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Home My WebLink AboutRES 323 Draft 01 2010-2012OFFICE INFORMATION ONLY Meeting: Public Works and Parks and Recreation Committee—November 21, 2012 Action: Filed due to vote count of 4 -ayes (Ford, Hoffinann, Smart, Yagong), 4 -noes and (- absent (Blas) Re: Res 323-12; Comm. 908 (2010-2012 term) COUNTY OF HAWAII STATE OF HAWAI `I RESOLUTION NO. 323 12 A RESOLUTION REQUIRING IMMEDIATE PAYMENT FOR LEGAL SERVICES RENDERED IN GOOD FAITH TO THE HAWAII COUNTY COUNCIL. WHEREAS, the Hawaii Revised Statutes state in § 46-1.5: "§46-1.5 General powers and limitation of the counties. Subject to general law, each county shall have the following powers and shall be subject to the following liabilities and limitations: (4) Each county shall have the power to make contracts and to do all things necessary and proper to carry into execution all powers vested in the county or any county officer" (underscored for emphasis only); and WHEREAS, the Hawaii Revised Statutes state in § 46-55: "§ 46-55 Schedule of council anticipated expenditures. Notwithstanding any law to the contrary, in any county where the population exceeds one hundred thousand, immediately following the enactment of the operating budget ordinance, the head of the legislative body of the county shall submit to the budget director of the county a schedule showing the expenditures of the body anticipated for each quarter of the fiscal year. The schedule shall not require the approval of nor can it be altered by the mayor and the legislative body may proceed without other authority to incur obligations or make expenditures after the schedule has been submitted. The director of finance shall approve or issue any requisition, purchase order, voucher, or warrant in accordance with the schedule and upon request of the legislative body_ The schedule may be altered at any time by the body." (underscored for emphasis only); and WHEREAS, the Hawaii Revised Statutes state in § 103-10: "§ 103-10 Payment for goods and services. (a) Any person who renders a proper statement for goods delivered or services performed, pursuant to contract, to any agency of the State or an county, shall be paid no later than thirty calendar days following receipt of the statement or satisfactory delivery of the goods or performance of the services. In the event circumstances prevent the paying agency from complying with this section, the person shall be entitled to interest from the paying agency on the principal amount remaining unpaid at a rate equal to the prime rate for each calendar quarter plus two per cent, commencing on the thirtieth day following receipt of the statement or satisfactory delivery of the goods or performance of the services, whichever is later, and ending on the date of the check. As used in this subsection, "prime rate" means the prime rate as posted in the Wall Street Journal on the first business day of the month preceding the calendar quarter" (underscored for emphasis only); and WHEREAS, the Hawaii Revised Statutes state in § 103D-203: "§103D-203 Chief procurement officers. (b) The chief procurement officers for each of the several counties shall be: (2) The legislative branch --the respective chair persons of the councils of the several counties" (underscored for emphasis only); and WHEREAS, the Hawaii Revised Statutes state in § 103D-205: "§103D-205 Authority and duties of the chief procurement officer. (a) For their respective jurisdictions and unless otherwise specifically provided in this chapter, each chief procurement officer shall serve as the central procurement officer and: (1) Procure or supervise the procurement of all goods, services, and construction" (underscored for emphasis only); and WHEREAS, the Hawaii Revised Statutes state in §103D-207; and "§103D-207 Centralization of procurement authority. Except as otherwise provided in sections 103D-208, 10313-209, and 10313-210, all rights, powers, duties, and authority relatingtprocurement of goods, services, and construction, and the management, control, warehousing, sale, and disposal of goods, services, and construction now vested in, or exercised by, the governmental bodies of the State and counties 2 are hereby transferred to the respective chief procurement officers." (underscored for emphasis only); and WHEREAS, the Hawaii Revised Statutes state in § 103D-209: "§ 103D-209 Authority to contract for certain services. Except as provided in section 28-8.3 with respect to agencies of the State of Hawaii, any governmental body of this State may act as a purchasing agency and contract on its own behalf for professional services subject to this chapter and rules adopted by the policy board. The purchasing