afternoon we show begin with the department of finance for its initial presentation before the committee so this is basically   proposed adopted it was budget for two thousand and seventeen the actuals for two thousand and fourteen you see are high because of the transfer for the other person and benefits to the state so that payment actually came out as a as an expense and how do i cuss that's why you see that discrepancy there but other than that in the table below you can see the summaries let me make it a little bigger for the viewing audience here and you can see the fringe benefits are a program that covers our employees retirement system payments the funds for the employee union trust fund or health insurance coverage is it also covers things like terminal pay and some other minor items and you know our security tax that we have to pay for certain employees different things like that are covered under our fringe benefit program the big change is that for the fringe benefit reimbursements had been a separate line item if you look at the kind of white details starting in one section six is chair mention you'll see that there are still separated out by index code but we have them combined into the fringe benefit program and the other than that we have basically can see the debt service went up a little bit there we have the transfers  that are transfers to the solid waste fund and the gulf fund went down very very slightly the insurance off insurance program we had some increases in there and we'll go over the required by charter go into that fund general costs are related to some rentals and coffee machine mail some other general cost items that the fans deputy director can explain details of we have  overhead reimbursements is the discussion we had yesterday regarding the full cost allocation plan and the overhead charges that are charged to the special fund that money coming back into the general fund is shown as a negative twenty two million dollars here is reimbursement of expenditures based on the emergency fund transfer posing is four million dollars and the post employment obligations fund our prosing sixteen million one hundred seventy two thousand here one of the factors of the insurance self insurance program that we did during fiscal year two thousand and sixteen if you might recall we moved the workers compensation payments out of the fringe benefit program and put them into the insurance health insurance program and this was a recommendation by our auditor when they were viewing  actual expenditures and things like that and seeing that we should be representing those costs as part of the insurance program not necessarily as part of our or fringe benefit so yes so that's the bigger increase in there we have nine hundred thousand dollar increase in the actual insurance premiums category mr chair the historically been appropriated about two million dollars in insurance premiums and with expenditures ranging from one and a half to about two million dollars for insurance premiums and the budget increased to that so that we make sure we have appropriate costs for that so that is something that was important so we have requested one million one hundred thousand dollars specifically for insurance premiums  the self insurance operations we are requesting a level eight million dollars for settlements and judgments and claims is there any changes in the third party call up our risk manager if there's a new specific questions but from my understanding there is that there was a third party administrator change for our workers compensation this past year and they did a lot of clean up in our workers compensation cases but as far as the third cravin streeter for liability insurance that has not really had an impact on operations at all and definitely has an increase see the impact more in the self insurance aid in the insurance program and so would have been affected there has affected the workers compensation insurance specifically versus the self insurance or insurance itself you can see it looks like it's reduced by one point eight million dollars but you take the the net of the eighteen point seven million dollars in the previous years for the very first moments and the negative nine and you see actually that proposed debt service we have here is based on current borrowing and what recently closed for last bus abundance in november we do not foresee issuing new b christians mr victorian of christians one of the questions i do have a about the party administrator it is my understanding that there is not many groups or insurance or any specific questions are there corporation counsel that long is very detailed knowledge of that the things that the public should know that it's not an easy situation to deal with that you don't have a lot of options or choices in the matter sometimes hard market because of investment in returns and the amount of catastrophic losses that have been occurring across the across the nation and the world to be put on it so again i can understand that then i think the self assurance know for the questions in this area members we're going to keep moving forward then mr baez are you done with your portion at this point if i am mr chair so we'll go back to the beginning of the department of deputy director we're going to finance thank you mr walker thank you which was mr chair committee members mark walker deputy director of finance thank you for the opportunity to come before you with the finance department's physical year two thousand and seventeen budget proposal i thought i would i thought i would start by reading the department finance mission statement the department of finance is responsible for the overall financial administration of all county departments its mission is to continuously strive toward excellence and managing the county's financial and physical record resources by providing quality financial services this year's budget proposal has gone through a vigorous finance department internal review and also a comprehensive review by the budget and manager management offices to arrive at the final form you see before you the major tenets of this year's budget process of this year's budget are improve customer service for both external and internal customers increased efficiency in operations compliance and continued staff training the finance department is currently organized is comprise of six divisions and five programs the programs are the administration program the accounts program the financial services program in which both real property assessment r b a and department of motor vehicles and licensing d m v are housed the purchasing program and the treasury program the combined finance programs currently have a total e p count of one hundred forty five point eight with our fiscal year seventeen budget proposal we will be requesting an additional ask me two point seven positions within the department of finance we understand and acknowledge that the budget process is a long and arduous one and that the committee will need to make many difficult decisions along the way it is our hope that our discussions today will lead to a better overall understanding of the department of finance or operations our goals and initiatives and our needs thank you to advance for your consideration of our fiscal year seventeen budget proposal i will have our if i don't have already the various administrators of my divisions here today to assist in answering any questions that you may have regarding this budget proposal and or their individual divisions and their operations what i'd like to do i guess is move into the administration program  the administration division our director's office establishes policy and provides oversight direction and support for the employment implementation and review policies and procedures for all of its five operating divisions it also provides a wide range of other types of into interdepartmental support including physical control budgeting economic and strategic planning internal audit internal controls and financial analysis i wanted to share with you briefly if i might our physical year sixteen program highlights or division highlights the county floated a sixty eight point one million dollar general obligation bond a good portion of which was used to refund and refinance existing higher interest rate debt in october of last year because of our stellar bond rating the county was able to attract bids from fifteen underwriters and was able to achieve an excellent true interest cost of two point zero eight nine percent the result being a net present value savings of approximately five point three million dollars to the county of mali the could be the division continues to work with the treasury division on the roll out in the implementation of the county wide cashiering system i know and the electronic credit card payment option point pay with the various departments of the county further to the administration division led by the director by director asked axelrod continue to stress staff training and in this in this regard held its fifth annual departmental wide training day at my college in december we did this in concert with the carnegie consultant and based on staff feedback the training was again very successful this year seems we're working together and effective communication know any questions at this times than that i thank you very much and wait to see if there's any other concerns but i i see how you've really tried to make sure of us and taking care of the needs of our county paramount and i'm very appreciative that thank you thank you input and reconcile real property in counties database systems what we're trying to do is get our arms around all the property that the county alums from parks lots in line a roadway lots drainage improvement areas except and we're doing this in concert with the state of hawaii and it's not it's not a problem obviously moving forward it's it's in getting this information in our database the the real problem is is on a lot of these older properties finding the documentation so that we can we can truly document what we have and long as is is researching through title companies except for some of these old parcels and getting a handle on them before you can actually put that into the system so that's that's what that is how do you measure that if you're saying sixty percent sixty percent well i mean it's you know for me what is the case i see the numbers your actual in two thousand and fifteen is sixty percent so how many so that sixty percent that forty percent you didn't complete so what is the total of properties that you need what is the remaining thirty percent i don't have that number in front of me i could i could i could get back to you on that  know something that should be maintained annually because this is a perpetual inventory by charter requirements review cover findings this is departments were necessary to minimize repeat findings and you're at fifty percent that's what you want your goal is no you only want to address go give you a for instance you know or a t p payroll processing you guys are the auditor on monday you know week we're going to get my my belief is we're going to get that almost every year because we can do payroll policy manuals we can have super user meetings but if the departments and we can work with the departments but at the end of the day if the departments don't do the work we can't sit with them and make them do it if right that's kind of disturbing to think that you don't feel like you're in a position to make the workers do the work but that's right i can't see where you're trying to come from back that i agree that it was i mean i to thank the department for putting the emphasis here and i understand it's a process and that you're going to try to move it up and i can see you are so i'm very disappointed that thank you thank you  we are requesting one body this year it's a records manager there is a new initiative being spearheaded by the office of cooperation council to review and revise our existing records management policy on a county wide basis this initiative would also include a more active records management policy which would in turn include scanning and indexing of us documents and the active management of emails i know that the i i department is involved in this as well from my email perspective they're running out of storage space and it's becoming a problem and sell the records retention responsibility has traditionally been housed in the management office however legislation is being drafted to request that this now become the responsibility of the partner of finance at any rate i'm sure you'll hear more of that from the office of corp consulates matter during this budget process this specific request as it is to create a position within the department of finance to manage this important and ongoing process rather county i might add that the director did visit the state archives to get a feel for how they catalog and store records and got some valuable information particular e p is about a thousand to about fifteen hundred more than other expansion positions for the same kind of equipment such as a desk and chair so just is this like a reference the other departments i see that have similar ask but there's arranging at the max fifteen hundred down to a thousand for just simple desk and chair and not to nitpick chair but i just thought maybe he doesn't exist now so who is doing