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Department of Finance
2016 Budget Presentation
April 10, 2015
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director --
Growing Kaua'i responsibly.
DEPARTMENT OF FINANCE
I. Mission
To provide effective financial services to the people of Kaua'i and to all that we serve by
establishing and maintaining a financial system that can properly account for its activities.
The Department of Finance Budget Presentation for FY 16 addresses a number of initiatives,
successes and achievements that are attributable to our department. The Department of Finance
is comprised of nine separate divisions; Administration, Accounting, Information Technology,
Treasury, Driver's License, Motor Vehicle, Real Property Assessment, Real Property
Collections, and Purchasing. These divisions contii:iue to perform despite limited resources and
financial constraints. Division reports highlight the various initiatives, challenges, successes and
goals for the future.
II. Successes and Achievements
1. Creation of the Grants Manager position has centralized the administration of all county
grants and allowed for assistance to the departments with reviewing grant opportunities
that might be available. Training has been made available by the Manager to assure
proper procedures are followed.
2. Establishing a County Vehicle Motor Pool has assisted with utilizing county vehicles that
are not used on a daily basis. This has only been in existence for a few months, but there
has not been any purchases of none limited service use vehicles .
3. Real Property Assessment and Collection is in the process of rolling out their new web-
based program. This allows for better stability , greater functionality , and more detailed
analytics. Will also provide webpage information for the public to use.
III. Goals & Objectives
1. Execute long term financial plan budget process with Government Finance Officers
Association (GFOA). This will provide the county with a multi-year outlook on
resources, challenges, and recommendations.
2. Continue to seek ways to improve succession planning and training of employees in
divisions, especially where near future retirements are evident and specialized skills
required.
3. To create a program and process which provides executive overview of staffing and labor
information in order to better manage staffing resources, which currently accounts for
65.2% of the county's total operating budget, and 82.6% of the General fund's operating
budget.
2016 Budget Presentation Department of Finance Page 2
4. Launch and implement web based financial reporting of county's budget, expenditure,
and revenue reports, thereby improving accessibility and transparency to all levels of the
county and public.
5. Launch and implement web based grants management software to streamline grant
research, planning, activity management, performance and reporting processes.
IV. Budget Overview -Finance Administration
The large reduction in salary, wages, and benefits is due to the reorganization of the budget,
grant, and insurance coordinating functions. The positions of Budget & Purchasing Director and
one Budget Analyst have been moved under the division of Purchasing. The other Budget
Analyst (now Grants Manager) moved under the division of Accounting, and the Risk
Management Insurance Coordinator position was not replaced and the position reallocated to
Real Property Assessment as a Real Property Appraiser. The coordinating position was
originally established with the principal function to provide a single point of access to obtain
information from the County Departments for the insurance program renewals as well as the
required data to compile various reports on behalf of the County. The risk management
insurance coordinatiQ.g functions are coordinated through the Deputy Director of Finance with
the assistance of Human Resources for workmen's comp, Purchasing regarding contracts for
services, and · County Attorneys regarding litigations. Over 180 employees are expected to attend
training sessions on insurance requirements for contracts being offered through the purchasing
department in May.
Department : BNANCE. Djyjsjon: ADMINISTRATION
Operating budget decrease due to reductions in the general liability allowance of $50,000, sewer
credit of $25,000, special projects reduction related to Kaua'i Humane Society dog and cat
license reduction as compared to prior year ·of$82,000.
2016 Budget Presentation Department of Finance Page 3
FY 2015 Operating Budget FY 2016 Operating Budget
0%
8 Salary and Wages
•Utilities
•Vehicle/Equip,
Lease
•Operations
FY 2015 and FY 2016 Comparison
8 Salary and Wages
•Benefits
•Utilities
•Vehicle/Equip,
Lease
• Operations
5,000,000 -.----------------------------.
4,500,000 -+---..:.,_..------------------------1
4,000,000 -----------------------
3,500,000 -----------------------
3,000,000 +-----------------------
2,500,000 -----------------------
2,000,000 -----------------------
1,500,000 +-----------------------
1,000,000 -----------------------
500,000
0
Salary and Wages
2016 Budget Presentation
Benefits Utilities Vehicle/Equip,
Lease
Department of Finance
Operations
8 FY 2015
FY 2016
Page4
2016 Budget Presentation Department of Finance Page 5
Budget Overview – Finan ce Department Totals
Overall the Finance department’s budget is $200,456 or 1.8% less the prior ye ar, as indicated by
the tables and charts below.
Department: FINANCE
FY 2015FY 2016$ + / -% + / -
Administration5,458,9674,842,316-616,651-11.3%
Accounting-1,728,134-1,623,294104,840-6.1%
Information Technology2,643,6042,715,38671,7822.7%
Treasury258,861266,4687,6072.9%
Drivers Licensing604,740613,7098,9691.5%
Motor Vehicle816,722790,712-26,010-3.2%
Real Property Assessment1,966,5011,920,980-45,521-2.3%
Real Property Collections460,237440,709-19,528-4.2%
Purchasing813,674 1,127,730 314,056 38.6%
11,295,17211,094,716-200,456-1.8%
* FY 2015 Benefits include restoring OPEB budget
Department: FINANCE
FY 2015FY 2016$ + / -% + / -
Salary and Wages4,598,9524,565,303-33,649-0.7%
*Benefits 2,454,4952,466,61012,1150.5%
Utilities 211,121208,120-3,001-1.4%
Vehicle/Equip, Lease 26,89320,645-6,248-23.2%
Operations 4,003,711 3,834,038 -169,673 -4.2%
11,295,17211,094,716-200,456-1.8%
* FY 2015 Benefits include restoring OPEB budget
41%
22%
2%
0%
35%
FY 2015 Operating Budget
Salary and Wages
Benefits
Utilities
Vehicle/Equip,
Lease
Operations
41%
22%
2%
0%
35%
FY 2016 Operating Budget
Salary and Wages
Benefits
Utilities
Vehicle/Equip,
Lease
Operations
FY 2015 and FY 2016 Comparison
5,000,000 ......---------------------------.
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Salary and Wages Benefits
Risk Management
Coverage Policy Deductibles
Limits
Prope rty $25M $IOOK
Excess $20M $500K/$750K
Liabili ty
Crime $5M $25K
Cyb er $IM $50K
Liabili ty
Excess $25M/$2M $500K/$500K
WC /E L
Aircraft Hull $25M/$2.2M 2%/$1K
and Liabili ty
Liability: See Below See Below
Subsidized
Police
Vehicles*
TOTALS
*Subsidized Police Vehicles : 11 vehicles
Bodily Injury (each person, each accident)
Property Damage (each accident)
Additional Personal Injury Protection
Uninsured Motorist-Unstacked
Underinsured Motorist-Unstacked
Wage Loss Benefit
Funeral Expenses
Physical Damage Coverage
Non-Owned, Hired, Other Driver
2016 Budget Presentation
Utilities
FY14
Premiums
$387 ,316
$575,983
$13,784
$21,032
$154,934
$37,925
Vehicle/Equip,
Lease
FY15 Change
Budget $
$355,912 ($31 ,404 )
$553,723 ($22,260)
$13,597 ($187 )
$21,280 $248
$167,565 $12,631
$35,170 ($2,755)
Operations
Change
O/o
-8%
-4%
-1%
1%
8%
-7%
$9,988 $26,790 $16,802.00 168%
11
vehicles
$1 ,200,962
30
vehicles
$1,174,037 ($26,925)
$100,000
$300,000
$IOO,OOO
$100,000 /$300,000
$100,000 /$300,000
$1,000 /$6,000
$2,000
Not Covered
Not Covered
Department of Finance
•FY 2015
•FY 2016
Forecast
Flat
5%
Flat
Flat
7%
Flat
10%
FY16
Budget
$355,912
$581,409
$13,597
$21,280
$179,295
$35,170
$29,469
30
vehicles
$1,216,132
Page 6
Property:
The property marketplace is extremely competitive with property carriers competing for business
on selected accounts. There has been a significant influx of new capital into the marketplace
allowing insurance buyers to obtain superior pricing through increased competition amongst the
underwriters. It was thought during the last year renewal cycle the pricing levels had reached the
lowest level since pre-1992 levels. It now appears through the first quarter of 2015 the trend for
lower property premiums will continue through the remainder of the year.
Crime, Cyber Liability & Aircraft Hull and Liability:
These lines of coverage for the County remain very competitively priced and the outlook for the
late 2015 renewal is stable without any premium increases expected for the County.
Excess Liability & Excess Workers Compensation:
Our experience in the marketplace leads us to believe the County will continue to see modest rate
increases during the next renewal cycle for these two lines of coverage
This is due to several factors:
• The marketplace has become very restricted with several major carriers either leaving the
Excess Workers Compensation marketplace entirely.
• A number of carriers are not willing to provide coverage for the high hazard
classifications (Police & Fire) this limited competition on the primary layer makes it
difficult to foster a spirit of competition when marketing the placement.
• The County has experienced increased self-insured retentions due to the limited
marketplace.
2016 Budget Presentation Department of Finance Page 7
COUNTY OF KAUA'I
Department of Finance
Accounting Division
2016 Budget Presentation
2016 Budget Presentation
April 10, 2015
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director ------
Grow in g Ka u a'i respo ns lbly .
Department of Finance Page8
I. Mission
Department of Finance
Accounting Division
To provide oversight and maintain the accuracy and integrity of the County's financial
system.
II. Success and Achievements
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the County of Kaua'i for its
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2013.
The County has received this award for the 21st consecutive year. This award signifies that
the County's 2013 CAFR has achieved the highest standards in financial reporting in
accordance with Generally Accepted Accounting Principles (GAAP) and applicable legal
requirements. We remain hopeful the current CAFR will meet the Certificate of
Achievement Program's requirements.
III. Challenges
Position 253, Accountant III, will have 30 years of service in July 2015. The incumbent is
tasked with Fixed Assets, cash receipts, account reconciliations, and serves as the pCard
Administrator for the County's pCard Program.
Efforts to successfully maintain cross-training continue to be challenging due to
unanticipated leaves of absences. 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. Due to consistent year-after-year staffing issues, the
goal of cross-training and creating standardized procedures continue to be challenging.
The increase in leased equipment, greater pCard usage, expansion of fixed assets, and general
reliance on Central Accounting as a county-wide resource for accounting issues has pushed
staff to, and sometimes past their capacity to meet deadlines. Compliance with annual
changes in GASB requirements add to daily challenges.
IV. Goals and Objectives
The Accounting Division's primary objectives are to: 1) 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.
2016 Budget Presentation Department of Finance Page9
V. Budget Overview
Position 206, County Grants Program Manager is now budgeted under the Accounting
Division. In the past, this position was previously budgeted under Finance Administration.
The organizational change is to ensure a more reliable chain of command and ensure the
continuity of vital services when the incumbent is unavailable.
VI. Budget Variances
Overall budget for the Accounting Division increased primarily due to movement of
salary and respective fringe benefits for the above mentioned position.
