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Home My WebLink AboutORD 1997-103 1996-1998 /' .- . .' COUNTY OF HAWAII STATE OF HAWAII BILL NO. 100 ORDINANCE NO. 97 1.03 AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 25 OF THE HAWAII COUNTY CODE 1983 (1995 EDITION), RELATING TO APPROPRIATION OF FUNDS TO NONPROFIT ORGANIZATIONS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose and Intent. The Council finds it necessary to clarify the process of awarding grants and purchase of services to nonprofit organizations. The purpose of this ordinance is to allow the continued execution of contracts for purchase of services from nonprofit organizations and to assure that the awarding of grants be without conditions except as provided by law. SECTION 2. Chapter 2, Article 25, Section 2-136, Hawaii County Code 1983 (1995 Edition), is amended to read as follows: "Section 2-136. Definitions. (a) As used in this article, unless the context otherwise requires: (1) "Conflict of interest" means a substantial probability that action taken by an individual will result in measurable direct benefits accruing to the individual as opposed to benefits accruing in general to an industry. (2) "Director" means the director of finance of the County. (3) "Grant" means an appropriation of public funds to a nonprofit organization for a [specified] public purpose. (4) "Nepotism" means appointing persons to positions on the basis of their blood or marital relationship to the appointing authority, rather than on merit or ability. (5) "Nonprofit organization" means an organization organized for other than profit-making purposes and which has a current 501(c)3 tax-exemption from the Internal Revenue Code.; (6) "Perquisite" means a privilege furnished or a service rendered by an organization to an employee, officer, director, or member of that organization to reduce the individual's personal expenses. (7) "Purchase of service" means the exchange by an agency of goods and services to be delivered by a nonprofit organization to the general public for cash payments substantially equal in value to such goods and services. " . . SECTION 3. Chapter 2, Article 25, Section 2-139, Hawaii County Code 1983 (1995 Edition), is amended to read as follows: "Section 2-139. Procedure for awarding grants. (a) All grants made to a nonprofit organization by the county shall be made in accordance with the following procedure: (1) Annually, before November 30, the director shall, for the purpose of soliciting applications, establish a sum of at least nine hundred thousand dollars ($900,000) to be available in the ensuing fiscal year for funding requests by nonprofit organizations. In any event, the maximum amount to be made available for grants shall not exceed one percent (1 %) of real property tax income. The director shall publish a notice soliciting applications in two (2) newspapers of general circulation within the County of Hawaii by November 30. (2) All applications for grants shall be submitted to the director on or before January 31 preceding the county's fiscal year, which begins on July 1. Applications shall be prepared on forms provided by the director. Applications not in conformance with the requirements of the County Code may be rejected. (3) The director shall submit to the council all qualifying applications for its review and appropriation of funds. Site visitations of nonprofit organizations submitting complete applications shall be conducted after January 31 but prior to final action on the operating budget by the council. These site visitations shall be conducted in a manner that allows flexible council member participation and designated staff support. (4) Upon favorable action by the council to appropriate funds for the grant, the director shall [prepare a contract with the nonprofit organization for the purpose of the grant award which shall meet all legal requirements of the county and shall include program, fiscal and audit reporting requirements sufficient to allow the director, the legislative auditor or council to effectively monitor and evaluate the use of the grant. Agencies shall be notified by the director] notify ai:encies of their funding or lack thereof by July 31 and award the i:rant in cOIIlpliance with this article." SECTION 4. Chapter 2, Article 25, Section 2-142, Hawaii County Code 1983 (1995 Edition), is amended to read as follows: "Section 2-142. Records and reporting. (a) The nonprofit organization shall follow generally accepted accounting procedures and practices and shall maintain books, records, documents, and other evidence which sufficiently and properly account for the expenditure of County funds. The books, records and documents shall be subject at all . . reasonable times to inspection, reviews, or audits by the County expending agency, the director, and the legislative auditor, or by their representatives. (b) The county expending agency, director of finance, or County council may request periodic written reports on the use of County funds. (c) [In order that the council and the legislative auditor may monitor compliance with the executed contract,] In the case of purchase of service agreements. the nonprofit organization shall submit a written report to the legislative auditor within sixty (60) days after June 30 of the contractual year and an interim report no later than January 31 of the contract period. The report shall include, but not be limited to, a detailed description of how the county funds were used, public benefits derived from their use and a breakdown of other funding sources and their expenditures. !dl In the case of grants. the nonprofit organization shall submit a final written report to the legislative auditor within sixty (60) days after June 30 of the fiscal year. The report shall include an e~lanation of the public benefits derived from the awarding of the grant and a listing of other funding sources and amounts obtained during the award period." SECTION 5. In the event that any portion of this ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. SECTION 6. Material to be deleted is bracketed and material to be added as underscored. SECTION 7. This ordinance shall take effect upon its approval. INTRODUCED BY: '~L;f"1::RtNCE: Comllb Hilo, Hawaii Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: 347 COUNCI - l' June 18, 1997 June 18, 1997 July 2, 1997 July 14, 1997 DeNrt APPROVED AS TO FORM AND LEGALITY ~ ;/.~. CORPORATION C~ DATED: 7(fltf 1 . OFFICE OF THE COUNTY CLERK ~ Dr:: r '.- '\ ';..'- County of Hawaii L~ I i:..._ '-.-' -", ) Hilo ,Hawaii '97 JUL 15 .., !-~rl 8 Y6 Introduced By: Date Introduced: First Reading: Published: John Ray June 18, 1997 June 18, 1997 June 25, 1997 REMARKS: Second Reading: To Mayor: Returned: Effective: Published: July 2, 1997 Julv 7, 1997 Julv 15, 1997 July 14, 1997 July 22. 1997 REMARKS: COI./'~-,,/ '''r--' , , '..~ -~;-,~\. v~l{~f~L'i.rv6WjAII AYES NOES ABS EX Arakaki X Chung X Leithead- Todd X Ray v Reynolds y Santangelo X Smith X Tyler v Yagong y 9 0 0 0 ROLL CALL VOTE AYES NOES ABS EX Arakaki X Chung X Leithead-Todd X Ray y Reynolds X Santangelo X Smith X Tyler X Yagong y 8 0 1 n .ng BILL was adopted by 'the County Council and published as .. .. of DEPUTY CORP RA nON COUNSEL COUNTY OF HAWAII Date t/7((('7 I~ day 19 '1 7 ~~ COUNTY CLERK Bill No.: 100 C-347 97 1.03 Reference: Ord. No.: