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HomeMy WebLinkAbout090913 Agenda PacketSandi Sterker R F C F I\/ P* n Members: Chair Dirk Apao Lawrence Chaffin, Jr. *13 A� P12 -39 Glen Takenouchi Arryl Kaneshiro Laurie Yoshida Vice Chair Joann Nakashima OFFICE OF THE COUNTY CLERK COUNTY OF KAUA'1 COUNTY OF KAUAI COST CONTROL COMMISSION NOTICE OF MEETING AND AGENDA Monday, September 9, 2013 1:30 p.m. or shortly thereafter Mo' ikeha Building, Liquor Conference Room 3 4444 Rice Street, Lihue, HI 96766 CALL TO ORDER APPROVAL OF MINUTES Regular meeting minutes of July 22, 2013 BUSINESS CCC 2013 -19 Discuss and clarify the anticipated cost savings analysis for a proposed two- member litigation team for the County of Kauai CCC 2013 -20 Presentation by Council Chair Jay Furfaro on the County of Kauai Energy Sustainability Plan CCC 2013 -21 Discussion on the vacancies in the Kauai Police Department versus overtime CCC 2013 -22 Discussion on the vacancies in the Department of Public Works versus overtime ANNOUNCEMENTS The next meeting: Monday, October 14, 2013, at 1:30 p.m. at the Mo'ikeha Building, Liquor Conference Room 3. NOTICE OF EXECUTIVE SESSION Pursuant to Hawai'i Revised Statutes §92 -7 (a), the Commission may, when deemed necessary, hold an Executive Session on any agenda item without written public notice if the Executive Session was not anticipated in advance. Any such Executive Session shall be held in pursuant to H.R.S. §92 -4 and §92 -9 and shall be limited to those items described in H.R.S. §92 -5(a). Discussions held in Executive Session are closed to the public. ADJOURNMENT An Equal Opportunity Employer PUBLIC COMMENTS and TESTIMONY Persons wishing to offer comments are encouraged to submit written testimony at least 24 -hours prior to the meeting indicating: 1. Your name and if applicable, your position/title and organization you are representing 2. The agenda item that you are providing comments on; and 3. Whether you will be testifying in person or submitting written comment only. 4. If you are unable to submit your testimony at least 24 hours prior to the meeting, please provide 10 copies of your written testimony at the meeting. The length of time allocated to person(s) wishing to present verbal testimony may be limited at the discretion of the chairperson or presiding member. cc: First Deputy County Attorney Amy Esaki Send written testimonEto: Cost Control Commission Attn: Mercedes Omo -Youn Office Boards and Commissions 4444 Rice Street, Suite 150 Lihue, HI 96766 E -Mail: myoun(a,kauai.gov Phone: (808) 241 -4920 Fax: (808) 241 -5127 SPECIAL ASSISTANCE If you need an alternate format or an auxiliary aid to participate, please contact the Boards and Commissions Support Clerk at (808) 241 -4920 at least five (5) working days prior to the meeting. 2 1 P a g e Cost Control Commission — September 9, 2013 COUNTY OF KAUAI ��FT l la r f Minutes of Meeting OPEN SESSION Board/Committee: I COST CONTROL COMMISSION Meeting Date I July 22, 2013 Location Mo'ikeha Building — Meeting Room 2A/B Start of Meeting: 1:26 p.m. End of Meeting: 2:26 p.m. Present Chair Sandi Sterker; Vice -Chair Arryl Kaneshiro; Members: Dirk Apao and Lawrence Chaffin Jr. Also present: First Deputy County Attorney Amy Esaki; Boards & Commissions Office Staff. Support Clerk Mercedes Youn; Administrator Paula Morikami; Finance Director Steve Hunt; Budget Analyst Ken Shimonishi; Council Chair Jay Furfaro; and Council Services Review Officer Scott Sato Excused Commissioners Joann Nakashima, Glen Takenouchi and Laurie Yoshida Absent SUBJECT DISCUSSION ACTION Call To Order Chair Sterker called the meeting to order at 1:26 p.m. Approval of Regular Open Session Minutes of June 10, 2013 Commissioner Chaffin moved to approve the Minutes minutes as circulated. Vice Chair Kaneshiro seconded the motion. Motion carried 4:0 Communications CCC 2013 -18 Memorandum dated June 3, 2013 from Council Chair Jay Furfaro to Chair Sandi Sterker and Members of the Cost Control Commission, regarding a request for a deferral of the Cost Control Commission meeting. (Deferred on 6/10/13) Chair Furfaro provided the Commission with a chart that reflects his own projections on actual budget amounts for the past eleven months regarding the General Fund, Highway Fund, Golf Fund, Solid Waste and Sewer Fund. He gave an interpretation on the numerical data for each fund as it relates to inter - government revenues, service charges, miscellaneous, total revenues, departmental spending, excess of revenues and variances. He described the various departmental spending for each fund and pointed out that although the numbers are negative he felt that it was a positive indenture for the County because it showed that the County sent less for Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 2 SUBJECT DISCUSSION ACTION that specific period in time. He explained because the County is a cash accounting system, it does not receive all of its bills in a timely manner which makes projecting a forecast quite difficult even though the County has already entered into contracts to pay those bills. He mentioned that the County is not estimating any accruals to be spent, which is an issue that he and the Director of Finance have shared differences. Council Chair Furfaro pointed out to the Commission that the actual expenditures for the Golf Fund are $2.016 million dollars with a budget of $2.254 million dollars; and a variance of minus $238 thousand dollars. He shared his concerns that the service charge and revenue for the golf course continue to lag creating a variance of $57 thousand dollars. He mentioned that the County has no operating date for the restaurant, which includes the bar lease, and from what he understands the parks department has not fulfilled their request to Council that they would be in operation by July 15"'. Council Chair Furfaro stated that the County is preparing a 13 month report which in essence gives the Finance Department an additional 90 days to collect all outstanding bills and complete a compilation report of the final costs for the year. He indicated that the County will not know where it stands financially until the final bills are paid and are confirmed by an outside certified audit for the County. He voiced his concern that this is not a great way to do business because as with the resort business the books are usually closed and the reports sent to the owners within thirty days before the ending of the year. Council Chair Furfaro stressed how difficult is it for the Council to get a reasonable understanding of where the County stands financially. He encouraged the Commission to make a request to the Director of Finance Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 3 SUBJECT DISCUSSION ACTION that they do a quarterly financial presentation on the County's major funds regarding the General Fund, Highway Fund, Golf Fund, Solid Waste Fund and Sewer Fund. He noted that these accounts have the biggest and largest variances. Chair Sterker asked for his opinion on whether he felt the other funds did not have as much variances as the major funds. Council Chair Furfaro stated that he cannot confirm whether the other funds have more variances