Maui County committee recommends special‑counsel hires and several settlements, including Lahaina NPDES counsel request

The Maui County Government Relations, Ethics and Transparency Committee voted at its June 2 meeting to forward multiple items to full council, including requests to retain outside counsel for litigation and permit negotiations and recommendations to settle a series of claims.

The committee voted unanimously among members present to recommend hiring special counsel in three matters: (1) Marjones & Wang LLP to represent the county in pre‑litigation and litigation negotiations related to a claim by a former county employee (resolution 25‑109), (2) Kobayashi, Sugita & Goda LLP to represent County Auditor Lance Taguchi in a complaint filed with the state Department of Commerce and Consumer Affairs (resolution 25‑120), and (3) Beveridge & Diamond PC to assist the Department of Environmental Management with negotiating the National Pollutant Discharge Elimination System (NPDES) permit for the Lahaina Wastewater Facility (resolution 25‑121). The committee also recommended settlement authority for three claims (resolutions 25‑116, 25‑110 and 25‑99) and noted the cancellation of four other resolutions earlier in the agenda.

Why it matters: the Lahaina NPDES permit is the first permit of its kind for an injection‑well‑based wastewater facility in the county, and county attorneys told the committee the second draft released by the State Department of Health contains requirements the county’s wastewater system may not be able to meet under current technology. That concern, county attorneys and Department of Environmental Management staff said, is the primary reason for seeking specialized counsel to negotiate a workable permit.

Special‑counsel requests and rationale

Corporation Counsel Victoria Takayasu asked the committee to amend resolution 25‑109 to authorize Marjones & Wang LLP for both "pre‑litigation negotiations" and "litigation," saying, "we do believe litigation will be forthcoming." The amended resolution authorizes retention of Marjones & Wang for a total compensation not to exceed $350,000; the committee recommended it for full council.

On resolution 25‑120, deputy corporation counsel John Gores explained the county’s office had determined it was disqualified from representing County Auditor Lance Taguchi on matters brought by Christopher Salem and asked the committee to appoint Kobayashi, Sugita & Goda LLP, which already represents the county in related Second Circuit Court proceedings. The committee recommended that item for full council.

On the Lahaina NPDES matter (resolution 25‑121), corporation counsel and Department of Environmental Management staff described the permit process to the committee. Corporation counsel said the county "applied for that permit" and that the Clean Water Act‑based NPDES permit is administered by the State Department of Health; she described the second draft as imposing "restrictions which might be impossible under current technology for the county wastewater facility to meet." Director Shane Agawa told the committee the draft is "so stringent ... if it passes as is we will be in violation from day 1." The committee voted to recommend retention of Beveridge & Diamond PC with compensation not to exceed $250,000 to assist negotiations with the state.

Settlements and claims

The committee recommended settlement authority for several claims and lawsuits; in each case the committee first met in executive session and then voted in open session to forward the recommendation to full council. Highlights:

- Resolution 25‑110 — a claim arising from a Feb. 8, 2024, Kihei water‑main break: the filed claim amount was listed in the record as $70,395.73; the county attorney reported a "tentative negotiated settlement" of $4,545,291.47 and asked the committee to recommend settlement authority. The committee moved the item to full council (vote recorded as 7 ayes, 0 noes, 2 excused).

- Resolution 25‑116 — a subrogation claim by an insurer arising from a Dec. 19, 2022 tree fall: the county attorney asked that settlement negotiations and details be discussed in executive session; after executive session the committee recommended the settlement authority be forwarded to full council (vote 8 ayes, 0 noes, 1 excused).

- Resolution 25‑99 — a claim filed May 13, 2024, alleging gender discrimination, retaliation and whistleblower retaliation by a former Maui Police Department business administrator: the committee met in executive session to review settlement efforts and legal risks and then voted to forward the resolution to full council (vote 8 ayes, 0 noes, 1 excused). No settlement amount was disclosed in the public record.

Cancellations and public testimony

Before opening testimony, the committee announced the withdrawal of four resolutions from the agenda — resolutions 25‑95, 25‑96, 25‑97 and 25‑98 — at the request of corporation counsel; the chair said the Office of Information Practices advised the committee it may remove items from the agenda and that oral testimony should not be accepted for canceled items. The committee took oral testimony on other items; speakers included Kula resident J.C. Long, a representative identifying as the Royal House of Hawaii, and resident Corey Noah, who testified on water and related community concerns.

What happens next

All of the recommended items will be scheduled for consideration by the full Maui County Council. Several items required and received executive‑session review under Hawaii Revised Statutes sections 92‑5(a)(4) and 92‑5(a)(8); summaries were provided in open session as required by HRS 92‑4(b) (Act 19, 2023).

Ending note: the committee completed its business and adjourned at 4:07 p.m.