of our efforts to divert from the land filed with composting and other things. I thought about that too about the burning, that's going to impact the land filed, people are going to take more to our transfer stations even though not all of that goes to the land field but anyway that's a big picture. I want to go back to something Donald said something awhile ago and maybe I can give him another shot at it. It's not my impression at all that any slowdown from the implementation from solid waste came because of the union, I don't think the union has been an obstacle and if they have been correct me and this just goes back from memory of all of the meetings we've had here in the past. There was this kind of and this probably goes back 5 years or more but it was like union (inaudible) we haven't been contacted. Well we can't blame them if there not engaged in the process and I was surprised to hear that that some slow down was caused and had become because of the union and so if someone could explain that to me. Mr. Fujimoto: I would like to clarify that. We are a unique Island, Kauai is 65 thousand, Maui is 300 thousand or closer to four. Honolulu is a million and those 2 Islands already have these programs these automated collection programs and the union looked at those agreements to establish our contract. We are looking for ways of being much more efficient than those islands because of our size and because of those differences it took a long time in trying to finalize these contracts. April 16, 2012 Public Works (Operating & CIP) continuation p.72 Mr. Bynum: So that's kind of different Donald saying we want to have a contract that's works for Kaua`i and a negotiation took longer, that's different then saying the union caused the delay. So I like the (inaudible) better now it feels more comfortable to me than saying we want to make our contract and our union agreements fir for what works on Kaua`i with our population. I wanted to give you an opportunity to clarify that and you did so thank you. Mr. Bynum: Mr. Rapozo. Mr. Rapozo: Thank you, page 238 overtime for sanitation employees, 209 thousand dollars. Is that because of vacancies, shortages; is that because of holiday pay? What's... that's a substantial amount and I'm thinking if it's because of manpower then you could put probably 5 employees.What is the overtime for? Chair Furfaro: Can I add one more piece or could it also be related to shared equipment between various departments? Mr. Tanigawa: That line item regular overtime 209, 273 that is combined overtime account for both solid waste admin staff and the land field. Overtime at the facility the land field is just based on call outs primarily to fill our daily manpower requirements. There are some special projects once in awhile especially after times like when we have heavy rain we have a lot of erosion and repairs that need to be made so additional staff come on for those special projects throughout the year. We are currently in discussions to see how we can modify our facility schedule and our employee scheduling related to that to cut down on overtime and still accomplish our goals for maintaining operations according to regulations. Mr. Rapozo: Last year you guys provided us a breakdown of all the overtime and it was pretty harsh some guys were getting more overtime then they were with their annual salary. It was actually public works in general but is this an issue we need to be concerned about as far as staffing, manning, is it because of sick leave, is it because people are being and I heard earlier someone said that people from roads get sent to solid waste and gets sent to the other divisions between public works. Is that a problem? Is that something we should be concerned about? I still think that's quite high I mean we may have 1 or 2 storms a year and I don't think that's a lot of money so is it a concern? Mr. Tanigawa: Well the special projects are intermit and it's based on the need but we have increasing expectations, increasing I should say regulatory oversight from the Department of Health and their standards are increasing compared to several years ago. It involves things like small things like addressing windblown litter and when it happens at the land filed and it happens on a daily basis and it gets more severe because of stronger winds the staff time needs to be devoted. We need to call in staff sufficient to address all of the litter, erosion doesn't have to be a big storm it can be a smaller squall but when we have flagging we need to bring in employees and additional cover material. Mr. Rapozo: Let me ask you this question. Do you have someone on overtime every day? Mr. Tanigawa: I guess on a daily basis I believe. I _ Mr. Rapozo: Then wouldn't that justify a new position? Mr. Dill: Councilmember Rapozo that's a good question and we are looking and from a big picture prospective how to address some of these issues through the way we April 16, 2012 Public Works (Operating & CIP) continuation p.73 schedule our employees.As Troy mentioned we are in discussions with the union about how we could adjust the scheduling so it could be done more efficiently and wouldn't automatically create a need for overtime on a regular basis. Mr. Rapozo: Larry if you hired a new position, let's say you created a new Land Field Operation Assistant Position at I don't know what the entry level is, you wouldn't need union approval. Mr. Dill: That's true. Mr. Rapozo: You wouldn't be altering a schedule. Mr. Dill: That's true but if we alter a schedule having to add cost by adding a new person than I think we should look at that first. Mr. Rapozo: Well okay if you can get that done but this is year after year that the overtime is quite high and I see all these positions being created and I'm wow we're paying 209 thousand and we have someone on overtime everyday and probably more than one I would guess. To me that justification for a new 36 thousand dollar a year position and that's just my basic Kaua`i High School math. I'm like okay the union going get upset I don't know, I don't know if the union will get upset if we created another position or 2 even. That's I think the troubling part going through this budget because we see all these new positions and the line people not getting the help and maybe they like the overtime I don't know. I think we as the councilmember's need to figure out a way how to make this budget more efficient and that to me stands out that it's justification for another position I think a line level position. Mr. Fujimoto: Councilmember Rapozo, I guess it's not a secret but 2 years ago the Mayor in his message to the county said that he was moving towards a 5 day work week from a 4 day and that we felt would address this overtime issue. We are still in negotiations with the union on trying to move towards that schedule and I believe we are very close at this point. That's really the way that we feel we can address this without adding additional manpower. Mr. Rapozo: I guess I'm not making myself clear Donald. Adding additional manpower is cheaper than paying that kind of overtime. Mr. Fujimoto: Yes and we felt that we could get that by adding another day. Mr. Rapozo: And how close are you to negotiations? Mr. Fujimoto: We actually started negotiations. Mr. Rapozo: So when do you anticipate? Mr. Fujimoto: Well this month we're suppose to start meeting with the union. Mr. Rapozo: So you don't need the 209 thousand? Mr. Fujimoto: Well again we're not sure how long it will take. It is a very... Mr. Rapozo: You said we were real close, close is... April 16, 2012 Public Works (Operating & CIP) continuation p.74 Mr. Fujimoto: We are closer now then we were 2 years ago, we are actually talking now. Mr. Rapozo: Okay one more Mr. Chair and this is for Alison. You know with the item that composting things. Where and how do we advertise these programs? What have we used because I have to say I don't know much about it and if I wasn't on the council I would never know about it. So what media or what do we use because there's a lot of people like me that don't read the Garden Island and there's a lot of people that don't listen to certain radio stations so how do we get the information? Ms. Fraley: That particular program we have in our recycling guide which we pass out at all the transfer stations at the redemption centers at the libraries. Mr. Rapozo: Okay I don't go to any of those places. Ms. Fraley: How can we reach you? Mr. Rapozo: I don't and I'm serious because we have wonderful service now. Ms. Fraley: I'm definitely opened to suggestions foe how and we have it on our website as well. We found that word of mouth with this particular program because people see their neighbors with the bins has worked as well. We have a pretty good distribution rate but I'm definitely opened to suggestions on more ways to get the word out. Mr. Rapozo: I don't know I just was wondering what I think if you have to use the radio and you have to use the newspaper and I think maybe even taking an ad out in the Star Advertiser, because I think a lot of people buy that versus the Garden Island. Ms. Fraley: Okay. Mr. Rapozo: We have to get the word out somehow; I want one I want to get one. Ms. Fraley: Okay we'll make sure you get one. Thank you. Mr. Rapozo: Well even not I mean this show I mean millions and millions of people watch but depending on the topic I mean like today I'm sure they all changed the station already.Anyway thank you. Chair Furfaro: Okay I want to summarize Mr. Rapozo's question to make sure you folks understand it. You know we're very direct with you folks about this process in budget and this is our responsibility. Let's make sure we understand, the financial picture of the county is the responsibility of the council. Number 2 we want to be very direct about our questions but be objective about the questions. We don't want really subjective responses. I would say you need to know and nobody knows better about you folks about what happens with your operating budget, so don't take this questioning in the wrong way. We are asking this question on the need to know basis but 207 thousand dollars of overtime Donald and we have manpower straight time that's 36 thousand a year for a position plus their benefits that run about 67 percent or whatever. That's equivalent to having 2 regular additional fulltime people. You follow me Larry? How much more work can we do?How much more raking of paper can we do? How much more regular addressing can we do with emergencies? And that's what we have to weigh out to save that overtime. It's better to April 16, 2012 Public Works (Operating & CIP) continuation p.75 have more objective manpower needs. So do you follow that question a little bit more now, please I mean just understand we're asking direct questions because we're on a need to know basis. Mr. Chang than Vice Chair Yukimura. Mr. Chang: Just to follow up are we piggy backing or is zero waste piggy backing with us to get information out? Ms. Fraley: You mean to advertise our programs for us? Mr. Chang: Well their websites or their following and their people I mean Pat Gegan was here for most of the day and I don't know if he was here to testify on any item but zero waste is actually leading the charge on... Have we communicated with them to get the message out or tag team on their website or... Ms. Fraley: I haven't talked about web links with them but I attend their meetings and we definitely work together towards that goal of zero waste. Mr. Chang: It just reminds me when we started the road side recycling you folks went with those door hangers on the doors and I think it was a onetime deal and weren't we suppose to follow up with putting tape over and inspect the rubbish cans and talk to the people and I don't know if we ever followed up on those? Ms. Fraley: Yes we did you mean for the curbside recycling pilot? Mr. Chang: Yes. Ms. Fraley: Yes we did do the inspection of the carts and gave feed back to the customers all be it was later in the program that it should have been. So when we embark on an island wide program we'd like to do a very beginning by that feedback. Mr. Chang: Okay thank you. Chair Furfaro: Vice Chair Yukimura. Ms.Yukimura: I have a suggestion that might work, if you did a really tight funny or attractive ad and put it on Hoike in between the council meetings during a boring point do a break and just have some of this county information. I don't know how it would work or just a running program on Hoike and if you already have one forgive me for not knowing, I don't watch TV too often, anyway just a thought as a possible way to get the word out. Ms. Fraley: Thank you. Mr. Furfaro: I will nominate that as the idea of the year Mr. KipuKai before I address you I just want to say am I right, when I add up your entire payroll in your budget for the land field and it comes to 734 thousand dollars and 388 dollars? Does that sound right? I mean the biggest operating cost here is payroll. Now I can tell you doing that very quickly and then I have 207 thousand dollars of overtime. Twenty eight percent of our payroll in the land filed is overtime. Mr. Dill: Council Chair the salaries I see is 1.4 million. April 16, 2012 Public Works (Operating& CIP) continuation p.76 Chair Furfaro: I'm not talking about the administrative side I'm talking about the guys that qualified for overtime. But you're making my point Larry if we in fact would just simply add up the man power payroll, not benefits just payroll, even at a million its now 20 percent of your payroll. Mr. Dill: The 1.4 million all those folks qualify for overtime and so actually we just gave you those numbers a little while ago at 14 percent. Chair Furfaro: Okay 14 percent, could I accept 14 percent in the budget? Could you accept 14 percent in the budget?And if I went over 5% in a operating budget overtime in a operating hotel a sizeable one, I tell the ownership would be telling me... I think you need to hire more straight time people. That's my point and I only took land field operators class 3, land filed operating assistants and land field laborers 4, that's all I took so whatever percentage of that overtime... maybe what you're telling me is the 207 is everyone their but I didn't break it down other than the 4 descriptions that I just gave you. Have you ever looked and how much overtime is just being generated by that gg Y group? Mr. Dill: Yes. Chair Furfaro: Okay how much of the 207 is just that group? Mr. Tanigawa: Sorry chair I was just looking at some figures this morning and I think I have it here. I just have it hours, I don't have it in dollar amounts Chair Furfaro: Well I would suggest you guys go back figure it out with dollars because like the hotel I don't take occupancy to the bank, I take dollars. We want to know about cost and this is an exercise Troy I think is very important for you folks to do and I tell you I think you'll be able to let the administration know you can probably get a couple more people if you make a commitment to reduce the overtime. At least I would hope you look at it that way, so just take that exercise for yourself please. Mr. Tanigawa: Thank you Chair. Chair Furfaro: Thank ou, Mr. KipuKai. Y P Mr. Kualii: Thank you Mr. Chair. So as Vice Chair was talking about earlier and to add to her commercial and for you Alison. Actually several years ago and I'm not sure if it was you or someone before you when you started but I learned about it at a workshop probably with zero waste at a community meeting. I went in and you show a short film strip and you can get this for free and it's pretty easy and I've had it in my yard for several years now and I would just say if I can do it anyone can do it. I don't have any time but I just throw it in there and its basically I think by saying it's a compose bin it sounds like it's for farmers and gardeners and people who are serious about actually creating a compose their going to use. I just throw my stuff in there and I call it the incredible disappearing machine because my cuttings from fruits and vegetables and the coffee grinds and the egg shells. I just throw it in there and it disappears overtime and I hardly pay any attention to it but I diverting it and I think eventually people who care about the environment and the land field they know that we need to divert. Eventually when it's a matter of cost when you're limited to one trash can and it fills up with the trash that you have to send to the land file then you're going to stop putting in the stuff that you can just throw in this bin in your back yard and it will just disappear overtime. I leave the cover off so the rain gets in there so I don't have to water it and once in awhile maybe once a month or two I remember to go turn it around a little bit but it just disappears by itself. Its diversion and anyone can do it. April 16, 2012 Public Works (Operating & CIP) continuation p.77 Ms. Fraley: Thank you. Chair Furfaro: I want to give councilmember Nakamura a chance for any new questions or discussions because we have an excuse letter for her to leave at 4:00p.m. Ms. Nakamura: I wanted to just say that I had a chance to go on the road to recycling tour one of them, the one that went to the different private sector sites to look at recycling efforts. I really want to commend your office for organizing the tours and doing a really good job in educating residents on the island and I look forward to the next tour to look at the other land field sites and other facilities. Thank you for doing that because I think the education really helps one person at a time and that's one good way to get the word out. Ms. Fraley: Thank you I just want to point out that that was actually a benefit from our hi-five funding that we talked about in the beginning of our discussion. It's our staff person who's funded through that program organized that tour. Ms. Nakamura: Is that the one we may not have funding for next year? Ms. Fraley: Yes correct. Ms. Nakamura: The second thing I wanted to point out is I wanted to pass out to all of you the Kaua`i County Council Goals and I wanted to ask has any of you seen this before? Chair Furfaro: I do want to say that that was a document that was only delivered to the administration and we are hoping that it got down to you folks? Mr. Dill: I have seen this before. Mr. Furfaro: You have seen it before okay. Ms. Nakamura: Well what we wanted to do just to share with you and your staff that the county council met earlier this year to prioritize what we thought were the county wide goals and fortunate for your department 2 high goals to the top 3 goals are related to your department implementing the integrated solid waste management plan was number 1. Number 2 was a well managed capital improvement project program and just to let you know that the work that you're doing in these 2 areas it's so and I think collectively we thought that very high as the list of priorities county wide and thank you for the work you've done so far and look forward to the work ahead. Chair Furfaro: So Larry since you guys made the top 8 twice that's only means that we're thinking about you. So maybe we can send some of these copies around today. Okay Vice Chair Yukimura. Ms. Yukimura: Just on this issue of overtime on the land field I just wanted to give my 2 cents. What's been said about adding bodies is true if the cause of overtime is really bodies and I'm not sure that it is. I can see adding more bodies and still having overtime so I think you're looking at scheduling that might address it. I think tle quality of supervision and clear rules, good agreements with the union are part of it but I'm not sure that just putting bodies there is going to solve the problem. I would support a very clear analysis of what's going on in terms of causes and I think we need to do that in a lot of places in the county not just solid waste. April 16, 2012 Public Works (Operating & CIP) continuation p.78 Chair Furfaro: I think Mr. Dill understood where I was coming from right? This wasn't about keeping the overtime plus you get a couple of people, right? I mean that wasn't on the table right? What's on the table is your productivity, I mean if we keeping guys overtime to go rake the paper against the screen then why couldn't they do that the following morning because it's not going further then the screen. This is like I said our opportunity to get to more accountability, objectively I said and you guys need to go through that exercise. That's why I did a quick 8 minute exercise here to say that's a substantial amount of overtime to the point in the private practice no one would operate that in their operating budget without reducing overtime to 6 or 8 percent of the budget if I can offset 112 thousand dollars of payroll on straight time. Remember the only thing we're concerned about is not the over time, we're only concerned about the premium part of the overtime... the halftime because if you've got 180 thousand dollars worth of payroll that's on the premium side then you probably need to re-evaluate accountability here. Mr. Rapozo you have the floor. Mr. Rapozo: I was just going to say the reason for my suggestion is the description I was given was because of the special projects had the need that in fact every day someone is on over time. That's why I asked if it was a problem with people being relocated or re-assigned for the day, if we had a sick leave issue, we had an injury issue. Obviously the recommendation wasn't go create another position and continue to pay the over time so that's analysis you guys have to do. Chair Furfaro: I think they got my message after your questions and what I put down as a quick summary. So members we're coming up close to 4:00. If there are a few more questions we'll go ahead and take them. I want to get to a point where we leave room for public testimony and we finish the day at 4:30. Mr. Bynum you have the floor. Mr. Bynum: Thank you for being here today and for answering all of these questions. I just want to remind you that's it's the nature of our relationship that we're going to discuss areas where we have concerns and I don't want to lose sight of all the great work that you guys are doing. We don't just get to talk here once a year I talk to all of you throughout the course of the year and I'm very happy with a lot of the initiatives that the administration has taken. Chair Furfaro: He's a softy. Mr. Bynum: Well I'm going to say this I know I'm always redundant but it's not the nature of our relationship that we're going to talk about the areas where we have concerns or even disagreements. We're not going to have that much discussion on all the good things we're happy about and I just want to acknowledge that I know those are out there. The farm fair is coming up and the solid waste division always has a great presence at the farm fair which is great because that really educates people a lot. I'm sure we'll see the composting bins and see what they look like and so thank you. Chair Furfaro: Okay so we all know that you folks have a budget that's presented with ideas from the administrative side and of course you have questions that come up in the areas that need attention. If I would say anything to you folks is sometimes you're in a tough spot but you have to understand that the budget gets approved here, the budget gets approved here. We are a group that really wants to know... can we measure accomplishments. Obviously we can. Can we point out things objectively so that it can be done better and probably gets on your priority list? That's why we had our retreat and put together our goals so we could communicate that. On that note are there any more questions directed at Mr. Dill and his team?Mr. Dill tomorrow we have a new section and I want to know if you're going to be present because we've never had this section in the budget reviews before. We're going over all revenues and not just the cost items because April 16, 2012 Public Works (Operating & CIP) continuation p.79 budgeting is making sure we understand if we can support the revenues that are supporting those programs. So we'll be touching a little on solid waste revenues again and this waste water piece I think I mentioned it on Friday we're going to go through those, this is not just a piece about property taxes. We have all kinds of other revenues that we're going to set 2hours aside to talk about tomorrow. So if you can be available or someone from your office can answer questions about revenues for public works in all those segments, it would be very much appreciated.Although I don't see Mr. Barreira I assume Mr. Rezentes will be present tomorrow too but that's in the morning, 8:30-10:30 so, Vice Chair Yukimura. Ms.Yukimura: Yes I'm going to not ask and talk about the questions I have further today. Well I guess what I want maybe next year is a clearer picture of our diversion goals and efforts and like a five year plan or something tied to our integrated solid waste plan. If its 2 years delayed then tell us, but tell us what the next target date is and when are you going to do pay as you throw, when are you going to like what is the plan for green waste composting and pick-ups. I know that might be part of your negotiations I don't know. Just so that we have kind of a long range idea of where you're going, you have targets and you can say this year we're going to do this. Than you can come in like you did this year you said we've completed automated refuge collection and we've completed the residential refuge collection assessment so we can congratulate you and you can congratulate yourselves because those are major accomplishments. That would just give us a sense as to where we are and how we're moving ahead. Chair Furfaro: Let's make it very clear I don't like other councilmember's sending over questions on their own during budget time. Ms.Yukimura: Oh no this will be... Chair Furfaro: I just want to make sure we have a clear and what they interpreted what you said because you implied you'd be sending over questions later. We have very specific objectives to get responses here. If you can do it in 48 hours we would like it 48 hours, if you can do it by the end of the week then fine. Now let me ask this question, if we sent the questions over that was very well framed by Vice Chair Yukimura, when could we be expecting to talk about goals for next year? Would we be talking about that in 60 days? Can we be talking about that when?I don't want it to fall off the radar screen. 90 days? Mr. Dill: I think 90 days is reasonable. Chair Furfaro: I will give you a 120, will you accept that? Mr. Dill: Okay thank you. Chair Furfaro: Vice Chair Yukimura does that sound... Ms.Yukimura: That's 6 months into the New Year, that's good if you can do that. Chair Furfaro: So we're going to have a pre-review of some of the solid waste programs in 120 days and I will charge Vice Chair Yukimura to frame what kind of information we're looking for if you can do that. Ms.Yukimura: I will give it a try. April 16, 2012 Public Works (Operating & CIP) continuation p.80 Chair Furfaro: Okay so we can live with that commitment from you guys 120 days? Mr. Dill: Yes. Chair Furfaro: Sounds like a plan we're all in agreement. Ms.Yukimura: Thank you Chair. Chair Furfaro: Larry anything you want to add? Okay Troy? Mr. Tanigawa: Thank you Chair that's all for me. Chair Furfaro: Okay Alison? Donald?Again please I think Mr. Bynum put it the best way he could but you know we're on a need to know basis Larry and this is the time to probe. Okay if you can stay around and I'm going to ask if anyone from the public wants to ask any questions. There is no one from the public wanting to come up? Okay I would like to say again thank you, you folks are still able to get up stretch in a little bit so that's a good sign. We are in recess until tomorrow morning thank you. The budget reviewed recessed,at 3:54 p.m. April 17, 2012 Revenue Forecasting p.1 The Departmental Budget Review reconvened on Tuesday April 17, 2012 at 9:04 a.m., and proceeded as follows: All Members were noted present. REVENUE FORECASTING Chair Furfaro: This morning we are doing items that will reference the revenue cycle in the County. There are two pieces to this. I passed out for you a comparison on revenues that dealt with the presentation that I made at the opening so you got a quick comparison list that was part of the PowerPoint that I made. Then we have the agenda sub account, which is more detailed than in the previous years because we never had a revenue reserve cycle. On property taxes, the exhibit you have in front of you is the particular piece that deals with the certified revenue for your summery that was a $1,030,000 adjustment from what came over in the original forecast and then documented $1,038,000 increase after that was certified. This new module is about all revenues. The main thrust of this is not about property taxes. This is about the revenues that we have to work with this year. I do expect that in the near future that we are going to have some follow-up in Mr. Bynum's Committee that deals with other tiered process to look at property tax opportunities going forward. Since the engineering department is here and I would like to see if I cannot invite Wally and Ernie up to the table with some member of engineering so we can talk about first and foremost the revenue items that deals in your calendar with item F. Safety sanitation and that particular (inaudible)with Solid Waste, and Wastewater then we can have the engineering people leave. So Wally you got in advance the April 16 detail breakdown right. Of the committees that we wanted to talk about regarding all other revenues in the County and from that I would like to be able to excuse Clint and Lyle, if we can talk in particular about sub category F. especially since it is fresh on our mind from yesterday from Solid Waste and the day before that with Wastewater. Mr. Rezentes: Good morning Councilmembers, Wallace Rezentes Jr., for the record. Actually I wanted ... I guess we can take it out of order. I just wanted to say first off that for our May 8 submittal we will be looking at all our revenue sources like we are for all the budgetary items and hopefully updating and refining the numbers, refining the projections as we go along with more updated information. Chair Furfaro: Wally if you want to follow a sequence of a presentation that you are going to make then we can do that. That is not a problem. Mr. Rezentes: Okay, why don't we do that then. I have a handout that I would like to provide to you. Chair Furfaro: And just for the audience, today's agenda items we have a revenues this morning up until noon. Then we have Housing from 2:00-3:30 p.m. Then at 3:30-4:30 p.m. we have Council Services. Thursday is CIP all day. Friday we are going to do Prosecutors, Elderly Affair, Liquor, and Transportation. Whenever you are ready, Wally, you have the floor. I am going to move my location. Mr. Rezentes: What I was hoping to do today, Councilmembers, is go through the Operating Budget revenue sources by Fund, and if you have the 2-page budget Ordinance that was submitted in March, I was hoping to follow along the lines taking it fund by fund as we go across the page, so I would start with General Fund and move to the right across the page as we proceed. If there are any questions, it would probably be best to ask them as we go along. April 17, 2012 Revenue Forecasting p.2 Again the first number Real Property Taxes, everybody knows what that is. That was our initial projection as of March 15. Prior to the certification of the tax roll you will see that number change from seventy-seven three to seventy-eight million, three thirty-eight, five hundred as a result of the certification that was provided to you. Mr. Bynum: Can you say that number again please. Mr. Rezentes: I believe it is seventy-eight, three three eight, five hundred. Mr. Bynum: Thank you. Chair Furfaro: You rounded it off I guess. Mr. Rezentes: Yes, but it is in seventy-eight point three some odd million. If you go down that list the public services company tax you will see it as 3.4 million on the budget Ordinance. This is the amount that is based on the estimated revenues collected from Public Services Companies such as Time Warner Cable, etc., and it is based on a percentage of the annual gross receipts. Actually the fact I believe is .01885. The next section you will see going down that list in the General Fund is in the licensing and permit section the street use category. These are collections of motor vehicle tags, decal, special vehicle replacement, replacement vehicle plates, and replacement of out-of-state vehicle permits, trailer plates, and tags. The business license section is couple hundred dollars. It is collections from automated driving schools, auto wreckage salvage fees, and pepper spray fees. The non-business licenser category is the collection from building structures, equipment, electrical code, plumbing code, and sign code permit collection. That is rolled in to one point one three eight million dollar number. The next section revenues from investment, that is interest that amounts estimated to be earned from the County Treasury over the course of the fiscal year and that is nine nine seven zero five four. Ms. Yukimura: (inaudible) Mr. Rezentes: Revenues from property are from rentals and concessions such as the Fishbowl at the Lihu`e Civic Center. Ms.Yukimura: (inaudible) Mr. Rezentes: No, Spouting Horn is not included in there. Intergovernmental revenues, State Grants-in-Aid, the thirteen four eight five that is based on Kaua`i County's allocation of the Transient Accommodations Tax, that is not expected to change or vary in our May submittal. We have a small Other State Grants for the burial of Indigent Veterans and that comes from again the State of Hawaii. Charges for current services under the General Government Category 163,500 are the budget and that is collection from fees for indirect costs that the County bears such as printing and other services. Safety category, two million twenty nine thousand six fifty budget number, this is the collection of the County Motor Vehicle registration fees, drivers exam fees, and bus transportation fees. Ms.Yukimura: (Inaudible) April 17, 2012 Revenue Forecasting p.3 Mr. Rezentes: Motor Vehicle registration, driver's exam fees, and bus transportation fees. The next section under recreation, one sixty-seven zero five zero is the collection of the fees for summer fun program, camping, and youth athletic programs and we have others ... I apologize I do not have specific details but it is a hodgepodge of various other fees that roll up into the one hundred fifty thousand. Under the other revenues category this is also a catch all of a number of items. It is the collection from the sale of property, public auctions, irrigation water rates, service charges for bounce checks, fines for (?) and penalties. That basically ends the first category of General Fund numbers. Mr. Rapozo: Can we ask questions after each section or do you want to wait. I didn't want to interrupt you in the middle of it. Chair Furfaro: Yes, before we go on to the next section go ahead. Mr. Rapozo: Okay, thank you Wally. Under licenses us (inaudible) and so forth there was a huge drop from (inaudible). I am assuming it includes the business licenses. That is how you generate your fourteen thousand I would guess. With budget is only two hundred I just know because there are a lot of businesses now that show up the buying and selling of gold and all that. All of those guys all required secondhand dealer licenses. I guess my concern... Mr. Rezentes: We'll research that. No matter what, if it is coming in, it will hit that account. We may have priced it too low here. Mr. Rapozo: I think so, because I can tell you a Pawn Broker License is a hundred dollars, and a friend of mine just went and got one, and I think there is a couple other pawn shops on the island, so that in itself would take care of tha—all the secondhand dealers and this is a good opportunity to discuss the secondhand dealer license is ten dollars. We need to address that going forward and I would like to do that in the next year because I think our fees are way too low. The time it takes to process one of those things, they should at least cover the cost to do it and do get clarification on that business license section because I don't see it here. If we are not collecting that then we need to go out and start enforcing it and it is (inaudible) and it is interesting because I have to go through that process for so many years with my shop. Every time I went into a shop, that is the first thing I look for, and no one has it, so I think we need to go out and take a look at that. The other one is (inaudible) cost. That would be the third from the bottom on General Fund. Is that the required (?) cost? That is the department pay? Mr. Rezentes: No, I am sorry that is not that at all, it is for cost that we incur if the public asks various departments to print or do work, and there is a HRS that we follow to charge those cost. Mr. Rapozo: The indirect cost that we the County charge the individual departments ... Mr. Rezentes: Individual funds, that is in Finance accounting budget you will see a section on that in the Operating Budget. Mr. Rapozo: That doesn't show up on this? Mr. Rezentes: That doesn't show up on that. It is just intergovernment inter and type of... April 17, 2012 Revenue Forecasting p.4 Chair Furfaro: So Wally, that cost is actually a recovery. Mr. Rezentes: Correct. Chair Furfaro: So maybe we should say that in the future. It is a cost recovery. Excuse me Vice Chair. I did not get my answer. I asked a question then I will recognize you. Can I get that confirmed that in the future a recovery cost. Mr. Rezentes: Yes, it is in accordance with our central services cost allocation plan. Chair Furfaro: Nobody is confused that is as it being an expense. It is a recovery cost. Mr. Rezentes: And it is located on page 35 of the Operating Budget in finance accountings section under indirect cost slash central services cost. Ms. Yukimura: Thank you and my apologies, just want to be clear (inaudible) Mr. Rapozo: (inaudible) Ms. Yukimura: (inaudible) that is where we charge other departments for the... Mr. Rezentes: Not other departments. Outside County, Public or businesses, etc., that come in. Chair Furfaro: Councilmember Nakamura. Ms. Nakamura: Thanks for this sheet. Question on the non-business licenses, does that include the Planning Department fees? Mr. Rezentes: No, basically it does not. Ms. Nakamura: What category does that fall under? Mr. Rezentes: What fees in particular are you talking about? Ms. Nakamura: Like for people who apply for zoning permits, variances, use permits. We usually write a check to Director of Finance. Mr. Rezentes: Let me go check where that one hits. Ms. Nakamura: Those fees I think were established in the 70's and I don't think they have been updated. So again just going back to Councilman Rapozo's comment about what are we charging the fees and ... Mr. Rezentes: The Planning Department has more than one type of fee schedule, some don't hit the General Fund too, but what we probably need to do is get a breakdown of the various Planning associated fees for you. April 17, 2012 Revenue Forecasting p.5 Ms. Nakamura: I would be kind of curious to see the building permit fees as well. What are we charging and when was the last time we looked at those costs, those fees. Mr. Rezentes: The building permit fees? Ms. Nakamura: Yes. Thank you. Chair Furfaro: Mr. Bynum Mr. Bynum: The reduction in rent and concessions in this column. Problem 321-323. Mr. Rezentes: That is the blind share. Mr. Bynum: Is the Spouting Horn in this? Mr. Rezentes: No. The Spouting Horn is a different fund. That is our 409 fund and that is not showing on the Operating Budget Ordinance and the reason for that is because the way it was established by Ordinance, the Fund is deemed as appropriated, so meaning that the funds are available for expenditure by the Parks Department on an annual basis as revenue is received. I think I'm not sure, Councilmember Bynum, if you were not here on that discussion where we had brought that up and we brought out the Ordinance that basically details the fact that the funds are quote unquote deemed as appropriated to ... it is our 209 fund and it is called the Parks and Recreation maintenance and improvement revolving fund. Mr. Bynum: And where are those revenues reported here. Mr. Rezentes: It is not reported on the budget Ordinance. Mr. Bynum: So there are County revenues that are not reported? Mr. Rezentes: Because on that one in particular because the way the Ordinance was created by the County Council at the time the funds are deemed as appropriated, so the funds are available for use for only Parks related purposes, Parks related improvement and maintenance purposes. The Parks Department has the authority to proceed and expend those moneys for those only for those specific purposes. Mr. Bynum: (inaudible) CAFR. Mr. Rezentes: It is. Chair Furfaro: It is in the CAFR, but I want to say unfortunately, Tim, that was one of the days you were out ill. We touched on that with Parks. Mr. Bynum: Sorry. Chair Furfaro: No problem. Wally, may I ask you on rents and concession, you are saying that the Big Save vacancy is the lion share of that, but how does the trans compare if we took the Big Save concession out of the three twenty-one, what would be the (inaudible) here? Mr. Rezentes: It likely going to be flat. April 17, 2012 Revenue Forecasting p.6 Chair Furfaro: Going be flat. The interest earned total this is because we are spending down on money that we have in our (inaudible)fund? Mr. Rezentes: It is a function of that, as well as market trends on our investments. Of course the longer we can go out on the u curve, the likelihood that we can get a greater return, and I think Dave has done a real good job at projecting when we need funds and when funds will need to be available on months where when we look at cash flow when on months where expenditures exceed revenues for that particular month. It is basically his job, timing how far out on the yield curve he can go and when will he need funds for operating purposes. Chair Furfaro: The last one is we dealing with the General Fund for clarification for me. Under miscellaneous line, other revenue totals, between (inaudible) penalties, fines, and public auction we are 15% difference in the trend from this year to next year; do you have something that substantiates that 15% trend downward? Mr. Rezentes: Sorry, I do not have that detail, but we definitely will be looking at that number. Chair Furfaro: I'd like to send that question over, staff, on the downward trend on other revenues miscellaneous if Mr. Rezentes can take a look at it. It is about thirty grand. Any more questions on this section, Councilmember Yukimura? Ms. Yukimura: Under Others, undercharges for current services, (inaudible) Mr. Rezentes: Okay, the detail of the one fifty? Okay Ms. Yukimura: (inaudible) services... Mr. Rezentes: The hundred fifty line right? Ms. Yukimura: (inaudible) labeled others. Mr. Rezentes: We will get back to you on that one. Ms.Yukimura: (inaudible) for vehicle registration is included in (inaudible)is that correct? Mr. Rezentes: Yes. Ms.Yukimura: Do you know how much we generate in motor vehicle registration? Mr. Rezentes: I don't have that with me, but I can get you that. Ms.Yukimura: (inaudible) Mr. Rezentes: Portions of the EOC, the public utilities franchise tax, and the fuel tax hits the Highway Fund, and then you will see under licensing and permit which we haven't gotten to yet also is a 4 million funding to the Highway Fund. Ms.Yukimura: Can we get a breakdown (inaudible) charges (inaudible) ii April 17, 2012 Revenue Forecasting p.7 Mr. Rezentes: Right, the one fifty will get that. g Y we g Chair Furfaro: Mr. Rapozo. Mr. Rapozo: I'm sorry, Mr. Kuali`i had his hand up. Chair Furfaro: I can't see. Go ahead Mr. Kuali`i. Mr. Kuali`i: Thank you Mr. Chair. Along the lines of what Vice Chair Yukimura asked for, it would be good to have little bit more detail that breaks up some of these categories. As one example, I am interested to know to the Public Service Company Tax. So the 3.4 million and how it breaks down between the different major utilities. Is that where it is coming from? From cable, from KIUC, also electricity, so maybe like the top three. Mr. Rezentes: Okay the top three. Mr. Kuali`i: The other interesting thing to know is in comparison to this current year. So last year that same line item Public Service Company Tax was 3.5 million. Are we on track when the year ends? Will it be 3.5 million or are we behind or are we ahead? Mr. Rezentes: I know that in 2011 that it was 3,020,565. Current year we are budgeting 3.5. Mr. Kuali`i: And where are we at now? Mr. Rezentes: We are, in my submittal, we projecting 3401. I don't have the year-to-date numbers but we are projecting nearly 98,000 roughly reduction in that source. Mr. Kuali`i: The other thing is so the State Grant-in-Aid or the TAT the amount from last year budgeted was 13.4 million. Mr. Rezentes: It is exactly the same. Mr. Kuali`i: So is that ... Mr. Rezentes: That is based on the legislature capping. Mr. Kuali`i: So it is what it is going to be last year and it is what it is going to be this new budget year. Mr. Rezentes: Yes. Mr. Kuali`i: Okay, thank you. Chair Furfaro: Mr. Rapozo then Vice Chair Yukimura. Mr. Rapozo: I want to go back to that the special fund for (inaudible)that is the revolving fund? Mr. Rezentes: Yes. Mr. Rapozo: I guess it would be like the sewer revolving fund and so forth? April 17, 2012 Revenue Forecasting p.8 Mr. Rezentes: Yes. Mr. Rapozo: Where would we be able to find that in the budget? Mr. Rezentes: You are not going to find that in the budget. You will g g g be able to find that in the CAFR, the annual financial report, so because again like I said it is deemed as appropriated. If it wasn't structured that way then it would show up in our Operating Budget on annual basis. Mr. Rapozo: So how many of those funds do we have... Mr. Rezentes: That is the only one that is structured that way—was by Ordinance the administration have the authority to spend. Chair Furfaro: Mr. Chang? Mr. Chang: Good morning, Wally, I wanted to ask on the line of license and permits street use? Chair Furfaro: I want to make sure everyone is following this. We are going through the categories blue line to blue line okay. So we are going to follow that one next. Mr. Chang: Okay. Chair Furfaro: Are there any more questions in the section and Mr. Chang, you still have the floor comparing the General Funds variances year to year? Mr. Chang: Not on that line. Chair Furfaro: So to summarize, on this particular point are there any more questions to the General Fund totals? Vice Chair Yukimura. Ms. Yukimura: So the Spouting Horn Fund was just removed this year? Mr. Rezentes: No. Ms.Yukimura: I believe I asked in one of our Public Hearings for the accounting for that fund. But I want to repeat that here, because I think you need to know (inaudible). Mr. Rezentes: I can tell you that approximately 440,000 a year. Chair Furfaro: If I can remind everybody again, because it is an earmarked fund, it shows up in the CAFR. When we went through the Parks Department on certain improvements it was implied to us that they were going to tap that fund for about $200,000.00. That is when we were doing the Park section. It is an earmarked revenue, so it shows up in the CAFR, but it is specifically by Ordinance only spent on Parks projects. You are going to follow-up on Vice Chair's question to reconcile that account for us. Mr. Rezentes: I am assuming you want to see revenues as well as expenditures over a certain time period. April 17, 2012 Revenue Forecasting p.9 Ms.Yukimura: Correct. Chair Furfaro: Okay let's go back to the period when the Ordinance passed. In 2008 or whenever the Ordinance passed. Mr. Rezentes: It might take a little longer than 48 hours but we have the information. Chair Furfaro: I'll give you untill Friday on that, Wally. Do you need more time than that? Mr. Rezentes: We need to go back and circle back with the staff. Chair Furfaro: Okay. We will give you one week on a separate memorandum on the reconciliation on the earmarked funds for Po`ipu concessions going back to the date of the Ordinance. Any more questions under General Funds? Hey I want to reconfirm that we showing this 101,880,000 for the 2012 budget. We are showing as of March 15, 99,275,014 for 2013. We know that part of that difference of $1,038,000 and is earmarked to the property tax certified amount, which is on a separate sheet, but that basically also that indicates the downward variance on all other revenues going into the General Fund is down $1,567,000.00 on this worksheet before we get any other questions. If there are no more questions on this piece, we will go at the end, we will have some general questions overall, but can we now go to the Highway Funds, Wally. Mr. Rezentes: Highway Fund you will see... Chair Furfaro: I will give Mr. Chang the opportunity to go first since his last question was directed in that area. Mr. Rezentes: The first item for the highway fund is the Public Utilities utility franchise tax and that is 3.85 and that is when you compare it to the current...if you include the Public Utility and Fuel tax that is basically flat versus when you compare it to the current fiscal year. Again this collection of percentage of Public Utilities revenues. Fuel tax, every County has their own rate for fuel tax, as does the State. I think recently you have seen the State increase fees that are relative to the fuel tax. Payments the fuel tax payments come from the State of Hawai`i and are paid to the County of Kaua`i based on our approved Ordinances and we are projecting that number to be 3.8 million for 13. In the next section licensing and permits the street use motor vehicle passenger payments $4,000,010.00 for when you pay your registration the passenger, trailer, and truck fees are in that number. You will see revenues from investments, interest earned on the within the highway fund of $80,000.00 as well and that is flat relative to the 2012 budget. The intergovernmental section of the highway fund, the $25,000.00 is funds collected to maintain the highways adjacent to federal refuge area that is under what is labeled as the Refuge Revenue Act. The annual payments from this source comes from the US Department of Fish and Wildlife. Chair Furfaro: Vice Chair did you have a question? Ms. Yukimura: I just wanted to (inaudible) Mr. Rezentes: Any questions on the highway funding, highway funds and revenues? April 17, 2012 Revenue Forecasting p.10 Chair Furfaro: Mr. Chang has the first call. Mr. Chang: I believe my question has been answered. Chair Furfaro: Vice-Chair Yukimura. Ms. Yukimura: (inaudible) Mr. Rezentes: Yes, and there is different percentages and I apologize... Ms.Yukimura: So one goes in the General Fund (inaudible), and another goes into the Highway Fund, also based on percentages (inaudible). Mr. Rezentes: Percentage of gross revenues, right. Ms. Yukimura: And the rational is that they use the (inaudible) system, but they don't pay (inaudible). Mr. Rezentes: I'm sorry Councilmember I can go and research the HRS relative to that, but I don't have that with me. Ms. Yukimura: (inaudible) Chair Furfaro: Vice-Chair, can I ask you to repeat your question so the staff can a... Ms. Yukimura: The question is what is the distinction between the public service (inaudible) which goes into the General Fund and the Public Utilities (inaudible) which goes into the Highway Fund. Mr. Rezentes: The General Fund is in lieu of Real Property Taxes. Ms.Yukimura: Right, and so possible the utility franchise taxes in lieu of something. Maybe or maybe not, I am just trying to understand the rationale. Mr. Rezentes: I think the HRS will tell you it is the right to have a franchise, a utility, within the State of Hawai`i. They have to pay a fee to have a utility and be given and the authority to conduct business free of competition in the jurisdiction. Ms. Yukimura: And that goes into the Highway Funds so that (inaudible). Chair, maybe we can ask our staff to breakdown the Highways (inaudible) in terms of what the State takes. Chair Furfaro: I think we can ask the Finance Department to break that down for us. He would have that. Mr. Rezentes: We would need to get that from the State Department of Taxation, because they do all the collections and they cut us a check on the back end. Ms. Yukimura: (inaudible) because I think the last time we raised the (inaudible). April 17, 2012 Revenue Forecasting p.11 Mr. Rezentes: No, it was during the Kusaka administration. I did it once as well. Ms.Yukimura: (inaudible) Mr. Rezentes: That wasn't fun but we did it. Ms.Yukimura: That was about 10 years ago? Well the thing is ... Mr. Rezentes: Maybe a little longer than 10. Ms.Yukimura: The thing is, if we don't do it, everybody else is taking their percentage and then we are already subsidizing the Highway Funds from our General Fund. Mr. Rezentes: No, Highway, we are not subsidizing this year, but more than likely next year we will have to for the proposed fiscal year. Ms.Yukimura: Most of the years we subsidize. Mr. Rezentes: We have in the past some years. Ms.Yukimura: (inaudible) Chair Furfaro: No, we subsidized it about a million bucks not too long ago. Maybe 4 years ago and then we went through that period that they didn't spend what was about a million seven, but just before that started, Vice-Chair, there was about a million dollars subsidy. Ms.Yukimura: I think more than not you subsidize our Highway Fund (inaudible) so than can you give us (inaudible). Mr. Rezentes: When it was adopted and what level and the breakdown between State and County? Chair Furfaro: Vice-Chair, if I can ask you to turn off your mic and I will recognize Councilmember Nakamura. Ms. Nakamura: Thank you, Wally I have a question about the street use. The motor vehicle passenger, is that the motor vehicle registration fee? Mr. Rezentes: Yes. Ms. Nakamura: And what is the one up above under safety? There is driver's exam, and county registration fee. What is that County registration fee? Mr. Rezentes: I am sorry. I am not following. Ms. Nakamura: Under the General Fund, the section up above there's the 2 million dollars under safety? I am looking at your chart. Mr. Rezentes: That is collection of motor vehicle registration, driver's license, and bus transportation fees. April 17, 2012 Revenue Forecasting p.12 Ms. Nakamura: But motor vehicle registration I thought is down below under street use. I was just wondering what County registration covers, because when I read it first I thought that is what it was. The motor vehicle ... Mr. Rezentes: I will get clarification on that. Ms. Nakamura: Okay thank you. Chair Furfaro: Staff, did you get that question? Mr. Chang. Mr. Chang: Just to follow-up, I am just a little bit confused, Wally. Didn't we recently after many years finally raise the rate when we renew our license? Mr. Rezentes: We did an increase there. Mr. Chang: So was that long ... couple years back? Sounds like it was within a year? You remember for long time we renew our license... Mr. Rezentes: We had to change our structure to be in compliance with I believe the real ID and there was a longer term license and I think the timing with your license will be good was extended to like 7 years in cases, so there was a whole restructuring of fees that resulted from that change. Mr. Chang: Okay. Chair Furfaro: Councilmember Kuali`i. Mr. Kuali`i: Just to follow-up on what Councilmember Nakamura was talking about, I do notice that in the 4 million street use under the Highway Fund. It does say motor vehicle passenger, trailer, trucks, etc., so maybe the difference is commercial versus individual, and that up above where you were talking about motor vehicle fees, driver exams, the bus trans fees that is for our County Bus? Mr. Rezentes: Correct. Mr. Kuali`i: With this state, where it says motor vehicle passenger, trailer, trucks that's commercial probably? Mr. Rezentes: It might be both. Commercial as well as regular passenger. Mr. Kuali`i: So with that question you will just provide the details. Mr. Rezentes: Yes. Mr. Kuali`i: Thank you. Chair Furfaro: Anymore questions dealing with this section? Okay, let's go to the next section. Mr. Rezentes: The 204 account liquor fees estimated at 1,055,572 and these are the source of revenue from license collections from sale of liquor, liquor sales licenses, including special events where you see sometimes beer garden, etc. ,all those various events. The April 17, 2012 Revenue Forecasting p.13 funds will hit this particular line item. The liquor fund also has interest investments and you will see a share of about a thousand dollars from liquor funds, investment of liquor funds. Chair Furfaro: Wally, there is kind of a unique way that we identify the revenues that come from liquor less the Liquor Department's operating expenses, and for lack of any other term, this department actually renders a profit, I guess for lack of any other word, but how do we handle the transfer of the nets there? How do we handle the transfer of this revenue from liquor? Mr. Rezentes: We cannot. It is for a specific purpose so we cannot. The only thing we can do is recoup central services cost the General Fund provides the Liquor. Chair Furfaro: And that is where I was leading to. So what do we charge for them on central services to cover their payroll processing and things like that? I just want to make sure everybody at the Council understands. Mr. Rezentes: It is located on page 35, budget amount is 125,000 that the General Fund recoups from the Liquor Fund. Chair Furfaro: Everybody clear on that? Okay we recover to the General Fund for allocations of operating cost, payroll services, and so forth about a hundred and a quarter. Any other questions on this section, Vice-Chair Yukimura? Ms.Yukimura: I should know this ... who sets the (inaudible). Mr. Rezentes: I think it is Ordinance. I believe there are Ordinance fee levels that have been approved for quite some time. Ms. Yukimura: (inaudible) Chair Furfaro: Scott or either of you, if you could do that. We will take care of answering that question. Any other questions in the area of liquor? Done, okay Wally, we can move on. Mr. Rezentes: Beautification Fund on 205 under street use you will see the 302,660 this is collection from Beautification Fees paid as part of the vehicle registration. It is based on $.50 per registration processed. Those funds are available for the most part the Highway Division use. Chair Furfaro: Mr. Bynum. Mr. Bynum: The Beautification Fund, aren't those funds used by parks? Mr. Rezentes: For beautification of highways I think there is a ... Mr. Bynum: I thought those were park funds? Or those funds are administered by parks? Is there more than one beautification fund? Mr. Rezentes: No. Mr. Bynum: And for this discussion, it is not that important that I get an answer right now. April 17, 2012 Revenue Forecasting p.14 Mr. Rezentes: You will see it is on page 234 of the Operating Budget. Chair Furfaro: You folks would want to follow that because once we get them identified these are questions that are not going over. Page number again Wally. Mr. Rezentes: 234. Largely used for disposal of abandoned vehicles 300,000 and then for the rest of beautification special projects of one or two I think Councilmember Bynum maybe that is what you are looking at the special projects of the Operating Budget that is 102,660. Mr. Bynum: I'm lost, but I can follow-up on this later. Mr. Rezentes: Again it is on page 234 Mr. Bynum: In the budget? Mr. Rezentes: In the beautification fund page 234. Ms. Yukimura: Might be under solid waste. Mr. Rezentes: It is just passed Liquor Fund if you follow your tab. Chair Furfaro: While Jade is briefing him. We turned your mic off; you need to turn it back on. Mr. Bynum: Thank you. Chair Furfaro: Anymore questions in this section here? Did you have a question Mr. Chang? Mr. Chang: No sir. Chair Furfaro: Councilmember Nakamura. No, okay. Okay everyone we are going to move on to Solid Waste. Mr. Rezentes: Solid waste fund 208. Chair Furfaro: Wally, give us an explanation on this line item as this reflects other State grants. Mr. Rezentes: Are you referencing the next section on housing and community development? Chair Furfaro: I'm sorry. Mr. Rezentes: No. I caught you. I was looking at the same item actually a second earlier. The Solid Waste Fund we are looking at ... Chair Furfaro: There is a footnote to the side of it...Other state grants. Could you get Aida for Vice-Chair Yukimura? Her and Ricky are rotating. Here she is. Are you still pondering on that one? is April 17, 2012 Revenue Forecasting p.15 Mr. Rezentes: No we are good to go. Again 6.2 million and that are flat relative to the current fiscal year 2012. We are looking at actually in the May submittal revising downward the refuse collection from revenue sources from by about approximately 400,000 or so but we are working on updating that number about 413,000 reductions from the refuse collection from residential fees. Chair Furfaro: Wally, we seem to have a couple Councilmembers that are seeking out some information at the moment and since we are going untill 12:00 p.m. I would like to take the 10 minute caption break now so that they can look at their information and we will come back at 10: 15 a.m. There being no objections, the meeting was recessed at 10:04 a.m. The meeting was called back to order at 10:25 a.m. Chair Furfaro: Aloha and we are back from our recess and before we go any further I just want to point out as we talked about the Parks Fund, and Scott, I got your CAFR over here so I'll give it back. On page 99 is the combined balance sheet of non-major Government Funds and you will find a reporting which is about $409,000.00 a year on the special Parks Fund, and as we saw from the Parks Department on their maintenance and small equipment repairs, they're planning to spend a little over a million 2 on park improvements. That fund earmarked for particular park projects is 1,665,000 so far, so the money we talking about transferring out of that is coming from that line earmarked only for parks, and the revenues are running about 409 a year. So, on that note of clarification you want to add anything, Mr. Barreira? Mr. Barreira: Good morning Chair, Ernie Barreira, Budget and Purchasing Director. Just one clarification, that is in line with our overall strategy to spend down all special funds so as not to place heavy burden on the General Fund as we have been talking about since the opening session. Chair Furfaro: So Scott, I will give you back your book, and for everybody's information it is in the CAFR on page 99. We will go back to where we were, Wally. Mr. Rezentes: I believe we stopped on Solid Waste and I needed to clarify my statement. I was explaining to incorrect columns basically we are looking at 6.2 million in revenues to the Solid Waste fund and that is in line with the current fiscal year 2012 budget. They will be amongst the various categories there will be a flip of switch of some residential vs. commercial as TVRs will be rolled into the commercial side, so there will be a flip in different sections of revenue. The residential side will be reduced but the commercial side will go up as a result of the change in fees from it being either resident or commercial in nature. Chair Furfaro: Go ahead Mr. Bynum. Mr. Bynum: I apologize. You are kind of soft spoken Wally and I am kind of hard of hearing. Mr. Rezentes: There is approximately a projection of 400 TVR accounts that are going to be added to the solid waste commercial collection fee and there is a commensurate reduction in the residential side of the collection fee, because there is a switch for the TVRs now they are going to be classified as commercial in nature vs. residential in nature. Mr. Bynum: But they actually pay a higher rate? April 17, 2012 Revenue Forecasting p.16 Mr. Rezentes: They pay 78. Mr. Bynum: As opposed to residential 12, and 78 for commercial. Mr. Rezentes: Residential 12, and 78 for commercial. Mr. Bynum: So they will actually be ... even though be reported differently in revenue increase. Mr. Rezentes: Actually I believe it will be pretty much a wash because tonnages are going down as well, and perhaps also as reported yesterday, I think there is some recycling as a result too in that number. There is more than one reason why the number is moving. Mr. Bynum: Okay thank you. Chair Furfaro: Just a follow-up on Mr. Bynum's question if we took about 412 of these going from residential to commercial rates that is about 27,000 and that is a pretty substantial amount. Am I to understand that the Solid Waste Division had already calculated that in their number? In their number that is showing usage dropping and in there was the additional 27,000 of revenue from the new TVR to prove? Mr. Rezentes: Yes it is in the number. Chair Furfaro: I'm sorry I just wanted to get some clarification. Did you have more questions? Mr. Bynum: No. Chair Furfaro: Okay, Mr. Kuali`i. Mr. Kuali`i: Clarification. So were you undoing what you said earlier about the 413 thousand? Mr. Rezentes: Yes. That was a mistake. Mr. Kuali`i: So you saying it is a wash, it's not 413 thousand decrease. Mr. Rezentes: Yes. Mr. Kuali`i: Okay I just wanted to be clear on that. f Chair Furfaro: Anymore questions on this section? Okay Mr. Rezentes, you want to take us to the next area. Mr. Rezentes: The next section is I'm not sure if we need to ... housing community development fund and that is 1.907. Chair Furfaro: I'm sorry, I have a different number than what you just said. Housing and Development totals? Mr. Rezentes: Account 211. 1.907 963. Gi April 17, 2012 Revenue Forecasting p.17 Chair Furfaro: Okay I got it. Questions on that area Vice-Chair Yukimura. Ms.Yukimura: (inaudible) Mr. Rezentes: That is from Housing Development Fund. I don't have my CAFR with me. Those are grant funds that is managed by the Housing Agency, federal sources. The comparison is in current year budget is 2.15 so it is a slight decline in their projected revenue for the ensuing fiscal year for fiscal 13. Chair Furfaro: Mr. Barreira, did you want to add something? Mr. Barreira: No sir, just that when Housing is coming forward to testify on the budget hearing, I'm sure they are going to talk about the reduced revenue as a result of the grant changes. Ms. Yukimura: Yes (inaudible) Chair Furfaro: Fair enough. To you Vice-Chair? Ms. Yukimura: Yes. Chair Furfaro: Questions in this category? Okay next area. Mr. Rezentes: We can go to Sewer Fund 502. Sewer Fund over revenues of 7,858,000 is projected. An increase over current year which is 7,152,000 we are actually looking to update the Wastewater sewer fees for residential and commercial. Right now we have budgeted in the March budget 2.64 million for residential and we are looking at an increase to 2.9 million and on the commercial sewer fees from 4.125 million to approximately 4.5 million in the March submittal. Again these numbers are being worked on right now by Public Works and we will update the revenue figures for during the May submittal of the budget. Any questions? Chair Furfaro: Wally, I understand that is a 7 hundred and 6 thousand dollar forecasted increase? Mr. Rezentes: Cumulative right. Chair Furfaro: Cumulative yes? Since we started this line, this is the first increase we have seen. Vice-Chair Yukimura you have the floor. Ms. Yukimura: (inaudible) Mr. Rezentes: I'm sorry? Ms. Yukimura: You are proposing... Mr. Rezentes: No, we are updating our revenue projections so we are not proposing a fee change. I believe the last time the Public Works came up with their revenue plan based on the consultant members it was a it is the second of three tiered increases that went according to the plan and I think it was improved by the County Council and adopted by the County Council. April 17, 2012 Revenue Forecasting p.18 Ms. Yukimura: (inaudible) include it in this budget. The ones related to us in March 15? Mr. Rezentes: Again we are updating ... I am not sure if all of this is purely rate driven or demand driven. Ms. Yukimura: You knew it was going to happen right? Mr. Rezentes: Yes, but what I'm saying is I'm not sure... is the variance that we estimated just purely demand or combination? Chair Furfaro: First of all let's clarify the title for Vice-Chair Yukimura on the heading, it said that this was the proposed budget on 3-15-12, so was it reflected already? So it was not reflected in the March 15 piece that was submitted. Mr. Rezentes: We missed it. Chair Furfaro: So. Ms. Yukimura: Yesterday when we were looking (inaudible) I just have a sense that a lot of these agencies are not looking at their revenues probably because they don't have to, they just (inaudible) and spend the money but... Chair Furfaro: Vice-Chair, that is why I put this in the new budget procedure going forward. Ms.Yukimura: I'm so glad you did, but somehow it needs to be in the administration's budget process maybe more consciously because ... Mr. Rezentes: I agree. Ms.Yukimura: sort of basic and it is true that on both sides of the separation powers (inaudible) Chair Furfaro: But we are getting better. Ms.Yukimura: Yes, we are getting better but just procedurally check on revenues (inaudible). Chair Furfaro: Somebody implied I was a little too hard yesterday on some of these items, but let me restate what Council Vice-Chair is saying, when it comes to revenue this is a new part of the budget piece and you should know that the Council is not asleep at the switch. We are looking at the money. Councilmember Nakamura. Ms. Nakamura: Just to piggyback on that, I think that in the strategic plans or the write-up that we get from the Departments in the future, maybe it would be good to not just focus on expenditures but to look at revenues in that picture so we know that the Departments are looking at it and it is presented in a way that it shows what their plans are with respect to revenues and fees generated so we can make that analysis that really for example for the sewer fund that if it was not for the leftover from the previous year, we would not be able to balance this budget and we would need to allocate 2.4 million from the General Fund to balance to meet the expenditures for this fund. And so for next year I am assuming we are going to tap out the unappropriated surplus or equity for the fund and so we are going to need then to subsidize it with the General April 17, 2012 Revenue Forecasting p.19 Fund. That is the kind of analysis we need to be seeing as we are looking at the Department and they need to be looking at that to see is this trend that we want to continue or should we be looking at increasing fees or is it not the right time to do it but at least have that discussion. Thank you. Chair Furfaro: Yes, and as the two ladies have just expressed it becoming the direction of this Council to make sure that the Department Head realize that this is not found money. They have to find themselves understanding their revenue cycles and how much they have to spend within their Departments based on those types of enterprise funds that have income coming to them. Councilmember Nakamura. Ms. Nakamura: I think this one is of concern but I think the Solid Waste Disposal Fund earlier that we talked about is probably even more concerning because we are using the fund equity of 4.7 million to balance and then we are adding 2.3 million from the General Fund. That is over 8 million dollars that we are not going to have...we are not going to have the 5.7 next year and so that is of a concern that means we are starting off much less to work. Chair Furfaro: This is a nice way to tell them it is on the radar screen. Vice-Chair Yukimura and then Mr. Bynum. Ms.Yukimura: (inaudible) into the sewage fund could it be (inaudible) Mr. Rezentes: Yes, absolutely, and again we are not proposing in the fiscal 13 budget to subsidize any portion on the operation going forward, so what would likely happen is we would use less of their fund balance if their expenditures stay status quo. Ms.Yukimura: Which means that the following year we still have the balance versus (inaudible). Mr. Rezentes: You will have some rollover that will stay. Ms. Yukimura: (inaudible) you can't do this year by year, you have to (inaudible) five years, I think (inaudible) that the year we are budgeting for is the first of a five year period so you can anticipate what kind of dynamics (inaudible). Mr. Rezentes: And I agree and like (inaudible)said I think this is the second year of a third year within the Sewer Fund from the resulting fees from the updated rate study. So I think that is important that the Department of Public Works again we all look at determining what the fee structure should be beyond the three years and insure that we have enough that we have enough revenues to carry forward expected expenditures down the road so there is not too much time that we have to preplan for the next few years of expected cost and equipment replacement and all that kind of stuff. Ms. Yukimura: And we need to acknowledge and celebrate the good work that has anticipated the need for these tiered increases so that we can run the system and I mean even the Water Department is doing right now is because of Commissioner Carol Suzawa, Ernie Lau went through the process of developing a plan and then a fee schedule to support it, which is now paying off because we are able to replace (inaudible) and City and County which is having so much trouble with the roads and potholes is because they haven't done this, and we need to sort of take heed and look at our roads fund, highway fund, and project the needs for repair and maintenance (inaudible) so that we don't get into a bind, but that kind of anticipation doing fee studies so that we are anticipating when the deficiencies are going to come... April 17, 2012 Revenue Forecasting p.20 Chair Furfaro: Let's save that discussion until the end of this piece when we know where we have found revenue and where we have not found revenue. Mr. Bynum, you have the floor. Mr. Bynum: Just real briefly, I am following up on what Councilmember Nakamura was saying and I have said this repeat, I am very happy that dealing with these funds and what I consider a more appropriate manner and those trends and your cautions are, but in that fund we traditionally have put lots of number of 9-10 million every year and I know last year we actually put too much because we had a fund balance and it grew by 2 million and so we are rectifying that, but that notion that we do subsidize Solid Waste has been that way for a long time, and we have put a very significant new revenue source of totaling 2.7 million and that is impacting this year, and JoAnn's general comment for me being involved in government 9 year the administration and the Council...the Council is paying more attention to its responsibilities under our current leadership shown by today's meeting which didn't exist in the previous budgets and the administration is making move that and so there are a lot of positive things where we are in consensus this year different than last year. Some other day where we are not but I think I am really pleased that the Council is paying more recognition to this and I heard Wally agreeing. Even in the budgeting process with the departments over there, they need to be paying more attention to revenues and we are having the kind of questions today that says gosh, we haven't looked at these fees for ten years or fifteen years and at some point fees are a little more fair because they go on the people who actually use those County services, and so if you're subsidizing it from other sources by taxpayers who don't use those services ,they eventually can make an argument, hey that is not really fair, so anyway thank you. Chair Furfaro: Thank you, Mr. Kuali`i. Mr. Kuali`i: So just to confirm from where you started you said that the projections of what the funds the revenue in the Sewer Fund Sanitation line you said residential 2.9 million and commercial 4.5 million so that is a total of 7.4 million. So in your new submission instead of 7.8 million you are going to have 7.4 million? Mr. Rezentes: Well there is actually another item smaller on the sludge sewer disposal that will likely go up a little bit from about from about 120 to 150. Mr. Kuali`i: 120 to 150 and that is part that ... Mr. Rezentes: That is part of the Wastewater fee right? The sewer fee structure? Mr. Kuali`i: And you did say it was 7.1 last year? So it is going up a little but not as much as 7.8 million. Mr. Rezentes: Yes, correct, it was about 7.1 last year. 7.15 current years. Mr. Kuali`i: And 7.5 maybe. Thank you. Chair Furfaro: Anymore questions on this part? Okay we will go to page 2. Wally you have the floor. Thank you over there in Public Works. Mr. Rezentes: The next fund is our Golf Fund. The Golf Fund, the current year we have 1.232 budgeted, the March 15 budget we have 1.243 million projected. Within that amount you will see within the Golf Fund 1,099,000 under the recreation category and that is April 17, 2012 Revenue Forecasting p.21 for green fees associated with play. And 144,000 that is associated with the rents and concession for the Golf Course as you know there is basically a concession for golf carts, concession for the pro shop, and concession for the restaurant the golf course Parks Department will be looking at doing some repair and renovation for the restaurant concession so between we are looking to have updated numbers or projections relative to the restaurant concession depending on their best estimate of how long the repair work will take and the restaurant not functional. We may be looking to update the fund revenue projection in particularly for the restaurant portion of that operation. Chair Furfaro: So Wally, what we have here is a substantial amount down in rents and concessions for the Golf Course of which I think has been presented to us that there is a rethinking of the business plan for the concessions. There are some capital needs for the plumbing, floor, and roof but that we really won't have an operation as we know it probably until the end of the year for food concession and so forth and that makes up for a significant difference in this concession income, but from what I heard ,whether they are doing a little simple pupu kind of stuff, some pau hana beer, some sandwiches, and so forth, we will have some revenue, but the reality is we have to rethink what that concession is. Go ahead Mr. Bynum. We want to rethink that ... I that going to be an opportunity. Is that in Mr. Bynum's committee later or is that in your Mel? So would we know when we are going to see the difference on some kind of proposal? Are we looking 3-4 months into the New Year to see what that concession will look like? Mr. Rezentes: I would say that is a fair bet. I think they are going to have to go through the procurement process to get the requisite services that they need to have provided, their construction work provided, and there probably is some permitting and some (inaudible) time for the contractor as well. I think it is safe to say something along the lines of 4-6 months of the next fiscal year not having that operation stood up. I know that Parks folks are looking at options as we speak. I am not sure if they are able to secure like a wagon type concession (inaudible) so I don't think they have finalized that but I know they were looking at that over the last couple of weeks and looking for potential vendors. At least to bridge some of that gap. Chair Furfaro: So if we put an agenda item in Mr. Bynum's Committee say in November ,we should clearly have an understanding of the repair and maintenance as well as selection of concessions for food and beverage. Mr. Rezentes: Yes and it may come to possibly providing funding via our May submittal to help along those lines. Chair Furfaro: Okay. Mr. Bynum. Mr. Bynum: I just want to follow-up on this briefly, the concession there, the restaurant concession even when it was operating last year was below the standards that the Health Department requires and there is,just to function, drainage has to be fixed, the hood has to be fixed, and then it is still a 40 year old facility that doesn't have the kind of restaurant standards that most restaurant (inaudible) would want in the modern day, and so I hope we discuss this at CIP because I don't see any funds in there now. That facility needs a renovation in my view. Not just bring it to minimum health standards. Bring it to minimum health standards are a requirement and I don't think we can legally put a vendor in there until it meets both standards. But I would hope the administration is looking at doing a renovation to that building and bring the facility to a better quality to attract the vendor who can be successful and provide the level of services that have been lacking at the Golf Course over the last few years. I just wanted to make those comments but I think that is a CIP discussion. I don't know how much we got into it at Parks because I was ill that day but... Chair Furfaro: We getting into it all day Thursday CIP. April 17, 2012 Revenue Forecasting p.22 Mr. Bynum: Right CIP so thank you. Chair Furfaro: Ernie, did you want to share something with us? Looks like you looking at the CIP budget. Mr. Barreira: No, Chair, I was going to see if I could get some information from the Department so I could respond to the concern. Chair Furfaro: Well, we will save that for Thursday. Mr. Bynum and I look forward to that. Vice-Chair Yukimura. Ms.Yukimura: I just like to (inaudible) golf course restaurant because they don't know what their needs are rather than us who don't know how to run a restaurant (inaudible). Chair Furfaro: I think I have a little experience there. Mr. Rezentes: I think I believe that it is not easy running a Golf Course Restaurant, it is somewhat of a captive audience. I used to practically live at Wailua Golf Course in the summers and kind of spend half of my growing up years there and I have seen the changes since the mid 70's at the Golf Course, and quite frankly, Kapa'a and Wailua, the towns has changed over the years because there is so much more restaurant opportunities than ever before. The Golf Course is once removed from the town core and in the old days there was the Golf Course Restaurant didn't have as much competition bottom line so a lot residents would come from Kapa`a, Wailua Homesteads, and Wailua House Lots to eat lunch or dinner ,even if they didn't play golf so they had a more diversified base. Beyond that the restaurant had weddings there, a lot of luaus, and now there are a lot more competition elsewhere for that kind of stuff too. So it is not an easy proposition and I can tell you that over the years we have lowered the minimum levels of rent, understanding that it is a hard go at it, and the ultimately the bid that we received was well north of our minimum rental amount we proposed well north. And from what I understand too in talking to some past vendors, there is a part of the operation that you have a better opportunity of making more money and that is the snack shop operation because the overhead is much lower versus the restaurant side. Ms. Yukimura: (inaudible) I just wanted to put out a suggestion that those are the things that need to be looked at. Philosophically we have to decide where the restaurant should break even or just make something above that will support the Golf Course or if it has potential for more than that. It is something that it is a thought process that Parks has to go through in a knowledgeable way drawing on people like the Chair and others that have the experience (inaudible); we need to just research this a bit more. I'm not trying to have a discussion here, I just wanted to put that suggestion out. Chair Furfaro: Okay on that note I have made myself available to Parks if they want to talk. The Golf Course Concession should be an amenity to golf. That is the focus. Not a standalone restaurant. Councilmember Nakamura. Ms. Nakamura: Along those lines, I think that what I see that is missing here is the discussion of this asset that is this facility that is pretty everybody acknowledges it is old and rundown in many ways, and yet there is space for potential meeting space, there is potential restaurant space, snack bar space, and I don't see the approach being taken as looking at it as an asset that we need to look at really what is feasible, so what I am thinking of is we need to start with a concept of what is possible here and part of it is a physical look. What is our vision for April 17, 2012 Revenue Forecasting p.23 this property and then also what is the business feasibility piece, and I don't see that second half. I see us doing piecemeal fixing up to maybe deal with some short term maybe try and break even or provide an amenity, but I don't see us strategically looking at this as an asset of the County and thinking what are the possibilities in this business climate what would make sense. We have learned from this short term experience what doesn't work... Chair Furfaro: We knew that, I'm going to be very blunt. We knew that upfront. That is not a full service restaurant location. It is an amenity that needs a business plan to support golf. Ms. Nakamura: Exactly and in the future an uture could it be and what would it take if we want to go in that direction. So that type of strategic thinking needs to happen, but there is going to be resources needed to move in that direction and I believe if because it is an asset it's not just fixing the golf course. We have spent a lot of resources making this course so beautiful and bring the standards up I think we need to try to look at this amenity. I am not sure but I believe it is the role of Parks and Recreation to take the lead but I also think there's some greater asset management piece here that needs to be looked at and some resources put toward that so that Parks and Rec can do their work to implement it but there is a missing piece here. Chair Furfaro: They have had an opportunity or at least I extended to them to engage in that conversation. It has not happened yet. That needs to be the initiative from the administration so it hasn't happened yet. Vice-Chair Yukimura. Ms.Yukimura: (inaudible) Chair Furfaro: Let us move on. I think I said this the first time. The asset is the Golf Course, the amenity is the snack bar. That is supposed to drive rounds of golf which is our main cash issue for that amenity, but let's know that the invitation is extended. There are people that are available to do that, but as we see this number here, you are showing between the concession and I assume this is all concessions and the number of rounds of golf, we are projecting $10,000.00 increase in revenues at this point with an unknown yet to be developed. Okay next item. Mr. Rezentes: The next three items are funds relative to housing and I'm not sure if you want to roll this discussion until tomorrow in Housing Department Budget like we discussed the housing and development fund. Chair Furfaro: It is probably best to roll it into Housing. Does anybody have a problem with that here? I think we agree with you, Wally. So Kalepa, Paanau, and the Housing revolving fund so as we have gone through this piece ... oh sure go ahead. Mr. Rapozo: It's probably a dumb question, it is under rent and concessions, but concessions, we don't have any concessions in (inaudible) right. Housing involving Kalepa (inaudible)is that considered a concession? Mr. Rezentes: Yes, I hear what you are saying kind of a misnomer, Yes. Mr. Rapozo: (inaudible) that is fin,e but I assume that because rents (inaudible) don't need to change it because it's a standard part of the account, so that's fine thank you. Chair Furfaro: Okay that is a very interesting question but there are times when places like Kalepa and so forth, the common area elements are rented out. If we just April 17, 2012 Revenue Forecasting p.24 want to lump sum that in rent or do we want to keep track of the facilities as they're used by homeowners, birthday parties for tenants, and so forth. That is a question that is a good one that Mr. Rapozo has raised because Kalepa has a pretty sizable community center in the way of facilities. Thank you for the question, Mr. Rapozo. Mr. Rapozo: I think that the usage of that facility may increase the revenue because I'm not sure if they allow outside renters but that can be explored. Chair Furfaro: No, as I said tenants. But I don't think it is free for tenants if they have a private party there or so forth. Mr. Rapozo: In that case I think it should be (inaudible). Chair Furfaro: It is worth surfacing when we go to Housing. Mr. Kuali`i did you have a question? Mr. Kuali`i: Thank you Mr. Chair. So I know that the public Access Fund and the Debt Service Fund both shows zero, but is there anything that you were going to say about that? Mr. Rezentes: You will see well the Public Access Fund is a function of half of a percent of Real Property. The Debt Service Fund is I guess detailed below the revenues you see it in the Debt Service Fund at 9.707. We didn't include it in this discussion because the focus was on revenues. Chair Furfaro: Yes and we should put that in part of the Housing question. I think I agree with Councilmember Kuali`i. When we get to Housing we should be able to ask the Debt service on the project itself as it compares to revenue so. Mr. Kuali`i: But sa ou did just that the Public Access Fund was Y just say one half percent of the Real Property tax revenue so it is coming from that revenue. Mr. Rezentes: One half of one ercent I believe that is what at the Ordinance was approved to be. Mr. Kuali`i: Thank you. Chair Furfaro: You're good. Okay just to summarize this sheet and this portion here as we are comparing revenues to last year well it is fair to point out when it comes to the General Fund, we are negative about 1.5 million, exactly 1.567; when it comes to the other subcategories, we are about 453,000 to the plus on the front page which reflects a change in the beautification fund about 4,000 compared to last year. A change in community Housing by 249,000 down and an improvement in the Sewer Fund by 706,000. If we take that over to page 2, we are about 153,000 better to the previous year and all of those accounts and when comparing the forecast for 2013 to the actual in 2012 there is a net difference of 961,000 negative to the previous year in comparing budget to budget. We can leave that at this point right now. Now I guess I am going to be slipping out about 11:45 a.m. but I think we are going to have a little discussion about the detail in Real Property Tax at this point, so is Mr. Hunt here? Is he going to be chatting with us? I guess the first thing we should be talking about is what actually we think he was able to reconcile as to showing the certified property forecast better by a 1,038,000 that might be a starting point for discussion, and again, Mel, I'm going to have to step out 11:45 a.m. We 1 April 17, 2012 Revenue Forecasting p.25 scheduled this session until noon so will you take over the meeting when I step out. Okay Steve you have the floor. Mr. Hunt: Steve Hunt, Real Property Assessment. I guess the projections that we were providing prior to the certification of the roll were presented in the original budget that was submitted. The anticipation and the real guesswork was obviously what rates were going to remain, the current rates, whether there is going to be rate changes and also estimating the number of appeals that are going to occur. In fiscal year 12, we had roughly about 1.5 million as set aside which was 50% of the taxes in appeal was escrowed. They were for budgeting purposes. We were estimating about the same amount between a million two and a million five for the fiscal 13 budget initially, but by the time we actually got the certified roll, the number of appeals was far down from where our estimates where. So there was roughly about two hundred eleven thousand or so in that escrow account for that number of appeals. I believe the number that we have, if you were to apply the current rate to the certified roll, inclusive of the appeals, is $78,338,499 I believe is the current projected revenue from Real Property Tax. Chair Furfaro: And do I recall having surface this question before we get to the actual setting of the tax rate and so forth that there might be some presentations to us by Real Property about various impacts on rates. Mr. Hunt We did do a study to determine what a ten cent increase both currently we have two rates still but by category to both the land and the building would result in and I'm happy to share those numbers with you today. Chair Furfaro: Do you have a handout for us or can we make copies? Mr. Hunt: You probably have to make some copies. I don't think we have enough. Put it up on the screen maybe. Chair Furfaro: Sure, but I would like some hard copies also so that we can pursue some dialog there. Now if you could repeat that while we are making copies the scenarios you are going to show us are... Mr. Hunt: They will be for the eight different categories, split classes, land and building rates, what a 10¢ increase to the rate would result in revenue. The only caveat being I did the exercise for homestead, but obviously, the cap is going to kick in so you can increase the rate and you may not see revenue from that rate because of the cap. Chair Furfaro: So maybe do you have some that shows us what the increase of revenue will be going from 2% flat cap to 3.7 in that category? Do you have a scenario that shows us that? Mr. Hunt: No, I do not because it's commingled. The cap applies not only to the ... I believe there are 10,421 in the homestead proper, but there are over 12,400 that actually have the cap established in different categories. Chair Furfaro: So are you able to do that in some kind of a subsidiary ledger by taking those that have the cap in apartment, those that have the ... are you able to do that? Mr. Hunt: I cannot do that. I do have a spreadsheet that I created at the vendor extract that has the current cap amount, the credit, if you will, in each category and it would have the hard line cap. Obviously the credit changes every time you change April 17, 2012 Revenue Forecasting p.26 the rate because the higher the market tax would be, the more credits they would get. But we could do that for that category but it would be specific to setting up something. Chair Furfaro: Steve, I just seen a gentleman that walked in; the audience was empty earlier. Sir, are you here to give any testimony on the pieces that were given earlier? No, okay thank you, go ahead Steve. Mr. Hunt: So because of the commingling of the exemption within the various classes, it is very difficult to discern what is being capped and what the effect would be of the rate changes until you actually run it through the software. The spreadsheet gives you somewhat of an idea, but even that you have to program to see where the caps kick in and what the changes would be. Chair Furfaro: Okay, what I am going to do now while they're making copies, I am going to allow a few questions, but more importantly you got to come back and make your presentation from what is being handed out to us. For right now, I will recognize Mr. Bynum. Mr. Bynum: Mr. Chair, this issue that Steve just touched on is something I really am hopeful we have a discussion about today with the Council. Chair Furfaro: Well we are going to see his presentation. Mr. Bynum: I'm afraid we are going to run out of time but because our tax Ordinance says Council, look at your revenue needs, determine what percentage should be paid by what type of taxpayer, and when it comes to the homestead class, we don't have the fundamental information in which to make an informed decision. Our staff calculates the percentages for us and they say that homestead class is 15% (inaudible) 16% but that is because unlike Steve, they don't eliminate the credits before doing that calculation. Steve, the number you gave was 11.59 or something after you remove those ,but all of those credits aren't in the homestead class. Mr. Hunt: That is correct. Mr. Bynum: So in the resident home so we don't have a figure that tells us what percentage of taxes are being paid by resident homeowners correct? Mr. Hunt: Correct. Mr. Bynum: And I find that and have found that inappropriate for more than two years when I came to that realization because there were 12,199 resident homeowners I believe or parcels 10,000 of those are in the homestead class 13,000 of them are in single family residential and what's pit 5? Mr. Hunt: Ag. Mr. Bynum: 444 of them are in Ag, I think 78 are in apartment, so you know overall there are almost 19,000 that are not reflected in these calculations, so excuse all of these calculations. The homestead class is actually paying more than is showing in the chart sheet provided us. So let's just use single family residential, it shows that they have had tax reductions and has a class that is correct, but inside that class there are 13,000 homeowners, the majority of which have had increases, so the deduction at the class shows is actually the non-resident homeowners have even bigger deduction than what our data shows. I have again sent you ,I don't April 17, 2012 Revenue Forecasting p.27 know if you've gotten it, but for the third or fourth time what is the true fiscal impact of resident homeowners when you calculate out these and what is the true impact with the other classes? Mr. Hunt: That question is a well-founded question. It is not a question I can answer, it is not a question unless you authorize funds for reprogramming that we can create a job to provide you that, but that is not something that is accessible at our fingertips. Mr. Bynum: And so I just want and if I had more time I would go into detail on this. The tax Ordinance tells us Council, make an informed decision, and you are testifying now for the third time in two years and it is not a blaming statement, it is just a reality you cannot provide us with that information, so it is impossible for the Council to make an informed decision because we don't have the data, and I have been begging and being rude at times saying it is irresponsible of us as a Government to make these fundamental tax decisions without fundamentally accurate data in order to make an informed decision. So I'll repeat it for the umpteenth time whatever it takes we need to have a clear picture of who is paying what tax burden in our County. Not one that is ballparked, swagged, you know. We need an accurate accounting. Now I'm preparing my own proposal for rates, I don't know what the, but I can't ... I should be able to know to the penny how it will impact resident homeowners, how it will impact each class in each individual taxpayer in this County, because in order for us to do an informed decision, we need to look at the macro, how does this impact this class of taxpayers, and the micro, how does it include individual taxpayers. So I will just leave it at that. It is just very upsetting to me that after three years of having this discussion we can't get that data. Chair Furfaro: Okay let's leave it at that. Mr. Hunt: I would like to go on record that I did provide that data in a spreadsheet form on April 4. All taxable parcels, what their estimated taxes are, with the current tax rates was rovided April 4. p P Mr. Bynum: Where are homeowners? Mr. Hunt: It includes all taxable parcels. Mr. Rapozo: Does it look like this? Mr. Hunt: I can't see that far. Mr. Bynum: You mean the... Mr. Hunt: It's a big spreadsheet. I had to zip file it to you because it was 50 megs or something. Mr. Bynum: Right and I have that email here. I requested this as soon as the certified tax rolls were available you sent me the data but not in a form we can access. Chair Furfaro: Okay let's hold right here. You have your response but I have to tell you I do believe that there are programs available and I have dealt with them a lot in my hotel career. Let us just take those categories up on the board and say I want to put something and something that says...the first category is single family residents, let's call that a garden view room. Let's take the next as partial ocean view, ocean view, and so forth. Dickie is an airline pilot, who is entitled to a 50% discount, and Mel is a travel agent, and so forth, and so you have those categories of people who qualify for discounts into these categories of economy, garden view, and so forth. You should be able to calculate what discounts are happening and what April 17, 2012 Revenue Forecasting p.28 categories. Those kinds of programs do exist. Maybe you need to tell us if we need to invest in a little bit money because the point Mr. Bynum is making is we have to make informed decisions. So on that note, let's go to your presentation. That's it, let's go to the presentation. I want to see the presentation before I leave at 11:45 a.m. But Steve, you hear my point, if it is software we have to buy that we can get the most accurate information possible, there has got to be a similar package somewhere. Okay you have the floor. Mr. Hunt: Using the fiscal year 13 information, if the land rate for the single class were to increase 10¢, the revenue impact would be approximately 291,426. Again with Mr. Bynum's caveat that those that are in the single family class that are capped, there is going to be some reduction and they will pay actually a little less than that. So all of these categories that I speak of where there are capped programs under the PHU, this would be the high estimate is anything else there is going to be additional credits to the lows that would bring that down. Assuming there were no caps, that would be the maximum increase. If you were to take that same category for the building increase, a 10¢ increase to the building value produces approximately 159,462 thousand in revenue. As you can see the single family class is weighted more heavily in land. On the apartment class which is primarily the condominium projects and vacant land with multifamily zoning, a 10¢ increase to the land results in approximately 73,537 in revenue and on the building a 10¢ increase to this class represents approximately 94,389 in revenue. Commercial, a 10¢ increase to the land would result in about 53,999 and a 10¢ increase to the building about 42,906. For the industrial, 18,460 for the land and 15,816 for the building. Agriculture, a 10¢ increase 145,605 for land, 71,569 for the building. Conservation, only 21,479 for land, and even less for the building 4,597. Obviously conservation has the lowest valuation because of the number of parcels that are in there and the improvements don't represent the bulk of the value. It is heavily weighted in land. For the hotel and resort classification, a 10¢ increase to the land would result in about 70,827 and a 10¢increase of building approximately 120,590. The homestead class, I ran through the exercise to put 10¢ increase, but obviously the cap if that increase is greater than the 3.73% cap you are not going to see any of the increase, but a 10¢ increase to the homestead land would result in about 209,282 and on the building about 173,773 dollars. So looking at the categories sort of collectively, you can obviously see that the land for single family and homestead are our biggest valuation drivers, so increases there result potentially in the most revenue. Aside from that land and agriculture and buildings in the hotel and resort category and both the land and building mostly the buildings and the apartment class those are the revenue drivers and that is where the most increase would happen. Philosophically, single family residential has always paid too little in terms of their rate. I believe going back to the divide. Prior to having a homestead category, most of the homestead was lumped into the single family class. When they made that divide, the rates stayed relatively similar. There wasn't much of a rate differential and that has continued over time. When you think about it, the homestead really is your owner occupant, you are using it exclusively as owner. All other April 17, 2012 Revenue Forecasting p.29 categories are revenue producing. Values driving the assessments in properties that are resort and commercial tend to have higher values so they are already assessed higher. Appling higher tax rates doesn't necessarily mean that we're not already accounting for this in the valuation, so to me the single family rate at the rates they're at now potentially has the most ability to change if we are looking to increase tax rates. Chair Furfaro: So Steve, is that the presentation and the one level there. I mean did you look at something for a nickel, or fifteen cents did you... Mr. Hunt: Well every 10¢ you would divide by half if you wanted a nickel increase or if you want a 20¢ increase. I just wanted to provide some ranges because again we believe it is going to be a lively discussion on rates and we wanted to give you information as to what the potential impacts of these different rates would have on revenue. Chair Furfaro: Do you know if in the May 8 submittal the administration will be making a recommendation. Mr. Hunt: I don't know if there is going to be a recommendation; I know we are going to be testing some different rate scenarios. Every time we test a rate, the way the software works now, we have to put in both the land and building rate on each category, run it through what we call tax calcs, which essentially determines the market taxes, the effects of the exemptions and the PHU cap, and the results are spit out to us saying okay based on the new rates these are the new caps, and the credits change every time you do touch the rates, so it takes about an hour and a half to run a job from start to finish, and then IT has to do a reset on our test to get us back to refresh it to put in the new rates to override the tax calcs. Typically we will run maybe 4-5 scenarios in a day. Chair Furfaro: Are you running those scenarios only for the administration or are you going to be able to present something to us. Mr. Hunt: If rates were suggested by Council, I could run those for you. Chair Furfaro: That is not what I asked. I asked if you were making a presentation to the administration and would that be shared with us? You turned around and said if Council was proposing something you'll make a presentation. I just want to know, are you going to share any recommendations that come from the administration that's my question. Mr. Hunt: Okay sorry misunderstood. Mr. Rezentes: We know we are going to do a number of scenarios that look at a number of scenarios, I mean we can provide you some of that data. We would also like to see what you folks have in mind as far as rate structure too and that we can consider that into our discussion points as well. I am not sure how many we are going to look at but I am sure we are, in the next week to week and a half, going to be looking at various options. Chair Furfaro: Okay what we have in front of us today, Wally, basically says and I just quickly added it up by fingers, aren't as secure as they were in the past especially when it is coming up on lunchtime and I need a sugar fix. Here presented to us is 1 million,and members, if you haven't added this up ,you might want to write this down 1,282,034; for every 10¢ that comes recommended that comes across the board and it would be half of that if it was a nickel, it would be 1 1/2 of that if it was 15¢, but that is what you have to share with us today at this point. Okay Mr. Rapozo. April 17, 2012 Revenue Forecasting p.30 Mr. Rapozo: Thank you; is that something that we can expect from the administration—a proposal that the tax rates will be increased? Mr. Rezentes: We are definitely looking at all options and it ... Mr. Rapozo: You don't need to bring up the other options I just asking about taxes. Mr. Rezentes: Yes, we are all looking at all Real Property Tax rate options. We are going to be looking at Real Property Tax rate options and including ultimately having the Mayor make a decision on what we would want to propose and that is what is going to be coming over on May 8. Mr. Rapozo: (inaudible) I passed out Mr. Chair (inaudible) I did request an attorney's opinion on the process of how to reset the rates and I think if you look at the first question on the opinion, the response is very clear that if we are not following (inaudible), although it's an opinion, but it is obvious here that the code is the code. If Council is not following (inaudible) provided (inaudible) in compliance with section 5A (inaudible), I think it is very premature to be discussing rate, because if you look at the code, and I said this several times already, and I'm not sure if it is getting across, but we don't set the rate, we set the percentage of allocation, and that will determine the rate, so I think to be discussing 10¢ and so forth, I think that is not proper. I think we got to sit down and determine as a Council and not the administration. I think the code is clear that it is the Council. If we want to set a 15% allocation to the homesteads and a 20% allocation to the single family resident, whatever that formula is that comes out to 100% that will (inaudible) the rate. So I think we need to kind of follow that and'I don't know how; I mean it is very subjective why should one category pay 10% vs. 20%. If you look at this sheet that we have exhibit 1, conservation fees 2.03% (inaudible) tax revenue. Homestead is (inaudible), single family is (inaudible), so I think that is the challenge we got to figure out—is we got to set the percentages and then the rates will follow. I don't know, I think that is that challenge, how we set up those percentages. What is the standard percentage for homestead (inaudible). I'm concerned that is the discussion that we got to have as a Council as we go through the decision making process. If anything is, I'm just going to be honest (inaudible), based on what I have seen so far with the types of request for positions and equipment and expenses, I don't think raising taxes right now is justified. I think we should be looking at reducing some of these high cost items rather than raising taxes. I'm just being honest. I'm looking through these things and I'm highlighting some of the expenditures, and I'm looking at millions of dollars in additional cost this year. I cannot sit here and justify any increase in taxes I just can't do it. I can definitely support reviewing the percentages of assessments tax assessments but I cannot sit here today and say from what I have seen in the budget up to this point and we are not done yet that a tax increase is justified. I just cannot do that and I'm just being honest. My main focus was really on that attorney's opinion and the way we do it, and I just want to say, like Mr. Bynum said earlier, we have done a lot of different things this year including this session and I got to say, Mr. Chair, it was very eye opening and enlightening this revenue session. Likewise, we got to change the way we do things and I think the big change this year will be setting a percentage versus setting a rate (inaudible)thank you. Chair Furfaro: Thank you Mr. Rapozo, and the discussion about the duties setting percentages by category is not a new item; that it has surfaced before. Mr. Bynum you have the floor. Mr. Bynum: To respond to Mr. Rapozo, I agree with the premise of his statement but as all things taxation, it gets complicated and our past history has helped complicate the matter, but the first point I want to make is in an era of falling assessments, a tax April 17, 2012 Revenue Forecasting p.31 rate increase does not necessarily mean a tax increase. I don't think we are going to get to it today but I have a chart of all the County's tax rate, and over the last three years every County except Kaua`i has increased rates but they haven't increased taxes, they just just increased the rate to keep from losing that much revenue. You always look at assessed value times rate minus (inaudible) and but the fundamental thing is, because I have been saying this for a couple of years, we need to have that discussion and we are starting to have it, but Mr. Hunt just said again for the first umpteenth time, we currently do not have the data to know accurately what the rates are. Now we know it by class but because of the changes you mentioned, we have scattered the resident homeowners into a number of different classes, and what I'm begging for, what I'm demanding, what word can I actually use to actually get it, is an accurate description of what the tax burden is on resident homeowners, and if we have that, we would be able to know what the accurate tax burden say on apartments and Ag land and other instances, and so Steve said until I get authorized, that is what you told me in the email here is the data, but to analyze it, I don't have the time and I'm not authorized. What does it take to authorize that we have accurate information from which to make these decisions, and so personally, I'm not going to propose tax increases for anyone. I am going to suggest rate increases in order to keep certain categories revenue neutral. Does that make sense? But I don't know what to set those numbers at because I don't have an accurate data set and I don't want to ballpark it. I don't want to say I think this will accomplish the goal. I want to be able to say if we do this, this is the outcome and right now we can't and shouldn't everybody in this room agree that that is just not tenable, it is just not okay to not have accurate information from which to make an informed decision. Chair Furfaro: Okay Mr. Bynum I am going to recognize others. I have given you two opportunities to speak. Vice-Chair Yukimura. Ms.Yukimura: So (inaudible) administration is going to make some recommendations how are you going to make recommendations without accurate data? Mr. Hunt: The only way we can provide information on what the tax revenue results will be is to put the rates into the program and run it through. We will know at the end of the run what the revenue will be and what the credits will be. What we don't know is the allocation of those credits between categories. Ms.Yukimura: And that is the part that needs some software manipulation? Okay and how much would it cost to get that software to (inaudible). Mr. Hunt: It is time and money and we would have to put in a formal request. Ms. Yukimura: Well how come you haven't put in a formal request? Mr. Hunt: Because we have not been asked that specific question. Ms.Yukimura: I would like to get that information and I hereby request it. Mr. Rezentes: We can request it, but understand that the numbers that we are certifying and the numbers that we have to use, required to use for budget purposes, is an estimated number in and of itself and it is based not entirely in part on value and rate, it is also based on estimate, not even an estimate, a percentage of how much appeals we have in a given year and how much will resolve in the given year. So yes it is an estimate, so what I'm saying is we estimate Real Property Tax Revenues annually based on the tools that we have. Is it a 100% to the April 17, 2012 Revenue Forecasting p.32 penny accurate? It never is because we don't know how much money, we don't know how much delinquent we'll have, we don't know how much penalties and interest we'll have, we don't know how many claim I mean settlements we'll have. Ms. Yukimura: So what you are saying bottom line is that you don't think we need that. Mr. Rezentes: No, I'm not saying that at all. Chair Furfaro: Okay let's not get... excuse me, Wally. Let's not get argumentative folks. The question was posed, what it would take for us to get a program. You've said regardless of some of us challenging that maybe it hasn't been asked before so this will be a formal request. Mr. Rezentes: We'll work on that and let you know what it is and don't and I think you have mistaken about what I was saying. I'm not against that at all, but all I'm saying is the reality is we are estimating Real Property Tax Revenues on an annual basis and there are so many things that go into what the actual real property tax revenues are in a given year. But I'm not against getting a lot more accurate numbers and spending money towards that end. Ms.Yukimura: But what I hear you saying is you're going to do your job to make a recommendation with that accurate, accurate information and you feel that will be okay. Mr. Rezentes: That is what we have to deal with at this point. I mean I think again it's not a scientific absolute solution on how much money we'll get in a given year. Chair Furfaro: We have other members that want to ask questions. One more question Vice-Chair you had about four in a row. Ms.Yukimura: But it is all toward this thing about how we get some accurate information. Chair Furfaro: And we just said it was a program. Ms.Yukimura: And so my question is can we work (inaudible) between the administration and the Council where we do some estimates and we run what we think are best alternatives of right now during this time before we have to set the rates. Mr. Rezentes: I think that's great; I'm all in favor of that. Chair Furfaro: Mr. Rapoz,o you are next, and followed by Mr. Bynum, if you would follow up because I need to step out and go do my blood test, and may I ask that everybody try and stay to the time, and most of all let's all be respectful of their responses, and we are back in the afternoon for housing. Mr. Rapozo: First of all let me just say the picture has been painted that this information is inaccurate. I disagree with that assessment. I think the numbers and the evaluations are accurate enough. I don't know how much more accurate we are going to get. It's a budget we estimate. Mr. Bynum talked about other islands increased tax rates, yes they have also decreased (inaudible). April 17, 2012 Revenue Forecasting R.33 Mr. Hunt: I just wanted to respond. One of the concerns about setting the rates and this may not be an issue for you but if you wanted to increase the homestead class more than the CPI you cannot. Mr. Rapozo: Then we need to change the law. We not going oops let's just violate that law because it is not easy we don't want to get ... that is what upsets me about this County and I hear it from the other Counties as well. We follow the laws that apply to our agenda and when it doesn't, it's okay to bend it and if we cannot bend it, we will get the attorney to write an opinion that we can, that is the thing that drives me insane. That law is clear as day. Set the percentage and it tells you how to do it. Even for dummies like me, it tells us how to do the math, tells you what to multiply by, and how to divide it. It tells all that for us. It does it A, B, C, D, and we haven't done it. We need to do it this year and if we don't, I can promise you I am not supporting that budget and I not supporting that tax rates, and I'm only one but the message has got to be sent that we need to start this year doing it the right way or change the law. Thank you, the Chair left. Mr. Bynum I know you're up. Anybody else because Mr. Bynum went once before, if not (inaudible). Mr. Bynum: I'm trying to keep my frustration in check. Mel, you are correct this is what the Ordinance says. Last year Real Property told us, oh but our software won't give you that data, and I said repeatedly make the software we need to be ready to follow the law, and I can tell you, Mel, even if they...it is impossible and I think you will agree, Steve, at this date, at this time, it is impossible before we, under Charter, we are required to set the rate to get that software reprogrammed and give us this data. I don't think if we said here is a million dollars, I don't think you can get it done, you agree? Before we have to set the rates. Mr. Hunt: It would be very unlikely that it will be able to get done before you set the rates. Mr. Bynum: Okay and I have said this here before. I have a file in my office that is about this thick now and it is labeled too late. I want to do this, oh too late, and I have been saying about a year and a half fix it, fix the software. Whatever it takes, now it is too late to do it for this year. I agree with you because I know how complex it is, but it wasn't too late to do it when we had a year to get it done, and so I just don't know what to do with this. What I know is that this discussion because it gets even more complicated as you know, Steve, we are required not this fiscal year but next fiscal year to have a flat rate. That is going to be difficult. We should use this year to move in that direction but that is a whole other complex analyses and discussion which we can't do because we have accurate text data to do it. Do you agree with what I just said? Mr. Hunt: I would even go further, I cannot provide you estimates nor the administration estimates without running individual rate scenarios to tell you what the revenue would be. Mr. Bynum: And that still wouldn't tell us what percentage of the tax burden is being paid by resident home owners. Mr. Hunt: Because we have to allocate that cap amount and that cap amount for the credits changes every time you change the rate. It is not even a standard cap. Mr. Bynum: Let me take a different tact at this because you and I have had so many rich discussions over the last couple of years. At one time it would have been simple to follow this Ordinance because every tax category was rate minus exemptions times ... I mean assessed value minus exemptions times rates is that correct? April 17, 2012 Revenue Forecasting p.34 Mr. Hunt: Correct. Mr. Bynum: But when we created a homestead class and then put everybody in it, and then we probably won't have time to talk about why everyone is not in it because there are reasons, that made it more complicated than when we brought the cap in it, exponentially made it more complicated. So that is why I have been on this for two or three years trying to reset the cap, try to ... if we are going to keep the cap, let us at least make it manageable so we don't have these huge inequities. We are in a very convoluted mess, do you agree? Mr. Hunt: I would agree that it is absolutely difficult for me to project by category what the taxes are, what we have available to us. Mr. Bynum: And bearing with me that is what I was saying a year ago, so it's like let's reprogram the software. Let's start to unravel this mess. Let's get it more equitable. And now here we are again for me from my perspective for the third year in the row at the wire without the proper information without the proper mechanism to do what the Ordinance requires us to do. Mr. Rapozo: Okay Mr. Bynum, that was third year in a row, fourth time today, so and I misspoke about that and I apologize, the posting is until 12:30 not to 12:00. I misread the Chair's statement memo from yesterday and thought it was a special session for revenue, so I apologize and we'll go until 12:30. Anyone else? Mr. Kuali`i. Mr. Kuali`i: Aloha and thanks, Steve and Sally. I wonder if you have just a basic number as far as Councilmember Bynum is talking about the homesteaders showing up in the homesteaders class versus the folks that are eligible for homestead as a part of their property showing up in other classes. If you were to count them all, what percentage of all homesteaders show up in the homesteader class? Eighty, ninety, I mean... Mr. Hunt: Probably in the eightyish, I believe, when we go the current count. Mr. Bynum: It's roughly eighty-five. Mr. Hunt: About eighty-five percent. I think there were 10,421 parcels in the homestead class and there are about 12, 200 total, somewhere in that range. Mr. Bynum: 12,199 I have it on an envelope, 1,887 are in other tax categories which is roughly about 15%. Ms. Yukimura: Can you just give us that again. Mr. Bynum: Yes, there are 12,199 resident homeowners, 10,312 of those are in the homestead class, and 1,887 are scattered among other classes virtually all the other ones. What's four again? Mr. Hunt: Four, industrial. Mr. Bynum: There's one. In my rough math 1887 is roughly 15% of the 12,200. Mr. Kuali`i: So taking my time back, with that being said, so you are saying, because I too agree with Councilmember Rapozo, that it is not a matter of being accurate. fl 111 V M/ A l . 