Loading...
HomeMy WebLinkAboutResponse Budget Review Follow-Up 04-02-2020 Part 4          www.kauai.gov  4444 Rice Street Suite 105 • Līhu‘e, Hawai‘i  96766 •  (808) 241‐4460 (b) • (808) 241‐5126 (f)   An Equal Opportunity Employer  DEPARTMENT OF PUBLIC WORKS  THE COUNTY OF KAUA‘I     DEREK S. K. KAWAKAMI, MAYOR  MICHAEL A. DAHILIG, MANAGING DIRECTOR   TROY TANIGAWA  ACTING COUNTY ENGINEER    MICHAEL H. TRESLER  ACTING DEPUTY COUNTY ENGINEER  MEMORANDUM TO: Honorable Arryl Kaneshiro, Council Chair FROM: Troy K. Tanigawa, PE, Acting County Engineer VIA: Michael A. Dahilig, Managing Director DATE: April 8, 2020 RE: Fiscal Year 2020-2021 Budget Follow-Up Questions for April 2, 2020 This is memorandum is in response to the follow-up questions directed to the Department of Public Works from March 31, 2020. Item # 1 The Human Resource Vacancy Report and supplements provided by the HR Department will address all vacancy & recruitment questions. Item # 2 Anticipated revision in the May 8th Supplemental. Department of Public Works – Administration 1. Please confirm that you only have two (2) current vacancies (Position Numbers E-20 and E- 21). Please describe (in more than a few words) the current recruitment effort, if any, for each. For example, please explain in further detail the Recruitment Status description already provided by Human Resources in the Vacancy Report of March 15, 2020, which is “Continuous” for both of these. In your explanation, please explain the important details, such as when recruitment started, what stage of the recruitment is currently in, and the earliest hire date and/or start date expected. Response: See item # 1. 2. How does the loss of Position Number 9051 Program Admin Officer II ($91,752), which is proposed to be moved to the Mayor’s Office, impact your workload at Public Works? How will you fill any gaps created by the move? Response: This move is for reporting purposes. Since this position deals with the County Wide CIP program the coordination is centralized out of the Mayor’s office versus DPW. Department of Public Works – Fiscal 1. Please confirm that you only have one (1) current vacancy (Position Number 807). Please describe (in more than a few words) the current recruitment effort, if any, for this vacant position. For example, please explain in further detail the Recruitment Status description already 2    provided by Human Resources in the Vacancy Report of March 15, 2020, which is “Recruiting.” In your explanation, please explain the important details, such as when recruitment started, what stage of the recruitment is currently in, and the earliest hire date and/or start date expected. Response: See item # 1. Department of Public Works – Engineering 1. Please confirm that you only have two (2) current vacancies (Position Number 1434 and 1432). Your narrative has indicated an “offer is pending” for Number 1434. For Number 1432, because Human Resources has indicated in the Vacancy Report of March 15, 2020 “No Activity” for Recruitment Status, please let us know the date you intend to initiate recruitment, how long you anticipate recruitment taking, and the earliest hire date and/or start date expected. Response: See item # 1. 2. Please explain the large increase to “Premium Pay” ($1,500 to $67,152). How will the $65,000 for “Temporary Differential” be expended? HR Response: Due to the difficulty in recruiting for Civil Engineers (CE), shortage differentials were established for various CE classes earlier this fiscal year. The additional funding is paid to CEs as part of their base pay. Department of Public Works – Building Inspection 1. Please confirm that you only have two (2) current vacancies (Position Numbers 1528 and 1439) and that both are currently dollar ($1)-funded in the budget proposal and will remain dollar-funded. Response: See item # 1. 2. What is the funding source for the six (6) “T-numbered” positions and what are the budgeted salaries for each? If any of these positions are currently vacant or anticipated to become vacant soon, please describe (in more than a few words) the planned recruitment effort for each. Please explain the date you intend to initiate recruitment, how long you anticipate recruitment taking, and the earliest hire date and/or start date expected. Response: Funding for all “T-numbered” positions in Building Division comes from the Revolving Fund. (Excerpt from Chapter 12 Building Code) Where a plan review fee has been paid, the plan review fee payment shall be deposited to the Plan Review, Permit Processing and Inspection Revolving Fund. Plan review fees are non-refundable. (A) There is hereby established and created a fund to be known as the “Plan Review, Permit Processing and Inspection Revolving Fund.” The fees collected pursuant to this 3    subsection are hereby deemed appropriated