that now as far as to review and revise whatever that needs to be well i you know i i don't know specifically who's doing that now i mean i think the responsibility department finance has a a retention policy that it's pretty arduous and i know i discussed it with the previous account system administrator one point some stuff where we require ourselves to keep for twenty years from the state for the same stuff keeps it for ten so i think and i'm not sure what the records retention policies are of other departments within the county so i think this task force in this  come to grips with all the various departments of the county the different types of records they had and come up with some policy decisions on what should be kept what shouldn't the stuff you keep how long should you keep it so you're not doing this now no not at all no i mean we it within the department of finance we destroy records on our own timeframe but we're talking about a county wide policy ok thank you  records person or is this person that is a clerical that is i mean you're going to need a staff for someone to direct or scan documents i don't believe one person could do all of goodman this is an interesting request from the department because as i understand our governing documents the county clerk has been assigned initiative was he wanted to really look at the record retention policy of the county and with data probably come a lot of changes we have one it's honestly it's from the eighty's or ninety's it's pretty dated so they want to relook at it so i have a feeling this position we just have a lot of work if the policy is revised you just need someone to start going through stuff like actual body so i believe that some of it but it's not necessarily whose function it is but there is an existing records management policy people are supposed to be for i should say they are supposed to be they are following it but it's dated so they want to relook at it and with the revisions will come changes thank amendment to move that to the department of finance i don't know if that's made it to the council yet but the that was a discussion from corporation counsel who headed the task force in trying to create this records you know not just the retention but the management of it as well we get a significant amount of requests for information you know oh boy p requests are for your requests and those take time and effort to be able to comply with in the corporate counsel i think wanted to get a better handle of the records management so that they were responding to those requests in a timely and appropriate somewhere in between that we need to work on this yes the comic book has always been the one who is the keeper of all county records and that's that's in the charter so we know that and so if these people are asking for a record was the records manager then specifically what does that records manager do for this department and others i think that's what we need an explanation on do you have a draft description of the responsibilities and duties of this chair no i don't and to be quite honest you know we may be a little early here because obviously the initiative needs to meet with your approval we need to do some legislative work to where this body would be in our department so you know we may be a little early with our requests so i think you can make that determination over the budget process when you meet with corporation counsel and and see where they're going with this ok and  requests of one position for a records manager and that's where we are currently so if you have a question regarding this program area you're welcome to move it forward they if you're you already mentioned one about the one time requested you would like to update the cost allocation program so we understand every crisis i'm trying to understand this one thing requests to shred document just was along with the records manager position in anticipation of being able to under whatever the policy base which i know involves scanning and documents he regards to that twenty five hundred dollar desk and chair i did find the fifty dollar desk and chair which is in the upcoming pages on two twenty eight which is for another extension position you are asking for  program that's for cubicle partition and desk and chair for fifteen hundred so that's just you know jerry those kind of little things jumped out at me because every thousand dollars here or there can add up at the end for something so just a question but we can i mean i know very pleased that the committee members are going through details and looking at those differences thank you thank you for this victory no do you have a question sir no no i think mike my question has been answered and i we there are i guess details on on these positions and why they're costing us so much as far as equipment is concerned also thank you joe thank you so if you look at your of my pleasure to introduce our new account system administrator mr steve to sorel he comes with a lot of experience he's been here thirty days so it's a sink or swim time she'll she'll be jumping in depending on the on the questions and and information you may need but let me move forward into the accounts program if i might these the college program provides a centralized accounting and financial reporting for all county operations additionally this program in ministers the counties account to be able fixed asset and payroll sponsibility as physical your sixteen program highlights the fiscal year fifteen  report was issued on january fifth two thousand and sixteen which was five days past the deadline the way it received in it though it received an extension from the g f i way as mentioned to you by our external auditor at a meeting this past monday the short delay c lot of time and energy blood sweat and tears went into this report if you think the kaffir is hard to understand and wrap your head around anyone together the count's division as another highlight mailed out over one hundred thousand dollars and still dated payroll checks in february these are these are checks that for some reason or another never got cashed so we went found the people some and left the county except for a so one hundred thousand dollars in stale training with almost fifty participating participants on a county wide basis the division has been working closely with housing and human concerns on section eight housing voucher payments via a c h this to eliminate the cutting approximately two thousand checks on a monthly basis the division completed testing this new process recently and is projected to go live in june or july the payroll section is continued to hold its quarterly superuser meetings to update the appropriate supervisors and time keepers of changes in issues related to the payroll system early on and i just want to mention that earlier this year we found that both her and b accounts within the conservation were very tight we came before this body for an eighty five thousand dollars budget amendment that you granted i want to thank you chair and committee members for that payroll section of the accounts division is looking for a payroll account to when our internal control section was created in two thousand and thirteen we relaxed we allocated a position from the accounts division that it provided a good amount of support to our payroll section historically additionally the payroll section last too long time employees and us and has unfortunately been trying to play catch up ever since the amount of work it did not decrease for the payroll section over this time period period but in fact has increased over time due to new new mandates such as the affordable care act reporting and bargaining unit adjustments the result is that some of their work has slipped and has resulted in the vision having to pay overtime to try and catch up this new expansion position would add much needed manpower to the payroll section in this position for a variety of tasks including vacation pay out requests and various quality control analysis such as overtime temporary assignment e a lot of the work that this person would be doing would free up our payroll supervisor and payroll manager to do other more important audit to type functions as well  back to my earlier comment you just reviewed this past week the single audit and i know there was a comment that i think they looked at they looked at bit forty they looked at forty forty reviews and i think we had four four findings and that was ten percent i want to point out that the payroll department has made great strides in the years if you go back to the same lot in two thousand and thirteen they looked at sixty one or sixty reviewed sixty records and found thirty one deficiencies so the four may seem hi procedures any questions on on that particular request questions no i don't have any questions on the section but i do to keep that other section above that the only thing before accounts was administration ok and salary increases for the regular wages net of the new position for their workout and increases amount to eight point one percent of the total i notice there are a thousand dollar salary increase of thirteen was out of position filled with a new individual at a higher scale or  department couple analyst position to address that audit finding a mike my question is this is the same person going to remain in that position or is this a position that you're reallocat reorganization is to include the capital  mike my concern is that with these reorganization it makes it look like we're being really really generous because we have two positions that are getting an increase if they're all the same individuals are getting a grace of seven thousand dollars each for pre op work which amounts to somewhere in the resort announcing the closure commitment july and then we have h and s closing down it's really hard for me to feel like these are really the kinds of things that we ought to be doing when everybody a lot of people in our community are having to ratchet back their expenditures and and really they're going to be in really tough times and these are the same people that we're asking for additional taxes so it's just something we need to be a little sensitive to but i understand the need for reorganization just a little bit hard for me to get comfortable so you your justification for this expansion yes actually the expansion is start to add a new employee to organize or reassigned position title as well as job description yes let me just explain right now the shop sure of this particular section in the positions that are within what we call accounts payable claims and inventory section so section is actually supervised by the currently by the accountant three position which we are proposing to be we allocated to an accountant for and underneath his accountant reorganization is to be construction in part which is the capital piece asset into the accountant three position which will be at a higher pay scale which is a capital analyst position is a scale so when you say construction are those are capital a c i p projects yes these are capital projects that are currently on construction and once they are  serviced and that then we will transfer into our capital asset and then who does this no right now  expansion position sorry to harp on this but i was the one who pointed out about the desk and chair thing so are you familiar because this particular expansion is receiving cubicle partition de chair at fifteen hundred versus the previous expansion position is asking for a desk and cheer for twenty five hundred dollars so being that you're there in the trenches hundred estimate but the fifteen hundred estimate because we do currently have a space is just another of positioning but and just adding on partitions ok that discipline the review and i appreciate that you asking for positions so why wouldn't you be reducing the overtime or premium because this is something the director and i had a good discussion as regards to the calf or if we give you positions why would i need to give you more overtime pay well i mean back to the payroll account do they don't really participate in the count for that much that that work is not done i merely buy this type of a person in this particular section so i used to hire an outside consultant so for my employees to do the work we don't have any in the house at this time you know so everybody is on regular employee status correct how long do they need to be trained before they can do the job i mean chair ok i think you know historically you know that our overtime as been averaging around ninety thousand dollars a year and and i'm happy to say that that you know we don't really have any c t o anymore that we don't we we pay over time but it's just a lot it's a lot of work here and call it the kaffir here in closing all the i apologize show would you please repeat that we need to just do it better because i'm not too happy with premium requests from all departments questions the story thank you chair with respect to the looks like for positions that you're operating these are all jobs that have been in the in this department for a long time who is doing all of that and i guess make it simple i would appreciate it if you could get back to us i don't expect the answer now but i think it's important that we understand what jobs are you needing to upgrade these people to do versus whose job was it before and whose what responsibilities