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HomeMy WebLinkAboutFY 2026 (Department of Public Works) DEPARTMENT OF PUBLIC WORKS FY 2026 BUDGET AND OPERATIONS SYNOPSIS Troy Tanigawa County Engineer 1 1. FY 2025 TO PROPOSED FY 2026 BUDGET COMPARSION Funds: GENERAL FUNDS Department: PUBLIC WORKS FY 2025 FY 2026 $ + / - % + / - Salary and Wages 3,973,458 4,113,157 139,699 3.5% Benefits 2,533,928 2,876,868 342,940 13.5% Utilities 1,622,038 1,627,487 5,449 0.3% Vehicle/Equip, Lease 132,041 173,995 41,954 31.8% Operations 2,665,770 2,801,835 136,065 5.1% 10,927,235 11,593,342 666,107 6.1% 36% 23% 15% 1% 25% FY 2025 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 35% 25% 14% 2% 24% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2025 and FY 2026 Comparison FY 2025 FY 2026 2 Fund: HIGHWAY FUND Department: PUBLIC WORKS FY 2025 FY 2026 $ + / - % + / - Salary and Wages 5,834,061 6,009,774 175,713 3.0% Benefits 3,993,017 4,387,909 394,892 9.9% Utilities 591,124 653,013 61,889 10.5% Vehicle/Equip, Lease 4,186,755 2,531,366 -1,655,389 -39.5% Operations 5,141,222 5,238,365 97,143 1.9% 19,746,179 18,820,427 -925,752 -4.7% 30% 20% 3% 21% 26% FY 2025 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 32% 23% 4% 13% 28% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2025 and FY 2026 Comparison FY 2025 FY 2026 3 Fund: G.E. Tax FUND Department: PUBLIC WORKS FY 2025 FY 2026 $ + / - % + / - Salary and Wages 274,124 238,050 -36,074 -13.2% Benefits 158,583 150,525 -8,058 -5.1% Utilities 0 0 0 0.0% Vehicle/Equip, Lease 6 6 0 0.0% Operations 35,111,593 36,516,057 1,404,464 4.0% 35,544,306 36,904,638 1,360,332 3.8% 1%0% 99% FY 2025 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 1%0%0% 99% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2025 and FY 2026 Comparison FY 2025 FY 2026 4 Fund: BEAUTIFICATION FUND Department: PUBLIC WORKS FY 2025 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2025 and FY 2026 Comparison FY 2025 FY 2026 FY 2025 FY 2026 $ + / - % + / - Salary and Wages 0 0 0 0.0% Benefits 0 0 0 0.0% Utilities 0 0 0 0.0% Vehicle/Equip, Lease 0 0 0 0.0% Operations 418,766 435,517 16,751 4.0% 418,766 435,517 16,751 4.0% 100% 100% 5 Fund: SOLID WASTE FUND Department: PUBLIC WORKS FY 2025 FY 2026 $ + / - % + / - Salary and Wages 5,383,402 5,445,070 61,668 1.1% Benefits 3,480,752 3,647,241 166,489 4.8% Utilities 118,491 116,091 -2,400 -2.0% Vehicle/Equip, Lease 4,848,531 2,546,985 -2,301,546 -47.5% Operations 14,377,420 15,231,959 854,539 5.9% 28,208,596 26,987,346 -1,221,250 -4.3% 19% 12% 1%17% 51% FY 2025 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 20% 14% 0%9% 57% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2025 and FY 2026 Comparison FY 2025 FY 2026 6 Fund: SEWER FUND Department: PUBLIC WORKS FY 2025 FY 2026 $ + / - % + / - Salary and Wages 3,502,856 3,583,041 80,185 2.3% Benefits 2,242,209 2,339,747 97,538 4.4% Utilities 1,894,000 1,894,000 0 0.0% Vehicle/Equip, Lease 1,144,502 299,502 -845,000 -73.8% Operations 9,767,328 10,179,404 412,076 4.2% 18,550,895 18,295,694 -255,201 -1.4% 19% 12% 10% 6% 53% FY 2025 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 19% 13% 10% 2% 56% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2025 and FY 2026 Comparison FY 2025 FY 2026 7 The Department of Public Works (DPW) relies on six (6) primary funding sources to sustain its day- to-day operations. These sources include the General Fund, the General Excise Tax Fund, Highway Fund, Beautification Fund, Solid Waste Fund, and Sewer Fund. The General Excise Tax (GET) Fund is the largest contributor to DPW's proposed FY 2026 Operating Budget at $36,904,638. Of the proposed appropriation, 99% primarily covers costs related to Island Wide Road Resurfacing and other operating costs including training, road maintenance- related services, and materials & supplies. The remaining 1% is allocated to cover salary-related costs. Compared to the prior year, the proposed budget reflects a relatively modest net increase of 3.8%, or $1.36 Million. The Solid Waste Fund is the second largest contributor to the proposed operating budget of $26,987,346. Overall, 34% of proposed appropriations covers Salary, Overtime, and Benefit costs for Division of Solid Waste Management (DSWM) operations, and 17% of the appropriations covers equipment purchases. The remaining 49% is