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HomeMy WebLinkAboutFY 2017 Department of FinanceCOUNTY OF KAUA'I Department of Finance 2017 Budget Presentation April 7, 2016 Ken M. Shimoni s hi Director of Finance Sally A. Motta Deputy Director ------ Halo Halo zozo Growing Kaua 'i responsibly. DEPARTMENT OF FINANCE I. Miss i o n To provide effective fi n anc i al 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 activ iti es. The Department of Finance Budge t Presentation fo r FY 17 addresses a number of initiatives , successes and achievements that are attributable to our department. The Department of Finance is comprised of nine se parate divisions ; A dmini stration , Accoun tin g , Information T echnology , Treasury , Driver's Li cense , Motor Vehicle , Real Property Assessme nt, Real Property Co ll ections, and Pur c h asi ng. These divisions continue to perfonn despite limited resources an d financial constraints. D ivi sio n reports highlight the various initiative s , challenges , s ucce sses and goa l s for the future. TI. S u ccesses an d Ac hi evemen t s 1. Succe s sfu ll y launched and implemented O P ENGOV Transparency P ortal, making the county's financial data readil y available i n a u s er-friendly interactive platform for both the public and i n ternally to department heads , fiscal staff , designated personnel. 2 . Created the project team to implement the Long Term Financial Plan (L TFP) with c onsultant guidance from Govenunent Finance Officers Assoc i atio n (GFOA). Completed drafts of LTFP policies related to "Structura ll y Balanced Budget" and "Deb t Management". 3. November 20 , 20 15 -Stan d ard & P oor 's Rating Serv i ces revised it s bond rating outlook for t h e coun t y from AA /negative to AA/stab l e , with reasons stated that includ e: "county's r etu rn to b alance d operations and budgets", "s t ro n g management , w ith good fi n a n c ial policies a nd practice s", "a dequ ate bud getary performance", and "very s trong liquidi ty". ill . Goa l s & O bj e ct ives 1 . Complete the LTFP project with GFOA , including the adoption of the following policies , "Structw-ally B alanced Bud get ", "De bt Manage m ent", "General Fund R eserve ", "Inve s tmen t ". "User Fees", "Cap i tal hnprovements ", and "Long Tenn Financial Plan ". Prepare a multi-year outlook of the county 's finan c ials within the guide li nes of these policies to identify resources, cha ll enges , and recommendations t o move the county forward with sustai n ed financial stabi li ty. 2. Execute succession and tra inin g of employee s through the utilization budget proviso Section 3, specifically wher e near future retirements are ev i dent and specialize d ski ll s are required. 3 . Cont inu e enhancements o n OPENGOV to c r ea t e: 2017 Budget Pre senta tion Departm e n t of Fin a n ce Page 2 a. An executive overview of staffing and labor information in o rd er to better manage staffing resources, which currently account s for 65.5 % of the county's total operating budget , and 82.3 % of the General fund 's operating budget. b. Department specific data requests, including non-financ i al reports. c. Other requests. IV. Budget Overview-Finance Administration The budget for Finance Administration saw a reduction of $1 22 ,432 or -2.5%. Thi s was due in lar ge part to the renewal of county wide excess liability policies w ith increased retenti on amounts from $750,000 per claim to $1,000 ,000 per claim. Given the county's historical data on claims whereby on l y two cases (Bynum, and Koloko dam) exceeded the $750,000 retention amount ; and the philosophy of the new county attorney and that department's increased capacity to l itigate claims in-house; the insurance industry's movement towards $1 ,000 ,000 retention limits ; and the $121 ,000 in premium cost savings , renewal at the higher retention levels are justified. Other budgetary reductions were realized in telephone expenses ($12,000), consultant service s and special projects ($11 ,150). FY 2016 Salary and Wages 334,498 Benefits 155,380 Utilities 147,000 Vehtle/Equip, Lease 1 Operatbns 4,223,639 4,860,518 FY 2016 Ope rating Budget •Salary and Wages •Benefits Ut il it i es •V eh i cle /Equ i p , Lease • Operat i ons FY 2017 ~ + L -O/o + l - 336,244 1,746 0.5% 151,919 -3,461 -2.2 % 135,000 -12,000 -8 .2 % 1 0 0.0% 4,114,92, -lQ8,717 -2.6% 4,738,086 -122,432 -2.5% FY 2017 Operating Budget •Salary and Wages •Benefits U tili t i es •V eh i cle /Equ i p , Lease •Operat i o n s 2017 Budget Presentation Department of Finance Page 3 FY 2016 and FY 2017 Comparison 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 +---------------------- Sa l ary and Wages Benefits Ut i l i t i es Veh i c l e/Equip, L ease Budget Overview -Finance Department Totals Operations •FY 2016 ll FY 2017 Overall the Finance department's budget is flat compared to FY 16 as indicated by the tables and charts below. F Y 2 01 6 FY 2 01 7 ~ + L -O/o + L - Adm inistratbn 4,860 ,518 4,738,086 -122,432 -2 .5 % Accounting -1 ,623,294 -1,624 ,976 -1,682 0.1% Informatbn T echnobgy 2,745,386 2,811,654 66,268 2.4% Tr easury 266,468 276,431 9,963 3.7% Drivers U:ensing 613,709 618,654 4,945 0.8% Motor Vehde 790,712 807,715 17,003 2.2% Real Property Assessment 1,919,836 1,993,179 73,343 3.8% Real Property Coll=ctbns 460,707 432,372 -28,335 -6.2% Purchasng 1,127,730 1,115,989 -11,741 -1.0% 11,161,772 11,169,104 7,332 0.1% 2017 Budget Presentation Department of Finance Page 4 Department: FINANCE FY 2016 FY 2017 ~ + L -% +L - Salary and Wages 4 ,570,445 4,708 ,438 137,993 3.0% Benefts 2,480,322 2,475,677 -4,645 -0.2% Utities 208,120 192,320 -15,800 -7.6% Vehde /Equip, Lease 20,645 17,645 -3,000 -14.5% Operatbns 3,882,240 3,775,Q24 -107,216 -2.8% 11,161,772 11,169,104 7,332 0.1% FY 2 0 16 Operating B udge t F Y 201 7 O perating Budget •Salary and Wages •Benefits Utilities •Vehicle/Equip, Lease • Operat ions FY 2016 and FY 2017 Comparison •Salary and Wages •Benefits Utilities •Vehicle/Equip, Lease • Operations 5,000,000 ..--------------------------~ 4,500,000 4,000,000 3,50 0,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Sala r y and Wages 2017 Budget Presentation Benefits Utilities Vehicle/Equip, Lease D epartment of Finance Operations •FY 2016 •FY 2017 P age 5 Risk Man a gement (Provided b y Atlas Insurance) Coverage Policy Limits Deductibles FYlS FY16 Premium s Premium s Property $25M $10DK $355,912 $355,912 Excess Liability $20M $1M $553,723 $465,257 Crime $SM $25K $13,597 $13 ,972 Cybe r Liabi lity $1M $SOK $21,280 $22 ,540 Excess WC/EL $25 M/$2M $500K/$SOOK $167,565 $198 ,293 Aircraft Hull and $25M/$2 .2M 2%/$1K $35,170 $28,481 Liability Liability : Subsidized See Below See Below $26,790 $45,616 Police Vehicles* 30 vehicles 35 vehicles TOTALS $1,174,037.00 $1,130,071 Environmental I Po l lu tion $10M $SOK FORECAST with POLLUTION *Subsjdized Police Vehicles: 35 vehicles as of March 2016 Bodil y Injury (each person, each accident) Property Damage (each accident) Add itional Personal Injury Protection Uninsure d Motorist -Unstacked U nderin s ured Motorist-Un s tacked Wage Loss Benefit Funeral Expense s Physical Damage Cove ra ge Non-Owned, Hired , Other Driver Property: Recommended New $1,130,071 $100 ,000 $300 ,000 $100 ,000 $1 00 ,000 /$300 ,000 $100 ,000 /$300 ,000 $I ,000 /$6 ,000 $2 ,000 Not Covered Not Covered Foreca st F Y17 Change% Foreca st 3.00% $366,589 2.00% $474,562 3.00% $14 ,3 91 0.00% $22,540 10.00% $218 ,122 0.00% $28,481 0% $45,616 $1,329 perveh 35 ve hi cles $1,170,302 $ 3-yr term 75,000.00 $1,245,302 The property markets remains a "b uyer s market n with abundant capacity and competition between the va1ious property carriers. Our marketing strategy is to seek a modest rate increase from the incumbent markets and feel the underwriters wi ll reward the loyalty the County has demonstrated with those markets. We built in a modest premium in crease to reflect the i ncreased values from the new facility built b y the Dep artment of Water l ast year and an increase in the Consumer Pric e Index (CPI). Cr ime , Cybe r Liabilit y & A i rcraft Hu Jl and L iability : These l ines of coverage for the County remain very competit ivel y priced and the outlook for the late 2017 renewa l is stable. 2017 Budget Presentation Department of F inance Page 6 Excess Lia bili ty, Av i a tion Lia bili ty , C y b er L i a bili ty a n d Cri m e: The premium forecast for these lines of coverage ha ve modest increases factored into the renewal and absent a severe loss occurring pre-renewal should provide the County with adequate funds t o renew the programs. Excess Wo rk ers Co mp e n s a ti on /E mpl oye r s L i a bili ty: The forecast for this line of coverage is problematic for a number of reasons. First and foremost is the l ac k of compet i tion for this particular line of coverage. The number of viable carriers willing to underwrite the County's account is basically two, The incumbent Safety National and Midwe st Employers Casualty Company. We have approached both for renewal tenns in the past and Midwe s t is not price competitive. The second significant reason driving premiums upwards are the escalation in the severity of claims and the increa se d cost of medica l services to the injured employees. This places the carriers in the position of h av ing to raise premium levels or exit the marketplace. We budgeted a 10 % increase in this premium to reflect market conditions. S ub sidize d P o lic e A u to m o bil e L i ab ili ty: We have the renewal terms and pricing which we h ave utilized for the budget. This program has grown significant l y ove r the last two years s ince it was incepted by the County. An important factor to consider during the budget proces s i s the premium is auditab le. This means as vehi cl es are added to the sche dule there will be additional premium charged to the County. We ha ve i ncluded the rate per vehicle($ 1,329) and ifKPD can provide you with an approximate number of additiona l vehicles b eing added to the program the additional prem.ium can be built into the budget. Po llu t i o n L i a bili ty: We have included in the budget forecast a line item for Pollu6on Liability. CulTentJy this line of coverage i s not part of the County's insurance program. If you recall during the last renewal proposal we discussed t he efficacy such coverage would provide the County. I believe it would be a prudent purchase and with current market trends an affordable option. Based upon our recent experience with a similar Hawaii public entity we believe the County could secure a $10 Million Limit Policy with a $50 ,000 retention which has a three year tenn for approximately $75,0000. 2017 Budget Presentation Department of Finance Page 7 C O UN T Y OF KAUA'I Department of Finance Accounting Division 2016 Budget Presentation 2017 Budget Presentat i on April 7, 2016 Ken M. Shimoni shi Director of Finance Sally A . Motta Deputy Directo r -- Growing Kaua'i responsibly. Department of F inance D epartme n t of Finance P age 8 Accounting Division I. Mission To provide oversight and mainta i n the accuracy and integrity of the County's financial system. Il. Success and Achievements The Government Finance Officers Association (GFOA) awarded a Cert~ficate of Achie ve ment for E x cellence in Financial Reporting to the Cow1ty of Kaua'i for its Comprehensive Annual Fin ancial Report (CAFR) fo r the fiscal year ended June 30 , 2014. T h e County has received this award for the 22nd consecutive year. This award signifies that the County's 2014 CA FR has ach i eved the highest standards in financial reporting in accordance with Generally Accepted Accounting Principles (GAAP) an d appl i cable legal r equirements. We remain hopeful the current CA FR will meet the Certificate of Achievement Program 's requirements. III. Challenges The Accounting Division continues to operate seamless l y desp i te operational challenges and risks. Our philosophy is to maintain operations by cross -training and cross-functioning to the extent possible ; however , our effo 1i s to successfully maintain efforts continue to be challenging due to sholi staffing and unanticipated lea ves of absences . On the horizon , is the potential retirement of Position 253, Accountant rrr. The incumbent will have 31 years of service in July 2016 and is tasked with Fixed Assets, cash rece ip ts , account reconciliations , and serves as the pCard Admin i strator for the County's pCard P rogra m. Effective implementat i on of cross-training proves to represent an important r isk management tool by s haring, sp r eading , and capitalizing of individual retained knowledge in specialized functions. However, due to consistent year-after-year staffing issues , the goa l of cross-training and creating stan dardi ze d procedures co n tinue to be challenging. For example, we have experienced: 1) increases in pCard transaction volume; 2) increas es in leased equipment purchases; 3) increases in capital asset purchases and activity; 4) additional requirements surrounding compl i ance with GASB Statements directly impacting the County. IV. Goals and Objectives The Accounting Di v ision's primary objectives are to: l) R eport 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 ope r ations. V. Budget Overview Accounting Division 's budget remained relativel y flat to the prior fiscal year. 2017 Budget Presentation Department of Fin ance Page 9 VI. Budget Variances Overall budget for the Accounting Division remains relatively flat to the prior fiscal year. FY 2016 FY 2017 ~ + L -% +/- Salary and Wages 592,266 603,715 11,449 1.9% Benefits 314,929 309,528 -5,401 -1.7% Utiites 0 0 0 0.0% VehK::le/Equip, Lease 1 1 0 0.0% Operatbns -2,530,490 -2,538,220 -7,730 0 .3% -1,623,294 -1 ,624,976 -1,682 0.1% Comparative Charts FY 2016 Operating Budget FY 2017 Operating Budget •Sa l ary and Wages • Benefits •Ut i lit i es I •Vehicle/Equ i p, ~% Lease 0% • Operations FY 2016 and FY 2017 Comparison 1,000,000 500,000 0 ----~ -500,000 _..