Rules for paying city construction contracts over multiple years

(a) All improvements made under Articles 8 through 14 of this chapter shall be constructed under contract let in accordance with the Hawaii Procurement Code, HRS Chapter 103D, and related provisions of the Hawaii Administrative Rules. (b) Notwithstanding any other law to the contrary, if the completion of the contract will extend beyond the fiscal year in which the same is executed, the contract may be let without the council appropriating the total amount the city is obliged to pay towards the contract price under the following conditions. If the contract will be completed during the next succeeding fiscal year, the city shall have available and appropriated at the time of letting the contract at least 50 percent of the amount the city is obliged to pay toward the contract price. The balance shall be a first charge on the revenues of the city for the next succeeding fiscal year. If the contract will be completed beyond the next succeeding fiscal year, the city must have available and appropriated at the time of letting the contract at least 33-1/3 percent of the amount the city is obliged to pay toward the contract price. The balance shall be a first charge on the revenues of each of the next two succeeding fiscal years; provided that not less than 50 percent of the balance shall be provided at the beginning of the first succeeding fiscal year and the remainder at the beginning of the second succeeding fiscal year. The contract shall not be legal unless: (1) Before the contract is let, the council, by resolution, provides, to the extent permitted by law, for the automatic appropriation, at the beginning of the next succeeding fiscal years, of the amounts herein made a first charge on the revenues of the city for such fiscal year; and (2) The director of budget and fiscal services certifies the availability of the appropriations required by the resolution. )