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HomeMy WebLinkAboutCOM 0758.001 2000-2002 o°°tV OF a9k, o.• . y Harry Kim Dennis K. W. Lee Mayor Director ?f.;. y- pu~.P~ ,TEOF Ronald Ueoka ailuttfv of putfuniff Deputy Director DEPARTMENT OF PUBLIC WORKS ° Aupuni Center 101 Pauahi Street, Suite 7 • Hilo, Hawaii 96720-3043 (808) 961-8321 • Fax (808) 961-8630 October 1, 2002 Honorable James Arakaki, Chairperson and Members of the County Council Hawaii County Council 25 Aupuni Street Hilo, HI 96720 RE: Grading Ordinance Amendment Project Enclosed for your information, is a copy of the Settlement Agreement between KELLY Plaintiffs, State Department of Health (DOH), and the County of Hawaii, as referenced in William Takaba's transmittal letter dated September 25, 2002 for the above-mentioned project. If you have any questions or concerns regarding this project, please contact Galen Kuba at 961-8327. Dennis K. W. Lee Director APPROVED: Harry Kim Mayor Attachment Comm. No. • File No. Ref. To:- Ref. ~ 04/01/02 17:08 FAX 808 587 3077 AG HLTH & HUMAN SERVICES (a 007/016 1-7c SETTLEMENT, RELEASE. AND DEFENSE AND INDEMNITY AGREEMENT THIS SETTLEMENT, RELEASE, AND DEFENSE AND INDEMNITY AGREEMENT ("Agreement") is made and entered into this twelfth day of February, 2002, between WALTER JOHN KELLY, CHARLES ROSS FLAHERTY, JR., PATRICK M. CUNNINGHAM, MICHELLE CONSTANS WILKINS (collectively "KELLY Plaintiffs") and Defendants DEPARTMENT OF HEALTH and BRUCE ANDERSON, in his official capacity as Director of Health, State Department of Health (collectively "DOH') and Defendants COUNTY OF HAWAII, CHRISTOPHER YUEN, and DENNIS LEE in their official capacities (collectively COUNTY") in connection with this case ("Kelly lawsuit"). 1. RECITALS 1.1. KELLY Plaintiffs filed a Fifth Amended Complaint in Walter John Kelly, et al, v. 1250 Oceanside Partners, et al. Civil No. 00-1-0192K, in the Circuit Court of the Third Circuit, State of Hawaii ("Kelly lawsuit"), for declaratory and injunctive relief against various parties, including DOH and the COUNTY, because of alleged violations of various laws. 1.2. DOH and the COUNTY have asserted various defenses to Plaintiffs' allegations and claims for relief, oppose the latest complaint, and do not admit liability. 1.3- In order to avoid the further expense and risk of litigation, the undersigned parties now desire, upon the terms set forth in this Agreement, to release, settle, and dismiss all claims of the KELLY Plaintiffs against DOH, any claims against the State based only on DOH's conduct, and claims of the KELLY Plaintiffs against the COUNTY. NOW, THEREFORE, the undersigned parties in mutual consideration of the terms, Settlement Agreement -1- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County wBiT 04/01/02 17:09 FAX 808 587 3077 AG HLTH & HUMAN SERVICES 10008/016 covenants, and conditions of this Agreement, agree as follows: 2. DEFINITIONS 2.1. "Agreement" means this Settlement, Release, and Defense and Indenuiity Agreement. 2.2. "Complaint" means the Fifth Amended Complaint filed in the Kelly lawsuit, as filed or as it may be later amended or corrected and filed. 2.3. "Covered Claims" means a. All claims by KELLY Plaintiffs in the Complaint against Defendants Department of Health and Bruce Anderson, in his official capacity as the Director of the State of Hawaii Department of Health (collectively "DOH"); b. Any claims by the KELLY Plaintiffs against Defendant State of Hawaii, but only insofar as the claims are based on the conduct (action or inaction) of the Defendant DOH covered in Counts II (Public Trust) and IV (Land Use Law) in the Complaint. Kelly Plaintiffs have no other claims against DOH in the Complaint; and c. All claims of KELLY Plaintiffs in Counts ]d (Public Trust) and IV (Land Use Commission) of the Complaint against the COUNTY. d. Any and all past, present or future claims, demands, obligations, actions, causes of action, rights, for damages, costs, loss of services, expenses, and compensation for pain and suffering, mental and emotional distress, or other elements of general damages that are uncertain in amount, caused by the alleged violations of that are the subject of the Complaint claims