__ __ _ ------- -1,000,000 -1,500,000 -2,000,000 ------- -2,500,000 1 0 % •Salary and Wages •Benefits •Utilit i es •Vehic le /Equip, Lease • Operations •FY2016 ll FY 2017 -3,000,000 -'----------------------------' Salary and Wages Benefits 2017 Budget Presentation Utilities Veh i cle/Equip, Lease Department of Finance Operations Page 10 The large negative budget figure shown in operations is a result of having the Accounting D i vision 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. VII . Vac ant Position Position 290 , Accountant I is currently vacant. Due to the staffing demands, an 89-day contract emp l oyee has been temporarily hired to assist with day-to-day assigmnents. We anticipate hiring prior to FY2017 . 2017 B u dget P resentatio n D epartment of Finance Page 11 C O UNTY O F KAUA I Department of Finance Information Technology Division 2017 Budget Presentation 2017 Budget Presentation April 7, 2016 Ken M. Shimoni s hi Director of Fina nce Sally A. Motta Deputy Director -- Growing Kaua'i responsibly. Departm ent of Finance Page 12 I . M ission Depa1·tment of Finance Information Technology Di vis ion To provide the Mayor's Office , County Agencies , and the County Council with information technology so lutions which enable them to serve the public in a cost-effective and efficient manner by fulfi llin g 5 key functions. 1. D e li ver quality custome r service and expe r t technical serv i ces that empower Cow1ty employees t l u·ough the avai l ability of accessible and useful infonnation, as we ll as the u se of a u tomated systems that improve their productivity. 2. Provide Cow1ty emp l oyees with easily accessible technical s upport and time l y 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 agenc ie s with the procurement and implementation of new systems that will increase operatio n a l effic i encies , as well as enhance the services avai l able to our citizens. 5. Re comme nd so lutions and strategies that will leverage the power of technology to address countywide need s. Il . Vis ion The Information Techno l ogy Di v ision (IT ) is a centra li ze d service organizat i o n whose cus t omers include all County depa rtment s a nd agencies, as well as members of the public that uti li ze technology when interacting with the County. We cont i nually strive t o deliver quality customer service in all functions of our Mission, but realize that current s taffing and fiscal constraints are such that there \.\rill always be more work than we can handle w i thin the existing environment. ln order to address these operational challenges and achieve the best results poss ib le, IT has adopted the following key tenants as part of our overall vision for the County. 1. Sustainable Budgeting Through Innovation -The IT Divi sio n 's operational expenses have a l ready been reduced to minimum levels base d upon our ex i sti ng envirorunent. Going forward, IT will pursue new, innovative strategies that can alter the County's technology portfolio s uch 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 ach i eve future savings , both within IT , and across the County as a whole. Associated cost savings wi ll be used to reinvest in I T where appropriate in order to con tinu e progre ss. 2017 B ud get Pr esentatio n Department of Fi n ance Page 1 3 2. Improved Efficiencies Through Policy/Pro cess Re-engin eering -There are many existing policies and processes within the County that can be modified to improve the efficiency of IT ope r ations. IT will review these areas to pursue appropriate changes that eliminate unnecessary overhead from IT , and/or optimize the roles that are ass igned to IT staff. fn all cases , we wj)) seek so lution s th at benefit everyone, and e n sure that IT continues to deliver the best service possible. Some of the changes identified may require that employees o ut side IT assume more ownership of their assigned a r eas so that IT can focus on its core responsibilities. IT will partner as ne cessary with affected agencies to manage any associated transitions. 3. Co untywid e Prioritization Through Strategic Planning & Accountability -IT is constantly processing r e que sts for new equipment, application so lution s, infrastructure , technical support /cons ulting services, and large-sca l e automation proj ects. These requests come from a ll depa1iments and agencies based upon their specific needs, but a re rarely aligned or prioritized from a co untywide perspective. B a lan cing lT support for these needs along with efforts to maintain and improve core /share d technology services is an ongoing challenge that requires a more st r ateg ic, unified approach. IT will address this need by developing a St r ategic Pl anning Methodology and Road Map that conso lid ates future requirements from all County departments /agencies into a single plan with centralized governanc e. This will be used to estab li sh c l ear IT p1iorities that give resource , schedu lin g , and funding preferen ce to projects that deliver maximum return on investment. Additionally, the new methodology will be designed to increase business owne r accountability in tenns of justifyi ng their IT requests and providing l eadership /management fo r their approved projects. Executing on the above w ill allow the IT Di vision to maximize operational results and focus more of our efforts o n longer term , strategic initiatives that will advance County IT. In addition to completing key operat i o nal projects as detailed throughout this report , ou r vision for IT ove r the next 3-5 years includes achievement of the fo llowin g major mil esto n es. I . Additional No/Low Cost IT Capacity -Create a dditi ona l capacity for County IT services through the implementation of volunteer and/or intern programs that involve technicall y skilled m e mb ers of our community who are willing to participate in se le cted projects. 2. Alternative IT Funding/Revenue -Secure a lt ernative fund in g so urces to support the advancement of Cou nt y IT o p erat i ons including grants, donations, business partner agreements, and/or legislation. Additionally , research opportunities to create new revenue streams by leveraging County technology and information to prov id e valued-added serv i ces for our citizens , local businesses, and visitors. 3. Paperless Operations -Implement technology-based solutions that eliminate the need fo r paper docume nt s and wet signatures when conducting County business on a going forward basis. Additionally, establish policies /procedures that a ll ow for the timely d estruction of all historical paper documentation that has been scanned and sto r ed electronically . 2 017 Budget Presentation Department of Finance Page 14 4. IT Capital In vestment Planning -D evelop a 5-year plan for capital investments that are r equired for core IT infrastructure and services in the future. As part of this , create new processes to ensu r e that associated documentation is maintained on an annual basis. Over the last year we have continued to pursue our vision for County IT. Progress has been slower than we would like due to limited resources and competing priorities , but we are actively working towards key t enants and major milestones as reflected in the updates below. • Key Tenants U pdate o Sustainable Budgeting Through Inno vation -Other than union negotiated sa lary/benefit increases , IT operational expenses for the FYI 7 budget increased less than I % despite new investments /proje cts. This was achieved largely by reducing maintenance cos ts with strategic eq uipment upgrades. Additionally, we are on schedu le to execute a new Microsoft Enterprise License Agreement in March 2016 that will provide substantial savings in associated software licensing over the next 1 O years. This agreement also provides increased deployment flexibility at no extra cost. o improved Efficiencies Through Policy/Process Re-engineering -IT is actively wo rkin g o n revising current policies and/or implementing new policies to streamline operations. Current examples include policies for Electronic Discovery and Account Deletion. o Countywide Prioritization Through Strategic Planning & Accountability -As of late 2015 , IT started work on de veloping a new methodology and roadmap for managing our strategic teclmology-based initiatives. Current plans are to r eview this with the IT Steering Committee in Q2 /Q3 2016 with implementation to follow. • Major Milestones U pdate o Additional No /Low Cost IT Capacity -Reviewed Cou nty policies and procedures regarding volunteer /intern programs. Started assessment of intemal projects and tasks that would be appropriate for assignment to volunteers /interns. Plan to revisit talks with Kauai Community College in Q3 /Q4 2016 once we get further along with the internal planning process. o Alternative IT Fundin!dRevenue -No progress to report other than initial review of grant optio n s , logistics , etc. Plan to revisit in Q3 2016. o Paperless Operations -Identified potential vendors for implementing an electronic fonns /workflow /signature solution with procurement and a pilot rollout to occur in Q2 /Q3 2016. Worked with senior management to pursue a new resolution for e l ectronic records storage in order to help eliminate the need for storing paper records. Worked with various departm ents /agencie s on their individual automation initiatives to reduce use of paper. 2017 Budget Presentation Department of F i nance Page 15 o IT Capital Investment P lanning-No progress to report. P lan to r evisit in Q 3 /Q4 2016 after com p leting the new methodology and roadmap for managing strategic technology initiatives as noted in the key tenants update above. III . F iscal Year 2015-2016 Succes s es and Achievements 1. Bringing County Services Closer to Home -Made excellent progress on all key projects identified by our Citizen Technology Survey that was developed in conjunction with the Mayor's Helo Halo 2020 initiative for Bringing County Services Closer to Home. All projects are eit h er comp l e t ed or remain on schedule for comple t ion by the e n d of FY l 6. i. On-line S er v ic es Awareness : I m prove p u b li c awareness regard i ng w h at typ e s of on -line services are ava il ab l e to the m , an d enco ur age use of those se r vices by im p rovi n g ease of access , v i sibility, co m mun i cations, etc. [UPDATE: Completed as part of rolling out the new, overhauled County website.} ii . C oun ty Website Ov e rhaul: Redesign Kauai.gov to make it more visual and eas i er to navigate with a concise , uncluttered menu system. Ensure that the updated user interface provides a simple process fo r all website users to access the information and services that they are interested in. [UPDATE: Completed.] iii. C ounty Dir e ctory Plus: C r eate a centralized, on-line resource allowing citizens to easily contact key County personnel. Imp l ement 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. [UPDATE: Completed as part of rolling out the new, overhauled County '\1 .t ebsite.} iv. N e w On-lin e Servic e s: P rovide new on-line services to sign up for events, reserve pa r ks/facilities, app l y for ca mp i n g pe n n i ts, and pay for assoc i a t ed fees o n-line using website t r ansac t io n s or smart phone a p pl i cations . T h is is a mu l t i -p h ase pr o j e ct w ith the initia l phase be i ng focuse d on even t registrat i on with on-l ine payments. [UPDATE: Implementation in progress. Phase I scheduled for completion in Q2 20 1 6.) v. Paratran s it Management & Fleet Tracking S y st e m (PMFTS ): I mp l ement a r eal-time bus tracking syste m that will help the County to efficient l y manage routes and dispatch buses. Wo r k closely with the Transportation Agency to procure and implement the PMFTS based upon well -defined requirements and a phased implementation plan. [UPDATE: implementation in progress. Scheduled for completion in Q2 2016.} 2. Centralized Land In formation Management Solution -Worked with the c r oss-departmenta l task force created in FY 15 t o move the County towards a centralized L and Information Management Solution (LlMS) that w i ll meet the needs of all affected agencies. Secured profess i onal solicitation services to help accelerate progress , formalize the process, and build consensus. As part of this created several business process des i gn teams to assist with defining current/desired states, identifying gaps, and establishi n g re qui rements with recommendations on how best to move forward. The resu l t of the facil i tation will be a 2017 B u dget P rese n tat i o n D epartment of F inance P age 1 6 "LIMS Roadmap a nd Requirements" report documenting agreed upon solutions to address all id e ntified gaps. The report is scheduled for completion in Q2 2016, and will pro v ide the County with tangible requirements that may be translated i n to an RFP for a future enterprise software purchase , and/or packaged into sma ll e r more focused projects in the short-term. 3. Major Systems Upgrades -Completed hardware /softwa r e upgrades for the County's ERP system including replacement of the end-of-life se r ver platfonn , as well as a major level upgrade to the Sungard application software which provided key functionality to support on- line portal capabilities , along with requirements for the Affordable Care Act. Additionally , comp l eted hardware /software upgrades for the County's VOlP phone system required for ongoing stabi lit y and support of our phone-based communfoations, as well as the introduction of new productivity features to be rolled out in FYI 7. 4. Real Prop erty Automation Initiatives -Managed project with Real Prope 1 iy to implement a new , cloud-based upgrade from their end-of-life client /server system to the next generation Tyler iasWorld solution. Additionally , provided technical support to assist Real Property with their implementation of the Assessment Analyst so lution from Esri Canada . Both of these projects provide Real Prop erty with the latest technology and tool sets required to perform their jobs at optimum levels. 5. Cloud-based Initiatives -Partnered with multipl e agencies to provide technical assistance as needed to support their pursuit of new , cloud-based automation initiatives including: Financia l Transparency Portal, Grants Management , and Electronic Procurement (phase I for construction). All of these initiati ves are now in producti o n and providing significant efficiency /transparency benefits as expected. 