allocated to cover operating costs including contracted services, training, materials & supplies, and repair & maintenance costs. Compared to the prior year, the proposed budget reflects a net decrease of 4.3%, or $1,221,250. The Highway Fund is the third-largest contributor to DPW's proposed operating budget at $18,820,427. Overall, 56% of proposed appropriations covers Salary, Overtime, and Benefits costs, and 21% covers equipment repairs and purchases. The remaining 24% covers anticipated costs for contracted services, materials & supplies, training, and other necessary operating costs for the Roads Division and Auto Repair Shop Operation. Compared to the prior year, the proposed budget reflects a net decrease of 4.7%, or $925,752. The Sewer Fund monies are the fourth-largest contributor to DPW's proposed operating budget at $18,295,624. Of proposed appropriations, 32% covers Salary, Overtime, and Benefit costs, and 20% covers equipment purchases, leases, and/or repairs. The remaining 48% covers anticipated costs for contracted services, materials & supplies, training, loan repayments, and other necessary operating costs for the Wastewater Division. Compared to the prior year, the proposed budget reflects a net decrease of 1.4%, or $255,201. The General Fund is the fifth-largest contributor to DPW's proposed operating budget at $11,593,342. Overall, 60% of the proposed appropriations covers Salary, Overtime, and Benefit costs for DPW Admin, Fiscal Office, Engineering and Building Divisions, and 5% covers equipment purchases, leases, and/or repairs. The remaining 35% covers anticipated costs for contracted services, equipment purchases, materials & supplies, training, and other necessary operating costs. Compared to the prior year, the proposed budget reflects a modest net increase of 6.1%, or $666,107. DPW’s sixth funding source, the Beautification Fund at $435,517 supports costs to maintain County roadways including services for removal and disposal of items from illicit dumping, and other special projects for beautification of transportation corridors. Compared to the FY 2024, the proposed FY 2025 budget reflects a relatively minor increase of 4%, or $16,751. 8 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET DPW’s strategy for the FY 2026 Operating Budget was based on the following principles: 1) Ensure adequate manpower capability by funding current and proposed new positions needed to perform essential functions; 2) Enable operations staff with adequate and appropriate resources including equipment required for effective and efficient performance of duties and funding for outsourcing services as necessary; 3) Prioritize regulatory compliance and safety; and 4) Repair and Maintain Infrastructure for which we are responsible. Items “a” through “e” below represent year-over-year changes in expense categories for all funding sources combined along with explanations of the primary variances. a. Salary and Wages: increase of $421,191 or 2.2% The proposed addition of three (3) new Laborer I positions for each of our Roads Maintenance Baseyards is contributing to the increase along with a supplemental agreement put in place for our Engineers. This resulted in significant wage increases making them more competitive against the private sector. b. Benefits: increase of $993,801 or 8% To ensure we are adequately positioned to meet future obligations, we have made a strategic decision to increase the allocation of our Other Post-Employment Benefits account across all our divisions. This will provide for flexibility in addressing any potential increases. c. Utilities: increase of $64,938 or 2% Anticipated increase in utilities is primarily due to the increase Highway Fund allocation for “Streetlights.” d. Vehicle/Equipment: decrease of $4,759,981 or -46% Decrease in this budget category due to outright purchases for heavy equipment in the current FY 2025 Budget that are not repeated in the proposed FY 2026 budget. In addition to less equipment being purchased in FY26, large items greater than $250,000 are budgeted to be financed in the current year. e. Operations: increase of $2,921,038 or 3% The primary increase was due to an increase in Consultant Services for the Solid Waste Division. State Revolving Fund loan payments for Wastewater are also up over $400K. Items “f” through “m” below is a summary of the operating budget by division along with explanations of the primary changes. General Notes: (1)“Other Post-Employment Benefits” (OPEB) was increased in all divisions to provide for flexibility in addressing any potential increases. (2) Budget line items for Regular Salaries increased due to reallocations done throughout the year. f. DPW Admin Budget overall increase of $183,363, primarily includes: $ 34,859 001-2001-601.01-01 Regular Salaries: See above General Notes (2) $ 68,334 001-2001-601.05-12 Other Post-Employment Benefits: See above General Notes (1) $ 80,600 001-2001-601.43-01 R&M Building for addressing deferred maintenance 9 g. DPW-Fiscal Office Budget increase of $26,119, primarily includes: $ 4,473 001-2002-601.05-12 Regular Salaries: See General Notes (2) $ 18,430 001-2002-601.05-12 OPEB: See General Notes (1) h. Engineering Division Budget increase of $224,300, primarily includes: $ 111,157 001-2011-601.01-01 Regular Salaries increase primarily due to supplemental agreement for Engineers $ (63,321) 001-2011-601.05-02 Decrease in Health Fund Contribution based on actual results over the last 6 months $ 131,087 001-2011-601.05-12 OPEB: See General Notes (1) i. Building Inspection Division Budget overall increase of $202,241, primarily includes: $ 27,242 001-2021-601.01-01 Salaries: See General Notes (2) $ 88,303 001-2021-601.05-12 OPEB: See General Notes (1) j. Roads Division Budget overall increase of $497,180, primarily includes: $ 210,514 201-2071-624.01-01, 201-2072-624.01-01, 201-2073-624.01-01, 201- 2074-624.01-01, 201-2075-624.01-01, 201-2076-624.01-01 For Regular Salary increases see General Notes (2) $ 1,200,000 202-2021-624.30-12 Increase in Other Services allocation for road resurfacing & improvements $ (920,000) 001-2021-.05-12 Tractors & Heavy Equip decrease is due to the number and type of heavy equipment replacements budgeted for outright purchase in FY 2025 largely met needs of the Division, thus not repeated in the proposed budget k. Solid Waste Division Budget overall decrease of $1,373,594, primarily includes: $ 66,264 208-2031-642.01-01 Regular Salaries: See General Notes (2) $ 306,608 208-2031-642.05-12, 208-2032-642.05-12, 208-2033-642.05-12 OPEB: See General Notes (1) $ (2,961,998) 208-2031-601.89.02, 208-2032-601.89.02 , 208-2033-601.61.02 Tractors & Heavy Equip - decrease is due to the number and type of heavy equipment replacements budgeted for outright purchase in FY 2025 largely met needs of the Division, thus not repeated in the proposed budget $ 660,541 208-2031-601.30-00, 208-2031-601.32-00 208-2032-601.30-00, 208- 2033-601.30.00 Other & Consultant Services increase due to variation in scope of work and cost for services related to the Kekaha landfill $ 661,035 208-2011-601.80.02, 208-2031-601.89.01, 208-2032-601.89.05 Leased Equip increase due primarily to new lease purchase of four (4) new automated refuse collection vehicles l. Wastewater Division Budget overall decrease of $255,202, primarily includes: $ 84,589 502-2061-601.01-01 Regular Salaries: See General Note (2) $ (325,000) 502-2061-601.01-02 Decrease, Regular Overtime by amount allocated to Premium Pay 10 $ 320,596 502-2061-601.01-03 Premium Pay increase is an allocation to utilize “standby alternative” to ensure availability of the supervisor to answer consult calls on his non-scheduled work times. $ (120,383) 502-2061-601.05-02 Health Fund Contribution decrease is based on Dept of Finance formula involving current salary rates $ 412,190 502-2061-601.44-00 Loans increase is to address improvements at a County Wastewater Facility and collection system improvement $ 191,472 502-2061-601.01-12 OPEB: See General Note (1) above $ 123,000 502-2061-601.43-02 R&M Equip increase for equipment repair or replacements to maintain regulatory compliance $ (984,999) 502-2061-601.89-02 Tractors & Heavy Equipment decrease is due to the number and type of heavy equipment replacements budgeted for outright purchase in FY 2025 largely met needs of the Division, thus not repeated in the proposed budget m. Automotive Repair Shop Budget overall increase of $144,238, primarily includes: $ (70,865) 201-2077-624.01-01 Regular salary decreases due to half-year funding allocation for hard to fill vacant positions $ 87,159 001-2077-624-05-12 OPEB: See General Notes (1) $ 