are transferred being transferred from which positions to which positions because you know the jobs in your department are virtually the same you've got a whole lot of stuff to do with it and it gets out it's been getting out for years so if the reorganization is handing people roughly eighteen percent increase  to do the same job let's look for another way of accomplishing that same goal carefully could request of the outline of how this how we can justify spending appears to be  somewhere in the neighborhood of twenty five to thirty thousand dollars on upgrading existing positions on existing personnel by  requests various quality control analysis such as overtime temporary assignments etc so that job description is that what you do currently and not currently as far as the vacation payout is concerned we do have about six to eight weeks backlog in when an employee terminates before we give them the final check the reason is the part the position who supervisor and apparel manager ok thank you and remember cochran i would just add that you know they're doing that but they have a lot of other work and they have more important work to do like doing so monitoring and spot checking in and doing all the things that you know directing accent or managing as opposed to doing busy work and so this this the goal here is to free up the payroll work still done on an annual basis then we've got a phone different option of dealing with this issue it's a it doesn't make sense at this point not to see that if you get greedy efficiency that's maybe something we strive for but if you're giving somebody a substantial increase to do a job that is already being done then i have a problem like mr white said we've got a lot of people who are not going to have jobs very near here in the very short term and that's not easy to live with so i would like you know upon your request to get specific answers on these questions what w where why these physicians being put in and why are they being increased as much as they are i'm not there i want you to keep working so hard what we need to get the job done but not be that much more th together synchronizing with our financial system so when the user instead of filling up a p d f form and then mailing it out to purchasing for a purchase requisition then this online for will be just a web based form and it will feed through the proper channel for approval and then from there once it's been approved so when we receive the item for that sorry let me just go back so once the purchase requisition has been approved then a purchase order will be created by the purchasing department now the purchase has been received by the department then it's everything is going to be electronic where the receiving part is going to be done electronically and it's going to update our system electronically so that's the complex part is trying to free did through our financial system so so i cannot assist you don't fifty projects and so it should just say oh i take it you do this that that makes you know they would have to agree that this is really important and bump some other project out of the way because they have so many projects stacked up excuse me mr walker you know so you don't have personnel that can work this out with the assistance i i'm not aware of it and i'm not aware of any and in our finance department  end user will enter data into some form and that gets propagated into the actual program that is supposed to do it without any intervention from anybody on your staff is that right ok yes ok that is something that needs to be programmed because it's there's no off the shelf stuff for that and i can see how if i t has one hundred fifty projects that might fall pretty low i don't know that one hundred twenty thousand is  is i mean that might be a little high but i understand you need to put a number out there and work on that but that is something that can be done somebody a web designer can do that but they have to be walker thank you member couch day estimate here is based on my voice already on a consultant who already did some work for our purchasing department so based on those rates and ours that's how we came up with but we haven't formally gone out for a bit on this but but but again it's based on on the amounts that we were charged previously for the same type of work the other thing i might want to add is that it the committee or the council previously funded about seventy three thousand dollars this work but we've been able unable to continue the progression of this over the last two budget cycles anyway just for your information thank you for the questions members mr white to share with us  he said that we've we funded seventy three thousand so this is an additional hundred twenty or was a seventy three thousand relating to the upgrade to one solution of the previous work was done  with the purchasing department the seventy three thousand scuse me and my understanding of what was the work that was involved with the seventy three thousand you know work sixty thousand yeah i mean again you know we could we could potentially we could potentially break it up do it in phases again this number was a number based on on charges we i don't know if this exactly the same type of work so director speak before the the system we have was bought in the late eighty's it served us well it's still cranks out the information on the backend it's not very user friendly and it's not fully supported by sun gard anymore you can't buy any upgrade you can't buy any new applications and additions to that they're putting all of their effort and energy into their one solution product  in two thousand and eleven the county upgraded the system from version four to version seven point nine which we currently have which is a web based suite to handle its financial needs this upgrade improve the county's organizational efficiency and provided more readily available information to manage reports for departmental users while the county has benefits over the years for the current system there are the shortcomings a couple of which i just gave you  the one solution project product as i mentioned not able to require additional modules but the following are some of the benefits of migrating to the one solution online form completed online get electronic approved from the department then send electronic electronically to purchasing who approves an issue issues appeal through the accounting system you would see that in real time the accounting system would then income of the money and  the vendor invoices receive this is to email the department for approval of the invoice and once approved electronically the invoice would be paid him it will improve user interface it will be faster it'll be more intuitive  you'll have more customizable manager reports the one solution is based on the user experience one of the big complaints we get from users is this not easy to operate this development of the role base user interface defines ideal information and workflow scenarios users can configure individual dashboards access system data and monitor processes i would add that the i t r one is very in the work would there be as it sounds like we're taking a significant amount of workload off of the office staff well it's off our staff it's also off the staff of the various departments that process of paperwork through us well it's i mean it's not yes i think we would certainly have some benefits but so what all the ifas users i don't i think we need to put our heads together and positions one claims three administrative staff can you give this committee some comment about this so called and no training chair so for the idea staff because in the past years we've been sending our staff to specific a d p which is what we're using for our payroll system so we just want to send them out there and look at other staff and then we're also looking to further general larger section this is for the accounting academy so we do have some musical chairs but for the payroll section and the staff with their own training and as a client were invited to participate in those training sessions yes they do hold their annual conferences as ago any questions on this area of requests members i don't know that we have a particular policy it's seems to me we've copy machines always seem to be things we lease for some reason the smaller priced pieces of equipment we tend to buy again you know i just ask that because you know i've  they went to a purchase program and based it on an extended life of the equipment so they went for five year life cycles but they had the equipment provided all right call to come up with cycles that county just like copiers saved one million dollars of expenses and the provider negotiated and agreed to a fourth and f maintenance agreement including inventory control because i didn't know there's a lot of things we shelf life seem clued in in packets and whatnot so the provider provided all of these controls and inventory controls on i would ask that you would shirt because i think it's something we should consider thinking this chair and these are very important items to consider historically you're correct in you know we have been leasing copy machines and it has been going well for us  year or actually like it was in the last year budget committee discussion but right now we are moving towards and as we get to the department of management's i t services division discussion the life cycle equipment placement contracts that he is c t o is working on and i think more specific discussions can happen i'm with him on these basically the exactly what you described we're going to be starting starting to do with computers and so if we can start to do that with with computers we might be able to align that same type of contract to be ready for that thank you for that mr bowser so i just think that you know we should be open to approaching things differently if there's any fish in sea or cost saving so i just ask you to think about those areas of financ purchases versus at least equipment bridges purchase purchased seen and it will come up in the r b t section where it is a request to lease a copier and a software to go at that computer at the desktop and and on and on so i think that will be a great topic of discussion because trying to cross reference also where when purchased when and it's been nice to bring it all together and home before we move on there are just a few questions under accounts program i'm going to ask the deputy director if you can respond if you need to dish not time will be happy to have that there a even us for complaints regarding requirements for the affordable care act are you able to give this committee said this afternoon some comment about what type of compliance is the county being required to are p a r p g and d m v were charging the countywide though they are you know they are certainly county wide expenses but traditionally countywide stuff it's come through the our mail room have been people in this building and so we thought it that if we had those departments a budget that expands within their own divisional budgets that would be more reflective of their actual operating costs and and so you'll see a reduction in in the postage on the county wide but also an increase in their divisional budgets for that it same expense but it's more about seven division is responsible for praising and assessing all real properties in the county the r b a division also maintains property ownership records administers various exemption programs maintains the county's geographic information tax map keys for parcels that are designated on the g i s maps the department of planning really relies on this information for zoning and permit planning purposes the s award at the two thousand and sixteen as are users conference this award is given to user sites around the world to recognize outstanding work with g i s technology was what and was one of one hundred seventy five chosen for more than one hundred thousand as reclines worldwide we have modernize our land records with the with the parcel fabric which updates new parcels very timely and is integrated with i a s world and available to users within the county  which we update annually for the public additionally our ph initiated a pilot project with assessment and analyst and is in the final review process for for key a made up of crock of approximately five thousand parcels the project the project which utilizes desktop review of parcels and the improvements will might added assessment values which may not have been an identified by normal processes and is done more efficiently also the tax map section is up to date on ninety eight percent of the approved subdivisions within the digital environment and for documents ninety nine percent up to date of approximately eighty nine hundred documents received from the bureau of conveyances to provide sales title changes and even information for our p various staff continue to be timely involved in the implementation of the maps project i think you've heard a lot about maps and the impact it's going to have on different personnel within certain divisions r p s one of the divisions that's going to be very involved as we move forward on the mapping project the last i heard this is going to be a thirty month project so i believe you'll see in the budget some money for overtime your comments right let's start with goal number one one point one says conduct at least