6. TT Policy Review & Development -CompJeted evaluation of existing and needed I T policies. Prioritized the following 4 policies to be addressed in FY16: Restricted Media Disposal , Electro njc Di scove ry, Account Deletion , and Supp lemental Compute r Request (including p-card usage). The Re stricted Media Disposal policy , related to FB I CIJlS compliance, was comp leted and published. The E l ectro ni c Di scovery and Account Deletion policies are drafted and under review. The Supplementa l Co mput er Request (SCR) policy is currently being drafted. Based upon progress to date , we are on schedu l e to complete all 4 targeted policies in FY 16. All of these targeted policies will help to streamline IT operations and improve efficiencies. 7 . GIS Initiati v es for Public Safety -Assi s ted Civil Defen se and other agencies in their efforts to impro ve public safety during disaster situations b y de ve loping maps and applications based upon GIS technology. Projects included: the Kauai Hazard Mitigation Plan Update for 2015-2020 , the County Tsunami Evacuation Zone Update, and the Kauai Shelter Online Status Project. The Kauai Hazard Mitigation Plan Update was approved by FEMA and State Civil Defense receiving very positive review s for the mapping portion of the plan. The County Tsunami E v acuation Zone Update involved working closely with NOAA and University of Hawaii tsunami scientists to create new /updated maps that will be published in our County phone books , as well as a new onJine GIS map for increased access /awareness. The Kauai Shelter OnJine Status project incorporated input from many government and 2017 Budget Presentation Department of Fin a nc e Page 17 local ent iti es resulting in an online map to show s helter status in real time, along with general information on emergencies and evacuations . I V . F i s cal Year 2015-2016 Challenges 1 . Managing change required to move away from paper-ba s ed processes and implement next generation solutions can be very difficult due to a genera] 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 teclmologies required to mo ve the County forward demands additional IT effo1t , research , and training, thus stretching our already limited resources. Additionally , there are many needs across the County which demand imm ediate 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 add r ess strategic , Jong-tenn planning efforts for the County at large. 3. Pr oj e cts invol v ing new systems require leadership , expertise , and resource commitment from the department(s) associated with that initiative s ince they are the business owners. ln s ome ca s es , a department will rely heavily on lT to defin e and drive the project rather than act in a s upporting technical role. This can be challenging , and i s not the ideal way to move forward s in ce IT does not have the same level of knowledge or authority as sen i or department staff. 4. Competing priorities and limited resources have prevented lT from making significant progress on several key goals for FYl 6. These include implementation of new , formalized m ethodologies for IT Projects and Strategic Planning ; as welJ as implementation of a compre hen sive, cloud-based Electronic Procurement system. IT projects and planning conti nu e to move f01ward based upon existing methods that must ultimately be reworked in orde r to realize better efficiencies. Procurement also con tinue s 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. ln addition to the above initiatives, we encountered delays with the Fonns Management & Workflow project due to unexpected research findings that required us to rev i sit requirements. All of these goals remain a priority , a nd will continue to be pursued despite initial delays. As such , they will all be included with our IT goals and objectives for FY 17. V . Fisca l Year 2016-201 7 Goals and Objectives l. IT Project Methodology -Create and impl ement a formalized methodo l ogy for projects involving technology-based systems to ensure that roles and responsibilities are clearly out lin ed upfront. Ensure that the methodology incorporates well-defined standards for various project-related activities such as funding , procw·ement , project planning , status reporting, resource allocation, etc. 2017 Budget Presen tat ion Department of Finance Page 18 2. IT Strategic Planning Methodology & Road Map -Create and implement a formalized methodology for departments to assist IT staff i n creating a strategic p1an that addresses their system and technology needs going forward. The methodology will be used by IT to gather standardized i nformation from assigned leaders in each department and craft tllls into a department-specific IT plan. The departmenta l plans will then be layered on top of each other , optimized for alignme n t of commonal i ties, and adjusted as needed to develop a cohesive , countywide plan for all. As pa1t of this, IT w i ll work in partnership with departments to review all major systems and supporting infrastructure across the County in order to develop a long -ra n ge "road map" for infrastructure , applications, services, reporting and techno l ogy. T h is methodo l ogy w ill also allow us to identify funding and staffing required to execute t h e associate d p l ans. 3. Electronic Proc u rement -Imp l eme n t a comprehensive, cloud-based electro n ic procurement system to enab l e so li cita ti on p osting, bid submission , and award granting ove r the I nternet to realize huge in t ernal savings on effic i ency, as we ll as expanded vendor partner services and conveniences. Partner with the Division of Purchasing to continue assessment of the previously i dentified vendor to determine how best to rollout their no-cost solution. Th i s w i ll be a multi-phase project with phases to be defined by Purchasing based upon their internal requirements and rollout plans. 4. Fonns Management & Workflow -Procure and implement a countywide , feature-rich forms management system that includes configurable electronic forms , workflow-driven document routing , managed work queues, and electronic signatures. Develop 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. 5. Cyber Security I nfrastruc t ure & Services Plan -Establish action plans a n d ti m elines to address a ll recomme n datio n s from the FYl 6 I T Security Audit & Response P lan. Comp l ete a ll re l ated tasks r esu ltin g fro m th i s plan as soon as possible. Add i tional l y, engage with l oca l , state, and federa l partners to rev i ew ongoing cyber secur i ty tl u ·ea t s as they affect the County's assets. Work with th ese pa1iners to l everage all availab l e reso ur ces in order to identify and address potential threats /vulnerabilities associa t ed with the increas i ngly sophisticated cyberattacks that are occurring worldwide. Detennine what is required in tenns of future cyber security investments that wi ll ensure our County assets remain as secure as possible. C r eate a strategic framework and formalized plan for managing the County's cyber security operations, including additional enhancements where needed. V I. P e rformance 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 ma d e on our key operational projects (i.e. goals and objectives). 1. Technical Support Services -I T provides a variety of technical consulting services, as we ll as a centralized Help D esk service . We are in the process of refining policies, proce d ures, 2017 Budget Presentation Department of Fina n ce Page 1 9 and quality targets to better measure performance in this area. For FY16 , we focus in g on customer satisfaction measures, using customer feedback to identify improvement opportunities , and expanding our use of the IT Help Desk ticketing system to generate perfotmance based reports. These efforts remain ongoing with results expected in FYI 7. 2. Systems & Technical l nfrastructure 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 s i gnificant outages for t h ese areas during FYl 6. Our per fo nn ance goal will remain the same: 99% up time fo r c1itical systems and infrastructure excluding scheduled maintenance. The only notab l e stabi li ty issue ove r the past fisca l year was the loss of DMV-related services fo r several hours. County DMV services are hosted by the City and County of Honolulu via the state's network, and our connection to this network was temporarily disrupted. Our County IT specia li sts immediately contacted thei r counterparts at the state and city , working diligently with them to get the systems back up and running. The issue appeared to be related to a state network upgrade and was resolved once identified. 3. Key Operational Projects -As part of the annual budgeting process , the 1T D ivision reports on progress for the key operational projects that we have initiated as part of om 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. 111 some cases , key operational projects may span multiple fiscal years. As we entered FY16, IT had a total of 12 projects comprised of 10 pending projects initiated in FYI4 and FY15 along with 2 new projects initiated for FY16. We are sc heduled to complete 7 of these 12 projects by the end of FY16 which will leave 5 pending projects to take forward into FY17. Adding to o ur pending projects, we are introducing 1 new proj ect for FYI 7 for a total of 6 active key operational projects as we enter FYI 7. These projects are discussed throughout this report and are summarized in the project status chart on the following pages. Our performance goal for this area in FYI 7 is to complete 5 of our 6 active projects prior to the end of FY1 7. The only exclusion will be Centralized Land Management So l ution 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 thjs project during FYI 7 , there will be more work to do in FY18 before it is completed. 2017 Budget Presentation Department of Finance Page 20 K ey O p era ti o n a l FY P erce nt FY Status/C omment s P ro j ect Na m e Initiat e d C ompl e t e Co mpl et i o n Electronic Procurement FY14 50% FYl7 Phase 1 completed for (Multi-phase) construction projects. Subsequent phases to be scheduled after addressing Purchasing requirements. Centralized Land FY14 30% FYl8 Facilitation services secured Infonnation Management and analysis project underway. Solution (LIMS) Report scheduled for delivery in Q2 2016 with additional action to follow based upon findings. Forms Management & FY14 50% FYl7 Delayed due to competing Workflow priorities and limited resources , as well as evolving research and requirements. Will pursue initial pilot Q2 /Q3 2016 with countywide rollout to follow. IT Project Methodology FY15 20% FY17 Dela ye d due to competing priorities and limited resources. IT Strategic Planning FY15 20% FY 1 7 Delayed due to competing Methodology & Road prioritjes and limited resources. Map Paratransit Management FY15 90% FYl6 Vendor se lected , contract & Fleet Tracking System signed, and implementation in (PMFTS) progress. Go live scheduled for Q l 2016 with project completion in Q2 2016. County Website FY15 100% FY16 Completed. New website Overhaul launched in September 2015 On-line Services FY15 100% FY16 Completed. Centralized access Awareness and increased visibi l ity for all on-line services provided with new website launch in September 2015. County Director y Plus FY15 100% FY16 Completed. Improved director y infonnation and presentation provided with new website launch in September 2015. Additional capabilities for mobile responsiveness , filtering , and sorting added as part of subsequent releases. Proj ec t Status Chart -page 1 of 2 2017 Budget Presentation D e p artment of Finance Page 21 Key Op e rational FY Percent FY Status /Comments Project Name I nitiat e d Complete Co mpl e tion New On-line Services FY15 80% FY l 6 Implementation in progress (Phase 1 of Multi-phase) with phase 1 go-live schedu l ed for Q2 2016. Subsequent phases to follow. IT Policy Review & FY16 60% FY16 Initial review completed with 4 Development policies targeted for completion by end of FY16 . IT Security Audit & FY16 40% FY16 Eva luated ve ndor options to Response Pl an complete the audit and id entifie d target partner for audit. Plan to procure audit services in Q1 2016 and comp l ete response plan in Q2 20 1 6. Follow -up actions will occur once the response plan is finalized. Cyber Security FY17 0 % FY17 New project for FYl 7 defined Infrastructure & Services with this r eport. Plan Proj e ct Statu s C hart -pag e 2 of 2 VD. Budget Over v iew The FY 1 7 budget for our Finance /IT D ivision increased b y approximately $66K or 2 .4 %. This is primarily du e to unio n negotiated increases associated with sa l aries and benefits ($59K). The remainder of the IT budget increased less than 1 % from FY 16 to FY 17 ($7K). 