154,526 201-2077-624.43-03, 001-2077-624.43-03, 208-2077-641.43-03: R&M Vehicles increased service and repairs supplies and parts for vehicles including KPD vehicles 3. OPERATIONAL CHALLENGES DEPARTMENT VACANCIES / RECRUITMENT / RETENTION The DPW continues to confront substantial operational challenges in recruiting and retaining personnel. Despite continuous recruitment, participation in job fairs, and expanding our online presence, the department has struggled to fill engineer, project management, building plan review, wastewater plant operators, and heavy vehicle/equipment mechanic vacancies. While there has been a marginal increase in recent hiring, our staffing remained below adequate levels in the above referenced areas thereby posing a significant hindrance to accomplishing related goals and objectives. It has been a challenge for the County to match compensation packages for comparable positions in the private sector. The Department has worked with the HR Department to create training- level positions to create a pathway that trains-up employees to eventually qualify and become candidates for higher level positions (mechanics, building plan reviewers, wastewater plant operators) that are necessary to meet operational demands. The HR Department has also recently helped the department successfully hire and retain engineers by developing creative compensation packages to somewhat lower the disparity compared to private sector compensation packages. LIMITATIONS ON EFFECTIVE PREVENTION OF SICK LEAVE ABUSE The Solid Waste Division’s Refuse Transfer Stations and Landfill operate seven days per week, 8- 11 hours per day. We have established minimum daily manpower requirements to ensure safe and regulatory compliant operations, therefore overtime call-outs are necessary when scheduled employees are absent and there is insufficient redundancy of scheduled and qualified employees to meet manpower requirements. The Division has struggled to identify sufficient pattern behavior that is essential for successful enforcement of collective bargaining contract provisions against sick leave abuse. As a result, overtime cost for both operations is substantial, typically triple the annual budgeted amount for the operation in recent years. The Division has consulted with their counterparts on the other islands and is working on policy aimed at addressing sick leave abuse. REFUSE TRANSFER STATION RENOVATIONS Improved regulatory compliance and operational efficiencies are the basis for the planned renovations at the County Refuse Transfer Stations (RTS). Beginning last Fall 2024, renovation work began at the County’s Lihue RTS and lasted for several weeks before shifting to the Kapaa RTS. Kapaa Greenwaste operations remain open and scheduled employees not needed there are assigned to a solid waste operation where he/she is needed. Work at Kapaa RTS will likely conclude in Winter 2025. While the County has taken measures to minimize inconvenience to the public, progress has come at a price because residents have been required to endure unanticipated closures at Kapaa RTS and Hanalei RTS, and stricter limitations on materials accepted once Lihue RTS resumed operations and Kapaa RTS suspended operations in favor of the renovation project. The Kapaa RTS will remain closed for several more months to allow sufficient time to complete the many remaining construction improvements. While Kapaa RTS remains closed, the County will continue to provide acceptance of bagged trash Friday through Sunday at the Kapaa Baseyard parking lot. Also, once materials arrive, re-placement of deflector plates will require an additional suspension of the Lihue RTS operations. Finally, after Kapaa RTS improvements are complete, renovation work will commence for Hanapepe and Hanalei RTSs, one facility at a time. REPAIR OF VEHICLES AND HEAVY EQUIPMENT Given the lack of qualified mechanics and the aging fleet of automated refuse collection (ARC) vehicles, the operation has frequently endured extended periods when the number of ARC trucks falls below the number of active collection routes. By collective bargaining contract, whenever an operator must wait for an available truck to begin collection of his/her route, all time spent on the task is performed at the overtime rate of 1.5 x the base hourly rate. This is also valid for an