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HomeMy WebLinkAboutCOM 0732.000 1996-1998 OMZY Or N,~ 40.'~~ ' ~4 Stephen K. Yamashiro Mayor • Sri of M~ i,... Cnuu~t#g u~ ~tt£vtttt , OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT 50 Wailuku Drive • Hilo, Hawaii 96720-2484 Vf['T (808) 961-8379 • FAX (808) 961-8685 February 18, 1998 MEMORANDUM TO: James Y. Arakaki, Chairman , Hawaii County Council , FROM: John Santangelo, Chairman Hawaii County Housing Agency SUBJECT: Resolution for the Hawaii Count Council Housing Preservation Grant Program The Office of Housing and Community Development (OHCD) has submitted to the Hawaii County Housing Agency (HCHA) a resolution authorizing the Mayor to execute and submit the 1998 preapplication and, if approved, all other related documents necessary to process and implement the Housing Preservation Grant application and program. The HCHA has reviewed and approved the resolution at its meeting of February 18, 1998. Accordingly, I am requesting that the resolution be included on the Council agenda for action at its March 6, 1998, meeting. Encl . !i.:rrln. Ata +2.~5. ~3S I+•.!.~ *r~,. ~~U ttF i. To; Co~V?it.~ FEB 1 9 1998 icP.e t'. ;rats 0762h. dkl EQUAL HOUSING OPPORTUNITY 'AN EQUAL OPPORTUNITY EMPLOYER' OMB Approval No. 0348-0Oa APPLICATION FOR =DATE SUeNrTTEp i Applicant centmer FEDERAL ASSISTAiVCE 99-6000567 1 TV PE OF $UBMI$$IGN: ~ ] DATE RECEIVED By STATE State Appllca0on Identd,er appLfebOn PreapplrCa Upn i.JnShOCIipP ? nprst,,,c;,pn HI 860730103H HI 890222019H a DATE RECEIVED dv FEDERAL aGENCV =ederal 'den hoer I ~ Von-Cpnstruc•pn ^ Non~Consnucpan 5. APPLICANT ~NFORMA?ION ( Legal Vane Organ ¢a. anal Unrt Count of Hawaii Government ACCress give _rn ccur•ry, sra to and cm :ode; Vame and telephone 'tcmlJer of the person to f]e contacted on matters mvoW,nq I ~h~s appl¢abCC tgna area ]ode) 50 Wailuku Drive Edwin S. Taira ~ Hilo, Hawaii 96720 (808) 961-8379 I 6. EMPLOYER IDENTIFICATION NUMBER IEINp. I. NPE OF APPtICAMT~ :enter dpprOprra fe rafter ,n DOxJ 9 9 - 6 0 0 0 5 6 7 A State N Independem Scnopl Dlst 8 County State Gon trClled Insmunon of Higher Learmnq 1. iVPE OF APPLICATION. C Municipal J Private 'Jnrver5lry O Tpw nsnip R. Indian Tnhe hew ? Connnuanpn ? Revi sicn E Interstate L Intlrvldual F IntermumGpol M Prolrt Organ,zaucn 'f Revision, enter aporopnata etten sl ~n boxtesr ~ ~ G Speaal Dlstr¢t N Other ~Specl ty) A Increase Award 9 Decrease award C Increase Dura hcn D OeCredse Durd Vpn Other (spec h~,l 9. NAME OF FEDERAL AGENCV~ USDA-Rural Develo went t0. CATALOG OF FEDERAL DOMESTIC 1 O ~ 4 3 3 I t. DESCRIPTIVE tITL'c OF APPLICANT'S PRGJECT. ASSISTANCE NUMBER: TITLE Rural Housing Preservation Grant Rural Housing Preservation Grant Program Funds Pro ram will be used to provide financial assistance to low and very low income rural homeowners to .z AREAS AFFECTED ev PRGJECT c:rtas. ccunnes. ;rates. am / repair and rehabilitate their homes. County of Hawaii, State of Hawaii 1]. PROPOSED PROJECT IR. CONGRE$StCNAL DISTRICTS OF I Mart Date Ending Oa~e a Appbcant b ~ralect Hawaii - 2nd District Cqunty wide-County of Hawaii 15. ESTIMATED FUNDING. t6 IS APPLICATION SUBJECT TO REVIEW dv STATE EXECUTIVE ORDEP t]ll] PROCE$ST a Faderal ; p0 a rES THIS °R EAPct,CA TICN. gPP~_',CAT`ON WAS MADE AVAIUBLE TO THE - 134, 594 STATE EYECh rvE ORCER t?372 PROCESS POR RE'dIEW ON o acpucant 2 00 PATE - ~ . Slate $ 00 o VO ~ c90GRA61 ~5 NC- ~Or. F~EO 9V c O '23%? a _:,w~ 5 OD I 13 , 459 ~ CR PFOGRAM SAS vCT SEEN SEL ECTEO 3v STnTE POP PEVIEW I - -t ~ 3 00 ' o. ,pr em IncUr^.e II~L; pp t: I$ THE APeUCANT DELINQUENT ON ANY -EDERAL DEBTT ~~s r 'r35 ariac^ 9n ~~c3rat on yo • ~TAL I A 148,053 aD - I '3 TO iME BEST OF My KNOWLEDGE >ND 3EL EF aLL CA"A 'N THIS >PPUCA"ION PREAPPLICA LICN ARE "RYE >NG CORRECT. THE DOCUMENT RAS SEEN DUL+ >UT~ORIZEO dv THE OOVERw NG 3GDV ]F "HC AP PI_CANT >ND '~E APPL'.CA NT WILL SOMPL'~ w:'y 'ME ='TACI'ED A$$U RANGES IF iNE A595iANCE I$ >wAPDED I ~r_'eC Var'+e l' 4ul^'n: al ~rIN'e2rt II p r 'LwprnJr`e '-',mpe~ I Stephen K. Yamashiro I Mavor l (808)961-8211 ~t Syr tr.,~a ; cr 'Hd=acr..,enlal ,a ] Onw"3~,neC ,r -t Ir~•,tr: d t a dtl, i i s ~ I ~ ~ II I I I i i I ' a L ~ ' ~ y i T _ ~ ~ d ~ ~ fns ~ ~ ~ ~ U1 a1 R'1 ~ ~ ~ A ~ ~ ~ o o~ _ ~ rnl i ~ ~ ~ I n ml ~ i ~ -i o ~ ~ m Q ^y ~ y ~ ~ I ~ O ~ ~ ~ ~ ~ ~ ~ ~ ~ i 'i ~ ~ i ~ n ] _ 9 ~ v ' ~ ii d 1 I I LL,^` ~ ~ i I y' all ~i ' I I I O 2 v ~N JI I i - I i ~ j N y t•'f ~ ~ 2 N~ N Q. N i I v~ N N L ~ ~ O j ~ i I _ i~~~ A ~ I C d ry ~ ~ > •O W f(1 vl V ~ - i ~ .~-i o I ~ C - _ ~ O ) N N W 2 ~ N N N C x ~ I i U s 1 O f o4 ~ V f i o ~ ~ ~ ~ ~ I n N Q O W d F i I Q I Z LL~ v a I ~ f LL = 9 ~ v1 vl J j Q i v .Y a i Z = ~ nl t+1 M ~ O O A Z ~ r. .-f f L V P N N O N N N N r ~ W I N Q N ~ ~ i i I 7 i ~ 7 N i O ' O F ~ ~ I a tL - `y i z o- m ~ v v d ~ i LL ~ I ~ ~ ~ (w~''~ N I I o `~i ~~i v ~ ~ Q N N ~ N N M i I p I y ~ ' I, I I i I ~ I ..y qo ~ . I ~ ° i it v~ i w ~I ~ I I ~ I w i ~ I = y i a i V p1 ~ v q O I ~ 1 i0 1' ' ' V ~ L ~ y I f ] ~ I 1 V C ~ Tp'g G I s ~ I c I v ~ ~ ~ ~ 1- ~ ] i ~ ~ A~ Q Q ~ 1 ~ S ~ 1 ~ O ~ y ~ Q i Q J I I Q ~ L i I W I P .n v V O ~ ~ O r 1 ' ~ i ~ i O i ~ ICI i~ ~ ~ ~ v i~ i C~ G I_ ~ i I i ' ~ n ~ ,.i a u: ~ ' a ~ i ~ 'I ~ ~ I ~ ~ ~ I _ w a N I Q = r - _ ~ ~ ~ a v ] 1 ~ tQ m 01 ~ O O v ~ n v~ a ~ d n ~ ~ r1 c'1 i n N N N N N I N ~ j i ~ I i t ~ I N .M+ ti L, ~ ~ O O H . a ~ I O I V ~ I I~ n n W y I ~ M C1 O n a Q o N N N N a ~ N N W_ U_ H 2 LL > Q W J v ~ ~ Z ~ u9i ? t~'1 ti ~ u ~ N ~ O O ~ ~ ~ m Z v+ vi m ch ~ p _ W w U ~ Q H ~ ' ~ N N W N N LL N M Q j ~ O z W Q N V U O N ? O J 7 C S W Z Z O ~ c V Z ~ a _ Q W Q al ~ ~ ul v1 Z LL ~ i N W < ~ ~ HQ O ir1 J O ~ , 0 ;n N A ~ ~t l.~ _ W 7 - U ~ r1 ri ~ q O C'1 ~ N ~ M ~ W p J ti O Z ti W = TJ O H N N N O N N r Q 9 U ~ LL Q L Z 4L ~ N N O Q O 4L Z Q O V l./ ~ N i O 7 N ~ {W/1 ~ ~ 41 rl ~ i W Q O a, ul u1 _ Vf i!1 .t O H a J C1 CO W m s r 'ti .r W N N Q W _ I ~ I l i ~ 9 Z ~ ~ Q ~ III i i V i II a ~ ~ i N ~ m i i I ~ V i I ~ i ~ ~ ~ ~ III _ I a I~ ~ ~ ~ ~ ~ ? I I P _ a it i i~ ~ x o i ~ i ! ~ ~ E ~ _ _ E ~ OI I ~ ~ m c', ~ i V m N v a+l ~ a ~ N u A c F ~ c F~ I' I ~ ~ E I i J O v 2 O i ~ j O Pasdian J USDA•FmHA ? ~ oMe No oRS°s ao°as Form FmHA 1941}20 r (Rev. I.92) REQUEST FOR ENVIRONMENTAL INFORMATION Name of Project Preservation Grant _ Location Item la. Has a Federal, State, or Local Environmental Impact Statement or Analysis been prepared for this project? Yes BI No ? Copy attached as EXHIBIT I-A. lb. If "No," provide the information requested in Instructions as EXHIBIT Item 2. -The State Historic Preservation Officer (SHOP) has been provided a detailed project description and has been requested to submit comments to the appropriate FmHA Office. ~~Yes ? No Date description submitted to SHPO Item 3. ,Are any of the following land uses or environmental resources zither to be affected by the proposal or located within or adjacent to the project site(s)? (Check appropriate bos for every item of the fa !/awing checklistj. Yes No Unknown Yes No Unknown 1. Industrial.._ ? ? ~ I8. Beaches.................................................-......... ? ~ ? 2. Commercial ? C ® l9. Dunes ? ~ 3. Residential ? ? i%1 20. Estuary.................................._........................ ? ® ~ 1. Agricultural ? C XI 2l. Wetlands................_..-..............-..................._ ? ~ 5. Grazing ? ~ ? 22. Floodplairs...................................................... ? '%I 6. Mining. Quarrying ? '%I ? 23. Wilderness ? /designated nr proposed under the Wilderness 7. Forests ? ? ~ Acrl 24. Wild or Scenic River ? g. Recreational ? ? r$I (proposed or designated under the Wild and J ScertFc' Rivers Acr) 9. Transportation ? ? IX 25. Historical, Ale~teological Sites ? ? (X (Listed on the Natrona! Register of Historic I Parks ? ~ 'gl Places or which may he eligible for listing) I L Hospitals ? ? 26. Critical Habitats......................_.................... ? ® ? (ertdangrredlthreaterted species) !2. Schools ? '81 27. Wildlife........................................................... ? n 13. Open spaces C C ~'i 28. Air Quati[y ? !X I1. Aquifer Recharge Area ? ? $ 29. Solid Waste blanagement............................ ? ? 30. Energy Supplies ? 5. Steep Slopes ? ~ 31. Natural Landmark....._..._.. _ ? !Listed on ;V¢uonal Registry of Naru rat 6. Wildlife Refuge._ ? ~ Landmarks) Shoreline.._...._ ? ~ 32. Coastal Barrizr Resources System............. ? ~ ? tem .Are any facilities under your ownership, lease, or supervision to be utilized in the accomplishement of this project, either listed or • under consideration for listing on the Environmental Protection Agency's Lis[ of Violating Facilities? C Yes ~ No Signed: County of Hawai' i (Date! (Applicant! Stephen K. Yamashiro• Mayor (Title) Public npar[iny burden (or this collet Lion o/ in/orma NOn is estimated to avemye 10 to JO hours per reapome, including the Hma /or reviewmy m- struetlons, seaxhing axis [ing data souxes, yatherinQ and moire [dining the data needed, and eompk tlnq and reviewing the collae HOn o/ in /ormatlon. Sand comments regarding this burden ea fimata or any other mpec[ o/ lh4 col/ae Han o/ in/o rma HOn, mcludm wggestloru for reducing this burden, to DeparE moot o/ Agriculture. C!e¢rance O/ricer, DrR,N, Room 404-W, Wmhingtan, D. C. 20250: and to the O//ice o/.Nanagement and Budge[. Papertuork Re~ disc HOn Projeel (OMB ,YO. 057500941. Wmhinaton, D. C._0507. P(eme DO .VOT RETL'R.Y this !arm to ei/her these addreues. Farruard to Fm HA U.S. DEPARTMENT OF AGRICULTURE Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Primary Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment end Suspension, 7 CFR Pert 3017, Section 3017.510, Participants' responsibilities. The regulations were published as Part [V of the January 30, 1989, Federal Resister (pages 4722.4733). Copies of the regulations may be obtained by contacting the Department of Agriculture agency offering the proposed covered transaction. (BEFORE CONPLETING CERTIFICATION, READ INSTRUCTIONS ON REVERSE) (1) The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: (a) are not presently debarred, suspended, proposed for debarment, declared ineligible, or voLuntari ly excluded from covered transactions by any Federal department or agency; (b) have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection ui th obtaining, attempting to obtain, or performing a public (Federal, State or Local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) ere not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and (d) have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or Local) terminated for cause or default. (2) Yhere the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. County of Hawaii Rural Housing Preservation Grant Organization Neme PR/Award Number or Project Name Stephen K. Yamashiro, Mavor Name and Title of Authorized Representative Signature Date 1 Form AD~1047 (2/89) i INS,..JCTIONS FOR CERTIFICATION 1. By signing and submitting this form, [he prospective primary participant is providing the certification set out an the reverse side in accordance with these instructions. 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective participant shall submit an explanation of why it cannot provide the certification set out on this farm. The cerci ficati on or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. Xowever, failure of the prospective primary participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary participant knowingly rendered an erroneous certification, in addition to ocher remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 4. The prospective primary participant shall provide immediate written notice to the department or agency to wham this proposal is submitted if ac any time the prospective primary participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 5. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of the"rules implementing Executive Order 72549. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulaticns. 6. The prospective primary participant agrees by submitting this form that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into [his transaction„ 7. The prospective primary participant fur ih er agrees by submitting [his form that is wilt include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lauer Tier Covered Transactions," provided by the department or agency entering into this covered transaction, without modification, in all Iower tier covered transactions and in all solicitations for lower tier"covered transactions. 8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is no[ debarred, suspended, ineligible, or voluntarily excluded from Che covered transaction, unless i[ knows chat the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the Nonprocurement List. 9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order [o render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 10. Except for transactions authorized under paragraph b of these instructions, if a participant in a covered transaction knowingly enters into a Lauer tier covered transaction wi ch a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available fo the Federal Government, the department or agency may terminate this transaction tar cause or default. 2 'U.S.GPo'1994~555~009I0302] Form AD'1D47 (2/89) 1 Form RD 400-I FORM APPROVES (Rev. 9-96) UNITED STATES DEPARTMENT OF AGRICULTURE OMB No. 0575-0019 EQUAL OPPORTUNTI'Y AGREEMENT This agreement, dated between County of Hawaii (herem called "Recipient" whether one or more) and United States Department of Agriculture (USDA), pursuant [o the rules and regulations of the Secretary of Labor (herein called the `Secretary') issued under the authority of Executive Order 11246 as amended, wimesseth: In consideration of futancial assistance (whether by a loan, grant, loan guaranty, or other form of fmancial assistance) made or to be made by [he USDA to Recipient, Recipient hereby agrees, if [he cash cost of construction work performed by Recipient or a construction contract fmanced with such fmancial assistance exceeds $10,000 -unless exempted by rules, regulations or orders of [he Secretary of Labor issued persuant to Section 204 of Executive Order 11246 of September 24, 1965. , 1. To incorporate or cause to be incorporated into any contract for construction work, or modification [hereof, subject [o the relevant rules, regulations, and orders of the Secretary or of any prior authority that remain in effect, which is paid for in whole or in part with the aid of such fmancial assistance, the following "Equal Opportunity Clause": During the performance of this contract, the contractor agrees as follows: (a) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The contractor will take affuma[ive action [o ensure that applicants are employed, and that employees are treated during employment, without regard [o [heir race, color, religion, sex or natioral origin. Such action shall include, but not be limited, to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the USDA setting forth the provisions of this nondiscrimination clause. (b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state [hat all qualified applicants wIll receive consideration for employment without regard to race, color, religion, sex or national origin. (c) The contractor will send [o each labor union or representative of workers with which he has a collective bazgaining agreement or other contract or understanding, a notice, to be provided by the USDA, advising [he said labor union or workers' representative of the contractor's commitments under this agreement as required pursuant to section 202(3)- of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (d) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of all rules, regulations and relevant orders of [he Secretary of Labor and of any prior authority which remain in effect. (e) The contractor will famish all information and reports required by Executive Order 11246 of September 24, 1965, rules, regulations, and orders, or pursuant [hereto, and will permit access to his books, records, and accounts by the USDA Civil Rights Office of Direcror, and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (f) In the even[ of the contractor's noncompliance with the Equal Opportunity (Federally Assisted Construction) clause or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and [he contractor may be declared ineligible for further Government Contracts or Federally Assisted construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, or as provided by Law. (g) The contractor will include the provisions of this Equal Opportunity (Federally Assisted Construction) clause in every subcontract or purchase order, unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each such subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the USDA may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however. that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the USDA, ` the contractor may request [he United States to enter into such litigation to protect the interest of the United States. Puhlir rrpnrrin,R Aurdrn Jar rhi.r rollenian f inJormorion v rsrtmorrd m av<mgr !0 minutes per response mdudmg rhr nmr Jor rerir,rinR imrruamn.c. searching enninR tiara snurrca. ,ROrhrrin,R and mainminrng rhr darn needed, and romplamg and rrvrovirtg rhr col/errion of information. Send commrnu regarding rhir Aurdrn emmarr nr am~ other utperr aJ rhea ~ oNemm~ r>f infnrmorinn. mrludin,R rvgg<snans Jnr nduring this Aurdrn. m Depanmrnr of ARriculrurr. Clearanrr Offerer. O/RM, AG Bot 7630. Wathingrna D C ?0250. Pour DO NOT RETURN this/ono W this addresx. Fam~ard m rhr lxul USDA nffire nnh You art oar rrgmrrd m retpond rn rhu rallrrnan n/ink emotion unless n displayt a rurrenrly raLd OMB rnnrrnl numArr RD 400-I (Rev. 9-96) Position 6 f To be bound by the provisions of th. .al Opportunity Clause in construction work med b Reci lent } y p and paid for in whola~r in part with the aid of such financial assistance. 3. To notify all prospective contractors to file the required 'Compliance Statement', Form RD 400-6, with their bids. 4. Form AD-425. Instructions to Contractors, will accompany the notice of award of the contract, Bid conditions for all nonexempt Federal and Federally assisted construction contracts require inclusion of the appropriate "Hometown" or "Imposed" plan affirmative action and equal employment opportunity requirements. All bidders must comply with the bid conditions contained in the invitation to be considered responsible bidders and hence eligible for the award. To assist and cooperate actively with USDA and the Secretary in obtaining the compliance of contractors and subcontractors with the provisions of the Equal Opportunity Clause and the said rules, regulations, and orders, to obtain and furnish to USDA and the Secretary, Form .AD-560, Certification of Nonsegregated Facilities, to submit the Monthly Employment Utilization Report, Form CC-257, as required and such other information as they may require the supervision of such compliance, and to otherwise assist L'SDA in the discharge of its primary responsibility for securing compliance. 6. To refrain from entering into any contract, or extension or other modification of a contract, subject to such Executive Order with a contractor debarred from Government contracts or Federally assisted construction contracts pursuant to Part II, Subpart D, of such Executive Order or to prior authority; and to cam out such sanctions and penalties for violation of the provisions of the Equal Opportunity Clause as may be imposed upon contractors and subcontractors by USDA or the Secretary pursuant to such Subpart D. 7. That the Recipient fails or refuses to comply with these undertakings. USDA may take any and all of the following actions: (a) cancel, terminate, or suspend said financial assistance in whole or in part; (b) refrain from extending any further assistance under the program involved until satisfactory assurance of future compliance has been received from Recipient: and (c) refer the case to the Office of Federal Contract Compliance Programs, U.S. Department of Labor. Signed by the Recipient on the dace first written above. County of Hawaii Recipient Stephen K. Yamashiro Recipient Mayor (CORPORATE SEAL) Name of"Corporate Recipient Attest: BY ' President Secretary ' U.S.GPO'. t B96-]56515/20100 r Posirion J ~ ~ USDA FORM APPROVED Fotm RD -too-4 ASSURANCE AGREEMENT OMB No. 0575-OOtB (Rev. 3-97) (Under Title VI, Civil Rights Act of 1964) The County of Hawaii (name of recipient) 25 AllDllnl Street Hilo Hawaii 9670 (address) ("Recipient" herein) hereby assures the U. S. Department of Agriculture that Recipient is in compliance with and will continue to comply with Title VI of the Civil Rights Act of 1964 (42 USC 2000d et. seq.), 7 CFR Part ls, and Rural Housing Service. Rural Business-Cooperative Service, Rural Utilities Service, or the Farm Service Agency, (hereafter known as [he "Agency") regulations promulgated thereunder, 7 C.F.R. § L901202. In accordance with that Act and the regulations referred [o above, Recipient agrees that in connection with any program or activity for which Recipient receives Federal financial assistance (as such term is defined in 7 C.F.R. ~l4.2) no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination. 1. Recipient agrees that any transfer of any aided facility, other than personal property, by sale, lease or other conveyance of contract, shall be, and shall be made expressly, subject to the obligations of this agreement and transferee's assumption thereof. 2. Recipient shall: (a) Keep such records and submit to the Government such timely, complete, and accurate information as the Government may determine to be necessazy to ascertain our/my compliance with this agreement and the regulations. (b) Permit access by authorized employees of the Agency or the U.S. Department of Agriculture during normal business hours to such books, records, accounts and other sources of information and its facilities as may be pertinent to ascertaining such compliance. (c) Make available to users, pazticipants, beneficiaries and other interested persons such information regarding the provisions of this agreement and [he regulations, and in such manner as the Agency or the U.S. Depaztment of Agriculture finds necessazy to inform such persons of the protection assured them against discrimination. 3. The obligations of [h[s agreement shall continue: (a) As to any real property, including any structure, acquired or improved with the aid of [he Federal financial assistance, so long as such real property is used for the purpose for which the Federal financial'assistance is made or for another purpose which affords similar services or benefits, or for as long as [he Recipient retains ownership or possession of the property, whichever is longer. (b) As to any personal property acquired or improved with the aid of the Federal f nancial assistance, so long as Recipient retains ownership or possession of the property. (c) As to any other aided facility or activity, until the last advance of funds under the loan or grant has been made. 4. Upon any breach or violation this agreement the Government may, at its option: (a) Terminate or refuse to render or continue financial assistance for the aid of the property, facility, project, service or activity. (b) Enforce this agreement by suit for specific performance or by any other available remedy under the laws of the United States or [he State in which the breach or violation occurs. Rights and remedies provided for under this agreement shall be cumulative. [n witness whereof.- County of Hawai' i on this (name of recipienr) date has caused this agreement to be executed by its duly authorized officers and irs seal affixed hereto, or, if a natural person, has hereunto axecuted this agreement. Stephen K. Yamashiro Recipient (SEAL) Dare Attest Mayor _ Tirle Title :lccnrdinq m rBr Pnprrunrk Nrducnun .1u nJ 19Y5, nn pen'nnc .ve rrywrcd ru re>pond rn n co(lre«nn o~mjrnmunnn unle,es ,r d4~luyr vuGd OMB canon! number Thr vu[,d OMB cunvr.l number Jar rhs :nfnrmmon ,n(Ircnun i.c JS'O~WIN Thr «mc reyuned ro c rmplere ~hr.r ,yurmuuun :.r nirmnrrd o a eral•e /i mmures per reeponvr. ,nc(uding rhr ame (nr ,nt' iarrn¢pnn,, seurchm~ r.avrtn¢ lnru cr urce.v, ~urhrrmy and rwmmmmg rhr dum needed rmd .ompfrringond rev,rwmq :he m!(eenon aJ fn/nrmunun ' U 5 GPO. ~ 39 ~ 568JSar?C 195 <n FmHA Instruction 1944-N Exhibit F-1 Guide For Completing Form FmHA 1940-20, "Request for Environmental Information" for a Preapplication for Housing Preservation Grant (HPG) Introduction The purpose of this guide is to simplify the HPG applicant's task in completing Form FmHA 1940-20, "Request For Environmental Information." The guide tailors the use of the form to the needs of the HPG program. Applicants should first read the questions on the form and then use this guide in preparing their responses. Completion of Item 1b Item lb of the form is completed whenever the applicant checks the "No" block under item la. Since financial assistance for an HPG has been defined by Farmers Home Administration (FmHA) as a Class I action, the applicant need only provide the following information when filing a preapplication. If further information is required, the applicant will be so advised by the FmHA office processing the preapplication. The following is a discussion on how to respond to these six required parts. 1. Primay Beneficiaries . For the purposes of determining the HPG proposal's environmental impacts, the primary beneficiaries for an HPG will be the residents of the dwellings to be repaired and/or rehabilitated. Therefore, the applicant should briefly state the expected number and type of dwellings that the proposal may assist and, in particular, all repair and rehabilitation activities that are part of the proposal. 2. Area Description (a) The applicant does not need to provide any description of the specific dwellings co be repaired or rehabilitated. Most of these are probably unknown at the time of preapplication submittal. Therefore, a more general description should be provided of the geographical area(s) in which the applicant's HPG program will operate. The applicant must describe: (1) The environmentally sensitive land uses within this ' geographical area(s) such as floodplains, wetlands, and coastal areas; (09-01-93) PN 212 FmHA Instruction 1944-1 Exhibit F-1 Page 2 (2) The presence within the geographical area(s) of all environmental conditions such as excessive noise levels, radon gas, inadequate water supply or sewage treatment, contaminatioc from toxic, hazardous, or radioactive substances, seismic conditions, a violation of an ambient air quality standard(s) resulting from emissions from a major facility, or any other health/safety hazards known to the applicant; and (3) The potential for properties to be assisted by the applicant's program to be located in or impacted by the conditions described in paragraphs (1) and (2) of this section. (b) For each box checked "Yes" in item 3, describe the nature of the effect on the resource. If one or more of boxes 17 thru 22 is checked "Yes" or "Unknown," contact FmHA for instructions relating to the requirements for floodplains, wetlands, and the Costal Barrier Resources System. (c) In terms of maps and descriptive information, a map showing a reasonable amount of detail, i.e., all roads, waterways, railroads, airports, etc., must be provided that clearly delineates the geographic area(s) to be served by the HPG program. Also, if the applicant has plans to concentrate HPG funds in a particular area or on a particular type of housing, associated general locations should be highlighted on the map. 3. Public Reaction (a) Describe any objections which have been made to the project. (b) If a public hearing has been held, attach a copy of the transcript or other official record of the hearing. If a public hearing has not been held, certify to that effect. (c) Indicate any other evidence of the communities awareness of the project such as newspaper articles or public notification. 4. Mitigation Measures Applicants will use this part to describe the mitigation measures that will be considered and/or used should any dwellings to be assisted be located within the environmentally sensitive or hazardous areas described by the applicant in response to section 2 of this exhibit. 'a - FmHA Instruction 1944-N Exhibit F-1 Page 3 5. Permits Discuss the status of, and if available, attach any State, sub-State, or local permits or permitting processes of an environmental nature that will have to be complied with in the implementation of the HPG program. There is no FmHA requirement that applicants apply for, permits during the preapplication or application review process. 6. Other Federal Actions Identify other federal programs or actions which are either related to this project or located in the same geographical area(s) and for which you are filing a preapplication, have recently received approval, or are in the planning stages. Completion of Item 2 Applicants must complete this item. Applicants must develop their proposal as it relates to historic preservation in consultation with the State Historical Preservation Officer (SHPO) and provide the SHPO with a copy of their statement of activities and be prepared to discuss and modify it to reflect the historic preservation requirements of the HPG program. (For further information, please review §1944.673 of this subpart and the Programmatic Memorandum of Agreement (FmHA Instruction 2000-FF) provided as part the HPG preapplication package.) Completion of Item 3 Self-explanatory. Completion of Item 4 The answer to this question will be known by the applicant since the applicant would have been formally notified by the U.S. Environmental Protection Agency if the applicant has been listed or is under consideration for listing. 000 (09-OL-93) PN 212 ~ . FmHA Instruction 1944-N Exhibit F-2 Guide: Grantee's Process for Identifying Properties Requiring FmHA Environmental Assessments I. Before beginning work on a particular dwelling, we (grantee) agree to answer the following questions in accordance with the accompanying guidelines: A. Floodplains, Wetlands, and Costal Barrier Resources System (CBRS) 1. Is the dwelling located in a 100-year floodplain? The grantee will check the latest Federal Emergency Management Ag-ncy (FEMA) Floodplain Insurance Rate Maps to determine if the property is located in a 100-year floodplain. These maps are provided by FEMA to each communitywhich has been mapped, and may be reviewed at le,cal municipal or county governmental offices. FEMA maps may be purchased from FEMA's Flood Map Distribution Center by calling 1-800-333-1363. In addition, Farmers Home Administration (FmHA) County Offices maintain an unofficial set of the maps. If a community has not been mapped, information regarding floodplains may be obtained from the Soil Conservation Service (SCS), the U.S. Fish and Wildlife Service, the U.S. Army Corps of Engineers, the U.S. Geological Survey offices, or regional or State agencies established for flood prevention purposes. The grantee will check with the FmHA County Supervisor if a dwelling appears to be in a questionable location. When advised to do so by FrnHA or on^_ of the above agencies, the grantee will obtain the services of a registered engineer or appropriate environmental professional to make the floodplain determination. 2. Is the dwelling located in a wetland? The grantee will check with the local SCS office to determine if the dwelling is located in a wetland protected by Executive Order 11990, "Protection of Wetlands." When advised to do so by SCS or FmHA, the grantee will obtain the services of an appropriate environmental professional to make the wetland determination. (09-01-93) PN 212' O FmHA Instruction 1944-N Exhibit F-2 Page 2 If the dwelling is located in a floodplain or a wetland, the grantee will do no work on the dwelling until FmHA completes an environmental assessment. The grantee will abide by the decisions resulting from the assessment, including mitigation measures or a decision to reject the dwelling for the Housing Preservation Grant (HPG) program. The applicant will provide the FmHA official performing the assessment a copy of the proposed mitigation measures for properties located in floodplains or wetlands submitted with Form FmHA 1940-20, "Request for Environmental Information.". 3. Is the dwelling Located in the CBRS? If the dwelling is located on or adjacent to a coast of the United States or the Great Lakes, the grantee will check c~ith the U.S. Fish and Wildlife Service to determine if the property is part of the CBRS. FmHA County Offices servicing coastal areas may also have CBRS maps. If a dwelling is located within the CBRS, the dwelling is ineligible for the HPG program. B. Historic and Archaeological Properties 4. Does the dwelling or property have any historic or archaeological value? The grantee will develop in consultation with the State Historic Preservation Officer (SHPO) a process to ensure full compliance with the spirit and intent of FmHA Instruction 2000-FF. The process will take into account the national historic preservation objectives set forth in Attachment L of Exhibit A of FmHA Instruction 2000-FF, and will encourage the rehabilitation of historic buildings in a manner that realistically meets the needs of very low- and low-income property owners while preserving the historic and architectural character of such buildings. The grantee will identify properties that are listed or eligible for listing on the National Register of Historic Places. This will be accomplished by evaluating the property as set forth in Attachment 2 of Exhibit A of FmHA Instruction 2000-FF. :p FmHA Instruction 1944-N Exhibit F-2 Page 3, At a minimum, the grantee will contact the SHPO and request comments when any of the following conditions occur: (a) The dwelling proposed for rehabilitation and/or repair is older than 50 years; (b) Regardless of age, the property appears to have significant historic and/or archaeological features, including, but not Limited to: (L) The dwelling appears to have unusual architectural features which are not typically found in the area; (2) A graveyard or burial ground of any type is known to be on the property; (3) The property contains or is known to have contained a significant number of artifacts such as arrowheads, stone tools, etc.; (4) The property is.located in or adjacent to a currently listed historic district or site. (c) Any other conditions agreed upon by the grantee and SHPO under the terms of FmHArInstruction 2000-FF. When planning the rehabilitation of a historic property for a proposed recipient, the grantee will comply with the Secretar~of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitatine Historic Buildines to the extent practicable. If, after consulting with SHPO, it is determined Che Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitatiog Historic Buildines cannot be reasonably met, or it is determined a historic property will be adversely affected, the grantee will furnish all necessary information and initiate formal consultation to afford the Advisory Council on Historic Freservation an opportunity to comment. Attachment 3 of Exhibit A of FmHA Instruction 2000-FF provides additional guidance on this subject. (09-01-93) PN 212 >r FmHA Instruction 1944-N Exhibit F-2 Page 4 If at any time during renova[ion work one of the above conditions mentioned in paragraphs (a) through (c) of this section becomes apparent, the grantee will immediately cease work on the property and contact the SHPO and FmHA. The grantee will abide by the directions of the SHPO and FmHA concerning further work on the property. C. Other Environmental Considerations 5. Does the property contain any areas where chemicals or petroleum products are stored, disposed of, or appear to have been released into the environment? If the grantee discovers such a condition on the property, the grantee will not remove or handle any•of these materials. The grantee will immediately consult with the occupants/owners of the dwelling regarding the situation and will contact FmHA and, if appropriate, the local Health Department or environmental regulatory agency for further guidance. 6. Are there adjacent land uses which now or in the future present a potential detriment to the quality of the environment of the subject property? The grantee will do a thorough reconnaissance of the surrounding area and determine if•there are: noise sources (railroads, airports, industry, heavily traveled highways, etc,); safety or sanitary problems; air pollution sources; or severe deficiencies in services such as fire protection, crime control, etc. If any of the adverse environmental conditions noted in paragraphs 5 and 6 of this section are discovered, the grantee will do no work on the dwelling until FmHA has been consulted. The grantee will abide by the decisions resulting from the consultation and/or assessment, including mitigation measures or a decision co reject the dwelling for the HPG program. ' J w FmHA Instruction 1944-N Exhibit F-2 Page 5 II. We (the grantee) will answer each of these questions on each property considered for inclusion in the HPG program, and will document the recipient file with our findings. If none of the questions are answered "Yes;" we will document such in the recipient file and will proceed with the repair/rehabilitation of the property as planned. We will monitor the work being done to insure that all construction wastes are properly disposed of. We will fully cooperate with and assist FmHA in the preparation of any necessary environmental reviews on the property. SUBMITTED BY: County of Hawaii Mavor Grantee Title Signature Date 000 (09-01-93) PN 212 ~ , OMB APPROVAL N0. 9000 - 0101 U.S. DEPARTMENT OF AGRICULTURE CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS (GRANTS) ALTERNATIVE I - FDR GRANTEES OTHER THAN INDIVIDUALS This certification is required by the regulations implementing Sections 5151-5760 of the Drug- Free workplace Act of 1988 (Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 701 et seq-), 7 CFR Part 3017, Subpart F, Section 3077.600, Purpose. The regulations were published as Part 1I of the January 31, 1989 Federal Resister (pages 4947.4952). Copies of the regulations may be obtained by contacting the Department of Agriculture agency offering the grant. (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS ON REVERSE) Alternative I (A) The grantee certifies [hat it ui(l provide a drug-free workplace by: (a) Publishing a statement notifying employees that [he unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing a drug-free awareness program to inform employees about (1) The dangers of drug abuse in the workplace; (2) The grantee's policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance programs; end (4) The penalties that may be imposed upon employees for drug abuse violations occurring the workplace; (c) Making is a requirement xh at each employee to be engaged in the performance of the grant be given a copy of the scatemen[ required by paragraph (a); (d) Notifying Che employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will • (1) Abide by the terms of the statement; and form AD-1049 (Z/89) ~ ^ i (2) Notify the employer of any criminal drug statute conviction for a violation occurring in [he workplace no later than five days after such conviction; (e) Notifying the agency within [en days after receiving notice under subparagraph (d)(2) from an employee or oth Bruise receiving actual notice of such conviction; (f) Taking one of the following actions, ui thin 30 days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted (1) Taking appropriate personnel action against such an employee, up to and including termination; ar (2) Requiring such employee [o participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (g) Making a good faith effort [o continue to maintain a drug free workplace through implementation of paragraphs (a), (b), (c), (d), (e) and (f). B. The grantee shall insert in the space provided below the site(s) for the performance of cork done in connection with the specific grant. Place of Performance (Street address, city, county, Slate, zip code) County of Hawaii Rural Housine PreGervat;on rI371t Organization Name PR/Award Number or Project Name &tephen K. Yamashiro Mavor Name and Title of Authorized Representative Signature Date INSTRUCTIONS FOR CERTIFICATION 1. By signing and submit[i ng this form, the grantee is providing [he certification set out on pages 1 and 2- 2. The certification set out on pages 1 and 2 is a material representation of fact upon which reliance was placed when the agency determined to award the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of • the Drug-Free Workplace Act, the agency, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug-Free Workplace Act. 2 Form AD-7049 (2/89) 'U.i. GPO: 1989-oi~-005.91529 ~ O U.S. DEPARTMENT OF AGRICULTURE Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower 'Tier Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 7 CFR Part 3017, Section 3017510, Participants' responsibilities. The regulations were published as Part IV of [he January 30, 1989, Federal Resister (pages 4722-4733). Copies of the regulations may be obtained by contacting the Department of Agriculture agency with which this transaction originated. (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS ON REVERSE) (1) The prospective lower tier participant certifies, by submission of this proposal, [hat neither it nor its principals is presently debarred, suspended, proposed Cor debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. (2) Where [he prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. County of Hawaii Rural Housine Preservation Grant Organization Name PR/Award Number or Project Name Stephen K. Yamashiro, Mayor ' ?lame(s) and Title(s) of Authorized Representative(s) Signature(s) Date 1 Form AD-L04S (1/92) ~ t Instructions for Certification 1. By signing and submitting this form, [he prospective lower tier participant is providing the certification set out on the reverse side in accordance with these instructions. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. [f i[ is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to [he Federal Government, the department or agency with which [his transaction originated may pursue available remedies, including suspension and/or debarment. 3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submi[fed if at any time the prospective lower tier participant learas that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. J. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings se[ out in the Definitions and Coverage sections of rules implementing Executive Order 12.49. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant agrees by submitting this form [hat, should [he proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 5. The prnspecIive lower tier participant further agrees by submitting this form that i[ will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered T: ansnctions," without modification, in all lower tier coveredtransactions and in all solicitations for lower tier cover^d !ransactions. participant in a covered transaction may rely upon a certification of a prospective participant in a a~~wer 'ter coverrd it°~nsaction that it is not debarred, suspended, ineligible, or. voluntarily excluded from the covered transaction, unless it knows that [he certification is erroneous. A participant may decide the method and trvquency by whim i[ determines [he eligibility of its principals. Each participant may, but is not required tu, chec!c the Vonprocurement List. 3. Yothing contained in [he foregoing shall be construed to require establishment of a system of records in order to reader in ~;nod faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary curse of hesiness dealings. 'L ~scept per rran~actions authorized under paragraph 5 of these instructions, if a participant in a covered trnnuc!ion icnowinYly enters into a lower tier covered transaction wish a person who is suspended, debarred, ]neligible, or voluntarily excluded from participaCOn in this transaction, in addition to other remedies available Cu !Se Fed~:nl Go~~ernmeni, the department or agency with which [his transaction originated may pursue available remedies, :r.,:!r.diag suspension and, or debarment. Form ~D-llktli (i/9?) ~u s wo. ose-rs~ r, vzai a- ~ ~ HOUSING PRESERVATION GRANT Statement of Activities Rural Development (RD) County of Hawaii Office of Housing and Community Development 50 Wailuku Drive Hilo, Hawaii 96720 ' 9 HOUSING PRESERVATION GRANT (HPG) 1. STATEMENT OF ACTIVITIES a. ~yge of and cond~t~ons for f~nanc~al agci aYanra or $ Housing Preservation Grant Program. The County of Hawaii proposes to use the HPG funds to implement and administer a zero percent (0°s) interest and deferred payment loan program to eligible households in rural areas throughout the County. Each loan shall not be more than $15,000. HPG funds will be used to remove or correct health and safety problems and to make repairs that contribute to improved living conditions, including improved accessibility for handicapped persons. b. Process of selecting rec;p;en fo HP a ~ an determining housinq_greserva ion n d of h ~n~ ident;fy~ng potential environmental effects. Derformina the necessary work and monitoring/insp ;ng work Berformed. In order to qualify for the program, applicants may not have income exceeding the low income levels established by HUD (see Exhibit A), must have occupied the dwelling to be rehabilitated for at least one year prior to and be the intended occupants of the dwelling after the assistance and must have sufficient equity in the property to cover the amount of the loan. In addition, the dwelling must be located in a rural area, as defined by Rural Development (RD), and be in need of repair or enlarging to relieve overcrowding or to address accessibility for the handicapped. Outreach, preapplication screening, inspections, qualifying applicants, evaluating bids, executing legal documents, monitoring and inspecting work performed and writing reports to RD, drawing down funds, keeping accounts and submitting quarterly reports will be performed by the Hawaii County Economic Opportunity Statement of Activities 1 OHCD/6007C/1-12-98 o, Council (HCEOC), an organization selected by the OHCD. Privately contracted building inspectors may perform construction progress inspections. County Building Division of Public Works Department may perform Final Inspections if necessary. To leverage HPG funds, County funds will be made available to eligible participants. In addition, loans may be used in conjunction with other loan programs or with private funds. Community Development Block Grant funds may be made available to the program. The loan will be secured by a second mortgage on the property, which will be due and payable upon transfer of title, sale, foreclosure or condemnation. c. Ident;fy~ng environmental imyLa~t~ An RD environmental review will be conducted if units to be rehabilitated are located in a floodplain or wetland or the proposed work is, not agreed to by the Advisory Council on Historic Preservation under the requirements of Section 1944.673. Whenever major repairs are requested on structures more than 50 years old, an evaluation for historical significance with the State Historic Preservation Division of the Department of Land and Natural Resources will be required. d. Deve opment standards used for the housing oreservar;nn work. The Uniform Building Code (UBC), as amended, and the Housing Quality Standards, utilized by HUD's Section 8 program, will be the primary determinants of eligible repairs. A11 repairs must comply with adopted UBC, which is subject to the amendments in the Hawaii County Code. Repairs that improve general living conditions but do not contribute to the health and safety of occupants may not exceed 20 percent (20%) of the total loan. Statement of Activities 2 OHCD/6007C/1-12-98 Q e. Time schedule for comnl ;ng the g~gram. It is projected that the program can be completed within two years from the date the grant agreement is executed. The past HPG programs has had a steady stream of applicants during the past twelve months and program applicants have had much less of a problem with obtaining contractors interested in small jobs than was the case in the past. A slowdown in construction in the County has made small projects like HPG more attractive to contractors. Moreover, 14 different contractors now have had experience with HPG projects. f. Staff;ng~~guired to complete the 8rggram. The OHCD has over 8 years experience with the HPG program. Since 1993, the OHCD has published a Request for Proposals (RFP) and has selected an organization to provide outreach, preapplication screening, monitoring and inspections, as well as qualifying applicants, assist applicants to evaluate bids, draw up and coordinate the execution of contracts and legal documents and write reports to RD. In 1996 the OHCD selected the HCEOC to administer the HPG program for the next three years based on a multi-year contract. The County is currently in the third year of the multi- year contract. The OHCD will continue to monitor the HCEOC to ensure that they comply with the HPG program rules and regulations. The OHCD will continue to drawdown funds and keep track of accounts. g. Estimated number of very low and low income minority and non-minority to be assisted with HPG funds. It is estimated this grant will be capable of assisting eight to ten low- or very low-income households, of which more than half will be of minority status. Based upon a family size of four this would amount to assistance for 32 to 40 persons, more than half of whom will most likely be of minority status. ' Statement of Activities 3 OHCD/6007C/1-12-98 ~ } h. Geggranh~cal ar a o b v d by the HPG Program, The program will take place in all eligible areas of the County of Hawaii, which includes the entire island except for the Hilo town area. (See Exhibit B) i. Annual estimated budget (S xh~b~r The proposed Budget of $134,594 includes $134,594 from RD and $13,459 of matching funds from the County of Hawaii. j. Description of the accounting system. The accrual system of accounting in accordance with generally accepted accounting procedures and practices, will be utilized for the HPG program. k. Method of val,a ion o b , d o d rm~n h effectiveness of the grogram. The closing summary of the expenditure of funds and program activities at the termination of the grant agreement, which compares the goals with actual outcomes will be completed. 1. Sources and estimated amounts of other financial resources to be obtained and used by the agg~~cant for HPG activities. The County funds ($13,459) is available for the implementation of this program. In addition, HPG loans may also be used in conjunction with private funds or other loan programs. Community Development Block Grant funding may also be available. m. Use of grogram income. Program income received during the grant period is used in accordance with the requirements of the HPG program. No more than 20 percent (20%) is allocated for ' administrative costs. The remainder is used for construction. Statement of Activities 4 OHCD/6007C/1-12-98 When a HPG loan is paid off, the Mortgage will be released, the Promissory Note will be certified as "Paid Off" and the funds will be deposited into the HPG account. Program income is tracked separately from current grant period funding. These funds are drawn whenever enough funds have accumulated to take care of the qualified applicant next in line for a loan. Final report on a specific grant period is not held up by these revolving funds. n. Plan for d~spos~t~on of any security in m n h 1r7 by the applicant as a r it of ~ H a ~v~ ~P ,n the event of its loss of legal atatuG. The OHCD will turn over the proportionate share of the security instruments loaned with the RD funds to the RD or another eligible entity to use for the same housing rehabilitation purposes, as necessary. o. Any other ~nformat~on to explain the pronoaP H program. N/A p. Outreach efforts outlined in 1944.671 (bl. In addition to the broad base of low income population reached, community organizations will be contacted and the program will be publicized through local newspapers and radio. Application forms will include the nondiscrimination slogan. 2. Complete information about the applicant's experience and capa ~ y to carry out the objectives of the p~posed HPG program. The County has over 8 years experience with the HPG program. The OHCD has administered the HPG program from 1988 to 1992 and has monitored HCEOC which was selected to administer the HPG program from 1993 to 1998. 3. applicant's leg~1 existence - See extract from the Hawaii County Code, Exhibit D and Exhibit D-1 legal existence of HCEOC. Statement of Activities 5 OHCD/6007C/1-12-98 S 4. Audited statement for a 8r;vate non-g ~f;r n ; See attached Exhibit E, audited statement for HCEOC. 5. Narrative statement about the area to be served and hP n d for ;mDroved housing. including 8ercentage and a r>>a1 numb r ~f low-;n om and how-in om m;nor; y ho ho1r3 and substandard housincx, the need for the tyge of ho sang p~eserva ;on a ; an e b ing p~po d h an ; ;na A ,s of HP , o ~ or h; o ; g,~8er ; s h m hod of evaluation to be used by the angl; an ;n ~ararm;n;ng the e ;v n o ; or s. At the time of the 1990 Census Hawaii County had: the lowest per capita income (Hawai'i County: $14,969 versus State: $18,379) and the highest rate of families below poverty level (Hawai'i County: 10.9% versus State: 6%) of the four counties; 22% of the State's food stamp recipients, although only 11% of the State population: twice the State rate of people on welfare assistance. The poorest and most rural of all four Counties in the State of Hawaii is experiencing further economic distress because of the loss of over 1,000 jobs County-wide with the demise of the sugar industry. Job loss is further exacerbating families' ability to cope with home maintenance and repairs. Hawaii County's economically disadvantaged are living in old dilapidated/crowded housing or new, but woefully incomplete structures. The 1990 Census shows 10.8% of the housing in Hawaii County was built before 1939 versus 6.7% in the State. Most of the old houses are concentrated in Hamakua where the closing of 2 sugar plantations has meant the loss of over 600 jobs. 3.6% of housing in Hawaii County lacks complete plumbing facilities and 3.4% lacks complete kitchen facilities. These are double the State rates. Most of the incomplete structures are in the Puna district, which attracts the poor from throughout the State and elsewhere with its low land prices. According to 1990 Census 54.9% of Hawaii County is made up Statement of Activities 6 OHCD/6007C/1-12-98 ~ . of minorities. HPG assistance has always served a percentage of minorities larger than this. Very high rainfall and insect damage are the most common causes of residential deterioration in the county. If the roof is not repaired, very highly acidic rainfall due to ongoing volcanic eruptions beginning in 1983, rapidly causes more serious and expensive damage to the structure. The former Hamakua Sugar plantation houses are in need of substantial attention to preserve over 400 units occupied by low income families. The 1990 Census reported 848 homes in Puna lacked complete plumbing; 659 lacked complete kitchen facilities. In West Hawaii high housing cost continues to force the least able to live in dilapidated and overcrowded conditions. While Hawaii County is the poorest and most rural part of the State, it is also the County with the highest rate of home ownership, which makes it well-suited for the HPG program. 61.1°s County-wide are homeowners; nearly 72a of housing units in Puna are owner-occupied. Home ownership have jump dramatically in the Hamakua district when title to over 400 former Hamakua Sugar Company residences was turned over to former employees and pensioners. The State Historic Preservation Office of the Department of Land and Natural Resources will be consulted to identify units that may have historic significance. For any structure constructed in 1948 or before, SHPO will be provided date of construction, photos, Tax Map Key number and a description of the proposed repairs. SHPO and the County will jointly evaluate buildings which are eligible and assess the degree to which the Secretary of the Interior's standards will apply. For Hamakua and all instances of rehabilitation of older homes historic preservation rules will be interpreted reasonably and realistically so as not to burden the low- and very low-income homeowner with excessive costs. The lead paint hazard and the possibility of finding asbestos in Hamakua plantation houses is reason for caution, . but not delay, in the provision of housing assistance in this district. The State Department of Health and Occupational Safety and Health, County Housing and Building Statement of Activities 7 OHCD/6007C/1-12-98 ~ , Division of the Department of Public Works will be consulted as appropriate and contractors will be informed about these houses and any other projects that may have these environmental hazards. Quarterly performance reports will provide RD with an evaluation of program effectiveness. Reports will include what funds were used for administration and for preservation activity; name, address and income of homeowners assisted; total cost, list of repairs and amount financed by other sources; results of environmental review and historic preservation review processes as required a comparison of actual accomplishments versus objectives for the period, including the number of low and very-low income, minority and nonminority persons assisted with HPG and the average cost of assistance provided to each household; of objectives were not met, an explanation of why and what step(s) will be taken to ameliorate situation; objectives for the next reporting period and a certification that final building inspection reports for each HPG-assisted dwelling are on file. 6. ComBonent for alleviating overcrowding. The following standards will guide the determination of an overcrowded situation. Following Section 8/HQS standards, this will be interpreted generally to mean no more than 2 persons per bedroom except when the 2 are children of the opposite sex and at least one of them is.an adolescent. Number of bedrooms Ideal number of persons 0 2 1 2 2 4 3 6 4 8 5 10 Statement of Activities 8 OHCD/6007C/1-12-98 9 1 7. Other act;vities the applicant ;s engaged 'n and PxoerrG rn continue. a statement as to any other fund;ng and wh hAr ~,ppl; can w; l l hav , f ; ; n f ,nd o a , nnr; nur~rl operation of h o h a. ;v; ; a o a a h per;nrl of the HPG grant agreement. As the local government for the Island of Hawaii, the County of Hawaii is empowered to carry out all activities as described in the County Charter. The OHCD is responsible for operation of the Section 8 Housing Assistance Payments and the Community Development Block Grant programs as well as the development of new and rehabilitation housing projects. These federal programs and the County budget for the coming year assure the continued operation of the OHCD during the period of the HPG agreement. 8. Other information that specifically addresses the select;on criteria in 1944.679. 1) The applicant's proposal expects to result in 800 of HPG fund use to unit preservation. 2) The OHCD have over 9 years' experience successfully managing and operating the HPG program. The OHCD have over 8 years' experience managing and operating programs to assist very low- and low-income persons obtain housing assistance. There are no unresolved audit or investigative findings which might impair either organization with carrying out the HPG program. 3) The proposed program will take place entirely within rural areas. 