2017 Budget Presentation Department of Finance Page 22 Fu n d: GE N E RAL F UN D Department: FINANCE, Division: IT TEAM FY 2016 FY 2 0 1 7 ~+ /-% + /- Sala ry and Wages 960 ,935 1 ,008 ,382 47,447 4.9% Benefits 537 ,656 549 ,477 11,821 2.2% Utirities 60 ,400 56 ,600 -3,800 -6.3 % Veh i cle /E quip, Lease 0 0 0 0.0% Operations 1,186,395 1,197,195 10,800 0.9% 2,745 ,386 2,811,654 66,268 2.4% FY 2016 Operating Budget FY 2017 Operat i ng Budget •S a l a ry and W age s •Bene fit s •Ut i lit i es •Ve h i cle/Eq u i p , Lease • Operat i ons FY 2016 and FY 2017 Comparison S a l a ry and Wag es Bene fit s 2017 Budget Presentation U t il it i es V eh i cl e /Equ i p , Lease Dep a rtm e nt of Finance •S a l a ry and Wages •Bene fits •U t il it i es •V eh i c le /Equ i p , L ease •Ope r a ti ons •FY 20 1 6 .FY 2 01 7 Operat i on s Page 2 3 VII I. V acant Po s ition s & Succession Plann i n g The I T Di vision does not have any current or anticipated vaca n cies , and will therefore not include a n attache d list of vacant p os it ions from the Dep artme n t of Hum an Resources (OHR). The I T Di v i sion is not req u esting any new po s iti o n s for FY I 7. Reall ocations for some of our existing I T s t aff will need t o be considered for FYl 7 as we train se l ected team members to take on grea t e r responsi bilitie s in an effort t o addr ess evo l ving lT d eman d s across the County. IT will work with DHR to fac ilitate thi s evaluation /tran sit i on, aod a l so with Department of Financ e mana ge m e nt to address any funding need s with i n our pro p osed budg et constraints . Positi o n s under consi d era tion i nclude 240 and 264. There a r e no impending retirements or departure s (w i th i n 2-3 years) for po s itions with i n the IT Divi s i on. E mp l oyee reti r ement plans /intenti ons are not always s har e d with management a n d are s ub ject to c h a n ge o n s hort notice. Howe ve r , thi s sta tu s acc u rate ly represents our understanding of IT operatio n s a t t h e ti m e of this report. IX . G rant F und s The IT Di visio n does n ot c urrentl y utilize gra nt funds to support our operations. More s p ec ifi caJly , I T does not have a n y pos i ti o n s that are funded by State o r F e der a l grants. G iven the above , IT will not i nclude an attached works h eet detailing grant funds for the division. 2017 Bu d get Presentation Department of Finance Page 24 COUNTY OF KAUA I Department of Finance Information Technology Division 2017 Budget Presentation Appendix CIP Project Summary 20 17 Budget Pres e nt atio n Ken M. Shimonishi Direc tor of Fi nance Sally A. Motta Deputy Director ------ Growing Kaua 'i responsibly. Dep ar tment of Fin ance Page 25 INFORMATION TECHNOLOGY DIVISION CIP PROJECT SUMMARY Project Summary There are 5 projects assigned to the IT Division in the CIP budget fo r FY16. B e l ow is a summary table of these projects showing high -level status, FY16 funding amount, and current funding source(s). Proj ec t Na m e Statu s FY 16 Funding Fun d ed S our ce Amount PLANNIN G, ZONING/ENGINEERING In Pro gress (Electronic Plan $70,586 Bond Fund SYSTEM R eview) $2,181 General Fund DOCUMENT IMAG I NG PROGRAM In Progress (Multi-phase) $166,228 Bond Fund IT INFRASTRUCTURE In Progres s (M ulti -phase) $304,535 Bond Fund IMPROVEMENTS PAYROLUPERSONNELSYSTEM In Progre ss I Redefined $378,708 Bond Fu nd CAS HIERING SYSTEM UPGRAD E In Progre ss (iNovah) $180,000 B ond Fund Project Status U pdates P rogress on CIP projects assigned to IT has been generally slow over the last fiscal year. This has been due to limited IT r esources, transitions in affected depa1tments , and i ncreased demands from other competing initiatives across the County. Additionally, i t has taken longer than anticipated t o reset t h e direction for some projects. The fo ll owing details are provided as an executive l evel update . • PLANNING, ZONING /EN G INEERING SYSTEM Following approva l of the FY12 budget, these CIP funds were a llocated to pur s ue a so luti on for E l ectronic Plan Re view (EPR) wh i ch was implemented as a cloud-based solution and has been on-line since FY13. EPR provides an on-lin e repository of plans , allows citizens to subm it plan s e l ectronically v i a the I nternet, a ut omates interna l /external workflows associated with plan review /approval , and provides efficient email communicat i o n s /notifications b etween County p lan reviewe r s and citizens. At this p o int , IT continues to work with PW B uildings and other affected agencies to review /improve processes as we progress toward going ful l y paperless. There is ap pr oximately $73 K remaining in the allocated CIP funds for t hi s 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 revise d EPR workflows to further optimize ope r a ti ons. Pro curement for on-l ine pennit applications and on-line payments is in progress to be completed Q2 20 1 6 with impleme nt atio n to follow in Q3 /Q4 20 1 6. Implementation of revi se d EPR workflows remains under di sc u ssio n with ve nd or design discussions pl a nned for Q 2 /Q3 20 17 Bud get Pres en tation Dep artment of Financ e P age 26 2016, and implementation to follow based upon approved specification from the design process. • DOCUMENT IMAGING PROGRAM Fo ll owing comp letion of Phase 2, this initiative was redefined based upon lessons learned from previous phases and re v ie w of industry best practices in order to ensure greater success going forward. The new project direction required that candidate departments comm it to scanning all current documentation and resolving their organization/access methods prior to moving forward with any contracts to scan their document backlog. IT ha s continued to provide technical support to departments/agencies based upon results from the formal agency readiness assessment completed in .FY15. However , overall progress has been minimal due to competing priorities a nd limited staffing resources in the targeted depaitments /age ncies. Moving toward new procedures that include structured, timely scanning of documents on a "c urr ent day forward" basis bas proven to be c h a ll enging due to other operational demands. Again, this fundamental process change must be implemented before successfully pursuing backlog scanning projects. The recent Council resolution on electronic r ecords storage will help to move this initiative forward by allowing departments /agencies to dispose of paper records that have been scanned. Managing the ph ysical storage of paper records has l ong been an issue for the County , and this resolution makes it clear that our current paper sto r age needs can be nearly elimjnated by adopti ng operational changes that incorporate scamting of records. Eliminat in g the requirement for paper r ecord storage provides additional incentive to make record/document scanning a priority, and we anticipate increased progress in the comi11g fiscal year. ln preparation for this expected increase in scanning activity, IT comp leted an upgrade to the underlying infrastructure for document imaging to ensure that scanning and retrieval operations for all department users remain reliable /efficie nt as work on this project proceeds. Additionally, IT continues to provide training and support to other agencies who are working independently to implement /m anage their respective docwnent imaging programs. As these effo11s continue and document imaging expands, it is anticipated that additional software licensing and disk storage 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. Additionally, there may be the need for new scanning equipment as more agencies transition toward electronic records. There is approximately $137K remaini ng 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 FY 13 budget cycle to include deliverables addressing Critical Maintenance , Improved Access to In fonnation & Services, Architecture Foundation Improvements, and Scanning CapabiJities & Paper Elimination Solutions. There is approximately $23 IK remaining i.n the allocate d CIP funds for this project which will be used to pursue the listed infrastructure maintenance and 2017 Budget Presentation Department of Financ e Page 27 improvements required to move the County forward. FYl 7 infrastructure projects are expected to use the remainder of the se CIP funds with mo s t of those funds actually being applied later in FY16. While FY16 progres s ha s been slower than anticipated due to limited resources. there have been some key achievements on this project. o Completed procurement and impl ementation for critical system upgrades including the Sungard ERP system a nd the countywide VOIP phone system . Upgrades included hardware and software for the se enterprise systems required to run County operations. The upgraded platfonn s wiU help to maintain reliability and efficiency for these key services. o Negot i ated cost-effective agreements to upgrade the Co unty 's Internet bandwidth as required to address growing access demands including remote /mobile operat i ons , webcast s tr eaming (e.g. Council m eetings), webs ite transaction processing, and expanded use of cloud -b ased solutions . Internet bandwidth upgrades are underway and schedu l ed for completion in Ql /Q2 20 16. o Improved and expanded our virtualized serve r environment to provide better perfonnance , flexibility , and redundancy for all server-based functlons. Continued the transition of older servers into the virtual environment , as well as evaluation of Virtual Desktop ln frastructure (VDI). VDI technology is being evaluated as a possible alternative to traditional P Cs and cou l d have major benefits including a decrease in costs for end-of-life rep l acement and ongoing maintenance . Our VD I evaluation will be completed later in 2016 and considered for targeted deployments in 2017 based upon findings. o Upgraded network cOJmections to 11 remote sites providi11g faster connectivity to centra li zed application services , and eliminating annual DSL costs of approximate ly $4K . Jnitiated efforts to review ru1d upgrade our existing network sw itch infrastructure. This network switch project w ill deli ver faster connectivity between all fiber connected locations , while saving nearly $ l 7K in annual e le ctrica l costs due to new equipment power efficiencies. Addit1onally, the new equipment will be "right-s1zed'' to our needs rather thru1 si mply purchasing a new /equivalent version of what currently exists. Upgrading to a more suitable version of our network switch equipment wilJ save approximately $42K in upfront investment costs. The network switch upgrades are scheduled for completion by the end of2016. o Continued research on a Forms Management & Workflow solution that will reduce paper and increase efficiencies across the County by elim inating the need fo r paper fonns , automating workflow associated with fonns processing , and allowi n g for electronic signatures on forms without the current prin t/s ign/scan/email process used today. Established plans to initiate procurement in Q2 2016 followed by a limited pilot roHout before eventually expanding to all departments /agencies. 2017 Budget Presentation Department of Finance Page 28 • PAYROLL/PERSONNE L SYSTEM Due to fiscal constraints precluding the pur c ha se of a new, s ingle-system solution (estimated cost over $1.0M), the Director of Finance made a decision in FYI 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 fof\.\/ard based upon our in-house knowledge of the syste ms , processes , business r equirements, and challenges. This working group, known as the HRIS Task Force, include s representation from HR Administrative Services and HR Payroll , as well as support from IT. Overall progress on this project continues to be slow due to several factors including operational transitions within DHR , and systemic issues with the Payro ll process involving multiple age n c i es . DHR has filled key vacancies which has allowed them to dedicate project staff on a more full-time basi s. This will he l p to accelerate ongoing efforts to push existing projects f01ward while concun-ently developing a strategic plan for how DHR will manage their expanded operations. This plan will assist with identifying specific business requirements that can be used to drive additional changes and automation. Despite these collective challenges , the HRJS Task Force has achieved the following in FY 16. 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 reque sts 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 p1int pay stubs on paper with each payroll cycle. Go-live for new Emp l oyee Self Service add-on module was delayed due to required hardware /software upgrades to the Sungard ERP system which have since been completed. Implementation is cun-ently moving forward and the service is expected to come on-line before the end FYI 6. o NeoGov OnBoarding -Completed procurement and implementation of this NeoGov add -on service providing DHR staff and new employees with an automated solution to manage the onboarding process and its fo1ms. This eliminates nearly all of the paperwork, and optimizes the time consuming procedures that are currently associated with proce ssi ng new hires. Selected applicant info1mation flows directly into NeoGov OnBoarding from om existing NeoGov Recruitment service. Next s teps includ e interfacing Neo Gov OnBoarding with the Sungard ERP system to provide more new hire information that will automa ti cally flow into the payroll /personnel process. The interface is currently under discussion with plans to complete the interface in FYI 7. o NeoGov Performance Evaluation -Completed procurement for this add-on serv ice and initiated implementation activities. This new module will allow departments /agencies to automate and s treamline their performance review activities while providing DHR with centralized insight and management 2017 Budget Presentation Department of Finance Page 29 capabilities. Currently working on plans for a pilot implementation with KFD starting in Q2 2016. The pilot is targeted for completion by the end of 2016, with rollout to other departments /agenc i es to follow in 2017. o Executime Tim e/A ttendance Completed procurement for a new Time /Attendance solution that will be tightly integrated with our Sungard ERP system. Executime is a strateg i c partner with Sungard and has successfully implemented their software with many other Sungard clients. The contract is structured as a multi -phase project with the initial phase being a small , pilot rollout for selected groups. The initial contract inc l udes "design" services for all County departments /agencies in order to ensure that we develop a comprehensive implementation plan that will be u sed to drive the phased rollout. The imp l ementation kick-off meetings for the new Time /Attendance so l ution are be i ng scheduled for March / Apri l 2016 with implementation to follow. The initial pilot phase is expected to go-live before the end of 2016. 