agency may consult with the chief procurement officer or the officer's designee when procuring these services." (underscored for emphasis only); and WHEREAS, the Hawaii Administrative Rules, amendment to Chapter §3-120-4 states in §3-120-4, Procurement exempt for chapter 103F, HRS. "(a) Notwithstanding the intent of chapter 103D, HRS, to require governmental bodies to procure their goods and services through competitive bidding, it is acknowledged that there may be situations where practicable or not advantageous to the State." Additionally, there exists "Exhibit A" which lists the services exempted and includes: "Exemption Number Exemption 4. Services of legal counsel, guardian ad litem, psychiatrists, psychologists, receivers and masters when required by court order", and further states in Exhibit A the names of the chief procurement officers which includes the chairperson of the Hawaii County Council, Dominic Yagong" (underscored for emphasis only); and WHEREAS, in the State Procurement Code there exists a list of the Chief Procurement Officers which is attached as Exhibit A; and WHEREAS, the County Charter of the County of Hawaii in section 10-14, Central Purchasing, subsection (a) states: "The department of finance shall be responsible for the procurement of all materials, supplies, equipment and services required by any agency of the county, except as otherwise provided by this charter or any law." (underscored for emphasis only); and WHEREAS, the County Charter of the County of Hawaii in section 10-14, Central Purchasing, subsection (c) states: "All purchases and contracts for materials, supplies, equipment and services shall be made in accordance with Hawaii Revised Statutes and rules and regulations established by the state procurement policy office thereto. Any such rule or regulation may be modified by the director of finance, in accordance with Chapter 91, Hawaii Revised Statutes, provided that such modifications shall be consistent with the requirements of state law." (underscored for emphasis only); and WHEREAS, the Hawaii County Council exists in the Legislative Branch per Article III, Legislative Branch, County Council, section 3-1 of the Hawaii County Charter; and WHEREAS, Chairperson Dominic Yagong of the Hawaii County Council is named as the Chief Procurement Officer of the Legislative Branch of the County of Hawaii; and WHEREAS, Chairperson Dominic Yagong under the authority of the Hawaii Revised Statutes 103D- 203 and Hawaii Administrative Rules 3-120 hired James Kawachika, Attorney, and Michael Matsukawa, Attorney, to provide legal services to the Hawaii County Council, and those attorneys provided legal services to the Hawaii County Council; and WHEREAS, requisitions for the legal services were provided by Mr. Dominic Yagong and Jamae Kawauchi, County Clerk, to the Hawaii County Finance Department; and WHEREAS, the Office of Corporation Counsel advised the Finance Department not to pay the legitimate bills or invoices of attorneys James Kawachika or Mike Matsukawa, and the Finance Department then voided, refused, denied, or disapproved the requisitions for payment; and 4 WHEREAS, the bill for James Kawachika was not paid for more than 30 days after its submission to the County of Hawaii, therefore, the Director of Finance appears to be in violation of the State procurement laws; and WHEREAS, since the requisition for Michael Matsukawa was denied, the Director of Finance appears to be in violation of the State procurement laws; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it is the policy of the Hawaii County Council that payment of all bills shall meet the timely requirements of the Hawaii Revised Statutes, and that bills or invoices for professional services provided by James Kawachika or Michael Matsukawa shall be paid within fifteen days of the adoption of this resolution. BE IT FURTHER RESOLVED that the requisitions written for professional services requested by the Legislative Branch shall be immediately approved by the Director of Finance, provided that funds are available in the Operations Budget of the Legislative Branch. BE IT FURTHER RESOLVED that the Office of Corporation Counsel shall cease and desist in obstructing the approval of the requisitions by the Director of Finance or the payment of any bills or invoices for services rendered by James Kawachika or Michael Matsukawa. BE IT FURTHER RESOLVED that Mayor William Kenoi shall instruct his subordinates that bills rendered in good faith for professional services are required to be paid by the County of Hawaii and that the Hawaii Revised Statutes and the Hawaii Administrative Rules shall be followed. BE IT FURTHER RESOLVED that bills or invoices provided by James Kawachika, Attorney, or Michael Matsukawa, Attorney, for legal services rendered shall be paid within 30 days of presentation, or if paid later than 30 days of presentation, interest shall accrue per the Hawaii Revised Statutes. BE IT FINALLY RESOLVED that the Clerk of the County of Hawaii is directed to transmit copies of this Resolution immediately upon its adoption by the Hawaii County Council to: (1) the Honorable William P. Kenoi, Mayor of the County of Hawaii; and (2) Nancy Crawford, Director of Finance. Dated at , Hawai`i, this day of , 2012. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL County of Hawaii Hilo, Hawaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on ATTEST ROLL CALL VOTE AYES NOES ABS EX BLAS FORD HOFFMANN IKEDA ONISHI PILAGO SMART YAGONG YOSHIMOTO Reference: C-908/Waived FC COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO. 323 1-2 C1 7b%WA-_, EXHIBIT_ A HAR 3-120 CHIEF PROCUREMENT OFFICERS ipo.hawaii.gov/general-/chief-procurement Phone Jurisdiction Position Name Address email (area Fax - - - code 808) Administrator, PO Box 119 - - i Aaron S. Executive Branch rState aaron.fujioka@hawaii.gov 587-4700 587-4703 Fujioka Procurement Honolulu, HI 96810 Office 1390 Miller Street The Honorable) Department of kathrynmatayoshi(i�)notes.klI Superintendent Kathryn - - - 586-3310 586-3314 Education hi.us Matayoshi Honolulu, Hawaii 96813 2444 Dole Street, Bachman', University of Dr. M.R.C. 204 President mrcgreenwood@hawaii.edu 956-8207 956-5286 Hawaii Greenwood Honolulu, Hawaii 96822 711 Kapiolani Blvd., Suite ,The Honorable 500 Office of Chairperson of Hawaiian Affairs the Board 'Colette info@oha.org 594-1886 594-1864 ,- - Machado Honolulu, Hawaii 96813 Hawaii Health President and 3675 Kilauea Avenue Mr. Bruce Systems Chief Executive I banderson@hhsc.org 733-4151 733-4167 Corporation Officer Anderson - Honolulu, HI 96816 Administrative The Honorable 417 South King Street Rodney. A. Mailegcourts.stat' ----- e.hi.us Judiciary ,Director of the iRodney A. 539-4900 539-4855 -- -- Courts Maile !Honolulu, HI 96813 Senate House of The Honorable' State Capitol, Room 409 ! sentsutsui(a�capitol.hawaii.go President Shan S. 586-7344 586-7348 -- _ - v Tsutsui - Honolulu, HI 96813 IThe Honorable State Capitol. Room 431 Representatives Speaker i Calvin Say repsa�(a�capitol.hawaii.gov 586-6100 586-6101 Honolulu, HI 96813 The �1t County of Hawaii Finance Nancy Honorable 25 Aupuni Street - ncrawford@co.hawaii.hi.us 961-8517 961-8248 Director Crawford Hilo, HI 96720 The Honorable, 4444 Rice Street, Suite 280' County of Kauai Finance Wallace G. i- - - - ---- wrezentes@kauai.gov 241-4200 241-6529 Director Rezentes, Jr. Lihue, Hawaii 96766 of Maui l' The Honorable�200 South High Street finance Danny --_-_ danny.a sgalog(a�co.maui.hi.0 270-7844 270-7878 hrector s Agsalog mhansenghonolulu.gov dyagong(&co.hawaii.hi.us 768-3901 768-3179 1 961-8272'961-8912 w a11UkU, Hawau 96793 Director of The Honorable 530 South King Street Cit and Count Y Y Michael of Honolulu - ------ Budget and Hansen }Fiscal Services Honolulu, HI 96813 County of Hawaii 25 Aupuni Street I The Honorable, Hawaii County ..Chairperson I Dominic Council Yagong Hilo, Hawaii 96720 mhansenghonolulu.gov dyagong(&co.hawaii.hi.us 768-3901 768-3179 1 961-8272'961-8912 County of Kauai , 4396 Rice Street The able' - Kauai County l Chairperson Jay Honorable' cokcouncilAkauai.gov 241-6371 241-6349 Lihue, urfaro Hawaii 96766 Council e County of Maui 200 South High Street�I oMateole ---- --Chairperson -- -- -II,danny.mateogmauicounty.us 270-7678 270-7717 Danny Maui County Council Wailuku, Hawaii 96793 City and County The Honorable Honolulu Hale of Honolulu Chairperson Ernest Y. _ _ _ _ _ --emartinhonolulu.gov 768-5002'768-1222 Honolulu CountyMartin j Honolulu, HI 96813 e, Council I County of Hawaii� 345 Kekuanaoa Street, Mr. Quirino Suite 20 Manager and Antonio, Jr., - - -dws(ahawaiidws.org 961-8050 961-8657 Chief Engineer Hawaii P.E. Department of Hilo, Hawaii 96720 4388 Water Supply County of Kauai I P.O. Box 1706 - - Manager and Mr. David R. Kauai Department Chief Engineer Craddick dcraddick@kauaiwater.org 245-5408 246-8628 of Water Lihue, Hawaii 96766 County of Maui 200 South High Street Director Mr. Dave -_- dave.tqylor@co.maui.hi.us 270-7816 270-7951 , Taylor Maui Department of Water Supply Wailuku, Hawaii 96793 City and County� of Honolulu Manager and Mr. Ernest 630 South Beretania Street - - Chief Engineer Lau elaughbws.org 748-5061 748-5079 Honolulu Board of Water Supply Honolulu, HI 96813 Honolulu 1099 Alakea Street, Suite Authority for Executive Mr. Daniel 1700 Rapid ;Director Grabauskas � dgrabauskasghonolulu.gov 768-8344 768-5110 Transportation I - Honolulu, HI 96813 (HART)