agribusiness development corporation: revisited - Legislative ...

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AGRIBUSINESS DEVELOPMENT CORPORATION: REVISITED Ms. Rasmussen goes on to state that ADC should not be involved in assisting farmers with marketing efforts, assisting farmers with financial programs, or assisting former sugar workers in transitioning to work on other farms. ADC Funding and Resources While this study did not entail providing a detailed analysis of the annual appropriations granted to ADC by the Legislature, virtually all respondents urged that ADC be provided with more funding to afford it the resources to continue and expand its efforts. It should be noted that these are many of the same voices that have called for a redefining and possible reduction in the role ADC plays within the industry. At its inception, it was envisioned that ADC would be a much larger, robust organization. According to DOA, ADC was to be staffed with a total of eight persons, including managers, program specialists, and clerical support. Presently, the office staff of ADC is comprised of three persons: an executive director, an administrative services officer, and a secretary. Additionally, when it acquired the Waiahole water system in 1999, ADC "inherited" seven employees who were working for the prior owner of the Waiahole water system. These seven positions included managers, supervisors, and system workers. 1 DOA, DB EDT, CTAHR, HFBF, HC&S, and three individual respondents all called for more funding for ADC to allow it more resources to pursue its mandate, even though it may become a more limited or focused one. DOA, while calling for ADC to focus primarily on the preservation of agricultural infrastructure abandoned by former plantations, states: "It is evident that ADC is understaffed." CT AHR, while stating that the mission of ADC should be focused on, managing large tracts of land and the irrigation and related infrastructure to support agricultural enterprises on those lands, comments: "Even with a more focused mission, ADC is still understaffed and additional staffing is needed." Ms. Rasmussen acknowledges ADC's more focused role in managing water systems and agricultural lands dependent on those water systems, noting that ADC is operating the Waiahole water system and Mana water system and may get involved in the Wahiawa, Kau, and East Kauai water systems. Nevertheless, she states that ADC needs: The ability and resources to hire project managers to focus on the huge projects listed above. ADC has only three positions, an executive director, an administrative services officer, and a secretary. The current work load of the staff is beyond capacity, and more projects are being proposed. ADC will have to turn away these projects unless we get approval for more positions-particularly project managers. 1. In contrast, when ADC took over the public lands and irrigation system (including two hydroelectric plants) at Mana, Kauai, after Amfac/JMB shut down its sugar operations, rather than inheriting workers, ADC initially contracted out the work to operate and maintain the irrigation system, hydroelectric plants, drainage system and roads. It then contracted with some of its existing tenants to take over the operations in exchange for reduced lease rents. These are now the responsibility of a tenants' cooperative that was since created. 24
GOVERNMENT AGENCIES AND STAKEHOLDERS IN THE AGRICULTURAL INDUSTRY While we earlier noted that this study does not contain a detailed analysis of the annual legislative appropriations to an annual budget of ADC, in light of the collective call to increase funding to ADC by many respondents, including the ADC chairperson, it must be noted that over the four fiscal years ending June 30, 2005, ADC has had relatively substantial carry-over budget balances, as follows: 2001-2002 2002-2003 2003-2004 2004-2005 $773,118 745,592 827,918 897,924 2 Executive Director Lee noted that he believed that, in fiscal year 2000-2001, ADC received an appropriation of $200,000 for the Hamakua agricultural subdivision project. That appropriation was not expended, although half of the appropriation was used in the Hawaii tea project. The remaining half of the Hamakua appropriation remains in ADC's coffers. Lee further noted that, for the last year, he has been trying to hire a person to fill a newly created project administrator position. To date, has been stymied by the state civil service laws and requirements. However, there still remain questions relating to these carry-over balances. Performance Standards One of the criticisms of ADC from its inception was the lack of written plans and standards for measuring the success or failure of a project or program. Recommendation 3 of the Bureau's earlier 1997 study was "to require ADC to prepare the kinds of written plans that will enable the ADC Board of Directors to monitor the status and