NAWILIWILI — Citing a possible conflict of interest, Kaua‘i County Councilman Dickie Chang has recused himself from voting on funds for the next two editions of the Kaua‘i Marathon. He works as the event’s MC, but declined to elaborate further
NAWILIWILI — Citing a possible conflict of interest, Kaua‘i County Councilman Dickie Chang has recused himself from voting on funds for the next two editions of the Kaua‘i Marathon.
He works as the event’s MC, but declined to elaborate further on the decision.
Chang on May 11 recused himself from the council’s Economic Development Committee’s deliberation and voting on a request from race organizers for $150,000 in taxpayer subsidies to the 2011 Kaua‘i Marathon.
The county has provided funding for the marathon since the race’s began in September 2009. Chang, who has worked in the first two events, has been a member of the council since December 2008.
In 2009 the race received $10,000 from the county to pay for cultural performers. In 2010, the Kaua‘i Visitors Bureau provided $26,000 for the race through a visitor stimulus grant approved by the council, according to George Costa, director of the county Office of Economic Development.
Last year the council approved a $500,000 stimulus grant, which was added to the county’s operating budget for the current fiscal year. The KVB grant was the second installment of a $1 million infusion approved by the council in 2009 to bolster tourism.
Costa said the presentation from KVB in 2010 was similar to the previous year, and did not show the Kaua‘i Marathon as a line item. Later, KVB shifted the money that was supposed to fund the Kaua‘i coupon book — which had performed poorly the previous year — to the 2010 Kaua‘i Marathon, according to Costa.
Chang on May 10 said he would provide documents the next day showing he had no conflict of interest in his voting record concerning the last two editions of the marathon.
On May 11, Chang was holding papers and ready to speak out when County Attorney Al Castillo pulled him aside for a brief talk. After that, Chang changed his mind and declined to comment on his recusal.
More funding
Bill 2404 appropriates $150,000 from the county’s General Fund to be used by the race organizers in the upcoming marathon in September.
The bill passed committee May 11 on a 3-1 vote, with Councilman KipuKai Kuali‘i voting against it and Council members Tim Bynum, Nadine Nakamura and JoAnn Yukimura supporting it.
The approved funding on May 11 will add to additional money that was approved on May 10, bringing the combined funding for the next two editions of the race to $270,000.
On May 10 the council’s Committee of the Whole approved $120,000 in subsidies for the 2012 marathon. Chang also recused himself from deliberating and voting on this funding.
Council members Kuali‘i and Mel Rapozo were the only voting members opposing the $120,000 in funding, citing premature release of monies which could alternatively be raised from the private sector of the visitor industry. They said the private sector — such as resorts, restaurants and rental car companies — benefits more directly from the race.
Marathon organizer Bob Craver said at the May 11 council meeting that race organizers haven’t paid state general excise taxes in the last two years.
“I did not know this,” said KVB Executive Director Sue Kanoho, adding that she only found out about it during the May 11 meeting.
Craver said he understands that the race’s entry fees are not taxable, but there are other taxable items that may still have to be addressed. There are two CPAs — one in California and another in Honolulu — dealing with the tax issue, he said, and it should be addressed as early as next week.
“It’s absolutely minimum,” Craver said, explaining that the issue stems from merchandise sold by a company hired by the organizers.
The full council will vote today on the 2011 marathon funding. But the seven-member body will be reduced to a five-vote decision, because of Chang’s recusal and Rapozo being unable to attend the meeting.
Other recusals
Chang also recused himself when the Committee of the Whole voted on May 10 to end the county’s $175,000 curbside recycling program.
The county pays Garden Isle Disposal to process recyclables, but the program’s cost went up to $14,000 from $2,000 per month. GID advertises with Wala‘au Productions, a company owned by Chang.
In separate matters during the decision-making meeting, Yukimura recused herself from voting on funding for the Boys and Girls Club and Kuali‘i recused himself from voting on funding for the YWCA, where he works as the director of operations.
• Léo Azambuja, staff writer, can be reached at 245-3681 (ext. 252) or lazambuja@ thegardenisland.com.