4) The proposed program contains a component for alleviating overcrowding as defined in 1944.656. See #6 previous page. Statement of Activities 9 OHCD/6007C/1-12-98 EXHIBIT C 1998 Rural Housing Preservation Grant Program Proposed Two Year Budget RD County Total Rehab 8 to 10 homes $107,676 $13,459 $121,135 Admin. (OHCD & Non-Profit) $ 26.918 -0- 5 26.918 Total $134,594 $13,459 $148,053 Drawdown Schedule: RD County Total 08/01/98 Initial Drawdown $23,554 $13,459 $37,013 12/01/98 Second Drawdown $37,013 -0- $37,013 04/01/99 Third Drawdown $37,013 -0- $37,013 08/01/99 Fourth Drawdown 537.014 -0- 537.014 Total $134,594 $13,459 $148,053 a, 1 0 O O O O 0 0 0 0 10 N O O O N ~n N O I z d+ o N v a - o I iJ N O N .Y .n ~G T J 1 i e c m ,n r ~a s r i m 1 1'a oa as oa 1 y min mo 00 om I z o r o ...e 1 s m T v m~ a ~a I I r i I I~ 0 0 0 o a o 0 0 I m mo mo aul mm I z -.a em .u+ ~ ~ m m ~n ~u v a 1 G. T ~n N v T m T `a I V y ~ ti tell O O O O N O O O Q' S v N T O l1 m T _ ~ s S ~D m r O. m a N v ."1 N T m ti m z p 0 0 0 0 O O O O LI VI O f1 in O N O m .n z T r N S J) m ti O S W N Y1 v m ti O m r1 L T v N T T ~n m m Q U v Z p a o o a o o O O ,A m O o o O ~n ~n m 15 o N m m a- J m m n m r I Y N v N n1 N a N e i T 1 I I 1 8 0 0 0 0 0 0 0 0 I m ~n o o m vi o o m _ Is mm +o n< 1 N b h O ~ N l a N mm. ~ N< N e i v 0 0 0 0 0 0 0 o a I y O ~n O N O ~n O in 1 2 b O O T N~ - I :J N N N J1 m 1 'L N m .y N N T N m ~ W ~ `a ~ as U U U J Z 2 Z Z r ~ :.i tiJ .~.1 Z ~ U ~ ~ ~ ~ J j~ ..1 $2 ~ ] $2 -0 $2 3 2 O ~ ; ; O T a - T _ 0 J 7 J N J Y J N 2 v ~ y ,3 vS¢ m,'d v ~ y o ~ o o ~ o ~'a° 'z=_ a~ a~ T - - ~n _r v :l e q m a s n U ? J ^ J U a W _ _ ~ , - - - = _ U EXHIBIT A I ~ ~ 3 'w~ HOUSING PRESERVATION GRANT GEOGRAPHIC LOCATION MAP ~ i~ Hilo Bay ,~`'-~,,f~~~~ \ . i I / 5 _1 i HILO (I~eligible i l - f i~~~, ~ i ~ ~ ~ i ~ EXHIBIT B HOUSING PRESERVATION GRANT K ~ A GEOGRAPHIC LOCATION MAP i ~ ~ ~ HILO (Ineligible Area) I f ~ ~ r 1 ~ ~ ~ ~ ` \ ~ ~ ISLAND OF HAWAII r, v ~ ~i ~ KONA 1 i 1 I ~ i / I EXHIBIT B ~ f • i y rr'~ ~ ~ `J 1 ..~tl '~I,'ti I ~~W• ~ ~ ~n - , '_u CSTlON LISP ~ --^aaxcc~"' J ~ oa , 9%~ / J/J rayuu~~ L..~ / ia.~.,f~~ It..~. i I / f ~ / aa"i~C. ~ r• r ~ I ~1 1 \ 1 ?J/ , ~ 713'aK~ [3Y ~ III jar GE~N I ' u~nct Q V II / C ~ I`\ _ I__._. ~Il EXHIBIT 8 ~ v ~ ~ ~ ~ n ,-1 i . w. ~C~; /"cam `j ~ ~ ~ ~ ~ t~~ai i - ~ C v a- - -`L . I i y ~ \ i % ~ a I_ i / O ~ \ / ~ ~ ~ ~ ~ ~ ~ ~ ~ ac:::- ( i i z--_ ~ ~ ~r^ _ ~ ~ _ i ~ ~ 0 ~ ~ ~ 1 _i \ , , ~ ~ 1 Q ~ , . . k ~ 4.i Fix L;~.'rtNCE~ L17.~.YA ~ V.l~Q::.3.'. fA~ ~ I / ~ n ~ ~ I 1 ~ / C ~ SUnO CF F!aw? I i !1 vC.7-8 • f _ _ 1C2_t p[ 'tLLC] _ Vap'~ 7eCK EXHIBIT B EXHIBIT C 1998 Rural Housing Preservation Grant Program Proposed Two Year Budget RD County Total Rehab 8 to 10 homes $107,676 $13,459 $121,135 Admin. (OHCD & Non-Profit) 5 26.918 -0- 5 26.918 Total $134,594 $13,459 $148,053 Drawdown Schedule: RD County Total 08/01/98 Initial Drawdown $23,554 $13,459 $37,013 12/01/98 Second Drawdown $37,013 -0- $37,013 04/01/99 Third Drawdown $37,013 -0- $37,013 08/01/99 Fourth Drawdown 537,014 -0- 537,014 Total $134,594 $13,459 $148,053 THE HAWAII COUNTY CODE 1983 (Revised anal Republished 1995) ~ZY OF M 1- ~ • ~ G.' c.,~- \~'~~i ~ ~ ^ \v~I~~~~~ i • ~ f ~ . ~ Y trrE•OF Mph'`` A CODIFICATION OF THE GENERAL ORDL~IANCES OF THE COUNTY OF HAWAII STATE OF HAWAII EXHIBIT D § 2-~ HAWAII COU*tTY CODE , Section 2-5. Lzspections; charges for overtime. (a) When an applicant requests that an inspection be made, other than during normal working hours a ~ a Saturday, Sunday, or legal holiday, the applicant shall bear the cost of such inspection shall pay the cost to the County, prior to receiving final approval of the project. Mone realized shall be credited to the proper accounts of the respective agencies to cover the cost ch overtime inspections. Such moneys aze hereby appropriated and shall be expended for ~ tion cosu without further actio? of the council. (b) As used in this secIIOn: (1) "Applicant" means any person reque a inspectional services from the County. (2) "Cost" means the amount to azged by [he County for overtime inspection a[ the per hour rate, including overhead sirative chazges, to be established by the chief engineer of the department o c works, commensurate with the changes in salary and applicable fringe benefits and o end expenses. (c) "In on" shall include all inspections provided for by law. C.C., c. art. 10, sec. 9; Am. 1978, Ord. No. 368, sec. 1.) Article Z. Executive Branch. Section 2-6. Office of the mayor. - The office of the mayor shall be composed of the mayor, the managing director, and the safety coordi- nator. (1975 C.C., c. art. 1, sec. 2.) Section 2-7. Organization of executive branch. (a) The executive branch of the County is organized into the following agencies: (1) Depamnents and heads under direct supervision of the mayor. DEPARTMENT DEPARTMENT HEAD (A) Corporation counsel Corporation counsel (B) Department of finance Director of finance (C) Planning department Planning director (D) Department of reseazch and development Director of research and development (2) Departments and heads under duect supervision of the managing director. DEPARTMENT DEPARTMENT HEAD (A) Deparnment of public works Chief engineer (B) Deparanent of parks and recreation Pazks and recreation director (C) County band Bandmaster (D) Fire department ..............................................Fire chief (3) Departments and administrntive heads under commissions and administrative supervision of the mayor. DEPARTMENT ADNIPi iLSTRATIVE HEAD (A) Department of personnel service Director of personnel services • (B) Police department Chief of police (C) Department of liquor control Director, department of tiquor control (D) Department of water supply Manager 2-8 ADMINISTRATION § 2_'] - (E) Department of housing and community development Housing administrator (4) Agencies and administrative heads under administrative supervision of the mayor unless expressly excepted therefrom: AGENCY ADMINIST]tATIVE HEAD (A) Civil defense Civil defense administrator (B) Office on aging County executive on aging (C) Hawaii redevelopment agency Manager (1975 C.C., c. 2, att. 1, sec. 3; Am. 1989, Ord. No. 89-48, sec. 1.) Section 2-8. Order of succession to office of mayor. In the event of civil, military or natural disaster, during the temporary absence or disability of the mayor, the managing director shall act as mayor. If the office of managing director is vacant, or during such periods as the managing director is tmable to so act, the director of finance shall then act as mayor. If the office of director of finance is vacant, or during such periods as the director of finance is unable to so act, then the planning director, director of reseazch and development, director of personnel services and director, depamnent of liquor control, shall succeed to the office of mayor in the order specified herein. (1975 C.C., a 2, art. 1, sec. 4J Article 3. Office of the Corporation Counsel. Section 2-9. Settlement of claims. The corporation counsel shall have the power to adjust, settle, compromise, or submit to orlon any action, causes of action, accounu, debts, claims, demands, disputes, and matters in favor or against the County, or in which the County is concerned as debtor or creditor, now existing or whit y hereafter arise, not involving or requiring payment in excess of $1,500, provided the money to settle generally has been appropriated and is available; and provided further that a quarterly report of all s ements shall be filed with the council. (1975 C.C., c. 2, art. 2, sec. 1.01; Am. 1975, Ord. No. 87, sec. 1.) Section 2-10. Settlement of land acquisitions. The corporation counsel shall have the power to adjus ompromise, settle, or submit to arbitration, any land acquisition requesu referred to him by other Co agencies or eminent domain actions, causes of eminent domain actions in favor of or against the C ty, or in which the County is concerned as purchaser, seller, condemnor, or condemnee, now pendin or which may hereafter arise, not involving or requiring payment in excess of $2,500, provided the ney to settle any matter generally has bcen appropriated and is available; and provided further that a erly report of all settlemenu shall be filed with the council. (1975 C.C., c. art. 2, sec. 1.02; .1975, Ord. No. 87, sec. 1J 'cle 3A. Office of the Prosecuting Attorney. Section 2-10A. A ointment of personnel. There steal e an office of the prosecuting attorney as provided by Charter. The prosecuting attorney may appoint dep prosecuting attorneys and necessary staff, including investigators. The investigators shall have ' all of powers and privileges of a police officer for the County of Hawaii. The office of the prosecuting alto ey shall adopt policies and standards for training and use of these powers consistent and in conformance tth those adopted by the Hawaii County police department. All investigations relating [o the discharge of 2-9 ADML^7TSTR~TION '7 t § 6~ fact, or that the director had acted in an arbitrary or capricious manner, or had manif _ Lion. 1 , Article 13. County Housing Agency. Section 2-66. Created; scope of authority. An agency to be known as the Hawaii County housing agency is creaed to provide adequate housing in the County as it deems necessary. The agency shall consist of all of the members of the council. When the council acu as the Hawaii County housing agency, its role is limited to public housing policy formulation and is not charged with the dudes of admir[istering housing programs. (1975, Ord. No. 124, sec. 1.) Section 2-67. Purpose. The purpose of the agency is to make housing available in those areas of the County where the agency fords [hat adequate housing accommodations are not available. In addition, the agency shall carry out the purposes and powers given to the County by virtue of chapter 46, Hawaii Revised Statutes. (1975, Ord. No. 124, sec. 1.) Section 2-68. Powers. The County housing agency shall have the foAowing powers subject to applicable limitarions of State law: (a) Authorize and issue bonds under chapters 47 and 49, HRS, to provide moneys to carry out the purposes of [his article including the satisfaction of any guarantees [Wade by the County pursuant to this article; (b) Appropriate moneys out of the County to carry out the purposes of this article; (c) Obtain loans, insurance and guarantees from the State or the United Stazes, or subsidies from either; (d) Acquire necessary land by dedication, lease, purchase, exchange, or eminent domain; (e) Other powers as provided by section 46-15.1, HRS. (1975, Ord. No. 124, sec. 1.) Section 2-69. Housing administrator created. There shall be a housing administrator who shall be appointed by the mayor and may be removed by the mayor. (1975, Ord. No. 124, sec. 1.) Section 2-70. Powers of administrator. In order to carry out the powers in section 2-68, the housing administrator may: (a) Develop and construct dwelling uniu, alone or in partnership with developers; (b) Provide assistance and aid to a public agency or person in developing and constructing new housing and rehabilitating old housing for the elderly of low income, other persons of low income, and persons dis- placed by any governmental action, by making long-term mortgage or interim construction loans available; (c) Contract with any eligible bidders to provide for construction of urgently needed housing for persons of tow income; (d) Enter into agreements with appropriate officials of any agency or instmmentaliry of the United States in order to induce such official to make, insure or guarantee mortgage loans under the provisions of the National Housing Act, as amended, with the approval of the County housing agency; 2-21 § 2-70 HAWAri COtrrvTY Cone ~ ~ (e) Make a direct loan to any qualified buyer far the down payment required by a private tender to be made by the borrower as a condition of obtaining a loan from the private lender in the purchase of residential property; (f) Sell or lease completed dwelling units; (g) Assist in the leasing of private and public dwellings; (h) Acquire and utilize public and private lands for the purposes of this section; (i) Provide interim construction loans to partnerships of which it is a partner and to developers whose projects qualify for federally assisted project mortgage insurance, or other similar programs of Federal assistance for persons of low income; (j) Apply for and utilize Federal and State rental payment assistance funds; (k) Provide County funds for rental payment assistance for privae and public dwellings; (1) Adopt such rules pursuant to chapter 91, HRS, as are necessary to carry ou[ the purposes of this article. (1975, Ord. No. 124, sec. 1.) Section 2-71. Duties of adn,inictrator. (a) The housing administrator shall have direct responsibility for the administration and operntion of the County housing programs and shall be under the direct supervision and control of the mayor. The hous- ing administrator shall have the authority and responsibility to staff the agency with necessary personnel to carry out the purposes of the agency. It shall be [he duty of the housing administrator to coordinate operations and programs of the County housing agency with the applicable housing plans and programs of the State and Federal governments. (b) All programs and contracts with the Federal government to carry out the purposes of the County housing agency shall be prepared by the housing administrntor and transmitted to the council for approval. (1975, Ord. No. 124, sec. 1.) Section 2-72. Federal funds. y~,-~ If, in exercising any of its powers, the agency acquires funds from the Federal government, a separate account for such funds shall be established and no commingling of such funds with other funds shall take place. (1975, Ord. No. 124, sec 1.) Section 2-73. Signing of contracts. All instruments and documents relating to the housing programs of the County housing agency shall be signed by the mayor as authorized by the Charter and the council. Any and all contracts with the United States Department of Housing and Urban Development shall be submitted to the agency for its approval and any such contract shall be executed by the mayor as authorized by the Charter and the council. (1975, Ord. No. 124, sec. 1.) Section 2-74. Revolving fund created. There is established a special revolving fund entitled the County housing program revolving fund to be maintained by the director of finance. (1975, Ord. No. 1?5, sec. 2.) Section 2-75. Use of revolving fund. The revolving fund shall be utilized to pay for items such as: (a) contractual services, housing surveys, navel, supplies and materials, and other front-end costs related to the development of housing, and (b) [o exer- cise the buy-back option conning in favor of the County contained in any conveyance document and [o pay the costs of maintaining, repairing, renting, or reselling units purchased by the County pursuant thereto. Any z-,~ i .~1DFdYISTR.~TION 2.7j interest earned by the fund and any advanced costs that are recovered from housing project funds shall be - returned to the revolving fund. (197, Ord. No. 12~, sec. 3; Am. 1993. Ord. No. 93-33, sec. l J Section 2-75.1 Housing special funds. (a) There are created and established housing special funds to be known as the: (1) Kulaimano Elderly Rental Housing Special Fund. (2) Ouli Ekahi Rental Housing Special Fund. (b) All income generated from each rental housing project shall be deposi[ed into its respec[ive housing special fund to be expended by the Housing Administraror solely for the operation, maintenance and improvement of that particular rental housing project. (c) The Housing Administrator shall be responsible for the administration of all housing special funds in accordance with prescribed laws and procedures applicable to the expenditure of coun[y funds. (1995, Ord. No. 95-149, sec. l.) Article 14. Mass Transportation Agency. Section 2-76. Creation. ' For the purpose of providing mass transportation service in the County whether directly, jointly, o nder contract with private parties, an agency to be lmown as [he mass transportation agency is created ' order to implement chapter 51 of [he Hawaii Revised Statutes. (1975, Ord. No. 1~3, sec. 1.) Secfion 2-77. Transportation coordinator created. - There shall be a transportation coordinator who shall be appointed by the yor and removed by the mayor. The position of transportation coordinator shall be exempt from the c tl service laws. (1975, Ord. No. 1~3, sec. I.) Section 2-78. Duties of transportation coordinator. The transportation coordinator shall have direct responsi uy for the administration and operation of County mass transportation service, whether such service is ovided directly, jointly, or under contract with private parties. The transportation coordinator shalt be u er the direct supervision and control of the mayor and shall have the authority to staff the agency wit necessary personnel to cam out the purposes of the agency. (1975, Ord. No. 153, sec. 1.) 'cle 15. Code of Ethics. Section 2-79. Purpose. (a) The purposes of this le are to: (I) Prescribe stan ds of conduc[ for the guidance of County officers and employees; (2) Prohibit ce 'n conduct involving County officers and employees; and (3) Set fort the procedure for the interpreta[ion of ethics problems of County otficers and employees. (1975 C.C., c. ,art. 3, sec. l.) Sectio -80. Interpretation of article. is article shall be Liberally construed to promo[e high standards of ethical conduct in County a vernment. 9-5-96 J_J3 - ~ ~ OEP~RTMEFT CF RECULATC'nY rO:NCI'c5 STATE OF HAWAII In the Matter of the Petition For Charter of HAti'AII COUNTY CCONOMIC CPPORTUNIT'! CCU.4CIL ) CHARIER GF INCORPORATION HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL YOSHITC TANA Y.A COUNTY aTT^v'~:'KY COUNi'f OF hA'rl;~l I CCU:lTY BUILOItIC, HI LO, HAWAII - A7TCRA`_Y EXHI9IT D-1 r ' G DEPARTMENT OF RcGU.ATLRY rOG'~CI.S STAT: OF HAWAII In tl~.e Jla ct'er of the Petition For Chart cr of HAWAII CGUNTY ECONOMIC OPPORTUNITY CGUNCIL CNARTCR G~~ INCCRPCRATION of HAWAII COUNTY ECONOMIC OPPORTUNITY CGUNCIL Knai+ ye, that: ui.ereas RALPH H. KIYOGA Y,I, ROBER7 M. GTA, HLA-1 NE ORADSH AW, BENEDICT LUI KWAN, FUMII:O IWAMASA and TADAO OK1~!lOTO, all bf whom are residents of t;~e State of Hawaii, have made ap?lica- tian to me, as Director of Regulatory Agencies, to grant a Charter of Incorporation to them and their associates; NOtiJ, THERE FOR C, I, SIDNEY I. HAGHIMOTO, Director of the Depavtment of Regulatory Agencies, State of hlawaii, in the exercise of all power and authority anywise enabling me to act in this behalf, do hereby constitute the above-nae.ed.persons and their associates a body corporate, and confer upon them t-~ie following Charter: CHART'cR OF I.\C^uRPCR~1TIGit o'' HAWAII COUNTY ECG\CMIC CPPOR TUNITY CC Ui\CIL I. The name of t.`.e car?oration steal) ~e °H A'WAII COUNTY ECGNCMIC GPPCRTUNIT'f CGUNCIL°. II. The location and initial principal office of CLe corporation shall be at Councy 3uilding, 4JUnty er Hawaii, 4ilo, hawaii; such principal office c.ay be 1. • ~ 4 chanc_d frog. :ime to Line tp such other location in ';he State o. Hawaii as the Board of Oira ctort shall depignata. III. The objects ant: purooces of the ca rporation shall ue: I. To actively solicit the coordination and cooperation of all individuals, agencies and organi~a- tions, bath Gcblic and private, i+ithin the County of Hawaii, towards assi si:in9 those individuals and groups who are below average eco nor..ic levels to attain an ir,.p raved capability of financial earning. 2. 7o enlist ins erect an d•financi al support from any and all sources to enSaSe in projects to cor..bat poverty, 3, To cake, enter into and perform contracts with any person, firm, aspociaticn, corporation, private, public or municipal or body pcii~ci c. 4. To sponsor, contract far, or o?erate dnd conduct activities such as remeci al and non-curricular education, employment, job training, counseling, !'.ealth and vocational rah auilitation, housing and home manage- meet, welfare, research, training, and demonstration activities, and such other activit-i cs as may Le related tp any of the obj ec'cives herein. j, To acquire by pur ci~.ase or ot!