HomeMy WebLinkAboutREP FC 421 08/13/1991 �.-°` REPORT OF THE
COMMITTEE ON FINANCE
Date: August 13, 1991 Re: Comm. 2734
Place: Councilroom
Time: 10 : 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No . 356-91, reports as follows :
The purpose of Resolution No . 356-91 is to authorize retention of
law firm Paul Johnson Park & Niles to represent the County before
the Public Utilities Commission (PUC) in proceedings requiring
energy utilities in Hawaii implement integrated resource planning
(IRP) and to compensate said law firm $12, 044 . 00 for their services .
Communication No . 2734 , from Corporation Counsel, dated July 25,
1991, transmits said Resolution No . 356-91 and copy of proposed
contract and Corporation Counsel ' s letter to Mayor Inouye dated
June 14 , 1991, recommending approval of contract .
The PUC, through Docket No . 6617, instituted a proceeding to require
energy utilities in Hawaii to implement IRP. On May 31, 1990,
pursuant to PUC Order No. 10651, the County of Hawaii was granted
the right to intervene and become party to said proceedings
instituted through Docket No . 6617 .
Your Committee understands that the subject IRP hearing commenced in
April and ended in July 1991. In June 1991, Maui County was paying
for the services of their attorney, who in fact was advocating the
neighbor island position on IRP. Subsequently, representatives of
the affected neighbor islands met and agreed to reimburse Maui
County to the extent of their "fair share" . The amount owed by the
County of Hawaii and reflected in Resolution No . 356-91 is
$12, 044 . 00 .
Your Committee was informed the services of special counsel were
unique, unusual, technical and professional in nature and
accordingly did not admit of competition. As the evidentiary
portion of proceeding has closed, the PUC will issue an order
shortly and the County of Hawaii will directly be involved in Big
Island IRP activities . At that point, your Committee was informed
the Corporation Counsel can represent the County.
Section 5-2 . 5, Hawaii County Charter, states the Council may, by
two-thirds vote of its entire membership, authorize the employment
of special counsel for any special matter presenting a real
necessity for such employment . Any such authorization shall specify
the compensation, if any, to be paid for said s vices .
iC KEPORT N0, 421
ADOPTED: AUG 21 1991
FC- 421 Page 2 August 13, 1991
During its meeting, Finance Committee members were informed by the
Corporation Counsel that he had wrongly assumed the said payment of
$12, 044 . 00 was a reimbursement and later discovered it actually
represented retention of special counsel which required Council
approval . Therefore, the after-the-fact resolution and
communication under Committee review are presented now rather than
earlier.
He also informed members that the County energy coordinator had
participated in said hearings and performed much of the necessary
"legwork" to prepare the County for IRP. Regarding legal services,
he stated that a total of $33, 000 in legal fees, plus cost expenses
had been paid to the aforementioned attorney representing Maui
County and the amount of $12, 044 . 00 owed by the County of Hawaii was
actually a reimbursement for services and expenses paid by Maui
County.
Your Committee voted to amend Resolution No . 356 to reflect a
reimbursement of $12, 044 . 00 to Maui County rather than payment to
the law firm Paul Johnson Park & Niles .
Your Committee on Finance is in accord with the intent and purpose
of Resolution No. 356-91, Draft 2, and( recommends its adoption.
,171/4/ /1 ,
aer°�-
HELENE H. HALE, 'CHAIRWOMAN
ROB RT H. MAKUAKANE, VICE CHR. BRIAN J. DE LIMA, ER
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TAKA HI DOMINGO, MBER MERL K. LAI, MEMBER
ORAIA— ■, r: �i
HARRY S. DDLE, MEMBER Pwr R K. SCHUTTE, MEMBER
POL