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HomeMy WebLinkAboutORD 1986-052 1984-1988.~~,. ,~ COUNTY OF HAWAI~,~~~STATE OF HAWAII ~, _ ~,~.. ~~~ :~~ Bill No. is3 (Draft 2) ORDINANCE NO. 86 52 AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 25, HAWAII COUNTY CODE, AS AMENDED, RELATING TO APPROPRIATION OF FUNDS TO NONPROFIT ORGANIZATIONS. WHEREAS, the Hawaii County Council is supportive of the services provided by Hawaii County's human service agencies; and WHEREAS, the Council recognizes the funding needs of these organizations and wishes to continue to make county funding available to supplement Federal, State, and private funding sources. BE IT ORDAINED 8Y THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this ordinance is to clarify and strengthen the procedures for awarding grants to nonprofit organizations and to establish a minimum amount to be made available annually Por appropriation to nonprofit organizations. SECTION 2. Chapter 2, Article 25, Hawaii County Code, as amended, relating to appropriation of funds to nonprofit organizations, is hereby further amended to read as follows: Article 25. Appropriation of Funds to Nonprofit Organizations. Section 2-135. Purpose. The purpose of this article is to establish standards for the appropriation of funds to nonprofit organizations providing programs and services which the County has determined to be in the public's interest. 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. THIS WILL VEYIT_"L THP_' OF THE r"F~11iERSHIP OF COUNTY COUNC V ED 1HF. T1P.YO.R '~` ON DRAFT 2 , OUNCIL $i P TTdO-THIRDS Tf*_F_. HAWAII TO OVERRIDF. LL 10. 153 1 I P."7A.N (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. (6) C"Prerequisite"] "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 2-137. Eligible organizations. (a) All grants and purchase of service County to nonprofit organizations are to be these standards so that the funded nonprofit benefits to the public and accomplish public purchase of services contract to a nonprofit made unless the nonprofit organization meets payments made by the made in accordance with programs yield direct purposes. No grant or organization shall be the following criteria: (1) The nonprofit 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) The purposes for which the nonprofit organization is organized provide benefits to the people of the County. (3) The service or activity to be provided by the nonprofit 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. (4) The nonprofit 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 nonprofit organization. -2- (5) The nonprofit organization has bylaws 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. (6) The nonprofit 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 sufficient expertise to successfully carry out the service or activity. (7) The nonprofit organization must be licensed and accredited in accordance with applicable requirements of Federal, State and County laws. Section 2-138. Conditions for grants or purchase of service agreement. (a) Nonprofit 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: (1) [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 to 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 nonprofit organization has received the prior written approval of the director for the salary or employee benefit increase;] Employ and appoint persons on the basis of merit and ability. (2) Comply with applicable Federal and State laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or handicap; (3) Agree not to use any public funds for purposes of entertainment or perquisites; -3- (4) Comply with such other requirements as the director may prescribe to ensure adherence by the nonprofit organization with Federal, State, and County laws, and established standards for fiscal and program management; and (5) Allow the director, the committees of the council and their staffs, and the legislative auditor Cfull] access to records, reports, files, and-other related documents in order that the program, management, and fiscal practices of the nonprofit organization may be monitored and evaluated to assure the proper and effective expenditure of public funds. 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) 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. (2) Upon selection of the applicants, the director shall request the council to appropriate the necessary funds. Such request shall be submitted to and acted upon by the council in a manner consistent with law.] (1) Annually before December 31, the Director shall for the purpose of so kiting app ications, estab ish a sum of at least $250, 00 to be avai aT bye in tiering fisca year or unding requests by nonprofit organizations. The director shall pub Tish a notice so kiting app ications in a newspaper o' generTirc~ion within the ounty o Hawaii y December 3 . (2) All applications for grants shall be submitted on or before February 28 preceding the County's fisca year, which begins on Ju y App ications sha be prepared on orms provided by the director. Applications not in conformance with the requirements of e oun y Co a may a reJec e. (3) The director shall submit to the Council all qualifying app ications for its review and appropriation of funds. -4- [(3)] (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 sufficient to allow the director to effectively monitor and evaluate the use of the grant. Agencies shall be notified of their funding or lack thereof by July ~1. Section 2-140. Procedure for awarding purchase of service agreements. (a) Agencies may purchase services from nonprofit 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 nonprofit 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 monitor and evaluate the delivery of services purchased. [Section 2-141. Grants and purchase of service agreements mutually exclusive. (a) A nonprofit 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) A nonprofit 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.] [Section 2-142.] Section 2- Applicability to noncounty funds; cosponsored activities. (a) Nothing in this article shall be construed to apply to the appropriation of funds. (1) Provided to the County for a stated purpose by any person, private entity, or governmental entity; or -5- (2) Made to an agency to any activity or program cosponsored by the agency and a private or governmental entity or entities. Section 2- Records and reportin (a) The nonprofit organization shall follow gener accounting procedures and practices and shall maintain records, documents, and other evidence which sufficien proper y account for the expenditure of county funds. records and documents shall be subject at all reasonab inspection, reviews, or au its by the county expending director, and the legislative auditor, or by their reo accepted a The books, Ie times to agency, the resentatives. (b) The county expending agency, director of finance, or county council may request periodic written reports on the use oo cow funds. By January 31, the nonprofit organization shall submit a report to the county expending agency and the Counci~ich describes how the county unds are being used and the public enefits derived from their use. Section 2- Rules The director shall adopt rules as may be necessary to meet the requireme~ this section. SECTION 3. Material to be repealed is bracketed. New material is underscored. Zn printing this ordinance, the brackets, bracketed material, and underscoring need not be included. SECTION 4. In the event that any portion of the ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. SECTION 5. This ordinance shall take effect upon its approval. ''I~N('T'RO.DUCED COUNCIL MEMBER, COUNTY OF HAWAII Hilo, Hawaii Date of Introduction Date of 1st Reading: Date of 2nd Reading: Effective Date: April 9, 1986 April 9, 1986 May 7, 1986 3une 4, 1986 -6-