evaluate the progress of any project or program, to approve or disapprove any project or program activity, to replicate any project or program at another place or time, and to advance any ongoing project or program to the next step, in the event that key professional staff leave the <strong>corporation</strong>. ,,3 Several respondents indicate that the establishment of written plans and standards should be extended not just to evaluate projects and programs but also to impose standards and qualifications for all staff positions for the proper evaluation of personnel. Relating to project or program measurability, LURF comments: The reporting mechanism between ADC, ADC Board, and the Legislature needs to be improved. Defming roles and responsibilities, oversight, and accountability all need to be done as soon as possible. Progress then can be tracked and reported. To the extent 2. ADC's annual budget summary referred to as the Agribusiness Development Revolving Fund, along with a summary of the Waiahole Water System Revolving Fund established pursuant to section 1630-15.5, HRS, for the operations and maintenance of that system, are found in Appendix K. 3. Keith H. Fukumoto, Plan(ning) Is Not a Four-Letter Word: A Formative Evaluation of the Agribusiness Development Corporation, <strong>Legislative</strong> Reference Bureau, Report No.2 Honolulu: 1997, p. 50. 25
Page 1 and 2: AGRIBUSINESS DEVELOPMENT CORPORATIO
Page 3 and 4: FOREWORD This report was prepared i
Page 6 and 7: SUMMARY As the State of Hawaii was
Page 9 and 10: Scope of Report Chapter 1 INTRODUCT
Page 11 and 12: INTRODUCTION responses to the lette
Page 13 and 14: LEGISLATIVE HISTORY AND CREATION OF
Page 15: LEGISLATIVE HISTORY AND CREATION OF
Page 23: AGRIBUSINESS DEVELOPMENT CORPORATIO
Page 26 and 27: Chapter 4 GOVERNMENT AGENCIES AND S
Page 38 and 39: Chapter 5 FINDINGS AND RECOMMENDATI
Page 42: Recommendation No.3 AGRIBUSINESS DE
Page 51 and 52: Honorable. -2- July 26, 2006 (1 ) Y
Page 53 and 54: Mr. Ken Takayama August 25,2006 Pag
Page 55 and 56: Mr. Ken Takayama August 25, 2006 Pa
Page 57 and 58: Mr. Ken Takayama August 25,2006 Pag
Page 59: UNDAUNGLE Governor Mr. Ken H. Takay
Page 66 and 67: Mr. Ken Takayama, Acting Director L
Page 68 and 69: Hawaii's small population makes it
Page 71: Page 2 other new agribusinesses. It
Page 76 and 77: HAWAII AGRICULTURE RESEARCH CENTER
Page 78 and 79: Mr. Ken Takayama, Acting Director P
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Mr. Ken H. Takayama August 8, 2006
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• The ability and resources to hi
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Mr. Ken H. Takayama, Acting Directo
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The Hawaii Department of Aqricultur
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August 17, 2006 Mr. Ken H. Takayama
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Agribusiness Development Corporatio
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APPENDIXF AGRIBUSINESS DEVELOPMENT
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1.0 Executive Summary 2.0 Overview
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The following is a list of which pr
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3.1 Navy West Loch Project PROJECT
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3.4 Freight Consolidation and Redis
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AGRIBUSINESS DEVELOPMENT CORPORATIO
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5.0 Draft Outline for Hawaii Agribu
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affordable, and economically sized
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3. Preliminary initiatives for fede
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Bibliography Decision Analysts Hawa
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program that offers long-term lease
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Retailers' market-driven voluntary
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Waiahole Water System Water users A
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INTRODUCTION Agriculture is a vital
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eliminated, or redefmed within the
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• Work closely with the county go
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overseeing authority for these wate
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esources to rethink their crop prot
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ResoluUon to Research and Developme
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• Encourage all government agenci
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• Reduce tax rates for long term
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CONCLUSION Hawaii's economic health
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