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Monthly Newsletter


Welcome to my monthly newsletter. The first week of each month, I email all my clients my monthly newsletter. This newsletter includes news events of interest along with announcements of new real estate developments, updates on on-going developments and any major transactions of the month. It also includes Real Estate Updates of interest to each client. Send me an email if you’d like to receive it each month. If not, it’s posted here for your reading pleasure.

 

October, 2009
October 2009 newsletter


 
Aloha,
 
It was not only a slow summer but also a slow September.  Prices are good but the buyers are seemingly reluctant to move forward so market time on properties continues to grow.  Both Nihilani and PiliMai, the two Brookfield projects, have new lower pricing on several of their units in an effort to create some activity but so far, there have not been any takers.  I will say that as we enter into this first week of October, it seems that everyone woke up all at once as showings have suddenly jumped dramatically. Perhaps it coincides with the grand opening of the newly renovated St. Regis Princeville Resort Hotel, which took place on Friday, October 2nd. 
 
As for news over the past month, I'd like to start with something more whimsical and upbeat instead of the doom and gloom that pervades so much of the news these days.  Per the Sep 4th Garden Island Newspaper article entitled "N.Y. couple compiles 50 love stores from 50 states" "Mike and Nicole Boschen arrived to the island this time with more than a vacation in mind.  The Boschens are on a mission of love.

In January they left their home in New York in search of answers to the age old question: What makes love last? Who better to answer than couples who’ve reached that illusive bench mark in a marriage — the 50th wedding anniversary.  Accompanied by two year-old daughter, Sage, the family of three made Kaua‘i their thirty-ninth state in nine months. Their book, “50 States of Love,” will be a compilation of 50 couples, one from each state, who’ve been married over 50 years.  “We knew when we decided on the project that we wanted Kaua‘i to represent the state of Hawai‘i,” Mike Boschen said.

Courageously selling a business and hitting the road six months after conceiving of the project, the family began their marital pilgrimage in New Jersey where they were wed.  They drove out of New York in a 25 year-old Mercedes station wagon named Homer, but 12 states later abandoned the car, motels and diner food for an upgrade to an RV.  “It became a home where we could cook and sleep in our own bed,” Nicole Boschen said.

Parking the RV in Montana at a relative’s house, the Boschens set off for Hawai‘i. In August they spent 18 days on Kaua‘i searching for a Hawai‘i representative.  The two rely on luck and circumstance to find candidates. In the case of the Kalaheo couple chosen (who wish to remain unnamed) they met while lunching at Wrangler’s Steak House in Waimea.

When the Boschens began this ambitious project nine months ago they had two pages of questions for the interviews.  “We ditched the list by the third couple,” Nicole Boschen said. “We realized all we had to ask was, ‘how did you two meet.’”

"The two agree that the overarching secret to longevity in a marriage is acceptance.  “Every couple has brought it up,” he said. “The most important aspect of a marriage is learning to accept the other person.”  The Boschen’s are scheduled to complete the interviews in October. To get a sneak preview of the book visit
50statesoflove.com."

 

On a completely different topic, interest abounds on the issues surrounding renewable energy here on Kauai. Take for example the article in the Sep 4th Garden Island "New Wind Turbine Stirs Up Community" Per the article "Wind, sun and water.  The three natural resources abound on Kaua‘i, but the island still relies heavily upon the burning of fossil fuels and the importation of foreign oil.  “We have all the resources at our fingertips,” said Jared Smith of Smith’s Electrical Contracting in an interview at The Garden Island Wednesday afternoon.

To demonstrate just how easy using wind as a clean, renewable energy source is, Smith, along with business partner Dane Eirhart, came up with an idea which they’ve been proudly parading around town in recent days.  In fact, many people might have noticed the “energy ball” perched in the back of their black pick-up truck this week because it has apparently been generating quite a buzz.  “We’ve been getting more smiles than we have ever seen before,” Smith said.

The ball of energy is reportedly the first of its kind in the state and what makes it different from other wind turbine models is it won’t harm birds and is whisper-quiet, Eirhart said. So, all the misconceptions people have about wind turbines are no longer valid, he added.  Based on a physics concept — the Venturi Principle — air is taken from around the outside of the blades and passes to the inside before it shoots out as vibrational energy, Smith explained. And because of the way it spins, birds view it as a solid object, thus avoiding it. In addition, “It won’t irritate your neighbors,” Smith said.

Originally created in the Netherlands, the idea has already exploded across the Mainland and when Hawai‘i pays the highest fees for electricity in the nation, it “only makes sense” to bring it to the islands, Eirhart said.  While the goal is for Kaua‘i to be 70 percent fossil fuel free by 2030, according to the Kaua‘i Energy Sustainability Plan, Smith said there is no reason it has to take over 20 years to become 30 percent shy of optimum self-sufficiency.  Kaua‘i Island Utility Cooperative also proposes in their 2008-2023 Strategic Plan to be using “at least 50 percent of its electricity renewably without burning fossil fuels within 15 years.”  KIUC could not be reached for comment by press time.