1 ,1B'° „-e t M;. April 17, 2012 Revenue Forecasting p.35 It's a matter of after you make whatever adjustments, whatever rate implications, that you are now able to talk in totals of who's getting what benefit, but in fact 85% of the homesteaders getting that benefit is right there clear in front of our eyes, so you can say that we are seeing ... you know the other 15% will benefit the same way the 85% is; we just don't have total to argue for the past five years or ten years...they paid too much or they paid too little, but still we can see the impact of what decisions we make going forward on what the taxes, whether the rate changes, even though I agree again with Councilmember Rapozo that we should be focusing on the interest, I mean the percentage, and in fact a tax rate alone does not mean a tax increase, but I would say keeping the revenue neutral throughout this County well, at the same time not keeping our expenses neutral, allowing our expenses to go up will mean that we need revenue from somewhere else and ultimately. So if we set the percentage and we pay attention to the bottom line on what expenditures are, those two are the pieces this Council should be working on. Setting the percentage of which different categories will pay for what on our services and operations, keep that bottom line of what that total ends up being, hundred sixty-one million or whatever, and then that final piece of where the Real Property tax revenues will come from will matter on what's the total that we actually need, because if we are collecting more than we need ,and I think that's what we all agreed to that that's not fair to the taxpayers and that is what perhaps what has been happening in the past, especially when you have this lapse and surplus with vacant positions and what have you, but when you say that you can run it through the program, that means whatever if a Councilmember wanted to change the rate, reduce it by 10 cents or increase it by 10 cents, you would run it through and you would be able to show us the impact in total on all these different categories who would be contributing what amount, and so the homestead class would have 85% representation. Mr. Hunt: To that end, yes, I can estimate the total revenue. For instance, say you set rates that's based on just value and exemptions, net taxable the rates look like they are going to produce $80,000,000.00 in revenue, and I take those same rates and I put them in and because of the credits the credits have increased because of a particular category is receiving greater credits because of the increase in tax rates because they are capped. It may only produce $79 and a half million in revenue. Where you actually set rates thinking you were going to get $80,000,000.00, the end result may only be $79 and a half million. What I cannot do is say okay, of that, currently we have about 4.1 million in PHU credits, I can't say the homestead has 3.7 of that and the apartments have 50,000,000 of that and single family has a 100,000 of it, because they are spread out. All we can do is calculate those that have caps and aggregate those. We're not pushing them into various classes to say how much cap goes to each category. Mr. Kuali`i: And in fact that is the biggest wrench in the calculation and why it is so complicated. It is because you are setting the rate that is not actually ending up in the taxpayers hands, because it's not as much as the cap, and so if you were just to calculate based on the rate, then it would be clean and clear, but because the cap takes impact on that, some get, some don't, and then it just complicates. So ultimately I still get back to what I said before during the homeowner exemption discussion on Bill No. 2425 is that if we are going to overhaul this tax system and have clarity on how each category pays what rate and what taxes, ultimately the cap needs to be phased out. It was meant to be a temporary solution and I think ultimately and perhaps we should work on next year on analyzing the whole situation of how this Council takes action every year on revenues and Real Property Taxes so that no one is paying too much or too little. Thank you. Mr. Rapozo: Any other questions, Councilmember Nakamura? You haven't gone yet today. Ms. Nakamura: This is a question for Wally, so I am looking at Councilmember Rapozo's request to the County Attorney about our process and the County Attorney's response. April 17, 2012 Revenue Forecasting p.36 Mr. Bynum: (inaudible) Mr. Rapozo: Yes, I know where that point is going to be I just put in a request to the Chair to have that made public. We won't have that vote until May 9. Mr. Bynum: (inaudible) Yes, make that point because I would like to have this discussion. Mr. Rapozo: I won't go to jail for that, sorry I apologize. Any other questions? Mr. Rezentes: I'll ask the County Attorney the same question, I think. Mr. Rapozo: Yes, I think if you ask the same question you'll get one and it will be faster than May 9. But it is what it is. Hopefully it is the same opinion. Okay Councilmember Yukimura. Ms. Yukimura: If we just set the revenue by percentage, do we have the same problem that whatever tax rates we come up with still have to be tested? I mean it still don't give us an accurate result right? In terms of the revenue produced. Mr. Rezentes: You still would have back into a rate and I believe that is what Councilmember Rapozo mentioned, ultimately you would still have to use whatever percentage you applying to a class, you would still have to then work a rate from that. Ms. Yukimura: Well you work a rate but you still have to test the rate because you don't know whether that rates going to actually produce the revenue that you are going to be counting on. Mr. Hunt: And it is concentrated so you are going to, obviously the homestead the rates are less affected because if you want to increase a rate that is greater than 3.7% it is not going to happen, because the cap is going to kick in, so if you wanted to go from paying 11% to 14% of the taxes, doesn't matter what you do, they are only going to pay 3.73% more of their taxes period. You will have that situation happening primarily in the single family and Ag categories where they are of the 15% plus or minus. Most of those are concentrated and those two some in the apartment class one in the industrial, but for the most part those rates will be accurate when you are looking at net revenue, and you want percentages and you want to figure out a rate, you can back into that for most of the categories. It is just these few have the home use but aren't using their properties exclusively, they are capped but under a different rate structure. Those are the ones we have to run through and determine how much those particular properties pay. All the other ones in that category will still pay based on the rate you set. It's just when that rate increases beyond the 3.73 of what they paid last year for the capped ones they kick in. Ms.Yukimura: I would guess that even if the rates were pretty pure, you didn't have to cap. It's still an (inaudible) process where you look at the revenues and you set some percentages but then you also look at the rates and see what relationships you are producing in the rate and you may adjust your percentages again so it is a back and forth think. Mr. Hunt: If you were to look at it as setting the percentages from that particular class knowing that the bottom line credits are just going to be lump sum applied whether they exist in that category or not, you would just say okay we expect and it would work out April 17, 2012 Revenue Forecasting p.37 from your normal rate sheet, your value less exemption and net taxable times the rate, you could come into a dollar figure as a percentage of the budget and then the only sort of adjustment you are going to need is the bulk saying okay we know that this 4.1 may go to 4.3 million. We still don't know how it is allocated. Probably 85% in the homestead but we don't know the rest of the allocation; therefore ,you are not receiving the true percentage of those that are in other categories but they are homestead. Not homesteads they are owner occupants and they are capped. Mr. Rapozo: You could definitely account for that variable, that credit. Mr. Hunt: Yes, the credit is not a problem. It is the allocation of that credit that is the challenge. How many properties are in single family and how much of that 4.1 credit is just in that single family class versus the apartment class. Mr. Rapozo: Once we remove that cap, we not going to have that issue. Mr. Bynum: (inaudible) I find some of it comical, because let me just say, this is clear as a bell. I am going to propose a reduction in rates for the homestead class okay. It is not going to impact those 1,800 resident homeowners that are scattered in other classes and it is not going to impact the 8,000 roughly people who have the PHU credit right now. So earlier this year showed the scattered chart that in this class, people are paying vastly different rates; those people who have the cap are at the bottom of this chart. If we reduce the rate in the homestead class, these people are still going to pay 3.7 percent more right, but these guys at the top that are paying really very high rates, they are going to get all of the benefits of that rate decrease which will reduce the gap. Mr. Hunt: And actually would weed some people out of the permanent home use that are capped now if their credits are very small, because their difference between their cap tax and their true tax at market is very minimum. If you drop the rate, you would actually push them potentially below where their capped tax is and you would have few building reset. Mr. Bynum: Right because some of those people have their current credit is 50 cents or 5 dollars, so those people, yes, they would drop out of the PHU. For those of you that were here, I was presenting this for the last few months in that spreadsheet saying if we make these changes, how much equity are we going to buy? I even showed a scenario that would have been a total market reset of the homestead class that everybody was treated exact equal. What I proposed would have left 1,700 that had even lower taxes, but that would have cost in revenue 5.4 million and nobody apparently ... Mr. Rapozo: Mr. Bynum, let's stick to the...you're going over your bill and... Mr. Bynum: What I'm saying is... Mr. Rapozo: We are not going to go that way. Mr. Bynum: Well I think the Council needs to understand, and the public, if we reduce the tax rate in the homestead class, there are still 8,000 people who are currently under the cap that will pay an increase. April 17, 2012 Revenue Forecasting p.38 Mr. Rapozo: Correct, but that discussion will be when you introduce your proposal, not today. Today we have the Finance Department here to ask questions or answer questions about revenues. That is what the agenda item (inaudible). Mr. Bynum: Then I will just summarize, okay? Mr. Rapozo: About what? Not about your bill, that's not what... Ms.Yukimura: About revenues. Mr. Bynum: About revenues. Mr. Rapozo: Please do revenues and focus on questions. I am entertaining questions right now so we can release them and then we can have discussion. Anymore questions? Ms. Yukimura: Can he finish? Mr. Rapozo: Questions. This is a Council Meeting, this is a budget hearing on revenues, and we have the resources if you have questions... Ms.Yukimura: We are discussing the interaction of the cap with our desire to work on the revenues. Mr. Rapozo: I don't have a problem with discussing the cap. Ms.Yukimura: And what Councilmember Bynum was saying is that he was trying to mitigate the impacts of the cap by his proposal. This is an interactive process. The process of exemptions determines net taxable value, determines, and then times rate and then credits, it is all going toward what are the revenues going to be and so ... Mr. Rapozo: And that is totally allowable. Ms.Yukimura: Well and that is what I think Mr. Bynum is trying to speak; can I just speak? Mr. Rapozo: No what I think what he was talking about is how we screwed up by not passing his bill. Anyway go ahead, JoAnn, you have the floor. Mr. Bynum: So I don't anymore? Mr. Rapozo: No, JoAnn has the floor. Ms.Yukimura: So I think what Councilmember Bynum was saying, because we are discussing the interaction of the cap with the proposal that we are trying to develop, is that there are other ways to mitigate the...and Councilmember Rapozo, you were talking about the importance of removing the caps, so was Councilmember Kuali`i, and what we all discovered was when the property values are hot, there has to be some protection and some (inaudible), and that is what the cap provides. There are other ways if you want some of the positive benefits of the cap, then there are other ways to mitigate the negative impacts of the cap. We left one behind already because that was the exemption and now we are struggling with how to set the rates to get the impacts that we want which is somewhere (inaudible) and keep some equity among the taxpayers. My question is if we want to be revenue neutral and the assessed values are going down in some April 17, 2012 Revenue Forecasting p.39 categories, the net taxable value, then that will require a reduction in tax rates in some of those categories? Mr. Hunt: If we want to be revenue neutral and values are going down, I would think it would be the opposite and you would want to increase. Ms.Yukimura: Okay, but if you want to mitigate the increase in the homestead category then we need to reduce the tax rate in(inaudible). Mr. Hunt: I am not following that part. If we want to mitigate, I don't think there is an increase. Ms.Yukimura: There is an increase in the percentage of revenues produced by that class. Mr. Hunt: The allocation of the total tax burden to that class you're talking about, and that's where this information that Councilmember Bynum is seeking is helpful to determine what that total impact is, because again, the information that was provided at the April 4 submittal to him was a replication of what we did in 2011 or the fiscal 12, and by my calculations, sorting out just the homeowner exemption properties, it was about a reduction of about 152,000 with the current rates. A big portion of that is the increased income exemption. Ms. Yukimura: So if we don't mind increasing the percentage produced by the homestead class, then there is no real problem? If we want to reduce the percentage then there is all this complications. Mr. Hunt: Correct. Ms.Yukimura: Thank you. Mr. Rapozo: Any other questions? No more questions? Go ahead. Mr. Bynum: I thought we were having a pretty good dialog and I was asking questions and you were answering it, and so I'm just going to summarize, because in the charts you give me, to the best you could calculate it, the homestead class was going from 11.29 to 11.51 right, so an increase, not a very big one this year, because the previous year was a bigger increase, but that's not really an accurate figure. It is just the best you can do with our current software. Mr. Hunt: Well what it did was it took the total PHU credits and applied it solely to that category, when in fact some of the credits go into other categories and actually and they are very close, I mean it is from I think the revenue estimated in fiscal year 12 which is the 2011 years about 8.954 million, and here it is 9,015,000, so it is almost flat if you will, but in actuality the homeowners, including all homeowners not just the homestead class, pay about 152,000 less in revenue this year. Well the category actually grew by about 40 or 50 properties or something. Mr. Bynum: So the homestead class has paid 3,000,000 increase over the last three years. This year there will be a decrease, so the impact of us increasing the low income exemption is that small decrease for the class. But that does not impact all the taxpayers in that class. Mr. Hunt: Right. It is multiple classes. April 17, 2012 Revenue Forecasting p.40 Mr. Bynum: So do you agree that if we change that, if we change the rate in the homestead class, that still is the majority even though the rates have gone down, the majority of taxpayers will pay an increase? Mr. Hunt: It depends on where you reduce the rate. How dramatically, if a dollar then a lot of them would probably (inaudible) Mr. Bynum: I have gotten a pretty clear indication from this Council that they are not willing to do 2.7 million much less 5.4 and so, but let's say if we dropped it 20 cents, the majority of taxpayers, the capped ones, would still pay an increase correct? Mr. Hunt: Yes. Mr. Bynum: And the people who would get the decrease are the people who are paying the highest market rate right now? Mr. Hunt: Correct. Mr. Bynum: So the ones in those scatter charts, when I showed hey this guy is paying 600, and this guy is paying 1600, that guy paying 1600 will get the decrease, the guy getting the 600 wouldn't, and so... Mr. Hunt: And the guy paying 1000 depending on where you set the rate could pay a little lower or (inaudible). Mr. Bynum: And if I can get that spreadsheet working again I can show that, or calculate that; I just haven't got it working yet. So my next question is, let's use the single family residential class, right now they are likely as a class to have a tax decrease because of lower assessed value if we leave the rates the same. Mr. Hunt: Correct. Mr. Bynum: But we can calculate a rate for that class that will be revenue neutral. We could calculate a rate that says we are going to raise this rate 6 cents or 6 pennies per thousand and that will result in a flat revenue year over year. Correct? Mr. Hunt: It would give you a real close estimate, again borrowing the adjustments for how many capped properties happen to be in that category. Mr. Bynum: Right but you know, so our budget already anticipates about a 2 million reduction in tax revenues right? The one you sent us. Mr. Hunt: I think it is about a million now. Mr. Bynum: One million because the certification was higher? Okay, so you have anticipated some reduction in revenue. I'm just saying I want to be able to calculate as best we can. How do we keep the non-resident homeowners tax the same that it was last year. Not a reduction but basically the same and any reductions in taxes go to the homestead class fully realizing that it is going to these guys and women that are paying the high market classes because they are the ones who have unfair tax burden at the moment, so and I hope the administration will take that tactic to say and that they will recommend some rate changes not to April 17, 2012 Revenue Forecasting p.41 increase anybody's tax bill but to keep it revenue neutral with some reduction in the homestead class. Mr. Hunt: So if I understand you, you are looking at revenue neutral not only as a total, but revenue by category, but potentially reduction to the homestead class which would then have to be made up by some other class to be truly revenue neutral bottom line. Mr. Bynum: You are correct at what you just said, but that is not what I was saying. What I was saying was the 7 non-resident tax categories remaining revenue neutral and the homestead tax have a reduction. Mr. Hunt: So the million reductions we are projecting currently with the current rates would go further lower based on whatever reduction, but everyone else would be revenue neutral by category. Mr. Bynum: Well at least if we are going to have a million dollar at least plug that in to those people that are paying the most unfair taxes. At least don't have them pay...does that make sense what I am saying? Now I would like it to be even more. I am very clear on that. I would like to see a two to three million dollar reduction in the homestead tax and I believe that we can easily do that. I don't agree with Mr. Rapozo's kind of overview of our fiscal situation and we will get into that in subsequent meetings. What is clear to me in this discussion, we can in those 7 tax categories set a rate that is revenue neutral and that if we are going to have any reduction in taxes this year, and this is my opinion, that reduction should come from resident homeowners which is different over the last four years. Correct? Mr. Hunt: It is correct when it happens. The concern I guess is the revenue neutrality position I'm not understanding. If it is revenue neutral by class with the exception of reduction that means we are chasing additional lost revenue potentially from Real Property. Not only what we have lost in value this year with the current rates but also what might be. Mr. Rapozo: Well it is basic math. If you drop the revenues in one class, somebody else got to pick it up. You cannot go revenue neutral on all categories and then drop one more and expect to be revenue neutral. You are going to lose. That is basic math. Mr. Hunt: Correct. Mr. Rapozo: So I am not following Mr. Bynum either, but I think it is clear that if you going to drop (inaudible) somebody else is going to have to pick it up. Mr. Hunt: And what I understand is the total revenue that we are estimating is a million short, but let's have that million all come from or be given to the homestead class, and let's push everyone back to revenue neutral from where they were last fiscal so we absorb that million with the current rates. Mr. Bynum: Yes. Mr. Hunt: Okay then I understand you. Mr. Bynum: But and I may be out (inaudible) but I can't calculate it. And neither can you. April 17, 2012 Revenue Forecasting p.42 Mr. Rapozo: And I think that point has been made many times today and I think that we have agreed that whatever you need we will provide to get that information accurate. I think that has been done, so let's put that to rest. Anyone else? Councilmember Yukimura. Ms. Yukimura: So runs that we were talking about need to be done whether...only if we are working on this scenario where the homestead class changes or if the rate is reduced? Is that the only place where we need to do these runs to get case by case? Mr. Hunt: No, if we are looking at revenue by class then we also have to look at the increases in those properties that have devalued in other categories to hit their revenue neutral position from where they were in this fiscal period. Ms. Yukimura: And you can't do it enough by estimates. Mr. Hunt: We can start with estimates but Y ou have to refine it as you put in those particular rates and run it, and if it doesn't come out with the revenue you anticipate you go higher or lower each week. Sort of a reiteration. Ms. Yukimura: So how much time does it take to do a run? Mr. Hunt: Hour and a half. Ms. Yukimura: So if we give you something on say on a Wednesday, you can get it to us by a Thursday or a Friday? Mr. Hunt: Yes. Ms. Yukimura: I mean I am just trying to judge... Mr. Hunt: I need IT support because every time it is on a server, we have a test server that we run it on, and we also have another one (inaudible) we run calculations on, so I need to find what is available and what hasn't been altered because we have to refresh and populate with the certified roll. Every time we do a test like for an admitted building or something, we do it in test to generate what the new assessment would have been and we do a P38 amended notice, so we use test to do that so we have to refresh it with the certified information first, then we have to run the rates and I need IT support to refresh every time we change the rate. Ms.Yukimura: Okay so what is a reasonable turnaround time for you? It is not the actual one and a half hours, it's actually... Mr. Hunt: It is one and a half hours plus the availability of IT. I would have to schedule with them. Usually I'll contact one of the IT reps and say are you available today, I'm going to run 2 or 3 scenarios today. Ms. Yukimura: And better to have 2 or 3 done at the same time? Mr. Hunt: Yes it is easier if I schedule the day, if you have specific rates in mind that you want to test, yes, then we can do that. Ms.Yukimura: So we will work offline with you in terms of timeframe then. Thank you. April 17, 2012 Revenue Forecasting p.43 Mr. Rapozo: Any other questions for the tax man? If not thank you very much. Anyone in the public wishing to testify on this budget matter? If not, any discussion? Go ahead Mr. Bynum. Mr. Bynum: I'm really glad we are having these discussions and I think everybody is starting to understand how convoluted, I don't know the right adjectives to use, of how difficult this is. The good news is we have started talking about it. We have started unraveling some of the problems. It is clear to me that I am going to add to my too late file because it is too late for this year to even appropriately follow our tax Ordinance. I don't even know where to go from here, but I am trying as hard as I can to come up with a rate proposal that accomplishes the goals I just said. Doesn't raise taxes for anyone but any reduction in revenue is realized by resident homeowners and because we did not pass the exemption bill or get the data, that relief will have to go to the people who are paying the highest amount now which seems appropriate. If we are going to give relief, we should give it to the resident homeowners who are paying much higher than their neighbors, and it will help not near as much as I had hoped, but it will help narrow that inequity if we go that route. Thank you. Mr. Rapozo: Anyone else? Go ahead. Mr. Kuali`i: I just wanted to make a brief comment too. Basically like I said in the discussions earlier on the bill, we have to make the cuts before we can give the relief, and we have to make the cuts also to replenish the reserve that has been 10.5 million has come out of that, so we do have a lot of work to do, and if Councilmember Bynum and others are serious about finding the moneys to move in that direction that they have to be serious about making the necessary cuts in this current budget. Thank you. Mr. Rapozo:p Thank ou anyone el y an y else? If not, I would agree. I think we definitely got to look at replenishing the reserve. We definitely got to look at replenishing the special funds. I think those things we need to start off and if you look at that number alone that are a substantial amount well over 11 million 12 million maybe even closer to 15 million dollars. Where is that going to come from? Well we are going to have to do some drastic cuts unless we are satisfied with violating our own resolution and so forth. I think it is important that we really take a very strong serious look at the budget that has been presented because before we start talking about cutting tax rates, I think we got to get a firm handle on this budget, and if this budget passes as presented, it is an increase in spending. It is a lot of money and I just think we definitely look at reducing government spending first, and if we enjoy some opportunities to provide tax relief, then so be it, but to do a revenue neutral tax rate change, what that does, it just feeds the growing monster called Government, and that is not I think responsible at this time especially with decreasing property values. With that, we are going to recess the committee and we will resume at 2:00 with Housing. There being no objections,the budget reviews was in recess at 12:27 p.m. April 17, 2012 Housing p.1 The departmental budget reviews reconvened on April 17, 2012 at 2:08 p.m., and proceeded as follows: HOUSING AGENCY: EUGENE K. JIMENEZ, Housing Director: Chairman Furfaro and members of the Council, my name is Eugene Jimenez, I am the Housing Director for the County of Kaua`i. Before I move on I would like to introduce members of my staff who have accompanying me today to my right is Gary Mackler who is the Housing and Community Development Coordinator. Next to him is Sandy Kaauwai who is the program manager for the section 8 housing choice voucher program. In the back I have Fay Kimura who is part of my accounting staff and her boss Avis Hirahara, Accountant and we have Keri Villa who is the Block Grant Coordinator and she spoke a couple days ago at that meeting for the Resolution for the Block Grant and the home program. What we will be doing today is a PowerPoint presentation relative to our budget message and thereafter we will be going through the individual budget sheets for the nine different programs which we administer. With that I would like to start off with our PowerPoint presentation which is part of our budget message. Chair Furfaro: I am going to be off on the side because I am under the screen and do make your whole presentation then we will circulate around the table with each Councilmember having an opportunity to ask two questions and then we will move around. Mr. Jimenez: After the budget message? Chair Furfaro: After your budget message. Mr. Jimenez: First, I would like to start off with the organization and functions of the County Housing Agency. The County Housing Agency is comprised of two divisions. One is the rental assistance division and the other one is the housing and community development division. We also have a administrative section which deals with the fiscal accounting which involves myself and the Executive Assistant. One of the rental assistant division is responsible primarily to administer the HUD section 8 housing choice voucher program which has been known in the past as the rent subsidy program. They service the extremely low and very low income households to obtain help to pay their rent. As we have talked to you p p Y y in the past the extremely low is thirty percent of the medium income for the island of Kaua`i and the very low is a fifty percent, so they are serving both the fifty — primarily the fifty and the thirty percent of median income. Also under the rental assistance division, there is the Family Self Sufficiency Program and I wanted to thank Council for passing and approving the grant application which was made under the FSS program to hire the two staff. Under the program section 8 clients are counseled to help them become independent from government assistance. The primary goal for the program is to get them off of section 8 roles and into permanent housing. Under section 8 homeownership program, the section 8 participants may use their rental assistance towards mortgage assistance provided they qualify for homeownership. They would have to go through the homeownership class and be credit worthy to purchase a home. The second major division is the Housing Agency is a Housing and Community Development Division. Under this division they are task with the responsibility of administering the Community Development Block Grant Program (CDBG) and the HOME investment partnership program. They are also involved with the Residential Rehabilitation Loan program, the Neighborhood Stabilization Program, which started off as buying foreclosed properties a couple years ago. We also have a section dealing with Fair Housing workshops and training and as you maybe aware this month besides being the National Community Development Block Grant Month, it is also fair housing month. Next Friday, we will be holding a seminar from 8-12 at the Piikoi Conference Room and we will be have instructors from HUD and also from the Legal Aid Society in giving updates on the new fair housing laws. Under the Housing and Community April 17, 2012 Housing p.2 Development Division, you have also the Kalepa Village and Paanau Village management services contract and asset management, this is one of our primary functions in managing our rental projects. Also in the HC&D division we have development of affordable housing with government resources, planning for affordable housing with private developers and also to monitor restrictions on affordable housing projects. The Housing and Community Development Division provide research and community education regarding housing needs and solutions. The mission statement for the agency is to provide greater opportunities for Kaua`i's citizens to choose and secure affordable, safe, decent and sanitary housing and to live and work in neighborhoods and communities that can accommodate the needs and desires of all households and individuals. As part of our agency goals, the first goal is to preserve, maintain, and increase the availability of affordable and special needs housing. Secondly, meeting the economic and social needs for Kaua`i's communities through Housing Agency sponsored programs and partnerships with private organizations, and local, State, Federal governments. The objectives under the rental housing division is number one to preserve rent subsidies and assistance for approximately 700 extremely low and very low income families participating in the Section 8 Housing Choice Voucher Program. Number two, to administer the timely disbursement of rental assistance payments to public and private landlords participating in the Program at current federal funding levels ranging from $5.0 million to $6.0 million annually, we have been averaging half a million dollars in rental payments to landlords per month. Another objective is to encourage self sufficiency of participants and assist in the expansion of family opportunities which address education, socioeconomic, recreational, and other human services needs through the Family Self Sufficiency Program. I just wanted to also thank the Council for approving our request to you to apply for the annual funding to hire our two staff under the Family Self Sufficiency Program and this was done last month. We are attempting and are continuing to maintain a high level of standards and professionalism in our day to day management of all program components. Thirdly, is to administer efficiently through continuous improvements of the electronic support systems. The objectives now for the Housing and Community Development Division the first one is to invest Community Development Block Grant Program funds in accordance with the strategic priorities of the County's Consolidated Plan (2010-2015) for housing, homeless, and community development needs to assist Kauai low and moderate income population. Another objective is to invest Community Development Block Grant Program funds within the fifteen percent services cap to assist private organizations in providing services for substance abuse, mental health, employment training, and childcare, for target populations involving youth, adults, seniors, and people with disabilities. Another objective for the Housing and Community Development Division is to invest HOME Investment Partnership Program funds in accordance with the strategic priorities of the County's Consolidated Plan (2010-2015) to increase the supply of rental housing for extremely low, very low and low income families and seniors, and to give homeownership opportunities to first time low income homebuyers. Another objective is to invest HOME Investment Partnership Program set aside funds to assist Kaua`i Community Housing Development Organization to increase the supply of rental housing to support homeless individuals and families preparing for transition into permanent housing. Another objective of the Housing and Community Development Division is to increase homeownership opportunities for low income households through the County's Home Buyer Loan Program, Rent to Own program and homeownership education and counseling services. Another objective is to increase the availability of affordable housing inventory for participants on the County's Homebuyer List by acquiring properties through buybacks, Neighborhood Stabilization Program, Home Purchas Program, and private development of affordable for sale units. Continuing with the objectives for the Housing and Community Development Division is to continue staffing a April 17, 2012 Housing p.3 fair housing advocate to provide fair housing education and training workshops for tenants and landlords, to conduct fair housing briefing for those receiving Section 8 vouchers, offer fair housing dispute resolution assistance to tenants and landlords island wide and to advocacy for the underserved — disabled, in need of affordable housing. Continuing on the objectives, is to manage County owned rental assets — Kalepa Village and Paanau Village through the annual update of Reserve Replacement budgets, and the replacement of major building components nearing the end of their life expectancy. Acquire vacant land in close proximity to infrastructure for the purpose of developing future affordable housing through public-private partnerships. Monitoring housing agency administered federal grants and affordable housing projects for wage rate compliance and/or income eligibility compliance. Success and achievements, let us start with the Rental Housing Division or the Section 8 Program. In the last audit cycle we received no findings the single audit for the County of Kaua`i. We were able to bring on eighty new participants and hopes to bring on an additional 80-100 in the next few months. We have been averaging about seven hundred ten participants right now under the program. We receive new software and new procedures that have allowed for staff to minimize the turnaround time for housing families from approximately sixty days to half of that to between thirty and forty days. Continuing on with success and achievements, we have worked very closely with HUD's Veterans Assisted Supportive Housing Program Coordinator and assisted 14 homeless veterans utilize their HUD VASH Vouchers to secure housing. We have assisted Family Self- Sufficiency 110 participants. Out of these participants, 61 families increased their incomes by an average of approximately $4,000 per year, 8 families transitioned into non-subsidized housing, and 4 families purchased homes utilizing the Section 8 Homeownership Program. We met HUD's 1.5 CDBG timeliness ratio by posting a ratio of .79, the lowest timeliness ratio recorded statewide by a CDBG grantee. We provided Kaua`i Habitat for Humanity $200,000 in CDBG funds to construct waterline improvements to complete the off site infrastructure requirements for the `Ele`ele Iluna Phase two subdivision for the build-out of 107 self help homes for families ranging from thirty percent and eighty percent of median income. We have disbursed $2.67 million in HOME funds to build Paanau Village Phase 2, a fifty unit affordable rental housing project in K51oa serving low income households below sixty percent of median income, scheduled for completion in May 2012. We received approval from Fannie Mae, USDA Rurual Development, and two private lenders to use the County's Ground Lease in the financing of home purchases with leasehold ownership. We proceeded to market the County's inventory of 12 residential properties to Homebuyer List participants and closed escrow on 7 leasehold sales, placed another 3 leasehold sales into escrow, and commenced the rehabilitation of 2 remaining homes for future sales. We have completed master planning phase for the County's Lima Ola 75 acre parcel in `Ele`ele with assistance of a Community Advisory Committee, public meeting attendees, and through consultations with the Mayor and cabinet, Councilmembers, County Departments, and State Departments. We obtained HUD's approval for the transfer of property ownership of the Waimea Dispensary facility to Easter Seals Hawaii and provided $250,000 in CDBG funds to make accessibility improvements for the facility's rehabilitation, slated for completion in August 2012. Lastly, we completed the Hawaii Housing Planning Study 2011 prepared by SMS Marketing and Research, who conducted a total Kaua`i sampling of 1,029 random telephone interviews over a six month period for the Kauai specific data collection and tabulations presented in the Kauai report. We did provide a status report and a summary of the study to the Council and there was some questions asked and we tried to answer the questions and we will be more than willing to come back at a later date to offer further information. Some of the challenges that we are encountering or anticipate to encounter is that the FY 2012 Congressional Budget signed into law represents significant decreases in funding levels for the CDBG and HOME programs. The FY 2012 budget includes a reduction of 11 percent in CDBG funding. In actual dollars, this will reduce the County's allocation from $740,145 to $709,480. For HOME, the budget includes a reduction of thirty-eight percent. For now, the HOME budget reduction does not impact the State's allocation, as the State of Hawaii receives the minimum April 17, 2012 Housing p.4 allocation of$3 million. For the Section 8 Housing Choice Voucher program, HUD has reduced the level of administrative fees paid through the program to public housing authorities from 83% to 75% of eligible fees earned. With this steep reduction in administration fees, the Housing Agency anticipates a $477,000 budget shortfall for its Rental Housing Division staff in the 2012-2013 operating budget. Our upcoming initiatives are to implementation of the 2012 CDBG Action Plan that funds five public services activities for substance abuse, homeless prevention, and youth — four housing activities and three public facilities activities for energy efficiency, ADA accessibility, and childcare. Implementation of the 2012 HOME Action Plan that funds three housing projects that offer first time homeownership opportunities to 54 families ranging from 30% to 80% of median income. Completion of Lima Ola site feasibility contract with consultant, R.M. Towill and the procurement of consultants for preparation of an Environmental Impact Statement and petition for State Land Use District boundary amendment. Utilization of Neighborhood Stabilization Program revolving funds to purchase more properties for leasehold ownership by Homebuyer List participants. Development of proposed Community Land Trust model for local government and private partnerships. Development of GIS layers and data management system to track affordable housing projects, housing stock and affordability requirements. Reroof of eight residential buildings at the Paanau Village Phase one project. I would like to turn your attention to the comparative graphs which we submitted. The graphs are pretty self explanatory, we have the allocation of the various funding, the breakdown on the various funding of which we administer. To the left you will see a total and in the next page, you will see our total budget but under the general fund you will see that it is primary salaries and benefits and for grants and other it is primarily program. If you look at the next page — the total funding received in FY 2012 was nineteen million, three hundred fifty-five thousand, three hundred and fifteen dollars, the program included constituted eighty-four percent where sixteen point two, six million and then Admin was sixteen percent. For the FY 2013, we were estimating total funding in the amount of nineteen million, nine hundred fifty-two thousand, two hundred and eighty and the programs and the breakdowns for Admin remains relatively the same. We are looking at almost the same amount of funds from the last fiscal year. The next graph just shows you generally what the funding sources has been in regards to the various programs. As you know we administer nine different programs through the Housing Agency and you see the various breakdowns for all of the different program relative to the percent of the budget that is utilized to run the agency. With that, that ends our slide presentation and the Chairman wanted for us to... may I just complete one more thing before we go into the actual budget, I wanted to talk about staffing and this is in regards to your memorandum which was submitted to us early in the budget process wanting to know about staffing. This was your request for information. If you look at page eleven of the handout and it is titled Council request for information. The first question posed by the Council was to have a list of new positions or changes to any positions indicating contractual or civil service, the salary and the division. I would like to state that the County Housing Agency right now consist of thirty staff, two have remained unfunded — dollar funded and they are... with the exception of the private security and myself all employees are contractual hires. They are under a one year contract and the contract begins April 1 and ends June 30. There has been one position out of the thirty that has been changed... it was a person in the Section 8 program which took the place of a retiree and he was moved from an SR 16 to an SR 18. Chair Furfaro: Excuse me, let me get some clarification. You made mentioned that the responses were on page eleven? Mr.Jimenez: Yes. April 17, 2012 Housing p.5 Chair Furfaro: Are the pages numbered? Mr.Jimenez: Yes. Chair Furfaro: I am still looking at the PowerPoint. In the future it would be nice to have some numbers there too. I am really impressed with having to sit over here and move all my paper every time somebody comes up. Thank you for numbering the pages, go right ahead. Mr. Jimenez: We are on page eleven and I mentioned there has been one position that has been reallocated from an SR 16 to an SR 18 from thirty-six thousand to thirty-eight thousand, nine hundred. Number two, was a list of current who anticipated vacant contractual positions. As I mentioned earlier, we have two positions which are dollar funded and which are located within the Section 8 program and the reason why we are not requesting... a couple years ago when we were going through the whole issue with furloughs and cutting budgets and everything, we opted not to fill these two positions. What we have done in house was to cross train some of the individuals. We anticipate that should this program expand that we will be needing this position, that is why they remain as the dollar funded area. We do not anticipate filling it for the 2013 FY. Number three is the list of contractual positions funded by State of Federal grants and the contract period. As I mentioned all contracts now run from July 1 to June 30 following the County's fiscal year. I have listed before you twenty-six positions with position number, the title of the position and the percentage that are funded by the various funding sources. There are twenty-six positions funded by Federal and/or non-County general fund sources. Chair Furfaro: And that was from the attachments that you made revisions on? Mr. Jimenez: Yes. Chair Furfaro: Thank you. Mr.Jimenez: If you look at page one of the handout, what you have here is a budget summary and this budget summary includes the nine funding sources for the County Housing Agency. It includes the percentage of funding each of the staff has and it... you have total and we will be going through each of the different funding sources. Ms.Yukimura: What are you referring to? Mr.Jimenez: Page one — it is the Housing Agency Operating Budget summary. Ms.Yukimura: Okay. Mr. Jimenez: This includes the thirty staff with the number, the position, the funding level and the percent of funding from the various sources. If you look further down, you have the total administration power, you have the total programs column for each of the program with a grand total and an estimate of what the full time employees are per the various funding sources. Chair Furfaro: And the grand total being 6697? Mr.Jimenez: That is strictly for the section 8 voucher program. The grand total is on the first column on the left— 1995220. April 17, 2012 Housing p.6 Ms. Nakamura: Thank you for this presentation. We have been through many departmental briefings and I think this is the first one where we are seeing the complete picture of all the different sources of funding that goes into the department and of that percentage being used by the General Fund. The budget that we get does not show that big picture. This is just a request to the Finance Department that this format is very useful and for those departments that rely on outside sources, this is a good model to use in the future I think. Mr. Jimenez: Thank you for your comments. Chair Furfaro: Let us do this one more time. How many positions actually show up in the General Fund operating? Mr. Jimenez: If you turn back to that page under the General Fund, we have five positions are being funded under the General Fund. Chair Furfaro: Three positions under the General Fund... Mr.Jimenez: There is five full time and some partial funded, like twenty- five percent, I stand corrected. Chair Furfaro: How many of those members are partially funded at twenty- five percent? Mr.Jimenez: There are four funded hundred percent. It comes out to seven point one four full time employees under the General Fund. Chair Furfaro: So we are going to use this term for everybody because this is how they have always done it, it is seven point one full time equivalence? Mr.Jimenez: Yes. Chair Furfaro: Is the term? Mr. Jimenez: Correct. Chair Furfaro: Okay. It is a very unique report from Housing because of the nine programs and all of the twenty-five or twenty-six grant funding mechanisms, it is different than any other piece we have but we should be talking in the terms of full time equivalence. Mr.Jimenez: And if you look at the last column on that summary page that shows the full time equivalent for all the programs, so to give you the indication as to what is the staffing... okay, if you look at page two which is the general fund budget what we have done was to go back three years, so to show what the trends are. Chair Furfaro: This is page two. Mr.Jimenez: Correct. Chair Furfaro: And for all the members, this is what we are looking at. Mr.Jimenez: We have included what was approved in FY 2011, what was approved in FY 2012 and what we are proposing for the next fiscal year 2013. You can see very April 17, 2012 Housing p.7 clearly the trends whether they have increased or went down, you can also see the increases in the various employee benefits to include social security, health fund retirement and worker's comp and the like which is included right below the salaries on the top portion. We also have the total employee benefits amount funded under the general fund and the other services listed for... and the other services listed thereafter. In regards to your questions relative to the funding for staff funding for Section 8 on page three, we have personnel description of all of the different funds and you can see on the left the percentages. The442849 which is the proposed under the general fund is the same thing as included in the summary page for the (inaudible). Chair Furfaro: Four hundred forty-two thousand, eight, forty-nine is the exposure that we are getting from the general fund? Mr. Jimenez: Correct. Under that we have also included the R&M for the Waimea Theatre which is the County of Kaua`i is doing. Chair Furfaro: Before we get to R&M, let us see if there are questions about staffing. Mr. Rapozo: I have a question. Your position 9536 the Assistant position, the salary dropped from seventy thousand to fifty-five, zero, nine. Is that accurate? Mr. Jimenez: What was the number? Mr. Rapozo: It is on page three. Mr.Jimenez: That position is the position of Imai Aiu, it is at seventy thousand but it is... if you look on the left hand side it is funded under the General Fund seventy- nine percent and twenty-one percent is funded from another source, that is what that means. Mr. Rapozo: Okay. Mr.Jimenez: So that is not a drop, it would still remain at seventy. If you look at the... Mr. Rapozo: Yes. Chair Furfaro: If everybody reads the heading on the upper left, these are the dollars that are coming out of the General Fund. So, it may not be the complete salary reflection but it is a reflection of how much of that salaries are coming out of the General Fund. Mr.Jimenez: The percentage, right. Mr. Rapozo: Okay, thank you. Mr. Kuali`i: If we are talking about positions, I just wanted to ask about those two positions that you talked about being vacant, the dollar funded positions, the 9451, the senior clerk according to Personnel effective vacancy date was 12-31-09 so that is a few years. But the Housing Assistant Specialist III 9539 is effective 6-30-11, so somebody retired then or grant funding ended then, what was the change then and going forward you are saying we opted not to fill because furloughs and funding issues. Mr. Jimenez: And budget constraints, now with the anticipated amounts we are getting from HUD that it is not... we are hopeful that it will change. Just for your information April 17, 2012 Housing p.8 this program has been running for thirty-eight years and this is one of the most I would say important and significant program from the Housing Urban Development followed by Block Grant which is thirty-four years in the running. Section 8 has been the longest running program Nationwide and so we feel that it is here to stay and I think that at a future date, there maybe increases for that. From my understanding that position, it was a retirement position. Chair Furfaro: She left at thirty-eight years. I just wanted to follow up, so was that the same person? Mr. Jimenez: No. Mr. Kuali`i: Lastly, the position that Councilmember Rapozo was asking about, on that page three on the far left corner when it says a hundred percent, does not that mean that the proposed salary in the budget is coming a hundred percent from the General Fund? Mr. Jimenez: No. It does not mean that. Each line item specifies the percentage. Mr. Kuali`i: So position number 9536? Mr. Jimenez: Seventy-nine percent from the General Fund and twenty... Mr. Kuali`i: Where does it show that? Mr. Jimenez: On the left hand column, page three. Chair Furfaro: It does not show that, that is what he is saying to you. Mr. Kuali`i: It says a hundred percent. Are you saying in the other spread sheet? Ms.Yukimura: You submitted a supplemental right to the one originally submitted because the one you already submitted had a hundred percent. Mr. Kuali`i: The one I am looking at says a hundred percent, on page three. Ms.Yukimura: And then we have one that says seventy-nine percent but that was your supplemental, you submitted after you made the March 15 submittal and you know in the future, Ernie and others, if you do a supplemental, put the date that you are actually supplying it rather than the original date of March 28 because then we are totally confused. You have two submittals dated March 28, one of which was submitted like a week ago but you do not have that date on it, so we are trying to figure out which one was the new one, which one is the old one. But they both say revisions. Mr. Kuali`i: I see it on page one. Mr.Jimenez: I apologize for that. As instructed we did some revisions and we just assumed that you had the most updated ones. Chair Furfaro: Do not assume. Mr. Jimenez: Yes. April 17, 2012 Housing p.9 Mr. Kuali`i: But on page one where it says the seventy-nine percent and the twenty-one percent, what again is HCDRF? Mr.Jimenez: Housing Community Development Revolving Fund. Mr. Rapozo: It is a follow up to those two dollar funded 9539 and 9541, where do they show up in the budget? Mr.Jimenez: Under the Section 8 program and under the summary page. Mr. Rapozo: In the budget itself? Mr.Jimenez: Yes. Mr. Rapozo: You have the page because these numbers are small. Mr. Jimenez: Mel, it is not included in the AS400 printout but this printout. Mr. Rapozo: Okay. Mr. Jimenez: Under the section 8 program and under the budget summary that first page,page number one you can find there are the two dollar funded positions. Mr. Rapozo: I am trying to find it in here and even the dollar funded positions typically show up on these budgets, so I am trying to find out if those positions are even there because it is not on the budget. Mr.Jimenez: Neither is Section 8. Mr. Rapozo: Is it completely grant funded positions? Mr.Jimenez: No, it is... the federal funded programs are not included in the AS400. Mr. Rapozo: Right. Mr.Jimenez: And that is why we submit this, so you get the complete full picture. Mr. Rapozo: So those two positions are completely funded by federal money, no County money? Mr.Jimenez: You mean the dollar funded ones. Mr. Rapozo: Well if it is dollar funded, the dollar comes from the County. Mr.Jimenez: Yes. Mr. Rapozo: So, it needs to be in some form here. If it is a grant funded position and we do not pay, then it does not show up but if it is a dollar funded position, the position number should show up on the budget, so I just want to be sure that those positions are there. This is what happens and I am sure you know this, we dollar fund a lot of positions and then throughout April 17, 2012 Housing p.10 the year, somebody needs a contract so they grab a dollar funded employee position number and they create a contract with that number. That is why I want to make sure those positions and maybe you do not even know it was removed because I do not see it and if is dollar funded, it should be on this form. I guess we will send something over to Personnel because that is my concern, we have so many of these dollar funded positions that can be manipulated throughout the year. Mr.Jimenez: These positions have been there two or three years. Mr. Rapozo: Well it is not here, I am telling you, what is on the budget, it is not here. Chair Furfaro: He is telling you that it has done a Houdini. Mr. Rapozo: That is the concern. If it is dollar funded, the dollar got to come from the County. Mr. Jimenez: Yes, it is dollar funded under the Section 8 program, not from the County money and that is why it is not in the AS400. Mr. Rapozo: How many of those? Mr.Jimenez: There are two. Mr. Rapozo: Only that two from your Department? Mr. Jimenez: Only that two dollar funded by the Section 8 program. Chair Furfaro: Then that is what you should tell us from the beginning because we have many dollar funded positions coming out of the General Fund which is where Mr. Rapozo's question is coming from. So, it is dollar funded in the Section 8? Mr. Kuali`i: Even still, where are we going to see that? Are you going to present that to us separately—the Section 8 program? Mr. Jimenez: This constitutes the budget for the Section 8 program, the line item here. Mr. Kuali`i: Page three. Mr. Jimenez: No, it says at the end of the presentation and there is a... Mr. Kuali`i: So, later we are going to see those positions under Section 8? Mr. Jimenez: Correct, dollar funded. Ms.Yukimura: What page? Mr. Jimenez: Eighteen and nineteen. Chair Furfaro: Make sure we all know, it is in the book revised April 13, page 3. Mr. Kuali`i: The book, what is the book? April 17, 2012 Housing p.11 Chair Furfaro: This amendment that they just sent over — April 13. Reflecting only the Housing Agency's revisions. Mr. Kuali`i: If we were looking at the first column, the last column is Section 8 right? Mr. Jimenez: Yes and the last line item budget is Section 8. Mr. Kuali`i: So where on page eighteen are those positions? Mr. Jimenez: If you look on the first column, dollar funded, dollar funded, there are two. Right in the middle of the page. Mr. Kuali`i: You just do not have position numbers here but the Housing Assistant Specialist III and the Senior Clerk 10? Mr.Jimenez: Correct. Mr. Kuali`i: Okay, so they are there. There being no objections, the Council recessed at 3:01 p.m. The Council reconvened at 3:23 p.m., and proceeded as follows: Chair Furfaro: Let me indicate to you folks that we are open for general questions now after the presentation and I think you had the first one, Mr. Bynum. Mr. Bynum: Thank you very much for this presentation, I want to echo Councilmember Nakamura's comments about the presentation format that you have used for a number of years and just let her know that we all have suggested that to all of the department's that have other grant funding to adopt your format in the past because it is real understandable. It is almost essential for your program where the vast majority of it is funding by the Federal government and then I wanted to say, Sandi, no findings in the single point, congratulations that is an accomplishment for such a complex and complicated program. I received the memo today that I had made request about the Section 8 program and so I am going to ask just a couple of questions because your memo answers my questions pretty thoroughly, well in a short version and my read is you could use HOME funds but it would not be sustainable. But it looks from what you have presented and I also got an explanation about the high eligible numbers because of Iniki and when I look closer to that chart, it did not make sense because Maui had similar numbers and you would have expect with just the size they have more dollar funding. Also, we are all concerned in County government cuts and about housing and transportation and other things that County's rely on. It looks like we are getting the CDBG cuts but the HOME cuts which are substantial, we are shielded for a while because of the small state minimum and do you know how close we... there is some kind of... if the cuts come down a certain point, the minimum, the other states are going to look at it, do you have any sense from the Feds of how close we are to that line? GARY MACKLER: Good afternoon, Councilmembers. No, we do not. We have not told by the Community Planning Director of Honolulu, the field office there is that even though the State of Hawaii receives an allocation of HOME funds —three million dollars, it does not mean that it can not be cut. They did not indicate if and when it might occur but they said do not think that you are safe because it is the minimum allocation. April 17, 2012 Housing p.12 Mr. Bynum: Is our congressional delegation aware of how critical that minimum funding is for the State and I assume they do. Mr. Mackler: The do. Mr. Bynum: And in staying on Section 8 it looks like on what you presented, you have to... because the allocation is based on previous years, expenditures, so it really is a strong incentive to expend as much appropriation as possible because it could lead down, right? And it looks like you done a good job at getting it out and did I read correctly that seventy-five percent of those funds have to go to thirty and below? SANDY KAAUWAI: That is correct. Mr. Bynum: So that is a real challenge. Ms. Kaauwai: That is a challenge. Mr. Bynum: To indentify the housing and indentify the recipients who can kind of logistically get it together. My last question on Section 8, you have a program to help Section 8 people hopefully move into homeownership? Ms. Kaauwai: Yes. The Section 8 Homeownership Program. It kind of dovetails off of the FSS Program where they go through the FSS Program to work on their self sufficiency and part of that program is... Mr. Bynum: FSS means? Ms. Kaauwai: Family Self Sufficiency Program and part of that program if they so choose, they can turn their rental voucher to a homeownership voucher which would essentially pay a mortgage as opposed to rental assistance., Mr. Bynum: I think that is a really cool program and I think you have two people working on that program? Ms. Kaauwai: Yes, two people. Mr. Bynum: What are their names? Ms. Kaauwai: Melissa Jackson and Kathy Kato and we have had I believe at least sixteen homeownership vouchers or people transition into homeownership, not necessarily using their homeownership vouchers, some of them just transitioned off the program and into homeownership. Mr. Bynum: I am very impressed as I have been all along with the Housing Agency. Whenever I ask a question, I get a quick and understandable answer and so thank you very much for the good work. Chair Furfaro: Again, maybe I would like to extend also our appreciation for the improvements overall in the practices of reporting the federal government, extremely important to us. I just have one question and it is in round numbers for you folks, on this nineteen million that we have as income for Housing, your chart says less money's we take out for administrative cost. On your graph we have programs totaling sixteen million, two, sixty-eight, seven, seven, nine that leave eighty-four percent of the nineteen million after we take out for the Administration and your April 17, 2012 Housing p.13 narrative says forty percent of that is for Section 8? So does that mean our Section 8 supplements a round about six point seven million dollars? Is that a correct evaluation for me? Ms. Kaauwai: Yes, that is about right. Chair Furfaro: That is about right, okay. That is all I needed to know right now. Mr. Chang: Can you explain what HUD actually is and I want to explain because in 2008 I remember in October there was about a ninety to a hundred for rents in the Garden Island Newspaper and just randomly I do not know what it was with renters but it said "no HUD" very soon thereafter, by December or January there might have been the same amount of rentals with just about only four"no HUD"because I think renters realized that this was guaranteed money, this was money that they could use. What is HUD and what did we do to educate the renters that by holding a HUD voucher, it does not mean that you are bad... what did we do to educate the renters that the HUD program is a good thing? Ms. Kaauwai: I guess it starts off with our family briefing and issue the g Y g voucher itself, we have cleaned up our family briefing. We have created a family handbook that I think I call it our Section 8 bible and it explains the program to them I think in a manner that is a little bit layman's terms so they understand the nuances of what the requirements are for them. We also have our Fair Housing Officer that goes in and does how to be a good renter, what they should and should not do. The other thing we created was a manual that we give to each landlord that explains the program. We are not property managers which a lot of them assume that we were at first. Basically, we just provide a subsidy on behalf of an eligible participant. Once we explain to them that the Section 8 tenant is the same as any other tenant, you still have to do your homework for your rentals, you would need to qualify them like you would any other perspective tenant. I think once they realize that and once we had that in place, I think that helped a lot. Mr. Chang: And there is a huge noticeable difference from before because I do not think the renter understood what it meant, they just put it down because they would just see it in everybody else's application if you will and then when they started to learn the program because it seemed like it went a long way in a short period of time. Ms. Kaauwai: In the past I think the rules were not... in the recent years we actually have tightened up the administrative rules so that we do have... if you do not doing what you are supposed to be doing — trashing units or whatever then we tell them, you cannot do that because it reflects on the whole program not just you. I think that helps a lot. Chair Furfaro: This pamphlet that you have, does it cover all the programs like... not just rent but rent to own? Ms. Kaauwai: It does not. It is specific to Section 8. Chair Furfaro: Are those different applications? Ms. Kaauwai: Yes. Chair Furfaro: Could you send over to me an assortment of these applications and one of those pamphlets? Ms. Kaauwai: Sure. April 17, 2012 Housing p.14 Chair Furfaro: And I would circulate them amongst the members. Ms.Yukimura: First of all, congratulations, I really like your objective in Rental Housing Division—obtain and maintain a high level of standards and professionalism in day to day management of all program components. I love that you have a high standard to set to strive for and with respect to Housing and community development, congratulations on achieving the Fannie Mae financing for the ground lease, oh wait...yes, for your ground lease. That is a big accomplishment and shows that Fannie Mae has a lot of faith in our Housing projects. On page three where you talk about managing County owned rental assistance, rental assets, congratulations on that too because I think as Eugene has mentioned our Housing rental projects are getting a really good reputation for how they look, how they managed and people who live in them are very proud to live there. My question is can we get a list on all the County owned rental assets or is it only Kalepa Village and Paanau? Mr. Mackler: Those are the only two rental projects that are owned by the County but we do have a comprehensive list of all the rental projects on the island that served the low income population. Ms. Yukimura: I would like to see that. Mr. Mackler: I would be happy to send it to you. Ms.Yukimura: We would like to get that, so that the Lihu`e Theatre project, is that under KHDC management? Mr. Mackler: It is. They actually contracted contract management for the Lihu`e Theatre and also for Hale kupuna project in Kalaheo, they are utilizing Hawai`i affordable properties for the management. Ms.Yukimura: It would be very helpful to see the inventory of affordable rentals. Can you explain the Housing Community Development Revolving fund, where those money's come from? Mr. Mackler: The Housing Community Development Revolving fund revenues it comes to us principally from program income. Program income that is generated by the past use of our disaster allocation of home investment partnership program funds. Ms. Yukimura: That was the forty million dollars that we got after the hurricane. Mr. Mackler: That was the very one, yes and part of that. Ms.Yukimura: That is why I should know this. Mr. Mackler: Part of that disaster allocation was loaned and the repayment of loans (inaudible) a revenue stream for the housing and community development fund. Ms.Yukimura: And that is a total of... in this years budget, one point nine million? Mr. Mackler: Yes, there is a carryover, a fund balance of one point six three, three million and there is an anticipated revenue stream in the next fiscal year of three hundred and eighty-three thousand dollars. April 17, 2012 Housing p.15 Ms.Yukimura: Okay, so that is a total of one point nine? Mr. Mackler: Correct. Ms.Yukimura: And of that one point nine, we are using half a million for salaries, right? Mr. Mackler: Yes. Ms.Yukimura: Is this a normal percentage or are we using more this year than usual? Mr. Mackler: We are using more this year and the reason for that is because due in large part to the fact that we had a presented a decrease in the Section 8 Administrative funds that we receive of approximately four hundred seventy- seven thousand dollars. What we did this year was we offset that decrease in revenue by using funds from the Housing and Community Development revolving fund. We took funding from... on page five of this budget, we took funding from the... the line item which is shown as Homebuyer Loan program. Ms. Yukimura: Are you referring to the line item budget that comes from Finance or supplemental handout that you have given us? Mr. Mackler: The supplemental handout and it would be on page five, about the middle of the page there is a line item there for a home buyer loan program, we were able to move funds from that line item to help offset the revenue loss from the Section 8 program. We were also able to supplement that loss for the homebuyer loan program through the Community Development Block Grant and HOME investment partnership action plans that were before you last week. Where we are providing six hundred thousand dollars of HOME buyer loan assistance to fund our program and so we were able to do that this year or for the upcoming year but I do not think that is something that we will be able to sustain in the year beyond. Chair Furfaro: Gary, how much was it again? Mr. Mackler: We anticipate a shortfall for Section 8, it was four hundred seventy-seven thousand dollars and so we moved that amount over to pay out of the Housing Community and Development revolving fund. We took it from the line item that is shown for HOME buyer loan program and as I mentioned we were able to do that because we were bringing in additional federal funding through CDBG and HOME to continue to fund HOME buy loans. Chair Furfaro: I want to make sure happen. Mr. Mackler: Yes. Chair Furfaro: That it was a replenishment of a homeowner purchase funds. Mr. Mackler: But that really is not something we view as sustainable in future years. Ms.Yukimura: The revolving fund has served us well but if we put it all to operating cost, we will not be able to do the kind of work we have been doing with it in the past. Mr. Mackler: Yes. April 17, 2012 Housing p.16 Ms.Yukimura: And so I think we need a strategy in the long term, okay and then so the remaining eight hundred thousand is for programming? Mr. Mackler: Correct. Ms.Yukimura: You are showing that for this year's budget and this is my last question, how are you spending the eight hundred thousand? Mr. Mackler: We are again referring to the same page, page five at the bottom of that page there are several line items that we are putting program funding. The first line item is we refer to as the EA, that is for an Environmental Assessment and Project Feasibility and we want to keep funds on that line item should we have an opportunity to acquire land, we want to be able to have some resources available to study the site if necessary and to move forward with appraisals and phase one environmental site assessments and those kinds of things that we have to do for our due diligence. So we do identify some money there. The second line item is referenced as the `Ele`ele Lima Ola line item and it is shown as offsite infrastructure, we are looking mainly at trying to fund some of the future offsite infrastructure cost for future development of the seventy-five acre parcel. The third line item also referenced for Lima Ola and this is for... it says EIS consultant, that is for an environmental impact statement. We are looking at the next step of cost for this project as the environmental impact statement that is a cost that we want to do prior to or concur with the General Plan update because our intentions is to seek amendments to the General Plan designation from agriculture to urban through the upcoming General Plan update. We will also need an environmental impact statement at the time should we go to the Land Use Commission for petition of reclassification of lands so it is an essential study that needs to be done for us to advance this project through the entitlement process. Ms.Yukimura: Okay... Chair Furfaro: JoAnn, you did say that that was your last question. I would suggest that if you want to pursue... Ms.Yukimura: All I was going to say Chair was I have other questions but I will defer for now. Chair Furfaro: And I want to say if you have questions about performance strategies and so forth that can be put in your Housing Committee, I would prefer we put an agenda item on. Mr. Kuali`i: I wanted to ask about the two housing projects, how many units are there in Kalepa and how many of those were the original groups and how man y wa s added on and when was that added? Mr. Mackler: Let me just give you a quick history of Kalepa Village. The site was acquired in 1994 and the site work was completed in 1996 and the first building phase was completed in 1997 and consisted of sixty units. We subsequently subdivided the property to help facilitate financing for future phases and the remainder of the property which is a hundred and twenty units were built out in three phases. Phase two and phase three were built out with financing from the HOME program and from low income housing tax credit equity. Phase four, the final phase, was actually built out and developed by the County by our agency with HOME funds, with some of the reserved HOME funds that I described for you last week, with home disaster program income, so we actually completed a hundred and eighty units on that site. Mr. Kuali`i: You said phase two, three and four. April 17, 2012 Housing p.17 Mr. Mackler: Yes. Mr. Kuali`i: The original was sixty units and how much was added each phase? Mr. Mackler: The cost? Mr. Kuali`i: No, the units. Mr. Mackler: Well it was sixty for the first phase and then each of the following three phases were forty unit phases. Mr. Kuali`i: When was the last phase completed? Mr. Mackler: 2008. Mr. Kuali`i: What about Paanau as far as total units? Mr. Mackler: Total units there are sixty units in phase one and that property open its doors in early 1994. Mr. Kuali`i: And now phase two is underway? Mr. Mackler: Phase two is nearly completion actually, end of May early June and that will be a fifty unit project. That one was developed by HOME funds and low income housing tax credit equity. Mr. Kuali`i: Is there a phase three? Mr. Mackler: Not to my knowledge, it would be great... Mr. Kuali`i: So it is a hundred and ten total units. Mr. Mackler: And next door to Paanau phase one is State housing which holds fifty one units. Mr. Kuali`i: When I look at this consultant services, so that is where the management function is? Mr. Mackler: It is. It is actually there is budget pages in our supplemental budget for both the Kalepa Village and the Paanau Village project. Mr. Kuali`i: So when the additional units come on line for Paanau, it will be in this new Fiscal year? Mr. Mackler: No actually it will not. If you look at Kalepa Village for example, we show it as Kalepa Village phase one and Kalepa Village phase four. The County owns the entire property but it financed the development of the sixty units of phase one and the forty units of phase four. The two phases in between are projects where we provided a long term ground lease to the tax credit limited partnership who brought the tax credit equity and developed each of those phases. April 17, 2012 Housing p.18 Mr. Kuali`i: To the same provider or same entity? Mr. Mackler: Yes, both were developed through the Kaua`i Housing Development Corporation a locally based non-profit housing development. Mr. Kuali`i: Is the similar thing happening with Paanau? Mr. Mackler: For phase two, it is. Mr. Kuali`i: So the first phase is County and then the second phase is KHDC? Mr. Mackler: That is correct. Mr. Kuali`i: The County's responsibility as far as management is what is showing up in the budget? Mr. Mackler: It is. Mr. Kuali`i: And then the phases that is not the County's — KHDC will have the management responsibility? Mr. Mackler: The KHDC acts as the general partner for the tax credit limited partnership and as the general partner, their responsibility is to provide for the operations of the phases at Kalepa Village and will be with the second phase of Paanau. Mr. Kuali`i: Is there any thought to changing direction because as far as the County managing some the KHDC is managing some... in the long run depending on how much each site has is it sort of a duplication of onsite management offices? Mr. Mackler: The only place that would be clumsy really is at Kalepa Village because we have one project site and two phases which they control and two phases which we control. Right now, we have the same company doing all four phases there and we also through the terms of the grounds lease, will have the opportunity at Kalepa Village to take back the improvements of phase two and phase three at the fifteenth year of the ground lease when the tax credit limited partnership dissolves. We hope to consolidate at least at Kalepa Village all four phases when the opportunities are available for us. Mr. Kuali`i: On the rents and concessions, that is the rent collected under revenue line item for Kalepa Housing and Paanau Housing? Kalepa Housing went from nine hundred and seventy-nine thousand last year to a million, so it went up pretty good and then Paanau went from four hundred ninety-nine thousand down to four hundred and ninety-six. What is the different factors that work in both places, occupancy... Mr. Mackler: (inaudible) actually the in looking at the total revenue for Kalepa Village, is that the one? Mr. Kuali`i: Yes. In the budget, the first two pages has all the different funds and there is a line item called revenues from property rents and concessions and in Kalepa Housing for this next fiscal years one million four hundred fifty-eight dollars and Paanau is four hundred and ninety-six thousand, three hundred and fifty. April 17, 2012 Housing p.19 Mr. Mackler: I do not think I have that, is that from the AS4000 because I do not have that. Mr. Kuali`i: I will submit that as a question and you can get back to me. Mr. Mackler: I can tell you in our supplemental budget that we provide it, we do have budget pages there for Kalepa Village and also Paanau Village. If you refer to those pages you will see that our effected gross rent income is essentially the same or is unchanged from the current year to next year. We do program a vacancy loss of three percent which is about how we track out there, we are almost full all the time. Mr. Kuali`i: This was separate reports from you guys or the... not this, not the budget stuff. Mr. Mackler: The one I am referring to would be on one of our supplemental budget pages. Mr. Kuali`i: What page? Mr. Jimenez: Page six. Mr. Kuali`i: When administration resubmits May 8th you will give them better figures because your figures are different from theirs? Mr. Mackler: (inaudible) look at that and see how that needs to be reconciled. Chair Furfaro: I take it we will see about eighty thousand dollars in revenue corrections on the new submittal and let us see if we have any other questions from other Councilmembers. Ms. Nakamura: Page fourteen of the budget worksheet dealing with Special Projects there is one point five million here in... is this your buyback account? Mr. Mackler: I do not have those pages to refer to? You are looking at the AS400? Ms. Nakamura: I guess the question I had was over the past few years, how much have we actually spent on buybacks? Mr. Mackler: I have to throw a number out... Ms. Nakamura: Maybe I will write it up as a question. Mr. Mackler: We can collect that information for you. Ms. Nakamura: I just wanted to find out if the one point five million in the budget is adequate? So, we will write that up as a question. On the Ele`ele Project, there is seven hundred thirty-four thousand in the budget for offsite infrastructure and EA and project feasibility and then EIS consultant and LUC consultant that totals seven hundred thirty-four thousand, five, forty-six, so my question is do you anticipate expending all of these funds over the next year and contracting with all four consultants in one year? April 17, 2012 Housing p.20 Mr. Mackler: Thank you for the question, no, we do not. . Ms. Nakamura: Okay. Mr. Mackler: What I hope to do in the upcoming fiscal year and hopefully with this Council's authorization is to allow us to proceed to procure the consultant for the environmental impact statement, that is really our next step in terms of committing funds. We are still planning to come before you in late August once the site feasibility is complete by RM Towel there are still studies relating to this site that are in progress and working through. We did transmit over in late March the master plan that was prepared by the sub-consultant Kimura International and we will have them here hopefully in late August to make a presentation for you but in this current budget year we know there is some funding that is still available through the Bond Fund it is approximately two hundred seventy-three thousand dollars which were held in contingency pending our return to the Council to represent the project. We hope to in August to do that and ask then for your consideration to release those funds so we may move forward with the environmental impact statement. Ms. Nakamura: That is the CIP bond funds? Mr. Mackler: Yes. Ms. Nakamura: And then you have the hundred, one thousand here. Mr. Mackler: I am showing some money in the Housing and Community Development Revolving Fund, we have talked to a number of consultants about what the cost might be for an environmental impact statement. The spreads really varies and depends on how many sub- studies you have to complete. So, we do not have an actual number, we just have ballparks estimates. I do want to in addition to the bond money that I mentioned, the two hundred seventy- three thousand dollars approximately still identify some additional funds in the Housing Community Development Revolving Fund Budget for the possibility of using the environmental impact statement if it is needed. Ms. Nakamura: Okay. Is there a performer for the project? Mr. Mackler: Not at this time. One of the studies that is ongoing for the site feasibility is cost estimating and that is information that will be conveyed and presented to the Council hopefully in late August. Ms. Nakamura: Those are my two questions for now. Chair Furfaro: In the next several months, can you develop some fact sheets on the two projects Kalepa and Paanau? Anything that describes the units, the market we are serving and so forth, so we have a consistent piece and that we have a brochure that is available for new Commissioner's that might come on in Planning, things of that nature, I would like to have... I think Vice Chair Yukimura said it best when there are a lot of people that say they are very happy to be in County housing projects, the reputation is good, the units are... that are coming on line Kalepa and Paanau are new, good facilities... washer, dryer, and so forth... it would be good to have fact sheets for an ongoing process as we add another phase, who did we target, how many units, how are they using the tax credits to fund them? It would be nice to have a couple fact sheets. I may might that long term request to Housing? Mr. Mackler: We will take care of it. April 17, 2012 Housing p.21 Mr.Yukimura: On this Lima Ola project in `Ele`ele, do you have a projected total cost? Mr. Mackler: No. That is preliminary to give you a number because that is one of the task that is before the consultant that we are contracted with, R (inaudible) Towell, they are working on at the present time. That is information that will be shared with the Council when they complete their preliminary cost estimating. Ms.Yukimura: Will this include sources of money to build this project? Mr. Mackler: No it will not. Not at this time. When we first embarked on looking for land to acquire and this was according to a Council resolution that was passed in 2004 at a time when Kaua`i was starting to undergo a real crisis with affordable housing. Some potential funding mechanism or financing mechanism were indicated in the resolution such as tax exempt bonds, revenue bonds, State funding, Federal funding, USDA, RCAC, private lenders, it is really preliminary to know all of the financing mechanisms that would be needed at this point. We are looking at a very long term development for this site, so it is really premature try to lock in any type of financing. Ms.Yukimura: Why would you spend money on an EIS and offsite infrastructure unless you are sure you know this can be a feasible and successful project? Mr. Mackler: Well we are very optimistic that even the site itself and the high degree of its development potential given the very low cost for the land acquisition which given the propose density, this parcel is about sixty-two hundred dollars per unit and the fact that it is very close to existing infrastructure, we are looking very favorably on the development potential of this property. We are not yet spending environmental impact statement money but we are proposing to hopefully proceed in that direction and take that step in the next budget year. Ms.Yukimura: Do you have a strategic plan for the Housing Department that shows that this is the place where housing is needed and where this would be the most leverage use of our limited housing resources? Mr. Mackler: What we know is that this project is situated in`Ele`ele, it is a site that can serve potentially a very large amount of this island, a large swath of the employment from Po`ipu to PMRF. We also have a site that is gently sloping, it is under five percent from the highest elevation to the lowest elevation... Ms.Yukimura: Gary, I know that it is true but I am talking about... what if you had properties to develop in Po`ipu that would provide for the Po`ipu employees, that could be built faster and cheaper. Have you done that analysis? Because otherwise it is a commuter site. Have you done this analysis that really shows you? Otherwise this project will draw a lot of the housing money like H3 did for highways and without you being really clear about where the needs are and where the best sites and the easiest to develop sites are, have you done the analysis? Mr. Mackler: Councilmember, the resolution that was previously passed by the Council in partnership with the Administration was to acquire land and to bank it if necessary. The County owns this site, we hold fee simple title... Ms.Yukimura: But you are not answering my question. April 17, 2012 Housing p.22 Mr. Mackler: Because it is not something... if you understand the random nature of having opportunities to acquire land on this island... Ms.Yukimura: But we have... Chair Furfaro: Okay, I am going to intercede here. Mr. Mackler: Thank you. Chair Furfaro: If you want this item to be in your Housing Committee, I would be more than glad to entertain it. Ms.Yukimura: Mr. Chair. Chair Furfaro: If you want to... we owned the land as explained... they have studies to be done and I am not prepared to get feedback from you of why it needs to be discussed now. The fact of the matter, this is a budget discussion. I think your points should be made in your own Committee. Ms.Yukimura: Mr. Chair, I am asking about these budget items and I am also asking... Chair Furfaro: I did not hear that. JoAnn, what I heard was this feasibility about travel and the density is too far from Po`ipu and those are discussion items for your Committee. Ms.Yukimura: Mr. Chair, I am asking about why would we spend money on an EIS project before we actually show that this would be... this project is the best project to do right now. Chair Furfaro: Fine, we can limit it to that question. Can you please answer Vice Chair? Mr. Mackler: Well first of all, we have not yet spend any money for a environmental impact statement. Ms.Yukimura: But you are proposing to spend it in this budget? Mr. Mackler: Yes we are. What I would ask this Council to do is listen to the presentation and receive the information from our consultant in August and if at that time you do not feel it is prudent to proceed to spending the money on an environmental statement, we can have that conversation. Ms.Yukimura: I have a follow up question but if Mr. Rapozo wants to ask a question first, that is fine. Chair Furfaro: I want to clarify that answer. The consultant will be here in August? Mr. Mackler: Yes. Chair Furfaro: And he will be making a presentation and we can digest that question then? April 17, 2012 Housing p.23 Mr. Mackler: Yes. Mr. Rapozo: Didn't the Administration make a presentation to this Council at one point regarding that parcel with various options as far as traffic, over passes and so forth... didn't we have a discussion? Mr. Mackler: Your memory is still there. We actually met with Councilmembers individually. The consultant came over and you may not have a direct face to face meeting. I know there was one done through a teleconference but it did... those meetings were held with members of the Council to present different alternatives that were designs by Kimura International. Mr. Rapozo: Right and this Council supported the purchase of that parcel. Mr. Mackler: Yes it did. We would not have brought without your appropriation. Mr. Rapozo: Exactly for the one reason... wasn't to build a amusement park or... it was to build affordable housing. This Council supported that idea. Mr. Mackler: Correct. Mr. Rapozo: So, I just wanted to make that point because I can appreciate Councilmember Yukimura's concerns but we are a little late for that. We bought the land and I just want to move on. Ms.Yukimura: If we have this in August, I will still ask you the question, has this project been selected out of a strategic planning process that has looked at all our needs and identified what are the best ways to meet those needs given the limited resources we have? The reason I am asking this is because I am interested in funding a strategic planning process by the Housing Department because you are not able to answer that question. That is the first step, you decide first if you want to build a titanic before you decide what color chairs you are going to have on it. What are the needs of this island in terms of number of affordable units, income levels that need it the most, where they should be on the island in terms of smart growth issues of jobs and location and then where do you have properties or potentials to develop and which ones can you develop in the most economical way? To me, that is the analysis that has to be done and if you could answer my question yes, we have done a strategic planning process, we know that this is where the housing needs are, these are the categories of need and this is the project that is going to develop it and this is the time table, that is one thing but I have not heard any answers on that. Mr. Mackler: Well I think at this point, I will defer in answering that question until our consultant can come and present more information and will entertain those questions. If you would like to send them over prior to then, that is fine but we will entertain those questions when that time comes. Ms.Yukimura: Except that your consultant was not hired to answer those questions. Chair Furfaro: Well, let us follow up in August and I think the point is made, designing a big luxury liner for the purposes of crossing the Atlantic is an objective cause. What color the chair's are, is subjective. Let us know that we expect a presentation in August. April 17, 2012 Housing p.24 Mr. Bynum: The consultants are RM Towell? Mr. Mackler: It is. Mr. Bynum: And Kimura was kind of a side project related? Mr. Mackler: No, actually they are a sub-consultant under the Towell contract. Mr. Bynum: Was there a community (inaudible) prevention to work funds that were involved in that as well? Mr. Mackler: Yes, along the way. It was not originally contemplated but along the way there was a grant that became available to the County through the Department of Health putting prevention to work. Part of those funds were utilized through the RM Towel contract to incorporate the concepts of that grant program into the sites itself and you will see... Mr. Bynum: But what we have presented from Kimura was pretty much conceptual. Mr. Mackler: Yes. Mr. Bynum: I have some questions that I do not need answered now about this project but I want staff to... I was more concerned about what I found in my mind and this is not a blaming statement, it could be my fault. After the fact, the contract restrictions on that land acquisition, for instance, the one that was a big surprise to me is we are not allowed to develop any kind of commercial on that seventy-five acre parcel and that commercial will be developed in that area by the land seller. The land came with some strings attached or some restrictions on its use and I would like to have an overview and I do not mean now of what those land restrictions are for the County. For instance, if we should choose to say that we are going to develop thirty-four acres but we want to sell the other to a private developer or anybody, can we do that? And I do not need an answer now unless you have it right off the bat. Mr. Mackler: The answer is that there is a deed restriction on that site which restricts the use of the site for residential purposes for affordable housing as defined by the County's ordinance 860 which is for families or households at or below one hundred and forty percent of the median income. Mr. Bynum: But it does not require that the County develop every portion of it? Mr. Mackler: Absolutely not, in fact the idea of developing future housing, affordable housing on the Lima Ola parcel is do so in partnership with private developers or private non-profits. Mr. Bynum: Like Habitat or it could be... Mr. Mackler: Housing development corporation, there is specific housing assistance corporation, there is EAH, there is self-help housing corporation, there is a whole host of non-profits. Mr. Bynum: Or it could be a private developer who has a housing requirement. April 17, 2012 Housing p.25 Mr. Mackler: Yes, that is a possibility as well. Mr. Bynum: This does not mean because this is a big parcel, it is seventy- five acres. It does not mean that we are going to put all of our housing development eggs in that basket over the next twenty years, does it? Mr. Mackler: No. That is correct and we are not putting all of our eggs in one basket. We never viewed this site as a place where we would want to do it. Chair Furfaro: Before we go any further, we are talking about this project. I heard Mr. Bynum wanting to have some agenda time to talk about the deed restrictions that might be in the land and we can do that a lot earlier in a Committee meeting. If you would like to write that up, I would be glad to put it on the agenda. Mr. Bynum: I will be done in about thirty seconds. Chair Furfaro: I just want to make sure they kind of understand where we going. Mr. Bynum: I just wanted to put those in context because I think Councilmember Yukimura questions are related to the budget because it is in the budget. We are talking about spending money in this fiscal year to further this project, so I think her questions are appropriate and we should have a broader discussion because I have those kinds of questions that I just outlined for you. Chair Furfaro: Okay, I want to clarify myself again, I did not disagree with some of her questions were germane to the budget, let us make sure we understand. Mr. Bynum: Because I have a little different take on this then Councilmember Yukimura. I share some of her concerns but I also understand we own seventy-five acres in`Ele`ele and there is some real attractive things about that as you mentioned. Chair Furfaro: Mr. Bynum, I am going to leave the wording of what you want on the agenda regarding the deed restrictions at your discretion and we will put it on as a Committee item. Is there any other members that have any more questions, because we are now almost an hour pass the Council presentation, is there anyone else that has any questions? Ms.Yukimura: I want to request as part of our budget inquiry a copy of that deed. Mr. Mackler: Sure. Ms.Yukimura: And then also on page twelve of your supplement, Hanama`ulu transitional a hundred fifty thousand where it is a total of six hundred thousand, what is that about? Mr. Mackler: Actually, this is kind of a running record of projects and activities that we have funded through the HOME program. It actually needs to be updated because the Hanama`ulu transitional, it was only two year of funding, it is a total of three hundred thousand dollars. Actually with 09 and 2010 we are proposing to use those funds for the acquisition of a property in Kapa'a which would also be utilized or purchased by Kauai Economic Opportunity to be utilized as part of their transitional housing program. Again, we want to try to provide as much April 17, 2012 Housing p.26 inventory we can to help serve homeless that are going through the transition into permanent housing and these homes both the Hanamd'ulu and the Kapa'a home will allow KEO to have larger homes to serve larger families that are transitioning. Ms.Yukimura: What exactly is the amount that you are requesting or this is not something that we are approving? Mr. Mackler: I am sorry. What was your question? Ms. Yukimura: This is not part of the budget that we are approving? Mr. Mackler: No. Actually were approved by pass Council resolutions. Ms.Yukimura: Okay but it still needs to be updated because it is not about Hanamd'ulu transitional? Mr. Mackler: No, and I will make that correction on that for you. Chair Furfaro: Mr. Jimenez, there will be a series of questions that will be coming over to you. I do not think any of them were very challenging based on your presentation. We would appreciate a forty-eight hour turn around or if you are not able to turn it around a specific question, identify the question by number and say additional time requested but for the service pieces, as quickly as possible. The budget review was recessed at 4:21 p.m. April 17, 2012 Office of the County Clerk p.1 The departmental budget review reconvened on April 17, 2012 at 4:22 p.m., and proceeded as follows: Excused: Councilmember Chang(excused at 4:58 p.m.) Councilmember Rapozo (excused at 4:56 p.m.) Councilmember Yukimura (excused at 4:45 p.m.) OFFICE OF THE COUNTY CLERK: RICKY WATANABE, County Clerk: This year we have a PowerPoint. This is regarding our County Clerk's Office budget which also includes the Council's budget. I would like to give an overview of our total Clerk's Office budget. Our mission is to serve the Kaua`i County Council in its legislative function and to carryout voter registration and Elections related responsibilities. To provide countywide form and bulk printing services and to service public request for information and documents relating to the Legislative branch. The Office of the County Clerk consists of two Divisions, the Council Services Division and the Elections Division. We have four full time positions in the Elections Division and twenty-two full time staff positions in Council Services of which one is vacant due to personnel reasons. Our total Office proposes budget for FY 2013 reflects an increase of fourteen percent over the current fiscal year from three point nine million to four point four. This is the total County Clerk's budget, not both Divisions. This is mainly attributable to operations necessary to conduct the upcoming elections and the cost of salaries and benefits and first time electricity for the Historic County Building which was previously housed in the Building Division. We have budgeted a hundred fifty thousand for electricity for this upcoming fiscal year. Chair Furfaro: That new amount is represented in the fourteen percent? Mr. Watanabe: Yes, sir. Also in looking at our current budget in County Services after the lapse of seventy-nine percent of the current fiscal year, we have expended approximately seventy percent of our budget with the exception of salaries which has a lag time and in checking last time with Finance last week, it seems like one pay period lag time on salaries. Given this, we anticipate ending the current fiscal year for the Council Services at the high ninety percent expenditure range. In Elections, we completed seventy-nine percent of the fiscal year; we have expended approximately forty percent. This will soon change as we are now stepping up our work in preparing for the upcoming primary elections which has moved up a month and also we are awarding the contract for the signature management system. Given those two items, I believe that we will finish the fiscal year for Elections in the lower ninety percent range in expenditures. I would also like to report that while we had many challenges this year; we have endeavored to accomplish many of these challenges such as relocation back to the Historic County Building. We are pursuing training for staff, unanticipated events such as hosting the WIR board meeting, we have completed placing agenda packages on Granicus website, we have embarked on a departmental dress code policy for staff, we have completed our Records scanning project, and we are just ready to complete our major furniture contract, which I think will be done next week. We are going out to bid on codification which we have a great lag period. We are faced and went through three reapportionment legal challenges for Elections. We are getting the RFP ready for the signature management system for Elections and running the upcoming General, Primary Elections is the pending item. At this time, I would like to turn the presentation over to Lyndon Yoshioka, who is our Elections Administrator to review the Elections Division budget and after he is done, our Deputy Clerk will present the Council Services budget. Chair Furfaro: Lyndon, before you start. Ricky, I want to make sure I understand we have now documented all the purchase orders on the FF&E, furniture, fixtures and equipment that were purchased and scheduled to be in the building and we have actually done a reference check, right? April 17, 2012 Office of the County Clerk p.2 Mr. Watanabe: Yes. We have several pending such as the replacement of the Council table coming in scheduled for next week and all of those items. Chair Furfaro: Thank you. LYNDON YOSHIOKA, Elections Administrator: Good afternoon, Councilmembers. Our mission at the Elections Division is to provide open, accessible, fair, and secure election services for the residents of the County of Kaua`i and State of Hawaii; and to provide County Agencies with quality document reproduction services in an expeditious manner. Our goals and objectives, to conduct elections in accordance with Federal, State, and County laws. Establish and implement uniform policies and procedures which maximize voter accessibility to voting services while ensuring the integrity of the electoral process. Secure election records and voter data. Continually evaluate operations to ensure that resources are properly allocated and the services provided are commensurate with the needs of the populations we service. We provide quality document reproduction services to county agencies in a timely and cost-effective manner. For the fiscal year 2012, to say that this year is a challenge is an understatement. We have been faced with two lawsuits so far. The first two of which invalided the initial reapportionment plan adopted in September. The plan was finally submitted to the Leg March of 2012, three months late and then recently on the sixth, we were facing another Federal lawsuit which is attempting to basically stop us from conducting the Elections utilizing the recently adopted plan. These three lawsuits combined with the earlier primary election will significantly reduce the timeline that we have to prepare for the elections so it will be a huge challenge. As of today, we have only hundred sixteen calendar days left, eighty business days until the Primary Election and within that period of time we will be in addition to daily responsibilities having to accomplish a wide variety of Elections specific task in ballot operation, precinct operations, non-precinct voting operations, counting center operations, control center operations and election support operations. If the most recent lawsuit is successful, we would likely have to modify the upcoming Elections quite drastically, and they may not resemble what we may be accustom to seeing and that is just part of the drawback of having everything delayed thus far. Chair Furfaro: Excuse me; are you implying that the Elections might go in two parts? The County Elections and the Federal Elections at a later date if they do not resolve the State pieces? Mr.Yoshioka: We have never gotten into that level of discussion but I believe all options are on the table at this point. It is pretty scary things to consider honestly. Chair Furfaro: Okay. Mr.Yoshioka: For the 2012 Legislative Package, we monitored twelve bills. To date we have submitted twenty-three pieces of testimony... twenty-three occasions, we have submitted testimony. The status as of yesterday, the Governor did sign HB 2437 which provides an emergency appropriation to the Office of Elections. We also transmitted to the Governor 2181 which is moving the deadline for the Office of Hawaiian Affairs filing nominations papers. There are notice of different disagreements for HB 461, 1754, 1755 and 2251 apparently there were amendments to the bill which were not agreeable in both houses so they need to meet in conference. The rest of the bills were either deferred or missed the deadlines in order to move forward during this current session. April 17, 2012 Office of the County Clerk p.3 The signature management system is something that we are all excited about. Absentee mail voting is convenient and accessible for voters but it is labor intensive for our staff and what we are trying to do... excuse me, the past two elections, the average number of ballots cast was thirty- one point nine percent of people have voted by absentee mail, on average. So what we are trying to do is establish a contract with a vendor to allow us to develop a signature management system which will expedite the verification of signatures on absentee mail ballots which presently is the most time consuming and labor intensive phase of the process. We issued the RFP on the 13 of March; the deadline is 2:00 p.m., on the 24th of April which is next week. Our fully functional system should be completed by late June or early July of this year and we are looking forward of having that as part of our operations. Vote file maintenance is something that we continually do data from various sources is used to identify and extract non-eligible individuals from the voter rolls of course pursuant to Federal and State law. We also receive reports from the Department of Health and State Judiciary who report decease voters and voters who are,incarcerated due to felony convictions. Some jurisdictions also directly report new registrants who are former residents of the State of Hawai`i. Likewise, if a voter confirms being registered in a previous jurisdiction prior to registering to vote in Hawaii, we transmit the names of those individuals to the appropriate jurisdiction so they can be removed from the voter rolls. On election years, we also identify voters with outdated addresses by conducting direct mailing to voters and bumping the voter files against the U.S. Postal Service's National Change of Address (NCOA) file. To date, we have identified approximately two thousand voters who are required by law to reaffirm their eligibility prior to being allowed to vote and removed approximately three hundred and fifty-six ineligible voters from the voter rolls. Early voting will be impacted by a change in the voting system which will increase the number of ballot types from three to seventeen. A ballot type can be considered a style of ballot which is unique to a district precinct. To accommodate these additional ballot types, we will increase early voting staffing from six to eight individuals. Three of the eight people will be used to issue ballots and each will be responsible for between five to seven ballot types. As a point of reference in pass Elections, a single staff person issues all three ballot types. Chair Furfaro: Have we identified all of those potential employees that would come back to fill those positions that you need under temporary basis? Mr.Yoshioka: Yes, we have. Chair Furfaro: They have all been identified, okay. Mr.Yoshioka: For fiscal year 2013, the biggest challenge we have is the upcoming elections. Our primary goal is to always provide the best possible service given available resources; however, we are quickly running out of our most valuable resources that is time, you cannot buy time and we were quite concerned about that. The types and levels of service we can reasonable provide can only be determined once all the lawsuits are settled and then we are free to resume preparing for the elections. I might note that we have not been ordered to stop work so we are proceeding until such times that we are ordered by the Courts to stop however, it would be fair to say that the longer we are prohibited from working, the more adverse the impacts will be to services. We are also looking at doing a microfilming project; we do this periodically to archive our records. Once the election work has closed out sometime in January 2013, we will take a closer look at how much it might cost to microfilm all of our documents. We currently have about sixty-five thousand images, we anticipate that probably going up another fifteen thousand and at that point we will try to get a feel for how much it might cost and we may be coming back to our budget supplement April 17, 2012 Office of the County Clerk p.4 sometime in May. Succession plan, we currently do not have a succession plan in place for the four full time employees but we do understand the importance of having something in place to pass on institutional knowledge and expertise to the next generation of election professionals, we will be looking at that as well following the 2012 elections and recommend if necessary personnel actions to ensure that there is a (inaudible) transition in the event vacancies occur. We do not anticipate any retirements or departures in the next two or three years however, if we win the lottery then all bets are off and we have no concerns with the proposed budget proviso relating to training. We do not have any vacant positions as of this point. That is the end of our portion of the presentation. Chair Furfaro: May I say an excellent presentation too but we are going right to Jade because we have three members leaving by 5:00, two members by 5:00 and one member at 4:45, so Jade if we can just roll into your presentation. JADE FOUNTAIN-TANIGAWA, Deputy County Clerk: If you noticed we have changed our mission statement for Council Services a little bit this year and it is to serve the Kaua`i County Council in its legislative function and to provide service to the community efficiently, accurately and I want to stress with respect. There was a big issue when we were talking amongst ourselves and various staff members and that was real important to us to put in. Goals and objectives for Council Services, the first one and if you would like me to just answer questions, I would be glad to do that, I know time is short. Chair Furfaro: Let us go through the presentation. Ms. Tanigawa: To recognize that all members of our staff are valued and that the contributions that they each make, strengthen our organization and help to carry out our mission of public service. Also, it is to treat everyone that comes into contact with the Council Services Division with respect, recognizing that importance of providing exceptional customer service. To provide staff and support services to the Kauai County Council and the general public in the preparation of Council and Committee Meetings, efficiently and accurately, and to perform the necessary follow up work as requested. Provide information and related documents on legislative and/or county matters when requested by the public. If information cannot be delivered within the time frame requested, a response to the request shall be provided within one week. The next slide is just a comparison from last year's budget Fiscal Year 2012 to this current budget. There is a difference of approximately four hundred thousand seven hundred sixteen dollar and an increase of about twelve point three percent which is stated there attributed to wages, benefits, operations, utilities, equipment leases. This year, we have really taken the opportunity to embark on establishing goals for the various sections in our department and are reflected on pages six through nine of the presentation. What we wanted to do is establish measurable goals, everybody can see them; know what is expected of them and hopefully it will work to provide at least better service for the members and the public. I am happy to say that we are currently fully staffed. We have started the implementation of standardize work deliverables that was also something that we talked about. I am sure both Council Chair and Councilmember Bynum is very happy to hear with Aida Okasaki, with her hard work and with the assistance of IT, web posting is now available of all agendas and attachments, in addition to Council minutes. A big thank you to Aida there, she really took the lead on that. Chair Furfaro: Thank you,Aida. Ms. Tanigawa: We are successful with the relocation to the Historic County Building with minimal business interruptions as Ricky has stated and we have embarked on a more April 17, 2012 Office of the County Clerk p.5 formalize training program initiative. Eddie, will be explaining our training initiative in a little bit more detail. EDWARDO TOPENIO, Administrative Assistant to the County Clerk: Good afternoon. In October of 2011 when Ricky Watanabe was appointed Interim and subsequent County Clerk, we embarked on a proactive training initiative for staff to include training at the Kaua`i Community College courses of parliamentary procedures effective meeting management, computer, words and excel. We also participated in the legislative drafting workshop conducted by the Mr. Shawn Nakama from the Hawai`i State Legislature, Legislative Research Bureau which were attended by fourteen of our staff of how to draft proper legislative writing format and write bills using simple language that the public can understand. He provided us with handouts and he indicated that his office is always open for any questions from our staff. We are also in the process of participating in the web base training provided by County of Kaua`i, Risk Management as you are aware of on topics such as Safety Orientation, Managing Stress, Effective Supervision by Supervisors as well as Preventing back injury, so if you have not done yours yet, I am sure you have gotten the reminders. Another workshop training that staff has attended is the Boards and Commissions orientation, we have three staff that attended there. We also attended training on Alcohol and Control Substance testing program, (inaudible) governing with ipad, we also participated in Legislative Web tracking by Scott and Ashley. Hawai`i State digital archives project attended by Lorrie Eto regarding Records. Kauai Community College on effective meeting management, and our legal analyst have participated in the Legacy and Land Conservation Commission attended by Ginger and legal analyst Peter Morimoto who attended new partners for Smart Growth workshop. Council Services will continue to schedule and encourage training and have staff participate in workshops pertaining to work. We strongly support our staff to attend training to enhance their knowledge and skill set. To this end we have utilized our staff to be our eyes and ears of any training opportunities that exist. We have for you a handout on the training that our staff has attended so far. Chair Furfaro: As we noted, the handout is the results of first year of a business training plan? Mr. Topenio: Yes, sir. Chair Furfaro: Thank you. Ms. Tanigawa: Now for upcoming initiatives for Council Services, we will continue the staff training business plan. We are in the development of Council Services media plan which is something we will... it is still in development phase and as it progresses, we will make sure to release that information to you. This is under the direction of the Council Chair and some members that have also expressed interest in that. I am sorry, Councilmember Yukimura has missed this but she will also be happy to hear that codification of the Kaua`i County Code1987 as amended will be going out for award this current fiscal year. Chair Furfaro: Jade, I thought we agreed that we were going to put a note on there that it is currently at the County Attorney's Office being reviewed. Ms. Tanigawa: Yes, I was going to just state that but we will add that in. The contract is expected to be awarded this current fiscal year, it is with the County Attorney's Office right now, the contract for review and recommendation and the end product is up to date, Kaua`i County Code which has not been codified since 2006 and it is also intended to provide access to the code via the internet, so it will be much user friendly. We will under the direction of the Council Chair and our County Clerk continue our succession planning; we are looking about in three year increments as we expect two of our employees to possibly be retiring in three years. As Lyndon discussed, going into the Primary and General Election in providing assistance there. if gP April 17, 2012 Office of the County Clerk p.6 Chair Furfaro: Jade, I thought we also was going to point out that we usually meet on Thursday's with staff, so if there is any urgent message to be shared with the staff, we do that on Thursday and if you get it to Jade, that is the appropriate time. Ms. Tanigawa: I apologize in getting the entire packet to you folks earlier, we were kind of working to the last minute to tweet a few things but if you...we have two request or we have request for two positions. One is the Record Management Analyst and that is to support our Record Management Section who is a staff of two who really has been a staff of two for at least twenty-one years. The work has only increased and they do a wonderful job as it is and we have provided supporting justification in your packet with the job description and also the justification sheet for the position. We have also asked for a Legislative Assistant to assist our research section. Interesting enough when putting this report together, a couple Councilmembers tapped me on the shoulder to make sure if it was a typo or not but if you refer to page ten, the detail report. We have gone through and provided some statistics of what we have done so far as far as projects, meetings and all of that and there are two things that I wanted to point out. One since July 1 until just about yesterday counting the days and going back through the meetings, we have had approximately five hundred twenty meeting hours in the Chambers which is quite a bit. I would say a little more than we have had in the past. That was interesting to see on paper. The other thing as new project assignments, this would include everything that has come through my desk whether small or large, complex or simple, we have had three thousand and ninety-five request generated by... Chair Furfaro: Seven Councilmembers. Ms. Tanigawa: Thank you. Chair Furfaro: Let us hear that number again. Ms. Tanigawa: Three thousand ninety-five. Chair Furfaro: Three thousand ninety-five requests have been generated by seven Councilmembers. Ms. Tanigawa: That would average in a full year approximately twelve assignments a day, large or small. It is hard to compare this year to last just because tracking was a little different then but just to note... Mr. Rapozo: I wanted to add to that three thousand number because the year is not over, that does not include budget and I think just myself, I have generated additional questions going over and got to be typed up and I think that is really what my comment is because I know we have been... or I have been very critical of additional positions on all the departments, because now is not the time to be creating more expense for the County. I want to put something in perspective and this is where I think the people have to understand that the Mayor's Office is an Executive Branch, he has his office and the Council as a Legislative Branch, and we have our side of the street. We have the Council Chair but we have seven members of this Council. Our Council Services staffing is at twenty that is what I count, it is twenty—we may have a vacancy and so and I am not counting Elections because they really do not participate with our function as the Legislative body on the Council side. We have seven individual Councilmembers that have just as aggressive schedule as the Mayor, it is really two different branches of government but we get the same phone calls, we get the same emails, in fact we may get more. If you look at the Mayor's organizational structure, he has a Managing Director, he has an Executive Assistant to the Mayor, he has two Mayor's Administrative Aides, he has an Executive Secretary to the Mayor, he has an Executive Protocol Officer, he also has two PIO's and a Director of Communication and those actually service April 17, 2012 Office of the County Clerk p.7 pretty much the whole County but directly reporting to the Mayor and at his disposal. I count six— so if you were to multiply six times each Councilmember, we would have forty-two positions to service us the way that the Mayor gets service by his staff. I think that is ridiculous that we should get forty-two people but I do not think it is ridiculous to ask for a Records Management Clerk and another Clerk, so obviously any question that I have I will definitely will convey over. I read all the material I was doing that prior because I knew I had to leave early. I do want to congratulate the turn around, it is different part because of the Chair's change in direction and part in the direction that the change of the management of this office is and I really appreciate what you guys do and obviously you guys work hard. Three thousand, I do not think that is accurate, I think it is a lot more than that I really do because there are many times we do the phone calls... I told Jade earlier even if I call to ask you do whatever it is - make a copy of this and send it over to Planning, that needs to be tracked, that has to be counted, we need to count every single request that we put out so that the public can... but that three thousand, that is twelve a day and some days it is a lot more and I just do not know how you folks do it. Thank you, Mr. Chair, for allowing me the time because I have to depart but we will be back at tomorrow morning. Mr. Bynum: Thank you for this presentation. I want to point out that I believe that this is the only presentation I see that we had a justification and job description for potential new positions, thank you for that. What a difference a year makes. Chair Furfaro: You got a mission statement. Mr. Bynum: Yes. We are fully staff for the first time since I have been here and that includes the positions we added last year. Web posting with attached documents, I cannot tell you how happy I am about that but I am hearing positive things in the community and Aida deserves a special recognition for that. Training that is actually happening, I did at the beginning at the term we did a... what was it called Jade, you staffed it... the Human Resource Sub- Committee that virtually no training had happened here, no money had been expended for training for... I do not know how many years and to see that embraced and happening is very significant. Please continue it and the new hires are all great, so somebody was paying attention and I know it was done by Committee, it was not done by one person. We have a new Clerk, thank you Ricky for going out of this Civil Service bubble and taking the risk to provide the leadership you have and for having the wisdom to select Jade as your Deputy and to restructure in the way that makes Eddie's position clear. The public gets to see the analyst here and some of the clerks but they do not see Lorrie and Nancy who work so hard in the back. Lorrie is in the room. We know about the back log of getting stuff done because we are demanding them this time now and so the historic stuff has not been happening. I do have a question, not just comments. I am thrilled to see an initiative which I have not discussed for a while about codifying and if I understand your comments, you are sending that out to a consultant as like an RFP right which is something that... I know there have been attempts to do it in house but the day to day immediate operations of this place make that not attemptable thing and so I am very happy about that. Is that correct that it is a RFP for a consultant? Ms. Tanigawa: Yes, that is correct. Under the Chair's direction I think he understood how much we do so it is going out as an RFP, I believe that process has gone through already. The contract for the work is being reviewed by the County Attorney's Office currently, so we are looking forward to awarding by the end of this current fiscal year. Mr. Bynum: I know that the Council in the past expressed frustration about the turn around with some of our request and we had positions that went unfilled for three years or more because we said we have this frustration here is the position. Since the Chair has been the Chair and with your leadership, that was worked on right away and the volume of request I am sure are astronomical, I have said this before. This is an active Council and there is no secret in the April 17, 2012 Office of the County Clerk p.8 past there were Councilmembers who saw it more as a part time endeavor and our County has gotten more sophisticated and this group here is putting out a volume of request for work and I am continue to be amazed at the turn around and during this legislative session, I have asked for a number of testimonies to be prepared and it happens. Those things are really time sensitive, it is like the hearing is in three days and it is all happened and I am just am very happy with that. When we get into decision making, I will probably have some input for desires to help us be more efficient and more responsive to community. I do believe with all of my heart that posting those supporting documents is going to help make us more productive because we will not be responding to people at the counter as often. The codifying was a surprise and a very pleasant one. Chair Furfaro: We had to put another five thousand dollars in to get it done but we are good. Ms. Nakamura: I have a question relating to the media plan and are there funds in the budget to implement this initiative? Ms. Tanigawa: Currently, we have not identified any funding. We are still drafting the proposal and trying to see what the bed fit would be before we propose any funding. Hopefully, should things go well and after review, we meet with the Chair every week, so we kind of like to run things by him and get his input and should things work out and we do some fine tweaking, I would expect the plan at least for your review within the month at the latest. Ms. Nakamura: Oh okay. Chair Furfaro: We have been in discussion with Yvette because our key point person, she has a journalisms background and with Jade and others participating, we have really just developed a liaison to the Mayor's Office about printing and releasing and making the media contacts to release our press material. So rather than create a new channel, it is a conduit from Yvette to the media office and the Mayor and then they in turn contact everyone from PBR to the Advertiser to the Garden Island. Jade is correct, we will have something to present to you — more structured in about thirty days. Ms. Nakamura: I just wanted to echo Councilmember Bynum's comments that we come to these meetings and we have the agenda and all of the background materials but people do not see what is really done behind the scenes and it is really largely due to the staff and through your leadership, so thank you very much for all of the support that we get. I am supportive of the proposal in front of us. Mr. Kuali`i: I have some specific questions positions for the Elections Clerk. I just want to understand how it is actually going to be done with the elections coming up and in the actual budget, I do not actually see position numbers but maybe you do not need position numbers when it is temporary election clerk. I see the number two temporary election clerk six months but it says seven, twelve to twelve, twelve and then it will end in December? Mr.Yoshioka: Yes, we are just hiring based on the workload. Mr. Kuali`i: So there is two at six months, two at five months and three temp clerks at one month? Mr. Yoshioka: Correct. Mr. Kuali`i: You said something about eight early voting staff? April 17, 2012 Office of the County Clerk p.9 Mr.Yoshioka: All of the people that are currently budgeted, the temps —the two six months temps, the three, five months plus the three, one months. The three, one month actually we hire just for the early voting period by itself, so it is like two weeks for the primary, two weeks for the General. Mr. Kuali`i: So it is three plus the other five that is how you get your eight? Mr.Yoshioka: Correct. Mr. Kuali`i: And the Department of Personnel Services, in their vacancy report they list three actual positions with positions numbers and I do not know if that is out dated and it needs to be cleared up but they have position 9133, position number 9136 and position 9137 and they are all called election clerk two unclassified SR-10 and they show as 9133 vacant since 12- 21-10, 9136 vacant since 6-10-10 and 9137 vacant since 7-1-209. In their status as far as recruitment, they put contract Department handles. Mr.Yoshioka: Those sound like the temporary hires and what they do is they reuse those numbers when we hire the temp clerks. Mr. Kuali`i: And therefore, for your use. Mr.Yoshioka: Yes. Mr. Kuali`i: And then the dollars in this budget on the three amounts is what you need for the six months for the five months? Mr.Yoshioka: Yes. Mr. Kuali`i: Okay. I just wanted to say too that as far as Council Services and I have said it since day one is that I definitely could not do my job without all the support that I receive from staff throughout the organization from the... and I just cannot thank you enough. I know that most of you are doing the job for two people and I know how hard you work and we just really appreciate that and I think as we move forward, Mel, made a very good illustration on how we [ should honestly be thinking about making sure that you have the support you have because that means that we have the support that we have and we can service the citizens better. Chair Furfaro: On that note, I want to be able to say to all of you on the staff that is here or not here, we made big stride from the last sixteen months. We have new policy statements that are in place, we have systems that allow request to come in on different items that we sign off, they also allow me some think time as to when we put items on the agenda that no Councilmembers are bumping heads on the same item with another Councilmember who has filled out a request that we time stamp them and there is a lot of small pieces going on like that that we cover on Thursdays and we will be back into that routine next week. Members, if you have suggestions for procedures or policy, we will be glad to entertain them just see that they get to Ricky and Jade and we will have open discussion at those meetings. It is cross training that is going on that is going to give us the kind of continuity so when we get off of the Council from our term limits or however, you can be assured that we are working for some continuity on records, procedures and policies and just making improvements every day on how we do our business and it is greatly appreciated. Mr. Watanabe: Chair, I would like to mention our new subsection downstairs our secretarial assistance, they have really provided major contributions to our operations, they April 17, 2012 Office of the County Clerk p.10 have helped us to have our clerical focus on the meetings and the minutes and those types of items while they take care of all the arrangements and stuff. It has helped operations in totality. Chair Furfaro: We are all learning how to be travel agents on booking reservations and so forth and using the p cards. They have given great support to Nancy. We have made a lot of operational changes and it is thanks to all of those on the team. I think we can close the budget session for Council Services and Elections. Ms. Tanigawa: I just wanted to take this time to thank all of you for your support and I really wanted to thank the staff, they never get thanked enough for all they do and it is very much appreciated. Everyone contributes and as part of this... the statement that we read, everyone is really valued and everyone at the table want them to realize that and know that it is now a team effort in all that we do. Chair Furfaro: You folks should be thanked for coming up with that new mission and value statement. Thank you for putting that together. We will look forward for just consistently making improvements. The budget review was recessed at 5:07 p.m. April 19, 2012 CIP budget(cont'd)p.1 The departmental budget reviews reconvened on April 19, 2012 at 9:10 a.m., and proceeded as follows: Councilmember Bynum (present at 9:18 a.m.) Councilmember Nakamura (present at 9:18 a.m.) Chair Furfaro: Aloha and good morning. We are resuming our Capital Improvement review as part of our budget program that started. So we're back from recess. And I want to let Mr. Dill know my intentions. I would like to have an overview presentation on all of the material that you have for us today. And then at that point, before we actually go into the individual pieces, if there are people that would like to offer testimony, I would like to take the testimony and then follow the schedule that you folks had submitted to us. Okay? But I would like to do the overview and see if there is testimony and then follow the schedule you submitted. Mr. Contrades, you have the floor. If you are going to make a presentation, I'm going to move to the other side. TOMMY CONTRADES: that will come up in a little while. Chair Furfaro: Okay, very good. I am expecting Councilmember Yukimura, as well as Councilmember Bynum shortly, but we will get started. Mr. Contrades: Good morning Mr. Chairman, members of Council, for the record my name is Tommy Contrades, and I'm pleased to be here with our CIP team to present the administration's proposal for capital improvement projects for the fiscal year 2013. This has truly been a team effort and while I'm tasked with the overview management coordination of the CIP program, there are many hands involved getting projects through the process and to completion. It's a team effort consisting of project managers in the Department of Public Works, the Department of Parks and Recreation and many other Departments who do the heavy lifting and make the projects move. Other important team members include the Finance Department, Purchasing Agency, the County Attorney's Office, and the Office of the Mayor. And of course the Council which ultimately sets the direction for the annual Budget Ordinance. This morning we'll first be presenting a general overview of the CIP program, followed by detailed discussion of the proposed projects department by department. Our first 30 minutes will be dedicated to the overview, which also includes a snapshot not only of where we are, but also where we are headed. I will start with an outline of how we currently manage our CIP program. Then Ken Teshima will provide the overview of some management tools we are looking to incorporate in order to coordinate our CIP program more effectively. And finally Ernie Barreira will cover the process we use in order vent the projects and develop the fiscal 13 proposal which is before you today. Now allow me to start with an overview of how the CIP program is currently managed. First of all the CIP project/program was initiated by Mayor Carvalho. For the past couple of years the Mayor was working with Joe Blevins on creating a program for CIP projects using existing County- owned software, namely Microsoft projects. Using this software with the help of Joe Blevins, Mandy Swanson and Brandon Raynes we were able to assemble all CIP projects into one master schedule on MS projects. From the master schedule we're now able to forecast project costs, start dates, finish dates and percent complete and project data. Each project begins with a project initiation document. The document is used to describe the project and its funding needs. Once the project has been funded, the PID becomes sort of an historical document and the remainder of the project is scheduled-driven. Data for each project is filed on share-point and available by permission to individuals as needed. Unfortunate some of our software use is a bit outdated and has made it difficult for us to be on the same page at the same time. So we're going to hear from Ken Teshima as he presents to us a new software program that we are looking at trying to obtain that will incorporate all of what we are doing now and hopefully brings us to a higher level of what we intend April 19, 2012 CIP budget(cont'd)p.2 do in the future. So at this time I am going to ask Ken to come up and explain to us the benefits of our new program. So Mr. Chairman, now you may want to move over as we are going to use the Power-Point. Chair Furfaro: Ken, when you take the mic make sure you introduce yourself again. Mr. Contrades: The present program that we are using has provided us with the ability to track a lot of our projects. We are looking at obtaining software that will give us even further benefits. First of all look at reduction in overall capital projects costs and advance P P J warning of potential changes which enables us to do some proactive decision-making. Greater protection against the blame-game and resulted in costly litigation. Producing more accurate forecasts with real time access to better information and one of the things about this is we are trying to find someone who can link what we are doing now with our financial forecast which would really be a big help. Reducing surprises and minimizing risks and putting more work in place with the same staff. Access to real time financial information and the ability to create, and customized reports. Ken. Mr. Teshima: I am Ken Teshima with the Department of Public Works. The following slides are example of different outputs and it's essentially not exactly what we are looking for but it's only some exhibits that we may or may not utilize. We're in the process of pursuing a tool that we can utilize from project concept all the way to project completion, including capital planning, possibly, and ultimately, perhaps, data-collection in pursuing future projects. This is just an example of different tasks and expected dates for a project. This one here is also an example of a report indicating the kinds of different details of the projects. And it varies. The formats are just examples we're looking at modifying to our own needs. The graph is indicating how a project moves as far as construction process is concerned more so is essentially a graph the front- end is usually purchasing long lead items and the bell-shaped curve is how the dollars are spent throughout the project. This is another example of some of the exhibits that we can utilize to better understand where the monies are going, and how the monies are being used, either relative to a project or a combination of projects or maybe a specific part of a project. Next one, this is also a list of some project summaries relative to compilation of many different projects, looking at dollar forecast and variances relative to projected and actual. In the far right corner it says, "over and under." This also have another example of some reports that indicate some line item changes relative to different accounts. These accounts and these line items are somethings that we would actually create ourselves. It's not going to be exactly like this, I'm sure something that we're going to customize for our own needs. Next one, another example of a report indicating forecasts for specific portions of a project. Next, this is an example of it's probably a CAD drawing that we do have, but not every station and every project manager may have. But we would like the ability to take an actual CAD drawing and instead of having another CAD drawing on the workstation to communicate we can use this program and software to mark up whatever changes and communicate back to either the contractor or the designer to indicate what our problems may be or concerns or changes that we want to look at. The software itself is expensive, CAD software anyway. This is an example of a list of libraries of different forms that we can use and hopefully standardizing forms and having reasonable access, which I know purchasing is also doing now. This is specifically we can use within the project management perspective. Another example of different kinds of forms the application of the forms and how the forms are utilized during the process. Again, the process is an example of a project. It could be quite different how we deal with our projects relative to what we need to do in our internal communication requirements. Next, these are the modules that take information for bid process. I know purchasing is endeavoring to look at software to do that, but we could or could not use this. And if we do use it, it would most likely be for data-collection and statistics based on projecting future bids and bid information and cost estimates. Next one, this is an example of a (inaudible) chart which lists the different tasks, the different schedules and how the different tasks April 19, 2012 CIP budget(cont'd)p.3 and schedules relate to each other, simply to manage the relationship between tasks and projects and perhaps time and money and understanding what the potential schedule may be for each task. Next, this is a checklist that can be used in this case it's a project close-out checklist that basically shows us for each project whether a task has been done to assure us that the close-out process is complete and we have the deliverables that we still need for each project. We're in the process right now of developing the RFP. We have one draft now that needs to be reviewed with all the agencies and their comments. Any questions? Chair Furfaro: Mr. Rapozo? Mr. Rapozo: Thank you. Is the software in the budget this year? Mr. Teshima: Yes. Mr. Rapozo: What was the ... I must have not seen it. How much is this software? Mr. Contrades: I think we put in $100,000. Mr. Rapozo: $100,000.00, and it would be in which ... I'm sorry, where is it? It's in the CIP budget right? Mr. Contrades: Bond fund, on the bottom. Mr. Rapozo: Okay. Chair Furfaro: Any other questions? Mr. Kuali`i? Mr. Kuali`i: I'm just curious as to I imagine with the and aloha and good morning by the way and thank you for all the work that you do. I imagine that with computers these days you can get a pretty good tracking system and reporting system. Just wondering if ultimately this system would allow Councilmembers or others to look at information? Obviously you are managing the information, you are altering the information and updating the information but as far as reporting and just looking at big-picture progress stuff as far as progress on the timeline and schedule and maybe updates on the expenditure of funds. Would the software allow such a thing? LYLE TABATA: Hi, Lyle Tabata, Deputy County Engineer for the record. Chair, Members that is what ... maybe we can go back to ... the intent is yes. The short answer is yes. We would create reports of various details for the different levels of information. So for the project manager he would have the most detailed reports. For the department heads that the projects are being done for would be the next tier, for the mayor and available for council. Mr. Kuali`i: That would be good news, because I think access to information is one of the most important tools for us, for us to be able to do our job. Mr. Tabata: One of the goals is to be able to, on the intervals we determine, have automatic reports sent out through email. So the request will ask whichever software provider be able to interface with the County's primary email method is outlook, interface with Microsoft Outlook as you saw the schedule mark interface and Microsoft Project Manager so forth and our as 400 accounting system. So these are all details of the procurement. April 19, 2012 CIP budget (cont'd)p.4 Mr. Kuali`i: Just one thing, with the Department of Personnel Services right now there is this quarterly report, it's done manually and we have to wait for it. I think with computers and the ability today, ultimately, we want to get to a point that yeah, you can generate quarterly reports and send it our way, but if we are working on something, one of our committees or whatever with our staff if we can just from time to time on demand sort of like not just quarterly but if something came up and we are working on something to be able to just access the basic tracking information. Mr. Tabata: Exactly. One of the features that is a part of the selling point to us, from all of the original five that we looked at, was at the touch of a button you create a format for the report. If we wanted every Monday morning, we can get it every Monday morning, real time, to tie into the accounting system, that it will upload whatever happened from the previous week at week-closing in the accounting department. Mr. Kuali`i: And then of course it will only be as good as the workers who are putting the information in. So as things get done, they need to be inputted sort of right away. Of course, keep in mind the low-level staff that you need to make sure that everything is imputed into the system, so that what we're paying we can utilize in that manner Mr. Tabata: One of the requirements for the construction module section will be able to use smart phones or iPads or whatever laptops in the field that are connected that will feed right into the modules? Mr. Kuali`i: The last thing line item says, "CIP management system consultant," and in parenthesis software/training. Can you tell me how that $165,000 breaks downs between software piece and training piece? Mr. Tabata: I would have to get back to you. But it includes the purchase of the software with a number of seats and that is to be determined how deep we want to go and the training. The majority of that cost is training. Mr. Kuali`i: Yes. Okay, thank you so much. Thank you, Mr. Chair. Chair Furfaro: Lyle, following up on that, how deep do we want to go references the training module for this. So incrementally, do we know at what plan we have right now for when engineering will be coming on that, when Building will be coming on with that, when Parks will be coming on, because your department doesn't manage all CIP in the County. When Planning will come on board? Do we have a template like that or is that something we'll look for in the future? Mr. Tabata: That has to be developed, but the intent is that we'll start with Public Works. Chair Furfaro: I would say the intent is very good, but please keep us informed as training develops to add other departments on. Mr. Tabata: We will. Chair Furfaro: Thank you, Lyle,Vice-chair Yukimura. Ms.Yukimura: As a follow-up to the chair's question. Is there a master plan that shows that kind of scheduling? April 19, 2012 CIP budget(cont'd)p.5 Mr. Tabata: For the training? The implementation you mean? Ms.Yukimura: For the implementation and rollout into all the partnering Departments or Divisions? Mr. Tabata: I have a rough sketched out on the pad that I could put into the Microsoft Project, but the intent is in 18 months to be fully functional. Ms.Yukimura: As in Public Works itself or within all departments? Mr. Tabata: We hope the whole County. Ms.Yukimura: That is a really aggressive...yes. Mr. Tabata: I know it's aggressive, but I think for the requests that we have received from Council and other Departments and the Mayor's intent on better communication and tracking status of our projects, I think it will be pushed to the forefront in priority? Ms.Yukimura: Okay, thank you. So then the issues, for example, about roads was before us and the projections of new roads based on approved subdivisions that are coming up and putting them into the road system, that kind of interface is going to be made presumably? Mr. Tabata: Well, let me re-phase your question. Your question was if there are new subdivisions coming up if it's going to be interfaced? We don't interface or we don't register a new subdivision until the asset is accepted or dedicated to the County, so when that happens, definitely, it will be put into the maintenance Micro Paver Software and if a project is generated from that, it will end up here. This is specifically for CIP project management and part of this will feed into allowing us to include the load-up into the six-year CIP plan, because this will compartmentalize annually our spending based on the projects and allow us then to create that as one of our reports, the six-year CIP. So we're working with Planning and interface that department with us to build this. We have shown this to them and they have sat in a number of our presentations and that is the vision. Ms.Yukimura: That seems like a logical point that for example roads is inputted into the system and how does it interface with our I still don't have a clear name for it but our GIS data system that will be ... which is another important aspect of information in terms of access by the public but also access by planners and data needs and I'm going toward subdivision lots AG subdivision lots and so forth. Mr. Tabata: So if we can see this project detail overview, this will be as Ken mentioned an overview of our project. What we have now and what you have if your folders are the PIDs. This will be our PID page, where project initiation document, all the details the project overview and if you see on the top right, there is a picture. We can also input the GIS layer that identifies where in our community. So we'll be able to select one of the drop-downs and connect it to the location where it is in our community. When you go to it the document management page, we can also, if it's a subdivision, if it's a home in the subdivision-- I'm sorry, say Parks is building a new neighborhood center in a subdivision. That would link to the GIS system to locate exactly where it is. Tax map key, etc., and all of our documents are going to be logged electronically now and all the document management in this module will be kept electronic and when we get to close out process checklist, all of those documents electronically held would be categorized here and then this would April 19, 2012 CIP budget (cont'd)p.6 be transferred to asset management. So they will have everything that had to do with this project electronically, a history, then part of the facility asset drawing of as-builds, all of the cut Y� Y, p Y g , sheets from all of the equipment installed, etc., will go to the appropriate divisions, say building to Building Department for them to carry on the asset and be able to manage the asset. Chair Furfaro: On that note, since this seems like a gift from Papa Noel, would we put you back in December and you give us an update on the project? Seven months from now? I see Mr. Dill shaking his head yes. So we'll get another update on how you are progressing in about seven months, just before the end of the year. Councilmember Nakamura, you have the floor. Ms. Nakamura: Thank you for your presentation and great to see the county moving in this direction. I think it was mentioned earlier that this is the similar software that City and County of Honolulu is looking at? Is that correct? Mr. Tabata: The City Engineering Department -- so this is a data base software. So they took a generic data base software and they built the modules themselves. So if the person who built it, leaves the County they are up a creek so to speak. What we're looking at is a legacy. Any of us can leave and it will be there. We're championing it right now and so we'll ensure that we train enough people in the operation, and you know, like anything, we need to get all of our project managers in all departments to use this. So that has been the challenge. Ms. Nakamura: But you are saying you are going through an RFP process? Mr. Tabata: Right. Ms. Nakamura: I wanted to follow-up on Councilmember Rapozo's question about the cost because we're actually on the Council side we're looking at three documents regarding CIP. The first one came together with the budget, initial budget message on March 15th and then yesterday we received a more detailed breakdown by expenditures and encumbrances so forth and today we have this third version, all presenting good information, but in different ways. 1 Mr. Tabata: That is part of why we're pursuing something like this, because you get all of these different formats that I understand it's confusing Ms. Nakamura: And I think the question I have is on the initial budget that came over, the CIP budget under"CIP management system." It was $165,000 and in the version we received last night under "CIP," it was $165,000 and then in today's version it's $100,000 minus $65,000, so it's $100,000. Mr. Tabata: I think we split the money that is -- Mr. Contrades: Actually last year it was $65,000 and then we added another $100,000. Mr. Tabata: We added another $100,000. You will see in the roll- up the last page the total. Ms. Nakamura: The last column says $100,000. So it's not consistent? it Mr. Tabata: It should add up to two, I don't have my copy with me. But we have $165,000 in there. 