in the way of percentages compared to the major funds. Chair Sterker asked if combining all of the other funds would make up a major fund. Council Chair Furfaro stated that it would only make up half of a major fund and asked whether it would be appropriate to ask the Finance Director if he agreed in principal on his interpretation of the numbers. Director of Finance Steven Hunt indicated that he agrees with the principal aspect because it is similar to the exercise that the Department of Finance goes through. He noted that as Chair Furfaro previously mentioned, the issue is with timing because it is a funding account. He explained that some of the items that still need to be processed are the larger payments that include the County's annual retirement contribution of $7 million dollars due at the end of year; a third party contract for the landfill for $2 million dollars also due at the end of the year; and the solid waste recycle program for $500 thousand dollars which was encumbered internally but was not executed in time. He noted that these funds would essentially show up as an encumbered cost for FY 2013. Council Chair Furfaro stated no matter how difficult it is to get an exact projection, what is more important is to have at least an understanding of where you are at and at what point. He indicated that an average person may not comprehend the whole picture and may think that the County has Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 4 SUBJECT DISCUSSION ACTION a huge surplus, which is certainly not, in this case. Council Chair Furfaro referred to a strategic plan that is being developed that will deal with the employee wage increases. He explained that negotiations with Bargaining Units 1- 4 were reached which will add roughly $1.1 million dollars to the County's payroll budget. He mentioned that through an arbitration process a contract agreement between SHOPO (State of Hawaii Organization of Police Officers) and the Counties was finally reached which resulted in a four year contract agreement equal to a 16.8% pay increase for police officers. Ms. Morikami asked for clarification on whether the numbers he referred to in his discussion came from Finance or his own estimates. Council Chair Furfaro clarified that the numbers are his own estimates. Chair Sterker asked whether the revenue report summary also reflects his own estimates. Council Chair Furfaro clarified that the data in the revenue report summary are actual numbers taken from the last nine months. He pointed out that the details regarding the settlement of each bargaining unit came from the newspaper. He noted that it is no secret that the City and County of Honolulu has to find $50 million dollars to cover the pay increase for its police officers because the pay increase affects every County. Council Chair Furfaro stated that the Council is trying to find a better way to help the Finance Department expedite a monthly revenue summary report of the County's expenses to the Council on a timely basis. He indicated that Vice Chair Nakamura is currently working on a bill. The purpose of the bill will require the Director of Finance to complete a list on the County's financial exposures on a timely basis. He recalled in history that the Council had to wait four to five months just to get an Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 5 SUBJECT DISCUSSION ACTION interpretation of a financial report that came before Council. Chair Sterker asked what he would recommend the Cost Control Commission do with the information. Council Chair Furfaro stated that the Commission should encourage a more timely process in getting financial reports out to the Council highlighting the major expenditures so that Council can get a better understanding on where it's at. He voiced his concern that once he leaves office no one will carry on in reviewing the financial reports. He questioned why the Council would want a financial report if it weren't able to digest what the numbers mean. Chair Sterker asked whether he felt that is what the Cost Control Commission should be doing. Council Chair Furfaro said yes and that the Commission should be kept in the loop at least on a quarterly basis so that it can have a better understanding of the County's financial position. He shared with the Commission that the Council has received a pledge from the Finance Department expressing their willingness to work together in getting out a monthly financial report to the Council. Chair Sterker questioned whether it would be appropriate to request a quarterly financial report from the Department of Finance on the County's major expenditures. Council Chair Furfaro encouraged the Commission to move forward with its request to obtain the same quarterly financial report that the Council receives from the Finance Department. Commissioner Chaffin asked if it was right for Council Chair Furfaro to assume that once he leaves office this practice would not continue. Council Chair Furfaro stated that he has fourteen months left on his term and if he chooses to run for office one more time he could, but for now this is being done by him alone; there is nothing that requires him to do it Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 6 SUBJECT DISCUSSION ACTION when in actuality it should be done by the Department of Finance. Commissioner Chaffin questioned whether it would be appropriate to propose a draft bill or an ordinance to ensure that this practice continues. Council Chair Furfaro explained that Vice Chair Nakamura is currently working on a bill to establish protocol. Chair Sterker indicated that she does not understand the process in obtaining a quarterly /monthly financial report from the Department of Finance. Council Chair Furfaro suggested that the Commission put its request in writing. Vice Chair Kaneshiro asked for clarification on whether the issue falls under the scope of the Cost Control Commission. First Deputy County Attorney Esaki stated that the issue does allow the Commission to request for the information because it would also include personnel cost. Chair Sterker called for a motion. Commissioner Chaffin moved that the Cost Control Commission obtain a financial report on the County's expenditures from the Department of Finance on a quarterly basis. Vice Chair Kaneshiro seconded the motion. Motion carried 4:0 Council Chair Furfaro shared with the Commission that he will be introducing a new bill. The purpose of the bill is to require that certain fees are to be reviewed on a scheduled basis. He explained that the intent is to prevent the County from playing catch up at one time for fees that should have been looked at previously. He stated that he would like the fees to be reviewed in increments of three years such as dog licenses, car registration fees and licenses. He asked that the Commission provide some input at some point regarding his proposed bill. Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 7 SUBJECT DISCUSSION ACTION Chair Sterker stated that in the past, the Cost Control Commission has made recommendations to increase the playing fees at the Wailua Golf Course; minimum real property tax from $25 a year to $150 a year; and most recently the increase in service charge for bad checks from $7.50 to $30.00. She stated that the Commission has always been open as far as looking for ways that are fair to the people and the County. Council Chair Furfaro explained that he wanted to share his intentions because he didn't want the Commission to find out later that he was doing something without seeking input first. He then referred to a bill that was introduced by the Commission and reviewed by Council to increase the minimum real property tax; subsequently a new bill is now being proposed that would eliminate Hawaiian Homelands from paying any taxes. He strongly expressed his opposition of the bill because he felt that the minimum real property tax should remain. He questioned how could anyone justify not paying for ambulance, police and fire services when they are part of the community. Chair Sterker agreed. Council Chair Furfaro mentioned a proposal that he introduced to Council to give an additional $100,000 to the Kauai Humane Society. The proposal was approved and became part of the KHS budget of $650,000 for FY 2013/14. He explained that the County of Kauai is the only county mandated to provide services at the cost of the County. He indicated that once the budget is approved it is left up to the Director of Finance to negotiate the terms of the contract. He voiced his concern that this type of practice does not sit right with him because the right way to approach the issue is to find out what needs to be covered first and then allocate the funds accordingly; not the other way around. He commented, for that kind of money the County could probably do the job of collecting stray cats and dogs by creating a new department with a Charter amendment. Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 8 SUBJECT DISCUSSION ACTION Council Chair Furfaro also voiced his concerns that the County is charging a separate fee for each hunting dog that a hunter acquires. He noted that the County needs to be more understanding when dealing with this type of situation because a hunter's main goal is to provide food for his family. Another concern Council Chair Furfaro brought up was a lack of a concession, amenities, and ATM at the Wailua Golf Course. Council Chair Furfaro stated that the Charter does not provide the Council with the opportunity to spend and forecast money for the long term. He noted that the Council is only allowed to appropriate funds for the year and in the year. He remarked that he would like to see a strategic plan in place to make forecasting easier. He asked that the Commission get involved in cost saving measures by finding a new location for the Kauai Historical Society, in which he suggested the old Big Save building, so that the County Auditor's office can be relocated to the old County Historic Building. Council Chair Furfaro stated that in light of the fact the State has placed a cap on the County's TAT and that it has no resource to other funds to make up the difference brings into question how Council funds are administrated. Mr. Hunt stated that he wanted to clarify any issues regarding the Wailua Golf Course. He stated that the golf pro -shop concession was bid on and awarded, but he cannot confirm the name of the awardee on record. He explained that as part of that package, the driving range concession was milled together with the pro -shop to make it palatable for someone to come in and bid for it. He noted that on one side it would save a half time employee which is a cost to the County for running the driving range. Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 9 SUBJECT DISCUSSION ACTION He also noted that on the flip side the collected revenue is considerably down based on the bid although it was higher than the County's initial bid when the last pro -shop was there. Given that it was seventy thousand dollars a year revenue back then, the County is now looking at a potential loss in revenue from that total operation. Chair Sterker noted that without the pro -shop there would be no club rentals and no merchandise sales which include the sales tax paid on these items. Chair Sterker asked if there were other resources coming in. Mr. Hunt stated that the County would strictly rely on the lease rental and not the rental of clubs or sales from the merchandise. But to the extent that it may bring in more rounds of golf and carts being rented, which ultimately may lead to more green fees and lockers being used, which will generate more revenue. He noted that the combination of having the concession professionally run and the ability in taking credit cards, as opposed to cash, will hopefully increase the number of rounds to help off- set the loss in revenues from the concession itself. Mr. Hunt stated that he agrees with Council Chair Furfaro that the restaurant lease will not be confirmed until August or September. He stated that the restaurant is currently undergoing renovation including improvements to the driving range by installing new netting and range poles. Chair Sterker asked if the restaurant will have a liquor license. Mr. Hunt explained that decision would be up to the lessee because it is not the responsibility of the County to apply for the liquor license. Mr. Hunt explained that once the lease is confirmed the County will not have any control over the concession such as the time of operation, what type of Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 10 SUBJECT DISCUSSION ACTION food the restaurant can serve or type of merchandise it sells. He noted that it is an open bid process and whoever pays the County the highest rent are the ones who are going to win the concession. He added that there will be some criteria in terms of making sure that the person who is coming in has experience in the restaurant business. Council Chair Furfaro clarified that any requirements or requests that both the lessee and County have can be worked into the bid because it is part of the strategic plan to ensure success for both parties. Mr. Hunt stated that in terms of the quarterly financial reports his department is currently working on a draft format which is an executive summary and will be coming out quarterly. The report will incorporate not only the expenditures but three year comparisons that account for seasonality. He noted that some of the revenues and expenditures have some seasonality to it and they want to make sure that when they look at the analysis they are comparing it to prior years and what they have encumbered or encountered during these periods. Ms. Morikami asked for clarification on the timeframe from the completion date to when the report is distributed. Mr. Hunt explained that the first quarter is the most challenging because it is the time when they are also using the same accounting resources to prepare the CAFR (Comprehensive Annual Financial Report). Typically, periods one through six tend to come in bulk at a much later time. They are going to make a conservative effort, and fortunately the department has Budget Analysts Ken Shimonishi and Ann Wooten on their team, so they would not rely too much on the accountants. He noted that some leeway was given for