eight senses and lead to educate the public about service provided and number two as well offer from you know the two ideas and we're getting more obstacles as we're finding with other integrating other vendors we're just trying to replace our system to that to that same line and what we're having problems is  implement the other cost factors we have a cost factors that was done out in honolulu and he's no longer in business so we've contracted marshall and so if it's a company by core logic to provide that's one of the leading people who another vendor integrating with tyler system is challenging to say at the least so as far as the your question as to why we're not doing more as we're we have stuff really dedicated to this upgrade project and we're not going to be as available especially during certification time or other periods because we have a lot of projects going on internally that are probably more required for us to get sort of cation through it through through for you  so that sounds like a little bit of a staffing problem my only concern is these public sessions especially the ones about the exemption programs and i'm assuming that means the circuit breaker as  well these public sessions were probably very important i remember for two thousand and four five actually went out a lot of times to all the different areas and actually had seniors coming in and going through the circuit breaker applications right then and there and so you had people out there helping them now is very very beneficial i don't know if that is one of these programs that you're cutting back on a tremendous for me just just to highlight that taxation collection section is now in the treasury so as far as us we would it be so called be doing a lot of activities as far as and you estimate you're only going to get forty percent of that done i mean in all likelihood that number of forty is pretty pretty optimistic with tyler to technologies we have contracted with them and i think jerry can attest he's in the audience that is falling by the wayside might think that number is forty years duchene way more aggressive than what will actually be thought we had hoped that all of our claim for exemptions for home exemption change of address would have already been done i think a couple years ago probably fifteen or sixteen that estimate was probably about ninety percent probably but nothing has ever transpired with with tyler technologies at this point is it because they're not performing or you know i don't know if we have the b team or do you just don't have the resources to put out it but as of right now they're pulling people off of the project and bringing new people in i think they're just they're spread a little thin and i think i don't think they're meeting lot of jack theirs which ultimately we haven't made any payment because we haven't been receiving it ok the first part i didn't like to hear but the second part helps a little bit that you're not paying anything for it but still it's something that needs to get done because ultimately it's going to save personnel time so they can go out and do the education or whatever else that is backlog so and there for the reasons we contracted we wanted to get all these things on board because obviously it seems that circle time and the typographical errors that come with transpiring numbers ok that troubles me that that you're getting that kind of response relating to condominium use one hundred percent and then three increased rate of physical inspections for parcels receiving agricultural dedication up to twenty five i like the increase but filled with in the last two months so that's actually actually good but you know at the same time they still got to get up to speed now so you understand in the code understanding the program we just had b of seventy come before it and although it didn't pass that was one of the reasons what we were waiting for whether or not it's going to change not going to change or whatever so here we're going to be moving forward that divot that section with two people we're going to have to lay out their program goals and what they're go do look at what we're going to do as far as number four you said how much are we going to do where we're going to do it using i swith hope that eventually we could get to the tablet beast where we could have a  integrated for for that the ease of their inspections to be more i guess you work packet sort of speak so that they could be assigned information to go out to the field and do their inspections accordingly so i think i'm pretty sure that would be one of our top goals is to have some kind of audit system that we're going to start going around daughter current agriculture properties i believe chairman also expects us to machinery and equipment you have two of those field tablets i think you just mentioned that would be equipment for at least two bodies that that is the plan but that that those few tablets are actually shared by the entire office including  appraisers if we need to where store early in the stage we still have to upgrade to a new version and we win those ten and there's some other things that i know id is monitoring for us to make sure that the tablet we get is compatible with we have and can we use in the field that's also a question of whether or not connectivity will be available where we are in remote areas so there's a lot of different things that we're thinking about right now and whether or not that portable mobile device is something that will be supported by here or not so there's still some information that we need to know we don't know actually and the few thomas we're doing is not i pad so it's a little bit more rugged and be able to be seen in the  sunlight and those devices a little bit more than normal tablets that you might think of so i thought leave like puff books or motion tablets are about twenty five to three thousand each so a little bit more rugged and made for a f when things change out of a certain zone in order to get the proper assessment for property tax values that falls to the car crimes from miami to your office to finally on paper and then into our county coffers for real property tax so i am hoping that somewhere or the department is going to address that disconnect didn't and it's not sure if that's within some that allow a different type of usage that impacts values and i've been again the issue of what is appropriate solution so i would see the disconnect at this point in time to your chair is a lack of information being provided from planning department transportation department of housing and human concerns department to earth p t on those the plans because it is being leased for commercial purpose unless we are notified you start to or has no idea of capturing the costs or those revenues so part of it is getting them questions did a good job of looking at what i was looking at too and that of course is goals in regards to physical inspection and because you know we have had so much testimony in this chamber about this and i'm happy to see that we're going in that direction and i hope we can bump this up to more than twenty five thank you thank you the two were just say before mr workroom mister because i think this is part of services to enhance lane emain eleven speak time which you can track specifically to upgrade the quality and currency of the island of maui parcels if i understand the requests speak about it i got a little power point to maybe show you so you can really kind of understand the difference is the increased costs because you're flying at a lower level creates more flight paths to to capture all your your your entire one which is close to being signed is four inch four inch imagery which ultimately it shows you three feet by three feet show gives you eighty one pixels if you go to the three inch which we had flight pattern on in two thousand and fifteen reduce the inch which actually gives you more pixels per same amount of square footage so if we keep going and then from three inch to two inch the difference is of the pixels and furthermore and this is what our current contract would call for is eighty one pixels versus what we're proposing to shoot at three hundred twenty four pixels and then that is four inch imagery that is th imagery if we didn't have the contract that this is three inch imagery was received last year and then this is the proposed two inch imagery he even though although this is our request there's a lot of different departments or divisions that utilize the imagery so i guess i'm voting for everyone but ultimately for our division we're looking at physical depreciation to identify the structure as it as it sits today  it's hard for me to speak for the nine one one but i'm sure for police and fire fired looking for access points and roadway so that it has imagery to put a dollar figure on it it's not so cost is to seventy five for the whole bundle of rights like the areas that are not inhabitable either right now and i don't think it's worth shooting that high resolution so the request is for populated areas and it's only for my island if this council chooses to shoot other mile and that's how you get to seventy five so if you feel that certain areas should be shot and this is too much of requests then we would just simply with it down to what you would want to shoot but this is this is what my recommendation would be because we want to make sure we capture everything we can capture the imagery is housed so it is version to the sense that you'll forever have that imagery in your database so if we do go and find the property that and how often do you feel that the county shoot on a rotation bases be looking at upgrading their inventory every three years they read to for four to five years the state one one one one one contract is to be shot every other year and that's what we have going back to i think two thousand and five or eight somewhere on there but it's been shut every two years and the contract was for five years and this is the last year of the contract that we shot in two thousand and fifteen so it's this is a year one of maybe five years five year contract to shoot every other year we wouldn't recommend shooting it on resolution as were mentioning it was shot at four inch of entry would you consider those islands in need of the two inch resolution it depending upon the place of issues over elations present on those two  chairman i don't want to say it's a return on investment but i if you think the imagery is high resolution imagery there is important yes it is imported whether it's i couldn't speak to whether or not it would bring about the amount of dollars to fly certain areas but it can be made the spot check for certain tensor areas and others so i can have the image and  council support this requests with you to inspectors recently hired x two months ago or more or less when do you feel that this that i will be available for those type of positions to be utilized in the field know that i think when police comes up they this should be able to tell you when that contract or their pain the payment schedule and that term to mention that so if if the flights start in january of twenty seventeen and take a few months to get in the data would be available for assessors to review for the  calendar year eighteen assessments which would fat factor into fiscal year nine teams budget so this is how long we have to prep all of these things to get it in thank you just a victory no thank you and i might be she question is this is done in conjunction with one on one right really murder she services so this is going to be done no matter what that's great ok so first of all that's it's already scheduled we're just want a two inch because they like those details i think for the world we live in today would not only the terrorism but other issues in our world you know accessibility to areas is very crucial for the police and you know i watch  are all way out there but you know what they do really showing what is out there and be used and i think we're way behind in that respect but i mean thank god we're not also crime ridden like maybe some of those pictures might be fresh in new york but i'm not talking you're so used so what would it be currently you're just trying to run picked over habited areas as you explained so i guess strictly for your department obviously it's to properly assess know not a black hole but to killer i mean like our watershed say our invasive species people could learn from any type of invasive floor and fun of that are up there maybe those are the pigs and goats that are just totally demolishing  cliff within a deep pocket where nobody you know walk so i mean but with this they can see that now you know i mean our shoreline retreat a visual you know up there things that are starting to impact our sure lines and better we can plan ahead we're to build not to build evacuation routes say there's a fire you know fire department stuck in the middle is somewhere and they need some routes to get out they can look at this map there's some sugarcane pine field roads or something you know i mean i just see kind of an endless opportunity in a way that if we were just scan our island and what use is can be gained out of it find some homeless camp to the middle of places and no one that's why they're there or any other illegal type activities that might be occurring some are hit into the way so that these are just kind of things that