1! April 19, 2012 CIP budget(cont'd)p.7 Ms. Nakamura: Okay I just want you to take a look to make sure, because I'm assuming that last column— Mr. Tabata: I think that is the new money we're putting in, in addition to what we had last year. Ms. Nakamura: Okay, so this is not the total CIP? Mr. Tabata: That is what we're asking for this year, because we already have $65,000 presently. Ms. Nakamura: Maybe if it was labeled that way we could understand it. All it says is total. Mr. Tabata: Okay. We'll be updating. Chair Furfaro: Could we turn the lights back on. Mr. Tabata: So the bold page is what is in the Ordinance that we're asking to upload. Mr. Rapozo: If you look at that line, you see in the bond fund $165,000. And if you look in general funds, we removed the $65,000 from general fund. Which is showing us the total available funds for this project is $100,000. That is what this shows. Mr. Tabata: Okay that is an error. We need to check on that. The spreadsheet is an error. Chair Furfaro: Vice-Chair, you have a comment on this particular schedule? Ms.Yukimura: Yes. Chair Furfaro: Go ahead. Ms.Yukimura: I think what you meant by total available meant existing. And then this is the last column that says, total. Right? So I think you meant it, but it is very confusing. When you said, total available, mean what is existing now. Mr. Tabata: Yeah. Ms.Yukimura: I don't know where you have general? Mr. Tabata: I need to get back on that. Chair Furfaro: Excuse me, Mr. Barreira, can you add anything to clarify that and then I will give the floor back to Mr. Rapozo? Did you hear what Vice-Chair asked? Mr. Barreira: Good morning, Chair, Ernie Barreira:, Budget and Purchasing Director, I had a clarification for council Members Rapozo and Nakamura. April 19, 2012 CIP budget(cont'd)p.8 Chair Furfaro: Would you share that with us. Maybe that will answer... Mr. Barreira: Yes, sir. What the deduction look like in the CIP is part of our exercise where we removed moneys from the general CIP fund and transferred it to the bond CIP fund. So the total monies available for this initiative is $165,000 Chair Furfaro: Coming from general fund and/or bond? Mr. Barreira: Bond. It will all be inclusive within the bond CIP fund. Chair Furfaro: Did you folks understand what they did? Mr. Rapozo: I understand what he said, but that is not what the spreadsheet is reflecting. I think that is the concern. Mr. Barreira: Are we looking at April 18th? Mr. Rapozo: Yes. Mr. Barreira: I see a total of$165,000 under total. Mr. Rapozo: If you go across, it's $100,000. The general fund, apparently what it tells me is that in the existing budget from last year, we had only $65,000 allocated into the general fund. Mr. Contrades: Correct. Mr. Rapozo: That has since been removed. We added $165,000 in the bond fund which I would assume is just basically transferring $65,000 from general into the CIP bond fund and the total available should be $165,000. Mr. Contrades: Correct. Mr. Rapozo: This tells me $100,000. Mr. Contrades: Sorry. Mr. Rapozo: No, don't apologize. I just ... When we get to this sheet, there are several questions regarding because I have a difficult time understanding when we have a negative balance in the total column. So when we get there, we can, so you have some time to figure out the explanation of why we would have a negative balance in the total. That was just an issue. Chair Furfaro: I gave you the time for that. Remember where we're at in this presentation. I want you to give us your overview and then I'm going to open up for public comments and then we're going to go back into more detail, as Mr. Rapozo said. So you see what needs to be done at the request of Nakamura and Rapozo;right? Mr. Chang? Mr. Chang: I think, chair, Clint-- Chair Furfaro: We're going to come back to the item. April 19, 2012 CIP budget(cont'd)p.9 Mr. Chang: Okay. I think he wanted to explain something to us. Okay thank you Chair. Chair Furfaro: They can get themselves grouped together to make sure they all understand before we get to the change. Okay?Are you going out? Mr. Dill: If I may, I would like to respond. Chair Furfaro: Sure you may, Mr. Dill, you have the floor. Mr. Dill: Good morning, for the record Larry Dill, County Engineer, Councilmember Rapozo, I was going to get into the spreadsheet a little more when I came up to explain what we're doing with the monies and moving things around. First of all in the CIP Ordinance under bond fund, page 2 towards the bottom you see the CIP management system consultant software/training? So we show $165,000 there in the bond fund. The way that the spreadsheet that you have ties to that, and that is on page 8 of 10, the 11x17 spreadsheet, towards the top. We show that we had $65,000 in the general fund. Where we're taking that $65,000 out of the general and moving it to bond and requesting an additional $100,000 in the bond. You can see in the far right a total amount in that line item of$165,000, which matches the CIP Ordinance. Does that make sense? Ms. Nakamura: Can I ask a question? Mr. Dill: Yes. Ms. Nakamura: What is on page 10 of 10? Mr. Dill: Okay on page 10 of 10 actually pages 9 and 10 we summarize and pull from the first eight pages all of the projects where the actual proposed additions/changes are. Okay? Ms. Nakamura: I see. Mr. Dill: Sorry when I was going to speak, I was going to go over all of that for you. I am happy to do it now. Chair Furfaro: So we were talking about the software that has been proposed to us? Is there any more? Let me summarize this, Mr. Dill, if I can? So this new software that is being presented to us is an attempt to have a more dynamic process to the changing workload that we have and be more accurate? No. 2, we wanted this new software system to be more stakeholder-focused, as Mr. Kuali`i had pointed out that we can have a process where we can go right to these reports they'll be current and they're going to be phased in by different departments over the next 18 months. Mr. Dill: That is correct. Chair Furfaro: No. 3. I'm speaking without the mic. Okay, you heard me on no. 2. So I will go to no. 3. Okay? This is important. We're going to make the best use of our limited resources. Okay? And no. 4 is this is really an ability to move beyond what seems today to be a fire-fighting system. We're not going to be putting out fires as often, because we're going to be more current, consistent and clear on the reporting. April 19, 2012 CIP budget(cont'd)p.10 Mr. Dill: That is correct? Chair Furfaro: That is the goal there? Mr. Dill: Yes. Chair Furfaro: Okay, thank you. And I think we all look forward to it, because at present time you saw the questions coming up, confusing from bond money to general fund money to what line we're tracking on it. You have to combine some assets from the project with money we borrowed. You have to combine others that we set aside in the general fund. We'll get a very clean project release form that is similar to what you and I have seen in the past explaining all of the particulars, design, labor, materials, purchase orders, etc, etc. Well, we do wish you well on that and look forward to an update on December, which you said is achievable, right? Mr. Dill: We can certainly give an update, yes. We hope to have the RFP out by then? Chair Furfaro: Well, we will look forward to an update on Papa Noel and what he is delivering under our Christmas tree. Okay? Anymore questions? So let's move on, because I explained to you I want to get to a point after the overview that we can take public comment and then I want to go department by department. Mr. Barreira: And .Mr. Chair, this will be the last piece of the general overview at which time you can invite public testimony. Good morning Honorable Chair Furfaro and Vice-Chair Yukimura and Members of the Council, Ernie Barreira, Budget and Purchasing Director, I am very pleased to be present here this morning and thank you for the opportunity to initiate and continue our vital discussions in terms of fiscal year `13 CIP budget process. The administration and the budget team did conduct a comprehensive review and evaluation of all of our current projects based on certain assumptions, and these include and incidentally, if this sounds familiar, I opened with this back in our first day of hearings but to reiterate, since we're getting into the CIP process, these assumptions included -- Mr. Chang: Excuse me, Mr. Barreira, can you do us a favor? Mr. Barreira: Sure. Mr. Chang: For the guys for us that are in the right field if you could get in the middle thank you,. Mr. Barreira: Once again the likelihood of these projects moving effectively and showing some measurable progress over the next 18-month period based on plans and proposals, as well as resources required for the project and you would see that reflected within the Mayor's Budget Message that was transmitted earlier. Secondly the importance of the project in terms of central public services, which is a mutual concern of both the administration, as well as the Council, the speed in which vitally needed capital funds could be infused into the economy in order to proactively affect jobs and investment. And lastly an analysis to ensure that only funds needed to advance the project in its current planning and/or construction phase could be allocated accordingly. This is to avoid fully funding projects and tying up money from design through construction without accurately assessing the time that will be involved for the various phases of these projects to occur. In short, the CIP funds were allocated to projects in terms of actual funds needed, to achieve completion based on all of the planning initiatives. This enabled the strategy of CIP funding reallocations to other projects based on the analysis. I am pleased to report as I did during our initial reporting to the Council, as well as during my Division of Purchasing Presentation, that there • April 19, 2012 CIP budget(cont'd)p.11 have been substantial and measurable movements in our CIP projects in terms of growth in professional services and form of procurement, by over 56% over the past two fiscal years and this form of procurement would be primarily invitation for bids for CIP construction projects. I believe this shows evidence of design and construction activities respectively. As I pointed out in my previous presentation we went from 21 to 32 to 50 formal procurement submissions, a good percentage of these having involved CIP project movements. I thank you again for opportunity to share the over view of our CIP budget strategy for fiscal year 13 and look forward to our continued efforts and partnership in delivering an effective and meaningful CIP budget, as well as our collective efforts for the overall Operational Budget. Thank you, Chair. Chair Furfaro: Thank you very much, Any questions for Mr. Barreira? No? Thank you very much. Now for the Members, and some may not have been aware of my intent today, we got the overview of the CIP program as presented this morning. And then we have from Mr. Dill a sequence of what Departments we're going to go into. But I did say at this particular time it's my intent to allow testimony on any of the CIP budget items that come up in the more detailed discussion as we go through the day. Is there anyone in the and we will follow our Council rules on testimony. Is there anyone in the audience that wishes to give testimony today on any agenda items for today? Mr. Bulatao are you here for testimony?[Inaudible] JOSE BULATAO JR., I'm here to present testimony relevant to the Kekaha HCB fund allocation. It's not with the CIP thing.Yes. Chair Furfaro: It doesn't matter? Kekaha the landfill, the actions in the landfill, is all part of all days discussion so I am opening up public testimony this morning like I have in other department. Mr. Bulatao: I understand that it is a general rule of practice. You have no idea when the HCB funding thing will be discussed? Chair Furfaro: It is not an agenda item today. The landfill is part of the review in the CIP so we can take testimony anytime on any of those items now. What specific time it comes up will be driven by the Engineering Department and not by the Council. Mr. Bulatao: Thank you, Chair Furfaro, having to prepare myself to come 26 miles into Lihu'e is a daunting task so I will take advantage of the opportunity to present my testimony at this time, so I can leave as early as possible to go home and watch "The Young and the Restless." [Laughter] Mr. Chang: When you start, can you just explain to the viewing audience your HCB. Mr. Bulatao: Most certainly. Mr. Chang: Thank you. Mr. Bulatao: I want to make clear that I'm here as a Kekaha resident and in response to Mr. Chang's inquiry about what HCB stands for, it's Host Community Benefit. And in another realm I'm connected to the HCB, but I'm here as a Kekaha resident and I want to make that perfectly clear for all of the world to know. Thank you for this opportunity to present some relevant information, which I think requires your time and your attention. I am here with the understanding that the Mayor's Budget contains the recommendation that an additional $80,000 be awarded to the Kekaha Community for the fiscal year starting July 1, 2012 and I feel this recommendation needs to be reviewed. It is my contention that the allocation amount be April 19, 2012 CIP budget(cont'd)p.12 reconsidered for a number of reasons, which include one, the increase in tipping fees has risen from $50 a ton to $90 a ton. Kekaha has received the recommended amount of$1 per ton for the past four years in spite of the increases which have already occurred. I feel this merits an adjustment. 2, Additional fees from residents is also another source of revenue to the landfill. This should be considered also. The second major thing that I wish to bring up is that the Kekaha HCBCAC, which stands for Citizens'Advisory Committee will be award another funding amount to continue its work. I believe that it's time for the consideration to have the Kekaha Community take over the responsibility and by doing so, eliminate the Kekaha HCBCAC. By doing so, it would no longer be necessary to provide a separate funding amount for a CAC to do its work. Its the Community's responsibility, as it has always been to appoint its own core group of residents, who can and should assume the roles and responsibilities of reviewing and recommending the proposals and to work with the appropriate County Departments as needed. The community group will only recommend which proposals meet the formats and requirements for approval. Why should the county provide additional funding for this work which is to review and recommend proposals, emanating from the community? The four years of experience of the present group serving in the capacity of CAC Members along with several others who have attended the meetings, provide a base of knowledge and familiarity, which were not available when we first started. The fiscal responsibility should now be absorbed by the funds available in the HCB allocation and the processes and procedures can be facilitated in-house. Under the present circumstances, if the landfill will exist at its present location until the year 2021, and that the going rate of providing funds to operate a Kekaha HCBCAC, over $1 million of additional county funding will have to be allocated for the length of time a mayor appointed CAC exists, where one was needed at the beginning. That is no longer the case. Respectfully submitted Jose Bulatao. I am open for any questions. Chair Furfaro: First of all, thank you for coming down this morning to give us testimony on this, as we go through the budget. I want to make sure that I understand a couple of points here. Point no. 1, four years ago the landfill was taking in 78,477 tons. Mr. Bulatao: Rounded out to $80,000. Chair Furfaro: And they round out to 80? Mr. Bulatao: Yes. Chair Furfaro: The good news for Solid Waste is that we're currently tracked right now to only do 70,000 tons, 791. So Solid Waste has actually made a 12.2% improvement in reducing what is going to the landfill. You're indicating that originally the fee was set at $80,000. Mr. Bulatao: At a dollar a ton. Yes. Chair Furfaro: And the tonnage charge currently has changed to $90? Mr. Bulatao: Correct. Chair Furfaro: So that is an 80% increase per ton. So you're saying and I just want to take this in for myself. You're saying so should then the fee be going up at least 80%, because the county has increased its charge, therefore, you folks should have an increase in your percentage. So the number we should be talking about from your testimony is taking that number to $127,000 a year? Mr. Bulatao: If you leave it to a $1 a ton, but at the time this consideration was made, the choice was between $1 a ton and $5 a ton. The committee that made t1 li , April 19, 2012 CIP budget (cont'd)p.13 the decision choose to chose to go with the lesser amount and realizing we were under economic straits at the time, I thought it was the right thing to do and realizing that things may have changed at least slightly in a positive way. I think an adjustment needs to be reconsidered. Chair Furfaro: But I'm just saying to understand your testimony to keep everything on a level playing field because we have incurred a larger charge per ton, you should equally get the same percentage and so that charge should now be at least $1.80 per ton, which brings up your annual contribution at roughly 70,000 tons of trash it brings it up from 80,000 it brings it up to 127,000 a year, if we just kept everything level? Mr. Bulatao: If it were at under the present circumstances and brought to the way you are bringing it at least that should be considered. If you want to be more generous than that, we would also accept that. Chair Furfaro: I just wanted to make sure that over this time, if we stay equal on the allocation and tonnage charge went up, so should the annual fee? And I think I understand at minimum keeping.. Mr. Bulatao: Yes. I just want to make this clear, that kind of decision is really in your hands, not mine. Chair Furfaro: And that fee right now, that amount right now is about$970,000. Mr. Bulatao: What currently exists now? Chair Furfaro: That is what exists. I just looked up the number. Mr. Bulatao: Yes. Chair Furfaro: And what you are also saying and I want to make sure I understand this, the $80,000 that was put in for a continued facilitator, you would like us to be thinking that the community is well enough along that you can do some of that work within the structure of the stewards that are on the committee? Mr. Bulatao: Correct. Chair Furfaro: That is what you are saying? Mr. Bulatao: Correct. Chair Furfaro: Got it. I'm clear on what those two items were. Questions for Mr. Bulatao? Go ahead. Mr. Rapozo: Thank you and thank you Mr. B for being here today. And I agree with you. I mean I agree with you 100%. The question I have is we received testimony from the CAC from Chair Place, and I would assume that you are familiar with it. Did you get a chance to read his testimony? Mr. Bulatao: No. April 19, 2012 CIP budget(cont'd)p.14 Mr. Rapozo: His testimony basically says that -- well, in addition to asking for $1 million for the allocation, he is asking for $100,000 so that-- and I'm speaking to you as a citizen. The question is coming to Mr. B as a citizen of Kekaha and not member of CAC. Mr. Bulatao: I am familiar with the figures you quoted, but not any communication directly to the Council, but that was discussed. So I want to be sure I clarify that. Mr. Rapozo: I just wanted to know your personal opinion, because it obviously conflicts what we received from the CAC, because they are asking for additional funding for $100,000 to continue the facilitation of the CAC. We can get a copy of this and I can get a copy printed and get it to you so you can read it because in there, there are also some comments from your Chair, but he did send to Council testimony, which means it becomes a public record, so I will provide it to you, but I just wanted to make sure that I got your testimony accurate in the fact that you believe at this point the controls should be turned over to the community and let the community run the program as they see fit. Mr. Bulatao: Your question is very well-taken, Mel. I want to be sure that the community or the public is aware that decisions about in-house decisions about the CAC, in the community of Kekaha will be discussed as agenda items in the May 7 meeting, which is going to take place the first week of next month so no decisions about the continuance of a CAC has been solidified. Mr. Rapozo: Then I think you might want to read this, because I think it speaks differently. Thank you very much. Mr. Bulatao: All right. Chair Furfaro: Vice-Chair Yukimura. Ms.Yukimura: Let's see, so thank you for coming 26 miles, I know you keep track of things and I appreciate that you do. How would it work if it were to be done by citizens that is by the community rather than the CAC? How is the CAC chosen? Mr. Bulatao: The CAC was chosen by Mayoral appointment. If you can recall the history of how this whole thing started at the very beginning, there was a suggestion at one point in time where Solid Waste was going to conduct an election in the community with the community and when it was brought to the council's attention at that point in time in 2007 the statement was made to solid waste, you are not in the business of coordinating elections. Unfortunately within that time, Mayor Baptiste passed away and there was an election and Bernard was elected and in the ensuing months in February, Mayoral CAC was appointed from a field of 19 applicants who submitted their willingness to serve on a CAC. Ms.Yukimura: How do you see, if it's left to the community, how would the community select the CAC? Mr. Bulatao: In my mind, it would be open house to anyone and everyone who is willing to participate in the process to get together and discuss what types of proposals are being made. But we need a group of interested and dedicated and omitted residents of Kekaha to have an opportunity to come and formulate the ways in which we will deal what is the community's concerns and interests in terms of making proposals for recommendations on how our money can be spent or allocated. April 19, 2012 CIP budget(cont'd)p.15 Ms.Yukimura: It still is like...it is called governance you know in the generic language and it is about how you would selecet the committee. You either have someone appointed or you have an election and if so who runs the election. By what rules are the selections made? Mr. Bulatao: I can go a little further now. I the work of the CAC one of our CAC members at that time came up with a proposal or a way which such an organizational task can be addressed. And we would use that as a template for organizing, for setting up the rules and regulations, and the way by which we would operate in terms of governance. Ms.Yukimura: But you see, who sets up the rules and who accepts? It's like we did a charter and people of the island voted the charter, which set our structure for governance. Mr. Bulatao: Yes. Ms.Yukimura: But who chooses the structure for governance is the question. Mr. Bulatao: We have a community organization, under which we could create another body to specifically focus on these concerns that you are bringing up. So we do have an organization that is legally recognized in terms of what the state requires of us to be a non- profit organization and we were thinking of creating a Kekaha Neighborhood Board, if you will, to focus specifically on these concerns. Ms.Yukimura: I think that is one way to go, and then the question i what if the CAC sets up a Kekaha Neighborhood Board no. 2? So it's just a question of how you make these decisions. Mr. Bulatao: And the other way, because I think your questions are very valid, JoAnn. The other way is through the existing funding and what allocations are made to the CAC between now and 2021, we would use the fundin g resources from that allocation to do the kind of financial needs that need to be addressed,e rather than having to come to the County Council to request more money to do the financial support of a Mayor-Appointed CAC. It would be a community-empowered CAC, utilizing the funds that are already there and forthcoming annually so it becomes an in house responsibility and not an additional responsibility of the County. Ms.Yukimura: So what you are saying is that the CAC would allocate some of the monies for the governance of the Kekaha Community and for an ongoing system which would have to be determined and then somehow sanctioned either by a vote or by the County if it sets up some rules. I know in Portland they have an office of community affairs that sets certain rules and guidelines for how communities can set up their neighborhood associations. Mr. Bulatao: Yes. Ms.Yukimura: To ensure equal access and proper functioning. You just kind of need that for some credibility and ability to function. Mr. Bulatao: Correct. April 19, 2012 CIP budget(cont'd)p.16 Ms.Yukimura: But there are different ways of doing it, and what I hear you saying is that the community would, through a funded facilitation process, using the funds, the host community benefits funds, figure that out and then operate. Mr. Bulatao: Yes. Ms.Yukimura: Okay. Now I haven't tracked really carefully how the decisions are made about the allocation of funds, but that is a decision of the CAC? The CAC now makes decisions about how those funds are allocated? The host community benefit? Mr. Bulatao: The CAC reviews the proposals that are submitted to that body and will do its work and then present the recommendations of the outcomes to the Mayor for final approval. Ms.Yukimura: So he does the final approval? Okay, using that system you would develop a governance system? Ms.Yukimura: Correct. Thank you. Chair Furfaro: If I may Mr. Bulatao, I am going to give what you have posted on your folks website that deals with the process of the allocation, the applications, the two-tiered and so forth, so I'm going to have this circulated. I got this off of your website. Could we get copies for all of the members? Are there any more questions for Mr. Bulatao? Go ahead, Mr. Chang? Mr. Chang: I was wondering Mr. Bulatao, our staff gave you the minutes and the discussion through your Chair Bruce Place. Should we take a recess to read that? Would you like to read that to see... Chair Furfaro: That is a new precedent that we take a recess for testimony. I don't have a problem with it, if I can get all the members to agree, but I don't want it to be set as a new precedent. Mr. Bulatao, would you let me have a moment to pan the group? Would you have a problem if we took a recess? Mr. Rapozo: I want to make one comment. I just got an email thanks to the ipad we can monitor our email but I just got an email from Bruce and it says,Aloha, he must be watching this, the testimony the Council received on the KHCBCAC was from me as the Chair and will be distributed to all CAC members and be on the next agenda as a communication. So I guess it's not testimony from it the CAC. It's from Bruce, but it looks like, as you can see it was from the CAC. So that should clarify that and that is why you haven't seen it. Chair Furfaro: Members, does anybody have a problem if I took a recess now? Ms.Yukimura: We're due a caption break? Chair Furfaro: And we'll do a caption break in that form. That is a better way to do it than setting a new precedence. We're going to take a caption break. There being no objections, the meeting was recessed at 10:17 a.m. The meeting was called back to order at 10:27 a.m. j 4.i April 19, 2012 CIP budget(cont'd)p.17 Chair Furfaro: Members, I just again want to remind us that today is CIP. Sounds like your group will have another meeting in May. I'm sure in our Public Works Committee there will be an opportunity to schedule more discussion in the near future, but for budget purposes, you have expired your time, but since we posed some questions to you, I want to see if you have any feedback on the material we gave you. So you have the floor, Mr. Bulatao. Mr. Bulatao: Thank you, Chair Furfaro. In considering the things that I said and in light of the information that was just provided me, I have some concerns as a community resident in terms of how matters continue to proceed with information being circulated, not shared with the CAC. because an indication here from the KHCBCAC budget request, set as of April 18th, which was Wednesday, yesterday, at 7:28 p.m. to the Kaua'i Council. We were not cc'd and when I say "we" I go to the fact of the matter that I serve also as the CAC Vice-Chair and I would have appreciated being cc'd on this, but I was on my computer at 6:00 this morning. I don't have a copy of this on my computer. It may be my computer is slow-moving. I'm not sure. I will go home and check and see if and when something was sent to me. But nothing was there. Chair Furfaro: I think that is a fair and reasonable request. And I will put in a separate memorandum. I came in early this morning too but I still have 102 emails that I haven't read from yesterday so, I haven't seen what you are referring to, but I will hold my judgment until I read what they said. Mr. Bulatao: And I do want to call the attention to a fact that I appreciate that Chairman Place made a reference to a meeting that took place on Monday with one of the people -- a group that had made a project proposal and there is clear reference to that. But I am also concerned about the way that meetings or that workshops, because there is a differentiation between a meeting, and a workshop, and the concern that we had about whether or not a quorum was necessary and whether a decisions would be made and those types of things would be clarified. I will close with this; the CAC has been mandated by operating under sunshine law. It has been a difficult thing for me and for a small community to have to manipulate our way through being CAC member and a community resident and the extent to which our discussions have to be very carefully monitored because of that requirement. So getting this out of the governmental side of handling may provide the community that leeway to be a little bit more open and to encourage community empowerment to become involved in the process. Chair Furfaro: Thank you very much, Mr. Bulatao for coming down today and your testimony, and I will send out a little piece of correspondence of making sure that -- and I will copy-- you are the Vice President, right? Mr. Bulatao: Vice-Chair. Chair Furfaro: Vice-Chair and Bruce the Chair I will copy as well. Thank you for coming down today. Thank you. Any testimony on Capital Improvement Projects that are covered today? If not, Mr. Dill, we're going to go right back to you. Oh, come right up. Patrick Perreira: Can I speak on the same issue? Chair Furfaro: Yes, any item that is on the CAC you can speak on. You will have to introduce yourself for the record and give you six minutes for the record. Mr. Perreira: That is too many minutes. My name is Patrick Perreira and I'm a resident of Kekaha and the reason I'm here this morning is to give testimony on the amount of money that is received as a host community benefit. Now originally the proposal was made by Mel Rapozo and Iseri-Carvalho, I think that was four years back that the community be April 19, 2012 CIP budget(cont'd)p.18 awarded a million dollars a year and this was discussed in this body and it was finally agreed that $650,000 would be awarded that year and $80,000 would be awarded after that. There were several glitches in that because where the money was put wasn't collecting interest and we brought that up and this committee again took the money and put it where we could collect interest and we thank you for that. As know, dumping rubbish on this island is a very serious business. Most landfills last about 30 years, but this landfill has been in our backyard for 59 years and will remain there for nine more years, yeah? And I think the people of Kekaha deserve a more equitable share of the rubbish- dump revenue. And I suggest that the County Council go back to that year, where the intent of the proposal was to finance the people of Kekaha $1 million a year. Dumping rubbish is a serious business. Nobody else in this Kauai Community has the rubbish dump in their backyard. They have satellite dumps and the satellite dumps truck all their rubbish to Kekaha rubbish dump. And that's my thing on this. If this was granted or anywhere near that was granted, that would take care of the facilitator and all other encumbrances expenditures that the community would require. I told the Mayor a couple of times, and I'm surprised he didn't bring it up with you guys. But, you know, you are taxing a community who has the rubbish dump in their backyard for 59 years. Okay, we all got to pay our equal share. That is understandable, you know? And if you cannot take away that tax, maybe that tax could be alleviated by a more wholesome dumping HCB. Serious business. Chair Furfaro: Pat, your testimony is well-received. And we do appreciate what the Kekaha Community has done for the Community of Kaua'i. Mr. Perreira: But they will continue doing that for nine more years and we do appreciate all of you folks running the County how it should be run, yeah? But we're asking you, we're begging you to revisit that. Thank you. Chair Furfaro: Thank Y ere you Pat. W ou the driver for Mr. Bulatao? Mr. Perreira: Yes, the taxi man. Chair Furfaro: Any more testimony here? Thank you very much to the Kekaha Community for being here today. Mr. Dill, we're going to call you up and run CIP on your schedule that you gave to all Members. You have as much as three other chairs there or two other chairs for whomever you have coming up. Mr. Barreira: : Good morning, Chair, brief follow-up, Ernie Berreira, in terms of the CIP budget one of the things that went on and I think we touched on this prior during the first day of our budget presentation is that we had reallocated $3.7 million in CIP General funds within the budget over to the bond fund, CIP bond fund. And we had used that so we could apply those savings to the operating budget challenges that we were facing. What remains in the CIP general fund is approximately $2.7 million, with all other funds for CIP now residing within the bond fund,just as a clarification. Chair Furfaro: Okay. Mr. Barreira: Thank you. Mr. Dill: Good morning again, Council Chair and for the record Larry Dill, County Engineer. Before we begin, I would like to take a moment to run through this spreadsheet that we provided to you, and show you how it ties into the CIP budget ordinance proposed for fiscal year `13. I am going to reference the cover sheet of the CIP ordinance, which shows the funding requested in the seven different funds which total at the bottom $61,797,144. So that is the budget ordinance, okay? So with that in mind, if you compare that against page, I believe it's 8 of 10 on the big spreadsheet we're looking at page 8 of 10 and comparing that to the CIP budget April 19, 2012 CIP budget(cont'd)p.19 ordinance. You can see it on the big spreadsheet we break up -- we have a total available for each project and the various funds that it's using to get to the total available for each project. At the bottom line you see the numbers for the various funds tied exactly back to the budget ordinance. So if you look in the total available on the big spreadsheet, page 8 of 10. Chair Furfaro: One question here. Mr. Kuali`i I just wanted to go back and make sure I'm looking at the right document, because I remember when we first received this, we then got something from Councilmember Nakamura because she caught some mistakes in the submission. Was the submission corrected and then resubmitted to us or should we be looking at Councilmember Nakamura's version of the document? Because total you are giving now, $61,797,144 is the total in document from Councilmember Nakamura, but in this budget submittal document, the total is $61,518,713. Mr. Dill: So the number that you have from Councilmember Nakamura is the one that we are using, that is the correct number. Mr. Kuali`i So this one from the original budget we're not using? Chair Furfaro: Now I'm confused read the bottle line please. Mr. Dill: The corrected number that we are using for total of all funds is $61,797,144? Chair Furfaro: $61,797,144? Mr. Dill: Correct. Ms.Yukimura: The cover page from mine is a floor amendment page and then the bill that was proposed by Councilmember Nakamura as an amendment to the bill that was submitted March 15th. Mr. Dill: I'm not sure of the dates, but there was a modification. Chair Furfaro: So the $61,797,144 is with the amended or modifications in it? Ms.Yukimura: Yes. Mr. Dill: Correct. Chair Furfaro: Do all Members have that document? Mr. Rapozo: No. I need a copy. Chair Furfaro: Here, take mine and make some copies, thank you, Yvette, thank you very much. I will let you continue with your narrative. Mr. Dill: I want to show the Councilmembers how that document ties into the spreadsheet. If you are okay with a five-minute recess. April 19, 2012 CIP budget(cont'd)p.20 Chair Furfaro: We'll take a five-minute recess again, but it's only five minutes. Do not stray far, people. There being no objections the meeting was recessed at 10:43 a.m. The meeting was called back to order at 10:48 a.m. Chair Furfaro: Mr. Dill we have the right draft Ordinance to everybody now. Mr. Dill: Terrific so again I'm looking at the cover page of that Ordinance which shows all the various funds, total in each fund and the total of all funds at the bottom of the number we referenced earlier $61,797,144. I'm looking at the large spreadsheet that we have given to you, date near the top there is April 18th, 2012 up at the top. page 8 of 10, and look at the bottom line of page 8 of 10. The bottom line is a summary of the previous of all eight pages there, pages 1-8 and you can see for instance we look at the bond fund total, $5217677 that ties exactly in to the CIP Ordinance. The parks number $2559222 shows the special trust fund for parks and playgrounds and again, you can follow that all the way across the various funds to get to the total that is reflected in the CIP budget Ordinance. Chair Furfaro: Let's make a note, we had discussion on this, the park fund does not roll into the CIP number? Mr. Dill: Oh, okay. Chair Furfaro: So everybody is trying to balance to what you just said but the park fund is in a trust account. Mr. Dill: And then you see we have two additional columns on the far right on the large spreadsheet, where we received some grants and non-County funds. And we add that to the total of $68 on the spreadsheet. That is not shown on the Capital Budget Ordinance because it's not County funds. So I want to make sure that we have a level of comfort that the spreadsheet reflect what is in the CIP budget Ordinance.Any questions? 2:03 Chair Furfaro: Vice-Chair Yukimura and then Councilmember Nakamura. Ms.Yukimura: So the park fund, which is your second column after bond, is that the park enhancement fund from spouting horn? Or it's the parks and playground fund? I'm sorry. Mr. Dill: There is a special trust fund for parks and playgrounds. Ms.Yukimura: I see.And the big fund that we really don't have is the park enhancement. Chair Furfaro: It only shows up in the CAFR in the audit book. Okay, Councilmember Nakamura has a question for you. Ms. Nakamura: In the column that says, "grant/SRF" does that include both state and federal funds? Mr. Dill: Yes. April 19, 2012 CIP budget(cont'd)p.21 Ms. Nakamura: Thanks for putting it in the spreadsheet, because it gives us a clearer picture of the amount of dollars that you are managing. Thank you. Chair Furfaro: You like to hear that don't you? Good job, Larry. Mr. Dill: Thank you. Okay, any other questions on what I presented so far? Chair Furfaro: No, let's roll into it. Mr. Dill: So we'll be presenting based on our spreadsheet, and that is essentially the order that we have provided to you for the schedule. What we'll be doing is on the spreadsheet you will notice we have identified in bold and with the words "proposed CIP," all areas where there are changes from previous budget ordinance to the current one. So everything else is simply a carry-forward from the previous budget ordinance, okay? So on the large spreadsheet, you will see that we have some bolded projects, and it says, "proposed CIP," so basically these are all of the changes that we're talking about. Out of those bold ones as I mentioned earlier are brought forward and summarized on pages 9 and 10. So if you look at 9 and 10 you will see all the bold projects, all proposed CIP. So this summarized all of the changes. When we go through our presentations for public works, we'll be referring to basically these projects for consideration as new inclusions or new changes to the budget. Of course we're open to any questions that you have, but we want to focus on the new changes that we're talking about and then again, of course, any questions that you have on any of the projects, we're happy to address. Okay? Mr. Bynum: Chair? If I could use one as an illustration to make sure I understand. Mr. Dill: Sure. Mr. Bynum: I'm looking at page 9, right at the beginning of highway projects. Mr. Dill: I'm sorry, which project? Mr. Bynum: Right at the beginning of"highway projects." Mr. Dill: Yes. Mr. Bynum: It says, highway projects it says "proposed CIP Aliamanu Road erosion minus $3 million." Mr. Dill: Correct. Mr. Bynum: The next one, so basically it tells me that what used to be $3 million for that is now $3 million for these three projects? Mr. Dill: That is correct. Mr. Bynum: Okay. Thank you. April 19, 2012 CIP budget(cont'd)p.22 Chair Furfaro: Okay. Mr. Dill, since you have launched us on this new format for the next three years, you also know that means you can't leave. Okay, please get Y , Y Y Y� p ge us started. Mr. Dill: Okay. No comment. So as our first set of projects, the wastewater project for the Wastewater Division, I will turn it over to Ed Tschupp the Chief of the Wastewater Division. Waste Water Division EDWARD TSCHUPP: Good morning, for the record Edward Tschupp Chief Wastewater Division and thank you for your attention on our proposed CIP. As Mr. Dill just identified you will note that the vast majority of what is on this table in the divisional funding is carry over projects from prior years and there is only one bold item, which would be the proposed CIP of facilities reserve. That is a sewer trust fund, and it has been our desire over the years to have a facilities reserve account that had funding in it, in the event that we have some kind of good-sized problem that we immediately have to deal with. We do try to deal with thing as they come up out of operational funding. If we have any funding that we can put to something out of our operations, but then if something big happens, then it is very prudent to be able to have a source of funding that we can apply. We have tried to maintain that at a level of about $1 million and so this year, over the last year, we specifically the project that came up was the recoding and repair of the force mainline on the Wailua Bridge that because the Highway Department was doing all of that work on the Wailua Bridge, we looked at the pipe strapping and hangers and were concerned that they needed some work. So we put money to that project, and now we're essentially asking to bring that fund balance back up to the $1 million. Mr. Dill: If I May, to help clarify, also introducing to you another spreadsheet that we provided. This one is titled "CIP Recap." and you have that in your binders as well. It is dated April 11th, 2012. What this CIP recap does very broadly is that it shows the CIP budget appropriations for fiscal year `12 and shows what happened between there and what we're requesting for fiscal year `13. The reason I bring it up to you, because if you look at the line item we are speaking about the (inaudible) reserve sewer trust fund fiscal year 12, we had a little over a million dollars. We had an expenditure from that account and we're requesting to make that account whole again, basically to the level we like to keep it at for these sorts of projects. Chair Furfaro: Mr. Bynum? Mr. Bynum: I think I'm getting there, because on this big spreadsheet, it says, "559," and total$1 million? Mr. Dill: Correct. Mr. Bynum: But there is no column that says where the other 559,159 comes from and then I got to go to this spreadsheet right? Mr. Dill: Where? Mr. Bynum: On the big spreadsheet, the item we just talked about shows $559,159 and the far right the total is $1 million. Mr. Dill: Correct. Oh, I see what you are saying. Mr. Bynum: There is no column that tells me where that additional money is coming from. April 19, 2012 CIP budget(cont'd)p.23 Mr. Dill: You are saying the difference between the $559 and the $1 million,? Mr. Bynum: That's the 44841?. I see okay. Mr. Dill: So the 440 is the current balance in that account. Chair Furfaro: Mr. Bynum, are you okay with that? Mr. Bynum: Thank you. Chair Furfaro: I just want to make sure I'm hearing you right. It is the desire of engineering to hold that as we go forward, around $1 million, is that right? Mr. Dill: Correct. Chair Furfaro: Okay, Vice-Chair Yukimura. Ms.Yukimura: I think it's very commendable. It's like our discussions about a reserve for the whole budget, the whole county budget. It's like the hurricane reserve that the state is talking about. So my question is when you use that money for the Wailua project, did we do an appropriation bill to move the money or is it a decision that you make? Who makes the decision how the reserve monies are used? Mr. Tschupp: In that case, because it was an intergovernmental agreement between the county and the state department of transportation, essentially we went through the director of finance and requested use of those funds, which he then approved. So it didn't, in that case, it did not come back to Council specifically. Ms.Yukimura: And there is a provision in our law that specifies how that is done? CLINT SAIKI: Clint Saiki Public Works Fiscal, one of the reasons we did request this facility reserve was to expedite response to emergencies when we have capacity issues with our aging infrastructure. And it would help us respond to the emergency faster. That is the reason why we set this fund up. Of course, we would be reporting to you on a regular basis, when we do reflect expenditures during the budget process. Ms.Yukimura: So the report back is during the budget process? Mr. Saiki: At this time, unless the Council requests something different in a proviso, we could definitely report it on a more frequent basis. Chair Furfaro: Well I think we have to be very careful with Wastewater, because if we have a spill, especially one outside of the plant, immediately we're in the fine circle with EPA. So the reality is that we do want you to respond quickly. Mr. Bynum, you have the floor. Ms.Yukimura: I wasn't finished. I'm Chair Furfaro: I'm sorry. April 19, 2012 CIP budget(cont'd)p.24 Ms.Yukimura: I totally agree with what the chair said. I don't mind that the reserve fund is used when it needs to be used and I do recognize in the case of sewer. So it's like the $5,000, I think, that we set aside for disaster that the mayor has immediate access to. $50,000 that is in the same nature. Mr. Tschupp: Fundamentally, if there is an emergency, it would come to the director of finance for an emergency approval to go out and procure something, and an emergency declaration under that process fundamentally, there isn't time to come to council for that type of funding so if we need to come back with a money bill later or whatever that would be the Yp g Y normal process. Ms.Yukimura: Thank you Chair Furfaro: Mr. Bynum, you have the floor. Mr. Bynum: And this facilities reserve fund has existed for a long time? Mr. Saiki: We have established that fund about two years ago, I believe. Mr. Bynum: So last year there was significant expenditure. I get it. And there are other reserve funds that the administration can use at their discretion in this CIP? Mr. Saiki: Not that I'm aware of. There is a project contingency, that is similar in nature, but that fund requires us to come back to this body before we expend funds. Mr. Bynum: I trust that Ed needs $1 million before coming over here and I'm sure it will be used well and you will have to tell us about at least at budget. Thank you. Chair Furfaro: Mr. Rapozo, you have the floor. Mr. Rapozo: Thank you, I just want to expand a little more on Councilmember Yukimura's question, because I agree that, that fund should be setup that way and I think the question Councilmember Yukimura asked was where was that authority and if it exists and if not, we definitely need to put in a proviso. I completely agree you should have that complete authority to expend that funds down in case of emergency, but I want to make sure that within the bounds of the charter and the law and if, in fact, we need to create that proviso, we can do so, because I'm not aware of any expenditure of funds in an account like this that would not require Council approval. So I'm not sure what separate authority exists and if, so we need to know to create that proviso in this budget Ordinance. Chair Furfaro: For the clerk, I hope you heard those comments. I remember after that big rains that we had several years ago, and we had some problems at Lydgate, I think this was a consequence of making sure that money was available. The request is to make sure that the appropriate verbiage is in a proviso for the budget. Vice-Chair Yukimura. Ms.Yukimura: Yes, I think that request will be made and I just wrote it down, too. It might be good to have you report back within 60 days though of the expenditures, just as a matter of practice. So we'll just take a look at that enabling document. Okay, thank you. April 19, 2012 CIP budget(cont'd)p.25 Chair Furfaro: Ed, you have the floor if you have more to your presentation. If not, I will ask questions from members. Mr. Tschupp: No, the focus is primarily on the new requests. Chair Furfaro: Okay. So as you know, we're confirming what we heard, $1 million in reserves and we're going to look to build a proviso and on that note, Mr. Rapozo you have the floor. Mr. Rapozo: Okay. I think you know what I'm going to ask about Cocoa Palms. The first item. I know I got excited when I saw it on the top, because I figured priority, but then as Councilmember Nakamura and I discussed it's in alphabetical order. So where are we on that project? I saw the PID and I see it 6 months after consultant blah blah, is that something that is going to happen this year. Mr. Tschupp: I have recommendation for a contractor award for the design services into the Director of Finance for that project right now. Mr. Rapozo: Beautiful. And the only other thing is on -- this is really minor, but I think I just want to make sure one of these figures were off a dollar. I'm trying to figure out which one it was now. I'm not sure if these spreadsheets are merged together in one big program, which is individually done. But anyway, I guess I missed it. You can go on, Mr. Chair, I will find it and give it to them offline. Chair Furfaro: Joann. Ms.Yukimura: (inaudible) with this money of $350,000, which is in the existing CIP and I'm looking at your project initiation document, do you expect you will solve the problem? Mr. Tschupp: Well, that remains to be seen. I am hopeful, because we have done some preliminary development work on systems that appear to be pretty effective. We are working with the consultant that we're just about to bring on board to identify what looks like a pretty good system that might be able to be solved within this budgetary allocation. It's a little premature at this time to determine whether or not the funds will be adequate. But preliminary indications are that that May be adequate, maybe? Ms. Yukimura: Do you know the source of the problem? Was it a design problem or just the fact that the facility is very old? Mr. Tschupp: There is a fair amount of complexity to an odor- related problem. The simple statement that I can provide is that the sewer system coming down from Kapa'a has some significant residency time between the pump station -- it's a long system and a pretty big pipe and there is residency time of the sewage moving through that it goes septic and that is where you get h2s type odor problems developing. If we had a lot more water going through the system, we would have fewer problems. But it's the geometry and layout of the rather extended sewer system that shows up as an odor problem at that location. Ms.Yukimura: Well, you know, we have been looking at development around Mahelona and when we do the Kapa'a-Wailua Community Development Plan, there will be all of these issues of growth. If the system is going to feed into that line, that is the mainline; right? Mr. Tschupp: Correct? April 19, 2012 CIP budget(cont'd)p.26 Ms.Yukimura: Coming from the far ends of Kawaihau into Wailua, is more volume going to help or are we going to have a problem that -- are we going to have a bigger program? Mr. Tschupp: I think more volume would help. More volume would mean that pumps would be pushing more water through the system and it would come through faster. Ms.Yukimura: All right. So those pipes are pretty old. Some of them were installed during my time as Mayor. I mean, are we aware of the quality and the aging of those pipes, so that they are pretty good and can handle increased volumes? Mr. Tschupp: The size is plenty adequate. Ms.Yukimura: That is good. Mr.Tschupp: But the mainline coming down from Kapa'a I believe was installed in the '90s, so relative to the age of pipes, that is not terribly old. We can't see it, because it's buried. Ms.Yukimura: There must be a way to test the functionality of pipes that are 10 or 20 years old. Are you doing that to anticipate when you have to do repair or replacement like water must have done that at some point? Or to you just judge by leaks? Mr. Tschupp: That is what is known as a "force main," it is a pumping system, so like the Department of Water pipes, it's pressurized all the time. We have got cameras to video the gravity lines, but we can't readily video that line. We do have the program of inspection of our manholes and gravity lines. We try to keep up with that pretty aggressively. Chair Furfaro: Can you come back when we're closer to the bids? Because understanding the sewer, whether it's the pressurized line or gravvity-fed line or the level of bouquet that comes out of it should be something that you can report back to us when we understand how the project bid went. Ms.Yukimura: I will ask a question in writing. Mr. Tschupp: Okay. Chair Furfaro: I'm not asking for the question in writing. I'm asking him if he will be prepared to come back to us to discuss this item. Mr. Tschupp: I certainly can come back to discuss it at some point of convenience. Chair Furfaro: Councilmember Nakamura? Ms. Nakamura: Thank you, Ed. I wanted to make a suggestion. This is really more departmental-wise. I think that this CIP recap document to me is really helpful but I think it would be helpful also to organization the projects in a different way, because right now it's shown alphabetically and the way I think it's helpful for decision-makers is to show projects that approaching completion or completed. It would explain why some of the numbers in here like $299 April 19, 2012 CIP budget (cont'd)p.27 for Hanapepe-`Ele`ele or Waimea Wastewater $6,000 that explains why it is so low because you are on the tail-end of the project? Mr. Tschupp: We have a few special district trust funds. And that is a constant thing that I almost have a routine answer that is a fund; that is not an actual project. So the origin and history of some of those regional trust funds I'm not even sure of. I would have to defer to the Director of Finance. Ms. Nakamura: Then maybe we should revert to the format used by the Housing Department, because they use state and federal funds for a lot of their projects so we can see the different sources of funds that go into these projects, but maybe's it's somewhere else. Mr. Dill: Councilmember Nakamura on the large spreadsheet we provided shows how the projects are funded by fund and if this are any outside funds, grants or SRF, it's shown in the right-hand corner. Ms.Yukimura: The County funds he is talking about. Ms. Nakamura: You are talking about -- well, I'm not sure if this captures what Ed is talking about. Because all it is showing is one outside grant for the Waimea Wastewater Treatment Plant. Mr. Tschupp: That is the only active one we have right now. Mr. Dill: That is the only active one we have at the moment. Ms. Nakamura: Oh, that is the only outside fund? Mr. Tschupp: In Wastewater there are a couple of interim agreements that we will be getting SRF funding on. One of them is for Wailua Treatment Plant Project. Mr. Dill: We don't show those until the y are actually executed y and then we include them in this presentation. Ms. Nakamura: Okay. So if we could show projects approaching completion or complete, the ongoing projects and then the new projects in those different categories. That would give us a better sense of what your priorities are.And Mr. Tschupp: And I would also suggest that would give you a better understanding of the project execution looking through the projects that are in here and if you where to compare it to last year for example `Ele'ele Wastewater Treatment improvements and renovation last year was a much bigger number and that project is under construction at 95% complete and this $62,000 shown on the spreadsheet as bond funds is the residual remaining funding for a project that is at 95% complete. Ms. Nakamura: Right. So that is just a request for in the future and also I think it would be helpful, not so much with this set of projects, but some of the others that because we're doing the first phase and design phase and still don't know the long term capital cost are going to be construction costs and we also have another column that shows the future construction cost needs are, which will help in capital improvement planning, just overall planning for the future and maybe that is tied into the CIP process, but I think it would be a helpful tool to have. Since some of them are just in the design phase. Ed, this is a question that has to do with April 19, 2012 CIP budget (cont'd)p.28 these improvements that you are showing, a lot of them are maintenance. Do some of them increase capacity as well? Mr. Tschupp: Some of them increase capacity and some are maintenance. Going through the list, I would characterize Cocoa Palms as maintenance type activity and `Ele'ele's current phase is maintenance, but the next phase will be some capacity increases. The laboratory renovation is maintenance. The expansion project is clearly capacity- building. So it's a mixed bag. Ms. Nakamura: Thank you. Chair Furfaro: Before I recognize Mr. Bynum, for Wally, he is in the audience and Ed and Larry I do want to let you know as I pointed the question out about the reporting on any emergency funds the proviso exists in the budget and you have ten days from procurement to report to the council through the Finance Director. That proviso exists. Mr. Bynum. Mr. Bynum: Hi, Ed. I'm going start with a comment and I have one question and I think I'll be real quick. At Kinipopo Shopping Center Which is near the Cocoa Palms Lift Station, there is almost constantly odor in the street from the manhole there. I have talked to you almost every year for five years. There is a bakery there and a place get your haircut and a Mexican restaurant and it almost constantly has odor from the manhole right there. Is there anything that we can do about it or are we just going to live with that forever? Mr. Tschupp: Well that I view that as part of the scope of the evaluation that we're doing the design work that we're just in the process of awarding to the consultant. There is a pretty small sewer system in that shopping center. It's surrounded on both sides by sewer system. It's a small gravity system and it is all, in my mind, part and parcel of solving the problem at Cocoa Palms pump station on the other side of the highway is probably the same solution that goes into effect over there. So we May end up seeing how it works at Cocoa Palms and then that same solution across the street. Mr. Bynum: So I can tell the owners of the bakery there that their customers are just going to smell that odor at least for the next couple of years. Mr. Tschupp: I think that if a lot of what is going on at the pump station is certainly contributing to the air quality in that general area, so if we can solve the pump station we both A) know that the technology works and that the solution is good anything that we do at the pump station will also help across the street. Mr. Bynum: This is the project we talked about three years ago or more about putting bugs in the system and before it gets to the treatment plant? Mr. Tschupp: No, we are actually looking at a different technical solution than that. That one -- Mr. Bynum: So there might be some relieve in ten months? 18 months? Mr. Tschupp: Yes. Mr. Bynum: 10 months? I will check in with you. The other question, Waimea funds are all expended. Congratulations on a really good project there, but then April 19, 2012 CIP budget(cont'd)p.29 there is a second line item of state revolving funds of$99,000. Is that because there is some more to do there or will that $99,000 just stay there or go somewhere else? Mr. Tschupp: I think that is a remaining balance of the SRF funding allocation. Mr. Bynum: So what happens to that remaining balance? Mr. Tschupp: Well we're still under construction on the SRF portion. So there is contingency funding. Mr. Bynum: Thank you very much. Chair Furfaro: Okay, Members I want to share with you, we have 9:30-4:30 today. We are on Wastewater and we still have solid waste to go, engineering, automotive, highways, building, parks, housing and economic development. Do we have budget questions right now for the Wastewater Division? Go ahead, Mr. Kuali`i. Mr. Kuali`i Thank you, Mr. Chair. I think that when we get bogged down in the minutia of specific projects that is where we spend too much time. For me this division is presenting the one item, the facilities reserved that is the change and I just want to have a sense of the rest of the stuff that you are saying that remains the same. I have the same request that Councilmember Nakamura has is that if this was formatted with more meaningful information than I would have what I need. That specifically means with all of these other projects, basic detail like you have the project name, who is the project manager or lead? When was the project started when it is expected to be finished? If it's not started, when is it expected to start? So the estimated start and estimated end. The amount of monies that you started with, how much has been expended so far and what the balance is? Just some of that basic information, so that I can track not only the approvals of monies going forward, but how the project's timeline is and what the project's budget schedule is as far as what was spent. And if this Cocoa Palms, $350,000 no change, $350,000. Does that mean -- and if it's maintenance, does that mean is that what we spend every year? Or does that mean something from last year that wasn't spent at all and we expect to spend next year to get the project going next year? Is that what it means, the latter? Mr. Dill: This is a capital budget request, so any operating requests are made in the operating budget. So this wouldn't be a recurring request for every year (inaudible). That would show up in the operating budget. Mr. Kuali`i But was this $350,000 requested last year and nothing was done it so you are requesting it again this year? Mr. Dill: Yes, as I mentioned earlier all of these items that are not bold are carryovers from last year. We provided in the spreadsheet with the same information, project managers, and estimates start and end dates. Mr. Kuali`i What spreadsheet? Mr. Dill: This was provided to you back in February from a request made to us. Mr. Kuali`i That is tied to us that we're looking at today the dollars and cents? April 19, 2012 CIP budget(cont'd)p.30 Mr. Dill: There would be updates dollar wise? Mr. Kuali`i: If we got that in February, can I get a copy of that? Chair Furfaro: Larry, just to make sure, when we go through this particular project book, WW which stands for "wastewater." you turn to the project page, the PID. it gives you the summary and project scope, the exclusion from the scope, the deliverables, the expected dates, what was executed? So I think I just want to reiterate to all of the members that we'll go through these pieces. Make sure you go to the WW facing up, because these are documents that we have had recently. And if you read the other way, it doesn't stand for any Mikey Mouse kind of deals, okay? It's WW. It covers the scope, the background, the purpose and objective and so forth. and that is what you should lead members to, okay? Please take advantage of the material answering these questions because they are extremely important to Councilmembers, I think Mr. Kuali`i is making that point. Mr. Kuali`i: I didn't finish making my point. Chair Furfaro: Yeah, I'll give you the floor back but I want to make sure we all understood before we got tied up. Use your project management books, too, they answer a lot of questions.You have the floor, Mr. Kuali`i. Mr. Kuali`i: Thank you, Mr. Chair. The only thing I'm saying is that maybe this is what we have to look forward to when we have a more comprehensive software system, you know, going forward? But yeah, the PIDs are all there, and you know, you are putting how many projects before us? Many, and the each PID averages 3-5 pages and there is all the detail there, but in summary form in one report, like you have done with this, would be very helpful. And I'm sure you have it and there is a way to generate it and it report it and if not, in the new software, hopefully there is. Thank you. Mr. Dill: With the new software, there will be a lot more utility. We can customize reports. Chair Furfaro: On that note, I want to make sure I was making reference to these project books for the members if they exist and at same time I want to remind them that the PID documents are confidential, because they could give us exposure on bid practices. So keep that in mind as well. Okay? Mr. Kuali`i: Thank you, chair. Chair Furfaro: You are welcome. Anymore for Wastewater? Ed, we're going to call you back on some of the questions raised by Vice-Chair Yukimura, as well as Councilmember Nakamura and Rapozo on the update of the lift station that is going to get some attention soon. Okay? Mr. Dill, who is next? Mr. Dill: Solid Waste. Chair Furfaro: Ed, thank you very much. Troy if you can start by introducing yourself. Solid Waste TROY TANIGAWA: Thank you, Council Chair, Troy Tanigawa, Division of Solid Waste Management for the record. April 19, 2012 CIP budget(cont'd)p.31 Chair Furfaro: Do you have a Power Point? I don't have to move? Okay. Mr. Tanigawa: I am referring to a spreadsheet page 1 of the spreadsheet shows Solid Waste projects about two-thirds the weigh down. Under bold text the first item new landfill and resource recovery park development/acquisition that appropriation is remaining balance for I guess our development process. Right now we're in the planning stage. We have consulting contract out now for development of the environmental impact statement to satisfy Hawai'i Revised Statutes 34-3, environmental review process. We are a ways into the project. The consultant has completed the initial phase and we're about to move into the actual development or steps that will lead to the development of the EIS document, more specifically, about to be scheduling public scoping meetings in different communities on the island. The next item is Kekaha landfill lateral expansion cell 2, construction. This is a new item we're requesting this year specifically the amount shown $8 million are for construction of the cell 2 base liner, as well as other infrastructure improvements to be able to certify and permit cell 2. The next item, Kapa'a Refuse Transfer Station reconstruction plans and design, that item for this year is being zeroed out. We're actually using some funds from that for the next item NPS compliance plans and design. We're actually going to be putting as a higher priority some improvements at two facilities to help us protect the facilities better and help us comply with storm water discharge requirements, as well as industrial discharge from those facilities on a regular basis. And now I will open it up to questions. Chair Furfaro: Okay Mr. Bynum then Vice-Chair are you next, is your mic on for questions? So you will be after Mr. Bynum. Mr. Bynum: I want to use this as an example, so I was quite surprised to see the Kapa'a Refuse Transfer Station zeroed out. When I refer to the PID, there is a deliverable timeline in the PID so am I to assume that none of these things have occurred? Mr. Tanigawa: Correct. Mr. Bynum: And so this is just fundamental stuff and if I'm wrong, please correct me, but we identified this Kapa'a Transfer Station as a priority. We funded it. I sit here with the assumption that those plans are moving forward and I can access the PID that tells me that we're going to secure an engineering consultant to plan and design construction in December of 2009. That hasn't happened? Mr. Tanigawa: No. Mr. Bynum: And that is just a total breakdown of this information. I learned today in essence that this project I thought was beginning construction in July of 20... complete construction mark 2012. So I have been aware of this as a priority since 2009. And if I consult the documents that are available to me, I'm anticipating the blessing of the new transfer station last month and I discover this morning that no, this isn't a priority after all. We haven't done any of the things that these documents said and we don't intend to at least in the near future, at least in the next fiscal year. We're not even going to begin this project. I think this clearly illustrates my five-year frustration with not having a handle on management of CIP. So I am disappointed. It's like people in Kapa'a and the Council is not the constituency. The constituency is the citizens who watch these meetings and assume when funding gets made and commitments get made and documents that that is what we're doing. I think this is a great example of...it's news to me today we have abandoned that as a priority. Mr. Dill: Saying that we abandoned it as a priority is not accurate because... April 19, 2012 CIP budget (cont'd)p.32 Chair Furfaro: Excuse me, Larry, I want to add to . Tell us why it's been delayed, okay? For somebody like myself who goes with the administration to borrow money for capital plans and so forth. Now granted, about 65% of our time is directed at proving that we have a good balance sheet and we have got revenue to pay the bond and so forth, but some of the projects that we put in the bonds get changed periodically. I guess the piece that we would all like to know and I didn't hear Mr. Bynum ask it, but I am sure he was getting to it was why? Why? What has changed? Mr. Tanigawa: Thank you, Councilmember Bynum and Council Chair. To address the question directly, since the time the funds were initially appropriated, direction on the project has changed and more recently to more of an extent, because sitting of the landfill was the primary reason for this project being put on hold. There was a suggestion that potentially this development could go on into creating and expending funds for a newly refurbished facility in an area that quite possibly this facility could have been displaced by the landfill. So since the time the funds were appropriated, the priority shifted on the development of this facility. And now there is a higher priority with the current facility to construct improvements to manage properly storm water and daily discharge while this landfill process, this sitting and identification process is ongoing. Until we come up with a firm site for the landfill. At that point in time, I think better decisions can be made on extending funds to improve facilities like this one. In the meantime, we're just going to look at making sure that we have sound facilities and capabilities at the site to ensure regulatory compliance. Mr. Bynum: So I just want to follow-up on this and I don't mean to beat a dead horse, but it's news to me today that this priority changed. We have gone through a couple of budgets where the money was in there so and then I say hey, I want to have real time updates on the status of these projects? Oh, consult the PID. So I do because that is what I have; right? And so in my mind, you guys -- well, not Larry, you probably don't remember, but this was a big political football, the Kapa'a refuse transfer station had illegal dumping happening. It was terrible. I mean, you see the pictures from that era, it was trash and an issue at this council for months. And finally the synergy got there and vast improvements happened. Fencing went up and the area got cleaned up and it's been looking pretty good ever since, Troy, yeah? There were problems with oil and EPA fines and the community said hey, we would like to recycle there and we could like to do this. So that is what I remember saying okay, let's put some county resources and redo the Kapa'a transfer station right in the middle of the heart of our highest concentration of citizens. Good news we got it cleaned up, and operations improved where it's not something that you are embarrassed by when you drive by, and so kudos for that because it has been every time I go up there, it's been in good shape. So I don't know how we resolve this. Hopefully the software will do that. Maybe we need a quarterly Solid Waste updates and just go down the list. Have priorities changed on this project? Have priorities changed? Because I really thought we would see construction up there soon, because that is what the PID tells me. You don't see all of the planning and the consulting and stuff that goes in and for those of us to have the PID is 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 timeline landmarks. Okay, I'm done. Chair Furfaro: Vice-Chair Yukimura and then Mr. Chang. Ms.Yukimura: I'm trying to understand the reasoning. Are you saying that because we're going to have a new landfill, maybe in Kapaia, we won't need a Kapa'a transfer station? Mr. Tanigawa: The site identification process is not completed yet and... April 19, 2012 CIP budget(cont'd)p.33 Ms.Yukimura: What does it have to do with the Kapa'a Transfer Station and whether you are upgrading it or not? On top of that, why is there no PID for the new landfill? Mr. Tanigawa: It was identified in integrated Solid Waste Management Plan that certain facilities could be discontinued with the sitting of a new landfill. If you look-- Ms.Yukimura: So the answer to my question is yes. We might not need a Kapa'a transfer station if we have a new landfill. Mr. Tanigawa: Depending on where the landfill is located. Ms.Yukimura: If it's located in Kapaia. Mr. Tanigawa: There are eight potential sites and one of the potential sites is located in the Kumukumu area. Just outside of Kealia.. Ms.Yukimura: And how likely is ... and so is the fact that we might not have a Kapa'a transfer station because we might have the landfill in Kumukumu? Mr. Dill: Yes, that is correct. Ms.Yukimura: And if we have it in Kapaia, will we need a Kapa'a transfer station? Mr. Dill: Likely, we will. Ms.Yukimura: And we're going delay until we make the decision. We're going to delay whether or not we spend money on the Kapa'a transfer station? Mr. Dill: Yes. Ms.Yukimura: Okay. That is what we want, a clear answer, okay? And that is the problem of not having sited our landfill for the last 20 years. That everything else gets hung up. Mr. Dill: I agree with you. Ms.Yukimura: So then what...and you know what this is a planning problem. It's not a software problem and having new software is not going to solve the problems that are coming up now. So the new landfill resource recovery park acquisition, that you are misusing $1 million from, where is the PID for the new landfill resource recovery park am I missing something? Mr. Tabata: No. 2. Lyle Tabata, for the record, Deputy Engineer. It's the second PID in the packet under"solid waste" Ms. Yukimura: I don't have it. The second one is construction of Kekaha landfill lateral expansion. I only have four PIDs Kekaha landfill closure 2, Kekaha lateral expansion. Mr. Tabata: I'm sorry, apparently it was inadvertently left out and one is being re-duplicated. April 19, 2012 CIP budget(cont'd)p.34 Chair Furfaro: It is being processed right now. Let me ask Members, when we go into different Divisions, let's focus on one project rather than jump from project to project then go to the next and so on. Larry, I really appreciate your comments as simply no, we haven't done that is fine, then let's move to the next one. But I'm going to ask Members to kind of stay focused and one project at a time that we can keep it off the checklist. Councilmember Yukimura, is that okay with you?You still have the floor? Ms.Yukimura: So what you are saying is that we're on the Kapa'a refuse transfer station and I have finished my questions on that, I think. Chair Furfaro: Okay, I will give the floor to Mr. Chang and then Mr. Rapozo? Mr. Chang: You know I think I'm going to pass, but can I make a fast comment, Mr. Chair? Chair Furfaro: A fast one? Go ahead. Mr. Chang: I will try to make a fast comment. I just want to say that I will agree with Councilmember Bynum and the reason that I say that is as I go down stream, I see a lot of other projects that have been zeroed out, many of which are very important for the community and my only concern is that I don't even think that a lot of the community members might know of projects that is getting zeroed out and it has been true and dear for them for years, and I am not going to mention the projects because I feel bad because I have been on the Council for three years and those were priorities then and priorities prior to me getting on. So I wanted to make a comment regarding that, because I don't know if the public was even informed that the projects that they have been monitoring for many, many years are now being zeroed out. That is the comment I wanted to make. Chair Furfaro: I'm going to add to your comment. Please, for administrative department heads and so forth, please understand we negotiated with the Mayor the opportunity for lack of any other term, I'm going to call it "key customers." Solid Waste, Mr. Rapozo is your key customer. You should find time to have a cup of tea, coffee, or cocoa, whatever he drinks at least once in awhile. It's really important. Councilmember Nakamura is the key customer for planning. Okay? George Costa, his key customer is Dickie Chang. You know? Because information is important for the body here and if I know you are engaged with your key customer, we can resolve a lot of this, so let's try and do that, Troy, if you can. Call up Mr. Rapozo and see if we can have a cup of coffee. Mr. Dill, you had your hand up, go ahead, you have the floor. Mr. Dill: Just in response to Councilmember Chang's comments. It's true that we show funding zeroed out for several projects here and that could be for a couple of reasons. One would be reflection of the completion of the project and also, other reasons are because we have not"abandoned" those projects but we are deferring them to a future fiscal year. So please don't take it that because we are moving from this fiscal year that we don't fully intend to do that project... Chair Furfaro: No more dialog on that. The floor was given to Mr. Rapozo he let me intercede about key customers so you have the floor. Okay you got your answer Dickie? Mr. Chang: Yes sir. April 19, 2012 CIP budget(cont'd)p.35 Mr. Rapozo: Thank you and just for the chair and everybody's information, Mr. Dill we do have a standing meeting every month with Lyle and its actually they don't buy my coffee, but we meet. Chair Furfaro: Shame on them. Mr. Rapozo: We meet here and we offer them coffee. It is a very productive opportunity, the challenges and this is tied back to the Kapa'a Refuse Station, we don't know what we don't know. The question I have regarding the Kapa'a Transfer Station is when we look at the PID, and when this Council and I believe I was on the council when we first appropriated the funds. When you look at a couple of things that I look at and it's really what is the need, the risk, and in section 2 under the business case, the projects benefits really is to be in compliance with state law, but the more important concern is when you go to the next page under cost-benefit analysis, it says inaction will expose the County to liabilities as follows, fines and citations for violations to existing permits from department of health and EPA, unsanitary, unhealthy environmental conditions, environmental pollution, and potential demoralization of the public due to a perception that the government is indifferent to the public's needs and so forth. My question is there was inaction so are we exposed to those liabilities that were defined in the PID back in 2009. Just ironically the one you just passed out regarding the cite and construct a new municipal solid waste landfill the cost benefit analyses is identical.. It is exactly the same so I am assuming this is standard but my concerns are we exposed because we have not acted on this project? Mr. Tanigawa: You know, to a large extent, conditions at site have been greatly improved because we have instituted regular inspections and those inspections generate documents that we're able to distribute and follow-up on to the various responsible positions in the county. Secondly, the improvements that I indicated in this other CIP item, in PDS compliance, plans and design that effort will largely address concerns at the Kapa'a Transfer Station. Kapa'a Transfer Station is one of the facilities that we plan to address in other words with that PDS project. The other part of the Kapa'a Refuse Transfer Station, the former proposed project was that we're looking at expanding services. So in expanding services, we would also include putting in place measures for those new areas to address the similar problems that we're looking at just for a mixed waste portion right now, so to answer your question we addressing the immediate concerns. Mr. Rapozo: The real questions are, are we in compliance? Have we received any violations from EPA or department of health? Mr. Tanigawa: We have received some letters from the department of health indicating that there are some potential violations. Mr. Rapozo: At Kapa'a? Mr. Tanigawa: At Kapa'a. We addressed them and we're continuing on an ongoing basis to pay more attention to those things, to keep us in compliance. Mr. Rapozo: Okay. Mr. Tanigawa: The other thing about these improvements that we're looking at, it will make it a lot easier for us and provide assurances that we'll maintain compliance. Mr. Rapozo: And that is my concern. Believe me, if things change, plans change, I am not going to sit here and micromanage and say, hey, you guys should have, would have, whatever but I think because of the constituents that Mr. Bynum talked about that we assure that we're going get one redevelop Kapa'a Transfer Station. That if we could be informed and Larry, April 19, 2012 CIP budget(cont'd)p.36 when we meet in our meetings, you can give me an update that I can pass on that probably would benefit us, because obviously we don't know. We don't keep track of this stuff. Mr. Tabata: That is right, Councilmember, that is why we refocused that whole facility to what we identify as the problem area, and that is why the consequent submittal of this PID now for the NPDS compliance Mr. Rapozo: Right and I notice and I really like the way you put on this chart the c, the d, the r, so we can... if it's a relocated project or combined project and maybe that would have qualified for a combined project that ... I don't know, I'm just ... because I understand where you guys are going with this and I think we leave it to your expertise to decide what is best for that facility and I think the NPDES they should have pick and acronym that you could say -- I think it would cover a lot of issues that are going on Kapa'a and I see the funding. So we should be okay.As long as we have a handle on those -- we got the letters and we have addressed them? We haven't had any fines? Okay. Thank you very much. Chair Furfaro: So we're very clear, we have had letters, as Mr. Rapozo said, but we haven't had any citations? Mr. Tanigawa: Correct, Chair. Chair Furfaro: questions. Does anyone have anymore uestions about Y Y Y Kapa'a? Councilwoman Nakamura and then Mr. Bynum? Ms. Nakamura: Just because the deliverables have now changed, will this PID be amended? Mr. Rapozo: I think they we should just remove it. Ms. Nakamura: Because right now you are showing project completion date of March, 2012. ( Mr. Tanigawa: We'll take that back and see what we need to do to make it more current. Ms. Nakamura: I noticed that some of these PIDs provide a lot of rich detail on completion dates and some are empty. So we'll point some of those out in the written correspondence, but it seems like that is important that is going to need to go into the software. So we can get this really great software, but if we don't have good data or accurate data plugged in, we're not going to have really quality results. So that is why,just kind of urge you to look at some of those dates, because some of them are blank. Thank you. Chair Furfaro: Mr. Bynum? Mr. Bynum: NPDES I know it is National Pollution Elimination Systems so I don't know where the D came from. Discharge. So this is a PID, this is a new one and I have been able to see that the format has changed a little bit, like this one has a drafted date and the older ones don't right. They don't have like a start date. This is one I can count on now, right? This is an active one, this is the timeline it says the first item is funding 7/12, that is right when we're going to have a new budget; right? So this is a new PID; right? And something that we have to do to avoid those fines, and back to the software discussion, 25 years ago when I was managing a bunch of employees for a County, they had to have training by a certain date, you know we establish these dates and this is 25 years ago, the software would give me these little alert, you are a month from e:� April 19, 2012 CIP budget (cont'd)p.37 the date and it's not happening. I hope in your software there is some kind of an alert, hey, this deadline has passed and it's not accomplished, you know? That would key you to update it and that kind of thing. Thank you. Chair Furfaro: Anymore questions about Kapa'a Transfer Station? If not, Troy, next item. Mr. Tanigawa: I guess we have covered them all and I guess we're opening up to questions. Chair Furfaro: Now I will let the members know that they can probe questions from Solid Waste Division, but I want members to stay on the one subject until there are no more questions. If you pick Hanalei Transfer Station as an item, let's get all the questions for Hanalei Transfer Station done. Vice-Chair Yukimura, you had your hand up. Ms.Yukimura: Thank you. My question is regarding the NPDES project. You say that it will address a lot of the things that Kapa'a Transfer Station -- first of all, which transfer stations are included in this project? All of them? Mr. Tanigawa: No, all transfer stations -- well, let me just back up. The facilities included in that project are the Hanalei Transfer Station and Kapa'a Transfer Station. Ms. Yukimura: Now that is not clear from your PID. Mr. Tanigawa: We can take that back and look at to see how we can make it more apparent. Ms.Yukimura: How you just use the Words Kapa`a, and Hanalei Transfer Station. Okay so I'm glad because Hanalei really needs that problem addressed, and I guess my question is it's related to this because you say that this will cover the needs of Kapa'a transfer station. Will it really cover all of the things that you mentioned about Kapa'a Transfer Station, like figuring out green waste issues? A lot of these things that are listed in your Kapa'a PID, will they actually be addressed in the NPDES project? Mr. Tanigawa: It's our intent to address all of the problems that exist to comply with the National Pollutant Discharge Elimination System. Mr. Dill: Specifically some issues have been identified for us, by consultants that may exist with NPDES compliance. So we are focusing on those so compared to Kapa`a, our reconstruction project that was a broader project this is focused on making sure that we maintain compliance in NPDES issues. Ms.Yukimura: So this is related to my question. If you are going to, ..or my past questions. It depends on how you see the transfer station being used into the future. If you see them as also sites for recovery of recycling, and composting and hazardous waste, you are going to design the station in a different way for the future. In Hanalei, what is your future plans and needs for the Hanalei Transfer Station and do you even have enough land to do that? So it's part of this macro planning that I have been talking about in terms of what you're going to put up in at the Kapaia Landfill site or Kumukumu, if you say you might go there, and then what are the transfer stations going to look like? Because you are going to pour a lot of money into the existing framework and then say oh, but we want to do this and then we want to do this and then we want to do this and then you decide we need a new location and you are going to find a new location. This is April 19, 2012 CIP budget(cont'd)p.38 piecemeal planning. So what is the big Solid Waste vision for transfer stations for the next 15-20 years? Is that clear to us? Mr. Tanigawa: You know, like you mentioned Councilmember Yukimura, we want to stay away from piecemeal planning. That is the primary reason why we have shelled the Kapa'a Refuse Transfer Station reconstruction project for now, and we put our effort and funds into addressing the more immediate problems that we see, that need to be addressed. at the same time in a parallel effort, we moved towards more complete planning, looking at the big picture involving all of our facilities. Ms.Yukimura: So are you planning to have -- is it your goal to put the redemption centers and that kind of thing at every transfer station? Mr. Tanigawa: Right now it's not. Chair Furfaro: When can you have a plan for us? Mr. Tanigawa: We haven't started ... I think-- Chair Furfaro: When can we have some discussion about this at a future meeting? Mr. Dill: The intent of the Kapa'a Refuse Transfer Station reconstruction planning and design was to address all of these issues you are talking about. Ms.Yukimura: I know and it's not on the calendar anymore. Mr. Dill: Right, because as we indicated when I spoke to you before that subject decisions regarding the sitting of the landfill. So I'm hoping the next fiscal year sitting of the landfill will be resolved and we bring this back. Than at that point then we would look at all the planning needs as part of the planning and design for the refuse transfer station at Kapa`a. Ms.Yukimura: So in the meantime, everything is held up in terms of what the transfer stations will do into the future or you are doing your planning transfer station by transfer stations, sometimes they will be redemption sites and sometimes there won't. Mr. Dill: It will depend a lot on the limitations associated with the station as you mentioned Hanalei has a small footprint and so we may be looking for a new transfer station location on the North Shore and if that can't accommodate our future needs or it will be limited in the services it can provide or we'll look for possibilities of other locations where we can do redemption on the North Shore. Ms.Yukimura: But then you have all of the NPDES recommendations based on a site that might change? 1 Mr. Dill: Yes, the reason for that is because we are aware of an { immediate concern that needs to be addressed with regards to the compliance? Ms.Yukimura: So this NPDES project is focused on immediate compliance and it's not going to be addressing long-term planning for the transfer stations? Mr. Dill: Only focused on the NPDES so long term only in terms of the NPDES compliance. April 19, 2012 CIP budget(cont'd)p.39 Ms.Yukimura: So in our mind we're not just talking about what is on the list, but what is missing. So your intention in terms of the future of transfer stations and how they are going to be dove tailed with recycling efforts and other things. That is a discussion and planning piece that you folks will be addressing? Chair Furfaro: Just tell me when, Larry, because this is a budget meeting. When will we be ready for that discussion? A year from now? Mr. Dill: Well we don't have a plan at the moment to do an over view of the transfer stations. Chair Furfaro: What if we had a meeting about the wish list of all the things that Vice-Chair is asking about. Mr. Dill: Many things are ... Chair Furfaro: Wait a minute you begin planning by putting things on the radar screen. I have opened resorts throughout the south pacific and you look for systems that can apply to the facilities, water, storage, tracking, roads, so let me rephrase the question. When could we at least start talking about identifying some wish-lists that should be part of the future plan? Mr. Dill: These things are addressed in the integrated solid waste management plan that we do have. Chair Furfaro: So are you telling me that we need a meeting to revisit the solid waste plan? Mr. Dill: If you wish. Chair Furfaro: Do you think it's a good idea? If not, Larry let's move on with budget. Okay, we are on the second item here of an eight item agenda Mr. Dill: What I would suggest is Chair as Councilmember Rapozo mentioned we do have regularly scheduled monthly meetings with him and I would be happy to address some of these things in that budget. Chair Furfaro: I understand that but Mr. Rapozo is a member that Chairs that committee. It would be in his committee and he would need to post something. Six months from now to review the radar screen? A year from now? Just give me a date. Mr. Dill: I would like to discuss it in the context of our meeting with Mr. Rapozo? Chair Furfaro: I can except that. Budget questions?Mr. Bynum? Mr. Bynum: I'm finding this discussion useful in spite of my frustration. When there is a new PID that has current updated information, I find it very useful, because I can look at this and say you are asking for 185 and you projected construction costs of 400 and you have a timeline that says construction procure contractor construction improvements might happen July 13, so I can anticipate that there will be a request for $400,000 for construction for this project the next fiscal year. This updated thing tells me who the team is, who is the support staff. It April 19, 2012 CIP budget(cont'd)p.40 tells me some of the major cost-benefits and so I do like this form and if its current; right? This one II is current, because you just did it and I can learn all of these things from just looking at this. I don't have to call Troy or Larry or put it on the agenda for a meeting. But I have to know that this form when I consult it, it is current and correct. I don't think I will have other solid waste questions. Chair Furfaro: This is for questions, so why don't you summarize? Mr. Bynum: I really had this aha right. Back 25 years ago when I had a deadline coming the light would flash. It is like hey if a deadline passes on these, and it's not marked complete, I would like an alert. You have these five deadlines and on this date we'll be done with that and if that deadline actually passes, and somebody hasn't gone in and said pau we're on track. That would be the alert time. Does that make sense? Because it's not just like completion, date/start. There are steps along the way. Thank you. Chair Furfaro: Okay I want to make sure when Mr. Bynum uses the term "aha." we're not referencing a meeting. It is not an Aha. I'm depending on Mr. Rapozo now through your meetings, Mr. Dill, to have some reasonable time when we can have some Q&A about the issues that Vice-Chair Yukimura brought up, so we can get them on the radar screen however you agree with Mr. Rapozo as a committee. Anymore questions for solid waste? Councilmember Nakamura? Ms. Nakamura: Just a question on the Kekaha Landfill phase 2 closure, in the PID background, it talks about that the phase 2 expansion of Kekaha Landfill is estimated to provide an addition life of 6.3 years. Is that the latest estimates? Mr. Tanigawa: That capacity estimate includes cells 1 and 2 of the lateral expansion. Ms. Nakamura: And so that would take us to roughly 2019. Mr. Tanigawa: Which PID are you referencing? Ms. Nakamura: The Kekaha Landfill phase 2 closure. Mr. Tanigawa: If you're looking at 6.2 years from now, that is actually not going to be accurate. We have already started with and are using cell 1, so some of that capacity in cell 1 has already been used up. So I think we're looking at about 2017. Ms. Nakamura: So the background here so it's 6.3 years from 2009? Mr. Tanigawa: No. Actually that has been updated. We had additional capacity in the existing or the original phase 2 footprint. We actually started using cell 1 capacity in 2010; in mid 2010 and as of April, the projection was that we had roughly April, 2011. we had roughly, I think it was 3.2 years or 3.1 years additionally left, so as of today, we're looking at roughly about two years of additional capacity remaining in cell 1. Ms. Nakamura: So the expansion gives us how many additional years? Mr. Tabata: Councilmember Nakamura, this is the frustration with the PID. It's not a living document and that is why we're looking at the software. When did we our solid waste presentation, we had a map that outlined Ms. Nakamura: I thought it was 9 years. April 19, 2012 CIP budget (cont'd)p.41 Mr. Tabata: It was further updated, but we can get back to you on the exact dates. Mr. Dill: But in response if you look at your first page in the background it says cell 2; 3.2 years I believe so you can see cell 2 we are requesting $8 million as one of our line items and that cell provides an additional 3.2 years approximately after cell 1 is complete. finish years we talked about earlier concludes the potential vertical expansion. So real rough numbers 3 years cell 1, 3 years cell 2 and 3 years vertical expansion so that is what we were talking about previously. Mr. Tabata: Which is the schedule on the last page. Chair Furfaro: Would you do me a favor and make sure that is communicated to the Kekaha Community? So that they understand the longevity. You know three years of that longevity is including the use of the vertical. Just a friendly communication would be much appreciated to them. Mr. Dill: At the Mayor's -- I'm sorry, go ahead. Chair Furfaro: Go ahead. Mr. Dill: At the Mayor's community outreach meeting in Kekaha, we shared all this information with them. Chair Furfaro: So you are telling me that you will not fulfill my request? Mr. Dill: No, I'm saying your request was fulfilled. Chair Furfaro: I want it in writing to the Kekaha Community Association. As a courtesy to me. They were here today they said nine years but if we don't do the vertical, it's not nine years. So make sure that is spelled out. I think that is reasonable request. p q Now on the PIDs, that is not something mandated by us. That is something that the administration created. So if it has a short life span, hallelujah. I'm looking forward to the programs that have been presented to us today, and I think I have already heard cheers about that from Mr. Bynum and Madame Yukimura. Mr. Rapozo and then Mr. Bynum. Mr. Rapozo: Thank you. I have a couple of questions. Just to clarify the PID, because the PID is really almost like your planning documents. Once you get funding, once it becomes funded than you are scheduling occurs and you can pretty much accurately dictate, but the PID is really just the? Chair Furfaro: The Project Initiation Document that's what it stands for. Mr. Rapozo: Right. So I appreciate the clarification that it's not a living document and doesn't update. My question pertains to your list of CIP recap. On the new land fill resource recovery park there is a $4.2 million approved, expended was $204,000 and encumbered was $1.6 million for what have we expended what have we done so far? Is that consultant fees? Mr. Tanigawa: I'm sorry, which item? April 19, 2012 CIP budget(cont'd)p.42 Mr. Rapozo: Third item, new landfill and resource recovery park. We spent $204,000 and encumbered $1.6 million and I am just too figure out...we're taking out $1.1 Million from the bond;right? So what have we actually bought so far? Mr. Tanigawa: Right now we have just over $1.8 million encumbered under the planning and EIS contract. Mr. Rapozo: Oh, okay the consultant. Mr. Tanigawa: They performed work and to-date, well as of this sheet. Mr. Rapozo: We paid them $204,000. Mr. Tanigawa: Yes. Mr. Rapozo: And same question for the two below that, the landfill expansion cell 2 design is that the same? Is that a consultant? Mr. Tanigawa: Correct Mr. Rapozo: So it's about $1 million and we already paid them $112,000? Mr. Tanigawa: I believe so. Mr. Rapozo: Okay. Mr. Tanigawa: 900 plus thousand. Mr. Rapozo: That is all Mr. Chair. Chair Furfaro: Vice-Chair Yukimura. Could you reference the documents? Ms.Yukimura: The recap sheet. Chair Furfaro: Tim has the floor and then we'll go to Councilmember Nakamura and I see automotive is here. Clint, automotive, you might as well plan to come back after lunch. Thank you. Mr. Bynum, you have the floor. Mr. Bynum: That term living document, I first heard that from the administration and that was the commitment way back that the PID will be the living document. It's great to hear you say it's not, but we're going to have one;right? Mr. Tabata: Yes. Mr. Bynum: So we could see in future, there is still being a PID as an initiation document and then it will tie into the living document that gives us the progress timeline? 1 Mr. Tabata: Right. April 19, 2012 CIP budget (cont'd)p.43 Mr. Bynum: Changes, that kind of thing. Thank you. Chair Furfaro: Councilmember Nakamura, you had a question? Ms. Nakamura: Just a follow-up on the new landfill. So you are proposing to reduce the budgeted amount by $1.1 million? Mr. Dill: That is correct and the reason for that in the spirit of monies that we foresee expending within the next 12-18 months. So basically we don't see we need this and covered adequately in that line item, so we removed that. Ms. Nakamura: And so that pretty much includes the funding for the design-- what does it take us up to for the next 18 months? Mr. Tanigawa: Hi Councilmember Nakamura, what we have remaining in this account will takes at least up to completion of the EIS process. What remains there, I guess is for contingency purposes, if things come up during the course of this EIS process, if additional studies or other information need to be secured we have the funding there to address those things. Ms. Nakamura: Part of the $1.8 encumbered so far is for the EIS consultant? Mr. Tanigawa: That is the total encumbrance under that contract. Ms. Nakamura: Okay, thank you. Chair Furfaro: Anything that is directed at solid waste up to the 12:30 hour. Mr. Rapozo: And mine are only questions. Chair Furfaro: Go ahead. Mr. Rapozo: Very simple question and it was triggered by your comment about the 12-18 months. So the proposed CIP cell 2 construction expansion, the construction of $8 million, you anticipate expending that in the next 12-18 months? The cell 2 construction. You just told -- I think Larry just said that $1.1 million was reduced because in the spirit of only funding projects that we're going to finish or we're going to expend the funds within 12- 18 months. Are we going to be able to do the construction of cell 2 in the next 12-18 months. Mr. Tanigawa: We're anticipating going out to bid Mr. Rapozo: We're that close? Mr. Tanigawa: By the end of the year. Mr. Rapozo: Okay, that's good. Mr. Dill: I'm sorry I should have used the term "encumbered." April 19, 2012 CIP budget(cont'd)p.44 Mr. Rapozo: No I understood it to be encumbering and not so much completed so that is good? Thank you. Chair Furfaro: I want to reconfirm again that will all be encumbered in the next 12-18 months. Mr. Tanigawa: We'll be encumbering whatever the bid turns out to be we will be encumbering that amount. Chair Furfaro: Any more questions on solid waste? Vice-Chair Yukimura. Ms.Yukimura: On the new landfill you show construction management to be $2.5 million and construction cost to be $25 million. Where are we planning to get that money? Mr. Tanigawa: That is something that we'll have to come up for future appropriations request. Ms.Yukimura: But you must have some kind of idea if we're fast- tracking this thing? Mr. Dill: We had discussion with the director of finance and I would like to refer them to the director of finance. Chair Furfaro: Wally, would you mind coming up. We're talking about a proposed cost of $25 million. I think some of us assume that we will be looking at some financing form? Mr. Rezentes: Yes, Wally Rezentes, Jr., Director of Finance. The intent for getting monies in that kind of amounts will be through the bond market, and also, obviously, we need to pay for the debt service. So it's not a small amount of money that we will be needing at sometime in the future. Our intent is try to match the need for it the funds, time it as close as possible when we have the fund as valuable funds available to when the need is. So at some point in the relatively foreseeable future we're going to need to go out to the bond market and obtain a large part of that monies through bonds. Ms.Yukimura: Surely you well okay first of all does that $25 million include the resource recovery park? Mr. Tanigawa: No. Ms.Yukimura: Does not include resource okay. Surly you have some time table because we have to open it within 10 years. Okay so when are we supposed to start construction and then back that up. When are we supposed to have the funds by? And the $2.5 million for construction management is part of the $25 million or in addition, to the $25 million? Chair Furfaro: First of all, the date we see narrative is 2020. Is that correct? Mr. Dill: Yes, Chair, there is a grant chart in the PID that shows you the dates when we intend to construct the new landfill. We're projecting right now April of 2018 to begin construction. And the CM monies that are in addition, to the construction monies. April 19, 2012 CIP budget(cont'd)p.45 Ms.Yukimura: So we're talking $22.5 million. Mr. Dill: Is that the number? Ms.Yukimura: Oh I'm sorry $27.5 million. Mr. Dill: That sounds more correct. All those numbers obviously are estimates at this time. Ms.Yukimura: Okay but if we are going to start construction in 2018 we will have to have those monies appropriated about a year before that? Mr. Dill: Yes. Ms.Yukimura: So you need the monies 2017? Mr. Dill: Correct. Chair Furfaro: And completion is targeted at 2020? Mr. Dill: Yes. Ms.Yukimura: And you don't anticipate any money need for land acquisition? Mr. Dill: We're not aware of that at this stage. Ms.Yukimura: Okay. But you don't need $27.5 million or you will, but you are going to then need tipping fees to pay off the bond? Mr. Dill: That is a source of revenue we'll look at, but I will defer to the Director of Finance. Ms.Yukimura: Well that is something that Solid Waste should think about too. Mr. Dill: Somebody (inaudible) Ms. Yukimura: Okay so somebody has got to be doing some really long-term financial planning here and we're not going to start in 2017. So we'll discuss that in committee. Mr. Dill: Okay. Chair Furfaro: Mr. Bynum? Mr. Bynum: When did we last raise tipping fees at the landfill? Mr. Tanigawa: It might have been either 2009 or 2010. It was raised to $90 a ton? Mr. Bynum: From $80 as I recall right. Ms.Yukimura: For commercial? April 19, 2012 CIP budget (cont'd)p.46 Mr. Tanigawa: Just for commercial deliveries. Mr. Bynum: I just remember when we adopted the integrated Solid Waste Plan, I think all of us were really clear with the community we're going to spend a whole lot of money on opala over the next to 20 years. The fees that we have increased tipping aren't even covering the operational costs of our current operation. And so we should be honest with the public and say these fees are going go up again, or you are going to have increased property taxes. We don't have any choice. This is going to be a major, major expense for the County ongoing for at least the next 20 years. And then hopefully -- and I'm sure you are doing this in your design about trying to maximize efficiencies, so operating costs are minimized and maintenance costs are minimized. That is part of the whole design. And maybe we should look at increasing tipping fees again. I am going to ask later in this year a whole bunch of questions how we compare with municipalities and what is a reasonable timeframe? Because I think we should I have a goal to least have our ongoing operational expenses covered by user fees. People of Kaua'i are going to pay one way or another and it seems it would be cleaner to have it in at least operational costs be self-sufficient. Chair Furfaro: Mr. Rapozo? Mr. Rapozo: I just had a question for Wally. Chair Furfaro: I was going to bring Wally up, too. Mr. Rapozo: It was a general question and if we could do that before lunch, I would appreciate it. Chair Furfaro: Don't go far, Troy. We still have questions for you. Council Vice-Chair. Ms.Yukimura: Actually this is within the ambit of question for Wally. Not just $27.5 million that we have to anticipate and figure out how we're going to fund. It's the $10 million for the $8 million of which we are expending in this budget, but $10 million for the retrofit for Kekaha landfill. So $27,5 million plus $10 million is $37.5 million not to mention the infrastructure that we have to build for zero waste, so we can eventually move away from these kinds of costs. We're looking at $37.5 million that we have to expend in the next 15 years and this isn't counting operations, I mean collections. And excuse me this is the cost of not planning an not having done in some diversion infrastructure years ago. So Wally, you have any ideas how we're going pay for this? Mr. Rezentes: Well, Real Property Tax is the main source of revenue for this county. User fees are another source of revenue and I think you folks have spoken about both of these things through the budget session. That is the lion's share of the costs we're going to need to handle the debt service, as well as the operational costs of the functions that we're going to 1 provide. Chair Furfaro: Okay Wally, can I will send over a question, separate memorandum. If you could just look at it, the question will be from the year 2014 what incrementally do you see as the additional debt service and at some forecasted rates, what those impacts would be projected for us through 2020. Mr. Rezentes: What we can do, I know during Finance Department's ii presentation we did provide a chart that laid out the debt service all the way through and we can layer on-- I," April 19, 2012 CIP budget(cont'd)p.47 Chair Furfaro: I just want to know the landfill and the $8 million we'll incur relatively sooner than the $35 million. So I will send it over in a question after I think it through and if you could respond, I would appreciate it and share it with the Councilmembers. Go ahead. Mr. Rapozo: Thank you. That was a great sag way into my question,but as far as the debt service for the CIP projects, that is not reflected in the CIP budget? Mr. Rezentes: No. Mr. Rapozo: Why wouldn't that be reflected in the CIP budget? Mr. Rezentes: We pay it out of our Debt Service Fund? Mr. Rapozo: Right, but shouldn't that come out of CIP? Mr. Rezentes: Historically we have not identified it. Mr. Rapozo: I understand that but as I'm looking at this all of the money in the CIP, our debt service for the CIP budget should be paid out of the CIP budget, I believe and not through general funds. That is just my opinion and I'm not an accountant, but ... Chair Furfaro: It depends on what kind of bonds we float too, general operating bonds. Mr. Rapozo: If you look at the CIP budget, the CIP budget, whatever we spend into CIP should be reflective of all the expenditures of the CIP programs. No different than a project manager. That's not a project we not building the house that is a person that we're paying to oversee and that is an expense of CIP and we pay that out of CIP budget. So I think to track it properly, so we can get a better understanding of what the CIP program consists of, I'm asking, it doesn't make sense to me. We should probably have -- Mr. Rezentes: What May be more appropriate Councilmember Rapozo, and we have done it in the past with past issues, for the golf course, for example when we did a major renovation or addition of the sprinkler watering system. We had the golf fund appropriate monies annually from its operating that those monies went to our debt service ultimately transferred to the debt service fund to pay for that respective portion of the debt. I could do a similar thing with Solid Waste, but you would likely see it in operating, because it will be an annual appropriation. Mr. Rapozo: Correct. but I guess I think it just makes sense to have all expenditures, all costs related to CIP be paid out of the CIP. And that is your call. I just think that probably a cleaner way. Then you have an accurate figure because what is your debt service right now about 8 million? Chair Furfaro: 9.7 million. Mr. Rapozo: To me, it should be added to our ... so in essence, our CIP budget right now.. Mr. Rezentes: I see your logic. You want it to come from the respective source, whether it's solid waste, sewer, highway, CIP so you can see the capital side, as well as the costs. April 19, 2012 CIP budget(cont'd)p.48 Mr. Rapozo: The real cost. Right now the taxpayer pays it out of general fund. Chair Furfaro: Yeah but Wally, it becomes more complicated at the end of the day it's our debt service. Mr. Rezentes: I understand. I see his logic. Chair Furfaro: I understand where you are coming from, but those are different kinds of bonds. If you got landfill producing revenue it's a revenue bonds and you have to explain to the bond council how many of that revenue is going to supports that debt. I would say Mr. Rapozo's points are good, but I would rather go to one place, like I'm doing in this new budget and seeing that I have a yearly payment of$9.7 million to debt. Mr. Rapozo: And that would be reflected. That would be reflected in a line item "debt service," under the CIP budget. So it would be the same. It's just under the CIP, budget. I'm not saying put$1.2 million in solid waste $1.1 million in waste water no. Mr. Rezentes: Right now there is certain Ordinance requirements that require us to set it aside in the debt service fund but I mean knowing what contributed to the debt service is I think what you trying to visualize.. Mr. Rapozo: Exactly because we have debt service in several ways and the CIP doesn't only entail bonds. We have general fund CIP. We have highway CIP. We have all of these different CIP funds. It's not all limited to bond funds. Anyways just a thought, I will leave it up to you. You are the expert, but to me, when I look at budget, this $68.855,000 doesn't include that service so our CIP budget in essence is really larger than that and you add the 9 million and you end up with a nice big chunk and maybe it effects the bond rating I don't know. Maybe it effects the ability to borrow money I don't know but I think for me as a Councilmember looking at the budget and trying to look at the real numbers just seems like that's where it should be.. Chair Furfaro: Wally that is a fair question. I would like to say you can always set up a subsidiary ledger to show monies paying certain elements of the piece but the question started out where are we go getting the money for $37.5 million and the only place right now at this point in time it probably has to come out of some general obligation bonds. I appreciate the questions, Mr. Rapozo and maybe we could get some kind of ledger for that, Councilmember Nakamura and Councilmember Yukimura. Ms. Nakamura: Wally I had a question. You know, I recall in our Comprehensive Annual Financial Report that there is a section in there that talked about our upcoming anticipated major expenses. Do you recall a section in there that included a plan for anticipating those expenses? II Mr. Rezentes: Well, the six-year CIP, yes. The six-year CIP is what you look at to figure out at least in that window, that six-year window, what is expected to be on our plate. And you draw conclusions from,depending on its accuracy and4th, 5th, 6th year out is less accurate as 1st, 2nd and 3rd years out, but if you look at that document it can provide some guidance as to really what the future debt requirements will be as we proceed. Ms. Nakamura: So maybe what we'll do is just ask the Planning Department for a briefing on the six-year CIP. Also I just recall something that identify these big I�s1 I's Ii April 19, 2012 CIP budget (cont'd)p.49 ticket items and I thought there was some sort of proactive plan for anticipating it, but I will just re- visit it. I just thought if you knew. Okay. Chair Furfaro: And that document comes out of Planning and it would be something that we should discuss and review in the future. But actually get a briefing by Planning. Vice-Chair Yukimura? Ms.Yukimura: Thank you. Question I think is for Larry or Solid Waste anyway but stay there, Wally, you never know -- wait, maybe, Troy. Chair Furfaro: Members, it's 12:30 and I wanted to finish regarding Solid Waste before we broke for lunch. Ms. Yukimura: So the way to mitigate the huge capital costs we're looking at from landfill is to increase our diversion rate, so it would increase the life of the landfill. I mean existing and then future landfill. And we don't have -- and this will be a segway -- I'm sure this will be discuss after lunch the MRF and composting projects which are dollar funded in the budget right now. but I mean, if you had the MRF running today, the diversion rate at Kekaha would be greater. And also the encouragement of recycling would happen with the pay-as-you-throw because people can save money. They don't have to spend as much money on tipping fees or residential waste pickup fees if they recycle. So there would be this whole momentum towards the new system, the zero waste system that we're trying to develop. So my question can be answered after lunch, but we need to talk about how we're going to fast-track this MRF. Chair Furfaro: So since it's very clear we're not going to finish Solid Waste it's 12:35. All attendees come back after the lunch break at 1:35. There being no objections, the meeting was recessed at 12:35 p.m. The meeting was called back to order at Chair Furfaro: We're ready and I want to pass out a reminder to everybody here. This is the budget meetings. If we start to get into philosophical items that deal with how we can maybe service issues that we should focus on in the future and operations and so forth I am opening to scheduling those in committee. I want to focus on budget, so I think we left with Vice Chair Yukimura having the floor and she has it again. Ms.Yukimura: Thank you chair, and just to comment on what you just said. If it's a question -- a preliminary question about future budgets I hope that we can at least get the question on the table. Chair Furfaro: I don't have a problem with future budget questions. I have a problem with the future decisions about the philosophical ways we do business that can go to committees. Ms. Yukimura: I hear you. I think that's a reason line to draw. So my question to -- I guess Troy is not here. Mr. Dill: You can address your questions to me. Ms.Yukimura: Okay. What is the status -- well, first of all is this project initiation document something that we can rely on or does it have to be updated? April 19, 2012 CIP budget (cont'd)p.50 Mr. Dill: Which particular one are you referring to. Ms.Yukimura: Material recovery facility. I mean... Mr. Dill: I believe that one is current. Ms. Yukimura: It is? Chair Furfaro: It is not current. Ms.Yukimura: I mean it's not up-to-date? Okay. so where are we then? Can you tell us? Mr. Dill: We spent time this year looking at our options and we done a couple presentations of our team to the administration with some (inaudible) options and recommendations. The big decision to be made is whether we pursue a privately own, private operated, -- county owned or private operated or county owned, county operated facility, so we're still looking for the final solution to that, and part of that is looking for an appropriate site to see if the option of a county owned private operated facility or the option of choice to see where that could happen and what land may have to be acquired if that is the case or using existing county property, and county property in place now all of is used to some various degree, and that means displacing functions and uses there, so it would have to be relocated, so all of those costs are trying to be addressed (inaudible). Ms.Yukimura: Are you looking excluding the possibility of condemning land where we need it? Mr. Dill: No. That is a possibility we are looking at that as it's time frame associated with it and cost associated with that as well. Ms.Yukimura: Right but I think when you identify property that you want to condemn you can actually occupy it at a certain point, and I mean time is of the essence. I'm tired of saying that actually. Mr. Dill: We did sent over a while ago a response to a Council request some issues associated with time frames developing a MRF and this is consistent with solid waste management plan. We are working now part way through the implementation of automated refuse collection as you know and we're in phase two, we are about halfway as far as covering the island. We would like to be able to implement phase three and the final phase meaning we would take care of the rest of the island in that final implementation, and the Intergraded Solid Waste Management Plan recommends, and we concur that we implement -- that we don't implement island wide curb side recycling prior to implementation of the automated refuse collection so we need to get the island wide automated refuse collection complete then we can include island wide automated curbside recycling which would also allow us to island wide green waste at the same time. The MRF would be something that would happen simultaneously more or less with the island wide curbside recycling. Ms.Yukimura: Yes but you have to build it to be ready for when you start island wide curbside recycling which is why we argued against the wasting of time to do that pilot curbside recycling when you didn't have clear plans for the MRF. Mr. Dill: I disagree with you when you say it is a waste of time because and you requested I don't know if we provided the report-- April 19, 2012 CIP budget(cont'd)p.51 Ms.Yukimura: I haven't seen it yet. Mr. Dill: There is essential information that we needed in order to make some decisions at the MRF. What we expect to see if the MRF, what kind of waste treatment we can(inaudible)volume and material that would come and the nature of the material. Ms.Yukimura: Well how do you know without pay as you throw. That would totally differentiate the volume. Mr. Dill: Yes, but it's purely unknown but now we have information. you're right the pay as you throw will help to push the recycling and improve the waste stream that we expect to receive. Ms.Yukimura: The EPA has done many studies to show what the percentages are that can be achieved. Mr. Dill: But there's also information that shows what is happening in Hawai`i and on our particular island significantly different than what's being seen on other island. Ms. Yukimura: Okay. Mr. Dill: And the (inaudible) is a good point I agree it is an important factor with just received a draft plan on implementation of pay as you throw. I haven't read it myself yet but I agree it's an important part of the picture we're pursuing. Ms.Yukimura: Perhaps the council should be involved in the discussion about privately owned versus county owned because it has many fiscal implications, especially if the people are already paying high fees because of the capital costs that we're now incurring, or that we just talked about before we broke for lunch, so maybe we should have that schedule. Mr. Dill: We could come to you -- I don't want to come to you without a recommendation, but when we come to you with the recommendation we will certainly show you how we came to that conclusion and the review of the various options including the ownership scenarios, because you're absolutely correct. I agree that they are one of the pros of a private operation is it puts the burdens of the capital improvements on the private owner operator, but the other side of that coin in the long run the County encounters more challenges with making sure that we can procure competitively the operations of that. Ms.Yukimura: That's correct. Mr. Dill: So there are pros and cons that we need to weigh. Ms.Yukimura: And you can get a hybrid by allowing design build of the facility, but not ownership? Mr. Dill: Yes. And that's one of our options that we would procure -- we would own the facility but we would procure the design build as a private design build operation and then procure the operations as a private operation but it's a County owned facility so we're looking at that as one of the options. April 19, 2012 CIP budget(cont'd)p.52 Ms.Yukimura: And when do you plan to have the recommendations to the Council? Mr. Dill: Well to be honest I hoped to have it by now. We gave a recent presentation to the administration. Some good questions were posed back at us, so we are researching those now to get back to the administration. I just can't give you a time frame. Ms.Yukimura: Okay. But for the supplemental and for this budget are you recommending that we not put any monies in for a MRF. Mr. Dill: At this point, I don't have a number that I can support that I can recommend to you but we may well come back in the supplemental or if not in the supplemental then it will be as a money bill in the coming fiscal year. Chair Furfaro: Let's remind ourselves to that at this point there is no money, kind of hard to come in with the money bill zero of zero, so how about giving us a briefing in committee some time very soon after the budget is done if the only option is to submit something in the way of a money bill for design concepts. Is that fair and reasonable? Mr. Dill: I will check with the administration. As I mentioned I don't know if I am comfortable providing a briefing when I am not in a position to provide a recommendation in the direction that we want to go. Chair Furfaro: Understood, but I would hope that we could start having some discussion with the council 60 days or now or something, so could you make that request with the administration? Mr. Dill: I will. Chair Furfaro: JoAnne, you still have the floor. Ms.Yukimura: This is my last question. I mean the concern I have is if really most of the money that we have is what we're looking at right now, and then we allocate it completely away, and this is a high priority for us, but we assigned to other projects because it hasn't in the priority setting process, then we really handicap the project, and so you know, and especially because this has been an issue for five years. I hope that we can get something, so we can include it in the budget. Thank you. Chair Furfaro: For the members that are at the table here again I want to reiterate my instruction. I plan to stay here until we finish the division of Public Works here today, engineering, so I want to remind us to focus future agenda items that are not dealing with the budget to other committees, so Allison were you going to respond to something in particular to Vice Chair Yukimura, or are we moving on to some of the recycling programs? Your choice. Mr. Dill: We're in Q &A mode now. Chair Furfaro: Okay. Q and A mode. Mr. Chang, Mr. Rapozo, Mr. Mr. Kauli`i. Mr. Chang: No Qs for me. Mr. Rapozo: I have one in general. April 19, 2012 CIP budget (cont'd)p.53 Chair Furfaro: Go ahead. Mr. Rapozo: I didn't ask of wastewater but of Solid Waste and I will be asking the different divisions. It doesn't appear -- all of your projects are in process moving forward pretty much, so I don't think there is a project here -- if you had to prioritize them all and number one priority (inaudible). Mr. Dill: Yeah. I mean(inaudible) Mr. Rapozo: I mean is there any project on your list that you could do without this year? And you're different from parks and the other one so I expect you to tell me "no . Mr. Dill: There is an engineering reason that every Public Works project being proposed here is in the budget so every project is needed. Mr. Rapozo: Yeah and I think with wastewater and solid waste I would agree with that and drainage. I think when we get to parks ... when we get to some of the other division I think there's a lot of thing that we would like to do and my questions will be for the departments and director heads to prioritize that because in my opinion we got to find some money as we go into decision making, and I would rather have a list from the administration saying what they can do without rather than me make that decision or this Council make that decision, so that's probably an unfair question to ask you, because like I said yours your projects are all moving forward, and I would agree that I don't see anything on here that we could wait, so mostly for the others that come up after you they can start preparing. Thank you. Chair Furfaro: Any questions on Solid Waste? Go ahead Vice Chair. Ms.Yukimura: So what is the status on your composting? You have that dollar funded too, your composting facility? Mr. Dill: We are not prioritize that in the same way we have the MRF because there are a couple of composting operations with whom we are working on the island currently right now, so they are meeting the need to some degree fairly well at this moment, so with that in mind we haven't prioritized or shown budget request for that. Ms.Yukimura: So the plan -- the long range plan for composting is what, p integrated Management the inte rated Solid Waste Mana ement Plan then? Or to be determined or altered in a few years when you have time to think about it? Chair Furfaro: Do you have something to share with us on that question? Mr. Dill: I would request Vice Chair Yukimura put that in writing so we can respond to it. I am not intimately familiar with that integrated solid waste management plan is that has to say on the composting. Ms.Yukimura: Okay, just one last question on the landfill. Kekaha landfill, you know this fold out here the 8 million that you have for the Kekaha landfill lateral expansion cell 2 construction. Is that in addition to the other three figures you have right above it, or does the 8 million-- Mr. Dill: Well, above it you see -- let's see. The construction we estimate based on most recent estimate from our consultant is approximately $9.2 million. April 19, 2012 CIP budget(cont'd)p.54 Ms.Yukimura: So that is in addition to everything? You're adding the three above? Mr. Dill: We are addin g the two. Mr. Tanigawa: Excuse me Councilmember Yukimura. Ms.Yukimura: Oh I see. Mr. Tanigawa: To add to what Larry just mentioned, we have three items there for cell 2. The item in bold proposed CIP, that's the newest item (inaudible). Ms.Yukimura: Okay. Mr. Tanigawa: You add the $8 million to the number just above that $1.284 that is for construction. Ms.Yukimura: And the other two figures above that 654865 -- and 464,956 those are also expenditures that are in the CIP now? Mr. Tanigawa: Budgeted CIP funds that have not been encumbered yet. Ms.Yukimura: Have not been encumbered but we expect to encumber it this year? Mr. Tanigawa: We have potential for encumbering the funds budgeted in the 654, that account 654,000, and we have 464 remaining in contingency for Cell Two. We have activities ongoing now with design that there may be additional costs. Mr. Dill: Councilmember Yukimura, if you can refer to the CIP recap sheet. (Inaudible) significant expenditures and encumbrances against that Cell Two design number. Ms.Yukimura: Okay. Mr. Dill: So as Troy mentioned, the 464 is the balance of that appropriation currently. Ms.Yukimura: Okay, so actually...but you can add up all those costs in terms of the cost of Kekaha Landfill expansion. So we are looking at an $11.3 million in this year's CIP budget for Kekaha Landfill expansion? Mr. Tanigawa: Correct. Ms.Yukimura: And were there amounts before this that we spent on the lateral expansion? Mr. Tanigawa: Yes. Ms.Yukimura: In previous budgets? April 19, 2012 CIP budget (cont'd)p.55 Mr. Tanigawa: Yes. Ms.Yukimura: Okay, so I would like to know the total projected cost of expansion of the land... Mr. Tanigawa: Yes (inaudible). It is the in the April 4 communication to the Council Chair. Ms.Yukimura: April 4 communication. Is that answering questions? Mr. Tanigawa: Yes. Ms.Yukimura: Okay, then we will look it up. Thank you very much. Chair Furfaro: Okay, I have a question from Mr. Bynum, and then we are anxious to go into Engineering. So, Mr. Bynum, Solid Waste. Mr. Bynum: I pass. Chair Furfaro: You will pass. Okay, Solid Waste, Solid Waste twice, Solid Waste three times. Okay. Who are you bringing up for us with Engineering? Mr. Dill: Mr. Wally Kudo, first. Lyle is going to have an introduction he is going to do for us. Complete Street Chair Furfaro: But with a PowerPoint? Okay, I am going to move over there by Eddie. Lyle, you have the... Mr. Tabata: You have a copy, just a PowerPoint. So per our presentation with Get Fit Kaua`i or with Bev Brody and Marie and myself, I was asked to have a summary prepared of CIP budget items that is in this budget ordinance. So the P roJ ects...I will really go real quickly the framework of how we are organizing Public Works to deliver Complete Streets, and we talked about Michael Moule and the internal process that we are presently traveling. And as just a matter of fact, tomorrow Dan Burden will be here. Dan Burden will be working with us to help train us on how to present community involvement and community informational meetings, and then in the afternoon he is going to be doing a train the trainer for walking audits in the communities. Chair Furfaro: Excuse me, Lyle, before you go any further, I am doing a follow up at some request, I am meeting with the Vice Chair of the Salary Commission, so I am going to be going downstairs; Mr. Finlay is here, and if I can turn the meeting over to you at this point. Mr. Rapozo: Sure. Mr. Tabata: Okay, and next week Michael Moule is coming back for a personal vacation, but he has hours that he still owes us, and we will be setting a couple of hours aside for him to review some of the engineering work we have done. So this, again, you saw was a summary of all of our projects that we are scheduling to work on, and finally, the CIP, the budgets that are funded in this year's CIP. So you can see at the very top Kawaihau Road — engineering study, and engineering is the planning and development. We went out for procurement April 19, 2012 CIP budget(cont'd)p.56 for professional service. Hanapepe Road Resurfacing again, out for procurement for professional service. Puhi Road, ultra thin white topping, we are presently out for procurement for design. Rice Street, we are using some of the money in the Rice Street crossing improvements to do our own internal planning and design to do a road diet on Rice Street to provide for bicycle facilities. Hardy Street is presently in final planning and design for design build procurement for final design and construction. We are almost completed with the preliminary planning and designing work. Koloa Circulation Plan, short-term improvements, we have a little bit of money left that we are keeping to help us with the final work that we are doing for the Koloa School crosswalks. And then the three Planning Projects, the Koloa Development, Lihu`e Development, and General Plan study updates, discuss with Planning Director Dahilig, the Complete Streets policies we will be including in the development of these plans, so just a quick summary as was requested by Chair in our Get Fit Kaua`i presentation update of the complete streets policy. Okay, then I have -- I Mr. Rapozo: Lyle, real quick. Mr. Tabata: Yeah? Mr. Rapozo: You know that graphic you just showed with the complete streets safe routes, and where is that located? Mr. Tabata: They're all embedded in highways. Y Mr. Rapozo: Okay, it is in the highway project? Mr. Tabata: Yeah. Mr. Rapozo: Okay. I am showing on your complete streets safe routes on Kauaihau Road I'm showing$300,000. Mr. Kudo: It's current. Mr. Tabata: I am sorry, my error. I just put what we actually asking for extra this year. Mr. Rapozo: Okay. li Mr. Tabata: So my error, its total 300 but asking we just asking for another hundred.