Comm No 0035.36 - Testimony - CA-18 - PONC Maintenance fund

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County of Hawaii Charter Commission 25 Aupuni Street Room 1401 Hilo, HI 96720 June 7, 2019 9:30 a.m. Re; CA 18 -draft 2 Aloha Charter Commissioners, LESLIE COLE -BROOKS LLLC - Attorney at Law - I am writing to express my partial support for Communication No. 35 CA -18 Draft 2 with comments on a much-needed amendment. As it currently stands, CA -18 draft 2 would transfer the administration of the PONC maintenance fund to the Department of Finance, allow additional uses of the fund, and permanently prevent any nonprofit from using the fund again should it fail to meet its responsibilities on an earlier project. 1 support the transfer of the fund to the Department of Finance and the addition of other fund uses; however, I strongly suggest that the Commission restore the language that would allow a 501(c)3 nonprofit to use the funds for salary support so long as the nonprofit details the fund usage on any staff salaries in the comprehensive business plan submitted with the application. By allowing 501(c)(3) organizations to use granted maintenance funds to pay for salaries, 501(c)(3) organizations will more readily be able to apply for the maintenance funds in the first place. Many 501(c)(3) organizations run on a shoe -string budget and rely heavily upon volunteer assistance. When it comes to projects that require significant time and/or resources, many organizations cannot risk applying for maintenance funds with the concern that they might not have the resources to properly complete the job. This provision would give a much- needed boost to dedicated and locally -connected organizations and therefore increase the efficiency and productivity of the fund. In addition, the fund is protected from any potential misuse in two important ways. First, the nonprofit must detail in advance any use of the funds and staff that would work directly on the maintenance project. The Department of Finance would first review these plans before approving the project, thus giving the county the opportunity for transparent oversight. Next, upon completion of the project, the nonprofit must account for all use of funds. If expenditures do not match the original business plan, the Department has the option of barring the nonprofit from permanently applying for future funds. These two measures will ensure fiscal responsibility while giving the Department and local stewardship organizations the flexibility and resources that they need. I therefore strongly recommend that the following language is reinserted into CA -18 Draft 2: {6) Officers, board members, or employees of the 501(c)3 nonprofit organization or the organization that operates under the umbrella of the 501(c) 3 nonprofit organization may receive a salary, payment for labor, or receive reimbursement for the stewardship work on the project, provide any funds to be used for these ENERGY - ENVIRONMENT - SUSTAINABILITY Post c)llicc Box 77P5padloa. HI 96780 • A054'37.7957 • 1cbc'cc,lcbrooks-Iaw.com Comm. No. 35.36