Auditor urges reform
in city licensing
and permit offices

By Mary Adamski
Star-Bulletin

An auditor told the city administration that it needs to remedy problems in the office that handles vehicle, driver and business licenses and park use permits.

Problems include staff errors, processing backlogs and lack of enforcement, the auditor said.

Workers at satellite city halls get no formal training to handle the variety of motor vehicle transactions that make up the bulk of the workload, according to the Office of Council Services in an audit of the Motor Vehicle Licensing and Permits Division. The licensing functions were moved into the Department of Customer Services in the administration's reorganization a year ago.

There were errors in only 1.4 percent of the 80,398 transactions handled in satellites in May and June 1998, said Customer Services Director Carol Costa, and a third of those were failure to stamp the date on a document. Costa's written response to the critique was released with the report.

The audit released yesterday recommended that staff be deployed where backlogs occur.

There is a 2-year backlog in entering drivers license information into the computer database. Management estimates it takes the staff 15 minutes longer per transaction to retrieve data manually from a card file than from the automated system.

There are no delays -- in fact, one-day processing is standard -- for mailed vehicle registration renewals, but that is an area where the Y2K bug raised its ugly head. Manual processing has been under way since Jan. 1 because "the system has been rendered unreliable by the Y2K problem."

The staff is working after hours to achieve the one-day processing goal, resulting in unbudgeted overtime costs, the auditor found.

Numerous laws and rules affect park permit holders such as the Taste of Honolulu event this weekend. They include sanitation, insurance and shoreline use as well as security, but there is no official set of policies. The auditor found that the only enforcement is in the hands of the Honolulu Police Department Special Services unit, which has other duties.

Numerous businesses -- from taxi owners to firearms sellers to peddlers to lodging providers -- must get city licenses, but there is no enforcement system in place to monitor their compliance, the auditor found. The single investigator position has been vacant since November 1997.

"Management at the HMB (Honolulu Municipal Building) believes that there are a number of bed-and-breakfast establishments and group homes that are operating without a license," said the report submitted by legislative auditor Ivan Kaisan.

He suggested that the city review laws to determine if it is still necessary to regulate all of those businesses. If not, seek repeal of the laws. Or, if it's a state law being enforced, seek transfer of the responsibility to a state agency. Or, if "regulation by the city continues to be needed, a systematic enforcement mechanism should be developed and funded, raising fees for such licenses if needed."

Codified policies need to be prepared for motor vehicle transactions and for the issuance of park permits, said the auditor.

Costa responded that the department is in the midst of streamlining the motor vehicle licensing process and is working with the Parks Department, which previously issued park use permits, to establish policies and procedures.