-.erwise, hold, deal in and dispose of such personal property and, with the consent of not less than three-fourths of the mem~ers or the corporation, such real property as may Le necessary or convenient f-or the purposes of the cor?oration. j, To Sorrow r.:oneys •.,i th tl:e consent of not • less than U,r ee-fourths aP tl~•e members of the corporation, withou L- limit as to amount, to meet t:'~e operating ono other expen5C5 Of the CO rpOrdtion and, from time Lo time, to " ~ draw, .rake, accept, en.io rse, execute and issue Promissory notes, ~lr of ts, tills of exchange, warrants, bonus, dco entures and other negoti a::lc or non-negotiacle insCruments and evic.ences of i~;dab tedness for a~Y pf the above purpcca„ aad to secure the payment of any thereof and of tLe interctt thereon by mcrica~e or pledg°_, conveyance or assignment i:: trust of a~zy of the property of the ca rparation, and [o sell or otherwise dispose of such bonds or other ablicationc of the corporation far its corporate purposes. IV. The co rporaCion shall have all powers capable of being vested in corporations not organised For profit under the laws o° the State of Hawaii and shall l;e aut(:ori_xc to engage in any activities, and do and perform any actt of any nature wbatso ever that shall be proper, necessary or convenient for the furtherance of the objects and PurFOSes set forth in .lrticle III hereon. V, The duration of L-he corporation shall be perpetual. V~, The corporation shall conpl ete its or9ani_atian wiChin thirty days aft ei- issuance of the Ciiart3r of Incorporation. Yit. .lll oP the powers anc authority of the corpora- tion s:rall be vested in ant may ~e exercised by the 3oard of Oirecto rs except as limited by law, this Charter or the 6y-Laws, and, in furtherance and not in limil:acion of said general powers, the P.o and of Oirecto rs shall have power, acting always in accordance uith the 3y-Laws: to make rules anG regulations not inconsistent ui th the 3y-Laws; to create such cammi~tees of the 3oard of Oirectars e.• oP J. _ ~ the :.o rpor a'cion and to ::esi mace as mempers of such committ ce. scch persons ac it shall determine and to Ca m'cr uron cuch committees ouch powers and authority as may 6t' resolu'cion be set forth ror tho ca riry ing on ar exercising cf the purposes and posers of tha corporation; ar.d generally to do any and avert' law Pul act necesoary or proper to carry into eff act the powers, purrases and objects cf the corporation, Said 0o and of ilirectars shall consist or- ~n oc lass tha.~ oi:: (5) persons who shall be qualified, nominated, elected and appointed as is provided far in the"Gy-Laws. Until their successors phall have been duly elected the initial directors of the corporation and their business ar.d home addresses are as follows: 0usiness Home lame Address Address Ralph H. Ki yes ski Uept. oi= Education 81 Apoki St. 480 waianuenne Ave. Hjlo, Hai+aii Hilo, Hawaii 6enedict Lui Kwan State Employment Service 2Gb Naianupnue Ave. 225 Kapiolani St. Hilo, Hawaii Hilo, Ha'.+aii Elaine Grads:•.aw Univ, of Hai+aii Hon aunau ,.ztension Servic_ Nay+aii Kainaliu, Kona Robert M. Ota Univ, of Hawaii 135 Alae St. Extension Service Hilo, Hawaii Federal L'uilding Ni lo, Hai~ai i Fumiko luamasa Oept, of Social Services 12,38 'daianuenue Ave. 52 Puuoko St. Hilo, Hawaii Hilo, Hawaii Tadao Ckimo L'o County Auditor's Office County 3uilding Hilo, Hariaii Onomea, Hawaii VIII, The o~=ficors o' the eo r,ro ration mall consist of such orficcr as droll he provi dcC for in t~ne oy-Lai+s and their quolificationc, duties, powers, term o. orfi ce and manner of appoinCmenc shall de as provi Lied for in the 3y-Laws. Any o~Fi ccs may 'oe created or abolished by the By-La~.,c, provided that there shall always 6c a presideni, a vice president, a secretary and a treasurer. The treasurer may 6e a corporation, and the offices of secretary and treasurer may be held by the same person. The initial o:'Picers of the ccrporation and their business and home addresses are zs follows: Business Home Officor Address Address President: Da.~, of Education 81 A?o:;i St. ' Ralph H, Kiyos a::i 480 '~~ai anuenue Ave. Hilo, Hawaii Hilo, Ha•.~aii , Vice-President: Benedict Lui Kwan State Employment Service 26b VJai anuenue Ave. Z25 Kapiolani St, Hilo, Hawaii Hilo, Hawaii Secretary: Univ, of Hawaii Dlaine 6radshaw Extension Service Honaunau Kai naliu, Kona Hawaii Treasurer: Univ, of Hawaii Robert M. Ota Gxt ension Service 135 Alae St. Federal Building Hilo, Hawaii .Hilo, Hawaii-' LX , Nembzrs or the corporation shall be admitted, suspended, and expelled in such manner as Shall from time to time Se prescribed 6y the By-laws, The initial By-Lau, of the corporation shall be approved and adopted by the signers of the Petition For a Charter oP Incorporation wiEnin thirty (30) days aFt er the granting e. such Charter. 'hc 6y-Lau: may be altered, amended or repealed thereaPtcr by a majority of the members • presenC at any annual meeting or o special meeting duly callca and saccirically held For such purpose. ~ f ~ XI. The carporaci on is nor: arg anlsad for prcfit and mill no] isscz cny stack. No ,p art or cho corporation's assorts, incpme ar earni nSS 5ilall Se distri6ut zd to its members, directors ar pf~=i ears except Par s=rvices actually ran dared to the cprporation. If the corporation shall cease to exist or shall be dissolved voluntarily ar involuntarily, all prooerty and assets of the corpora- tion of every ki r,d of car the payment cf its just debts shall be di stribut:d solely to one or more organizations exempt from United Stat ea income tax, either charitable, scientific, educational, or with purposes siailar to those of the corporation. XII. The property or the do rpor,atioh shall alone be liable at law for payments of the debts and liabilities or" the corporation. No director or officer of the corporation or his heirs, executors, or administrators, shall be liable to the corporation for any loss or damage suffered 6y it on account of any action or omission by his as su cii director or officer, unles^, scch director or officer shall, with respect to such action or omission, be and/or have 6ecn guilty or misconduct or negligence in the performance of his dut'i es as such director or officer. XIII. This C:-.arCCr shall 'oe subject to amendment Prom time to time in accordance wii:h law, and the corpora- lion shall he su'o;ect to all general laws now in force or hereafter enacca~ ~.~i th regard tv ca roorations of this nature. 6. ` R IN 'AIi~E55 'w~N ERECr, I have hereunto set my hand and ccused the oFfici al goal o~= tic Ocpertment od r~eculate ry Aecncios of tha St c~::c oi'raauaii Lo oe hereunto o~ 7l~ n are-i:ed thin day or /j1a'v 1965. o R~C~vR Cr RCGULnT~.',~Ti;S S i ATE OF HAW.11 I S HAWAII COUNTY ECONOMIC OPPORTUNITY COUivCII. ~Y-LAWS APPROVID BY: HAWAII COWi IY ECONOMIC OPPORTUNITY COUi1CII. BOARD OF DIRECTORS NOVEMBER 25, 1996 Attachment C - • TABLE OF CONTENTS PAGE PREAMBLE 1 PURPOSE AND FUNCTIONS 2 ARTICLE I. MEMBERSHIP Section 1. Size of the Board 3 Section 2. Board Composition 3 Section 3. Selection Procedure for the Poor Sector 3 Section 4. Selection Procedure for the Private Sector a Section 5. Selection- Procedure for the Public SectoF--;- 5 - Section 6. Appeals Procedure by Other Groups for 5 Adequate Representation Section 7. Removal 7 Section 8. Alternates e Section 9. Vacancy - - s - - Section 10. Limitation on Board Service io Section 11. Conflict of Interest 11 Section 12. Compensation 11 ARTICLE II. OFFICERS OF THE BOARD Section 1. Description and Duties i3 Section 2. Election of Officers is Section 3. Term of Office 14 Section 4. Recall and Vacancies 14 Section 5. Dual Office Holding is Section 6. Supervision by Board 1 a Section 7. Ratification of Acts by Board 1 a ARTICLE III. COMMITTEES Section 1. Executive Committee 15 Section 2. Program Development Committee is Section 3. Membership Committee 1 s Section 4. Finance Committee 1~ Section 5. By-Laws Committee 1~ Section 6. Human Rights Committee iz Section 7. Personnel Committee 1$ Section 8. Evaluation Committee 18 Section 9. Legislative Committee is Section 10. Ad Hoc Committee 1$ i TABLE OF CONTENTS PAGE ARTICLE IV. MEETINGS AND RULES Section 1. Regular Meetings 1 g Section 2. Notice of Regular Meetings 19 Section 3. Agenda of Regular Meetings 19 Section 4. Minutes 20 Section 5. Biennial Meeting 20 Section 6. Special Meetings 20 Section 7. General Rules For All Meetings 20 ARTICLE V. DUTIES AND FUNCTIONS OF THE EXECUTIVE DIRECTOR Section 1. Conditions 22 Section 2. Responsibilities of the Executive Director 22 - ARTICLE VI. FISCAL PROCEDURES Section 1. Fiscal Year 24 Section 2. Required Signatures 24 Section 3. Legal Documents 24 ARTICLE VIl. PUBLIC ACCESS TO AGENCY INFORMATION Section 1. Meetings 25 Section 2. Books and Records 25 ARTICLE VIII. AMENDMENTS TO THE BY-LAWS 26 ARTICLE IX. DISSOLUTION 27 ARTICLE X. COMPLIANCE WITH BY-LAWS 28 APPENDIX 29 BY-LAWS HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL PREAMBLE The name of this private non-profit corporation shall be the HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL. It shall act as the official Community Action Agency for the County of Hawaii, in conformity with the standards and regulations set forth by the Community Service Block Grant Act (CSBG). -i- - - a PURPOSE AND FUNCTIONS The purpose and functions of this organization shall include the following: i. To identify areas of poverty and diagnose causes of poverty in this County. 2. To develop a comprehensive plan to prevent, alleviate, and eliminate poverty in this County. 3. To develop, conduct, and administer programs and to oversee the conduct and administration of anti-poverty programs as established under provisions of the CSBG Act and State of Hawaii. - a. To act as an advocate of the poor and to encourage, - stimulate, and assist in the development of anti-poverty projects by public and private sector organizations to meet the needs of the low-income including Native Hawaiians. 5. To encourage, stimulate, initiate, and support efforts aimed at providing, health and decency standards of living, for all people in the County who are in fact poor. 6. To involve residents of the area and members of the population to be served, in planning, policy making, and operation of the program. To engage in such other activities as the Board may deem necessary or desirable to effect a permanent improvement in the capacities of individuals, groups and communities affected by poverty, to deal effectively with their own problems so that they may become self-dependent. 8. To actively engage in community and economic development and housing projects for total community betterment to • contribute toward elimination of poverty in this County. -2- ARTICLE I. MEMBERSHIP SECTION 1. SIZE OF THE BOARD A. The Board shall consist of thirty-three (33) members. B. The power to change the size of the Board rests with the Board. C. A change in representation of one category of membership must be reflected in the proportion of members from the other categories. SECTION 2. BOARD COMPOSITION ' The total number of Board seats shall be divisible by three (3) and represents the different sectors in the community to ensure the effective handling of poverty related issues. A. Public Officials Eleven (11) seats shall be allocated to elected Public Officials or their representatives. B. Representatives of the Poor Fourteen (14) seats shall allocated to representatives of the poor, although representatives of the poor need not themselves be poor. C. Representatives of Private Groups Eight (8) seats shall be allocated to private groups. SECTION 3. SELECTION PROCEDURE FOR THE POOR SECTOR A. The members of the District Council will elect by majority vote, in a secret ballot, representatives to the HCEOC Board of Directors. B. Election for alternates shall be handled in the same manner . and at the same meeting as HCEOC Board Representatives are elected. C. Apportioning of Districts. -3- . a 1. Number of representatives to serve on HCEOC Board from each District Council shall be based on data derived from the latest official County of Hawaii Census information. 2. The total number of District seats for all Districts shall be reapportioned before election to ensure representation in proportion to the number of poor persons residing in the area. SECTION 4. SELECTION PROCEDURE FOR THE PRIVATESECTOR A. The Board as a whole shall select the private sector seats before seating of the members at the biennial Meeting - in JFurie. The-general criteria considerectirrselecting a -group shalt be the following:. _ . _ 1. Concern for the plight of the poverty population. 2. Demonstrated involvement in other community organizations. 3. It covers the geographic area of Hawaii County. B. The media shall be utilized every two years'to inform all private groups that they can petition for a seat on the Board. C. The Membership Committee Shall, in ranked order of priority, recommend to the Board the organizations, to be considered. D. A total of eight (8) seats shall be reserved for private business and/or human service groups which can provide technical assistance and/or other resources toward the mission of Hawaii County Economic Opportunity Council. E. Private groups shall designate representatives and their alternates, and may change representatives at any time with written certification to the Board, such as a letter signed by the ' groups' President or other official certifying official action. Such substituted representatives shall serve only the remaining portion of the term and be seated during the first meeting they attend as official representatives. -4- f J F. Each representative-or alternate shall be empowered to speak and act on behalf of the individual organization which he/she represents in connection with the Board's business. SECTION 5. SELECTION PROCEDURE FOR THE PUBLIC SECTOR A. The designating officials shall consist of the Mayor and the County Council Members, and the County Prosecutor. B. The Mayor and the County Council Members shall determine who shall serve on the Public Sector of the HCEOC Board. C. Names of both Public officials and their Representatives must be submitted to the Board by the designating officials. _ _ D. The Publie Officials selected to sit on the Board may each - appoint a permanent Representative to serve either full-time in his/her place or whenever he/she is unable to attend a meeting. E. Representatives of Public Officials are not'alternates and restrictions which apply to alternates of the private sector and poor sector are not applicable. F. Representatives of Public Officials shall be authorized to act for the Public Officials in matters before the Board, and not as individuals. G. The term of the Public Official or their Representatives shall be conterminous with the term of the Public Office of the Mayor and the County Council. SECTION 6. APPEALS PROCEDURE BY OTHER GROUPS FOR ADEQUATE REPRESENTATION A. Who Any community agency or representative group of the poor which feels itself inadequately represented on the Board shall be able to petition the Board and have a hearing for representation. -5- o B. Time Petitions shall be presented at least fifteen (15) days before the regular meeting of the Board at which they will first be presented. C. Place Petitions shall be filed at Hawaii County Economic Opportunity Council, 47 Rainbow Drive, Hilo, Hawaii 96720 between the hours of 7:45 A. M. and 4:30 P. M. or by mail. - - - - D. Form . The appeal stiafl be in writing and shalE contain specific justification for the appeal and twenty-five (25) signatures or 51 % of the members of the petitioning group or agency whichever is less. E. Hearing The Membership Committee shall review the appeal and order the matter set for hearing. The proceeding shall be presided over by the Chairperson of the Membership Committee or, in his/her absence, by the Vice-Chairperson. Any procedure may be modified or waived by stipulation of the parties and informal disposition made of any appeal. F. Decision The Board ofDirectors shall make the final decision. A certified copy of the decision and any accompanying findings and conclusions shall be delivered or mailed to all parties of the proceedings. -6- ~ ~ ~ ~ G. Provisions for adjusting and realigning composition. If a petition for adequate representation is granted, the Membership Committee shall include the community agency or representative group of the poor in the annual priority listing recommendation to the Board in March. Seating of the representatives shall occur at the biennial June meeting. SECTION 7. REMOVAL A. Grounds for Removal 1. Private and Poor Sectors Unexcused absences from two (2) consecutive Board Meetings and three (3) consecutive Committee Meetings shall constitute cause to reconsider the person representing the group. 2. Public Provisions for removal shall not extend to the public officials or their representatives. . B. Procedure for Removal 1. Private and Poor Sectors " a. If a member is absent or not officially represented for two (2) consecutive Board Meetings and three (3) consecutive Committee Meetings, the member and the organization which he/she represents will be notified in writing (fifteen (15) days prior to the hearing) that the Board intends to remove them. The member and the organization will be given a date (by the Membership Committee) to appear at the hearing. At that time they may present reasons why they should retain their position on the Board. -7- 2. Private groups may substitute representation at any time with written notice to the Board, provided that the provisions of these By-Laws with respect to certification of the representative are complied with. 3. Public a. The Mayor and Councilperson of the County shall be notified if.one of the representatives_is not in substantial attendance, or far just cause, the- Mayor and Councilperson may be requested to appoint a replacement. b. The Mayor and Councilperson may substitute _ representatives at any time with written notice to the Board, provided that the provisions of these By-Laws with respect to certification of the representative are complied with. SECTION 8. ALTERNATES A. Alternate Representative of the Poor Sector" 1. Alternates shall be chosen according to Article I. Membership, Section 3C Selection Procedure of the Poor. 2. Alternates shall act only as substitutes for a regular member in his/her absence and may not serve as officers of the Board. 3. In the event of a vacancy, the alternate named for each representative shall serve the balance of the representative's term. 4. An alternate filling a vacant seat shall become a regular . member of the Board, and thus, eligible for service as an officer of the Board. -8- B. Alternate Representative of the Private Sector 1. Groups represented on the Board shall designate one (1) alternate, who shall be certified in writing by the sponsor he/she represents. 2. Each alternate may represent only one (1) Board member. 3. An alternate shall act only as a substitute for a regular - - member in his/her absence-and may not serve as an officer - of the Board. 4. If a representative vacates his/her seat, the alternate shall fill the seat as a regular member for the duration of the term. Anew alternate shall be selected by the particular group affected.- - - SECTION 9. VACANCY A. A vancancy on the Board shall occur when: 1. A member and the organization he/she o#ficially represents has been notified of his/her official removal for just cause by action of the Board. 2. A member notifies the Board of his/her resignation in writing, or the Board is notified of the death of a member. 3. The designating officials (Mayor, County Council) may remove a public official or his/her representative. 4. A Public Official leaves office. 5. The remainder of the seats allocated to public officials, if the number of public officials who are willing to serve does not comprise one-third (1 /3) of the Board. -9- B. The Board of Directors shall fill vacancies as soon as possible. 1 . The vacant seat of a representative of the poor shall be filled by his/her alternate. 