FY 2015 FY 2016 $ +/-%+/-
Salary and Wages 515,463 592,266 76,803 14.9%
*Benefits 273,895 314,929 41,034 15.0%
Utilities 0 0 0 0 .0%
Vehicle/Equipment , Lease 1 1 0 0 .0%
Operations -2 1 517A93 -2 1 530A90 -121997 0.5%
-1,728,134 -1,623,294 104,840 -6.1%
*FY 2015 Benefits include restoring OPEB budget
Comparative Charts
FY 2015 Operating Budget FY 2016 Operating Budget
•Salary and Wages
•Veh i cle/Equ i p ,
Lease
•Ope r at i on s
2016 Budget Presentation Department of Finance
•Salary and Wages
•Benefits
•Utilities
1
0 %
•Vehicle/Equ i p ,
0 % Lease
•Opera t ions
Page 10
Comparative Charts (Con't).
FY 2015 and FY 2016 Comparison
Salary and Wages Benefits Utilities Vehicle/Equip,
Lease
Operations
•FY 2015
8 FY 2016
The large negative budget figure shown in operations is a result of having the Accounting
Division act as the clearing house for county wide central services -that are paid by the general
fund and subsequently charged back to certain funds such as, Highway, Liquor, Solid Waste,
Sewer, Golf, and Housing funds, in accordance with the County's Cost Allocation Plan.
2016 Budget Presentation Department of Finance Page 11
COUNTY OF KAUAI
Department of Finance
Information Technology Division
2016 Budget Presentation
2016 Budget Presentation
April 10, 2015
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director
• -
Growing Kaua'i responsibly.
Department of Finance Page 12
Information Technology Division
I. Mission
To provide the Mayor's Office, County Agencies, and the County Council with information
technology solutions which enable them to serve the public in a cost-effective and efficient
manner by fulfilling 5 key functions.
1. Deliver quality customer service and expert technical services that empower County
employees through the availability of accessible and useful information, as well as the use
of automated systems that improve their productivity.
2. Provide County employees with easily accessible technical support and timely responses via
a centralized Help Desk service.
3. Maintain and enhance the County's technical infrastructure to ensure reliable, efficient, and
secure operations.
4. Assist County agencies with the procurement and implementation of new systems that will
increase operational efficiencies, as well as enhance the services available to our citizens.
5. Recommend solutions and strategies that will leverage the power of technology to address
countywide needs.
II. Vision
The Information Technology Division (IT) is a centralized service organization whose customers
include all County departments and agencies, as well as members of the public that utilize
technology when interacting with the County. We continually strive to deliver quality customer
service in all functions of our Mission, but realize that current staffing and fiscal constraints are
such that there will always be more work than we can handle within the existing environment. In
order to address these operational challenges and achieve the best results possible, IT has
adopted the following key tenants as part of our overall vision for the County.
1. Sustainable Budgeting Through Innovation -The IT Division's operational expenses have
already been reduced to minimum levels based upon our existing environment. Going
forward, IT will pursue new, innovative strategies that can alter the County's technology
portfolio such that overall operational costs are maintained at current levels or reduced
without sacrificing productivity or security. In some cases, this may require upfront
investment to achieve future savings, both within IT, and across the County as a whole.
Associated cost savings will be used to reinvest in IT where appropriate in order to continue
progress.
2016 Budget Presentation Department of Finance Page 13
2. Improved Efficiencies Through Policy/Process Re-engineering -There are many existing
policies and processes within the County that can be modified to improve the efficiency of
IT operations. IT will review these areas to pursue appropriate changes that eliminate
unnecessary overhead from IT, and/or optimize the roles that are assigned to IT staff. In all
cases, we will seek solutions that benefit everyone, and ensure that IT continues to deliver
the best service possible. Some of the changes identified may require that employees
outside IT assume more ownership of their assigned areas so that IT can focus on its core
responsibilities. IT will partner as necessary with affected agencies to manage any
associated transitions.
3. Countywide Prioritization Through Strategic Planning & Accountability -IT is constantly
processing requests for new equipment, application solutions, infrastructure , technical
support/consulting services, and large-scale automation projects. These requests come from
all departments and agencies based upon their specific needs, but are rarely aligned or
prioritized from a countywide perspective. Balancing IT support for these needs along with
efforts to maintain and improve core /shared technology services is an ongoing challenge
that requires a more strategic , unified approach. IT will address this need by developing a
Strategic Planning Methodology and Road Map that consolidates future requirements from
all County departments /agencies into a single plan with centralized governance. This will be
used to establish clear IT priorities that give resource, scheduling, and funding preference to
projects that deliver maximum return on investment. Additionally, the new methodology
will be designed to increase business owner accountability in terms of justifying their IT
requests and providing leadership /management for their approved projects.
Executing on the above will allow the IT Division to maximize operational results and focus
more of our efforts on longer term, strategic initiatives that will advance County IT. In addition
to completing key operational projects as detailed throughout this report, our vision for IT over
the next 3-5 years includes achievement of the following major milestones.
1. Additional No /Low Cost IT Capacity -Create additional capacity for County IT services
through the implementation of volunteer and/or intern programs that involve technically
skilled members of our community who are willing to participate in selected projects.
2. Alternative IT Funding/Revenue -Secure alternative funding sources to support the
advancement of County IT operations including grants, donations, business partner
agreements, and/or legislation. Additionally, research opportunities to create new revenue
streams by leveraging County technology and information to provide valued-added services
for our citizens , local businesses, and visitors.
3. Paperless Operations -Implement technology-based solutions that eliminate the need for
paper documents and wet signatures when conducting County business on a going forward
basis. Additionally, establish policies /procedures that allow for the timely destruction of all
historical paper documentation that has been scanned and stored electronically.
2016 Budget Presentation Department of Finance Page 14
4. IT Capital Investment Planning -Develop a 5-year plan for capital investments that are
required for core IT infrastructure and services in the future. As part of this, create new
processes to ensure that associated documentation is maintained on an annual basis.
III. Fiscal Year 2014-2015 Successes and Achievements
I. Bringing County Services Closer to Home -Analyzed results from the Citizen Technology
Survey that was developed in conjunction with the Mayor's Holo Holo 2020 initiative for
Bringing County Services Closer to Home. Created and published a report of survey results
identifying several key projects based upon the input provided by our community.
Developed corresponding project definitions and gained consensus to proceed as indicated
by the survey results. Initiated work efforts on all of these projects (described below), and
set targeted completion dates for FY16.
i. On-line Services Awareness: Improve public awareness regarding what types of on-line
services are available to them, and encourage use of those services by improving ease of
access, visibility, communications, etc.
ii. County Website Overhaul: Redesign Kauai.gov to make it more visual and easier to
navigate with a concise, uncluttered menu system. Ensure that the updated user interface
provides a simple process for all website users to access the information and services that
they are interested in.
iii. County Directory Plus: Create a centralized, on-line resource allowing citizens to easily
contact key County personnel. Implement internal policies and procedures to ensure that
this contact information is maintained on a consistent, timely basis so that it is as accurate
as possible.
iv. New On-line Services: Provide new on-line services to sign up for events, reserve
parks /facilities, apply for camping permits, and pay for associated fees on-line using
website transactions or smart phone applications. This is a multi-phase project with the
initial phase being focused on event registration with on-line payments.
v. Paratransit Management & Fleet Tracking System (PMFTS): Implement a real-time
bus tracking system that will help the County to efficiently manage routes and dispatch
buses. Work closely with the Transportation Agency to procure and implement the
PMFTS based upon well-defined requirements and a phased implementation plan.
2. Forms Management & Workflow -Completed research on vendors and products that can
provide the County with a feature-rich forms management system that includes configurable
electronic forms, workflow-driven document routing, managed work queues, and electronic
signatures. Developed system requirements to ensure that the County can procure a solution
that meets our needs while ensuring that we get the most out of our investment. Initiated
procurement efforts and established plans to implement our selected solution in FY16.
2016 Budget Presentation Department of Finance ~age 15
3. Technical Service Contracts -IT had originally planned to pursue service contracts with key
vendors in order to supplement our limited IT resources. This initiative was revaluated after
filling 2 vacancies, and it was determined that the additional capacity /skills provided by our
recent hires would allow us to keep the majority of this work in-house. While this may slow
progress on certain initiatives, it will also help to minimize IT costs. Based upon the above
combined with our management directive to reduce operating expenses, this initiative will
no longer be pursued.
4. Centralized Land Information Management Solution -Partnered with the Mayor's Office,
Planning, Public Works, and Real Property to create a cross-departmental task force focused
on moving the County towards a centralized land information management solution that will
meet the needs of all affected agencies. Completed initial analysis of data sharing needs for
land management information including key stakeholder requirements and current
challenges. Identified current information gaps and process deficiencies that must be
addressed in order to pursue a comprehensive solution. Started to evaluate opportunities
that better leverage our existing systems including the Sungard ERP System, the IAS Real
Property System, and the internally developed Planning system. Worked with respective
departments to improve these systems where possible in order to better support the overall
initiative.
1. Sungard ERP System: Evaluate current use of relevant modules and pursue further
automation opportunities where possible /prudent. Additionally, upgrade reporting
capabilities for the entire Sungard ERP system. Evaluation will be completed during
FY15 with follow-up action and reporting upgrades scheduled for FY16. The increased
automation and reporting functionality for this system will help to support this initiative
by providing greater access to relevant information.
11. IAS Real Property System: Upgrade this system from an end-of-life version having
limited support, to the vendor's most recent product offering to access new features and
functionality. The upgraded system will provide better support for this initiative
following go-live which is scheduled for July 2015.
111. Internally Developed Planning System: Stabilize this system while concurrently
migrating it to a more robust platform and adding key enhancements. Having
completed this in February 2015, initiated follow-up discussions and analysis of
Planning's business requirements for a solution to better address all planning/zoning
information needs, as well as how such a system would support this initiative.
1v. GIS Integration: Worked with all task force participants to initiate efforts on
establishing an overarching strategic plan for GIS across the County including
functionality, access, data layers, systems integration, and staffing. This will include
the evaluation of new functionality provided by our Esri /ArcGIS enterprise license
agreement, and discussion with all agencies about their current/future GIS needs. A
strategic plan for GIS will play a key role in the ultimate solution implemented for
centralized land information management, and the task force has targeted completion of
this plan for the first half ofFY16.
2016 Budget Presentation Department of Finance Page 16
5. IT Staffing Review & Recommendations -Conducted a full assessment of current IT
staffing with respect to daily operational needs and requirements for strategic projects.
Confirmed that IT demands and responsibilities have increased substantially over the past
10 years while our allocated staffing level of 13 personnel has remained essentially
unchanged since prior to 2005. The IT Division is clearly doing much more with no
additional resources as illustrated by the simple example which follows.
The same amount of IT staff that were responsible for supporting approximately 570
end-user computers in 2005, are now responsible for supporting over 1000 end-user
computers in 2015. That represents a 75% increase in the demand for end-user
computer support, and does not address new responsibilities associated with
departmental applications, mobile computing, evolving cyber threats, etc.
While IT has continued its efforts to support County operations and implement new
infrastructure /systems over the past decade, the current number of IT personnel has become
far from ideal. In terms of our staff-to-work ratio, there are simply not enough resources to
get everything done in a timely manner, and with a high standard of quality .
