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
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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.
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Mayor Director --fG----C ration Counsel
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OFFICE OL' THE COIFORATION COUNSEL. ~ t~-~~'"'
101 Aupuni Street, Steele 325 • Hllo, Haw+av 96720-4262 • (808) 961-8251 • FAX (808) 961-8622 ~ !¢t/'~ ~ , ~
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CONFIDENTIAL: ATTORNEY~CLIENT
PRIVILEGE; ATTORNEY WORD PRODUCT
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TO: Pamela Mizuno, Deputy Director ~~i
Department of Parks and Recreation ~
FROM: Craig T. Masuda, Deputy Corporation Counsel~y ~~`~'"``"`2~ r~
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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.
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