This afternoon Ivantatum left me a phone message saying Hilo attorney Ted Hong held a press release at 1:30 p.m. to announce HMP, Inc. filed a lawsuit against the County of Hawaii. I called Ted Hong’s office, but he wasn’t in. I relayed to the information I had from Ivantatum to Ted’s secretary and she indicated there had been a press conference. I asked that Ted Hong email me his press release.
At 3:55 p.m., I received a press release from Kevin Dayton, the mayor’s executive assistant, announcing the county’s response to the lawsuit. Here is that release.
Then, at 4:14 p.m., I received this email from Ted Hong:
There are a couple of points I made in the press conference:
1. Our damages are over $60k;
2. This isn’t about the Kenoi Administration. All the acts occurred during the last administration. We’re only asking that the Kenoi Administration look at our complaint fairly.
3. We were treated unfairly from the beginning in this matter. It started with Jim Quirk’s (West Hawaii
HMP, Inc. is engaged in a procurement dispute with the County of Hawaii, regarding tack coat oil for Saddle Road repaving
Today) articles last summer about how road projects in Kona were being delayed because of a faulty product from my client. (See background story here.) Turns out the issue of the quality of my client’s product only came up AFTER my client saw and complained that the County was violating the contract they had with him to purchase the product in question. In fact, the company that the County was buying the product from didn’t even submit a bid for the product. Take a look at Exhibit 2 to the Complaint, the last three pages. That’s the bid recap sheet that shows you who bid what for which product.
4. Look at the second group of documents, the press conference handouts. Notice the County’s settlement offer dated October 17, 2008 and the amount of $33k. Jump to the last page which is a Grace Pacific invoice dated August 27, 2008. Notice the amount there, $31k.
Why that is significant is that our damages are over $60k. If you look at the “Delivery Receipts” that begin on August 5, 2008, No. 07303, which are 5 pages before the invoice. These receipts reflect how many gallons of the Grace Pacific product were used by the County. If you notice to the right above the signature line is a number followed by the word “actual.”
That “actual” number was written in sometime later by someone unknown to us and is half of what was originally recorded as being used. So if you multiply by two, each of the “actual” amounts that appear on the invoice, or take the originally recorded amounts before the “actual” number was written in, it roughly doubles the cost of product to total out to over $60k, which is what my client’s damages are.
The point being is that the County or someone was fixing the numbers after the fact to cover up the real cost of the material and bring it in line with what would have been spent originally. In other words, the County may have cooked the books in an effort to show “No harm, no foul.” The cost for using Grace Pacific plus the cost of paying off my client totals to the same amount as if the county used one supplier. Our goal is to expose how that number was deliberately and intentionally manipulated to reduce the county’s liability.
If you have any questions, call me —
Thanks for your interest,
Ted”
Re-read that last part: “Our goal is to expose how that number was deliberately and intentionally manipulated to reduce the county’s liability.”
If that is the case with this procurement dispute, we are witnessing a exposé in local government corruption, of the sorts Ivantatum has spoken about on this very blog.
If these allegations are true, perhaps let’s just hope this is going to nip the corruption in the bud. I want to be optimistic that our new mayoral administration is working hard to root out any abuse of power.
In the last couple of days, one of Big Island Chronicle’s readers emailed asking me to interview Ivantatum with “an anonymous ‘witness protection’ style of interview” to shed light on alleged abuses of power in the county.
“I believe the current administration is working hard to root out abuses of power, but at the same time has to lead the county government employees forward which is easier if they have their support…tightrope high wire act to say the least!” the reader wrote me.
”Getting these type of alleged abuses of power out in the open would lead to a faster elimination of future abuses of power I think….maybe a unique opportunity for the blog (online news-site) media? Rooting for a cleaner, more efficient county government for the County of Hawaii!”
I too am a cheerleader for a cleaner, more efficient county government. Let’s let this HMP, Inc. Versus County of Hawaii story unfold.
July 10th, 2009 at 10:01 pm
Cool.
July 10th, 2009 at 10:19 pm
Tip of the iceberg.
July 10th, 2009 at 10:25 pm
Hi Ivan: Do you allege a racial component with HMP’s lawsuit?