2. Vacant seats of representatives of private organizations shall be filled_in the following manner: a. If an alternate has been selected, the altemate shall fill out the term and the naming of a new representative shall occur after this event. b. If an alternate has been selected, the Board shall ask the organization which appointed the former member to name another representative to fill the term. 3. Vacant seats of public officials shall be filled by Board request of the designating officials (Mayor, County Council) to select another public official or representative or when an official indicates willingness to sit on the Board. SECTION 10. LIMITATION OF BOARD SERVICE. A. Public Officials or their representatives shall have no tenure restriction and serve for the duration of their apppointment by the designating official as long as the public official is currently holding office. B. Representatives of the poor and of private organizations may serve up to five (5) consecutive years, but no more than a total of ten (10) years with a twelve (12) month hiatus between terms. -10- SECTION 11. CONFLICT OF INTEREST A. No person may sit on the Board if he/she is an officer or an employee of an organization contracted to perform a component of an HCEOC program, an employee of HCEOC or federal employee of a funding source. B. No person may sit on the Board if he/she has a conflict of financial interest and "substantial interest" in HCEOC contracts. 1. Any director indirect. financial interest in the specific sale or rental transaction, including a commission or fee, a share of the proceeds, the prospect of promotion, a profit, or any other form of financial reward." 2. Any of the following interest in the business which is supplying the goods, space, or services for purchase, rent or lease. ----Ownership ----Partnership interest or other beneficial interest of 5% or more ----Ownership of 5% or more of the stock ----Employment as an Executive Director ----Membership on the Board of Directors or other governing Board SECTION 12. COMPENSATION A. Regular compensation of Board Members shall be prohibited. - 11 - e. Reimbursement shall be made to cover cost of certain expenses actually incurred as a result of attendance at a meeting, or in the performance of other official duties and responsibilities in connection with the agency. 1. Reimbursement for transportation to and from official appointments is permissible. If private automobile is used, the rate shall be in accordance _ _ with federal travel regulations. 2. Other Expenses _ A grantee or delegate agency may make available to Board members the use of telephone, xerox; etc. in the agency free of charge for matters relating to official business. 3. Board members may be reimbursed for up to six (6) meetings per month. -12- t ~ ARTICLE II. OFFICERS OF THE BOARD SECTION 1. DESCRIPTION AND DUTIES The Officers of the Board shallbe: Chairperson, Vice-Chairperson, Secretary, and Tresurer. CHAIRPERSON The Chairperson of the Board shall preside at all meetings _ of the Board and Executive Committee; appoint members - of all Committees with the exception of the Executive and Personnel Committees. uICE-CHAIRPERSON - - - - - The Vice-Chairperson shall have all the powers and shall perform all duties of the Chairperson in that person's absence. SECRETARY The Secretary shall maintain a complete file of the minutes of all meetings of the Board and shall sign required correspondence and documents. TREASURER The Treasurer shall have charge of the funds of the Board and shall arrange for the deposit of funds in the name of the Board in a Bank designated by the Board. The Treasurer shall present a Financial Report to the Board at each regular meeting, and shall explain the Report at the request of the Chairperson of the Board. -13- E SECTION 2. ELECTION OF OFFICERS At the Biennial Meeting held in June, a Nominating Committee shall be appointed by the Chairperson. It shall be the duty of this Committee to nominate candidates for the offices to be filled. Additional nominations from the floor shall be permitted. Election shall be held during that meeting. If the election is delayed, elections shall be held no later than the next regular scheduled _ _ _ monthly meeting. The officers shall be elected by secret ballot. SECTION 3. TERM OF OFFICE The officers shall serve-for two (2) years or until their successors are elected. Their term of office shall- begin a_t.the close of the- - meeting at which they are elected. SECTION 4. RECALLAND VACANCIES In the event a vacancy occurs in any office of the Board, or the Executive or Personnel Committees, an election shall be held at the next regular Board meeting to fill the vacancy for the remainder of the term. SECTION 5. DUAL OFFICE HOLDING Board members may hold office in organizations they represent and an office on the Board. But no one Board can hold more than one office on the HCEOC Board of Directors. SECTION 6. SUPERVISION BY BOARD Executive Officers of the Board are responsible to the Board and can only act on terms which the Board has assigned to them. All other items must come before the Board. SECTION 7. RATIFICATION OF ACTS BY BOARD Acts not delegated to an officer or committee must be ratified by the Board. -14- ARTICLE III. COMMITTEES The standing Committees shall be: Executive Committee, Personnel Committee, Evaluation Committee, Program Development Committee, Legislative Committee, Finance Committee, Membership Committee, By-Laws Committee, and Human Rights Committee. The Chairperson of the Board shall appoint Committee members with the exception of the Personnel Committee and the Executive Committee. _ _ The membership of a particular committee. shall appoint its Chairperson with the exception of the Finance Committee and the Executive Committee. Membership on all committees, including the Executive Committee, shall be proportional to the- representation in each of the three (3) categories of membership comprising the Board. Each Board Member shall be assigned to at least one standing committee, and insofar as possible, all Board Members should be assigned approximately similar-loads of committee work. The Chairperson of the Board may be an ex-officio member of all committees but has no vote. Members of committees shall be given not less than forty-eight (48) hours notice. Meetings shall be called by the Chairperson of the Committee. All recommendations from committees require ratification by the Board before implementation. SECTION 1. EXECUTIVE COMMITTEE The Executive Committee shall consist of the Officers of the Board, plus as many additional members as required to make the total membership proportional to the representation of classes of Board membership. These additional members shall be elected by the Board in the same manner as officers are elected according to these By-Laws. Nominations for each of the Executive Committee positions shall be made by the Nominating Committee, whose responsibility it shall be to maintain proportional representation. -15- The Executive Committee shall be empowered to act only in emergencies which demand action is less than the forty-eight (48) hours required to call a special meeting of the Board. If a quorum of the Board is not present at a regular or special Board Meeting, a quorum of the Executive Committee shall be empowered to enact only items of business on which action is mandatory before a regular or special Board Meeting can be held. The Executive Committee shall have no other special powers and shall be specifically prohibited from conducting ordinary business. The Executive Committee may not amend the By-Laws. SECTION 2_ PROGRAM DEVELOPMENT COMMITTEE The- Program Development Committee shall review all new and refunding- proposals for programsF recommended priorities, - establish guidelines and standards for projects ahd make- a recommendation regarding same to the Board, this includes research proposals. Priorities shall include the recommendation of target areas concerned. The Committee shall establish public relations guidelines and standards for informing the community at large of the nature and progress of the anti-poverty programs, with special emphasis on creating involvement. It shall not deal directl~'with media or other community interest without the approval of the Chairperson of the Board. It shall conduct any other public relations activities suggested by the Board. SECTION 3. MEMBERSHIP COMMITTEE The Membership Committee shall receive and review the certificates submitted for membership on the Board as provided by these By-Laws, and shall maintain a current priority list of organizations suitable for potential membership. This Committee shall invite organizations to send representatives to the Board, shall maintain in current status, attendance records of individual representatives at all regular, special and assigned committee meetings, and shall make recommendations to the Board concerning inactive members to the Board concerning inactive members or organization as provided in these By-Laws. Upon Board direction, this Committee shall make appropriate notification to organizations when changes in representation are required. -~s- SECTION 4. FINANCE COMMITTEE The Committee shall recommend guidelines for the management of fiscal policies, shall work with the Executive Director in preparing the budget, and make a quarterly report on the fiscal condition of the corporation to the Board. This Committee shall also explore possibilities of community contributions to the non-Federal share of the cost of any program. SECTION 5. BY-LAWS COMMITTEE The By-Laws Committee shall be responsible for the development of By-Laws and recommendations of proposed amendments to the By-Laws. The Committee shall annually evaluate the By-Laws for conformity to Federal; State and local regulations, and for operating efficiency. It shall perform such additional duties as prescribed by the Board. SECTION 6. HUMAN RIGHTS COMMITTEE The Human Rights Committee shall hear any and all grievances, except for the grievance of the staff, which shall be handled by the Personnel Committee, or"suggestions from any member of the Board or the community concerning matters of interest to it. The Committee shall report to the Board, all matters brought to its attention and all recommendations it may have. The Committee shall make itself available to the public. Nothing in this provision shall prevent parties to grievance complaints from subsequent direct access to the Board. This Committee shall work in conjunction with the Equal Employment Officer. This Committee will also review the Affirmative Action Plan and recommend Board approval. This Committee will also guarantee the enforcement of the Agency's Affirmative Action Plan. -17- SECTION 7. PERSONNELCOMMITTEE The Personnel Committee shall review formal grievances presented by any member of the staff in accordance with the Personnel Policies. The members of this Committee shall be elected by the Board and shall elect their own Chairperson. The Personnel Committee shall review all salary increases or adjustments in conjunction with the Finance Committee and shall keep the Personnel Policies current according to Federal and State regulations. SECTION 8. EVALUATION COMMITTEE The Evaluation Committee shall evaluate the effectiveness of all programs put in operation by HCEOC. The Evaluation Committee shall set forth recommendations to the Board on the continuance of on-going programs. It shall work closely with the Program Development Committee and be informed by that body of all programs in operation, as well as those being considered for approval by the Program Development Committee. SECTION 9. LEGISLATIVE COMMITTEE The Legislative Committee shall prepare bills for introduction in the County Council and the State Legislature on any matter which affects HCEOC and shall establish a liaison with legislative groups far the introduction and advocating of all legislation in which HCEOC may have an interest. SECTION 10. AH HOC COMMITTEE The Chairperson of the Board of HCEOC, with concurrence of the Board of Directors, may create an Ad Hoc Committee for • any matters not specifically covered by these By-Laws. -18- ARTICLE IV. MEETINGS AND RULES SECTION 1. REGULAR MEETINGS The Regular Meetings of the HCEOC Board of Directors shall be held on the fourth Monday of each month unless otherwise ordered by the Board or the Executive Committee. However, the Board shall meet at least once every ten (10) weeks. SECTION 2. NOTICE OF REGULAR MEETINGS A. Written notice of meetings and the Agenda shall be sent to all members of the Board. Committee reports, reports from the Executive Director, and other agenda materials shall be included in themailing when available. B. Notice of meetings shall be given to the local public media. C. Notice shall be provided at least five (5) days in advance of meetings. D. It is the responsibility of member organizations to see that their alternates are notified when they are to attend a meeting in the place of the representative. SECTION 3. AGENDA OF REGULAR MEETINGS A. The Agenda shall include minutes of the previous regular meeting, any special meetings, and committee meetings held since the last regular meeting. B. The Chairperson shall provide opportunity for new business to be introduced from the floor and from the public, whether or not this has been included in the advance written agenda. -19- SECTION 4. MINUTES A. Written minutes shall be kept for each meeting. e. Written minutes shall include a record of votes on all motions. C. Minutes of previous meetings shall be distributed to all Board Members prior to the next meeting. D. Minutes of meetings shall be made available to the public for inspection and where applicable, translations will be -made. - . - - _ _ SECTION 5. BIENNIAL MEETING . The Regular Meeting in June shall be known as the Biennial Meeting and shall be for the purpose of seating new members, electing officers, Personnel and Executive Committee members, and for any other business that may arise.. SECTION 6. SPECIAL MEETING Special Meetings of the Board may be called by the Chairperson or upon written request of any five (5) members of the Board, provided each member has at least forty-eight (48) hours advance notice of the time and place of the meeting. The items for which a meeting is specially called shall have precedence over any other agenda items. SECTION 7. GENERAL RULES FOR ALL MEETINGS A. Parliamentary Authority The rules contained in the most current edition of Robert's Rule of Order (revised) shall govern the Board and Committees to which they applicable and in which they are not inconsistent with these By-Laws. The Chairperson appoint a parliamentarian. -20- f B. Ouorum 1. One-half of the total non-vacant seats shall constitute a quorum at any Board or Committee Meeting. If a quorum of the Board is not present at a Regular or Special Board Meeting, a quorum of the Executive Committee shall be empowered to enact those items of business on which action is mandatory before the next regular or special meeting can be held. 2. The Board shall note in its minutes how many seats are vacant at the time of each meeting, in order to determine that a quorum has been established. . 3. The quorum requirement is applicable for all official Board action at the time the action is taken. If at any time during a meeting the quorum is destroyed, the Board's action will not be recognized as official. C. Voting 1 . All votes in Regular or Special Board Meetings and Committee Meetings shall be by majority votes unless otherwise specified in the By-Laws. 2. Proxy voting by any Board Member shall be prohibited at meetings of the Board and its Committees. D. Scheduling of Meetings. 1. All meetings shall be scheduled for the convenience of Board Members and the General Public. -21 - e ARTICLE V. DUTIES AND FUNCTIONS OF THE EXECUTIVE DIRECTOR SECTION 1. CONDITIONS The Executive Director shall be employed by two-thirds of the certified members of the Board. The Executive Director's services may be terminated at any time in accordance with Personnel Policies and subject to atwo-thirds vote of certified members. SECTION 2. RESPONSIBILITIESOFTRE EXECUTIVE DIRECTOR A. The Executive Director shall have chief administrative responsibility by carrying on the work of HCEOC, according to policies established by the Board. B. The Executive Director shall be responsible for drafting the programs as directed by the Board and shall make recommendations to the Board concerning these programs. C. The Executive Director shall make recommendations to the Board regarding fiscal policy formore effective use of funds available. D. The Executive Director shall attend all meetings of the Board and may attend Committee meetings of the Board. E. The Executive Director shall report his official activities to the Board regularly and promptly, and shalt keep the Board informed as to whether its instructions and policies have been executed. F. The Executive Director shall inform the Board promptly of established funding policies and directives, so that local policy can be maintained in conformity with all rules, regulations and policies. -22- ~ ~ J G. The Executive Director shall maintain a complete library of pertinent current rules and regulations and policies. H. The Executive Director shall be responsible for informing the Board of all Federal, State, and local Laws and Regulations to enable the administration of programs to be in compliance with them. I. The Executive Director shall be responsible for the proper completion and prompt return of all official requests for information, reports, and forms from funding source. .1. The Executive Director shall be responsible for~maintainirig liaison between the Board and other agencies, and shall keep communications continuous with all community agencies relevant to the work of HCEOC. K. The Executive Director shall hire, supervise and terminate employees and shall be responsible for compliance with Federal, State, County, and HCEOC Policies on Equal Employment Opportunity, Affirmative Action and hiring and termination of staff members. The Executive Director shall direct and supervise all HCEOC Employees and make recommendations to the Board matters of Personnel Policy. M. The Executive Director shall perform such other duties and carry out such other responsibilities as the Board may require. -23- ~ ? r ARTICLE VI. FISCAL PROCEDURES SECTION 1. FISCAL YEAR HCEOC Fiscal Year shall be from October to September. SECTION 2. REQUIRED SIGNATURES The following four (4) individuals shall be authorized to sign drafts, notes, and checks: Executive Director, Fiscal Officer Treasurer, and Chairperson. Any two (2) signatures will be required on checks, notes, and drafts. SECTION 3. LEGAL DOCUMENTS Legal documents for HCEOC require either the Executive Director's or Chairperson's signature. -24- f ARTICLE VII. PUBLIC ACCESSTO AGENCY INFORMATION SECTION 1. MEETINGS All Committee, Regular and Special Board Meetings shall be open to the public except those portions concerned with personnel matters. SECTION 2. BOOKS AND RECORDS Upon request, all books and records shall be made available to the public with the exception of staff personnel records. -25- t ARTICLE VIII. AMENDMENTS TO THE BY-LAWS The By-Laws may be amended by a two-third vote of the members of the Board at any General or Special Meetings, provided notice of the proposed amendment or amendments ; has been given to each Board Member in writing at least fourteen (14) days prior to the meeting at which the proposal is to be considered. The Board shall report any amendment or amendments to the Director of Office of Community Services (OCS). The Board shall not amend these By-Laws in the absence of a quorum. It is not within the power of the Executive Committee to amend these By-Laws. -26- s . ARTICLE IX. DISSOLUTION The duration of the corporation shall be perpetual. In the event the corporation is to be dissolved, dissolution procedures shall be in accordance with the State Law as modified by any other legally binding conditions. -27- ARTICLE X. COMPLIANCE WITH BY-LAWS The rules, regulations, and policies promulgated by HCEOC shall be in compliance with the provisions of these By-Laws. Any rules, regulations, and policies not in ; compliance shall be void. -28- • ~ 2 00 5 ~ _ Ww `n U 3 Z 2 O o?IR~ iPAI ~~'~a l ~ N J I~Ad ~.ROlM'u~M Z ~ ~ ~N ~:IPy ~1 AfI~M ~ 2 ~ N ~ Q W ~ 'wP41'~RM/M'~P~Y vY~WA Q U 2 ~ W w s a a~ Q m > ~ ~ ~ D] W 4.~, .a.,a,.~ ~ _ c'~ M b ~ j nWVM tiavwlwM ~ w ~ g 'nAwM'mOm0~N~4~ ~ m ~ ~ Q 2 K i 2 H ~ O r d ¢ ~ II~Api p ~A aL0111 P~ WrB ~11'~F11I1 W N ~ Ow ~ Z ~ O ~nww ++nw~H w~a.aaH'wd ~ N ~ o ~ ~ as a W ~RIgO w N 3 aF LL. ~ 'a~.w'iun~'vu~e'~ow 'g y ° o '~aa++r'ownn oouuu~'.wy~ uv S m ' 0 N~ t.i.. n~ooH arwmd'wiwM'rwiewH Q N m '°""d 'e..' v w U m O = W U a ~ T W ~ N I r y I ~ J ~ ~ ~ ~ f~O11 O ~ t S ~~/MN'~roL QIH ~iM~M ~ U 3 uWi Z ~ 4 Y w a +Rq ^ - a ~ Ymt'pfivM,H'msavwl ~ o ~M"~M~urH'~M w,G1 V~AYM w~4f'AalovM ~TMA wsWp RB aw~.b ' iupl il~~d PO w~r+ -29- 1 s ~ACtea~ any reply to: ?A.