operator who assists with collection of another route after finishing collection of his/her daily route. ARC breakdowns negatively impact customers due to delayed pickup, sometimes occurring the following day, and excessive overtime costs on the refuse collection operation. Additionally, the lack of mechanics and high rate of damage repairs on truck tractors and refuse transfer trailers has been a challenge and has resulted in materials backlog at refuse transfer stations and at times facility closures. Unreliable RTS operations negatively impact refuse collection operations that utilize these facilities and longer run times to empty collection trucks result in delays to complete routes and overtime charges by the operator. Residential self-haulers are also impacted negatively resulting in complaints and increases in traffic on the roadway for return trips and potential for illegal dumping. 12 ROADWAY/ROADSIDE VEGETATION MAINTENANCE The Roads Division continues to face the ever-growing challenges of maintaining road safety by keeping vegetation in check while using minimal herbicides. Over the years, the reduction of spraying directly increased the need for mechanical and manual labor to keep up with the quick growing vegetation such as Guinea grass in check. Maintaining the current fleet of bushwhackers in working order and sufficient daily manpower remains a constant challenge for Road Divisions laborers and operators. 4. OPERATIONAL HIGHLIGHTS FROM FY 2025 The departure of the sugar cane industry from Kaua‘i resulted in a significant amount of acreage becoming overgrown and unmaintained. During periods of drought these unmaintained areas become fire hazards, and unfortunately communities on East, South, and West Kaua‘i are precariously close to these fire hazards. DPW resources, including water tankers and bull dozers, mainly serve in a supporting role to the Kauaʻi Fire Department and PMRF Fire Crews during fire response, and this arrangement has worked out significantly well. With the Mayor’s support and County Council’s appropriation of funding in the current FY 2025 budget, we began to process securing the brush clearing equipment for County Crews to facilitate fire mitigation around our facilities and on county property in our communities. This equipment will also enable our crews with additional capability to address roadside vegetation maintenance responsibilities. Our crews continue to step up to the call of duty and go above and beyond in keeping our community safe. By April 2024 the Department of Public Works, Department of Parks & Recreation, and the Kaua‘i Police Department completed the eviction of several groups of homeless individuals followed by brush cutting at the County’s Kaiakea property and the adjacent State Department of Health property. The scope of work included removal/disposal of debris and abandoned vehicles from the camp sites. This was considered a fire hazard mitigation project. In all, debris and vegetation overgrowth were cleared from more than 18 acres. By December 2024, the Department of Public Works and the Kaua‘i Police Department had completed a significant portion of cleanup of the coastline area where homeless encampment sites were scattered from Ninini Point to a point along the coast at about ½ mile from Ahukini Road. Substantial work was completed on debris removal, including disposal of approximately 300 derelict vehicles, and roadway repairs. The next phase of the project will involve the cutting of fire break roads along the approximate 1 ½ mile section of property between the coastline and Airport Runway. This was considered a fire hazard mitigation project. Adoption of the 2018 International Building Code and related Building Code amendments were approved by the County Council on October 9, 2024. May 2012 was the last Code adoption, so this recent achievement provides an updated and current Building Code and along with it a renewed assurance for consistency in construction of stable and safe homes and structures on Kaua‘i. Additionally, the Code amendment moved all the administrative provisions into its own section within GENERAL PROVISIONS, allowing these provisions to survive any future County adoption deadlines relating to the various code effective dated pursuant to Hawai‘i Revised Statutes (HRS) Sections 107-25 and 107-28.