upon receipt and may be expended for the hiring of persons employed on a fee, contract or piecework basis, or independent contractors to assist in plan checking, permit processing and inspections. The Budget Ordinance shall determine the maximum number of persons that may be hired with these fees. The fee may also be expended for training, materials, supplies, and equipment that facilitate plan review, code enforcement, and for payment of overtime for plan checking, permit processing and inspections. At the end of the County’s fiscal year, any fund balance in excess of $200,000 in uncommitted funds shall be transferred and deposited into the General Fund. The following positions are vacant: T-1981 Supervising Building Plans Examiner T-1976 Building Plans Examiner T-1939 Supervising Plumbing Inspector T-1966 Assistant Building Inspector T-1984 Building Permit Clerk We have no plans to recruit for these positions for FY2021. 3. Which County facilities and/or programs are covered by the $1,250,000 Electricity line item in your budget? Response: Lihue Police/EOC/OPA Facility Kapule & Moikeha Buildings Piikoi Building Historic County Building Historic County Building Annex Carriage House (Old Honsador Building) Department of Public Works – Roads 1. Please confirm that you have seven (7) current vacancies (Position Numbers 879, 856, 9047, 916, 843, 953, and 940). For Number 879, since the position recruitment was reopened on 01/29/2020, has it already been filled or, if not, when do you expect it to be filled and the new hire to start work? For Number 856, when do you expect to have the equipment available so you can complete the performance interviews and when do you expect to fill the position and the new hire to start work? Lastly, for the remaining five (5) positions, please describe (in more than a few words) the current recruitment effort, if any, for each. For example, please explain in further detail any Recruitment Status description already provided by Human Resources in the Vacancy Report of March 15, 2020 such as “Continuous” or “Interview / Background,” “List Established,” “List Referred,” or other. In your explanation, please explain the important details, such as when recruitment started, what stage of the recruitment is currently in, and the earliest hire date and/or start date expected. Response: See item 1. 4    2. In your narrative on “roadside maintenance” you mention $45,000 Labor positions and $630,000 in additional salaries. Is this in your proposed budget? If so, please point out where. Response: See item #2. 3. Please point out where your proposed additional positions “Roads Engineering Support Technician” and “Construction Inspector” are in the budget? What are the budgeted salaries for each? Do you expect to complete the recruitment for each and hire them to start by July 1, 2020? If not, please estimate the start date. Response: See item #2. 4. For the Hanalei Baseyard Leased ($324,417) line item, could you consider saving $85,500 by delaying the new leasing of the Dump Truck and the Aerial Bucket Truck or is their replacement this year critical? Response: See item #2. 5. For the Kapa‘a Baseyard Leased ($498,276) line item, could you consider saving $107,000 by delaying the new leasing of the Dump Truck and the Lee Boy Grader or is their replacement this year critical? Response: See item #2. 6. For the Roads Administration Islandwide Resurfacing / Road & Bridge Repairs ($17,690,000) line item, please show how the funds will be expended by sharing a list or schedule of what work will be done, where, when, and for what cost. (Of course, like the budget, this would be a forecast or an estimation.) Please also provide a list or schedule for the same expense item in this current Fiscal Year 2019-2020 budget that amounts to $17,525,000, including dates of jobs already completed. Response: See item #2. Department of Public Works – Auto Maintenance 1. Please confirm that you have six (6) current vacancies (Position Numbers 1332, 1343, 1334, 1344, 1847, and 1333). Please describe (in more than a few words) the current recruitment effort, if any, for each. For example, please explain in further detail any Recruitment Status description already provided by Human Resources in the Vacancy Report of March 15, 2020 such as “Recruiting,” “Continuous,” “Interview / Background,” “List Established,” or other. In your explanation, please explain the important details, such as when recruitment started, what stage of the recruitment is currently in, and the earliest hire date and/or start date expected. For any vacancies that are not currently in recruitment (i.e., “No Activity”), please explain the date you intend to initiate recruitment, how long you anticipate recruitment taking, and the earliest hire date and/or start date expected. Response: See item #1. 