~ac. d L ~aY~~ cs. G-•.t. 7CG43 ~ywAtl Ctt7NTy FC'vOMIC ORCrilJ`iln tOU:•C~l ~ 3~~ , . _ Interr:al Revenue Service ~ .3_ FEB 25 1911 ~ ~ ~ code 1~2i:zLo2_ea~ ~r~d D Hawaii County Econoczio Ogportimitp Conn.-s t !:6 Keauo Street ELlo~ :3avraii 96720 Geatlasen: Purpose: Chaz3tahl.e do ?duCati nnnl Film Secures vi t.5 Internal a,eveaue Service Center: Philadelphia, Pennsylvania letouating Period Ending: rebruary 28 ?ddrasa Inquiries to District Disaxtor of internal Revenue: Los Angeles Based as iaforaation supplied, and assuming your operations will be as slated in your exertion application, ve have determined chat you are aes~c from e'ederal income tax under seccicn 501(c)(7j of the Internal Revenue Coda. Any change is your purposes, character, or aechod o: operation rsus[ be reported co us so s.•e may consider the effect o: t::e change on your exexoc sCacus. You cost also report nay change in your ratioe and aaaress. iia hrre further determined chat you are not a private :oundacion cri~hin the meanin3 oc section ~09(a) a: t:~e Code 'oecause you are an organization described in section l70(o}(I)(A)(vi) cor ycsrs be^.nning ?rior to Sanuar-; 1970, you az'3 requires! to file the annual Lnrac-~at.on return, ?ore 990-n r'or coca su'osequent year, please refer to the :--iscructiona accaa?anying tae cons 990-:, :or rhaL particui.zr ye,:r [o deceraine vhecher you are required to ale. ' 2f filing is required, you mssc file the rora 990-A 'oy the 15th day of ire fifrY. month oiler the end of your annual accounting period. at-achment D L-178 - (Rev. 1 8aa4i.L Co~sL',r F.COZtOmZn QppnrtauiLy COUnC', You are not required co file Federal income tax returns unless you are eub~ecc co the tax on unrelated business income under section i!1 of the Code. If you are suo)etc co this tux, you must file an income tax reacza oa Fota 990-T. in this letter ve are not determining whether say of your present or proposed activities is unrelated trade or bu - aeea as defined is section $13 of the Code. Yon are not liable for -redesal unemnloymenc taxes. You are liable for social security taxes only if you have flied waiver of exempcioa eerzificaces as provided is the Federal Insurance Caacribucions Act. Goazributions made ca you are deductible by donors as provided in section 170 of the Code. 3equescs, Lesacies, devises, transfers or gif u co or for your use are deductible for Federal es ca [e and gift Lax purposes under the provisions of seeclons 2055, 2106 and 2522 of she Code. You need an employer ldeacLficacion number, even if you don't have any employees. .pis number is :a be used on all your tax returns and in your correspondence with the Internal Revenue Service. IF you da not have such a number, your District Director will cake seeps co see chat one is issued ac as early data. Eaia is a dntermiaation letzer. Very truly. yours, ` District Director L-178 - (Rev. L....; BOARLI OF (RECTORS NAME OCCUPATION REPRESENTING PUBUC SECTOR Sandy Schulte Attomey Mayor Stephen Yamashiro Abbie Napeahi Homemaker Councilman Aaron Chung Jerry Chang Businessman Caunalwoman Bobby Jean Le¢head-Todd Kenneth Acdal IFE Case Manager Councilman Dominic Yagong Jirtt Rhodes Director of Promotions, Kaiko'o Mall Councitman John Sarnangelo Milton Nakatsu Hawaiian Telephone Representative Councilman James Arakaki Sandra Sakaguchi HCC Acting Provost Councilman Al Smith Mel Martinson Businessman Councitman John Ray Curtis Tyler III Councitman Self Joe Reynolds Councitman Self _ Jay Kimura Prosecuting Attomey Self PRIVATE SECTOR Mike Nagao Administrator - UH University of Hawaii. Cooperative Ext. Michael Okumoto Manager -Bank of Hawae-Hilo Bank of Hawaii Neal Matsunobu Credit Officer Hawan 'rederal and State Credit Union Cf~ford Ogata Programmer Hawaii Government Employees Assn. Russell Botheld Business Agern ILWU Vacarn vacarn vacant LOW-INCOME SECTOR Tom Poy Retired Plantation Employee Hamakua District Council Dwight Takamine Attomey Hamakua District Council Richard Cabane Instructor-Keaukaha Elderly Center Hilo District Council Louisa Manzano Homemaker Hilo District Council Matsuko Teragawa Homemaker Hilo District Council Ann Gonzales Homemaker Hilo District Council Agnes Navarro Homemaker Hilo District Council Vivian Patacat Homemaker Kona District Council Dorothy Yanagi Homemaker Kona District Council Jewett Spencer DOE Kona District Council Maxima Mecate Homemaker Ka'u-Puna District Council Sarmago Gose County Immigrant Specialist Ka'u-Puna District Council Sabina Hauanio Studern - UH Ka'u-Puna Disthct Council Anna Pacheco Homemaker Ccurttywide Policy Council attachment E SECTION 12. COT "~'ENSATION A. Regular compensation of Board Members shall be prohibited. -11 - B. Reimbursement shall be made to cover cost of certain expenses actually incurred as a result of attendance at a meeting, or in the performance of other official duties and responsibilities in connection with the agency. 1. Reimbursement for transportation to and from official appointments is permissible. If private automobile is used, the rate shall be in accordance with federal travel regulations. 2. Other Expenses A grantee or delegate agency may make available to Board members the use of telephone,'zerox, etc. in the agency free of charge for matters relating to official business. 3. Board members may be reimbursed for up to six (6) meetings per month. Board members are volunteers as per By-Laos Section 12, pp. LL 5 1?. attachment E-1 Attachment F See attached Page 4 Section C. Affirmative Action, an excerpt from HCEOC Personnel Policies, Approved November 22, 1993. A complete copy of Personnel Policies can be supplied upon request. Attachment F rr ~ ~ Y B. Head Start The qualifications for Head Start teaching staff and director positions are mandated by the Department of Human Services, State of Hawaii. All applicants for Head Start positions need to meet those qualifications and need the approval of that Department prior to hire. C. Affirmative Action It is the policy of HCEOC to provide equal opportunity in employment far all qualified persons and to prohibit discrimination in employment because of race, creed, color, sex, age, marital status, national origin or ancestry, religion, handicapping condition(s), arrest and court records, political affiliation or belief, or membership in any lawful organization. The management will plan and take affirmative action to achieve equal employment opportunity. D. Sexual Harassment HCEOC shall not tolerate sexual harassment. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conductor visual forms of harassment of a sexual nature constitute sexual harassment when: 1. Submission to that conduct is made either explicitly or implicitly a term or condition of an individual's employment; or 2. Submission to or rejection of that conduct by an individual is used as the basis for employment decisions affecting that individual; or - 4 - X33 ~ F: a e ~ _ ~ s i e ~ ~ ~ - •s Y ~~Y ~ r ~4-~~ a U E.. ~ ~ 6 ~ ~ ~'r2 a z n i o ? S ~ F-' N Z ! q c.~ C i~ ~ ~ F ~ ~ ; a~ ~ o p _ a ~ ~ 5 3 d L ~ 3 e ~ 93_ 3~2 1~~ +_~g ~ Sf~ f3 ~~-!L. ii 5 E~ t, ~zS _ e ,r, Am.rWmenrof Llano f1UN:FEE SS.W Nom Profit ('~arprauon IGmSmee., en.r 9r S .la yet p.groooonall FRE IN OUPU UTE STATE Cf Hnwnu OEPAA TMENT OF RE0V U70AY AGENCIES 9usinm Aequlranan Orvmm~ 1010 AiCflard2 Street Marling Address: P.O. da[ vo. Honolulu. Ha..n1 96810 In Cv Mmv of Ne Amendment of 1 Nrr GLrter al Incarodraoan al I ? - 1 r Hawaii County 'economic Cppor, unity Connell I 1 C~tTIF1CATE dF AMENDMENT _ The undersigned duly authorized officers of Hawaii County eaanemic Op porrunir/ Council a Hawaii non-profit .corporation, do hereby certify that at a xxAZZiof meating of the members of wid cerparatian duly called end held at Hllo Association to Hela Retarded Citizens Hilo, Hawaii , an the 20th day of Apri I 19 81• for the purpose of amending the Charter of Incorporation, it was •.oted by not less than two-thirds of the members present at the meeting to amend the Charter of Inrnrporation of said corporation, as set forth in the exhibit attaeHed hereto and made a par' of this Certificate. y1N 'NITNE55 WYEREOF, the undersigned have hereunto ut their hands this~~'Cay of I / Lb'1 , 19 . n face Held: CCelrpegson 57ATE CF HA'NAII ) rice el¢ Secretary Counrv of Hawaii ) Laurence J. Caper las and Anoel ins Costoria being first duly sworn an oath deaase and say that they are the Chairperson end Secretary respectively, of Haraii County economic Coportunity Council that as wch officers they ere duly authorized to sign the foregoing Corti Eicate of Amendment; and that :hey have read the said Corti Eicate and attached Exhibit, know the contents ihereor, and 'hat the some ere +rue. /1 SubaenbW ~d rVw7wn to ~elare me Nis ~ Gi ~ _ 1(yaY of ! /~f++ . 19 ~~//~{C/~,~,n~,el'~~ /I rp/EO.r-Sadn~~ ' f 11Ce ~ eld: ~2C re Tarv Nptary PubGC, ;ra Judicial Cbc rt. G sate or Ha:.w MY COmmkrwn rsmrel: °/!5/32 q } The for egamq amendment n Hereby allw.ed Nn ~ I ~1.~~ day of ~I wl„y.L 19 ~ i1~k,~~alIr ~ ~ 7vigt r al ~qw orv ~gcnuo {t\ A C~arooratlan-,7~ n lv. IIr''aV~r"*«ator lSrr rerene udr lar Imvueawsl U am Accachmene 8 _ R ~ IPSTRUCTICNS the am encment to the Chen er aF Incoraoration of a non-arofit caraar:ian must be approved at a meeting duly called and held for that purpose by the vote of not iess than r..o-tnir CS of the members present at the meeting, or by a larger proportlan of members cs may x reduired 'oy the Charter of Inearporetion. The exact Wane of the corporation es stated in the Charter ¢f Incarooretian must he sated in the heading and'ba dy of the Certi`icate. The Certificate must be signed and verified by at Icest two officers rnd filed with the Business Registration Division of the Department of Regulatory Agencies, together with the filing fee of Si.00. The cmendment shall became effective upon the allowance by the Director of Regulatory Agencies. EXHIBIT The cxhihit must show that the Chnrter.of Ineorporntion has been an ended 6y: I. Stating the article or articles or paragraph ar paragraptu of the Charter of Incorporation m amended, or 2. Stating the Charter of Incorporation as amended in full. CHARTER OF INCCRPORA7I CN of HAWAII CCUNTY ECCNCMIC CPPCRTUNITY CCUNCI~ II! 1, io actively solicit the coo rdinarion and coooerarion of all individuals, ~gencie5 and organi2ations, horn public and private, within rnq County oi• Hawaii, towards assisting Those indiv itluals and groups who are oelow average economic levels r0 attain an improved capability of financial earnings antl To assi sr the general ]Vhl is of The County of Hawaii. Z. TO enlist intere ST antl findnC idl SuDPort from any and 311 sOUraes 70 engage in projects ra comoar poverty ana to engage in sucn orner activities as the 3oard may deem necessary or desi raola ro of feet a oennanent improvement in me capacities of intliv idual s, groups, and communities. REC~I'~ED •9!7 ;gip 3 , ~ S CV Y I~ HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL HILO, HAWAII Financial Statements and Supplementary Data and Comments on Internal Control and Compliance Years ended September 30, 1996 and 1995 (With Independent Auditor's Reports) 0 0 HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Year ended September 30, 1996 Table of Contents Pages Independent Auditor's Combine Report on the Basic Financial Statements and the Schedule of Federal Awards 1 Financial Statements Statements of Financial Position 2 Statements of Activities 3 Statements of Functional Expenses 4 Statement of Cash Flows 5 Notes to Financial-Statements - 6 Supplementary Data: Schedule of Federal Award Programs 10 Independent Auditor's Report on the Internal Control Structure Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 12 Independent Auditor's Report on the Internal Control Structure Used in Administering Federal Awards 14 Independent Auditor's Report on Compliance Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 17 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Major Federal Award Programs 18 Independent Auditor's Report on Compliance with the General Requirements Applicable to Federal Awards Programs 19 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Awards Programs 2~ ~NNIFER L. GOSSERa ` CERTIFIED PUBLIC ACCOUNTANT An Accounting Corporation 688 Kinoole Srrccr, Sairc 20I Hilo, Hawaii 96720 • Phone (808) 969.3111 Fax (808) 969.7}63 Independent Auditor's Renort on the Basic Financial Statements and the Schedule of Federal Awards The Board of Directors Hawaii County Economic Opportunity Council: I have audited the accompanying statement of financial position of the Hawaii County Economic Opportunity Council as of September 30, 1996, and the related statements of activity, functional expenses, and cash flows for the year ended September 30, 1996. These financial statements are the responsibility of the Council's management. My responsibIliry is to express. an opinion _ on these financial statements based on my audit. Information for the year ended September 30, 1995, is presented for comparative purposes only and was extracted from the financial statements _ presented for that year, on which I expressed an unqualified opinion in my report dated July 12, ' 1996. I conducted my audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations". Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the funancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Hawaii County Economic Opportunity Council as of September 30, 1996, and the results of its operations and changes in net assets for the year ended September 30, 1996 in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements of the Hawaii County Economic Opportunity Council taken as a whole. The accompanying Schedule of Federal Awazds is presented for purposes of additional analysis and is not a required part of the basic financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole. July 30, 1997 6 ~ HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Statements of Financial Position September 30, 1996 and 1995 1996 1995 Assets Current assets: Cash $ 22,822 Cash-designated 154 271 Grant receivables from governmental agencies 347,843 658,362 Other receivables 104,654 73,897 Prepaid expenses 93,021 97,762 Total current assets 568,494 830,292 Property and Equipment: Vehicles 1,335,283 1,202,090 Furniture and equipment 466,836 427,967 Building 77,800 77,800 Leasehold improvements 2,532,836 2,284,836 Land 35,000 35,000 4,441,755 4,027,693 Accumulated depreciation (1,267,690) (1,130,697) Total property and equipment 3,174,065 2,896,996 Security deposits 24,561 24,723 Total Assets 3,767,120 3,752,011 Liabilities and Net Assets Current liabilities: Accounts payable 195,413 129,722 Accrued liabilities 224,020 244,750 Due to grantors 27,840 7,051 Notes payable to banks 36,030 41,825 Deferred revenue 111,205 159,767 Total current liabilities 594,508 583,115 Net assets, as restated: Unrestricted 3,172,612 2,918,896 Temporarily restricted 250,000 Total net assets 3,172,612 3,168,896 Total Liabilities and Net Assets 53,767,120 3,752,011 See accompanying notes to financial statements 2 _ ~ ~ HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Statements of Activities Year ended September 30, 1996 with comparative totals for the year ended September 30, 1995 Temporarily Total A11 Funds Unrestricted Restricted 1996 1995 Public Support and Revenues: Public support: Federal grants 5 2,620,863 2,620,863 2,363,475 State grants 1,164,368 1,164,368 3,958,158 County grants 359,619 359,619 475,852 Foundation 8,090 8,090 In-kind contributions 294,477 294,477 396,048 Revenues: - Program income 566,038 566,038 389,738 Medicaid/Medicare 198,719 198,719 67,187 Other income 78,258 78,258 71,697 Gain (loss) on sale of assets 17,450 17,450 (6,213) Net assets released from restrictions: Satisfied by payments 250,000 (250,000) Total public support _ and revenue 5,557,882 (250;000) 5.307,882 7,715,942 Expenses: Program services 4,619,446 4,619,446 4,603,093 Supporting services 684,720 684,720 733,957 Total expenses 5,304,166 5,304,166 5,337,050 Change in net assets 253,716 (250,000) 3,716 2,378,892 Diet assets, beginning of year 2,918,896 250.000 3,168,896 Net assets, end of year S 3,172,612 3,172,612 See accompanying notes to financial statements. 3 ' p r HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Statement of Functional Expenses Year ended September 30, 1996 with comparative totals for the year ended September 30, 1995 Program Supporting Total Services Services 1996 1995 Salaries and wages 8 1,878,585 410,264 2,288,849 2,423,877 Fringe benefits 516,572 112,780 629,352 647,221 Payroll taxes 204,241 44,591 248,832 252,223 Materials and supplies 578,904 30,469 609,373 449,884 Contractual services 239,283 12,594 251,877 212,163 In-kind expenses 294,477 294,477 396,048 Vehicle expenses 224,177 11,799 235,976 230,073 Travel 35,225 7,690 42,915 63,644 Conference and meetings 13,459 2,938 16,397 21,818 Telephone 32,905 7,184 ~ 40,089 32,780 Equipment rental and maintznance 14,034 1,559 15,593 13,412 Insurance 110,442 5,813 116,255 113,116 Occupancy 99,557 21,735 121,292 90,696 Printing and publications 23,535 5,1.38 28,673 33,346 Postage 6,379 1,393 7,772 6,412 Other 193,228 8,773 202,001 153,756 Total expenses before depreciation 4,465,003 684,72 5,149,723 5,140,469 Depreciation expense 154,443 154,443 196,581 Total expenses $ 4,619,446 684,720 5,304,166 5,337,050 See accompanying notes to financial statements 4 . s HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Statement of Cash Flows Year ended September 30, 1996 Cash flows from operating activities: Decrease in net assets $ 3,716 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 154,443 Recognized gain (17,450) Noncash contribution, vehicle (38,495) Decrease in receivables 297,762 Decrease in prepaids and deposits 4,903 Increase in accounts payable and accrued liabilities 65,750 Decrease in deferred revenue (48,562) Net cash provided by operating activities 422,067 Cash flows from financing activities: Bank loan proceeds 7,025 Loan repayments (12,820) Net cash used by financing activities (5,795) Cash flows from investing activities: Purchases of property and equipment (411,017) Cash proceeds on sale of assets 17,450 Net cash used by investing activities (393,567) Net increase in cash 22,705 Cash at beginning of year 271 Cash at end of year $ 22,976 Supplemental Disclosure of Cash Flow Information There were no noncash financing or investing activities for the year ended September 30, 1996. See accompanying notes to financial statements 5 C t HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Notes to Financial Statements September 30, 1996 (1) Organization and Summary of Significant Accounting Policies Organization The Hawaii County Economic Opportunity Council (HCEOC) was incorporated in the State of Hawaii on May 27, 1965. HCEOC is a Community Action Agency that provides services for 1ow- income, elderly and handicapped individuals in Hawaii County. The operations of HCEOC are funded primarily through grants and contracts from federal, state and county governmental agencies. These grants and contracts comprise approximately 78 percent of HCEOC~s total support and revenue. Basis of Accounting The financial statements have been prepared on the accrual basis of accounting in accordance with the AICPA industry audit guide "Not-For-Profit Organizations. Financial Statement Presentation For the year ended September 30, 1996, HCEOC has adopted Statement of Financial Accounting Standards (SFAS) No. 117, "Financial Statements Not-For-Profit Organizations". Under SFAS No. 117, HCEOC is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, HCEOC is required to present a statement of cash flows. In accordance with this statement, HCEOC has reclassified its financial statements to present the three classes of net assets required. This reclassification had no effect on the change in net assets for 1996. Property and Equipment Land and building consist of property contributed to HCEOC. The property has been recorded at fair value based on the assessed value for real property tax purpose. Leasehold improvements include the cost of the newly constructed human services complex that serves as the HCEOC main facility. Vehicles and equipment are stated at cost at the date of acquisition or at fair market value at the time of donation. Major renewals and betterments are included in the equipment fund while repairs and maintenance which do not improve or extend the lives of assets are charged to expense. 