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HomeMy WebLinkAboutCOM 0758.004 2008-2010C RUDELE ItE DE LIMA May 18, 2010 ATTORNEYS AT LAW '.y Chairman Yoshimoto and Members of the Council Hawaii County Council C C) County Building �—c, m Hilo, Hawaii 96720 °o C, ) -° Dear Chairman Yoshimoto and Members of the Council, ti ;>; 0 I am Brian De Lima and I am an attorney representing Kamaaina Pumping, Inc. = lwspeak. opposition to Bill 230. Bill 230 has a purpose section and I am here to oppose the provisions outlined in the purpose section of Section 1 pertaining to the prohibition against County employees and companies from contracting with the County when that employee has a controlling interest. 1 am not here to oppose the provision regarding banning County employees from representing third parties. Bill 230 was examined by the Hawaii County Board of Ethics. The Board of Ethics, made recommendations that would amend Bill 230. We had no objections to the recommendations of the Board of Ethics. The Board of Ethics is the body that will determine whether there are any violations of the Code. The members of the Board believed that the recommended changes of Bill 230 were not in the interest of the public. The Board of Ethics recommended several amendments to Bill 230 that would ensure that special duty police officers would continue to operate in the manner that they are currently employed. It is important to note that the County contracts with private companies and charges a commission for each special duty police officer and as such under the strict reading of Bill 230 that continued practice would be prohibited. Also prohibited would be any stipend or contributions to County Employees who may provide services to senior citizen and youth groups as part of on -going programs. such as swimming lessons or ukulele or hula lessons. The Board of Ethics addressed those concerns by proposing amendments to Bill 230. Frankly, Bill 230 was generated by the administration because the purchasing office prepared bid specifications that were viewed as being too narrow. The inaccurate and incorrect perception is that the County Employee that had an interest in the company somehow influenced the bid specifications. The matter was investigated and determined that the employee had nothing to do with the bid specifications. In any event, the sealed bid process that ensures that the County benefit from competition, was recognized by the Board of Ethics as the mechanism to ensure that the public interest is protected. Comm. No. 7 5 a Ref. To, Ref. Date MAY 1 2. 101 AUPUNI STREET • SUITE 133 • HILO, HAWAII 96720 • (808) 969 -7707 • FAX (808) 969 -6606 Chairman Yoshimoto and Members of the Council May 18, 2010 Page Two My client Kamaaina Pumping, Inc., will not be affected by Bill 230 because no employee shall have any controlling interest in Kamaaina Pumping, Inc. However, Bill 230 if it is enforced by the Board of Ethics as it should be if it becomes the law, will expose the County to lawsuits that will cost the taxpayers more money because any law passed by this Council must provide for equal protection of all citizens and must be strictly construed particularly when it prohibits a citizen from applying for a public contract. The existing code specifically prohibits any officer and employee from seeking employment or contract for services for oneself by the use or attempted use of the officer's or employee's office or position. This is the conduct that should be prohibited. This absolute prohibition based on mere employment status has no utility and will expose the county to significant liability. It is important to note our economic system is based on free enterprise and competition. Government should promote laws that are fair to all citizens and support our free enterprise system. When the existing ethic laws were written it was drafted to serve the public interest. The tax payers benefit when more companies are able to bid on contracts. Particularly in tough economic times, the more competitive bidders the better. The competitive bidding process saves the County and taxpayers millions of dollars. Existing law prohibits self dealing and conflicts of interests so the inclusion of this new language and prohibition in Bill 230 cannot be viewed as solving any specific problem particularly when bids are sealed. Should you have any questions, please do not hesitate to ask and I shall endeavor to answer your questions or concerns.