REP PWPC 012 02/06/1997 1996-1998

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_ REPORT OF THE COMMITTEE ON PUBLIC WORKS AND PARKS DATE: February 6, 1997 RE: COMM. NO. 98 PLACE: Councilroom TIME: 9:07 a.m. Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Public Works and Parks, to which was referred Communication No. 98, reports as follows: Communication No. 98 is a letter from Mayor Stephen K. Yamashiro dated January 14, 1997, which appoints Donna Fay K. Kiyosaki to the position of Chief Engineer for the County of Hawaii. Pursuant to Article VI, Chapter 2, Section 6-2.2, of the County of Hawaii's County Charter 1991, the Chief Engineer shall be appointed by the Mayor and confirmed by the Council of the County of Hawaii. Testimony in support of the appointment was offered by Mr. David Blyth, on behalf of Mr. Hugh Willocks, President of the Hawaii Island Contractors' Association. During discussion, Council Member Aaron Chung inquired whether the Department of Public Works issuance of contracts to a company owned by Mrs. Kiyosaki's husband, during her tenure as Chief Engineer, raised conflict of interest concerns. The Council Member noted that his concerns relate not only to the issuance of contracts but also to the monitoring of contracts granted to Mr. Kiyosaki's company. The Council Member offered Mrs. Kiyosaki an opportunity to address Your Committee regarding these issues. Mrs. Kiyosaki explained that any contract involving Mr. Kiyosaki's company has been issued on a competitive price bid basis, which assured fairness in the selection process. With respect to monitoring, she explained that she removes herself from direct involvement in contract matters concerning Mr. Kiyosaki's company, assigning staff that responsibility. Moreover, Mrs. Kiyosaki noted that because of their relationship, contracts involving her husband's company are subjected to closer scrutiny than those involving other companies. Mrs. Kiyosaki pledged to continue to work towards the best interests of the County.