July 10th, 2009 at 10:53 pm
No one is alleging racism, for now, but if you read the WHT article on HMP issue in December (above), Stanley Nakasone, PW Highways Maintenance Head says, “I’d love to comment” on story but was told not to by Corporation Counsel. But, as of recently, county employees and another jouranlist are saying Nakasone was reprimanded by new Director of Public Works, Warren Lee,, a few weeks ago over this issue of ignoring the RFP and giving the contract to Grace Pacific without following proper procedures. He, allegedly, acted on his own. This issue occurred under Harry Kim and Bruce McClure, and it is not the fault of the new administration. But, my understanding is that there was federal money granted for this tack coat application and it is not a good idea to not follow the rules when it comes to funding the county is getting from the feds. It could be hazardous to your freedom and liberty to not play by the rules when it comes to federal money.
And, I have talked about this in other posts, if the Lee has already disciplined Nakasone for this, there is liability on county’s part.
And, this not the only issue Nakasone is alleged to be involved in.
July 10th, 2009 at 11:10 pm
I know Ted Hong Esquire as an honest and decent man. I know he defended me against a bunch of unfair allegations by the FORMER Principal of Waiakea H.S. He was never rude or sensational. When I was defamed by The HTH and my former department head he just sent them a letter explaining the law. His only real problem was keeping my temper in check. If I was Mr. Ashida I would be very careful about slandering Ted Hong Esquires’ motives. I’d be more scared to meet him in the Court Room. Considering he held Mr Ashidas present position prior to Lincolns ascension to the throne. Ted just might know a bit more about the County then what will make them happy.
July 10th, 2009 at 11:14 pm
“Ivan Tatum”…
I have a couple questions I’d like to ask you.
Can you please email me off Tiff’s blog at damontucker@yahoo.com
Mahalo…
Damon Tucker
July 10th, 2009 at 11:18 pm
Sorry. Post a phone number.
July 11th, 2009 at 7:03 am
Hi Ivan: Thanks for your heads-up. Always grateful, –Curt
July 11th, 2009 at 7:11 am
Oh, when you look at Stan Nakasone, he looks Hawaiian. Nothing insinuated here, just an observation. Thanks again, Ivan, for your correct assertion on the racial question about HMP’s lawsuit. Love, –Curt
July 11th, 2009 at 8:10 am
The county has admitted that “the official who authorized this has been disciplined” (or reprimanded) but Linclon Ashida states,”the lawsuit is both week in law and facts.”
Can someone, above my pay grade explain, how the county can reprimand an employee for this very issue claimed in the lawsuit (breach of contract and state procurement violation) and than claim no liability on their part?
July 11th, 2009 at 8:34 am
[...] Hawaii Economy, Hawaii Planning, Hawaii Politics, Hawaii Transportation. trackback The Hawaii County DPW asphalt tack coat scandal has reared its ugly head again. HMP Inc has filed a lawsuit in regards to this on Friday. It seems [...]
July 11th, 2009 at 11:46 am
Tiff …
I think we all know the DPW fears bloggers because they can’t control us the way corporate dollars control newspapers.
Thus we had Noelani pulling the “Don’t Tell Bloggers” card earlier this year.
July 11th, 2009 at 11:48 am
Ivantatum,
I do not give my number out on public boards.
I can email you my number if you would like to talk to me.
My simple question I want to clarify for my own interest… is what County Council District do you live in?
July 11th, 2009 at 12:40 pm
Some of what we have from the DPW of the last Administration:
‘Skip-the-RFP’ procurement.
Lots of budget over runs.
The most dangerous roads in the state.
+++
Thank you, Mr Lee, for reprimanding the employee.
Please do everything you can to run DPW honestly so as to serve the interests of the people of this island.
July 11th, 2009 at 12:50 pm
I live in Onishi’s district.
And I had problems with Noelani on an issue with PW. She is an excuse maker and apologist for McClure and the county. She tried “heavy-handing” me on an issue and when I went down to PW works to show her some very incrimnating pictures of her departments selective enforcement of codes, she panicked. The FBI agent I talked asked me if I thought she would cooperate with their investigation I told him she is like a “pancake”, flipping back and forth. I don’t trust her.
E-mail it to me ivavtatum@gmail.com.
July 11th, 2009 at 12:51 pm
Excuse me, ivantatum@gmail.com
July 11th, 2009 at 1:13 pm
[...] vapid activities of the American bar? -0- (Nancy Cook Lauer’s West Hawaii Today article on HMP, Inc. Versus County of Hawaii follows.) “A company whose paving contract with Hawaii County was ignored in favor of another [...]
July 11th, 2009 at 10:50 pm
[...] lives and reputations but you don’t take offense to them. This the same paper that never covered the HMP controversy for over 9 months even though it is a Hilo company, doing business on the Hilo side of saddle road [...]