the first and fourth quarters. Cost Control Commission Regular Meeting - Open Session July 22, 2013 Page 11 SUBJECT DISCUSSION ACTION Ms. Morikami stated that once the report is received by the Office of Boards and Commissions, Staff will place the report on the agenda. Mr. Hunt stated from a problematic standpoint and based on the timing of the report, he would like to present the report to Council first to make sure that they have the information before he presents the report to the Cost Control Commission. Announcements Next meeting: Monday, August 12, 2013, at 1:30 p.m. at the Mo'ikeha Buildin , Li uor Conference Room 3. Adjournment Chair Sterker called for the motion to adjourn the meeting Commissioner Apao moved to adjourn the meeting. Vice Chair Kaneshiro seconded the motion. Motion carried 4:0 Submitted by: Mercedes Youn, Staff Support Clerk () Approved as circulated (add date of meeting approval). O Approved as amended. See minutes of meeting. Reviewed and Approved by: Sandi Sterker, Chair Kauai Energy Sustainability Plan EPAC Recommendations 2012 Energy Plan Advisory Committee February 2013 The Energy Plan Advisory Committee, or EPAC, is a group of government and community members convened by the County Office of Economic Development who have guided the development of the Kauai Energy Sustainability Plan. (KESP 2010 -2030) The EPAC consists of participants from Kauai County, Kauai Island Utility Cooperative, representatives of several community organizations as well as individual community members. The purpose of the KESP is to ensure maximum energy efficiency and conservation while facilitating Kauai's production and use of local, sustainable energy resources in place of imported oil by the year 2030. The EPAC reconvened in 2012 for a series of meetings to assess progress, address changes, and assure the successful implementation of the KESP. The EPAC finds that there has been significant progress in several key areas identified since the plan was accepted: In the Transportation Sector, Kauai has: (1) Continued to expand the Kauai Bus and grow ridership. (2) Developed an Island Wide Multi -modal Land Transportation Plan. (3) Passed a 'Complete Streets' Resolution in 2010 and currently implementing accompanying zoning changes, design standards, and performance measures to assure success. (4) Installed a network of EV chargers Island wide to serve a growing fleet of electric vehicles. PLANNIM,rogAW5fA1NAFtE 1HANtiP0HTA(,QNSYSIFM �N KAUAI COONTY IHHOV(,H ?015 EPAC Recommendations February 2013 DRAFT DRAFT In the Electricity Sector, Kauai has: Installed and planned numerous large and small PV projects around the Island and, thanks to KILIC currently utilizes 25% of our electricity from PV and batteries during daylight hours. Projects already planned will increase this amount to 50% in the next several years. KILIC has successfully negotiated and financed the first large biomass to energy plant to start construction in 2013, which will supply approximately 10% of the Island's electricity from locally grown fuels when completed. KILIC has developed the Island's grid infrastructure including the installation of advanced metering that will allow better management of distributed resources and will also facilitate greater efficiency and conservation of electricity. The following is a set of recommendations made by the EPAC based on their recent deliberations. These recommendations are provided as a set of 'next steps' for consideration in the continued pursuit of Kauai's ambitious energy goals. List of recommendations: 1.1 Develop a KILIC On -Bill or County On- Property Tax (PACE) Financing Program 1.2 Develop an Energy Audit & Disclosure Policy 2.1 Advocate for Regulatory Reform Legislation for KILIC 2.2 Advocate for expanded Demand Side Management (DSM) programs & spending through KILIC 3.1 Maximize the use of and effectiveness of Solar Hot Water Heaters on Island 4.1 Fund efforts to Lead by Example within County Government by establishing advanced energy monitoring and analysis tools across County facilities. 4.2 Maintain practice of early adoption of industry best energy codes for Kauai 5.1 Adopt and aggressively implement the County's Multimodal Land Transportation Plan (MLTP) to reduce Vehicle Miles Traveled (VMT) by diversifying the transportation mode share. 5.2 Reduce Vehicle Miles Traveled by adopting and applying three principles for sustainable development: Compactness, Completeness and Connectedness. 5.3 Encourage the ownership and use of fuel efficient and alternative fuel vehicles. In keeping with the direction provided in the KESP, it is the intention of the EPAC to transition into the Sustainable Energy Team (SET) as described in Chapter 9 of the KESP. The SET will provide ongoing guidance and direction in amending the KESP as necessary, assessing progress, and facilitating outreach regarding the goals and objectives stated within the Plan EPAC Recommendations February 2013 R2,.ornni n�9atrc?ns for (he 11,- ctricity SeUor 1.1 Develop a KIUC On -Bill or County On Property Tax (PACE) Financing Program DRAFT Related goal: Increase energy efficiency in the electricity sector One of the major barriers to energy efficiency, particularly for residences and small businesses, has always been ready access to capital to finance such improvements. Often the biggest efficiency opportunities exist for users who have the most difficult time securing funding. The EPAC finds that there are several very promising programs available that are designed to address this issue: On -bill financing is a financing mechanism where members of KIUC would be able to borrow money for qualified energy efficiency projects at their location. On -bill financing could provide members with access to low- interest funding, possibly from the Rural Utility Service, via KIUC. Because debts are repaid through a member's utility bill, they are considered more secure than other forms of credit and less reliant on an individual's personal credit history. Additionally, establishing project criteria including payback time, specific standardized projects (solar hot water heaters) and contractor screening further increases the likelihood of successful loan repayment. PACE, or Protiertv Assesses Clean Energy Bonds, are a similar financing mechanism to On -Bill Financing that could allow property owners to borrow money through Kauai County and repay the debt through their property tax bills. Again, this provides access to low interest capital and offers a secure means of repayment. Specific next steps for this recommendation are: We recognize the value of a financing mechanism that affords access to capital for individuals who may not otherwise have available credit. With either mechanism, the debt associated with the qualified improvements stays with the property as opposed to transferring with the individual. Therefore, individual business or homeowners do not need to defer otherwise sensible efficiency improvements due concerns over relocating or selling a property/business. It is recognized that access to financing alone is not sufficient to motivate the implementation of energy efficiency projects. Therefore, the EPAC views