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HomeMy WebLinkAboutREP GOEAC 043 2025-05-20 2024-2026REPORT OF THE COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS DATE: May 20, 2025 Re: Comm. No. 297/Res. No. 185-25 PLACE: Council Chambers Hilo, Hawaii TIME: 1:01 P.M. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Governmental Operations and External Affairs, to which was referred Resolution No. 185-25, reports as follows: Resolution No. 185-25, transmitted by Director of Finance Diane Nakagawa via Communication No. 297, dated May 2, 2025, authorizes the continued employment of Leong Kunihiro Brooke & Kim, as special counsel to represent the County of Hawaii, Department of Human Resources, Workers' Compensation Division. Resolution No. 185-25 extends the retention of Special Counsel Services with additional compensation of $120,000 and total compensation not to exceed $420,000. Director of Human Resources Sommer Tokihiro, Workers' Compensation Specialist Corinne Sato, Assistant Corporation Counsel J Yoshimoto, and Reid Sewake from the Department of Finance were present in the Hilo Chambers to discuss Resolution No. 185-25. Ms. Tokihiro explained that the County currently has a three-year contract with Leong Kunihiro Brooke & Kim for defense counsel services for workers' compensation cases, as this is a specialized area that they cannot fulfil this need within their office. When the funds were originally allocated for this contract it was based on their prior rates, which hadn't been adjusted in eight years. However, in their recent contract their rates had increased. They have reached the end of their allocated funds and the current contract goes through September, therefore the additional funds are needed to make-up the funding difference through the completion of this contract. In September they will be going through the professional services process to evaluate a new contract. Committee Member Dennis "Fresh" Onishi asked several questions around the extension of the funds and the amounts expected, including how the contracts are awarded. Ms. Tokihiro explained the process that professional services engages in to evaluate and execute a new contract. She said that she believes that the last time they went through this process there were three entities on the professional services list, but she was not certain if the firm chosen was the lowest cost option on the list. Ms. Tokihiro said that there are a variety of criteria that are considered before negotiating a contract. Mr. Yoshimoto echoed this explanation and expanded that while cost is a consideration, it isn't always the deciding factor. Ms. Tokihiro said that GOEAC Report No. 43 GOEAC-43 Page 2 May 20, 2025 while she can't say how they compare cost wise, she can reassure Council Members that they have done a good job and that her Department has been happy with the results. As Member Onishi had additional concerns, Mr. Sewake added that during the professional services process they would have been selected on qualifications and then the contract would have been negotiated upon. Member Onishi requested follow-up information on how many qualified firms were considered and what were the different levels of the bids. Mr. Sewake said he would follow-up. Your Committee on Governmental Operations and External Affairs is in accord with the purpose and intent of Resolution No. 185-25, and recommends its adoption. slm AYES NOES ABS EX GALIMBA X HUSTACE X INABA X KAGIWADA X KANEALI°I-KLEINFELDER X KIERKIEWICZ X KIMBALL X ONISHI X VILLEGAS X Respectfully submitted, COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS JENN KAdIWJHA, CHAIR GOEAC REPORT NO.: 43 ADOPTED: JUN 1 8 2025