-- Mr. Rapozo: For additional, okay got it, thank you. Mr. Tabata: So my morphing picture didn't work last week, so this is one that we wanted to show, and then we have another one, if people recognize it and we're doing Hardy Street and recognize this, this is Umi street and the plan outside of doing the main Hardy Street we have to get the kids to schools from the subdivisions so this is a morph of what Umi can look like. And you will question where is the center line? Mr. Rapozo: Okay, what's the punch line now? Mr. Tabata: The cars would run in between the lines and wide enough for cars to travel, and the removal of the center line is a traffic calming device, and you see the decals in the road. They're called share roads and we're telling the community and the drivers that they need to share the road and outside of the solid line is the walk path, So that is what you April 19, 2012 CIP budget(cont'd)p.57 call a road diet. Something you can do without major infrastructure upgrade. So we just need community education. You're the first -- this is a morph that we are going to use as a tool to help educate the community. Mr. Dill: So understand we're not going ahead and stripe this tomorrow but to give you an idea of the concepts we're looking at. Mr. Tabata: I have one more which would include major retrofits, and this is where we would definitely utilize our... Mr. Rapozo: That's Hanapepe Town right. Mr. Tabata: We will utilize our partners in the federal government to do a major retrofit upgrades so this is what it is pre, and if you dream what it can be. Not necessary four lanes on Kaua`i. Okay. So that's it for this presentation. I will take questions. Mr. Rapozo: Thank you Lyle, and in following the guidelines set by the chair we will entertain questions for budgets and we're going to start on the top of the list. I'm get an echo and I don't know if somebody's mic is on but... we'll follow the same process go right down from the top of the list and we'll vet out that project and move on, so anyone have a question on any of the projects on page three of 10?Mr. Bynum. Mr. Rapozo: Okay. I'm sorry. I thought I saw your hand go up. Councilmember Yukimura. Ms. Yukimura: So for your Kauaihau Road complete streets proposal that you're asking for $100,000 or using a $100,000 for it? Mr. Tabata: 300 total. Ms. Yukimura: Oh okay. 300 total. Will that anticipate or include a roundabout? Mr. Tabata: Yes. You know it's up -- we're encouraging the designer to look at options for that five way. Ms. Yukimura: Right. Mr. Dill: So that is -- Mr. Tabata: So that is one of the charges to the designer to look at a roundabout. Ms.Yukimura: Same thing possibly with the Umi Street. Mr. Tabata: Umi and Hardy is planned. It's in the design. Ms.Yukimura: There is a roundabout? Mr. Tabata: Yes. Ms.Yukimura: Okay, so that is another way to slow people down at the entry to the street. Okay. And for the Lihu`e General Plan technical ... I�� April 19, 2012 CIP budget(cont'd)p.58 Mr. Rapozo: Hold on, hold on, anymore questions on the Kauaihau complete streets Mr. Bynum? Mr. Bynum: I appreciate that answer. That's a very awkward intersection and it's one I was actual there when Michael Moule was there and when you get on the ground that close it's not round, it's kind of elongated so it might be a unique roundabout but I'm glad to hear you're heading in that direction and my question is, and I have asked it before and I want to put it on the record. It really is to cover that intersection right but it will stub out on each end with kind of a template that could be ongoing improvements on Kauaihau there. Mr. Tabata: We intend to take the street up to the park. One park from ... Mr. Bynum: From Kapahi Park Mr. Tabata: All the way to that Kapahi Park and look at it. Mr. Bynum: Very good. And just to back up a little bit to your Umi street. Mr. Tabata: Yes. Mr. Bynum: And I appreciate you presenting those that are low cost, short term, can be done quickly. I am also looking at Akahi and Elua Street which in our Lihu`e Town Court Plan and some of these streets eventually I hope we don't do the low cost alternative but put in pedestrian elements, landscape because we have the right-of-ways, and we have a vision for those two streets as being connected to the business district here. I walk now to Tip Top fairly frequently. It's not an easy walk right now, so I said in my letter to the Mayor would he consider or if I could get some cost estimates of what it would cost to put that pedestrian infrastructure on the two key streets because it will connect with Hardy and connect with the new alignments of the streets that are part of the Hardy Street thing so I want to put that on the record. Thank you very much. Mr. Rapozo: Kauaihau Road Complete Street Safe Routes. Anymore questions? If not that one is done. Who has another question on any of the projects? Councilmember Yukimura. Ms.Yukimura: Your General Plan technical studies Mr. Rapozo: General Plan technical studies... Ms.Yukimura: On your last slide. I don't know where that is. Mr. Rapozo: Where does that show up Mr. Tabata: on the budget? Mr. Tabata: Those are Planning projects, so they are in towards the end, in"other". Mr. Dill: Page seven. Mr. Rapozo: Are you going to cover all the Planning projects? Mr. Tabata: No. They cover their own. April 19, 2012 CIP budget (cont'd)p.59 Mr. Rapozo: Okay, well we will wait for Planning. Mr. Dill: Those were included and we want to show other street efforts. Mr. Rapozo: Okay. So we'll cover planning with Planning. Next. I apologize to be seeming to be rushing but I don't want to be here till... you heard the chair, we are going to stay here till we are done and I kind of want to... so anymore questions. Mr. Bynum: I am lost. Mr. Rapozo: Anywhere on the page. Councilmember Nakamura. Ms. Nakamura: One of the projects I think that was approved last here was the Kahuna Road realignment and wanted to find out why that was dropped. Mr. Tabata: It's not. Ms. Nakamura: The Kahuna Road realignment $1.8 million which is now down to zero so I just wanted to know why it was on the list first and why it's was removed? Mr. Dill: Kahuna Road realignment is accruing as a result of the desire of the State of Hawai`i to decommission the lower Kapahi reservoir, so by agreement with the State since the County owns the road which forms the dam for the reservoir we are working with them and participating with them on that project. The State requested that we contribute and participating funding wise and we contributed 1.8 million towards the project with the state and doing that according to executed memorandum of the understanding and with agreement with the State. What came up during the course of the design of their decommissioning they proposed to close the road for three to four months and that raised a huge red flag to us because now you've got issues with fire and emergency services getting up there. The only other option there is to cross the Kapahi Bridge so we asked them to look at another possible solution which would be ... because they were proposing to do a temporary road. I forget the (inaudible) in excess of a million dollars or around a million dollars I think. We said that's going to be the permanent new road and that way we can keep the other road open the whole time and then move to the new road and we can get a better road because the existing road has problems with curvature side distance etc. That drove the cost up and we're still in negotiations with the State of Hawaii and have been for some time. They came back with a proposal which from our perspective was one sided in their favor and because we didn't for see that this was getting resolved in a timely fashion we didn't think it would be encumbered in this time frame that's why we're not showing funding for that. However that's a project that we are still pursuing but don't show funding for it. Ms. Nakamura: Thank you. Mr. Rapozo: Anymore questions on the Kahuna Road realignment? Okay.Any other questions?Mr. Bynum. Mr. Bynum: It's on this list and I am not sure why Kapa'a Ocean one year study and I have been waiting to read that study for six years. Is it done? I believe we funded two ocean studies one for Poipu and one for Kapa`a, and the Kapa'a one is the older one and it only shows $38,000 so I'm thinking its pau already.-- April 19, 2012 CIP budget(cont'd)p.60 Mr. Dill: You received the report of 38,000 is the residual funding remaining in that. We have received the report. We can get you a copy if you like. Mr. Bynum: I have been waiting for five years. Mr. Dill: I'm sorry. I was unaware you wanted a copy. Mr. Bynum: And it's not on this list, but I don't know why it's on the list on the road. Mr. Dill: I don't know which list you're pointing to Councilmember. Mr. Bynum: I'm sorry. Mr. Dill: It's on which list? I can't see what you are point... Mr. Bynum: The ocean study is on here and yes, I would like to see a copy of that thank you very much. What is not on the list because this is the highway's list and there is a Poipu study as well. Maybe have to wait until later. Anybody know where that is? Mr. Rapozo: That's not-- Mr. Dill: Parks I think, isn't it? Mr. Bynum: Okay. Mr. Dill: I think it's under parks. Mr. Rapozo: The Kapa'a ocean study on your recap shows it was originally funded at 50,000 encumbered 11,700 remaining and leaving a balance of 38,247 which is what's on our CIP budget. If that project is completed we can remove the 38427, correct? Mr. Dill: We are looking at potential change order for some additional study. Mr. Rapozo: This ocean study was that for Mona Kai— Mr. Kudo: No this is just for Kapa`a. Mr. Rapozo: Oh the beach park, okay. So you still need that; right? Okay. Mr. Bynum you still have the floor. Mr. Bynum: So the Moana Kai sea wall it's. Mr. Rapozo: Hang on. Anybody else have questions on the ocean study?You do? Mr. Kuali`i: No. Mr. Rapozo: Okay. Good. Go ahead Mr. Bynum. April 19, 2012 CIP budget (cont'd)p.61 Mr. Bynum: I assume it's on yours as well Moana Kai and what's the other one? Mr. Rapozo: Pona Kai. Mr. Bynum: Right and I heard there was hold up at the health department. Mr. Dill: We have actually three projects that we put together - - where is the line item for that three sea walls different projects Moana Kai, Pono Kai, and Aliumanu Road (inaudible). All of those projects have been are in permitting for at least a year. Mr. Bynum: Yeah. Maybe I could save you time. So you put all that money into one line item the 3 million at the top. Mr. Dill: Correct. Mr. Bynum: And whatever pops first use that money? Mr. Dill: Correct. Mr. Bynum: But it's not sufficient to do all three projects? Mr. Dill: That is also correct. Mr. Bynum: And that is part of the thing that I think communication could help because if I knew the holdup here was the health department and some of us have connections with our Legislatures and the Governor and maybe there is something the political people can do to help break up the log jams if we know about them. Mr. Rapozo: And if you don't believe that ask Teddy Diligdig we got the Presidential Declaration signed during lunch yesterday. Go ahead Mr. Kuali`i. Mr. Kuali`i: So I just wanted to go one step further. With what you just told Councilmember Bynum, so the Moana Kai sea wall construction line item has 1.5 million and the change is minus the 1.5 million so ends up being zero. Mr. Dill: Right. Mr. Kuali`i: But if that went up into the Aliumanu Road, Pono Kai, and Moana Kai sea wall wouldn't that 3 million go up to 4.5 million. Mr. Dill: Okay here is what we did. We had three projects -- Aliumanu Road, was funded at 3 million. Pono Kai was funded at 1.5 million and Moana Kai at 1.5. I'm not sure if I have those numbers exactly. Mr. Rapozo: Maybe you do but Larry you know on the and maybe it's not a CIP project but the Pono Kai is not showing up on the list. You only have the Moana Kai ...you have the new Pono Kai and it could be in parks. I'm not sure where it would be. We haven't gotten that far. Mr. Dill: So you don't see the Pono Kai Project? April 19, 2012 CIP budget(cont'd)p.62 Mr. Rapozo: It's not in your highway project. Mr. Dill: Okay it is listed under the building project. Mr. Rapozo: Buildings, okay. Mr. Dill: So that one is 1.6 approximately. Mr. Rapozo: Correct. Mr. Dill: So we had three projects funded. What we decided to do not knowing which project if any would finally receive the permitting approval we created a new project line item on page 3 of 10 near the top and that is Aliumanu Road/Pono Kai/Moana Kai sea wall, and funded at $3 million the intent there is whatever project comes up next year we will pursue that project. Mr. Kuali`i: So the 1.5 is just going away? Mr. Dill: Correct. Mr. Kuali`i: Thank you. Mr. Rapozo: Any other questions? Go ahead Mr. Chang. We're still on this Pono Kai, Moana Kai, or Aliumanu Road. That's it. Okay. Mr. Chang go ahead. Mr. Chang: On the line item pedestrian crosswalk safety improvements have we gotten anywhere with the crosswalk request that I had following up? I have not heard anything back from the crosswalk -- from the Kauai Community Federal Credit Union side of Puhi across the street to Kukui Gorve? Mr. Kudo: Yeah, I have the request and I need to respond back to you on that. 1 Mr. Rapozo: Is that favorably? Mr. Kudo: Well part of the developments for Safeway to do some off site work and that is part of the work they were supposed to be doing for the County. Mr. Chang: No, the Safeway is by Chiefess Kamakahele is that correct? Mr. Kudo: Yeah, and this crosswalk that you ask for was by Kalepa Street I think. Mr. Chang: No. Mr. Kudo: Between Star Market and Kauai Federal Credit Union building. Mr. Chang: Yes. Mr. Rapozo: It's in progress? '4 April 19, 2012 CIP budget(cont'd)p.63 Mr. Kudo: It's a condition by Safeway to do outside work and part of the work. Mr. Chang: Okay, I don't understand. Isn't Safeway across from Chiefess Kamakahele? Mr. Kudo: Yeah. Mr. Rapozo: But they can condition Safeway to do anything. Mr. Kudo: But there was offsite work that Safeway supposed to be doing for the County as part of the class zoning condition. Mr. Rapozo: Mr.Kudo can you respond to him? Mr. Kudo: Yeah, I will respond to him. Mr. Rapozo: That would be easier. If not call Mr. Bynum and he has connections and we can get Safeway to come and paint that crosswalk for you. Mr. Chang: I'll send the communication to Mr. Bynum. Mr. Rapozo: Anymore questions for pedestrians crosswalk safety improvements? And Larry you took it from General Funds and moved it into the Bond correct? Mr. Dill: That is correct. Mr. Rapozo: Okay. Any other questions? Mr. Bynum. Mr. Bynum: Rice Street crossing improvements and that is the post office realignment;right?292465. Mr. Kudo: Originally the Rice Street crosswalk improvements were there were three improvements. One at Kalena and Rice Street and there's another mid block crosswalk by the Lihu`e Townhouse on Rice Street and then there was improvement requested at what Haleko and Rice. The one at Hale Ko and Rice we took away the crosswalk and moved it more towards the Kuhi`o Highway. So that crosswalk is done I would say. Mr. Bynum: Okay. So my question is about -- I understand Hardy Street we're going to realign driveway entrances on Hardy. On Rice Street we're going to realign drive entrances across from the Post Office and reinstitute that crosswalk which will be very popular for the people working downtown. Mr. Kudo: That will be part of our complete street for Rice Street to look at those three crosswalks. One at the Post Office. Mr. Bynum: I thought that was in the works and out to bid. Mr. Tabata: Excuse me Wally, the intersection where infrastructure work is part of the Lihu`e Civic Center upgrade that Doug is working on, the site improvements. I'm sorry Lihu`e Civic Center site improvements. Mr. Bynum: Is that the ADA site improvements? April 19, 2012 CIP budget (cont'd)p.64 Mr. Tabata: It includes ADA improvements. Mr. Bynum: So that is out to bid, right? What is the status of that? Mr. Dill: I believe Phase I is, yes. Mr. Tabata: Yes. Mr. Bynum: I think for people who work downtown, when are we going to see changes? Because it is going to realign the driveway into the Civic Center, right? Mr. Tabata: So we timed... Mr. Bynum: That crosses the Post Office Street. Mr. Tabata: As Wally mentioned, we are tying that into our road diet for Rice Street, and there is a new crosswalk as part of that design that we are doing in house. Mr. Bynum: Okay, I will follow up on that. Mr. Tabata: And with some of these funds, we hope to tap into to complete our street. Mr. Bynum: We have ADA improvements, Civic Center improvements, Hardy Street, all those things kind of intermingle, right? Mr. Dill: Yes. Mr. Bynum: And they are all fairly close as things go. Mr. Dill: Lihu`e Civic Center site improvements are close. That is correct. Mr. Bynum: So I can get that information later. Mr. Dill: Yes. Mr. Bynum: Okay, thank you. Mr. Rapozo: Thank you. Any follow-up to the Rice Street crossing improvements? So these moneys...I guess I am a little confused, but those moneys are slated to be used this year? Do we have a specific project focus for those? Mr. Tabata: Yes, yes. Mr. Rapozo: And are those the crosswalks that we were talking about? Mr. Tabata: Yes. April 19, 2012 CIP budget (cont'd)p.65 Mr. Bynum: (Inaudible) one of them sounds like he already resolved... Mr. Tabata: There are multiple projects, and we are just making sure we have some money there for the things that we need to complete and finish. Mr. Rapozo: Okay. How long has that money been there? Mr. Tabata: It has been there the last two years. Mr. Rapozo: Yeah. So you know, I am trying to following this 12- to 18-month guideline, and I just...I guess... Mr. Dill: Councilmember Rapozo, the has changed with the introduction of the Complete Streets initiatives. So we took a step back and looking at...I think Lyle mentioned the possibility of road diet, bike lanes, as well as the crosswalks down Rice Street. So we kind of changed course a little bit on this one, to (inaudible) what we are trying to do and expand on it. Mr. Rapozo: Fair enough. Any more questions, Mr. Bynum? Mr. Bynum: So the Rice Street thing I haven't had time to talk to you about more details but is there funding for that or is that... Mr. Tabata: The design is being handled in house, and roads budget for the paint has been -- the material has been added for paint and signage and traffic calming devices. Mr. Bynum: Okay. So I can talk to you about that another time, and then other questions on other projects? Mr. Rapozo: Hang on. You have a follow up? Ms.Yukimura: About Rice Street. Mr. Rapozo: Go ahead. Ms. Yukimura: So we're not doing anything about the inadequate sidewalks in this project? Mr. Tabata: Not at this time. That would call for a major retrofit, so the plan is when we do the repaving of Rice Street to upload that and reprogram to include the retrofits and we're using STIP money, I'm sorry with the use of STIP funds. Ms.Yukimura: Okay. And do you know what kind of a time frame we're thinking about that? Mr. Tabata: I don't have that right now. Ms.Yukimura: Okay. Because I mean-- Mr. Tabata: But the road diet we can assure will be within the year. April 19, 2012 CIP budget (cont'd)p.66 Ms.Yukimura: That is wonderful. Mr. Tabata: And improvement. Ms.Yukimura: Yeah. I really am grateful for all of this very creative thinking how to do the low hanging fruit, how do get things done quickly, but I also am aware that the sidewalk issue is something that is a prerequisite to Rice Street coming back as a more well used street and a more business district kind of street that's all.. Mr. Tabata: So to clarify majority of Rice Street does meet the standard. If we want to take it to the next level on one side of the street we will need to do more right of way acquisition. Ms.Yukimura: Right. That's on this side of the street where we are now? Mr. Tabata: Yeah. Ms.Yukimura: Yes Central Pacific Bank side. Mr. Tabata: And there are some obstructions which we will have to move on the clear side. Ms.Yukimura: But for the sidewalk cafes and that kind of thing. Mr. Tabata: Definitely, so that would require a major retrofit of which -- then we -- I don't think we can afford on our own so if we do the 80-20 with STIP and the Federal money it would become more affordable for our community. Ms.Yukimura: And you know actually we need to have a community facilities program that works want just for the big developer, but that works for the smaller community needs because that's one way we could do it. Mr. Tabata: That's where we would ask for your help with that, so I think what you're asking for we will have include in the development plan with planning with Planning. Mr. Rapozo: What JoAnne is asking for is a committee discussion which will happen in Mr. Bynum's committee. Ms.Yukimura: Yeah just some study and checking on -- because you know the CFD Ordinance that we passed was touted as something that would be available for like Kekaha and elsewhere but it's not really workable and we have to find something that is and I'll take that on as a project. Mr. Rapozo: Good for you. I cannot wait. Mr. Kuali`i, and Mr. Bynum. And I think we have a tape change coming up in a couple minutes so go ahead Mr. Kuali`i. Mr. Kuali`i: Just for a little bit of clarification because you were mentioning the Civic Center side improvements and the road diet what have you...this Rice Street crossing improvements is for relocating and restriping walks. You mentioned bicycle lanes. Is there striping for bike lane up and down Rice Street? kl 1 April 19, 2012 CIP budget(coned)p.67 Mr. Tabata: Yes. Mr. Kuali`i: So in fact if the bike lane is on the edge where the sidewalk is too narrow, bikes and walkers can share that area maybe? Mr. Tabata: We are using the existing right-of-way, the paved right-of-way to do... well... Mr. Kuali`i: You are going to lose parking spaces. Mr. Tabata: I think we should discuss it in Committee because we will be revealing too much right now. Mr. Kuali`i: But bike lanes are included—stripping? Mr. Tabata: Yes. Mr. Kuali`i: Thank you. Mr. Bynum: I'm not going to get into the details and we will do it later even though I want to ask these questions, but I want to say I am pleased with these answers I am hearing right now and taking the initiative short term and when Councilmember Yukimura asked the question how are we going to address inadequate sidewalks and three years ago we heard there wasn't a problem and not at this time and there is thought process and it's wonderful. Mr. Rapozo: I know there is a question in there someplace, Mr. Bynum. Mr. Bynum: Do you realize how pleased I am with these answers? Mr. Tabata: I do now. Ms. Nakamura: I have a question about the Wailua emergency by- pass improvements slated for one million dollars in the PID... Mr. Dill: Excuse me, Councilmember Nakamura. When Highways comes up, that will be one of their projects. Ms. Nakamura: Oh, I am sorry. Mr. Rapozo: I guess it is safe to say that we are... as we go through complete street/safe streets, we got to be kind of flexible because as you develop this contract, things will change. With that, standby, do not leave your seats, we are going to take a tape change. There being no objections, the Council recessed at 3:33 p.m. The Council reconvened at 3:36 p.m., and proceeded as follows: Ms.Yukimura: I want to ask some questions about the Northern leg by-pass road, we have one point three million dollars there and do you have a PID for it? Mr. Tabata: Yes I do. April 19, 2012 CIP budget(cont'd)p.68 Ms.Yukimura: Where is it under? Highways? I do not have Engineering. Mr. Kuali`i: Other? Ms.Yukimura: Is it up to date so we can actually ask questions from it? Mr. Tabata: I believe so. Ms.Yukimura: Well, first I have to find it. Mr. Dill: (Inaudible) Actually four thousand with the County funds... the one point three, nine, two million total is four hundred thousand out of the Highway Fund—County Funds and the remainder is Federal Highway. Just to clarification. Mr. Rapozo: It is in Highways, it is the third PID from the end. I am sorry—the fourth. Ms.Yukimura: So, it appears from this PID you are following the 1997 long range transportation plan that is now being updated because it is so old? Mr. Tabata: That is the current plan that we have the 1997. Ms.Yukimura: And we are going to spend one point million dollars before we decide that what our current direction is? Because we are right in the middle of updating the plan, like within a year, I think. Mr. Tabata: Council, if I may... in the meetings I have attended for a long range transportation plan, it is a project and because we already on the skip it is moving forward. Ms.Yukimura: You know the more recent plan is the Koloa-Po`ipu circulation plan and that plan and done maybe in 2007. While it's on the list it's not to be done for another ten years and there are many other projects that are immediate priorities or year one, or even two to five that are said to be our priorities for the County that I don't see funded in our projects right now. For example 85,000 for downtown sidewalk enhancement, Waikomo Road, and Po`ipu Road — safety enhancements one point two million. Koloa-Po`ipu shuttle service — three hundred thousand and there are County projects... I do not know. Koloa Town traffic flow and safety improvements a hundred thousand, so how are we reconciling those priorities? Mr. Dill: We have other projects and I'm not sure how they match up with your list and we have other projects we're pursuing. Ms.Yukimura: Well I am just talking about the six year CIP process and it's supposed to be tied to our infrastructure is tied to the land use plan. Mr. Dill: And this plan was initiated some time ago with the environmental and near the end, so this project won't be implemented for construction several years down the road... Ms.Yukimura: But you are going to... April 19, 2012 CIP budget(cont'd)p.69 Mr. Dill: Environmental has to complete the design and we have a partnership, if you will with Kukui`ula right now — it is part of their development that they are providing for this project. It is wise for us to take advantage of it while it is available to us. And while we put it on the STIP fund and it was put on the STIP fund so we can get Federal Highways money to support this as well. Ms.Yukimura: Will twenty million dollars and four million from the County? Mr. Dill: For the design at this stage, we are requesting. Ms.Yukimura: We are doing the project for Kukui`ula? Mr. Dill: No, no. Ms.Yukimura: Well, who is setting the priorities? What if we want to use Kukui`ula's money for some other impact fees? Mr. Dill: No, it is not using the money. We are using their land as a self match for the Federal Highways money. Ms.Yukimura: Okay, and they are giving that to us as part of their obligations under the rezoning law—ordinance? Mr. Tabata: That is part of the ordinance. Mr. Rapozo: That was part of the zoning conditions. Ms.Yukimura: Was it specifically giving land for the Northern by- pass? Mr. Tabata: It says that they will participate in getting the land for the County. Ms. Yukimura: That land for that project? Mr. Tabata: That is correct. Ms.Yukimura: Okay, but we still... this presumes four lanes through Maluhia Highway, right? Through the tree tunnel? I mean, you are going to funnel all that traffic all the way up to Maluhia now, so do we have money... and we actually going to be able to do that? And four lanes from the tree tunnel to Lihu`e? I mean that is really the total cost of the project if you are going to make that work. Mr. Tabata: We have a planning project for Maluhia Road. Ms. Yukimura: Is that in this budget? Mr. Tabata: That is correct. Ms.Yukimura: Where is that? We will not talk about it but I just... Mr. Rapozo: Well, it is on this list. April 19, 2012 CIP budget(cont'd)p.70 Mr. Tabata: Maluhia Road improvements. Mr. Rapozo: Those projects are there. Ms.Yukimura: Is that on the same page? Mr. Rapozo: Yes, it is. Ms.Yukimura: Can you just... Mr. Rapozo: Six hundred and sixty-nine thousand... Mr. Tabata: It is planning money, it is our match to go with the STIP. Ms.Yukimura: I do not see a hundred eighty. Mr. Tabata: The next phase of what is going on with Kaumuali`i Highway is the Lihu`e Mill Bridge and then they are going to pick up where they are leaving off all the way to halfway bridge. And then they will continuie from halfway bridge on to Maluhia. Ms.Yukimura: And how much money is there for that? How much does it cost and how much money will we have? Mr. Tabata: It is the State's project. Ms.Yukimura: But they are getting Federal money to do the State's projects, right? Mr. Tabata: Yes and it is high on their priority. Ms.Yukimura: So, it is higher than the Wailua-Kapa'a by-pass road? Mr. Tabata: At this time. Ms. Yukimura: And it is higher than the northern bypass which is going to need... I mean the northern connector which is going to need Federal moneys too? Mr. Dill: The northern connector road? Ms.Yukimura: Yes, the northern connector road... you said it is a twenty million dollars and we are going to get... right? You are going to get sixteen million from the Fed's and four million from the County. Mr. Tabata: As we progress, we move up the later. We are in the planning and development still. Ms.Yukimura: At a time of declining Federal moneys? Mr. Dill: I cannot tell you what are the priorities for Federal Y p Highways right now. I can tell you that these projects are there right now and prioritized for STIP right now. I6 April 19, 2012 CIP budget (cont'd)p.71 Ms.Yukimura: Lyle, you were there at the long range transportation planning process, we are talking about a whole different system, we are talking about complete streets on the level of intercommunity connection. You have only cars feeding into your small community. You can have complete streets but if they're filled with cars. What is the scenario we're working for?What is the vision for the island in terms of transportation?And I won't go there but we should have another discussion about it. Mr. Rapozo: And we can, Councilmember Yukimura. Ms.Yukimura: And that ties in and we will go to that with Planning, the general planning technical studies which you say are almost a million dollars for complete streets. Mr. Rapozo: Hold that JoAnn. Mr. Tabata: Complete streets are component of these plans. In each of these plans, complete streets will be included and recognized as part of the discussion. Ms.Yukimura: I will wait for Planning to ask those questions. Mr. Rapozo: I think the northern leg project is ongoing. This is not a new project, this is a project that has been going on for many years. It is a condition of the rezoning application of Kukui`ula which in fact they were required to provide the land. We knew back than that it was going to be an expansive project because it goes through cross of water way and there is some core of engineering issues. We talked about the twenty million and it will probably be more by the time we actually build that road. What it does, it clears up that intersection and takes away a lot of congestion in the Koloa Town by the Chevron. This is the discussions we had Larry well before you even stepped foot in this County and some of these projects are ongoing, some of these projects are on the STIP, we have somewhat committed to the project. I agree with some of the concerns of Councilmember Yukimura but I think we need to understand that some of these projects are... we need to see it through and it is going to be expansive. Mr. Tabata: You are right and being that being that the State is (inaudible)to spend the Federal money, if we do not stay on track the State stands to lose the money. Mr. Rapozo: Correct. Mr. Tabata: Which goes all the way down to us. Mr. Rapozo: Right. Ms.Yukimura: And the money is not available for some of the projects that might be community priorities? Mr. Rapozo: It's going to be record for another jurisdiction that has a shovel ready project and that's where it will go. Ms.Yukimura: Well we don't have a shovel ready project. Mr. Rapozo: Exactly. April 19, 2012 CIP budget(cont'd)p.72 Ms.Yukimura: So the question is should we spend money to get that shovel ready or to get another project shovel ready? Mr. Dill: The point that is being made is that if we do not use these funds that are currently on the STIP and approved, Kaua`i stands a strong chance of losing that money for any project and it will be gobbled up by the State or another County. Ms.Yukimura: And this STIP money is for the design of the project? Mr. Dill: Correct. Mr. Bynum: I actually like the answer I am hearing compared to a few years ago because you're talking about completing a planning now, and I heard you say no decision or commitment to construction is being made at this point for either of these. Is that correct? Mr. Dill: We are definitely moving in that direction... Mr. Bynum: But the money that is in here right now is to complete the planning? Mr. Dill: We are currently right now completing the planning stage and this money here that you see in budget is to move into the design stage. Mr. Bynum: And that includes the fulfillment of the conditions? Mr. Dill: Correct. Mr. Bynum: But that is not a commitment to construct? Mr. Dill: Correct. Mr. Bynum: And Maluhia... I am having a hard time reading this... Mr. Rapozo: Maluhia has four hundred eighty-nine thousand, two hundred forty-four of STIP money and the County match of one, twenty-five for a grand total of six hundred and sixty-nine thousand, two, forty-four. That is including fifty-five thousand proposed money for this budget from the Highway fund. Mr. Bynum: We are adding fifty-five? Mr. Rapozo: Correct. Mr. Bynum: And that also is about planning and design? Mr. Dill: This is planning. Mr. Bynum: Because I want to take a step back and say there was this Koloa Po`ipu circulation plan and that the community identified priorities and I agree with Councilmember Yukimura and if you guys aren't familiar with the plan and history please get familiar with it and the history because the community had a pretty strong investment in some of these projects and this was in the planning process and we thought the process was so good we hired him for the plan, and one other thing that is related to all of this is Councilmember Rapozo April 19, 2012 CIP budget(cont'd)p.73 talked about and the intersection by the Chevron and the northern bypass is in place now, connects to that road, and the one connector road is just this much short and that's a high priority for me and I have been trying to get answers on that for a long time, so do you know what I am talking about?I mean there is a long huge several miles where there is no connector between the two. The road ends except the last few feet and the right-of-ways and the turn lanes. I have been trying to get that back on the radar screen. But I think the northern leg of it is probably not something that we will do in the next 10 or 15 years. I don't think it will be on the State's priority in that time, but completing this design and to complete the things that Kukui`ula have agreed to seems like - especially with these funds. I am fine with that answer. I would have difficulty about putting huge amounts of county money into that what will be a really expensive project until some of the things that Lyle is talking about come to fruition with the state and we're talking 15-20 years and we're going to get the bridge here and just pass the college and we're not going to see a lot more for a long time is my prediction from the State on that. Mr. Rapozo: Councilmembers, May 5 the Administration is submitting another supplemental. You have until that time to lobby them and get it changed or at the end of the day you have the opportunity to vote any of the projects down. I don't know if this is an opportunity for us to debate with them. This is their priorities. We basically say yes or no, but if you have desire for a project I suggest that you get to them before the May 5 submittal and maybe you can change their minds. I don't know. Mr. Bynum: I think Larry's sense of we are so deep in to this now and if we do not, we are going to lose that STIP money and unlikely it is going to go elsewhere on Kauai, I think that is a good assessment. Mr. Rapozo: That is a constant with the STIP projects — Federally funded projects included the bikepath. That is what we hear all the time —if we do not spend it, we are going to lose it — that is the fact of life. We just got to understand that this is the Administration's priorities and I can tell you as we get into decision making, I personally will have some suggestions to remove some of these projects and move the funds back to surplus funds or reserve funds or general fund, but that is just me and we all have that opportunity. Any other questions on the funding of the Northern leg—Koloa by-pass. Ms.Yukimura: So, we are using Highway moneys for this — a hundred and twenty-five and fifty-five thousand, that is from our Highway fund? Mr. Dill: That is correct. Ms.Yukimura: So, we are using these money's instead of for repaving, we could put it our repaving account, we are taking it to build new roads instead of actually up keeping our existing roads? Mr. Dill: That is correct. Ms.Yukimura: Okay. That is a very conscious choice and a lot of communities are being to realize that they have to wrong ratio but we will talk about that later. Ms. Nakamura: The Lihu`e by-pass feasibility study. I was just wondering, I was looking at the project information document relating to this... Mr. Tabata: It is right above Maluhia Road, page three (3). Mr. Dill: In the middle of page three (3). April 19, 2012 CIP budget(cont'd)p.74 Ms. Nakamura: So, my question is the timing of this, what do you... what is your timing and what do you want to... do you have a consultant lined up? Mr. Dill: We do not yet. This is a preplanning feasibility study to do some preliminary design, preliminary cost estimating, preliminary routing. We do not have a consultant onboard for this yet. Ms. Nakamura: Can you generally describe the location of this proposed by-pass? Mr. Dill: It is in the same 1997 Kaua`i long range transportation plan. The by-pass runs and again conceptual right now from Kuhi`o Highway at the Kaua`i Beach Resort intersection, run down behind Hanamd'ulu, makai of Kalepa Ridge and then following cane haul roads through Grove Farm land all the way to Puhi. Mr. Tabata: Comes out to Rapozo crossing. Ms. Nakamura: Approximately, what is the length of that? Mr. Dill: Ballpark — three (3) miles but I do not have an exact number for that. Ms. Nakamura: Okay. So it is just to check on the... it is in the State long range transportation plan? Mr. Dill: Yes. Ms. Nakamura: Is it on the STIP? Mr. Tabata: Yes. Mr. Dill: This will be putting it on the STIP. So we had discussions with them and they had planning moneys available for this sort of thing, so we are in discussions with the State about that, yes. Ms.Yukimura: So it is not on the STIP but you are trying to get it on the STIP? Mr. Dill: Correct. They have given us indication that this is something that they can fund. Ms.Yukimura: Why are we doing all this funding on a plan that is about to be changed? That is very old and that was supposed to have been updated in 2002? Mr. Dill: You are correct that it is an old plan that is currently in the process of getting updated but from the meetings that I have attended and Lyle has attended, this is a project that has support. Ms.Yukimura: From whom? Mr. Dill: From the people that attended the meeting and State Highways does. April 19, 2012 CIP budget(cont'd)p.75 Ms. Yukimura: Yes, the State Highway guys want to do their plans, that is for sure but who should determine what the plans are for our island? Has it really been vetted in the community? Mr. Dill: That is the purpose of those communities meetings. They have had community meetings, I know that you have attended and I have attended and... Ms.Yukimura: You mean the long range land transportation planning process? Mr. Dill: Yes. Ms.Yukimura: They have one community meeting and there is no draft plan, you do not know what direction the plan is going, so you cannot say they are in support for the 1997 plan. Mr. Dill: The 1997 is formally adopted plan so there is support for that plan. Ms.Yukimura: Excuse me? Mr. Dill: The 1997 Kaua`i Long Range Transportation Plan is a plan that has been formally adopted, so there is support for that plan. Ms.Yukimura: This was adopted in 1997, how do you know... I mean other than the bureaucracy that is set up to follow these plans, how much assurance do we have that is really meeting our land use policies and our current... I mean look at complete streets, the change around in thinking. It is a different day. How can you say there is good community support for this idea? Mr. Dill: We are following an adoptive plan. Ms.Yukimura: That is soon to be change, possibly. Mr. Dill: Updated... yes. Mr. Rapozo: Well, the community's voices will be heard when we go to decision making, that is where we will decide if in fact we are ready for that or not. Again, this is what they want to do, JoAnn and I agree that plan is old but it is the adopted plan and I support that by-pass road, I can tell you now, personally and my constituents will say yes. I would assume even with the updated plan and who knows but I would assume that in the updated plan, the by- pass would be included because it is... Ms.Yukimura: Sure, in the context of a car base society, that makes sense but we do not know one (1) if we can actually support a road system that is going to be continually car based because many communities are finding out they cannot support it and therefore are spending a lot of money to do a system that they cannot build and they are spending money building new roads and they cannot even maintain their old ones. Mr. Tabata: Your point is well taken and my new education on being educated on the STIP process and sitting in on these meetings, to get on the STIP is almost an act of Congress. Nothing will get on the STIP unless it is on one of these long range transportation April 19, 2012 CIP budget(cont'd)p.76 plans. We have this opportunity to get these processes moving and you all know how long projects take, up to eight years to get a fully to construction in the STIP process. We still have to follow whatever plan is there 1997, 2007 or... Engineering has this backlog and we here coming in are just trying to steward this move things that we see should be the priorities to keep the ball rolling and not dropping it to make sure our County does not lose opportunities. Ms.Yukimura: One last comment and I will be done. I totally hear what you are saying Lyle and that shows the power of a plan and that is why I am saying that this community has to participate in the plan that is coming up because that sets the course. In setting the course, we have to make sure that it is a feasible plan otherwise we are pouring moneys into things that do not come to fruition and that is wasteful. Mr. Rapozo: Thank you. Any other questions on the Lihu`e by-pass feasibility study? That is exactly what it is, a feasibility study to see if it is feasible, it is unfortunate that we got to pay so much darn money—it is what it is. Anymore on page three (3)? Mr. Tabata: The previous page, page two (2) are the drainage projects that are part of Engineering also, I did not want to miss that opportunity, we have a clock III but... Mr. Rapozo: Let us finish on page three (3) and go to page two (2) and then go to page eight(8)because we got some engineering projects on page eight(8) as well. Ms. Nakamura: Can I ask about the Wailua emergency by-pass or is that another... for me, it is showing on Highways. Mr. Rapozo: Page two (2) Engineering drainage projects. Would you like to give us an overview? It is self-explanatory. Eight hundred six thousand dollars of new bond money for the levee repairs and culvert replacements. Mr. Dill: We are moving money from general to bond funds. Mr. Rapozo: Correct. That is not totaled out but about three hundred thousand dollars transferred over or less than three hundred. Hanapepe levees, Waimea levees... ( Ms. Nakamura: Do these repairs showing here on the Hanapepe, Waimea levees help to bring us up to the Corp of Engineers standards? Mr. Dill: The Hanapepe levee is in compliance now, so it is back in compliance and active in the program. The Waimea levees —we are close and these projects are not directed on getting us back in compliance because that is already in the works, so these are separate issues. I would say that they are related to maintaining compliance. Ms.Yukimura: Congratulations and thank you for getting us back to compliance or close to it, that is a real service to all the people who live in that area. Mr. Rapozo: Moving on to page eight (8). Larry, if you could just tell us what projects on page eight(8) are Engineering projects? Mr. Dill: The first one is the biennial bridge inspections and this is a project that we do every two (2) years. We are contracting consultant to inspect our County bridges—are Federally funded project. i'' . _ w April 19, 2012 CIP budget(cont'd)p.77 Mr. Rapozo: Moving g on. Mr. Dill: Hanapepe Bridge. Mr. Rapozo: Nothing new? Mr. Dill: Nothing new. Mr. Rapozo: Okay. We are moving forward, you guys are meeting with the community and everybody is happy? That is ongoing, right Larry? Mr. Dill: Yes. Mr. Rapozo: And in process, I should say. Mr. Dill: Correct. Mr. Rapozo: Moving down. Is Hanapepe public access yours? Mr. Dill: Yes. Mr. Rapozo: What is that? It looks like we removed that. Mr. Tabata: This is being combined with new project we are developing to... Mr. Rapozo: The lot improvements — the parking lot improvements? Mr. Tabata: N o... the Hanapepe public access that is tying into a new project that we are going to be developing and bringing forth for the next fiscal which would be a multi-use path from Hanapepe Town to Salt Pond Town, along the coastline. Mr. Rapozo: Perfect, that would be nice. Mr. Tabata: But the next project is Hanapepe Town parking lot improvement. Mr. Rapozo: Okay, that is a new add. Mr. Tabata: Yes, we have done our due diligence and this is what we are asking for to improve that—it is an executive order piece of property in the middle of town to add to parking facility. Mr. Rapozo: Is this near the whole town where we have the Art Fair? Mr. Tabata: The Swinging Bridge area, yes. And to put lighting. Mr. Rapozo: How many stalls? Mr. Tabata: Off the top of my head, I do not have that. April 19, 2012 CIP budget(cont'd)p.78 Mr. Rapozo: That is definitely is needed because that place, especially on the... Mr. Tabata: And we have met with the community and they choose the method of creating the lot. Mr. Rapozo: Anymore going down Engineering projects? Mr. Dill: Kamalu Bridge. Mr. Rapozo: That is a shared project with Federal Highways, correct? Mr. Dill: Correct. Mr. Rapozo: Moving on down. Mr. Dill: Kapahi (inaudible) Bridge are historic bridges in the Wailua — Kapa'a area are moving forward with the 106 process right now with Federal highways p g s p g g Y during community meetings to make sure (inaudible) Mr. Bynum: Context sensitive design, recognizing the historic nature of these bridges particularly in my mind—Opaikaa? Mr. Dill: I would encourage you to attend the meetings to make sure you... Mr. Bynum: I encourage you to let me know when they are so I can put it on my calendar. Mr. Rapozo: Opaikaa Bridge concerns me because that bridge is... I know the weight limit was lowered. I do not know how often, I know we got the funding for the bridge inspections but I do not know when Opaikaa was last inspected and that is kind of scary. I trust the inspector but... we will send something over to get a copy of the most recent inspection but I am worried about that one. Is Kapaia Swinging Bridge on yours as well? Mr. Dill: Yes. The Kapaia Swinging Bridge — our plans are changing because of the recent damage from the storm. We are consulting Engineer to prepare the plans for repair. They were out here to do an inspection and we have to reassess and regroup. Mr. Rapozo: And you have explained it well, yesterday. Ms.Yukimura: On Kapaia Swinging Bridge, at least what I understood to have been said yesterday is different what you told me informally Larry and I want to get it on the record. Mr. Dill: Sure. An update to what Lyle presented was that — our consulting Engineer had prepared drawings to do some repair work of the bridge. Obviously the scope of that has changed, and I want to make sure - what else did we share in our conversation? That he was going to look at... April 19, 2012 CIP budget(cont'd)p.79 Ms.Yukimura: I think what you sent to DCAB was a design for stabilizing the bridge, right? Mr. Dill: Thank you, yes. Chair Furfaro: I just want to add, stabilize the two (2)towers. Mr. Dill: Yes, the two (2) towers and a little between. Chair Furfaro: But the primarily what we had approved was the two (2)towers. Mr. Dill: Right, that was the focus of this. Ms. Yukimura: And what the floods did was to... and I heard you tell me and I could have heard wrong was to destabilize the two (2) towers in some way that is not fully understood yet. Mr. Dill: Correct. The engineer and he's original assessment said you need to basically replace the two (2) towers, he later came to the conclusion that one of the towers is okay and so we are going through phase one of the towers as well as some of the deck and of course the body will be relooked now because it looks like the towers sustained significant damage from the storm. Ms.Yukimura: So we are actually back to square one (1) because the design that was done by DCAB is no longer current? II Mr. Dill: That is correct. Ms.Yukimura: And even cost estimates that would have been drawn from it which I do not think yet had been done would have to wait for a reassessment? Mr. Dill: That is correct. Mr. Tabata: That is what I represented the Engineer had to go back and (inaudible) but he at least (inaudible) to go and clear debris, so we are starting that process. The right of entry so Roads can go in and clear the debris. Ms.Yukimura: I also heard that four (4) months to construction once you start or something like that but I did not know what the context of that was so... Mr. Dill: (inaudible) because we do not even know now what the scope is going to be. Ms.Yukimura: I guess the question would be when can we get a reassessment? When would a reassessment be done to give us some idea of what the situation is and what would be needed if the goal is still to stabilize the bridge? Mr. Dill: I have to talk to the consulting engineer to find out in his opinion is salvageable now at this stage and until I do that, I cannot tell you... Mr. Rapozo: Larry, we will send that over in a written request. I do not think DCAB will be much different because it will be the same plans, it will be the same April 19, 2012 CIP budget (cont'd)p.80 designs. It's not going effect I don't believe unless we are going to change the design. So we'll send that over and when you can respond as far as...any more questions on page eight(8)? Chair Furfaro: I just want to make sure you guys are going page by page. I plan to be here and we will order dinner if necessary. Make sure your people are on call Larry. Mr. Rapozo: I think you'll be happy to hear that we are done with engineering. Ms.Yukimura: I have a question. Mr. Rapozo: Mr. Chair you know have... Chair Furfaro: Why don't you finish it up since you only have one question left. Ms.Yukimura: Two more questions. Mr. Rapozo: Okay go ahead Councilwoman Yukimura. Ms.Yukimura: So this speed hump traffic calming program shows 68 thousand and my question is what is the intention for those monies? Mr. Kudo: Those monies are for speed humps, speed tables and generally draw money from those two items for materials. Ms.Yukimura: Are speed tables actually qualified under the present Ordinance? Mr. Kudo: I believe so. Ms.Yukimura: It says speed humps but are you folks interpreting speed humps to including speed tables? Mr. Kudo: Yeah. Mr. Dill: Look under traffic calming programs. Ms.Yukimura: I'm sorry. Mr. Dill: If it didn't follow and Ms.Yukimura: So you have some of your own in house rules about how to do traffic calming then? I mean say a community comes to you and says we're worried about speeding. Well, they come to us often, and the only thing we reference is the speed hump Ordinance which is quite limited if you read it verbatim, and so-- I mean bravo that you're thinking bigger than speed humps, you know, but how are you applying it? Mr. Tabata: So talking about traffic calming devices other than speed humps is part of what we're working on to upgrade the living streets manual for complete streets and that is a component of one of the chapters as traffic calming, and we will be preparing something to bring forth April 19, 2012 CIP budget(cont'd)p.81 Ms.Yukimura: Oh I see that is really helpful. You call it living street standards? Mr. Tabata: We are talking the Los Angeles County Living Streets Manual and adapting it to Kaua`i, so we will probably call it the Kauai Living Streets Manual. Mr. Dill: This is our living streets manual we have been working on. Ms.Yukimura: Nice. That's wonderful. So you're going to work on this manual which is something that you adopt in house, but if you need authorization or enabling legislation you will be coming to us with a bill. Mr. Tabata: Exactly. We are working -- when we complete it and we combine what Planning is doing with Subdivision Ordinance we will determine whether or not we bring something forth for legislation. Ms.Yukimura: As Councilmember Bynum has noted it's so wonderful when the administration is doing things before we even talk about it. It's really a joy. Instead of us trying to pull teeth and get you to adopt concepts you're already there. It's really wonderful. Mr. Rapozo: Anymore questions? Ms.Yukimura: One more. Hapa Trail. It's dollar funded. Because I know we have this (inaudible) where the State has claimed that it owns Hapa Road but we have a goal a County goal. It's part of the Koloa-Po`ipu Circulation Plan. So how are we going to now proceed to achieve our goal with Hapa Trail? It's noted as a key pedestrian and possibly bike -- I don't know, but anyway a multi-use path between Koloa and Poipu and was identified as a really important part of the Koloa-Po`ipu Circulation Plan, and the idea of bikable walkable communities— Mr. Dill: We have to talk to the administration to find out their desire to proceed with the acquisition of Hapa Road or if not how we can incorporate it into the plan. Ms.Yukimura: Because I don't think the State has plans for it. Mr. Dill: Not that I'm aware of. Ms. Yukimura: And so -- I mean so maybe just a simple request that they give us a deed and transfer that trail to us because we have plans for it. That are tied in with the land use and other planning. Maybe that might just begin to open up the project for us again. Thank you. Mr. Rapozo: If we can get a dollar a year least, we can at least get at least one year's worth with that dollar in that line. Mr. Chair. Chair Furfaro: Larry, please make sure you check in with Ian Jung and Mauna Kea on this. They were the point people on the challenge with the State on the Hapa Trail. And then on the speed bumps did our -- or the speed table did our community individual out in Hanalei. Did he ever get back to us specifications the speed tables? Did he ever get us back the specifications on the speed table? April 19, 2012 CIP budget(cont'd)p.82 Mr. Rapozo: I can answer that because he did —well I was cc'd on it and I don't know -- I am trying to think who got it on the administration side. Chair Furfaro: I just want to know did you get it and I don't need to know who got it and the dialogue then and did we get it? Mr. Tabata: I was just informed that we are still working with the gentleman from Hanalei to try to get us the information that we need. Chair Furfaro: Okay. Because I want to make sure that his testimony indicated that some of the tables needed to be r &m'd or replaced. Mr. Tabata: Right. Chair Furfaro: So I assume some of the money is for that if that occurs. You just reaffirmed what I wanted to know. Thank you Mr. Rapozo. Mr. Rapozo: Thank you. Is that it for page eight? We are done with engineering. Mr. Chair, I will turn it over to you. We have been going for almost an hour -- no, almost two hours so if you would like to take a caption break now -- who is coming up next? Highways?Automotive. Chair Furfaro: Okay. Let's do automotive and I want you folks to know economic development is one project on the Ag Park. There were 23 questions sent over to Economic Development regarding the Ag Park. That is the only item that we have in CIP for him so I'm going to cross that off the list here until we get those responses. Everybody got that? Item I. Most of the questions were focused on the Ag Park. Okay. He's not here. Ms. Nakamura: Okay. Chair Furfaro: Not on the island. We can add some more questions if you like. Staff would you note that we have some written questions by individual Councilmembers regarding Economic Development. We have somebody -- you got my notes that off the list. Do we have an opportunity to have somebody here for -- what was the other?Al, what the other? I thought we were going to contact Paula. Mr. Barreira: Yes chair. We made contact with the Boards and Commissions to see if they can do the Anti-Drug Presentation because the Anti-Drug staff is over in Waimea at the special project. Chair Furfaro: Right. Mr. Barreira: The other one was -- Chair Furfaro: So is she able to do it? Mr. Barreira: I am waiting for a reply. Chair Furfaro: Okay. Mr. Barreira: And the other issue we spoke of was in terms of OED's energy presentation will be handled by Glenn Sato. r'. f., April 19, 2012 CIP budget (cont'd)p.83 Chair Furfaro: Okay but you note Economic Development we're going to tack on more questions that went over on the original 23. Mr. Barreira: I understand. Chair Furfaro: And you will let us know about Paula's visit. Mr. Barreira: Yes. Chair Furfaro: While the Anti-Drug Coordinator is at a program. Mr. Barreira: Yes Chair Furfaro and I have the response of those original 23 questions. I thought I sent it. I have been informed it wasn't received so I will resend it. Chair Furfaro: Thank you. Okay. Mr. Dill we're going to go to Automotive. Mr. Tabata: Automotive has two projects on page eight and then Dwayne will be discussing those. Chair Furfaro: Okay. Welcome back again. Two days in a row; right? AUTOMOTIVE DWAYNE ADACHI: No, I had a break. Mr. Tabata: Do you have his handout? He just passed handouts out and his PID's are at the back of highways, the last two in the Highway section. Chair Furfaro: Okay. For the record you are going to have to introduce yourself again. Mr.Adachi: Dwayne Adachi, Department of Public Works Automotive Division. Good afternoon. Chair Furfaro: Good afternoon. Mr. Tabata: Okay. Sorry I made an error. It's not page eight. Mr. Dill: One of them is on page eight. Chair Furfaro: We have one item page eight and the other item is -- Mr. Dill: We are hunting. One is on page eight and the other on page 3. Mr.Adachi: On page 9. Mr. Dill: Look it is the same thing on page 3. Page 9 is like the summary. That is the dollar funded. Ms.Yukimura: Which one are we doing first? April 19, 2012 CIP budget (cont'd)p.84 Chair Furfaro: I think we are going to do the top one on page 8 first and the other one is the fuel automation. Where is that on page 3? Fuel is on page. What is on page 3 Larry? Mr. Dill: Auto shop improvements. It is near the top. It is the third (inaudible) got it? Mr. Chang: You got improvements on page nine also;right? Mr. Dill: 9 and 10 are the summary pages. Yeah. Chair Furfaro: Okay. You want to do the auto shop first. Which do you want to do first? Mr.Adachi: Up to you guys. Mr. Dill: Auto Shop first. Chair Furfaro: let's do the auto shop first then. Mr. Dill: Page three. Mr.Adachi: Okay. I passed out a brief description of the project. It's basically department of Public Works Automotive Maintenance Facility located at 2820 Wehe Road, Lihue. Facility consists of two buildings situated on 1.5 acre parcel opened in 1978. The main building is 125 feet long by 60 feet wide with 30 feet ceiling and a secondary building is 175 feet by 30 feet wide. The fleet maintenance operation for the county has grown tremendously over the last 34 years and we are in desperate need of operating space within this facility. Our entire inventory is over flowed it's designated storage area and we are storing tires outside in the lot and also in a 40 ft storage container located in the southwest corner of the property. We plan to construct a 60-foot by 25-foot upper level storage platform above our current tire storage area in the main building. The storage platform will be ADA compliant and load rating of 200 pounds per square foot. By storing our tire inventory on the upper level storage area it would clear approximately 2400 square feet of needed operating area on the ground. The total cost to complete this project including design, consultant and construction will be approximately $400,000. Chair Furfaro: Okay. Is there questions posed Automotive Equipment Maintenance Facility improvements? Vice Chair Yukimura? Ms.Yukimura: How fast do you anticipate getting this done if the money is put in the budget? Mr.Adachi: Well, the time line is indicated in the PID. Ms.Yukimura: Oh in the PID, 10 months. So let's see, so you would go three months for professional services -- Mr.Adachi: We would -- the first step is to solicit a design consultant, select the consultant. Have that consultant design the platform, and then we go out for a contractor. 1 April 19, 2012 CIP budget(cont'd)p.85 Ms.Yukimura: So you would expect to go out for construction before next budget or by the end of-- within the fiscal year? Mr.Adachi: We'd expect at least within six months. Ms.Yukimura: Yeah. Mr.Adachi: To get the contract (inaudible). Ms.Yukimura: And you would have to do logistics of moving out of the bottom floor? Mr.Adachi: No. We will continue to operate. Ms.Yukimura: Okay. Mr.Adachi: And work around the contractor. Ms.Yukimura: Okay. So this is a construction job that can get out pretty fast? Mr.Adachi: Hopefully. Ms.Yukimura: It's very resourceful and creative that you're finding out how to make it work where you are already and very good. Thank you. Mr.Adachi: Thank you. Chair Furfaro: Any additional questions on this? If not we will go to the Automotive Department second project and that is on page eight, right Larry? Mr. Dill: I believe so. Yes it is. It is on page eight if you went to the fourth bold proposed CIP project. Mr.Adachi: Okay. The fuel management system. The county has been operating the Gas Boy Model PC 1000 computerize fuel management system since 2006. Within the last few years we have been experiencing various software and hardware issues with the system and costs for repairs in 2011 was over 15,000-dollar. Our software problems have been ongoing for two years. The company Gilbarco is unable to provide solutions for us claiming this model is obsolete and that we need to upgrade our system. We propose to purchase and install a new fuel master fuel management system to replace the current system. This new system is similar to Gas Boy in operation but of higher quality and less troublesome. Initial costs to install and furnish this new system will be approximately $125,000. Mr. Dill: If I may add to that Council Chair I think you're aware that we had a recent audit from the County Auditor and one of the recommendations is upgrading of the Gas Boy System so we're consistent with that audit recommendation. Also Dwayne took care of a large expensive fleet of vehicles and key management tool to help him to take care of that, so we feel it's a worthwhile and appropriate investment to make. Chair Furfaro: Larry, just so you know as you weren't part of the discussion we had earlier I wanted to make sure that as we select the new documentation system for fuel that we at least share the potential qualities of this system with the Auditors. Okay. And that April 19, 2012 CIP budget(cont'd)p.86 we have current records that are periodically checked with specimen signatures for people who have the various cards and so forth. I am not familiar with the actual details of the system but I want to make sure the Auditor's Department is exposed to it and I think we had assurances earlier. Thank you. Mr. Bynum, you have the floor. Mr. Bynum: , Larry, you already answered my first question. The system is consistent with the recommendations in the fuel audit. My second question is Gilbarco the company that is fuel master or a different company? Mr.Adachi: Gilbarco is the Gas Boy Company. Fuel master is the new system that we intend to purchase. Mr. Bynum: And it's a different company? Mr.Adachi: Different company. Mr. Bynum: Okay. And I mentioned this the other day and I love to research this and it sits in my memory. There was an initiative for Public Works a few years back to do GIS in connection with all of these systems on your vehicles and I think that is a tremendous idea, and I don't know if this company integrates that because it would let you know where all your assets are in the field all of the time. It could be deal with you know potential fraud and other issues, and safety, knowing where your folks are and where your vehicles are and assets in place in case of a emergency and way cheaper then when this was proposed -- my memory if I got it right and a proposal from Public Works that the council rejected. I maybe wrong about that, but I encourage you to look into that because I think it's integrated. Thank you. Mr.Adachi: Yeah. You know like the GPS you're referring to -- this company Fuel Master, they do not offer GPS but they can integrate with another company that does provide GPS and they have done it in the past for various Counties in the Mainland and the representative I spoke to this morning indicated that we can-- there is a way that we can do it. He's trying to get more information for us. Mr. Bynum: If you could share that information when you get it I would appreciate it and thank you -- sounds like you have already looked into this option. It maybe sepsrate but I believe it's integrated as well, so thank you. Chair Furfaro: Mr. Chang. Mr. Chang: Thank you Mr. Chair. Howzit Dwayne you know the other day Tuesday that you were here we were having issues with repair. People wouldn't want to come out. Is this something that might need repair down the line or somebody to maintain it? Where is Fuel Master based out of. Mr.Adachi: It's a Mainland company. Speaking to the people who come down and so the repairs they are familiar...the people that come down and repair our Gas Boy System they are familiar with the Fuel Master System also. They have indicated that trouble calls for the Fuel Master System are 10:1 less than Gas Boy. It is pretty much...this system is of higher quality, constructed of better material, and the paint and the finish of the system is more resistant to the elements in Hawai`i so a lot of people like the military and there are people in Hawai`i that use this system and the people who repair the system say once they install it they hardly go back and visit those guys. Mr. Chang: So they recommended it? -- April 19, 2012 CIP budget(cont'd)p.87 Mr.Adachi: They recommended this to us, yes. Mr. Chang: So do we know if any of the other Counties are using this system? Mr.Adachi: Yeah there is a lot of Department of Transportation Companies in the Mainland. There are references I got from the Fuel Master Rep that I can share with you guys. Mr. Chang: Thank you. Chair Furfaro: Okay. Councilmember Nakamura. Ms. Nakamura: Thank you for your presentation. How long are these systems supposed to last? Mr.Adachi: I'm not sure. Ms. Nakamura: Because 2006 is not a long time where we spend $180,000 so I am just kind of curious. Is there a warranty on this? Mr.Adachi: See the thing is we probably got in -- we started to implement that system on the tail end of its life with that company because they have already moved on to a different model and they're kind of pushing us in that direction. They want us to upgrade to their new system, but we have done some research and we identified alternative products out there. Ms. Nakamura: Okay. Chair Furfaro: Okay. Mr. Rapozo. Mr. Rapozo: The construction period you're showing on the PID is 10 months. Is that accurate? Mr.Adachi: That's an estimation. Mr. Rapozo: 10 months long to install the system? Mr.Adachi: Hopefully less, but we need to improve our infrastructure a little and we're having problems with power surges, and we need to adjust those issues also at the time of installation so we need to remove our system, install the new one and upgrade our infrastructure at the same time. Mr. Rapozo: And you have enough money? The 125 I am assuming the 125 is just the system; right? Mr.Adachi: Yeah, it's the system and just to get us started. You know we May need more funding in the future. Mr. Rapozo: Like how much? I don't think we have a choice right now. I think Gas Boy needs to go. April 19, 2012 CIP budget(cont'd)p.88 Mr.Adachi: Yeah. We need to get rid of Gas Boy as soon as possible. Mr. Rapozo: What is the system comprised of? Is it a computer? Mr.Adachi: It's actually -- it's like a reader. It's a module that communicates to a main computer in our office. Mr. Rapozo: Okay. I am familiar with the Auto Shop -- you know, the key and all of that stuff, so that's all going to go. We're going to have a new system but the gas tank and that will remain. Mr.Adachi: Will remain. Mr. Rapozo: They don't get involved with the storage. It's the scanning-- Mr.Adachi: Yeah, the management system allows the pumps to run and turn them on and off. Mr. Rapozo: And can use the existing pumps? Mr.Adachi: Yes. Mr. Rapozo: Okay. Thank you. Chair Furfaro: Vice-Chair Yukimura. Ms.Yukimura: So it would be important to anticipate if there are going to be additional costs either capital or training and operating costs? Mr.Adachi: Actually the 125 is majority is to get the system running. The additional costs would be to outfit our vehicles with the modules, the electronic modules that go along with the system. Ms.Yukimura: How much is that? Mr.Adachi: It's about$230 per-module per vehicle. Ms.Yukimura: $230 per vehicle and how many would we be outfitting? Mr.Adachi: We have the option to install the module on the vehicle. Ms.Yukimura: That we install it ourselves? Mr.Adachi: Yes the system can operate without the module but it's a feature that this system provides that we can it's for added security we can install the modules. If we decide to go that route then we need additional funding. Ms.Yukimura: So that's a decision you're going to make later? April 19, 2012 CIP budget (cont'd)p.89 Mr. Dill: The system we're doing now is similar to Gas Boy in the way it operates as far as (inaudible). Similar to Gas Boy in the way that when you come up to the pump to pump your gas you swipe a card or got a electronic key or something like that but what Dwayne is talking upgrade option would be -- you have electronic module embedded in the vehicle that communicates directly with the fuel master system as you drive up. That would help to eliminate any possibility of fraud because you -- you can switch cars around and keyed modules but you can't readily remove it from the vehicle. A future expense for future consideration. Right now we're looking to replace the Gas Boy and that is the main problem. So we may come back in the future if we are looking to provide additional upgrades. Ms.Yukimura: And it's truly supplemental rather than essential so with the $125,000 you can operate? Your basic operations are able to proceed and then if you want additional security or monitoring then you would look at this additional module and come back to us with a proposal in the next budget? Okay. Thank you. Chair Furfaro: Okay. Mr. Chang. Mr. Chang: Dwayne, one last quick question. The Gas Boy was 2009 and I guess we're talking about efficiency of going green and all of this. Is that -- do they have stats like they're greener or less emissions or better with fuel economy? Are those things kick in? When you're giving a comparison of the prices for gas and diesel and that huge jump and does this indicate fuel savings? Mr.Adachi: Basically this is a fuel management system. Mr. Chang: Management system. Mr.Adachi: This provides accountability for the fuel. How much fuel we use, where it goes, and it also provides us a tool to enforce preventive maintenance on our fleet. Mr. Chang: So in the long run wear and tear we will end up saving-- Mr.Adachi: Right. This will help us stay on top of the maintenance issues. Mr. Chang: Okay. Thank you. Chair Furfaro: Anymore questions before I close this out? I'm glad to hear the options that we have. Mr. Dill and I are used to a system that lasted almost 35 years. It's a little file card and fill out the name and license plate number, how much gas you put in and fold it in a wooden box with a lock it and accounting comes and they figure out all the cards at the end of the month. I think this is great a upgrade. Dwayne, we don't get an opportunity to see you very often but on behalf of the whole Council we want to thank you for the work that you do and maintaining the fleet and mahalo to the staff down there. Thank you. Okay. Are we close to a caption break? Okay. Let's take a caption break. 10 minutes and we will come back for highways with Ed Renaud There being no objections, the meeting was recessed at 3:40 p.m. The meeting was called back to order at 3:50 p.m., and proceeded as follows: Chair Furfaro: We're back from our last caption break. Mr. Rapozo we have you here for the Parks CIP review. I understand you're turning in the CIP book to us? April 19, 2012 CIP budget (cont'd)p.90 PARKS AND RECREATION Lenny Rapozo: Mr. Chair good afternoon, for the record Department of Parks and Recreation, Director Lenny Rapozo. I have circulated my CIP presentation to you. You should be in possession of it. Chair Furfaro: I also understand this week you will be...Monday you will be over with the Corp of Engineers. L. Rapozo: Monday I have meetings with the Federal Highways regarding our bike path or multi use path as well as the Army Corp of Engineers Discussion the flooding issues down at Po`ipu Beach Park lot. Chair Furfaro: So on that note Members what I would like to do is I would like to entertain a motion for Parks CIP to be called back to order on Tuesday. May I have a motion to that effect? And I would like to go from 10 to 12:00 p.m. Tuesday. L. Rapozo: Sure. Mr. Chang: I can make it. Ms.Yukimura: Second. Chair Furfaro: Thank you. Must of had a big lunch today. So Lenny that is our attention. The group has agreed that we will recess Parks CIP until Tuesday 10 a.m. in the morning. L. Rapozo: Thank you very much. Chair Furfaro: Thank you very much. Okay. Mr. Dill we would like to go back to Ed, and highways. Ed, welcome back. Since our caption break and you have the floor for your presentation. Roads ED RENAUD: Good afternoon Council Chair, Councilmembers, Ed Renaud, Road Division for the record. Okay. I have 4 of them but I'm going to cover two of the projects and if you have questions on any one of the four we can go forward and following the same format you had. The Comprehensive Road Maintenance Plan -- that has been in progress -- where are my notes? Okay. For this year we got the Micro Paver Program online. We purchased it. We also are working with the management consultant where we will be working on their contract. Okay. And this is for the management program of the accountability for our roads and the other one is the inventory of roads that go out for bid and that's where we use the monies up for and we're talking about -- we are talking about approximately -- the Micro Paver came in about $2,000. We already paid. The four winds is approximately $90,000 we would be finalizing that and the other one is road inspection and inventory where we are looking at something of $40,000 allocated for that project. Okay. Any questions on that before I go to island wide resurfacing? Chair Furfaro: Questions? Ms.Yukimura: Sorry what page where you on? April 19, 2012 CIP budget(cont'd)p.91 Mr. Renaud: On page 3. Mr. Tabata: Page 3 is called ompre ensive Road Maintenance Plan. So we had existing funds of $53,886 and we are asking for $110,000. This will include the asset management as well as the road Micro Paver and to complete Micro Paver we are hiring a consultant to do the inventory of the roads and signage, etc. so that it will be a seamless interface into Micro Paver that we will just load up. They do this driving around the community and catalog everything for us. Chair Furfaro: Anymore questions? Go right ahead, Councilmember Nakamura. Ms. Nakamura: At the same time they are cataloging, are they also doing the inventory of the condition of the road or is that done in house? Mr. Renaud: Yeah, the first thing they are going to do is the condition of the road. What the condition is going to do is it is going to tell us island-wide, in every district, what is wrong with that particular road. It may be collector roads, it may be roads that are most used and every other County roads. From that formula we can produce, we can go the total thing, find out what the actual cost would be for island-wide and then when the funds come down from you folks, then we know what we are going to select. Micro Paver is going to help us, show us by graphs and what not, how critical the priorities are and where they are located. Mr. Tabata: For your information, Maui County has completed this, so we are kind of tagging on to what they are currently done. Chair Furfaro: Additional projects? Mr. Renaud: Okay, island-wide road resurfacing. Try excuse me. Island-wide resurfacing, the contract is with Grace Pacific. We are waiting for it to be completely signed. I was told sometime this week that by sometime next week, I should have the full contract in my hand. We have made phone contact with the project manager sort of speaking and as soon as we get the contract, he will be coming in and we will be sitting down and talking schedules and all this. Like I mentioned in the budget on Wednesday, I am trying to push for May-June, hopefully we can keep that, and if he cannot produce that then I am going to request with his company that maybe they will have to bring in another crew if the crew on Kaua`i cannot handle that, because of Kokee and other projects they have. I want to push this out while the weather is good right now so that we can get into the next project, the new one. Chair Furfaro: Vice Chair Yukimura has a question. Ms.Yukimura: So these moneys the 1.9 million almost 2 million dollars is for the next phase? Mr. Renaud: Correct. Mr. Dill: That is how much moneys are there. If you see from previous years, the remaining residual is 698. Ms.Yukimura: Yes. Mr. Dill: That monies is available to us now with the current contractor, we have been talking about potential additions that he can do with the current contract. April 19, 2012 CIP budget(cont'd)p.92 Or, if we do not use up all of that, whatever is left, will be rolled over in addition to the 1.3 for the next contract. Ms.Yukimura: Right. So the 1.3 for sure and maybe the 698 if you do not use it as an addendum to the existing contract will be for the next round of repaving? Mr. Dill: Correct. Ms.Yukimura: Which would be, what is that? Put out to bid and encumbered this year and the repaving would probably be done in the next fiscal year? Mr. Dill: It would be encumbered next fiscal year, fiscal year 13. Because the 1.3 is fiscal year 13 monies. Ms.Yukimura: Right. In Fiscal Year 13 you would go out to bid for it and the repaving would be for the tail end of the, well, yeah because we are not going to go with our delayed system anymore. Mr. Dill: We have never had a delayed system. Ms.Yukimura: Really? You did not work late for three (3)years? Chair Furfaro: Let's make it very clear, we do have a delayed system and here is the outcome. You do not spend the money in the year we give it to you, you lose it. You can look behind and Ernie is acknowledging that, Ernie, because the Council cannot approve monies for multiple years. Mr. Dill: And I agree with Council Chair and I'm just trying to say that certainly our intentions (inaudible) current system. Chair Furfaro: I love that answer. Mr. Dill: I'm not sure if what was the system then... Chair Furfaro: Your intention was very good. Mr. Dill: There is no intent to create delays in the system but it worked out that way. Ms.Yukimura: Yeah, thank you and we are happy how you've done the project for this fiscal year and now you are looking to the next. Chair Furfaro: Okay, I'm going to yield the floor to other Members. Ms.Yukimura: Yes. Chair Furfaro: Okay, Mr. Rapozo and then Mr. Chang. Mr. Rapozo: Thank you, Ed you mentioned the project manager for this contract, in all of these projects whether it is roads, highways, or buildings the amounts that are being approved include a project management fee? Is that how it works? How does it work, is there a percentage of the contract that is allocated to a project manager and typically who is that project manager? April 19, 2012 CIP budget (cont'd)p.93 Mr. Renaud: Okay. Number one is we haven't put anything in this budget but we are planning do it the next time around. In this one our project manager is and this is why I brought him up. This is Scott Suga, and has vast knowledge of project managing of projects and so we brought him on and we have monies in this and we are using him. Chair Furfaro: Can I ask you to vacate the seat for a moment so we can welcome Scott? SCOTT SUGA: Good afternoon Councilmembers, Scott Suga. Chair Furfaro: You just joined us? Mr. Suga: Yes, sir, January. Chair Furfaro: In January. Mr. Suga: I am extremely happy and proud to be here. Chair Furfaro: Okay. Well, I wanted to say on behalf of the Council welcome despite what you might hear we're a nice group of people. Mr. Suga: It's a little different being here in person. Chair Furfaro: Okay. Mr. Suga: You know actually this is just the second time I have been in the chambers. The first time I came in was back in the late 80's for a recognition for our baseball team that competed on O`ahu. Chair Furfaro: You played on Oahu. Mr. Suga: Yeah, a team from Kaua`i went up to compete on O`ahu and we came back with the trophies. Chair Furfaro: What was your alma mater? Mr. Suga: Actually it was a community league on the Westside. Chair Furfaro: Oh, Westside community league. Well welcome. Mr. Suga: Thank you. Chair Furfaro: When we recruit the eighth and ninth member for the team for the Council we'll challenge the rest of engineering to a contest. Scott welcome. Mr. Suga: Thank you. Chair Furfaro: Mr. Chang wanted the floor. Mr. Chang: Scott, nice to see you here. We were chatting because I think we were at the dedication of the lights in Waimea. April 19, 2012 CIP budget(cont'd)p.94 Mr. Suga: Yeah. Mr. Chang: Can you give us your background so we know that you came from the private sector I guess. Mr. Suga: Prior to this I have worked in the private industry for seven years and six with Goodfellow and one year with Earth Works Pacific. Chair Furfaro: Okay. Thank you very much. Mr. Chang: Welcome aboard. Chair Furfaro: Ed, you have the floor again. Mr. Rapozo: So Ed, a typical contract I am assuming there is a percentage for project management, whatever that maybe and how does that work, and if the project manager is a county employee does that pay his salary? Is that how it works? Mr. Renaud: Correct. In this case it's going to pay his salary. Mr. Dill: Because he is a contract funded position, so we pay him from these CIP monies. Mr. Rapozo: And where would that show up? Mr. Dill: It will be part of the 1.3, or whatever the contract amount is, so we make sure that we reserve sufficient funding to take care of his costs as well as the actual contract costs as well as any contingency costs. Mr. Rapozo: And in other projects -- in some of the building projects we have project managers as well that are County Staff, not contract. Mr. Dill: Correct. Mr. Rapozo: How does the project management fees get used on that case. Mr. Dill: I'll use the example of the Historic County Building. Pat Kaihara, he is a similar situation contract and he's project funded and so he was funded out of the Historic County Building line item, so I guess you don't see a separate cost associated with that, but it is a portion of that line item that is funded in the budget. Mr. Rapozo: So his position doesn't show up in the budget as a County funded position. Mr. Dill: Correct. He shows up as $1. Mr. Rapozo: Dollar funded position? Mr. Dill: Correct. Mr. Rapozo: But he get paid out of the CIP money? li April 19, 2012 CIP budget(cont'd)p.95 Mr. Dill: Right. Mr. Rapozo: It never dawned on me until we had housing up here and they had the spreadsheet and how the salaries are paid and take from the funding sources, and I am wondering if that is possible with Public Works because a lot of the -- when I look at the PID's and you see the project managers, you have non-contract project managers as well. Mr. Dill: Yes, and a lot of those guys charge -- when they fill out their time sheet they show the project and if we can do that it's transferred to the project or federal highway project it's transferred to that portion, so we bill out some of the time on projects and that is available to us. Mr. Rapozo: So the fine item for the salaries in essence is not really charged to the General Fund? Mr. Dill: Yes, that's correct. Mr. Rapozo: Okay. Well, that would be interesting to find out how much of the salaries are being charged to CIP. Mr. Dill: I'm sorry. Clarification, it gets charged to the General Fund and recovered from CIP. Mr. Rapozo: Right. So the CIP will transfer back to the fund? Mr. Dill: Yes. Let me confer. Mr. Rapozo: Yes. So that's interesting because that money then contributes to the surplus. Mr. Dill: Correct. Mr. Rapozo: Any idea how much that amounts to? Who would be the right person to ask for that? Mr. Dill: I would ask that you send over a-- Mr. Rapozo: We will, but who does it need to go to? Mr. Dill: I would say my fiscal officer. Chair Furfaro: We'll send the question to Clint then. Mr. Rapozo: I believe that first of all I think whatever we can recover from CIP because we're funding it should be recovered but I think we need to as a Council during budget we need a spreadsheet of saying position x, y, z although budgeted for $100,000 a year and only or recovered $30,000 or $40,000 off of CIP. Mr. Tabata: Councilmember, that is very true, and we are moving towards that direction. We mentioned in operating budget some of our projects were not funded enough to cover for project managers to be funded through the CIP funds, so as we move forward we have been adding extra funding to cover for project management, so we can go out and hire these project managers that are dollar funded for that specific purpose. April 19, 2012 CIP budget(cont'd)p.96 Chair Furfaro: Okay. I want to revisit something because both Councilmember Rapozo and Councilmember Yukimura were not on the Council when we made this arrangement. Okay. And what you need to do to us you're going to give us some kind of overview that said for a project cost of more than $100,000 you could tap the project for project management up to a certain percentage that there was a policy statement to that effect. I guess what the changes and so forth we have not seen that actual policy statement, so it should be something that maybe you would collaborate with Ernie Barreira folks and come up with a policy statement for us. That is how -- I mean I think Pat Kaihara has been with us what 5 years now? 6 years, something like that, and I think he was the first one we allowed building to do that, and it's worked well, but we're still waiting for it, the General Guideline Statement. So we'll be watching for that Ernie. Ed, I think I'm going to give Mr. Chang the floor. You wanted the floor Mr. Chang? Mr. Chang: Did you want to add something? Mr. Renaud: I just wanted to say something real fast. We did go out this past week and there where roads that came up from Council from (inaudible) and one from Police and we looked at the roads and we are doing the assessments right now. If we put it on this contract and we'll come forward for approval. Chair Furfaro: Yeah. And again that was expected so thank you. Did you have another question? Mr. Chang: Well, I didn't ask the question yet but I'm going to ask it right now. Thanks Ed. Just a little clarification, you were saying sometimes this week or sometime next week you're going to meet with the manager or something-- Mr. Renaud: Yeah, the project manager of the contractor Grays Pacific. I need the contract in my hand before I can call him on board. Mr. Chang: And you explained that to us a couple of days ago? Mr. Renaud: Correct. Mr. Chang: Okay so when you said that you wanted to find out from him if it was too large of a scope that you would need to bring in other -- what did you explain to us? Mr. Renaud: If he can't produce with the normal Kauai group and they will be busy with the Kokee Road they have a small group then I am going to request of the company to bring additional crews from outside island so we can move this project. Mr. Dill: Understand Chairman -- I'm sorry. Councilmember, that they have our Kokee Road contract and that's a $5 million paving contract and they also won the island wide resurfacing so two $5 million projects for us. Ed is doing his best they're going to perform adequately for us and meet the deadlines. Mr. Chang: Okay but that is the Grays Pacific Kauai people that are working. Mr. Renaud: Correct. April 19, 2012 CIP budget(cont'd)p.97 Mr. Chang: So we have -- I guess what I am saying I want to make sure that our local work force has the jobs, the work because so in addition they are Kauai people are all going to be working but you're going to bring -- then you might say if you can't handle, you need to bring in people to make this work? Mr. Renaud: Yeah, we will put it on the table and that's their discretion to do whatever they have to do to meet our contract and the Kokee contract. Mr. Chang: I want to make sure that the Kauai people are getting work and I don't mind other island people coming and kicks into the economy and double good thing for us and we can double dip. Mr. Renaud: If they say they can't turn Kokee around in six months it's something to think about. But if they say three months and we can wait that long but I can't wait no longer than three months because the rainy season will be here very shortly and in the experience from the past contracts we had we always went late and so it dragged on. I want to make sure we're on line. Chair Furfaro: So Ed the question here posed to you is the following: When you enter into that discussion with them you want to make sure that they have exhausted all qualified Kauai residents to work first. That's how we want to pose it. Okay? Mr. Chang: And just a follow up. You know nothing against Kokee Road but to get the general populous, where the majority of the Kauai people...you know the tour buses use Kokee Road and some of the local people and most of the local people like myself go up Waimea Canyon Drive road but just where a lot of the local traffic -- I would like to see emphasize on those barriers. Thank you. Chair Furfaro: Okay. And make sure that we also do a media piece through the radio stations when the work is going on. Mr. Rapozo. Mr. Rapozo: Thank you. If Ed if in fact it would require them to send more crews to Kauai would that affect the cost? Mr. Renaud: No. Mr. Rapozo: I mean I say hmm, but I have seen more change orders in this County than I like seeing. Mr. Renaud: The way I look at it they have a commitment everything is spelled out in specs and what not. As soon as they get awarded dada and they have so many days to do it. It's very tight. But the thing is if they have more people on Kauai that are not working then I'm going to pose that question first to them. Mr. Rapozo: They bid on a question that has specified time limit, and they can say they can do it, and if they're not doing it and we're requesting more crews I just don't want to be caught in a position where they say fine, we will send more crews but we need a change order". Mr. Renaud: I understand. Mr. Rapozo: Okay. Thank you. April 19, 2012 CIP budget (cont'd)p.98 Chair Furfaro: Okay. It's understood, so we almost pau with highways. Oh Vice Chair Yukimura. Ms.Yukimura: The system of dollar funded contract positions paid for by the project. Does it serve as a succession planning tool as well? I guess in some extent it exposes you and you get to try out different people. Mr. Dill: It may. We are looking at ways that we can utilize things available to us like that. That's how we can help with the transitions when staff move on to make sure that the industrial knowledge gets passed down. We discuss the issue of using project funded positions for that and I can get back to you if you like. Chair Furfaro: Why don't you get back to us on that. In the meantime I think Vice Chair asked a question that as a County we need to develop a continuity plan. You and I worked on one in the North Shore but when the contractor hire him there is a little box on the corner you check it says "subject to rehire or no." Let's make sure we fill out the box that we know the performance was the level that we need. That's the first step in the continuity plan. Ms.Yukimura: Okay. Thank you. Chair Furfaro: Sorry to be so direct, but check the box, subject to rehire. Okay, very good, Ed, I don't think we have more questions for highway. Thank you very much. You're going to follow up on some of the discussion on resurfacing and I would like to do this if I could. The two gentlemen you can stay right there for right now, but I would like to bring Ernie up. We're going to move the Boards and Commissions and the drug treatment facility. You are representing the Boards and Commissions and I would like to ask you if you can consider us recessing the Boards and Commissions on the anti-drug piece until 9:00 a.m. Tuesday? Would you be able to coordinate that for us. Mr. Barreira: Yes, we'll coordinate that for you, and that would also include boards and commissions in terms of the Waimea Substation Presentation. Chair Furfaro: So that is for 9:00 a.m. Let's see if I can get a consensus from the staff here. The motion will be to call to order the Boards and Commissions on the Drug Treatment Facilities as well as the Police Substation, but ask that I entertain motion to reschedule recess the committee until 9:00 a.m. on Tuesday. Mr. Chang: So moved. Ms.Yukimura: Second. Chair Furfaro: Thank you. Any discussion? All those in favor signify by saying aye. The motion to call Boards and Commission on the Drug Treatment Facilities as well as the Police Substation was then put, and unanimously carried. Chair Furfaro: Okay. Would will you make sure on the administration side we note, we called the meeting to order and recessed. Mr. Barreira: Very good. Thank you. M'1 Irk April 19, 2012 CIP budget(cont'd)p.99 Chair Furfaro: Thank you very much. Okay. Mr. Dill, I think we're going to go to buildings now. Mr. Dill: Actually Council Chair I forgotten that Councilmember Nakamura asked a question about the Wailua emergency bypass earlier and asked her to wait until highways so this is the opportunity if you want to pose the questions. Chair Furfaro: Okay we're back in highway mode. You had a question? I am sorry if I missed it. I might have been out. It's nice to be polite to me. Larry, do you know what the question was? Ms. Nakamura: Yeah, the question was the million dollars set aside for the Wailua emergency bypass improvements. I haven't -- what's the time line on that? And do you expect to expend?-- Chair Furfaro: Could I just-- Ms. Nakamura: Yeah. Chair Furfaro: This is the one that we're waiting for the Legislature, before they get out of session, to indicate to us that they have the other million dollars committed from the State, and if they did not based on a priority list that was going to be prepared by engineering we were contemplating going in and doing some of the work with our own money, ie, strengthening the bridge, putting up some guard rails and so forth. I just wanted to refresh everybody what we thought we left at the Legislature and you have the floor Councilmember Nakamura. Mr. Dill: Yes, so just a short follow up Council Chair on your comments there. We agree that we had been waiting for the State to follow through with what we understood was a million dollar match to the County's million dollars. We were not encouraged that is forth coming so we directed Ed to go out and pursue a use of our funds to conduct repairs to the emergency bypass so I will let him describe where we are with that. Chair Furfaro: I want to make sure we're all on the same page and waiting. We were waiting for something in the way of an outcome from the State. You have the floor. Mr. Renaud: This project I know we did everything. We talk talked to the attorneys and we talked to purchasing and we were trying even to finance the we were trying to see if we could qualify for emergency but we didn't qualify and we had estimates from big and small contractors to do this work so what we did was it took us about a month to get a contract going for bid purposes to be advertised and in the scope of work we had everything -- I am going through it real fast, and I can answer questions afterwards, and the thing is it should be coming out shortly from purchasing. I believe we did every hurdle that is legal to get this moving and when it does comes out it will go out for bid and open competition and it's a maintenance project, that's what it's really about. A maintenance where Public Works couldn't take it on because if we would take it on like we talked about it, it would 18 months and we would stop all other projects that we have, but by using the contractors everything is maintenance like I said and putting the road back together, vegetation control, and the other new thing is guard rails for the safety of the motorists. I even had meetings with Hawaiian Homeland Agent Kaipo Duncan, he came down last Thursday and we went over the agreement. April 19, 2012 CIP budget(cont'd)p.100 and everything that was questioned by you folks to roads he answered everything. We have to stick with the contract agreement of maintenance and what not. Nothing new on there no pavement, or anything of that nature so there was no addendums or amendments to the contracts agreement that they gave us for maintenance so sorry to say we're in that position, but the thing is we believe that this project should take us -- we have it for six months but it should take three months with a contractor, and within a million dollars that we have now so that's the bottom line. Chair Furfaro: So let me ask you are you telling me the work wasn't prioritized, we're not getting guard rails until-- Mr. Renaud: No, we're getting everything asked for. Chair Furfaro: I want to make sure because you keep talking r and m and r and m to me is repair and maintenance. It's not existing facility. It's not adding guard rails and so forth but that is not the case. Mr. Renaud: No, I said everything is maintenance except the new guard rails that we are putting in. Chair Furfaro: Except the new guard rails. I'm sorry. I must have been asleep at the switch. You have the floor Councilmember. Ms. Nakamura: So will the bypass road be paved? Mr. Renaud: No. In the agreement and discussions with land agent that cannot be. Ms. Nakamura: Okay. Mr. Renaud: Because the agreement they gave us Ms. Nakamura: That's the department of Hawaiian Homeland. Mr. Renaud: Is for emergency use if the highway is closed down by Police. -- Ms. Nakamura: Okay. • Mr. Chang: I'm sorry Ed can you please repeat what you just said. Mr. Renaud: The agreement we have with them... Mr. Chang: I heard that part but the very end . Mr. Renaud: Okay when the Police close down the highway that road is used for emergency. That's the bottom line the agreement that we had. Chair Furfaro: Councilwoman you still have the floor. Ms. Nakamura: Yes. So that -- basically the question that we had earlier with Larry was to explore whether there could be any other use beyond, more permanent use f'I April 19, 2012 CIP budget (cont'd)p.101 beyond just emergencies since we're going to be doing some of the repairs, and so basically DHHL are saying no. Mr. Renaud: Yeah, per the agreement that we have. Ms. Nakamura: They're not going to agree to that. Mr. Renaud: I think we have to get into discussions with them to change the agreement if we're looking at the different avenue, yeah. Ms. Nakamura: Thank you. Chair Furfaro: Bottom line is not anticipate in matching State funds. No changes to the existing contract. That's where we're at. Okay. Ed, thank you very much. We will go to Buildings now. Welcome Doug. Doug and we're going to launch your portion here which is Public Works Buildings, and if you have a presentation for us you can start anytime. Mr. Dill: So Council Chair as we have done with the others I asked Doug to go through the projects that are highlighted as proposed CIP for this year. Of course any other projects for the previous years we are happy to entertain questions on. Buildings DOUG HAIGH: Good afternoon Councilmembers, Doug Haigh from the Department of Public Works, Building Division. First I will discuss one of the projects in the highway section that I am managing that the Building Division is managing and that is the Hardy Street project. And that one we are -- it's a federal highway funded project with a County funded match, 20% match. We have submitted our bid documents to the Hawaii Department of Transportation and Federal Highway for their review. We're looking at doing a design build project and it's moving forward. Chair Furfaro: Okay. That's the summary for Buildings? Mr. Haigh: That's the summary of Hardy Street Project. On the sheet for Building Project it's. Chair Furfaro: Give us the page number. Is it four? Okay. Mr. Dill: Yes. Mr. Haigh: The proposed CIP ADA announcer booth renovations and improvements is highlighted but basically that's being canceled out. That project we were never working on and Parks is taking care of that project, so no longer funds available for the Building Division on that. The next item proposed CIP ADA Projects Building Facilities. We are winding down our ADA Projects and these are the projects for the settlement agreement that we have been working on over the many, many years, so we have one last project going out to bid and then we have some in house work that we are doing on this work. Mr. Rapozo: Mr. Chair, can I go back to the ADA announcer booth? III April 19, 2012 CIP budget (cont'd)p.102 Chair Furfaro: The ADA announcer booth, we're going to go back to that. Mr. Rapozo: Is that in the park's budget now? Mr. Haigh: My understanding they were going to be utilizing that in their overall Parks Projects and not necessarily having it as a specific individual project. I know they have done some of the announcer booths-- Mr. Dill: I was informed that according to the Director of Parks that project is complete.. Mr. Rapozo: Oh it's complete? Okay. Thank you. Mr. Dill: That's right and if you look at the CIP recap you can see there is -- Chair Furfaro: In the recap sheet. Mr. Rapozo: Doug said it went to parks and that's why I looked at parks and I couldn't find it. But I got it. It is completed. Mr. Haigh: Okay. Chair Furfaro: So back to the second item that we're on Doug. Mr. Haigh: These ADA project building facilities, so we're just finally winding that up. Next project proposed CIP fish bowl renovation. This is lingering funds to finally be canceled. These were associated with the work force initiative which was completed quite a few years ago. Mr. Bynum: No longer a fish bowl. Mr. Haigh: Yes. The next project is the -- well, we highlighted Kalaheo Fire Station repairs painting. That's a project, a maintenance project that got shifted in the CIP and it's -- we're moving forward with the procurement on that. Next project, K •loa Fire Station and that is similar, and moving forward on procurement. It will be completed by the end of this fiscal year. Piikoi interior renovatio phase two. This one actually is in the very early planning stages. Building division is involved in the asbestos removal portion at this point and we're had our investigation. We're waiting for a report and then we will move forward with the construction for the asbestos removal. Mr. Dill: This line item also includes funds for office space planning and design for the remainder of Piikoi. Chair Furfaro: Mr. Bynum. Mr. Bynum: I have a question. And this may not be for you and if it isn't tell me, but there was his study that we waited forever about space allocation, and so we're ,I. not using that anymore, and there's going to be a new study? I Mr. Dill: That study be updated. That was done when the Big Save space was not available to us. April 19, 2012 CIP budget (cont'd)p.103 Mr. Bynum: So it's something that was kept kind of close because we thought there would be lots of employees who would have -- be anxious about where and if they're going to move so that study is being updated, or the old one was just moved, or -- Mr. Dill: No the existing study was done using the space available to the county at that time which is everything excluding the Big Save space so now we will update it to incorporate the Big Save space. I'm not sure if that answers your question. Mr. Bynum: Is the intention to use all of the — Big Save roughly 18,000 square feet? Mr. Dill: Yes. Mr. Bynum: Is the intention to use all of that for County facility? Mr. Dill: Yes. Mr. Bynum: Okay. So I'm going to repeat what I will talk to the Mayor about. I really would like us to consider saving about 6,000 square feet for neighborhood retail because that would be consistent with smart growth. This was the retail that the people who live in this end of the area to walk to, to get their daily stuff, and it helps reduce traffic for our employees who stop there and get bread and milk and so they don't have to go drive as much, so it's important for this portion of Lihu`e to have some retail. Maybe not Big Save size because Big Save -- we all know people get eight, 10 items and few people did their weekly shopping in that 18,000 square foot. Mr. Dill: I apologize. We do have retail that we've planning in our early concepts so there was discussion about including retail aspect there. Mr. Bynum: And I'm not suggesting that the entire 18,000 square foot. Mr. Dill: Some smaller stuff yes. Mr. Bynum: I say six or seven and (inaudible) the footprint that is working that the smaller commercial stores are starting to be viable (inaudible) people are using them, so anyway that is being considered at least. Thank you very much. Chair Furfaro: Before I go to the Vice Chair, I want to make sure the space plan is being revised to now include the fact that the 18,000 square foot at Big Save is vacant. We didn't issue a new space plan or contract. It's being revised. Mr. Dill: Correct. We had an update the existing plan. Chair Furfaro: Okay. I just want to let you to know my position on this is I'm anxious to see the plan because I want to save rent money for the Auditor who should be in this building since they have a dotted line to report to the Council and that the Historic Society should be part of that planning for space over there. I just want to make sure that you -- because their lease is going to run out in six years. Okay. But we now have an Audit Department which the Council has to pay rent for. Okay. At the end of the day it's all the County's dollar so I want to make sure I hope in this revised space plan -- I do agree with Mr. Bynum. I see the piece about having sundry type concessions there but I don't want the Historic Society to drop off of the radar April 19, 2012 CIP budget(cont'd)p.104 screen since we need to get our Auditor back in the Historic County Building. Just FYI. Vice Chair Yukimura and Councilmember Nakamura. Can you run the meeting from here for a moment. Mr. Rapozo: Sure. Ms.Yukimura: Okay. Thank you. I want to reiterate what Councilmember Bynum said about retail space. There is a real impact to this community when Big Save moved out. From the Lihu`e Court People to the Molokoa People, to the Elderly Housing to even Sun Village and this whole smart growth concept of having some services nearby is important, and it is turning out some of the small space, whether gasoline station-- gas stations, are quite profitable and also serve a need, so it's a chance for the County to think of using its space in terms of its impact in the surrounding community. The County as a neighbor or a part of a community, and then the other thing is the whole storage issue -- I mean I hope that we're not going to plan much of the space used for storage because I think it's prime office space, and it certainly doesn't make sense to have us pay market rents outside when we have our own space, so and the last consideration I will just toss out. There is some thought of bringing the Sunshine Market into town also and I don't know if it can fit, but that is just another thought. I guess with the Town Core Plan maybe it fits somewhere. Mr. Rapozo: Okay. Back to the budget, any questions on any item? Councilmember Nakamura. Ms. Nakamura: This is related to comments made earlier. While I agree that Big Save has left a gap, a retail gap here I am also concerned about business feasibility in that space with Wal-Mart expanding retail. Safeway coming up and others nearby, so I think as we - - you know, in the planning process we need to kind of look at the business feasibility into look at maybe models that might work elsewhere and what the situation is locally, and factor that into space planning. Mr. Rapozo: Thank you any questions on any item on page four? If not I have Doug, Historical County Business, The Civic Center. I am looking at the recap and original approval and $711,000 we have expended 35 encumbered 153 so we got 522 thousand left in the line. What would that be used for? What is the plan for that money? Mr. Haigh: What's left over from being used for the Historic County Building will be then be shipped over to The Lihu`e Civic Center site improvement project. Mr. Rapozo: Right. So that's the 522. Mr. Haigh: Yes. That's correct. Mr. Rapozo: What's on the horizon for that? Mr. Haigh: Okay. We have final drawings. We have been kind of-- the Big Save change affected this project also because it changes our issues with the Eiwa Street, so rather than looking at improvement to Eiwa Street we're holding off on that and we scaled back the project to primarily do the Rice Street Parking Lot side, the Umi Street improvements to provide the connect ability to the annex and this building, and also the Hardy Street side providing the connect ability between the Bus Stop and The Civic Center and we are reviewing those drawings. and hopefully out to bid at the latest by this summer on that portion and we're going to reanalyze the whole Eiwa Street parking lot area, the Eiwa Street and the parking lot area there of whether or not it makes sense at that point to look at potentially closing it Eiwa Street and doing improvements to provide the linkage between the Piikoi Building and the Historic County Buildings. April 19, 2012 II CIP budget (cont'd)p.105 Mr. Rapozo: Okay. So not necessarily building structure improvements. This is roadway improvements.-- Mr. Haigh: This is for site improvement. Mr. Rapozo: Okay. Go ahead. Mr. Bynum: It's kind of like the Civic Center ADA and this are intermingled? Mr. Haigh: That is correct. Mr. Bynum: And so this -- I asked this earlier today and if I heard it -- I think part is realigning the entrance on Rice Street across from the Post Office? Mr. Haigh: That's correct. Mr. Bynum: And reestablishing the walks. Mr. Haigh: That is correct. Mr. Bynum: And those are -- these are both projects that are relatively close to actually getting shovels in the ground? Mr. Haigh: That is correct. Mr. Bynum: Good news and it links with Hardy Street? Mr. Haigh: Well, Hardy Street is a separate project -- well, we're making the connection between the Civic Center and the bus stop and Hardy Street as part of the Lihu`e Civic Center site improvements. Mr. Bynum: Okay. Mr. Haigh: We were looking at doing improvements to the bus stop in partnership with Transportation as part of that project but as we put the pieces together it made sense to do that within the Hardy Street project. Mr. Bynum: The improvements -- Mr. Haigh: To the bus stop, yes. Mr. Bynum: That's the central bus stop in essence. Mr. Haigh: So we will be enlarging the bus shelter there and doing a much better integration between the bus stop and the road itself, so it will have a smooth appropriate connection. Mr. Bynum: Including ADA safe access through the parking lot to the building right? Mr. Haigh: That's correct. April 19, 2012 CIP budget (cont'd)p.106 Mr. Bynum: I am looking forward to these three projects coming to fruition. It's going to change downtown a lot. Thank you. Mr. Rapozo: Thank you. So the Rice Street Larry the Rice Street projects that we talked about earlier that we are funding that I was under the impression for the cross walks when Wally was here. That's a separate project. Why would -- I guess it's confusing. These seem to be roadway projects, so why would they be in buildings? It's because we go through highway, we go through engineers and buildings and we're talking about pretty much related projects. Why is it that way? Mr. Dill: Well Doug had the Hardy project on his plate before I arrived so we don't want to change that but generally speaking we tried to align the projects so that the (inaudible) building it goes to the Building Division. If it's site work type of stuff then it goes to the Engineering Division and that's generally the way it happens, but workloads sometimes dictate otherwise and Doug has experience in site work as well as building so occasionally that will happen. Mr. Rapozo: But what we described right now is similar to what I heard from Wally Kudo. Mr. Dill: Yeah. Mr. Rapozo: Is it duplicated? Mr. Dill: The Rice Street line item will tie into the work that Doug is doing with the Lihu`e Civic Center site improvements but go further down Rice towards in the Nawiliwili direction. Mr. Rapozo: Does that make sense though to have planning of Rice Street projects assigned to Roads and Engineering and Hardy Street going to Buildings? Are we hiring three different consultants? Mr. Dill: The Rice Street stuff is in house effort. Mr. Rapozo: I'm sorry? Mr. Dill: The Rice Street will be an in house effort. Mr. Rapozo: Okay. Mr. Dill: I understand what you're saying it seems like it's piece mealing a project. Mr. Rapozo: Right and the Councilmember Yukimura always talks about it starts with a plan but if the plan has three different ... it's like a three headed snake. For efficiencies, and I just don't understand why -- I always ask that question and I don't understand why we continue to have non building projects in buildings. I just don't understand it but if you feel it's working than it's working. I just think it's some added maybe some duplication of work and because you got different departments running different projects that are actually all tied together. Mr. Dill: There is a nexus, I you agree with and there is g coordination happening between Buildings, and Engineering in accomplishing the projects that Doug April 19, 2012 CIP budget (cont'd)p.107 has been working on for these roadways. A large part of that decision is to where that projects ends up is due to work load. Mr. Rapozo: And the only other question I have is the security renovation for the Mayor's Office. What is that project? Mr. Haigh: I believe it's been completed but I'm not absolutely certain. Mr. Rapozo: Okay the recap said we've encumbered or spent just under $10,000, but there is still a balance of$41,000 in there. Mr. Haigh: Yeah, I know Brian has been working on it and I'm not positive where he's at. It maybe that it's just ready to go out to bid. It's one of the smaller projects so I wasn't paying close attention. Mr. Rapozo: Any idea what it would entail? We already spent $10,000. Is it cameras or bullet proof glass and that's what I envision as a security renovation. Mr. Dill: I think we'll have to get back to you on that one Councilmember Rapozo. Mr. Rapozo: Staff if you could note that question. Any other questions for buildings? Go ahead Mr. Kuali`i. Mr. Kuali`i: My questions are more general. Mr. Rapozo: Before we get to the general questions any-- I Mr. Kuali`i: General for Buildings. Mr. Rapozo: Any specific item questions for the proposed, if not -- okay Mr. Kuali`i. Mr. Kuali`i: Basically Vice-Chair Rap ozo you were asking highways (inaudible) about the basics of project management and I know that Doug is the King of project managers for this County, so and I did hear Clint Saiki clarify that the salary and over time would be paid by the general fund and the general fund would reimbursed by the CIP funds. In our discussions on positions there was a discussion about construction manager position and the project manager position. Does the construction manager also do project management? Mr. Haigh: Actually it's vice versa. The project management position is the more senior position and the project manager could be involved in construction management, but you wouldn't look at the construction manager being involved in the project management. Of course if we brought somebody in we would be training them and moving them up and giving him -- give that person that kind of experience to broaden their abilities. Mr. Kuali`i: Now, are these -- like for example, I think we were introduced to Scott Suga who is a brand-new project manager with highways I guess. Mr. Dill: Yeah. April 19, 2012 CIP budget (cont'd)p.108 Mr. Kuali`i: He would be in a new County-- no, contract funded position, and that would be full time towards project management? Mr. Dill: Correct. Mr. Kuali`i: If he worked -- if he had to because of the work load he could also get over time? Mr. Dill: Yes. Mr. Kuali`i: So a contract funded project manager is like non exempt hourly and not entitled to over time? What about the county funded positions that do project management? Do we have any for starters? Mr. Dill: Yes. Mr. Kuali`i: Because in the Building Division there's all those that we talked about, but they're all vacant and dollar funded. Mr. Dill: Well those would be -- Mr. Kuali`i: Those are all contract? Mr. Dill: Right. The ones that are County Employees largely reside in engineering division. Mr. Kuali`i: Okay. So none in this building -- in there they're actually called project managers? So what about in the specific example of your position? Mr. Haigh: In the Building Division supervisors, myself and our Office Manager -- not office manager Buildings Brian Inouye our Maintenance Supervisor, Building Maintenance Supervisor does a lot of project management work in addition to the super vision work. That's basically how we managed all these years is not only do we do our administrative work but we are also specific project work. Mr. Kuali`i: (Inaudible) there is one called Supervisor Building Inspector, Supervisor Electrical Inspector, Supervisor Plumbing Inspector. Are those the three you are talking about? Mr. Haigh: No, there are specifically Code Enforcement although we do utilize our Building Inspectors and sometimes our other Inspectors for Construction Management Assistants for projects. Mr. Kuali`i: Who would you use for project management. Mr. Haigh: That would be myself-- Mr. Kuali`i: Besides yourself and you are Civil Engineer VII. Mr. Haigh: Correct and also would be the Building Officer? I forget the title of the position. Mr. Kuali`i: There is Code Enforcement Officer April 19, 2012 CIP budget(cont'd)p.109 Mr. Haigh: Not that one. Mr. Kuali`i: There is an Office Manager. Mr. Haigh: Oh, actually you will see it in the maintenance section not in the first section of the Building Division Budget. Mr. Dill: Who are you looking for? Mr. Haigh: Brian's position. Mr. Kuali`i: Buildings Manager. Mr. Haigh: That's it. The Building Manager is also doing Project Management but primarily for repair and maintenance type of projects but definitely projects that are contracted out and also he has to take care of all the ongoing contracts for elevator service, air conditioning service. Mr. Kuali`i: So that person would be paid fully by the General Fund and what percentage of his time would be paid back from CIP? Mr. Haigh: Well for him none because none of his projects -- typically none. Typically he doesn't have projects that are grant funded so only the grant funded projects do we get money back to the General Fund. Mr. Kuali`i: So that was one example but there is no charge back for CIP. What about in your case? Mr. Haigh: In my case it's the same. My understanding in the Public Works Fiscal Office they will not charge our general funded time to a CIP project. They will just -- because we're funded under the General Fund but they will charge when we apply for reimbursement from the grant. They will take that and request the money from the grant, so that's when general funded positions funding gets reimbursed and in those funds go directly to the general Fund to the Department of Finance, and we don't see them. Mr. Kuali`i: But is that charge based on the time that you put in-- Mr. Haigh: Yes. What we do on the time sheets if we're working on a grant funded project we will put in so many hours to that grant funded project so they keep track of it and they can bill it to the grant. It gets -- Mr. Kuali`i: So when you started by saying it doesn't charge back but it actually does if you keep track of the hours, and then later CIP pays the General Fund back. Mr. Haigh: It's the grant, grant funds coming in. Mr. Kuali`i: Oh yeah okay. The last line and the grants from State and-- that line. Mr. Haigh: Yeah. That's where. April 19, 2012 CIP budget (cont'd)p.110 Mr. Kuali`i: I guess I am thinking all of that as CIP and part of this project;right? Mr. Haigh: Yeah. Mr. Kuali`i: (Inaudible) and bond fund or-- Mr. Haigh: Like all the work I did for the Historic County Building. That was just part of my General Fund work. It wasn't charged to the CIP and then Pat's work since -- this is a good example. Since I am generally funded none of my work to the Historic County Building was charged to the CIP. Pat is dollar funded in a position established to be funded by the CIP so he was charged to the CIP. Mr. Kuali`i: Which position is that? Mr. Haigh: It's one of the project managers. A dollar funded project manager. Mr. Tabata: Principle Project Manager. Mr. Haigh: Project Manager Officer, contract. Oh wait, no, that's the wrong page. Yeah, so that's what it would be. Project Manager Officer, contract. Mr. Dill: Position 9048. Mr. Kuali`i: EM-05, 1000. Mr. Haigh: Yes. Mr. Kuali`i: So, of all the others, you said they were not filled, but now that one is filled? Mr. Haigh: Yes. Mr. Kuali`i: That is correct. Mr. Haigh: During the last fiscal year we did fill, we did have somebody, actually two people we were charging in those other positions for a period of time. Mr. Kuali`i: So, his work is dependent on moving from one project to the next to the next to the next. Mr. Haigh: That is correct. Basically he is managing probably three (3) or four (4)projects at a time. Mr. Rapozo: Mr. Kuali`i hang on real quick. B.C. how's the Captioner's status? Jay told me at ten till we were going to change Captioners and I just remembered. Alright. Thank you. Mr. Kuali`i go ahead. Mr. Kuali`i: Is Pat's position like Scott Suga's position? Where he is hourly and eligible for overtime? Mr. Haigh: That is correct. April 19, 2012 CIP budget(cont'd)p.111 Mr. Kualii: But your position is not? Mr. Haigh: Well, I'm eligible for overtime, yes. Mr. Kuali`i: So any of the project managers would be eligible? Mr. Haigh: Yes, yes. We are all civil service employees and we are eligible for overtime. Mr. Kualii: And the reason it is needed is because we do not have enough project managers? Mr. Haigh: That is correct and to be perfectly honest I am not uncomfortable with the amount of overtime hours that are being worked. Mr. Kuali`i: So where is that in the budget because overtime...? it Mr. Haigh: It is charged to the CIP. Mr. Kuali`i: But paid for by the General Fund first and then reimbursed by the CIP? Mr. Haigh: Okay, it gets a little complicated here. For the General Funded people, we will charge it to the grant and it will get reimbursed. If it is not a grant funded project, we do have some accounts for overtime and we also have unfilled positions that we have to utilize some of those funds to compensate for the overtime. Mr. Kuali`i: So basically we won't see a line item in your budget for the overtime. Mr. Haigh: I believe there... Mr. Kuali`i: I mean I saw in one in your division but it says only $7,000.00. Mr. Haigh: Yes, it is low. But it is an account there. Mr. Kuali`i: The only other thing, but that is on the maintenance side. Mr. Haigh: I believe on the maintenance side we have a much higher one. On the maintenance side we have a $20,000.00 overtime. Mr. Rapozo: Does the $27,000.00, is that pretty close to what you folks use? Mr. Haigh: It's been more than that, but that is what we are budgeting and should be our norm. If it goes over that it is because we have empty positions or more grant projects that we need to charge to. Basically, in the first page it says $7,000.00 and that is set- up for me. The $20,000.00 on the other page is on the maintenance side. Mr. Kuali`i: And the overage is charged back to the CIP also? April 19, 2012 CIP budget (cont'd)p.112 Mr. Haigh: Nope, we do not charge General Fund employees overtime to the CIP. Now I do not know if that is illegal or just strictly a policy decision. Ilj Mr. Kuali`i: And for grant funded positions? Mr. Haigh: The grants we charge. The overtime to the grants. Mr. Kuali`i: Those are CIP grants though? Mr. Haigh: Yes. Mr. Rapozo: Okay, any other questions for buildings? If not, thank you very much. Mr. Haigh: You're welcome. Mr. Rapozo: I'm not sure who is next, I am assuming it's Housing. Is our captioner still there? They can do the transition without a break? Oh okay. Good afternoon. Housing Agency: EUGENE K.JIMENEZ, Housing Director: With me today, I have the Development , Coordinator, Gary Mackler, and we are here today to describe the two (2) projects that we are requesting for CIP funding under the Bond Fund. We did hand out earlier a two (2) page handout which we will explain later in regards to the Lihu`e area project which we are proposing. With that, let me turn this over to Gary, he will start off with the first propose CIP, it is entitled affordable housing on page seven(7). GARY MACKLER, Housing Development Coordinator: Good afternoon. The first line item there that is showing is money that we are asking to be carried over into next year's fiscal year budget. This is money that has been held in contingency to hopefully be utilized to fund an environmental impact statement for the Limaola project. We had discussion about this on Tuesday as part of our budget presentation. This money will be used in conjunction with other money that are showing in our Housing and Community Development Revolving Fund budget and that is really all I have to say about that line item at this time, unless you have questions. Chair Furfaro: That is it, on that project? Mr. Mackler: Yes. Chair Furfaro: Is that the next sequence on projects? Mr. Mackler: I would be happy to go to the next line item. Chair Furfaro: Yes, go ahead. Mr. Mackler: Which is a request for two point three million dollars? This is a request for the County of Kaua`i to acquire land. We, as a County Agency and as the Administration continue to look for land that is suitable for the development of affordable housing. Early in 2011, the County started discussions with the owner of — what we call the West ridge Properties with their local contact Sean Smith. This property is owned by this LLC that controlling partner in the LLC is Larry Bowman. The land was purchased by West ridge in 2007 for close to five April 19, 2012 CIP budget (cont'd)p.113 million dollars. It was at one time slated to be a site for the Lihu`e 56 project which was going to be 56 condominiums that would be developed there — mid-level project, it did not get off the ground. During 2011, through our negotiations with the seller of the property, it was made clear to us that they were hopeful to complete a transaction where they could possibly sell this property for three million dollars or slightly less than that. Subsequent to that we went out and had an appraisal commissioned—our Agency Commission appraisal through (inaudible) Company and that appraisal which was completed in October 2011 came in at a much lower value than the seller's expectations. At that time, the negotiations ended because we made it very clear to the seller that we were not prepared to come before this Council to recommend an acquisition of land that exceeded the appraised value of the land. Our discussions ended around November 2011 but we did continue to remain in contact with the seller and earlier this year we did have a discussion with Sean and we expressed our continued interest in these sites. We met with him again at his request on March 1 of this year wherein he conveyed to us that the majority of the land—Larry Bowman was now prepared to sell the two (2)parcels to the County of Kaua`i at the appraised value. Chair Furfaro: Gary, let me just ask a quick question. Potential (inaudible) is still fifty-six units? Mr. Mackler: Yes, it is. Chair Furfaro: So, that equates to about forty-one thousand per unit density? Mr. Mackler: Yes. Chair Furfaro: Okay. Mr. Mackler: There are two (2) pieces and what I have given you is — I brought a handout up to you earlier in the day which provides you with property description. Both of these parcels have gone through State Land Use and County's zoning, so they are well advanced in terms of their entitlements for development which is a really good thing. Part of that handout is an aerial photograph to show you the exact location and it is shown in the red borders that you can see in that aerial. The larger piece is a little over three acres; it is approximately three and a half acres—that is the site that can hold fifty-eight dwelling units at this time. Nearest main intersection will be Kalena and Rice Street but if you are familiar with traveling to Lihu`e Court Townhomes taking the turn to go to Lihu`e Court Town Homes, it runs right between the two (2) parcels of land. The larger piece does overlook the valley below, the Nawiliwili Stream and Kiipu Mountain Range; it is actually spectacular views off the backside of the property. The smaller piece which is one point three acres is a vacant parcel of land however does has one temporary structure on it —it is currently being used by the Lihu`e Fire Department for storage. I should also mention recently with water line improvements that were made throughout the Lihu`e area, waterlines upgrades have been made right up to the parcels. That was a very nice add for the offsite infrastructure. Both parcels will be serviceable through the Lihu`e Wastewater Treatment Facility. I also just brought up another handout — a one page handout, I wanted to give you a sense of a timetable where we to be able to acquire this land and move it forward for development. I hope you all have that and it looks like this. The Mayor has pushed very hard for this project and has pushed us very hard to make this transaction happen. He is very(inaudible) behind developing multi-family housing that will serve our senior population. The last project that I am aware of that was developed where we had any involvement was the Hale Kupuna Project which was twelve years or more ago, a twenty-eight unit project and it has been a long time since any housing has been produced here for specifically for our senior population and there is a growing need — a growing demographic on Kaua`i. Our Hawai`i Housing Planning Study released last year shows that there is a need for several hundred multi-family units for seniors who are below eighty percent of the median April 19, 2012 CIP budget (cont'd)p.114 income and we expect that number to grow into the future giving the changing demographics here on Kaua`i. In looking at a tentative timetable, the first thing we would want to do assuming we could gain control of the site, is to really look carefully at project concept and programming because that is where it is going to start as far as trying to layout what to do with the site and how to go forward with design and development. We also know given the type of financing we would want to use to build housing on this sites, we are going to need a environmental assessment completed and we will need to do one that complies with Chapter 343 of the Hawaii Revised Statutes and also with the Federal level of environmental compliance which is called NEPA — National Environmental Policy Act because we are probably going to use HOME funds here —low income housing tax credit, equity —those kinds of financing tools. We would also want to look at the utilization of our fiscal year 2013 HOME funds. I have shared with you last week, I believe when we were talking about our 2012 Action Plan that the County of Kauai although we did not receive an allocation for 2012, we will receive the entire State allocation in 2013. That is the exact kind of funding that we would want to program into a project like this because it is flexible, it can be used for project soft cost, on-site infrastructure, and vertigo constructions. So this is just an early source of money to help this development go forward. Much like what we have done in the past, most recently with the Paanau Village Phase two (2) projects, we would look at issuing a request for proposal to make a developer selection. The idea behind that would be to bring in a developer that could help us go after the remaining financing pieces that are needed to round out the financing for a development and that is most likely an application that would go to the State of Hawai`i through the Hawai`i Housing Development finance corporation that administers not only the HOME Program but the Tax Credit Program, the Rental Housing Trust Fund Program, the Rental Housing Revolving Fund Program, among others so looking at that and when we could actually have a developer position to go after that financing most likely will be applying for the State's consolidated application in January of 2014. If they were successful there would be a tax credit award or financing award in May or June of that year which is about the timeframe the State typically takes to issue out their awards. Following that to get a project under construction would most likely be toward the end of 2014 with occupancy in the summer or late summer of 2014. That assuming we can get started with this project this year. Chair Furfaro: Let us go through all of your presentations and we will come back for questions. Mr. Mackler: That is it. Mr. Bynum: You have answered all the questions and I am just... I think this is a great project and I have been talking to you about this land for a couple of years. It was on the table, off the table, on the table... but I think this is really a testament to good long range planning and being prepared and having the experienced staff and thinking forward because to get side control and move to potential occupancy in this timeframe, for government is lightening speed and that is because the Housing Agency already has the expertise and these things in place. I know that was not a question but this is great... this is... where the jobs are here in Lihu`e and with the kind of things Public Works was talking about from this site people can walk safely, access retail, banking and medical facilities. Mr. Mackler: I did want to... Chair Furfaro: Before you go forward... you did not pose a question but I just want to ask you one other piece. As we talked about and I do not know if you remembered, have you checked on this piece of property having issues with an old railroad right of way? 1 April 19, 2012 CIP budget(cont'd)p.115 Mr. Mackler: We have checked on that. I want to also mention that when we commissioned the appraisal last year, we also commissioned the phase one (1) of our metal site assessment and I believe it was reviewed as part of that review. The results of that ESA were that there were no issues in terms of the site not being cleaned. That there being any issues with hazardous materials and the likes so... and I believe it was reviewed and addressed through the ESA. Chair Furfaro: That answers my question. I know we are having similar issues with the railroad right of way behind the old Lihu`e Plantation Corporate Office and that is why I raised that question when we met last time. Mr. Mackler: I was going to say that because there are two (2) parcels involved, we would really look at developing the larger parcel first and looking at the second as potentially a second phase because the amount of financing you can get to do housing development these days, especially through the State — the awards they make are typically for projects that range between forty and sixty units, so this is kind of right in the sweet spot, we think, to at least get one phase of this development underway completed. Ms.Yukimura: I am delighted with this project; it is something I can fully support in terms of acquisition. It is right in the middle of town, it is going to be serving a need and I have lots of questions about the details of the project but I am not going to ask them here in terms of acquiring the land which is what the CIP proposal is about. Mr. Mackler: It is. Ms.Yukimura: I think it is a fabulous idea and I commend you for the initiative for the tenacity to stay on top of it even when it looked like a "no" and for doing the right thing and getting a yellow book appraisal. Did you get a yellow book appraisal? Mr. Mackler: I am not familiar with that term. Ms.Yukimura: It is a higher level appraisal. Mr. Jimenez: It was a commercial appraisal. Ms.Yukimura: I understood to be a requirement if we buy land. Mr. Mackler: I believe the appraisal commission will meet any of the federal requirements that... Ms.Yukimura: Anyway, it is very commendable and I am very happy about it. I am just hopeful that you would do planning for both parcels at once. Mr. Mackler: Yes. Ms.Yukimura: Because you will need to know how they are going to work together and I hope that we also look at even oversight. Councilmember Bynum said it is safe to walk to everywhere but actually there is no sidewalk along Kalena. Ms. Mackler: Councilmember Yukimura, I... April 19, 2012 CIP budget(cont'd)p.116 Chair Furfaro: These are details that come in discussion about housing, so we see now that the purchase (inaudible) eventually we have to also include sidewalk but that is another discussion. Ms.Yukimura: And I may post it in my Committee for this detail discussion. Chair Furfaro: You are more than welcome to do that. Ms.Yukimura: But the basic concept—thank you very much. Mr. Jimenez: Thank you very much for your comments. I would also like to state that — I would also like to give credit to Steve Hunt who assisted us with the appraisal and he did a lot of footwork for us and also I would like to commend the other County Departments which we depended on a lot such as Public Works to Water and we met with them extensively to figure out how we can make this project a reality and how can they assist us in doing it. The money is available here and I think we are asking for something that we are all going to be proud of. Chair Furfaro: I think Vice Chair Yukimura said it and I will say it again, thank you for keeping the tenacity and keeping this item on your radar screen and this is the third and final time that discussions happened but we are all very pleased and have happy faces on our profile, if you will. Budget questions regarding this parcel? No. Are there any other questions for Housing in CIP? Planning: PETER A. NAKAMURA, Planning Department: As far as the six year CIP goes—as far as that item goes, the Planner from our Division that actually worked in that Department is currently on family leave. Probably the best way to handle that would be to... if you had detailed questions it would be good if we can get back to you in writing on those. Chair Furfaro: Peter, just so you know I asked Ashley to bring out our copy of the six year CIP. Ours are so loosely bounded and I was wondering is it typical... or when it is published, do we each get a copy? Mr. Nakamura: I think the last time and this is just recalling from memory just from some early discussions, Chair, the CIP may have been transmitted to the Council — the six year CIP may have been transmitted to the Council would have been... probably about three years ago Chair. Until starting probably in 2011, the Planning Director and Marie Williams from the long range division actively started working on reconnecting the six year CIP program with the County budget and with the General Plan and with the various plans. That effort that started back in 2011, last year, that... we are trying to build on that. What happened — in 2011 the Department worked on a format to have Department's submit to the Planning Department pursuant to the Charter projects that could be included in the six year CIP. The second thing that they worked on was making sure that the projects that were submitted were reviewed in terms of the projects being in lined with policies of the current General Plan. That was one thing they put in as part of the submittal starting 2011. The next thing they wanted to make sure and this happened after numerous discussions with the Public Works Department in particularly with Deputy County Engineer Lyle Tabata was the importance of connectivity and any of the projects that had to do with roads and streets or those kinds of things... the complete streets program, the work— Public Works is doing the update of the living streets manual was going to be part of the review of projects that were being submitted as part of the six year CIP. That is kind of the first steps that we are taking April 19, 2012 CIP budget (cont'd)p.117 starting 2011. The other thing that occurs is if you go back historically, the way the Charter initially reads is one of the main reasons for having a six year CIP was to coordinate projects that were Federally or State funded. I think in the past, the six year CIP was aimed at being a document that could be taken to the Legislature to go get matching funding when funding was available probably about... 