this recommendation as an essential companion to recommendation 1.2 Develop an Energy Audit & Disclosure Policy. E IJA Recommendat.io;, -ebruary 2(1 3 Recommendation Lead entity timeline Additional comments 1.1 -a Lobby for consideration of On- KIUC 6 -9 KIUC is currently studying OBF & Bill Financing months will be reporting to their Board in 6 -9 months. PUC docket with HECO Companies re: OBF ongoing 1.1 -b Track development of PACE County ongoing Issues with FHA pending resolution financing options for residences 1.1 -c Determine the preferred KIUC and County <_ 2 years mechanism and implement a financing program. We recognize the value of a financing mechanism that affords access to capital for individuals who may not otherwise have available credit. With either mechanism, the debt associated with the qualified improvements stays with the property as opposed to transferring with the individual. Therefore, individual business or homeowners do not need to defer otherwise sensible efficiency improvements due concerns over relocating or selling a property/business. It is recognized that access to financing alone is not sufficient to motivate the implementation of energy efficiency projects. Therefore, the EPAC views this recommendation as an essential companion to recommendation 1.2 Develop an Energy Audit & Disclosure Policy. E IJA Recommendat.io;, -ebruary 2(1 3 Alt. paths Re_t-omrnenclations foi the Electricity Sector 1.2 Develon an Energy Audit & Disclosure Policy DRAFT Additional Related goal: Increase energy efficiency in the electricity sector Energy Audit and Disclosure Policies, sometimes also referred to as 'Benchmarking Policies' have surfaced as an effective policy measure to drive greater energy efficiency improvements in locations around the Country within the last several years. A simple energy audit and disclosure policy is a mechanism to provide relevant information on the energy performance of a particular property to a prospective buyer /lessor prior to a transaction. A primary intent of such a policy is to assist the market in including energy performance in the decision - making criteria for a real estate transaction. Another outcome is to drive up the number of audits being performed in a community with an expectation that it will also result in greater implementation of efficiency projects. Specific next steps for this recommendation are: As stated previously, the EPAC views this recommendation as a companion to recommendation 1.1. By shaping and evaluating these two measures together, it becomes more likely that they can be successfully administered on Kauai. Stand -alone finance mechanisms do not always create the necessary impetus to drive people to utilize the program. Similarly, stand -alone audits do not assure that resources will be available to implement projects. However, in tandem, such measures may be very useful, and greater participation may be achievable. FPAC. Reconirnendatiow, I ebruary e'1013 4 Recommendation Lead entity timeline Additional comments 1.2 -a Convene local stakeholders to give shape to County ASAP Recommend an Energy Audit and Disclosure Policy facilitation & analysis budget forFY'14 (amount TBD) 1.2 -b Consider program design issues & evaluate County 6 -12 months Include realtors, the appropriate level of government for contractors, KILIC, implementation others 1.2 -c Lobby for consideration of Energy Audit & County >_ 12 months Disclosure Policy at the State Level 1 1.2 -d Provide Funding for the development of an County >_ 12 months Energy Audit & Disclosure Program to be implemented on Kauai As stated previously, the EPAC views this recommendation as a companion to recommendation 1.1. By shaping and evaluating these two measures together, it becomes more likely that they can be successfully administered on Kauai. Stand -alone finance mechanisms do not always create the necessary impetus to drive people to utilize the program. Similarly, stand -alone audits do not assure that resources will be available to implement projects. However, in tandem, such measures may be very useful, and greater participation may be achievable. FPAC. Reconirnendatiow, I ebruary e'1013 4 Recommendations for'the I_Iec:tricity Sector 2.1 Advocate for Regulatory Reform Legislation for KIUC DRAFT Related goal: Increase energy efficiency in the electricity sector KIUC is a member owned rural cooperative utility. KIUC has an elected Board of Directors who are responsible for governance and long term direction of the coop. It is highly unusual for cooperatives to be regulated by State Utility Commissions. KIUC was placed under HPUC regulation per Chapter 269 of Hawaii Revised Statutes (HRS) as a transitional measure in going from an investor owned utility to a cooperative. However, given KIUC's small size, as well as the duplication of oversight (both Board and PUC) this puts unnecessary costs on COOP members as well as creating some structural challenges. Chapter 269 of HRS was enacted well before any electric cooperative were operating in Hawaii. Because of this, Chapter 269 does not allow any flexibility forthe Hawaii PUC to recognize the inherent differences between an electric cooperative and an Investor Owned Utility. State Agencies and KIUC are working to provide the PUC with statutory power to waive or exempt KIUC from any requirements. The objective is to streamline and ease the State regulatory process for electric cooperatives, thereby reducing the cost of regulatory oversight to electric cooperatives and their members, while supporting achievement of renewable energy initiatives. It is important to note that the State and KIUC are not currently pursuing de- regulation, and that the intention of this Regulatory Reform is to maintain regulatory oversight and consumer safeguards. Specific next steps for this recommendation are: it is important to note that the EPAC views this recommendation as a companion to recommendation 2.2 Advocate for expanded Demand Side Management (DSM) programs & spending through KIUC EPAC. Rei:onimendations February 2013 Recommendation Lead entity timeline Additional comments 2.1 -a Advocate for regulatory reform legislation for KIUC County & KIUC ASAP See it is important to note that the EPAC views this recommendation as a companion to recommendation 2.2 Advocate for expanded Demand Side Management (DSM) programs & spending through KIUC EPAC. Rei:onimendations February 2013 Rr.