IT filled all remaining vacancies in FY14 allowing us to redistribute workload allocations
for optimal results, and leverage new skill sets to minimize outside vendor costs. However,
we continue to struggle with two main issues: (1) an insufficient amount of technical
support resources to address computer-related issues and questions; (2) an insufficient
amount of advanced technical skills to accelerate efforts on strategic initiatives and projects.
This situation results in the loss of productivity for our customers, as well as ongoing
operational risks and inefficiencies across the entire County.
At such time that funding allows, it is recommended that the County consider hiring 2 more
IT staff in order to address the above issues. Since this is not a realistic expectation in the
current fiscal environment, IT has planned to pursue a volunteer-based program in FYI 6
that taps into local technical skills including students at Kauai Community College, as well
as other citizens that wish to give back to their community. The goal is to supplement the
County's technical workforce on selected projects with no-cost volunteers, and possibly
low-cost interns as we move ahead. The temporary service nature of a volunteer /intern
program will certainly present challenges, but we are hopeful that the program will be
successful in creating more IT capacity at minimal extra cost to the County.
6. Information Technology Steering Committee -Facilitated discussions with senior
management to form a new Information Technology Steering Committee {ITSC). Initiated
regular ITSC meetings starting in November 2014, including representation from Council
Services to begin in February 2015. In accordance with industry best practices, the ITSC
works in partnership the IT Division to ensure that the County's strategic, technology-based
initiatives are aligned with established business goals, objectives, and priorities across the
organization. The ITSC's primary role is to provide the IT Division with executive level
guidance and support to assist them as needed with the successful implementation of
strategic technology initiatives. This includes reviewing major decisions and establishing
high-level priorities that help to guide the overall direction of technology for the County.
2016 Budget Presentation Department of Finance Page 17
7. Alternate Dispatch Center Improvements -Partnered with KPD to secure E911 funds
allowing the County to upgrade our Alternate Dispatch Center (ADC) in order to achieve
fully redundant dispatch capabilities at this location. Managed the associated upgrades to
our County IT infrastructure while coordinating as needed with outside technology vendors.
The project is well underway and is expected to come on-line in early FYl 6. Once
completed, the ADC will be able to function as a stand-alone facility replacing our primary,
EOC-based facility in the event of a disaster or catastrophic equipment failure .
Additionally, the ADC will be able to supplement the primary facility during a major
disaster, effectively doubling our available dispatching capabilities during such an event.
The upgraded ADC will ultimately provide a much needed enhancement to our public safety
infrastructure and help to ensure that we are able to dispatch emergency responders under
the worst of conditions.
8. Cloud-based Initiatives -Partnered with multiple agencies to provide technical assistance as
needed to support their pursuit of new, cloud-based automation initiatives including: Budget
Analysis, Grants Management, Boards & Commissions Management, CIP Management
(eBuilder). The initiative for Boards & Commissions Management is already live . The
initiatives for Budget Analysis, Grants Management, and CIP Management are all expected
to go-live by no later than the end ofFY15 .
9. Filling Vacancies -Completed recruitment, hiring, and training for the vacant IT Specialist
IV position specializing in web development, GIS data processing, and enterprise reporting.
The selected candidate has over 20 years of IT industry experience with technologies that
align well with our County environment. Our new employee has hit the ground running,
and is already making significant contributions to move County IT efforts forward.
10. Email Archival & Retention Policy -Created and implemented a new policy to properly
manage the ever growing volume of email information being accumulated by our County
employees. The policy incorporates new technology and rules to improve operational
capabilities, while ensuring that our County email system continues to run reliably and
efficiently into the future. Implementation of the email archiver technology and the
associated email archival/retention policy was achieved without any disruption of ongoing
services, and has successfully addressed the County's long-standing problem with managing
email volumes that continue to grow daily. As a result, the production email server has been
trimmed down in size and is running more efficiently, while the email archive server has
met or exceeded our needs for historical email access.
IV. Fiscal Year 2014-2015 Challenges
1. 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. IT can help
to lead the way, but will require strong support from affected agencies and stakeholders in
order to be successful.
2. The adoption of new technologies required to move the County forward demands additional
IT effort, research, and training, thus stretching our already limited resources. Additionally,
2016 Budget Presentation Department of Finance Page 18
there are many needs across the County which demand immediate attention from IT
resources, including everything from day-to-day support efforts to new systems
implementations and statewide projects. Current responsibilities exceed our staffing
capacity, thus making it difficult to provide quality customer service and address strategic ,
long-term planning efforts for the County at large.
3. Projects involving new systems require leadership, expertise, and resource commitment
from the department(s) associated with that initiative since they are the business owners. In
some cases, a department will rely heavily on IT to define and drive the project rather than
act in a supporting technical role. This can be challenging, and is not the ideal way to move
forward since IT does not have the same level of knowledge or authority as senior
department staff.
4. Competing priorities and limited resources have prevented IT from making significant
progress on several key goals for FY15. These include the implerrientation of new ,
formalized methodologies for IT Projects and Strategic Planning, as well as the
implementation of a comprehensive, cloud-based Electronic Procurement system. IT
projects and planning continue to move forward based upon existing methods that must
ultimately be reworked in order to realize better efficiencies. Procurement also continues to
benefit from earlier automation improvements, but has yet to reach the next level due to
staff transitions and other demands facing our Division of Purchasing. All of these goals
remain a priority, and will continue to be pursued despite initial delays. As such, they will
all be included with our IT goals and objectives for FY16.
V. Fiscal Year 2015-2016 Goals and Objectives
1. IT Project Methodology -Create and implement a formalized methodology for projects
involving technology-based systems to ensure that roles and responsibilities are clearly
outlined upfront. Ensure that the methodology incorporates well-defined standards for
various project-related activities such as funding, procurement, project planning, status
reporting, resource allocation, etc.
2. IT Policy Review & Development -Conduct a comprehensive review of existing IT
policies and policy needs. Use this information to create a prioritized list of follow-up
actions including updates to existing policies, as well as creation of new policies. Commit
resources to addressing the top 3-5 policy items before the end ofFY16.
3. IT Strategic Planning Methodology & Road Map -Create and implement a formalized
methodology for departments to assist IT staff in creating a strategic plan that addresses
their system and technology needs going forward. The methodology will be used by IT to
gather standardized information from assigned leaders in each department and craft this into
a department-specific IT plan . The departmental plans will then be layered on top of each
other, optimized for alignment of commonalities, and adjusted as needed to develop a
cohesive, countywide plan for all. As part of this, IT will work in partnership with
departments to review all major systems and supporting infrastructure across the County in
2016 Budget Presentation Department of Finance Page 19
order to develop a long-range "road map" for infrastructure, applications, services, reporting
and technology. This methodology will also allow us to identify funding and staffing
required to execute the associated plans.
4. IT Security Audit & Response Plan -Utilize internal resources to perform an updated
security audit of the County's IT infrastructure in order to identify potential threats or
vulnerabilities associated with the increasingly sophisticated cyberattacks that are occurring
worldwide. Where possible, work with the state and other agencies to leverage their
resources in support of these efforts. Prioritize identified security concerns and create a
response ·plan to address any weaknesses. Implement proactive monitoring systems and
technologies as needed to protect County IT assets based upon associated costs and risks.
5. Electronic Procurement -Implement a comprehensive, cloud-based electronic procurement
system to enable solicitation posting, bid submission, and award granting over the Internet
to realize huge internal savings on efficiency, as well as expanded vendor partner services
and conveniences. Partner with the Division of Purchasing to continue assessment of the
previously identified vendor to determine if their no-cost solution remains viable /preferred.
If so, pursue implementation as quickly as possible. If not, continue research to identify
other options. This will be a multi-phase project with phases to be defined by Purchasing
based upon their internal requirements and rollout plans.
VI. Performance Measures
The performance of the IT Division can be measured based upon the technical support services
we provide, the stability of the systems /infrastructure we manage, and the progress made on our
key operational projects (i.e. goals and objectives).
1. Technical Support Services -IT provides a variety of technical consulting services, as well
as a centralized Help Desk service. We are currently in the process of refining policies ,
procedures , and quality targets to better measure performance in this area. For FY16, we
will focus on measuring customer satisfaction, using customer feedback to identify
improvement opportunities, and expanding our use of the IT Help Desk ticketing system to
generate performance based reports.
2. Systems & Technical Infrastructure Stability -IT is responsible for ensuring that our
various systems and technology-based infrastructure remain reliable, efficient , and secure.
This is typically measured in terms of ''up time" and "outages" as applied to IT-managed
hardware /software components including networks, servers , enterprise applications, and
core services. At the time of this report, we have not experienced any significant outages for
these areas during FY15. Our performance goal will remain the same: 99% up time for
critical systems and infrastructure excluding scheduled maintenance.
The only notable stability issue over the past fiscal year was associated with our cloud-based
solution for Electronic Plan Review (EPR). The EPR application service was temporarily
unavailable and experienced functionality limitations on several occasions as our vendor
corrected issues occurring in their hosted environment (i.e. external to the County network
2016 Budget Presentation Department of Finance Page 20
and infrastructure). The root cause of these vendor issues has since been addressed with no
repeated problems.
3. Key Operational Projects -As part of the annual budgeting process, the IT Division reports
on progress for the key operational projects that we have initiated as part of our goals and
objectives for the current/previous fiscal years. Additionally, IT defines new projects
associated with our goals and objectives for the next fiscal year. In some cases, key
operational projects may span multiple fiscal years.
As we entered FYI5, IT had a total of 5 pending projects initiated in FYI4 along with 3 new
projects initiated for FYI5. We have completed 3 of these 8 pending projects leaving 5 to
take forward into FYI 6. We also initiated 5 new projects during the course of FYI 5 based
upon results of the Citizen Technology Survey. This gives us a total of I 0 pending projects
as we enter FYI6. Adding to our pending projects, we are introducing 2 new projects for
FYI6 for a total of I2 active key operational projects as we enter FY16 . These projects are
discussed throughout this report and are summarized in the chart on the following page.
Our performance goal for this area in FYI6 is to complete IO of our I2 active projects prior
to FYI 7. The only exclusions being Electronic Procurement due to its multi-phase nature ,
along with the Centralized Land Management Solution due to the likely need for
new /enhanced procedures and automation capabilities as that effort moves forward. While
we expect to make solid progress on both of these projects during FYI 6, there will be more
work to do in FYI 7 before they are completed .
2016 Budget Presentation Department of Finance Page 21
Key Operational FY Percent FY Status/Comments
Pro j ect Name Initiated Com p lete Com p letion
Electronic Procurement FY14 30% FY16-17 Delayed due to competing
(Phase 1 of Multi-p hase ) p riorities and limited resources.
Centralized Land FY14 40% FY16-17 Task force formed and efforts
Information Management progressing on multiple fronts.
Solution
Forms Management & FY14 70% FY16 Research and requirements
Workflow definition completed.
Procurement efforts underwa y .
Technical Service FY14 100% FY14 Filled vacancies allowed for
Contracts keeping work in-house and
eliminated need for contracts.
Citizen Technology FY14 100% FY14 Results report published and
Survey associated projects defined.
These projects are identified
below with an asterisk (*).