identified in paragraphs 2.a, 2.b, and 2.c, Settlement Agreement -2- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 04/01/02 17:09 FAX 808 587 3077 AG HLTH & HUMAN SERVICES U009/016 above, by KELLY Plaintiffs, whether based on a constitutional claim, statute, regulation, contract, tort, or other theory of recovery, which KELLY Plaintiffs now have, or may hereafter accrue or otherwise be acquired which may not be anticipated at the time that this Agreement is signed, or in any way may grow out of the events that gave rise to the claims in paragraphs 2.a, 2.b, and 2.c, above, by KELLY Plaintiffs, including, but without limitation, any and all known or unknown claims for personal injuries by and emotional distress to KELLY Plaintiffs. e. "Covered Claims" shall also include any past, present or future claims for any medical expenses, expenses incurred for provision of substitute services, loss of income, or any element of special damages, or any element of punitive damages or exemplary damages caused by or in anyway arising out of the alleged violations against the DOH or the COUNTY referenced above. f. "Covered Claims" also includes attorney fees and costs awardable against the DOH, State, and COUNTY for the claims identified in 11 2.a, 2.b, and 2.c, above. 2.4. "Person" means any individual, corporation, association, partnership, agency, joint venture, institution, organization, governmental agency, or other entity, and his, her or its legal Representatives. 2-5- "Representatives" means the past and present directors, officers, agents, servants, employees, shareholders, predecessors, successors, assigns, attorneys, and insurers of the person or entity, including their adjusters and all of their subsidiaries, divisions and affiliates, and their directors, officers, agents, employees, insurers, attorneys, heirs, executors, administrators, Settlement Agreement -3- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiff's, DOTI, County 04/01/02 17:09 FAX 808 587 3077 AG HLTH & HUMAN SERVICES 11010/016 successors, and assignees. In the case of the State, all of its departments, officers, and employees are included, except for the Department of Land and Natural Resources and its officers and employees. 3. RELEASE 3.1. Release. KELLY Plaintiff's do hereby fully release and discharge absolutely and forever from only the Covered Claims DOH and its Representatives and the State of Hawaii and the COUNTY and its Representatives who might be liable to KELLY Plaintiffs and their Representatives for any of the Covered Claims, in whole or in part. 3.2. This Agreement operates as a joint torifeasor release under Hawaii Revised Statutes (1IRS) 663-11 through 663-13, 663-16, and 663-17, and shall operate to reduce, to the extent of the pro rata share of any liability of any of DOH or its Representatives and the State of Hawaii and the COUNTY or its Representatives, or the amount of consideration provided for this release, whichever shall be greater, any damages, judgment or award recovered or recoverable by KELLY Plaintiffs or their Representatives against any other persons who may be adjudged to be joint tortfeasors or joint obligors with DOH or the State of Hawaii and the COUNTY with regard to the Covered Claims only. This release shall operate to relieve the DOH and State of Hawaii and the COUNTY from any and all liability to either make contribution to or provide indemnity to any joint tortfeasor with regard to the Covered Claims only. 3.3. This release is a fully binding and complete settlement with regard to the Covered Claims between the KELLY Plaintiffs and the DOH and its Representatives and the State of Hawaii and the COUNTY and its Representatives. 