6 < y HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Notes to Financial Statements, Continued Depreciation on all property and equipment is calculated by on the straight-line basis over the estimated useful lives of the respective assets. Deferred Grant Revenue The HCEOC received cash payments in advance of incurred expenses for certain programs funded by governmental sources. These advance payments are reflected as deferred revenue in the accompanying financial statements. Contributions The HCEOC adopted SFAS No. 116, "Accounting for Contributions Received and Contributions Made", for the year ending September 30, 1996. In accordance with SFAS No. 116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. The effect of adopting SFAS No. 116 has resulted in the restatement of the ending net assets as of September 30, 1995. The increase of $250,000 in temporarily restricted net assets represents the commitment of CIP funds, by the State of Hawaii, for completion costs related to the human services complex. Income Taxes HCEOC is classified as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code .and is exempt from Federal and State income taxes. Contributed Services Contributed services do not meet the criteria set forth in SFAS No. 116 for recognition in the financial statements and, therefore have not been recorded. However, a number of volunteers have donated their time to the Head Start program and an estimate of the value of these donated hours are reported to the Department of Human Services to be included in HCEOC's 20~ matching fund requirement for federal Head Start funds. Comparative Financial Information The information shown for 1995 in the accompanying financial statements is included to provide a basis for comparison with 1996 and represents summarized totals only. 7 u HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Notes to Financial Statements, Continued Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. (2) Notes Payable to Banks HCEOC has a line of credit with Bank of Hawaii of $60, 000 for working capital purposes. Advances under this line are available through 90 day notes, with principal and interest _ due at maturity. Interest is computed at 1.5 percent over the bank's base rate. At September 30, 1996, HCEOC had no outstanding advances under this line of credit. HCEOC note payable to the Bank of Hawaii, taken out in 1995 to cover construction overrun costs associated with the main facility, has a principal balance of $26,102 at September 30, 1996. The loan has a maturity date of March 1, 1997 with an interest rate of 11.0 percent. HCEOC also has two notes payable to Central Pacific Bank with balances of $2,928 and $7,000 at September 30, 1996. These notes bear interest rates of 10.5 and 11.0 percent mature on October 2, 1996 and November 18, 1996 respectively. (3) Pension Plan HCEOC has anon-contributory defined contribution pension plan covering most of the full time personnel. Employee eligibility to participate is based on age and length of service requirements. The annual contribution to the plan is based on 7 percent of employee compensation. Pension expense was $145,502 for the year ended September 30, 1996. (4) Lease Obligations HCEOC entered into a 55 year lease commitment with the Department of Land and Natural Resources beginning June 24, 1994 for the property on which the new human services complex has since been constructed- The lease calls for an annual rental fee of $8,348 through June 23, 2014 at which time the fee will be renegotiated. 8 O r HAWAII COUNTY ECONOMIC OPPORTUNITY COUNCIL Notes to Financial Statements, Continued (5) Capital Improvements Proiect The HCEOC contracted to construct a human services complex that houses approximately twenty programs on a portion of a parcel of land situated at Piihonua, South Hilo, Hawaii, designated by Tax Map Key No. 2-3-32:1. This project involved the lease of state land for relocation of HCEOC's facilities to its new site in 1995. In fiscal year 1995 the State of Hawaii released $2.25 million, as a grant- in-aid, of the $2.5 million appropriated by the 1993 legislature for construction of the complex. Construction began in November 1994 and was completed one year later at which time the final $250,000 was released for final costs. (6) Donated Facilities and Services HCEOC used administrative offices and classroom facilities free of charge at several locations. The use of such facilities were recorded on the financial statements based on the estimated annual rental value of such facilities. HCEOC also received transportation services from the County of Hawaii for children enrolled in the Head Start Program. The value of this service was estimated at $6 per child per round trip. A summary of in-kind contributions and expenses for the year ended September 30, 1996 is as follows: Head Start Program: Rental value of donated facilities $ 128,187 Transportation 166,290 Total in-kind contributions and expenses $ 294,477 (7) Cash Designated The $154 which is being held in an escrow account at the Central Pacific Bank represents the residual interest on funds which were appropriated by the State Legislature under Act 174 specifically for low interest loans for self-help home construction on Hawaiian Homes lands on the island of Hawaii in Panaewa and Keaukaha. Section 4 of Act 174 provided that these moneys be disbursed to HCEOC, the organization responsible for overseeing the self-help construction projects. HCEOC is liable to the Department of Hawaiian Home Lands (DHHL) for the appropriated funds until the lessees assume their respective loans from DHHL. 9 O C N L 6 N II1 o m If7 B Q1 tl1 O1 ~ tG C' N Ill 6'' ~ ul N tf1 tf) W r(A 01 rl0 ~ r HN C' ri •6 H N H Q' lL~ ~O ~D u1 Q1 lfl C ~Li U5 H G' H H C' I[1 O Ifl .ti N m H C~ X H N G] N a L H N W 2 ~ E H~ ~ N m m O ~ z tp in N C' m r ii m m ii U 'i Q ct ~ u'1 tD ~D B r ~n N ~ rn m m o~ rn B Him y 2z z OO O OU 00 ~ 3 L ~ a s a C: a Ci. 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H ao oa oa oma ~ r',NNIFER L. DOSSER. W CERTIFIED PUBLIC ACCOUNi'?,YC Art Ac<oun[ing Corporation 688 Kinoole Stt<er, Suic< 201 • Hilo, Hawaii 96720 • Phon< (808) 969-3115 Faz (808) 969.7{63 Independent Auditors' Report on the Internal Control Structure Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Board of Directors Hawaii County Economic Opportunity Council: I have audited the financial statements of Hawaii County Economic Opportunity Council as of and for the year ended September 30, 1996, and have issued my report thereon dated July 30, 1997. I conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Institutions". Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The management of Hawaii County Economic Opportunity Council is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibIlity, estimates and judgments by management are required to assess"the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, ertrors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deterioate. In planning and performing my audit of the financial statements of Hawaii County Economic Opportunity Council for the year ended September 30, 1996, I obtained an understanding of the internal control structure. With respect to the internal control structure, I obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and I assessed risk in order to determine my auditing procedures far- the purpose of expressing my opinion on the financial statements and not to provide an opinion on the internal control structure. Accordingly, I do not express such an opinion. 12 J My consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. I noted no matters involving the internal control structure and its operation that I consider to be material weaknesses as defined above. This report is intended for the information of the board of directors and management of Hawaii County Economic Opportunity Council and the Department of Health and Human Services. However, this report is a matter of public record and its distribution is not limited. July 30, 1997 13 J ~ ENNIFER L. GOSSER7 CERTIFIED PUBLIC ACCOUNTANT An Accounting Corporation 688 Kinoole S«eet. Suit< 201 • Hilo, Hawaii 96720 • Phon< (808) 969-3111 Fax (808) 969.7463 Independent Auditors' Report on Internal Controls - Structure Used in Administering Federal Awards The Board of Directors Hawaii County Economic Opportunity Council: I have audited the financial statements of Hawaii County Economic Opportunity Council as of and for the year ended September 30, 1996, and have issued my report thereon dated July 30, 1997. I have also audited the compliance of Hawaii County Economic Opportunity Council with requirements applicable to major federal award programs and have issued my report thereon dated July 30, 1997. I conducted my audit in accordance with generally accepted auditing standazds, Government Auditing_Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations". Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether Hawaii County Economic Opportunity Council complied with laws and regulations, noncompliance with which would be material to a major federal award program. In planning and performing my audit for the year ended Septecrlber 30, 1996, I considered the internal control structure of Hawaii County Economic Opportunity Council in order to determine my auditing procedures for the purpose of expressing an opinion on the financial statements and on its compliance with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A-133. This report addresses my consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal award programs. I have addressed internal control structure policies and procedures relevant to my audit of the financial statements in a separate report date July 30, 1997. The management of Hawaii County Economic Opportunity Council is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. 14 Because of inherent limitations in any internal control structure, errors, irregularities, oc instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, I have classified the significant internal control structure policies and procedures in the following categories: Support, receivables and receipts Expenses for program and accounts payable Payroll and related liabilities Government financial assistance programs Property and equipment acquisitions and dispositions Debt and related liabilities General requirements , Political activity Civil rights Cash management Federal financial reports Allowable costs/cost principles Drug-free workplace Administrative requirements Specific requirements Types of services allowed or not allowed Eligibility Matching, level of effort or earmarking Reporting For all of the internal control structure categories listed above, I obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and I assessed control risk. During the year ended September 30, 1996, Hawaii County Economic Opportunity Council expended 95 percent of its total federal financial assistance under major federal award programs. I performed tests of controls, as required by OMB Circular A-133, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that I considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used foc matching that are applicable to each of the Council's major federal award programs, which are identified in the accompanying Schedule of Federal Awazds. My 15 a . procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, I do not express such an opinion. My consideration of the internal control policies and procedures used in administering federal awards would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal award program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. I noted no matters involving the internal control structure and its operations that I consider to be material weaknesses as defined above. This report is intended for the information of the board of directors and management of Hawaii County Economic Opportunity Council and the Department of Health and Human Services. However, this report is a matter of public record, and its distribution is not limited. July 30, 1997 16 ~i~INIFER L. GOSSER'~ CERTIFIED PUBLIC ACCOUNT:~;1T An Accounting Corporation fi88 Kinaok S[ma, Suim 201 Hilo, Hawaii 96iZ0 Phone (808) 969.3115 Fax (808) 969.7{63 Independent Auditors' Report on Compliance Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Board of Directors Hawaii County Economic Opportunity Council: I have audited the financial statements of Hawaii County Economic Opportunity Council as of and for the year ended September 30, 1996, and have issued my report thereon dated July 30, 1997. I conducted my audit in accordance with generally accepted auditing standards; Government Auditing_Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations". Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contacts and grants applicable to Hawaii County Economic Opportunity Council is the responsibility of Hawaii County Economic Opportunity Council's management. As part of obtaining reasonable assurance about whether the fmancial statements are free of material misstatement, I performed tests of Hawaii County Economic Opportunity Council's compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of my audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance that are required to be reported under Government Auditine Standazds. I noted no immaterial instances of noncompliance. This report is intended for the information of the board of directors and management of Hawaii County Economic Opportunity Council and the Department of Health and Human Services. However, this report is a matte of public record and its distribution is not limited. -ram-- July 30, 1997 17 ~NNIFER L. DOSSER V CERTIFIED r VBLIC ACCOUNT?.NT An Accounting Corporation 699 Kinoole Scrcet, Suite ZO1 • Hila, Hawaii 96720 • Phonc (808) 969J115 Fax (808) 969-7{63 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Maior Federal Financial Award Programs The Board of Directors Hawau County Economic Opportunity Council: I have audited the fmancial statements of Hawau County Economic Opportunity Council as of and for the year ended September 30, 1996, and have issued my report thereon dated July 30, 1997. I have also audited Hawaii County Economic Opportunity Council's compliance with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, or earmarking; reporting; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal award programs, which are identified in the accompanying Schedule of Federal Awards, for the year ended September 30, 1996. The management of Hawaii County Economic Opportunity Council is responsible for the Council's compliance with those requirements. My responsibility is to express an opinion on compliance with those requirements based on my audit. I conducted my audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States and the provisions of Office of Management and Budget (OMB) Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations". Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to in the second paragraph occurred. An audit includes examining, on a test basis, evidence about the Council's compliance with those requirements. I believe that my audit provides a reasonable basis for my opinion. The results of my audit procedures did not disclose any immaterial instances of noncompliance with the requirements referred to in the second paragraph. In my opinion, Hawaii County Economic Opportunity Council complied, in all material respects, with the specific requirements referred to in the second paragraph that are applicable to each of its major federal programs for the year ended September 30, 1996. This report is intended for the information of the board of directors and management of Hawaii County Economic Opportunity CouncIl and the Department of Health and Human Services. However, this report is a matter of public record and its distribution is not limited. -mss - ' July 30, 1997 18 ,NNIFER L. DOSSER. ' ' • CERTIFIED PUBLIC ACCOUNTANT An Accounting Corporation 688 Kinoole Streer, Suitc Z01 • Hilo, Hawaii 96iZ0 • Phone (808) 969-3111 Fax (808) 969.7463 Independent Auditors' Report on Compliance with the General Requirements Applicable to Federal Award Pm ,grams The Board of Directors Hawaii County Economic Opportunity Council: I have audited the financial statements of Hawaii County Economic Opportunity Council as of and for the year ended September 30, 1996, and have issued my report thereon dated July 30, 1997. I have applied procedures to test Hawaii County Economic Opportunity Council's compliance with the following requirements applicable its federal awards programs, which are identified in the accompanying Schedule of Federal Awards, for the year ended September 30, 1996: political activity, civil rights, cash management, federal fmancial reports, allowable costs/cost principles, drug-free workplace, and administrative requirements. My procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of Educational Institutions and Other Nonprofit Organizations". My procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion of Hawaia~County Economic Opportunity Council's compliance with the requirements listed in the preceding paragraph. Accordingly, I do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to my attention that caused me to believe that Hawai County Economic Opportunity Council had not complied in all material respects, with those requirements. Also, the results of my procedures did not disclose any immaterial instances of noncompliance with those requirements. This report is intended for the information of the board of directors and management of Hawai County Economic Opportunity Council and the Department of Health and Human Services. However, this report is a matter of public record and its distribution is not limited. July 30, 1997 19 .:NNIFER L. DOSSER: CERTIFIED PUBLIC ACCOUNT:4NT An Accounting Corporation 688 Kinoolt Sttttt, Sui¢ 201 • Hilo, Hawaii 96720 • Phont (808) 969.3115 Fax (808) 969.7463 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Awards Program Transactions The Board of Directors Hawaii County Economic Opportunity Council: I have audited the financial statements of Hawaii County Economic Opportunity Council as of and for the yeaz ended September 30, 1996, and have issued my report thereon date July 30, 1997. In connection with my audit of the financial statements of Hawaii County Economic Opportunity Council, and with my consideration of the Council's internal control structure used to adnunister federal awards programs, as required by Office of Management and Budget (OMB) Circular A- 133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations", I selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended September 30, 1996. As required by OMB Circular A-133, I have performed auditigg procedures to test compliance with the requirements governing types of services allowed or unallowed and eligibility that are applicable to those transactions. My procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Organization's compliance with these requirements. Accordingly, I do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to my attention that caused me to believe that Hawaii County Economic Opportunity Council had not complied in all material respects, with those requirements. Also, the results of my procedures did not disclose any immaterial instances of noncompliance with the requirements. This report is intended for the information of the board of directors and management of Hawaii County Economic Opportunity Council and the Department of Health and Human Services. However, this report is a matter of public record and its distribution is not timited. July 30, 1997 20