C I T Y A N D C O U N T Y O F H O N O L U L U
715 SOUTH KING STREET, SUITE 211, HONOLULU, HAWAII 96813-‐3091
Phone: (808) 768-‐7786 Fax: (808) 768-‐7768 EMAIL: email@example.com
KIRK CALDWELL CHARLES W. TOTTO
MAYOR EXECUTIVE DIRECTOR & LEGAL COUNSEL
DATE: APRIL 29, 2014
TO: KIRK CALDWELL, MAYOR
ERNIE MARTIN, CITY COUNCIL CHAIR
CITY COUNCIL MEMBERS
CC: DAN GRABAUSKAS, EXECUTIVE DIRECTOR & CEO, HONOLULU
AUTHORITY FOR RAPID TRANSPORTATION
EDWIN YOUNG, CITY AUDITOR
DONNA LEONG, CORPORATION COUNSEL, DEPARTMENT OF
MICHAEL FORMBY, DIRECTOR, DEPARTMENT OF
ROGER MORTON, PRESIDENT & GENERAL MANAGER, OAHU
TRANSIT SERVICES, INC.
FROM: CHARLES W. GALL, CHAIR, HONOLULU ETHICS COMMISSION
RE: EC No.13-527, ETHICS COMMISSION JURISDICTION
This memorandum addresses the administration of Article XI, Standards of
Conduct, Revised Charter of Honolulu in order to foster and maintain ethical conduct.
pursuant to ROH Sec. 3-6.3(f). We ask for your support in anticipation of the
Commission introducing legislation this year which will include amending the definitions
-101 or ROH Secs. 3-6.11, 3-8.1, to
expand the applicability of the ethics laws to individuals that are currently not within the
ethics laws only apply to elected or appointed officers or
employees of the city.1
We ask for your support in expanding the applicability of the
operations and how tax payer dollars are spent, but have minimal or no accountability
under the ethics laws for their actions.
Such individuals include:
Employees of an instrumentality to the city
such as Oahu Transit Service 2
that provide city staff augmentation such as those
Individuals who are not city employees that have significant involvement
with city works, fiscal authority, and discretionary power such as the
HART subcontractor who used inappropriate political and editorial
content in his pro-rail blogs6
Over the last several years, the Ethics Commission has faced an increase in
complaints of unethical conduct by these individuals (collectively referred to as
. Complaints include unauthorized access to confidential city
information, nepotism, and use of taxpayer dollars for political purposes. Commission
staff usually performs at least a preliminary investigation into these allegations to
determine if there were city officers or employees who contributed to the misconduct.
Despite finding probable ethics violations committed by these uncovered individuals, the
Ethics Commission staff is unable to bring these matters before the Ethics Commission
because of a lack of jurisdiction.
See RCH §§ 11-102.1(c), 11-103; 11-104.
ROH Sec. 13-8.3(a) provides: In accordance with Sections 13-8.1, 13-8.2, 13-6.2, and 13-4.1,
Department of Transportation Services shall contract with the private, nonprofit corporation to manage,
operate, and maintain the city bus system and special transit service on behalf of the city and shall be an
independent contractor in relation to the city and shall be deemed an instrumentality of thecity for
appropriatepurposesother than for labor and employment purposes.
the City Auditor, Audit of the Honolulu Authority for Rapid Transportation (HART) Public Involvement
Programs, Report No. 13-03 (Dec. 2013) at 25. Report No. 13-03, Appendix B (see discussion of
InfraConsult II and InfraConsult III contracts).
See Memo to N. Koyanagi from L. Kahikina re ROH Sec. 2-18.6 Line Item Details - Operating Budget for
Fiscal Year 2014 (Feb. 22, 2013) (Object Code No. 3006 - Staff Augmentation $100,000; Object Code No.
3049 - Staff Augmentation $2,500,000)
Report No. 13-03, Appendix B (see discussion of InfraConsult II and InfraConsult III contracts).
Office of the City Auditor, Audit of the Honolulu Authority for Rapid Transportation (HART) Public
Involvement Programs, Report No 13-03 (Dec. 2013) at 17-19.
These uncovered individuals should be held accountable to the public because
they are being paid for by millions of tax payer dollars, function as if they were city
employees, and have significant influence over city operations.7
enforcement and administration of the s ethics laws will protect the public against
conflicts of interest, self-dealing and preferential treatment influencing government
To that end, we look forward to discussing these matters with you in the near
See Memo to N. Koyanagi from M. Formby re Budget Communication No. 1 Operating Budget for Fiscal
Year 2014 (Feb. 18, 2013) (Object Codes for OTS items 3070 et seq. is over $66 million); Office of the
City Auditor, Audit of the Honolulu Authority for Rapid Transportation (HART) Public Involvement
Programs, Report No 13-03 (Dec. 2013) at 24-25, 29-30.