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CHRISTOPHER J. YUEN HILO LAGOON CENTRE,SUITE 108 101 AUPUNI STREET HILO,HAWAII 96720 ATTORNEY AT, LAW TEL.(808)935-4429 April 9, 1990 Hawaii County Charter Commission 101 Aupuni St. , Suite 235 Hilo, Hawaii 96720 Re: Changes to Art. X (Financial Procedures) Dear Charter Commission Members: I have enclosed as Exhibit "1" a draft of the changes to Art. X (Financial Procedures) as voted on by the Commission at the meeting of March 28, 1990. Language which is to be deleted is enclosed in brackets; language which is to be inserted is underlined. Basically, the changes provide that the mayor shall submit the operating and capital budgets and operating and capital programs to the council no later than March 1 of each year, rather than the present May 1 deadline. Thereafter, the mayor must submit amended operating and capital budgets, and amended operating and capital programs, to the council not later than ten working days after the close of the legislative session, May or 5, whichever comes first. The council then has the public hearing and may amend the budget. If it does not pass a budget by June 30th, the mayor's amended budget becomes the budget. Notice of the hearing must be published in at least two newspapers of general circulation. §10-9 has been amended to provide that the mayor must notify. the council of fund transfers within an agency, but otherwise gives the mayor the discretion to transfer the funds. §10-14 has been amended to require formal bids for contracts in excess of $10, 000, rather than $4, 000. However, when I reviewed the state law on this matter (H.R.S. §103-22) formal bidding is required for contracts in excess of $8, 000. I apologize for not bringing this to the commission's attention earlier. The commission ought to consider revising the amount to $8, 000 to conform to state law. Yours truly, EXHIBIT B (14 pages) Christopher J. Y 865