5, 6, 7 years ago—the possibility of the State having matching funding for County projects I think fairly... pretty much disappeared. I think if you look at the Charter, I think one of the primary reasons for having the six year CIP was to be able to show that to the Legislature and to show projects going forward and funding and matching funding. Historically, that was one of the reasons for having it. The second thing if you look at the Charter and what is interesting about the six year CIP program is they talk about the distinction between the CIP program and the CIP budget and different ways — and those are treated in different ways. The CIP program is treated differently from the annual CIP budget. The other interesting thing if you look at the Charter, the six year CIP is also supposed help set the stage for bond floats or infrastructure projects that are done by bond float. And if you go further into the Charter requirements for the CIP program, it talks about having to be — the way the Charter in Section 19.9 talks about it is the CIP program includes with pretty much are bricks and (inaudible) projects. Permanent public improvements including planning, engineering, administrative cost, not repair and maintenance, acquisition of land, furnishing and fixtures so that is pretty much part of the Charter a defined type of project that was going to go into the CIP six year program. In essence, you are not going to see plans, the Master drainage plans — that is part of the six year CIP because it is not what is anticipated as part of the Charter. One of the things that started happening in 2011 was now having to look at the type of projects that were being put forth by the Department and being vetted according to the Charter requirements or is should be included in that. At that point, the Department worked on a form — a checklist if you will so that the departments can submit projects to the department, so the department can start the review. The initial reviews of the projects in terms of consistency of the General Plan is in fact , taking place within the Department and it is sometimes it is a...the General Plan which is scheduled to be updated may not have been specific about certain projects but if you look at the overall policies of the General Plan, they would fall within those overall policies. An example of that would be something like... recently the Council discussed the Kawaihau permanent substation — Police substation, in 2000, I do not think that was anticipated yet. One of the things that... so when that was put forward as part of the six year CIP, if you look through the General Plan, there is not going to be a specific reference to develop a police substation in the Kawaihau District. Instead, you will find policies and statements in the General Plan to talk about the need for the County to be mindful of the public safety aspects and making sure that the public safety aspect of the County services stay in line of the growth of the highway. Sometimes if you look at those policies, they are not specific but you can find general guidance—general policy guidance. Chair Furfaro: I guess what I am looking for is... our session today is about the CIP funds identified today and I am glad Mr. Barreira is still with us. Mr. Nakamura: Right. Chair Furfaro: But when I was a Planning Commissioner, the Planning Director brought to us a six year plan that is showing what we are doing in Kilauea with the well for water or what we are doing with the collection of landfill and you can see the kind of vision with the plan. I think the last booklet that I have is one that expires in 2014. Mr. Nakamura: That would have been in 2009. Chair Furfaro: 2009. So, I am asking is — is the Department planning to sign off on this current year and this kind of vision going forward in a new publication for us? April 19, 2012 CIP budget (cont'd)p.118 Mr. Nakamura: Yes. Chair Furfaro: And if so, when would we expect that? Mr. Nakamura: Well the six year CIP document which is I think fiscal year 2013 to fiscal year 2017, 18 I believe is this current one, was actually brought to the Commission back in January. Reviewed with the Commission, the Commission went over it and it was then transmitted to the Mayor's Office and we are still in the process of reviewing that document with the Mayor's Office so what we would like to do is try to see if we can work with them to get it over here prior to the May submittal. Chair Furfaro: Okay. Mr. Nakamura: But in that document which was reviewed by the Planning Commission, I think there were approximately fifty-three projects and sticking to the Charter requirements, in essences (inaudible) projects. You are not going to see studies in there. As much as possible, we try to review the projects for consistency with the General Plan — the 2000 General Plan. We also try to look at the Road Projects for connectivity purposes for being.in compliance or being at least trying to meet the complete street standard. So those are the two (2) things... Chair Furfaro: That is what we are looking for. Larry Dill presented to us today spreadsheets —ten of them identifying projects and so forth current budget year coming up. But for us, we want to also be able to track what is being forecasted going forward so if I heard you right, you said that is being—it has been over to the Mayor's Office. Mr. Nakamura: Still under review. Chair Furfaro: Still has to review but the six year CIP—the target is to get it to us before the May 8 reforecast? Mr. Nakamura: Yes. I think the thing that we wanted to make sure we stress with the Council is that it is a work in progress. We know that the requirements of the Charter look for the projects in the six year CIP to be prioritized and this is not something that we have been able to do yet but it is something that hopefully going forward we will have ready by next fiscal year. Chair Furfaro: And again, I am just wanting to summarize that because today we saw a lot of changes from Larry's presentation of things we had assumed were being targeted for. Each year we are getting the update on the six year plan, we can then build a history of items and that would be most helpful. We look forward to that and that is not an agenda item now, that was just a question that surfaced about the six year plan. Mr. Bynum: So, there is a draft of a new six year CIP that went through the Planning Commission already? Mr. Nakamura: Yes. Mr. Bynum: And is that a public document? Mr. Nakamura: It should be, I think, yes. Mr. Bynum: And how often do we update the six year CIP? April 19, 2012 CIP budget (cont'd)p.119 Mr. Nakamura: It would be... by the Charter, it is done annually. Mr. Bynum: Every year? Mr. Nakamura: Yes, and it is a rolling compilation. Mr. Bynum: And when was it last done? Mr. Nakamura: I would have to get back to you, Councilmember but I... Mr. Bynum: So, this is an ongoing project of the Planning Department right now? Mr. Nakamura: This is kind of a restart of a project. Mr. Bynum: And I appreciate your discussion in the front end it was very interesting because what we have been getting from the State — the last couple of years trying to find senergy where the County is actually servicing the State and we had some success in getting some of those funds. But the other purpose of the six years is to kind of say that we are all on the same page about what our visions is for these projects going forward? Mr. Nakamura: Yes, I think part of it was to help the Department's, I guess, look at their CIP projects whatever they are proposing in the context of the General Plan, in the context of a community development plan and see why we are looking at it this way. I think a lot of times projects are put forth and the hardest part of the six year CIP is that... just because the project shows up on the six year CIP which we have been looking at, it does not necessarily mean it is going to pop up on the annual Capital budget ordinance which is... depends on timing, depends on funding. The main thing that we are trying to do is make sure that we build in the review of consistency with County planning policies and policies like the complete streets policy. Mr. Bynum: I appreciate that initiative because that is kind of something new with this, right? And so when we complete this project, it is going to be more lined with its original purpose and policies as what I heard you say? Mr. Nakamura: That is what we are trying to do, we are trying to bring it in alignment with the General Plan and what it envisioned the six year CIP to be. I think the hardest thing is going to building the nexus between the six year CIP and the annual CIP budget. That probably is going to be one of the harder things and to prioritization projects. Mr. Bynum: So in this process basically the departments are saying take this document seriously and give us the input about your visioning? Mr. Nakamura: The interesting thing, I think, when I was talking to Marie Williams who was working on the project, I think we initially kind of on the questionnaire asked the departments to try to evaluate whether the project is in line with the policies of the General Plan. We found that it would take more than that, to put it on a piece of paper and ask the department's, does this project align itself with the General Plan? We found out that it will take more of the department going out and meeting with the departments, going over the projects, trying to get the explanation done. Part of it for us is outreach to the departments. April 19, 2012 CIP budget(cont'd)p.120 Mr. Bynum: I really have been liking this discussion and I appreciate the department moving in that direction because when I first learned of the six year CIP in my involvement of government, I was like "but the six year CIP says that" and I heard this repeatedly from different departments, "do not pay any attention to that document, it is just something that the Charter makes us do every year." This is very different, you are saying "no, let us align it with the Charter..." Mr. Nakamura: Let us rebuild the connection. Mr. Bynum: And let us make it a meaningful document that actually says something—great, thank you. Ms.Yukimura: I too appreciate the effort of the Planning Department to get back to the original concept of tying our infrastructure to our plans but then our plans have to give enough guidance and have to be up to date. How are you folks tying the analysis of whether something is in compliance with the General Plan to a rapidly changing policy arena and an example —this is the complete streets and I am actually quite impressed by the transition that is being made, I think partly because the staff is so already convinced of the policy changed that they are already proposing projects aligned with it and that is on the level of neighborhood complete streets. Mr. Nakamura: Correct, yes. Ms.Yukimura: My concern has been on the level of the macro island wide transportation system and where handicap —because we do not have a transportation planner and also much of the infrastructure and it is being planned by a DOT, not a County. I am aware or my understanding of the existing General Plan is that it is simply adopted the1997 Highways plan and so the existing General Plan is based on the Highways General Plan even though it may not bring us to environmental protection or functionality even. How are you folks handling a difficult changing public policy arena like that? Mr. Nakamura: One of the ways Vice Chair when we started is when we looking at the development plans, when you are looking at plans updates, is to start looking at them with a different lens, I think. One of the things that we are looking at in terms of—if you look at something like the Lihu`e Town Core Plan, I think what they did was they looked at it, they took the implementation section and tied it to the CIP program saying if you want to implement this plan — the Lihu`e Town Core Plan, if you want to strengthen the town core, these are the projects that should be implemented via the CIP and that is just at the local level. I think what is difficult and when we went to the Smart Growth conference in San Diego, Lyle took me along with him to go to the workshop on (inaudible) Department of Transportation which was really interesting in terms of having State and even Federal Department of Transportation kind of looking at different ways of how to look at transportation projects. One of the things I remember them talking about is basically soon enough... not soon enough but just the matrix — the amount of roads that will need to be repaired and the amount of bridges that need to be repaired is going to have to be a change in federal policy in terms of moneys that are going to be program. Ms.Yukimura: Federal and State? Mr. Nakamura: Yes. And help moneys as they flow down to the State, so I think one of the things that they were saying is that — at that level — at that policy look for changes. ICI { r A p it 19, 2012 CIP budget (cont'd)p.121 Ms.Yukimura: But they were talking about changes at the State policy level, so I think we will hold a planning session on that and I actually have that cd of that... Mr. Nakamura: Oh, yes. Ms.Yukimura: So, it is something that... Mr. Nakamura: It was a fascinating workshop. Ms.Yukimura: Totally fascinating workshop. Mr. Nakamura: They talked about the ability to build new capacity versus taking care of what you have. Ms.Yukimura: I am so glad that Planning Department is aware of that and that we are looking at those issues because I think those are the ones that we need to look at. If we are going to plan well and then do a CIP—six year and annual CIP's that are moving us in that direction. Mr. Nakamura: You should really thank Lyle, he is going to another workshop related to this. Chair Furfaro: We will plan in the near future to have a Council workshop with Planning on this CIP forecasting and planning. Ms.Yukimura: And we can try anyway to invite the DOT—maybe we will get them to come too. Chair Furfaro: I think that would be a good idea. Mr. Nakamura: Council Chair, when we looked at it—it is truly going to be a work in progress. It is going to involve several fiscal years I think. The work that the Department has done in the past, Chair, has really been... well between Marie and Mike, has been exceptional. Chair Furfaro: We are very pleased with the staff there and what they are contributing to our new long range planning process but today we are dealing with budget and I am sorry I raised the question, where we are at with the six year piece so we can start seeing this window. Planning—CIP questions? Mr. Bynum: We are increasing the CIP General Fund technical studies to have sufficient funding which is really phase one of the General Plan update, right? Mr. Nakamura: Yes. Mr. Bynum: Okay, I get that. I guess I am a little disappointed that we are removing funds from the Public Access open space, was there a reason for that? Was it just a fiscal thing? Mr. Nakamura: Councilmember, I am sorry, I would have to get back to you on that. That is not the one that I was quite working on. April 19, 2012 CIP budget(cont'd)p.122 Mr. Bynum: I am glad to see it is still here — County wide impact fee, is there any intention to actually implement it? Mr. Nakamura: As far as the County wide impact fees, that project is in procurement and we are anticipating to encumber the contract prior to the end of the fiscal year. Mr. Bynum: It is in procurement? Mr. Nakamura: Yes. Mr. Bynum: Yahoo! Mr. Nakamura: And we are looking at... before the end of the fiscal year, we are looking to encumber those moneys. Ms.Yukimura: What is that? Mr. Nakamura: The impact fee study. Mr. Bynum: Is in procurement. Ms.Yukimura: But what about the end of the year? Mr. Nakamura: End of fiscal year. Ms.Yukimura: Okay. Mr. Nakamura: So, we are looking to encumber those funds prior to June 30. Chair Furfaro: I am very happy with that, Peter, I think you know I put that money in from the Council, so I am glad... Mr. Bynum: In 2007? Chair Furfaro: It was a while back. Mr. Bynum: So, great. Thank you. Chair Furfaro: Anymore CIP questions for Planning? Ms.Yukimura: Do you have a PID? You do not have that or a description of the line item?Like of the technical studies... which technical studies you are doing and what the timetable is for them? Mr. Nakamura: I do not have that one in particular. Chair Furfaro: You are filling in for Marie, right? Ms.Yukimura: So, we will ask that question. I think I already sent that over. April 19, 2012 CIP budget (cont'd)p.123 Mr. Nakamura: I think it is part of the follow up questions—there was a question about the technical studies. They are also in procurement, Vice Chair, so I do not want to say too much about it because we are still going through the procurement process on those. What I can tell you is that there are three (3) technical studies that went out for request for qualifications, one was on the social economic study that looked at population, visitor counts, and those kinds of things — that is the first study. The second study would have been on the land use assessment to look at where we are at. The third study was an infrastructure assessment and the idea behind this was this was to have these three technical studies done prior to studying the General Plan because what we are looking at was;we were looking for a database. We were looking for a consistent level of data that we could have prior to the General Plan. I think Council Chair Furfaro will remember in the previous General Plan... as part of the General Plan, I think, the CAC was already into the plan when discussions—deep discussions came up on the forecast. So when the forecast for visitor... Chair Furfaro: Oh, there was a very deep discussion on that with the State wanting us to just except their (inaudible) development number and many of fought to a more realistic number that tied to our—at that time existing zoning and no more. Mr. Nakamura: In talking to Keith Nitta, the former long range Planner, what he mentioned was the General Plan update had already started when the CAC got into that discussion and in his mind had served as a drag on the process—kind of slowed it down. In this instance, what we wanted to do is to get as much as possible to get those kinds of issues taking care of upfront, prior to actually starting the update. Chair Furfaro: Thank you. Ms.Yukimura: The land use assessment to look at where we are as included a build analysis? Mr. Nakamura: I think that was part of the request for qualifications. Ms.Yukimura: Okay and then how are you incorporating or... somehow you are incorporating the issues of sustainability in both the General Plan and the area development plans. Mr. Nakamura: As part of the technical studies, one of the things we wanted to be able to look at was... I know there was a lot of discussion about complete streets and making sure there is connectivity taking care of in terms of streets but the streets also serve as infrastructure for storm water runoff. So part of it was to see if we can look at (inaudible) infrastructure of the streets that could coincide with the activity. Ms.Yukimura: It is that kind of connection but it is a connection in a lot of different areas too. Mr. Nakamura: Yes and what we did not want to do is preclude the ability to have green infrastructure, rain guard and (inaudible) at the expense of putting in complete streets. Part of that infrastructure assessment is to look at those kinds of light imprint infrastructure kinds of development. Ms.Yukimura: So you are saying that through the infrastructure assessment process, you are trying to incorporate sustainability? Mr. Nakamura: Yes. April 19, 2012 CIP budget(cont'd)p.124 Ms.Yukimura: Okay. I was just looking at the sample plan that Councilmember Nakamura brought back from one of her conferences, the Fourth Collins Plan, and they did their General Plan and Transportation Plan together, so when I look at what is missing in terms of your technical studies, it is the transportation component but I know that Marie has said that we will make the multimodal plan that that would be... we are really coordinating there but it is still...we are not getting the highway component which is the State DOT land transportation. How are we doing that? Mr. Nakamura: Even at the County level, it is getting a little bit tricky to coordinate because at the same time as we are doing the technical plan the (inaudible) infrastructure assessment, the Department of Parks and Recreation are completing their parks and recreation plan. What we are trying to do now is make sure that everyone is aware of what other plans are going on and other studies are going on. Chair Furfaro: I think we need to maybe just have ongoing discussions on this subject from the multimodal plan to some better coordination and we will be doing that. Any other questions for CIP—Planning? Thank you, Peter. OFFICE OF ECONOMIC DEVELOPMENT: GLENN SATO, Economic Development: I am here to address the CIP, it is under other projects — alternate energy projects and new alternate energy projects. There are roughly one point zero, six million in the first account and five hundred thousand in the second. What we are proposing to do is... it is a PV system for the Police, Prosecutor, Civil Defense facility and what we are looking at a two hundred fifteen KW size system. We just had a feasibility study done in early April that pretty much recommended that there was not enough south facing roof space, so the recommendation is to construct an eighty-two carport that can house eighty-two parking spaces and that would be the support structure for the PV system. Chair Furfaro: Just like the Hyatt? Mr. Sato: Right but probably not as elaborate as the Hyatt because the Hyatt has huge concrete pillars to support, so a little bit more budget minded. Connected with this, it is a design build—it started off as a design build and at the same time I will need to just advise you that we are going through the energy savings performance contract for Wastewater and part of that proposal that has come in is a very attractive power purchase agreement. We right now are looking at the feasibility of— instead of going from design build to looking at the potential of putting this under a power purchase RFP going out. Of course as I reported in the past, there is some legislation going through the State Legislature right now that if it passes it would prohibit the County from — for any investor to take advantage of the State Tax credits through a power purchase agreement. It started off and I do not want to confuse you but it started off as a House bill 2121 and it went over to the Senate side and the Senate gutted the bill and changed it into a totally different bill. There was a Senate bill 2288 that went over to the House side and the House did the same thing, they gutted that bill and stuck in the anti power purchase agreement language in that revised bill. Right now, we are in deep negotiations... not negotiations but I am trying to lobby our Legislatures to try to basically kill that bill. Chair Furfaro: When you say our Legislatures — you are talking to our Kaua`i? Mr. Sato: Yes, Senator Kouchi, Representatives Morikawa, Tokioka and Kawakami. I am asking them to help us because it is not only our projects but my understanding is the State Schools Projects, those are all going through power purchase agreements April 19, 2012 CIP budget(cont'd)p.125 and for some reason this particular bill seems to target County, State and Federal agencies only. So, if you have questions about the specific project itself, I think a lot of it is self described. Mr. Bynum: I do not understand the rationale of this bill and who is pushing it and do you know? Mr. Sato: The anti PPA bill? Mr. Bynum: Yes. Mr. Sato: It originated from the House side... I do not know the reasons why... Mr. Bynum: Who benefits? Mr. Sato: Well, I think the concern from the Houses side from what I have seen in the Committee Report is they feel too much money has been flowing out of the State to provide these tax credits. So basically you are looking at a program that they started that is very successful, so it is a victim of its own success. They are trying to stop the amount of tax credits going out. Mr. Bynum: Okay, I get it. Mr. Sato: Just today, Blue Planet Foundation issued a report, they had Dr. Tom (inaudible)from the University of Hawai`i do a comprehensive study on the impact of the tax credits and I think you will be surprised if you look at it, it was... I think it will tomorrows paper but it shows for every dollar that the State puts out in the tax credits, I believe that there was like a thirteen dollar return basically in jobs and spending. That is pretty much all I can say about that particular bill. We are just trying so hard to kill it right now. Mr. Bynum: Thank you. Ms.Yukimura: I did not fully get your first statement about this one point zero, four, eight million project -that is the Police Station photovoltaic? Mr. Sato: That particular account started off with one point five million. We used about four hundred fifty thousand or so for the Civil Center PV system and then that carryover is what we plan to use in addition to the second funding source to do this Police PV project. Ms.Yukimura: What is the total cost of the Police PV project? Mr. Sato: We are estimating that it would be about one point five million—roughly about there. Ms.Yukimura: And where are the moneys coming from? You are on page seven, right? Do you have our... Chair Furfaro: Do you have the spreadsheet, Glenn? Mr. Sato: I have the list of the CIP numbers. It is under alternate energy projects, there is one point one, zero, four, eight, eight, zero, seven. And new alternate energy projects, it started out with five hundred thousand — somewhere along the line for April 19, 2012 CIP budget(cont'd)p.126 that one, we lost two hundred thousand, so there are three hundred thousand left. You are looking at one point three, five. Ms.Yukimura: Okay. What is the payback for the... the return on investment? Mr. Sato: If I recall the consultants numbers, it is about a ten year payback. Ms.Yukimura: Okay, so we will pay back the project and then we will be saving... is it taking care of all the electricity use of that facility? Mr. Sato: No, the size system is limited by of course our funding amount plus it is limited to how much space we want to commit to — carports and south facing surfaces. I do not think any of our facilities has enough space to accommodate even... seeing the majority of the par usage. Ms.Yukimura: In fact, if you are starting from scratch, you might save more money just by how you design the building then by retrofitting a PV system on it. Mr. Sato: Exactly. Ms.Yukimura: What is making us go to this project rather than some other project? Is this the low hanging fruit? To spend one point three million dollars on it? Mr. Sato: Because we had addressed part of the Civic Center — when I did the Civic Center Project, we used what I was directed to look at in terms of available roof space. The flat roof over Piikoi and when you look at that facility, it is that huge south roofing facing roof... Ms.Yukimura: You are talking about Police? Mr. Sato: But then you have these... it is a tile composite tile roof and for us to put it on that roof surface, was not appropriate. You could, if you really wanted to but by directive from Building Division was limit my project to the flat surface. So we did that, we are looking at large facilities with sustain day time loads, that is the most effective because PV power is coming out from basically from the sun shining during the day. When we look at—if we say we have done a project that Civic Center in the most appropriate candidate is the Police facility. Ms.Yukimura: So, there is a report then showing the return on investment? Mr. Sato: It is a report showing — it is a consultant report showing what is feasible in terms of the roof surfaces facing south and that report basically came up with the recommendation that we would be better served putting up a carport system as a mounting rack and it would provide both shade and parking spaces and at the same time being able to support enough panels to provide PV power to the facility. Ms.Yukimura: And it came out of an analysis that PV power is the best way to spend our energy money? Mr. Sato: In-house what we did was we looked at the alternate potentials. We looked at wind and that site is not feasible in terms of... April 19, 2012 CIP budget(cont'd)p.127 Ms.Yukimura: The goal we are trying to reach here is and maybe you can tell us... but what the objective was to reduce the County's energy bill or energy usage — that was our goal and the conclusion is that this PV project is the low hanging fruit or the best place to put that money. Mr. Sato: I am not sure I would describe it as the low hanging fruit, this facility, we feel that PV is the most effective at this facility because of its size and because of its day time low. Ms.Yukimura: Okay, thank you. Mr. Bynum: If this happens, the carport is existing parking—cover existing parking? Mr. Sato: Yes. It is part of the parking lot and we would just cover eighty-two spaces and over that would be the PV system. Mr. Bynum: Got you. This bill is so important because if we lose those tax credits, this project is dead. Mr. Sato: No. Mr. Bynum: No? Mr. Sato: Okay, there are two (2) things — two methodologies that we are talking about. One is to design, build, and to pay everything ourselves but because we are in negotiations and we can see the potential of our power purchase agreement, we would like to explore that possibility because then we do not have to necessarily spend our own money. Mr. Bynum: At all? Mr. Sato: Yes. Mr. Bynum: Got you. Mr. Sato: Well... we would need some of it — there is an environmental assessment that needs to be done. Mr. Bynum: Right. Mr. Sato: But it would possibly free up some of this for other uses. Mr. Bynum: Got you. Mr. Sato: But then if... that saying if the Legislature passes that anti PPA bill then our hands are tied and we would move forward on this design bill concept. Mr. Bynum: Thank you for that clarification. Ms.Yukimura: So the selling of power is part of this Police Station Project? April 19, 2012 CIP budget (cont'd)p.128 Mr. Sato: Sell of power? It would be grid connected, so any excess would go to KIUC at whatever that current price would be. Ms.Yukimura: But it would be sold only if you have satisfying all your power needs right? Mr. Sato: Yes, we are not over designing this system so there would be times say probably on the weekends when only the Police would be working and EOC and Prosecutor's would be not working, at that point in a really good sunny day, the system might produce more than the facility would use but not by very much. Mr. Bynum: Or on weekend? Mr. Sato: Yes, on the weekends, that is what I am talking about. Ms.Yukimura: But it is enough to make it forth to do a power purchase agreement? Mr. Sato: The power purchase agreement would also not over design, we are not here... it does not make sense to produce power to sell to the grid because we are not getting retail. Ms.Yukimura: Right. Mr. Sato: We want to satisfy our own needs and offset the roughly forty cents per kilowatt hour. Ms.Yukimura: Right. Mr. Sato: Versus right now we might end up with ten to twenty cents. Ms.Yukimura: In the ten year... it is a ten year payback, how long is the life of the system? Mr. Sato: PV systems last a good twenty-five years. Ms.Yukimura: Okay, that sounds good. Thank you. Chair Furfaro: Are there more questions for the energy support team? Glenn, if not, thank you very much for your report and we are going into recess until tomorrow morning at 8:30. The budget review was recessed at 7:19 p.m. April 20, 2012 Prosecuting Attorney pg.1 The departmental budget reviews reconvened on April 20, 2012 at 8:45 a.m., and proceeded as follows: Excused: Council Chair Furfaro (8:45 a.m. to 1:39 p.m.) PROSECUTING ATTORNEY: Mr. Rapozo: Budget session called back to order and for the record Chair Furfaro is excused for the morning session and hopefully will be back later in the afternoon. Councilmembers Kuali`i and Yukimura are in the building and they will be here shortly. First up today is the Prosecutor's Office. It is 8:45 a.m. and we have a two-hour session and just want to let the Councilmembers know that the Office of the Prosecuting Attorney has a commitment at 11:00 a.m., so we will need to try to get whatever we can in this block of time today. And then I believe Elderly Affairs comes up at 11:00 a.m. So after our caption break we will continue with Elderly Affairs. Councilmember Yukimura is now in the room. Prosecutor, you may begin your presentation. SHAYLENE ISERI-CARVALHO, PROSECUTING ATTORNEY: Good morning, Shaylene Iseri-Carvalho, Prosecuting Attorneys along with First Deputy Prosecuting Attorney Jake Delaplane. JAKE DELAPLANE, FIRST DEPUTY PROSECUTING ATTORNEY: Good morning Members of the Council, First Deputy Prosecuting Attorney, Jake Delaplane. I am going to go through our budget presentation today by PowerPoint; I have it up on the screen. Each of you should have a packet with a note typed slide and also our budget narrative. So I apologize for the typo there on the main screen. So today's presentation we are going to go over the mission and objectives of the OPA, our successes and achievements over the past year, challenges, and our vision for 2013. As a lot of you know, the mission of the Office of the Prosecuting Attorney is to strive to promote the fair and impartial and expeditious pursuit of justice, partner with law enforcement to ensure the safety of our neighborhoods, zealously protect the rights of victims and actively engage the community in awareness and crime prevention efforts. And so everything that we talk about today is going to relate to one of these areas. And as you will see throughout the presentation, we have made some great strides over the past year and we have some very ambitious plans for the coming Fiscal Year. The first set of, I guess, achievements and successes I want to talk about deal with our felony case statistics and our caseload. And what I am showing here is a chart that illustrates our felony caseload over the past three (3) Fiscal Years. So from'08 all the way up to Fiscal Year 10-11. And as you can see, each year we have had a significant climb, and actually if you took this graph back a few more years, it has been a steady climb in felony case statistics over the past, I believe, five to seven (5 to 7) years. So we have seen very significant increases from year-to-year, from '09 to '10, we saw an increase of nineteen percent (19%) from that 1,636 number, up to 1,954. All of this data comes from the Judiciary 2011 Annual Report, and that is actually available on-line at the Judiciary's website. They also have prior years' statistical information as well, so if you have questions about whatever the statistics wereback in 2008, they have that information readily available. Our district court criminal case statistics, this again from 2008 all the way to the '10-11 year. You can definitely see a fairly sharp increase and this has been fairly typical of our district court April 20, 2012 Prosecuting Attorney pg.2 criminal cases. Now, when we talk about District Court Criminal cases, that is not including traffic, so these are not traffic citations that are included in these numbers. These are just criminal cases, things like harassment. There would be driving without a license type of cases that are included in there, but we are not talking about simple decriminal infractions that we do not normally handle, unless there is a demand for it. The increase from last year to this year is 20%, and again all of the percentages I am giving today are just a comparison with last Fiscal Year to the '10-11 Fiscal Year. So we saw the increase of 20% and again, I believe we were at 19% on felonies and then right at 20% on our District Court Criminal. So we are continuing to see an increase. The increase is not quite as high as it was last year. I believe we had in the 40 and 30% increases last year. It is beginning to steady but nonetheless it is increasing and we are seeing on a broader scale that the actual types of cases that we are getting tend to be more severe. So that has been a trend that started with the economic downturn in 2008 and has continued until now. Not only are we seeing an increase in the actual numbers themselves, but the seriousness of crimes, murders, robberies and attempted murders, and that sort of thing; it is definitely skyrocketing and is a challenge that we keep seeing every year. Ms. Iseri-Carvalho: Just to add, I know we do not have it on the screen the District Court Traffic case statistics, but those are actually where the most volume of work is being done, and we have approximately 20,000 cases, traffic cases, that are not representative in any of these charts. Mr. Delaplane: Right. And I apologize for leaving that out. Here we have our Juvenile case statistics. This slide here, we had a decrease of 7% from '09-'10 to '10-'11, but if you went back one (1) year to '07-'08, the difference between '07-'08 and '08-'09, there was 142% increase there during that year. So we have seen a significant climb at least from '07-'08 up to this 4,000 level.As you can see '08-'09, '09-'10,'10-'11, it has been hovering right around the 4,000 range, give or take. Again, in our actual case analysis of our Juvenile crimes, we are seeing juveniles engage in more serious types of offenses, we are seeing more felony type of offenses be commited by juveniles, and a lot of this can be related to prescription drugs. We have seen a lot of juveniles start getting in both using prescription drugs and committing property offenses like burglaries and robberies and those types of things, where they are after those prescription drugs not only to use them, but to sell them; they do command a fairly high price in the drug market. So although we saw a decrease of 7%, we are still seeing those very serious types of cases come in with our juveniles. This is a little bit different chart and I believe we showed this at our January presentation in response to a Council inquiry, but it is basically the open, closed, and pending cases in the Circuit Court, and I used this to calculate what our efficiency improvements were. So from '09-'10 to '10-'11 we were 47% more efficient in bringing cases to a close, meaning bringing them to adjudication either through plea offers, trials, or however that process went about. Our Circuit Court attorneys have done a fantastic job, and again, I think it is important to look, you see we had more cases opened, a significant number of cases that were opened, actually initiated during the last Fiscal Year, but as you can see we kept right up and actually did better as far as the percentage of cases that we were closing, even given the increased caseload. So our attorneys have done a fantastic job with that, and I think an increase of 47% in efficiency is definitely applaudable and speaks to the experience and quality of our Deputy Prosecuting Attorneys. Again in District Court, we had a 26% increase in efficiency and closed cases. So again, this is excluding traffic as I talked about earlier, this is relating just to the District Court criminal cases that we saw. Mr. Rapozo: Jake, I am sorry, can you remove that... April 20, 2012 Prosecuting Attorney pg.3 Mr. Delaplane: Those are the raw numbers and actually in the slide presentation, I should not get so fancy with my PowerPoint. So the increase of 26%, again we have a great staff of Deputy Prosecutors, some of them are fairly new and have been hired on over the past year, but we have seen great quality work out of them. I think the numbers speak forthemselves as far as what their abilities are and how they are handling things. Our total caseload, I kept this slide, this is from a prior presentation that we did, but as you can see over the years, especially since 2006-2007, you can see how our caseloads have increased. It is fairly dramatic and we do not expect that to wane anytime soon. Even between 2009-2010 we had an increase from 22,700 up to 26,599 in 2010-2011. Again, looking at sort of preliminary what our numbers look like for this year we are expecting another increase, whether it is as significant or not, I am not sure at this point. We will know once the Fiscal Year ends. But it is definitely on the rise, and again, not just in sheer case numbers, but the type and severity of the crime has increased and continues to increase every year for the past six (6)years. I will not go over this, this was a slide that was left in, just showing that with our furlough money that we got back from the Council in order to bounce back from the furloughs. We had a 73% decrease in the amount of cases that were pending review. So that means cases that were sitting in the office, pending screening, awaiting charging, and we have kept that up to date. So our numbers have stayed about the same as far as numbers pending review. I believe we are right around this 160 mark as of today, cases that are awaiting charging in our office. So now, I want to talk about our actual case statistics and how we are doing on our cases as far asconviction rates and as you will see, our Prosecutors have maintained just absolutely phenomenal conviction rates in each of these arenas. So I am going to start with property crimes and those are your burglaries, your thefts, credit card fraud, forgeries, and those things. We had 71% pled guilty and again this 29% figure that were dismissed without prejudice. Those are not included in the calculation, again, because you run the risk of double counting and this is the format that the Attorney General's Office has us use for our case statistics. So dismissed without prejudice for those of you watching at home means a case that is dismissed, but can be brought back and often is brought back by the Office of the Prosecuting Attorney for a number of procedural reasons whether it is dismissed because of new charges that are discovered, or dismissed so that we can proceed another way procedurally, such as taking the case to grand jury and initiating it through information charging. There is a quite a number of things that can lead to that. So some of those cases that were actually dismissed without prejudice may also be counted down here in the "pled guilty" column of 71%. So again, 100% conviction rate, there were no acquittals, there were no dismisses with prejudice, and our Property Crimes Unit has been doing a great job. It is one of our heaviest volume felony units that we have in our office. Our methamphetamine statistics. These are felony drug cases involving methamphetamine. We had 77% plead guilty, we had 3% by trial, and we did have 3% acquitted at trial. None dismissed with prejudice and 17% that were dismissed without prejudice, so that yielded a 97% conviction rate. Our Second Deputy Prosecutor Sam Jajich, is our Drug Crimes Prosecutor. The next slide will deal with other drug crimes which include the prescription drug crimes. But he has done a phenomenal job with these cases. Often times these cases tend to drag out for quite a while. We see a lot of defense attorneys that ask for continuance after continuance and we see these cases sometimes extend over years at a time. But Sam has done an amazing job keeping up with them and making sure that those that are dealing drugs in our community, especially those dealing drugs to our kids are held accountable. Our other drug crime statistics, like I said, this is going to include your prescription drug crimes, your heroin, your steroids. We have had a few of those cases come through recently and cocaine is another one. Basically 87% plead guilty, one of our highest, actually, percentages of people April 20, 2012 Prosecuting Attorney pg.4 that are just pleading guilty to the cases and then dismissed without prejudice, 13%. Again, conviction rate of 100% no acquittals, no dismissals with prejudice. Our career criminal statistics, John Murphy, one of our most experienced Deputy Prosecutors handles these types of cases and these cases typically involve the people that we see over, and over, and over again come through the court system. So the way that we classify "career criminals," is a little bit different than some of the other islands. When we class classify "career criminals," we are talking about people that are currently on probation or have a very recent conviction on a felony case and have since re-offended. So when you talk about in the grand scheme of things the type of cases that we handle, these represent the worst of the worst; the people that tends to be the most problem in our community. So we had 79% of those plead guilty, 4% guilty by trial, no acquittals, and no dismissals with prejudice, and again 17% figure on dismissed without prejudice, yielding 100% conviction rate. I believe to-date that is our best conviction rate we have achieved in the career criminal cases. Like I mention with the meth and drug cases, because these criminals have so much at stake in these trials, often they are facing mandatory minimum sentences, so that means that if they are convicted, they will be serving a set amount of time in prison. These are our highly contentious cases and so they do have the potential to drag out and to go on for quite a long time. But again, John Murphy has done a phone phenomenal job in processing these cases efficiently and making sure that those who re-offend repeatedly time after time, are held accountable and serve the kind of time that they deserve for the crimes that they commit. Sexual assault statistics, these are going to be our felony sex assaults, these include the sex assaults against children as well as adults. We had 92% plead guilty, no trials, actually 1% acquited by trial, and we had 7% dismissed without prejudice. So again, sexual assault as a lot of you know, especially those following the judicial system and watching the more high-profile cases, these are again, actually that should beslightly adjusted with the 1% acquittal, it should be at 99%. These cases are again highly litigated. Because the penalties for sexual assault are so high, plus the registration requirements are fairly stringent, so those that are convicted of sex offenses have to go through rigorous sex registration requirements. We will talk about that later as it relates to a joint project between the Office of the Prosecuting Attorney and the Kaua`i Police Department. But again, Lisa Arin, is our Deputy Prosecutor assigned to these and she is very experienced in handling these type of cases. Shaylene also is probably one of the most successful prosecutors we have ever had on Kaua`i so far as prosecuting sexual assaults. This conviction rate here, it is at 99%. If you look back you know, even just as short as five (5) years ago, those conviction rates were down in the 60% range and even lower on sexual assaults. So with an increased focus on training and an increased focus on working with KPD, and advising them throughout the course of their investigation, we have been able to really increase this conviction rate and get it to the type of area and the type of number that these cases really deserve.Again, these are some of the most heinous crimes we deal with, especially the sex crimes against children. So we really put a lot of focus on making sure these cases are processed through very carefully and that we prosecutoe all of these offenders to the absolute best of our ability. Domestic violence cases in 2011, we had 88% plead guilty, 4% guilty by trial, 1% acquittal, and 0% dismissed without prejudice, and 7% dismissed with prejudice, yielding a 98% conviction rate. So again, domestic violence cases are often it is a he said/she said type of situation. You may only have one witness at the home saying that I was abused and this is what happened. So these are again very tough cases to handle and we had Becky Voelk at one time, who is now felony property crimes attorney, handling these cases and now we have one of our newer attorneys, Gary Nelson handling these. Again, they work very closely, not only with our District Court and Family Court staff, but also with our staff that handles the felony sexual assaults as well. As we see a lot of these cases are interrelated and a lot of times when you have domestic violence and domestic abuse going on in thehome, ou have other issues, including sexual assault, and including sexual assault against Y g children in the home. So all of our prosecutors work together, especially these two areas, our April 20, 2012 Prosecuting Attorney pg.5 domestic violence and sexual assault prosecutors work together to ensure we have a cohesive and sensible approach to each of these cases. Our victim services for 2010-2011, we had three (3)victim-witness counselors, one (1)victim- witness clerk from July 1, 2010 to June 30, 2011. We have a total of 714 total victims served, 337 of those were involved in crimes against persons. We had 318 that involved victims of property crimes andthen we had a 59 figure that fell in to actually both of those categories. Broken down by services that were provided, 706 for education and information, 671 for advocacy, 565 for counseling, 300 case preparation, 139 crime victim compensation, 167 court accompanyment, 32 referrals, 19 for transportation, 3 outreach, and we did not have any shelter referrals last year. As we have presented this to Council, I think it is important to note though as far as how our operations are conducted and it relates to victim services as well, but in a lot of jurisdictions they have what is called "horizontal prosecution." What that means is that you have deputy prosecuting attorneys that are assigned to courtrooms. For example, you may have 2 felony courtrooms and you may have 2 to 3 deputies assigned to each courtroom. So that means whatever case comes through that particular courtoom, that deputy will be handling without any regard to the type of case. Often times the horizontal prosecution model, the way cases are divided amongst attorneys are divided through an alphabetical system. So if you have three (3) attorneys assigned to the courtroom, one may take a-1 and another one a different chunk of the alphabet, and they basically split it up in court and handle it. That is one method for processing cases through and it actually can be efficient if implemented, but what you lose is the direct contact with victims and continuity from start to finish. For just as a brief overview of how the court system often works, we have two (2) tiers in our court. So the first tier is District Court; that is the lower level court. They have original jurisdiction, your lower level type of offenses, traffic offenses, anything that could be punished up to one (1) year in jail and up to a $2,000 fine. Also, all felony cases that are not brought by way of grand jury or felony information charging are initiated in the District Court. And so that means that even a murder case if it is not brought by way of grand jury or not brought by way of felony information charging, it is brought through the District Court through filing a complaint. So what you lose in these types of cases, if you had a horizontal prosecution model, you would have one (1) set of attorneys that are handling the case in District Court at intake when the case comes in, and then a completely different set of attorneys once that case gets waived over to Circuit Court. So you lose a lot of continuity and it is also very confusing for victims and witnesss who have to testify multiple times at court hearings. So what we engage in at the Office of the Prosecuting Attorney, and again Shay brought this in when she was elected in 2008, is the vertical prosecution model; Prosecutors are assigned to cases and not court. So if you have a murder case or sexual assault case that comes into the office, it is handled by the same Deputy Prosecutor all the way from intake, so the moment that that comes in on a 48-hour packet, or the moment that the police come over and say hey we have a case that will be referred to your office for charging. You have the same prosecutor working on that case from start to finish. So they are contacting witnesses, they are highly engaged in the process all the way through.How that relates to victim services is that it creates this continuity and close relationship with the victimsand witnesss in each case. Soinstead of parsing out all the victim-witness contact to employees, whether that is our Victim Witness Counselors, or some of our other staff that have contact with our victims and witnesses, instead of just parsing that out and farming that out to those individuals to be the only points of contact, now you have the actual attorney who is in court, handling the case, arguing the motions, and appearing on the case in front of the judge and representing the State, as well as the victims in the case. As you can see, I think alot of our victims and witnesses have given us quite a bit of good feedback as far as this model being the best and sensable approach to handling criminal cases. I can tell you that when victims and witnesses call our office, and we field over 100 calls a day, the most requested person to talk to is not our Victim-Witness Counselors or other legal staff, it is the attorney handling the case. And so we have our system set up in a way that our attorneys do answer calls and take calls from our victims and witnesses and they provide services as well. So we are taking a multi-faceted approach to contacting victims, contacting witnesses, and providing April 20, 2012 Prosecuting Attorney pg.6 services to them both in the avenues of referrals to other agencies, but also keeping them updated on what is expected of them as a victim or witness, what their rights are, or what sort of recourse they may have as far as crime victim compensation funds fees or any of those other things that our victims and witness are entitled to. We have our whole team taking the approach to providing those services on a comprehensive level. So again, we have had avery significant increase in efficiency in processing our cases over the past year and we have done that despite the climbing caseloads and also despite the climbing, the heightened severity of the cases we are seeing. We have also engaged in an electronic file storage project; we worked with the IT Departmnet. That is scheduled to begin fairly shortly. We have identified the vendor and I believe the notice of award went out. But just as Council Services did their scanning operation, we are also going to be scanning I believe our 3 million documents that we have that are currently in paper form. Because of the nature of the types of cases that we deal with, especially our A felonies, our murders, our A felony sexual assault cases, we are required by law to keep those cases on file forever. So we do not ever get rid of those cases. Sometimes we see those things come back, 10, 15, 20 years later if there is some kind of appellate issue that comes back. So we are required to keep everything that we have. As you could over time that builds up and that is why we have over 3 million pieces of papers that are stored in boxes, file cabinets, attorneys' offices, just allover the place. So we are going to be scanning those in to an electronic data system and they will also be tagged, too, which I think has been an issue with some of the other County agencies that were involved in the electronic file storage project. There were some issues with not tagging the information, so that while you may have engaged in the scanning, an electronic copy saved, it is very difficult to find anything. So we have devised our system that so we have a logical approach to the project, so that any of our files that we maintain are going to be readily available, readily searchable, so we can pull them up at a moment's notice. We have also been working on our new case management system that again is another project that should be scheduled to close fairly shortly. The Police Department, as many of you may know, have also been engaged in getting a new records management system, which I believe is scheduled to go on-line this summer. And what we have been working with is making sure that we are going to have interconnectivity with our office's information system, the Police Department's information system, as well as the Statewide information systems that we often times have to input or pull data from. So those would be the Juvenile Justice information systems (or JJIS), the CJIS system, and also other systems that contain the sex offender registry information from the Attorney General's Office. So our focus for case management has been interconnectivity and information sharing not just on the island, but statewide and also on a national level, as much as we can. So we definitely share in the Statewide vision of this criminal justice interconnectivity. We also, since we are required, even when we do our electronic file storage project and scaneach of those 3 million pages into our electronic database, there are still going to be things that we have to have in paper form. So that need for storage is not going to disappear. So what we did this year is that we had a project for centralized mechanical filestorage. So instead of having files all throughout the office, in file cabinets and attorney offices, all of that, we are taking all the files and putting them in one place on a mechanical rolling file storage system like you may see at the doctor's office or at some of our libraries, I believe have those as well. So that all of our files are in one place and that we, with our increasing volumes, you know, with nearly 27,000 cases, just this past year, we have to stay organized and make sure that we keep all of our files in a centralized location. Our P.O.H.A.K.U. Project we launched it this past year in 2011. I believe it was in August of 2011 when we made our first referrals to the P.O.H.A.K.U. program; it has been a resounding success. I know we have given a presentation as part of our last year's budget presentation to the Council, but this is a program that focuses on restorative justice, personal responsibility, and community service. So the participants that participate in P.O.H.A.K.U. are typically first-time, non-violent, low-level offenders, meaning people with cases in District Court that again based on April 20, 2012 Prosecuting Attorney pg.7 their prior record qualify for diversion. This is essentially a second-chance program that gives people the opportunity who just made a mistake, who are first-time offenders, who were completely cooperative with law enforcement, to participate in a program where they learn about personal responsibility and also traditional hawaiian values that are incorporated into that. So there is a class that they attend, and they also engage in community service. But like we have said many times before, this is not going to be your typical type of community service where just going to go out and pull weeds on the side of the road. The purpose of the P.O.H.A.K.U. Program is not to create professional weed pullers, we are out there trying to create productive citizens and contribute and become part of a community in a meaningful way, and become a part of the community. What we have seen with the participants that we have had over the past year, we have had 49 complete so far, and we have a few more coming up on the horizon; they are coming in everyday. But, we have seen overwhelming positive response from our participants. So I wanted to share with the Council today with some actual quotes from those participants that they fill out as part of their evaluation of the program once they complete it. They do a complete survey regarding the course and they are asked to rate different aspects of the courses on a 1-4 scale, 1 being poor and 4 being outstanding. Overwhelming what we are seeing with our reviews that come in is that our participants are rating the class as outstanding. I think that is particularly important, especially when you consider what is involved in the class. This is typically a Saturday class, and it is all-day, an 8-hourclass. So when you have people participating in a program 8 hours on a Saturday, and they are saying this class is outstanding, I think that really shows something and think that really speaks to the benefit and the success of this program. So the first quote, "I have learned a lot about making the right decisions and it was an awesome day." "I'm honored to get a second chance to clear my name. I have learned that we can change with positive behavior and admitting what we do wrong can set us free." "A wonderful crash course to help people with the tools to stay out of the system and receive a second chance." "I appreciate the second chance I was given and also the people who helped people like us who just need a little help or understanding to change our life." Those are four (4) quotes I wanted to share with you. Before I move on, there are negative reviews, but I can tell you that the negative reviews that we received is, "the room was too cold," "I heard too many cars going by outside," it is things like that, but overwhelming the participants involved in the program have expressed extreme gratitude to not only the instructors in the program, but also to the Office of the Prosecuting Attorney for allowing this second chance, because I think throughout this 8-hour course, where they are learning not only about personal responsibility, but also hawaiian values and how theyc an implement those in their daily lives, they are finding that this is something that is extremely helpful and gives them the impetus for change that maybe they were looking for. It definitely creates a situation where we are producing more productive, quality citizens, and instead of slapping everyone that comes through the system on the wrist, we are actually in there making positive life changes, and helping people to move on with their lives in a productive way. Another success and achievement of our office over the past year, we conducted a series of Senior Fraud Presentations. We actually still have one more Senior Fraud Presenation to go scheduled in May. For the past several years we have seen, especially with the advent of technology assisted crimes, we have seen our crimes against the elderly skyrocket, not just on an islandwide level, but a nationwide level. Nationwide, the fraud against the elderly was a $4 billion annual business; that is only the fraud that we know about. The numbers are probably somewhere closer in the $20 billion range when you talk about the actual frauds that are going on out there, and these are operations that sometimes stretch out over a six month, one and two-year periods where you have organized organizations that are coming in and defrauding our citizens; sending them things through the mail saying they have won a $50,000.00 lottery, or an all expense paid trip to Las Vegas, and all they have to do is pay the taxes on their winnings. They ask for $200.00 to $300.00 a time, and what we have seen because of a lack ofeducation and knowledge out there in our community, we have had a lot of senior citizens that were victims of these types of crimes. I can tell you every single April 20, 2012 Prosecuting Attorney pg.8 Senior Fraud Presentation that we did across the island, we had at least one (1) or two (2) seniors come up to us after the presentation was given and pull us to the side and say, you know I did not want to say it in front of everyone, but I was a victim of this and yeah, I sent a check for $300.00, or had a family member take advantage of me and they stole, we heard figures as high as $18,000.00, $50,000.00, $70,000.00. A lot of these crimes unfortunately go unreported and often times they are perpetrated by family members, and so we elderly that are concerned with reporting family members when a crime takes place because they are worried about the consequences, he or she is a good boy or girl. They are not really a criminal, I do not want to report them. That is what we hear over and over again and so we talked to the seniors about the P.O.H.A.K.U. Program, about the alternatives we have, our diversion-type programs that we have available to deal with these types of cases, especially if they are small time cases where a family member is stealing a check or stealing small amounts of money from their grandparents who live in the home. So they are told about those things and they are also told how to identify and to spot fraud and to know when they are being taken advantage of. They are given the resources to call, so all the numbers for the Agency on Elderly Affairs, the Kaua`i Police Department, Better Business Bureau, all of these different agencies that work together on a regular basis to ensure the safety of our senior citizens. Again, they are often targeted because criminals see them as more trusting and vulnerable, they often live alone, so that they are very easy targets for home-invasions; that is something that we have seen a sharp increase in over the past two (2)years, with the advent of prescription drug crimes,just like we saw the nature and severity of crimes raised among our juvenile offenders. We also saw our crimes against the elderly skyrocket as well. It is this almost rabid want for prescription drugs that has driven this, and often times senior citizens have prescription drugs because they may have be ailing in their old age and they have health problems and may have had surgeries, where they have pain medication in the home.And so, part of our presentation dealt not only with fraud, but also with how to protect yourself against prescription drug crimes, too. So we gave them tips like making sure that you are prescription drugs are not left by a window in the home, so those out there looking in through windows and looking to break into homes do not see immediately that you have prescription drugs inside your home. Also, when you are carrying prescription drugs in yourbags, a lot of our seniors carry their medication with them, because they have to take it throughout the day. We make sure that they know that if Y g Y• Y you are going to keep it in your bag, keep it in an inconspicuous place, zipped up, so somebody will not see that and will not see it as an opportunity to mug you or snatch your purse. We have seen a couple of those cases come through, where we have had our senior citizens targeted, because we find out later that the perpetrator saw an amber bottle sticking out of the elderly person's bag as they walked along through the coastal path or one of our towns. So again, this is the type of information again, we have had overwhelming positive feedback on this and we intend on continuing this educational series for our seniors to ensure that they can spot fraud what it happens, and also that they can do everything in their power to protect themselves not only from fraud, but also from these crimes that have the potential to be very dangerous. So again, we give them real world examples, if you added up just in our conversations with fraud that was reported and sometimes it was fraud that happened years ago, but you are talking about hundreds of thousands of dollars just on Kauai alone that has been defrauded from our elderly.Again, a very serious set of cases that we intend on focusing on in the coming years. Another one of our successes and achievements is our convicted sex offender project. We had a fairly low sex offender compliance rate on our island and what we found is that quite a number of offenders that were having contact in the system when we did our case research, especially when he were looking when it comes times for sentencing, we noticed some of these offenders had sex crimes in their criminal histories; they may be from the 1980's or 1990's, but they are still considered convicted sex offenders and are subject to the convicted sex offender registration laws. So in conjunction with the Kauai Police Department, our office and KPD put together a three-month operation, where we targeted convicted sex-offenders, KPD investigated, we advised them on the legalities and types of things they should be charged with once the investigations were complete. We April 20, 2012 Prosecuting Attorney pg.9 worked together on this and now Deputy Chief Michael Contrades was an essential part of this.Also, Officer A.J. Morita was one of the primary individuals over at KPD that worked on these cases.A lot of times I think when you talk about convicted sex-offender registration type crimes, a lot of people were under the impression of that is an easy just paper type of case. What we mean by that is they either signed the form and complied or they did not. What we saw and what we talked to KPD about is that these cases are extremely involved cases and highly complex that can often result in numerous, numerous felony accounts. The twenty-five (25) offenders that we targeted did result in quite a number of felony counts for each time that each individual sex-offender did not comply with the proper registration law. So again, part of what we did was not only identifying the type of evidence that the Kaua`i Police Department would need in order to sustain a conviction in order for the State to be able to prove beyond a reasonable doubt that these sex-offenders did, in fact, violate the law, but also how to go about charging them and the types of charging language that should be included in the initial charging document. Because of that, the very complex nature of these offenses, we had to work closely in order to make this project a success, and it was a success, it was an overwhelming success. So all of the offenders that we targeted in that I believe have been charged and are currently being prosecuted. We even had a few that havepled guilty initially, mainly because the evidence against them was so overwhelming they decided to enter a plea of guilty rather than taking a chance and trying to fight the charges at trial. In addition to the project, we also worked with KPD to revise our sex-offender tracking policies, and also to ensure that we do not run into the same problems with non-compliance with our sex-offenders. We are making sure that we know at all times that we know where these offenders are in our community and ensuring that they are complying with the laws that are in place and that are there to protect everybody and there to give the community notice of where these offenders are and what they are up to in our community. Another one of our successes and achievements and this is actually the first official announcement of this today, there will be a press release on this next week as part of National Crime Victims Rights Week, but the Office of the Prosecuting Attorney established the first-ever Prosecutor/Police Department Collaborative Unit, that is a Cold Case Murder Unit. I will let Shay talk about this a little bit as far as the process that we went through in obtaining this and also in designing the unit. Ms. Iseri-Carvalho: Yes, and so the last application we came forward with the Council saying that we wanted permission to apply for this Cold Case Unit. It really is one of the first of it's kind where it is Prosecutorial initiated. There have been many concerns that have been raised at our office, with the Police Department, as well as with the community, with a number of outstanding murder homicide investigations. I can tell you having worked closely with the Kaua`i Police Department, that none of these cases have really gone cold. They have never burned out. We have been constantly working on these cases, whether it be with consultation with attorneys, sending out dna evidence, re-interviewing witnesses, even some far back as twenty (20) years ago. We are looking at all of the evidence and the preservation of the evidence, or having other consultants that specialize in certain types of forensic evidence go through and look at the evidence that we have. We had applied and we were, the JAG funding that came from the Federal government, there was a pot of $1.4 million. There were forty-five (45) applicants that applied for funding. We applied for two (2), one was for our drug band and one was for this newly created Cold Case Unit. Both of those grants were awarded to our office in the amounts that we had requested, which was quite phenomenal in light of highly competitive nature of the parties in securing funds because grant funds had really dwindled to almost a minimum. Part of this law enforcement coalition group that decides on who should get the Federal funding, is made up of Federal, State, and County officials. So you have the U.S. Attorney's Office involved, you also have the Sheriffs, the Department of Health, the Department of Education. On the State level, all of the Police Departments, as well as the County Prosecuting Attorney's office; basically all of your organizations across the State, County, and Federal units applying for this competitive $1.4 million. So we are quite fortunate that we were able to get 10% of that money just April 20, 2012 Prosecuting Attorney pg.10 on this grant and an additional, like I said on our drug grant. It is one of the first of its kind that is established. The grant period runs from April 1 for a whole year. It allows the Prosecutor's Office to work collaboratively with the agencies on a County level, State level, and Federal level, involving the FBI, involving a lot of the forensic testing labs across the Country, and as well as a lot of the consultants. There is a lot of, we just returned from a homicide training on the Mainland where there were a congregation of over 500 homicide detectives that specialize in these types of cases. We had the opportunity to discuss confidentially all of the cases that were pending. They had some high- profile cases that were presented at this conference, but also it gave us, small Kaua`i, an opportunity to have the ear of over 500 homicide detectives, especially we built close connections with the L.A. Police Department who had worked with our Attorney General's Office.We were able to connect with them in various discussions on our cases because they had of course, one of the L.A.P.D., when we asked him how many homicide, he specialized totally in homicides, when we asked him, he said he was there for thirty (30)years, how many cases does he get on any given week; he said well, I can tell you we get homicide cases 5-6 a day in L.A.. And so having that ability to provide information regarding the cases that we were working on and getting that advice was very instrumental in leading us to more follow-up investigations, which we are currently undergoing. But it does allow us the opportunity to obtain funding in this specialized area where Kaua`i unfortunately has had much...one of course is too much, but to have more than one is definitely an area that we must focus on, which is the primary focus of the Police Department, as well as the Prosecutor's Office in trying to solve these outstanding...again I believe it's a misnomer when we say "cold case," because these cases have been warm hot ever since they have started. The flame as it indicates has never burned- out on these and there are detectives that have not been able to sleep at night because they have worked on these cases for years, and years, and years, and fortunately, with the advent of highly technical and complex forensic opportunities that we have, we are positively optimistic in hoping that we may be able toget some finality, or justice, or closure to at least one or more of these cases. We are still in constant contact with the families of these homicide victims, and assuring them that we are continuing the investigations, and continuing the legal consultation with membersacross the Country, and with the sole result is in bringing justice for these families. Mr. Rapozo: Jake, I do not want to rush you, but we have limited time with you folks. I just asked Ricky as far as call-backs and we are not at that the stage where we can do call-backs, so if you could highlight the slides, as you go forward, I see you have quite a bit more, but we do want to have time for questions as well. Thank you. Mr. Delaplane: Sure. So now I want to move into the challenges that we are facing. The first challenge that I want to talk about briefly is the lack of legal representation. I know a lot of other Departments have brought this to the Council's attention, but what we have seen especially over the past year, is with the County Attorney's Office is that we have gotten in a lot of situations where it appears that the County Attorney's Office has consistently worked against the interest of the OPA. Being their client, that creates a significant hardship to our Department. We have had multiple instances where we believe the County Attorney's Office has failed to acknowledge clear conflicts of interest. This has created a fairly heavy burden on the Administration of the OPA. We get to a point where we are having to handle these civil type matters where we really should be having legal representation and legal guidance. But because of the conflicts of interests or the attacks that we are under from the County Attorney's Office, we have to handle those without representation. So it puts a significant burden on our Office, and I can tell you it is probably more of a burden for some of the offices where they do not have the luxury that, yes they are in a professional position, but we are also attorneys as well. We do have some understanding of these things, but...I am going to continue now. So as a result of these attacks and the failure to acknowledge these conflicts of interest, we are asking, and I know other Departments have asked as well, but we are asking for special counsel for all matters that deal with the OPA during Fiscal year 2013. We wanted to include that as part of our budget presentation because I know it does raise budgetary concerns as far as the Council concern in allocation of money for the coming year. , April 20, 2012 Prosecuting Attorney pg.11 As I have showed in the slides before, we had an increase in caseload about a 20%increase in both felony and misdemeanor cases. Again, we are continuing to see the continued raise in severity and frequency of crime. Time after time we have seen this every single year we have seen it increase, and along with the sheer number in increase, the cases are getting more serious. So whereas assaults used to be fights with fists at the beach park, now people are attacking eachother with machetes and guns; we had a recent shooting up in Kapahi where there were nearly 40 shots fired into a home. Those are not the types of cases we would normally see on a regular basis, but unfortunately we are seeing those types of cases come through every single month. So that is definitely a challenge facing our Office and figuring out how to deal effectively and efficiently with these serious types of cases that come through. I do want to go over this Rule 48 and the Buono decision fairly comprehensively here, because it is extremely important and I think it is important for everyone to understand that this does pose a significant, significant challenge to the Office of the Prosecuting Attorney in the coming year. So Buono is the name of the case, State vs. Buono, and it was a case that went to the Intermediate Court of Appeals, where they ruled that the 180-day trial requirement, that is what we commonly refer to as "Rule 48," cannot be waived due to mere court congestion. So it is not simply enough that the (inaudible; 56:09; 2nd mp3)... It is not simply going to be enough to continue a case because there are other matters set for trial. What this case says is that the Judges in a particular Circuit, in every Circuit, must take extraordinary steps to ensure that cases can go to trial within the 180-day period, if that is what the defendant is demanding. Whereas before, let us say in a felony type case, we have two (2) courtroom son Kaua`i that handle felony cases; Courtrooms 4 and 6, Judge Randal Valencaino and Judge Kathleen Watanabe. So what that meant is that in any time, you can only have two (2)jury trials that would go. So you may have multiple cases that are set for jury trial, but ultimately in the end on any given week, only two (2) can go to jury trial. What the Buono decision says is that the Judges must take extraordinary steps to ensure that cases can go to trial within the 180 days. So what they are being commanded to do if there cases that are set for trial all in the same week, instead of continuing the cases that are lower priority, the Circuit Court Judges are mandated to appoint a District Court Judge, so that is lower court judge, to come up and preside over a jury trial. What that means for our Office is potentially we could have double the number of cases going to jury trial any given week. As you can expect, preparing for a jury trial is a very involved process and if we have at any given time four (4) of our attorneys that are in trial mode that are not only preparing for a trial that will go in the coming weeks, we also lose four (4) attorneys in trial themselves. If it is a highly complex trial we may lose more than one (1) attorney per case, because we may have a first and second chair sitting on the case, depending on the level and severity of the offense. So we are now in a situation, where we have to have more attorneys that are trial-ready, ready to go on these jury trials and this also does not mean that the District Court trials, the lower level court trials are not going, too. So all the court operations do not stop. The likely scenario would be if the trial calendar is full in both Courtroom 6 and Courtroom 4 and they need to bring up one (1) or two (2) District Court Judges to preside over those trials, then Per Diem Judges will be brought in to cover the District Court Cases. So that means that all of these courtrooms will be firing at the same time and all of a sudden, whereas we used to have only one (1) courtroom on Kauai, we now have the potential to have six (6) going at one time. So it is definitely something that is going to affect office operations. We have seen it, because the decision has not been out very long, we have seen it on a limited level so far, but throughout pre-trial conferences and throughout our discussions with the court, it is something that is on the horizon, especially this summer, when we have quite a number of cases. And also, when we begin trying some of our felony cases, our murder or sexual assault cases that have the potential to last 6-8 weeks; it definitely presents a challenge. Pursuant to that challenge we are asking for four (4) new Deputy positions so that we can stand ready for that challenge when it inevitably comes. April 20, 2012 Prosecuting Attorney pg.12 One of the other things that we talked about at last year's budget presentation was also part of our presentation that we gave on the P.O.H.A.K.U. Program. It is this elimination of the community service. I know that we discussed this at Council last year during budget and it was something that we predicted. It appeared that the Judiciary was going to be eliminating community service; as of last year it had already been eliminated on Maui. Sure enough this year, in January 2012, the Judiciary on Kaua`i eliminated the community service program. So now there are no court referrals being made to community service from our cases. It has definitely affected our ability to deal properly with cases and also affected the community. The community is no longer receiving the benefits that they were previously getting for the services provided by individuals that were sentenced to community service. So it has reduced our ability to negotiate appropriate plea offers, and we are seeing a lot more cases going to trial because we are simply left without a middle ground when offering plea negotiations in these cases. We are not going to simply let people off and not be held accountable because there is no community service. So we are in sort of a bind with this. We are looking at ways to reduce the impact of this, of course the P.O.H.A.K.U. Program is one of those. We are also working with the Judiciary on coming up with other ways to divert cases and to engage in community service. Because again, I think all of us can agree that community service from our offenders is definitely an important part of not only the community and having non-profit organizations receive free services, but also for the offenders themselves to grow, to learn from their mistakes, and to move on with their lives and be productive citizens. The last, since we are running out of time, I want to briefly talk about another initiative that is coming up, and it is actually one of those top-down initiatives that has been mandated by the Hawai`i Supreme Court without consultation of employee unions or local County governments, but it affects us drastically. On June 18, 2012 the OPA Clerks will again be initiating cases in District Court through the JEFS and JIMS system. So what that is a web based system for cases initiation where clerks, previously this was done by Judiciary Clerk, but essentially Clerks go in to a computer system, and they enter a number of vital statistics on offenders and on cases that are being initiated in District Court. They choose from a series of drop-drown menus and menus that require them to input very complicated data in order to initiate cases in the District Court. This is in contrast to what was previously done with our District Court complaints where we simply filed a paper complaint. A paper complaint was filed through a paper template in our Office and then our Clerks walked it over to the Courthouse. Now, they are doing significant amounts of data entry that was previously done by the Judiciary. So what we have seen is our Legal Clerks, who typically I believe are around the SR-12 and SR-14 level designations, are now going to have to be doing the type of work that SR-17s and SR-18s in the Judiciary were doing without prior notice to the employee unions or to the County. So what we are going to see as of June 18th, there is going to be a significant amount of responsibility shifted from those Judiciary Clerks to the OPA staff, so our Legal Clerks...and again, that is without any sort of consultation from any of the other groups. What you will see is a dramatically increased workload. So they have to do all the same work that they did before, plus the additional entry into the JEFS and JIMS systems. Not only is it more work, but it is more highly complex work. So what they are going to be doing is having to go into a system that is not their system, it is not our system, and it is not even interconnected with our own case management system; We have been told it cannot be interconnected with our case management system. But, they are going to be entering this data into a very complicated process; it is going to necessitate double entry. So everything that they were going to enter before into our case management system, they are having to do that for the Judiciary as well.Another way to look at it is the Judiciary is getting some free labor from the Prosecuting Attorney's Offices, and that is going to drastically effect our operations and may lead to us having to come to Council and ask for additional positions for our Legal Clerks, and also, working with the Civil Service Commission in reallocating certain designations for our Legal Clerks in our Office. So that is going to be a significant hurdle. All of you, I am going to go ahead and end our PowerPoint at that point. Our specific requests are in the in the budget narrative as far as what we April 20, 2012 Prosecuting Attorney pg.13 are asking for this Fiscal Year. It is essentially asking for the positions needed to maintain current operations and efficiencies and also address the concerns and challenges that we mentioned today. So with that, I am going to go ahead and conclude our primary presentation of our budget and open it up for questions. Mr. Rapozo: Thank you, Jake and Shaylene. The County Attorney is asking for a very short recess before we take any questions. So let us take a five-minute recess. Five-minute recess for,Al. Is Al here?Five-minute recess. There being no objections, the budget hearing recessed at 10:50 a.m. The budget hearing reconvened at 11:04 a.m., and proceeded as follows: Mr. Rapozo: The budget session is called back to order. Can we get the lights back?After consultation with the County Attorney, both Al Castillo and Jennifer Winn, it was determined at this point any discussions regarding the P.O.H.A.K.U. Program will not be done on the floor at this point. We have an executive session scheduled for a week and a half. The County Attorney has advised myself that based on the representations in the presentation as far as representation by the Office of the Prosecuting Attorney, the County Attorney's Office will basically conflict out of representing the Office of the Prosecuting Attorney for the P.O.H.A.K.0 Program, until counsel can be appointed, but we will not have discussion on the P.O.H.A.K.U. Program.Yes? Ms.Yukimura: May I ask why the Prosecuting Attorney was allowed to present information on the P.O.H.A.K.U. Program? Mr. Rapozo: You can ask the County Attorney, if you want to. But we are not going to discuss that on the floor, I just said what I was advised by the County Attorney. Ms.Yukimura: I would like to ask questions of the County Attorney. Mr. Rapozo: We can do that at a later time. I want to get through this budget. Ms.Yukimura: This is about the budget, the P.O.H.A.K.U. Program is in the budget and I feel I should have the right to ask questions about it. Mr. Rapozo: We are not going to do it under the advice of the County Attorney. That is not my rule... Ms.Yukimura: So are we going to schedule subsequent budget hearings so that this is part of the discussion on the budget? Mr. Rapozo: The next discussion regarding P.O.H.A.K.U. will be at the executive session in a week and a half. Ms.Yukimura: And I am asking, if after the executive session...because I still would like to talk to the Attorney, please. Mr. Rapozo: Mr. Castillo. Ms.Yukimura: This is a budget hearing and I want to ask some questions about budget. April 20, 2012 Prosecuting Attorney pg.14 Mr. Rapozo: I am not going to have a legal debate here. Ms.Yukimura: I am sorry, we cannot proceed if I cannot ask the Attorney some questions about today's proceeding. Mr. Rapozo: I just called up Mr. Castillo, so you can ask your question, but I am not going to entertain a legal debate of why. It is his advice. Ms.Yukimura: I would like to ask questions of my Attorney, please. Mr. Rapozo: You have him right here. The rules are suspended. There being no objections, the rules were suspended. AL CASTILLO, JR., COUNTY ATTORNEY: Good morning, Councilmembers, Committee chair, and Mel Rapozo,Al Castillo, County Attorney. Go ahead. Ms.Yukimura: So I do not understand the basis of your ruling. Mr. Castillo: This is based on what transpired this morning regarding the comments made by the Office of the Prosecuting Attorney. In conjunction with that and specifically for the P.O.H.A.K.U. Program, which it does raise a conflict that I would say that it is prudent for the County Attorney's Office to declare a conflict. And on the legalities of that, I would be willing to go into executive session. Ms.Yukimura: Look, the thing that I want to ask questions based on public information. Mr. Castillo: I understand that. Ms.Yukimura: About a thing that is proposed in the Prosecutor's budget. I do not see how my rights can be curtailed on that. Whoever is representing whoever, I still should, I do not know what legal basis I would not be able to ask questions based on public information. Mr. Rapozo: Al, let me state the legal basis, because I am the Chair today and Mr. Furfaro will be back and you can raise that with the Chair. But as of this moment,Al, I take your advice and I agree with your advice and I know that some think I do not agree all the time but I agree with your advice today, that in fact a potential conflict has risen. Mr. Castillo: And to be safe, if you would like specifics and I do not think we should be discussing it any further. Mr. Rapozo: I agree. We have a scheduled executive session in a week and a half, if Councilmembers believe that it needs to be accelerated, when the Chair gets back from his doctor's appointment, he can do so at a Special Council Meeting sooner. But at this point, what my objective is to get through the budget, there are many issues through this budget; there are new positions, there are requests made that I would like to get through. I will schedule an additional 1 hour after lunch from 1:30 p.m. to 2:30 p.m. to accommodate any questions, but the more time we spend on this debate, we are taking away from budget questions.You want to respond? Mr. Castillo: Like you said earlier, we will have an executive session on this subject matter and this will be part of the discussion at that time. April 20, 2012 Prosecuting Attorney pg.15 Mr. Rapozo: Just let the record reflect, because I know themedia is here, I did not request for that legal advice; that was advice that came to me from the County Attorney's Office. Mr. Castillo: Because I am monitoring the discussion of what is going on, and we constantly monitor conflict of interest situations, I do not want to go any further because I do not want to be violating any of my clients'rights. Mr. Rapozo: That is appreciated. Ms.Yukimura: Who is your client in this instance? Mr. Castillo: Well, I represent the entire County and there are conflict situations where I determined that it is a prudent thing for me to declare that we have in a particular...in this situation, a conflict that I cannot overcome. Ms.Yukimura: Why would a conflict that you have stop the discussion about a public issue? Mr. Rapozo: Al, listen, he advised me, I control whether or not we discuss it on the floor. I am saying that the County Attorney has asked me not to discuss P.O.H.A.K.U. today. I know what you are saying, but I am saying that is not going to happen. Ms.Yukimura: Then I challenge the ruling of the Chair to not be able to ask questions of the attorney. Mr. Rapozo: You can challenge the rule when I make the rule. Right now we have the County Attorney up here. Is there any more questions for the County Attorney, go ahead, Mr. Bynum. Mr. Bynum: Good morning. Mr. Castillo: Good morning. Mr. Bynum: If we would have had the executive session when it was scheduled the ( two revious (2) weeks, would we be in a different situation? p Mr. Rapozo: That is speculative, I am going to be judge here, objection, that is speculative. Discuss the issue at hand today. Mr. Bynum: Can we allow the County Attorney to answer? Mr. Rapozo: He cannot answer that. I am curious, if you can answer that I will hire you when I go to Vegas. Mr. Castillo: I did not understand the question. I am sorry. Mr. Bynum: The executive session on these issues was scheduled two (2) weeks ago and it was scheduled this week. If we would have held those executive sessions, would we be in a different position now regarding this conflict? Mr. Castillo: No. April 20, 2012 Prosecuting Attorney pg.16 Mr. Bynum: Okay, then y, ten my second question is, are we in a conflict situation now because of the Prosecutor's allegation on the public record. Ms. Iseri-Carvalho: Objection. This is ridiculous. How dare that happen. Mr. Rapozo: Recess. There being no objections, the budget hearing recessed at 11:12 a.m. The budget hearing reconvened at 11:20 a.m., and proceeded as follows: Mr. Rapozo: This session is back in order. Any questions pertaining to Mr. Castillo? Mr. Kuali`i: Aloha, Prosecutor. Ms.Yukimura: I have a point of order before Mr. Kuali`i. Mr. Rapozo: What is the point? Ms. Yukimura: I received information yesterday that showed that moneys were transfered from Erin Wilson's position to the YWCA, and I think there is a potential conflict of interest on the part of Mr. Kuali`i, and until there is an opinion from the Board of Ethics, which is the designated board, I think there needs to be a recusal. Mr. Rapozo: I hear you. Mr. Kuali`i? Mr. Kuali`i: I did talk to the Attorney prior to sitting in on this session, and actually if you remember we dealt with this last year as well. Mr. Rapozo: This is déjà vu. Mr. Kuali`i: It did go before the Board of Ethics and they did receive the item at that time. I wrote a letter May 6th and the Board of Ethics had a hearing on June 17th and in that meeting by a 6-0 vote the item was received and put to rest. I rest assured this Council should know that in the budget decision-making process, if and when we consider any specific grant moneys that this County is approving from the County to the YWCA, even for programs that I am not involved with I am not the Executive Director of the YWCA and I do not manage the Board or programs, I do not set policy for any of the programs or effectuate decisions on where we go after grants or whatever. Mr. Rapozo: Mr. Kuali'i, I understand that. You have a copy of the Board of Ethics letter? Mr. Kuali`i: The Board of Ethics did not have a letter, they took action at their meeting, and I guess the clerk could print you out the report of what items they considered at that meeting, and that they received the item regarding a complaint prior. I do not know where the complaint came from. I think it was the newspaper. Mr. Rapozo: It was the newspaper. I remember it as if it were yesterday. I remember ethics because I had the same issue, and I had to get an ethics ruling as well for my contract with the process service, and I was cleared by ethics. So your point is taken. Miss Yukimura. fp[ April 20, 2012 Prosecuting Attorney pg.17 Ms.Yukimura: May I say something? Mr. Rapozo: Yes, you can. Ms.Yukimura: I do not believe ethics had all the information. It is clear that the actions of the Prosecutor are discretionary, and that they affect the YWCA, and the operational monies, and that there could be very likely a hesitation to offend or go against anything that the Prosecutor asks for because the budget of the YWCA could be affected. Mr. Rapozo: I understand. Ms.Yukimura: So I think there needs to be a clear opinion on this issue before Councilmember Kuali`i takes part. Mr. Rapozo: I understand. I got your point. Ms.Yukimura: Thank you. Mr. Rapozo: I am ruling based on the response from Mr. Kuali`i and my memory that he can remain, he is going to ask some questions, and I am assuming it will not have anything to do with the YMCA. If Mr. Kuali`i chooses to get another opinion from ethics, that is his prerogative, and he asked the County Attorney prior to coming in today, and that is why he was late, and the County Attorney advised him to stay. So I am going to allow him to stay and if you want to challenge that rule, go ahead. But if not we are moving on.from the prosecutor's budget? Ms.Yukimura: Okay. I just want to say it that it is not about the YMCA, it is about what decisions are made on other issues. Mr. Rapozo: You want him recused from the entire process? Ms.Yukimura: That is right, from the Prosecutor's budget. Mr. Rapozo: I understand. I would suggest that if you want to get a ruling, you can submit one through ethics. I am not going to kick him outtoday. Ms.Yukimura: Okay. Thank you. Mr. Rapozo: Proceed. Mr. Kuali`i: Thank you. Mr. Chair, my questions, like they have been throughout this budget process has to do with Personnel's Quarterly Report to us on vacant positions. Ms. I serf-C arvalho: Okay. Mr. Kuali`i: And now this report is delayed because it only goes up to December 31 of 2011. And we are expecting another quarterly update that takes us to the end of March, 2012 anyday now, because they were taking a 30-day period from the end, so at the end of April. I noticed that the Department of Personnel Services was showing four (4) positions as vacant. The first one being Position E-94 Deputy Prosecuting Attorney, effective vacancy, 12/10/11 and their status of recruitement was exempt, Department handles internally. Could you tell me what has happened since this vacancy occurred on 12/10/11? April 20, 2012 Prosecuting Attorney pg.18 Ms. Iseri-Carvalho: We had posted and are currently going through reviewing the applications for that position. Mr. Kuali`i: So you anticipate hiring within the next six (6) months, three (3) months? Ms. Iseri-Carvalho: Yes. Mr. Kuali`i: Okay, that is one (1)position, and the other position that they have is Position 9110, which is Special Investigator, SR-24. Okay, now I see in the Personnel Report that they have a dollar amount for the monthly pay of $4,200.00, but in your budget for Position 9110 I believe it is showing as a dollar funded position. They did show this as a vacancy as of January 1, 2011 and their status was not recruiting, no request received, so that is because it is a dollar-funded position? Ms. Iseri-Carvalho: Yes. When we were able to get funding for...we have hired, when did we hire? Mr. Delaplane: March 1st. Ms. Iseri-Carvalho: March 1st. So that position is filled? Mr. Kuali`i: It is filled as of March 1st? Ms. Iseri-Carvalho: Yes. Mr. Kuali`i: Position 9110 Special Investigator, filled. So Human Resources just had it in their vacancy report with a value for the salary based on what the position is priced ateven though it was a dollar-funded position? Ms. Iseri-Carvalho: I am sorry, I do not know about that report. Mr. Kuali`i: But it is a County-funded position and not a contract or grant- funded position? Ms. Iseri-Carvalho: Yes. Mr. Kuali`i: And filled as of March 1st? Ms. Iseri-Carvalho: Yes. But that position I think you mentioned$40,000.00? Mr. Kuali`i: $4,276.00 a month, $51,312.00, and I looked at the other position right above it 2802, and it is the same. Ms. Iseri-Carvalho: It is the same, that is correct. Mr. Kuali`i: And then another two (2) positions which does not show on your budget, but shows with Department of Personnel Services, one is 9108 Victim-Witness Counselor II; they had it vacant effective 11/24/11, so just last winter, and then they also had not recruiting, no requests received. So what is the status? Ms. Iseri-Carvalho: 9108? April 20, 2012 Prosecuting Attorney pg.19 Mr. Kuali`i: And then I saw you had another one I saw is 9109, wait that is a different position, Receptionist. Ms. Iseri-Carvalho: Mr. Kuali`i, I believe that was a fully grant-funded position. Mr. Kuali`i: Okay, it could be, but they do not show that. Ms. Iseri-Carvalho: I am not sure what the Personnel Department's report says, because I do not have that report before me and that is why it is not showing on our County budget, because that would have been a grant-funded position. Mr. Kuali`i: The other thing I would say is that some of the other Departments, not all, but some have shown not only the County-funded positions, but grant-funded positions. Some of them showed it as the position title and then in parenthesis contract and showed dollar, and that is the odd thing because to me dollar-funded is County is funding a dollar and the position is actually vacant. But in some cases you are saying there is a grant, so that it is filled witha live body and it is just not being paid for by County funds? Ms. Iseri-Carvalho: No. There are, I can tell you on our budget list, if you look at the four (4) dollar-funded positions, the Special Investigator 9110, 9109, the 9104... Mr. Kuali`i: 9104 and 9085. Ms. Iseri-Carvalho: Yes, 9104, those all have bodies in it. Mr. Kuali`i: Yes, and I did notice that you addressed that in your narrative. Ms. Iseri-Carvalho: Yes. Mr. Kuali`i: And that is part of your request for funding to fill the positions? Ms. Iseri-Carvalho: Correct. Mr. Kuali`i: Because in the past... Ms. Iseri-Carvalho: What happened is when the Mayor released their funded positions, ours were not included in their March submittal. We were told that the inclination was that all the dollar-funded positions were going to be funded. Mr. Kuali`i: All of your dollar-funded positions? Ms. Iseri-Carvalho: Right. We did receive a request from the Budget Director, because this was neglected, for whatever reason it was not put on their list. So they had requested of us to provide this, so that they would provide it in the May supplemental budget. Mr. Kuali`i: So, in fact, between your Department and the Mayor, when the next modified budget comes, those could have dollar amounts in them? Ms. Iseri-Carvalho: Yes. Mr. Kuali`i: Or should have according to what you are saying? II April 20, 2012 Prosecuting Attorney pg.20 Ms. Iseri-Carvalho: Yes. Mr. Kuali`i: Then the last position question I have from the Department of Personnel Services Vacancy Report was E-89. E-89 is a Deputy Prosecuting Attorney and under "salary range," it says "Ordinance," and then it says, "effective August 31, 2011" and then it said as far as recruitment status "to be filled 1/3/12." Did that happen, or what is the status of that, or is it about to happen? Ms. Iseri-Carvalho: E-89, that already happened. He started January 1. Mr. Kuali`i: So January 1, E-89 was filled? Ms. Iseri-Carvalho: Yes. Mr. Kuali`i: Thank you very much. Mr. Rapozo: Councilmember Nakamura. Ms. Nakamura: Good Morning, Shay, and Jake. Ms. Iseri-Carvalho: Good Morning. Ms. Nakamura: Thanks for your presentation this morning. I have some questions, one of the concerns that we all have is the recent decision that is going to effect how many trials that can happen at the same time. My question to you is, do you know whether in the State budget, additional funds have been given to the Judiciary to accommodate this additional workload that this recent ruling will require? Ms. Iseri-Carvalho: I do not know the answer to that question. I have had multiple discussions with the Administrative Judge who has informed me that pursuant to that decision that is going to happen, what he has told me is that they would have to bring out a District Court Judge, and then have the Per Diems do the District Court cases; he has not said any thing about their funding, and I have not checked with the Legislature whether there is any funding for that. Ms. Nakamura: e funding is that going to be possible without the addition of staffing to accommodate thisWith majorout, major restructuring? Ms. Iseri-Carvalho: I would state that, yes, you would have to have funding for those...you would already having funding for the Disctrict Court Judges, right. But the funding to bring in the Per Diems is one thing, or again, the question would be whether they would be prioritizing and taking the felony cases because the 180 days actually runs for any type of case. And so, if they brought up the District Court Judge then Rule 48 would (inaudible) the misdemeanor cases as opposed to the felony cases. Ms. Nakamura: And just backlog all around. Ms. Iseri-Carvalho: All around, yes. It was a very difficult decision for the Courts, because again we have had more than several discussions at pre-trial conferences as well as chamber conferences where we have had these discussions with the judge; he is also at a loss as to how to implement this decision. It is quite unfortunate because it does not appear that that decision is going to be appealed, that that will become the law here. 1 April 20, 2012 Prosecuting Attorney pg.21 Ms. Nakamura: Thank you for that explanation. I also had a question about your budget because what you are showing in your report and what is in the Mayor's budget does not, is not accurate. Ms. Iseri-Carvalho: Yes. Ms. Nakamura: So basically, with your budget that you are proposing, at $4.1 million, and the Mayor's budget at $3.8 million, there is a difference of$332,000.00. So I am not sure if this is a Wally question or your question, but how does this resolve?As it is presented here we do not have a balanced budget. Ms. Iseri-Carvalho: The narrative that we present is the wish list. Ms. Nakamura: Okay. Ms. Iseri-Carvalho: And the one that the Mayor has is all that currently they have put in for funding. Ms. Nakamura: Okay. Ms. Iseri-Carvalho: But in the May submittal the Mayor has asked and the Budget Director and Finance Director, asked for additional justification for certain types of items. Again just to not have the Council be surprised when the May comes in, is because potentially some of these may get funded with our discussions from this period until the May 15 period. Mr. Rapozo: We have to take a recess, we lost our captioner. There being no objections, the budget hearing recessed at 11:36 a.m. The budget hearing reconvened at 2:41 p.m., and proceeded as follows: Chair Furfaro: We are back from recess. First of all let me apologize to my colleagues. I had a standing visit with Dr. Raul and Dr. Rory this morning so I am back from my absence. I understand there is a PowerPoint presentation is complete? Mr. Rapozo: Yes, Mr. Chair. We had a technical problem with the captioner, I believe at 10:35 a.m. or 10:40 a.m., when we did break that took us into the caption break and we had Elderly Affairs at 11:00 a.m., so I rescheduled Prosecutor for 1:30 p.m., but when we did leave Councilmember Nakamura was in the middle of a question when the captioning system failed, so I would ask that we return to Councilmember Nakamura so that she cold finish her question. Chair Furfaro: Okay.Very good. Mr. Kuali`i: Mr. Chair, before we proceed, may I have a moment of personal privilege? Chair Furfaro: Certainly. Mr. Kuali`i: You were not here this morning but as we are continuing on with the budget session for the Prosecuting Attorney, I just wanted to say that it was offensive, troubling, and not pono for the Vice Chair to publicly attack my integrity by challenging my ability to decide how I can do my obligation and serve on this Council and serve the people in this budget April 20, 2012 Prosecuting Attorney pg.22 session. Her attempts to have me removed from the entire informational budget presentation of the Prosecuting Attorney, I feel is unwarranted and disrespecting my ability to follow her earlier offline advice to get advice from the County Attorney. If there is a matter she is concerned about further, she like any other citizen can file a complaint with the Board of Ethics. Thank you. Chair Furfaro: Okay, so I am guessing along the lines here a little bit, sir. So let me be clear. Is this in relationship to your participation in the budget as your role with the YWCA? Mr. Kuali`i: That is correct. Chair Furfaro: And I was of the impression that was resolved last year. Mr. Kuali`i: It was, Chair. Chair Furfaro: Okay. So noted.Vice Chair Yukimura. Ms.Yukimura: Yes chair, I am sorry that Councilmember Kuali`i thinks it was an attack. I was given information last night and I have copies if anyone wants to see, showing that 1 position in the Victim Witness Program was eliminated essentially when the salary, her salary through a VOCA grant was removed and given to the YWCA. And so, I felt there was a potential conflict of interest, and therefore I asked Councilmember Kuali`i on the side to at least request an opinion from the Ethics Board which is the designated decision maker on conflict of interest. I think it is in the Charter that they make the decisions because it is hard forus, if we have a conflict of interest, to make a decision about ourselves, so I just made a request. After consulting with the County Attorney, which I thought was a good idea, decided not to, I thought it was important to raise an issue, because if there is in fact a conflict of interest, decisions made by people as part of the conflict of interest, could jeopardize the decision. So my request was to, so this was new information. I do not know if the Board of Ethics had this information when they made their decision. It is not even clear now whether they made a decision. I think they received his disclosure of a potential conflict of interest, but he did not ask for an opinion, which would have required an investigation of the facts, and then a written decision by the Board of Ethics, such as Councilmember Bynum recently requested and received. And therefore, I just felt it was good leadership, if there is a potential conflict of interest, to request a decision and then abide by whatever decision comes forward from the board. Chair Furfaro: Okay. I just want to say at this point all of us have some exposure when it comes to our participation and our work loads and so forth, and I would agree that it is good to get an opinion through the Ethics Board. I think the last one I queried had to do the rule of necessity which dealt with all of us being property owners, and is there a conflict; we are voting on property taxes and they referred this question to the rules of necessity. I had issues dealing with myself as Executive Director of Leadership Kauai, and I sat on the Salvation Army in getting grants from the County and so forth. And there is somewhat of a duty, but I think it is something that we could query with the County Attorney, but I want to make sure for the record I have already been of the impression that a ruling with Mr. Kuali`i's role with the YWCA was made then with the County Attorney and with the then County Clerk; that is myunderstanding. So if I could ask the 2 of you to step away for a moment, I am going to ask Mr. Castillo to come up. Mr. Castillo, may I ask you to come up? I guess we would probably want to get ourselves to have an understanding of our evaluation here before we actually get to any future vote, so could you first of all refresh my memory that we had already hurdled this during last year's budget? pz April 20, 2012 Prosecuting Attorney pg.23 AL CASTILLO, JR., COUNTY ATTORNEY: For the record, Al Castillo, County Attorney. The new, I am, I do not know what was presented to the...what if anything was presented to the Ethics Board the last time. I do know, I do have a set of facts that I could operate from at this point in time in speaking to various Councilmembers; however, Councilmember Yukimura is correct that the body that would be appropriate, if there are any questions of the impropriety or propriety of whether or not there is a conflict is the Board of Ethics. 2004b is specific and I... Chair Furfaro: I am sorry,what is that number for me?I am sorry. Mr. Castillo: The Charter, 2004b, as in beta is specific, and... Chair Furfaro: So at this point could I ask if you could revisit your previous notes and could I ask as you are the counsel for this body that you could revisit this with Mr. Kuali`i. Mr. Castillo: I have revisited it with him... Chair Furfaro: Sorry I am so far behind. Mr. Castillo: No. You were not here this morning and I gave him legal advice. Chair Furfaro: Okay. Okay. Mr. Bynum. Mr. Bynum: Al, I think it has been a very tense morning, and I did go to the Board of Ethics when my ethics or my conflict was questioned, and I asked for an advisory opinion and received it. This morning the Prosecutor made allegations about your Office. Last week and in the media the Prosecutor made multiple allegations about a whole laundry list of individuals. I think that this a toxic environment right now, and I strongly suggest to my colleagues and body , that we defer this budget hearing until some time in the future when people can calm down, because I know I am upset, and we can sort through some of this behavior. Talk about pono, if you have questions about somebody's ethics we have a mechanism to do that. It is not in letters sent to the Council with no prior knowledge, it is not in PowerPoint Presentations... Chair Furfaro: Do you have a question for the attorney Mr. Bynum? Mr. Bynum: Yes. Do you not think it would be prudent... Chair Furfaro: We are in recess. There being no objections, the budget hearing was in recess at 2:51 p.m. The budget hearing reconvened at 3:03 p.m., and proceeded as follows: Chair Furfaro: We are back. I have a couple of questions I want to pose to get caught up on some of the current items and then I will give the floor back to Mr. Bynum. To the County Attorney, again, I am sorry I was not here to be as current as I should be today when we started this. I want to make it certain, if his question about ethics and participation has come up, do we have a ruling other than the one I referred to last year from the Ethics Commission? Mr. Castillo: I am not aware of any ruling. April 20, 2012 Prosecuting Attorney pg.24 Council Chair: You are not aware of any? Okay. Have you had an opportunity as counsel for the Council as a body, have you had time to spend with Councilmember Kuali`i in any advisory capacity? Mr. Castillo: I have. Chair Furfaro: Is he aware that if he continues at this point, that those risks are his risks? Mr. Castillo: I have advised Councilmember Kuali`i and whatever decision he makes here on after is his decision. I do not want to characterize what his decision is. Chair Furfaro: Okay. And then Councilmember Kuali`i, can I confirm that you had a discussion with the County Attorney? Mr. Kuali`i: Yes, Mr. Chair. Chair Furfaro: Okay. Thank you. Before I continue going on at this point, I want to make sure all of you know that we have half an hour for this session. We should focus on questions that deal with budget and on that note, Mr. Bynum, you have the floor. Mr. Bynum: No thank you. Chair Furfaro: Okay.Vice Chair Yukimura. Ms.Yukimura: Yes, I want to finish the issue. Chair Furfaro: Excuse me, did we go through this issue this morning? Ms.Yukimura: No. Chair Furfaro: Okay. She is saying no, can you confirm that? Did we go through this? Mr. Castillo: I was not here. Chair Furfaro: You were not here, thank you for that question. Pose the question to the County Attorney then. Ms.Yukimura: So is it your rule or is it the Board of Ethics rule under the Charter to render advisory opinions as to whether there is a conflict of interest? Mr. Castillo: It would be the Ethics Board to make that decision. Ms.Yukimura: And I see in Section 20.5 of the Board of Ethics that they shall be binding on the Board... Mr. Rapozo: Twenty-eight minutes now. Ms.Yukimura: I am sorry, this is an important issue. Okay.And is it not true that if there is a conflict of interest and decisions are made by the Board it could jeopardize the decisions by the Board? April 20, 2012 Prosecuting Attorney pg.25 Mr. Castillo: That is a wide question. Anything could jeopardize, however this body is made up of 7, so... Ms.Yukimura: I think there is something in the Charter, but that is okay. Mr. Castillo: It is a broad question, but again this body is 7. Ms.Yukimura: Alright. Thank you very much. Mr. Castillo: You are welcome. Chair Furfaro: Okay. Al, is there anything else you would like to advise us at this point? Mr. Castillo: I have nothing right now. Chair Furfaro: Okay. I just want to affirm that today we are not making any decisions. We are hearing testimony, Q &A, regarding budget. Mr. Castillo: Thank you. Chair Furfaro: Thank you. To the Prosecutor's Office, come up, Mr. Bynum, you will still have the floor. Mr. Bynum: Councilmember Nakamura had the floor. Chair Furfaro: Coucnilmember Nakamura, I am sorry. Thank you for the correction. Councilmember, you have the floor. Ms. Nakamura: One of the requests that you are making in your budget proposal is to have additional space to work with victims and witnesses. This is the $70,000.00 for a Victim Witness Diversion Center. Ms. Iseri-Carvalho: I am sorry, that should have been deleted. That is something that we were in discussions with the Mayor's Office. Ms. Nakamura: That is why you have the new version here? Ms. Iseri-Carvalho: Yes. That should have been deleted. Ms. Nakamura: Okay. Thank you very much. Are there any, because I reviewed the version that we received February 16, and then I noticed you submitted something... Ms. Iseri-Carvalho: There is an April 20. Ms. Nakamura: April 20. Are there any other changes that we should be aware of because it is hard to re-read the whole thing? Ms. Iseri-Carvalho: No. The only change was that we were discussing the dollar funded positions and that was brought up in a prior Council, and so we were asked from the Mayor's Office to provide justification for those dollar funded positions. That is the only ones that are in there. That is the only change. Ms. Nakamura: And you deleted the whole discussion about the space? April 20, 2012 Prosecuting Attorney pg.26 Ms. Iseri-Carvalho: Yes. We are currently work with the Kaua`i Police Department, because this initially contemplated working outside of the County's Base. However, there maybe space available within the County and so we are discussing that where we could get grant funding for equipment and the space being provided by the County. Ms. Nakamura: That is great. That was going to be my question whether you were discussing it with the Building Department. Ms. Iseri-Carvalho: Yes. Ms. Nakamura: Okay. Thank you. Ms. Iseri-Carvalho: And also discussing it with KPD because we wanted the center to be as close as possible for both agencies to utilize. Ms. Nakamura: Okay. Thank you. Chair Furfaro: Okay. Mr. Rapozo. Mr. Rapozo: Thank you. A couple of questions on the presentation today. Number 1, which was pretty revealing, was the amount of cases that were open in relation to the prior years, and is there any reason aside from the basic increase in crime, or is it, I know in your discussion you talked about the relationship with Kauai Police Department, is that more cases being forwarded to your Office from Kaua`i Police Department? Ms. Iseri-Carvalho: In any given day a detective probably within his workflow has 200 to 300 cases at one time. The coordinated efforts of having the one-on-one relationship with the Police Department has lead to a lot more closure of cases. So if for example we have a link with a burglary but there are 5 other ones that we cannot link, then we will try to concentrate on that one person. So even though you are talking about a lot more cases, a lot of these involve the same defendants that have done multiple types of crimes.And so when yo look at each individual case, you are going to see a lot of those because of the collaboration in looking back at all the cases that they have pending on their workflow, we have been able to close a lot more cases with the Police Department. Mr. Rapozo: Okay. And the other question, and I will combine the 2 projects that you talked about, which I was happy to hear about the Cold Case Unit and the Convicted Sex Offender Project. Both were relatively new, and we saw the statistics on the convicted sex offender project, but I am more interested in the continuiance of both of these projects, the Convicted Sex Offender Project as well as the Cold Case Unit Project. I think both are very important to the safety to the people of this island. Is your funding sufficient to move forward and to continue these as active programs versus the one shot deal and go out and do a sweep?Are you and the Police Department, I was not aware of this when the Police Department came up, but are you equipped at this point with the Police Department to continue these programs going forward? Ms. Iseri-Carvalho: What we have done is we have been working on rewriting all their policies and procedures with respect to registration of convicted offenders, because that had been not attended to probably in the last 10 years. This was a project that was initiated by the Deputy Chief, Mike Contrades, who came to our Office asking for assistance. The reason was because we had learned that we have approximately 100 sex offenders on the island of Kauai. A third of that was not registered; we had lost their addresses and phone numbers, they had not come in to take the annual photograph, they had not been registering new cars. And so the information that was contained on the Sex Offender Registry database was quite old because these people, they had lost Ii April 20, 2012 Prosecuting Attorney pg.27 contact with. So this project, what it entailed, was going through the whole list and getting all of them to do the investigation to find out all their prior addresses. A lot of these people were also homeless and more of a problem because when you lose contact, especially these people, especially sexual predators, they actually prey on the ones that are most vulnerable, which would be the children at the parks. That is where a lot of these sex offenders that we found, when we went through to do the investigation that were listed homeless were found at these various parks. We picked up all 25 that were not registered, and we have them incarcerated. The bails were extremely high. We had 2 people plead guilty and go to jail for 5 years for failing to register already, and we have 23 that are left. Once the Prosecution occurrs on these cases the role transfers back to the Police Department to continue doing the registration every year. We have compiled all of the information that theyneed to go forward, and so the expense would actually be on the Police Department and that is why I brought up I was concerned about the Police Department when they were taking away the Records Clerk because it is the Records Division that actually do the registration of all the convicted sex offenders. Which means every year all hundred of them need to come in every year to update their photo and living arrangement and housing and car, work, etcetera. So that money would be something that the Police Department would desire in order to keep the system updated because currently it was not up until we ended up charging these sex offenders with registration violations. Mr. Rapozo: Okay, and from watching the news I understand it is a statewide problem, in fact, that many of these sexual offenders were not registering. A lot of them are moving here or moving away and not registering in their respective jurisdictions. And you answered the next question which was going to be who controls the program. You said after this initial sweep it will be the Kaua`i Police Department. Ms. Iseri-Carvalho: Yes. And you mentioned the creation of the Cold Case Unit which is the one time one year, currently, that we received the grant for. Whether that is self sustaining...currently right now we only have a one year grant, but it gives us a start and then g Y Y g g probably we believe whether it be our Department or the Police Department that comes in for funding of that, it has always been a priority for both agencies to establish and continue to sustain a Cold Case Unit. Mr. Rapozo: Okay. And all I ask is when you meet with the Department again on the cold case issue that some really good statistics or data be retained so next year should we lose the funding we can pickit up. That is one of the units we need to maintain on Kaua`i because we do have quite a bit of unsolved murders here and that is one way of at least trying to get to some resolution, so thank you very much. Ms. Iseri-Carvalho: Just following up with that, I wanted to say that depending whether the case is solved or not will depend on the amount of information we are able to divulge because these cases are currently in investigatory stage and so they have not been out in the public at all. Mr. Rapozo: Thank you, Mr. Chair. Chair Furfaro: Vice Chair Yukimura. Ms.Yukimura: Thank you. I am looking at the staffing and the budget proposed to the Mayor, and of the positions which one is vacant?Presently? Ms. Iseri-Carvalho: Currently E-94 which Councilmember Kuali`i had brought up. We had ads in the paper for that position. April 20, 2012 Prosecuting Attorney pg.28 Chair Furfaro: Excuse me, Shay. Did you say E-94? Ms. Iseri-Carvalho: Yes. That is the position number. Chair Furfaro: Okay. Ms.Yukimura: Anything else? Ms. Iseri-Carvalho: Our Administrative Officer which is 2801. Ms. Yukimura: And those are the only vacancies you have right now? Ms. Iseri-Carvalho: We have one other vacancy which was the one just vacated by Tracy Murakami which is E-64. That we will be sending out ads, we have not got to the posting of that position. Ms.Yukimura: Okay. Now, you have here Executive Protocol Officer. What is that position and is it filled? Ms. Iseri-Carvalho: That position is, that was the Grant Coordinator Position. Ms.Yukimura: Why is it called an Executive... Ms. Iseri-Carvalho: It is not going to be called an Executive Protocol Officer. That initially came in because it was a position similar to the Mayor's position, but it has been reevaluated by Personnel and I believe it is like Community Relations Officer or something, but that is Jamie's, or the Grant Coordinator's position. It is just a change in title and job duties, but that position has been for the last several years a Grant Coordinator position. Ms.Yukimura: Okay. And the Victim Witness Counselors, are these 2 positions paid for by the County? Ms. Iseri-Carvalho: These 2 positions are paid by the County, yes. Ms.Yukimura: And their field and they are civil service positions? Ms. Iseri-Carvalho: Yes. Ms.Yukimura: And you have other positions for Victim Witness that are paid for by grants? Ms. Iseri-Carvalho: One. Ms.Yukimura: And so that means Erin Wilson's position is no longer in existence? Ms. Iseri-Carvalho: Yes. Ms.Yukimura: Earlier this year you said it was but now you eliminated it. Ms. Iseri-Carvalho: I guess the position number still exists. It depends how you want to say it, but there is no funding for that position. Ms.Yukimura: Yes, I know. It went to the YWCA. And you have asked also for a legal counsel, and have you given us a figure for that, an amount? 