cross my mind in reference to but i don't know what kind of ticket that would be you know to process the entire island and not it's not entire but just you know key areas that kind of fall into the parameter of what i just described so you know sure if that was discussed or talked about could part of this i think can go towards police investment because they think the return creating the integrity of the system on taxation ability of inspectors to train and why leaders of  permitted or illegal use on on land use easier as well as finding out again whether or not in conservation lands there's activities going on that either the state or county needs to be made aware of to take appropriate action so i consider this to pay for itself because either we're going to capture it in additional revenues by inspections or from penalties of inappropriate use as well as assisting the employee getting more accurate information update as they go on site for those on site reviews because they'll have for their departments needs we hear what mr tiriel would like for a p p needs i think we should hear what the police and fire chief need for their needs as well as for ambulance and emergency response components pacifically familiar with an item that is being proposed by the different departments i can log in look at detailed information and it's very very helpful so i and the two inch imagery would be incredible i did notice the cracks in the road or public works can go do a road assessments via these pictures and mr cochran i believe that the whole county is is pictured red but at the four inch level and what we're asking for is this this specific areas or maui which we have a map of that is on the two inch areas so everything is is from my understanding come from this with the police department is being scanned because i haven't found an area in my county yet that doesn't have the time the tree available to it but it's just the quality level and for certain areas a four inch might be completely sufficient and and i know we have google earth too which is accessible so this is like even that much more defined than google earth yes ok believe google earth was it's not it's not as good as the forty four inches better than google operations or the one i wanted to ask the gentleman and either one can respond i'm trying to understand you know you have an increase for funding another thirty six this thirty five on the details market modeling and we're doing some basic training for the for the entry appraisers as well we are looking at maybe ramping it up and providing more training that would be almost like other appraisers would do one of which we i don't want to be like the city kind of one a little bit have a very rigid training program which is a double edged sword because if you don't provide it then people can i get promoted as well so but some general classes about professional  are probably a course that if you kind of follow what is required of private appraisers and you somewhat mimic it or run in parallel with it i think the overall quality of the appraisals would probably be being creation using all sales and all approaches to value that's your allowed by law a few appraisers using a single property and using necessary to be assessing the parcel so we're doing it a suit six similar goal so to speak but the deed to plainfield is a little different because we assess every single parcel in the county of molly and interchangeable but they are actually assessors but their vision descriptions are titled pro property appraiser and that's what i asked you that question because for some people there's a big doesn't actually pay for it that this is what we're paying for is the resolution difference between the four inch and a two inch ok this is an  the d m v issues new and renewal driver's licenses new and renewal state i d s motor vehicle registrations various county business licenses disabled plus parking placards taxi driver permits satellite offices line a physical year sixteen program highlights for d m v the d m v a successfully implemented act one seventy two which mandates the issuance of limited purpose driver license limited purpose provisional driver's license and limited purpose instruction permits effective january one two thousand and sixteen through march eighteenth of this year the d m v has issued ninety seven lice two hundred thirty one instruction permits and four hundred fifty three written exams the d m v successfully implemented are over the counter acceptance of credit cards and provide customers with this additional payment option the d m v process  credit card payments of between fifty five thousand and eighty two thousand on a weekly basis the d m v has also successfully responded to the unexpected closure of the call of the service center and restored operations at temporary facilities and  increased customer service with capacities that are key a line book lani offices including opening half day and weekends at this point i think we would ask if there are any questions related to key activity i appreciate you sharing assuring us that the least you know of that one time appropriation regarding that one hundred ninety five thousand dollars thank you very much for showing those adjustments including the software mine and other deduction of thirty thousand thank you its members the financial information that the chair was referencing starts on page two hundred thirty one and it's combined since for a property of ministration assessment and the d m v are part of the same program their financial information contract mailing payments they were being made through through that centralized postage and the intent of that centralized postage account was for the payment of  were coming out of the centralized postage so we reduced the centralized postage for those amounts and had them increased in those cost centers so the funding is offset there's a reduction in the county wide centralized postage for seventy thousand dollars and then the corresponding increases in those programs utilize the sitting county's department of in technology computer system that for motor vehicle and driver licensing we are charged a penny and a half i believe for each type of inquiry entry modification into the central database and that's all by agreement mr avila yes that they have really not taken up that feed for the longest time but that has been the standard for v back office can you share with the community what are the responsibilities of your back office staff regarding driver licensing renewal how many people do you have in your back office just to chair mr burroughs thirty nine positions are in exhibit thirty nine of positions are in the front office and in the back office the sixteen positions per person per placard that is issued as a reimbursement i believe it is however by putting it with the grant program have actually into its own separate gran program i think as mr baez is planning to do will be better able to track it and treat it like the other grant programs that we have  thank you mr chair as i believe i explained before quite a while ago that the state has progressed will be gone from a four year license to a six year driver license and subsequently to an eight year driver license so whenever you change that long jeff video of the driver license there it creates certain gap periods or law we knew a period and we are currently in the lower we knew a volume period when i looked at the we knew a volume based upon expiration that is scheduled to i believe come on line i think twenty eight teen and licenses there is able renewals it has come up to that this why i put those numbers down and i feel even though i'm not asking for more bodies at this time i think we need to account for potential everyone here knows that our credentialing process has dramatically increased because of the documentation requirements in a compliant driver license and that's where a lot of o staffs time is handled is used in explaining working with the individuals to make sure that we have the documents that is required so that we can issue them that complain not really looked at the birth records however the trend is every since the state has been have begun graduated driver licensing requiring hundreds and behind the wheel training we've noticed that teenagers are curtailing getting your licenses a little bit later however at the same time the ones that since they're going under going driver and behind the wheel training we're finding that those people students are passing a lot quicker passing the rotex what is impacting us in terms of road test frequency or demand hopefully during the slower period our game plan was that we had cross train some of our key staff or our service service reps staff so that in the event we get so that we are able to run that yes we have actually had some discussions about that the mere was interested in some land surrounding the land a civic center there are some challenges with ownership of that land and get possibilities i don't know if there has been a comprehensive discussion about that yet as far as with the different agencies that possibly would be housed there you know parks department is specifically again you know mr barr's mr walker i guess make an assessment you see if it has you know potential for us to consider that say but they are sites three months i'm assuming that's dog licenses and not driver's licenses is a real if i may mr mr chair no those were for the limited purpose driver are undocumented and we are getting a lot of play we did when we implemented that program we did it we purposely did it at coloring the outlying districts see a what's happening because as people coming in and they're now starting to come in regularly and with our recent relocation of our service and our operations to the satellites we've had t since we've we placed service center staff at those locations we did we are accepting limited purpose applications at those offices so our big drawback when we that is what do a do as i don't have enough staffing to really absorb the additional possibilities that those satellite offices so well probably end up constricting at that we might receive some complaints but that is not dog licenses  page two thirty seven thank you it says increased customer satisfaction and percent of customer satisfied based on survey results actual in fifteen was ninety four percent estimate and sixteen was ninety four percent and your estimate for seventeen is ninety percent you were expecting less satisfaction and if so why oh no that is there's a very good question mr koch that customer service i believe we're the only d m v within the state to actually have both legal and out and give our customers service to fill out while it's voluntary and so real good feedback training we share the results with the staff and those areas there were we feel we get feedback that we need actual training on it helps us to focus what we have what areas we need to train and there compilation while it's not a scientific calculation because i'm not a statistician we have basically so many categories that they rate us a thing it's your wait time your knowledge of the staff friendliness of the staff and i believe one other category and based upon their rating we take we take that an average it out and that's what the ninety percent that's a composite of all the four different categories ok thank you and you know that kind of segues into i notice right above that i'm going number one your wait times are going up that's probably because the lack of additional staff or what might be causing the ok the average wait time is a factor of your volume and the number of employees you have serving the counters and pretty much on a daily basis and we send out swell we have most of the service center staff service front office service representatives stationed at the service center on a daily basis we do provide staff coverages to the satellite offices  daily coverage now given the potential increase in the limited purpose that are coming in and the upcoming we knew increase we knew of volumes as well as the increased transaction processing time for a driver license i believe our wait times are gone that yeah it's going to creep up however in our attempt to mitigate that which  actually part of our other expenses is we're now looking at and we have been looking at we need to divert walk in customers to other methods of transactions for example s your system which formed the basis of that up create to bring the chaos on board it's only coming on line now and we're going through the  collecting other payments we need to move certain transactions out of the customer flow coming in so that is our best guess as far as the average wait time and the other thing we're starting starting to look at is the possibility of accepting appointments to the customers want there as part of the i think last year you folks gave us thirty thousand dollars software upgrades for cueing upgrades we were supposed to implement next month couple days so ever based upon what happened at the service center we've moved that back to june so we'll be starting to pilot how  moving appointments customer appointments say for driver licensing to off peak periods so people can make an appointment and command and mix that into our walking floor we need to experience that to see what is the impact so we have a lot of things in motion there are coming in there as we put them in place will