5    2. Please point out where your proposed additional positions “Landfill Repair Shop Supervisor F111 ($64,644)” and “Landfill Heavy Vehicle and Construction Equipment Mechanic I-(HVCEMI) BC-11 ($61,152)” are in the budget. What are the budgeted salaries for each? Do you expect to complete the recruitment for each and hire them to start by July 1, 2020? If not, please estimate how long after July 1, 2020 they would start. Response: See item # 2.   3. Please explain the large increase to “Other Services” ($30,000 to $155,000). Please also explain what the Vehicle Fleet Pilot Program (Building) ($125,000) is and how these funds will be expended. Response: See item #2. 4. Please explain the large increase to “Leased” ($117,000 to $364,000). Please also provide replacement schedules for all vehicles included. Can any of the vehicles scheduled to be replaced this year instead be replaced next year or the year after? If so, what total amount of moneys could be saved? Response: See item #2. 5. Please explain the large increase to Highway Fund “Other Services” ($10,000 to $170,000). Please also explain what the “Integrated Business Services (Parts & Supplies) ($160,000)” is and how these funds will be expended. Response: City and County of Honolulu has implemented this program successfully for four years running. Description: One of the core functions of the COUNTY OF KAUAI Fleet Maintenance Operations Division is procuring, supplying and managing a parts inventory for maintenance of 900 COUNTY OF KAUAI owned vehicles and equipment. The NAPA Integrated Business Solution provides a partnership that creates a “just in time” parts methodology that will significantly reduce costs and increase process efficiencies. A “just in time” parts strategy relieves COUNTY OF KAUAI of the burden of managing an inventory of parts that tie up over $300,000 (Parts estimated County wide). Instead, all parts would be purchased and charged to COUNTY OF KAUAI at the moment the part is needed by a technician. The NAPA IBS operation would house and store part inventories in the Maintenance Services Shop for instant access. All parts will be provided by and owned by NAPA IBS until requested by and handed to Maintenance Services technical staff. Rationale for Recommendation: Each year it is estimated that over $1,200,000 in parts, tires and supply quantities were purchased from dozens of vendors and charged out to over thousands of work orders in support of the mission critical equipment depended on by the COUNTY OF KAUAI. Implementing a "just in time" sourcing of maintenance parts and inventory program represents a fundamental 6    change in the way the COUNTY OF KAUAI procures parts for vehicles and equipment. This contract has an element of supplies procurement and an element of professional management services. Analysis: Awarding a contract to NAPA IBS will benefit the COUNTY OF KAUAI Fleet Maintenance Management Division and its customers by: Operating efficiencies and improved performance that can result from improving the parts inventory function. All parts will be purchased by NAPA and billed to COUNTY OF KAUAI once a month for the actual parts used. NAPA will own the inventory and be responsible for all shrinkage and obsolescent part costs. The NAPA personnel will cover all operating hours including emergencies and find replacement staff if a NAPA employee is sick or on vacation. NAPA will provide performance reports and will responsible for providing parts on time when they are needed. NAPA will act as an agent of COUNTY OF KAUAI to procure parts from local vendors similar to current purchases made by COUNTY OF KAUAI personnel. COUNTY OF KAUAI currently operates its own Vehicle and Maintenance Operations Division including a parts inventory system at the Maintenance Garage to support a fleet of approximately 400 pieces of COUNTY OF KAUAI equipment. The total value of the COUNTY OF KAUAI's parts, tires and supplies Inventory is approximately $50,000. This proposal for contracting out the parts operation is being considered because of several reasons:  Reduce parts costs: Many vendors do not provide a true MSRP or list price…but of those that do NAPA can estimate a wide range of discounts off list price from 10% to 50% off list to get to the cost-plus factor in the contract. NAPA branded products will be sold to the COUNTY OF KAUAI at Jobber Net which is an average of 20%-50% off list price.  Increase productivity of technicians: Parts availability will increase due to an increase in inventory on hand and Techs not wasting time waiting or chasing parts. An 85% over the counter fill rate will be a contractual requirement of the contract.  