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HomeMy WebLinkAboutMIN GOEAC 2025/05/20 (2024-2026)Committee on Governmental Operations and External Affairs 1011' Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii May 20, 2025 CALL TO The regular meeting of the Committee on Governmental Operations and ORDER: External Affairs was called to order at 1:01 p.m., in the Council Chambers, Hilo, by Ms. Jenn Kagiwada, Chair. ROLL CALL: Present: Ms. Jenn Kagiwada, Chair Ms. Michelle M. Galimba, Member Mr. James E. Hustace, Member Mr. Holeka Goro Inaba, Member Ms. Ashley L. Kierkiewicz, Member Mr. Dennis "Fresh" Onishi, Member Ms. Rebecca Villegas, Member (via videoconference from Kona) Absent & Excused: Mr. Matt Kaneali`i-Kleinfelder, Vice Chair Ms. Heather L. Kimball, Member STATEMENTS FROM THE PUBLIC ON AGENDA ITEMS: ORDER OF RESOLUTIONS: Res. 185-25: The Chair directed the Committee to proceed to the next order of business, Statements from the Public on Agenda Items. (There were none.) The Chair directed the Committee to proceed to the next order of business, Order of Resolutions. AUTHORIZES THE CONTINUED EMPLOYMENT OF LEONG KUNIHIRO BROOKE & KIM, AS SPECIAL COUNSEL TO REPRESENT THE COUNTY OF HAWAI`I, DEPARTMENT OF HUMAN RESOURCES, WORKERS' COMPENSATION DIVISION Extends the retention of Special Counsel Services with additional compensation of $120,000 and total compensation not to exceed $420,000. Reference: Comm.297 Intr. by: Council Member Kagiwada (B/R) GOEAC-10 May 20, 2025 CHR. KAGIWADA: Thank you very much, Director. Would you like to add anything from Corporation Counsel side? MR. YOSHIMOTO: Oh no, that was really complete, that was good. Thank you. CHR. KAGIWADA: Okay, wonderful. Council Members, do you have any questions or comments? Council Member Onishi, the floor is yours. MR. ONISHI: Thank you. So, you're saying that we need to pay $120,000 more for the end of the fiscal year. MS. TOKIHIRO: So, what I'm asking for is approval to extend the funds in the contract. I'm not sure that we'll spend the entire $120,000. Because the firm bills us on a monthly basis for time and expense. But we just need to extend the funds in the contract to complete the contract period. So, yes, adding an additional $120,000. MR. ONISHI: But then also in the "Whereas," it has the $300,000. MS. TOKIHIRO: Yes, $300,000 was the initial contract. MR. ONISHI: Okay, got it. And so, does this go through the process of bidding for the next fiscal year? MS. TOKIHIRO: So, it's actually through Professional Services. The Office of the Corporation Counsel has a Professional Services list for a variety of different types of counsel. And so, we go through it and look at who submitted proposals for defense for workers' compensation and evaluate people on that list. MR. ONISHI: So, is this what we're paying as the lowest of the bids or the ones that are qualified to select from, or there's only one person that's qualified that you can select from? MS. TOKHIRO: I believe the last time I was part of the panel that reviewed. And I think there were three entities at that time that was on a Professional Services list. I can't say for sure that this was the lowest -cost firm, but evaluation of the services is based on a variety of things. You know, being familiar with the HRS (Hawai`i Revised Statutes) being locally based. MR. ONISHI: If they qualify —they need to be able to, right, if they're going to apply. Because you have your minimum requirements, right? So, they would have to be qualified. Just like Public Works, they have their Professional Services for Engineering and so forth, right? And you have to qualify. So, this group is qualified, but then now you're saying that the selection is depending. Page 3 GOEAC-10 May 20, 2025 So, question to Corporation Counsel, usually the rule of thumb is what? Of how you're going to award. MR. YOSHIMOTO: There's criteria that we follow. The panel that convenes look at it; they get rated. And then we come up with a recommendation. MR. ONISHI: Right. So, my question is, if we had a firm that was at $150,000; then you have a firm at $200,000; then you have a firm at $300,000. Most logically, County is going to take the $150,000. MR. YOSHIMOTO: That depends. MR. ONISHI: I know, but most likely. That's what I'm saying, County is going to select the $150,000 firm. But it would be reasons where the State Legislature passed something where, if you can prove that a certain firm through past history wasn't capable of providing the proper services, then you could go to the next levels, right? MR. YOSHIMOTO: Yes. MR. ONISHI: So, my question then is, do you folks do that process? I don't know if you can answer this, but with this firm, was, is that, in what level or is this the lowest bid? MR. YOSHIMOTO: I don't recall that being an issue in the past. But I understand what you're saying, and I think that criteria can be factored in as well. But I wouldn't be able to tell you what happened. MR. ONISHI: Was this the lowest bid? MS. TOKIHIRO: I couldn't answer that, I mean based on because that was a couple years ago. I don't recall exactly how they compared cost -wise. But I can tell you that we've been very pleased with the work that this firm has done. And that they've provided a very, you know, invaluable service to us in this area to the County. So, we've been very pleased with the work that they've performed. MR. ONISHI: Because you haven't been with HR for a long