The Honolulu Liquor Commission has taken a big step forward by ousting administrator Wallace Weatherwax but needs to keep moving quickly to regain public trust, Mayor Mufi Hannemann said yesterday.

On Thursday, the commission approved a settlement that removes Weatherwax from the office but allows him to stay on the payroll until he retires Oct. 31.

Hannemann said he felt that Weatherwax would have moved out of the agency eventually, but believed that his proposal to arm inspectors hastened his departure. Weatherwax strongly advocated giving guns to inspectors even after the commission voted to take no action on the proposal.

Hannemann said that was a policy decision that Weatherwax shouldn't have been making on his own. "I felt it was the wrong message from the wrong messenger," he said.

Commission special assistant Anna Hirai has been named acting administrator until a permanent successor to Weatherwax is named. She assumed the duties on July 14.

Hannemann said he would prefer Weatherwax took paid leave to cover the time from now until Oct. 31.

But Liquor Commission Chairman Dennis Enomoto said the settlement was negotiated with Weatherwax and included an agreement that there would be no legal challenges to his leaving the office.

Weatherwax has served as administrator since February 1998. During his tenure, eight former inspectors were found guilty of racketeering, bribery, extortion and other charges; a city audit criticized the commission for mismanagement; and the FBI launched an investigation that is continuing.

Weatherwax earns between $71,676 and $101,004. The commission oversees nearly 1,400 bars, clubs, restaurants and other businesses that sell liquor. Its support — $3.7 million budgeted this year — comes from the operations that it licenses and from fines paid by those businesses.

In the last few months, Hannemann has appointed three of the five members of the commission and feels confident that they will continue to work to reform the agency, led in part by a new strategic plan expected to be unveiled in the coming months.

He praised Enomoto for working to make changes but cautioned against foot-dragging.

"I don't want to take five years to implement the strategic plan," Hannemann said.