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The unincorporated association known as HUI MALAMA HONOKOHAU ("Plaintiff') named the County as <br />Defendant in the citizens' Clean Water Act ("CWA") civil action titled Hui Malama Honokohau v. County of <br />Hawaii, Civil No. 1:23-cv-00393, commenced in the United States District Court for the District of Hawai'i on <br />Spetember 25, 2023 ("Lawsuit"). The Lawsuit relates to alleged CWA violations at the County's Kealakehe <br />Wastewater Treatment Plant ("KWWTP") and has the potential to last years given the scope and complexity <br />of the issues involved. <br />OCC does not currently have the expertise, personnel, and requisite resources to provide the necessary <br />level of legal services needed for the Lawsuit that special counsel affords. <br />OCC procured the professional legal services of Schlack Ito to represent the County in the Lawsuit and other <br />related matters. Pursuant to HRS §103D-304 (2012) (Procurement of professional services), OCC convened <br />a selection committee to rank and evaluate five (5) potential law firms for the consideration of Special <br />Counsel. Schlack Ito was ranked the highest. <br />On December 20, 2023, and pursuant to County Council Resolution 372-23, the County Council authorized <br />OCC to retain Schlack Ito as Special Counsel to represent the County in, and provide legal services for, the <br />Lawsuit, and contract funds of $200,000. <br />During the last year, Schlack Ito has helped the County make great progress in resolving the Lawsuit. The <br />parties agreed to bifurcate the Lawsuit into 2 phases - the first addressing liability and the second relating to <br />remedies. On July 2, 2024, the parties settled the Lawsuit's liability phase, which requires the County to <br />apply for a NPDES permit with the State Department of Health by January 2, 2025. Since then, the parties <br />have focused on negotiating a resolution of the remedies phase, which requires agreements regarding <br />injunctive relief, an environmentally beneficial project or civil penalty, and Plaintiffs attorneys' fees. <br />Resolution of the second phase is complex and requires input from multiple County departments to identify <br />and analyze potential projects. Although we remain hopeful the case will be settled soon, it is possible the <br />parties will be unable to reach an agreement and litigate the outstanding issues instead. Resolution of the <br />Lawsuit requires the County to incur Special Counsel fees and costs exceeding the $200,000 Resolution <br />372-23 authorized, which has been exhausted. <br />It is in the County's best interest to continue to employ Schlack Ito as Special Counsel to maintain <br />consistency in managing and handling the County's defense in the Lawsuit. OCC has budgeted $300,000 <br />for special counsel expenses in FY 2024-25. Thus, OCC requests Council grant the authority for continued <br />retention of Schlack Ito as Special Counsel for the Lawsuit and related matters with an additional $300,000 <br />to cover the anticipated costs under the contract. <br />SIGNED: DATE: 12-17-24 <br />Department Head <br />