HomeMy WebLinkAboutCOM 0071.000 2024-2026C. Kitno Alameda, Ph.D.
Mayor
William V. Brilhante Jr.
Managing Director
Diane Nakagawa
Director
Malia A. Kekai
Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720
(808) 961-8234 • Fax (808) 961-8569
December 18, 2024
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Dr. Holeka Goro Inaba, Council Chair and _.-
Members of the Hawaii County Council
Hawaii County Council
25 Aupuni Streeta� -
Hilo, Hawaii 96720
Re: Resolution Authorizing the Continued Employment of Special Counsel
Enclosed is a resolution authorizing the continued employment of Schlack Ito, a Limited
Liability Law Company as Special Counsel to represent the County of Hawaii in the citizens'
Clean Water Act civil action titled Hui Maldma Honokohau v. County of Hawai `i, Civil No.
1:23-cv-00393. The Office of the Corporation Counsel does not have the expertise, personnel,
and resources to provide the same level of legal services rendered by Special Counsel.
If there are any questions, please do not hesitate to call Lerisa Heroldt of the Office of the
Corporation Counsel at 961-8251.
g - U—, —
Diane Nakagawa
Director of Finance
Enc.
c: Corp Counsel
Comm. No. -11
Ref. To: &oF, etc,
Ref. Date DEC 2 7 2024
Hawaii County is an Equal Opportunity Employer and Provider
Form* B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT:
Office of the Corporation Counsel
DATE:
Dec. 13, 2024
STAFF CONTACT:
Lerisa L. Heroldt
PHONE:
808-961-8251
A. REQUEST:
The Office of the Corporation Counsel ("OCC') requests the placement of the attached draft resolution on
the Governmental Operations and External Affairs Committee agenda for its meeting on January 7, 2025.
The attached draft resolution will impart authority to the OCC to continue the currently existing contract for
special counsel with Schlack Ito, a Limited Liability Law Company ("Schlack Ito") authorized in Resolution
372-23, and increase the contractual funds by an additional $300,000.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
The unincorporated association known as HUI MALAMA HONOKOHAU ("Plaintiff') named the County as
Defendant in the citizens' Clean Water Act ("CWA") civil action titled Hui Malama Honokohau v. County of
Hawaii, Civil No. 1:23-cv-00393, commenced in the United States District Court for the District of Hawai'i on
Spetember 25, 2023 ("Lawsuit"). The Lawsuit relates to alleged CWA violations at the County's Kealakehe
Wastewater Treatment Plant ("KWWTP") and has the potential to last years given the scope and complexity
of the issues involved.
OCC does not currently have the expertise, personnel, and requisite resources to provide the necessary
level of legal services needed for the Lawsuit that special counsel affords.
OCC procured the professional legal services of Schlack Ito to represent the County in the Lawsuit and other
related matters. Pursuant to HRS §103D-304 (2012) (Procurement of professional services), OCC convened
a selection committee to rank and evaluate five (5) potential law firms for the consideration of Special
Counsel. Schlack Ito was ranked the highest.
On December 20, 2023, and pursuant to County Council Resolution 372-23, the County Council authorized
OCC to retain Schlack Ito as Special Counsel to represent the County in, and provide legal services for, the
Lawsuit, and contract funds of $200,000.
During the last year, Schlack Ito has helped the County make great progress in resolving the Lawsuit. The
parties agreed to bifurcate the Lawsuit into 2 phases - the first addressing liability and the second relating to
remedies. On July 2, 2024, the parties settled the Lawsuit's liability phase, which requires the County to
apply for a NPDES permit with the State Department of Health by January 2, 2025. Since then, the parties
have focused on negotiating a resolution of the remedies phase, which requires agreements regarding
injunctive relief, an environmentally beneficial project or civil penalty, and Plaintiffs attorneys' fees.
Resolution of the second phase is complex and requires input from multiple County departments to identify
and analyze potential projects. Although we remain hopeful the case will be settled soon, it is possible the
parties will be unable to reach an agreement and litigate the outstanding issues instead. Resolution of the
Lawsuit requires the County to incur Special Counsel fees and costs exceeding the $200,000 Resolution
372-23 authorized, which has been exhausted.
It is in the County's best interest to continue to employ Schlack Ito as Special Counsel to maintain
consistency in managing and handling the County's defense in the Lawsuit. OCC has budgeted $300,000
for special counsel expenses in FY 2024-25. Thus, OCC requests Council grant the authority for continued
retention of Schlack Ito as Special Counsel for the Lawsuit and related matters with an additional $300,000
to cover the anticipated costs under the contract.
SIGNED: DATE: 12-17-24
Department Head