Increase parts process efficiencies: NAPA on-site staff will maintain and manage min/max and service levels to meet the service requirements of the contract. That includes daily stock orders, special order parts, vendor negotiations and managing new part/core and warranty returns for customers. NAPA IBS will bar code parts to ensure accuracy and will manage inventory records. The costs associated in administering contracts with various suppliers and processing hundreds of monthly invoices will be eliminated.  Reduce part wait time: By having NAPA provide the parts, COUNTY OF KAUAI will only pay for the parts that are used. COUNTY OF KAUAI will also realize the efficiencies of having better parts availability to allow repairs to be made quickly and reduce the time Techs wait for parts. NAPA will achieve an 85% over the counter fill rate.  Reduce vehicle down time: NAPA has developed a system by utilizing usage reports, consistent reorder practices, completion of the standardized line code initiatives, and the 7    establishment of the Target Parts lists, to ensure adequate inventories are available to meet COUNTY OF KAUAI’s needs and reduce downtime.  Eliminate capital tied up in inventory: NAPA IBS takes the full ownership of inventory cost and management. NAPA will own the inventory, COUNTY OF KAUAI only pays for parts as they used, instead of incurring inventory holding costs, obsolescence and loss. FINANCIAL IMPACT: Cost savings will come from several different areas: Decreased personnel costs, reduction in inventory investment, lower net parts costs, reduction in payments to multiple vendors each week, and added efficiency of repairs due to less time waiting for parts. Below are conservative estimated savings that can be achieved by contracting with NAPA IBS:  Reduced parts costs: A conservative estimated savings on parts through buying at jobber net and national contracts purchasing is estimated at an additional 15% reduction from current COUNTY OF KAUAI pricing. Estimated Cost Savings: $137,000.  Elimination of Inventory Investment: NAPA IBS will own the parts supply and inventory. They can buy the existing non-obsolete parts stocked prior to IBS or Divest inventory and issue it free over 1st year. Estimated Cost Savings: $50,000.  Transaction Expenses: NAPA will handle all transactional duties associated with managing and procuring parts and inventory. Estimated Cost Savings: $13,500.  Inventory Management: By having NAPA manage the COUNTY OF KAUAI’s inventory and parts operation, elimination of obsolescence, shrinkage, lost core credits, lost warranty recovery, items not posted to work orders, and reduced priority freight expense will be achieved. Estimated Cost Savings: $53,000.  Productivity Improvements: Parts availability will increase due to an increase in inventory on hand and Techs not wasting time waiting or chasing parts. A conservative estimate is an improvement of 0.5% multiplied by the total number of Techs, multiplied by their hourly rate of pay over 260 working days. Estimated Cost Savings: $46,000. Total Estimated Projected Savings: $299,500. With the recent COVID-19 impact we will re-evaluate this particular line item. Ultimately, this program will be paid through cost saving. We needed a cushion for the ramp up of this program. As more of our departments utilize the service the more cost savings we receive. 8    Department of Public Works – Solid Waste 1. Please confirm that you have five (5) current vacancies (Position Numbers 1919, 827, 1879, 867, and 962). Please describe (in more than a few words) the current recruitment effort, if any, for each. For example, please explain in further detail any Recruitment Status description already provided by Human Resources in the Vacancy Report of March 15, 2020 such as “Recruiting,” “Continuous,” “Interview / Background,” “List Established,” or other. In your explanation, please explain the important details, such as when recruitment started, what stage of the recruitment is currently in, and the earliest hire date and/or start date expected. For Number 962, which is indicated as not currently in recruitment (i.e., “No Activity”), please explain the date you intend to initiate recruitment, how long you anticipate recruitment taking, and the earliest hire date and/or start date expected. Response: See item #1. 2. Please point out where you are adding to the budget the following position mentioned in your narrative: “Recycling Specialist II (SR20) ($48,948).” Do you expect to complete the recruitment for this position with the newly hired able to start by July 1, 2020? If not, please estimate the start date. Response: The narrative was in error; there is no new Recycling Specialist position being considered in this budget. 