'ha April 20, 2012 Prosecuting Attorney pg.29 Ms. Iseri-Carvalho: Legal counsel would be the same as the deputies which is $101,066.00. Ms.Yukimura: Okay. Can you also send to us, because these figures for the Deputy Prosecutors do not represent their actual pay do they?They actually get paid... Ms. Iseri-Carvalho: Some of them do. Ms.Yukimura: So can you send us their actual pay? Ms. Iseri-Carvalho: Sure. Ms.Yukimura: In fact, for all of your staff? Ms. Iseri-Carvalho: Yes. Ms.Yukimura: Thank you. And lastly the Law Office Assistants, they do not have an SR number so are these contract or appointed? Ms. Iseri-Carvalho: They are exempt. Ms.Yukimura: They are exempt. But they do get benefits, right? Ms. Iseri-Carvalho: Correct. Ms.Yukimura: Okay. But they do not have to go through the civil service testing? Ms. Iseri-Carvalho: No. They have a job description and the Personnel determines whether or not these parties who apply are qualified for the position, and then we get the okay. Personnel decides if they have the qualifications for Law Office Assistant. There is a job description for the Law Office Assistnat so Personnel determines whether or not that the parties that apply have the appropriate qualifications for those positions. I do not have the final say in whether or not somebody just graduated from high school came forward because they need to be qualified for the position, and qualified by Personnel. Ms.Yukimura: Not necessarily if you have an empty reallocated exempt position, then you can just move someone into that position without testing and qualification. Ms. Iseri-Carvalho: You cannot put a custodian as a Law Office Assistant. Ms. Yukimura: But can you put a receptionist which is equivalent... Ms. Iseri-Carvalho: Not if they do not have the qualifications. Ms.Yukimura: Who determines that? Ms. Iseri-Carvalho: Personnel determines that if they are qualified or not based on the resume that they provide. Ms.Yukimura: I do not think so. April 20, 2012 Prosecuting Attorney pg.30 Ms. Iseri-Carvalho: I do. That is what we do. We submit the resumes to the Personnel Department. They determine if they are appropriate. Ms. Yukimura: So in the case of... Ms. Iseri-Carvalho: So you would not have a person who was a park custodian that i would be able to hire as a Law Office Assistant. Ms.Yukimura: But you had a receptionist who was of the level of Clerk I, going into a Law Office Assistant which is legel of Legal Clerk III. Ms. Iseri-Carvalho: She has not come into that position yet, but she actually came from a doctor's office, I mean she came from a doctor's office so she has a lot more skills and I do not believe you have her resume to determine if she is qualified or not to be a Law Office Assistant. Ms.Yukimura: I do not think we are talking about the same person, but the main issue was who makes a decision moving a civil service position to an exempt position, and I do not think it is, if it is not subject to civil service testing I do not think it is the Office of Personnel. Ms. Iseri-Carvalho: You would have to discuss whatever issue you have regarding that with the Office of Personnel. It is like here.You hire your people. It is the same way. Ms.Yukimura: Thank you. I have a few more questions but I will let others. Chair Furfaro: Before I recognize Mr. Bynum, should I anticipate for the staff here you are going to send a staffing criteria question to Personnel? Ms. Yukimura: Yes. Thank you. Chair Furfaro: So staff please make that note. Mr. Bynum, you have the floor? Mr. Bynum: So there are currently 3 Victim Witness Counselors on your staff? Ms. Iseri-Carvalho: Yes. Mr. Bynum: Is it still the status that 2 of them are out of some sort of leave? Ms. Iseri-Carvalho: Yes. Mr. Bynum: And initially when you first became Prosecutor... Ms. Iseri-Carvalho: One is anticipated to return next week. Mr. Bynum: And when you became Prosecutor there were 5 Victim Witness Counselors, correct? Ms. Iseri-Carvalho: Correct. is April 20, 2012 Prosecuting Attorney pg.31 Mr. Bynum: And so, in past testimony you have said that you have changed the way Victim Witness works and the vertical prosecution, so basically they are assisting cases that are actively involved in prosecution. Is that correct? Ms. Iseri-Carvalho: Yes. Mr. Bynum: And so, in the past, the Victim Witness Program had an Outreach Program where they contacted witnesses or victims and let them know about the eligibility of services.You are not doing that? Ms. Iseri-Carvalho: They can if they want to. The YWCA does a lot of that and outreach of services. Mr. Bynum: Does your Victim Witness staff, there was an active program... Ms. Iseri-Carvalho: I do not know of an active program about outreach. Mr. Bynum: Okay. So you are familiar with the basic Bill of Rights with that?Yes? Ms. Iseri-Carvalho: Of course. Mr. Bynum: Of course. And 1 of those victim's rights is to be informed from Police, or Victim Witness Counselor, or other criminal justice personnel, a financial system, and other social services available as a result of being a witness or a victim. I am concerned, and I have been for 3 years that that outreach program, that there are a whole bunch of victims on Kaua`i that used to be informed as is their right of services and victims of crime compensation available to them that are no longer being informed. Ms. Iseri-Carvalho: That is not true. Mr. Bynum: I believe that is true. Ms. Iseri-Carvalho: You do not work in my office. Mr. Bynum: So at a time you have increasein crime, right, I called the victims of Crime Compensation Commission in 2009, there were 56 active cases on Kaua`i, and in 2010 there were 35, and 2011 there were 18. We are down by 200 cases. Ms. Iseri-Carvalho: Active cases of crime victim compensation? I can tell you we have the highest and the best statistics from the Crime Victim Compensation. I work with Pamela Ferguson. Mr. Bynum: That is where I got these statistics from. Ms. Iseri-Carvalho: So she will provide you with information to say I am an excellent Prosecutor and our Office does way more than any other office in collection and restitutions. In fact she has applauded and commended me at many meetings for that. Mr. Bynum: Shaylene, is it true that your Office no longer does outreach... Ms. Iseri-Carvalho: Our Office does outreach. It does not necessarily have to come from a Victim Witness Counselor. April 20, 2012 Prosecuting Attorney pg.32 Mr. Bynum: So there was an active program... Ms. Iseri-Carvalho: You are assuming that there was an active program. There is a different Prosecutor in place, maybe with the last Prosecutor there was an active outreach program, I am not privy to what his strategies were with addressing victims. We have different strategies. It is a totally different administrator. I mean you have the availability if you want to provide as much Victim Witness Counselors as you would like in our budget. Mr. Bynum: I also have the opportunity to contact Pamela Ferguson-Bray as I did and ask for the statistics. They are right here and according to her in 2009 there were 56 active cases for victim compensation, and in 2011 there were 18. I asked for other statistics. I have not received them yet... Ms. Iseri-Carvalho: Because not all the cases go through crime victim compensation. Not all of the cases go there. Mr. Bynum: Especially when the victims are not contacted... Ms. Iseri-Carvalho: And that is a total lie, Mr. Bynum. Mr. Rapozo: Mr. Chair, Mr. Chair, point of order,point of order. Chair Furfaro: I am just going to remind everybody, the decorum here is under my control. Okay? Make sure you all understand that. How we react, how we pose questions and so forth. Let us all be mutually respectful. Okay? Mr. Rapozo: Mr. Chair, I just have a point. Chair Furfaro: You have a point of order already. Mr. Rapozo: We had this on the agenda several months ago with the Victim Witness Program. We received all the information and we are limited to time with the Prosecutor's Office, and I would much rather discuss the issues that pertain to the budget rather than how the Department Head runs their Department. Chair Furfaro: Okay, I want to point out. You will have the floor, let me answer the point of order. Okay? The Chair can choose to take any questions and forward them to the Prosecutor's Office as the standard that I have already established and asked for written responses within a 48-hour period. Those people here and answering and we had that with Engineering and Finance. They may choose to say we will get back to you in writing. Okay. It is not my intention to go beyond the time that we have made for today but I will entertain late written questions.You have the floor, Mr. Bynum. Mr. Bynum: In your statistics for conviction rates can you provide us the numbers?I have statistics. I would like to see the numbers, and can you provide statistics for... Ms. Iseri-Carvalho: Can you provide all that you are requesting in writing so we will have that information and staff will prepare that? it Mr. Bynum: Can you provide statistics for DWI? April 20, 2012 Prosecuting Attorney pg.33 Ms. Iseri-Carvalho: We do not, our system does not keep track of DWI because we do not have a system. That is why we came here to ask for an updated system. Ms.Yukimura: What is DWI? Mr. Bynum: Driving while intoxicated. So you cannot tell us how many cases you have prosecuted... Ms. Iseri-Carvalho: It is a petty misdemeanor case. No. Mr. Bynum: In the cases that were dismissed without prejudice, can you tell us which ones were originally charged and then dismissed? Ms. Iseri-Carvalho: We could not tell you that. There are many reasons for dismissal. One is if we come forward with a case and hold a person for 48 hours. If there is time to do felony information charging or grand jury that is what we will do, but it is the same case but it is because it gets evaluated by paper as opposed to an actual hearing. So there are cases like that on dismissals without. There are cases where victims are on the mainland and do not return, their cases are dismissed without prejudice. There are cases where victims do not want to participate in the process. Sometimes those cases are dismissed without preduice, some cases go beyond the Rule 48 time period and those cases are dismissed without. So there are numerous reasons why cases would be dismissed without prejudice and those reasons are not documented anywhere. Mr. Bynum: On your budget all of the deputies are in the budget at $101,000.00, correct? Can you provide us what the deputies are actually paid? Chair Furfaro: I think that is a duplicatequestion that was posed earlier from Vice Chair Yukimura. Mr. Bynum: I was unaware of that. The last question has to do with turn over. There has been 18 attorneys that have left your office, is that correct? Ms. Iseri-Carvalho: For various reasons, either termination, movement, taking care of relatives, there is a variety of reasons. There has also been at the Honolulu Prosecutor's Office 16 attorneys that have left that office in the last 2 years. Mr. Bynum: I have the statistics since Ryan Jimenez was the last Prosecutor of how much turn over there has been. I will not go in to that, but... Ms. Iseri-Carvalho: Is there a question? Mr. Bynum: Yes. Are you concerned that during your tenure, deputy positions have been vacant 58 months? Ms. Iseri-Carvalho: No. When we first started we have 5 1/2 attorneys. There were many positions, people doing 2 or 3 courts in a given week. Since the time has come with respect to turn overs, we had hardly any turn overs, and we had the experience of the attorneys having such phenomenal conviction rates for those that have been doing well they are retained. But if there are attorneys who are not able to keep up with the demands of working 50 to 70 hours a week, and have to deal with the emotional trauma of having to deal with court everyday, there are people just not fit for this job. It is not a job for everyone. Mr. Bynum: I agree with that. Give me one second. April 20, 2012 Prosecuting Attorney pg.34 Chair Furfaro: We are at pretty much closing point so all of you please sum up your final questions here. Mr. Bynum, you still have the floor. Mr. Bynum: You said in the media several times recently that you dismissed deputies for being dishonest... Ms. Iseri-Carvalho: I believe that is a Personnel issue. Mr. Bynum: Without mentioning names, how many deputies were dismissed for being dishonest? Ms. Iseri-Carvalho: Several. Mr. Bynum: Several? Ms. Iseri-Carvalho: At least several. Mr. Bynum: So you hired deputies that ended up being dishonest? Ms. Iseri-Carvalho: It is unfortunate that victims had to suffer because... Mr. Bynum: Excuse me, I have the floor, and I am almost done. Look at all the questions we asked, Mel. Mr. Rapozo: This is about the budget. Ms. Iseri-Carvalho: It is unfortunate... Mr. Bynum: When you found those dishonest deputies... Chair Furfaro: She is trying to answer you, she was trying to answer you. Mr. Bynum: Well, I would not know because I was interrupted by Mr. Rapozo. Chair Furfaro: I am advising you she is trying to answer you. Ms. Iseri-Carvalho: There were several attorneys that were dismissed or were not retained because of being dishonest. Cases that came up for example was when attorneys were lieing and saying that witnesses had been subpoenad for certain cases, and we learned they were not. The reason is because there were several defense attorneys who were sitting in court who represented certain parties in other cases, and they had called our office over 10 times and did not get any response back, and the case was dismissed even though the victim wanted to prosecute. There were cases, Class A felony cases that were dismissed with no authority of trafficking cocaine from California. There were cases dismissed, sex assault cases, phone calls and confessions that were dismissed. Attorneys who who were handling these cases deserve to be dismissed from the office because there were a lot of victims that suffered because of the actions or inactions of these attorneys that seriously affected child victims, elderly victims, people who were visiting, so yes. If you are a dishonest person you do not deserve or should be a member being paid by the public an occupation such as the Prosecuting Attorney's Office. Mr. Bynum: I agree with that too. My last question, these dishonest people who did not meet their responsibilities as attorneys, did you make the appropriate referrals to ODC or the Ethics Board? April 20, 2012 Prosecuting Attorney pg.35 Ms. Iseri-Carvalho: I do not know if we had done, we did, on at least one we did. It varied. It depended on the type of case, it depended when we found out about the dishonest actions. There was investigations done to determine a lot of this dishonest actions unfortunately by attorneys at public expense. Mr. Bynum: And that criteria would apply to anyone in your office? Ms. Iseri-Carvalho: About being dishonest? Of course. Mr. Bynum: Thank you. Chair Furfaro: Councilmember Yukimura, I am going to let Councilmember Kuali`i(inaudible). Ms. Iseri-Carvalho: In fact, I wanted to finish upon Mr. Bynum's question. There were more than several attorneys dismissed at the recommendations from the Kaua`i Police Deparmtnet because they had determined or found certain dishonest actions that had been involved in the cases that certain attorneys were handling, that were brought to my attention and attorneys were dismissed for that. Chair Furfaro: Thank you. Mr. Kuali`i. Mr. Kuali`i: Thhank you, Mr. Chair. In the list of positions there is a few positions that have .5%, 1% and I know in your narrative you talked about some of the positions, how they are either fully funded or partially funded by grants, so not funded by the County. In this budget you would not be showing all of those, any other positions that are grant funded? Ms. Iseri-Carvalho: No. Right now we do not have any positions that are totally grant funded. What happened there were 2 positions that were nearing the expiration on the 4 year term on the grant, and that is why you look at one attorney, there was one, Ernie, in the budget? Mr. Kuali`i: (Inaudible) Ms. Iseri-Carvalho: The drug, remember we cut it back because it was not for the full year and the grant was going to expire in February. Do you remember the position number? Mr. Delaplane: The position number is 9091. Mr. Kuali`i: Yes, you have the asterick on here. Ms. Iseri-Carvalho: Yes. That was the only one, that one was expiring...the 50% was the person doing this appellate work but that position we needed a full time attorney because we needed somebody to address the Bueno issues, so that position is the one that is currently vacant, E- 64 and funded at 50% but we would use unexpended salaries to supply a full-time deputy for that position. Mr. Kuali`i: So the salary in that is showing in the half-time E-64 position in the amount that is added in 9091 half-time, those would be one full-time attorney? Ms. Iseri-Carvalho: There would be 2. We would have to use unexpended salaries or only hire the person for half of the year. April 20, 2012 Prosecuting Attorney pg.36 Mr. Kuali`i: Like a temporary. Okay. Basically, I think it would be good to know what all, maybe there is not a lot and maybe just the few you talked about. Ms. Iseri-Carvalho: About grants? Or Partially funded grants? Mr. Kuali`i: Partially funded.We will ask for it in writing. Ms. Iseri-Carvalho: Yes, we will be able to provide that. Mr. Kuali`i: Thank you. Chair Furfaro: Okay. If you do not mind since we are going around as I mentioned when Mr. Bynum was finished, we are going around with last questions. The rest of the questions we can send over in written form and I will recognize you Vice Chair Yukimura after I have my questions. Ms.Yukimura: Sure. Chair Furfaro: Jake, my question is directed at you and I think you may or may not know my cousin was the First Deputy Prosecuting Attorney for the City and County of Honolulu, and returned to private practice. I want to get equivalence now. When I talk about equivalence, I am making that 2,080 hour employee is a full-time equivalent and I know you do not work those hours; you work a few more than that. But if I look at your staffing guide I see there are 11, no, there are 13 total attorneys. Two are in the staffing guides as half-time, so I am going to basically say that means we have 11 full-time equivalents, and then in that count is the Prosecutor herself which I am not counting. Okay. So that says that if all the positions were filled, and regarding how long they were aged in that position, and Mr. Bynum has done some research that indicated 58 months, 58 months of attorneys were vacated and we are using a full-time equivalent of 396 full-time equivalent months of work. That means you averaged a 14.7% vacancy. How does that compare to the other counties in percentages, not in number of attorneys,just in percentages? Mr. Delaplane: I do not have that information. Chair Furfaro: I know I will send it over in a question. Mr. Delaplane: Absolutely. We can get that for you. Chair Furfaro: I will send it over in a question. I do not want to know about anything other than the full-time equivalents. We had 58 vacant months, but how does that compare to the ratios (Maui County, City and County of Honolulu, etcetera)? I will send that over in a question.You have my question? Okay.Vice Chair Yukimura. Ms.Yukimura: Thank you. In your travel budget you are showing a 300% percent increase? Ms. Iseri-Carvalho: What page number is that? fi Ms.Yukimura: 23 from last year. Ms. Iseri-Carvalho: What page is that? Ms.Yukimura: It is page 28. fi April 20, 2012 Prosecuting Attorney pg.37 Ms. Iseri-Carvalho: Ours is p g a e... Ms.Yukimura: Last year it was $2,300.00, this year you are asking for $6,300.00? Ms. Iseri-Carvalho: I need to check which travel because it may be witness travel. Is that what you are referring to?Witness travel? Ms.Yukimura: It does not say that. Ms.Yukimura: Excuse me, Jake, her pages are hitting the mic and blocking the voice. Ms. Iseri-Carvalho: Sorry our pages are numbered like yours, we have page numbers 1 through... Ms.Yukimura: Well, it looks like 58 trips, 95 trips versus last year's 58 trips. Ms. Iseri-Carvalho: I am sorry, 58? Can you repeat that, Ms. Yukimura? Ms.Yukimura: The money figure, it is line item 001-0401-513.56. Ms. Iseri-Carvalho: 513.56-01? Ms.Yukimura: Yes. Ms. Iseri-Carvalho: And the reason is that, well, as President of HPAA I do have a lot more meetings that I attend on behalf of the HPAA Organization, number 1, and number 2 I attend, or someone attends all of the parole hearings that involve sex assaults and murders which normally the Office of the Prosecutor did not participate in. Ms.Yukimura: That is a difference over last year? Ms. Iseri-Carvalho: Yes. That may be the difference because it depends how many parolees are either at Halawa or at the medical facilities. But I have attended quite a few, and especially multiple hearings on cases that we, either they are coming out on parole or they are setting the minimum term for parole. Ms.Yukimura: Okay. So... Ms. Iseri-Carvalho: And all of those are done on O`ahu. We have some done on Kauai if they are in the Kaua`i facility, but if they are in Halawa or on the mainland or Arizona, what is the other place? Kentucky. Then those hearings, there is no opportunity for teleconferencing for those meetings. Ms.Yukimura: But you do not handle any trials or court work, right? Ms. Iseri-Carvalho: I do. I am doing the murder trial. Ms. Yukimura: You said last time that you do not...that you did not handle any at all... Ms. Iseri-Carvalho: What? April 20, 2012 Prosecuting Attorney pg.38 Ms.Yukimura: In the budget. I asked that in terms of other, you provided information from the other counties that showed that the Prosecuting Attorneys do not handle cases either, the head Prosecutor. Ms. Iseri-Carvalho: No. That is totally an error. I have been handling cases... Ms.Yukimura: We can get the minutes from the last... Ms. Iseri-Carvalho: Please do. That was the difference that I said in my office. The other Prosecutors do not handle trials like I do. I am in court a lot of the times. We were just there on the Hilario voluntary motions, we are doing the murder trial. Ms.Yukimura: I thought that John Murphy was doing the Hilario case. Ms. Iseri-Carvalho: We have 3 attorneys doing the Hilario Case. Ms.Yukimura: Alright. Chair Furfaro: Ladies we will go back and check, ladies, we will check the narrative in the minutes. Ms.Yukimura: Alright. Thank you. Ms. Iseri-Carvalho: I can tell you what exists. I do handle trials. I have handled sex assault trials, murder trials, and a variety as the Prosecutor. Ms.Yukimura: Okay. Ms. Iseri-Carvalho: I have been in court, I have handled motions for revocation, I handled conditional releases... Ms.Yukimura: Alright, we will get the evidence from the court. Thank you. Ms. Iseri-Carvalho: I have handled motions to suppress, I have handled voluntariness hearings. What I said was that was unusual because all of the other Prosecutors on the other neighbor islands do mainly, if not all, administrative work. Ms.Yukimura: And jake handles trials too? Ms. Iseri-Carvalho: Yes. Mr. Bynum: Guaranteed? Ms.Yukimura: Well, the only one I know he handled is the Tim Bynum case. Ms. Iseri-Carvalho: Excuse me, this is ridiculous. Ms.Yukimura: Okay, alright. Chair Furfaro: I am going to be honest with you folks. We have a time limit. I am going around the table and Councilwoman Nakamura has a question. She will have the final question. The other pieces you have posed we can check the narrative in the past testimony, so let us move on to your next question. April 20, 2012 Prosecuting Attorney pg.39 Ms.Yukimura: Thank you. Ms. Iseri-Carvalho: Mr. Chair, can we... Chair Furfaro: Let her finish her question. Ms.Yukimura: I would like to know about your diversion program where you are showing doubling. What does that involve, your diversion programs? Ms. Iseri-Carvalho: I am sure you are going to send that in writing. Chair Furfaro: We can. Ms.Yukimura: I would like to know what the programs are. Can you tell me what that program is? Ms. Iseri-Carvalho: We have 4 diversion programs. Ms.Yukimura: Okay. Ms. Iseri-Carvalho: We have P.O.H.A.K.U., we have Teen Court, we have Drug Court, and we have Mental Health Diversion. Chair Furfaro: We will send that over as a written question too. Ms.Yukimura: P.O.H.A.K.U., Teen Court, what were the other 2? Ms. Iseri-Carvalho: Mental Health Diversion and Dru g Court. Ms.Yukimura: Okay. Ms. Iseri-Carvalho: Chair Furfaro? Chair Furfaro: That was your last question, Vice Chair. I am going to recognizeCouncilmember Nakamura who has been asking to be recognized. Ms. Iseri-Carvalho: If we could just indulge, we have the promotion ceremony that we have committed to and it is 2:45 p.m and it begins at 3:00 p.m. Chair Furfaro: She has the last question for today. We will send over other questions. Ms. Iseri-Carvalho: Thank you. I appreciate it. Chair Furfaro: Councilmember Nakamura, you have the floor. Ms. Nakamura: One of the challenges you mentioned the elimination of the judiciary's intake service center and it is very concerning to hear about this, the lack of funding for this service and I wanted to...it seems like there is a gap here, and I was just wondering what is, how are you looking to fill that gap?What is the strategy? Ms. Iseri-Carvalho: Well, with the Judiciary, they actually stopped community service on Maui, this is now their second year already. What we will almost necessarily find is you April 20, 2012 Prosecuting Attorney pg.40 are going to get a separation of the haves and have nots. People who are able to pay for the fines will be able to have that in lieu of incarceration, and people who are not able to pay their fines are going to be incarcerated because that would be the only option available. That is why we were trying to look into creation of diversionary programs so we could allow these persons to get back into the community. We did, it is not so much that it got, maybe I do not know if Jake could have worded it better...Intake which is a section of Department of Public Safety, is totally separate because the Department of Public Safety deals with actually convicted offenders, who are not on probation. So people that go to the jail and they are like the counseling service or pre-trial which means people charged with an offense. They are not in between. Usually it is a probation officer in between that monitors community service etcetera, and so for a long time the intake center, Tarrus Matsumoto, used to be the person that handled it. He had a case load of over 1,100 at one time, for just one person.And so finally, the Department of Public Safety said we need him to do intake 100%; which is do pretrial bail reports and focus on the sentence felons, and the job of community service should be with the Judiciary which has supervision over the probation officers. So it is 2 separate entities — Department of Public Safety and Judiciary. You know I think that I would prefer to, of course, invest in personnel so that there will be a lot more monitoring and that is why when we started off with our diversionary program, which was P.O.H.A.K.U., we got buy ins from the jail, and from intake, and from the court, from the probation officers, etcetera, because they knew, we were told a year ago when Maui had stopped doing their community service that this was also going to happen on Kaua`i. That was the strategy, to try to provide an alternative program so we could have community service still be an option for certain types offenders. Right now the judiciary says that, when I talked to the Judge Senda that they are trying to convince the State that this is a necessary program and it is great for not only the judiciary, but for offender and as well as the community. Their budgets have been cut also and I believe they have been advocating to retake over the community service branch, but that has not taken place and has not taken place even in this budget. Ms. Nakamura: I really see that as, not just a public safety problem or judiciary,I think it is a community problem if we do not all work together to try to figure out what we do for Kauai. So I hope this will be the subject of future communications with your office. Ms. Iseri-Carvalho: Yes, yes, definitely. We value the community service program a lot, and so does the nonprofits because a lot of their funding had got cut, so alot of the work was being substituted by persons that were sent from judiciary to do community service at these nonprofit agencies that had gotten funding cut. Right now they are in really dire shape because they also lost an opportunity for free labor and services from the judiciary, and they worked out a lot. There were many instances where people had done community service that actually got hired at the jobs because where they had done, because they had seen them work for 4 or 4 months. So it really lead to, I mean these offenders becoming contributing members of society and actually getting job opportunities by getting their foot in the door, even with the County and working with community service. So that opportunity is also lost, that on-the-job training aspect is also, and incidental cost when we do not have the community service program available. Ms. Nakamura: As a follow up, do you think if the State does not fill in the gap at the judiciary level, that it is something the County should step up to? G Ms. Iseri-Carvalho: Definitely. I mean we have been trying to, like I said, even for funding, and teens, and working with the Office of Youth Services because there is Kaua`i especially with the juvenile section, has one of the highest amount of persons that are relative to the population that are housed at HYCF because we do not have the intermediary types of programs. That is a L. concern and so they offered to give us money to provide these kinds of juvenile diversion programs, to allow the people to stay on Kauai, and work and get back into the community, as opposed to being Fi la April 20, 2012 Prosecuting Attorney pg.41 housed at HYCF, which is a youth correctional facility on O`ahu. They are not able to get services because they are sent there only for short term, so 90 or 120 days will not allow the youth facility to provide the services they need. And so they have actually gone out to us saying "can you come up with diversionary programs," because otherwise we are paying $127.00 a day for each person that is housed in prison; $51,000.00 a year. A lot of them are non-violent. A lot of the people that we currently have in HYCF are not felons. They are misdemeanors and runaways, and we definitely as a community need to stand together and say we are going to take care of our own ohana, we are going to take care of these runaways, or these status offenses, or the truants that do not go to school. That is where a huge gap is at the level of services to provide to these kids, and you see it in the paper.We have a missing runaway child almost every week.A lot of times, unfortunately and a lot of times there have been more than several occasions when runaways, that is all they have, are being housed at youth centers. The one thing you do not want to do is mix low risk and high risk offenders together, because then the low risk offender becomes high risk. So we are definitely not doing as much as we can and want to do. Ms. Yukimura: I have a procedural question. Chair Furfaro: You have a procedural question? Go ahead. Ms.Yukimura: Mr. Chair, as you probably have learned, we were stopped from any discussion of questions on the P.O.H.A.K.U.project, and I think it really interferes with our ability to do due diligence on a budget item. I want to ask the...well, I want to have the County Attorney up once more but I also want to ask that we reschedule a hearing so that if in a week this is cleared up, that we can have a rescheduled meeting so we can ask questions on the program. Chair Furfaro: Okay. I heard your question, I am not going to give an answer now. I will give an answer when we get back in order.You will hear from me shortly. Mr. Bynum. Ms. Iseri-Carvalho: Mr. Chair, can we leave? Chair Furfaro: You can leave. Ms. I Seri-Carvalho: Okay. Mr. Bynum: I just want to say that we had 2 hours scheduled for this budget hearing. We did add time some time this afternoon. The Prosecutor... Chair Furfaro: Excuse me. I just want to make sure the questions will come out like with other Departments. I expect to have questions sent over and turn around at the end of business on Tuesday. Ms. Iseri-Carvalho: Yes. (Inaudible) Chair Furfaro: Just put a line in there "more research needed" or something. Ms. Iseri-Carvalho: (Inaudible) Chair Furfaro: Okay. Do the best you can to turn them around. I appreciate that. Sorry, Mr. Bynum. Go ahead. Mr. Bynum: During the presentation today there was a lot of delays, a lot of recesses. The Prosecutor's Presentation was over an hour long. I have based on her presentation a April 20, 2012 Prosecuting Attorney pg.42 whole other list of questions I would like to ask, so I would like there to bea call back session for this, for the Prosecutor prior to decision making. Thank you. Chair Furfaro: I understood that question. Okay.Vice Chair Yukimura. Ms.Yukimura: I would like to ask County Attorney to come forward please. Chair Furfaro: Al, may I beg to indulge because I have members leaving, and I want to say while you are in the room. Please come up and identify yourself, and I want to reflect on something that happened earlier. AL CASTILLO, JR., COUNTY ATTORNEY: Council Chair, Councilmembers, Al Castillo, County Attorney. Good afternoon. Chair Furfaro: Al, I want to do this for a benefit of my colleagues at the table, and I have experience on this piece with the Ethics committee, and some decisions they have made for me. Those decisions imply that if I was a director then I needed to recuse myself as a decision making member of the board. They applied with me for my 8 years as Treasurer with the Salvation Army. They applied that because through there we got food subsidies for our Kokua Kitchens. They made that determination for me as it covered my role as President of Habitat for 9 years, because we got County funds dealing with the sewer system. They implied the same with Leadership Kaua`i because some of the County people came for training in leadership that were scholarship funded by the County. As President of the Historical Society for several years, we had a rent subsidy for the location. But the key part for their conversations with me of which I then submitted my resignations, that I was a director. I just want to make sure I said that because I would encourage as the question was raised to today, for an opportunity to go back and revisit that. I just want to share some continuity. Now that was a few years ago but the question was, was I an Officer or Director, and to me that was the key that I got. Now on that note Vice Chair Yukimura, I thank you for the extending me the courtesy and you have the floor. Ms.Yukimura: So I had a chance to think about your, I am not sure it is a ruling, but anyway, your direction for this morning's prohibition to ask questions about the P.O.H.A.K.U. project, and I would like further clarification. It is inconceivable to me that a Department Head giving testimony on a budget would need a County Attorney, or any attorney to advise her, and not having one would then not allow us to ask questions based on public information on a subject that she herself provided information on. Can you please explain what legal basis there is to stop the conversation? Mr. Castillo: Let me get this statement and question correct. Whether or not it is inconceivable on your part, Councilmember Yukimura, the... I did not want to interrupt your question. In terms of the legal analysis and my recommendation this morning, you know, to me if this body wanted to go into executive session on an unanticipated event then we could. But for me, I got to be really cautious and conservative on the call where I did make my recommendation when at that time Councilmember Rapozo had the gavel. Questions can, questions can be raised. I understand that there were things that occurred in the presentation which gave rise to the fact that questions could be anticipated to be raised regarding what was presented. Instead of any witness here or Department Head in any situation when there is some exposure to the County, or County personnel, you would have a County Attorney here giving opinions or giving a recommendation or legal advice to the person sitting here on whether of not that person should or should not be answering the question. So instead of getting into that position I thought it was appropriate. The call was made this morning and I thought it was an appropriate call, but whether or not what I thought...I was not the Chair at the time. To me, what you are saying is you wanted to ask questions and what is wrong with that? April 20, 2012 Prosecuting Attorney pg.43 Ms.Yukimura: I do not... Mr. Castillo: That is why... Ms.Yukimura: To project the County, that is one thing, but a personal attorney is another thing. I do not understand why that is necessary for a hearing for a Department Head. So you are there to protect the County and any of us can be called on that. Mr. Castillo: Yes. Ms.Yukimura: So what are the grounds for stopping a conversation because the Prosecutor does not have an attorney to advise her? Mr. Castillo: And without violating any of my client's rights to me... Ms.Yukimura: Your client meaning the County? Mr. Castillo: Well, it would be 2 right now because what I have to weigh would be the County, the County Council, and the Prosecutor's Office. Ms.Yukimura: Her personal rights? Mr. Castillo: Her personal rights or the Office's rights, her personal rights, Jake's rights... Ms.Yukimura: You are advising them on their personal rights? Chair Furfaro: Hold on. Some of us are trying to follow this discussion. When you both are talking I cannot follow it. Mr. Castillo: I am sorry. I strongly suggest that I would be more open and free to answer your questions freely without compromising anyone's rights and if you would like an answer we could go into executive session because it is an anticipated event. Ms.Yukimura: Chair, could we go into executive session? Chair Furfaro: I want to know if we can go into executive session but I have one member leaving due to another appointment, and I just sent the other member to go represent me at the Police Promotions because I responded I would come. So we will be down to 4 members here shortly for Liquor and Rransportation. Mr. Bynum, you have the floor. Mr. Bynum: I think that an executive session would be appropriate and I am prepared to make that motion. Mr. Castillo: Councilmember Bynum, as far as I am concerned an executive session now as well as an executive session, we do have one scheduled for P.O.H.A.K.U. so I just wanted to throw it out there. I would be able to answer this particular question regarding the set of circumstances that occurred this morning today. Mr. Bynum: Mr. Castillo, I am sorry. Chair Furfaro: I want to make sure, with 6 members here if we go into executive session it is a super majority and it will call for 4 of 6 votes or 5 of 7, am I correct?We need 5? Okay. Mr. Bynum, I just wanted to get that clear. Mr. Bynum, then Council Vice Chair Yukimura. . April 20, 2012 Prosecuting Attorney pg.44 Mr. Bynum: I think extraordinary things have happened in the last few weeks to avoid the public have knowledge, and I have no faith that we will ever go into executive session on these issues. Mr. Castillo: I am prepared to go now. Mr. Bynum: I am too. Chair Furfaro: Vice Chair Yukimura. Ms.Yukimura: It seems important to clear this up now because if we have to do postings for callbacks, if we could get the issue cleared up that would be very helpful. We have to do the sunshine law requirements of notice, to wait to next Wednesday would push things further back. Mr. Bynum moved to convene in executive session, seconded by Ms.Yukimura. Mr. Rapozo: Mr. Chair. Chair Furfaro: Give me a moment. Being that this was unanticipated, that would qualify us to go into executive session? Mr. Castillo: That is correct. Chair Furfaro: Thank you. Okay. Mr. Rapozo. Mr. Rapozo: Mr. Chair, I have been on the Council now his is my eighth year, I have never...in our normal agendas we have a posting that allows us to go into executive session should something come up; that is not existent today on our agenda. Which means we would have to declare an emergency meeting, that is how I read the statute. On any agenda whether it is a Committee or a Council agenda, we always have that emergency posting. Should something arise in the meeting...we do not have that in the budget meeting, so we are not subject to that. We are subject to 92-8, which is an emergency meeting - if a board finds that an imminent peril to the public, health, safety, or welfare, requires a meeting in less time than is provided for in the Section 92-7, which is the 6 days, the Board may hold an emergency meeting provided that 1) the Board states in writing the reasons for its findings; 2) two-thirds of all members to which the Board is entitled, agree that the findings are correct and emergency exists; 3) an emergency agenda and the findings are filed with the Office of the Lieutenant Governor or the appropriate County Clerk's Office, and in the Boards Office; 4) persons requesting notification on a regular basis are contacted by mail or telephone as soon as practical. If an unanticipated event requires a Board to take action on a matter, remember, it requires the Board to take action on a matter over which it has supervision, control, jurisdiction, or advisory power within less time that is provided for in 92-7, which is the 6 days, to notice and convene a meeting of the Board, the Board may hold an emergency meeting to deliberate and decide whether and how to react in response. And again, the Board states in writing the reason for its findings. So that is the 2 parallels. One, if you do not have a meeting; we are not in a meeting, if something happens a hurricane, we need emergency funding, we can do it. If during the course of a regular meeting like we have today there is a supposed unanticipated event that requires us to take action, we can go into executive session, we can call an emergency meeting; that does not exist here today. We have an executive session meeting posted in a week and a half. We are done with the Prosecutor's Office, if in fact we repost an agenda for the budget, it is going to require 6 days. We can April 20, 2012 Prosecuting Attorney pg.45 move up the executive session for 2 weeks in 6 days if we choose to, so this emergency meeting, emergency executive session are reserved for very, very rare circumstances, and I believe the only one that we had in my whole career, and I was not even present, Mr. Chair, you were here, I was in Las Vegas, when we had to have the emergency funding for the storm. That was done, so obviously I am not going to support emergency meeting for this object. The discussion is done. There is no action to take at this point. It is for information, so that is my position, and if I am wrong, Mr. Castillo, you can correct me. Chair Furfaro: Let me pose that question to Mr. Castillo, as it relates to a emergency executive session in relationship to definition in HRS. Mr. Castillo: I know exactly what section Councilmember Rapozo is alluding to and that is not what is applicable here. This is an unanticipated event regarding...it is within the agenda item and it is specific to the facts and circumstances that arose today which were unanticipated. So therefore, there is sufficient for determination of an unanticipated event. If you have two-thirds, of the members present you can go into executive. Chair Furfaro: So I got that part right. We have 6 Members present. I need 4 votes. Mr. Castillo: Yes. Chair Furfaro: If the motion comes up? Mr. Castillo: I thought it was 5. I am sorry. Chair Furfaro: A super majority of those present is 4 of 6. Mr. Castillo: Yes. That is what I read. Chair Furfaro: Okay. Good. Vice Chair Yukimura, and then Mr. Bynum. Ms.Yukimura: So all we are trying to do here and to get...by getting the Prosecutor's Office in a callback is budget information for a budget decision. I do not know how and why people could be against that. This is a decision we have to make. I do not of any, we have not been given any good reason why we should not be able to get that information and do our job.All this thing is going to do in executive session is to get some clarification about that. It is a very logical and reasonable thing to do. It is not going to, we are not going to make a decision so it is not like right now, but we need to have this information, and it did come up at this meeting about an agenda item on this meeting. Chair Furfaro: Okay. Mr. Bynum, and then Mr. Kuali`i. Mr. Bynum: Wednesday we had executive session posted and I heard, my memory, Deputy County Attorney Mona Clark say that it was for a briefing to provide information to the Council to make informed decisions that there was potential liability and delays could exacerbate that liability concern. I just said I think extraordinary measures have been taken to keep the public from getting some information, and to use a sport's analogy, it is like let us play out the clock. That has been one of the tactics that has been used, it is like let us run out of time. What an executive session will do is put that discussion on a record, maybe not a public record, but where people are held accountable for the questions they ask and the answers. I think we should do that and quit playing these games and serve the public. April 20, 2012 Prosecuting Attorney pg.46 Chair Furfaro: I have to say, Al, I take alittle offense to that. I do, Tim. Earlier you said "if we ever get to there" and I deferred that after hearing from 3 of your attorneys. My tendency today is to vote for the executive session but I want to make sure at the time hearing from Jennifer Winn, Mona, I asked questions about the standings of certain people and so forth. I also heard from an attorney that asked for more time to respond to some Q & A. That is the reason for the deferral, to be impling that I plan to get there in 2 weeks and I plan to vote for it today if that is what needs to be done. Unfortunately, I am short of answers from the morning session but I am prepared to go into executive session. Mr. Rapozo. Chair Furfaro: I am sorry, Mr. Rapozo, Mr. Kuali`i had his hand up. Go ahead. I am sorry. My apologies, sir. Mr. Kuali`i: Thank you, Mr. Chair. Like you I think it is not useful to make comments like "quit playing these games" and to try and misrepresent who is concerned about being open and transparent to the public and who is not. I think that this matter does not rise to the level of critical importance where we are actually making any kind of decisions for us to have to go into executive session now, and for of all things to talk about possibly talk about the P.O.H.A.K.U. program which we did not talk about during the whole budget process at the advice of the Attorney. The P.O.H.A.K.U. program is going to be in an executive session and posted appropriately according to the Sunshine Law and being transparent to the public very soon, coming up next week. As far as the budget goes and us collecting information, we are not making any budget decisions until well after we get whatever information we still need to get and have from the fellow Councilmembers in that executive session next week Wednesday. So I see no reason to support an executive emergency session that rises to a level that has never been before today. Thank you. Chair Furfaro: Okay. Mr. Rapozo, you have the floor. Mr. Rapozo: Mr. Castillo, this whole controversy of P.O.H.A.K.U., I do not know if you can answer this, but it was generated from I think from the Council. If you cannot answer that is fine. This whole, there was a reference to a toxic environment earlier, but yet comments made by a couple of my colleagues were very toxic to encourage that environment which I totally really am frustrated with. More importantly like the Chair and Mr. Kuali`i has said, we are accused right now of playing games, stall tactics, and running out the clock when it was, again as the Chair has stated it was under the advice of Deputy County Attorney Jennifer Winn to defer the item; it was not a Council sponsored or solicited action. It was a request from a Deputy Conty Attorney that we in fact defer that item for 2 weeks, which is what I am supporting. It is not a tactic, it is not ( a... ( Mr. Castillo: Can I reply? Yes, Jennifer Winn came here on behalf of the the Prosecutor's Office, to request a deferral. Whatever Ms. Winn did or Mona Clark did really it is besides the point. Going into executive session today basically has little to do with the P.O.H.A.K.U. program. The question that was posed to me is: Why can we not discuss this?Why can I not ask this question? It is hard for me to answer those questions and give you legal advice without violating the, I guess my duty to my other clients. That is what I want...so the executive session is for the benefit of you and for the benefit of me, nothing to do with the... Mr. Rapozo: I just have a follow up, Mr. Chair. Chair Furfaro: I just want to make something real clear here. When I reference your attorneys to the body and my colleagues here, I know who is representing who. I did not say she was representing your Office. I understood she was allocated to Ms. Iseri-Carvalho. That particular representative asked for the 2 weeks. I am a fair and reasonable man. I gave it, but as I was absent from this morning and many issues came up, maybe I am prepared if there is a motion April 20, 2012 Prosecuting Attorney pg.47 on the floor to go there. But I want to make sure it is understood I knew who was representing who. Mr. Rapozo. Mr. Rapozo: If that is the case then the request that was requested by Councilmember Yukimura, she wants to know what is the legal basis for ending the conversation on that program, that is what I heard and that is what you just defined. It has nothing to do... Mr. Castillo: This morning. Mr. Rapozo: Right, this morning's concern that based on advice from you I did not allow any discussion on the program. If the question is merely - I want to see the legal basis, can that not be done in a written request? Can that not be done...I guess and I want to hear it from my attorney now, what is the imminent cause? What is the difference if we get the answer today, which I do not know how you are going to do it if you do not have the opportunity to do the legal analysis. That is my question.What is the imminence that we need to do ittoday? Mr. Castillo: It can be done both ways as you know. Mr. Rapozo: The question was, what is the imminence? Mr. Castillo: That is where you decide on your vote. Mr. Rapozo: And that is why, because the statute requires imminence. We cannot just go into executive session because we forgot to post it.Am I correct? Mr. Castillo: It is an unanticipated event that if someone wants... Mr. Rapozo: Exactly. But the level of standard to do something of this nature, because we are going to set a precedent today, that if we do this today, everytime I believe we should go into executive session I am going to expect us to go, which is not the reason for an executive session. Mr. Castillo: The vote is up to you. Mr. Rapozo: Right. Thank you. Chair Furfaro: it is now a quarter past three. I would like to call up Liquor if I can, so I can reschedule them to another day. My mutual agreement, but I need to call him up. What time is available to us for Tuesday?Director can you introduce yourself? ERIC HONMA, DIRECTOR, LIQUOR DEPARTMENT: For the record I am Eric Honma. Mr. Chair, I believe you have a request? Chair Furfaro: Yes. I would like to ask, since we have posted an opening at 1:30 p.m. on Tuesday, 1:30 p.m. to 2:30 p.m., could we go into recess on the Liquor agenda item and ask you to return to us Tuesday at 1:30 p.m.? Mr. Honma: Tuuesday at 1:30 p.m.?I believe my calendar is open. I will go back to the office and confirm and then send a message to the Council Staff. I will comply with your request, Mr. Chair. Chair Furfaro: Thank you. So, Eric, we are going to wait to hear from you and then I am going to take a vote to recess until Tuesday. Mr. Castillo, can you come back? April 20, 2012 Prosecuting Attorney pg.48 Chair Furfaro: Vice Chair Yukimura,you have the floor. Ms.Yukimura: Mr. Castillo, I do not know what reference there is in the law to an emergency that rises to any level. I am looking at the law and it says a board may hold an executive meeting closed to the public upon affirmative vote, taken at an open meeting of two-thirds of the Members, and it shall be limited to matters exempted in 92-5, and the reason for the meeting shall be publicly announced. In the OIP's Sunshine Law diagram, can a board convene in executive meeting to talk about subject "x," the question is is subject "x" on the agenda, and if it is not, was the executive meeting unanticipated, and if it was unanticipated, that two-thirds of the Members vote in open meeting to convene the executive session. Mr. Castillo: And you are referring to 92-7? Ms.Yukimura: Right. 92-4. Mr. Castillo: Well, under Chapter 92 you are permitted provided that you vote in this case, 4 out of 6. Ms.Yukimura: All this talk about standard of emergency, I do not see any language to that effect. It was mainly, was the meeting unanticipated. Mr. Castillo: Yes. Ms.Yukimura: Which in this case it was because it did not come up until this morning. Mr. Castillo: Yes. Ms.Yukimura: And our purpose is not to talk about the P.O.H.A.K.U. project, that is scheduled for next week. Our meeting is to talk about your ruling that was given today that stopped us from asking questions. Mr. Castillo: You wanted clarification. Ms.Yukimura: That is correct. Mr. Castillo: I felt it was more comfortable for me to do it in executive rather than on the floor. Ms.Yukimura: Because you are advising your clients? Mr. Castillo: Yes. Chair Furfaro: This is the third time I heard the same answer from the County Attorney. We are the clients, you are our adviser, so I am going to give you a chance, Mr. Kuali`i, and then I am going to call for the question. Mr. Kuali`i: Mr. Chair, would it not be just as simple to take a recess and let the Vice Chair Yukimura talk to the Attorney and get the answer she wants? Otherwise, let us just vote and regardless of who decides, who feels it is not rising to the level of critical importance or not, ultimately a vote will decide whether we go into executive session so that Vice Chair Yukimura April 20, 2012 Prosecuting Attorney pg.49 can get the answer to her question. If not, she can still get the answer by talking to the Attorney. Thank you. Chair Furfaro: I am not going to recognize you, Vice Chair Yukimura. I am going to call for the question. This will be a roll call please. The question is on advice of the County Attorney we are allowed to go into executive session for clarification on a subject matter that came up that was unexpected. Let us start the role call please. The motion to convene into executive session was then put, and failed by the following vote: FOR CONVENING: Bynum,Yukimura, Furfaro TOTAL—3, AGAINST CONVENING: Chang, Kuali`i, Rapozo TOTAL—3, EXCUSED & NOT VOTING: Nakamura TOTAL— 1. Chair Furfaro: We do not have what we need. Mr. Bynum, for the record before we take a tape change I want to so note I received notice of Mr. Bynum of his intention to depart for a previously scheduled appointment. There being no objections, the budget hearing was in recess at 3:24 p.m. 1 April 20, 2012 Elderly Affairs p.1 The departmental budget reviews reconvened on April 20, 2012 at 12:03 p.m., and proceeded as follows: Excused: Council Chair Furfaro Councilmember Nakamura (12:45 p.m.) Mr. Rapozo: Agency on Elderly Affairs. So if you could introduce yourselves for the captioner and you can proceed with your presentation. Do you have a PowerPoint? You may proceed. KEALOHA TAKAHASHI, EXECUTIVE AGING: Mr. Rapozo, Members of the Council, aloha. With me is Azi Tuturici,Accountant. I I want to thank you for this opportunity to review the Agency on Elderly Affairs budget for 2013. There are three (3) business items that I will cover in my budget presentation. First is to give an accounting of the a what AEA along with our service providers and volunteers accomplished since our last meeting a year ago. Second, to request to lease a vehicle, third, to give an over view of AEA's operating budget. First of all, if you would turn with me to my budget presentation page 1. I have incorporated the goals and objectives as stated if our four-year area plan for the periods of October 1st, 2011 to September 30, 2015 and for the viewers at home, the area plan is available on-line at www.Kauaiadrc.Org, so they can have access to that. Mr. Chang: Kealoha, would you repeat that one more time just to make sure the captioner has that information. Ms. Takahashi: It is www.kauaiadrc.org; it is our Kaua`i ADRC website which we have posted our area plan. Mr. Chang: I am sorry, if I can. Mr. Rapozo: Go ahead. Mr. Chang: Can you clarify what is AAA? Ms. Takahashi: It is an Area Agency on aging. Mr. Chang: Thank you. Ms. Takahashi: For No. 1 is to develop Hawai`i's Aging and Disability Research Center what we term ADRC to it is fully functioning capacity to service as a highly visible and trusted place where all persons, regardless of age, income, and disability can find information on the full range of long-term support options. I will highlight to you some of the objectives that we have accomplished within the year and item la, and part of our objective is to have 1,200 visits made annually on our website. We have accomplished, if you see in my report, in parenthesis I have included data as far as what we have accomplished the past year. So we have had 1,634 visits or "hits" as you would term, were made op our website, and for the periods from July 2011, to January, 2012. So that is remarkably a lot. April 20, 2012 Elderly Affairs p.2 Item le, 6,000 information referral contacts will be provided to elderly adults annually. We have accomplished 6,699 contacts were made, we served 1,223 older adults for that same period of July 1, 2010 to June 30, 2011. The next item lf, we conducted a minimum of one training annually for area agency on aging staff and partners on the development of ADRC, and we held a forum last year in May on the 26th inviting service providers and partners to review what ADRC meant and how we would proceed down the years. That is just some highlights on Goal no. 1. Goal no. 2 is to enable older adults to remain in their homes, with a high quality of life for as long as possible through the provision of home and community based services, including support for family care givers. In 2a, I just wanted to acknowledge our contractors or service providers that we have dealt with in the past year, and they are namely Alzheimer's Association, AND Consulting Services, Child and Family Service, Kaua`i Adult Day Health Center, Kaua`i Economic Opportunity, Inc., Nurse Finders, Senior Law Program, and the County Transportation Agency. Turning to the next page, item 2c, in our objectives, we stated that we would serve 800 older adults to receive home and community-based services. We served 1,670 older adults. Item 2d, 130 caregivers, including grandparents received support through home and community-based services. We served 137 caregivers, including grandparents. I want to go on to the third goal, which is to empower older adults to stay healthy, active and socially engaged using prevention and disease self management strategies. Item 3a, we had a goal of training 8 lay leaders, but for the year 2011 we trained 10 lay leaders;these volunteers who help with our Chronic Disease Self-Management Program. 3c, nine (9) Better Choices Better Health workshops will be provided, we provided six (6) workshops. 3d, 90 older adults will complete the workshops. There were 48 that completed. 3f, 175 elders participated in enhanced fitness classes. We had a cumulative total of 205 who participated; it is great. Further on I will show you a chart on how well they did the first month being in the program, as well as some of their comments that they have made to us. And 3I, 500 older adults will be engaged in volunteer opportunities through RSVP Programs; we had 524 volunteers. Goal no. 4, manage funds and other resources efficiently and effectively using person- centered planning to target public funds to assist older persons at-risk of institutionalization and impoverishment. 4a is to develop a hospital discharge planning model for medicaid eligible clients to streamline access to services in the community by the end of year 1.While our State Executive Office on Aging, they took the lead on this and adopted the Colman Model as the Hospital Care Transition Intervention Model. Item 4b, a minimum of ten (10) older adults who are discharged from Kauai Veterans Memorial Hospital (we partnered with KVMH) on the Westside to demonstrate this program hospital discharge program. And I am happy to say that we have started a program March 27 of this year and we have served five (5) clients already. April 20, 2012 Elderly Affairs p.3 Item 4d, 10 older adults who participate in the persons-centered planning each year during grant period. This is called the Community Living Program, where we give or provide funds for the individual or the older adult to purchase their own services. So it is really different from what we traditionally have been doing. To-date, we made 6 referrals. The referrals go to our State Executive Office on Aging, who has a Program Manager, she acts as Kaua`i's coach. So she in turn would come to Kaua`i and interview these referrals or families that we referred. We made 6 referrals and 4 are enrolled in the program. The last goal, goal no. 5, ensure the rights of older people and prevent their abuse, neglect, and exploitation. We started a program so it is just in the initial stages right now, so next year we will have a report on what we have accomplished. Just. to summarize on page 3 of my presentation some significant successes and achievements that we have accomplished this past year. Of course the Chronic Self-Disease Management Program which we term Better Choices Better Health, we completed again 6 workshops, and held a lay leader training with 10 people trained. Two (2) leaders were trained on O`ahu in the Diabetes Self-Management (it is a cross-training) and we have currently provided 1 workshop that was very successful. The second success of course is our enhanced fitness program, which is a low-impact strength-training program that focuses on balance, strength, endurance and flexibility. It is designed to help older adults reduce their risk of developing chronic conditions such as high blood pressure, osteoporosis, heart disease, diabetes, and depression. So we have a number of participants enrolled in the wait list as of January 2012. • And then we serve as I mentioned 205 participants and if you see on the next page, the chart, now this is a cumulative total of persons when they first started the program, their base line fitness check, and then after 4 months into the program, you see a an increase on what they can do as far as chair stands, significant improvement in their upper and lower body strength, their arm curls, and they up-and-go, they cut the number of seconds it took them to stand from stand the chair, go around the cone and come back to the chair and sit; really great improvements. What is really more complimentary to the program is what the participants have to say and if anything, they really first comment is, "I feel like I am getting stronger," second is, "this program encourages me to routinely exercise. It is fun to move to music. I love it," "I also appreciate the weight-bearing exercise, which I normally would not think about, it strengthened by arms," "the exercise makes me more energetic, I am hoping to get better numbers on my bone density," "great opportunity to exercise as a group, no matter how old the members are, they try to do their best, always a concern when one misses class" this is so true with the Kapa'a class. "We are like family, we laugh and share concerns," and the last comment is, "I am especially happy with my increased bone density." So it is really a positive program, and I am really happy that we are able to provide that to the community. Ms. Yukimura: How old do you have to be? Ms. Takahashi: 60. I think the median age, and I am guessing, is 77 or around there. The oldest one is in her 90's. The third item is our information services. We have a staff of 7, 5 community service workers who are out in the communities, they do a lot of home visits, along with Program Specialist who surprises the 5, and a Data Operator, a statistician if you will. They provide outreach services and I have a list of various places that they have done. What is really neat is what they were able to provide or identify 271 older adults. So on page 5 of course our RSVP Recognition Luncheon is a hit. We were able to provide recognition luncheon December 2, 2011. And then the next is our annual event, Older Americans Month, and I have provided you a flier with a list of nominees; we have ten (10) this year. This is the Older Americans Award Recognition is scheduled on May 8th, 2012 to be held at the Kauai Beach Resort. Older Americans April 20, 2012 Elderly Affairs p.4 Month is our chance to show our appreciation and support to our seniors, as they continue to enrich and strengthen our communities. This year's theme and I quote, "Never Too Old to Play." It encourages older Americans to stay engaged, active, and involved in their own lives and in their communities. This year's nominees you see listed is Florencia Balualua, Dorothea Dolly-Brierly, Martina Brun, Nancy Freitas-Fuller, Kay Hill, John Lydgate, Shirley A. Matsuo, Lauren P. Wade, David Walker, and JoAnn Watanabe; we have a great group. The sixth item is home delivered meals. Kaua`i Economic Opportunity serves as our provider for both home delivered meals and congregate meals. We serve 354 older adults and delivered a total of 52,038 meals. Now I also provided you a chart with the demographic breakdown of the types of people that we serve. I would like to reference on the targeting performance clusters one and two, it is two-sided, so if you turn to clusters 1 and 2 services. In the first column, it describes the categories we keep data for as we look at our older population. The first row is at or below poverty, low-income minority, rural residents, frail, 2 or more ADL, ADL's are considered activities of daily living which include: eating, dressing, bathing, using the toilet, transferring, and mobility. So if they have 2 or more areas where they need help, whether it is eating, dressing, bathing, using toilet, transferring, we keep that data and the staff makes an assessment to indicate what ADL's they are lacking. Going back to the targeted performance chart, you have limited English proficient, living alone, living alone in poverty, 75 years old and over. Now if you look at the end, those are the number of the population or number of seniors. The second column the U.S. Consensus, this is 2010 base line data, PSA refers to our planning service area and Kaua`i is PSA 1, older population. So the number of older population we have on Kaua`i totaled to 14,723, and of that population we have 92% that are at or below poverty, 100% of Kaua`i is considered rural residence. 37.7% are considered frail, 15.3% are limited English proficient, living alone we have 24.8%, and those are that 75 years old and older, 31.5%. So now if you go to the next column 3, you can look at the total people that we served. Any number of services, we served 1,720. And then you have the breakdown as I mentioned of the percentages of what that entails. So we served 58% that are 70 years and older. If you go all the way to column 7, to "home delivery meals," it describes to you out of the 354 people that we served, 82.5% were 75 years and older. And out of that 354, 40% are living alone; that is really high. And then you have the at or below poverty, 26%. So we looked at where we are really targeting the frail population in this case. The bottom row where it says, "Projected Unduplicated Individuals," this is per area plan on aging. We are looking at our goals that we say we are going to try to achieve. Our goal of 315 for home delivery meals we far exceeded that at 354 individuals that we served. On the back you have other services that are considered clusters 3 and 4 and it is transportation information, and referral, outreach, friendly visiting, telephone reassurance. If you look at the end it is the enhanced fitness class and it gives you a look at 57% of the enhanced participants are 75 years and older. Continuing with my budget presentation on page 6, I want to cover some of the challenges. Again, and for the past three years we have faced challenges with staffing. We lost our Planner; she retired. So then my second business item was really the wear and tear of vehicles is also really a concern. We have a majority that are female staff and our outreach staff, community service staff is all females. They have been at times left stranded on the road, and that is what we are requesting, not to lease a vehicle, to replace one. And so some of our planned improvements, we have the following two objectives. We want to improve on our maintaining the integrity of our client database to track and record accurate service utilization and expenditures and produce client demographic data that I have showed you. This was prepared by our newly hired staff, Lito Asuncion, who comes from the Big Island and was an April 20, 2012 Elderly Affairs p.5 employee with the Area Agency on Aging there; he comes with a wealth of knowledge, and he was able to provide this chart for me. Some of our up-and-coming initiatives, as I have mentioned the official start of the Kauai Care Transition Program at the Kaua`i Veterans Memorial Hospital, it started on March 27 of this year. This program uses the care transition intervention or what we term CTI approach. A successful evidence-based model designed to target high risk patients for hospital readmission, and reduce their rates for readmissions, and emergency room visits. With the assistance of a trained CTI coach, patients learn to better manage their care, so they recover successfully at home and remain healthy. Jan Pascual is our designated coach, who we have hired or contracted. The Kaua`i Care Transition Program is funded by Federal grants from the U.S. Centers of Medicare and Medicaid Services. The Federal funding is until September 29th. However, we are asking for an extension of the project period, because we started late in the year with our program. So we have some additional funding to run through September, and then hopefully State Legislature will continue funding this program. And then the third item of business is really to review our operating budget, if you have questions, on our operating budget, as you can see, you see diagrams from our 2013. There is a little increase in salaries and wages and that is just a slight increase. Salary and wages, if you look at page 7 in the middle chart, where you are looking at the comparison between 2013 and 2012, salaries and wages, there is a slight decrease only because of the new hires, and then it took us a while to get people staffed. So there is a little bit of savings. Of course benefits increased, and then operations stayed the same. And reviewing, we do not have any new positions, there are none. And currently we have Azi, who is retired, but we have since called her back as an emergency hire and we are glad we did get her to come back, because it straightened out our books. Then you have a listing of our positions, which is Federally-funded...State-funded. I thank you for this opportunity to share with you our budget for 2013, and hope to receive your support for just the new vehicle. Mr. Rapozo: Just a new car? Ms. Takahashi: Yes. Mr. Rapozo: Thank you. I will allow Councilmember Nakamura, because she has to leave early. Go ahead Councilmember Nakamura. Ms. Nakamura: Thank you, Azi and Kealoha for your presentation. You have a very lean budget here and you do so much good work in our community. I just wanted to, when we improve the quality of life for our elderly residents we improve the lives of everyone on this island. And so I really appreciate all of your accomplishments this past year, and I will be supporting your request for the vehicle lease. I think that is definitely something that is needed and I want, I am glad Ernie is here, because I said this last year and I am going to say it again this year, that the goals and objectives that have been outlined by the Agency on Elderly Affairs is probably the most well-written in the County that we have seen for the past two weeks. And the reason why is because you have very clear goals and you have measurable objectives, and that is one thing that is very inconsistent in what we have been seeing across Departments. I do not know who on the Administrative side, whose responsibility is to get to this point consistently, but I want to commend you. From our side, it makes it so much easier to understand very quantifiable objectives. And it shows how much you are progressing toward your goals. Thank you very much. Ms. Takahashi: Thank you. I appreciate that. Mr. Rapozo: Mr. Chang. April 20, 2012 Elderly Affairs p.6 Mr. Chang: Thank you ladies for being here. It looks like we need to unretire Azi on a regular basis. I just wanted to mention also that it is alarming that we have mainly a female staff and have them stranded on the side of the road is very troublesome. I just wanted to add that, because it is not like most guys, if you will, if there is a problem they might have some mechanical skills. So that is definitely an urgency. What is the primary reason and what position are we having the turnover with the staff challenges? Is it across the board or any particular, you mentioned you have turnovers? Ms. Takahashi: It is just retirements and then filling those positions, so have you that lag time before we start recruitment and hiring. Mr. Chang: I think I know what is on everybody else's Councilmembers' minds about the recruitment process, but I am not go going there. I wanted to ask you also, what is also unfortunate is the amount of seniors that are living alone. Is there a statistic that son, or daughter, or grandchild, because of economics cannot make it and they have to go abroad to find employment?Do we know what kind of situation arises from that? Ms. Takahashi: No.At this point, no. Mr. Chang: And the reason I say that is that my mom sadly recently fell, but she lives alone, she just turned 85, and she was pretty independent, up until recently. I would say thank goodness she fell at Longs Drug Store with people and employees and a block and a half away from the hospital. So this is actually saddening and alarming because you just never know when somebody falls, if they fall and they cannot get up, and they cannot get to a phone or what have you. So I wanted to see if there was a statistic on that and also the delivery of meals, is that seven days a week? Ms. Takahashi: No, five days a week. Mr. Chang: So often times, we may have those individuals sadly might not be eating over the weekend? Ms. Takahashi: Yes. Mr. Chang: Okay. Thank you for the great job you guys do for people who may sometime be forgotten. Thank you. Mr. Rapozo: Thank you, Mr. Bynum. Mr. Bynum: Thank you for your presentation. Thank you for all of your good work. The employee who retired after 32 years, is that Carol?Yes? Ms. Takahashi: Carol was the year before. It was Naomi Sugihara. Mr. Bynum: Naomi, right. I just want to recognize those 2 women for their years of service, Naomi and Carol Taylor, and Naomi Sugihara. How many vehicles do you have? Ms. Takahashi: Six. Mr. Bynum: Do you know what kind of vehicle you are getting with this lease? The County just recently bought Nissan Leafs, all electric vehicles with 100-mile on a charge range and alternative question, do your workers travel more than 100 miles in one day? Ms. Takahashi: The farthest, you have 2 points at Ha`ena and Kekaha. April 20, 2012 Elderly Affairs p.7 Mr. Bynum: That is about the range. Ms. Takahashi: Yes. Mr. Bynum: I have driven these vehicles in O`ahu and they are great, they are less likely to breakdown because of electric motors, so I hope that is considered because they have a huge long term cost-benefit, and the County is putting in the charging stations. So just something to consider.Your positions are SR-9? Ms. Takahashi: Yes. Mr. Bynum: My other question was, your Community Service Workers are SR-9? Ms. Takahashi: Yes. Mr. Bynum: That is the lowest paid positions in the County? Ms. Takahashi: Yes. Mr. Bynum: I would really like us to look at that, why an entry level park worker is paid higher. Ms. Takahashi: Yes, we are looking at that, thank you. Mr. Bynum: This is about equal pay for equal work. And I do not know what is involved. I have never asked this question before, but I have never known what is involved in looking at what constitutes such a low pay for people that I think are so important and... Ms. Takahashi: Thank you for bringing that up. That is next on my agenda. Mr. Bynum: I am going to ask Finance about that. Ms. Takahashi: Thank you. Mr. Bynum: How do we recognize a position and say this should have a better starting pay? Ms. Takahashi: Thank you. Mr. Bynum: I cannot think of a position in the County that is lower. I cannot even find any that are similar. For what it is worth I think that needs to be looked at. And then this new program sounds very exciting, and there is a note in there that says, "the funding lasts until a certain date, but it is a requirement that it continue." Ms. Takahashi: We are...the funding ends September of this year, we are looking into extending the contract with the State. The State in turn has to go to the Federal level and ask for an extension. And pretty much we may have it, I am sure,just to extend another year, so we can use the funds that we already have. April 20, 2012 Elderly Affairs p.8 Mr. Bynum: So you may have addressed this, but the health and fitness program was essentially a grant and then we picked it up with County funds? Is that currently the status of that ro ram? p g Ms. Takahashi: We also have additional...ARRA funds attached to it. We have funds from the Department of Health, CPPW. Ms. Tuturici: They are all ending this year, June 30th. So right now all we have starting July 1st, County money. Mr. Bynum: Is that in the budget to continue the program at its current level of service? Ms. Tuturici: It is $114,000.00 and it will barely cover it. Mr. Bynum: Barely cover it? Ms. Tuturici: Yes. Mr. Bynum: Because ARRA funds are going to run out, and CPPW has done so many wonderful things with the pot of money and I did not know it was year 2, but it makes sense, and that is not going to last either. I think it is a wonderful program. I always feel a little guilty when you came here because two years ago I wanted to visit the program and I never did. But I heard feedback from the participants other than what you presented. So I am so appreciative of your agency andtwo events that I get to participate in each year, RSVP and Older Americans are just very inspirational. So thank you very much for answering these questions. I would like to send a written follow-up question to the Administration about how did we determine that these community service workers were SR-9 and is there a mechanism to look at that and see if it ought to be bumped up at least to an entry level park worker, an entry-level park maintenance worker makes. Thank you very much. Ms. Takahashi: Thank you. Mr. Rapozo: Thank you. Councilmember Yukimura. Ms. Yukimura: Right on, Mr. Bynum. I was not even looking at that and it is something... Mr. Bynum: The Act that passed last year about equal pay. You know what I am talking about? Ms.Yukimura: Well, that is such a long standing issue that needs to be addressed and to think that we could address it in our County budget is really a wonderful opportunity. And maybe with a new Human Resources Department coming onboard, you will find more support, too. So I just want to say, as I said before the hearing started, it is such a joy to see the work of your Department so well-presented, and so well-documented, and as Councilmember Nakamura said, it is a model for all Departments. In our minds, because all the goals and objective mission statements come before us, and we really get a bird's eye view and the way you have laid out your vision and your goals and objectives and then report back in metrics, actual measurements, is very, very exemplary. So thank you and congratulations. Ms. Takahashi: Thank you. April 20, 2012 Elderly Affairs p.9 Ms. Yukimura: And also congratulations to staying close to the budget. You were the only one that did not have to abide by the imposition of that rule, that other Department Heads had to where they had to cut 25% of their overage, because you budget so well, year-over-year after. Excellent. So I could not find in the budget$114,000.00? Ms. Tuturici: $114,000.00. Ms.Yukimura: Yes. Ms. Tuturici: It is... have it on page 2, I do not know how your pages are numbered. It is 00143017043000. Ms. Yukimura: 30-00? Ms. Tuturici: Yes. Ms. Yukimura: I see, $114,000.00—Enhanced Fitness. Ms. Tuturici: Yes. Ms. Yukimura: And you said that ARRA funds end? Ms. Tuturici: The grant funds ended, CPPW ended May, we had one that ended in March and the last one will end May 31. So after that we are left only with County moneys until we hear from the State if there will be a Federal grant or not, or maybe a State grant. But at this point we have not had anything in writing. Ms.Yukimura: That amount will cover it for a year? Ms. Tuturici: This amount was set up so that between it and the grant it would cover it. Normally what we have done is used up the grants first and then we have expended this partially. So I do not know what this will do this year, because we have expended a little bit more. We have more classes. Ms. Yukimura: So let us see, so the grant that you are planning to use is likely, or pretty sure? Ms. Takahashi: We will not know until the ending of this legislation session with the bills attached to County Aging funding. Ms. Yukimura: The session ends the first week in May, usually, so you will know before we take final action on the budget. So if it does not happen, you need to let us know. Ms. Takahashi: Okay. Thank you. Ms. Yukimura: - And so this Kaua`i Care Transition Program, which is on page 6 of your report, that is something different right? Ms. Takahashi: Yes. Ms. Yukimura: And you say the Federal funding is ending September of this year? April 20, 2012 Elderly Affairs p.10 Ms. Takahashi: Yes. Ms.Yukimura: But you are expecting an extension through the State Office of Aging? Ms. Takahashi: Yes. Ms. Yukimura: Pretty sure for at least another year? Ms. Takahshi: We had a late start in their program. So there are still some funds that we have not expended and we want to be able to use up all the grant funding. Ms. Yukimura: Good.And regarding the car, I am appalled that there were situations where you were stranded or things were not working. So how can we prevent this prevent this from happening? You have your cars serviced regularly and you file reports when it does not work? Ms. Takahashi: Yes. Ms.Yukimura: You will not have that problem with a new car, for a while, hopefully, but I am just wondering how we can avoid using a car that does not work to your needs? Any ideas? Mr. Rapozo: What year was that car? Ms. Tuturici: 2002 or 2003. Mr. Rapozo: That is part of the problem, 10 years old and maybe a lot of miles. Ms.Yukimura: Ernie, maybe we are looking at abetter car management system? Lastly, your succession planning, you have lost two senior people and you have a pretty small staff, but I see ou are doing crosstraining.g c sstraining. Do you any particular needs that we can address budget wise, or do you feel that your crosstraining... Ms. Takahashi: No, we are okay, just the point that Mr. Bynum brought up about the SR-9s. I am looking into reclassification and putting that higher. Ms.Yukimura: Okay. Good. That is definitely an area for work and we support you on that. Ms. Takahashi: Thank you. Ms. Yukimura: Thank you. Mr. Rapozo: Councilmember Chang, you have a question? Mr. Chang: Thank you, Mr. Chair. Azi, you mentioned you have six vehicles? Ms. Tuturici: Yes. Mr. Chang: Now? April 20, 2012 Elderly Affairs p.11 Ms. Tuturici: Yes. Mr. Chang: aSo the one out of commission would have been seven or the one out of commission would be? Ms. Tuturici: Six. Mr. Chang: So the one out of commission was a 2002 or 2003? Ms. Tuturici: Yes. Mr. Chang: Do you know the ages of the other vehicles? Ms. Tuturici: I know we have an older one, 2001, and then the rest are much newer. We have lots newer the other four. Mr. Chang: So you know the condition of the one? I mean is the one in 2001, is that going to conk out in a couple of months or less than a year? Ms. Tuturici: Actually, that is in better shape. I believe it is a Sonata, and it is in better shape and ended up being a better car than this particular one, which was not good throughout the years. Mr. Chang: That might seem like one of the critical parts of the Elderly Affairs, so you might want to have a mechanic or somebody reevaluate the cars. It would not be good for something to happen within the next couple of months after this has been determined this budget cycle. So you may want to have a mechanic take a really good look. Ms. Takahashi: We have had great support from our Public Works. Mr. Chang: Good. Thank you. Ms. Tuturici: Thank you. Mr. Rapozo: Thank you.You have another one? Go ahead. Ms.Yukimura: I was interest in page 2. I think you were talking about this program when you talked about referring six people and getting four enrolled in the person-centered planning. Ms. Takahashi: Yes. Ms. Yukimura: Can you explain a little bit more about it? Ms. Takahashi: It is called the Community Living Program. We have funds now, instead of referring clients to our traditional services, meaning that we provide personal care and homemaker services through our contractors, like Nurse Finders. Instead of doing that for this client, what we do is we give them the funds, "x" amount of funds, determine not more than $700.00 or a monthly amount that they can use and purchase what they are in need of. Whether it is homemakers services, they go to any, or they can pay for their family member to help support them. So it is really a neat way of providing services that they are their own decision-maker or planning to how they want to use the funds. Ms. Yukimura: These funds come from where? April 20, 2012 Elderly Affairs p.12 Ms. Takahashi: Right now it is a Federal-funded grant and this is through our State Executive Office on Aging. It is part of the Aging and Disability Resource Center. There is a Hospital Discharge Planning grant, as well as a Community Living Program grant. Ms. Yukimura: Yes, you mentioned the Discharge Program earlier in your report. Ms. Takahashi: Yes. Ms. Yukimura: So how many people...ten? Ms. Takahashi: Ten. Ms.Yukimura: So it is like a pilot project? Ms. Takahashi: Yes. Ms.Yukimura: And you are experimenting with not doing planned referrals, but you are briefing them on what the services are that are available and making them eligible for certain amounts of money or determining their eligibility for a certain amount of monthly money is it? Ms. Takahashi: Monthly, yes. Ms.Yukimura: And then they are allowed to go hire their own people. And you have an evaluation process at the end? Ms. Takahashi: Yes. Ms. Yukimura: So how long has this program been working? Ms. Takahashi: We just started. Ms.Yukimura: You just started. So you will go for a year or two and see how it works and then is there a potential for expanding it? Ms. Takahashi: Yes. IIMs.Yukimura: I see, very interesting. Thank you. Mr. Rapozo: Go ahead, Mr. Bynum. Mr. Bynum: I am stuck on this, is your position covered under the salary commission? Ms. Takahashi: I do not know. I am sorry. Ms.Yukimura: Civil service? Mr. Rapozo: She is exempt. III Mr. Bynum: You are heading a Department? This is a Department Head position, right? „lo 'GIB April 20, 2012 Elderly Affairs p.13 Ms. Yukimura: Agency. Mr. Bynum: Agency head. Ms. Takahashi: It is a civil service position, but it is exempt, like Mel said and we operate under the Office of the Mayor. Mr. Bynum: I will follow-up, but I do not know why it would not be an EM- 5. I think it is the same issue for me. It is the same issue. Mr. Rapozo: That can be brought up with Finance. Mr. Bynum: I will. Mr. Rapozo: That is an awkward position for her to be in. Mr. Bynum: I will follow-up. Mr. Rapozo: I tend to agree. Is that it? Mr. Bynum: Yes. Mr. Rapozo: Thank you. I just have a couple of questions, and the first question and our resident vacant position expert left early, so Azi, when did you retire? Ms. Tuturici: July, 2010. Mr. Rapozo: July, 2010 and that position has been vacant since July of 2010? Ms. Tuturici: No, it was filled for a few months and then the person was discharged. Mr. Rapozo: So how long has the current vacancy been vacant? Ms. Tuturici: May, 2011. Mr. Rapozo: May of 2011, a year? Ms. Tuturici: A year. Mr. Rapozo: And when was the request, excuse me, when was the request submitted to Personnel, or has it ever been submitted? Ms. Takahashi: We have. Mr. Rapozo: When was that? Ms. Takahashi: I do not know that date. Mr. Rapozo: Not that I want to see you leave,Azi. Ms. Tuturici: The Department of Personnel did provide all of the information and when I came back, as an emergency hire, I saw the situation and I have been April 20, 2012 Elderly Affairs p.14 updating the records and it has been my choice, really, as far as telling Kealoha that I wanted to do this until all the records were fine. Mr. Rapozo: So we are not trying to actively trying to fill that position? Ms. Tuturici: Not right now. Mr. Rapozo: And then the other question is on your consultant services, your home deliver meals and in-home services, and one of the most valuable services that you provide, and year-to-date you have already spent over $200,000.00, but you are asking for $176,000.00? Ms. Tuturici: Can I take that? Ms. Takahashi: Yes Ms. Tuturici: What happened was that last year we ended the year with the contract not having expended the complete amount, and the difference between the $200,000.00 and $176,000.00 was to carry over from last year. So we are expending really $176,500.00 within a year's time. Sometimes we do get extra moneys from the State and therefore, we manage the moneys to use the grant funds first. Mr. Rapozo: So that is a sufficient amount? Ms. Tuturici: It is sufficient. Mr. Rapozo: $176,000.00 can provide you with your goal... Ms. Tuturici: 354.Yes, that is correct. Mr. Rapozo: And the only other comment is and I agree that the SR-9 rating, and unfortunately it is not something that you can control and has to be justified, but I am sure can be done. There are some SR-11s that are getting paid less than your SR-9, because the SR- 9, that does not determine the salary, that determines the range. Ms. Tuturici: Range, yes. Mr. Rapozo: And based on years of service. So your employees at the SR-9 level actually gets paid than some of the SR-11s in other Departments, and that is just the way it is based on seniority. I would definitely support the movement to get those SR's... it sounds like that is something that you are working on now? Ms. Takahashi: Yes. Mr. Rapozo: And that should not take too long. From what I heard from the Personnel Director himself a reallocation can take anywhere from a day to a few weeks, and then we have seen it take over a year. How long has the process been? Ms. Takahashi: They are aware of it. Mr. Rapozo: I know that. Ms. Takahashi: It is back in my court, I have to fix up some stuff. April 20, 2012 Elderly Affairs p.15 Mr. Rapozo: Well, let us know if you need hel p with that. I do not know if any other Departments have SR-9s. I was trying to look through the budget and it is kind of hard to find SR-9s. Again, that would be, I think, it is not even a reward, it is something that they are entitled to. It is not a freebie. Any other questions for Elderly Affairs? If not, thank you very much. Thank you for all that you do, and thank you again for the great presentation. Ms. Takahashi: We appreciate the Council's support. Thank you. Mr. Rapozo: And you are getting hybrid sedan. So that is cool. Ms. Takahashi: Thank you. Mr. Rapozo: Anyone in the audience wishing to testify?Azi's sister is here all the way from Miami, Florida so welcome and now you can go have lunch. We will be in recess until 1:30 p.m. There being no objections, the budget hearing was in recess at 12:55 p.m. April 20, 2012 Agency on Transportation pg. 1 The departmental budget reviews reconvened on April 20, 2012 at 8:45 a.m., and proceeded as follows: Excused: Councilmember Nakamura Councilmember Bynum (excused 3:15 p.m.) Council Chair Furfaro (excused 3:58 p.m. to 4:08 p.m.) Chair Furfaro: Aloha, we are back from recess. Before I call up Transportation, I have a couple of notices that I would like to recognize. The first one is I got a call back from Liquor, they are prepared to recess, which we asked them to recess, and they will be back in from 1:30 p.m. to 2:30 p.m. on Tuesday. I would like to have a motion and a second so that we can post them accordingly. Mr. Rapozo moved to defer the budget hearing for the Department of Liquor to Tuesday at 1:30 p.m., seconded by Mr. Chang, and unanimously carried. The second item is Mr. Chang has asked me for a moment of personal privilege, and I would recognize him. Mr. Chang: Thank you. I just wanted to say that today was a rather long day in many cases. Yes it is not finished, but I think everybody understands the point that I am trying to make. I am over here trying to do my best, analyze or study, I think I am the weakest guy in budget. For me, I am sitting here to be thinking about the budget and we have all this stuff flying around over here, and I just wanted to say that I was very uncomfortable, and it was very unfortunate. I hope we can show a little aloha all around the table, and I am going to be sitting here continuing on. Thank you. Chair Furfaro: Mr. Chang, I think you are a contributor to this Council much more than you give yourself credit for, and one of those credits I must give you is the fact that there is great value in living aloha and mutual respect. Thank you for your comments, we can move into Transportation. You can bring members of your staff right up, we have extra mics, we have extra chairs, we have extra work tables. I just ask you to introduce yourself, and we will go from there. Councilmember Nakamura went to represent the Council at the Police Promotions, so she will return when time allows. CELIA MAHIKOA, EXECUTIVE ON TRANSPORTATION, AGENCY ON TRANSPORTATION: Thank you. We operate under the name of"The Kauai Bus" and I wanted to thank you for giving us the opportunity to discuss our budget and the progress we have made over the past year, and the initiatives that we are taking on for the coming year. To briefly state our mission: To provide the Kaua`i community accessible transportation services with professionalism and the aloha spirit; which we are completed committed to and grateful for the opportunity to do so for the people of Kaua`i. We have several goals and objectives that we have listed here. I am basically going to guide you all through the budget presentation I have provided you for today. Just wanting to start out by listing out our goals and objectives and I will go into thorough discussion of what progress we have made for this year and what challenges we have faced in these areas as well. April 20, 2012 Agency on Transportation pg. 2 For goals we have bus stops that we are aiming to get sheltered. We continue on our quest to... Chair Furfaro: Excuse me, can I get one favor? I know you are doing a narrative, but I have an item to close quickly so I am going to give the meeting over to Mr. Rapozo while you give the narrative but I will be right back. Mr. Rapozo: Go ahead. Ms. Mahikoa: Thank you. So we continue on our quest to get bus stops sheltered this coming fiscal year. Our goal is to get completed construction plans for 46 bus stop shelters is what I included here, and to see if we can actually construct 6 bus stop shelters in this upcoming year. Another goal is to increase the alternative transportation availability on the island. Our first step is looking at ways to restructure existing shuttle service for better connectivity which I have staff who are already looking into the various ways that we can address this. And other ways to initiate agreements for bus pass sales at convenient locations. Another goal we have is Ke'e Beach Shuttle Service which is another one of our HoloHolo 2020 goals. There are so many variables involved in this and it has been an ongoing issue that we would truly like to find a way to address this, so we are looking at wanting to coordinate a service implementation plan this upcoming year,just so that we can do all the homework it takes in order to P p p gY ,J progress wisely in implementing a shuttle service in that area. The last item we have is revenue structure refinement. Part of this is tied into our current project with KCC, the pilot project we have with them. In the next few months we will be coming in with a bulk transit pass sales program proposal that we would like to have considered. That will allow us to not just offer KCC but any group of individuals, say like large employers and other large groups to be able to benefit from a bulk transit program where they would all buy bus passes in bulk. In addition to that will be based on the results of our Multi-Modal Land Transportation Plan which we are in. We are also looking at ensuring that our bus pass prices are aligned fairly with the per trip fares that we are currently charging the public. To go on to discuss our successes and achievements for this year we made just a little over a year of the expanded service that we implemented last year in February. We have been experiencing approximately a 30%, it was approximately 30% increase in our budget in order to implement that, and resulted in 49% increase in ridership over that year. We have a fixed route ridership and para-transit ridership charts that I have included in there that shows over the past 5 years the dramatic increase in ridership, primarily driven by the expansion but in addition to that during that period we have had increases in fuel prices as well in that July 2008 period and most recently again we are experiencing that. In addition to that for other successes and achievements we have also extended our weekday early morning service. Because of the growing ridership we had going to the North Shore in the morning, we had implemented an additional run out there. In the morning headed West we have on call service for the earliest buses that head out where people can call in and we will stop at those stops. That has been picking up some demand as well. April 20, 2012 Agency on Transportation pg. 3 In addition to that the Park and Ride Lot in Kilauea out at Aina'ainahou was opened up. That makes that sixth Park and Ride Facility we have;that is the park and ride facility we have that is farthest North. Before that the farthest we had was Kapa'a at the skate park. In addition to that we have gone to gone through Kaua`i Community College Pilot Project for 8 months now, and recently thank you through your action we were able to extend that through June 30 to where we are continuing our assessment of the ridership of the students there. Meanwhile, we are developing the bulk pass formula that we will present in order to be able to continue that with an agreement with the college and upcoming years. At the same time the student government is doing the work that it takes on their side in order to implement it as far as doing their homework to seeing what it will take to implement fees with the student body there and get that approved on their end as well. In addition to that, bus stop improvements that we have achieved this year in the accessibility area, we had ongoing contract for addressing ADA accessibility requirements at the bus stops. Those are the landing pads that we have for the persons who need to use wheelchairs at each of the locations whereby when the lift is deployed on the vehicle, it gives them a safe place to go off of the bus. We had, that contract was completed. It was a platform installation at 51 bus stops, and in addition to that there were 2 bus stops that included shelters. One was Kapa'a Neighborhood Center shelter. That is the one where the Kamehameha Schools Kali`imamo children had build that beautiful bench that we had installed there. The other shelter was provided at Kalepa Village in Hanamaulu. Those 2 shelters were completed. In addition to that, the progress that we have made on getting the shelter, the bus stop sheltered as far as our major goal that we are working towards, we were able to do a preliminary assessment of all of our 124 stops, and was able to determine that once removing those that are currently right next to some sort of existing coverage or others that we might consider moving in the future, we had come down to a believe it was 47 right now that we are looking at including in this contract which we are looking at awarding hopefully within the next month. That will provide us with the plans that will take to get to each area structurally prepared for the installation of the stops. Meanwhile we are also doing research on the types of stop shelters that are available. Once we have the plans set we will be able to go out to the public and get their input on what their preferences are in different areas. In addition to that, successes and achievements that we have also encountered this year is the work. . e made w ade significant progress with Multi-Modal Land Transportation plan to the point where they are just wrapping up the final parts of it right now. The consultant Jim Charlier and his team is pulling together the information that they got through our community meetings with the public, as well as all of the research that they have done, and are looking in the next month be able to present that for your approval. We also have this year the Free Ride Public Transit Promotion which we held, and I want to thank you all for your support and participation in that as well. That was from February 20 to March 10, very recently. As far as the rider ship and expense data we are analyzing that and will be including that in our annual report as far as the information on that. We have experienced an increase in revenue. The current fiscal year's revenue projection is looked to be about $780,000.00. I have a chart here that reflects the pattern of the revenue over the past 10 years. We are looking at projections for the next fiscal year to be approximately $800,000.00 in bus fares and past income. Some of the challenges what we have encountered come with the successes and achievements, and some of the challenges along with expanding service has been that the increase in service hours is also increased the frequency of vehicle service, intervals of repairs on II April20, 2012 Agency on Transportation pg. 4 the vehicles that needing to be handled by the repair shop that we have. We have recently received 7 vehicles that unfortunately replaced some of the oldest in the fleet. We have been able to maintain them well enough up to this point, so that it is not negatively impacting service to the public at this point. I included the fleet replacement schedule in my report on page 12.You can refer to that later. The service expansion has also increased the line staff manpower requirements as when we came in last year you saw the additional positions that we brought in in order to increase the service. What we are seeing is that it is also increasing demands administratively on the training element, supervision, follow-up, monitoring required to effectively maintain acceptable levels of service to the public. Transit use is continuing to rise and especially when the fuel prices are going up that it is picking up. That requires frequent reassessing of the routes that we have and we have reports of standing room only and I am needing to balance that so we can do whatever we can efficiency wise to implement steps so that it is not just automatically adding something. We try to restructure, use larger vehicles and do the best we can to use the sources that we have first. The latest services resulted in increased demand for lighting at bus shelters and bus stop locations so we are going to be addressing that as well when we are looking at the bus stop improvements for installing bus shelters. Later service has also unfortunately increased the number of incidents that our drivers are encountering with individuals who are out late and can sometimes be on substances that make things more difficult late at night. In addition to that, for our challenges with the Kilauea Park and Ride, we noticed a rather low usage in that location, and in discussing that with our consultant it is more of just the location and where it is right now based on where the population base is. In looking at the future development within Kilauea area and the discussions that have been going as the areas come in I can see that area being more in demand for the Park and.Ride service. So it is used, it is just not heavily used at this point. The Kaua`i Community College Pilot Project that we had providing the free transports, it has increased ridership to where it is standing room only. It has increased the incidents of standing room only in some instances increasing the demand for transportation. We have been consulting with Mr. Charlier as well for developing that amendment to the bus fare ordinance for strategies to address that with the bulk pass proposal that we are going to be coming in for. The challenges with sheltering the bus stops, I know when we came in last year we were very ambitiously wanting to take on building 5 shelters, but as we went in to the process and saw that it is not as simple as getting out there are putting a structure up, unfortunately we need to make sure that we are doing it right, that we are addressing the structural issues as well, making sure that we are addressing the Multi-Modal aspects of it including transitioning to existing facilities, sidewalks, and whatever structures that are currently there. So the learning curve is long unfortunately for us on this type of project so we have been doing our best to make progress on it and like I reported a few minutes ago that we hope to be awarding a contractor within the next month for getting the plans done. One of the challenges that we have had this past year has been with the hybrid bus vehicle, and you may note if you look in our line items that last year we had $60,000.00 for a hybrid lease, which I asked to be transferred to the regular vehicle match account. This is due to the fact that the hybrid bus ran great for the first year that we had it, and then last May it had stopped working, and we have been doing our best to get it repaired. Fortunately it is under warranty, so we have been { working with the dealer to get it repaired. On the island the knowledge base is rather limited right now for this type of vehicle, so I just thought it best to be able to use those funds as additional match for the grant funds that we have for vehicles. It would allow us to get 2 additional vehicles in our fleet. So that is why... April 20, 2012 Agency on Transportation pg. 5 Chair Furfaro: May I just ask you a question? Ms. Mahikoa: Sure. Chair Furfaro: The bus is under warranty? Ms. Mahikoa: Yes. Chair Furfaro: Okay. So is it not wise for us to document the fact that even if we have to house and fly a specialist over should we not be working on doing that before the warranty does expire? Ms. Mahikoa: Yes. The warranty has gone with it the failure happened and they have been working, it has not been working since so it continuous on under that warranty. However, they flew technicians over here several times... Chair Furfaro: They have? Okay. Ms. Mahikoa: I think it was a month ago we had to ship it to O`ahu, so it is on O`ahu right now and still awaiting the final repair. Chair Furfaro: I just encourage you to make sure all of those efforts are well documented so we do not reach the 100,000-mile expiration or 5 years, whichever comes first. It is like the Chrysler product, that is what they say. Thank you and I did not mean to interrupt you but it is important. Ms. Mahikoa: For that reason, I asked to move the $60,000.00 over to match and in addition to that I did not come in for additional funds in that line item this year. One encouraging thing that is happening with our Multi-Modal Transportation Plan is that our consultant is providing us with a fuel alternative analysis. That is going to be giving us guidance in the best way for us to proceed from here considering what resources we have available on Kaua`i and balancing all that out with what the recommendation would be for our operation from this point with existing technology and existing supplies here. For improvements that we have implemented this past year, we are always looking at ways to improve the service. Like I said we are moving within our resources to be as efficient as we can. We have been restructuring. When we look at routes that are having standing room only and such, we are looking at ways to address that with either, like I said larger vehicles, or trying to restructure the routes. Demand response service scheduling System Research is another item that we have been looking into. We had 2 members of our staff go observe the County of Maui system because they recently implemented a web based version of the system that we use for scheduling our para-transit rides here on island. We were actually able to see it in action and assess whether or not it is something that we should look into for our operation here. The Fleet Management Module is something that we implemented this past year, and we are still a few months into this. What it is is we have taken the existing AS400 system and I believe Public Work's shop has been on this system for several years now where it manages the information of their fleet on the system. So the beauty in that is just having an ongoing tracking of the work being done, the parts and labor involved in each of the vehicle repair that are taking place in our fleet. We have recently had our phone system upgrade and there are some challenges coming with April 20, 2012 Agency on Transportation pg. 6 that and working out the kinks. We are looking at what other special features might be available with that maybe with time so we can simplify the incoming calls from the public so that we can handle them more effectively. The upcoming initiatives that we have, again is getting our bus stops sheltered and I have gone through our efforts coming up with that. What is encouraging with this is the State Department of Transportation has been very supportive in this and they are working with us, they are going to be placing 2 bus stops fronting Kauai Community College. They are aiming to get that within this next several months. We have been working hand in hand with Planning and Public Works as well so that we are all on the same page when it comes to looking at the transportation needs of the island and trying to work together to get the changes done. There is one additional item that I have placed on there, on our budget, and that is a $25,000.00 for matching funds for GPS units for each one of our vehicles in our fleet. That is the matching funds for the grant that I had just submitted about a month ago. That was for $100,000.00 in attempting to purchase GPS units for all of our vehicles, trying to lay the ground work. Technology wise there are so many benefits that can come from just this initial investment. One being, and one of the most important is the security and safety of our bus drivers and particularly in the evenings. In addition to that we have customer service we can improve through more efficient vehicle routing, and when we have para-transit reservations we can see which vehicle is nearest to where the needs are at that point. We can reduce fuel cost through speed and idling reporting, we can address those areas. We can also monitor driver behavior and protect them from unwarranted complaints that may come in. We can gather extensive amounts of data and have reporting capabilities that are provided. One thing that is very important that we are setting as a goal to get to is able to obtain real time bus service information. Eventually we want to get to where we can activate something similar to Google Transit, where the public that is waiting at a stop they know exactly where the buses are. So this initial investment would open the door to all of these benefits. One initial initiative we are taking on this year, which you have heard the Mayor announce, is the small equipment repair and maintenance for the County. We are looking forward to taking on that, and integrating it in to our repair shop in an effort to improve efficiency and effectiveness in the small equipment repair and we want to contribute to that effort and do our best to implement that. We have already met with the Public Work's shop, with Dwayne, and he has been very helpful in providing us good information on his existing systems, and just his thoughts maybe sharing with us on what would be good ways for us to implement the transition over to our system. We are looking at meeting with Parks & Recreation, the gentleman that performs their repairs right now as well as his supervisor, we are looking at meeting with them next week and seeing how their operation function and how we would be able to integrate that as well. Chair Furfaro: I cannot help it, I have a lot of questions in that area, and I know you have...So we are increasing bus service to the County of Kaua`i, and the repair and maintenance of bus equipment and bus services could be become more frequent, more normal servicing, tire rotation, battery changes, but instead of you getting more people, you are taking on small equipment. Is that what I am hearing? Ms. Mahikoa: Actually it comes with people. Will be transferring Parks and Recreation gentlemen over to our operation, and then there is a position within Public Works, I apologize, I do not know the exact position but it is funded, you would not see it in the general fund line items. I believe it is... Chair Furfaro: So they are coming to garage but they are bringing the current duties with them? April 20, 2012 Agency on Transportation pg. 7 Ms. Mahikoa: Yes. Chair Furfaro: So that still does not answer my question about attention to the bus equipment. Ms. Mahikoa: It would be our existing staff that would continue as they have effectively maintaining our fleet. Chair Furfaro: I just want to let you to know I am not sure I can buy into that for what we are trying to do with the bus, so but we will send it over in a question. WALLY REZENTES, JR., DIRECTOR OF FINANCE: If I can make a comment? Wally Rezentes, Jr. Director of Finance. In our discussion with Dwayne from Public Works, the employee that works small equipment in their... Chair Furfaro: Dwayne from Public Works is currently the auto mechanic shop? Mr. Rezentes: Yes. Chair Furfaro: Okay. Mr. Rezentes: Yes. He mentioned to us in our discussions that the small equipment employee works about half-time, half-time equivalent on small equipment. The full position will come over, as well as a vacant position from Public Works. So there will be 2 fulltime equivalents that will come under Transportation and be part and managed by the Transportation Office while in the Transportation Mechanics area. So there will be more resources utilized to provide that service centrally under the Transportation Agency. Chair Furfaro: I am still going to state myself though, I have to tell you, I have great respect for Dwayne and his automotive division, Wally, but the reality is I have run equipment fleets for resorts. How much is your bus company, as we call it, the Kaua`i Bus, how much has it expanded in the last 3 years, equipment, routes, and so forth? Has it expanded by 20%, 27%? Ms. Mahikoa: About 20%. Chair Furfaro: So I will send over that as a question. The qualified mechanics staff that services your bus, we are shifting someone who does small tools right now, but we are going to buy a whole bunch more tools that will have to be accounted for in a rotating base for assigning what parks group got it and so forth. So I just want to say, and I reiterated, I think Mr. Rezentes might have walked away because he did not want to hear the rest of my proposal, but I am not sure we have all the answers there. To me the biggest thing that we can do in our community during the challenging times with transportation and fuel costs, is in fact look at running the best operating service we can for your buses. So I think Mr. Rezentes knows what my concern is and I will send it over as a question. Ms.Yukimura: It sounded like an increase in efficiency and oversight, but how are you doing the accounting? I mean I am concerned that this becomes, are we charging parks April 20, 2012 Agency on Transportation pg. 8 and automotive for the additional non-bus costs, or do they become absorbed into the Transportation budget? Mr. Rezentes: We can do an allocation. Ms.Yukimura: What I am concerned about is, people look at the bus, I mean I do not know what proportion of the bus budget it will be that is attributable and helpful to the small equipment under the Automotive and under Parks, but that that looks like a bus expense and it is not really. Mr. Rezentes: An interesting thing with highway funds, highway funds are eligible for Transportation purposes as well, so Transportation is funded by the general fund by in large as well as other Federal grant programs. I hear what you are saying, and we definitely could come up with a methodology on how the allocation should be done appropriately. Ms.Yukimura: I do not mind using highway moneys to fund the bus but I do not want to use bus moneys to fund the highway costs. Chair Furfaro: But the answer we heard is, and I hope you heard it from m p e Y my first question, Wally, you are either going to look at allocation system or a time and attendance for work out of the bus department for Parks, either one of those. Ms.Yukimura: Okay. Thank you. It was just a question. Chair Furfaro: It was a good one, how are we going to allocate it? We have not gotten there yet. Okay. Please continue. Ms. Mahikoa: I guess the next section I provided comparative graphs showing the changes from fiscal 2012 to fiscal 2013 in our general fund budget.As far as that goes as you, I am sure you have observed in each budget coming through here that the OPEB has increased and the bulk of it, the bulk of the increase is causing those increases. On page 11 of the presentation here I have a pie chart that shows what is contributing to the increase from last fiscal year to this fiscal year, and showing OPEB accounting for over half of that, I am sorry, a little less than half of that. In addition to that we have got equipment of which the GPS matches is part of that that I am asking for. The fringe increases also take a portion of that, and I am also asking for a slight increase in gasoline just accounting for looking at increases in the cost of diesel that are coming up. Right now our diesel expense is running at about $64,000.00 a month. Chair Furfaro: Excuse me, I have to tell you I do not understand, I talk to a very sweet young lady in your office that evidently is your bookkeeper, and I do not think I have ever met her, but I pose... Ms. Mahikoa: She is here with us today. Chair Furfaro: She is? Hello to you. Why do you not have her come up and introduce her to the rest of the Members. Ms. Mahikoa: She is an accountant in our office. This is Robin Nakata. She does a lot of the budget works with us. We work together well. Chair Furfaro: I wanted to tell you how impressed you were to accept my call for some questions, and you answered them, and if you could not answer them you indicated to me April 20, 2012 Agency on Transportation pg. 9 that you would get an answer to me later and you did just that. I got emails and thank you very much.Job well done. Mr. Chang: Did you know who he was? Robin press the blue light and introduce yourself and get some air time and you can talk. ROBIN NAKATA, ACCOUNTANT I, AGENCY ON TRANSPORTATION: I am Robin Nakata, I am the Accountant I at Transportation and I have been there a little over a year and a half. Chair Furfaro: Thank you very much for taking my calls and giving me those answers but now, Robin, you cannot leave. I was asking, there was a booking line that looked like we, it looked like almost an allocation for fuel. I think it was a number of$740,000. I think it was the number for the year and I am still I just want you to explain to the group because they all get the 6 months, how do we handle that booking and is it like an accrual and we reverse it until we know we have to order more?How do you handle that? Ms. Nakata: When we go in for budget we need to also create what they call a business purchase order which encumbers funds for the fiscal year and we put as much funds as we would predict for the fiscal year into that business purchase order, but we also will have to save funds outside of that purchase order for other fuel usage that we do not encumber through Kaua`i Automated fuels.As the fuel costs increase or decrease we still, we still need to estimate...and our funds are our best estimate possible with the amounts that we have encumbered throughout the fiscal year. But we still need to go in for budget adjustments and increases on the business purchase order so that is why there is a lot of varying amounts throughout there. Chair Furfaro: And that was the answer she gave me over the phone. In a cash accounting system we actually do some accruals and reversals so thank you very much. Thank you. I also want to let you know that Mr. Rapozo has a 4:30 p.m. departure. He is transporting his mom so everything's good there but he had to depart. Okay. Celia, please continue. Ms. Mahikoa: Thank you. I will continue on with the pie charts that I have included at the bottom of page 11. Basically reflecting our total agency budget being $7.3 million of which Federal grants are accounting for $1.5 million, and the general fund coming in at $5.8 million. It shows the breakdown of what we have for salaries and wages and $2.5 and versus benefits at $1.7 million. Our operating expenses $1.1 million which the bulk of that is the fuel, and then small equipment portion where we asked for the 20% match for the equipment that we need to buy, fleet replacements and shop tools and the GPS units. That is all included in that section there. The next page, page 12 is our fleet management, fleet replacement schedule, and it is basically mapping out our plan for the next several years and showing whether or not the funding is secured or not. So far we have been blessed with the fact that we get an award every year though FTA (Federal Transit Administration) Section 5309 funding that has provided our fleet replacement, 80% of the fleet replacement funds and we are grateful to get the 20% match to apply in order to be awarded these funds. We are seeing that the fleet replacement requirements are slowly increasing along with the added miles on our vehicles naturally. We are looking at being able to tighten up on the fleet replacement information being that once we have good extensive data included in our fleet management system, we are hoping that we will just be able to pull reports and be able to get more accurate information on that. Paired up with that we are also working with the Kaua`i Automated Fuels to see if we are able to get automatic odometer information fed over into our system as well. This will trigger service intervals for the vehicles when they reach their required service dates. The last portion of our report here is the agency position information requested. That is typically April 20, 2012 Agency on Transportation pg. 10 requested by you each year on the positions that we have in our agency. Showing what we have vacant right now and anticipated filling dates. Right now we have a Clerk Dispatcher I position that is open and we anticipate being able to fill within the next couple of months. I put an expected fill date of May 1 when I put this together and I am thinking it may take a little longer than that. We have substitute bus drivers. Several of them that will actually be starting up on May 1, and van drivers we have 2 that we are looking at starting up within hopefully the next month. We do have Federal grant funded positions and those are all listed in the bottom portion there. We have 6 fulltime positions that are funded through grants and then our entire group of substitute bus drivers and van drivers are all funded through the grants as well. So grants come to about $600,000.00 a year in operating funds of what is provided to us by the Federal Transit Administration to supplement the amount that the general fund is giving. Other than that, that is all that I have to share with you today. Chair Furfaro: So we can understand your staffing, and because you do get so much, sizable grant money for staffing and so forth. Would our bargaining unit agreements that cover the bus, is it correct to assume that less than 19 hours is considered a casual with no benefits? 