honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, September 30, 2005

Beachboy contract fails the common-sense test

In addition to the laws and regulations that government is required to follow, there is also the common-sense test.

A city decision to award a new Waikiki beachboy contract to a company controlled by the well-known Rutledge family fails the common-sense test.

The same company, Star-Beachboys Inc., is already in hot water with federal authorities over allegations that it skimmed as much as $350,000 in cash receipts from a previous concession contract, and failed to pay taxes on the money.

Company executives Anthony Rutledge Sr. and his son, Aaron, have entered guilty pleas in the case in exchange for a reduced charge, a fine and probation.

That deal, which won't be final until next year, has been questioned by supervising Judge David Ezra.

But because the agreement is not yet final, the city is in a box. The Rutledges are not technically guilty until their plea is accepted, and theirs was the highest offer for the concession.

The bottom line is that the Rutledges admit taking money and not paying taxes, yet they were given the contract again by promising to pay the city more than any other bidder.

Does that make sense? Hardly.

The best decision would be to start from scratch and search for a concessionaire who does not bring this troubled history to the table.