3.4. The KELLY Plaintiffs acknowledge and agree that the releases and discharges set Settlement Agreement -4- Kelly, Civ. No. 00-1-0192K, 3d CIT. Kelly Plaintiffs, DOH, County 04/01/02 17:10 FAX 808 587 3077 AG HLTH & HUMAN SERVICES Q011/016 forth in this Agreement are general releases applicable to the Covered Claims. KELLY Plaintiffs expressly assume the risk of any and all claims for damages which exist as of the date they execute this Agreement, but of which they do not know or suspect to exist, whether through ignorance, oversight, error, negligence or otherwise, and which, if known, would materially affect their decision to enter into this Agreement. KELLY Plaintiffs further agree that they will "accept the consideration to be given by the DOH and the COUNTY as a complete compromise of matters involving disputed issues of law and fact. KELLY Plaintiffs assume the risk that the facts or law may be other than they may now believe. It is understood and agreed by KELLY Plaintiffs that the settlement is a compromise of a disputed claim and the consideration is not to be construed as an admission of liability on the part of any party, and that liability is expressly denied. 3.5. Warranties. KELLY Plaintiffs represent and warrant that they own the right, title and interest in all claims they are releasing and that they have not assigned or transferred or purported to assign or transfer, voluntarily or involuntarily, their rights, titles or interests in any such claim to any person, including insurance carriers. KELLY Plaintiffs further represent and warrant that: a. KELLY Plaintiffs have consulted with their attorneys regarding the nature and extent of the Covered Claims and regarding the effects of this Agreement, and enter into this Agreement to settle the Covered Claims with their attorneys` knowledge and approval; b. KELLY Plaintiffs presently understand and manage their own affairs to the extent that the law allows, and no court has ever adjudged them to be incompetent to make a valid contract, Settlement Agreement -5- Kelly, Civ. No. 00-1-0192K, 3d Cir• Kelly Plaintiffs, DOH, County 04/01/02 17:10 FAX 808 587 3077 AG HLTH & HUMAN SERVICES U012/016 C. KELLY Plaintiffs have fully informed themselves of all facts material and relevant to their decision to enter into and execute this Agreement, and d. KELLY Plaintiffs understand the contents, nature and effects of this Agreement, and enter into it fully, completely and on their own volition. The Undersigned attorney(s) for the KELLY Plaintiffs acknowledge that he has (they have) advised Plaintiffs of the nature and effect of this Agreement, that he (they) believe KELLY Plaintiffs understand the nature and effect of this Agreement and that the Undersigned attorney(s) believes (believes) that the settlement is fair and equitable to KELLY Plaintiffs and is in the best interest of Plaintiffs. 4. ACTIONS BY DOH AND THE COUNTY and KELLY PLAINTIFFS 4.1. Revision of the County Erosion and Sedimentation Control Ordinance. a. DOH shall provide grant funds up to sixty thousand dollars ($60,000.00) to the COUNTY for the revision of the County Erosion and Sedimentation Control Ordinance (1975) by the executive branch of the COUNTY for proposal to the County Council, conditional upon the COUNTY providing matching funds. b. The payment of grant funds to the COUNTY shall be subject to normal contract provisions and procedures between DOH and its contractors, as they may be modified for this specific project. C. For the revision of the County Erosion and Sedimentation Control Ordinance (1975), the COUNTY shall provide matching funds of up to sixty thousand dollars ($60,000.00), as covered by federal regulation, 40 C.F.R_ § 31.24; in-kind services may count as all or part of matching funds as allowed by the federal regulation. Settlement Agreement -6- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 04/01/02 17:10 FAX 808 587 3"77 AG HLTH & HUMAN SERVICES IM013/016 The COUNTY may use as matching funds the funds arranged by Plaintiffs under section 4.3. The COUNTY commitment here to provide matching funds is conditional upon Plaintiffs arranging for funds as stated in section 4.3 for the section 4.1 ordinance revision or the section 4.2 rainfall map revision or both. d. The COUNTY shall apply to DOH for the grant funds within six months after KELLY Plaintiffs arrange for the payment of funds under section 4.3. This date may be extended upon showing of good cause, e. After executing a contract with DOH for this purpose, the County executive branch shall develop revisions to the County Erosion and Sedimentation Control Ordinance (1975) and in good faith propose the revisions to the County Council