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 $ l 46K i n 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 Counci l approved $ 180K in CIP funds for thi s project as part of the FY 15 budget cycle. The scope of the project includes all softwa re 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 Prope1iy Collect i ons , and Driver Licensing to support various revenue collection activities including: real property taxes , motor vehicle registrations and ta.gs , sewer foes, landfill fees, and other miscellaneous payments. Upgrading this system to a new , modem so l utio n is req u ired to sustain and imp r ove 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 nanrre of our existing system and the historical knowledge of our cu1Tent vendor, we have planned to pursue an exempt procurement with System Innovators so that the County can seamlessly upgrade our cashiering system to iNovah. The exemption process for procuring the iNovah solution from System Innovators was successfully completed and contract negotiation s were initiated in late 2015. Negotiations are nearly complete at this point , and we expect to sign the contract in March/April 2016. Our goal is to complete the associated implementation and go -live by the end of Q2 2016. Working with our existing vendor to implement this as an upgrade (although substantial in tenns of effort) should allow u s to meet this very aggressive timeline. 2017 Budget Presentation Department of Finance Page 30 COUNTY OF KAUA'! Department of Finance Treasury /Driver License /Motor Vehicle Registration Divisions 2017 Budget Presentation 2017 Budget Presentation April 7 , 2016 Ken M. Shimoni s hi Director of Finance Sally A. Motta Deputy Director -- Halo Halo zozo Growing Kaua'i responsibly. Department of Finance P age 3 1 Department of F in a nce T reasur y/ Dri ver's License / Motor Vehicle R eg istration I Mission To provide prndent financial management, Motor Vehicle Registration and Driver License services to the people of Kaua 'i and the government agencies (County, State and Federal) that we serve. II Successes and Achievements 1.) REAL I.D. (Act of 2005 )-commencing May 11 , 2008, full compliance was achieved on August 27, 2013 and continues today to balance the Department of Homelan d Security's (OHS) responsibi l ity to ensure that driver's li censes and identification cards int ended to be used for officia l Federal purposes meet certain statutory and regulatory requirements. ''Offic ial purpose" as defi11ed in the Act and the regulations includes, but not lim ited to , accessing Federa l facilities and boarding Federal regulated commercial aircraft. a.) The facility Security Floor Plan (SFP) i s near completion. The County of Kauai (all count i es ') SFP is necessary and an integral part to help the State of Hawaii maintain "Real I.D. Full Compliance". The SFP include s: security cameras, motion detectors , entry /exit devices, Fraudulent D ocument Recognition tra inin g (FDR) and Security Awareness Tr aining (SAT) for all Driver Licensing staff members. The SFP intent is to prevent public access to sensitive equipme n t , card production materials storage locations , Sensitive Security Information (SS l ) and P ersonal Identifiable I nfonnation (PJI). The SFP will monito r the D river License Di vision during hours of o per ation and during closing time . b.) Upgra d es of I T infrastn.lcture or systems ove rh a ul (including m odernizatio n of lT sys t e m s to e n s me a ll in-Stat e DM Vs a r e interoperab l e), softwa re upgrades to improve the abibty to protect personal id ent ity in fonnation , a nd e n s uring the ability to use electron i c immigrati on ve rific ation system. c.) D ocument secwity enhancement , including the deve l opment of more tamper-resistant documents with enha nced security features , and the use of facial recognition software to detec t a person with multiple identity documen t s or social security numbers. d.) Equipment upgrades , includ ing document scanners , high-resolution digital scanners, and high-speed printers , and e.) Ree n ginee ri ng of business practices , including converting to over the counter issuance to a more secured central issuance process , minimizing the potential for insider fraud. 2.) LEGAL PR ESENCE (Act 38 , SLH 2010 and Sec. 19-122-305 HAR) -enacted by the State to comply with the REAL l.D. ACT. This r equires that the county examiner of drivers to verify that a person applying for a driver 's license is legally present within t he State by providing evidence of lawful status, and ties l ength of stay with the Hawai'i l earne r's pennit , dri ve r 's licen se, and state identification card 's expiration date. 2017 Budg et Pr ese ntation D e p artme nt of Fin a n ce Page 32 Act 310 , transfer of State ID (SID) function to respective County's Driver L icense Department , effective January 02, 2013. 3.) Hawai'i's LIMITED PURPOSE DRNER 'S LICENSE, PROVISIONAL DRIVER'S LICENSE AND INSTRUCTION PERMIT , effective January 2016. A Limited Purpose credential does not require documentary proof of "legal presence " and /or proof of a social security number. The term "legal presence" is defined as a person who is either a U .S. citizen or is l egally authorized to be in the U.S. The Limited Purpose Driver 's license a r e issued as a license to operate a motor vehicle on public highways. Limited purpose credentia l s are not REAL ID compliant and t h erefore , not exc l usively accep t ed by the TSA to board a commercial a i rcraft or enter federal fac ili ties. Add i tional screening and/o r documents may be required. l n addition, these credentia l s are not accepted for fe d eral official purposes and do not establish eligibility for employment, voter regjstration, or public benefits. 4.) The Motor Vehicle Registration division processed over 126 ,000 transactions in FY15. 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, coJlects sewer payments , issues and collects solid waste tipping fee c oupons and payments , collects commercial refuse payments, and registers bicycle s and trailers. MVR is also responsible for assembling the cash receipts as well as retaining the payment records. R emarkably , al l of thi s is done with a staff of only 10 employees , which explains why there are often long customer l ines at the MVR division. 5.) Driver ' Licensing administered the Legal Presence program during FY13, the H awai'i Limited Purpose Driver License in January 2016 and has been enforcing the federally mandated REAL ID Act. These new programs requ i re a significant increase in the types of l egal identifica t ion required before Driver's Licensing can issue a state driver 's l i cense or State ID card, the latte r which became a County function in January 2013. B oth customers and staff have had to adapt to these more r i gorous Licensing and identification requirements. While the number of licensed drivers on Kaua'i has not significantly iJ1Creased, currently at 52,998 for FY2014 , the processing time for validating the applicant's legal identification has been lengthened substantially to meet state and federal requirements. 6.) Driver Licensing safety glass was installed , October 20 I 5 , at each work station where employees interact with the public. This requirement was finally fulfilled from growing c oncern from the Driver License Staff about employee safety. Ill C hall e n g e s Staffing For Motor Vehicle Registration (MVR), our staff to work ratios make it difficl1lt to provide quality customer se r vice, while concurrently trying to maintain timely reporting . T his is due to 2017 Budget Presentation Department of F i nance P age 33 absenteeism, normal vo lum e growth. unfunded mandates , without additional resources. There are certainly peak periods, daily around lunchtime, after a weekend o r a holiday and at during the first and last weeks of month. Our customer line for payment p rocessing of sewer payments, tipping fee coupons, bus p asses, landfill payments, commercial r efuse collec tion and vehicle registration is typically much l onger during these peak times. Trying to find a balance between providing the public with quality customer service and serv icin g our internal departments with timely reports continues to be a challenge. ln addition, for Driver's Licensing the increased vo l ume of documents needed to be processed , due to a number of federal and /or state govenunent mandates have led to additional requirements o r processes for the County. All of these factors make it difficult to maintain and provide quality customer serv i ce. Success ion 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. These three divisions have a current position head count of 24 with one ( l) posit ion vacant for a total of 25. The Treasury has 2 positions, MVR has l 0 (2 State funded), and D /L has 13 ( l County position is vacant , 6 State funded). A total of eight (8) personnel, 2 in Treasury, 2 in MVR and 4 in D /L are eligible now or wi ll become eligible to retire in 2017. This does not include emp .loyees who may be searching for other employment opportu nities who may leave even sooner. Structural The Treasurer i s re s ponsible for managing the collection, custod y, protection of our moneys , investment portfolio , debt portfolio (which includes post-issuance compliance), and a l so for overseeing the MVR staff of ten (I 0) and the Driver Li cense staff of thirteen ( 13). None of the ot h er Counties in the State have their Treasurers acting as administrators for the D epartment of Motor Vehicle functions as part of their responsibilities. In fact, the other Co unties ha ve OMV Administrators at a salary level equal to or greater than their Treasurers. As the duties and responsibilities at MVR/DL continue to grow , reassessing the Treasurer 's role as the MVR/DL s upervisor sho ul d be and needs to be evaluated. IV Goals and Objectives Increase the utilize document imaging to r e du ce s torage needs and to provide historic records tha t are readil y retrievable at the Mot or Vehicle Registration division. T hi s area will need a scanning contractor fo r the backlog that has accwnulated since the last contract. And , they will need document scanners at each work station to mitigate the ongoing accumulation of records . 2017 Budget Presentation Department of Finan ce Page 34 V Budget Overview All three of these divisions have FYI 7 budget requests that show nominal growth Treasury and Dri ver's License or nominal increases in Motor Vehicle Registration (MVR). No new positions were added. However, ideally, there needs to be at least one (1) new position added in MVR. Department : ANANCE. Division: T REASURY 5alary and Wages Benefits utmtes Vehde/Equip, Lease Operatbns FY 2016 178,629 87,831 0 1 z 266,468 FY 2017 187,169 89,254 0 1 z 276,431 $+I - 8,540 1,423 0 0 Q 9,963 0 /o +I - 4 .8% 1.6% 0 .0% 0.0% 0.0% 3.7% FY 2016 Operating Budget FY 2017 Oper a ting Budget •Salary and Wages 0 %--22!--0% •Salary and Wages •Benefits Utilities •Vehicle/Equip, Lease • Operations FY 2016 and FY 2017 Comparison •Benefits Utilities •Vehicle/Equip, Lease •Operations 200,000 ....---------------------------~ 180,000 160,000 140,000 120,000 100,000 80,000 60 ,000 40,000 20,000 0 Salary and Wages 2017 Budget Presentation Benefits Utilities Vehicle/Equip, Lease Department of Finance Operations •FY 2016 •FY 2017 P age 35 Department: FI NANCE. Division: DRIVERS LICENS E FY 2016 FY 2017 ~ + L -%+[- Salary and Wages 318,519 324,909 6,390 2.0% Benefls 185,340 190,995 5,655 3.1% Utities 0 0 0 0.0% VehK:e/Equip, Lease 6,500 3,000 -3,500 -53.8% Operatbns 103.350 ~ -3.600 -3.5% 613,709 618,654 4,945 0.8% FY 2016 Op e rating Budget FY 2017 Op e rating Budget •Salary and Wages •Benefits Utilities •Vehicle/Equip, Lease •Operations FY 2016 and FY 20 1 7 Comparison 300,000 250,000 200,000 150,000 100,000 50,000 0 Salary and Wages 2017 Budget Presentation Benefits Utilities Vehicle/Equip, Lease Department of Finance •Salary and Wages •Benefits Utilities •Vehicle/Equip, Leas e •Operations Operations •FY 2016 •FY 2017 Page 36 Driver 's Licensing Di vis i on Consolidation W o rk sheet w ith funding sources: DR V ER 'S UC E NS NG -CONSOL OAPON WORKSHEET e l e obj acctdesc Gene r al Fund State Grants Total 'Ot 'Qi REGULAR SALAR I E S 562 -CH I EF EXAM I NER ANO MOTOR VEH I CLE I NSP .-S R24 51 ,570 51 ,570 288-DR I V E R LI C E NS E E XAM I N E R/I NSP E CTOR-SR20 57 ,822 57 ,822 241 -0R I VER LI C E NS E E XAM I N E R-SR15 40 ,9 47 40 ,947 213 -SEN I OR MOTORV E H F I N R E SPONS I B ILI TY CLK-SR!S 52 ,4 78 52,478 301-0R I V E R LI C E NS E CLERK lf -SR12 36,762 36 ,762 308-DR I VER LI C E NS E CLERK ll -SR12 44.0 2 4 44,024 234 -S E N I OR CLE R K -S RlO 30 ,306 30 ,306 243-MOTOR V E H I CL E PRO G R A M TE CHN I CIAN-SR17 * 5 4 ,5 12 54 ,512 251-0R I VER LI C E NS E CLERK 1 -SR12 * 3 9 ,486 39 ,486 238-0R I VER LI C E N SE E XAM I N E R & I NSPECTOR-SR 1 6 * 44 ,226 44 ,226 252 -MO T OR VEH I C L E CON TR OL I NSPECTOR-SR18 * 45 ,733 45 ,7 33 250 -MOTORVEH F I N R E SPONS B ILI TYCLERK-SRl 49 ,608 49 ,608 247 -0R V ER -L C E NSE 35 ,721 35 .721 313 ,909 269 ,286 583 ,195 '02 "01 R E G U LARO V E ~ M E 5 ,000 5 ,000 0 3 ,. 01 PREM.UM PAY 6 ,000 2,700 8,700 'Os "'01 SO CI A L SEC U RITY CONTR I BU 24 ,874 20 ,600 45,474 '02 HEALTH F UND CON T R I BUT ON 49 ,150 41,846 90 ,996 .. 03 R ET I R E M E NT CONTR I B UTION 52,798 4 5 ,n9 98,577 r 04 WORKERS COMP E NS A TION TT D 1 1 ,.05 WORKERS COMP E NSATION MEO 1 1 "06 UN E MPLOYM E N T COMP E NSATION 1 l "12 O THER P OS T E M P LOY BE N EF IT 64 ,170 5 4 ,66 5 118,835 2 4 .... 00 T RA I N I N G 1 ,250 1.250 y 30 "oo OTHER SERV I CES 85 ,000 18 ,000 103 ,000 '"u "oo DUES AND SUBSCR I PTIONS 5 00 500 ~02 R&M E Q UI PM E N T 1 .000 1 ,000 's1 "oo PR I NT .NG 4 ,000 4 ,000 ,.. 61 ,. 01 O F F CE SUPPL E S 2.500 480 2,980 ,. 02 OTHER SUPP LI ES 2,500 2,500 " ... 67 00 OTH E R COMMOD ITI ES 3 ,000 3 ,000 "68 ""oo POSTAG E ANDFR E GHT 240 240 .,,- 89 ,. 01 EQ U P M E NT 3 ,000 3 ,000 ,. 03 COMP U TERS ANDACC E SSOR E S 0 ,. 