3. What is the funding source for the two (2) “T-numbered” positions (Position Number T1996 and T1980) and what are the budgeted salaries for each? If either of these positions are currently vacant or anticipated to become vacant soon, please describe (in more than a few words) the planned recruitment effort for each. Please explain the date you intend to initiate recruitment, how long you anticipate recruitment taking, and the earliest hire date and/or start date expected. Response: The positions numbered T1996 and T1980 are fully funded by the State Department of Health under the HI5 Deposit Beverage Container (DBC) Program. Both positions are currently staffed and the salaries in FY21 are estimated at $51,500. The FY21 Contract Modification to staff these positions and fund other programmatic items has been approved by the State DOH and will be forwarded to Council for review and approval shortly. 4. Please explain the large increase to “Other Supplies” ($15,000 to $44,200). Please provide details on “Order New Home Composting Bins” $44,200 (i.e., cost per bin, total number of bins ordering, cost of shipping, et cetera). Response: We are requesting to order a full container load of composting bins to minimize the cost of shipping. We order a full container of composting bins once every 3 years. Bins are stored indoors at the Kaua‘i Resource Center which is the point of distribution. The FY21 budget request will fund 868 composting bins. Based on the last order, the cost of shipping is estimated at $16,500. The cost per bin including shipping will be about $65 per bin. 9    Department of Public Works – Wastewater 1. Please confirm that you have zero (0) current position vacancies. If instead you have any current vacancies or anticipate any positions to become vacant soon, please describe (in more than a few words) the planned recruitment effort for each. Please explain the date you intend to initiate recruitment, how long you anticipate recruitment taking, and the earliest hire date and/or start date expected. Response: See item #1. 2. Please point out where you are adding any positions to the budget to address your narrative statement of “The Division also suffers from a lack of manpower” as well as making clear your need for a Civil Engineer, more Mechanics, and more Line Crew. If any of these positions are being added, do you expect to complete the recruitment for each position with the newly hired able to start by July 1, 2020? If not, please estimate how long after July 1, 2020 for each. Response: See Item #2. 3. What will it take to stop the County’s ongoing violation of our underground injection (UIC) well permit that has been in place for almost a year and a half now? Have you budgeted for this? If so, please point out where. Response: The Division needs to perform two key tasks. One is to clean the UIC wells so that the operating pressure decreases to permitted levels. The other is to get back to doing recycled water reuse so that the UIC wells are a backup disposal and not our only method for disposal. We have been approved for an emergency project for both key tasks. We have a contractor in place to clean the wells. However, we are currently holding off on the cleaning while we work to get a reuse project in place. Although we can clean the wells now, having nowhere else to send the treated effluent other than to one well while we clean the other (and then vice versa to clean the other well) will not allow us to clean the wells effectively. As such, we are working to get a reuse project in place in the next 2-3 months just so that we can clean the wells while sending the R-2 recycled water for beneficial use (i.e. to the adjacent recently purchased County-land). We are in discussions with the lessee and a contractor to be able to do R-2 recycled water reuse in the next 2-3 months. We are also working with the lessee regarding a longer-term reuse project so that we can return the UIC injection wells to backup disposal and have a sustainable and beneficial way to treat and reuse wastewater instead of just disposing of it. We have been coordinating with the Department of Health, Safe Drinking Water Branch, since they permit our UIC injection wells and they are supportive of our approach. We have budgeted to clean UIC wells at the Līhu‘e WWTP this FY (i.e. FY20). We will use that money to clean the Waimea UIC wells instead. We have also held off on moving forward with building repairs because of the priority of the R-2 recycled water reuse. We will use that money in our current budget to do so. 10    4. Given the dire fiscal situation the County is likely to be in because of COVID-19, what are your plans for increasing both the sewer user fees and the General Fund’s subsidy to assist your drastically under-funded operations? Response: The decision has been made to hold off on bringing forth the sewer rate increase given the circumstances the County is in with COVID-19. We are still determining what this means for our operating budget for the upcoming fiscal year (FY21).