- commendations for the Electricity Sector `,; 2.2 Advocate for expanded Demand Side Management (DSM) programs & spending through KIUC Related goal: Increase energy efficiency in the electricity sector This recommendation is a natural extension of recommendation 2.1. Considerable opportunity exists to increase our overall energy efficiency on Kauai. Doing so can, in many cases, provide even greater benefits than those achieved by the generation of renewable energy on Island. Such benefits include greatly reduced emissions, cost savings to the island, as well as significant job creation. According to KEMA, KILIC's consultant for their recently updated Energy Efficiency Potential Study, there is much opportunity to increase our energy efficiency on Island by improving efficiency programs at KIUC. The results of their study indicate that increased DSM spending levels can continue to be cost effective for the membership as a whole. However, KIUC has not implemented the recommendations made in the study to date. KEMA's Potential Study recommends an increase in DSM spending in the period from 2011 to 2020 of approximately $23 million. This is assuming a Business as Usual (BALI) expenditure of 5.9 million for the period, and a recommended level of $29 million. The BALI level represents the cost incurred to simply carry forward with KILIC's current DSM programs at their current spending levels. The EPAC recommends that KIUC should immediately commence planning for the identified increase in DSM spending concurrent to pursuing a modified level of regulatory oversight. The EPAC recommends that KIUC should consider the spending level outlined in the KEMA report for Achievable Potential as the minimum level of spending for their DSM programs going forward. This step will position KIUC to proceed with an expanded DSM programs as quickly as possible upon successful regulatory reform as outlined in recommendation 2.1. It is important to note the economic impacts of increased energy efficiency on electricity rates. Greater energy efficiency means an overall decrease in dollars exported to pay for electricity generation at KIUC. This means that, on the whole, the Kauai Community benefits financially from increased efficiency through lower electricity bills. However, a lower volume of electricity sales may precipitate the need for increased rates per unit of electricity sold to allow KIUC to fully recover the fixed costs associated with running the utility. Cooperative members who do not participate in DSM programs and /or do not operate efficiently could therefore end up paying more for their electricity. Therefore, program design to assure effective outreach, particularly to low income families, will be a key aspect of the overall success of this recommendation. Specific next steps for this recommendation are: EPAC Recommendation, I-ebriiary 20 6 recommendation Lead timeline Additional comments entity 2.2 -a Plan for increased DSM spending in parallel to KIUC ASAP Follow budget for 'achievable regulatory reform effort case' in KEMA DSM Potential Study 2.2 -b Implement increased DSM program KIUC 6 -12 Work with PUC to assure fixed months cost recovery is addressed 2.2 -c Collaborate with KIUC to develop Energy Audit & County >_ 12 See recommendation 1.2 Disclosure Program in conjunction with KILIC's months increased DSM program EPAC Recommendation, I-ebriiary 20 6 Reconiniondatiens for th e.,FiecLri�ity Sector 3.1 Maximize the use of and effectiveness of Solar Hot Water Heaters on Island Related goal: Increase energy efficiency in the electricity sector DRAFT If 5,000 electric water heaters on Kauai were converted to solar water heating, 10 GWh of fossil fuel energy would be replaced annually, accounting for as much as 2.5% of Kauai's annual electricity consumption.* Residential solar water heaters have long been recognized as a "low hanging fruit" in terms of reducing fossil fuel use and increasing the energy efficiency of a single - family home. Properly designed and sited, a solar water heater can provide 90% of the energy required for heating water for a single family unit and reduce the electricity consumption of a single family household by 30 %. The well - established technology is reliable, and the pay -back period for the consumer is 3 -5 years, after which the energy cost for heating water is almost zero. Despite years of effort and attention from policy makers, utility funded programs, and advocacy efforts, the EPAC finds that focus on converting more homes to solar hot water merits increased resources going forward. Act 204, a State law implemented in 2004, mandates solar hot water on all new construction. However, the law makes exceptions for some situations including the use of instantaneous gas water heaters. Further, Act 204 only addresses new construction, and does not impact the existing housing stock. Finally, current building codes do not regulate the design or performance of solar hot water heaters, therefore some of the installed systems are ineffective due to poor design. Specific next steps for this recommendation are: EPAC Recornrr naat,nns ebi , iary 201 ' recommendation Lead timeline Additional comments entity 3.1 -a Collect data on existing housing inventory & set goals County & 6 -12 for implementation of solar hot water heaters KIUC months 3.1 -b Develop and implement an expanded educational TBD 6 months KIUC & County to program on the "how -to" and benefits of solar water collaborate heating with a goal of replacing all electric resistance water heaters on Island with solar within 5 years. 3.1 -c Integrate the installation of Solar Hot Water Heaters KIUC/ z 12 See recommendation 1.1 as a key measure within recommendation 1_1 County months Establish KIUC On -Bill or County On Property Tax (PACE) Financing Program 3.1 -d Adopt design standards for Solar Hot Water systems County 6 months within the Building Code. 3.1 -e Remove or severely limit availability of on- demand County ASAP gas variance currently allowed within Act 204 3.1 -f Develop Community 'Solarize' programs that County 6 -12 Currently developing pilot facilitate the aggregate installation of solar hot water months in Kekaha on heaters across Island neighborhoods. collaboration with KHCBP EPAC Recornrr naat,nns ebi , iary 201 ' Recommendations for the lectricity Sector DRAFT 4.1 Fund efforts to Lead by Example within County Government by establishing advanced eneriry monitoring and analysis tools across County facilities. Related goal: Increase energy efficiency in the electricity sector The tools available to monitor and analyze energy use are evolving very rapidly within the industry. At the whole building level, smart meters offer higher resolution data that will allow the County to look at energy usage on a nearly instantaneous basis across their facilities. Systems to collect even more detailed data at the circuit level are becoming more affordable and are anticipated in new construction projects going forward. Developing a system to manage and disseminate this information as needed among County staff is key to facilitating better energy management. On the fuel usage side, plans are underway to replace the current fuel management system with a tool capable of collecting more and better data, again opening the door to further analysis and possible fleet efficiencies. Where in the old paradigm electricity was simply a commodity passed one way from producer to consumer, the future will almost certainly involve more interaction between consumers and a growing number of production points on an intelligent grid. Because the industry is evolving so rapidly, this recommendation is to focus initially on pilot usage of low - cost tools and systems that will allow the County to explore and develop new capabilities as they evolve. Key is for County Government to remain abreast of these technologies and to leverage them as appropriate. Doing so will place the County in a position to make better decisions on larger system investments as the technology matures. 