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HomeMy WebLinkAboutCOM 0512.001 2000-2002 atv ®z y~ AARON S.Y. C.HUNG `p;:• , ~ '.'••0~q, Phone: (808) 961-8396 Councitmember ~a~'f~~ Fax: (808) 961-8912 P N~ 9es ~y? Of •NB'•~ COUNTY COUNCIL County of Hawaii Hawaii County Building ~M= ~ ~ 25 Aupuni Street di~~____~___________ ~y~~, Hilo, Hawaii 96720 _r~ e oµ:<.~, February 7, 2002 TO: Council Members FROM: Aaron S.Y. Chung, Chair~~-~,-, Committee on Finance RE: Handling of Gifts or Donations In compliance with Sections 2-161 and 2-162, Hawaii County Code, you will begin to see letters from the finance director requesting council approval of gifts or donations, which do not fall within the capitalization procedures of the department of finance. That is, if equipment has a useful life of less than one year and has an individual value less than $1,000, the council may adopt the donation by way of a letter. Further, a cash donation of $5,000 or an elephant valued at $10,000 would be transmitted by letter. On the other hand, if the donation is a condition of a permit or a required community benefit assessment, the county council must approve these gifts or donations regardless of its value. I will remind the planning director of this requirement. The attached opinion from the Corporation Counsel is meant to provide further clarification on this matter. Should you have any questions, please feel free to contact Connie at Ext. 8388. Att. Corm. Noo ~ • ~'fl~ No. .~f, 't~~, ~t, ~t~. ~4r ~ N4~v o~. ; ~-Iarf°g~ Kim M I,ita~~ln S.~: Ashitla . r Mayor Director --fG----C ration Counsel De Dir ' ` ald Talcase ~~r f ~~P Planner oB ~ ~ t or/roraeion Counsel Accounting r".~:; Personnel OFFICE OL' THE COIFORATION COUNSEL. ~ t~-~~'"' 101 Aupuni Street, Steele 325 • Hllo, Haw+av 96720-4262 • (808) 961-8251 • FAX (808) 961-8622 ~ !¢t/'~ ~ , ~ ~j ~ ~ ~ CONFIDENTIAL: ATTORNEY~CLIENT PRIVILEGE; ATTORNEY WORD PRODUCT MLMOItAND UM " e~ r' ~ TO: Pamela Mizuno, Deputy Director ~~i Department of Parks and Recreation ~ FROM: Craig T. Masuda, Deputy Corporation Counsel~y ~~`~'"``"`2~ r~ " = DATE: January 30, 2002 r,' RE: Donations; Procedures For Acceptance; Corp.Counsel Entry No. 1535 Acceptance of donations to-the County is authorised by Article 13, Section 13-12 of the Hawaii County Charter. Section 13-12 Hawaii County Charter, states: `The Council, on behalf of the County, may accept gifts of donations of money, securities or other personal property or of real estate or any interest in real estate The procedure for accepting donations is pursuant to Article 30, Section 2-161 and 2-162, Hawaii County Code. This section sets out the two ways for acceptance of donations as being by resolution or by letter to the Council for its approval. Whether Council approval is achieved via a resolution or a letter, is dependant upon atwo-step analysis: (1) the nature of the donation; and (2) the motivation behind the donation. MEMORANDUM Pamela Mizuno, Deputy Director January 30, 2002 Page 2 Nature of Donation The department must first determine if the donation is subject to capitalization procedures. Pursuant to Section 2-162(a) I-iawai`i County Code, gifts or donations that fall within Chapter II, Section 2.d Capitalization Procedures of the Department of Finance, must pass the Council via resolution to be accepted. Conversely, if the gift or donation does not fall within the capitalization procedures pursuant to Section 2-162(c), a letter shall be submitted to the Council for its approval. A donation is within the capitalization procedure if its value exceeds $1,000. Please note that this $1,000 amount was raised from $400 on Apri15, 2000 in Memorandum No. 00-5 by then-Director of Finance Harry Takahashi. Therefore, if the donation is less than $1,000 in value and is not subject to subsection (b) of Section 2-162 Hawaii County Code, then a letter for approval shall be submitted to the Council. Regardless of the value, the department must determine if the gift or donation was made under circumstances of Section 2-162(b) I-Iawai`i County Code. Motivation of Donation Pursuant to Section 2-162(b) Hawaii County Code, if the gift or donation is made as a result of a community benefit assessment, or by any form of exaction or condition to a permit or approval issued by the County or any of its agencies, the gift or donation may be accepted only after approval via resolution by the Council. For example, if a donation of a fire engine to the County was made as the condition of a subdivision permit being approved, then a resolution would be necessary for the County to accept the fire engine. Likewise, if a $20 shovel was being donated as the condition of a subdivision permit being approved, then a resolution would be necessary for the County to accept this shovel, despite its low value. Conversely, if the same shovel was given freely without condition precedent because of its value of less than $1,000, a letter and not a resolution would be the proper vehicle to bring the donation approval to the Council. mkk s:depts.lparkslmisc-ctm-ldonationproceduresl1-30-02CTMmkk