IT Project Methodology FY15 10% FY16 Delayed due to competing
p riorities and limited resources.
IT Strategic Planning FY15 10% FY16 Delayed due to competing
Methodology & Road priorities and limited resources.
Ma p
IT Staffing Review & FY15 100% FY15 Findings and recommendations
Recommendations included with this r ep ort.
Paratransit Management FY15 20% FY16 RFP created and released.
& Fleet Tracking System Vendor responses received and
(PMFTS ) * under evaluation.
County Website FY15 20% FY16 New infrastructure in place and
Overhaul* platform research completed.
Migration planning and
develo p ment underwa y
On-line Services FY15 40% FY16 Initial design and prototype
Awareness* completed. Implementation
p endin g website overhaul.
County Directory Plus* FY15 40% FY16 Initial design and prototype
completed. Implementation
p endin g website overhaul.
New On-line Services* FY15 50% FY16 New infrastructure in place and
(Phase 1 ofMulti-phase) phase 1 web services
im p lementation underwa y .
IT Policy Review & FY16 0% FY16 New project for FY16 defined
Develo p ment with this re p ort.
IT Security Audit & FY16 0% FY16 New project for FY16 defined
Res p onse Plan with this r ep ort.
2016 Budget Presentation Department of Finance Page 22
VII. Budget Overview
The FYI6 budget for our Finance /I T Division increased by approximately $72K or 2.7%. This is
due to union-negotiated salary increases and increasing benefit costs (+$78K), offset by an
overall reduction to operational/vehicle costs (-$6K). Note that the FYI 5 benefits amount shown
below includes the proposed, fully funded OPEB budget amount prior to Council's reduction in
order to provide a comparable comparison with the FYI 6 budget proposal.
Fund: GENERAL FUND
De ~rtnJ en t: FIN A NCE , D jyl ~l on: IT TEAM
FY 2015 FY2016 ~+ l-%+[-
~a _la~ and Wages 934,!)45 9§Q,~3~ 2 ,6,890 2.9%
*Benefits 48fj ,~_{}'.!_ s3 z ,_~s~ 51,_293 10.5%
Utifties 60,401 ~ •. 409 -1 0.0%
yehic~/Equip, Lease 12,900 0 -12,_9(_)0 -100 .0%
Opera!K>ns 1,149,fWS 1 ~ 156,_39-;J 2...5® 0.6%
2,643,604 2,715,386 71,782 2.7%
* FY 2015 Benefits i nclude restori OPES bud et
FY 2015 Operatinc Budget FY 2016 Operating Budget
•Sa l ary and W aees
•Benefits
•Ut il ities
•Veh i cle/Equ i p ,
Lease
• Operat i ons
FY 2015 and FY 2016 Comparison
• Sa l ary a nd W aees
•Benefits
•Ut i l ities
•Veh ic le/E qu ip ,
Lease
• Operat i ons
.FY 2015
.FY 20 16
Sa l llf'Y and W aees Be n e fits Ut il ities Veh l c le/E qu i p , Operat i ons
L ease
2016 Budget Presentation Department of Finance Page 23
COUNTY OF KAUAI
Department of Finance
Information Technology Division
2016 Budget Presentation Appendix
CIP Project Summary
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director
•
G r ow in g Kaua'i respo ns ibly.
I NFORMATION TECHNO L OGY DIVISION
2016 Budget Presentation Department of Finance Page 24
CIP PROJECT SUMMARY
Project Summary
There are 5 projects assigned to the IT Division in the CIP budget for FY15. Below is a summary
table of these projects showing high-level status, FYI 5 funding amount, and current funding
source.
Project Name Status FYlS Funding
Funded Source
Amount
PLANNING , ZONING /E NGINEERING In Progress (Electronic Plan $40 ,587 Bond Fund
SYSTEM Review) $2 ,181 General
Fund
DO C UMENT Th1AGING PROGRAM In Progress (Multi-phase) $208 ,531 Bond Fund
IT INFRASTRUCTURE In Progress (Multi-phase) $314 ,434 Bond Fund
IMPROVEMENTS
PAYROLL/PERSONNEL SYSTEM In Progress I Redefined $387 ,567 Bond Fund
CASHIERING SYSTEM UPGRADE In Progress (iNovah) $180 ,000 Bond F und
Project Status Updates
Progress on CIP projects assigned to IT has been generally slow over the last fiscal year. This
has been due to limited IT resources, transitions in affected departments, and increased demands
from other competing initiatives across the County. Additionally, it has taken longer than
anticipated to reset the direction ' for some projects. The following details are provided as an
executive level update.
• PLANNING. ZONING /ENGINEERING SYSTEM
Following approval of the FY12 budget, these CIP funds were allocated to pursue a
solution for Electronic Plan Review (EPR) which was implemented as a cloud-based
solution and has been on-line since FY13. EPR provides an on-line repository of plans,
allows citizens to submit plans electronically via the Internet, automates internal/external
workflows associated with plan review /approval, and provides efficient email
communications /notifications between County plan reviewers and citizens. At this point,
IT continues to work with PW Buildings and other affected agencies to review /improve
processes as we progress toward going fully paperless. IT partnered with PW Buildings
to successfully upgrade EPR to a new version that provides improved user functionality,
expanded browser support, and limited support for the Apple/Mac platform. There is
approximately $42K remaining in the allocated CIP funds for this project which will be
used for supplemental implementation services and expanded automation. These
additional considerations include adoption of on-line permit applications and on-line
permit payments, as well as implementation of revised or EPR workflows to further
optimize operations .
2016 Budget Presentation Department of Finance Page 25
• DOCUMENT IMAGING PROGRAM
Following completion of Phase 2, this initiative was redefined based upon lessons learned
from previous phases and review of industry best practices in order to ensure greater
success going forward. The new project direction required that candidate departments
commit to scanning all current documentation and resolving their organization/access
methods prior to moving forward with any contracts to scan their document backlog.
Additionally, next steps for the project would be determined by the results of a formal
agency readiness assessment including evaluation of scanning processes and storage, as
well as identification of any gaps in required scanning equipment.
IT developed a comprehensive assessment tool and provided this to candidate
departments in order to gather the required information. Based upon the assessment
responses received, IT is actively working with Fire and Transportation in order to move
those agencies forward. Additionally, IT continues to provide training and support to
other agencies who are working independently to implement/manage their respective
document imaging programs. As these efforts continue and document imaging expands,
it is anticipated that additional software licensing will be required along with future
funding to support backlog scanning projects for departments that are not able to
complete this effort on their own.
IT is in the process of implementing an upgrade to the underlying infrastructure for
document imaging to ensure that scanning and retrieval operations for all department
users remain reliable /efficient as work on this project proceeds. There is approximately
$166K remaining.in the allocated CIP funds for this project which will be used to push
forward as noted above.
• IT INFRASTRUCTURE IMPROVEMENTS
The scope of this project was expanded for the FY13 budget cycle to include deliverables
addressing Critical Maintenance, Improved Access to Information & Services ,
Architecture Foundation Improvements, and Scanning Capabilities & Paper Elimination
Solutions. There is approximately $304K remaining in the allocated CIP funds for this
project which will be used to pursue the listed infrastructure maintenance and
improvements required to move the County forward. FYI 6 infrastructure projects are
expected to use the remainder of these CIP funds with some of those funds actually being
applied later in FY15. While FY15 progress has been slower than anticipated due to
limited resources, there have been some key achievements on this project.
o Completed research and planning for critical system upgrades including the
Sungard ERP system and the countywide VOiP phone system. Initiated
procurement for both of these projects and established plans to complete them by
the end of 2015.
o Implemented a pilot for deploying Virtual Desktop Infrastructure (VDI). The VDI
technology is being evaluated as a possible alternative to traditional PCs and
could have major benefits including a decrease in costs for end-of-life
2016 Budget Presentation Department of Finance Page 26
replacement and ongoing maintenance, as well as an increase in efficiency for
managing/maintaining our countywide desktops.
o Procured and implemented new infrastructure to support email archival/retention.
Created a countywide policy to leverage this technology and ensure stability of
the County email system while concurrently addressing the requirements for data
retention and historical access.
o Improved and expanded our virtualized server environment to provide better
performance, flexibility, and redundancy for all server-based functions .
Continued the transition of older servers into the virtual environment, and
established plans to complete this process in FYl 6. Deployed additional virtual
resources needed to improve our public facing infrastructure, and support growing
requirements for efficient storage.
o Completed migration to a single, comprehensive solution for network security and
management enhancing capabilities while reducing overhead and costs. This
solution helps to improve network performance, create further redundancy for
ensuring stable operations, and provide additional security features to assist with
protecting our network from outside threats. The solution has also allowed us to
move forward with implementing new wireless service options.
• PAYROLL~ERSONNELSYSTEM
Due to fiscal constraints precluding the purchase of a new, single-system solution
(estimated cost over $1.0M), the Director of Finance made a decision in FYl 4 to pursue
an integrated solution by leveraging our existing systems with add-on modules and minor
software customizations applied as necessary to meet the County's business requirements
in the affected areas. Additionally, an internal task force was created to help move these
efforts forward based upon our in-house knowledge of the systems, processes, business
requirements, and challenges. This working group, known as the HRIS Task Force ,
includes representation from HR, Personnel, and Payroll, as well as support from IT.
As part of the last budget cycle for FY15, Council approved a reorganization that
transferred the Payroll function from Finance to H~ersonnel (i .e. the Department of
Human Resources or DHR). This change has been completed, and has helped to
facilitate overall progress by having DHR provide a centralized management structure
overseeing these heavily interdependent business functions. The consolidation has
further served to reduce conflicting perspectives from different groups and promote
consensus /agreement on business decisions.
Overall progress on this project continues to be slow due to several factors including
operational transitions within DHR, systemic issues with the Payroll process involving
multiple agencies, and lack of a definitive project definition with clear accountabilities .
DHR has multiple vacancies which prevent the dedication of project resources on a more
full-time basis as key staff must perform their ongoing job duties while assuming
additional responsibilities due to reduced staff levels. Additionally, the strategic plan for
2016 Budget Presentation Department of Finance Page 27
how DHR will manage their expanded operations remains in flux, and therefore cannot
be transformed into specific business requirements that can be used to drive change.