05 L EASED 0 618,654 453,596 ion .250 2017 Budg et Presentation Department of Finance Page 37 Department: FINANCE. Division: MOTOR VEHICLE FY 2016 FY 2017 ~ + L -OJo + L- Salary and Wages 360,093 370,112 10,019 2 .8% Benefits 186,941 18 8,87 4 1,933 1.0% UtHites 0 0 0 0.0% Vehte/Equip, L ease 0 0 0 0.0% Operatbns 243 ,678 2 4 8,729 5.051 2.1% 790,712 807,715 17,003 2.2% FY 2016 Operating Budget FY 2017 Operating Budget •Salary and Wages •Benefits Utilit ies •Vehicle/Equip, L ease • Operat i ons FY 2016 and FY 2017 Comparison 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Sala r y and Wages 2017 Budget Presentation Benefits Utilit i es Veh i cle/Equip, Lease Department of Finance •Sa l ary and Wages •Benefits •Uti lities •Veh i c l e/Equip, L ease •Operat io ns Operations •FY 2016 8 FY 2017 P age 38 Motor Vehicle Registration Di v i sion Consolidation Work s heet with funding sources : MOTOR VEHICLE REGISTRATION -CONSOLIDATION WORKSHEET ele obj acct desc General Fund State Grants Tot a l .,,. r- 01 01 REGULAR SALARIES 153-ACCOUNTING TECH .-SR15 49,608 49,608 235 -MOTOR VEHICLE REGISTRATION OFFICER-SR22 56,202 56,202 154-VEH. TITLES AND REGISTRATION TECH .-SR13 47,760 47,760 152-VEH. T IT LES AND REGISTRAT I ON TECH.-SR13 48,148 48,148 229-VEH. T I TLES AND REGISTRAT I ON TECH.-SR13 49,608 49,608 236-VEH. T I TLES AND REGISTRAT I ON TECH.-SR13 44,226 44,226 278 -VEH. TITLES AND REGISTRAT I ON TECH.-SR13* 39,486 39,486 228 -VEH. TITLES AND REGISTRATION TECH.-SR13* 39,486 39,486 287 -TREASURY SUPPORT CLERK-SRll 33 ,918 33,918 242 -SEN IOR CLERK-SRlO 31,242 31,242 360,712 78 ,972 439,684 ,, r 02 01 REGULAR OVERTIME 7 ,900 2 ,000 9 ,900 03 ,, 01 PREMIUM PAY 1 ,500 200 1 ,700 ,,- OS ,, 01 SOCIAL SECURITY CONTRIBU 28 ,314 6 ,041 34,355 ,, 02 HEALTH FUND CONTRIBUTION 27 ,315 5 ,980 33 ,295 ,, 03 RETIREMENT CONTRIBUTION 60 ,143 13 ,425 73 ,568 ,, 04 WORKERS COMPENSATION TTD 1 1 ,, OS WORKERS COMPENSATION MED 1 1 ,, 06 UNEMPLOYMENT COMPENSATION 1 1 ,, 07 COUNTY RETIREE PENSIONS 0 ,, 09 MILEAGE 1 1 ,, 10 OTHER EMPLOYEE BENEFITS 1 1 .. 12 OTHER POST EMPLOY BENEFIT 73,097 16,031 89,128 ~-.. 30 00 OTHER SERVICES 60,560 60,560 -,. OS R&M COMPUTERS 38,100 38,100 ,,-,, 5S 00 ADVERTISING 200 200 .,. ,, 57 00 PRINTING 3,000 3 ,000 ,,-,, 61 01 OFFICE SUPPLIES 6,000 6 ,000 ,, 03 CONTROLLED ASSETS 5 ,600 5 ,600 ,..-,, 62 01 OTHER SMALL EQUIPMENT 1 1 , ,, 67 00 OTHER COMMODITIES 135 ,268 135 ,268 807 ,71S 122,649 930,364 VI Vacant Position(s): Po s . 562 -Chief Examiner and Motor Vehicle Inspector SR24. Po s ition is currently under review for possible upgrade to "Driver's License I Vehicle Regi s tration Supervisor". 20 17 Budget Presentation D epartment of Finance Page 39 C O UNTY OF KAUA'! Department of Finance Real Property Assessment Division 2017 Budget Pre s entation A pril 7, 201 6 ------ Growing Kaua'i responsibly. 2017 Budget P resentation Department of Finance P age 40 I M i ss ion D E PAR TMENT O F FINANCE Real Proper ty Ass es s m e nt Di v i s ion The ReaJ Property Assessment Division ,s mission is to accurately and uniformly assess all real property within Kaua'i County annually ; maintain CutTent ownership and taxpayer address records; create and maintain up-to-date tax map s; provide public service education and infonnation through our front desk and our website locations; and administer numerous tax reli ef programs in an efficient and fai r manner. II Success and Ac hievements • RPA continues to make improvements to property data integrity and has in vested in teclmologies , such as Pictometry and Assessment Analyst , to assist in finding additional improvements that need to be added to the assessment without added staff. Assessment Analyst has moved out of the pilot phase and into the first production phase with up to 3,600 propertie s slated to be reviewed and geo-referenced for the 2017 assessment year. • The implementation of ··market modeling " ha s in c rea sed efficiency and accuracy in assess i ng re s idential properties , as evidenced by st rong sales-to-assessment ratio s (ranging from 96.7% to 98.5% in the 3 residential mod e l s). In ves tment in technology has allowed RP A to eke by at essentially the same staffing level for over two decades in the face of growing parcel counts and in creases in construction. Notwithstanding our efforts to remain at flat staffing levels , however , t h ere ha s been demand for our division to update non-taxable structures (low priority -not revenue generating), rigorously police Agricultural dedications , and apply pressure to State agenc i es to provide u s with timelier lease infonnation. I t shoul d be noted this additiona l compliance work , on top of our tax classification compliance work will require additional focused staff, unless we defer our division 's two top priorities -accuracy of valuations and add ing new improvements to the taxab l e base. • RP A was tasked with implementing new ordinances as well as carrying forward the work assoc iated with the prior ordinances passed in 2012 , 2013 & 2014. Ordinance 977 allowed for retroactive reclassification of propert i es for the 2014 assessment year with the resulting credits, i f any , to be processing no later than the second half payment associated with the 2015 payment. There were 100 appl i cants that filed for tax class reconsideration. Of those 100 that applied , only 46 were found to be deserving of revised tax classifications and $95,965 in taxes were refunded as a result of these reclas s ifications. A bill to cap assessments for owner-occupied and affo rdable long-term rental p r opert i es was recently adopted , and RP A w ill need to focus on ways to implement the capped assessments while still managing adjustments for missing additions , renovations, and other site improvements , in order to maintain uniformity and equity. • The annual certification of the assessment list continues to be completed well before the March 15 111 deadline. This year's 2016 assessment list was ce 11ifi ed on February 19 , 2016. 2017 Budget Presentation Department of Finance Page 41 • RP A's tax relief measures were well utilized with 1 ,418 approved income exemptions; 1 ,157 approved Long-Tenn Affordable Rentals; and 306 approved Very Low Income credit applicants . Ordinance 995 , which was implemented in late-2015 , extended the Long Tenn Affordable rental filing deadline and held rents flat from 2015 levels, allowing 42 additional property owners to be approved and classified as "Homestead " for tax rate purposes. The number of prope11ies that are classified as Homestead also grew slightly from 11,466 in 20 15 to 11 ,583 in 2016 despite the previous to cunent year reduction of 282 Long-Te1m Affordable Rentals. • Another FY 16 achievement is the creation of Administrative Rules regarding tax classification based on use. Having promulgated rules takes away most of the ambiguity when it comes to detennini11g which tax class should be associated with various types of property uses . • Staffing at the Real Property Assessment division has gone from a challenge in FYl 5 to a success during FYJ 6 as many of the hard-to-iill vacancies , including the Agricultural Land Use Inspector, have finally been filled. At the beginning of FY 16 , there were five vacant positions and by the middle of FY16 it was up to 6 vaca ncies . As of the date of this budget submission , the last vacant position in RP A, a G IS Analyst II, is in the process of being hired with an offer having been made to the selected candidate. Although these recent hires only brings our djvision back to the personnel level we had in the 1990 's, at least we are no longer operating shorthanded in some of our highly specialized fields of discipline. This division 's efforts can now shift from recruitment to staff development and position training for the remainder of FY 16 and into FYI 7. • RP A and Civil Defense are cos t sharing the Schneider Corporation contract , which includes both the qPublic website for real property infonnation and 1he recently acquired IDAM solution. IDAM allows the real property assessment data to be captured and populated directly into FEMA's fonns needed to report damage estimates. IDAM also allows disaste r areas to be easily identified using GIS map s with the infonnation expo1iable to field tablets for quick site verification. ill Challenges Implementation of Software Solutions and Ordinance Changes vs . Annual Workload In July 2015, RPA and RPC completed the conversion , testing and implementation of our assessment and tax billing software from a server -based solution to a web -based vers i on . In addition to obtaining the latest version of the IAS softwa r e , there is an added benefit of having our data hosted in the Cloud which provides offsite backup in the event of a system failure or catastrophic event. Two field mobile tablets were purchased last year and are still in the iesting phase with the assistance of the IT division. Before requesting additional tablets for the appraisal staff, RP A wants to verify that these devices truly create departmental efficiencies in tenns of time savings and productivity. In Ap1il 2016 , RPA will be replacing Kaua 'i 's locally developed cost tables with software embedded cost tables from Marshall & Swift , the nation's leader in cost estimating. With the latest tax relief measure , the passage of the assessment cap (Ord. 997) in February 2016 , RPA will need to work with our software vendors and programmers to seek programing solutions to deal with the year-to-year changes in building characteristics both within the IAS 2017 Budget Presentation Depar t ment of Finance Page 42 World software and as moved from Assessment AnaJyst to IAS World through the extract, transform and load (ETL) process. It will be somewhat difficult to establish the calculations that both pre serve the three-percent (3%) assessment floor and ceiling from the prior year's assessment while simultaneously allowing for new construct i on, renovations, and othe r building characteristic changes initiated by the owners to be excluded from the cap. Finally, there is an ongoing focus group (RPA, Planning , Public Works , IT , and Mayor's Office) that is exp l oring 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 pro cesses, 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 a dditional tasks into the annual assessment ca lendar of duties which include appeal casework , fieldwork that focuses on new and omitted improvements , land valua tion , market modeling , adm ini strat ion of "tax on use" surveys and correct tax classification, creating assessment notices, and back to appea l s by December . Staff Training and Education Another cha ll enge, which admittedly is a good challenge to have , is that with t he newly acquired staff as well as the three newest technologies implemented , comes the responsibility to train and educate them. Wh il e the loss of experienced personnel can be hard to absorb, especially in an organization li ke RP A that has such highly specialized dutie s and ski ll sets and bound by complex ord in ances, it can also be an opportunity to hear fresh perspectives and to review o ur current procedures. Ine vitably, as new staff and trainers begin their training on existing procedures and new technology requirements it typically l eads to questioning why things are done a ce 1 1ain way. In tum , this questioning can either result in responses that reinforce our policies and procedures or it can cause management to relock at t h e status quo. Innovative ideas and the introduction of new technologies seems to be more prevalent in departments that have staffing change as compared to those that hav e limited or n o turnover. And, aJthough there likely will be some lost producti vity and possible training costs during the irutial staff developm e nt phase, the time invested upfront s hould pa y dividend s in the lon g run. Limitations on Office Space The Real Property Assessment division is literally busting at the seams. B y trying to keep staffing levels flat for a number of years, we have invested heavily in technology such as large dual monitors , large-scale scanners and printers , and other equ ipm ent that tends to take up space. Furthermore , because four to five positions had remained vacant for the past two years the lack of space was not readily known until we began filling these vacancies. To address the lack of space, we have cleaned out the storage room by disposing of broken and obsolete equipment and furniture , moved shelving and file cab inet s from our work area to the downstairs storage room , and reduced the desk space allocated to each employee. Yet, despite these efforts, it appears that RPA w ill s till need additional space to accommodate daily operations. This year's CIP budget doe s include monies for designing an electrical plan for RP A, and Publi c Works Engineering has graciously offered to assist RP A with the office layout redesign which will likely involve moving the front counte r s forward several feet. As an interim so luti on, it is po ssible that RP A may need 2017 Budget Presentation Department of Finance Page 43 to consider some fonn of desk sharing by rotating fieldwork and office work assignments; however that may be also prove problematic on days with inclement weather. Lack of Vehicles In years past , RP A used to have 5 dedicated vehicles; today there are only 2. Until such time as the countywide motor pool gets reestablished, there will be undoubtedly be a sh01tage of vehicles from which the staff may use to conduct field inspections, typically 3-4 days a week. This could result ih some lost productivity and it will certainly require the staff to place a greater emphasis on scheduling and sharing this limited resource . No netheless , the RP A staff realizes that having underutilized county vehicles privately assigned to specific divisions is a luxury that our taxpayers simp ly cannot afford to finance ; therefore , RP A enthusiastically supports getting the motor pool back up and rwming to fill the cunent vo id in vehicle availability. IV Goals and Objectives All Hawai 'i counties have completed their upgrades to the newest ve rsion of the assessment software (lAS World) and will be completing the installation of the Hawai'i specific cost tables that were developed by Marshall & Swift. Kaua 'i County is scheduled to complete the Marshall & Swift conversion in Ap1il 2016, and these tables will be used in the 2017 assessments. 