within 30 months of executing the contract with DOH. This date may be extended upon showing of good cause. The COUNTY is only agreeing to propose revisions; The County Council is an independent branch of the COUNTY whose laws and procedures must be respected and whose actions cannot be guaranteed. f. Any hiring of a consultant(s) by the COUNTY shall be subject to normal contract provisions and procedures between the COUNTY and its contractors, as they may be modified for this specific project. g. If this project for revision of the County Erosion and Sediment Control Ordinance does not begin, DOII shall return to the COUNTY any funds it has provided for this project, and the KELLY Plaintiffs, DOH, and the COUNTY shall negotiate in good faith to amend this Settlement Agreement. Settlement Agreement -7- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 10/10/02 THU 10:12 FAX. 808 9618630 PUBLIC WORKS . W-J 001 04/01/02 17:11 FAI 808 587 077 AG HLTH A HEIMAN SERVICES 19J 014/016 h. DOH and the COUNTY represent that they have a good faith belief that the total amount of one hundred twenty thousand dollars (5120,000) is sufficient for this project- 4.2. rainfall MaA Revisions. a. DOH shall provide funds for the revision of rainfall maps statewide, conditional upon securing adequate contributory funding from other sources, including the COUNTY. b. The usmsier of'ftds from the COUNTY to the DOH may be subject to ttolmal contract provisions and procedures between DOH and its contractors, as they rsray be moTxGed for this 9pecif a project- c, For the revision ofrableD traps statewide, the COUNTY shell provide ten thousand dollars ($10,000.00) to DOH for this purpose. The COUNTY may use as fuatds the funids arranged by Plaintiffs under section 4.3. The COUNTY commitment here to provide funds to DOH is conditional upon. Plaisttalfs a&mgJn& for funds as stwtcd in section 4.3 for the section 4.T ordinance revision or the section 4.2 rainfall map revision or both. d. DOH shall arrange for the revision of rainfall snaps idthin 24 months after receiving sufl6cieatt funding commitments. This date may be extended upon showing of goad cause. e. If funding is inudequate for statewide revisions, DOH may revise rainfall maps for only the counties that provide funding- f The transfer- of funds from DOH to any contractor preparing the rainfall map Settlement Agreenment -8- Kelly, Civ. No_ 00-1-0192K, 3d Cir. KeUy Plaintiffs, DOH, County ~ - 04/01/02 17:11 FAX 808 587 3(177 AG HLTH & HUMAN SERVICES Q015/016 revisions shall be subject to normal contract provisions and procedures between DOH and its contractors, as they may be modified for this specific project. g. If this project for revision of rainfall maps does not begin, DOH shall return to the COUNTY any funds it has provided for this project, and the KELLY Plaintiffs, DOH, and the COUNTY shall negotiate in good faith to amend this Settlement Agreement. E DOH represents that it has a good faith belief that the total amount of one hundred twenty-two thousand five hundred dollars ($122,500) is sufficient for this project, and that the COUNTY's proposed share of ten thousand dollars ($10,000) is an adequate contribution from DOB's perspective_ 4.3_ KELLY Plaintiffs' contribution_ a. KELLY Plaintiffs shall arrange for twenty-two thousand five hundred and zero/100 dollars ($22,500.00) to be paid to or on behalf of the COUNTY for the sole purpose of assisting the COUNTY to provide matching funds for ordinance revision under section 4- 1, or to provide contributing funds for rainfall maps revision under section 4.2, or both- Any matching funds provided by the KELLY Plaintiffs to the COUNTY that are not used solely for either or both of the purposes in sections 4.1. or 4.2 shall revert to the KELLY Plaintiffs. b_ The actual payment of funds is conditional upon provision of the funds from Oceanside on behalf of KELLY Plaintiffs. c. Payments on behalf of KELLY Plaintiffs may be made directly from Oceanside, its designee, or escrow agent to the COUNTY or DOB. Settlement Agreement -9- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 04/01/02 17:11 PAX 808 587 3077 AG IILTH & HUMAN SERVICES 0 016/016 4.4. DOH shall provide notice on the DOH website of receipt of Notices of Intent (NOI) to be covered by the general permit for storm water associated with construction activity, BAR ch. 11-55, app. C, where more than 20 acres is proposed to be disturbed in the County of Hawaii. DOH shall provide notice within 5 working days of receipt of each qualifying NOI. DOH shall provide this notice until the County revises its Erosion and Sedimentation Control Ordinance under section 4. 