Despite these collective challenges, the HRIS Task Force has achieved the following in
FY15.
o Accruals Reconciliation -Completed a comprehensive analysis project to review
historical accrual records and establish accurate baselines going forward. As part
of this , the management of accrual data was automated with centralized controls
in DHR. At the time of this report, all but 2 departments have been completed
with the remaining 2 departments scheduled for completion by the end ofFY15.
o Leave Sharing Process and Policy -Automated the management of leave sharing
data including centralized controls in DHR. As part of this, new policies ,
procedures, and forms were created to better manage the process while ensuring
the data is maintained accurately on a timely basis.
o Sungard System Review -Completed a comprehensive review of
payroll/personnel functionality, codes and configuration settings for our Sungard
ERP system in order to identify issues with current operations, as well as
opportunities to improve them. The task force is using this information to
implement various system and process changes to pursue further automation
along with a best practices model.
o Sungard Employee Self Service -Completed procurement for a Sungard add-on
module that will provide employees with on-line access to pay stubs, "what if'
benefit calculations, demographic change requests automatically routed to DHR,
and other functions. This will allow the County to pursue an electronic pay stub
initiative, and eventually eliminate the need to print pay stubs on paper with each
payroll cycle. The new Employee Self Service add-on module is expected to
come on-line before the end FY15.
o NeoGov/Sungard New Hire Interface -Successfully integrated the NeoGov on-
line recruiting/application system with our Sungard ERP system. Selected
information for new hires is automatically transferred into Sungard which helps to
streamline payroll/personnel setup for new employees. The New Hire interface is
already live and in production.
o NeoGov OnBoarding -Started procurement for a NeoGov add-on service that
will provide DHR staff and new employees with an automated solution to manage
the onboarding process and its forms. This will eliminate nearly all of the
paperwork, and optimize the time consuming procedures that are currently
associated with processing new hires. Selected applicant information will flow
directly into NeoGov OnBoarding from our existing NeoGov Recruitment
service . Additionally, NeoGov OnBoarding will be interfaced with the Sungard
ERP system to provide more new hire information that will automatically flow
2016 Budget Presentation Department of Finance Page 28
into the payroll/personnel process. The new OnBoarding add-on service 1s
expected to come on-line during early FY16.
o NeoGov Performance Evaluation -Partnered with KPD/DHR to review this add-
on service and determined that it would serve the County very well as an
enterprise wide tool which would integrate with our existing vendor solutions.
Established plans to pursue a pilot implementation with KPD immediately
following rollout of NeoGov OnBoarding as noted above. Procurement for the
new Performance Evaluation add-on service is expected to be completed before
the end ofFY15.
o Executime Time / Attendance -Started procurement for a new Time / A _ttendance
solution that will be tightly integrated with our Sungard ERP system. Executime
is a strategic partner with Sungard and has successfully implemented their
software with many other Sungard clients. The plan is to approach this as a multi-
phase project with the initial contract phase being a small, pilot rollout for
selected groups. The initial contract will include "design" services for all County
departments /agencies in order to ensure that we develop a comprehensive
implementation plan that will be used to drive the phased rollout. Procurement
for the new Time / Attendance solution is expected to be completed by early FYI 6.
We are continuing to evaluate other options in order to achieve further automation
efficiencies with our existing Sungard ERP modules, and plan to complete this process
before considering further projects. There remains approximately $3 78K in CIP funds
allocated to this project. At this point , we anticipate that this funding should allow us to
achieve the project goals and timelines stated above.
• CASHIERING SYSTEM UPGRADE
The Council approved $180K in CIP funds for this project as part of the FY15 budget
cycle. The scope of the project includes all software and implementation costs required
to upgrade from our current, end-of-life cashiering solution. The County's cashiering
system is used extensively by Motor Vehicle Registration, Real Property Collections, and
Driver Licensing to support various revenue collection activities including: real property
taxes, motor vehicle registrations and tags, sewer fees, landfill fees, and other
miscellaneous payments. Upgrading this system to a new, modem solution is required to
sustain and improve our revenue collection operations as we move forward.
iNovah is the most recent product offering from our current cashiering vendor -System
Innovators. As part of the initial System Innovators implementation, the County worked
with this vendor to implement many complex customizations and interfaces that are
required for cashiering integration in our operational environment. Due to the highly
integrated nature of our existing system and the historical knowledge of our current
vendor, we have planned to pursue an exempt procurement with System Innovators so
that the County can seamlessly upgrade our cashiering system to iNovah.
2016 Budget Presentation Department of Finance Page 29
We are currently in the procurement process for iNovah, with plans to sign a contract and
encumber the approved CIP funds by the end of FY15. This timing works very well in
terms of schedules and resources that are associated with other interdependent projects
already in progress. The largest of these interdependent projects is our upgrade of the
Real Property system which is currently scheduled for go-live in the July 2015
timeframe. It is critical that we complete the Real Property upgrade before proceeding
with implementation efforts on the Cashiering upgrade. It is simply not feasible to
implement both of these upgrades concurrently due to their high level of integration and
overlapping user base.
2016 Budget Presentation Department of Finance Page 30
COUNTY OF KAUA'I
Department of Finance
Treasury /Driver License /Motor Vehicle
Registration Divisions
2016 Budget Presentation
2016 Budget Presentation
April 10, 2015
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director ------
Growing Kaua'i responsibly.
Department of Finance Page 31
I Mission
DEPARTMENT OF FINANCE
Department of Finance
Treasury/ Driver's License/ Motor Vehicle Registration
To provide prudent financial management, Motor Vehicle Registration and Driver License
services to the people of Kaua'i and the goverrunent agencies (county, State and federal) that we
serve.
II Successes and Achievements
1.) Print of Demand (POD) program for all registration renewals only. Whenever a
registration renewal is processed, the system will print out a registration and emblem.
The emblem number will be the license plate number of the vehicle being renewed. lbis
is cost and time savings effect as we do not need to purchase as many emblems and we
do not need to manual stamp the emblem number and staple the issued emblem to the
registration, especially for mailed in renewals. It is also a deterrent for emblems being
stolen from vehicles. The vendor for this program also supplies the printers, printer
ribbons and blank registration/decal forms. The forms are such that a regular No. 10
envelope can be used to mail out processed registrations. Eventually, this system will be
utilized for all other motor vehicle transactions whenever an emblem is issued.
2.) REAL l.D. (Act of2005)-commencing May 11, 2008, full compliance was achieved on
August 27, 2013 to balance Department of Homeland Security's (DHS) responsibility to
ensure that driver's licenses and identification cards intended to be used for official
Federal purposes meet certaip. statutory and regulatory requirements. "Official purpose"
as defined in the Act and the regulations includes, but not limited to, accessing Federal
facilities and boarding Federal regulated commercial aircraft.
a.) The facility Security Floor Plan (SFP) is near completion. The County of Kauai (all
counties') SFP is necessary and an integral part to help the State of Hawaii maintain
"Real l.D. Full Compliance". The SFP includes: security cameras, motion detectors,
entry /exit devices, Fraudulent Document Recognition training (FDR) and Security
Awareness Training (SAT} for all Driver Licensing staff members. The SFP intent is
to prevent public access to sensitive equipment, card production materials storage
locations, Sensitive Security Information (SSI) and Personal Identifiable Information
(PII). The SFP will monitor the Driver License Division during hours of operation
and during closing time .
b.) Upgrades of IT infrastructure or systems overhaul (including modernization of IT
systems to ensure all in-State DMVs are interoperable), software upgrades to improve
the ability to protect personal identity information, and ensuring the ability to use
electronic immigration verification system.
2016 Budget Presentation Department of Finance Page 32
c.) Document security enhancement, including the development of more tamper-resistant
documents with enhanced security features, and the use of facial recognition software
to detect a person with multiple identity documents or social security numbers.
d.) Equipment upgrades, including document scanners, high-resolution digital scanners,
and high-speed printers, and
e.) Reengineering of business practices, including converting to over the counter
issuance to a more secured central issuance process, minimizing the potential for
insider fraud .
3.) LEGAL PRESENCE (Act 38, SLH 2010 and Sec. 19-122-305 HAR) -enacted by the
State to comply with the REAL l.D. ACT. This requires that the county examiner of
drivers to verify that a person applying for a driver's license is legally present within the
State by providing evidence of lawful status, and ties length of stay with the Hawai 'i
learner's permit, driver's license, and state identification card's expiration date.
Act 310, transfer of State ID (SID) function to respective County's Driver License
Department, effective January 02, 2013 .
4.) The Motor Vehicle Registration division processed over 128,500 transactions in FY14.
In addition to registering trucks, vehicles, and motorcycles for the public, all island car
dealers and rental car companies, the MVR division also issues bus passes, collects sewer
payments, issues and collects solid waste tipping fee coupons and payments, collects
commercial refuse payments, and registers bicycles and trailers . MVR is also responsible
for assembling the cash receipts as well as retaining the payment records. Remarkably,
all of this is done with a staff of only 10 employees which explains why there are often
long customer lines at the MVR division.
5.) Driver' Licensing administered the Legal Presence program during FY13 and has been
enforcing the federally mandated REAL ID Act. These new programs require a
significant increase in the types of legal identification required before Driver's Licensing
can issue a state driver's license or State ID card, the latter which became a County
function in January 2013. Both customers and staff have had to adapt to these more
rigorous licensing and identification requirements. While the number of licensed drivers
on Kaua'i has not significantly currently at 52,998, the processing time for validating the
applicant's legal identification has been lengthened substantially to meet state and federal
requirements.
III Challenges
Staffing
For MVR, our staff to work ratios, in other words increased work load, make it difficult to
provide quality customer service, while concurrently trying to maintain timely reporting. This is
due to absenteeism, normal volume growth, unfunded mandates without additional resources.
There are certainly peak periods daily (around lunchtime), after a holiday, and monthly (the first
and last weeks of month) where the line for payment processing and vehicle registration is
2016 Budget Presentation Department of Finance Page 33
typically much longer. Trying to find a balance between providing the public with quality
customer service and servicing our internal departments with timely reports continues to be a
challenge. In addition, for Driver's Licensing the increased volume of documents needed to be
processed, due to a number of federal and/or state government mandates have led to additional
requirements or processes for the County. In sum, all of these factors have taken a toll on
employee morale which affects and makes it difficult to maintain and provide quality customer
service and customer satisfaction when service is poorer.
Succession Planning
Civil service requirements make succession planning extremely difficult to implement, as vacant
positions must be made available for either internal or open recruitment prior to the departure of
present staff. The MVR supervisor, with over 39 years of service, who also handled all the cash
receipts and prepared the detailed reports for Finance-Accounting retired on December 31, 2014.
We have re-allocated a current staff member up and are waiting to fill the vacated position which
has been downgraded. Similarly, the Treasury Division is comprised of only two employees, the
Treasurer and an Accountant III, both of whom are nearing eligibility for retirement. Their time
horizon is December 201 7.
Structural
Due to the relatively small size of Kaua'i County, our Treasurer is not only responsible for
managing our cash and investment portfolio but also for overseeing the MVR staff of ten (10)
and the Driver License staff thirteen (13). None of the other Counties in the State have their
Treasurers acting as administrators for the Department of Motor Vehicle functions as part of
their responsibilities. As the duties and responsibilities at MVR/DL continue to grow,
reassessing the Treasurer's role as the MVR supervisor should be evaluated.
Limited Space
In the interim, use the "One Stop Shop" area for the least complicated transactions of sewer bill
payments, bus passes issuance/collection, tipping fee coupon issuance /collection , along with
landfill payments and commercial refuse collection. It could also be used for Driver Licensing
purposes to assist with the long lines and to shorten the waiting time for the public by placing
staff members there to help with the processing of applicants.
Employee Safety
There are growing concerns from our Driver's License Division staff about employee safety as
public confrontation sometimes cannot be avoided, especially when a driver's license or state
identification must be denied for failing to meet all the new requirements. This issue is being
addressed with a CIP project in the current fiscal year by having safety glass installed at each of
the workstations where our employees interact with the public.
