HomeMy WebLinkAboutCOM 0918.007 2022-2024Dr. Holeka Goro Inaba
Council Member, District 8, N. Kona
HAWAI`I COUNTY COUNCIL
County of Hawai'i
Iflest Hawaii Civic Center, Bldg. A
74-5044 Ane Keohokalole My.
Kailua-Kona, Hmvai'i 96740
Office: (808) 323-4.280
Email: holeka. inaba@hmvaiicounly.gov
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DATE: July 23, 2024
TO: Heather L. Kimball, Chairperson
and Members of the I-Iawai`i County Council
FROM: Dr. Holeka Goro Inaba, Council Member
Council District 8
SUBJECT: Proposed Amendments to Bill No. 176, Draft 2; an Ordinance Amending
Chapter 2, Article 25 of the Hawaii County Code 1983 (2016 Edition, as
Amended), Relating to Appropriation of Funds to Nonprofit Organizations.
Please see below proposed amendments to Bill No. 176, Draft 2. The proposed amendments are
shown in Ramseyer format with respect to the contents of Bill No. 176, Draft 2. Material to be
deleted is bracketed and stricken, and material to be inserted is underscored.
1. SECTION 1 of Bill No. 176, Draft 2, which amends chapter 2, article 25, section 2-136, of
the Hawaii County Code 1983 (2016 Edition, as amended), is amended by amending the
definition of "grant" to read as follows:
""Grant" means an appropriation of [ptihlie] County finds [to a net profit ^.•,.. niz ti
for ^ public purpose.] pursuant to this article."
2. SECTION 2 of Bill No. 176, Draft 2, which amends chapter 2, article 25, section 2-137, of
the Hawaii County Code 1983 (2016 Edition, as amended), is amended to read as follows:
"Section 2-1.37. Eligible organizations.
All grant payments made by the County to nonprofit organizations are to be made
in accordance with these standards so that the Rnded nonprofit programs yield direct
benefits to the public and accomplish public purposes within the County. All nonprofit
organizations seeking awards of County grants shall meet the following eligibility
requirements:
(1) The nonprofit organization has a governing board whose members serve
without compensation and [have no material conflict of interest.] adhere to a
written conflict of interest policy which complies with requirements of the
Hawaii County Is an Equal Opportunity Provider and Employer
com'". o
Ref. To:
Ref. Dote JUL 2 4
Internal Revenue Service State law, and rules and re ulations of the finance
director.
(2) The nonprofit organization has bylaws or policies which describe the manner
in which business is conducted, including management, audit, and fiscal
policies and procedures, written policies on prohibiting nepotism, and policies
on management of potential conflict of interest.
(3) The nonprofit organization must be licensed and accredited in accordance
with applicable requirements of Federal, State, and County laws.
(4) The nonprofit organization shall disclose any of its board members, officers,
directors, or administrators who may have a familial or business relationship
with any of the following:
(A) A member or members of the council;
(B) The mayor;
(C) The managing director;
(D) The director;
(E) The corporation counsel, the assistant corporation counsel, or a deputy
corporation counsel; or
(F) Any County officer or employee with oversight of the grant[.], if known.
[Should a disclosure be made, the County shall take steps to prevent th
3. SECTION 3 of Bill No. 176, Draft 2, which amends chapter 2, article 25, section 2-13 $, of
the Hawaii County Code 1983 (2016 Edition, as amended), is amended by amending
subsection (b) to read as follows:
"(b) Nonprofit organizations to whom any grant is awarded shall agree to comply with
the following conditions before receiving the grant:
(1) Employ and appoint persons on the basis of merit and ability;
(2) Comply with applicable Federal and State laws prohibiting discrimination
against any person on the basis of race, color, national origin, religion, creed,
sex, age, [er] disability[;], or other identified class;
(3) Agree not to use any public funds for purposes of personal entertainment or
perquisites;
(4) Comply with such other requirements as the director may prescribe to ensure
adherence by the nonprofit organization with Federal, State, and County laws,
and established standards for fiscal and program management;
(5) Allow the director, the committees of the council and their staffs, and the
County auditor access to facilities, personnel, records, reports, fries, and other
related documents in order that the program, management, and fiscal practices
of the nonprofit organization may be monitored and evaluated to assure the
proper and effective expenditure of public funds; and
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(6) All funds awarded shall be restricted for the purposes stated in the
application[, exee ..t for a .,,.,.,:.,,.,.,,] and approved by thecou_neil. No more
than ten percent of a grant may be awarded for administrative and overhead
costs."
4. SECTION 4 of Bill No. 176, Draft 2, which amends chapter 2, article 25, section 2-139, of
the Hawaii County Code 1983 (2016 Edition, as amended), is amended to read as follows:
"Section 2-139. Procedure for awarding grants.
(a) All [grant awards made to a nenpFefit organization by the Geunty] grants awarded
pursuant to this article shall be made in accordance with one of the following
procedures:
(1) Waiwai grants-in-aid:
(A) Annually, before November 30, the finance director shall, for the
purpose of soliciting applications, establish a sum of at least $2,500,000
for the ensuing fiscal year for Waiwai grant-in-aid awards. The finance
director shall also publish a notice soliciting applications in two
newspapers of general circulation within the County by November 30.
