Hawai'i Community Development Authority

STATE OF HAWAII
HAWAII COMMUNITY DEVELOPMENT AUTHORITY
Honolulu, Hawaii 96813

September 6, 2017

Chairperson and Members
Hawaii Community Development Authority
State of Hawaii
Honolulu, Hawaii

HCDA Board Members:

SUBJECT:    Shall the Authority Adopt the Recommendation of the Financial Position Task Force, as to Goal 1: Community Development Plans in HCDA Community Development Districts Shall Have an Identified Long-range Completion Date?

SUMMARY:

The Financial Position Task Force recommendation for board deliberation and decision-making with regard to Goal 1- whether community development plans for community development districts should have an identified long-range completion date (Goal 1).  At the July 5, 2017 meeting, the task force recommended that community development plans should have an end date.  This topic was further discussed at the Authority’s August 2, 2017 meeting.

AUTHORITY:

Permitted interactions of a group of board members is governed by Hawaii Revised Statutes (HRS) § 92-2.5(b) which states that two or more members of a board, but less than the number of members which would constitute a quorum may be assigned to:

• Investigate a matter relating to the official business of their board, provided that:
• The scope of the investigation and the scope of each members authority are defined at a meeting of the board;
• All resulting findings and recommendations are presented to the board at a meeting of the board; and
• Deliberation and decision-making on the matter investigated, if any, occurs only at a duly noticed meeting of the board held subsequent to the meeting at which the findings and recommendations of the investigation were presented to the board.

BACKGROUND:

The task force was formed at the May 3, 2017 meeting, and assigned to evaluate the financial position of the HCDA and potential for further revenue generation.  Task force members included, Mary Pat Waterhouse (task force chair), Wei Fang, Michael Golojuch, Sr., and Shirley Swinney.  Member Jason Okuhama was later added to the task force at the June 7, 2017 meeting.

In its update to the Authority on June 7, 2017, Member Waterhouse indicated that the task force had met and identified four goals which were incremental in nature in order to properly address the scope of work assigned to the task force at the May 3, 2017 meeting.

The task force identified Goal 1 to establish a framework for forecasting future resource needs, how much revenue must be generated, and identifying appropriate revenue sources relative to its current financial position.  Introducing time horizons creates a framework for recommendations and for communicating them.

At the July 5, 2017 meeting, the task force provided its finding and recommendation that long-range completion dates should be established for each community development plan.  To establish a basis for the finding and recommendation, the task force considered:

• Legislation establishing the HCDA;
• Legislation establishing each community development district; and
• HCDA accomplishments in Kakaako, as its most mature community development district.

The task force adopted the staff recommendation, included as Attachment 1 – Financial Position Task Force, Staff Recommendation, Goal 1, dated June 27, 2017, which balances the expectations set forth in statute, with the expectations of the legislature, using recurring legislation as a key indicator.  By establishing a long-range completion date for its community development plans, the HCDA would be better equipped to manage these expectations with the development of supporting strategic and tactical plans.

At the August 2, 2017 board meeting, concerns were expressed regarding completion dates:

1. Completion dates were not identified in the recommendation; and
2. Whether a completion date is appropriate.

 

ANALYSIS:

The board and task force have fulfilled the requirements of HRS § 92-2.5(b)(1), to formally engage in decision-making on the finding and recommendation presented above.

• The task force was formed at the May 3, 2017 board meeting;
• The task force presented its finding and recommendation on Goal 1 at the July 5, 2017 board meeting; and
• The finding and recommendation on Goal 1 was presented for board deliberation and decision-making at the August 5, 2017 board meeting.

Relative to the concerns identified by the Office of Information Practices at the July 5, 2017 meeting, the task force with the assistance of its Deputy Attorney General has determined that to properly address the scope of work assigned to the task force, incremental and sequential goals were necessary, making incremental findings and recommendations to the board appropriate.  It was further noted that this is not specifically addressed in the statute nor is it explicitly prohibited by statute.

Relative to the comments from the August 2, 2017 meeting, the task force did not identify specific completion dates, nor did it intend to identify specific completion dates. As referenced in Attachment 1, HRS Chapter 206E, identifies unique guidelines for each community development district and directs the HCDA to establish and implement a community development plan for each district.  The completion date would be iterative based on successful implementation of each plan, which should address the unique guidelines provided by statute.  Ultimately the completion dates would be driven by each plan and not only finances.

Adopting long-range completion dates allows us to manage expectations of the community, legislature, and staff.  It also allows for better planning and communications relative to prioritizing projects and seeking funds.

Under the proposed action, specific dates for each plan would be subject to HCDA’s plan approval process and not at the sole discretion of the Executive Director, it would be a board decision.

RECOMMENDATION:

The Financial Position Task Force recommends the Authority Adopt Goal 1: that Community Development Plans in HCDA Community Development Districts shall have an identified long-range completion date.

Attachment 1 – Financial Position Task Force, Staff Recommendation, Goal 1