20 to 32 hours is considered part time with benefits? And more than 32 hours a week and some of them may incur over time, those are what we call our full time staffers? How do you define that? Ms. Mahikoa: Fulltime is defined at 40 hours a week. Chair Furfaro: At 40, not at 32? So if you are 39-20 hours you are part time? Ms. Mahikoa: Yes. Chair Furfaro: And you do have benefit costs associated with that? Ms. Mahikoa: Yes. Chair Furfaro: But if you are less than 19, they are considered casual? Ms. Mahikoa: Yes. Chair Furfaro: Is that the term? Ms. Mahikoa: We call them on-call or substitute, but it is the same as casual. Chair Furfaro: Okay. Has the casuals increased year to year? Ms. Mahikoa: Yes they did. It increases as the demands do, and then when we did the expansion last year we converted a good portion I believe it was 12 of them from on-call to fulltime or part time. We had 3 part time positions. Chair Furfaro: But you did convert a sizable number from last year from, I am going to use the term "casual" to some form of part time or benefit status or fulltime, however you call it, and that was how many? 12. Ms. Mahikoa: I believe it was 12 last year. Mr. Kuali`i: 10 fulltime, 3 part time. April 20, 2012 Agency on Transportation pg. 11 Chair Furfaro: Total 13. Okay. That answers my question. He is the aficionado of staffing over here. Questions, Members? Councilmember Chang, and then Councilmember Nakamura. Mr. Chang: Celia, thank you for the nice report. Regarding our KCC student passes, they are going to on until June? Ms. Mahikoa: Yes. Mr. Chang: So what happens now that we got a lot of them in? Are we preparing that we may be needing to charge them? Ms. Mahikoa: Yes. That is where the student government is coming in. We are partnering up and I am developing the bulk rate program and they are working on what exactly it would take to implement having this fee added to the incoming students, registering students. Mr. Chang: Ian did a great job at getting people on the bus and obviously they were hoping for the rest of the year, but with the rising costs of gas prices and what have you, we have take care of that a lot of that. So there is a plan in place where they can get their passes at convenience stores and that is set up at KCC? Ms. Mahikoa: Actually we are still working on all the details with implementation of the program.As of right now it is as simple that they show their KCC Student ID and they board at no fare. Mr. Chang: You talk about the GPS, a lot of benefits from the GPS. How far are we from being...I think it has been years at Honolulu someone and someone can figure out where the bus is and a minute or two or delayed. How far are we away for that technology for our riders? Ms. Mahikoa: That depends how much we want to invest. The technology exists but it would take investing in vehicle locators as well as stop locators. It would take quite an investment and there are funding opportunities that come from Federal Transit Administration for precisely these types of projects. Mr. Chang: Well, maybe with technology now they have friends on the bus that will say that kind of thing right now and that helps. Do you remember, you mentioned the gas prices, I guess it was the summer of 2009, or 2008 that it just went ballistic during the Memorial Day weekend and on into the summer. It was close to $5.00 a gallon I guess. Ms. Mahikoa: Yes. Mr. Chang: So the situation sadly this year might be the same or maybe not as much, but we are getting there? Ms. Mahikoa: I noticed it is not as much but naturally it does increase. People reach their limit where they are just not going to continue paying that much to fuel their car constantly. Mr. Chang: I heard the concern that now it is standing room only? Ms. Mahikoa: In certain routes. April 20, 2012 Agency on Transportation pg. 12 Mr. Chang: In certain places? That can also be a good problem because if anybody caught any bus anywhere of in the U.S.A, any bus you ride no matter how big or how wide, in the rush hour times or the peak times or the demand times, sadly everybody is standing up, everybody is holding on to something; hopefully that is where courtesy will kick in that the kupuna or the handicap will get the courtesy and allow that person to get the chair. Do we make periodic announcements maybe if you are standing you can give your chair? Remember I was the one with the PA system that wanted the island tour, kind of the Hawaiian history... Ms. Mahikoa: We do not require it. I hope that just the aloha level on Kaua`i results in that. If not we can also look at making an appeal to the public as well. Mr. Chang: I have a couple of questions but I am going to let the other Members go around, and thank you for you and your staff doing a great job. We appreciate it. Thank you, Chairman. Chair Furfaro: Councilmember Nakamura. Ms. Nakamura: Thank you for your good work, Celia, and Transportation Agency. I really think this is a really good tool, your fleet replacement schedule is something that we do not normally see in this format. I think my note to Finance or the Managing Director's Office will be to use this as a guide because it shows you are planning ahead, and it also gives us an idea what to expect in future years in terms of our matching funds. Thank you for this format and presentation... Chair Furfaro: I just to clarify something. We started that format with the Fire and Police Department as to...it has been about 3 years with the replacement of fire trucks and so forth, but Celia does an excellent job, I concur with you. Ms. Nakamura: Also, I wanted to ask you in your Ke'e Beach shuttle service initiative, are you looking at this being a County operated service? Ms. Mahikoa: In all honesty I have not been able to get that far yet. To me ideally it is going to take bringing in all of the players out in that area including DLNR, us, and as well as the Hanalei community, Princeville community as well. There are a lot of willing players out there that are wanting to come to the table. This is a decades old problem that has existed out there. Ms. Nakamura: I also had a question dealing with the overtime cost in your budget which, do you expect, I know your current overtime budget is $70,000.00, do you expect to spend that amount this year? Ms. Mahikoa: I anticipate that we probably should. If I look at just the fact that we are operating on holidays, that accounts for probably about close to two-thirds of that $70,000.00 right there just over that, and then beyond that it is to be in compliance with collective bargaining agreements, certain things will trigger us into overtime in the operation. Ms. Nakamura: Do you feel that the hiring, that you have enough drivers? If you had more drivers would that cut down on overtime or do you think that you just have to assume that as a fixed cost? Ms. Mahikoa: There are some parts of our operation where it is...it would be difficult to justify a full body there, but there are other parts that we, yes, we could. We could. It could bring down overtime somewhat because sometimes we go into where we have to ask drivers to cover an extra shift. April 20, 2012 Agency on Transportation pg. 13 Ms. Nakamura: So is that something you could consider looking at in the future?Maybe not with this budget but maybe next year as you are looking at staff allocations? Ms. Mahikoa: Yes. Ms. Nakamura: Thank you. Chair Furfaro: Vice Chair, you have the floor. Ms.Yukimura: Thank you. Thank you for all the good work and also this good presentation. Ms. Mahikoa: I am sorry, can I just acknowledge, I cannot take all the credit. Chair Furfaro: Why do you not bring them up?We have 3 chairs. Bring them up. I thought I invited them up earlier but I think they are shy. Go ahead, Celia. Ms. Mahikoa: We have my Program Specialist, Jeremy Lee, Dwayne Kaleo Carvalho is our Operations Manager, and we have met Robin Nakata, our accountant. They are such large contributors to the administrative progress that we have been able to made, the operational progress and just holding the team together and valuing our team that we have, and so thank you. Chair Furfaro: Well thank you very much to all of you and we do appreciate all of your efforts during this time that we incrementally expand the service, so we thank you very much. Stay right there because we may pose some questions your way. Vice Chair Yukimura, you have the floor. Ms.Yukimura: I am glad you called the team up and we do know it takes a team to do the work and thank you to each one of you and to you, Celia. So my question is, when you say restructure existing shuttle service that is basically Lihu`e, Lihu`e is our only shuttle service right now? Ms. Mahikoa: Actually we have several shuttle services right now. We have the Kapahi Shuttle that goes to through Kapahi and Kapa`a, and we have what we call the Wailua main line but it is serving homesteads and houselots and coming into Lihu`e. We have Koloa, and Lihu`e, and Lihu`e lunch. Ms.Yukimura: Okay. Ms. Mahikoa: That is what we have. Our current one, there is so much demand with Wailua homesteads because we are so limited with service right now and we have assembled a team to where they are looking at the service out there and seeing ways to address that and the needs out there to be able to better address the needs of the public. Ms.Yukimura: So when you say restructured existing shuttle service are you looking at all of these 5 shuttles? Ms. Mahikoa: One by one, yes. April 20, 2012 Agency on Transportation pg. 14 Ms.Yukimura: You will be looking at all of them. That is excellent because I was assuming it was Lihu`e you were talking about and wondering about Koloa shuttle service. I know it was part of the Koloa circulation plan and I do not know what is happening right now compared to what is in the plan. I am wondering whether that is going to be looked at in the near future?Jeremy, looks like he wants to say something. JEREMY LEE, PROGRAM SPECIALIST III,AGENCY ON TRANSPORTATION: Jeremy Lee for the record. I always want to say something. Chair Furfaro: You should be at this table. Mr. Lee: Thank you, but no, Chair. Looking at the existing plan for the Koloa circulation, we obviously want to work with the partners in that area in order to achieve the most efficient service for the community. Working with our group inside we are doing what we can from our end and come to the tables with the efficiency measures and present it to them and hopefully we can couple with them at that point. Ms.Yukimura: Okay. Good, good. And your Multi-Modal Plan is not one of your goals and objectives of next year because you are thinking of finishing it by the end of this fiscal year? Ms. Mahikoa: Yes. Ms.Yukimura: What is the status right now? Ms. Mahikoa: Right now they are working on putting together the last details of it, just putting the final steps together in order to provide us with fee product so we are hoping within a month. There have been some challenges that have come up recently. Ms.Yukimura: So what is next, a draft plan with comments on it or the final plan? Ms. Mahikoa: I believe it is going to come out draft for our review, for the tact to review and determine if it is clearly aligned with existing plans that we have on island and our current priorities and from that point the final. The 2 public meetings we went out was to obtain the public input and the prioritizing of the goals and objectives that were listed for each of the different modes being addressed. Ms.Yukimura: So can we expect then next year's budget you are making some proposal coming out of the plan? Ms. Mahikoa: When I come in a year from now? Ms.Yukimura: Yes. Ms. Mahikoa: Yes. Clearly taking what is being recommended in the plan and goals that we have. I mean as well as we have been with working with Planning and Public Works and even with State Highways. I mean all of us getting on the same page and setting goals for the island as well. We are all willing participants. Ms.Yukimura: So you mention there is going to be a fuel component, and we recently had Public Works before us, Automotive specifically, talking about the challenge about fuel costs and looking for alternative fuels as well. So I just saw a possible opportunity to work, not just on your fuel needs but also Automotives which is Countywide fuel needs and working on... I am very April 20, 2012 Agency on Transportation pg. 15 interested in seeing what Mr. Charlier will come up with in terms of recommendations. It seems like something that might be useful in terms of the whole economy, so looking at some of those. Last question is about your, actually second to last question or I can wait for other questions. Chair Furfaro: Why do you not you go ahead with your 2 questions. I am sure the Members will have no problem with that. Ms.Yukimura: The goal for fiscal year 2013 is a minimum of 6 bus sheltered constructed and that cost is in the budget? Ms. Mahikoa: Actually, I need to apologize that ties into, we have one line item in the CIP budget which I was supposed to address today as well and it is for $300,000.00 which was actually put in last year. Ms.Yukimura: That is right. Ms. Mahikoa: That was put in last year for the sheltered bus stops and what I am attempting to do is leverage that, I have applied again to try and get a million dollars for bus stop shelters. If we are awarded that we can use the CIP funds for the 20% match for that, so that is what I am hoping on. If not, then we have the CIP funds to fund the improvements. Chair Furfaro: I have a follow up question. So if I recall, the money was put in there with the intent that we would have that matching because you did apply for that million dollar grant? Ms. Mahikoa: Yes. Chair Furfaro: We were unsuccessful? Ms. Mahikoa: When I applied probably about, applied about 5 months ago maybe initially, and we were not awarded those. Chair Furfaro: We were not? Ms. Mahikoa: Right. They gave us another opportunity a couple months ago and due a month ago so we tried again. We restructured it and tried our best... Chair Furfaro: You are asking for the same amount? Ms. Mahikoa: Yes. Chair Furfaro: Thank you, Vice Chair. Ms.Yukimura: That is the one we are waiting for? We do not know yet whether or not we have gotten it? Ms. Mahikoa: Right. I believe it is going be announced, they state it in the notice of fund availability I believe in July is when the announcement will be made. Ms.Yukimura: The cost of the 6 that is in your goal is about $300,000.00? I know that it varies. • April 20, 2012 Agency on Transportation pg. 16 Ms. Mahikoa: Right. It is going to vary and we also take into consideration our other groups that are helping us such State DOT putting up on the highway by KCC and those as well. Ms.Yukimura: So you might have more than 6 by the end of the next fiscal year? Ms. Mahikoa: That would be wonderful for the public's sake. Ms.Yukimura: Last question. You mentioned a public workshop module on the AS400? Ms. Mahikoa: Our Fleet Management Module? Ms.Yukimura: Yes. That is something that was recently activated? Ms. Mahikoa: Yes. Ms.Yukimura: It was available for a while but you just activated it with the help of IT? Ms. Mahikoa: What it was when the County first purchased that module and implemented it they wanted to test it with Public Works and so they only activated Public Works first. I think there was concern about the intermingling of records and that sort of thing that may have happened, but we have seen they have been able to set it up to where Public Works has their management data and we have ours for our fleet. There are of course challenges anytime you implement a new software. It is been working well for us. Ms.Yukimura: But it is something that Public Works has been using and now you have recently activated it for yourself, and is it an additional software purchase or is it using what we had in house? Ms. Mahikoa: I am not aware of additional costs. Mr. Lee: JoAnne, it is not additional cost. I believe it is already an existing software within the AS400 system, it was just activated for us. Ms.Yukimura: That is a wonderful thing that we were able to use the existing capacity, and I think it was partly maybe Antonio's foresight in making sure we had that as part of our purchase. I am glad that agencies are using it. I think sometimes we are going out to buy new software without looking to see what we already have and whether it would work well for us. That is wonderful that we are able to do that without any additional costs. Ms. Mahikoa: We are grateful. IT has invested a lot of time in helping us to implement this and we are grateful for all they have invested. Ms.Yukimura: Thank you. Chair Furfaro: Mr. Kuali`i, you have the floor. Mr. Kuali`i: Thank you, Mr. Chair. Aloha Celia, Kaleo, and Robin. Thank you for being here and the work that you do and please take our expressions of thanks back to April 20, 2012 Agency on Transportation pg. 17 everyone at the Department of Transportation. My questions are just primarily with positions, I have been reviewing the Department of Personnel Services report on positions, and the last report was from December 31, 2011 so you probably have more current information. In that report from 2011 there were 2 Clerk Dispatcher I vacancies, Position 9322 which you spoke about and wrote in your narrative, as currently being recruited and you expect to fill it May 1. The other one is Position 9412, same position Clerk Dispatcher I, and they say that it is vacant since December 28, 2011 and that it is not recruiting, the agency handles, and unlike the other one which is County funded this one is Federal funded. What is the status of that position, 9412, Clerk Dispatcher I? It is showing in the budget as $30,000.00 then it had a vacancy since 12 /28 /11. By not recruiting, DPS says, and agency handled and Federal funds. The funds are in place and you are going to fill this position? Ms. Mahikoa: Actually I believe 9412 is currently filled. Mr. Kuali`i: It is currently filled?You filled it in the last few months? Ms. Mahikoa: Yes. Mr. Kuali`i: In your narrative here, where you talk about the, roman numeral I and II, you talk about, there is a position 9386 which is one of the 3 Van Driver substitute positions that is County funded; is that just a typo that that number Position 936 shows up there and Van Driver Substitute and then it shows up below as Transportation Operations Assistant 9386, or is there something a reallocation or something happening that is not expressed here? Ms. Mahikoa: Good eye. I have to go back and check that. Thank you. Mr. Kuali`i: Okay. Ms. Mahikoa: I will need to check that and get back to you if I could. Mr. Kuali`i: Okay. The other thing is, so there is a position showing, Personnel has a whole bunch of positions Van Driver Substitute, 3 of them and Bus Driver Substitute, 8 of them and they are not the same numbers you show in this group. I think this group of Bus Drivers, 35 of them, those are all County funded fulltime positions in the budget? Ms. Mahikoa: In our line items?Yes. Mr. Kuali`i: There is 35 of them at $39,972.00 each and one total... Ms. Mahikoa: Yes. Mr. Kuali`i: So those are the County funded fulltime bus drivers? Ms. Mahikoa: Yes. Mr. Kuali`i: And these other positions that are substitute are tied to grants that you get on an annual basis? Ms. Mahikoa: Yes. Mr. Kuali`i: So the Personnel has it as vacant since 12 /1/11, but it also says recruitment closing 1/20/12. So all these positions have been filled? From 9424 all the way to 9456?I guess that is these 8 positions that you show here, Bus Driver Substitute? April 20, 2012 Agency on Transportation pg. 18 Ms. Mahikoa: Yes, that we have starting up on May 1, I believe. Mr. Kuali`i: So starting on May 1, the recruitment closed on January 20, so start May 1...April 16 you say here. Of those 8 positions in the narrative, which is the County funded Bus Driver Substitute positions when the Chair talked earlier about the different types of less than 19 hours casual or on call, 20 to 39 part time with benefits, and 40 fulltime with benefits, does the 20 to 39 part time with benefits and the 40 fulltime with benefits, is the benefits the same or is there different benefits for the different categories? Ms. Mahikoa: Part timers accrue at half. Mr. Kuali`i: Half the benefits? Ms. Mahikoa: Yes. As far as if you are talking leave time benefits. They qualify for medical. Mr. Kuali`i: Yes. Ms. Mahikoa: Full medical as fulltimers do. Mr. Kuali`i: Leave is half, but medical is full? Ms. Mahikoa: Yes. Mr. Kuali`i: Okay. Ms. Mahikoa: They are qualified for retirement benefits as well. Mr. Kuali`i: I am not sure why I jumped here but let us go back because a Bus Driver Substitute, those are all in what category? They are on call less than 19 hours, all 8 positions? Ms. Mahikoa: Yes. Mr. Kuali`i: And that is the same for the Van Driver Substitute 3 positions that start May 1, they are all in the on-call category? In that section, the 8 and the 3 is casual hires with County funded, less than 19 hours, no benefits? Ms. Mahikoa: All of our casual substitutes are grant funded. We have none in the County General Fund. Mr. Kuali`i: What is the difference between, so this top section is not County funded either?It is all grant funded?This roman numeral I in the narrative? Ms. Mahikoa: Roman numeral I, that is just everything, it is all of our current positions. Mr. Kuali`i: But there are only 8 Bus Driver Substitute positions there, and then down below there is 25, and below says roman numeral II says contracted positions funded by State or Federal grant and contract period. April 20, 2012 Agency on Transportation pg. 19 Ms. Mahikoa: Yes. Those are strictly, that is listing all of the positions that are funded by grants is what the bottom section is. Mr. Kuali`i: So below there is 25 Bus Driver Substitute... because the Bus Driver Substitute up above, the 8 is what is being filled? Ms. Mahikoa: Those 8 are included in this because they are Federally funded. Mr. Kuali'i: But what about the other 17 then? Ms. Mahikoa: They are all Federally funded. Mr. Kuali'i: And filled? Occupied? Ms. Mahikoa: Yes. Mr. Kuali`i: So it is part of that total, the 8 is part of the 25 total. They are all on call casual no benefits. I have to tell you that I liked seeing last year when you reallocated those 13 positions that were on call or 12 positions maybe, and moved them to fulltime and part time, and permanent County funded positions. That showed the commitment to the expansion and to the expanded routes, the service time expansion, that...because the grants we could get or we could not get. I understand that is why you are using the substitute positions. I think going forward from year to year as we commit to the expansion we should commit to moving those positions from grant funded to County funded as much as possible. I see that you have done that last year but I do not see any of that this year, and maybe that is when certain expansions happened. If there is more expansion, I am going to ask that question too in writing, to try to compare the numbers from last year based on the total number of bus drivers. I think we had 35 fulltime funded by the County, 2 fulltime funded by the grant, and 18 substitute funded by the grant, for a total of 55 bus drivers. So the 55 bus drivers in last fiscal year handled what number of buses and number of routes?And then for this coming year, how many buses and routes are going to be handled by how many? And I will submit it in writing and I know it is a little bit...yes, it is kind of hard to follow because there is a lot of activity as far as positions go.You are managing a big operation and I think you are doing a great job, and I will submit more in writing. Keep up the good work. Chair Furfaro: I think what we are saying is, we are happy to see that move and that was from my earlier question, and we did the right thing. I think what the Councilmember Kuali'i is saying.Vice Chair Yukimura. Ms.Yukimura: Just to follow up on what Councilmember Kuali`i has said. When I did a speech recently on green jobs we actually, Celia helped me but these bus driver positions are green jobs. They really are, and so I am looking forward to being able to know what the next increment of expansion is. But we are waiting for that Charlier long range plan which should give us a really good basis of moving ahead in terms of what the next best step is towards expansion. With that we can expect some more green jobs provided, so it is really remarkable.You do not kind of look at County services for green jobs, but there are actually some. It is wonderful because not only are we creating green jobs, we are creating these services that enable people to live more environmentally sustainable too, and more cost effectively better on the household budget. It is really a great thing. Chair Furfaro: Mr. Chang, is waiting for a second turn, and then Councilmember Nakamura's turn. Mr. Chang, you have the floor. April 20, 2012 Agency on Transportation pg. 20 Mr. Chang: I do not have any questions. I am just thankful that the Chair brought all of you 4 up here because in my memory just Public Works and Finance, not even the Administration had this whole line up here. So I am happy Transportation is the whole lineup. Thank you, Chair, that you brought them all up. It is great for the community to know our staff. Chair Furfaro: I just want to follow this, Celia, and tell me again on your holiday pay you said about two-thirds of it is contributing to the $70,000.00 over time, so that is $45,000.00 to $48,000.00... Ms. Mahikoa: Exactly. Chair Furfaro: Those are specific that, is it 11 or 12 holidays in the bargaining unit agreement? Ms. Mahikoa: I think it is 13 except on election year it is 14. Is that right? Chair Furfaro: So instead of 12 it is 13? Ms. Mahikoa: It is either 12 and 13, or 13 and 14. Chair Furfaro: So it is those 13 holidays that we are running the routes that generate the... Ms. Mahikoa: It would actually be without, it does not include Christmas, New Years, and Thanksgiving, at the moment. Chair Furfaro: Because you are shutdown? Ms. Mahikoa: Yes. Three days a year. Chair Furfaro: So it is about 10, it is about 10 actual paid holidays that the service is running for negotiated holidays? Ms. Mahikoa: Yes. Chair Furfaro: And that is contributing to two-thirds of the budgeted overtime? Ms. Mahikoa: Yes. Chair Furfaro: For me, that was my last question. Is there any more questions before we call it a day at 10 past five? No? To you and your staff and team, thank you very much for a very complete piece. I May be sending over a couple questions regarding how this, they are solving the problem right now next door; how the mechanics impact with the small equipment and the 2 transfers, how it is really going to work. Please make one note, I heard a commitment from Mr. Rezentes, that they are going to come up with a system to either time and attendance transfer to Parks, or an allocation to Parks. So let us make sure the transportation system gets an appropriate credit for that work. On that note you folks have a great weekend. Watch for our questions by Tuesday by the end of business, and thank you very much for a very nice presentation. Watch for our questions. Have a great weekend everybody.We are in recess. There being no objections, the budget hearing was in recess at 5:13 p.m. April 24, 2012 Anti-Drug CIP—Boards & Commissions p.1 The departmental budget reviews reconvened on April 24, 2012 at 9:04 a.m., and proceeded as follows: Councilmember Bynum (present at 9:06 a.m.) Councilmember Yukimura (present at 9:06 a.m.) ANTI-DRUG CIP—BOARDS & COMMISSIONS: Chair Furfaro: Aloha and good morning everyone, and I would like to call us back to order, as we were in recess for our budget meetings, and I believe we are going to start this morning with a presentation from our Anti-Drug Coordinator and her office, which falls under Boards and Commissions. So may I invite you up? I am sure I do not need to ask you to introduce yourself and then you can start your presentation. Good morning. There being no objections, the rules were suspended. THERESA KOKI, Life's Choices Coordinator: Good morning, Chair Furfaro and Councilmembers., Theresa Koki, Life's Choices Coordinator for the record. Chair Furfaro: I am sorry is that the title I should use? I remember seeing the new title anointed to you as Life's Choices. Ms. Koki: Yes. Chair Furfaro: Terrific, may I say a good choice. Ms. Koki: Thank you. Chair Furfaro: Do you have a PowerPoint display? Ms. Koki: No, I do not. I guess I am here to discuss the CIP funding for the Adolescent Treatment Center, and right at this moment we are currently in the design phase, which includes procurement of three consultants: one for the Feasibility Study, another for the Environmental Assessment and the Planning Permits, and the other would be the consultant for the Design and the Construction Management. Chair Furfaro: Give us a rundown of those three phases again and what, if any, work has been contracted to whom. So you have three phases again. Ms. Koki: We have three phases. The first would be the feasibility consultant, and then the environmental assessment consultant. Along with that contract, there would be the planning permits, the use permit, variance permit, for the property, and also the consultant for the architect and construction management of the project. Chair Furfaro: No part of these phases have been actually contracted out yet? Ms. Koki: No. We did submit our recommendations, and we are currently in communication with the awardees and will be negotiating the contracts. Chair Furfaro: For those who are at the table now, we are actually dealing with the newly renamed department under Boards and Commissions called Life's Choices, and in particular we are covering their CIP items. She has just given us a quick update on the three phases April 24, 2012 Anti-Drug CIP—Boards & Commissions p.2 of the CIP. I will ask if there are any questions starting with the first study on feasibility. Mr. Rapozo. Mr. Rapozo: Actually, I had a more...this is not just CIP, right? This is the entire... Chair Furfaro: No, this is not just CIP. Mr. Rapozo: I guess I was going to ask if we were going to get an overview on your program, your office, the restructuring as far as what the new Life's Choices is. I see in your budget, in the Boards and Commissions budget, which I still question why you are there. I do not know, and no one has even provided an answer for that yet. There is not even a close nexus to Boards and Commissions and the Anti-Drug Office. But anyway, there is just one line item and that is your salary. That is it. I do not see...I am assuming your office is funded by grants mostly? I guess I will send it over, but moving you over to be the Facility Coordinator is going to leave a gap in the office, in my opinion, and I know we just saw in the newspaper you were recently certified as, I think, the first in the State... Ms. Koki: I am sorry. Mr. Rapozo: No, no, go ahead. Ms. Koki: Actually I am the first in the County of Kauai. I believe there were 20 something others within the State of Hawai`i. I also have my Certificate of Reciprocity, which I can serve the rest of the world actually in prevention. Mr. Rapozo: And so now I understand you are going to be coordinating the new facility, and I think, I do not know what arrangements are going to be made to fill your void that you are leaving, and I do not know if that has even been discussed. That is kind of what I wanted to see today to get an idea of... Chair Furfaro: Well, pose the question. Mr. Rapozo: What is the new structure? If you can give us a broad overview of the new, being that you are leaving. I think...I forget who...I cannot remember if it was Gary or Wally or somebody that said that you were going to be doing both. I do not see that happening just with what you discussed in your opening statement about the phases that are set to move. It is going to be difficult for you to do the building, in addition to all...what you already do. I cannot imagine you being tasked with being the coordinator for the facility. So if you can give us broad overview of the then and now, I think that would be appreciated. (Mr. Bynum and Ms.Yukimura were noted present.) Ms. Koki: Originally the Anti-Drug Coordinator as he was called was Roy Nishida and he had two people under him. One was a VISTA volunteer that was through a grant and the other was an outreach specialist through a grant from Hawai`i Community Foundation. And then when I took over, the VISTA volunteer grant continued. The other grants were not available, so I was sharing a secretary with the ADA Coordinator at the time. And then at one point, I believe when Mayor Carvalho took over, I was by myself and I wrote this grant so I could have staff. It was basically a joint venture with the State that we chose the drug of Alcohol. It was for underage youth, to service them. So we have been mainly focusing on that. I have currently right now a program coordinator for the underage drinking grant. I do have Edie Ignacio, who was my former secretary, back in our office as our data specialist, and I have another person April 24, 2012 Anti-Drug CIP—Boards & Commissions p.3 nn Yamaguchi, who is our Administrative Assistant, and we have this grant until this year June, g Y , the end of this fiscal year. Looking at balancing all of these consultants and contracts and procurement, in our discussions with Administration, we were reorganizing our office hoping that I could take care of this since I had been the person that started this process with the community, working with the consultants, as well as help and assistance from our Public Works, and of course Ernie Barreira and his procurement staff. We are looking at, and I did suggest this in our reorganization with the Mayor that if we could have an additional person in our office after this grant is over as an outreach person so they can continue the youth programs with the schools and the Senior Centers when we do presentations regarding prescription drugs. Also in the Office of Boards and Commissions, I believe I was structured there because the Boards and Commissions take care of all the boards and commissions that are appointed, and I, too, have volunteers. They are not appointed, but they are volunteering. We have a lot of meetings and a lot of people that come in and volunteer to help us with our County, with the facility, with enforcement, with treatment, and also with prevention and community integration. Mr. Rapozo: Okay, I guess my second question is you mentioned you have a program coordinator for the underage drinking component. What about meth and prescription drugs and marijuana and all of that stuff? Ms. Koki: I was hoping to have a prescription drug campaign as it is very prevalent, and we are working with the Hawai`i Meth Project, and what I mean by that is we are just partnering with them. I do not have any funding. I do have, I believe, $40,000.00 in Special Projects under the Boards and Commissions, and that is for anti-drug programs or I should say Life's Choices Kaua`i's program. Mr. Rapozo: Okay. It has always been, I think, as long as I have been on the Council the anti-drug effort has always been a strong focus, but obviously without the funding, there is not much you can do. I am not sure how much funding you need to carry out the objectives of the office as far as the other drugs. I mean alcohol, we all know it is a serious problem and obviously needs to be addressed, but I think with the prescription drug issue right now, and of course meth never went away. I think prescription drugs may have overshadowed it a little bit, got more media attention, but the fact remains that meth is still a major problem. And I do not know how we are addressing it. If funding is a concern, then I think we need to know about it because I guess the misnomer is that you have all these millions and millions and millions of dollars in that office from the grant from Senator Inouye. That is what we keep hearing. I do not know how accurate that is. What is your real operating budget? What do you have as far as funds available for programs and services. Ms. Koki: Right now I have...and these are just remnants from the previous grants, I believe, about $800,000.00 that most of them will expire in June. And if I could clarify the Senator Inouye grant. That was from the Health Resources Services Administration, which is a Federal grant for like hospitals and treatment facilities that I had, and I believe it was $385,000.00, and that was going to expire when I took the position, and Senator Inouye did go and testify on our behalf and help us with the funding. That was earmarked for the Adolescent Treatment Center; it had a five-year life, and we did not progress as we expected to regarding the treatment facility, and so we were tasked with using that money and partnered with his office and the Health Services Administration to...we had parameters that we had to follow and because we did not build our treatment center, we had to purchase equipment or a building for a day treatment facility for youth. And right now, we purchased prior to the grant expiring three vans as it was in the grant that we were going to have vans for transport of the youth that were being served at the treatment facility, and Hina Mauka has those vans right now. We also purchased three mobile office April 24, 2012 Anti-Drug CIP—Boards & Commissions p.4 units for various campuses that had mobile office units since Hurricane Iniki that were rusting and falling apart for the Mokihana Project, which services kids with substance abuse and mental health disorders, a partnership with the Department of Education and the State Department of Health. Mr. Rapozo: So the three vans that were purchased with the grant they are at Hina Mauka right now? How does that work? Is it our vans? Ms. Koki: Right now we own it and they just insure it. Their drivers are insured; their passengers are insured. And those are for access for the kids that go to treatment, transportation for them to and from their destinations, as well as for their cultural excursions and their therapeutic things they participate in. Mr. Rapozo: So you left off with the $800,000.00, you were talking about, and then you jumped to the Dan Inouye grant. But as far as your current resources, you started with$800,000, that is your remnant you said. Ms. Koki: Actually I started off with $1.2 million, and we did really well, and so they awarded us $235,000.00 on the same grant, and that was for the underage drinking. It is called the Strategic Prevention Framework State Incentive Grant. We have had for three years. We had two phases of the grant, and we are in the final phase, and we are looking at reallocating money before it expires, so we are going to be giving out grants for environmental strategies. There are two strategies we focus on. One is the evidence-based programs, which we have service providers right now; we have nine of them. And the other is the evidence-based program Community Mobilizing for Change on Alcohol, and this is where the outreach coordinator Brandon Jose formerly held that position. So that was my big grant. The first step was $319,000 and the second was the $1.2 million, and then they gave us extra money. Mr. Rapozo: So right now where do you stand as far as resources for campaigns, anti-drug campaigns, or programs as far as financial resources. Ms. Koki: I have the mini grant again from the golf tournament fundraiser, which is for alcohol prevention. And the other grants that I have are just a few couple thousand dollars more that we use from time to time for the meth and prescription drug. Mr. Rapozo: But nothing significant. Ms. Koki: No. Chair Furfaro: Mr. Rapozo, I am going to ask Paula and I am going to ask Ernie to come up and join her here for a moment. Paula, could you come up? And Ernie, could you come up? Okay, Ernie, may I ask you and Paula to introduce yourselves first. ERNEST BARREIRA, Budget &Purchasing Director: Ernie Barreira, Budget & Purchasing Director. PAULA MORIKAMI, Office of Board and Commissions Administrator: Paula Morikami, Office of Boards and Commissions Administrator. Chair Furfaro: So Paula, I understand the Choice Program is under Boards and Commissions. Is that correct? Ms. Morikami: Yes. April 24, 2012 Anti-Drug CIP—Boards & Commissions p.5 Chair Furfaro: Okay, and do you offer administrative support to her through your staff? Ms. Morikami: We have not. Based on the fact that the Life's Choices Kaua i has receive grants, they have been able to have three support staff with Theresa to do the programs, provide minutes, attend the meetings. However, come the new fiscal, July 1, the grants, most of them, I guess, are expiring. Actually I think they are all expiring, and so looking into the future for the next fiscal, it does not look like any grants are going to be received by the Life's Choices Kaua`i. So therefore, in the supplemental budget that is being submitted to the County Council, there is another position for a programs coordinator to assist Theresa in doing all the things that need to be done. Chair Furfaro: You have to make sure you folks only have one mike at a time, if not we get an echo. Okay, thank you for that. So Ernie, I want to recap this real quick. First of all there is not a formal presentation, and I think it would be good for us rather than taking all these notes to actually have something come across with the reforecast, some material that supports this. From what I understand, so far, is the tasks are going to be three phases of her pursuing, Theresa is going to be pursuing the work for the expected facilities that we are going to be identifying in, I guess, future budgets after we get through the feasibility and the environmental assessment and so forth. But I am also hearing at this point that the...and congratulations on your certification and so forth. High praise goes out to anyone who continues to acquire information and training. But this program started with Roy. We had a VISTA volunteer, we had an outreach worker, and we had, it seems, like a lot of effect with writing grants and having income, money coming in. I am hearing now that as of June 30 the grants are pau. There is no carryover money, there is no money to latch onto to go into the next year, and I would like to get a definite answer on that. I will be sending that over as a question. With those grants lapsing, it sounds like we will no longer have a position for programs coordinator, especially for the underage drinking. Is the data specialist going to be unfunded? And also, additional su pp ort for administrative duties dealing with youth will also terminate. Is that what I am understanding? Can anybody answer that for me? Ms. Koki: It is hoped in our supplemental budget that we fund our youth, not just a youth, but an outreach coordinator. Chair Furfaro: Okay, so we will have potentially one position coming back in the supplemental budget. Ms. Morikami: In addition to that, also I am requesting in the supplemental budget for another support clerk position to help not only in the two new boards and commissions we took over which is the Civil Service Commission and we just got the Board of Review. It is to assist the Life's Choices Kauai in providing the support staff for the four committees that are active. Chair Furfaro: So Ernie, in your cover memo to the Council, I believe, it was April 17 dealing with approximately 12 positions, are these two positions noted in that? Mr. Barreira: No, they are not. Chair Furfaro: They are not. Mr. Barreira: Based on the Mayor's message for the March 15 submittal, there was supposed to be no inclusion of new positions within that submittal itself. Chair Furfaro: Yes, I understand the resubmittal, but I have to tell you, I cannot believe Where we are at right now. I am in there reconciling yesterday what positions we did April 24, 2012 Anti-Drug CIP—Boards & Commissions p.6 not put in, what positions we plan to put in the reforecast. Why are we going through the first submittal for? We are up to 17 positions. Well, she just corrected me. And I am hoping to meet with you on Friday;you will get the email. And so now we are going to add two more. It looks like that is going to come over in the resubmittal. Just say yes or no. Mr. Barreira: That is the request and we are deliberating those considerations. Chair Furfaro: Okay. Now with this shortage in staff, how are we are going to redefine the goals of the program for next year? Theresa, that is for you. You need to summarize some kind of a narrative that explains to us what the mission is. It is going to be extremely important and then I want to know, is this $40,000 for the meth program, is that in your first submittal? Because the Hawai`i Meth Program, I think, called on all of us here at the Council asking about it. By chance they were asking about a grant for $40,000.00. Is that one and the same? Ms. Koki: No, the $40,000 is to run and operate my entire program. It is not earmarked specifically for meth. Chair Furfaro: But you understand what I see happening here? We have a department now that has no people in it. We have a group coming in to talk to us about grant money, and they might have a perception that they are going to be participating in our program from across the channel. So we need to get that clarified. Also, can I check on this Hina Mauka and the new vans, Ernie? When I heard the insurance issues, I heard the issues as being they have insured their passengers, they have insured their drivers. What I did not hear, since we are the owners of the vans, that they have named us co-insured. Usually what happens when you get into an accident and something happens, they go after the partnership that has the deepest pockets, okay. So I want to know and we will send that over as a question as well. Does Hina Mauka have a policy that co-insures the County of Kaua`i for the operation of those vans that we own? And it seems to me that you folks have a lot to rethink here when we come back for the resubmittal, and I would like to see a pretty compact presentation of goal, vision, and mission because I am not clear. I understand that the building of the new facility, the feasibility, design and so forth will probably take a lot of Theresa's time. What are the other components of the program for 2012-2013? Mr. Barreira Chair, to clarify, you want that presentation prior to the submittal? Chair Furfaro: I do not need it necessarily in a presentation to the Council. I would like to have it in a budget package that kind of covers some written narrative on these items because it is not clear to me from the Administrative side what our new mission is there, what our new objectives are, who is going to be our significant partners. Theresa, again, I know you have been through some changes in program and grant moneys and so forth, but I think we would like to have a better grasp of the direction because it seems like you have a lot of possibilities, and we just need to be a little bit more grounded. Thank you. Let me see if there are other questions. I think I have encapsulated what I am looking for. Vice Chair Yukimura. Ms.Yukimura: Yes, thank you, Chair. I agree that we need a presentation in writing, if not in person, and I would like to request if you could follow the budget format that we did for all departments where you put your vision, and your mission, your accomplishments, your challenges, that has proven to be a pretty good format. Thank you, Councilmember Nakamura. Chair Furfaro: And that is the program we expect. We do not expect anything less. So let us get close to that. April 24, 2012 Anti-Drug CIP—Boards & Commissions p.7 Ms.Yukimura: That would be helpful. I would like to know how this ties in with the County's Drug Action Plan because we have done...since 2003 when Mayor Baptiste held the first Drug Summit and then Councilmember Nakamura helped facilitate some of the meetings and processes, and I think Councilmember Rapozo was involved, and all of us, we have had a fairly good planning process. I think we are still the only County in the State that has a plan, right? Two now, we have two, but we were the first. So we need to tie in with all this previous work. And even when we get requests from say the Meth Project, we need to know how that fits with our priorities. When we looked at what are the really problematic drugs, it has been alcohol and prescription drugs, maybe marijuana, in terms of kids if you are talking youth. So we need some framework by which to make our budgetary choices and our action choices, and so we need to know how that ties in together. And then in terms of the treatment aspect, and as we all know there is prevention, enforcement, treatment and aftercare that are the three areas that involve drugs. In terms of the treatment area, I am sorry I was not here to hear your presentation, but what is the status of the feasibility study? Do we have conclusions yet of that? Ms. Koki: We are in the procurement phase of hiring the feasibility consultant. Ms.Yukimura: So if the conclusion is that it is not feasible? Why are we doing permitting? The biggest question was where will the money come to support this operation and there have been closures around the State of youth treatment centers. So if we cannot even fund our anti-drug office, how are we going to fund a 24/7 adolescent drug treatment program? And why are we spending money on permitting and other things like architecture and design before we know whether we can even do this. Now we all want to do this, but that is not the...if we could do everything we wanted to do, the budget would be really much bigger, and the reality is we have a population of 68,000 people, and we do not have a big tax base, and we have to really prioritize our needs. And there is even the question of if that money were used in prevention, how much could we stop kids from even getting to the treatment need. So there is all these public policy issues that we have to grapple with before we just start spending money that we do not have. So those are the questions that we have been raising for at least three budgets, and we need to get some answers in order to do some smart budgeting decisions. And then I guess I want to know what the rationale is for the change of the office name? Because what is the name, the new name? Ms. Koki: Our new name is Life's Choices Kaua`i. Ms.Yukimura: You know a name has to convey what the office is about and to me Life's Choices Kaua`i does not tell anybody. When I sat on the board of Hawaii Lawyers Care, which was this group of attorneys that did pro bono work, we changed the name because Hawaii Lawyers Care does not express. We changed it to Voluntary Legal Services Hawaii, which said that is what we do. These are volunteer attorneys giving services. So I do not know, it just seemed that the change in name is strange because it does not tell you what your office is about. Ms. Koki: If I can answer that question? Ms.Yukimura: Sure. Ms. Koki: Our name change was because our "anti" and "drug" are two double negatives. We consulted with a public relations firm regarding our whole office, the future, our website and all the information that we are...it is out there for our programs. Life's Choices is about you can prevent the drug, you make that choice; treatment, you make that choice or somebody makes it for you; enforcement, again you make that choice if you get caught, and then also April 24, 2012 Anti-Drug CIP—Boards & Commissions p.8 community integration, you make that choice when you either come out of incarceration or treatment to be contributing members to society again, and our groups who have been with us since 2003 got to participate in naming the program, and our parents and our kids really like it now. We have more people with our prevention programs because some parents thought that they would not send their kids to an anti-drug program thinking it is for kids that already are using and it has been a catchall. We do have a tagline, which is "Empowering Kauai to be drug-free," and we still operate with the four-pronged approach of what we have always been, and there was publicity. And our website will soon be unveiled, I believe in June, to let everybody know and educate everybody. If you go on our anti-drug website in June, it will automatically take you to Life's Choices Kauai introducing the new name. Ms.Yukimura: Well, you see I think it also is what is the mission of the office and that would be addressing in...but the question is what is the role of the County in an anti-drug approach for the County. It could be not doing the programs, but actually facilitating, giving funds to do the program. So that it is not...we are not the ones trying to do the prevention programs or the treatment programs. That is not even within the core functions of the County. In the past, it has been the Department of Health, a lot of nonprofits, a lot of community organizations. If we are shifting and we are going to do the actual program delivery, what is that going to cost and how does that interface with what the nonprofits are doing? So I think we have to get clear about our role first, and do you know what our role is going to be, Theresa? Ms. Koki: Well, our role has never been direct service provider for treatment. We are not clinical, certified substance abuse specialists. My certificate is in prevention, and we...I mentioned earlier, I believe, that we have nine contracts with our underage drinking grant. We are not a direct service provider. We do, however, work with the youth in schools, like for instance we just did our "Shattered Dreams" program and our County of Kauai citizens that is people that want to participate in prevention and other opportunities, ask us to come speak to the school or do a presentation for the senior citizens. They want to know what is happening with their prescription drugs, and things like that. But we are not direct service providers, and basically we do grant out funding to other agencies that are here. We also work with them in partnering. We have a very good collaboration with our prevention and treatment. Our treatment committees are now partnering more than they have ever done with the Access to Recovery Grant that we got from the State of Hawaii, and it is going to be...we coordinated that, but we were not involved in accepting the money. It is going to be given to each treatment provider. When I first started in conversations with the Alcohol and Drug Abuse Division, they were going to give a thousand dollars for each patient, client, and now it is up to three, and they are here today finalizing the phases with the treatment providers to help people with day treatment and for the anti-drug office or Life's Choices Kauai, everything, you are right, usually it is a Department of Health, it is a public health epidemic. It would be under the Department of Health, but we cannot operate without following the Alcohol and Drug Abuse Division with the State of Hawaii, and with that we are partners. They are very happy that our Mayors in the past have put the anti-drug program within the County of Kauai as our citizens are participating with us and... Ms.Yukimura: Okay. Chair Furfaro: You know what, we can go on with this question for a very long time. I want to make sure all the members here understand and I will recognize others. I have an agreement from you as the questions I posed earlier that you are going to take stock in the various programs, both with internal and external customers for us. We are going to get some written narrative. You may also want to refine for us the strategies of your various programs and how they interact with treatment providers. And three, let us determine some priorities on what you are going to do, after all this is a budget session, and to exercise your goals, your vision, and your April 24, 2012 Anti-Drug CIP—Boards & Commissions p.9 mission, we need to know what resources you need. I just do not want to rehash those items here. We are expecting some written narrative in return. Vice Chair Yukimura, you have the floor. Ms.Yukimura: Thank you, Chair. Just to complete this cycle of questions, it sounds like you are actually moving into providing services when you go to schools, you work directly with kids. And even in drug treatment, the State is losing a lot of money so they are disabled in a sense, but how much do we take on and what expertise do we have? If we are putting out an RFP for drug treatment, for a drug treatment center, that is putting us in the middle of expertise in drug treatment, and we are going to have to have that. And so I think we are getting into this more active role and without maybe really consciously doing it because if we do, then you need more infrastructure to support that, which in a small way we are addressing in this budget what do you need to make your office operate. And if you are overseeing a drug treatment center and you are overseeing a lot of prevention, and also...so what is the role, what is the clear role for this office? Chair Furfaro: And when you answer that I want it in writing. Ms.Yukimura: Thank you. Chair Furfaro: Mr. Bynum, then Councilmember Nakamura. Members, let us try to stay to a couple statements and share the floor. Mr. Bynum. Mr. Bynum: Thanks for being here today, Theresa, and thanks for all your good efforts. A number of us have been involved in this since the beginning. Traditionally the counties were not involved in this kind of endeavor. Under Mayor Baptiste, he saw this really striking need and brought together this coalition of people, the early stuff that was facilitated by KPAA, and I believe Ms. Nakamura was involved as well, really convened a whole big group of enthusiastic people to look at those four target areas. I think a lot of good has come out of this, but I do have concerns about the direction we are heading. I am very supportive of the prevention. The way I have seen the office work most effectively and these are just my...are seeking resources, coordinating the integrated effort, facilitating those meetings, and also identifying grant funds and putting them out mostly in prevention, although there have been grants, I believe, for law enforcement and other areas of the four things. Mayor Baptiste was really intent on getting a drug treatment facility which was a tremendous need, but it happened in a different economic era. We all know this history. We actually broke ground on that facility, identified land, and then pulled back, and I will not go into all of that. Now I think Councilmember Yukimura's points are well taken. Things have changed dramatically in the State. Adolescent drug treatment programs that existed have closed or cut back the last I heard on other islands. And so when we move into the realm of acquiring land and building facilities, that is way different than where we started, and I have said to the Mayor repeatedly, I am not clear where the operating funds are going to come if we had this turnkey building tomorrow, who could operate it, what the finances are. This used to be my field, but I have been out of it for a while, but I know paying attention to this. So I really concur with the sense like let us get clear where we are going because to some extent, Theresa, we have been chasing the money. Oh, there is money over here, let us go do that. In my experience in social service programs, chasing the money is not always a good idea. You end up with unintended consequences or start down avenues that cannot be sustained. I am just adding to my first appreciation of the great things that our community has done around the anti-drug efforts, but we are kind of in a transition period, and I am concerned about the direction we might be heading. I do not know the answers, but is it at the expense of that initial seek, coordinate, facilitate, facilitate grants, because now we are talking about land acquisition and building buildings? That is not where I saw it going at the beginning. And then the separation of powers. You mentioned ADAD. There is a State agency to address these issues and traditionally counties have not been involved in direct social service 1 April 24, 2012 Anti-Drug CIP—Boards & Commissions p.10 delivery other than kind of when the State failed. I know this Council has a history of stepping in when there is a critical need for the County that the State seems to not be meeting, whether it is coqui frogs or drug prevention coordination. So anyway, I know I am not asking a question, I am just making a statement. But it is time to reassess and you are not the only decision maker, Theresa, this may not go the way you want because you have to answer to the Administration and where they put the resources (inaudible) place you. It makes sense to me that you are physically tied to Boards and Commissions because there is no clear and obvious place to put you in County government because of the things I just said that this is kind of a unique situation. And in there you do have a competent support staff, and so there is some synergy, I think, there that makes sense to me anyway because I do not know where else you would go. There is not...anyway, thanks for letting me babble for a minute. Chair Furfaro: Well actually, you should thank me because I gave you the floor for the question. Mr. Bynum: Thank you. Chair Furfaro: But your narrative was good. We understand it. Can I recognize Ms. Nakamura. Mr. Bynum: Please, please do. Chair Furfaro: Ms. Nakamura. Ms. Nakamura: First of all, Theresa, thank you for bringing in millions of dollars of grants to this County, and I do not think we fully recognize all that you have done to get these funds out into the community, into the hands of nonprofits, who are doing really good work. And I think for myself, I would like to learn more about what they have done. So for the nine evidenced-based programs that have been operating, how long have they been operating? Ms. Koki: Some of them for about a year and a half. Ms. Nakamura: Okay and so I would like to be able to see what evidence they have shown in terms of the work that they have done with some of the kids, numbers, if there are any results because as grant funds run out and as we know State funding is not available, we need to decide as a County, do we just cut these programs off or do we say this is important enough to the community as a whole that we have to find a way to continue that. That is my interest in learning more about these programs. So that is what I would ask of your office is to provide us with the data. For me a presentation would be really helpful so that we can have some back and forth communication. I would also like to ask a question about the...you talked about the three consultants that are working on the Adolescent Drug Treatment Facility and it seems like the feasibility consultant's work should be leading the effort. And I was just wondering when you might anticipate the results of that study? Ms. Koki: I believe we are giving the feasibility consultant nine months to conclude all their research, which will also include the closing the other of the treatment centers in the State of Hawaii. Ms. Nakamura: What was that again now? April 24, 2012 Anti-Drug CIP—Boards & Commissions p.11 Ms. Koki: Ms. Yukimura brought up the closing of the other treatment center regarding how is this treatment center going to survive. That is going to be included in their research. Ms. Nakamura: And so you are looking at the end of this year or early next year for that study? Ms. Koki: Yes. Ms. Nakamura: And in terms of the positions, somebody talked about a program coordinator being a new position, and then I heard an outreach person. Is that the same, one and the same? Ms. Koki: Yes. Ms. Nakamura: And what is the role of that person? What would be the role? Ms. Koki: That person would probably take over the Prevention Committee and the Enforcement Committee, and the Facility Coordinator would take care of the Treatment and the Community Integration Committee, and also that person would be doing presentations and managing whatever contracts, if we do have, with grants for prevention. Ms. Nakamura: That is good. I think this type of presentation the Chair is asking for would help us to see that bigger picture and to see how that ties in because I agree with Councilmember Bynum that the value of your office in doing the facilitation for those four committees is critical because, to me, that is the big gap, bringing everybody together. So I would support making sure your office has the resources to do that moving forward, but I would like to see it in the bigger context. Thank you. Chair Furfaro: Mr. Kuali`i, you have the floor. Mr. Kuali`i: Thank you, Mr. Chair. Aloha and mahalo, Theresa, thank you for your work over time and for bringing all those resources to our community. I did appreciate Councilmember Nakamura's recent questions and you just even breaking it down as to the four approaches, and two being handled by the facility manager and the other two by the new program coordinator. Is that...I basically wanted to see and the Chair's earlier questions, too, about the next presentation in written form to basically see what the focus is and how the resources will be utilized, staffing, funding, and I am interested to know because I have been looking at your website, too, what will continue and what will go away because so much funding has gone away with the grants. This Underage Drinking Plan that was last modified on June 7, 2010; this Drug Response Plan for 2008-2013, again last modified in 2010; and then you have something called the Parent Project, where someone...was it yourself that would go out into the community and do classes for the Parent Project? Ms. Koki: I would be one of them. I believe Ms. Yukimura is also a trained facilitator, and there are about 12 of us left. The Parent Project has recently been relocated to Parenting Central and that is the Department of Education, and they have been doing the Parenting Classes right now. Mr. Kuali`i: So there are a lot of volunteers involved with that. Ms. Koki: Yes. April 24, 2012 Anti-Drug CIP—Boards & Commissions p.12 Mr. Kuali`i: So even without funding that will continue. Ms. Koki: Hopefully. Mr. Kuali`i: Okay, thank you. I look forward to your future presentation or report. Thank you, Chair. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: Thank you. I guess I do not know who I should be asking. Should it be you? Are you the administrator of the drug office now? Ms. Morikami: Yes. Mr. Rapozo: Okay, how much money...I have gone through this budget and I have only found $40,000.00 that the Administration has committed to the anti-drug effort. Is there more that I have not found? Ms. Morikami: At this point it is the $40,000.00. Mr. Rapozo: $40,000.00 from the County to run anti-drug programs. I think that is the big problem right there. That shows a lack of commitment on our part. I think Mr. Bynum raised the coqui frog issue; we put $300,000 in that. While I fully support the $300,000.00 for coqui frog eradication, I also think that we should be funding a little bit more...in fact a lot more for the anti-drug effort, in fact, if that is a priority of this Administration and Council. So that is the first question. The second question is how much is this feasibility study going to cost and have we paid it already or is it in the budget? Is it in the... Ms. Morikami: No, the feasibility consultant is being selected or was just selected, and we are just waiting for credentials to be sure that person has all the documentation. It is my understanding that the feasibility study will be a nine-month program. Estimated cost of that feasibility study is $50,000. Mr. Rapozo: And where is that coming from? Ms. Morikami: It is in the CIP. Mr. Rapozo: It is in the CIP. Ms. Morikami: Yes. Mr. Rapozo: Okay. That is all I have. Chair Furfaro: Go ahead, Mr. Kuali`i. Mr. Kuali`i: Just another quick thought because the saddest part about all of this is how there are no grants in the coming year. So if this County wanted to continue in the direction of the success with the youth prevention grants, there are a lot of grants out there, Federal grants with SAMHSA. Maybe a grant writing position in the anti-drug or the Life's Choices Program would be kind of a critical component to going after those funding because the County can r� t. April 24, 2012 Anti-Drug CIP—Boards & Commissions p.13 play that leadership role in bringing the funds to Kaua`i as you have done and then to the nine partners or just kind of like when the other Councilmembers were talking about being the coordinator of attracting the resources and then putting it back into the community and helping coordinate that partnership, but no thoughts on a grant position or would one of these positions work part-time on that as well? Ms. Koki: Currently I write all of our grants for our office. Prior to that, Ann Wooton used to assist us and she was the Grant Coordinator for the County. I just want to add, too, that after we did this Prevention Providers for the Underage Drinking Grant, ADAD decided three years ago that they were going to just give out the grants to counties. It was a $10 million grant. They had staff in their office as well to run it. After our grants expire in June, all of the prevention providers that were at the table and secured the grant through our request for proposal, ADAD shifted again with new management. As you know with every election they have their Director of Health appointed, and now said that they were going to be the manager of the grant. So some of our prevention providers were given the opportunity...and we were as well, but we did not want to compete against the prevention providers. So we do make sound decisions in our office regarding our collaboration, and they were able to directly apply with ADAD, as now the focus and the shifting of the Administration and ADAD was changed. So, some of our service providers were given the opportunity now to continue their good work. Everything we do and all the money...Mr. Bynum recommended that sometimes we chase money. I see that as a mission drift and we only follow what is in our drug plan. It is expiring soon, but I make sure that we adhere to that plan. We also have the Adolescent Treatment Center in our Drug Plan too. So, we do not change or shift or focus. We have been the way we have been since 2003. I do agree with Mr. Rapozo that we do need more money to take care of what we do. But we also try to empower, like when we do direct service in the schools, we empower the peer education group to take over, and we do not continuously...we try to teach everyone, so they can...like the proverb"you teach a man to fish and he will eat for life." That is what we try to do in our office too. Chair Furfaro: (Inaudible). Always eat fish. Vice Chair. Ms.Yukimura: Actually the present budget is $100,000 if you include Theresa's salary in terms of allocation to the budget. On the status of the Permitting and Design for the Adolescent Drug Treatment, you said that has been encumbered in terms of selecting consultants or you are in the process? Ms. Koki: We have recommended a consultant. We have been in touch with the consultant, but we did not begin negotiations yet. Ms.Yukimura: Is it possible to hold off on those two out of the three until we get the conclusions of the feasibility study, hold off on the Design and Permitting because feasibility is supposed to tell us whether we can go forward or not? If we decide we cannot go forward for whatever reasons and reasonable reasons, but that is why we are doing the feasibility study, it seems that it would be a waste of money to encumber Permitting and Design. Ms. Koki: If I can answer that, we do have a timeline for each consultant and the feasibility consultant will begin work first. There are various stop and go points obviously if the EA does not pan out, we are not going further with the other. But in order to encumber these funds as well, we would like start our negotiations and enter into a contract. We have put all of that in the request for information, and we will be putting it in the contract that there will be some stop and go points, and it is contingent upon funding and the results of the feasibility study. April 24, 2012 Anti-Drug CIP—Boards & Commissions p.14 Ms.Yukimura: But why would anybody start Permitting or Design if there is a possibility that the feasibility study will come out and say it is not feasible? Ms. Koki: There is no design contract. I am not sure what you are alluding to. But the feasibility consultant will have to work with the conception and design, especially for presentations to the community as they discover things, how many beds...they are going to have to give some renderings to the community regarding what is happening. Ms.Yukimura: Who is they? Ms. Koki: The consultant for the feasibility study along with the architect consultant. They are going to be working together at some point so they can do their presentations to us, to yourselves, and to the community to show them, as they have been interviewing people, what it would look like. Ms.Yukimura: So there is a foregone conclusion that it is feasible? Ms. Morikami: No. Mr. Barreira: Vice Chair, excuse me, if I...perhaps looking at the solicitation ad may assist in looking at the scope of the intended project, which we can make available to Council(inaudible). Chair Furfaro: We would like that very much and I think the question from Y q the Vice Chair is one that basically says we are supposed to have a critical path. It is the critical path that we are looking for that starts with a feasibility study. So if you can get that material over to us, we would appreciate it. Mr. Barreira: That could answer some questions, whether there is agreement with the process that was pursued I am not sure, but I think it would answer the question as to how we are pursuing the procurement. Chair Furfaro: We will ask you to send that over. Mr. Barreira: Very good, sir. Ms.Yukimura: Thank you. And my last question is on the results or how you measure the impact of the programs that are being funded through the grants that you are passing through to the community, how are you measuring the impacts communitywide because that is the target, right, to reduce for example underage drinking in the community? Have you selected different measures? Which measures have you selected and what are you tracking in terms of measuring the effectiveness of our efforts? Ms. Koki: I believe I addressed that concern in a correspondence to you earlier that this $10 million grant paid people from the University of Hawai`i to collect that data and evaluation. And we are using the National Outcome Measures assigned through SAMHSA. Kaua`i, and I also put this in the correspondence, has a small sample size, so they were not able to assess our community. The larger information goes into a databank which will be addressing the State of Hawai`i. Some indicators will reflect on Kaua`i regarding the change of the youth and families that participated in the evidenced-based programs. April 24, 2012 Anti-Drug CIP—Boards & Commissions p.15 Ms.Yukimura: So you can give us those specific indicators, like I believe SAMHSA's indicators is use of the drug within 30 days or something like that, right? Ms. Koki: I can actually have, as part of a presentation later on, the University of Hawaii Epidemiology and the Family Center, who is collecting this data that is not available to me yet, to come and do a presentation here if that is the desire of the Council. Ms.Yukimura: That would be excellent and could you still in your report that you are giving to us on the budget,just identify those specific indicators that we will be measuring? Ms. Koki: Sure. Ms.Yukimura: Because I remember the back and forth correspondence. I know that you do program measures, so you do before and after, you know, if the Boys and Girls Club holds this class or KEO holds this class, you do the participants before and after. But I was interested in the islandwide measures if you are doing it. If you are not doing it, then say so. But I think you are saying that you are, right? Ms. Koki: No, I am sorry. Community islandwide we are not. We are doing individuals, and it is pre-, post-, and follow-up surveys of the people that are participating. Ms.Yukimura: So KPAA has done an indicators project, I mean like teen pregnancy rates and so forth. So we are not looking at an islandwide perspective of number of drug-related traffic accidents or alcohol-related teen traffic accidents, whether it is going up or down, that kind of thing? We are not doing...I do not know what the measures would be, but we are not doing islandwide measures is what you are saying. Ms. Koki: No, the sample size is too small to do islandwide measures. Ms.Yukimura: Okay, that would be...I guess we would hear that explanation when you bring the team down. Ms. Koki: I think we had a preliminary report earlier. In June we gave the preliminary report from the first years. It was a book from the Center on Family at the University of Hawai`i. Ms.Yukimura: That was sent to us? Ms. Koki: Yes, and it was given the time I made my presentation, as well, along with our Drug Plan and Underage Drinking Prevention Strategic Plan. Ms.Yukimura: Okay, I apologize for not remembering that. If staff can follow up with that? Ms. Koki: I can give you another one if you want, but that is preliminary data. They are almost ready. In fact, they are doing interviews on May 1 regarding our environmental strategy with our youth and families that are involved in...they are interviewing our staff and all the kids and parents that were involved to finalize the presentation of what we have done so far and measurements of success, etcetera. Ms.Yukimura: That is really exciting actually, and I know that you have really recognized the importance if statistics and have been instrumental in developing a system for that, so thank you because without that, we cannot really measure our program effectiveness. April24, 2012 Anti-Drug CIP—Boards & Commissions p.16 Ms. Koki: Thank you. Chair Furfaro: Theresa, I am going to summarize real quick, if I can, please, on the Life's Choices. I want to make sure that we are asking you that we want something in a presentation that is very clear on where we are going during this transition period and this weak economic times within our community. Two, we want to encourage you, without the kind of staffing that you have had in the past, to be very selective with our limited resources and negotiate programs with partners who can outline the merits of their program up with what you want to provide for us. We also are sharing with Ernie that we would like to see the critical path on the funding as it relates to these programs identified in CIP for the facilities, but we want to start with a critical path that reflects the feasibility study. And then within Mr. Rapozo's Council Committee, if you can identify a visit from our colleagues at the University of Hawai`i, we will go ahead and put you on a Council agenda for Public Safety as requested by Vice Chair Yukimura. Could you give us some kind of idea when we might be seeing some of this narrative back to us? And Paula, we do want it in the format that we have been working on it for two years with the Vice Chair and Councilmember Nakamura's format, and some of the pieces that I think should be in, so everybody has come along on a very nice template. So we would like to make sure we have that template to work with. Ms. Morikami: I apologize for not having that format. Only because we are a part of the Mayor's Office, I believe that is why it was not separate. Thank you. Chair Furfaro: Understood. There is a lot of support for the programs for Theresa at this Council, and we would like to see it in that template form, okay? Would you say we could see it in maybe 10 days? Ms. Morikami: Ten days. Ms. Koki: Okay. Chair Furfaro: Thank you, thank you very much. I think it would be good for us before we go into Parks and Recreation that we take 10-minute recess, and then go to Parks right through. So thank you very much, and we are going to be in recess for 10 minutes. The budget review was recessed at 10:10 a.m. April24, 2012 Parks & Recreation(CIP)p.1 The departmental budget reviews reconvened on April 24, 2012 at 10:27 a.m., and proceeded as follows: Councilmember Bynum (present at 10:36 a.m.) Councilmember Yukimura (present at 10:33 a.m.) PARKS &RECREATION (CIP): Chair Furfaro: We are back from recess. We have five members to start. Lenny, I am going to move to the side table with your presentation. There being no objections, the rules were suspended. LEONARD A. RAPOZO, JR., Director, Parks & Recreation: For the record Director Lenny Rapozo for the Department of Parks & Recreation. We come before you today to discuss our capital improvement presentation. If you recall last year, we came with this similar format, and you all should have been given a copy of our presentation, and last year it was 54 pages long. This year we are blessed to provide for you something in the neighborhood of 76 pages long, the Capital Improvements. We came last year with the Table of Contents, but this year, we decided to break up the Table of Contents into four sections, and these sections are Projects that were Completed over the last year, Ongoing Projects, Proposed New Projects, and Proposed New Projects that were not funded. So to start our presentation, we wanted to show the viewing audience, as well as those here, the projects that we did complete. The Hanapepe Cliffside Basketball Court: The funded cost was $250,000 and the actual cost to complete this project was $131,870.00. And those PIDs remain in your handout with the appropriate page numbers as shown up on the slide. The Isenberg Comfort Station: The funded cost was $135,290.00. The actual cost was $45,802.00. This project also involved ADA tie-ins. We rebuilt the scorer's booth that was burned down, as well as Public Works had to close the cesspool there, and we needed to hook up to the sewer, which is how when I came for the Operating Budget it came to light that we had not been charged a sewer fee for the new site Lihu`e Neighborhood Center, and now we will be charged that cost. Kamalani Pavilion, the reconstruction, which we had funded $250,000. The actual cost was $240,549. The Lydgate Park ADA Campgrounds Improvements: Funded cost was $150,000. The actual cost was $115,192. Lydgate Pond Repair: Funded cost was $500,000, and the actual cost was $322,394.00. The other completed project capital improvement was the Kapa'a New Town Stadium Lighting Retrofit, which was finished last September, late August/early September, and that funded cost was $250,000, but the actual cost was $143,700.00. The Ongoing Projects, Mr. Chair, I will leave it to this body. I can go through every project if that is the wish of this body or if you want to pick out projects to discuss, we can do it that way. I am not real sure how you want to handle this. Chair Furfaro: Well, we have you until 12:30 p.m., so let us go through the projects. Mr. Lenny Rapozo: Let us go. Chair Furfaro: I am sorry, we have you until 12. We have you until 12. Mr. Rapozo: Mr. Chair... Mr. Lenny Rapozo: If that is the case... Chair Furfaro: Excuse me, Lenny. April 24, 2012 Parks &Recreation (CIP)p.2 Mr. Lenny Rapozo: Oh, I am sorry. Mr. Rapozo: I just had a question on one of the Completed Projects. Lenny, I was able to go into Isenberg bathroom this weekend at the softball game, and they did a really good job and the scorer's booth. Both of them were just really good, so thank you very much. The only question or it is a favor really, you know on the Men's restroom, the urinal is facing the entrance. So if somebody walks in while you are making shishi... Mr. Lenny Rapozo: We need to have a... Mr. Rapozo: Can you add just a short small...my concern is...and I used it. My concern, I was just explaining to the Chair on the break, was should a child or someone walk in and go use the bathroom, come out and tell mommy or daddy that I just saw so-and-so's thing. Some problems could...so just a-short narrow barrier. I would appreciate that, thank you. Mr. Lenny Rapozo: Okay. Mr. Rapozo: A what? Chair Furfaro: A screen. Mr. Rapozo: Screen? Chair Furfaro: A wall. Mr. Rapozo: Yes, a wall. Chair Furfaro: I think that is what they call those in the hotel business. Mr. Rapozo: Okay. Mr. Lenny Rapozo: We can do that. Mr. Rapozo: Portuguese call them wall. Mr. Lenny Rapozo: I just wanted to briefly touch that on pages 3 through 6, you are familiar with the Public Works handout that they have all the different funds. From page 3 to 6, what we did was that we took out all the funds that did not apply to parks, so where we do not get money from. And we just left the funds that apply to Parks and hopefully we had enlarged it and made it easier for your viewing and reading. It is the exact same thing that comes out of Public Works, but we made it a little bit easier, hopefully, for you to read and to follow along. (Ms.Yukimura was noted present at 10:33 a.m.) We will start with the ADA Access Barrier Removal. This project here is ongoing. We are going countywide through all the different parks to do the tie-ins for ADA Barrier Removal and Transition Plan Improvements at all of our recreational facilities. Right now the priority facilities that we are working on are Waimea Canyon Park, Kekaha Faye Park, Kekaha Beach Park, `Anini Beach Park, and Hanalei Pavilion. The next project which is the ADA Access Barrier Removal for Parking Lots is similar to what I just described, but it is addressing parking lots at different facilities. This one here we are doing in-house design and construction where we can to do the barrier removal and a transition plan improvements for recreational facilities. Right now the following priority facilities is Anahola Homesteads Park, the parking area; the Anahola Village Park parking; and Laukona Park parking. On page 21, the Hanama'ulu Beach Park Comfort Station and Pavilion, this project...the nature of the project here is the old, as we know it, pavilion and comfort station area. For our department, because of the permitting requirements or what it entails with the shoreline and the beach and everything else involved, initially there were moneys for this, $400,000.00 for this particular project. But we believed that it was too much to handle as a department, and so we made the recommendation to the construction management team of Public Works if they could include this project as one of a packaged project to go and seek outside construction management. April 24, 2012 Parks &Recreation (CIP)p.3 (Mr. Bynum was noted present at 10:36 a.m.) Mr. Rapozo: Question, Mr. Chair. Mr. Furfaro: Go right ahead, Mr. Rapozo. Mr. Rapozo: So this PID is going to be transferred over to Public Woarks? Mr. Lenny Rapozo: Yes. Mr. Rapozo: The one that is in the book right now as far as Section IV where we talk about the SMA permit, July 2010 to February 2011. Has any of that begun? Mr. Lenny Rapozo: None of that has been done. This was a recommendation last year during our CIP meetings, and we may be taking this up when we do the multi-use path that is going to come on the top. So we are considering maybe doing some of this permitting stuff as part of the multi-use path. Mr. Rapozo: Okay. Mr. Lenny Rapozo: Since the path would come down right near this particular... Ms. Nakamura: Chair, I have a follow-up question. Mr. Rapozo: Thank you. Ms. Nakamura: Lenny, how many projects are part of that package that you are transferring over to Public Works? Mr. Lenny Rapozo: Just one,just this one from Parks. Ms. Nakamura: Just this one, thank you. Mr. Lenny Rapozo: This was the only one that we felt we really could not handle as a department. Ms. Nakamura: Thank you. Chair Furfaro: Pau, Nakamura? Yes, okay. Go ahead, Vice Chair. Ms.Yukimura: Congratulations on all your completed projects, and most of them under budget too. Mr. Lenny Rapozo: Thank you. Ms.Yukimura: When these are completed, are they put on a repair and replacement schedule? Mr. Lenny Rapozo: The score...I am not... Ms.Yukimura: Any of these projects, like well, take the first one Hanapepe Cliffside Basketball Court Construction. Just like the Fire Department puts in their engines that they buy on a certain date, they look at replacing it in the fifth year. Mr. Lenny Rapozo: That would be put on a resurfacing schedule for our basketball courts. Ms.Yukimura: You do put it on a resurfacing because that would be the main thing. And then any other... Mr. Lenny Rapozo: Tennis courts, basketball courts. Ms.Yukimura: Okay, that is excellent, and then any other repairs, like change net. Those are things that your caretakers or others will notice and then... April 24, 2012 Parks &Recreation (CIP)p.4 Mr. Lenny Rapozo: Alert us, yes. We would do a work order with Public Works and have it done, yes. Ms.Yukimura: Okay. So the big repairs are put on a schedule, like the resurfacing or like reroofing? Mr. Lenny Rapozo: Correct, correct. The reroofing is not on a schedule. Ms.Yukimura: It is not? Mr. Lenny Rapozo: It is not on a schedule, which is something that we believe we should for all neighborhood centers, comfort stations. I think that is a good idea. As well as painting, we should paint all our facilities X-amount. Ms.Yukimura: Right. Mr. Lenny Rapozo: Half of them maybe this fiscal, you know. Ms.Yukimura: Right, if you can bulk repair them, you can get better bids. Mr. Lenny Rapozo: Yes, and some of the other projects that are missing from here that was packaged...what we try to do is package as that what you are saying. Ms.Yukimura: Right. Mr. Lenny Rapozo: We actually did three scorer's booth. Kalawai Park got theirs done, as well as Isenberg Park, and those are all part of the same package that we sent out to the contractor to complete, same thing like the basketball court. Hanapepe Basketball Court was in the CIP. `Ele`ele Nani, we took the moneys from the Po`ipu... Ms.Yukimura: The Parks Fund? The Parks District money? Y Mr. Lenny Rapozo: Well, we took moneys from there to fund that project, and again, it is packaged together. The funding sources were from different places, but it is packaged together. Ms.Yukimura: I think the packaging idea is a good one. Okay, thank you. Chair Furfaro: Excuse me, may I ask Ernie to come up for a moment. Ernie, just to get some clarification on Vice Chair Yukimura's question, there is a repair and maintenance line item for items that need ongoing care, tennis mats and so forth, but do we not have a reserve schedule for roofs, painting, and surfaces? ERNEST BARREIRA, Budget and Purchasing Director: I would not be able to answer that, Chair. I would have to defer to the department heads. Chair Furfaro: I will send the question. I would think roofs, painting, and flooring, that we would have some kind of reserve account. I will send it over as a question. Mr. Barreira: We will respond timely. Thank you. Chair Furfaro: Thank you. Mr. Chang. Mr. Chang: Chair, you mind if I just ask a real quick question regarding the completed... Chair Furfaro: Of Ernie? Mr. Chang: No, of Lenny of the completed projects? Chair Furfaro: Go ahead. Mr. Chang: Mr. Rapozo, good morning. April 24, 2012 Parks &Recreation(CIP)p.5 Mr. Lenny Rapozo: Good morning. Mr. Chang: Can you just explain to the viewing audience and the public, your completed projects, we actually saved about $500,000.00 in the completed projects. Can you just inform the public what was mainly or some of the reasons for the savings and what then becomes of the rollover, the savings? Thank you. Mr. Lenny Rapozo: You know Councilmember Chang, I believe when we work with the consultants, they give us what they believe the number would be in terms of what it would cost to do the project. Right now, I think a lot of contractors need the work, and so it is a really good time at a benefit to the County to get these projects done at such a low cost, but it also provides jobs in our community for everybody that is in the construction business. So I believe it is a culmination of right time, the timing is right, and our consultants at the time when they made the determination of what it may cost had been during the time when construction was booming or a little bit better than what it is now. Mr. Chang: So is it maybe like a little bit of a good assumption that some of the ongoing projects will come under? Mr. Lenny Rapozo: We are very hopeful for that, yes. Mr. Chang: Which is great news. Okay, thank you. Just so we can explain that (inaudible). Thank you. Chair Furfaro: Go right ahead, Lenny. Mr. Lenny Rapozo: Thank you. Bleacher Replacement Program: We currently have bleachers in our County Parks that are still wooden bleachers, and we are moving from wooden bleachers to aluminum bleachers. So this particular CIP is to address those changes in our parks. Recently we were moving bleachers just to help with the different events in different parks where these wooden bleachers had either become too old, unusable, and until we get the new bleachers in, we have to do stuff like this in order for the functions to happen, such as down at Peter Rayno Park and other places. On page 25, we have a bleacher replacement timeline that we are doing for all the different parks. Some of them have been completed; others are in the process right now. So if you look from Fiscal Year 2013, it will identify the cost and where the money is coming out from, and the Y Y g > amount of bleachers, the five-row bleachers, ten-row elevated p ermanent bleachers for Hanapepe Stadium. That i s another one that we are doing with the consultant. Right now, it is design work for Hanapepe. Mr. Rapozo: Question, Mr. Chair. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: That Hanapepe Stadium permanent bleacher replacement, is that for the visitor side or is that... Mr. Lenny Rapozo: No, that is the press box. Mr. Rapozo: The press box side? Mr. Lenny Rapozo: The press box side. Mr. Rapozo: The one complaint that I hear from a lot of people for Hanapepe Stadium and Kapa`a, as well, the bleachers do not go high enough, so they do not have a chance to see the game. Is that going to be addressed with the new order? Mr. Lenny Rapozo: The one in Hanapepe, would be to replace exactly what we have there currently. Mr. Rapozo: Hanapepe, I do not hear as much. Kapa'a obviously, I think you know that one is bad. April 24, 2012 Parks &Recreation(CIP)p.6 Mr. Lenny Rapozo: Yes, yes, the Kapa'a one, initially when they put in those bleachers, they actually should have gone higher, but they never got to that phase of the project. So that needs to be done. Mr. Rapozo: Is that going to be part of that... Mr. Lenny Rapozo: It is not in this one. Mr. Rapozo: Oh, it is not in this one. Mr. Lenny Rapozo: No, we would have to look at that as being a future project. Mr. Rapozo: Okay, thank you. Chair Furfaro: Go right ahead. Ms. Nakamura: On the fiscal year 2013-2014, the Kapa'a New Park Little League/Pony/Softball Field, is that bleachers on the far left Lihu`e end of the park? Mr. Lenny Rapozo: The Kapa`a, yes, that would be the Little League and the...yes. This would be the whole field, Kapa'a New Town Park. That would be... Ms. Nakamura: Because there are multiple fields, right? Mr. Lenny Rapozo: Right, so the Little League field, the Pony field, and the softball field. Ms. Nakamura: Okay. Mr. Lenny Rapozo: So that would be the one by the tennis court, the one in the middle, and the Little League field. Ms. Nakamura: Okay, thank you. Mr. Lenny Rapozo: The Islandwide Park Improvement & Equipment — this was where we purchased some of the park soccer goals, football goal posts, score boards. This is kind of the catchall for some of our park improvements that we need to do. Moving on to page 29, which is the Kapa'a Stadium Improvements. We are currently in the bidding process for the construction of the new locker rooms. We had hoped to have this bidding process completed at the beginning of April, but in working with the contractors who are bidding, they had some questions as to the design, and amendments had to be made to the bid specs. So it has kind of continued and hopefully construction will go out or will be ready to go out in May for this one. Any questions on this one? I know this is a long time. Chair Furfaro: Let me ask you, a few years back we bought materials that were in the baseyard for the purpose of being used for the new locker facilities. I guess because of time and exposure to the elements we were able to use those materials in other places? Mr. Lenny Rapozo: My understanding, some of those materials were used at other places, and some of the material, because of the weather that had gotten to it, may not be a good idea to use it in the current project. Chair Furfaro: The current project will probably be using all new materials. Mr. Lenny Rapozo: New materials, correct. And this one here, the State has matched us with $500,000.00 as well as County money, so we have a million, a million dollars because two years ago the Mayor went to the Legislature and said KIF sports, DOE function, you folks should help share in the cost, and they were successful in getting $500,000.00 from the Legislature for this particular project. Chair Furfaro: I happen to agree with him since all of the sports activities are tied to the Department of Education, which is a State agency. But I am concerned that we have April 24, 2012 Parks &Recreation(CIP) p.7 consumed the materials that we first bought and everything else we are going to start with new materials. Mr. Lenny Rapozo: Yes. Chair Furfaro: Thank you, Lenny. Vice Chair Yukimura. Ms.Yukimura: Yes, am I missing it. Is that State match anywhere in the PID? I see the cost and timetable, a million. It just would be helpful in future PIDs to include when we have State matches or any kind of match, Federal or State. Mr. Lenny Rapozo: Okay. Ms.Yukimura: Thank you. Chair Furfaro: Mr. Bynum. Mr. Bynum: Excuse me, I am confused about the format. Are we just asking any questions about CIP... Chair Furfaro: No, just for the few moments you were outside, Mr. Bynum, , J Y Y , Lenny wanted to know if we wanted the condensed version, and we said no, let us go through the list and we will query as we go through the list. Mr. Bynum: Through this one. Chair Furfaro: And that is the list. Mr. Bynum: Okay, so we are going through them one by one. Chair Furfaro: The detail is in his Parks book. Mr. Bynum: And then we will go to general questions. Chair Furfaro: Yes. Mr. Bynum: Okay, thank you. Chair Furfaro: Okay, that is what we are doing. Councilmember Nakamura. Ms. Nakamura: Lenny on page 3 of your report there are two line items for Kapa'a Stadium Improvements. So I was just wondering, the locker room replacement construction is which one? The $400,000 or the $499,000? Mr. Lenny Rapozo: Both, both. Ms. Nakamura: Okay. So... Mr. Lenny Rapozo: It is kind of like...even the lighting retrofit, you see the numbers they are all for the same project. Ms. Nakamura: Okay, and at one time you had funding for the field replacement at the Ka a a Stadium. Was that taken out or is that in here in a different... p p Mr. Lenny Rapozo: As far as the County costs, we looked at probably irrigation would be our County cost, and we were going to use in-house labor and machines to do the project. The grass is going to be donated by the Kiahuna Golf Course. Ms. Nakamura: Really. Mr. Lenny Rapozo: So it would be minimal expense for us. Ms. Nakamura: All right, thank you for that clarification. g April 24, 2012 Parks &Recreation (CIP) p.8 Chair Furfaro: Lenny, make sure that we get a letter reflecting that donation. Mr. Lenny Rapozo: Correct, yes, yes. Chair Furfaro: Councilmember Yukimura, then Mr. Bynum, you had a question, and then Mr. Rapozo. Ms.Yukimura: So your page 3 shows total of$899,000. Mr. Lenny Rapozo: Yes. Ms.Yukimura: And then there is half a million from the State, so we are looking at about one point... Mr. Lenny Rapozo: Five. Ms.Yukimura: Yes, 1.5. Now that is all for the locker room facility? Mr. Lenny Rapozo: Yes. Ms.Yukimura: That is basically a building with locker rooms. Is that... Mr. Lenny Rapozo: Shower, heaters. Ms.Yukimura: And that is part of a master plan for the Stadium Park? Is there a Master Plan for the Stadium Park? Mr. Lenny Rapozo: It is in the Parks Master Plan, but this is a project that was a community build project when they first did it and it sort of stopped. We picked the project up. It was a community project that, I believe, the design was also donated, and it came here. So we just picked the project up after the project that seemed to have stopped out there. Ms.Yukimura: Okay, that is all good. The question is what is the master plan for the park? What is the long-range...do you see it building out or is the locker room going to be the last improvement for that park? Mr. Lenny Rapozo: I believe right now that would probably be the last improvement because this park is an LWCF Park, Land and Water Conservation Fund Park. In order to get the locker room approved, we had to look at...it was pretty interesting in looking at when the grant was given to us from the State, the EO. And it was...I cannot remember the exact date, but... Ms.Yukimura: You mean the land? Mr. Lenny Rapozo: Yes, the EO came over and the use of the park... Ms.Yukimura: Executive Order, right? Mr. Lenny Rapozo: Yes, the use of the park had football included already, so that allowed us to put this particular amenity into the park. As much as we want to do a bus shelter at the park, where the bus thing is, they will not allow us because it takes away thi... Ms.Yukimura: That is insanity. Mr. Lenny Rapozo: You and I see it that way, but... Ms.Yukimura: Kids have to get to the park to play. Mr. Lenny Rapozo: You and I see it like that. They are okay with the bus stop, but not the bus shelter that we wanted to do. I believe, yes, that this would probably be the last. What I am hoping to do, though, is with the 13-acre soccer further down is somehow tie it in with this as being a stadium complex one day and hopefully with those added lands that would allow us to do more things. April 24, 2012 Parks &Recreation(CIP) p.9 Ms.Yukimura: It is because of the Federal regulations governing the Land Conservation and... Mr. Lenny Rapozo: Water Fund. Land and Water Conservation Fund. Ms.Yukimura: Land and Water Conservation Fund. Mr. Lenny Rapozo: Yes. Ms.Yukimura: That, to me, is a very anti-smart growth Federal provision that we should look to change at the Federal level. Anyway, can you or your staff send me that Federal legislation or the Federal rules and regs that prohibit that kind of connectivity and that failed to recognize the connection between transportation...they will let you build a parking lot, right? They will let you build a parking lot for cars, but not a bus shelter for bus riders? That is really strange. Mr. Lenny Rapozo: I am not sure if they know about the parking lot after we requested to put the bus shelter on there and we got stopped. We thought it would be added to the park because people want to get to the park, but also wait to leave the park and provide protection. We thought it would be a good amenity, but it was not approved. Ms.Yukimura: If you could send me background information, I will try to change it. Mr. Lenny Rapozo: Okay. Ms.Yukimura: Thank you. Chair Furfaro: Would you yield the floor to Mr. Bynum? Ms.Yukimura: I am done, thank you. Chair Furfaro: Mr. Bynum. Mr. Bynum: You mentioned the...I thought it was 11 acres, 13 acres. Mr. Lenny Rapozo: 11 acres, okay. Mr. Bynum: And so my first question: Is this the right time to ask questions about that? Mr. Lenny Rapozo: The 11-acre soccer park? Mr. Bynum: Yes. Mr. Lenny Rapozo: Sure. Mr. Bynum: I have been asking this question and I still...maybe it is my fault, but I do not have the answer. This is a project that had legs. We spent money. We have a design and permit, I believe. Mr. Lenny Rapozo: We have a conceptual design and an EA for that. Mr. Bynum: And so I do not see any money in the budget to take this project further. Is that correct? Mr. Lenny Rapozo: For the soccer park? Mr. Bynum: Yes. Mr. Lenny Rapozo: Yes. Mr. Bynum: So it is still on the back burner. April 24, 2012 Parks & Recreation(CIP) p.10 Mr. Lenny Rapozo: That would be something that we will be addressing next budget. Mr. Bynum: I just want to reiterate now for the public record, there is a large constituency in Kapa'a Town and a new one even, people have been asking me to get this 11-acre park done so we can redo the Town Park into the kind of passive park that I think it was originally intended to be. And this is an Economic Development issue; it is the Kapa'a business people are asking for this, and we spent money, and we went down that track, and it has been stalled since the Mayor has been the Mayor, which is now like four or five years. How do we get this project back on track? Mr. Lenny Rapozo: Well, Councilmember Bynum, it is no fault of really the Mayor other than we have a lot of projects in Parks and as I had mentioned to you in one of our meetings that we would be going forward with that as soon as we had certain amounts of these projects completed or in construction, and we are getting there. Mr. Bynum: So Lenny, this is a project that was moving. We have had it on the radar screen. It is critical and important for Kapa'a for many reasons. It has a constituency, and then for five years it is just dead stalled. Last year you said oh, we will put it back in the hopper and now we are here with a new year and there is no movement on that. As long there is no movement on that, then there is no changes to Kapa'a Town Park, right? Mr. Lenny Rapozo: Yes. Mr. Bynum: And so there is a big constituency behind us, and we had a commitment, and now it has been dead in the water for five years. And now it will be one more year at least. Mr. Lenny Rapozo: It was dead in the water when I became the director, but as I had mentioned to you in one of our meetings, Councilmember Bynum, that we were going to address that as soon as we get the locker rooms to construction and look at doing the finishing of the light retrofit project, which are two huge projects for us. Mr. Bynum: And that was the answer more than a year ago. Mr. Lenny Rapozo: Yes and we are still moving that... Mr. Bynum: Now it is a year later and there is no intention to do anything... Mr. Lenny Rapozo: Councilmember Bynum, we go as fast as government allows us to go with our projects. Mr. Bynum: But it is about priorities and when we go out to the community and we say hey, here is a priority and we fund it, and we move in that direction, and then we stop and move on to a different project, and there is no discussion with the Council about those priorities, that is my concern. It is going to come up later in this budget about the Lihu`e Baseball Stadium. Mr. Lenny Rapozo: Sure. Mr. Bynum: Which you are talking about taking money out of. Mr. Lenny Rapozo: I did not talk about taking money out, Councilmember Bynum. Mr. Bynum: It is in the budget... Mr. Rapozo: Mr. Chair, can we stay to one item, please, and then we can get to Lihu`e Baseball later because I think we have a couple of questions on this side for the stadium. Chair Furfaro: Well let me say, Mr. Bynum, pose your question as a question. April 24, 2012 Parks & Recreation(CIP) p.11 Mr. Bynum: When can we see movement on the 11-acre soccer park. Mr. Lenny Rapozo: As I had mentioned to you earlier, Mr. Bynum, when we move those two other big projects to construction, we will start working on that one. Mr. Bynum: So at least two more years. Mr. Lenny Rapozo: No. Mr. Bynum: Well, it is not in the budget for next fiscal year, so it is going to be at least a year and a half, right? Mr. Lenny Rapozo: We are not ready to go to construction, so it will not come within the next...but we do have the EA and a conceptual design that we can move forward from there. Mr. Bynum: And we have had that for about five years. Mr. Lenny Rapozo: Well, since 2008 when I came aboard, yes, December. I saw it then and it was there then. Chair Furfaro: So Lenny, your answer for Mr. Bynum—I want to make sure—after the light retrofit, after the locker rooms, this project will appear on the radar screen again. Mr. Lenny Rapozo: Sure, yes. Chair Furfaro: Is that correct? Mr. Lenny Rapozo: Yes. Mr. Bynum: We are still on the Kapa'a Town Park, right? I will let it go. Chair Furfaro: We can come back. I am not asking you to let it go. We can come back and summarize stuff at the end. Mr. Bynum: Mr. Chair, I just do not understand how we can make a commitment to the community, spend County money, move in a direction, and then delay it seven years. I do not know. And then move on to new projects that were not on the radar screen prior. Chair Furfaro: Well here. Mr. Bynum: Does the Administration get to set those priorities unilaterally? Chair Furfaro: Here is the answer. That is exactly the way you summarized it. Once we allocate the money in the CIP, the Administration can move those funds, unfortunately. Mr. Bynum: So I suppose our only option then would be to take some of these new projects that have superseded and deny funding and put funding back into the project that we wanted, but then the Administration does not have to do it, right? Chair Furfaro: I would not want to get into a full debate of what the Administration can or cannot do. I was just trying to answer how I understand CIP. Mr. Rapozo said to us that it will be on the radar screen after the light retrofit and after the locker room construction. That is what I heard. Mr. Rapozo. Mr. Rapozo: Thank you and Lenny, first of all, I support the Administration's process that anything outside of 18 months, we are not going to fund. I think that is a more realistic approach. We may not agree on all the projects that you folks have selected, but that, again, Mr. Bynum is correct. We have an opportunity to remove any project that we collectively feel, but my question is Kapa'a Stadium Improvements. Another complaint that we have heard and III we have met with several of the users of the park is the safety of the space available between the April 24, 2012 Parks &Recreation(CIP) p.12 field and the bleachers. And last year, Kapa'a High School did not play, I guess. I do not know what the arrangement or how they chose not to participate at that field and whatever happened happened. But I guess my concern is I hate to be spending a million dollars on locker rooms and then we are not going to use it for the high school. And I think the Pop Warner and AYF still use the field. So I am not sure what the plan is going forward, but I would assume if we were to expand the stadium wider, that would be a significant cost. So that is not in your plan at this time? Mr. Lenny Rapozo: There was some discussion, yes. Mr. Rapozo: Is that a possibility going forward, obviously not this year but? Mr. Lenny Rapozo: Yes, that is a possibility. Mr. Rapozo: So I would assume that... Mr. Lenny Rapozo: Along with you...the higher... Mr. Rapozo: Yes, the higher...that I think is number one because it is hard to see anything from that bleacher. So I am assuming that this locker room, where it is going to be placed, would be placed in a position that would allow for expansion? Mr. Lenny Rapozo: Definitely. Mr. Rapozo: Okay, thank you. Chair Furfaro: Councilmember Nakamura, then Mr. Bynum, we will come back to you. Ms. Nakamura: This is just for information that we have had some discussions with Lenny, with Administrators of Kapa'a High School, some of the coaches there who use the stadium to get an idea of what some of their concerns were with respect to the field, just the stadium itself. And we will be setting up a meeting—I think it is early next month with Lenny and all the different players—to just get a discussion about what their priorities are and how that would fit in with the County process and funding. So there are a lot of concerns because some people in the community want that field to be used as a home field, and it is currently not for a variety of reasons. And so the discussion is to go over those specific concerns, and to try to find some common solutions. And so I just wanted to bring you up to date on that. Chair Furfaro: Mr. Bynum. Mr. Bynum: I know this history. I worked in the Baptiste Administration when we had the first discussions with Kapa'a about making that the home field. And so I think it is really important to answer these questions before we commit substantial new sums because my understanding, and I just want to make sure I have this correct, Lenny, there was an intention to make that Kapa'a's home field. There are some inherent difficulties because of the constraints. I know we discussed bleachers, and then the ones that ended up there were not the ones we initially discussed. Have I got that right? Mr. Lenny Rapozo: I was not part of the construction of the current bleachers, but my understanding is that bleachers would have extended. That was just the first phase of it, and that they were supposed to go higher... Mr. Bynum: Right because I remember I was talking about how the bleachers could actually extend past the light poles. Mr. Lenny Rapozo: Right. Mr. Bynum: And integrate the light poles. Mr. Lenny Rapozo: Correct. Mr. Bynum: And so that was a concern. The quality of the playing surface was a concern, and the lack of locker rooms. If those things are overcome as Coach Morgado, for April 24, 2012 Parks &Recreation(CIP) p.13 instance, wanted to play football games there, I think a lot of the criticism came this year about p Y g � Y using that facility, is my understanding, from the current football coach, correct? Mr. Lenny Rapozo: The correct thing is I am the guy that brought up the concerns because I have been trying to shut down the field for the last two years. I have tried to make that field, for the Kapa'a kids, as good as it is at Vidinha and Hanapepe. From the day that field opened, I have been running on that field. I have packed more JVWs on my body than most anybody else. I have not blown out a knee, but I wanted to improve the field to give the kids of Kapa'a the type of field...from day one when that field opened the field was as it is. So long before Coach Morgado came, in fact Parks has done a good job of trying to address the field as best as they can. But I felt that instead of doing this band-aid approach, I wanted to shut down the field and give the Kapa'a kids the field that they have at Vidinha and at Hanapepe. I was the one that brought it out and Coach Morgado is the one that has taken it to the level it has been taken. Mr. Bynum: Well I appreciate that answer and I agree with you that was the original intent to give a field that would be competitive with Vidinha and would have equal safety and amenities, or as close to equal as possible. And so my question is if we come to that state, is there a consensus that that should be the Kapa'a home field and football will be played there in the future. Mr. Lenny Rapozo: It is not our decision to make. It is Kapa'a High School. We provide the facility for them to use. If they want to call that their home field, they can call it their home field. Mr. Bynum: But the current intention is to do the things that you just said. Mr. Lenny Rapozo: Yes, it has been my intention. Mr. Bynum: The surfacing and the bleachers and the locker rooms. Mr. Lenny Rapozo: The locker room and the field for now, yes. Mr. Bynum: To the level of standards that it would be attractive for Kapa'a High School to play there. Mr. Lenny Rapozo: Yes, and Pop Warner continues to play, and KYF continues to play there. Mr. Bynum: By redoing the field surface will at some point mean taking it...closing it to redo turf, correct? Mr. Lenny Rapozo: What we intend to do is put Seashore Paspalum. We have had a lot of success, especially at the Peter Rayno Park lately and at our golf course. We have the in-house talent, I believe, to convert the field to Seashore Paspalum. Mr. Bynum: Thank you. Chair Furfaro: Before we go any further, will the meeting that Councilmember Nakamura talked about that is upcoming, getting all the stakeholders involved, that meeting was to be with Councilmember Nakamura and myself. If you have a good reason to convince me not to be the one to participate, I could yield the floor, but right now we are on target to have a follow-up meeting, and we will share additional information as we hear from all the stakeholders. Councilmember Nakamura, you have the floor. Ms. Nakamura: Just to follow up on that, I just want to recognize Mr. Rapozo's strong intentions to improve the field. Communications have not always been clear from the high school side, and I think this attempt is to bring some clarity on that side because there are multiple players involved. I think you have gone out of your way to present some choices and so hopefully we can move that along. Mr. Lenny Rapozo: Thank you and your help in facilitating our discussions is helping as well. April 24, 2012 Parks &Recreation(CIP)p.14 Chair Furfaro: So Lenny, I appreciate the discussion we had as well in my office, and on that note we will move on to Vice Chair Yukimura. Ms.Yukimura: And I appreciate having this information and clarity about what our goal is out there at the Kapa'a Stadium. I have not been as involved, so I appreciate the information that has been shared right here, and I am sure the community does too. Just my one question is it is our goal, then, to have it be a full-fledged stadium that will be adequate and, as Councilmember Bynum said, competitive with Vidinha and Hanapepe. And the surfacing, which you say is possible on grass is going to be sufficient to bring the surface to... Mr. Lenny Rapozo: Oh no, we would have to take what is there out and redo the field in terms of getting it level again, getting rid of the holes that are there. Ms.Yukimura: Okay, so it is grading. Mr. Lenny Rapozo: Change the irrigation system. We do not think that is a good idea the irrigation system that they have, and then we would put the new grass in and hopefully get it to the level of Vidinha. Ms.Yukimura: And the irrigation system was put in just a few years ago. Mr. Lenny Rapozo: Yes, but it is all over the field. You do not play football and the irrigation is all over field. Ms.Yukimura: Was that done with community... Mr. Lenny Rapozo: The community had good intentions. Ms.Yukimura: Yes, I know that. But as we know good intentions are not sufficient sometimes. Mr. Lenny Rapozo: Sometimes, right. Ms.Yukimura: And so it is...and I think I see Parks asserting more and more of this, that you have to get the design down well and functionally, and maybe that has to be done by a hired professional consultant. Otherwise, there is a waste of both community resources and good will and money, right. So my question is in the remake or in the redoing and renovation of the field, is it your intention to go out to get a redesign of the irrigation system and get expert help in doing that? Mr. Lenny Rapozo: I believe our golf course people have the knowledge as to what type. I think our Parks Maintenance Chief, his experience, with the help of the Kiahuna Golf Director, Maintenance Sup erintendant, his input. Ms.Yukimura: Golf and football are different. Mr. Lenny Rapozo: The sport is, but grass, in irrigating grass. Ms.Yukimura: Okay, but the surface used is different too, right? Mr. Lenny Rapozo: We are irrigating grass. Ms.Yukimura: Okay, all right, I am just wanting some assurance that the process that is envisioned will get us to our end goal. That is all I am asking. Mr. Lenny Rapozo: Yes, yes. Ms.Yukimura: In the most cost effective way. Mr. Lenny Rapozo: Yes. Ms.Yukimura: Thank you. April 24, 2012 Parks &Recreation(CIP) p.15 Chair Furfaro: We will know more on that as we start to include stakeholders through the DOE and the community. Mr. Rapozo, do you have a question? Mr. Rapozo: Yes, one last question. The irrigation at Hanapepe and Lihu`e are... Mr. Lenny Rapozo: Crawlers. Mr. Rapozo: Are what? Mr. Lenny Rapozo: We have what they call sprinkler crawlers. Mr. Rapozo: Oh, it is not underground? Mr. Lenny Rapozo: It is not underground. Mr. Rapozo: Oh, so you are looking at underground... Mr. Lenny Rapozo: We were thinking about doing that. Mr. Rapozo: For Kapa`a? Mr. Lenny Rapozo: Yes. Mr. Rapozo: For that type of grass that is probably the best. Mr. Lenny Rapozo: It will work. The crawlers will work too, but for Park maintenance staff, it is easier to have something...a sprinkler as opposed...because they have to move the crawlers. Mr. Rapozo: I see. I do not know what they do at Hanapepe and Vidinha, but those fields are fabulous, and anyone that comes from the outer islands to play here, whether it is high school or Pop Warner, they cannot believe the quality. So I had always thought it was drip irrigation, but if it is crawlers, it is crawlers and labor intensive, but whatever it is it works. How long do you think you would have to shut down the field to get the Paspalum to actually catch and be fit. Is it probably a year? Mr. Lenny Rapozo: During the spring/summer months is the best time to grow grass, hot long days. So we had envisioned or we had hoped from March to August, six months. But with graduation, that has been the key in completing the project. So, as opposed to having...it cannot be just any six months. Mr. Rapozo: Right. Mr. Lenny Rapozo: If we do it in the fall when there is not as much...grass is like a human being. So during the wintertime it is cold. It is a living organism. It is going to... Mr. Rapozo: Curl up. Mr. Lenny Rapozo: It is not going to grow. It is going to curl up. It is going to try to be warm. So the best time to grow, like I had mentioned, is during the spring and summer months. Mr. Rapozo: Years ago I was at Kiahuna because they had offered...this was before, I believe, you were there, but they had offered to donate some of that grass for some of our parks. Mr. Lenny Rapozo: Exactly. Mr. Rapozo: The gentleman had showed me where they had started the Paspalum in patches so that it would take over, and it does not take that long. The abuse of football or soccer may affect...golf is a little different; you just walk, but on football and soccer... I am just curious how long we would...obviously you would have to wait for that field to set properly before we open it up. But it is a very durable grass. April 24, 2012 Parks &Recreation (CIP)p.16 Mr. Lenny Rapozo: If you read about Seashore, it is a hardy grass. It should be a durable, less water, herbicides, and that is why we strongly want to use that, yes. Mr. Rapozo: Thank you, Mr. Chair. Chair Furfaro: So, Lenny, as a follow-up, I just want to share this. This is after a follow-up meeting regarding the Kapa'a New Park football and/or soccer stadium use. It says, please review the memorandum provided and provide us a written report during the budget process. We would like you to address these issues during the budget review process in order to have a respective timeline for budgeting. The items in there include questions about the uneven field, any ADA concerns about walkways, the lack of locker rooms, and our locker room approach, also the spectator experience that Mr. Rapozo talked about with the higher bleachers, the crowded announcer's booth and a rebuild or relocation, and the concession stand which is in badly need of repair. What portions of the scope that I have just listed are you addressing first? The field? Mr. Lenny Rapozo: The field, the locker room. I am working with community Little League Association that we think or we know if we are going to do like the Stadium Complex, the food booth is not adequate. So we are looking at doing designs where we can make it a commercial type of food booth, and of course expand it, but again, we have the LWCF issues to work with. And it is my intention of the additional soccer field, we put in and then we replace with something equal or of better value. So that is the long-term of that, but immediately, yes. The ADA issues, I believe, we have the connections, and that is going to be the other challenge. If we were to move the bleachers back, we have to move the walkways...the sidewalk back. Those are going to be the costs involved. Chair Furfaro: Okay, well we look forward to some ongoing discussion on this. Let us move on with your presentation. Mr. Lenny Rapozo: The next one is Kekaha Gardens Park and this is a park that has been long overdue. I understand this was from the 1980s. 1970s? 1960s? But we are moving where we have plans being drawn up with a consultant, and in completing this project, the time with the consultant had elapsed. So we had to go back out and do the procurement for the consultant to finish the work, and we have done that. We are going to award the new design contract next month in May. The community input of this project was done when the Hawaiian Homes, the people there were not in their homes; that is a relatively new subdivision. So as part of the new scope for this Kekaha Gardens Park was that...I met with the neighborhood association and that was a lot of their concern is that they never had really any input. That was really done by the other Kekaha Gardens community that lives closer to the Kekaha Park. So as part of the new scope for this Kekaha Gardens with the contractor or with the consultant, we asked for him to go one more time into the community, and I did tell the community that we were going to do this to get their input as to if they wanted to...they seemed pretty satisfied with what the amenities will be in the park. It is just getting it done. They have some concerns with some of the other stuffs within the park, so the g g Y p , consultant will go back out there and get their input, and hopefully we can complete this project as soon as possible. Increment 2, the initial park there, there were some LWCF funds into the park where they did the fencing and some of the stuff that is in there now, but we believe there are some matching funds in LWCF that can qualify for the next phase, which we will be applying for, as well as the current$668,500.00 that was done in the 2005 bond for this project. Chair Furfaro: Vice Chair Yukimura, then Mr. Bynum. Ms.Yukimura: Thank you. So how much Land and Water Conservation moneys are there? Is that... Mr. Lenny Rapozo: $200,000. We are applying for $200,000, in addition to what is currently listed there. Ms.Yukimura: That is still in application process now. Mr. Lenny Rapozo: Yes. Ms.Yukimura: And so with the $800,000, you would have a million dollars? April 24, 2012 Parks &Recreation(CIP)p.17 Mr. Lenny Rapozo: No, we would have 800. We have 6685, yes. Ms.Yukimura: Right, so with the... Mr. Lenny Rapozo: 200. Ms.Yukimura: Yes, you would have a million? Mr. Lenny Rapozo: 800. Ms.Yukimura: Oh, you would have 8...I am sorry, a total, okay. But you have construction down as a million. So you are planning to come back later? Mr. Lenny Rapozo: We will see what...hopefully. Ms.Yukimura: Right now you are in the planning and design stage. Mr. Lenny Rapozo: Correct. Ms.Yukimura: And so you are needing...your PID says... Mr. Lenny Rapozo: We think we are going to need a million dollars, yes. Ms.Yukimura: Okay, but the construction of a million is in addition to the 131, plans and design. I am assuming this PID is current. Mr. Lenny Rapozo: Yes. Ms.Yukimura: So right now you have enough for plans and designs, but not for construction. You have a lot more than you need for plans and designs. Lenny Rapozo:L li Y Rp ozo: Yes. Ms.Yukimura: And your timetable on this? Mr. Lenny Rapozo: The new contract with the consultant should be in place in May, next month. Ms.Yukimura: So then you are planning to have the design completed by...oh, next year. Mr. Lenny Rapozo: Yes. Ms.Yukimura: And so construction... Mr. Lenny Rapozo: We hope to bid out in June 2013. Ms.Yukimura: Okay, thank you. Chair Furfaro: Other questions? Mr. Bynum. Mr. Bynum: How much usable grass is in Kekaha Gardens Park right now? Mr. Lenny Rapozo: I cannot answer you, that question off the top of my head. Mr. Bynum: It says that in 2000 community volunteers constructed a pavilion, installed grass, and an irrigation system. What is the status of that grass and irrigation system right now? Mr. Lenny Rapozo: I do not know off the top of my head. I can get you the answer. April 24, 2012 Parks &Recreation(CIP)p.18 Mr. Bynum: I am sorry? Mr. Lenny Rapozo: I can get you that answer. I do not have that answer. Mr. Bynum: Okay, I will wait for it. Chair Furfaro: Councilmember Nakamura, did you have a question on Kekaha? Anybody else? If not, let us move on. Mr. Lenny Rapozo: The Kaua`i Memorial Convention Hall Improvements. Of course the chairs are being replaced. We have the contractor on-board and is currently doing the demolition work for the 1,095 theater seats at the Convention Hall. Chair Furfaro: Congratulations on that. • Mr. Lenny Rapozo: Eddie has done a lot of pushing for that, no less, well done. Chair Furfaro: Please let him know the entire Council thanks him for his diligence. No questions there, next. Mr. Lenny Rapozo: The Park Lighting Retrofit Project. On page 36, I am sorry, is a picture of the type of ceiling we will be putting into the Convention Hall for your viewing. Page 36 is the ceiling. Page 37 is the PID for the remove, replace of existing 24 sets of jalousie windows of the ticket office, the lobby, women's and men's restrooms, the kitchen, the large Exhibit Hall, and Exhibit Hall restrooms and storage rooms. Again, these things were original, so they are long overdue in terms of needing to be replaced. The Lighting Retrofit Project on page 39 is the balance of all park facilities that we are currently in design for. We know the three stadiums have been done, Isenberg Park has been done, Peter Rayno Park, the Lihu`e tennis court has been done. The Kapa'a New Town, the Stadium Park has been completed. The ongoing is the Kilauea Softball field. We are advertising for construction bids July through August of this year, and hopefully we can go to construction in August of this year. The Kapa'a New Town Park would also be packaged with the Kilauea Softball for bid and construction July of this year. The balance of the projects are stated on the bottom. Kapa'a New Town Park, which would be like the tennis court and hockey rink area. The Waioli Town Park basketball court, the Wailua Houselots tennis court, Hanapepe Stadium tennis courts, the Waimea Canyon Park, Koloa Park, Wailua Homesteads Park tennis courts, Kalawai Park, Kekaha Faye Park, Anahola Village Park, and Vidinha Stadium parking lot. Currently we are in plan and design for all of these. We anticipate the design to be finished by August of this year and out to bid January and construction...this is a mistake. Chair Furfaro: Excuse me, Lenny, I have Mr. Rezentes that wants to come up, I believe. No? Oh, you were talking to Lenny, okay. Oh, you want to talk to me? Oh, okay. Well, I am going to give the floor to KipuKai, and I will step out and see the Finance Director. (Chair Furfaro was noted excused at 11:34 a.m.) Mr. Kuali`i: Aloha and mahalo, Lenny. I am not sure if you addressed it earlier, but I am curious about...and here you are talking about the lighting retrofit for all the larger sports parks, where there are stadiums and baseball fields. Mr. Lenny Rapozo: Just wherever we have lighting for... Mr. Kuali`i: The highlighting. Mr. Lenny Rapozo: Yes. Mr. Kuali`i: Yes, because I am curious about lighting that is in our neighborhood center walkways and parking lots... Mr. Lenny Rapozo: That is another thing on my desk that I have that we have identified what needed to be changed. Mr. Kuali`i: Because it sounds... April 24, 2012 Parks &Recreation(CIP)p.19 Mr. Lenny Rapozo: And we are going to work with Public Works to get those changed. April 24, 2012 Parks &Recreation(CIP)p.20 Mr. Kuali`i: At some of the events or family parties and stuff that I have been to, the lights were not turned on and it is pretty dark. So someone said maybe it is because of the birds. But some of those lower lights that are under covered walkways, I cannot imagine that those lights are impacted by the birds or are they? Mr. Lenny Rapozo: Initially this year on the advice of the County Attorney, everything...well last year everything was turned off. This year, working with the County Attorney, certain lights we were allowed to turn on, like those underneath the walkways at Lihu`e Neighborhood Center, and the approach when you are walking into the lobby area for the Convention Hall. Certain ones, we were allowed to turn on. We have identified light fixtures on all of the neighborhood centers that are either facing towards...it would not be bird friendly. Mr. Kuali`i: The higher parking lot ones maybe. Mr. Lenny Rapozo: Parking lot, yeah, and off of the buildings that we have certain spotlights shining straight out. So we have identified those fixtures that we will be working with Public Works to get those changed. Mr. Kuali`i: So those will be addressed consecutively while this is being done, but this is... Mr. Lenny Rapozo: We are treating that as an R&M. Mr. Kuali`i: R&M, okay. Mr. Lenny Rapozo: We are treating that as an R&M as opposed to this big project as a CIP. Mr. Kuali`i: Okay, very good, thank you, thank you so much. Thank you, Chair. Mr. Rapozo: Thank you. Councilwoman Yukimura. Ms.Yukimura: So actually my question is for Ernie, if I could? Thank you. My question is all these discussions about lights and either shielding them or replacing them, are we incorporating them into our bid specs for new construction such that we do not have to do retrofits later on or incur more liability? Mr. Lenny Rapozo: These are the retrofits. Ms.Yukimura: I know, but when we design new buildings... Mr. Barreira: For new construction. Mr. Lenny Rapozo: Oh yes. Ms.Yukimura: Are we putting them in procurement specs so that we do not end up with lights that we have to change. Mr. Lenny Rapozo: In Parks, I know we are. Ms.Yukimura: That is good. Mr. Barreira: I cannot speak for Public Works, Vice Chair, but I would imagine that that is being done so as to avoid these types of...I would think it would be critical as part of the permitting process. Ms.Yukimura: And maybe a request from Procurement might be, to all the different departments whether it is a fire station or—well, fire stations come under Public Works, right? Mr. Barreira: Yes. April 24, 2012 Parks & Recreation (CIP)p.21 Ms.Yukimura: So I guess mainly Public Works is the main one, but Parks too if they are doing separate design and building that we would somehow incorporate it into new structures that we build so that we start off right, instead of having to correct later. Mr. Lenny Rapozo: Yes. Mr. Barreira: If I may confer with Director Dill and respond back? Ms.Yukimura: Yes, that would be fine. Mr. Lenny Rapozo: I am sure they are, they are because we at Parks, we are. Ms.Yukimura: Okay. So they are shielding and then there are difficult kinds of colored lights or quality of lights, I would imagine? Mr. Lenny Rapozo: Yes, and then LEDs and certain type of LEDs that may be bird friendly, but they are not wildlife friendly. And we are finding that out with some of our friends on Maui, where the type of light that we use... Mr. Rapozo: Lenny, what did you say? They are not bird friendly, but they may be what friendly? Mr. Lenny Rapozo: They may not be wildlife friendly. Mr. Rapozo: Oh, wildlife. Mr. Lenny Rapozo: Depending on the color of the LED light, it attracts the turtles onto the road. Ms. Yukimura: Yes. Mr. Lenny Rapozo: So they are bird friendly, but because of the color, they are not wildlife friendly Ms.Yukimura: Yes, it gets quite complicated, huh? I am aware that in Hilo, because of the astronomy industry there, their lights are a certain color and so forth so as to not affect the atmosphere. And I have asked the question before; I do not know that I have ever gotten an answer as to whether those lights satisfy the bird issue as well because there are places in the country now where you cannot see the night sky, and actually that is a tourist issue. I mean our young friend from Kobe, Japan, when we went to the Waimea Bon Dance, stood outside our car and just looked up at the sky because in Kobe they never see the stars, and in Los Angeles too. And that becomes a feature that tourists remember about Kauai. So all these issues about night sky and if you dovetail it with the bird issue—and I do not know if you can—they serve two purposes. Mr. Lenny Rapozo: Yes, I sit on the statewide committee called the Starlight Reserve Committee that addresses those issues. Ms.Yukimura: Really? Mr. Lenny Rapozo: Yes. Ms.Yukimura: I did not even know there was a committee. Mr. Lenny Rapozo: It was two years ago Senator Hanabusa did a... Ms.Yukimura: Created a committee or... Mr. Lenny Rapozo: Created a task force/committee to address light pollution. Part of the light pollution, of course, you cannot have one without the other in dealing with the ESA or the Endangered Species Act with the bird issue. Ms.Yukimura: Right. You might find a way where those purposes dovetail and you can actually achieve both of them. April 24, 2012 Parks & Recreation(CIP) p.22 Mr. Lenny Rapozo: Yes, we do, yes. Ms.Yukimura: So that is excellent. I am glad to know that there is this awareness about... Mr. Lenny Rapozo: That is where we came across that as I had mentioned that they may be bird friendly but not wildlife friendly because on the Big Island they no longer make those type of old style sodium for streetlights, and they are moving toward LED lights. And those LED lights attract the turtles, the Hawaiian honus onto the road because of the color, and then they are having these... Ms.Yukimura: So it is on the Big Island where that issue has come up. Mr. Lenny Rapozo: And Maui, certain parts on Maui. Ms.Yukimura: Well it is great that you are in statewide conversation so that we can learn about these issues and adjust our policies here. Thank you. Mr. Rapozo: Thank you. Mr. Bynum. Mr. Bynum: The basketball court in Kapa'a New Town Park is part of this phase that is in here, plan and design May 11 to August 12? Mr. Lenny Rapozo: Yes. Mr. Bynum: So the basketball court in Kapa`a... Mr. Lenny Rapozo: Basketball court? Kapa'a New Town? Mr. Bynum: It says Kapa'a New Town Park, Waioli Town Park basketball court. The Kapa'a basketball court... Mr. Lenny Rapozo: No, it is not lighted. As I had mentioned, Kapa'a New Town Park addresses the tennis court and the hockey rink. Mr. Bynum: What about the basketball court? Mr. Lenny Rapozo: And the basketball court, sorry. Mr. Bynum: Oh, so we are going to get lights. Mr. Lenny Rapozo: Yes. All remaining County facilities that have existing lights are being addressed in this retrofit design project. Mr. Bynum: Those guys that play pickup games in Kapa'a are going to be really happy because those lights have been out for three or four years. Mr. Lenny Rapozo: And they are all coming to Isenberg Park. You should come and see the games over there. Mr. Bynum: The pickup games are at Isenberg now? Mr. Lenny Rapozo: Oh yes. Mr. Bynum: Thanks. Mr. Rapozo: Mr. Chang. Mr. Chang: Mr. Lenny Rapozo, I got in a little late. I have a question. I do not know if you had any discussion, but the Kaua`i Island Utility Coop every few months or so they change the bulbs. Are you aware of that program and do you know if they do anything on the outside as far as giving lights to the general public. April 24, 2012 Parks &Recreation(CIP)p.23 Mr. Lenny Rapozo: No, I am not aware. That would be something that the OED Office with Ben Sullivan guys would probably and Glenn Sato guys would probably have a better idea. Mr. Chang: Okay, I just came into the part that the turtles were coming up, so I just...I will follow up. I just thought that there might be something that you may have known regarding that change out program. Okay, thank you. Mr. Rapozo: Any other questions? If not, I have a really stupid question. These shielded fixtures...so we are going to go back and retrofit the lights that are existing in these facilities. You are not talking about new lights. Mr. Lenny Rapozo: Correct. Mr. Rapozo: These are just existing lights. Mr. Lenny Rapozo: Correct. Mr. Rapozo: But the fact that we put the shielded lights on will not allow us to turn them on during the season? Mr. Lenny Rapozo: Currently no because we continue to be under probation. Mr. Rapozo: And how long is that probation? Mr. Lenny Rapozo: I believe we are going through one more football season, then the probation...it was 30 months. Mr. Rapozo: Okay. Mr. Lenny Rapozo: That is a separate discussion with the HCP permit, the Habitat Conservation Permit that we are currently going through. County Attorney is working with DLNR and Federal Fish and Wildlife, but I do believe that by retrofitting the lights, it should reduce our exposure in terms of getting the Habitat Conservation Permit. Mr. Rapozo: Oh, so this action is really in the process of the permit? Mr. Lenny Rapozo: The permit as well as I believe we made some commitment to the Federal Probation that we were going to address these lights. Mr. Rapozo: Okay. As long as the people understand that just because we are retrofitting the lights does not mean the lights are going to go on this next season. Maybe after we are off of probation or whatever, there might be an opportunity. Mr. Lenny Rapozo: There is going to have to be some policy calls made when we get the Conservation Permit and what we are willing to do because we could, but you take the chance of being charged again by the federal government with an ESA crime. Mr. Rapozo: I am not disagreeing. I am just saying that I just want the public to understand. The other thing, too, is Mr. Kuali`i addressed that the lighting at the public facilities was really, really dangerous, so I am glad that is being addressed. And then the other thing, a few weeks ago, I know the Mayor was at one of the Navy Commander's retirement and we were out at PMRF at the Commander's house and it is amazing how many Shearwaters that house attracts. It is like bizarre. All the lights were under the shelter, the roof, but KipuKai can attest to this. These things were coming in within a foot from the people's heads. They were coming from all over the place. But Captain Mongiello, who is the base Commander, he talked about their success with the amount of takes that they have had over the last few years with the changing of some lights. One of the lights, I do not know if KipuKai noticed the light as we were leaving, but their streetlight was green. That may be what you are talking about. That light may attract wildlife onto the street. I do not know. It did not do much for keeping the Shearwaters away because they were...it was weird how they all land and then they go under the house to nest overnight and then they come out and they take off, but it is weird. But that was one of the things he said, the shielding and the changing of the color of the light really changed...and he gave me the numbers (I cannot April 24, 2012 Parks & Recreation (CIP)p.24 remember it right now), but it was drastic, the reduction of the amount of birds that actually crashed. Mr. Lenny Rapozo: Interesting because one of the largest colonies is at the Bird Sanctuary out there. Mr. Rapozo: And the Bird Sanctuary was probably less than 100 yards away, but they did not use the sanctuary. They used his porch, underneath the porch. It is like bizarre, pretty cool though. Anyway, any more questions? Councilmember Yukimura. Ms.Yukimura: I got a note from the County Engineer confirming that all new construction plan and specs do include the new lighting requirements. So I just want to let everybody know that. The County Engineer is on the ball. Mr. Rapozo: They are all watching. If I am not mistaken, that was part of the settlement. I think one of the conditions in the settlement agreement was that in fact all new construction would be... Mr. Lenny Rapozo: And you know part of the Starlight Committee, the discussion that we had was these types of issues should be addressed in building codes and not be put into law. Well not formal laws like the legislature which say "you shall," "you shall," "you shall." But it would be best if we do it through the building codes process because technologies change, and it is easier to change...the discussion was from the people at the table, that is a better forum in which or the better arena to deal with these concerns. Mr. Rapozo: Thank you, moving on, next item, Vidinha Stadium Baseball... Mr. Lenny Rapozo: Improvements. This one here, we are moving forward with in-house design to redo ADA connections, new dugouts, scorekeeper booth as well, and this project has been on hold. I believe these are 2005 bond moneys that initially were put into this project. And part of the reason that this did not go forward is that when they were going to put the lights up, they started dealing with the bird issue from 2005. From 2005 until we actually started the retrofits in 2009, there was really no guidance from Federal Fish and Wildlife, as well as DLNR, as to the appropriate type of lights. The County would say, well we think this would be good, what do you folks think. And nobody gave the County any guidance as to the appropriate type of lighting. Well, now that we have retrofitted our stadiums, we now believe we do know what the appropriate lighting g g is. So we are moving forward. This will be new lighting. This s will be added to the consultant who is doing the retrofit to put the same type of lighting within the baseball field for the improvements. Mr. Rapozo: Mr. Bynum. Mr. Bynum: Well, I am confused, Lenny, because the CIP budget says you are removing $1.1 million from this line item, but the scope of work here says you are going to do the lighting, the bleachers, the dugouts. So what are we doing and what are we not doing? Mr. Lenny Rapozo: They left $800,000. I wish I could say...I did not take the money out. It was done through Finance. The $800,000 should address the ADA, the new dugouts. Well, we are hoping to get the new dugouts and the scorer's booth, and the ADA connections. I believe they left $800.000. Mr. Bynum: So the $800,000 is for that dugouts, announcer's booth, and ADA paths to the current ADA compliant bleachers, right? Mr. Lenny Rapozo: Correct, yes, and make those connections, right, within the park. Mr. Bynum: Because we have bleachers that are ADA compliant, but no... Mr. Lenny Rapozo: We do not have the transitional, the connections, correct. Mr. Bynum: And so why is the lighting money being removed? And I thought it was the other way around. We were going to do the lighting and not the...and I do not understand the logic of the lighting...I understand that issue, that we had to get it right and that April 24, 2012 Parks &Recreation(CIP) p.25 would delay the lighting. But we have had the money for the bleachers, for the other improvements ever since 2005, so I do not understand the logic. Mr. Lenny Rapozo: For the ADA connections? Mr. Bynum: And the dugouts and the... Mr. Lenny Rapozo: It just seemed that we should do this project together. So now that the lighting was going to be addressed, that we should do everything together. So that is why we moved to do the ADA at this point. Mr. Bynum: But the money for the lighting has been removed. Mr. Lenny Rapozo: Yes. It was removed and I have been told that when we get a better idea what we think the cost to the light will be, we would have those discussions to get the money placed back. Mr. Bynum: So we have done the lighting at baseball fields already, the new lighting, right? And we do not have a sense of what it would cost for that? Mr. Lenny Rapozo: These are new lighting. Those are retrofits. Mr. Bynum: I see. Mr. Lenny Rapozo: These are new. We have to put in poles. We have to do wires. We have to hook up to the stadium office with a switch. These are new. Those are retrofits. Mr. Bynum: So the timeline for the bleachers and ADA connections and announcer's booth is... Mr. Lenny Rapozo: The in-house design is complete. We did that in-house. Mr. Bynum: Can you share the...I mean dugouts can be done a lot of different ways. Can you share what that design is? Mr. Lenny Rapozo: I do not have that with me. Mr. Bynum: I do not mean this minute. Mr. Lenny Rapozo: Yes. Mr. Bynum: And I still do not understand the lighting. I am just concerned that, again, we said to the community in 2005 we are going to improve this facility, we are going to have a field like it meets the standards for statewide tournaments, and it is 2012 and people are calling me and saying, is this ever going to happen. So the answer right now is the announcer's booth, the dugouts, and the ADA connections are going to happen. Mr. Lenny Rapozo: Correct, and the designing of the lighting is part of the package of all the...the same consultant that is doing the retrofit design for the lights for the other facilities, is doing the design work for this new lighting system at the baseball stadium. Mr. Bynum: So there is design for the lighting in the works. And when is the ETA for that? Mr. Lenny Rapozo: For the design? Same with everything else,August 2012. Mr. Bynum: So it seems like the money for the lighting should stay in there. Mr. Lenny Rapozo: I would have hoped, yes. Mr. Bynum: Huh? Mr. Lenny Rapozo: Yes, I would have hoped. tl April 24, 2012 Parks & Recreation(CIP) p.26 Mr. Bynum: Okay, thank you. Mr. Rapozo: Thank you. Councilmember Nakamura. Ms. Nakamura: Lenny, sorry, but I need to run to another commitment, but I wanted to just say that this CIP booklet that you put together, the way it is organized by what is completed, what is ongoing, and future projects, helps me as I look through the projects. And the index is also really helpful. So I am hoping Ernie, that the CIP budget would be in this format in the future for Public Works because I think it is very helpful and easy to follow. Mr. Lenny Rapozo: Thank you. Ms. Nakamura: And the pictures, I think, are really helpful too because we are not always able to go out and see the completed project. So thank you for doing that. Mr. Lenny Rapozo: Great staff to help give me the information; we all work together as a good team to do the presentation. Mr. Bynum: My guess is it is William and Soncy that do the compilation, right? Mr. Lenny Rapozo: We all, it is a joint project, because some of these projects are...most of it belongs to William, the projects, yes. But we have some park maintenance CIP. We also have the neighborhood center...recreation takes care of neighborhood centers, but most of it falls on William. Mr. Rapozo: Hang on. Councilmember Yukimura. Ms. Yukimura: If the Vidinha lights are included under the lighting retrofit project, the design... Mr. Lenny Rapozo: The consultant is doing the design work for the Vidinha lights. Ms.Yukimura: Okay. I just do not see it listed as one of the parts. I see Vidinha Stadium parking lot, but that is not the lights we are talking about, right. Mr. Lenny Rapozo: It is part of the Vidinha Stadium Baseball Field Improvements. Ms.Yukimura: Can we add those words under your ongoing list? I just do not see it, so I am concerned that maybe it is just an oversight that it really is on your list. Mr. Lenny Rapozo: It is on the list. Page 41 is the PID for it. Ms.Yukimura: Oh, I am looking at page 39. Mr. Lenny Rapozo: Page 39 is the Retrofit, but the Vidinha Baseball Stadium is a new lighting project. It is not a retrofit project. Ms.Yukimura: Okay, so your intention is to cover...oh wait. Mr. Lenny Rapozo: But the same consultant who has the knowledge of designing shielded lights for ball fields is the same consultant that is doing the lighting for the baseball field. Ms.Yukimura: So just...Vidinha Stadium baseball field improvements. You have $800,000 and you are saying it is going to cover the lighting, the... Mr. Rapozo: No, not the lighting. Ms.Yukimura: The design lighting? it April 24, 2012 Parks & Recreation(CIP)p.27 Mr. Lenny Rapozo: The $800,000, as I had explained earlier, was going to be for the construction cost to do the ADA tie-ins. Ms.Yukimura: New dugouts and announcer's booth. Mr. Lenny Rapozo: Correct. Ms.Yukimura: I do not know if that is enough. That is one question. And number two, if that $800,000 does not cover the lighting design? Where is the lighting design covered? Mr. Lenny Rapozo: We already encumbered that money for the designing of the retrofit of the other lights. It made sense to ask the consultant to expand the scope of work to do the new lighting for the baseball because he has the expertise in the shielded lights of the field. Ms.Yukimura: All right, so... Mr. Rapozo: Hang on real quick Councilmember Yukimura because it is 12 o'clock and do you have much more on that question? Ms.Yukimura: No. Mr. Rapozo: Because I think it is a good question, I think we need to discuss it, but I do not want to...we have Liquor that is supposed to come up at 1:30 p.m. What I am going to do and since Jay left, and left me in charge, what we are going to do is I am going to ask that Liquor comes back at 1 p.m. Let us get