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REPORT OF THE <br />COMMITTEE ON FINANCE <br />DATE: July 9, 2013 Re: Comm. No. 313/13ill No. 90 <br />PLACE: Council Chambers <br />Hilo, Hawaii <br />TIME: 3:16 p.m. <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Your Committee on Finance, to which was referred Bill No. 90, reports as follows: <br />Bill No. 90, transmitted by Council Member Dennis "Fresh" Onishi, via Communication No. 313 dated <br />June 10, 2013, amends Chapter 2, Article 25, Section 2-139 of the Hawaii County Code 1983 (2005 <br />Edition, as amended), relating to awarding of contingency funds to nonprofit organizations. <br />The bill would repeal provisions allowing the awarding of grants to nonprofit agencies from the Council <br />District Contingency Relief accounts. <br />Several Council Members spoke in opposition to Bill No. 90. <br />Council Member Ford felt the bill would restrict helping nonprofits that serve the underserved in <br />District 6. She noted that Bill No. 90 will micro -manage the contingency funds and not allow her to use <br />the funds as she would like to. <br />Council Member Eoff is concerned with the guidelines for the appropriate use of the contingency funds. <br />She feels passing Bill No. 90 would limit some good funding efforts that would benefit the public. <br />Council Member Kern spoke in support Bill No. 90. He noted that his perspective of how contingency <br />funds are to be used is for "tangible projects." Mr. Onishi clarified that contingency funds could be used <br />for County organized events; however, Bill No. 90 would prohibit any other events or projects that are not <br />county organized. Mr. Kern feels this issue should be postponed to be further delved into. <br />Council Member Poindexter opposes Bill No. 90. She expressed her concern that this bill would not <br />provide the opportunity or flexibility to help the communities in District 1. <br />It was suggested by Council Member Yoshimoto that a Council Rule amendment be made to restrict all <br />organizations who received funding awards during the annual grant process from applying for funds twice <br />during a fiscal year. <br />Corporation Counsel Lincoln Ashida appeared before Your Committee for questions. He explained that <br />the contingency funds are to be used for County related projects; however, the only restriction is that the <br />funds are to be used for public purpose per the County Charter. He stated that historically, the Council <br />allocates contingency money to a department to facilitate a proposed project or appropriates an <br />unanticipated expense that is not budgeted for during the fiscal year. Furthermore, Mr. Ashida noted that <br />public money may not be used to improve private roads. <br />FC Rept. No.: 75 <br />