2016 Budget Presentation Department of Finance Page 34
IV Goals and Objectives
Complete the installation of safety glass at Drivers License division to provide staff with a safer
working environment.
Increase the utilize document imaging to reduce storage needs and to provide historic records
that are readily retrievable at the Motor Vehicle Registration division.
Treasury will continue to seek investments that are legal, liquid, safe, and offer the highest
returns having met the previous three criteria.
V Budget Overview
All three of these divisions have FY16 budget requests that show nominal growth (Treasury-
wages only, Drivers License-computer equipment) or nominal decreases (Motor Vehicle-salary
reduction due to staff reallocations). No new positions were added.
Following are each · division's respective comparable budget tables and charts.
2016 Budget Presentation Department of Finance Page 35
Salary and Wages
* Benefts
Uths
Vehtle/Equip, Lease
Operatbns
* FY 2015 Benefits indude restorin
Treasury Division
FY 2015 FY 2016
178,629
87,831
0
1
z
266,468
$+I-O/o+/-
4,676 2.7%
2,931 3.5%
0 0.0%
0 0.0%
Q ~
7,607 2.9%
FY 2015 Operating Budget FY 2016 Operating Budget
0%~0% •Salary and Wages 0%~0% • Salary and Wages
•Benefits
• Utilities
•Vehicle/Equip,
Lease
• Operations
FY 2015 and FY 2016 Comparison
•Benefits
•Utilities
•Vehicle/Equip,
Lease
•Operations
200,000 ----------------------------..
180,000 1----.-------------=---::--------------t
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Salary and Wages
2016 Budget Presentation
Benefits Utilities Vehicle/Equip,
Lease
Department of Finance
Operations
•FY 2015
•FY 2016
Page 36
Drivers License Division
FY 2015 Operating Budget FY 2016 Operating Budget
• Salary and Wages
•Benefits
•Utilities
•Vehicle/Equip,
Lease
• Operations
FY 2015 and FY 2016 Comparison
300,000
250,000
200,000
150,000
100,000
50,000
0
Salary and Wages
2016 Budget Presentation
Benefits Utilities Vehicle/Equip,
Lease
Department of Finance
•Salary and Wages
•Benefits
•Utilities
•Vehicle/Equip,
Lease
• Operations
Operations
8 FY 2015
•FY 2016
Page 37
Motor Vehicle Division
FY 2015 Operating Budget FY 2016 Operating Budget
• Salary and Wages
•Benefits
•Utilities
•Vehicle/Equip,
Lease
• Operations
FY 2015 and FY 2016 Comparison
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Salary and Wages
2016 Budget Presentation
Benefits Utilities Vehicle/Equip,
Lease
Department of Finance
•Salary and Wages
•Benefits
•Utilities
•Vehicle/Equip,
Lease
•Operations
Operations
•FY 2015
8 FY 2016
Page 38
COUNTY OF KAUA'I
Department of Finance
Real Property Assessment Division
2016 Budget Presentation
2016 Budget Presentation
April 10, 2015
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director
• gS
Growing Kaua'i responsibly.
Department of Finance Page 39
I Mission
DEPARTMENT OF FINANCE
Real Property Assessment Division
The Real Property Assessment Division's mission is to accurately and uniformly assess all real
property within Kaua'i County annually; maintain current ownership and taxpayer address
records; create and maintain up-to-date tax maps; provide public service education and
information through our front desk and our website locations; and administer numerous tax relief
programs in an efficient and fair manner.
II Success and Achievements
• RP A continues to make improvements to property data integrity and has invested in
technologies, such as Pictometry and Assessment Analyst, to assist finding additional
improvements that need to be added to the assessment list without having to add
additional staff.
• The implementation of "market modeling" has increased efficiency and accuracy in
assessing residential properties, as evidenced by higher sales-to-assessment ratios.
Investment in technology has allowed RP A to eke by at essentially the same staffing level
for over two decades despite growing parcel counts and increases in the amount of
construction. Despite our efforts to remain at flat staffing levels, however, there appears
to be mounting pressure for our division to rigorously pursue compliance which would
likely require additional staff.
• RPA was tasked with implementing eight new ordinances since March 2014. These
included, establishing the Home Preservation Limit program; reclassifying vacant multi-
family lands from Hotel & Resort to Residential; revaluing timeshare units with market
sales but capping the increase for 2015; creating the Residential Investor and
Commercialized Home Use tax classes; capping the tax increases for owner-occupants
meeting certain criteria to a maximum of $250 from the prior year's tax; implementing a
retroactive reconsideration of tax class for the 2014 year; and, establishing the Very Low
Income tax credit program. With the exception of the retroactive reconsideration of the
tax class for 2014, which is still requires ongoing review of approximately 100
applications; the remaining seven ordinances have been fully implemented.
• The annual certification of the "assessment list" continues to be completed well before
the March 15th deadline.
• The tax relief measures implemented for 2015 have shown significant growth with a 23%
year-over-year increase in the number of low-income exemptions (1,310 to 1,606), a 55%
increase in the number of long-term affordable rentals (930 to 1,439), and 239 applicants
for the newly created very low income tax credit program. The number of properties that
are classified as Homestead also grew from 10,992 in 2014 to 11,466 in 2015.
2016 Budget Presentation Department of Finance Page 40
III Challenges
Staffing
The departure of two specialized staff members within RP A will provide significant challenges
in the areas of agricultural dedications and title abstraction during FYl 6. Additionally, the loss
of an Appraiser II position and the inability fill the Commercial Appraiser position has likely
stretched RPA to a point that may be beyond its elasticity. As foreshadowed in last year's
budget presentation, the limited personnel dedicated to mapping and title abstraction has created
inherent succession planning issues for RP A. This division is currently dealing with the loss of
our most seasoned title abstractor, who retired at the end of 2014, by reassigning work to the two
remaining abstractors. It is not yet known whether the entire workload can be absorbed by these
two alone, however. Moreover, there is only one employee in RP A capable of creating tax maps.
We are currently working with Human Resources to re-describe one of the four vacant positions
to a new position that would encompass some of the duties of tax mapping and title abstracting,
while additionally adding some GIS mapping responsibilities. This re-described position (when
filled) would not only provide interim relief when vacancies occur in tax mapping or title
abstracting, but it should also allow RP A to pursue its goal of creating future tax maps
electronically via a Geographic Information System application.
Other staffing challenges include trying to provide our existing staff with opportunities for career
development and advancement as presently the only position class that allows for career growth
is the real property appraiser series.
Implementation of Software Solutions /Conversions vs. Annual Workload
We are currently testing the IAS World assessment software as we prepare for the migration
from a server-based system to an online, web-based solution in early-July 2015. Concurrent with
this assessment software migration, RP A is also replacing the cost tables that were developed
and maintained by an O'ahu cost estimator company with the cost tables from a nationally
recognized leader is cost estimating, Marshall & Swift. The combination of these two software
enhancements should provide greater functionality, a more stable platform, a higher degree of
confidence in cost estimates, and offsite data security in the event of a catastrophic event.
Other initiatives include investment in ESRI Canada's Assessment Analyst, a software program
that allows data mining from existing and future Pictometry imagery to locate missing structures
(or portions thereof) from our assessment list. While not yet under contract as of the date this
report was written, we expect to be under contract in early-March with an anticipated product
rollout sometime in May 2015. The initial 5,000 parcels for the pilot program still needs to be
identified and we also need staff to be assigned and trained on how to use this product.
Another software solution we are pursuing is the IDAM disaster reporting software. This is
offered as a complimentary product to our current qPublic website and allows the real property
assessment data to be captured and populated directly into FEMA's forms needed to report
damage estimates. IDAM also allows disaster areas to be easily identified using GIS maps with
the information exportable to field tablets for quick site verification. While this is primarily a
2016 Budget Presentation Department of Finance Page 41
software solution that will benefit Civil Defense, since RP A currently has a website service
contract with qPublic, we will facilitate the initial contract.
Finally, there is an ongoing focus group (RPA, Planning, Public Works, IT, and Mayor's Office)
that is exploring a countywide land management solution. This effort involves creating a data
sharing repository and making each department's data available via GIS. We are currently
looking at each department's business processes , how data is codified and stored, and possible
land management software solutions that may bridge these departments .
Bear in mind that we will still have to accomplish these additional tasks into the annual
assessment calendar of duties which include appeal casework, fieldwork that focuses on new and
omitted improvements, land valuation, market modeling, creating assessment notices, and then
back to appeals by December.
Lack of Administrative Rules
There have been dozens on ordinances passed in the past two years related to real property
changes. One of the biggest challenges in implementing and enforcing these numerous
ordinance changes, aside from present staffing limitations, is that our division has not kept pace
with developing the corresponding Administrative Rules to complement these ordinance
changes. This creates a certain level of ambiguity in the laws governing RP A as well as
significant amount of latitude in trying to interpret their intent. This is especially evident with
the minimal ordinance guidance on establishing tax classifications based on actual use.
IV Goals and Objectives
All Hawai 'i counties are wrapping up their upgrades to the newest version of the assessment
software (IAS World) as well as completing the installation of the Hawai'i specific cost tables
that were developed by Marshall & Swift. Kaua 'i County is scheduled to complete our testing
and migrate to this new assessment software in early summer 2015. This should bring improved
cost approach values to those properties which are not being market modeled, such as
commercial and industrial properties where comparable sales are infrequent.
The inclusion of funding to procure field tablets in this year's budget will allow the appraisers to
reduce their duplicative efforts of converting the paper field cards and building sketches to
paperless electronic entries directly at the inspection sites. Additionally, once the tablets are
loaded with GIS data, these mobile devices can be used to "map" land characteristics and
anomalies such as floodways, topographically challenges areas, and erosion issues.
The implementation of the ESRI Canada Assessment Analyst is listed both as a challenge and as
goal. It's a challenge in that this initiative will require staff time to review the data and create
building sketches , and it is a goal in that RP A wants to bring greater fairness and equity to all
taxpayers by locating omitted assessment information and adding it to the tax roll.
Continued training. Time must be set aside for staff training, both in IAS World and for
Marshall & Swift. We are working with both our IT department as well as the vendors to
2016 Budget Presentation Department of Finance Page 42
establish a "go live" date which is tentatively scheduled for early-to mid-July 2015. In addition,
we continue to need follow-up training in Market Modeling, and our training sessions would
likely occur in late-August or early-September.
V Budget Overview
Salaries & Wages
Benefits
Utilities
Vehicle/Equipment, Lease
Operations
'·
Total
FY 2015 Operating Bud get
•Salary and Wages
•Benefits
•Utilities
• Vehicle/Equip,
Lease
• Operations
FY 2015 FY 2016 $+or-
941,154 950,970 9,816
536,219 522,256 (13,963)
720 720 0
4,000 5,502 1,502
484,408 441,532 (42,876)
1,966,501 1,920,980 (45,521)
FY 2016 Operating Budget
0 %
0 %
•Salary and W ag es
•Benefits
•Uti lit i e s
•Vehicle/Equ ip,
Le as e
• Oper ati on s
FY 2015 and FY 2016 Comparison
1,000,000 -..--------------------------.