Liquor out of the way at 1 p.m., and Lenny, if you could ome back at 2 p.m. I believe one hour for liquor will be sufficient and then we can...just expect to be here awhile because we have a lot of projects. If that is okay with all of you, we can do that. Because Liquor has already been pushed back a few times and... Go ahead. Ms.Yukimura: All I wanted to know was where the des...if the design money is already encumbered, then where is the construction money? That is all. Mr. Rapozo: I do not believe there is any construction money, but I think he is using his relationship with the consultant on the projects to help us with the design, which is a smart thing and saves us a lot of money. Mr. Bynum. Ms.Yukimura: Thank you. Mr. Bynum: Just about the...so we can finish up the Lihu`e... Mr. Rapozo: Well, we can come back to it because I just want to make sure we are out of here at 12. Mr. Bynum: Just really quick. This in essence will be our best baseball field for hosting tournaments, right? Mr. Lenny Rapozo: Yes. Mr. Bynum: And that is why I am interested in the design of the bleachers and... Mr. Lenny Rapozo: And also as part of the design of the baseball field improvements is the left field fence, the foul fence. We are also working on doing the changing of the shot put and discus at the stadium because where it is currently located, our athletes now can throw it over the fence. So we cannot host any kind of State tournaments here. (Ms. Nakamura was noted excused at 11:56 a.m.) Mr. Bynum: Track and field. Mr. Lenny Rapozo: Track and field. So what we want to do or what we are planning to do is possibly moving it more towards the middle and possibly throwing towards the left April 24, 2012 Parks & Recreation (CIP) p.28 field of the baseball stadium, thereby having a retractable fence to open up that field to possibly throwing it that way. Mr. Bynum: This is going to be our premiere baseball field. Mr. Lenny Rapozo: Yes. Mr. Bynum: I hope we are going to do it really well because we are going to live with it for the next 25-30 years. Mr. Lenny Rapozo: Yes, one of the State had asked if we would consider putting the shot put where the football field, as part of the football field, but cannot. It is a crown field, cannot, and we are not taking the crown off. Mr. Bynum: Do not tell the soccer people. I am just teasing. Mr. Lenny Rapozo: Unless you give me money for astro turf or field turf. Give me some money for field turf. Mr. Rapozo: Sure, let us put that in. Mr. Bynum: So I just...I want to put my two cent in. Let us do this baseball stadium right, something we can be proud of when we host these tournaments, which is, again, an economic development kind of stimulus as well. It is not just statewide tournaments. There is potential to bring mainland teams here. Mr. Lenny Rapozo: Well, I would like to see the winter league come back, winter League Baseball. Mr. Bynum: Yes, the Emeralds, right. I remember. I used to go to the games. Mr. Lenny Rapozo: Me too. Mr. Rapozo: I used to play. Okay, let us recess Parks CIP until 2 p.m. We will resume at 1 o'clock with Liquor. Thank you. There being no objections, the budget review was recessed at 12:01 p.m. April 24, 2012 Liquor p.1 The departmental budget reviews reconvened on April 24, 2012 at 1:08 p.m., and proceeded as follows: Councilmember Bynum (present at 1:08 p.m.; excused at 1:13 p.m.) Excused: Councilmember Nakamura LIQUOR: Chair Furfaro: Aloha, we are back from our recess from this morning's session, continuation of budget. We are going to go to Liquor. Mr. Honma, welcome again. You have handouts for us, Mr. Honma? Okay. There being no objections, the rules were suspended. ERIC HONMA, Director, Liquor Control: Good afternoon, Council Chair and Members of the Council. For the record, my name is Eric Honma. I am the Director of the Department of Liquor Control, and I am here this afternoon to present my department's budget. I have both the narrative, as well as the financials, and I would like to start with the financials as it gives some picture of what the mission of the department is, some of our goals and objectives, successes and achievements, and our challenges. (Mr. Bynum was noted present.) As far as Goals and Objections, obviously, we want to reduce the availability of alcoholic beverages to minors from liquor establishments. We want to maintain below 10% noncompliance rate for compliance checks. As far as Objectives, we will conduct semi-annual compliance checks of all off-premise and on-premise licensees. It is one of the best tools we have to ensure that licensees are following State, Federal, and County laws in the conducting of their business. We are also going to provide or continue to provide onsite training and education for all licensees and ensure at least one investigator is scheduled for duty every day of the year to conduct inspections. Generally on Fridays and Saturdays, we also have two investigators as we team them up because we do what is called "closing hour checks." Those "closing hour checks" end at 2 a.m. And so for their safety, it is better that they be in a team, as part of our concern as far as ensuring the workers' safety. Successes and Achievements: We continue to conduct compliance checks to keep noncompliance rates low, and we provide support to the Anti-Drug Office and initiatives to reduce underage drinking. Challenges: Maintaining investigators' safety and security in the working environment is always a priority for us; educating the teams on the dangers of high alcohol content products. There have been some really innovative products that have been on the market recently, and I believe the last budget session I brought this thing called Four Loko. A 24-ounce can, it had the equivalent of 5 beers in it. Along with that, it is masked by a very sweet watermelon, raspberry. This is the latest challenge we are facing. This is your ordinary 12-ounce can, Diet Pepsi, Diet Coke. The only difference is that this can contains 12 ounces of single-grain Scotch Whisky. So you essentially have 12 shots of 80 Proof Scotch Whisky in this one can. As you can see it is easily concealable, very portable, and obviously we want to keep that out of the hands of minors, but I think even if an adult tries to down this in one sitting, I think that would be very dangerous too and ill advisable. And so as these products come onto market, we need to be diligent and vigilant in ensuring the safety of the general public by continuing to do the inspections and education for the licensees. Improvements: We have greater transparency of our department information. I think we all are on the website, and basically any information, except financial information, that any member of the public wants is afforded to them. We are developing a better data collection system regarding underage contact with alcohol. This is a program that was started in Theresa's office about two years ago as part of the SPF SIG. She is now the repository for all information regarding underage contact with alcohol. KPD and Ken Carvalho used to have his stats; we had our stats. When people wanted to write grants, there was information all over the place. In trying to collect it and trying to ensure that it was current was a challenge. But now Theresa serves as a repository, so any contacts we have as far as minors with alcohol, we can input into the same database, whether it is from our office or from KPD or from other sources like the Department of Health. And so that was a recent project that we became part of to help get information consolidated and out to the public. April 24, 2012 Liquor p.2 Upcoming Initiative: This is one of the more aggressive projects that I have undertaken. What I plan to do is using our County GIS system, I want to plot on our island all the liquor license establishments. It will be color-coded. The red plottings will be for what we call retail licenses. This is your Big Save, Times, and so forth. The blue color codings will be what you call on-premise licenses: hotels, restaurants, bars. And there can be several purposes: (1) for myself, I want to see where all the liquor licenses are. We can kind of mentally and visually remember where they are, but with the GIS system we can plot it directly and exactly to their business address. Along with that, with KPD, I have already talked to Assistant Chief Begley, sometime in the later part of June or July, they are going to be getting new software that is going to be able to allow them to extract information from the CAD/RMS system. I would like to overlay the alcohol incidences over where my liquor licenses are. I think we all know what the conclusion will be. The higher the density, the greater problems you are going to have as far as complaints, alcohol-related accidents such as DUIs, crashes and so forth. And then along with that, I would like to also involve the Planning Department to see what the zonings are for the various locations where the liquor licenses are. And the purpose of that is if there is an abnormal concentration and a person comes in for their Use Permit, I think that will give them some data to refuse that Use Permit as opposed to being arbitrary and possibly getting sued. And it is basically the same thing for the Liquor Department. The only occasion in which a liquor license currently is refused is when 51% of the residents within 500 feet object to the license. Other than that, the commission is free to deliberate. Again, there may be a high concentration, and if we can show that there are alcohol-related problems, then during the deliberation, they can deny or put several conditions on the license that will help control and maintain the security in the area for the people. (Mr. Bynum was noted excused.) As we go on, I have a comparative graph for the operating budget for the Liquor Department. And then I would like to call your attention to the second last two pages and along with what I also handed out. The first has statistics from 2009, 2010, and 2011. We recently did compliance checks in January 27 & 28, 2012, as well as this past March 22, 2012. When we first started the compliance checks in 2009 on the on-premise establishments, there was a 33% failure rate, which is not encouraging. The following year we had 34% noncompliant rate. In 2011 was very encouraging, we went down to 11% noncompliant rate. However, this past January when we conducted on-premise checks, we went back up to a 24% failure rate. We do not know what is going on, and the majority of the failures are when the cashiers ask for the license of the minor and they are given the license in a vertical format, which is a red flag automatically because a vertical license is issued to only those that are under 21 when you receive your driver's license. This past March we visited 63 premises and off-premise license establishments (these are your retail establishments), 15 sold liquor for, again, a 24%failure rate. I believe out of the 15, 8 asked for the ID and still continued the sale; 7 did not even ask a 20-year-old for a license. And so it is a challenge for us, as I mentioned, as far as the enforcement side. We conduct training classes every Wednesday for the on-premise and off-premise. We provide about 2.5 hours of training and then a 48-question test. If you pass it with 80%, then you are issued a manager's card, which allows you to be "a manager in charge of the establishment," not necessarily that you would get a raise, but you are supposed to act as a resource person for the other employees there because you have gone through the training and you have successfully completed the test. Chair Furfaro: On some of the statistics on the handout that you gave us, liquor sales have dropped $1.2 million from a high of 2008? Mr. Honma: Well, in 2007 it was 85 point... Chair Furfaro: In 2008 it was 89. Mr. Honma: As you can see, 2007 was 85.7 million, 2008 it went up 4 million to 89 million, and then we all know what happened between 2008 and 2009, the economy tanked. Licensees lost about $9 million in sales all together collectively. We started to see a turnaround in 2010; it went up to 81 million, and in 2011 it was 87 million. Chair Furfaro: It jumped 5.9 million, 81 to 87? Mr. Honma: Yes, approximately, and we are looking at...I am anticipating in 2012, which ends this June 30 that we will be topping 89 million again. I put that in here as an indication of potential revenue because the department is funded entirely by the licensed establishments. April 24, 2012 Liquor p.3 Chair Furfaro: Now you are reporting this based on the establishments with licenses are required, unless it has changed recently, they are required to report sales quarterly? Mr. Honma: No, it is annually now. Chair Furfaro: It is annually? It was quarterly. Mr. Honma: At the end of June 30, they have until July 31, they have a month's period to calculate and to submit to us their gross liquor sales for the previous fiscal year. Chair Furfaro: Okay, why did it change? Mr. Honma: It was getting kind of cumbersome for the licensees. But in some cases I wish we had at least did it semi-annually around December when we do budget deliberation. Right now I am pretty much going on previous statistics and kind of guessing what it will be, you know, just at the time when the budget is going to be approved. We may revisit the semi-annual reporting as a tool for us to make better estimates because it will come in just about the time that we will be doing our program budget. So we have our rule changes coming up and that may be one of them that we may contemplate putting back. Chair Furfaro: Okay, and how does our compliance check with a 24% failure rate, how does that compare to other counties? Mr. Honma: It is about statewide average, unfortunately. That is one of the areas, as I mentioned, we really concentrate on because licensed establishments are the source of alcohol to the minors unless adults are picking up for the minors, legal adults. Noncompliance is all with minors and it is from the licensed establishments themselves. Chair Furfaro: And you have inspectors now pairing up after a certain hour based on the number of licenses that you have? Mr. Honma: No. Chair Furfaro: You have some licenses that go to 2 in the morning, some to midnight? Is that what it is based on, the pairing up for safety? Mr. Honma: Yes. Generally Friday and Saturday nights are the busiest. And places like Rob's will stay open until 2,o'clock, which is the legal hour that they can serve. And for their safety...we lose a little bit of inspection because we are doubling up. But as a matter of safety for the investigators, if they are out there at 2 a.m. at a licensed establishment, there is a very good possibility that there are some intoxicated individuals there outside in the parking lot that may cause trouble. Chair Furfaro: Sure. Mr. Honma: But during the weekdays, we have two investigators, but they split on the island. One goes all the way west, one goes all the way east. Chair Furfaro: Vice Chair Yukimura. Oh, I am sorry, Dickie, you had a question? Ms.Yukimura: When liquor is sold to minors, are there any fines or penalties imposed? Mr. Honma; Yes. The Liquor Commission philosophically feels that selling liquor to a minor is one of the most egregious things that the licensee can do. And as a result of the 15 compliance checks, I prosecuted them last week Thursday before the commission, 8 of them. We are doing 7 at our next meeting. In all but one case, the Liquor Commission fined the licensee $2,000.00 and suspended $1,000.00 for a year provided that the licensee does not commit the same violation. Ms.Yukimura: $2,000.00 for the incident and suspended what? April 24, 2012 Liquor p.4 Mr. Honma: $1,000.00...one-thousand for a year provided the licensee does not commit the same violation. Ms.Yukimura: And of these 24% failure this year and then 2011 there was an 11% compliance, was there any repeats? Like the same establishment that failed in 2011 failed again? Mr. Honma: I believe very few, maybe 2 or 3. Ms.Yukimura: And if there is a repeat, does not the fine go up? Mr. Honma: Yes, in one case, one of the licensees which failed the March compliance check had also failed in July of 2011 and therefore, at that time the Commission had imposed a $2,000.00 fine, suspended $1,000.00 provided no violation within a year. Unfortunately, they recommitted, and so the Commission imposed the $1,000.00 fine that they suspended, and then fined them an additional $2,000.00 for a total of$3,000.00 Ms.Yukimura: Okay, so maybe the fines are not sufficient. What if you just suspended their license for a weekend or a day, a night? It is obviously, they do not...it is easy to pay $2,000.00 or whatever versus really stressing to their employees what is going to happen if they fail. Mr. Honma: That is an option that the Commission continuously considers, but their consideration is that if you suspend for like let us say five days... Ms.Yukimura: Oh,just one day. Mr. Honma: One day? It may or may not have an effect, but it definitely will affect the employment of the individuals in that establishment. Ms.Yukimura: Well, then the employees might be really conscientious about doing the right thing. We all know that before Mothers Against Drunk Driving really got involved, DUI people were being let off with a scolding and a small fine. It was only after the...whether it was advertising their name or whatever where it actually impacted, had some real negative impact, did the court adjudication started having an effect. Mr. Honma: That is true. The other aspect to the violation, I prosecute the licensee before the Commission. The clerk who sells the liquor goes to Criminal Court and faces a $2,000.00 fine and I believe it is 30 days in jail. And so when you see your employee going through that situation, it is tough. Ms. Yukimura: So you are saying that there actually are some pretty stringent consequences to this, but still the rate does not go down. Mr. Honma: Unfortunately. In fact about 3 out of the 8 that we prosecuted last week, terminated the employee immediately. They have what is called zero tolerance. Any sale of age-restricted products, such as tobacco or alcohol, results in immediate termination. Ms.Yukimura: Were you able to determine whether these employees who sold liquor illegally had training? Do you know whether they had training? Mr. Honma: Yes, some of them unfortunately are holders of red cards or blue cards, which means they went through the training, they successfully completed the exam, but failed. In fact, there was one individual about a month after he received his card he was cited with a violation. We get so many different answers. One of the employers said the employee got the license and punched in the wrong birth date on the register. Ms.Yukimura: Could not that be avoided by having some kind of a scanner? Mr. Honma: Some do. The most sophisticated ones can scan. The older ones require you once the bar code of the beverage is passed through, it pops up and requires you to put in a birth date. Sometimes to just override it and bypass it, they will put in their own birth date (the cashier)just to speed the sale along. We hear all different things out there, all different things. And that is why it is kind of hard for us to put our finger on, which area do we need to concentrate on. Is it more education on-site? Greater fines? Suspensions? April 24, 2012 Liquor p.5 Ms.Yukimura: Well, are you keeping statistics so that with every failure you know whether the training was held, whether they were trained, whether it is a repeat, all of those kinds of things because that would help you analyze what is working and what is not. Mr. Honma: I believe one of the investigators that inputs the data into Theresa's database does keep those whole range of stats. We keep track of whether it is a male or female cashier. Is the propensity more for females to get intimidated and sell? A variable age of the person that sold? Ms.Yukimura: Can you send us that data? Mr. Honma: Okay, I will try and see. Ms.Yukimura: Okay, thank you. Chair Furfaro: Before we go to Mr. Chang, things have changed, I guess, white cards, red card, blue cards. Red cards, give us the synopsis. Mr. Honma: We do not issue white cards anymore. White cards were just a general employment card for working in a licensed establishment. Chair Furfaro: But were they not required to take an exam before getting the white card? Mr. Honma: No, it was just indicating you worked at a licensed establishment. Chair Furfaro: I see, I see. Mr. Honma: The red card is issued to retail stores, such as Times, Big Save, and so forth. Chair Furfaro: Mostly to their cashiers, right? Mr. Honma: Yes, yes, and the floor manager. To make it as simple as possible for the licensees, unlike other counties, I think Maui, they charge $40 for the classes and $20 for the test. If you fail the test and need to retake, then you pay another $20. But here in the County of Kaua`i the test is issued free. It is issued every Wednesday. We try to make it as convenient as possible so the licensees can take advantage and even if that cashier is not a manager, if you feel like you cannot do the proper training, send them to the class. Chair Furfaro: And the blue cards are still supervisory, managerial? Mr. Honma: Again, they are just acting as a resource. It can be a waitress. But if somebody comes up with a question like, gee, can we sell this to that person or can we combine these two things. That person, having gone through the training, having gone through the test would be able to serve as resource because in the hospitality industry, you know the turnover. One night you will be working with somebody that has been working for five years. The next night it might be somebody that has been working there only a month. Chair Furfaro: Well I think that depends on what establishment. I have worked with Food and Beverage staff at Coco Palms who had been there for 35 years. So it depends on the hotel strategy. But I do remember it might have been Maui County that we paid a fee for employees to take these exams. Mr. Honma: Yes, yes. Chair Furfaro: We do not have that here on Kauai. Mr. Honma: No, again, it is an effort to try to make it as convenient for the employers because in some cases if it is a unionized shop, it is considered work. So they have to pay the wages. There are some variable costs there that we are trying to make as easy for the licensees April 24, 2012 Liquor p.6 and employees to get the proper training. Along with that, large vendors like St. Regis, they cannot send 15 people. So we go down and we do onsite training for the exact same thing we do here in our conference room. Chair Furfaro: I just had that question because I know both on Moloka`i and at Wailea on Maui, we had an option actually to pay for training for employees to get their cards. Mr. Chang, you have the floor. Mr. Chang: Thank you, Chair. Thank you, Mr. Honma. On page 1 under Successes and Achievements, are you aware that the Anti-Drug Office changed their name? Mr. Honma: Yes. Mr. Chang: So you know the name of the... Mr. Honma: Life's Choices. Mr. Chang: Because I was just seeing that...I think we have to get a little bit of continuity because they were here just before us, and we were talking about the two negatives with the anti and the drugs. So we had questioned the effectiveness of Life's Choices, but I was just saying that maybe to get a little continuity we should try to put that, Life's Choices. Mr. Honma: If you look at the title page, it is dated January 24, which is a little outdated, but this is what I submitted to the Mayor for the first review. There were no adds, no changes, no deletions, and so that went straight to the Budget Director. Mr. Chang: Okay, and just minor for the record, but when we get that change it is kind of major, minor yet major when we are trying to brand a name. Thank you. Mr. Honma: Okay, I will make a note of that. Chair Furfaro: Mr. Kuali`i. Mr. Kuali`i: General questions? Chair Furfaro: General questions. Mr. Kuali`i: As far as vacant positions, the Department of Personnel Services report from 12/31/2012 showed an Investigator I, SR-16, as vacant since August 6, 2011 and the status was pending request from department. Is that position still vacant? Mr. Honma: It is still vacant, but we did put in a request, routed it through Finance, to the Mayor, back down. We did the recruitment, and we ranked the recruits, and we will be filling that vacancy shortly with a panel interview. Mr. Kuali`i: With what? Mr. Honma: A panel interview. Mr. Kuali`i: And by short, do you mean in the next month, in the next three months? Mr. Honma: Well, I have some repair work that I am going to have done, which might keep me out for about five or six weeks. Personally I would like to be the one in charge of conducting the panel. As a manager, philosophically I feel that is probably the most important responsibility you have to go through a very thorough process because this person is going to be working in your department. Mr. Kuali`i: So probably in the next three months. Mr. Honma: Yes. Mr. Kuali`i: And then as far as positions, there is this other position that says, new Deputy County Attorney. April 24, 2012 Liquor p.7 Mr. Honma: Yes. Mr. Kuali`i: 50% GF/50% Liquor. Is that a new position? Mr. Honma: No, I believe... Mr. Kuali`i: For your department or... Mr. Honma: I believe Budget Director Barreira went over that when he reported that there were really 15 dollar-funded positions that were going to be filled. That County Attorney was one of them. It was created about three years ago, but due to the economic conditions, although it was fully funded, I did not fill it because any funds that lapse go back to the licensee in form of a credit. So that helped them. And so even last year I dollar-funded the position. This year we are going to do a 50-50 joint with the County Attorney's Office. Mr. Kuali`i: So is the position in the County Attorney's Office? Mr. Honma: Yes. Mr. Kuali`i: Or in your department? Mr. Honma: No, it will be in the County Attorney's Office. Mr. Kuali`i: It is showing here as $33,000 out of your budget, and then I thought I saw some place else $66,000 in the new positions report proposed by the Mayor in the March 15 budget, and it says Department of Liquor Control/County Attorney position: Deputy County Attorney, and then there is had salary of$66,667. Chair Furfaro: Let us get Ernie up here for a second. Ernie, let us get some clarity here. Mr. Kuali`i: So if it was 50-50, is $66,000 the total salary? ERNEST BARREIRA, Budget & Purchasing Director: Good afternoon, Ernie Barreira, Budget & Purchasing Director. I believe in the clarification that was provided to the Council last week, the position for the Deputy County Attorney for the Liquor is actually, Mr. Honma is correct, it will be housed in the Office of the County Attorney, but it will be funded 50% by both the County Attorney and by the Liquor Office. And what was clarified in the submission was that the March submittal, of course, was incorrect in terms of, I believe it is position E-71, and correct me if I am wrong. Chair Furfaro: Do not take us back there. Mr. Barreira: But it is the law clerk position in the County Attorney's Office should have been re-described to the halftime Deputy County Attorney. Mr. Kuali`i: So I understand how it is being paid 50-50, but is the position sharing its workload 50-50 or is it 100% dedicated to Liquor. Mr. Barreira: I believe there is an allocation of work between both the Liquor and the County Attorney's Office. And of course, Mr. Castillo would be in the best position to define that. Mr. Kuali`i: Okay. Chair Furfaro: But as the budget manager, I think the question is more along the line of what is the total position paid, as this new position, and what is 50% of that that should show up in the worksheet. Mr. Barreira: Okay, I am going to have to do some research and get back to you. Chair Furfaro: We will send that question over. April 24, 2012 Liquor p.8 Mr. Barreira: Very good. Chair Furfaro: Mr. Kuali`i, you still have the floor. Mr. Kuali`i: And then for my next question which is not position related, but compensation related, I noticed different...like regular overtime $4,000.00, premium pay $8,500.00 and shift work $4,900.00. What do those three different...I think I know what regular overtime is, but how does it differentiate between the three? Mr. Honma: The night premium is actually for night work. After... Mr. Kuali`i: That is what is called shift work in the budget? Night premium? Premium pay? Mr. Honma: No. Anytime...they get, I believe, they get 30 cents an hour more after a certain time period with night shift. Mr. Kuali`i: And then the shift work? Mr. Honma: Yes. Mr. Kuali`i: No, why is that a separate line item. Mr. Honma: That is just the way the GAMBA system separates it out. Mr. Kuali`i: But how is that different? That is not the night premium, which is premium pay. Mr. Rapozo: Mr. Chair. Mr. Kuali`i: They are all low amounts. Mr. Rapozo: I think I can help. No, the premium pay is the total number of all the text items. So you see your three, the temporary assignment, meals, and shift, they all comprise the premium pay section of the budget. Mr. Kuali`i: Oh, that is the 8500. Mr. Rapozo: Yes, so it is not a separate item. It is part of. Mr. Honma: It is like a text (inaudible). Mr. Kuali`i: The two items is the temporary assignment and the shift work, and so the shift work is the night premium, 30 cents more per hour. I would imagine that it is a big part of this job to be working late at night, right. Mr. Honma: I think after it goes after midnight, they also get another premium there also. Mr. Kuali`i: I am amazed that amount is not even higher, but I guess it is only 30 cents. Okay, that is my two questions for now. Chair Furfaro: Mr. Chang, any more questions? Mr. Chang: No, sir. Chair Furfaro: Mr. Rapozo? Mr. Rapozo: Yes, I guess the...you said the licenses when they come in is free where in the other counties they pay? Mr. Honma: You mean for the card? April 24, 2012 Liquor p.9 Mr. Rapozo: Yes. Mr. Honma: Yes. Mr. Rapozo: And who determines that? Is it something by ordinance or is that a department rule? Mr. Honma: No, it is just the department's policy because we do not have it in any of our fee schedules, and so if we wanted to charge for it, we would have to come back to Council, we would have to go to public hearing, and then Council approval because it involves a fee. Mr. Rapozo: Right. Mr. Honma: And so again, as a philosophical matter of encouraging the employees and the employers to take advantage of this free training... Mr. Rapozo: Well, but there is also a philosophical feeling that they need to pay for the services as well because I mean...I guess in your case it is different because your funds all are generated from licensees, so in a sense they are paying for that service. Mr. Honma: The salary of the trainer, the equipment that manufacture the cards are all line items. Mr. Rapozo: The onsite training, if you go out to a location to do the training, and that is free as well? Mr. Honma: Yes. Mr. Rapozo: They do not pay the cost at least? They do not pay mileage or anything like that? It is just...why... Mr. Honma: No. Mr. Rapozo: Okay, why would I want to come into Lihu`e if you can come to my office. I think...well, I guess just going forward I understand the philosophical position, but I think as part of our services to the community, I do not think the $20...we all pay taxes as citizens here. We go to the drivers' license office, we pay. I think it is the same concept. I think you pay for the services that you use. But that, I guess, is up to you. I do not who determines that. Is that your call? Is it the commission's decision? Or is that just a department rule that would need to be changed. Mr. Honma: No, pretty much my call. Mr. Rapozo: Your call. Well, I would encourage you to at least take a look at charging something. It does not have to be $20.00. But again, if the County followed that philosophy, we would not be charging anything because we would encourage people to get a driver's license, but it is the law. It is not an option. They have to get a license, and I think whatever that cost per license is, whether it is $10.00, $15.00 or $20.00, if you are driving out to St. Regis to train 15 members of their staff, that has to come with a cost because it cost the County. That is just my opinion, Eric. Obviously that is going to be your call, but that is just my position on that. I do not believe that it should be entirely free. So that is my two questions for now, Mr. Chair. Chair Furfaro: Okay. Is that for all cards, including supervisor blue card? Mr. Honma: Yes. Chair Furfaro: Vice Chair Yukimura. Ms.Yukimura: What is your liquor surplus? Mr. Honma: I do not know at this point. That is given to me at the end of the fiscal year, about the second or third week in July. Ms.Yukimura: Okay, what was it last year? . v.., _. April 24, 2012 Liquor p.10 Mr. Honma: I believe we had a substantial about of us sur p l 600$ ,000.00. Ms.Yukimura: And of that, are you required to give some back to the licensees? Mr. Honma: All of it. Ms.Yukimura: You are required to give all of it back. Mr. Honma: Yes. Ms.Yukimura: So in terms of time table, you get the determination several weeks after the end of the fiscal year, and then what? By commission action, you disperse it back? Or you credit? Mr. Honma: It is a credit. We do not physically write a check to each of the licensees. It is part of our budget formula. We receive only one source of funding and that is from the licensees. But we receive it in two different ways. The first is what is called the annual license fee. Each licensed establishment at the end of June must have renewed their license. Depending on your class of license, you have a different fee. Big Save will pay $480, as well as Rob's Goodtime Grill. Wholesalers will pay a higher amount. Hotels will pay a higher amount. And so on an annual basis, it has been roughly about $95,000.00, very consistent because we have consistently had about 200 licensees in the County. There have not been too many developments, shopping centers, hotels, and so the typical situation is somebody goes out of business, and then a month later somebody moves in and wants to try their hand at being an entrepreneur. Ms.Yukimura: You said there is an annual license fee and then there is...what was the second source? Mr. Honma: The second source still comes from the licensees, but it is called an additional license fee. An additional license fee is based on each particular licensee's gross liquor sales. The more you make, the higher you pay. But only one percentage fee is assessed to everybody. Last year, I believe it was 0.0886. So that is the figure that applies to everybody. So obviously the person who sells $100,000.00 is going to pay less than the person who sold $1 million. Ms.Yukimura: Right, and that is the...what is the...the rate, you say, is a single rate and who determines that? Mr. Honma: It is by the formula that we have. The same formula is used in all counties. Ms.Yukimura: Okay, that seems fair by formula. Thank you. Chair Furfaro: To get that clear though, Eric, when you have a facility that is sold, you have another source of revenue for the transfer of the license, do you not? Mr. Honma: Yes, there is a filing fee, but it is, again, a very nominal fee. Chair Furfaro: Okay, Mr. Kuali`i. Mr. Kuali`i: Thank you, Mr. Chair. I notice on the budget, the last page, the gasoline line item. It has gone up over 50%. Do we have County vehicles for our investigators? Mr. Honma: No. Mr. Kuali`i: So is that a gas allowance? Mr. Honma: Yes, by Memorandum of Agreement with the HGEA, the investigators all use their own personal vehicles, and in lieu of that, we pay them $300.00 a month as an auto subsidy, and then we also issue them gas cards from Senter Petroleum. They are able to reimburse themselves by the number of gallons that they use because it is their personal vehicle. So I think about two or three years ago, Council Rapozo, on your request I did a cost analysis of the current way we are doing it as opposed to purchasing and maintaining a County fleet, and April24, 2012 p Liquor p.11 q essentially there was no financial benefit either way. The only consideration was that if they were County fleet vehicles, they would be left in the parking lot unattended during the night, weekends. I believe we have had truck tailgates stolen, tires stolen, and some vandalism also. And so in lieu of that and as the investigator drives his own personal vehicle, it is much more comfortable because it is his as opposed to jumping into a strange vehicle that may be stick shift or maybe automatic if he has a manual one. And so all those things considered, we continue to do it this way. Mr. Kuali`i: Sorry I kind of missed it because you said it really fast, but you said it is with the MOA with HGEA that they use this. Mr. Honma: Yes. Mr. Kuali`i: So every year, every two years... Mr. Honma: I believe the MOA is good every three years. Mr. Kuali`i: Every three years. And the $300.00 a month piece is a car allowance? Is that what they call it? Mr. Honma: Yes. That basically pays for the wear and tear of the vehicle. With that they are to maintain their vehicles as far tires, radiators, those kinds of things. The only thing that is different is that, again, they have a gas card from Senter Petroleum to reimburse themselves the gas. Mr. Kuali`i: So is that a County gas card? How does that work? Mr. Honma: Yes, it is. I believe Public Works vehicles, they all have that. Mr. Kuali`i: So that is different from...because the County has a gas station, right? We are just learning about...what is it called? Gas buoy or something at the repair shop. Mr. Honma: Yes, yes. Mr. Kuali`i: Is that...this is different? Mr. Honma: They go to... Chair Furfaro: You notice, they go to Senter Petroleum. Mr. Honma: Yes. Chair Furfaro: In Phase II of the industrial area. Mr. Honma: I believe there is one in Princeville also. And so it is convenient for them to do that. And because the County is not checking the maintenance of their personal vehicles, they do not need the gas buoy information. Mr. Kuali`i: And so both pieces are...how long has it been in place? Mr. Honma: Ever since I have been here, which is 16 years. Mr. Kuali`i: So the allowance was $300.00 a month 16 years ago? Mr. Honma: Oh, I think it increased... Mr. Kuali`i: I would imagine with the price of gas going up and...well, they have the gas card separate. Mr. Honma: Yes. Mr. Kuali`i: Well, the price of maintenance of a vehicle. Mr. Honma: Yes, and offhand I cannot remember when. April 24, 2012 Liquor p.12 Mr. Kualii: That would be interesting to know and I will submit something in writing. Mr. Honma: Okay. Mr. Kuali`i: Thank you. Chair Furfaro: So we will send the history on that over in writing. Mr. Rapozo. Mr. Rapozo: I have a follow-up to that. Eric, as I look at the numbers in your budget, your monthly allowance is 21.7. I am not sure if the mileage right under that is mileage for the investigators or not. And then you have a $10,000.00 gasoline item. But basically we are looking at about $35,000.00 per year of expense, which if you cost it out over a 5-year period, so it should be about $33,000 a year. Mr. Honma: I believe the mileage is mileage compensation for the commissioners that travel to and from our meetings. Mr. Rapozo: Okay, so we are just talking about the 21.7, which I will just round up to 22 and the 10,000, so that is 32,000 a year, and if we cost that out for five years, it is about $160,000.00 over the next five years just to equip the...for the travel allowance or the car allowance and the gasoline. We had a presentation by Elderly Affairs and they were requesting a hybrid sedan at a cost of about$35,000 with an annual lease payment for five years of$7,642.00. My question is how many vehicles would you need? How many inspectors or investigators you have? Mr. Honma: Four. Mr. Rapozo: You have four, but they do not all work the same time. Mr. Honma: No. Mr. Rapozo: So how many...so you probably would need two vehicles? Mr. Honma: I would probably need... Mr. Rapozo: Did you say on weekends they double up? They work two together? Mr. Honma: Probably as a matter of maintenance and those kind of things, it would be more practical to get three. Mr. Rapozo: So even at three, if we had three cars at a lease payment of about $7,500.00 a month over a period of five years, a couple of things. Number one, we will get these guys some new cars. If it is hybrids, it will be a lot less in gas. And after five years we have assets. We have the assets of the vehicle itself versus continuing to pay this $160,000.00 every five years and not getting any asset. So I am not sure how your investigators feel as far as fleet vehicles. I think the other islands use fleet vehicles. I know a couple of them do. I am not sure if all of them. I am not sure if O`ahu has fleet or not. But I think in considering the economy, I would assume...and the fact that it is parked in the parking lot that is just the nature of the beast. Police cars and all of the County vehicles are parked there. If we are talking about three new hybrid vehicles, it is going to be at a savings to the County, no doubt. And I think it might be worth looking into. Mr. Honma: Okay, you want it this budget cycle or the next one? Mr. Rapozo: I am looking at the cost and it is costing us a lot of money, again,just to fund a car allowance. I know we get a car allowance here in the County Council, but I do not believe we drive nearly as much as the inspectors do because they are on the road constantly. Mr. Honma: But the allowance is not based on mileage. It is a flat fee. April 24, 2012 Liquor p.13 Mr. Rapozo: Correct, it is like us, but it is based on wear and tear. But the more you drive, the more wear and tear. They are getting less than the County Council right now. They drive a lot more work-related miles than the County Council right now. And the last time my truck broke down, I took it to the shop. $1200.00 was what I had to pay out of my own pocket. Now granted my miles are not all Council miles, but a lot of it is. So I am just looking at what is fair and equitable for them. If they have a fleet vehicle, then all of this money goes away. Obviously we have the lease payment, like I said of about $7500 a year, and we do not have to have three cars now. We could do two cars this year. If we need three...I think we could even do three because I am looking in a five-year block. I think it saves the County quite a bit of money when we are looking at five-year. And Mr. Chair, he is the financial wizard here, but as I look at this, this money, we get no return on this investment for the County. With fleet vehicles, we actually have the assets of the vehicle that we will have after five years. That is ours. Again, first of all I do not think we do stick shifts anymore, so we would not order a stick shift, so I do not think the inspector would walk into a stick shift. But I would definitely ask that you consider that and again, if we are going hybrid, we are going to save on the gas, we are going to save outright money. Mr. Honma: I think the last time I did the cost analysis for you, it did not include hybrids. Mr. Rapozo: Right. Mr. Honma: I do not believe the technology was around at that time. Mr. Rapozo: It probably was not because that was quite a while ago. But the way gas prices are rising now that is another thing. What did you say they get? How many gallons do they get? Mr. Honma: It all depends on the individual investigator's vehicle. Mr. Rapozo: Oh, it is based on the vehicle? Mr. Honma: Yes, you mean the gas... Mr. Rapozo: You said they get reimbursed so many gallons per mile or so many miles per gallon. Mr. Honma: Right. They are able to refill the car, put the amount of gas they used based on the mileage that they traveled. Mr. Rapozo: And what kind of...how do you... Mr. Honma: The investigator, on a daily log, puts his starting and ending mileage at the end of the shift. Mr. Rapozo: Right, so let us say I went 100 miles. How many gallons do I get? Mr. Honma: Depending on what you declare. If you declare I get 20 miles a gallon, then you will get five gallons back. If you declare 40 miles a gallon, then you will get 2.5 gallons back. So it is part of the declaration. The supervising investigator on a weekly basis makes note of the mileage traveled and ensures that the gas reimbursement that is going to the investigator is consistent with the declaration. Mr. Rapozo: Okay. So it is based on their miles per gallon. Mr. Honma: Yes. Mr. Rapozo: Okay, yes, try go back and again, I just think the fleet is going to be cheaper for this County. And then the other question is regarding the Deputy County Attorney. Last year, like you said, you had it as a fulltime attorney in your office, but it was dollar-funded and I think it has been dollar-funded for quite a while. My question is currently in your office, do you have four hours of attorney work a day? And the reason I ask that is I do not want...and again this is licensee money, and it is not fair for them to pay for an attorney that is not going to be working for you. If the County Attorney's Office needs another attorney, then by golly April 24, 2012 Liquor p.14 come and justify it. But I just...four hours a day of an attorney that the licensees are going to pay for, I am finding it very hard to understand. We have a couple of legal analysts here, but they do all of our legislative research and all of that stuff. Mr. Honma: It is not going to be an allocation of 50% per day. There may be one week where I use the attorney throughout the whole week, then the following week I may not need any services because it fluctuates. It is based on licensees, inquiries, manufacturer's inquiries, wholesaler's inquiries. We have our semi-monthly meetings on Thursdays that requires preparation as far as when we prosecute, and then there are Decision & Orders that need to be made after the verdict is handed out. And so it will...it is not that he will come down for four hours and then go back upstairs. Mr. Rapozo: And that was just a hypothetical question, but the Police Department has an attorney assigned to them. They do not pay 50%, 60%, or 80% of that attorney's salary. It comes out of the County Attorney's budget because the County Attorney is the representative of every department. Mr. Honma: Yes, yes. Mr. Rapozo: I am just questioning why would we ask the licensees to pay for 50% of your attorney, when in fact it is the County Attorney's responsibility to represent your office? I guess that is my question. I know this probably was not your doing. Mr. Honma: I think Mr. Castillo would be the one to answer the... Mr. Rapozo: But it is in your budget, Eric. Mr. Honma: Yes, I know. Mr. Rapozo: You submit your budget, you are asking for that 50% attorney, and I do not have a problem if you are going to get him 50% of the time, but I do not see that happening. Mr. Honma: I am going to be keeping a record to see what it comes down to. Mr. Rapozo: I will tell you right now I am not going to be supporting 50% funding because the County Attorney's Office is responsible for representing every department and not at a cost to that department. To me, if that is the case, then we are going to have to start allocating percentage of cost to all the departments. Why is the Liquor Department different? I do not get it. Because it is not taxpayer money? It is licensee money? Mr. Honma: I think in the cost allocation, there is for the janitors, for the County Attorney's Office, for Finance, every department is...what is that cost called? Mr. Rapozo: Central services, you pay for that. Mr. Honma: Something like that. Mr. Rapozo: You have a $100,000.00. In fact this year it is up $25,000. You have $125,000.00 expenditure in indirect services to the Central Services. You are getting a 25%increase. They are charging you 25% more, in addition to paying halftime of a County Attorney. And I just want to make sure that...the licensees have to be treated fairly too as any taxpayer. Mr. Honma: I totally agree. It is our responsibility to see that whatever they are funding is applicable. Mr. Rapozo: I guess that question will be for the attorney, but if another attorney is warranted in the County Attorney's Office, then they should fund it completely rather than split it up. Like I said, you already pay for your Central Services and it went up 25%. That 25% equates to $25,000, which is pretty close to what that attorney is going to cost you. That is what I have. Thank you. April 24, 2012 Liquor p.15 Chair Furfaro: Mr. Honma, I am going to kind of summarize this. I do want to caution you on any work you do for the hybrids and the cars. A lot of businesses are finding out when they lease vehicles, the hybrids do not necessarily fit into the typical 36- or 48-month lease. It has to be a lease-to-own. You are getting a lot of wear and tear. For families, that had planned to hold onto a car for sometimes seven or more years, the hybrids really do work out because they...there is not as much cost up...there is more cost up front, but the life and the savings... Mr. Honma: Amortization. Chair Furfaro: Amortization of the vehicle and the savings in fuel does work out. So I just wanted to caution you as you go and look into that. It would need to be a lease to own, not a lease to return. And just see what happens. Mr. Honma: Okay. Chair Furfaro: I think it is worth looking into as the seniors are looking into it too. Mr. Honma: I will. Chair Furfaro: I do not think we have any more questions for you. Sir, I want to thank you very much for readjusting your schedule to fit ours. Mr. Honma: No problem. As far as I am concerned, this budget process is going to be the most arduous process that the Council will do for the year, and time overruns will occur as you folks try to do your due diligence in asking questions and wanting the information to make good decisions. So I have no problem with the delays. Chair Furfaro: Thank you again, thank you again. The budget review was recessed at 2:06 p.m. It It April 24, 2012 Parks &Recreation(CIP) continuation p.1 The budget review was called back to order at 2:20 p.m., and proceeded as follows: Chair Furfaro: We are back from recess and Lenny, I would like to pose a couple questions myself because I need to be leaving at quarter to three today, and we had hoped to wrap this up by 2:30 p.m. But I am in need of posing a couple questions that is going to be off your radar screen for a second. There being no objections, the rules were suspended. Mr. Lenny Rapozo: Okay. Chair Furfaro: One of them includes Mr. Barreira, if I could ask him to come up. As we started this morning, we started going around the table and so forth, the fact of the matter is Mr. Bynum had some questions particular to CIP and I wanted to refocus my response on that and what I believe is some of your responsibilities. If we go to this budget worksheet and we go to the page 2 summary, we will see when we are dealing with some of the anticipated transfers and so forth, there is a line over here within the transfers of $3,720,583. That is on the bottom line, page 2, Ernie, right here. And that is the Ordinance. So I want to make sure as we are going forward here, the Ordinance allows us to, I guess the way you put it is focus on projects you can accomplish in the next 18 months. But actually this is transferring $3,700,000.00 back into the budget, okay. So that is transferring it back into Operating. I want to make sure everybody understands that. And none of that money is bond money. Mr. Barreira: Yes. Chair Furfaro: I just reiterated it so everybody understands it, and as I said, we have a situation like I think the particular focus was on stadium lights, the locker rooms, and then other things that will come back on the radar screen later, okay. So we all know, the projects go on, we approve the budget, in what order the Administration takes it is the Administration's kuleana, okay? But I want to make sure we all know that $3.7 million went back into the General Operating Budget. So that is where the money is located. And we talked about that piece for making sure it stays on the radar screen in the phases that the Administration poses. The next one, I am sorry, I think I might be jumping a big one and maybe Mr. Costa would like to come up for this piece, too, if I could ask him to come up? This is important too because this is crossing over sections of the budget. Now if we remember, I am talking in particular about the Wailua Golf Course and the Clubhouse, okay? If we need, and there has been discussion here at the table about Parks doing some kind of an analysis of the Wailua Golf Course, amenities and concessions, i.e., the carts, the Pro Shop operation, the restaurant, while at the same time we have money in the SEDS account. That SEDS account money might be able to be used to do the strategic planning we need for the Wailua Golf Course. The moneys there are earmarked for Parks, but we need to get the thinking through a process here, coordinate it as to what kind of expectations do we have of renting the carts, marketing the carts, the balls, then getting into the Clubhouse. What kind of operation is it? Is it going to be a dinner house no more? Is it going to be a support amenity for food, beverage, late snacks for golfers coming off the course, and so forth? And I think we could probably use some of that money to do that strategic thinking because that SEDS money is earmarked for a Parks project. Then along those lines, we need to make sure we understand in CIP how we are approaching the building, the repair and maintenance of the building. For example, I am going to say this, but I do not think Council Vice Chair Yukimura would have a problem. Her husband is an expert in these underground trenching for like plumbing and so forth versus going over there and breaking up the whole kitchen floor to refocus on repair of the plumbing. What is our responsibility as far as making the building fit for the kind of operation the strategic thinking says should be the support of the amenity? Are we responsible for a new roof? Are we responsible for a takeoff of the banquet rooms that are there, but more in the nature of what it should be for golf clubs, as far as having a private meeting place and so forth, and periodically, like Mr. Gibson used to use it for Saturday night weddings and so forth. In fact 40 years ago that is where I got married. So I would like to see that thing rejuvenated in that sense as a local place considering the fact that we are competing with all the other meeting space and so forth. Maybe that amenity should be something specifically targeted for golfers as kind of a post-tournament place and so forth. And again, I just want to say I think it April 24, 2012 Parks &Recreation (CIP) continuation p.2 would be wise of us to do that and maybe using some of the SEDS money in Parks to understand what we are doing with the Clubhouse. And the last item I need to know is do we know what the rest of the year is going to do to us as far as tagging a decrease in certain revenues for the Clubhouse? Have we anticipated that with this work going on, just a lunch wagon type service or...how much is that hit going to cost us in the way of revenues that we have in the current budget. And I will send that over in a question, Ernie. I mean we need to know those three opportunities. And on that note I will thank my colleagues and go back around the table. And if I leave in about 15 minutes, I apologize, but I need to do this. Vice Chair Yukimura, you have the floor. Ms.Yukimura: Yes, thank you. I just want to follow up on your comments about my husband. He is no longer in that business, and he is doing more his books and movies. But because he was in that business, I am aware of that technology and I think it needs to be considered if you are looking at trying to get at aging pipes under concrete. So it is not about consulting with him, but there are trenchless contractors in the community, both here on Kaua`i and in Honolulu, and my husband did put a waterline under the `Anini stream and no longer do they have to bring water trucks down every winter when the waves knock the line that was hanging over the stream. That is how useful that technology can be. It can go under swimming pools, under rivers, under roads without open cutting. So we need to just look at that alternative. We do not know which is going to be most competitive in your particular situation, but you should definitely look at it as a possibility. And I just want to piggyback on what the Chair says. I think piecemeal repairs are not going to be the way to go, and what we may be looking at because it is an old facility is a total renovation, and that will be cheaper if you address it that way then just piecemeal repairing, some pipe here and then a system here, and then you have to do the roof, and then. And who knows that if you get a real clear vision for what it should be, maybe a design build is in order. But those are...I think the idea of a strategic planning process for the whole golf course and then you would know how the concessions fit, is a very good idea. I think we need that kind of long-range thinking before we just piecemeal things. Thank you. Chair Furfaro: Thank you, Vice Chair. And again, that is what the SEDS money is there for, for Parks &Recreation. Lenny, I will turn the floor back to you. Mr. Lenny Rapozo: Any more questions about Vidinha Baseball? We are done with that? Chair Furfaro: We are on Vidinha Baseball. Questions from Vice Chair Yukimura and then questions from Mr. Rapozo. Ms. Yukimura: I was looking at some notes at my desk. I have to go get it. So I am okay with going forward, and I will go get it and ask it later. Chair Furfaro: Mr. Rapozo said he is okay to go forward on this. We are talking about Vidinha Baseball from anyone. We can go on to the next one and we will come back when Vice Chair gets her notes. Mr. Lenny Rapozo: Next is the Lydgate Beach Park Renovation and this is where we are replacing all of the fixtures in both Lydgate Beach Park. We talked about making this park more...it is a well used park by visitors and the community, and so we are doing a complete replacement of the shower fixtures, lighting fixtures, redoing picnic pavilions, and just bringing that facility up to make it a nicer place. We already worked with Public Works. They will be doing most of the work. The cleaning of the tile and stuff, that we will contract out. The buying of the stainless steel fixtures, we are in the process of doing that. We worked through procurement and hopefully that will be the nice upgrade to that park facility. The ADA bleacher replacement, and this is the Hanapepe Stadium Replacement, this one here as we had talked earlier about the bleacher replacement, this is on the press box side where we would be replacing the wood bleachers that is currently in place now with the aluminum style. And these bleachers will be similar to what we have'at Vidinha Baseball right now, where the ADA bleachers are, sits above, a little bit higher. It provides a better view, playing view, and also wide enough to have those with wheelchairs access to the viewing area. This here we have contracted a consultant to do the design. We are in the design phase right now, and we hope to go to construction sometime next year. The Veterans' Cemetery Upgrade. Oh, okay. April 24, 2012 Parks &Recreation(CIP) continuation p.3 Mr. Bynum: Quick question. In Hanapepe now, the bleachers at the baseball stadium are aluminum, yes? Mr. Lenny Rapozo: Yes, under the..., yes. Mr. Bynum: Under the canopy. Mr. Lenny Rapozo: Yes, yes. Mr. Bynum: So it is similar to that. Mr. Lenny Rapozo: Similar to that. Mr. Bynum: Thank you. Mr. Lenny Rapozo: The Veterans' Cemetery Upgrade, and this is something that Deputy Director Costa has been working very diligently with is to repair...I will ask Ian to come and give the update on the Veterans' Cemetery and the pavilion area. IAN COSTA, Deputy Director of Parks & Recreation: Good afternoon. We have a few projects actually going on with Veterans' Cemetery, but...Ian Costa, Deputy Director of Parks & Recreation. But this is the only project that the County is funding. And this involves takin g a look at what is commonly known as the pavilion. It is officially referred to as the communal hall. I Y p Y believe it was built in the early 1960s, if not late 1950s. But we did contract for a structural team of consultants, architect, structural engineer, electrical engineer, and a mechanical engineer to analyze the building. They have completed their draft report, which is pretty extensive and points out a number of deficiencies, from the electrical system on to many parts of the structure, and alludes to some extensive upgrades. So we are having them complete that report, ideally within the next month or two, and then we have to decide which of those recommendations we want them to design and move forward with in terms of doing construction plans. And then we would bid that out. Again, it is fairly extensive. Much of that building is CMU or hollow tile, and that hollow tile was not grouted. So that is probably the most expensive ticket item, that they pointed out. But we should be getting that final report completed for the final draft, and then over the next six months we would have them design much of those improvements, probably the structural and the electrical would be highest priority. And then we have some funding, but based on the analysis so far, I do not believe the funding we have would be enough to do all the recommendations that they have recommended, and that is why I said that is will probably focus on the structural and the electrical as high priority items and get as of that done as we can. There are some other projects that the county is not funding. Mr. Chang: Mr. Costa, excuse me, I am sorry. Would you mind moving on that chair so us guys in the right field can see you face to face? Thank you. Mr. Costa: And just for your information, they are adding a columbarium or niches for urns as we speak. That is funded totally by the Department of Defense. As well as they are about...I believe in two weeks they have a public hearing in front of Planning for the master plan. We have just subdivided and looking to consolidate the property to the rear, which is another 6 acres, and the master plan will be before the Planning Commission, I believe, in two weeks. That is really all I had to report for this. Chair Furfaro: BC, would it be okay if before we got into a new subject, can we do the tape change and then when we come back Mr. Rapozo, will you give Vice Chair Yukimura the floor to handle her baseball park questions because I will depart after this five minutes. We are only going to do a 5-minute tape change here. There being no objections, the budget review was recessed at 2:40 p.m. The budget review was called back to order at 2:43 p.m., and proceeded as follows: (Chair Furfaro was noted excused at 2:43 p.m.) Mr. Rapozo: Okay, the meeting is called back to order. Councilmember Yukimura. April 24, 2012 Parks &Recreation (CIP) continuation p.4 There being no objections, the rules were suspended. Ms.Yukimura: Thank you. If I may, could I ask a few more questions about the Veterans' Cemetery and then go to the... Mr. Rapozo: Sure. Ms.Yukimura: Your Facility Assessment Report, that is being done by whom? Mr. Costa: Ron Iwamoto and Associates. He is the prime. Ms.Yukimura: Okay, so you contracted...in reading the PID, it actually sounds like what...it is describing the Veterans Cemetery infrastructure, which is approximately 50 years old apparently. It really sounds like this PID could apply to the golf course as well. I do not know how old the golf clubhouse is, but something like a facility assessment professionally done and then design and construction, and so forth would seem like a good approach. So that is all I have on the Veterans' Cemetery. For the Vidinha Stadium, the improvements include an announcer booth which is sorely needed to replace the current one. Is there any plans for a food booth there or is the plan to use the... Mr. Lenny Rapozo: It has always been the plan that they use the football stadium food booth if they wanted to. Ms.Yukimura: So that is the plan. And then water lines to the first and I do not know what bases, is that included in the plans too? Irrigation lines? Mr. Lenny Rapozo: They have irrigation in there now. Ms.Yukimura: They have already been installed. Mr. Lenny Rapozo: Yes. Ms. Yukimura: And they go to first base? They go up to first base? Mr. Lenny Rapozo: My understanding is it is throughout the whole field and that is why now during the fair, there is no parking allowed on the field because the irrigation goes throughout the whole field. Ms.Yukimura: Okay, okay, so I am outdated on that. The dugouts, will they be expanded to be larger for 25 players? Mr. Lenny Rapozo: I am not sure what the design is, but we can look that over. I think that was one of the questions coming over, to see the design of what the dugouts would be. Ms.Yukimura: So will you then be consulting with the users of that field in the design process? Mr. Lenny Rapozo: The design has been done in-house. We have completed the design. I am not sure... Ms.Yukimura: And has that been shared with the users? Mr. Lenny Rapozo: We did talk to the users. Ms.Yukimura: You did. Is there going to be a roof over the bleachers. Mr. Lenny Rapozo: No. Ms.Yukimura: Are we going to plan for that when we do a new dugout and are there ways we can prepare for that eventuality? April 24, 2012 Parks &Recreation(CIP) continuation p.5 Mr. Lenny Rapozo: Do we want a roof over the bleachers? Ms.Yukimura: Do we not want a roof over the bleachers? Does that not make it better for the audience? Shade and... Mr. Lenny Rapozo: Probably but... Ms.Yukimura: I mean if this is going to be our premier tournament site. Mr. Lenny Rapozo: Can we put a roof over the stadium too? Ms.Yukimura: That is a question for the Parks Director...which is why we need a total stadium plan because I am hoping there will be a kind of roofed facility for cultural and sporting events eventually long-range. We are at a place in respect to that kind of facility that they were 75 years ago with respect to the Convention Hall. They were visionary when they envisioned the Convention Hall and designed it, and it has lasted and served us so well. I think we are now at a place where we have to start at least planning for a sporting and cultural facility that is large enough into the future. But that is beside the point, I guess, right now. It is more if we focus on the baseball facility being the premier tournament site, what will that require and... Mr. Lenny Rapozo: I do not envision the baseball facility having a roof. Major league baseball parks do not have roofs. They hide under the tiers, yes, but most parks do not have roofs. Ms.Yukimura: Okay, well mostly... Mr. Lenny Rapozo: Baseball is a game played outside, so I would think the spectators would be watching the game from the outside as well in the outside environment. Ms.Yukimura: Well I am not the best person to express my opinions on this, but if you are in close contact with the users in the design of the facilities, and they have really been participating in it, and giving input and feedback, that would be my main request and desire. Mr. Lenny Rapozo: Okay. Ms.Yukimura: Because we have to plan this thing into the future, right? This facility, as a tournament site, is going to last for the next 25, 30 years at least. Mr. Lenny Rapozo: At least. Ms.Yukimura: I am assuming this whole issue will be addressed by the Parks Master Plan in terms of soccer facilities, baseball facilities, football facilities, basketball facilities. I mean our Master Plan for each of these sports are going to be part of the Parks Master Plan? Mr. Lenny Rapozo: The Parks Master Plan does cover that in the Vidinha Complex, where the soccer possible options, the baseball. Ms.Yukimura: Right, right, but we are thinking about this islandwide? Mr. Lenny Rapozo: Yes. Ms.Yukimura: I mean because they relate to each other. It is like you are either going to decentralize things or you are going to centralize them. I mean that is certainly one of the things to looks at, the frameworks to look at. But back to the Vidinha... Mr. Rapozo: Thank you, I was just about to ask. Ms.Yukimura: So my last question is there are some questions about what your scope is and as long as you have talked to the users that would be good, but whatever your scope is or given the scope you have written in the PID, is $800,000 enough? Mr. Lenny Rapozo: For the ADA. April 24, 2012 Parks &Recreation(CIP) continuation p.6 Ms.Yukimura: No, you said dugouts, announcer's booth. That is in the PID. Mr. Lenny Rapozo: Yes, yes, yes. Ms.Yukimura: So the $800,000 is enough for all of that? Mr. Lenny Rapozo: Yes. Ms.Yukimura: Okay, thank you. 1 Mr. Lenny Rapozo: Because the dugouts would have to be ADA compliant as well and the scorer's booth. Ms.Yukimura: Yes, but do not do single-purpose ADA because you have to... Mr. Lenny Rapozo: No, I am just saying the ADA issues will be addressed, and we anticipate the $800,000 will be enough to do the dugouts, the scorer's booth. Ms.Yukimura: But the dugout will also be...if you need it for 25 players, I guess it is, you are going to do it at the same time, right? I mean you are not just doing ADA. You are doing dugout. Mr. Lenny Rapozo: ADA connections, the dugouts, and the scorer's booth, yes. Ms.Yukimura: Okay, so you are not doing actual improvements to the dugouts. You are only doing the ADA connection to the dugout? Mr. Lenny Rapozo: We are doing new dugouts, scorer's booth, and the ADA connections to get to the grandstand or the seating and to get to the scorer's booth, and to get to the dugouts, yes. Ms.Yukimura: So did I hear you say new dugouts, though. Mr. Lenny Rapozo: Yes. Ms.Yukimura: Okay, so size, so the issues on dugouts will not just be ADA connection, but it will actually be the functionality, the numbers, the size, all of that. Mr. Lenny Rapozo: Correct. Ms. Yukimura: And $800,000 is enough. Mr. Lenny Rapozo: Yes, we anticipate that to be enough. Ms.Yukimura: Okay, thank you. Mr. Rapozo: Mr. Bynum. Mr. Bynum: So, you are right. One of the questions is about the dugout. So when you say done in-house, we have construction drawings? Mr. Lenny Rapozo: Yes. Mr. Bynum: Okay, so I look forward to seeing those. Mr. Lenny Rapozo: Yes. Mr. Bynum: Thank you. Mr. Rapozo: Those dugouts are going to be the real dugouts? Mr. Bynum: I bet you not. April 24, 2012 Parks &Recreation (CIP) continuation p.7 Mr. Lenny Rapozo: Cannot with ADA. Mr. Rapozo: Oh, cannot. Mr. Lenny Rapozo: So we have to...the way it is now, but make it bigger so in case... Mr. Rapozo: Got it. Any other questions for Vidinha Stadium Baseball Field Improvements? If not, let us go back to...you covered the ADA...you did not cover the ADA Bleachers Replacement. Is that the next one? Mr. Lenny Rapozo: That is the Hanapepe Stadium we were talking about earlier. Mr. Rapozo: We talked about that. Any questions on the ADA bleachers replacement? If not,Veterans' Cemetery...and I am just following your book. I am assuming it is... Mr. Lenny Rapozo: That is exactly what the...Table of Contents. Mr. Rapozo: I wish Public Works did it the same way because it is so much easier this way,just oh my goodness. Mr. Lenny Rapozo: Maybe that was the plan, you folks are more confused with Public Works. This way is more organized, you folks can... Mr. Rapozo: Yes, but you get more scrutiny. Mr. Lenny Rapozo: More scrutiny, right, right. Mr. Rapozo: Yes. Mr. Lenny Rapozo: First you have to figure it out, then after that forget it. Mr. Rapozo: But we will find out before the next time. Yours is all open. Mr. Lenny Rapozo: That was planned chaos on their part. Mr. Rapozo: This one it is all here. So Veterans' Cemetery Upgrade. I heard Ian's...any further questions on that? Okay, Vidinha Stadium Track& Field Improvements. Mr. Lenny Rapozo: We had talked about this earlier with the shot put and discus throw that we are looking at. Mr. Rapozo: Is that the...okay, yes, discus and... Mr. Lenny Rapozo: Towards the left field of the baseball stadium. Mr. Rapozo: Yes. Any questions on Vidinha Stadium Track & Field Improvements? All right. Wailua Mauka Motocross Track. Mr. Lenny Rapozo: Yes, the Wailua Mauka Motocross Track is up at Kalepa, and we were given land up there to pursue a Motocross, and we have gotten the environmental study on this, but we have not done any work in terms of...with anything with the Motocross track itself. We had hoped to work with some of the Motocross community down in Wailua and have them participate and maybe they would do the Motocross Track, but that has not seemed to work out too well as of yet. So this project is still as it was prior to me becoming the Parks Director. It is kind of just at a standstill right now. Mr. Rapozo: It is dollar-funded, so the moneys were removed quite awhile ago. Mr. Lenny Rapozo: Yes. Mr. Rapozo: But the track that they are using now is working, right? April 24, 2012 Parks &Recreation(CIP) continuation p.8 Mr. Lenny Rapozo: It is working, yes, and they have maintained it. They take care of it. Yes. Mr. Rapozo: Any questions on the Mauka Track? Mr. Bynum. Mr. Bynum: So we are basically just standstill mode. Mr. Lenny Rapozo: Standstill. Mr. Bynum: And the big issue is water. No movement on water? There is still no potable water within quite a distance of this land, as I understand it. Mr. Costa: It is a lot closer than it used to be given the service treatment plant up there now, but no service line. Mr. Bynum: Well, I know we cannot do it all, but this is a shame because Motocross, they were by the ocean eventually and then that gives us opportunities for the golf and so someday. Mr. Costa: We do plan to follow through and get the...we did receive the draft EA, and we are about to return that with comments to get the final EA done that is necessary to apply for the land use permits, which are required, Special Permit, Use Permit. So I believe we still plan on going through with those once we can get the environmental assessment completed. And then, of course, construction, we will have to see how we can...I think through the years...I was actually involved when we first asked for the land, so I know how far this goes back, and had to do the subdivision as part of the Executive Order. Mr. Bynum: I think at the existing...can I switch gears to the existing facility just for a minute? I really want to recognize the Motocross organizations who do a lot of kokua and take care of that, and I think we have done a better job as a County in supporting them. Are we still paying for the restrooms? Mr. Lenny Rapozo: Yes. Mr. Bynum: They have potable water there? Mr. Lenny Rapozo: Yes, I believe so. Mr. Bynum: And I am trying to recall, but I think some of the conceptual g p design for the multi-use path in that area may support some additional open structure there. Is that your understanding? Mr. Lenny Rapozo: Yes, yes. Mr. Bynum: So we have to...that may support if the Motocross...it sounds like they will stay there for a while, right? So that might support that to some extent, but also be appropriate for the future use when the track moves, right? Mr. Lenny Rapozo: Yes. Mr. Bynum: So it is pretty much all status quo at this time. Mr. Lenny Rapozo: Yes. Mr. Bynum: Thank you very much. Mr. Rapozo: Go ahead, Mr. Kuali`i. Mr. Kuali`i: The property at Marine Camp, is that County property? Mr. Lenny Rapozo: County property. Mr. Kuali`i: And how many acres is that? April 24, 2012 Parks &Recreation (CIP) continuation p.9 Mr. Costa: It is actually part of the overall golf course property, but I - cannot tell you how many acres that is right now but. Mr. Kuali`i: It is probably a lot less than 18 acres, though, right? Mr. Costa: And something I have recently found out even though it is Executive Ordered to us, we do still have to get approvals from the Land Board whenever we establish a new use, change use, or in the case I am working with right now, putting in a new electrical line to replace the existing one for the golf course. Mr. Kuali`i: So the motivation to move mauka is to utilize that spot for something else in the future? Additional beach park or... Mr. Lenny Rapozo: That could be one use, but I think it is more the type of activity near the resort that is driving this. Mr. Kuali`i: And then the 18 acres at Kalepa, is that flat land at the bottom of the mountain or along the mountain? Mr. Lenny Rapozo: No, it is actually right off of... Mr. Costa: Actually, if you know where the rain gauge station is, it is right across the street. So it is relatively flat. It is not flat, but it... Mr. Lenny Rapozo: We used to call it the 3rd crossing. Mr. Kuali`i: All right, but this is sort of on hold for now. Mr. Lenny Rapozo: Yes. Mr. Kuali`i: Thank you. Mr. Rapozo: Are you folks still meeting with the Motocross group? They understand, they know what has been happening? I know I have not heard any complaints. So I am assuming it is working well. Mr. Lenny Rapozo: Yes, down at Wailua? Mr. Rapozo: Wailua. Mr. Lenny Rapozo: Yes, yes, (inaudible). Mr. Rapozo: I just had a call last week from a police officer asking me if that was County property because the resort was complaining. Mr. Lenny Rapozo: One guy. Mr. Rapozo: Huh? Mr. Lenny Rapozo: One guy. Mr. Rapozo: One guy. I mean it is actually controlled pretty well, but you said they do have water now? I know this is what, I think, triggered it many years ago is they did not have water. Mr. Costa: Right. Mr. Rapozo: And they had requested water and that is when the decision was made to possibly move them up to up mauka, which would be a lot better for them, but I think it seems to be working, so that is a good thing. Any other questions? Mr. Bynum: Just a comment. All of us have been involved in this at some level or not. Mauka would be great, but they are going to need water, shade, facilities. It is not April 24, 2012 Parks &Recreation(CIP) continuation p.10 going to just be, here is the land, go ride your bikes. I think they will help, but as I recall, water was a big issue because it is a cost. It has to come a long way. Mr. Costa: Right. Mr. Bynum: Maybe there will be other development in that area, which will bring water close to there, right, but it is a great plan. And there are all kinds of potential uses for that land afterwards and we will have to all work that out together as a community later. I wish we had the resources to move with this now, but at least we are...and the resort guys, they just have to live with it. This is an important recreational activity for people on Kaua`i. I am glad that our Parks Department is supporting it at a greater level than we used to. And until we can get the resources to make the move, anyway thanks. Mr. Rapozo: Are we paying for the restrooms down there, the portable restrooms or are they... Mr. Lenny Rapozo: Yes, it is part of our contract. Mr. Rapozo: Okay. Mr. Lenny Rapozo: Porta potty contract. Mr. Rapozo: Any other questions? Thank you. If not moving on, Po`ipu Beach Park Renovation. Mr. Lenny Rapozo: Which is the same as Lydgate, just changing out fixtures, working on roofs, cleaning tiles and just bringing it up, doing the upgrades. Mr. Rapozo: Any questions? Mr. Lenny Rapozo: This next one is the Po`ipu Beach Park Shoreline Sand Replenishment and Protection. This has been the three-tier process where we had contracted to find...well anyway, this all came about with the tides and the disappearing of the tombolo, the beach replenishment for this Po`ipu Beach Park. So this was the three-tier project where (1) they were to identify uses of sand, currents, and obtain sources of sand material. Mr. Costa: Non-terrigenous. Mr. Lenny Rapozo: Yes, non-terrigenous. And the second part, of course, as I said recommendations for short- and long-term sand restoration, and this is where they are finding sand pockets outside of there and possibly restoring it back by pumping it on the beach. Mr. Rapozo: Mr. Bynum. Mr. Bynum: I have not asked these questions for a while, but we were like weeks away of delivering sand for Phase I. Where are we at with that? Mr. Costa: We have the sand. Mr. Bynum: I know. The sand is there;it is clean. Mr. Costa: We had to recertify the shoreline. Luckily we did piggyback on the Brennecke's sewer need to recertify the shoreline, so we did get that certification. We are finalizing our...we have been working closely with DLNR Coastal Lands, who is the agency that would approve and review our application. I believe the scope has evolved a little where initially, I think the thought was to place sand mauka of the shoreline and allow the tides to slowly integrate it with the shoreline. But based on our relatively recent...working alongside with DLNR, they are actually recommending that we deposit the sand makai of the shoreline. A few things would result. We would not need an SMA if that is indeed how the sand is placed. But anyway, we are currently revising the application to show where the sand gets deposited makai of the shoreline. I believe DLNR representatives are in town. Actually I believe they came last Thursday, and met Dave in the field to go over what our proposal was, as far as where the placement would occur. So we will be, based on that meeting, finishing up our application and submitting it to them. I believe that application should get in within a month. And then once they approve, we can actually place. April 24, 2012 Parks &Recreation (CIP) continuation p.11 Mr. Bynum: So we may be months away from actually placing... Mr. Costa: Hopefully. Mr. Bynum: And that is the 5,000 cubic yards? Mr. Costa: Yes. Mr. Lenny Rapozo: No, 499. Mr. Bynum: Yes, 499. Mr. Costa: Just under 500. Mr. Bynum: Not 5,000. Mr. Lenny Rapozo: Just under 500. Mr. Bynum: But then 2,000 after, right? Phase 2 is 2,000? Mr. Lenny Rapozo: The larger...yes, yes. Mr. Bynum: Yes, there was 500, 2,000, then maybe pump some day, right? Is that the three phases? Mr. Lenny Rapozo: The three phases was the small shoreline, second was identify the erosion and the currents, and the third was pump on the shore. Mr. Bynum: Oh, okay, so where are we at with the ocean study? Do we have an ETA on that? Mr. Costa: I wish I could tell you offhand, but... Mr. Bynum: We already contracted it. It is underway, right? Mr. Costa: That should be shortly. Yes, yes, yes, because we are integrating some of that information in our application to DLNR. But that study provides the long-term replenishment. Mr. Bynum: Right and was that Sea Engineering was the firm? Mr. Costa: Yes, yes. Mr. Bynum: So that is underway. Mr. Costa: Yes. Mr. Bynum: We do not know when it will be completed, though. Mr. Costa: I believe we do. I am sorry I just...it escapes me right now. Mr. Bynum: So you could give that in a follow-up question. Mr. Costa: Sure, but that is well underway. Mr. Bynum: At the State level, Dolan was working on it, but I think he has moved on, right? Mr. Costa: Exactly, we have a whole set of new players at DLNR. Mr. Bynum: I just talked to Dolan and Thorne Abbott and others about this recently on O`ahu, but so just...this is something I am invested in and I have been following it a long time. It has been...patience, right, patience. Anything you do on the shoreline is complicated, April 24, 2012 Parks &Recreation(CIP) continuation p.12 but I appreciate the following through. I am anxious to see that study because that will give us more of what the long-term options are, and at least for myself I am lobbying at the State level saying, hey, beach nourishment is the way we need to go in the State. They are doing it as we speak or just completed it in Waikiki and trying it at the State level because we cannot afford...that big thing, we are going to need State help. It is beyond the resources of the County. But if Po`ipu is going to remain the stellar resort destination, so when I am trying to convince the Governor and the State level, it is like yes, Waikiki, top priority; second priority, Po`ipu Beach because if you think about it, there is not that much beach at Po`ipu Beach, and more people. And the changes have been dramatic in just the 20 years I have been going there, really dramatic. And so I appreciate the follow through and the patience we all have to have with this because I remember, and I have to just say this, because I remember when Dickie was brand new on the Council and he said, hey, three or four weeks, gonna be there. And I am like, yes, Dickie, I love that enthusiasm, but it might take a little longer than that. Mr. Costa: Yes, so like I said, we did have to recertify the shoreline to get our application complete. Mr. Bynum: And that dedication, is it happening right now? Mr. Costa: What is that? Mr. Bynum: The dedication ceremony for the Brennecke's partnership? Mr. Lenny Rapozo: It was this morning. Mr. Bynum: It was this morning, yes? Mr. Lenny Rapozo: We were invited, but we were mandated to come here. Mr. Bynum: Exactly. I wish we could have been there because that was a nice public-private partnership that worked out well. Mr. Costa: We were lucky to capitalize on their effort to get our certification. Mr. Bynum: Right, that is cool, that is synergy, yes. Thank you. Mr. Rapozo: On the chart, I just want to real quick, I see the shoreline study, the restoration study for $300,000.00, but that is not this project, right? Mr. Lenny Rapozo: It is this project. Mr. Rapozo: It is the project. So your funding that you were talking about earlier, the $15,000 tier 1 and $300,000 tier 2 would be coming out of that line-item? Mr. Lenny Rapozo: The $15,000 was part of the commitment that the Po`ipu Beach Resort put up for the small beach nourishment. Mr. Rapozo: Okay, that is done already. So this is the $300,000. It is actually a study. Mr. Lenny Rapozo: Yes. Mr. Rapozo: Okay, any other questions? All right, moving on, Anahola Clubhouse. Mr. Lenny Rapozo: The Anahola Clubhouse Improvements. Initially the Clubhouse, we had $40,000.00 or $50,000.00 in the CIP to install roll down doors to protect the Clubhouse from vandalism. However, recently, the community improvements highlighted a mural that was erected by community groups. So the need for security measures seems to have been reduced. So with this we changed the scope of work to address the parking lot improvements with ADA stalls and a walkway and proper drainage to be constructed. It has been brought to our attention that when big rains come down, it somehow makes its way into the facility itself. So this will address those things and hopefully make it better for everybody. April 24, 2012 Parks & Recreation(CIP) continuation p.13 Mr. Rapozo: Thank you, any questions? Go ahead, Councilwoman Yukimura. Ms.Yukimura: Mainly a comment. I think it is so wonderful that the Parks Department has been in touch with the community so closely that you could shift a project, you could find out that the need for an original improvement has changed. And also it is so wonderful that a project that has involved the community and especially the young people as an art project has increased the pride and lessened the potential for vandalism. That is a wonderful story. Mr. Lenny Rapozo: Yes and Mary, who is the art teacher... Ms.Yukimura: Mary Nakamura? Mr. Lenny Rapozo: Yes, she has been really good at maintaining that, and you are right it does not seem that people have been going there and doing weird things with the mural. So it did help. And also the community is stepping forward with wanting to do some improvements with the baseball field. So some of these ADA improvements is to tie-in with what the community wants to do. Ms.Yukimura: I think Manaweli's group that has been trying to provide more activities for the communities, all helping, so it is a wonderful example of how different partners have been working together to create a stronger community. And that the funds can now be used for this much needed project for ADA accessibility and runoff control and all of that. It is a wonderful story. Thank you to everybody, to Parks and to everybody involved. Mr. Rapozo: Mr. Kuali`i. Mr. Kuali`i: By walkway, is that the walkway from the parking lot to the Clubhouse? Mr. Lenny Rapozo: Correct. Mr. Kuali`i: There is not any plans for connecting the Clubhouse with the computer room/classroom in the back? Mr. Lenny Rapozo: That is all part of it. Mr. Kuali`i: That is. Mr. Lenny Rapozo: Because eventually the community wants to do dugouts, scorer's booth. So that is...when they are going to do it, we have to make sure we have our ADA connections ready to go. Mr. Kuali`i: Great, thank you. Mr. Rapozo: Thank you, any other questions for Anahola Clubhouse? If not, Islandwide Playground Equipment,ADA Improvements, and Updates. Mr. Lenny Rapozo: This is the replacement program for our playground equipment to meet ADA and public playground safety requirements islandwide. So this is a PID to capture all of those safety concerns, which we are looking at Wailua Houselots, Kalawai, Koloa Parks, and safety surface and playground equipment will be repaired at Isenberg, Kilauea, and Anahola Homestead Parks. Mr. Rapozo: Mr. Bynum. Mr. Bynum: I very much appreciate this and I used to talk with Mel Nishihara a lot about as we go to these more...these rubberized surfaces and kind of...playgrounds have a lifecycle, safety surface has a lifecycle, so we we are developing a regular replacement schedule for these facilities? April 24, 2012 Parks &Recreation(CIP) continuation p.14 Mr. Lenny Rapozo: Correct, but also we are trying different surfaces as well. Puhi and Omao has an astro turf type of surface that we did as a trial to see what the maintenance and the longevity of that particular surface is. Mr. Bynum: And then I have not gone over there and looked recently, but I have been concerned about the substandard playground equipment at Puhi Park that is near Halelani Village. Is that stuff going to be... Mr. Lenny Rapozo: That is on the list to be replaced, I believe. Mr. Bynum: It is going to be replaced? Mr. Lenny Rapozo: Yes. Mr. Bynum: Because it needs to be removed. I do not know if it has. But that is on the schedule to be replaced for that park? Mr. Lenny Rapozo: Yes, that is one of them. Mr. Bynum: While we are on playground surfacing, in the CIP budget there was some money removed from Lydgate Park... Mr. Lenny Rapozo: For? Mr. Bynum: Well that is my question. It is in the CIP schedule. There is still some money, but I assume that was the wood chips that have to be...you know volunteers will put them in; we have done it several times, but... Mr. Lenny Rapozo: Right, right. Mr. Bynum: That also has a replacement schedule. Mr. Lenny Rapozo: Right. Mr. Bynum: Is that what that fund is for? Mr. Lenny Rapozo: Yes. Mr. Bynum: And we reduced the amount just because there is enough? Mr. Lenny Rapozo: I am sorry, I missed that question. Mr. Bynum: It is on the CIP thing that just the amount was reduced by a few thousand dollars and I assume... Mr. Lenny Rapozo: This was the Kamalani... Mr. Bynum: Yes, Kamalani Playground, because it has been...and we have these great work days and install all of the wood chips in one day and we have even replaced this thing underneath. Mr. Lenny Rapozo: Yes. Mr. Bynum: And the Friends will continue to provide the volunteer labor. Mr. Lenny Rapozo: Correct. Mr. Bynum: But that is a little bit (inaudible) their budget. So that is what that line item is for? Mr. Lenny Rapozo: My understanding is that we take that out of George's operating budget, the Park Maintenance Budget. Mr. Bynum: The wood chips? April 24, 2012 Parks &Recreation (CIP) continuation p.15 Mr. Lenny Rapozo: The wood chips. Mr. Bynum: When we need them? Mr. Lenny Rapozo: Yes. Mr. Bynum: Because what we have done in the past is a whole like redo the entire thing at once. Mr. Lenny Rapozo: Yes. Mr. Bynum: And it might be better to kind of supplement it a couple of times before we do a real redo. Mr. Lenny Rapozo: In recent discussions, we need to look at as possible, do they meet ADA requirements, the wood chips. Mr. Bynum: Whether they meet the ADA requirement? Mr. Lenny Rapozo: Yes, yes. There have been some discussion on that. Mr. Bynum: I have been debating that with Christina Pilkington for 15 years, and she feels adamantly that they do not, and then we have other people that come out and say they absolutely do. So I do not know if that debate will ever get settled. Mr. Lenny Rapozo: Yes, right. Mr. Bynum: But in the meantime I know the surface has to be safe, and I know that whether it meets ADA requirements...now some of the things we have done is put the rubber pads underneath the swings and replace the wood chips at a certain interval keeps it safe. That playground has places where kids can fall quite a distance, but it is all within specs if we keep them replenished, right? Mr. Lenny Rapozo: You know if you look at ADA Improvements and Playgrounds, look at the Puhi Park, the old Puhi Park adjacent to the new highway. That thing is greatly outdated. Mr. Bynum: Yes. Mr. Lenny Rapozo: But we are waiting to see what the final outcome will be with the road. That is one on our priority list too to change as well, to see what the effects are going to be p Y g g g on the road, the final, to see what the users are going to be like in that park. Mr. Bynum: Right, and you know when we were kids, we had swing sets 20-feet tall. Those are illegal now. Mr. Lenny Rapozo: Yes, you were one that used to wrap the chain, huh, over the top so you can go higher. Mr. Bynum: Yes, yes, yes. Playgrounds have changed, but they still are really important to kids. Mr. Lenny Rapozo: Yes. Mr. Bynum: I appreciate the answer that we...because we had some playgrounds that closed because we did not have it on a maintenance schedule. Mr. Lenny Rapozo: A lot of the challenge that we have been having with playgrounds is dealing with the vendors. A lot of them are sole source vendors. They need from their side to provide the County with documentation in order for them to be sole source vendors. But the sole source vendor is only good for one year. Now we can call, leave messages, send emails, and all of this, but really to get them to provide us that information and until we get it, that prohibits us from moving forward with the playground. And then poor service from the vendor themselves and April 24, 2012 Parks &Recreation(CIP) continuation p.16 eventually...right now my heartache is at Isenberg Park. And that one is one of those stories where the local vendor was not as responsive and eventually his distributor from California was here, and hey, we are going to take of this, etcetera, and we still have not been able to get. So we have made the decision, we will leave the footprint, get another vendor, and put something else in. We have to. But those are the challenges that the Parks Maintenance Chief has been going through in trying to obtain parts, obtaining features for the different playgrounds. He is going to be an expert in procurement too. Mr. Bynum: I know a little bit about those and it is, it is challenging. And that, I have said in the past, there are some of these manufacturers that have been around a very long time and they are probably not going to go anywhere, and then there are other manufacturers. So I am assuming that you are looking at that and going with manufacturers who have some history and track record because it is challenging, but sometimes people have a hard time spending money on playground stuff. I do not understand that. Our little kids that use it, it is a huge thing for them. Mr. Lenny Rapozo: What I have a hard time understanding is that we want to give you money to buy your things, and they do not provide us the information. We bid the playground out, the guy comes, he is installing. Now, we have to maintain it, we have to repair it, and we want to throw money, but we need his sole source vendor documentation to meet the requirements of the procurement laws, and then we cannot get it. That is the challenge. Mr. Bynum: But we have a commitment to playgrounds in our Parks, and to keep them safe. Mr. Lenny Rapozo: Yes, definitely, yes, we will do whatever we have to do. Mr. Bynum: And then I have to say this, any community you feel really excited about your playground? Do a community build. Do it like we did the Kamalani Playground and nowadays they use all plastic and it will last 100 years and be very low maintenance, and it will add character for your community and if anybody's interested, I will help consult. Mr. Rapozo: Okay, let us bring it back to some questions over here because we were straying and straying and straying. Mr. Bynum: I am pau. Mr. Rapozo: I am trying to be real patient and I am asking for your folks help. Let us just focus on the budget as opposed to... Mr. Bynum: Since we were talking about playgrounds. Mr. Rapozo: I understand that, but there are a lot of councilmembers that want to ask questions, Mr. Bynum, and it is good dialogue, but this is a budget hearing. I guess my question is, Lenny, sole source, is that the best way to go in these types of projects? I mean if you are running into problems with the sole source vendor, why would we do p J Y g P Y that? Mr. Lenny Rapozo: Sole source would be they were the only vendor in Hawai`i with the particular brand of playground that we had installed. Mr. Rapozo: Oh, you are talking about just for the maintenance. Mr. Lenny Rapozo: Or just getting the replacement parts if... Mr. Rapozo: Right, right, but not on a...if you are going to replace playground equipment with a whole new playground, does that go out in your normal... Mr. Lenny Rapozo: Yes, then we have to go out to bid and all of that. Mr. Rapozo: So you are talking sole source because you have to find the one that can actually fix that specific... April 24, 2012 Parks &Recreation (CIP) continuation p.17 Mr. Lenny Rapozo: Yes, so like in Isenberg, we have all the (inaudible), we had all the different stuffs, but we were trying to find the replacements for them. That was a sole source. Ms.Yukimura: Question. Mr. Rapozo: Go ahead. Ms.Yukimura: Is there any way at the time you are getting the initial equipment to require in the specs that they provide replacement equipment over a 10-year period or whatever the life of playground equipment is? Mr. Lenny Rapozo: I am going to defer that to Finance. Ms.Yukimura: Okay, yes, maybe we have not tried it, but it might be worth a try if it is legally possible, so that you signal to them that it is an obligation, and see who bids. Mr. Costa: As I understand it, part of the difficulty is for that particular specialty, there is only like two vendors. Mr. Lenny Rapozo: That is part of it, in Hawai`i. Ms.Yukimura: Two vendors in Hawaii. Mr. Costa: Yes. Ms.Yukimura: Well, go to the mainland, get a vendor, get some competition going here. My other question is you had a list of...you described which parks would be covered here. Can you read that list again for me? Mr. Lenny Rapozo: For the islandwide? Ms.Yukimura: Yes. Mr. Lenny Rapozo: If you go to page 59, no. 5, project scope. Ms.Yukimura: So that list has not changed from the one you just read. That was what you were reading? Mr. Lenny Rapozo: That is what I was reading from. Ms.Yukimura: Safety surfaces will be repaired at playgrounds at Wailua Houselots, Kalawai Park, and Koloa, and safety surface and playground equipment will be repaired at Isenberg, Kilauea,Anahola. And you did not mention Wailua Homesteads. Mr. Lenny Rapozo: No, only the Houselots. Ms.Yukimura: Okay, so that is the list then. Mr. Lenny Rapozo: Yes. Ms.Yukimura: You mentioned astro turf. As you know there is a lot of interest about the Kilauea Project. Astro turf is going to be used at Kilauea? Mr. Lenny Rapozo: I am not sure. Rubberized. Ms.Yukimura: It will be rubberized. And what is the...amount is $250,000 for all of those replacements? Mr. Lenny Rapozo: Correct. Ms.Yukimura: And your timeframe, I think you have shown, but everything is to be done when... April 24, 2012 Parks &Recreation(CIP) continuation p.18 Mr. Lenny Rapozo: The resurfacing by September of this year, and the renovating of equipment by March of next year. Ms.Yukimura: Okay, thank you. Mr. Rapozo: Thank you, any other questions? I just have one. Kilauea, the actual equipment on Kilauea, is that on any schedule? The actual playground equipment? Mr. Lenny Rapozo: Yes. That is part of the equipment and surface replacement. Mr. Rapozo: This one just says surfacing at...I am sorry, Kilauea...oh, there is no surfacing...oh, surfacing and equipment at Kilauea. Mr. Lenny Rapozo: Yes. Mr. Rapozo: That equipment is still out there, though. Mr. Lenny Rapozo: Yes. Mr. Rapozo: We never removed it? Mr. Lenny Rapozo: No. Mr. Costa: If I can make one more point. In our finally putting together a schedule for play court resurfacing, one of the things we want to try and do on a yearly basis is to do crack repair because most of the resurfacing is caused by cracks that had additional moisture and got bigger and bigger and bigger. So I think we have believed through and have seen through Eddie Sarita's Adopt-A-Park Program that actually can fix the cracks relatively easily and they will not allow the cracks to digress so quickly. Mr. Rapozo: Perfect, okay, thank you. Islandwide Play Court and Parking Lot Resurfacing. Similar projects? Mr. Lenny Rapozo: Just resurfacing program for all play courts and parking lots in Parks. No. 5 would provide you the areas of where this project is going. Mr. Rapozo: Any questions for Islandwide Play Court and Parking Resurfacing? If not, next item is the Lydgate Park Small Pavilion Renovations. Mr. Lenny Rapozo: In trying to upgrade Lydgate Park, it came to our attention that the small pavilions facing the ocean are really in much more need of extensive repair than previously thought. So this PID was done to address specifically that. There is also the pavilions that are up by the turnaround, where we have concrete columns and it appears that the rebar has rusted, and by rusting it has expanded and damaged through the columns. We have had to actually take down some of those columns and the roofs because of the safety issue for it. So this is to address those concerns or those repairs for those particular pavilions in there. Mr. Rapozo: Thank you, any questions? Mr. Bynum. Mr. Bynum: (Inaudible.) Mr. Lenny Rapozo: Yes. Mr. Bynum: So they may be a different design? Mr. Lenny Rapozo: No, it will probably be the same design. Just four columns and a roof. Mr. Bynum: Right, okay, thank you very much. Mr. Rapozo: Thank you, any other questions? Councilmember Yukimura? Ms.Yukimura: I just what to commend you for this project. I am reading your purpose and it says that 8 small pavilions at Lydgate Park have not been renovated and April 24, 2012 Parks &Recreation (CIP) continuation p.19 retrofitted for the past 20 years, and if not repaired and renovated, entire replacement will be necessary in the next 5-10 years. This project is proposed to repair and refurbish the pavilions to extend their useful lives for another 10-20 years. I mean that is really a classic example of preventive maintenance, and cost effective action. So boy, congratulations. Mr. Lenny Rapozo: Thank you. Ms.Yukimura: Yes, really good project and good timely analysis and thinking on this. Mr. Lenny Rapozo: The next three projects have to do with the Golf Course. Mr. Rapozo: You know what, Lenny. We probably should take a caption break because I think we have been going for about two hours now. Yes, I know. This one went quick. So let us take a 10-minute caption break and that should be the last one, and we will wrap up right after that. Thank you. There being no objections, the budget review was recessed at 3:29 p.m. The budget review was called back to order at 3:41 p.m., and proceeded as follows: Mr. Rapozo: The budget session is back in session. The next item is the Wailua Golf Course Maintenance Building. There being no objection, the rules were suspended. Mr. Lenny Rapozo: The next three PID projects has to do with golf. So I will let Deputy Director Ian Costa lead that discussion. Mr. Rapozo: Ian, you are going to cover all three projects? Mr. Costa: Sure. Mr. Rapozo: Okay. Mr. Costa: Again, Deputy Director Ian Costa. This project is entitled Wailua Golf Course Maintenance Building, New Paved Perimeter, Driveway Aprons. We did reconstruct the maintenance facility recently about four years ago. But, I guess, because of the budget and the fact that much of that reconstruction money was from insurance in the fire damage, but surrounding the maintenance facility is dirt grade. So we are asking for this funding to basically pave the perimeter. About 70% of the perimeter of the maintenance building consists of roll up doors for them to drive their equipment in and out, and in doing so they track the dirt from the exterior in and out, which results in having to clean the maintenance building as well as the equipment more than need be. So that is really it. It is really minimum paving, about...we are looking at about 12 feet deep around approximately 75% of the building. In addition to getting the, dirt and dust tracked in, portions of the building perimeter, because of rain and runoff, are actually eroding. So this would help that as well. Mr. Bynum: I will try to make this really quick and this is not for you guys. It is for Public Works. This is the prime example of the downside of value engineering. These aprons were part of the original design of this maintenance building and because it came in over build, rather than come back here and say hey, we are going to need a few extra bucks, they value engineered and took away these aprons, and I said at the time that is not a good idea. And just as a general consensus, when we go out and do a design and we bid it, that design, some thoughtful things went into it about what amenities you need at what quality and long-term maintenance costs, all those good things that we put into it, and we should be very reluctant to value engineer down because it just was not practical to have a maintenance shed that did not have these aprons. So this is a great project. Thank you very much. That concern was not for Parks; it was for Public Works. Mr. Costa: I did not realize it was value engineered out and I have gone to value engineering courses, and value engineering is not supposed to be a way to cheapen the building. April 24, 2012 Parks &Recreation(CIP) continuation p.20 Mr. Bynum: Right. There are other examples where we said, well, we cannot afford this elaborate of a thing, so we will build a less...now that is one form. But when you take a needed part of the project and remove it, and it is not practical...anyway, thanks. Mr. Costa: Thank you. Mr. Rapozo: Questions? Thank you. Ms.Yukimura: Well, I was going to ask how did this happen that such an essential component was left out. Mr. Rapozo: That is a Public Works issue. Ms.Yukimura: And I am glad that Councilmember Bynum gave us some history. But yes, all the cost of rebidding, and all the time and energy put into this just does not make sense, and so I hope we take it as a lesson well learned on everybody's part because if that happens, Parks should be complaining up and down to stop it from happening. Mr. Costa: Yes, particularly in a building like this where 75% is roll up doors that... Ms.Yukimura: Well, and if you read all the rationale for it, it is not a supplementary or nice thing to have. It is an essential part of the facility. So thank you. Mr. Rapozo: Any questions? Thank you, Driving Range Net Replacement. Mr. Costa: Yes, the next project is to replace the Driving Range Net, as well as, I believe, three of the utility p replace we need to lace as well due to termite and rot. The net p has not been replaced for at least five years. We have gone through a number of band-aid fixes to patch holes. But as I understand it, what causes the degradation of the net is really the main cables. Once those get frayed from exposure to salt and air, then it begins to cut the net away, especially in windblown events. It is a critical part of the Golf Course because the Golf Course actually faces the beach and there are a number of golfers who find pride in hitting it over the net. It is a real essential liability piece that we need to keep up as we do get claims occasionally by cars getting hit. Mr. Rapozo: Cars? Mr. Costa: Parked on the beach. Mr. Rapozo: Well that is illegal. Mr. Lenny Rapozo: So we do not have to pay them then. Mr. Rapozo: That is why I use the blackout balls because I do not want anybody to know it was my ball that is going over that fence. Mr. Costa: Yes, I am not aware, but I know at least since I have been here we have been lucky, no person has been hit because it actually goes over quite often. Mr. Rapozo: Well, actually if you go back there you see a lot of the...I would not say a lot, but you definitely see golf balls on the beach. So you have some gorillas that can put them out there, but I am not sure how you stop that. Mr. Costa: Yes, so a year ago we had a pretty heavy wind event that tore several holes, and so we scrambled to get those at least sealed up. Mr. Rapozo: So you are thinking the ball is going through the net and not over the net. Mr. Costa: Well, if there are holes in the net, I have witnessed many hitting it over the net. Mr. Rapozo: Yes, you know I never thought of that. That might make more sense because I know there are a few people that can put it out. How far is that net from the... April 24, 2012 Parks &Recreation(CIP) continuation p.21 Mr. Costa: I think it is only about 2... Mr. Rapozo: Oh really. Mr. Costa: Yes, it is not 300 yards. Mr. Rapozo: Okay, all right, any questions? Thank you, I like your assessment that you recoup the cost in a year and a half just based on the revenues from the driving range. I did not realize the driving range generated that much money. So that is a good thing, and then the waterline? Mr. Costa: And then the last one we are asking for is the potable waterline replacement and certainly this is a project we could take advantage of trenchless services. We do not have to go under slabs, but large runs of line that we can avoid trenching, and given the cultural sensitivity or the known number of burials on the golf course, I think we would likely specify that for this project. But this is essentially the waterlines that serve the course itself. It runs from the Clubhouse all the way to one end of the golf course to supply the drinking fountain and the restrooms on both ends of the course. And we have had a number of leaks over the last year. It is hard to detect because it is sandy soil, so ponding is not evident. But we have found a few leaks recently because of excessive water bills. So that is why we have made it a priority and the fact that those lines were placed in the early 1960s as well. Mr. Rapozo: Before I was born. Go ahead, Councilmember Yukimura. Ms.Yukimura: So what is the linear feet of line you are going to replace? You say it runs the distance of the golf course, so that is quite a distance. Mr. Costa: Yes, it does not branch out throughout it. It is basically a straight run to the furthest drinking fountain on either end. Ms.Yukimura: What is that? Like at least a quarter... Mr. Costa: I recall 6,000 feet or... Ms.Yukimura: Well, 6,000 feet is...250 is one mile, so like you are talking 2 miles of line? Oh yes, 5,000. Mr. Costa: It is not a very big pipe. Mr. Lenny Rapozo: It is about an inch, one-inch water pipe. Ms.Yukimura: Twenty thousand, is that going to cover that? Mr. Rapozo: You doing this in-house? Mr. Costa: No, but we did get some prices, and again it is really just laying line. Mr. Rapozo: Right, it is not a very big job. Mr. Costa: I think along the length of the front nine, you probably have two drinking fountains that you hook up to and then the bathroom. They are not redoing the bathrooms. Mr. Rapozo: Right, it is just the main, right? Mr. Costa: That is right. Mr. Rapozo: So I mean that is probably a couple days. Mr. Costa: Yes, yes. April24, 2012 Parks &Recreation(CIP) continuation p.22 Mr. Rapozo: Trenching, dropping, covering and done, so that is about right. Ms.Yukimura: A mile of pipe. Mr. Rapozo: Just this kind pipe, small pipe, one-inch plastic pipe. They got prices, so let us lock it in before they talk to JoAnn. Mr. Lenny Rapozo: Or before they see this program. Mr. Rapozo: Thank you, JoAnn, though. All right, any more questions on the waterline. If not, the next item is the Softball Field Pavilions. Mr. Lenny Rapozo: The last of the proposed new projects, the last two is the Softball Field Pavilions, the seniors of Lihu`e and Hanama`ulu have come to us and wanted to build pavilions similar to that at Kaumakani and Kapa`a. So this is this project. Mr. Costa: And Koloa. Mr. Lenny Rapozo: Any questions on that? Mr. Rapozo: Go ahead, Mr. Bynum. Mr. Bynum: Just a very quick comment. Thank you for carrying on the long tradition of the Parks Department working with our community to do these kind of win-win projects. We supply the materials, they supply the things. Mr. Lenny Rapozo: Right. Mr. Bynum: I do not think people understand how many of our park amenities were completed that way over the years, so thank you for that. Mr. Lenny Rapozo: We have to thank the seniors, too, because the seniors are stepping up, and the same seniors that built the Kaumakani Pavilion will be helping the Lihu`e and the Hanama`ulu Seniors to complete their projects. Mr. Bynum: Thank you. Mr. Rapozo: Thank you. Councilmember Yukimura. Ms.Yukimura: Yes, I think this is a wonderful budget line item. I just want to ask that you be really careful in the design because I am aware at Kaumakani there is a place where the platform is really high and people have fallen from it. There needs to be some kind of a fencing or railing put on the...and that should have been part of the design. Now we have to do a retrofit. So it is signaling to us that there is so much good intention and such amazing community labor and input, but our responsibility is to check the design so that we do not create liability and also hopefully no retrofits. Mr. Costa: What platform is that? Is that the slab, the floor? Ms.Yukimura: The slab. I went to look at it and people have told me that people have fallen and thankfully not been badly hurt, but it is a potential issue, and I did file a personal request about it. But anyway, it is like the irrigation system that was done by citizens, so much goodwill and effort, but somehow we missed certain things about the design and that is our kuleana. It is County kuleana. Mr. Costa: It sounds to me like it is more not having the proper survey to know what the grade difference is. On one end of the building it is okay, but on the other end... Ms.Yukimura: Right, that may have been it. Mr. Costa: Maybe we can fix that by bringing in fill. April 24, 2012 Parks & Recreation (CIP) continuation p.23 Ms.Yukimura: I am not sure. That is a lot of fill you are going to have to bring in. But see, your options are not as great as if you had...I do not know. I am not a construction person, but figured out the railing already in there or a lower slab or something. But it is always easier, as you must know, Ian, as an architect, to catch it in the design phase than to try to retrofit. Thank you. Mr. Rapozo: Thank you. Just one question, Lenny, on the Section 1, No. 9, Assumptions: We believe that financing will be granted. What financing are you referencing? Mr. Lenny Rapozo: The $100,000. Mr. Rapozo: From? Mr. Lenny Rapozo: From this CIP. Mr. Rapozo: Okay, so there is no external source. Mr. Lenny Rapozo: Yes. Mr. Rapozo: Thank you. Okay, next item, Hanapepe Stadium Ticket Booth. Mr. Lenny Rapozo: Yes, this facility, again, developed in the early 1970s, but we are designing the Ticket Booth to meet the design and construction of a permanent Ticket Booth that meets the ADA Building Code requirements. That is basically what this is. Mr. Rapozo: In-house permitting design and you anticipate $25,000.00 will do it. Mr. Lenny Rapozo: Yes. Mr. Rapozo: Okay, any other questions? Thank you. Next item. Mr. Lenny Rapozo: Finally is the proposed new project that did not get funded. It is the relocation of the Kapa'a Swimming Pool and doing another Kapa'a Neighborhood Center. So this section here, even though it did not get funded, we just wanted to show that we are thinking of this project;we have it on our radar; and hopefully in the future it will get funded. Mr. Rapozo: Mr. Bynum. Mr. Bynum: Just my understanding is this is an additional neighborhood center in Kapa`a. Mr. Lenny Rapozo: Correct. Mr. Bynum: And so I asked this question in writing a while ago, I just want to put it on the record really quickly that there was a lot of discussion about renovating the kitchen in the existing Kapa'a Neighborhood Center and particularly of putting a makai Lana`i like Kekaha has with the usability of that. Here is this beautiful facility right on the ocean and the back wall is pretty much a back wall, and so there was a lot of discussion in the past, and I thought there was some energy behind it about putting a big lanai out in the back, which would make it so much more usable, and the kitchen, it was a mess a few years ago. So I hope that is also on the radar screen. Mr. Lenny Rapozo: The latest update on that was there was also the discussion about the homeless people that have moved into the area that we constantly are dealing with, and then that would be their location. Mr. Bynum: They would hang on the lanai. Mr. Lenny Rapozo: Yes and then there was some conversation or discussion about enclosing the lanai, and roll up doors, and all of that stuff, including an additional restroom we were going to have so the people on the path can have...so the design is still happening as we talk because we do not know later on if things will change, climate will change, we are not going to have the April 24, 2012 Parks &Recreation(CIP) continuation p.24 homeless problem in that area, we do not know. So we are going to complete the design as we discussed and hopefully later when the design is done maybe things have changed and we can construct what we just envisioned. But until those other concerns are addressed, then it is going to be pretty hard to finish an open patio by having the current people at night living around there, unfortunately. Mr. Bynum: That is a shame. Mr. Lenny Rapozo: Yes. Mr. Bynum: I just...and it is not my vision, it is a whole bunch of people. It just makes so much sense. Mr. Lenny Rapozo: Yes, we do not disagree, but just what is going to happen following. Mr. Bynum: Okay, thank you for letting us know. Mr. Rapozo: Any further questions? Councilmember Yukimura. Ms.Yukimura: So this process...you are not presuming a location at this point. You are going through a process of looking at alternative sites. That is what your proposal is. Mr. Lenny Rapozo: Right, it would be to conduct a comprehensive study to determine feasibilities and permitting requirements and all logistics for the project and its location. Ms.Yukimura: But it may not be one project. I mean the pool might be someplace and the neighborhood center might be another place. Mr. Lenny Rapozo: That might be a possibility, but ideally we would hope it would be together. Ms.Yukimura: What if it makes sense to put a pool by the school, like at Chieffess. I mean that is...whether it is the middle school or the high school and I do not know the parameters, there is a certain value to that too, then kids do not have to travel. Whereas you do not need that requirement for a neighborhood center. It is sort of like mixing the Landfill with a Resource Recovery Park. Mr. Lenny Rapozo: Oh, that is a Public Works Project, do not bring it into this. We do not want it. Ms.Yukimura: Well, do not copy them. Mr. Lenny Rapozo: Do not use Recovery Park. It is not a park. We are talking in Parks, but we do not want that park. Ms. Yukimura: You do not want that park. I agree. You do not want that park. You know what I mean. Mr. Lenny Rapozo: I guess Councilmember Yukimura that is hopefully what the feasibility will tell us and the potential of sites and what would be good for us. Ms.Yukimura: So I am just hoping that the RFQ or the RFP does not put as a condition of the planning that they be together, that you allow the flexibility to look because they may not have similar purposes. Mr. Lenny Rapozo: Yes, true, but the Kapa'a Neighborhood Center is rather small, I believe, serving the largest district, and I saw initial older, when the first conceptual drawings were done, that it was supposed to have been two stories at some point some day, but nobody envisioned the bike path being so popular. The parking there would not be conducive to a second story. It is near the ocean. Most of our neighborhood centers are used as either a disaster relief area or holding area or a post-disaster area. So we do not serve that purpose for the Kapa`a Community as a County. They have other places. April 24, 2012 Parks &Recreation (CIP) continuation p.25 Ms.Yukimura: I do not have any objections and I support the idea of another community center. Mr. Lenny Rapozo: Yes. Ms.Yukimura: I hear all the reasons why we need it, the same reason for wanting to move the pool. So both have reasons for moving. I just do not want to restrict the planning and feasibility to putting them together. That is all. Mr. Lenny Rapozo: Okay. Mr. Costa: I guess we would probably ask for advantages and disadvantages for... Mr. Lenny Rapozo: Having them together. Mr. Costa: ...having them together or separated. Ms.Yukimura: There are those advantages too to having them together. You can have staff oversee both of them. On the other hand, the kids do not have to...the swim kids can just walk to the pool like they do from the middle school. So there is some advantage...and you do not need a neighborhood center by the pool. Anyway, I am just requesting that we make it flexible so we can analyze all the possibilities. Mr. Rapozo: Thank you, any more questions? Mr. Lenny Rapozo: That concludes our presentation. Mr. Rapozo: Okay, go ahead. Mr. Bynum: I had a giant list of general questions, but I am only going to ask one with the Chair's permission. Mr. Rapozo: Sure, this is where we can...because I have a few questions on things that (inaudible). Mr. Bynum: Okay, then I renege and maybe I will ask my... Mr. Rapozo: No, you just said you only had one. Mr. Bynum: And I have written about this to the Mayor and talked to you. I think one of the questions we have going over, which bathrooms when we did ADA compliance resulted in reduced capacity and numbers of stalls, and I just really want to reiterate and strongly encourage Parks to look at upgrading restroom facilities in those parks where they have been downgraded. Kapa'a New Park is begging for that right around the senior baseball. That would be a high priority to me. You have a men's restroom and women's restroom that has one stall. And you have the roller rink, then the skate park, and the softball, and I just really would...and that restroom has got to be like 40 years old. So whether it is adding to them or supplementing them, or better yet, just start from scratch and put in a modern facility. I would hope that is a priority for us going forward. I do not see any of that in this budget. That is just my plea. Thank you. Ms.Yukimura: I have the same question. Mr. Rapozo: Why would you ask the same question? Ms.Yukimura: I have a question that is along the lines of the previous question. Mr. Rapozo: That is okay. Ms.Yukimura: You sound like my husband. Mr. Rapozo: I am not even going to say anything. Go ahead, JoAnn. April 24, 2012 Parks &Recreation (CIP) continuation p.26 Ms.Yukimura: I have the same concern because the seniors, especially, have brought this concern up to us year after year after year. And so I see we requested all the restrooms throughout the system that were altered by removing one toilet for ADA requirements and your answer, thank you for your quick answers, but it says staff is requesting additional information. I think you meant additional time... Mr. Lenny Rapozo: Time, correct. Ms.Yukimura: ...to gather the information. When can we expect this list? Mr. Lenny Rapozo: We are going to have to go park by park, right, to make sure...to see...we tried doing it off the top of our heads, and we were not very sure of ourselves in terms of which ones we did and which ones we did not. So we are going to ask our district guys to go from park to park in their district to give us an answer. That was the need for the more time. Ms.Yukimura: What timetable are we looking at? Mr. Lenny Rapozo: Now that my CIP review is done, we can focus... Ms.Yukimura: You will have time to do your work. Mr. Lenny Rapozo: We wanted to make sure this was well organized and all that. Ms.Yukimura: You, you did it. Mr. Lenny Rapozo: Now we have time to focus on some of those things. Ms.Yukimura: That would be really helpful because I think we might want to include in the budget a couple priorities, like if Kapa'a New Town Park is one of the priorities and I do not know, but it has been a really long-standing problem. I am so grateful you did Isenberg Park and we would like to see... Mr. Lenny Rapozo: One of the priorities of the Mayor when he came into office was to look at projects that were sitting that were ready to go that needed to just be going out to bidding, get out the bid, get a contractor, and move it. So for the last 2009 and 2010, those are some of the priorities. This body had mentioned Isenberg, that was already one of the priorities. Ha`ena Beach Park was on the books for about 20 years, that comfort station, that was worked on. So a lot of the projects that we worked on were projects pending. Playgrounds, Omao playground. Councilmember Kaneshiro said that thing was on there for about 10 years. Ms.Yukimura: Val Tsuchiya's son grew up from the time they asked. Oh, I am talking about Waha, but. Mr. Lenny Rapozo: What this group or our Administration had done was to look at all of the projects on the books and see where they were. Was it just a matter of funding? Were they ready to go? Those were the projects we attacked. And from those projects, of course, we learned about Isenberg restroom, what the benefits are, what we need to improve in terms of privacy and stuff like that. Ms.Yukimura: Right, that is right, now you can include the wall in the design. So that is what we have been looking for, prototype repair and an estimated cost so that we can start getting these other projects ready too and I like the approach of the Mayor, which is which ones are ready to go, let us go with them. But at some point you have to start getting projects ready to go too for subsequent years. Mr. Lenny Rapozo: Right, now we can move on to the other projects that are in the pipe. Ms.Yukimura: Okay, thank you very much. Mr. Rapozo: Mr. Kuali`i. Mr. Kuali`i: I do not know if I missed this earlier, but the park open space acquisition and that is on page 4 in the chart. April 24, 2012 Parks &Recreation (CIP) continuation p.27 Mr. Lenny Rapozo: Okay. Mr. Rapozo: $8 million? Mr. Kuali`i: Yes, the bond -$1.9 million, Park $300,000, so the available changing from $8 million crediting back, I guess, $1.6 million, and then going forward $6.4 million. So what is the change, what is happening going forward? Mr. Lenny Rapozo: As far as the change, that is a question for Finance. As far as what that money is for, it is the purchase/expansion of Black Pot, the Sheehan property. Mr. Kuali`i: And so that is the $6.4 million is expected to be expended in the next 18 months? Mr. Lenny Rapozo: Yes, yes, in fact very shortly. The yellow book value came down well below. I think initially we had $8 million. So this will take care of the purchase of the property as well as whatever legal expenses that are incurred in obtaining the property. Mr. Kuali`i: If it ended up being a significant...when would we know if it was some amount that was significantly lower than$6.4 million? Mr. Lenny Rapozo:ozo: I believe the value was 5.8. Mr. Rapozo: I think we will end it on that, and we will probably be asking or I will probably be asking for an update as well on that. It has been awhile, so we will ask for an update. That obviously would have to be in executive session. Any more questions? About another matter? Ms.Yukimura: Yes. Mr. Rapozo: Okay, thanks. Or is it the same question? Ms.Yukimura: Watch out. My question is there has been a request from the community for another restroom in Hanapepe Stadium that is farther from the main facility. Mr. Lenny Rapozo: Actually, I have been looking at that. I have been doing a lot of work at that stadium for the last 24 years and to see our kupuna, aunties and uncles, that sit on the press box side having to go to either the restroom near the neighborhood center or the one down towards the road makes sense. So one of the first things we did was...for now at least, we have Porta Pottys during the football season and soccer season there so that the people do not have to walk that far, but part of the Master Plan, if you saw, was for a comfort station as well as a Ticket Booth on that side of the stadium. Ms.Yukimura: It was actually in the budget at one point and I guess it is not anymore, so I am glad that it is in the plans. It is in our Master Plan for Hanapepe? Mr. Lenny Rapozo: Yes. Ms.Yukimura: Thank you, that is good. And I guess there is nothing...is there is a timetable for it? Do you know? Mr. Lenny Rapozo: No, I think along...as part of that whole...looking at that whole facility, we need to redo the food booth. As wonderful as going to this food booth all of our lives, where it is wide open and right through, go around the back, that kind of stuff, there is definitely need for an upgrade and maybe the upgrade with the food booth would come an upgrade with a comfort station on that side of the facility as well. That is also part of the Master Plan. Ms.Yukimura: Okay. That is really good news to hear that because the seniors have been waiting, requesting that and asking for it for a long time. Mr. Lenny Rapozo: Yes. Ms.Yukimura: All right, thank you very much. April 24, 2012 Parks &Recreation(CIP) continuation p.28 Mr. Rapozo: Any other questions regarding the CIP Projects of Parks? If not, I just have a couple. One is a general question and I asked...I think I asked Finance earlier—I forget who it was—about the reason to put the equipment in the CIP: mowers, cartsters. I noticed it is not bold, so I am assuming these are recurring or are these new? Mr. Lenny Rapozo: No, these...some of them are new and some of them...I am sorry I take that back. These were from last year and I had copies of the three contracts that just went out today for the purchase of the items in here. Mr. Rapozo: Some of these are going to be off in the May submittal? Mr. Lenny Rapozo: Right here, yes, yes. So we have the three contracts. Mr. Rapozo: So those are done;it is going to come off. Mr. Lenny Rapozo: It is going to come off. Mr. Rapozo: I guess the question is what is the benefit of putting them in CIP versus General Fund. Mr. Lenny Rapozo: It was a Finance call, that was their call. Mr. Rapozo: I think he told me to ask you. No, I asked somebody. Mr. Lenny Rapozo: I want his name. I want to know who. Mr. Rapozo: Maybe one of you remember. I asked that question earlier and they said it was a... Mr. Lenny Rapozo: Parks call? Mr. Rapozo: Was it Parks? Maybe...I cannot remember. Mr. Lenny Rapozo: It is not our call. Mr. Rapozo: Okay, well we will send that over to Finance. I just do not see the logic to have it in CIP. It is uncomfortable for me to put a piece of equipment in a CIP budget because equipment is not a capital improvement; it is not. And I am not sure why. Does Public Works have equipment in their CIP budget as well? Mr. Costa: They probably do. Mr. Lenny Rapozo: I would think they would. If we have, I would think they would. Mr. Rapozo: So it may have been Public Works and maybe they said the same thing, ask Finance. We will ask Wally about that. I just do not understand that unless it was part of, obviously, it was part of the bond fund, CIP bond, if it was at some point, but I do not know if that would fly. So we will follow up with that. Then the other question is...this is my last question actually and it is the Hanalei Courthouse. Koloa and Hanalei were both already done, so it is County property now? Mr. Lenny Rapozo: Koloa has been always ours for awhile. Mr. Rapozo: Okay. Mr. Lenny Rapozo: The Hanalei with the new Chief Justice, he had a...I do not know what you want to call it, but he thought that the Judiciary gave the land but not the building. And so we went through this whole process within the last year to clarify that and now the County does own the land and the building. Mr. Rapozo: We do. So it is ours. April 24, 2012 Parks & Recreation (CIP) continuation p.29 Mr. Lenny Rapozo: It is ours, yes. Mr. Rapozo: I noticed that there is a reduction of$300,000.00 and I am not sure if that is because it was spent or you are reducing it. So right now what is in that fund is $350,000. Mr. Lenny Rapozo: Yes. Mr. Rapozo: Is that going to be sufficient to convert that? Mr. Lenny Rapozo: Probably not. Mr. Rapozo: Is that going to be like the community center? Mr. Lenny Rapozo: That is where we are right now. The community had the input as to what they wanted to see in it. The community needs to decide if they want it to be run like a neighborhood center with a fulltime person there Monday through Friday or if they want to have it done like the Anahola Clubhouse where it would be available for meetings and you go pick up the key. I am envisioning it would be now like in Illauea, and so how they want it to be operated, that is the point. That project there is one of the those projects that I really wish I could giddyup and get it to move faster. We were going through the permitting phase when the consultant realized that it is in the federal flood plain zone, and so now we needed to look at what the cost would be additionally to waterproof it, the building; I am sorry, flood proof the building, which for me it is a little baffling because if you talk to any of the longtime residents there, that place has never flooded, number one, and number two, what does that mean? We cannot open the door? So it is kind of crazy. We just got the numbers back. It is going to cost an additional $70,000.00 from what we initially thought it was going to be to renovate the building. Mr. Rapozo: So we are looking just at the ADA improvements and septic? Mr. Lenny Rapozo: No, inside the building there is a...if you remember how the courthouse was, it is completely different inside. The walls are not there. Mr. Rapozo: Already you mean? Mr. Lenny Rapozo: No, no, that is going to be part of the construction project. As far as moving those moneys, that is a Finance call, again. Mr. Rapozo: No, no, I am just talking about the 350, though, the actual 350 that is in the line now. Mr. Lenny Rapozo: Yes, initially it was like 650. Mr. Rapozo: Yes, 650. Mr. Lenny Rapozo: That other 300, Finance took the money, and you have to discuss that with them. But as far as the project is concerned and where that project is that has been the latest within the last couple weeks. Mr. Rapozo: And you have a timeline on that project? Mr. Lenny Rapozo: We had hoped to go to construction this month...I am sorry, last month. But with the additional requirements to flood proof the building, that threw it back. As we were going through the permitting process with Planning, that took a little bit longer than we anticipated, and then we had this new flood proofing issue come up. That put this one even slower. Mr. Rapozo: Maybe we have to put the $300,000 back. I do not know. We have to try see. Mr. Costa: That is probably the result of the flood ordinance, once you exceed the 50% of the replacement value of that structure, then you have to bring it up to current standards, so that kicked in the flood proofing. Mr. Rapozo: Questions? April 24, 2012 Parks &Recreation(CIP) continuation p.30 Ms.Yukimura: Follow-up question to yours about the (inaudible). You are saying that...they are saying our documents show that it is in the flood zone. Mr. Lenny Rapozo: Yes. Ms.Yukimura: But nobody remembers it ever being flooded. Mr. Costa: Most of Hanalei actually is in the flood zone. Ms.Yukimura: Is it in the Tsunami Zone too? Mr. Costa: No, it is not Tsunami. It is riverine flooding. The rivers have never reached that area. Ms.Yukimura: So is there a way to change the flood lines because they were roughly drawn? Mr. Lenny Rapozo: It is a federal... Mr. Rapozo: The federal government sets the flood... Ms.Yukimura: No, but they change the flood lines all the time because they were drawn pretty roughly and then if you can document that it has never flooded, I think they will change it. It might be cheaper and easier to do that than to flood proof the building. Mr. Costa: I have to double check. I am not sure if it is just...because there were new maps that came out in 2010, so I am not sure if that is one of them that got upgraded. Ms.Yukimura: Can we check? If nobody can remember it... Mr. Costa: Actually flood maps are that way though. If you look at some of the flood maps, Koloa Town would be under water based on them. Ms. Yukimura: Koloa Town, I think, actually has history of flooding. Anyway, it is worth at least a preliminary check because it might be cheaper and make more sense if it is not necessary. Thank you. Mr. Rapozo: Any more questions for Parks and Recreation? All right. Thank you very much, Lenny. Mr. Lenny Rapozo: Thank you. Mr. Rapozo: I did fail to ask anyone in the audience if they wanted to testify. Seeing none, I will...at this time the budget departmental reviews and callbacks will stand adjourned. We will reconvene on Thursday, May 10 at 9 a.m. for Decision Making. Ms.Yukimura: May I ask that it be recessed in case the Chair decides we are going to call back the Prosecuting Attorney? He did leave that open. Mr. Rapozo: Well, it is not posted. Today ends the official posting. It would require a new posting. We have to adjourn Budget Departmental Reviews and Call-Backs and we will reconvene on Thursday, May 10, 2012 at 9 a.m.for Decision Making. Thank you. There being no objections, the Departmental Budget Reviews and Departmental Call-Backs was adjourned on Tuesday,April 24, 2012, at 4:20 p.m. Respectfully submitted, (-mr-- Darrellyne M. Simao Council Services Assistant II