1, above, for 5 years, or until DOH amends its rules to provide for such notice or similar notice for the construction storm water general permit, which ever occurs sooner. 4.5. The source of the DOH funding for the above actions is within the State's sole choice. 4.6. This Agreement does not encompass or provide for the payment of any amounts directly to any of the individual KELLY Plaintiffs. 5. ATTORNEYS FEES AND COSTS 5.1. KELLY PLAINTIFFS and the DOB and the State of Hawaii and the COUNTY shall each bear their own costs and attorneys' fees with respect to the Covered Claims dismissed under this stipulation- This stipulation does not address costs or attorneys' fees with respect to any other claims by KELLY Plaintiffs, Defendant DOH, Defendant COUNTY, or any other parties. 6. MISCELLANEOUS 6.1. Dismissal. KELLY Plaintiffs and DOH and the COUNTY shall execute and file all appropriate pleadings dismissing with prejudice KELLY Plaintiffs' Covered Claims against DOH and the COUNTY in the KELLY lawsuit. Settlement Agreement -10- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 04/01/02 18:16 FAX 808 587 3n77 AG HLTH & HUMAN SERVICES U002/020 6.2_ Hawaii Law and Enforcement. This Agreement shall be subject to, governed by, constituted, and enforced pursuant to the laws of the State of Hawaii, and in the courts of the State of Hawaii. 6.3. Further Documents. The Undersigned Parties shall execute any further documents that any of the other parties may reasonably request in order to carry out the provisions of this Agreement. 6A. Modification. This Agreement shall not be altered, amended or modified except by writing duly executed by all of the Undersigned Parties or their successors in interest. 6.5. Warranty of Authority. Each person signing this Agreement warrants and represents that he or she has authority to sign on behalf of himself or herself or of the entity that he or she represents and that this Agreement has been validly authorized and constitutes a legally binding and enforceable obligation of each Undersigned Party. 6.6. Defense and Indemnity. For the consideration recited in this Agreement, KELLY Plaintiffs agree to defend, indemnify, and forever hold harmless DOH and the State of Hawaii and their Representatives and the COUNTY and their Representatives against any and all actions and liens arising from claims for that have been or could be asserted arising out of or connected with the Covered. Claims in this case. Plaintiffs expressly agree to defend and indemnify DOH and State of Hawaii and their Representatives and the COUNTY and their Representatives against any such claims that have been or could be asserted. 6.7. No Representation. Each Undersigned Party acknowledges that no promise, agreement, fact or opinion not expressed herein has been made by or to them to induce this Agreement and that this settlement is made with full knowledge of the facts and possibilities of the Settlement Agreement -H- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 04/01/02 18:16 FAX 808 587 377 AG HLTH & HUMAN SERVICES C17j003/020 subject matters of this Agreement and with advice of counsel. 6.8. Entire Agreement. This Agreement contains all of the terns agreed upon between the Undersigned Parties and supersedes and cancels each and every other conflicting Agreement, promise and/or negotiation between them. 6.9. Section and Paragraph Headings. The section and paragraph headings in this Agreement are inserted solely as a matter of convenience and for reference and in no way define, limit, describe or affect the scope or intent of any provision of this Agreement- 6.10. No Admission of Liability. This Agreement and each of its provisions and the implementation of this Agreement shall not be construed as an admission by the DOH or the State of Hawaii or any of its Representatives or the COUNTY any of its Representatives of any fault, wrongdoing, negligence, willful misconduct, or liability of any kind whatsoever, and this Agreement is entered into solely as a compromise and to avoid further litigation, controversy, costs, and expense. 