900,000
800,000
700,000
600,000
500,000
400,000
300 ,00 0
2 00,00 0
1 00 ,00 0
0
Salar y and
Wages
2016 Budget Presentation
Benefits Utilities V ehicle/Equip , Ope r ations
Lease
Department of Finance
8F Y 2015
ll F Y 2016
Page 43
COUNTY OF KAUA'I
Department of Finance
Real Property Collections Division
2016 Budget Presentation
2016 Budget Presentation
April 10, 2015
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director ------
Gr ow in g Kaua'l respo nsib l y.
Department of Finance Page 44
I Mission
DEPARTMENT OF FINANCE
Real Property Collections Division
To provide prudent financial management and customer services to the people of Kauai as well
as the departments and agencies we serve.
The Real Property Tax Collection function is to administer the Tax Billing & Collection system
and to assist with the custodial responsibilities for all real property tax records.
II Successes and Achievements
• Delinquency
As we slowly recovery from the recent economic downturn, RPC's most significant
challenge has been to reduce the rate of property tax delinquency. As of February 28 ,
2015 the delinquency rate was at 5.8%, which compared to the same period last fiscal
year represents a decrease of 0.2% (FY14 at 6.0%); however the outstanding dollar
balance actually grew by $644,255.67 (FY14 at $6,045,841.79) because the total real
property taxes billed grew on a year-over-year basis. The composition of the outstanding
receivables, as of February 28, 2015 (excluding penalties or interest), was as follows:
• Total Outstanding from all fiscal years = $6,690,097.46
• Outstanding from current FY15 only= $4,818,745.72
• Outstanding from FY14 and prior= $1,871,351.74
At the beginning of FYl 5, prior to receipt of any first half payments, the total outstanding
balance due was $115,240,630.19.
• Decrease the amount of our Delinquent Taxes
Real Property Collections division has continued to work diligently on collecting the
Delinquent Real Property Taxes by either arranging Payment Agreements with the
taxpayers or by executing Foreclosures. Thanks in part to the collaboration and
cooperation with the County Attorney's office, RPC has made significant strides to
efficiently draft standardized documents for payment agreements or, alternatively, to
execute tax foreclosure auctions when taxpayers refuse to address their delinquencies.
• Payment Agreements: Every effort is made to meet with taxpayers and establish
manageable Payment Agreement Plans to avoid foreclosure and repay the delinquent
taxes as quickly as possible. A good faith payment is required at the execution of the
Payment Agreement Plan and as long as the scheduled payments are paid in accordance
with the plan, no foreclosure action will be initiated. As of 02 /28 /2015 , RPC had 67
Payment Agreement Plans executed. This will generate a monthly income of $69 ,500.00
and collected toward outstanding delinquent taxes as follows:
Outstanding Tax Amount as of 02 /28 /2015
Total Tax $ 1 ,871,351.74
2016 Budget Presentation Department of Finance Page 45
Total Penalty
Total Interest
Total Other
Grand Total
$ 174,237.62
$ 624,521.53
$ 57,676.46
$ 2,727,787.35
• Foreclosure Sale: Unfortunately, when taxpayers are either unresponsive or unwilling to
enter in to Payment Agreement Plans, the County is forced to seek repayment of back
taxes by recording a lien and, if payments are still not made, by then foreclosing on the
property through tax foreclosure auction. Our annual Foreclosure Sale for FY15 is
scheduled for May 06, 2015, at which time Nine (9) Parcels owing outstanding, will be
offered for sale:
Outstanding Tax Amount as of03 /04 /2015:
Total Tax
Total Penalty
Total Interest
Total Other
Grand Total
$134,615.90
$13,331.89
$43,924.54
$6,641.96
$198,514.29
III Challenges
• IAS System Upgrade
o With the ever changing world of the technology age, the Real Property Software
system will be upgraded to new Integrated Assessment System (IAS World) in
July 2015. This will create a significant learning curve for the Real Property
Collections staff as well as the Real Property Assessments staff as we all learn a
new assessment and collections system that will ultimately allow us to do our jobs
more effectively and efficiently.
• Sii/Revenue Collector Upgrade
IV Goals
o The current Cashier System will be upgraded in the near future. The IT
department is currently working with RPC and Treasury to implement this new
system as well as integration with all the other third-party software vendors that
connect to cashiering systems . We are hopeful that the transition will be smooth
and seamless.
The primary goal of the Real Property Collections ·Department is to bill, collect and account for
all Real Property Taxes and other Special Assessments, such as the Residential Refuse
Collection Assessment and the Kukui'ula Community Facilities District Tax , in an effective and
efficient manner for the County of Kaua'i. Our secondary goal is to manage the delinquency
rate, to extent possible, by actively pursuing collections efforts.
2016 Budget Presentation Department of Finance Page 46
Objectives
• Go Paper Less
o Paperless system was implemented in July 2014. With more than 1,200 taxpayers
electing to receive their bill notices via email, we have been able to reduce the
cost of printing, stuffing and mailing real property tax bills.
• Decrease the amount of our Delinquent Taxes
o Initiate foreclosures on properties that are two or more years in arrears on
property taxes owed
o Assist in the cancellation of trash collection services for properties that are
delinquent in their Residential Refuse Collection Assessments
o Work with the State, County and DHHL offices to reduce delinquent taxes for
leased government properties
V Budget Overview
Comparative Charts
0 %
0 %
Salaries & Wages
Benefits
Utilities
Vehicle/Equipment, Lease
Operations
T otal
FY 2 0 15 O perat i ng Budget
• S al ary and Wa g es
•Benefits
•Utilities
•Veh ic le/Equi p,
Lease
• Oper ation s
FY 2015
228,533
121,748
0
0
109,956
460,237
0%
0%
FY 2016 $+or-
219,824 (8,709)
119,762 (1,986)
0 0
0 0
101,123 (8,833)
440,709 (19,528)
FY 2 0 16 Op eratin g Bud g e t
•S ala ry an d Wages
•Be nefits
•Ut ili ties
•V ehic le/Equip,
Le ase
• Operat ion s
2016 Budget Presentation Department of Finance Page 47
Comparative Charts (cont.)
FY 2015 and FY 2016 Comparison
2 00 ,000
1 50 ,00 0
1 00 ,000
50,000
0
Salary and
Wages
2016 Budget Presentation
Be n efit s U t iliti e s Vehicle/Equ ip, Op er a t ions
Lease
Department of Finance
8 FY2015
FY 2 016
Page 48
COUNTY OF KAUAI
Department of Finance
Purchasing Division
2016 Budget Presentation
2016 Budget Presentation
April 10, 2015
Ken M. Shimonishi
Director of Finance
Sally A. Motta
Deputy Director ------
Gr ow ing Kaua'i respo ns ibly.
Department of Finance Page 49
I. Mission
Department of Finance
Division of Purchasing
The Division of Purchasing (DoP) is tasked with the responsibility for all informal and formal
procurement of Construction, Goods and Services for the County of Kaua'i. In addition, the
Division is responsible for: Contract for services, small purchases involving materials, supplies
and equipment; leases, rent, and the acquisition of real or personal property; maintain control of
all surplus County equipment and process all inter-office and incoming/out-going mail, and
postage.
II. Vision
The primary vision of the division is to ensure full and uncompromising adherence to the
requirements of the Hawaii State Procurement Code and associated administrative rules. Of
equal importance is to continue to pursue and develop an aggressive strategy and philosophy to
harness all available technological resources in order to better enhance our service delivery to
both our internal and external customers.
III. FY 15 Successes and Achievements
A. PCard Training
pCard training for pCard users, fiscal officers, and pCard coordinators continued in FY 15. The
specific focus in FY 15 was to meet with department heads, deputy department heads, and fiscal
officers in an attempt to ensure that personnel were specifically aware of their obligations and
responsibilities to ensure full compliance with regard to pCard purchases. The department heads
were also reminded that while they could delegate authority for the card transaction approvals to
other appropriate employees within their departments, the ultimate responsibility to ensure
compliance remained at their level.
The outcome of the FY 14 financial audit served as the true assessment of the effectiveness of
training that has been provided over the past two years. In the FY 14 audit finding, from a
sample of 40 transactions, there were six ( 6) errors; more than a 50% reduction in findings as
compared to FY 13. While the findings indicate that the system is not yet perfect, the large
reduction in findings is evidence of substantial improvement.
Particularly noteworthy is that in FY 14, there were a total of 7 ,595 the card transactions totaling
$1,774,729.70 worth of expenditures. This compares to 4 ,454 transactions in fiscal year13
totaling $1,004,261. 70. Notwithstanding a 41 % increase in the number of transactions between
fiscal years 13 and 14, the findings by the auditor decreased substantially. The fact that findings
have substantially decreased while transactions in expenditures have increased, shows a positive
trend in the right direction.
2016 Budget Presentation Department of Finance Page 50
The expanded use of the pCard for the acquisition of goods and services by County departments
and agencies have resulted in a substantial reduction in the use of purchase orders. Prior to the
pCard implementation, the County generated approximately 8,500 purchase orders every year. In
FY 14, the DoP generated approximately 5,000 purchase orders; a reduction of approximately
2,500. And the purchase order reduction trend continues in FY 15.
Credit for the success of the pCard program in fiscal year 15 is a result of a collaborative effort
showing significant partnerships between the accounting division, the DoP, and our departments
and agencies that have worked diligently to accept leadership and training and in turn, showing
impressive results.
While there is reason for encouragement with regard to the continued rollout of our pCard
initiative, it is not yet a perfect system and continued training and development will be provided
to ensure maximum performance. In addition, the DoP will continue to work in partnership with
the l.T. Division to acquire the vitally needed pCard module that will provide technological
automation to support and improve the system.
B. Filling All Procurement Specialist Positions and Providing Needed Training
In FY 15, all recruitment and selection processes needed to fill all vacant positions were
completed. The successful completion of these recruitment efforts was critical in order to
advance all of the components of our succession plan which has been in place now for two years.
All procurement specialists and technicians have responded very favorably to the comprehensive
and accelerated training regimen. The succession strategy has been heavily reliant on the
abilities of the new specialists to acquire a functional understanding and competence in the
Hawaii State Procurement Code, associated administrative rules, and various policies and
procedures which have enabled reallocation to higher levels throughout the organizational
structure. We achieved this by designing the training regimen to encompass all duties and
responsibilities of the division via cross training, job sharing, job rotation, and peer training
initiatives.
C. Development and implementation in the use of electronic scanning to avoid
management of large paper files and the storage challenges that are involved.
The DoP's has continued its operational initiative to maximize the use of technology in order to
achieve the highest possible level of operational efficiencies and to eliminate cumbersome
processes. The use of scanning as an effective tool in achieving these objectives have been
noticeably effective not only for the division, but for the County overall. When conducting our
annual estimated quantity assessment for copy paper this year, there was a noticeable reduction
in the use of paper County wide. This is not only a positive development in terms of cost savings ,
but will also have environmental benefits as well.
2016 Budget Presentation Department of Finance Page 51
D. Routine and On-Demand Training for Departments and Agencies
During FY 15, the DoP has continued its process of providing routine and on-demand
procurement training for all departmental and agency personnel who are assigned procurement
duties and responsibilities. The philosophical and pragmatic process that has been followed is to
encourage department heads and division chiefs to inform the DoP of procurement training needs
within their respective departments. This will enable the DoP to customize procurement training
based on the demands and needs of each individual department and agency. Focused and goal-
directed training is the most effective method to ensure the highest level of learning ,
understanding, and information retention.