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 tend to be very limited and/or highly diverse properties. Moving the Assessment Analyst software program from the pilot phase to the production phase was a challenge; however the bigger chaJJenge, which will become a significant goal for RP A, will be how we integrate the newly found building characteristics from a third-party vendor to the IAS World software while simultaneously taking into account the assessment cap. A continued goal will be to maintain high assessment-to-sales ratios in the upper ninety percent levels for our upcoming 2017 assessment cycle while continuing to find ways to reduce the number of outliers with assessment-to-sales ratios that vary by more than 15%. Consolidating the number of residential neighborhoods should allow the market modeling method to extract better comparable sales, therefore this will be a goal for the appraiser for the 2017 assessments. V Budget Overview FY 2016 FY 2017 $+or- Sala1ies & Wages 956,112 1 ,007 ,657 51,545 Benefits 515,970 544 ,391 28,421 Utilities 720 720 0 Vehicle /Equipment , Lease 5 ,502 6,002 500 Operations 441 ,532 434,409 (7 ,123) Total l,919,836 1,993,179 73,343 2017 Budget Presentation Department of Finance Page 44 FY 2016 Operating Budget FY 2017 Operating Budget 0% 0% • Salary and Wages •Benefits •Utilit i es •Vehicle/Equip, Lease • Operations 0% 0% FY 2016 and FY 2017 Comparison 1,000,000 800,000 600,000 400,000 200,000 0 Salary and Wages 2017 Budget Presentation Benefits Utilities Vehicle/Equip, Lease Department of Finance Operations •Salary and Wages •Benefits •Utilities •Vehicle/Equip, Lease •Operations •FY2016 8 FY 2017 Page 45 C O UNTY OF KAUA'I Department of Finance Real Property Collections Division 2017 Budget Presentation April 7, 2015 -- Growing K.aua'i responsibly. 2017 Budget P resentation Department of Finance Page 46 I Mission DEPARTMENT OF F I NANCE 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 custod ial responsibilities for all rea l property tax records. II Successes and Achievements • Redu c tion in Delinquent A ccount s As of February 29, 2016, there was a total of $1,394,598 in delinquent property taxes and associated penalties and interest from tax years 1 997 to 20 14. Additionally, there is also appToximately $62,939 in outstanding refuse collection fees wh ich brings the total uncollected amount for prior tax years to $1 ,457,537. Inasmuch as there are still second half payments to be posted for the 2015 taxes, it would not be appropriate to characterize the outstanding 2015 taxes as delinquent as of the date this report was written. Nevertheless , the amount of outstanding taxe s from prior years continues to decrease. By compa ri son , the total prior year delinquencies for both property taxes and refuse fees were at $1,871,352 as of the same period last yea r which means a reduction in delinquencies of approx im ately $413,815. • Pa y ment Agreements Every effort is made to meet with taxpayers and establish manageable Paym ent Agreement Plans to avoid foreclosure and repay the delinquent taxes as quickly as possible. A good faHh payment is required at the execut ion of the Payment Agreement P l an a nd as long as the schedu l ed payments are paid in accorda nce with the plan , no fore clo su r e action will be initiated. As of 02 /29/2016 , R P C h ad 61 Payment Agreement P l ans exec uted. Thi s w ill generate a monthly income of $68,380 and collected toward outstanding del in quent taxes as follows: • Forec l osure S al e: Unfortunately, when taxpayers are either unresp o nsive or unwilling to enter in to Payment Agreement Plan s, the County i s 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. On May 6, 2015 , there was only one property that sold fo r $415,000 which in tum extinguished a $14,174 property tax lien and brought that account current again. The balance for proceeds will remain i.n a surp lu s account where claims may be filed. Our an nual Foreclosure Sale for FYl 6 is scheduled for May 4 , 2016, at which time 11 Parcels owing outstanding taxes and fees , will be offered for sa l e: 2017 Budget Presentation Department of Fin a nce Page 47 Outstanding Tax Amount as of 03 /3112016: Total Tax Total Penalty Total Interest Total Other Gra nd Tota l ffi Cha ll e n ges • Staff T ur n o ve r and Red u ctio n in Workforce $184,213 $17 ,254 $92,036 $23 ,249 $316,752 o The loss of two Senior Account Clerks (SR 13) just prior to , and then during , the first half billing cycle of FY16 resulted in our public website showing premature penalty and interest amounts owed simply becau se the remaining staff was unable to post all the incoming payments before the software programed date for payments being delinquent was triggered. To date, only one of these two Senior Account Clerk vacancies has been filled. o Vacancy Review Committee decided that the Senior Clerk (SRlO) was not necessary for the entire year and recommended using 89-day contract hire s dwing the two 3~month billing cycles to process the added work in those peak periods. This Joss of a fulltime position will likely impact the collection of delinquencies as there will be only one fulltime position, the Tax Collection Assistant , attending to delinquencies and working on tax sale foreclosures. • S ii /Rev e n u e Collect or Upg r ade o The current Cashier System will be upgraded at the end of FY16 or early in FYl 7. The IT department is currently working with RPC and Treasw-y to implement this new countywide cashiering sys tem , iNovah, as well as making sure integration with all the other third-patty software vendors that connect to cashiering systems. Assuming there is adequate time to test the software and the integration with other vendor interfaces , we are hopeful that this transition can be accomplished smoothly and seamlessly. • D e li nque n t D ep ar t me n t of Hawaiian Home Land (DH.BL) Ta.us o Although Hawaiian Home Land lessees are no longer billed for real property taxes , many of the lessees had property taxes owed from prior years which r e main unpaid and continue to accrue penalties and interest. Additionally , while these properties are now exempt from even the minimum tax , they are still responsible for paying the refuse collection fees , and some are still not paying even these fees. o As of February 29, 2016 , the combined delinquencies on DHHL lands totaled approximately $106 ,709. o Collection efforts ha ve been relatively unsuccessful thus far , as it is di ffic ult to foreclose on lessee 's interests for leasehold properties that are restricted to residential use for people of Hawaiian ancestry only . 2017 Budget P resentation Department of Finance Page 48 IV G o a l s The primary goal of the Real Property Collect i ons Department is to bill, collect and account for all Rea l 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. Obj e cti ves • C ontinu e P a p e r Les s E ffor t s o Paperless billing notifications went into effect in July 2014. As of February 29, 20 1 6 , there are now more than 700 taxpayers choosing to receive the ir b i ll not i ces via email, which has reduced the cost of printing and mailing. As of the last billing cycle, there were 1,733 Real Property Tax bills delivered via email. • D ec r ease the amount of our Delin q u e nt Taxes o Initiate foreclosures on properties that are two or more years m arrears on property taxes owed o Assist in the canceUation of trash collection serv i ces 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 Bud g et O ve r v ie w Salaries & Wages Benefits Uti l ities Vehicle /Equipment, Lease Operations T otal F Y 20 16 Operatin g Bud g et • Salary and Wages •Benefits Utilities •Vehicle/Equip, Lease • O perat i ons F Y 2 01 6 219,824 1 39,760 0 0 101 ,123 4 6 0 ,7 0 7 FY 2 01 7 $+or- 221,725 1,901 105,421 (34,339) 0 0 0 0 105,226 4,103 4 3 2 ,37 2 (2 8,3 3 5) F Y 2017 Operating Budget 0% 0% • Salary an d wages •Benefits Utilities •V ehicle/Equip, Lease • Operations 2017 Budget Presentation D epartment of Finance P age 49 Division RP A RP C RP C 250,000 200,000 150,000 100,000 50,000 0 FY 2016 and FY 2017 Comparison Salary and Wages Benefits Utilities Vehicle/Equip, Operations Lease •FY2016 ll FY2017 Finance -Real Property Assessment & Real Property Collections Vacant Positions FY 2017 Pos. No. Position Description/Title SR Salary Status 219 GIS Analyst II SR22 $49 ,914 Offer made 272 Senior Account Clerk SR13 $33 ,918 Interviewing 275 Senior Clerk SRlO $1 89 -Day Contract 2017 Budget Presentat ion Department of Finance Page SO COUNTY OF KAUAI Department of Finance Pu .rchasing Division 201 7 Budget Presentation 2017 Budget Pr esentatio n April 7, 2016 Ken M. Shimoni s hi Director of Finance Sally A . Motta Deputy Director -- Halo Halo zozo Growing Kaua'i responsibly. D epartment of Finance Page 51 I. Mission Department of Finance Division of Purcha s in g The Division of Purchasing (DoP) is tasked with the responsibility for all infonnal and fonnal procurement of Construction, Goods and Se r vices for the County of Kaua'i. In addition, the Di vision i s responsible for: Contract for services, small purchases involving materials, supp lie s and equipment; leases , rent, and the acquisition of real or pe r sonal property; maintain control of all surp lu s County equipme nt and process all inter-office and incoming/out-going mail , and postage. II. Vision The primary vis i on of the division is to ensure full and uncompromising adherence to the requirements of the Hawaii State Procurem ent 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 16 Successes and Achievements A. Revision , A ppro va l and Implementation of th e General Provisions for Construction Co ntra cts In FY 16 , the DoP successfully coordinated nwnerous discussions and groups meetings with various County stakeho l ders in order to amend the General Provisions for Construction Contracts. These provisions remained w1changed s in ce 1973 and we r e substantial l y obso l ete. Because of the absence of an update to the se provi sions , the County adopted utilization of special provisions which totaled some 70 pages. This was needed in order to address obsolete conditions within the 1 973 document. An operational co mp one nt of the update included the incorporation of the specia l provisions within the principle document. As such , the use of special provisions will only be utilized to customize conditions specifically applicable to a particular project. The completion and update of the general provisions for construction contracts was a critical element for the division to advance its electronic procurement initiative for construction contracts. The following County departments and entities were critical in moving this initiative forward: Division of Purchasing Office of the County Attorney Department of Public Works Depa11ment of Parks and Recreation The revised documents has s ince been published and is avai l able electronically on the division of purchasing website. 2017 Budget Presentation Departm ent of Finance P age 52 B. Contin u e d Expansion of Electronic Procurement and P aper l ess Initiatives During the FY 16, after three years of various levels of research and development , tbe D oP launched its first phase of electronic procurement for co n struction projects. The new electronic procurement system, Public Purchase, through The Public Group, allows for complete electronic and paperless application of procurement solicitations for construction projects. The so licitations are l et elec t ron i cally and contractors are able to submit their offe r s electronically. It is a complete ly paperless application which has created a significant increase in division efficiency and effectiveness. This application has also been beneficial to the construc tion community in terms oft im e and cost. In addition, the electronic procurem ent system allows for bid openings to occur via the Internet. As such, traditional bid openings that occurred in the past which mandated the physical presence of contractors are no l onger n ecessary. Bid openings and other procurem ent infonnation are conveyed via the Internet. As a component of the implementation of this initiative, the DoP held extensive training with both internal and externa l customers. The purpose of the training was to familiarize the construction community with the new paperless application to develop an understanding of the new system before implementation began. The training was attended by more than l 00 persons from various segments of the construction industry. County project managers and various administrators were also provided internal customer training. The implementation of the new initiative was seamless and has been utilized exclusively by the division for all of FY 16. The DoP extends our appreciation and thanks to the construction industry for the cooperation exercised to move this initiative fmward. Special thanks is extended to the Contractor's Association of Kauai who offered its partnership and facilitation with the DoP for the past three years prior to the actual implementation of the electronic procur ement initiative. C . Co mpletion of Initiative to Develop Technology Assig nments and Delegation of Authority to All DoP Employees All identified teclmo l ogy initiatives, roles, and responsibilities which the DoP has adopted as part of its operationa l platfonn have been specifically identified, documented, and delegated to all employees. A sp read sheet which documents these assigned duties and responsibilities has been developed and posted on the DoP shared access drive for management, and review. This initiati ve wil l ensure subject matter expertise in the various areas upon which the division relies for the harnessing o f teclmologies in order to improve efficiencies and the level of service to our customers. Emp l oyees who are primarily assigned to a specific technology task or tasks are expected to develop a functional l evel of expertise and are caJled 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 2017 Budget Presentation Department of Finance Page 53 ensure broad knowledge of all functional areas a mon g all employees. Thi s le ve l of