6.11. Interpretation. The terms of this Agreement have been negotiated at arm's length among parties represented by experienced counsel. As a result, the rule of "interpretation against the draftsman" shall not apply in any dispute over interpretation of the terms of this Agreement. 6.12. Gender. The use of "his," "her," "its," and similar words is not intended to be gender-specific and each of such words includes the others. 6.13. Severability. If any part, term, or provision of this Agreement is held by any court of competent jurisdiction to be illegal or in conflict with any laws of the State of Hawaii or the United States of America, the validity of the remaining provisions shall not be affected, and the rights and obligations stated in this Agreement shall be construed and enforced as if the Settlement Agreement -12- Kelly, Civ. No. 00-1-0192K, 3d CIT. Kelly Plaintiffs, DOH, County 04/01/02 18:16 FAX 808 587 3n77 AG HLTH & HUMAN SERVICES 0)004/020 Agreement did not contain the particular part, term, or provision held invalid. 6.17. Acknowledgement. After completion of its duties under section 4, any party to this Agreement may seek written acknowledgement from the other parties that it has completed those duties under this Agreement. Such acknowledgement shall not be unreasonably withheld- 6.18. Counterparts. This Agreement may be executed in any number of counterparts by any party to this Agreement, each counterpart of which shall be deemed as an original, but all of which together shall constitute one and the same instrument. Each party shall execute and provide an original counterpart to every other party released hereby. Unsigned duplicate pages may be discarded to form a single document- DATED 2002. WALTER HN KE , DATED: Hawaii, ZZ, 2002. C ES ROSS FLA ERTY, . DATED- &101- Kong , Hawaii, dl?A) 2002 PATRICK M.CUNNINNG , Settlement Agreement -13- Kelly, Civ. No. 00-1-0192K, 3d Cit. Kelly Plaintiff's, DOH, County _ _ 04/01/02 18:17 FAX 808 587 377 AG HLTH & HUMAN SERVICES C~J005/020 DATED t(rAA - 000F3 Hawaii, INN fit{ 12002, ~ J/A, - MICHELLE CONSTANS WILKINS APPROVED AS TO SUBSTANCE AND FORM: QI--- ROBERT D.S. KIM Attorney for KELLY Plaintiffs DATED: Honolulu, Hawaii, 2002. STATE OF HAWAII By EARL 1. ANZAI Its Attorney General DATED: Honolulu, Hawaii, )2002. DEPARTMENT OF HEALTH BRUCE S. ANDERSON for the Department of.Heahh and as Its Director of Health APPROVED AS TO FORM: HEIDI M. RIAN LAURENCE K. LAU Deputy Attorneys General Settlement Agreement -14- Kelly, Civ. No. 00-I-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 04/01/02 18:17 FAX 808 587 3077 AG HLTH & HUMAN SERVICES 1~?006/020 DATED: Hawaii, 2002. MICHELLE CONSTANS WILKINS APPROVED AS TO SUBSTANCE AND FORM: ROBERT D. S. KIM Attorney for KELLY Plaintiffs f. Atzs rl DATED: Honolulu, Hawaii, 12002. STATE OF HAWAII By EARL I. ZAI Its Attorney General DATED: Honolulu, Hawaii, JAN 1 5 2002 , 2002. DEPARTMENT OF HEALTH BRUCE S. ANDERSON for the Department of Health and as Its Director of Health APPROVED AS TO FORM: / *D1 M_ RIAN " AURENCE K. LA Deputy Attorneys General Settlement Agreement -14- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County 04/01/02 18:17 FAX 808 587 3077 AG HLTH & HUMAN SERVICES Q007/020 DATED: Hilo, Hawaii, , 2002. COUNTY OF HAWAI7_ B HARRY Its Mayor DATED: Hilo, Hawaii, Leh Z~ 12002. G CHRISTOPHER Planning Director County of Hawaii DATED: Hilo, Hawaii, Fes` t , 2002_ ]c - w . o, DENNIS LEE Chief-Enagincerand Director of Public Works County of Hawaii APPROVED AS TO SUBSTANCE AND FORM: GERALD TAKASE MICHAEL T. KAdAMI Deputy Corporation Counsel SETTLEMENT, RELEASE, AND DEFENSE AND INDEMNITY AGREEMENT, Walter John Kelly et at_ v. 1250 Oceanside Partners, et al_, Civ. No. 00-1-01 92K, 3d Cir. Settlement Agreement -I5- Kelly, Civ. No. 00-1-0192K, 3d Cir. Kelly Plaintiffs, DOH, County