City Councilwoman Rene Mansho sits in a committee meeting this morning after resigning from the council. A grand jury had been scheduled today to examine allegations that she misused her staff and campaign funds. She planned to serve out the rest of today. Richard Ambo • The Honolulu Advertiser

At least 10 current and former Mansho employees were summoned to appear before the grand jury, according to several of the employees. Some of the workers were told by investigators that the charges under consideration included theft and forgery.

Mansho's resignation comes four months after Councilman Andrew Mirikitani retired following his conviction on theft, bribery and related charges in connection with a kickback scheme.

In a letter to City Council Chairman John DeSoto and the rest of the Council, Mansho wrote: “It is with deep regret that I am taking this step.”

She added, “to my constituents and colleagues, I apologize for having to leave under these circumstances and genuinely thank them for their many years of support.”

After she turned in her resignation, she paused in her office. She told reporters: “I’m very sad that this had to happen.”

She then plunged into the regularly scheduled Council Budget Committee and planned to serve out the rest of the day. “I’m going to take care of my Council duties,” she said.

Mansho, 52, has been a colorful figure at City Hall for many years. Her effusive greetings of “aloha,” bright dresses and habit of driving around town in an electric car all brought her attention.

DeSoto said he was sad that Mansho’s actions forced her to resign. He said the council’s main task now is clear: “We need to find a replacement.”

Last week, the city prosecutor subpoenaed personnel records and other city documents kept by the City Council staff as part of the investigation into Mansho's case.

Deputy City Prosecutor Randy Lee this morning declined to comment on the next legal step his office might take. Some of the subpoenas issued by prosecutors referred to a police investigation of fraud allegations against Mansho.

Mansho has been under scrutiny for various ethical lapses for more than a year. Three government agencies, including the FBI, have investigated charges that Mansho misused her political office and campaign money.

Last March, Mansho agreed to pay $40,000 to end a city Ethics Commission probe into her activities. The amount covered reimbursement to the city for the misuse of her staff’s time

The commission's report said its staff estimated that Mansho’s use of her city staff added up to $148,000 worth of city time spent on non-city work such as her campaign and greeting cruise ships to re-create the nostalgic dock arrivals with Aloha Boat Days.

Mansho was also fined $40,000 by the state Campaign Spending Commission as part of a settlement that ended a probe into violations of state campaign spending laws.

Mansho and her attorneys have maintained that her intentions were good.

Meanwhile, the Hawai‘i Supreme Court has asked the City Clerk’s office to conduct certification of an impeachment petition against Mansho to determine if it contains the legal minimum of 1,000 valid signatures.

That citizens’ petition drive grew out of increasing frustration among residents in her Waipio-Mililani-North Shore district.

Mirikitani, the only council member and the highest-ranking elected official in Hawai‘i to be indicted on federal felony charges while in office, was convicted for offering two bonuses to two of his then-council aides if they kicked back a share of the money to him.

He is serving 41/4-year sentence for public corruption in a federal prison in Las Vegas.