Customized procurement training for all methods will continue to be a matter of standard
operating procedure for the DoP.
E. Continue A~tive Planning to Address Succession Challenges
The DoP's comprehensive and detailed succession plan, as presented to the Council in two prior
budget presentations, continues to move forward. This continued forward movement is due to
the outstanding level of commitment, energy, and enthusiasm of new employees who have fully
engaged themselves in the intensive training and performance standards that have been vital
components of the training regimen. Credit is also owing to our two outstanding procurement
managers who have been primarily assigned the responsibility for all staff training.
Additional discussion about the succession plan will be addressed in the Goals and Objectives
section.
IV. Challenges
A. Continued Coordination to Acquire a Fully Integrated Electronic Procurement
System.
During FY 15, the DoP was not able to fully implement the new electronic procurement system
as conveyed in the FY 14 budget presentation. An indefinite deferral in implementation was
determined to be the appropriate course of action in order to focus on the importance of
employee recruitment and training. The implementation objective was also further refined to
focus on a sequential rollout of the initiative involving a preliminary implementation for
construction procurement as a first step. This was deemed proper because of the close
partnership that was developed between the DoP and the contractors Association of Kauai.
Having a willing partner with the Association provided a valuable resource to focus on
construction bids as the first component of a multiple point implementation plan. In addition, it
was determined that some critical requirements must be completed before the successful
implementation of the electronic procurement system could be successfully achieved. These
included:
2016 Budget Presentation Department of Finance Page 52
1. Updating of the 40-year-old general provisions for construction contracts which has
remained in a relatively unchanged condition since 1971.
2. In addition to the work of the division of purchasing to amend these general provisions,
legal review by the office of the County attorney was deemed critical in order to ensure
legal conformance and to incorporate the numerous special provisions within the GPCCs
where possible.
3. Major revisions were needed to the construction bid document boilerplate in order to
ensure that it was appropriately updated as part of the electronic procurement
implementation process.
4. Revisions were also required for all electronic forms to ensure that it conformed fully
with rules and laws governing procurement and to make these forms available as part of
the electronic procurement documents library.
While full implementation of the electronic procurement initiative was not achieved in FY 15
as we had hoped, there has been significant progress and movement. Implementation efforts
in fiscal year 15 included the division's continued engagement with the Contractor's
Association of Kauai. This partnership was critical to the implementation of our electronic
procurement initiative based upon an administrative decision that we would incrementally
implement our electronic initiative starting with construction bids. The reason for this was
because we had a very receptive and cooperative partner in the Contractor's Association to
assist us in addressing procurement issues and concerns.
1. Our current implementation timeline is to let our first fully electronic procurement bids
for construction beginning July 2015. Use of electronic procurement for goods and
services bids is currently targeted for September 2015. Once these provisions are
implemented, the overwhelming majority of formal procurement responsibilities will then
be exercised relying upon a totally capable electronic procurement system.
2. The electronic procurement system will enable the division of purchasing to let bids
electronically and to also receive offers electronically. The creation of bid abstracts,
tabulations, correspondence addressing intent to award, and actual awarding of contracts,
will be fully addressed within the capability of the system.
3. A comprehensive and detailed timeline addressing implementation targeted for July has
been developed.
V. Goals & Objectives Fiscal Year 2015-2016
The Goals and Objectives section for Fiscal Year 2015-2016 for the DoP summarizes the
Division's key requirements that are deemed essential to better achieve our mission and service
delivery to both internal and external customers.
2016 Budget Presentation Department of Finance Page 53
Summary of Fiscal Year 2015-2016 Goals and Objectives
1. Continued Expansion of Electronic Procurement and Paperless Initiatives
The various technological initiatives that have been pursued by the DoP since 2011
pertaining to electronic procurement and other paperless initiatives will continue in earnest
in fiscal year 2016. These technological goals and objectives will include the intermittent
implementation of our electronic procurement initiative first for construction in July 2015
and for goods and services procurement in September 2015.
There are other areas focusing upon technology that must still be better understood and
pursued in order to maximize the benefits of these technological adaptations. These include
the use of statutory governance which acknowledges the legality of electronic and scanned
records as constituting the same legal authority as hard copy documents. The County's
ability to harness these types of options will have a tremendous impact upon the processing
of work. There would also be cost implications in that there should be a corresponding
reduction upon the reliance on paper. The DoP has worked closely with the office of the
County Attorney to begin to identify these types of statutory provisions which will help us
to move in this direction.
Summary of Fiscal Year 2015-2016 Goals and Objectives (continued)
2. Completion of Initiative to Develop Technology Assignments and Delegation of
Authority to All DoP Employees
All identified technology initiatives, roles, and responsibilities which the DoP has adopted
as part of its operational platform are being specifically identified, documented, and
delegated to all employees. A spreadsheet which documents these assigned duties and
responsibilities has been developed and posted in the DoP shared portal for access,
management, and review. This initiative will ensure subject matter expertise in the various
areas on which the division relies for the harnessing of technologies in order to improve
efficiencies and the level of service to our customers.
Employees who are primarily assigned to a specific technology task or tasks are expected to
develop a functional level of expertise and are called upon when the specific areas are
needed for the carrying out of various procurement requirements. These employees are also
assigned the responsibility of training other employees who are assigned other areas of
expertise so as to ensure broad knowledge of all functional areas among all employees.
This level of knowledge and continuity is vital so as to ensure the reliable and uninterrupted
delivery of services.
I
2016 Budget Presentation Department of Finance Page 54
Summa ry of Fiscal Year 2015-2016 Goals and Objectives (continued )
3. Succession Planning
The DoP's comprehensive and detailed succession plan, as presented to the Council in two prior
budget presentations, continues to move forward. The plan continues to be a component of the
DoP's Goals and Objectives since it is clearly one of the most vital objectives needed to ensure
success.
a. All professional and technical support positions within the division of purchasing have now
been filled for the past two fiscal years.
b. The routine use of cross training, job rotation, and job sharing continues as part of the
operational philosophy. This will ensure a broad-based understanding and skill development in
all areas of public procurement and ensure maximum performance by all employees who have
developed an understanding of the entire scope of duties and responsibilities of procurement.
c. As of this date, two procurement specialists have advanced to the level of Procurement and
Specifications Specialist III. At this level, these individuals have gained the technical
knowledge and experiences necessary to operate independently in the exercise of their
procurement duties and responsibilities. Based on the current succession plan strategy that has
been outlined , both specialists are being trained and prepared to advance to the Procurement and
Specifications Specialist IV level in fiscal year 16. This movement is critical in order to ensure
the continuity of high-level procurement services after the retirement of one of two managers
that will occur at the end of calendar year 15. It also establishes a pool of candidates who can be
considered for higher positions within the organization as attrition due to retirement occurs.
d. Two additional specialists have since achieved the level of Procurement and Specifications
Specialist II. One of these specialists advanced from the level of procurement technician. This
was made possible through a new initiative developed via · consultation with our HR Department
which provides a professional pathway for technicians to advance to the specialist level absent a
four-year college degree. Of course, this is based upon at least nine years of qualifying
experience in the field of procurement. Both specialists are anticipated to advance to the
Procurement and Specifications Specialist III level in fiscal year 16. This will bring them to the
journeyman level and enable them to work independently in the daily exercise of their duties .
e . One of two existing Procurement Technicians is currently attending college and will receive her
Bachelor's Degree in Business Administration during the summer of calendar year 2016. Once
this occurs, she will qualify for the Procurement and Specifications Specialist I position and will
be reallocated accordingly .
f. It is critical to note that this succession strategy involving intensive training and upward
movement of employees is critical to ensure the continued delivery of services as our division
anticipates retirement attrition that has become commonplace in the County. And as noted
previously, this initiative to create higher rated procurement professionals within the division
will enable us to continue to maintain our level of operation absent the need to seek additional
positions. The intent is to maintain the same amount of employees who are better
trained and better qualified to carry out more complex work. m ~m
Holollola
-ZOZD -
We
will
retain
2016 Budget Presentation Department of Finance Page 55
VI. Performance Measures
Continued Expansion of Electronic Procurement and Paperless Initiatives
1. Maintain communications and coordination with The Public Group, the Contractor's
Association of Kauai, Internal and External Customers, and other stakeholders prior to the
implementation target date of July 1, 2015 to ensure the graduated implementation.
2. Identify and respond timely to potential implementation barriers within the first quarter of the
fiscal year and seek coordinated resolutions via systems changes and workarounds.
3. Maintain close coordination and consolation with the office of the County attorney in the last
quarter of FY 15 to ensure legal conformance with all facets of the initiative.
4. Continue to refine the strategic implementation timeline that governs plans to roll out the
phased initiative for electronic procurement.
5. Continue to develop and document next steps with regard to long-term implementation plans
for remaining procurement types that are not identified for implementation in fiscal year 16.
6. Closely adhere to the implementation timeline that has been developed especially with regard
to the public education campaign and internal and external training initiatives that will be
critical to ensure success.
Completion of Initiative to Develop Technology Assignments and Delegation of
Authority to All DoP Employees
1. Utilization of once a month staff meetings as the primary vehicle for continued development,
refinement, and implementation of the initiative.
2. Respond timely to training requirements that are identified by staff as part of this initiative.
3. Conduct once a week follow-up and assessment discussions with operations managers to
assess the success of the initiative and what further adjustments may be needed.
Succession Planning
1. Submission of appropriate requests for reallocations when time and grade and required
qualification standards have been met.
2. Confirming appropriate movement and response from Human Resources within a three (3)
month period from initiating action.
3. Attend to corrective follow-up is needed as directed by HR within a two weeks period.
2016 Budget Presentation Department of Finance Page 56
4. Successful completion of all formal procurement requests as submitted by departments and
agencies in full compliance with rule, law, and policies.
VII. Budget Overview
Salary and Wages
* Benefts
Utl:ies
Vehi:le/Equ", Lease
Operatbns
* FY 2015 Benefits include restorln
FY 2015
425,371
258,162
0
FY 2016
649,569
356,515
0
8,640
113.0Q6
1,127,730
$+I-
224,198
98,353
0
0
~
314,056
O/o+/-
52.7%
38.1%
0.0%
0.0%
.:L..0.%.
38.6%
FY 2015 Operating Budget FY 2016 Operating Budget
•Salary and Wages
•Benefits
Utilities
•Vehicle/Equip,
Lease
• Operations
1%
FY 2015 and FY 2016 Comparison
Salary and Wages Benefits
VIII. Vacant Positions
Util i ties Vehicle/Equip,
Lease
•Salary and Wages
•Benefits
•Utilities
•Vehicle/Equip,
Lease
• Operations
Operations
•FY 2015
D FY 2016
The DoP currently has one (1) Budget Analyst vacancy created by the recent appointment of Mr.
Ken M. Shimonishi to Director of Finance. In addition, the retirement of one of our operations
managers is expected in December 2015.
2016 Budget Presentation Department of Finance Page 57