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Chairman Dominic Yagong and Members of the Hawai'i County Council March 14, 2012 Page 2 "Corporation Counsel respectfully recommends the Hawai'i County Council authorize the hiring of special counsel to represent only the County of Hawai'i in any and all claims, administrative appeals and other related legal hearings and matters (including present and subsequent litigation involving the County) pertaining to Glen Shikuma, Patricia Nakamoto, Shyla Ayau and an unnamed former employee of the County of Hawaii. The request for special counsel is NOT for the purpose of hiring attorneys for the aforementioned former employees, or for any Council member or the County Clerk who may be sued in their individual capacities." On March 12, 2012, we conferred with the State of Hawai'i Office of Information Practices (hereinafter "OIP") concerning the above verbiage, and they concur it is adequate to address the earlier concerns raised by the Council. Enclosed is OIP's response to our outreach. We also kindly ask that our letter to the Council dated January 26, 2012, concerning these cases be re-distributed to the Council for their review. This letter details the basis for the conflict of interest that led to the recommendation that special counsel be hired to represent the County of Hawaii. If you require another copy of this letter, please let me know. It was sent under privileged cover, and provides information concerning the receipt of information about a County officer/employee by Corporation Counsel that led to our consultation with the Office of the Disciplinary Counsel, and their subsequent recommendation that a potential conflict existed such that the hiring of special counsel for the County of Hawai'i was required. As we have since the time the conflict was discovered, the Corporation Counsel continues to execute its duty pursuant to Rule 1.16 of the Hawai'i Rules of Professional Conduct, in ensuring the interests of the County are protected during this transitional time. For this reason, if the Council has any questions or concerns, please contact us. We wanted to make sure this was made clear to all Council members since there was an unfortunate and erroneous implication made that the County was without legal representation. We continue to protect the County's interests during this transitional time. Thank you again for your cooperation in agendizing this very important matter. We appreciate your continuing efforts in working with us to protect the best interests of the County of Hawai'i. Very truly yours, Aincoln Marshida,1420L127:19PM t`aiuo LINCOLN S. T. ASHIDA Corporation Counsel Encl.