time, right? MS. TOKIHIRO: So, prior to becoming the Director of HR, I was the head of the Workers' Compensation Division. MR. ONISHI: How long have you been in HR? MS. TOKIHIRO: Since 2019. Page 4 GOEAC-10 May 20, 2025 Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 185-25. Seconded by Mr. Hustace. CHR. KAGIWADA: Thank you very much. I think we have both Corporation Counsel and Human Resources (HR) here. If you wouldn't mind coming up and giving us a little information about this resolution, we'd appreciate it. Please introduce yourselves for the record. (Note: At this time, Human Resources Director Sommer Tokihiro, came forward to address the members of the Committee.) MS. TOKIHIRO: Hi, good afternoon. Sommer Tokihiro, Director of Human Resources. I'd also like to introduce Corinne Sato, who's the Workers' Compensation Claims Specialist IV, that just started in the Work Comp. Division on May 1st. So, she's the supervisor in the division, so we're happy to have her. (Note: At this time, Assistant Corporation Counsel J Yoshimoto, came forward to address the members of the Committee.) MR. YOSHIMOTO: Good afternoon Committee Members, J Yoshimoto, Assistant Corporation Counsel. CHR. KAGIWADA: Thank you so much. Director, would you like to get us started? Tell us just about this resolution, please. MS. TOKIHIRO: We currently have a three-year contract with Leong Kunihiro and Brooke for Special Defense Counsel Services, specific to workers' compensation. It's such a specialty area, we haven't been able to fill that need in our office of a Corporation Counsel, which is why we've gone for a contract externally. So, when I was anticipating —when we submitted the resolution for the multi -year contract, I was anticipating costs based on the prior contract. And then the prior contract, the rates hadn't changed for about eight years. So, when we got this most recent contract the rates had gone up. And then one of the attorneys that does most of the work representing the County of Hawaii became a partner. And so, her rates went up even higher. So, the contract funds have been exhausted as of the end of April. There's a little bit left. But this contract goes through September 3Wh, so we just need to add additional funds to complete this contract, and then we'll be going through the Professional Services process to evaluate a new contract for October. So, just trying to finish up this contract period. Page 2 GOEAC-10 May 20, 2025 MR. ONISHI: Okay, you've seen mulitple different firms representing? MS. TOKIHIRO: No, it's been the same firm. MR. ONISHI: Okay, I'll talk to Finance, thank you. MS. TOKIHIRO: I will note, though, that prior to coming to the County, I worked for a private company where we handled workers' compensation claims from a different perspective. So, I've worked with a variety of defense attorneys in the past throughout my career even before coming to the County. And this is a very good firm; very capable services.. CHR. KAGIWADA: Council Member Onishi, if you would like, we do have Reid Sewake here from Finance if you had any questions from Finance. Do you have a specific question for Mr. Sewake? MR. ONISHI: So, you heard my discussion, right? So, maybe you could answer. (Note: At this time, Assistant Controller Reid Sewake, came forward to address the members of the Committee.) MR. SEWAKE: So, I believe, if I remember correctly, the consultant was selected based on Professional Services. So, they would have been selected based on qualifications initially, and then negotiated for the contract during the execution of the contract. So, they were probably selected based on best qualified. MR. ONISHI: Well, my question is on —I don't know how many qualified firms that are in this Professional Services. MR. SEWAKE: So, we can get that to you. MR. ONISHI: All I wanted to know is what were the different levels of their bids and so forth. And are we picking, you know, a firm that is watching over or were watching over the amount we're spending, right? Because it's the taxpayers' money. We're not over -exceeding. For example, if we're going to appraise a property, we've got to go by the appraisal, right, that comes out. We cannot be paying them the appraisal price plus another $100,000, right? So, I'm just looking at that situation. And since we're in Budget hearings now. Thanks, okay. CHR. KAGIWADA: Thank you, Council Member Onishi. Any other Council Members, questions, comments? Over in Kona, anything? Are you okay over there? Page 5 GOEAC-10 May 20, 2025 MS. VILLEGAS: All good, thank you. CHR. KAGIWADA: Thanks, alright. Seeing no other lights on, thank you very much departments for shedding light on this. We have a motion on the floor to pass Resolution 185-25 and send it to full Council with a favorable recommendation. All those in favor, please say, "aye." Any opposed? Vote on Res. 185-25: The motion to recommend adoption of Res. 185-25, was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kierkiewicz, Onishi, Villegas, and Chair Kagiwada — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Kimball —2. Excused: None. CHR. KAGIWADA: That is the end of our agenda today. We will finish up. The time is 1:12 p.m. Thank you all so much. ADJOURN- Seeing no further business, Chair Kagiwada adjourned the meeting at MENT: 1:12 p.m. Approved: r*ld-11�1� 6 - / F-cz" Ms. Jenn Kagiwada, Chair (Date) Committee on Governmental Operations and External Affairs JK/dt Page 6