knowledge and continuity is vita l so as to ensure the reliable and uninterrupted delivery of services. D. S uc cess i o n P l a nnin g The division 's succession plan is in its third year of implementation. As we entered FY 16, all three upper-l eve l managers within the division to include the two section supervisors and the head of the division have now qualified for retirement and cou ld depart at any time . This transitional reality requires continued diligence in pur suing a succession strategy that will ensure organizational consistency and the responsible and effect i ve delivery of services after upper- lev e l managers en ter into retirement. The following s i gnificant activities have occmred in FY 16 relating to the succession p l an: Two spec iali sts have met the minimum qualification and performance requirements for movement to the Pro cure ment and Specification Specialist [V level. These reallocations are current l y pending review. Two additional journey level spec i alists priced at the Procurement and Specifications Specialis t III level will soon achieve the required minimum qualification and performance requirements to advance to the level of Pr ocurement and Specifications Specialist IV. This is the "super-journeyman" level of specialist who is able to assume the full range of procurement duties and responsibilities to include the most comp l ex matters. Reque sts for appropriate movement will occur in late FY 16 and into the new fiscal year. The reallocation actions that have been pursued as a critical component of the succession plan have been based on the need for qualified spec iali sts commensurate with the nature of the complex procurement work that the division is tasked to achieve. Comprehensive training and actual exposure to and perfonnance of the work are all prerequisites of these act ions. We believe that economic conditions will translate into a s ignifi ca nt growth in workload for major co n struction and goods and services projects into t h e new fiscal year and beyond . As we all understand, every dollar that is spent for the purchase of goods, services and construction occurs at th e DoP . There is no doubt in te1ms of the difficulties in developing an effec tive succession plan in the presence of civil service system requirements. Bu t something must be done to provide so m e assurance of operational and organizational continujty after the managers leave and to also create the mechanjsm to bring in new workers as attrition and in terna l movements impact lower level positions. The creation of specialists over teclmicians as has been discussed in prior succession presentations is far more accurate ba sed on the overwhelming majority of work performed by the division. In the presence of the significant movement toward electronic and paperless ap pli cations , there will be a related reduction in traditional clerical work. While still present in some reduced fonn , these w ill represent minimal tasks as opposed to tbe overwhelming majority of duties relating to the seven major fonns of procurement and all of the complicated tasks with the associated contracts , amendments, etc. 2017 Budget Presentation Department of Finance Page 54 The complexity of assignments that are being performed by the specialists are commensurate w ith the pricing changes and were pursued only after the required level of work was being effectively and capab l y carried out. The collateral benefit of the successio n injtiative will hopefully result in having a pool of well-trained and qualified senior specialists who will be able to fill managerial positions whe n retirements occur; to include the select1on of a new Assistant Chief Procurement Officer (AC PO). IV. Challenges A . Co ntinued Coordination to Acquire a F ull y Int egr ated E l ectronic Procurement System for Go ods and Services Contracts . Durin g FY 16, the DoP was not able to fully implement the new e l ectron ic procurement system as conveye d in the FY 15 budget presentation. While the divi sion successfu ll y imp l emented e l ectronic procurement for constmction contracts , an indefinite deferral in implementation was detennined to be the appropriate course of action for our Goods and Se r v ice s initiative. Tills deferral was related to the need for the County to conduct a formal re view and update of the General Terms and Conditions for Goods and Services Contracts. While the current version has been updated regular l y , the impact of electronic procurement and required changes requires a comprehensive review. The DoP has conducted an internal review of these General Terms and Cond ition s . As in the case of the initiative to revise the General Pro visions for Construction Contracts , the Office of the County Attorney has been tasked to conduct a legal review of these terms and conditions to ensure fu ll compliance with all applicable laws and administrative rules. We anticipate completion of this project prior to the close of the cutTent fiscal yea r . Based on completion of this project , the DoP is target in g the next phase of the e l ectronic procurement implementation for Goods a nd Services Contracts to begin in July 2016. The Goods and Services contractors have b een kept infon11ed of the pro j ected schedule. Upon successfu l execution of electronic procuremen t for goods and serv ices, the overwhelming majority of fonnal procurement responsibilities will then be exerc i sed relying upon a totally capable e l ectron i c procurement system . As noted previously, the electron ic procurement system will enable the DoP to let bids electronically and to also receive offers electronically. The creation of bid abstracts, tabulations , correspondence addressing intent to award, and actual award i ng of contracts , will be fully addressed within the capability of the system . V. Goals & Objectives Fiscal Year 2016 -2017 The Goals and Objectives section for Fiscal Year 2016 -2017 for the D o P summarizes the Division's key requirements that are deemed essential to better ach i eve our mission and service delivery to both internal and external customers. 2017 Budget Presentation Departm ent of Finance Page SS Su mm of Fiscal Year 2016-2017 Goals and Ob "ectives 1. E lectronic Signatures At the present time , because of the absence of an electronic signature protocol, depa1iments and agencies who access the DoP SharePoint Portal for use of various procurement fonns and documents , mu st ge n erate a hard copy of these documents in order to affix a written s ignature by project managers and department heads. In the presence of an electronic signature pro tocol, all of these documents can be accessed and completed electronically and transmitted via the County's emai l system to the DoP. The elimination of the need to create hard copy d ocuments only to have to scan them as email attachments will result in a substantial savings in tenns of time and money. E l ectronic signatures , coupled with the benefits assoc i ate d with Act 177 , SLH 2005 and the acknowledgment that electronic documents catTy the full force of l aw , will provide numerous efficiency opportunities for all County departments and agencies in n01mal business interactions requiring documents. B ased on licensure options being pursued by the IT division , it is po ss ible that electronic contracts that are transmitted to contractors can also be signed electronically and emailed back to the County. T hi s will be a major revision in practice and eliminate the requirement for contractors to mai l hard co py contract documents to the County for further processing an d execution. The DoP extends our thanks to the Office of the County Attorney fo r the legal support and guidance associated with Act t 77. The divi s ion also extends it s thank s to the County Council for its unanimous support of the Counci l Resolution 2016-21 which enabled the County to advance these various electronic initiatives . Objectives to be pursued in FY 17 include : I . The D oP will work in partnership with th e IT Division in order to advance the electronic signature initiativ e. This initiative wi ll allow expansion of current efforts to achieve a paperless operation not only for the DoP , but can provide this opportunity for all County departments and agencies. 2. Procur ement s upport for the IT Division to acquire the preferred software appl ic ation for electron ic signatures upon completio n of systems requirements. 3. Modification of ex i s ting and d evelopment of new procurement policies and pro ced ures involving electronic document proces s in g . 4. De velopment of in s tructions for externa l customers to be able to access and utilize the efficiency benefit s of electronic signatures for contracts an d related document s. 5. Information sharing and training support as needed. 2017 Budget Pre se ntation Department of Finance Page 56 Summa1 ·y of F i s cal Year 2016-2017 Goals and Obj e ctiv es 2. Impl e m e nt at i o n of E l ec tronic P rocu re ment fo r Goo d s a nd Se r v i ces C on tr acts As noted in the accomplishme n ts section, impl ementatio n of the e l ectronic procur ement initiative for goods and services contracts have been deferred to July 20 1 6. All goods and services so li citations for FY 17 and be yon d will be let via the use of the fully automated Public Purchase e-procure ment system. Specific ob j ect iv es inv olved in this goal will include : l. Comp l et i o n and implem e ntation of the General T erms and Con diti o n s for Good s and Services Co ntra c t s. 2 . Internal a nd extemal customer education and train ing to ensu r e a complete understanding of t h e n ew pr ocess. 3. Further development of a n email registry of goods an d se r vices vendors to create a re sou r ce of data to be utilized by the D o P to facilitate commun i cat i ons w ith the vendor community about our plans and intenti o n s. 4. Continued partnership with the Public Group to ensu r e e-procurement syste m operability and sup p o 1 t fo r both in te rnal and ex t ernal custome r s. S ummary of F i s cal Y e a r 2016-2017 Goals and Obi e c t iv e s 3 . S u ccess i o n P lan ni n g The DoP's co mpr e hen sive a nd detailed succession plan , as pre se nted to the Co uncil in three prior budget pre se ntations , will continue to m ove forwa rd in FY 17 . This con tinu ed forward movement is due to the outstanding lev e l of com mitment , energy, a nd e nthu s ia sm of employees who have fully engaged themselves in the intensi ve training and performance s tandard s that hav e be en v ital compo n ents of the training r egimen. C r e dit is a l so owing to our two outstanding procurement managers w ho ha ve been primarily ass ign ed the responsibility for all staff training. R emain in g objectives of the plan include: 1. Co ntinu ed aggress ive cross training , job-rotation , and job sharing amo ng all procurement specialists and technicians i n vo l ving the full scope of procurement duties and responsibilities. 2. R ea ll ocation and classification actions commensurate w ith train ing and knowledge so as to create a qualified pool of specialists ab l e to attend to the full r ange of procurement duties and responsibilities within the DoP. 3. Temporary assignments to provide specialists with th e o pportunit y to exercise 2017 Budg et P resentation Department of Finance P age 57 and gain exposure to su perviso ry du ties within the division. This wil l address the succession needs in t erms of man ageme n t and s u pervisory overs ight. This compone n t of the plan is equally important to t h e creation of procurement subject m atter expertise. 4. Specific subject matter trainin g for all emp l oyees available through the National Institute of Government Procurement. S umm a r y o f Fis cal Ye ar 2 016-20 17 G oal s and Obj ec ti ves 4 . Impl e m e nt at ion of E lectronic Pu rc h ase Ord e r s An additional component of the D oP's comprehensive m ove m e nt toward technologica l and paperless initiatives is the electronic purchase orders. The im pl e mentation of the pCard , now in its fourth co n sec uti ve year, has substantially r e du ce d th e utili za tion of paper purchase orders. In FY 1 5, there were a total of 8,530 p Card transactions. Thi s co rresponds to a re du ct i on .in pap er pur chase orders. For the reminder of purchase or d er needs, the option of implementing e l ectro ni c purchase orders i s a n i mportant initiative fo r the D o P . Objectives for im pl ementatio n include: 1. Conti nu e planning p artne rship with the IT Division to detennine systems and operational requirements. 2. Include interna l customer stakeholders as needed who have vested interest in the initiative. 3. Identify policy and procedural changes that will be r equi r ed to advance this initiative. 4. Atte nd t o ven d o r data base clean -up a nd upd ati n g to e limin ate obso lete ve ndo r data . 5. Id e ntify and coo r din ate external and int e rnal customer training. 6. Estab li s h i mplementation date. 2017 Budget Prese n tation Department of Finan ce Page 58 VI. Budget Overview Department: ANANCE. Division: PURCHASING FY 2016 FY 2017 i + l -O /o + l - Salary and Wages 649,569 648,525 -1,044 -0.2 % Benefts 356,515 345,818 -10,697 -3.0% Utities 0 0 0 0.0% Vehd~/Equip, Lease 8,640 8,640 0 0.0% Operatbns 113.006 11;3,QQ6 Q 0.0% 1,127,730 1,115,989 -11,741 -1.0 % FY 2016 Operating Budget FY 2017 Operating Budget 1% •Salary and Wages •Benefits Utilities •Vehicle/Equip, Lease • Operations 1% FY 2016 and FY 2017 Comparison 600,000 500,000 400,000 300,000 200,000 100,000 0 Sa lary and Wages 2017 Budget Presentation Benefits Utilities Vehicle/Equip, Lease Department of Finance •Salary and Wages •Benefits Utilities •Vehicle/Equip, Lease •Operations Operations •FY 2016 •FY 2017 Page 59 VII . Vacant Positions All p ositions in the D oP are currently filled. Two potential retirements cou ld occur in cale ndar year 2016. VIll . Grants The DoP does n ot rely upon any grant funds as part of the operati n g budget. The operation is fully funded by t he ge ner a l fund . 2017 Budget Pr esentation D epa r tment of Fin a n ce Pag e 60