need to react in a just to see what is working and how do we adjust fortunately i think  say going back into the comments the customer satisfaction we're able to do all of this because the credit of our staff i think they've they have come a long way and  percy now that you have the situation you have at your service center what are you doing with the staff that you can obviously fill in all the satellite  relocated our back office operations temporarily to one main plus plus we are working off plastic tables right now we move things and our front office staff we we assigned them or they are working at the three main satellite offices on top of each other i think you've been to their off key hey her busiest office  and the conditions are pretty cramped however fortunately i give kudos to the staff again that even though we're working and we're providing press them or service in this type of environment i seldom receive i have not really receive direct customer complaints so i believe they are doing well and given the circumstance our call center is fielding a lot of calls as to what to do so and anything else cause you registered this year it's an annual registration so every vehicle is registered on an annual new vehicle initial reminder to every current registered vehicle and then they then use that to come in and we knew that registration for the us we based upon the current toll we issue we projecting to mail out about sixteen thousand we knew was per month of course not all of them will renew a lot of them would have moved the relocated at forty three cents at the ball  comes out to eighty two thousand five hundred sixty dollars a year the other component of this is the every travel license that we issue at central issuance now so that involves male male charge from our central production foot facility so this year we're projecting about forty thousand plastics to be mailed that's our best estimate council did point out last year we went in and made an adjustment so i looked at our year to date to verify what we  what our expenses are just going on memory but it's at this point her current rate we're we're right on budget it's going to be slightly over thirty seven thousand paid six thirty nine not the last the last item on that the  increase combined with the i b i i need it i think we've increased our pest control i said which is part of that how do we need to we've had some rodent problems out of daily remove all of the trash from within the office well thank you and then i have to make mention i guess your one time expenditure on detail sixty three one hundred decrease  for your professional services is that project company the manual people bates files yes yeah so talking thank you thank you very much i appreciate you thirty nine on the position title of sunday service representative to seven point three that's a point three is a part timer what is that  and they're getting to six dash thirty two on the details on the i know we discussed this before i can't recall though but the miscellaneous other costs seventy thousand two hundred and there's no  explanation or about it wouldn't have explanation because there's no change but can you refresh my memory on what that entails the seventy thousand two hundred  thirty two that sixty to one miscellaneous other costs based upon a per transaction basis so this year's funds will if i'm going to proceed to do go through procurement for that because i think i'm comfortable enough with what we have in place however the amounts that were funded for this fiscal year there will lapse and they'll go back to the general fund right and i want to carry that forward because i believe the other state jurisdictions from the mainland are using to do exactly what we are doing so we're not the first but we want to move on and if we can make it work then it's going to be a lot better because then our staff will focus on the customer needed face to face we appreciate your responses to the committee's questions and your comments regarding your operations thank you very much we're going to bring  sunlike so let's rock n roll in europe up to these requirements at this point in time we should continue the review of department of finance we show no good to the purchasing division gas mr walker for opening comments and then as mr king for his thoughts on this division mr walker i thank you mr chair the purchasing program the purchasing program and ministers all purchasing and contracting activities for goods and services for the company also this program provides technical assistance and advice relating to purchasing and contracting to all departments physical year sixteen program highlights  statistics and data as of three twenty eight sixteen purchasing as advertised one hundred thirty six large contracts and that when i say large i mean contracts over twenty five thousand contract bids versus one hundred eleven l of physical your fifteen they've issued eleven thousand two hundred fifty four purchase orders process eighteen thousand six hundred seven p card transactions versus twenty thousand seven hundred five in all of two thousand and fifteen on the leadership and training area the central procurement officer mr greg king to my right is serving as the chairman of the procurement policy board for the state of hawaii and is also the treasurer for the newly formed national institute of governmental procurement and i g p chapter that includes both hawaii and alaska the group meets via the internet twice a week and its chapter charter application was just sent for consideration reg it's been guiding the group through the strategic planning source requests on its website and has beefed up the priceless content including links from the state and ws ca now as paul price less on the internet tha have any specific comments on on the budget part there was i was in the audience earlier and there was a bunch of questions related to versus purchasing and why copiers and why not if you'd like me at this time or at a later time to comment on some of that i can give you a few insights we'd be happy to hear from you know because they're going yes first first of all copiers are the copier companies typically have in house financing arms and so they make it very easy to lease versus other equipment and even other office equipment and so that's why you have that option we have a state price list which includes the option to lease or purchase depending on on which is the best value to the to the particular department i think chair okama mentioned something about one of the agencies had gone into a whole comprehensive contract for all of their copiers for for for the entire thing that's something that would we we might be able to save some money too but it would really require in a future year redoing the budget and having or actually over subsequent years complete consolidating all the copier requirements under one one person or individual or department or division in order to do that because right now the way it's budget is each department does kind of does their own thing and you know i have to give you the complete assessment he mr king so i understand what you say because that county made in assessment study to understand advantages disadvantages cost implications benefits again disadvantages and then moved toward after this assessment so i appreciate your comments because you're right before we move anything we should have put very good assessment of them ok leasing typically leasing in general typically is not financially advance advantageous to the county or government organizations because we don't have we're not pain taxes so we're not looking to maximize expenses to reduce our tax liability  so most of them are just versus leasing things i've seen just don't pan out there are exceptions quiet after hurricane and ek was leasing lots of equipment because they just didn't have the financial wherewithal to do anything else  but so those those kind of decisions need to be considered parks the parks department is currently in the process of trying to least several mowers based on a budget item from last year and that that process it's very complicated it requires because the the the mower companies don't have an in house or integral e seen function the copier i mean the the motor companies it has to be two transactions so basically we're going to do two bids one for purchasing the cop purchasing the motors i'm sorry and then also another one with a financing company to lease it at a certain rate above rate or prime interest rate so a the paper works very complicated thank you for explaining that to us again we don't know all the detail what challenges you do it on a daily basis you are more professional in this area so we look for your guidance in this a pre commit requirements for the county so  want to say was this is my fourth budget cycle with the county and this is the first time i've ever seen the purchasing department ask for money and it's two thousand dollars and i could have mr king explain what he was going to do with all of that and and that's a we don't normally have any issues with purchasing however there was comments made and so mr king you know we appreciate the responsibilities  challenges you have to deal with from various departments divisions and employees so give us common sense it's still a lingering subject for  that you may have implemented to reduce any future issues with cards ok first of all i cannot from my vantage point prevent or see or necessarily  administration is increasing the number of signatures we haven't implemented that yet so there's a when the department head there's some people in the administration that think that having the department heads should be signing all p cards and they should be responsible for all activity the department heads can't aren't they're not familiar with necessarily what's what's what's going on on a day to day basis at the lower levels and then of course the other side of it is you have a media supervisor should be signing that picart log so we may be expanding that from two to three  one of the things internally i'm doing with within my office is the card the cards all come in at the same time of the the bills all come in at the same time and so it's a it's a process and it's a process that we have to do quickly and so we have the audit finding is a reason the reason for the audit find it is we have sacrificed quality for fish and sea and getting the thing out my my the thing that's keeping me up keeps me up at night every month is making sure that we get the picart build paid because we don't have any budget for any finance charges and just the complication from finance charges would be horrendous so i've known her for twelve fifteen years and we haven't had a late payment yet so that's my main goal but on the other hand we also need to be looking at that real closely so i restructured my division to have two people look at look at the things and slow down a little bit we could we have an extra day or two we can look at things a little closer so we're working on that  to forward it be for council to consider and support you again revising it updating a purchasing policy that makes sense for the county in this point in time it's a good idea with a lot  practices and for me i would like to speak to you in the states to update their mentality to our procurement and purchasing agreements that save the tax base fund before required vehicles and you again this may be very hard to implement with our you know the various departments but i work for an electric utility years ago in texas and they bought it was a they bought basically two types of vehicles they bought sedans for office workers to run around to the various offices in and they bought utility body trucks and there was a lots of other heavy equipment and specialized electrical equipment but what they did was they again it would require a change in budgeting is they budgeted for a certain vehicle for you know certain type of vehicle they would buy they would buy sedans every other year they wouldn't buy every year and they would buy and they would buy them for the entire organization and they might get it they would get it and it would be generally be low bid and there would be some you know chevy lumina or something that was not rated high in terms of long term quality and but yet they because they had just one type of vehicle every couple years they would they were able to stock parts and even you know entire rear end assemblies or whatever and and they would have that stuff and they would learn how to fix that car we have so many different brands of vehicles running around like running around the county it's it's very difficult so that's that's an idea it began it would require a whole their sister companies are doing certain things that we may want to at lease review and see if there's opportunities for this county to do things better so i appreciate your comments mr king is to guzmn any questions for increases in the past we've always been able to rely on almost every year or rely on some vacancy or something within our a budget and we use that we would use that money to to purchase things and so we're really tight if you look at our  it our actual like this year are we are twenty we're we're nine months into the fiscal year we have twenty we have so that's twenty five percent theoretically we should have left in our budget we have twenty percent left in our budget now my friend here in