4.2 Maintain practice of early adoption of industry best energy codes for Kauai Related goal: Increase energy efficiency in the electricity sector Kauai County has been a leader in the State with regards to the adoption of advanced building codes. Kauai County was the first in the State to adopt the 20091ECC and continues to lead in this area. This recommendation is intended to emphasize the importance of supporting the continuation of such practices. By continuing to provide the Building Divisions with training and enforcement resources, Kauai County can ensure that new building stock across the Island continues to increase in efficiency. Further, Kauai County should support the continued efforts of the State Building Code Council in their efforts to review and adopt such codes State -wide. EPAC Recornmenciadons February 20.13 8 �ati�ns for the fr�nsuor Laii;n Se_to� Recomnwn DRAFT 5.1 Adopt and aggressively implement the County's Multimodal Land Transportation Plan (MLTP) to reduce Vehicle Miles Traveled (VMT) by diversifvina the transportation mode share RELATED GOAL: Reduce consumption of fossil fuels by ground transportation. Gasoline and diesel consumption for land transportation accounts for approximately 30% of the island's annual fossil fuel usage. While motor fuel consumed is expected to drop due to rising oil prices, other factors such as increasing population, suburban land use patterns, and continued Single Occupancy Vehicle (SOV) consumption will press the numbers upward. A future of reduced fossil fuel consumption will be achieved by changing the way in which people move around the island. It will not be necessary to sacrifice trips or travel: instead a change in how people travel is the goal —i.e., a diversification of travel mode. Instead of travel by single occupancy vehicles, more trips will be made by bus, cars with more than one person per car (multiple occupancy vehicles also known as MOVs, bicycle and foot. Specific next steps for this recommendation are: Indicators (Note: 2012 baseline and 2035 targets are shown) Increase transit mode share over the next 25 years from .4% of daily trips to 4% Increase bicycle mode share of all resident and visitor trips from 2% to 8% over the next 25 years. Increase pedestrian mode share from 5% to 12% of all person trips over the next 25 years. EIIACft zr_ornmeridatioirsfabtuary .��� Recommendation Lead Agency Timeline 5.1 -a Establish a long term, adequate and stable source Transportation > 12 months of funding for the Kauai Bus, which is essential for Agency expansion of services. 5.1 -b Install bus shelters at primary bus stops around the Transportation > 24 months island. Agency 5.1 -c Develop new geographically distributed base yards Transportation > 24 months to reduce travel time back to base and provide Agency space for new buses. 5.1 -d Expand public bus service (routes and times) to Transportation > 36 months ( ?) make it more convenient and usable for the public. Agency 5.1 -e Review and reconfigure as needed the schedules Transportation > 12 months and routes of bus feeder ( ?) shuttles. Agency 5.1 -f Prepare a countywide bike plan that addresses the Public Works > 24 months needs and interrelationships of routes, lanes, connectivity and intermodal connectivity, parking and safety.. and establishes standards for design and construction. 5.1 -g Complete the Living Streets Manual to ensure that Public Works > 12 months existing road redesigns and new roads follow "Complete Streets" principles. Indicators (Note: 2012 baseline and 2035 targets are shown) Increase transit mode share over the next 25 years from .4% of daily trips to 4% Increase bicycle mode share of all resident and visitor trips from 2% to 8% over the next 25 years. Increase pedestrian mode share from 5% to 12% of all person trips over the next 25 years. EIIACft zr_ornmeridatioirsfabtuary .��� Re orrirnendations for the i ranspo rtation Sector DRAFT 5.2: Reduce Vehicle Miles Traveled by adopting and applyinit three principles for sustainable development: Compactness. Completeness and Connectedness. RELATED GOAL: Reduce consumption of fossil fuels by ground transportation. In order to reduce energy demand in the transportation sector, it is essential to recognize that land use and transportation are inextricably linked. Day -to -day transportation needs are primarily impacted by the location and proximity of jobs, schools, goods and services. The number of vehicle miles traveled can be minimized by land use decisions that create compact communities with a range of housing, jobs, schools, retails stores, banks and other services and where streets within that community are interconnected to minimize distance traveled. Specific next steps for this recommendation are: F ! ''AC Recommendations Fel'iruary 2013 10 Recommendation Lead Agency Timeline 5.2 -a Ensure that the principles of Compactness, Planning > 24 months Completeness and Connectedness are reflected Department in the upcoming General Plan Update and incorporated into the policies, planning and implementing actions of all departments. 5.2 -b Working with state transportation and land use Public Works, > 36 months agencies, develop a comprehensive, collaborative Transportation approach to transportation planning and design Agency that addresses the root cause of transportation problems and seeks solutions that examines the economic (cost effectiveness) and environmental costs of all alternatives, including non - highway and non - transportation solutions. F ! ''AC Recommendations Fel'iruary 2013 10 RlE'l`Q!Yll'll( ?IIC,IYIQlI:i for [a)c` TI "d11�p(il'tatlUll j..`.Ctt?i' 5.3 Encourage the ownership and use of fuel efficient and alternative fuel vehicles. DRAFT RELATED GOAL: Reduce consumption of fossil fuels by ground transportation. Automobiles are here to stay. However, numerous industry advancements have opened up market choices that were not available a decade ago, and those advancements can be expected to continue in the future. While Kauai County is too small a market to influence industry decisions, the County can implement strategic measures to accelerate the adoption of vehicles on island that are efficient and /or operate on alternative and locally renewable fuels. Specific next steps for this recommendation are: EPAC ReLoi?onwridations fehruary M131 11 Recommendation Lead Agency Timeline 5.3 -a The County shall lead by example and Public Works, > 6 months establish procurement criteria and Purchasing procedures that require long -term fuel Department economy standards for the County's light vehicle fleet. 5.3 -b As current vehicles are ready for Purchasing > 12 months, replacement, the County shall begin to Department ongoing transition its vehicle fleet by purchasing vehicles that meet the new fuel economy standards. 