(B) Applications for Waiwai grants-in-aid shall be made on forms prescribed
by the finance director and shall be submitted to the finance director on
or before the last day of January following publication of the notice as
provided in subparagraph (A). No application shall be considered for
any Waiwai grant-in-aid award unless the application:
(i) Conforms with the requirements of this Code;
(ii) Includes detailed information on specific, measurable outcomes
and public benefits to be derived from the expenditure of County
firnds; and
(iii) Complies with all other requirements and instructions for
submission as the finance director may direct.
(C) The finance director shall submit all applications which meet the
eligibility requirements established in section 2-137 to the council for its
review and appropriation of funds.
(D) The council shall review all [qea4Pfi-ffg] eligible applications[;] and
assess whether the conditions „for a grant have been met, and upon
favorable action by the council to award grants and appropriate fiends for
Waiwai grants-in-aid to the nonprofit organizations, the finance
department shall prepare a written contract with the nonprofit
organization which shall meet all legal requirements of the Federal,
State, and County governments, and shall include program, fiscal, and
audit reporting requirements sufficient to allow the finance director, the
County auditor, or council to effectively monitor and evaluate the use of
the grant finds.
The finance director shall notify each nonprofit organization by August
31 if the council has approved or denied its application for a Waiwai
grant-in-aid.
3
(2) Grants from council district contingency relief funds:
(A) Requests for district contingency relief grants shall be made directly to
council members on a form prescribed by the council. The council shall
determine whether requests meet the eligibility and award conditions of
this article.
(B) Prior to introducing a resolution for a contingency relief grant, a council
member shall identify a department to administer the contingency grant.
(C) Appropriations from the district contingency relief account shall be
approved by resolution and transferred to the identified department for
administration, The resolution shall identify the nonprofit organization
and the specific program, project, event, activity, service, equipment,
materials, or supplies for which the grant shall be used,
(D) Any equipment purchased by a nonprofit organization shall be domiciled
with that nonprofit organization in the County. The nonprofit
organization shall assume any and all responsibility and liability for such
equipment.
(E) A contract shall be prepared by the identified department and executed
with the nonprofit organization which shall[;]_
(i) Comply with all legal requirements of the County; and
(ii) Include program, fiscal, and audit reporting requirements sufficient
to allow the County auditor or council to effectively monitor and
evaluate the use of the grant firnds.
(3) Other grants:
(A) Grant awards in excess of $25,000 to nonprofit organizations shall
specifically identify the organization receiving the grant funds and the
purpose for which the grant fiends shall be used in a resolution.
(B) Grant awards in excess of $25,000 to organizations that do not qualify as
nonprofit organizations shall specifically identify the purpose for which
the funds shall be used in a resolution and be subject to competition in
compliance with chapter 103D of the Hawaii Revised Statutes.
(C) Grant awards of $25,000 or less may be authorized by the finance
director for projects or programs that accomplish public purposes upon
written request of a department. Such grant awards shall not be limited
to nonprofit organizations but shall specifically identify the organization
and program, project or event for which the grant funds shall be used
and comply with the rules and regulations of the finance director [of
finance].
(b) In the event that a grantee organization is unable or unwilling to provide the public
service(s) or purchase(s) for which grant funds were appropriated, the following
procedures shall apply:
(1) For grant awards authorized as prescribed in 2-139(a)(1), the mayor may
direct the finance director to solicit applications from eligible nonprofit
organizations to fulfill the specific public purpose(s) for which the funds were
originally appropriated for the remainder of the fiscal year. The director shall
forward recommended application(s) and appropriation measure(s) to the
council for its [deei-s-i .] approval. Funds appropriated to a successor
N
nonprofit organization shall not exceed the balance of unexpended County
funds awarded to the original nonprofit organization.
(2) For grant awards from district contingency relief fiends, the council may direct
the return of the full appropriation or the balance of unexpended firnds.
(3) For other grant awards authorized as prescribed in 2-139(a)(3), the director
may direct the return of the full grant amount or balance of the unexpended
funds."
5. SECTION 5 of Bill No. 176, Draft 2, which amends chapter 2, article 25, section 2-142.1, of
the Hawaii County Code 1983 (2016 Edition, as amended), is amended to read as follows:
"Section 2-142.1. Rules.
(a) The finance director shall adopt rules as may be necessary to [meet th
+;� clarify and/or implement this article.
(b) All application forms shall include a right to audit clause.
(c) All application forms shall include, "As part of this application, you acknowledge
that any funds awarded will be restricted for the purposes stated in the application
[exeep+ fbi! a maxi.,,unil and that no more than ten percent of the grant may be used
for administrative and overhead costs.""
Due to the limited scope of these proposed amendments, a copy of the new draft of this bill that
would result if the amendments were adopted is not attached.
Thank you.
HGI:wpb