the in the administration is going to loan me some money or give me some money to cover that it's all very small my operating budgets all very small so the increases we need to cover we need to have a little more money in our b budget procurement to be covered under the way the current statute is but my point is that why should any legal government procured agreement be made available especially if it saves this tax base seen scene from another agreement that it's going to ask us to pay more right and i you know you i know i got a letter a copy of the letter that you got from the state government officer and i was board or kind of thing so you guys kind of need to do that from the legislative side i think you get better connections to right right now there's a bill at the board in which donna cam is trying to get the procurement policy board to do audits of various various state agencies and we don't we're a were first of all we haven't met for almost a year because lack of quorum lack of people capable people on there  so it's just hard to it's hard to get people to have the required that have the qualifications on their own are willing to serve so the the people on the board you know we can get people to come some qualified people to get come to a few meetings a year by doing audits is going to be know is the kero any questions for mr king katie anything you wish to add mr king if not we really appreciate your patience and hanging in there to be with us this afternoon thank you thank you we'd like to bring up our last division of the department at this time and as treasury if they would come forward treasury has two sections investment the treasury program is comprised of two sections banking and investments in real property tax fee jaxon fee collection the treasurer's office is charged with the administration of effective cash investment and debt management program other activities include preparing mailing and collecting of real property tax bills through its real property collection section of physical year six steen program highlights are as follows investment results year to date  return of two point one million in physical years sixteen vs one point five million in all of two thousand and fifteen these returns include interest or in money kept with our local banks treasury is projecting total investment returns for fiscal year sixteen to be in excess of three million dollars much of this is due to the very effective job done by our investment officer mr jack call to my right who's created a very powerful cash flow modeling tool that helps to ensure that we are maximizing the dollars that we invest in are fully invested at all times our portfolio is currently yielding one point one nine percent versus our benchmark which is a two year treasury bill which is currently yielding point seven six he recently attended the g a o a government investment officers association allat him tell you about what he discovered there other highlights include treasury's continuing work with the director's office on the county wide departments through the bank of way this is a system where department scan their check deposits rather than manually delivering them to the bank and the money is credited to the current counties account that same day currently treasury water planning and housing and human concerns the section eight section are using the service with a high degree of injust interest from other departments when i thought we do now as you should have  some colored handouts that was provided by treasury and let mr kulpa explain those to you and answer any questions you might have regarding those and our results good evening councilman pleasure to be here this year we've taken the portfolio in continued the direction that we were working on for the last couple years by getting more and more of the money further and further out so that our yields have been rising and if you look at the very first slide not that one  read the blue the purple and the green traces are the different treasury yields in their spot you know it's so the blue is the one year the purple is the two year which is our benchmark and the green is the three year if you look up above that you'll see a red in a blue trace that runs all the way across the red trace is the q two model that we buy in the blue is the model that we developed in house and you can our targeted benchmark which is nice that we're up in that level and let me tell you something that when i was at the g i away we are definitely in the upper fifty percent of portfolios in the country right now in fact we're the highest portfolio in the country that was reported at the g a o way this year was for this type of a portfolio was one hundred fifty basis points so you can see we're very competitive with the best in the country at this point the second page is really important because one second mr coe just so that we're clear because we have six indexes and five lines so i was going to ask you  leading portfolio in the state and we were tracking them because they were at the top and in the us those are single points for those different months ok so those are as circles is the current county numbers then y ok thank you i'm sorry of confusion no no no no that's why we were asking for clarification on that i'm sorry to interrupt if you can proceed please if you one thing about this if you look at the green you can see how volatile the short of the spot rates are for the treasuries the can move anywhere five ten basis points in one week is just amazing to watch them move up and down so on any given day they can swing up and down five six basis points our portfolio because it has two hundred over two hundred fifty million dollars into it it's very slow moving because there's a tremendous amount of inertia there at least financial inertia you know the next page is the next slide is the slide of the cash flow this is what this is what our cash flow through the course of the year looks like if you want to see it graphically the blue line is bank of hawaii in the orange line is first wind bank and you can see the two spikes that are related to the group property tax cash flows that occur in february and in august and then right afterward you can see i'm dropping down the reason for the rapid decreases are money is being transferred into the investment accounts and then as we get towards the end of the real property tax cycle we start pulling money out of the investment accounts and bringing it back if you look in the bottom right you'll see in or purple and a green trace that's the remaining portion of what we're doing for our investments right now it's more as maturities that are going to come that have not been dedicated to going back into operations so during the course of the year we can compare our matur ies to our cash flow to know whether or not we need to me moving money back and forth so that we never run into a situation where were we were illiquid that's a very important modification to this particular graphic this a tremendous ability to control our investment account size and then the last page and fifteen versus fiscal year twenty sixteen the blue line is last year those are monthly earned interest and when i first got here we had a three hundred eighty million dollars portfolio and we're making sixty thousand dollars a month in interest now we're doing with a two hundred eighty million dollars portfolio two hundred ninety thousand dollars a month to give you an idea of the difference of how far we've come with this project particular methodology and with how as this portfolio continues to mature and get better and better you will see this performance probably continue to rise for a while until it hits a point of equilibrium then it's go flat now unless the overall market for interest rates starts to rise but you can see the one year to the next all the way across you can see the differences in the range upwards of you know where we're at now this month we're going to do a little over two hundred ninety thousand we one hundred thirty thousand last year so looking at two hundred one hundred sixty thousand dollar improvement in one year for this month overall we're going to go from one hundred fifty one point five seven million last year for the entirety of the year it's who we're at right now which is two point one five million and probably going to be somewhere between the number there which is three million fifteen thousand to three million thirty thousand before the end of this year maybe a little higher we'll have to see the numbers from the last three numbers in the red those are in the event that we do not do any reinvestment and also assuming that there is no cause and there are cause let me tell you we have a lot of calls nowadays so there will be a lot of reinvestment those numbers will change and will keep them out i will push them up as far as we can and as quickly as we can pleased with your selections of investment tools that you've been utilizing are within your limitations so tell us the main reason why into two three hundred eighty million yet was the open return money remember the ninety seven million recent and in their case after we made that payment to the state that was the balance left on the short term absolutely that was a thank you for i know we advance money for capital improvements potentially for those that are on the bahrain program or program during the portion that you are fronting from the general fund because yes we need to be able to liquidate within thirty days on the cash we have to be able to liquidate or some some of our investments in thirty days or less is that a good understanding of the committee we could liquidate almost anything we have and thirty days from last in fact one of the strategies used by you which i haven't started yet and i would like to discuss with you at some point in the future when we get this portfolio a little bit more developed and it is allowed by the law we could start doing what's called riding the yield curve and  if we do that we might be able to pick up a little bit more in the area of gains and push this thing a few more basis points up but that takes a liquidation at about the one and a half to three year time frame free by a five year and comes back and starts dropping down the yield curve as it comes down the yield curve the price goes up we can sell it and then we get a big gain on you know i mean i understand i mean it's you know i'm not you know you just hang on to that bronco and hope you go on a good ride but my point is on the advancement because over time is to be able liquidate in issue of time do you still have those general funds that have been advance still in his short term short term portfolio investment comparable ram or it's just totally placed in advance and not just front for before we float an issue of this that's coming directly out of the general fund cash and that will be coming out of the if we have the other graph up of the banks we will be coming directly out of the bank of hawaii accounts as money it's already been spent it depends on where this is been an expenditure not whether we have an income or but we have actually expended the money at that point time chair we can put that money back into our general account invest it is no for fifty to twenty million dollars difference is under i r s regulations that chill we actually have an expenditure to match it with then we can bring it out of the bank account and into the general fund and then it's free money again but until that point it has to be used only as characterized by the the official statement in approved by the i r s and has to be segregated funds so that we don't mix it in with the other funds and then we have an arbitrage issues that come up where you would mix money in with other money and then you have to separate it out in account for it so that the i r s knows that you're not earning a rate of return higher than the interest payments that you're making the money you borrowed is that would be the arbitrage condition and just so i understand what you're saying and that's one of my concerns is congress has changed their policy iraq what happens is the entire issue becomes taxable for everybody who's received money from us all the way back to the beginning of this thing it's an utter disaster it is imperative we never make that mistake that's why i'm very cautious about how we're go this mystical because i don't want the penalties it's true it's been you don't want can't afford it and i agree one hundred percent on that there's no doubt with what we're trying to do now chair is we want to borrow only what we've already expended so that we don't have the arbitrage issue that's really do with this last one we put sixteen and a half million dollars of new money but it was money we already expended or most of it already had been spent and there was like a million dollars action which we spent right away but this does bring up one issue if i can be so bold as to bring it up we have one project is over and all of that goes back to the two thousand and twelve bond issuance that's not moving it's about three million dollars of issue i saw there was a concern in the way that we were actually processing things and we changed our processing of the loans from the general fund water fun to the bond fund previously  had been spent we would have issued the whole three million dollars bond the whole the whole three million dollar would've been part of the