New City Council opens a tough year today

By Treena Shapiro
Advertiser Staff Writer

Today's first meeting of the new City Council will be short and ceremonial, but the nine members can count on long days ahead when they confront immediate problems such as an overflowing landfill, controversial leasehold conversion law and budget deficit that could top $200 million.

New Honolulu City Council members

Mike Gabbard Wai'anae, 'Ewa

Donovan Dela Cruz Wahiawa, North Shore, 'Ahuimanu

Barbara Marshall Kane'ohe, Kailua, Waimanalo

Charles Djou Waikiki, Kaimuki, Hawai'i Kai

Rod Tam Kalihi Valley, Nu'uanu, Kaka'ako

Nestor Garcia Waipahu, Mililani, Makakilo

Returning members

Gary Okino Pearl City, Waipi'o, Shafter

Ann Kobayashi Makiki, Manoa, Kapahulu, Palolo

Romy Cachola Aliamanu, Airport, Kalihi

All were elected to two- or four-year terms based on whether their district number was odd or even. Gabbard, Marshall, Kobayashi, Cachola and Garcia will serve two-year terms; Dela Cruz, Djou, Tam and Okino will serve four-year terms.

It's all business after that. Gary Okino (Pearl City, Waipi'o, Shafter), who is expected to be voted in as new chairman at the first meeting, said that with the first set of committee meetings beginning Jan. 13, "We're just going to try to address stuff that's already in the pipeline."

Okino puts the impending budget crisis at the top of the list, although the mayor will not be sending his budget down until the beginning of March.

Last year, the council anticipated a $159 million deficit, he said, but because of Employees' Retirement System losses and a lawsuit from the State of Hawai'i Organization of Police Officers over a new law that changes the retirement system, "It will be at least $20 million more, maybe as much as $90 million."

With the assessed value of real properties on O'ahu up 6.64 percent this year, the city can anticipate more revenue from property taxes, but it will be "much too little," Okino said. "We're lucky if we get $10 million."

Okino already has announced the likelihood of raising property taxes to reduce the deficit, although several incoming members vowed during their campaigns to avoid raising taxes. He said it was unrealistic to look at cutting services, because that would require cutting 20 of 27 city departments.

"If you assume you're not going to cut police, fire, sewers or transportation ... , that means you gotta cut everybody else, including the mayor and the City Council," he said.

Okino said he had not surveyed other council members to see whether they supported a tax hike, but did not see how it could be avoided.

Charles Djou, who has said repeatedly that he wants to balance the city budget without raising taxes or increasing debt, said raising taxes could put Hawai'i back in the economic slump it faced in the 1990s. He said he continues to oppose a tax increase, "however difficult and however big and however momentous the budget deficit is."

Ann Kobayashi, budget committee chairwoman, said she hoped the council would be able to work cooperatively with the administration to solve the city's financial problems instead of continuing the contentious relationship that began during the 2002 budget season.

"Last time, the administration kept saying the city was in great financial state, but our numbers that we got from them showed differently," Kobayashi said.

Among the key issues facing the council:

• Leasehold conversion

In the last several months, the council has faced controversy over its law that compels landowners to sell qualified condominium owners the fee interest in the land under their units at a price set by the court. Landowners and other opponents of the 1992 law are expected to continue to lobby for a repeal, and Kamehameha Schools has filed a lawsuit in Circuit Court over the council's decision to condemn its Kahala Beach Apartments property at the Dec. 4 meeting.

Romy Cachola, who will lead the executive matters committee taking up the issue, said: "The 'leasehold conversion to fee' controversy is not going to go away. People are looking at finding a middle ground and possible compromise, and the bottom line, as far as I'm concerned, it has to be based on fairness ... to landowners, lessees and taxpayers."

As to whether the bill will be repealed entirely, he said: "I doubt it. It depends on what will come out in the research studies and hearings."

• Waimanalo Gulch landfill

Waimanalo Gulch, the city's sole landfill, reached capacity in September and was granted an emergency extension that is expected to run out in spring, and council members will have to decide whether to expand H-Power, build a plasma arc facility or find an alternative site for a landfill.

"We can't keep expanding this landfill and piling the trash in Wai'anae," Kobayashi said.

She said the city should look to plasma arc technology, which uses a gasification and vitrification process to convert trash into gas and "glassphalt," which can be used as a building material.

"Two companies offered to build and manage the plant at their expense. I don't know why we're not saying go ahead. If it doesn't work, we don't lose anything," Kobayashi said.

Djou suggests that it also could be a good time to take a close look at municipal operations and the possibility of privatizing curbside trash pickup.

• Bus Rapid Transit

The returning council members were present when the council approved money for the first phase of the city's Bus Rapid Transit system. Kobayashi was the only vote against it, but all three now express reservations about paying for further phases.

"I don't think we should give them any more money at this point until we see Phase 1," Okino said. "Let's spend that money and see how the system works."

Kobayashi, who said the city needs to bring relief to commuters from Central O'ahu and Wai'anae, supports a rail system on the medial strip of the freeway, which she sees as more likely to get drivers out of their cars.

Cachola, on the other hand, proposes a ferry system from 'Ewa to Aloha Tower, with a people-mover rail system into Waikiki that perhaps could be dovetailed into the BRT system to cut down costs.

"We've spent so much money already in terms of looking into the BRT," Cachola said. "I think we should look at it and see if there are some ways to improve it."

Reach Treena Shapiro at tshapiro@honoluluadvertiser.com or 525-8070.