NELHA Delegates Contract Decisions

posted in: July 2008 | 0

On June 10, to streamline its contracting process and to ratify current practices, the Natural Energy Laboratory of Hawai`i Authority board granted the power to execute a variety of documents to administrator Ron Baird.

Personnel: With regard to personnel matters, instead of running everything through the state Department of Business, Economic Development and Tourism, Baird now has the authority to execute documents to hire and fire staff, and reimburse staff for business expenses.

Fiscal: Baird was also authorized to approve procurement documents and contracts and internal fiscal documents that are for projects costing less than $1 million and that are in accordance with an approved NELHA budget. While the NELHA board will no longer be involved in approving these types of documents, many of them will still be reviewed by various state agencies, including the contracts office at DBEDT, the Department of Accounting and General Services, and the Department of Budget and Finance.

Real estate: For transactions approved by the NELHA board, Biard now has the authority to execute subleases and rights of entry and modify lease fees. He is not allowed to approve any consent to mortgage or estoppel documents or grant lease extensions or changes in the location or size of a project.

Legislature: After consulting with the NELHA board’s chairperson, Baird may present testmony to the Legislature that is consistent with NELHA board policies.

Baird was also authorized to approve camping permits.

In addition, the board also voted to support the signing of Senate Bill 1793, which would add two new members chosen from NELHA tenants, allow direct communication with the governor’s office and the Legislature, and allow NELHA to make its own decisions regarding emplyoees and the purchase of furniture, equipment, and supplies.

In accordance with a request by DBEDT director Ted Liu, the NELHA board conditioned its support of S.B. 1793 on the execution of a Memorandum of Understanding between NELHA and DBEDT regarding procurement. Before the board’s vote, DBEDT’s Chris Barron said that the MOU should require NELHA to take full responsibility for its contracts and that DBEDT will neither consult with nor answer questions from NELHA about procurement. Barrons added that if the NELHA board chose to support bill 1793, Liu said he wanted a “checks and balances process in place.”

— Teresa Dawson

Volume 19, Number 1 July 2008

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