bond issuance we change our processes to make it so that only the actually expended amounts are the ones that are reviewed for bond issuance and so that's why at this last bond issuance there was only a little over fifteen million dollars in new monies even though there had been more than that in encumbered contracts we wanted to make sure that we didn't issue more bonds than we thought were going to be spent in a reasonable timeframe and so with that change in procedures we've been able to mediate the risk of arbitrage and so that's what mr copas referencing as far as making sure that we get the money spent appropriately if there is significant consequences if we  if we of course have arbitrary you know interest earned above the bond that costs for us because it is tax exempt up to and including movie losing our ability to issue tax only earning one point something percent interest and our bonds are you know two or three percent right so we'd think that that wouldn't be an issue but the requirement is that we have to be able to show it to the penny tracking each one of those is an important factor whether it's it's earned or not is is one factor but tracking that and showing it is another factor so trying to reduce that amount of bond issuance that hasn't been appropriated or th hasn't been spent for a project is something that we're really care about and trying to mitigate we haven't had any communications of caution either from bonn council or  is then presented in that opinion that the context of that opinion includes that we have met arbitration interested it's a carol any we're really working hard on something very important for this country but mr cobb i want to go back to your you know all these basic basic basis points and that's very tricky because i see like this chart shows you know that continuous increasing of return on our investment which i think is very important i think that's what the public wants to see that we've got money that we're giving it a better return right which that you're on our money so we can do more with that and maybe even charge them less if you want to use that term what else would you see when you look at when i look at this what else can we or should we be doing as far as not taking any risks or a little minimal risk is always some risk to make this chart continue to go to forty six fifty to match thirty six twenty one which was the addition of t v a f f c b n former mac it was a tremendous help and we very much appreciate that because that is absolutely necessary currently freddie mac and fannie mae are reducing their balance sheets those are the two one of the largest issuers of bonds for us and they're shrinking it down and they're doing this intentionally and it's going to be bad this year it's been much worse next year stuff so very much banks that and thank you for that and it will give us better yields because some of these things are very nice as far as yields the other thing that we might want to consider it's a little early we need to get this first piece of legislation through but we're going to have to modify at the state level because that's the point where we're going to run up against the wall of what we are allowed to do with super nationals could be another good area to invest in your aaa rated and they have very nice sh ds too but we're not allowed to invest in them yet but i'd suggest first let's have this current piece of legislation get through have everybody become comfortable with that and then maybe go back to  what the time whether there are so we appreciate your perseverance so if you have comments we are happy to hear from our treasurer regarding the treasury program that afternoon chair and the real property tax collections we provide the centralized management and investment of the cash ensuring that the investment  that allows us to monitor the collections of revenue were ever our collection site this and treasury is the administrators for this so for one is still pending because they need to be separated the board of water supply once they are on their own system they will be able to join i  forty five cents but again this is on the four checks we still have to bring that gas to the back we can understand that yes understood understood no i was just wondering if there is some savings  here in regards to the not r p t revenue collection i guess you just stated the different departments that you folks collect revenue from is that until parks like permitting fees and things of that finding in question costs in a single audit found internal controls over miscellaneous cash receipts and significant efficiency specifically they were looking at building permits and parks and recreation and there wasn't a lack of adequate segregation of duties over the cash receipts between employees responsible for receiving the cash from the public and recording the cash transaction into the daily cash summary report and reconciling the summary report to the bank deposits so that was the that was the condition that they found on the recommendation was that adequate internal controls should be folks are in charge of going after those delinquent taxes due us for telling we that that sale every year and so sorry for sells that's a lot usually what happens is people make good because they don't lose a property over ten thousand dollars or fifteen thousand dollars so it's been an effective tool and we're going to keep doing it thank you thank you it's bas but i like the idea of the more tactile you know we can get the money and that's great and if that's what it takes so that's what it takes maybe we got expanded to some other folks thank you thank you who is the carol any because of this discussion with the department of treasury division and vestments senate bill twenty two fifty is the bill that would allow for the counties to invest in what the state can invest in amending chapter forty six fifty and that has passed and crossed over from the senate to the house and just last week passed the house finance committee which was its only referrals so  happen to you today and there is a call tomorrow what happens to this county since i would assume most of this is in your head yet so god forbid something drastic happens to you and we don't have your services or your presence to perform what happens to the county's portfolio ok first of all we are in the process of developing detail documentation of everything that i'm doing in there already we have detailed documentation of individual tasks now we're working on the model itself and we've gone through the preliminary detailing of how they work on a day to day basis and that's where you would pick up this the information about a call coming in would come from the banks or from the broker dealers it comes from both actually one states and beginning the other one confirms it and what you do there is you just have to then you have to know how to go back into q e d which is the program that was here when i came here you had to put in a redemption and then that automatically runs on that you do the same thing in the city model and that's  essentially all you have to do to be able to simulate in make it happen in the modeling the next thing you do as you do in life is journal entry ok because the bank will send a statement showing that that much money was called came into our  count let me explain something when i first came here the broker dealers held our money and told us they bought a security for us when we would tell them we wanted to buy security we would wire in them for cash they would say we buy you this and here comes a coupon payment later and here comes the maturity we don't do that anymore we use the third party bank the bank in new york mellon as a  and all of the investment is in there if there's a call will come from the issuer straight into that account and it will sit in that account we won't lose the money even if i were gone or anything the money will just sit there and go seventeen basis points now so it'll still be earning money but in a sweep account ok if we buy something now the dealer has to deliver the security before the money goes out electronically so we always have an asset in our hands so it's quite different than it was four years ago so we have a lot more security we're doing the documentation and since we're bringing this up i would suggest that we need another person in this i know it's not for this this budget around but we should have a second person this position is handling the entire cash flow of the county as well as the investor positions and we won six hundred million dollars of cash flow this year and the two hundred fifty to two hundred eighty million dollar portfolio i think it deserves to positions that way when somebody goes on retires or moves out there's somebody else to step right into the position and we have the redundancy that i think this type of  level of money definitely deserves i thank you for your comments you're not too far off what i was thinking about because this is an important component of and if something for it happens to you what happens to our portfolio i guy invite all of you or any of you to come down to my office so i can show you what we're doing to give you a sense of the extent of the work we're doing  we're very serious about this we understand that we need redundancy in the system it's just too darn important for the people of my county because this is their money and it's our money actually all of it's all of us together that's correct members any question mr couch that thank you mr chairman that kind of kind of almost answered your question i think the chairs question and i kind of agree with that is what as a third party entity help you you're saying you need a third person you know we are loathe to hire people so a third party professional services might be k and there with affiliated with morgan stanley i believe they came in and we talked with them and talked with them and they finally told us what they were going to target for return for the county it was not in the ninety basis points level and you can see we're in one hundred twenty is already so i think we know how to do this but we need to do is build in the safety factor of having this knowledge being transferred to the next group of people who are going to run this county over the next you know fifteen years and then continue this process forward because that's where we're give us when we have a disruption in understanding how to do this we're going to get killed and i haven't by that i mean we're go problems beyond just what the consultant could do how do you do all the transfers for different things how do you monitor and take care of your job on payments these are all part of what i'm doing it's not just the investments so it's important that we we look at this is a totality of the job itself it is the total cash management remember those big spikes that we saw earlier part of that is the money going out into the investments part of the source of going out to pa bond payment and it's very important that we have the liquidity when we needed a third party is going to be more interested in trying to meet the the benchmark returns that they've sat so that they get paid properly than they are about whether we wind bank take that one separately is about ten to eleven million dollars a month two times we pay payroll out of about five and a half million dollars of time so that's eleven million bucks a month so that's the flow and that's incredibly consistent out of taking you can see how straight the lines are going where you see big drops is where i'm moving money out of it but the rest of the time fifteenth i'll have enough to make our p t make the next payroll and that's pretty tremendous ability to control you know not as we do have money in the bank of white we had to bring it down so we were headed that way an every month we have to close we printed twenty and twenty five million dollars of a p that we're going to pay we're also going to pay three million dollars in garnishments and and payroll taxes per month out of this one we're going to have bank it only if i got money over the bank of the y that i can bring over a month i need to what is missing from this one was at the time we did this purple and green line when passing on the other side we have plenty of money dollars worth of maturities and that covers any of the other problems we're seeing that purple one there on the right hand side i'm bringing over seventeen million dollars in the bank of why because guess what happens may thirty first we have a fifteen seventeen million dollar jail bond payment for june first and then at the end of june we have another seven million dollar bond payment for july first and then in august we have a fifteen million dollar o payment so we're getting bam bam bam one after another year but we've got to have the liquidity and that's where all these different races are telling us whether we're going to make it through that period or not and we're going to make it through that period every time model runs out for sixteen months so it runs out five years and the reason for that is we're allowed to invest sixty months so to make a security operate for five years out we have to have a model understanding of what's going on in the department of finance thank you very much for your yes yes mr pena please come forward if we were happy to allow you to share some common yes additional comments on  to adjourn two days budget