5.3 -c The County shall work with other counties to Public Works > 24 months secure a reliable alternative renewable fuel for each county's fleet and develop a transition plan to this non - fossil fuel. 5.3 -d The County shall work with stakeholders to Energy Coordinator > 24 months form an electric vehicle (EV) Adoption Committee to address the physical, educational and economic barriers to broader acceptance and use of electrical vehicles. Among the issues to be considered are: a. Development of an EV charging rate through KIUC to allow off -peak charging of electric vehicles. b. Establishment of fast charging stations at key locations island wide to relieve potential range anxiety for EV users and potential users. EPAC ReLoi?onwridations fehruary M131 11 Auditional Information Kauai Energy Sustainability Plan DRAFT http://www.kauainetwork-org/enerjzv-sustainability / 1.1. Establish KIUC On -Bill or County On Propertv Tax (PACE) Financine Proeram http: /Ipacenow.org/ http: / /aceee.oriz/ sector /state - policy /toolkit /pace http: / /aceee.org /research- report/e118 http : / /www.ect. coop /industry/ business - finance /on- bill - financing- helps -coop- members - save /50461 1.2. Develop an Energy Audit & Disclosure Policy http:// www.buildingrating.org/Building Energy Transparency Implementation Report http: / /aceee.org/sector /local - policy /case -stud ies /austin- energy -con http: / /www.imt.org /performance - policy 2.1 Advocate for Regulatory Reform Legislation for KIUC http:/ /www.capitol.hawaii.gov/measure indiv .aspx ?billtype= HB &billnumber =815 http: / /website.kiuc.coop/ 2.2 Advocate for expanded Demand Side Management (DSM) programs & spending through KIUC Kauai Island Utility Cooperative DSM Market Potential Assessment http: / /www.hawaiiener,gy.com/ 3.1 Maximize the use of and effectiveness of Solar Hot Water Heaters on Island www.aceee.org /files /proceedings/ 2012 /data /papers /0193- 000021.pdf http: / /energy.hawaii.gov /resources /plan nine- policy /solar- water - heater - variance 4.1 Fund efforts to Lead by Example within County Government by establishing advanced energy monitoring and analysis tools across County facilities. http: / /eis.lbi -go y/ http: / /facilitvdude.com/ solutions /energy /utility -trac -plus/ 4.2 Maintain practice of early adoption of industry best energy codes for Kauai http:/Iwww.energvcodes.gov/adoption/states/hawaii 5.1 Adopt and aggressively implement the County's Multimodal Land Transportation Plan (MLTP) to reduce Vehicle Miles Traveled (VMT) by diversifying the transportation mode share. http: / /movekauai.net/ www.vtpi.org/multimodal planning.pdf 5.2: Reduce Vehicle Miles Traveled by adopting and applying three principles for sustainable development: Compactness, Completeness and Connectedness. http: / /www.s martgrowtha merica.orp/com plete- streets /com p lete- streets -fu nda menta Is /com plete- streets -faa 5.3 Encourage the ownership and use of fuel efficient and alternative fuel vehicles. http: / /www.fueleconomy.gov/ http: / /aceee.orit/research -repo rt/e127 EPAC Recommendations February 2013 12 Mahalo! The Kauai County Office of Economic Development wished to express our sincere thanks to all those who continue to contribute to improving Kauai's energy future. We are grateful for the opportunity to continue working with the Kauai Community in developing and implementing the Kauai Energy Sustainability Plan. We are especially grateful to the members of the Energy Plan Advisory Committee who have continued to volunteer in shaping this set of recommendations: Walt Barnes George Costa Jay Furfaro Gary Hooser Celia Mahikoa Ed Nakaya Brad Rockwell Glenn Sato Susan Tai Kaneko JoAnn Yukimura Diane Zachary i -i'nC . acornmendations F- Pbrljary 2013 13 KAUAI POLICE DEPARTMENT ADMINISTRATIVE NOTICE DATE OF ISSUE 07 -29 -13 Overtime Directive EFFECTIVE DATE Immediately RESCINDS: Fiscal responsibility and accountability .has always been paramount in carrying out the organizational mission of the Kauai Police Department. Our continued effort toward that end becomes even more critical when taking i.�to .consideration. the FY 2014. - reduction of overtime budget by 1.2 million. Therefore, in.keeping with fiscal mandates, the following directives for the expenditure of overtime funds shall be $ollo`wed: 1. No overtime is permittedtvvithout PRIOR approval by an employee's immediate supervisor or someoneof higher rank. 2. Anyone approying`overtime will be held accbuntable for the expenditure and shall be prepared to ju%ify a expenditure. v' 3. All personnel shall:�ensure that their norm is conducted.-in an efficient manner to minimize the need for repowwriting, investigation or other activities on overtime. 4. PRIOR to the gppproval of overtime for report writing, supervisors shall check the employee's workflow and be prepared to justify their appr,�val..gf the overtime. Supervisors need to V6 aware f the employee's work,,activities throughbut the day. 5. All special events shall be tracked for the purppses of analysis and the special event name shall be placed at the.top right corner ofthe`overtime card. The minimum amount of personnel shall be uted to safely conduct special events. 6. No vehicle maintenance or cleaning shall be done on an overtime basis. Vehicle maintenance and cleaning will be done while on duty. NO. 2013 -04 7. Same day travel shall be scheduled during an employee's work time, unless approved by the Chief of Police or his/her designee. In the event that overtime is approved, employees attending meetings shall provide a copy of their meeting agenda to include a start and end time along with their overtime card. KPD FORM 201 Any major event (Tsunami, Criminal Investigation, Protest, etc.), will be tracked for purposes of analysis and the major event name shall be placed at the top right corner of the overtime card. 9. On every Holiday, if there is additional staffing, the additional personnel shall be given the holiday off. Unless exigent circumstances exist, no one on an administrative schedule shall work on a holiday. Supervisors approving the overtime shall be prepared to justify the exigent circumstance. 10. Requests for police personnel for community events that would incur overtime requires analysis by the supervisor or commander receiving the request. A recommendation shall be sent to the Chief's office for final approval. Generally, if the request is not on the Mayor's approved list of is not an event sponsored by KPD in the past, the request will be denied; however .review is required prior to the denial of the request. _ 11. All supervisory personnel shall assess the need for overtime expenditures and ensure that it is being expended in a fiscally responsible manner that is in line with the goals of the Kauai Pgiice Department. 12. Supervisors shall review all meal claims to ,ensure that meals are appropriately being claimed. When a meal claim is not compenxsable, supervisors shalPoeny the meal claim and explain to the employee why the claim is not compensable. Employees shall be familiar with the articles in their collective bargaining unit covering meals and shall claim for meals only as prescribed by contract. 13. Whenever practical, supervisor shall adjust schedules to meet staffing requirements to avoid overtime expenditures. 14. All personnel shall adhere toand.,be familiar with General Order 2010 -14 Working Beyond Normal Working Hours. DEPARTMENTAL PERSONNEL SHALL STRICTLY ADHERE TO THIS DIRECTIVE KPD FORM 201