Hanauma fee dispute's legal bill to hit $275,000
By Johnny Brannon
Advertiser Staff Writer
Lawyer bills stemming from a dispute over fees the city charges non-Hawai'i residents who visit the Hanauma Bay Nature Preserve are expected to cost Honolulu taxpayers at least $275,000.
But the city is confident an appeals court will uphold an earlier ruling in the city's favor, and Mayor Jeremy Harris has proposed to increase the admission fee from $3 per person to $5.
The federal lawsuit was filed in 2001 by California resident Carol Daly, who claimed that the fee violated the U.S. Constitution by discriminating against people on the basis of their residency.
U.S. District Judge Alan Kay rejected Daly's claim last year, saying it was appropriate for Hawai'i residents to visit the popular beach and snorkeling spot for free because they pay for its operations through taxes.
Daly is appealing the decision, however. The city has spent about $250,000 on private attorneys to handle the original suit and the appeal, and city lawyers expect the case to cost at least $25,000 more.
The admission fees generate $2.1 million per year, helping to pay for the park's operation and for improvements, such as a new visitor education center. Daly is the mother-in-law of a member of the community coalition that had challenged the education center.
Kay ruled that the money should not pay for expenses unrelated to Hanauma Bay.
The city has charged the admission fees since 1995, and the proposed increase is expected to bring in an additional $1.4 million each year. Some City Council members object to the fee hike, but city finance officials say it is necessary to help address budget woes.
Attorneys have advised that the increase would not jeopardize the city's defense of the appeal, City Budget and Finance director Ivan Lui-Kwan told the council budget committee.
The administration wants to raise $550,000 more annually through new fees that would be charged to tour bus companies and other commercial vehicles that bring visitors to Hanauma Bay.
