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Home My WebLink AboutORD 1982-774 1980-1984BILL, NO. 832 COUNTY OF HAWAII - STATE OF HAWAII ORDINANCE 1~0. AN ORDINANCE AMENDING CHAPTER 3 OF THE HAWAII COUNTY CODE, ESTABLISHING STANDARDS FOR THE APPROPRIATION OF FUNDS TO PRIVATE ORGANIZATIONS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Chapter 3 of the Hawaii County Code is hereby amended by adding thereto a new article, pertaining to standards for the appropriation of funds to non-profit organizations, to be designated and to read as follows: ARTICLE 13 STANDARDS FOR THE APPROPRIATION OF FUND5 TO NON-PROFIT ORGANIZATIONS SEC. 1. Purpose. The purpose of this ordinance is to establish standards for the appropriation of funds to non-profit organizations providing programs and services which the County of Hawaii has determined to be in the public's interest. SEC. 2. Definitions. 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 non-profit 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) 'Non-profit organization' means an organization organized for other than profit-making purposes. (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 non-profit organization to the general public for cash payments substantially equal in value to such goods and services. SEC. 3. Eligible Organizations. All grants and purchase of service payments made by the county to non-profit organizations are to be made in accordance with these standards so that the funded non-profit programs yield direct benefits to the public and accomplish public purposes. No grant or purchase of services contract to a non-profit organization shall be made unless the non-profit organization meets the following criteria: (a) The non-profit organization is chartered or otherwise authorized to do business in the state for charitable purposes and exempted from the federal income tax by the Internal Revenue Service. -2- (b) The purposes for which the non-profit organization is organized provide benefits to the people of the county. (c) The service or activity to be provided by the non-profit organization, and funded by the county, shall address educational, economic, scientific, or agricultural concerns, culture and the arts, the needs of the poor, youth, the aged, those with physical or emotional disabilities, victims of crimes, or victims of health or social crises as may be determined by the county. (d) The non-profit organization has a governing board whose members serve without compensation and have no conflict of interest between their regular occupations and the services provided by the non-profit organization. (e) The non-profit organization has by-laws or policies which describe the manner in which business is conducted, including management, audit, and fiscal policies and procedures, policies on nepotism, and policies on management of potential conflict of interest. (f) The non-profit organization has at least one year's experience with the service or activity for which the appropriation is sought or can otherwise demonstrate to the satisfaction of the county -3- sufficient expertise to successfully carry out the service or activity. (g) The non-profit organization must be licensed and accredited in accordance with applicable requirements of federal, state and county laws. SEC. 4. Conditions for Grants or Purchase of Service Agreement. Non-profit organizations to whom a grant has been made or a purchase of service agreement awarded shall agree to comply with the following conditions before receiving the grant or purchase of service agreement: (a) Employ or have under contract such persons as are qualified to engage in the activity to be funded in whole or in part by the county; employ or have under contract no two or more members of a family or kin of the first or second degree, unless specifically permitted in writing by the director; agree that any salary or employee benefit increase charged to the appropriation shall result in a reduction in the grant or purchases of services agreement in an amount equal to the amount of the salary or employee benefit increase, without any decrease in the level of services to be provided, unless the non-profit organization has received the prior written approval of the director for the salary or employee benefit increase; (b) Comply with applicable federal and state laws prohibiting discrimination against any person on -4- the basis of race, color, national origin, religion, creed, sex, age, or handicap; (c) Agree not to use any public funds for purposes of entertainment or perquisites; (d) Comply with such other requirements as the director may prescribe to ensure adherence by the non-profit organization with federal, state, and county laws, and established standards for fiscal and program management; and (e) A11ow the director, the committees of the council and their staffs, and the legislative auditor full access to records, reports, files, and other related documents in order that the program, management, and fiscal practices of the non-profit organization may be monitored and evaluated to assure the proper and effective expenditure of public funds. SEC. 5. Procedure for Awarding Grants. All grants made to a non-profit organization by the county shall be made in accordance with the following procedure: (a) The director shall adopt rules pursuant to Chapter 91, Hawaii Revised Statutes, as may be necessary for the selection of applicants or to meet the requirements of this section or of state or federal funding sources. (b) Upon selection of the applicants, the director shall request the council to appropriate the -5- necessary funds. Such request shall be submitted to and acted upon by the council in a manner consistent with law. (c) Upon favorable action by the council to appropriate funds for the grant, the director shall prepare a contract with the non-profit 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 to effectively monitor and evaluate the use of the grant. SEC. 6. Procedure for Awarding Purchase of Service Agreements. (a) Agencies may purchase services from non-profit organizations by including such funding in the annual budget request or a supplemental budget request. (b) Upon council action appropriating the funds, the head of the expending agency shall prepare a purchase of service agreement with the non-profit organization for the purchase of the required services in accordance with all county legal requirements and to include program, fiscal, and audit reporting requirements sufficient to allow the head of the expending agency to effectively -6- monitor and evaluate the delivery of services purchased. SEC. 7. Grants and Purchase of Service Agreements Mutually Exclusive. (a) A non-profit organization that enters into a purchase of service agreement with an agency shall be ineligible to receive a grant from the county during the fiscal year for which the purchase of service agreement is in effect. (b) Anon-profit organization that receives a grant from the county shall be ineligible to enter into a purchase of service agreement with an agency during the fiscal year in which the grant is received. SEC. 8. Applicability to Non-County Funds; Co-Sponsored Activities. Nothing in this article shall be construed to apply to the appropriation of funds: (a) Provided to the county for a stated purpose by any person, private entity, or governmental entity; or (b) Made to an agency for any activity or program co-sponsored by the agency and a private or governmental entity or entities. SECTION 2. Severability. If any provision of this article or its application to any organization or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the article which can be given effect without the invalid provision or application, and to this end, the provisions of this article are severable. -7- SECTION 3. approval. Hilo, Hawaii This ordinance shall take effect upon its Date of Introduction: Date of Adoption: INTRODUCED BY: COUNCIL MEMBER, COUNT 0~' HAWAII March 17, 1982 April 7, 1982 Effective Date: April 12, 1982 -8- Hilo, Hawaii Date: March 17, 1982 FIRST READING AYES NOES A/E Dahlberg X De Luz X Domingo X Fuj ii X Hale Kawahara X X . ~~~ Lai X S ch ut to X Chr. Yamashiro X 9 0 0 Publication Date: Hilo, Hawaii Date: April 7, 1982 SECOND & FINAL READING AYES NOES A/E Dah lbe rg X De Luz X Domingo X Fuj ii X Hale X Kawahara X Lai X S ch utte X Chr. Yamashiro X ~__ 6 0 3_~ Publication Date: APB l 8 1982 We do hereby certify that the foregoing BILL was adopted by the County Council and published as indicated above. +`-~; z~ - - _..--- 'O_~~~i , P~ ~ ~~8? „ ~. ,., ~afi~ ------------------~-----._...----....._._a~~.~._ ~^ County Clerk Bill No. 832 Reference: C-52.2/FC-172 M.B. No. _ y Ord. No. .r, Approved/,~, ,;i~ this~day of ~~