HomeMy WebLinkAboutREP FC 364 03/11/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: March 11, 1991
Place: Councilroom
Time: 10 : 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Communication
No . 2334 , reports as follows :
The purpose of Communication No. 2334 is to recommend that the
Finance Committee conduct a thorough program review of the County' s
helicopter services program and determine the cost efficiency of
retaining the present contractor, as opposed to establishing a
County-run program; selecting another service operator; or using
combined services to maintain, operate and administer the program.
Morever, Councilwoman Hale suggests it is the Council ' s
responsibility to adopt policies under which to run the program.
Pursuant to Section 3-17 of the Hawaii County Charter, at least once
every four years the Council shall critically review every program
supported wholly or partially by County funds .
Rule 24 (2) , Rules of Procedure of the Council , states that each
standing committee may conduct a more in-depth review of any program
as assigned by Rule 6 . Rule 6(2) (a) Committee on Finance: Matters
related to auditing, budget, appropriations, general obligations and
revenue bonds, taxes, inter-governmental revenues, licenses, fees,
liquor control, police and fire protection, personnel transactions,
policy, destruction of records, and civil defense.
Your Committee was informed that Councilwoman Hale reviewed the
current contract for services and noted several discrepancies
regarding enforcement of stated terms and conditions :
1 . No Flight Operation and Procedures manual was on
record in the County.
2 . No bulletins have been issued (pg . 6
specifications)
3 . No quarterly written review of said manual and
bulletins by FAA flight instructor/flight examiner has
been provided to the County as required.
4 . No maintenance and support manual(s) nor
supplemental bulletins have been provided by
contractor . Instead, the County maintenance section
purchased and charged same to the County MV/Hwy Eqpt
Parts/Supplies - helicopter services account .
FC REPORT NO. 364
ADOPTED: MAR 21 1991
FC- 364 Page 2 March 11, 1991
Your Committee was further informed that in 1982 the County entered
into the County a 7-year lease/purchase contract with Rotor Wing
Hawaii , Inc. , and in 1989 the County owned the helicopter. The
present contract was started in July 1989 and at the time was
awarded to the only bidder . A check with FAA has established the
fact that this contract was geared to the one bidder by the
restriction that only a Hughes authorized factory representative
could bid. This was an unnecessary restriction according to FAA.
Councilwoman Hale suggests there is a lack of management, and the
County is not realizing the full potential and usefulness of our
County helicopter. She noted that the February 21, 1991 notice
written on the blackboard at the Waiakea Station stating "only
County, State and Federal employees were to ride in the Helicopter"
and a subsequent similarly worded official communication from the
Assistant Fire Chief were indications that necessary rules and
regulations have not been adopted and enforced. She further
explained that recent submission of the required Manual of
Operations and Procedures is further evidence of the same.
Mrs . Hale questioned the cost effectiveness of paying contracted
mechanics $53 . 25 per hour, plus transportation, to service our
helicopter when in fact we have a qualified helicopter mechanic on
temporary status who receives $13 . 86 per hour . She further pointed
out that pilots should be paid at the same rate as County civil
service pilots but this has not been verified and questioned the
advantage of hiring private pilots .
Your Committee was advised that the authority to conduct program
review was mandated by County Charter in 1979 and the process and
format was thereafter developed and used by the Legislative
Auditor ' s Office starting in 1981 .
Your Committee decided that the available format would be used by
the Finance Committee to conduct a program review of the helicopter
services program. We further agreed that members and staff of the
Finance Committee would conduct subject review in cooperation with
the Fire Department, Police, Civil Defense and other appropriate
agencies, and the purpose would be to determine the effectiveness of
procedures now being used to administer the program and the cost
effectiveness of those measures .
Your Committee Chair noted that she received a copy of the Flight
Operation and Procedures manual from the Fire Department on
February 25, 1991, and said manual was dated July 1, 1989 and titled
as the "completely revised" edition. She then explained that she
has requested a copy of the original manual from the Fire Department
and noted that the department has been cooperative with each of her
requests, and has shown initiative to correct some of the
deficiencies which she has uncovered so far .
M w
FC- 364 Page 3 March 11, 1991
Councilwoman Hale noted that subject contract, which expires on
June 30, 1991, can be terminated with 30 days notice, or less if
terms of contract are breached.
Your Committee therefore recommends approval of a program review.
HELENE H. HALE, CHAI : OMAk
f/Ad
ROBERT H. MAKUAKANE, VICE CHR. BRIAN J. ,E LIMA MEMBr •
4114
TAKA'.HI DOMIN 0, M: BER MER K. LAI, MEMB •
HARRY S. R mDLE, MEMBER SPENCER K. SCHUTTE, MEMBER
•
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