In addition, Smith cites the County Council’s delay in passing Bill 2290 — which would make it easier for residents to construct small-scale wind energy systems — as an added hindrance in increasing island sustainability.  Though there are many obstacles yet to overcome, Smith added, “It’s clear to us that people in Hawai‘i are very interested in green technology.”

While the “energy balls” are costly and current economic conditions may not be ideal, Eirhart said it’s an investment that would produce savings within the “very first month.” Costing anywhere from about $15,000 to $30,000 depending on individual energy needs, the ball comes with instant rebates, including 30 percent for enterprises and 20 percent for residences, Smith said.  With an approximate lifespan of 20 years, it’s a purchase that would take less than the products’ life expectancy to pay for itself, Eirhart said.  For more information, visit
www.smithselectricalcontracting.com."

 

Although many stores are feeling the pinch of the economy, it has not stopped Kauai Village in Kapaa from making improvements.  The Sep 6th article "Kapa'a Shopping Center undergoes renovations"  states that "At a time when so many people have been squeezed by the economy’s tight grip, Kaua‘i Village Shopping Center is attempting to break loose by literally paving new ground.  Not only is the parking lot at the Kapa‘a shopping center getting a facelift, Safeway is rebranding to a “Lifestyle” store, which will feature more natural, organic products — the same brands slated to be located in Puhi.

“Anytime renovations are done at a shopping center there are many factors involved, not really prompted or a result of economic factors,” said CB Richard Ellis Real Estate Manager Michael Oh in a phone interview Thursday. “The end result is a benefit to tenants, customers and landlords.”  Clifford Ogata, managing director of Diversified Equity and representative for the shopping center’s owners, agreed.  “We’re looking down the road,” he said in an interview at The Garden Island Wednesday. “Despite what we’re seeing with the economy, we have a great piece of real estate that has great potential.”

Not only are renovations like the repainting of both Wyland wall murals occurring, but local companies are among those being hired to conduct the multi-million dollar improvements.  Soul Construction — recently voted one of the fastest growing companies in the state by Pacific Business News — has been hired to help revamp the center.  “We are nearing completion of not only the first phase of the parking lot work, but the Safeway renovation as well,” Soul Construction President Joshua Copeland said Thursday.  His company is expected to continue renovations for the entire Kaua‘i Village Shopping Center, “with the eventual goal of matching the center with the new Safeway look,” he said.

Of the 19 businesses currently located at the mall, 11 — including Longs, Starbucks and Panda Express — are national chains, and eight are locally owned Hawai‘i businesses, including Pau Hana Grill, Pacific Island Bistro and Papaya’s Natural Foods, according to Ogata." 

 

If you're driving up to the North Shore and wonder what the hold up is between Kilauea and Princeville, it's probably the tree trimming discussed in the Sep 6th article, "Tree trimming work to impact traffic for months.  I can tell you this, it definitely puts a dent in your timeline when trying to get back and forth from Princeville.  The wait has usually only been around 10 or 15 minutes, one you can count on all day long as you come and go between the two towns.  According to the article "Work to prune or remove non-native albizia trees along Kuhio Highway near Kilauea is scheduled to start Sept. 14 and run 90 to 120 days, the contractor said in a letter to residents."  Just plan some extra time into your travels during this period.

 

The October 6th Kauai Marathon (which I walked) was a real boost to the Island economy per the Sep 8th article of the same title in the Garden Island.  "If only for the weekend, visitor arrivals and spending grew significantly as out-of-towners flocked to the island to participate in the Kaua‘i Marathon Sunday on the South Shore.  “We were pleasantly surprised; it was better than expected,” Kaua‘i Visitors Bureau Executive Director Sue Kanoho said, regarding the turnout. “The amount of people that flew in for this event was tremendous.”  Though exact figures won’t be known until later this week, Kaua‘i Office of Economic Development Director George Costa said he spoke with runners who traveled to the island from around the globe just for this event.

As Costa walked the half-marathon with Mayor Bernard Carvalho Jr., he chatted with people from Germany, Japan and “from all over the Mainland,” he said.  There were some folks who grew up on Kaua‘i and had since moved to the Mainland, but came back, “not only to run, but connect to the island again,” he said.  Kanoho said there were “some” kama‘aina who took part in the endurance test, but “a lot” were visitors.  The Sheraton Kaua‘i Resort was sold out and Kanoho said she expects other hotel occupancy rates went up this weekend. Overall, she said it was a “well-organized” gathering of health enthusiasts and the “perfect setting,” with a backdrop of Po‘ipu, palm trees and the ocean." This was a great event - if you're at all interested in participating next year, I understand they have a website up already with details.

 

The continuing real estate decline is discussed in the Sep 7th article "Sales slip."  "Real estate sales continued to fall in August on Kaua‘i, according to Multiple Listing Services.  The number of residential sales, compared to August 2008, fell more than 22 percent while the dollar amount dropped some 51 percent.  Median home prices also continued to slide last month, falling more than 11 percent compared to August 2008."  Every month I post the entire report MLS monthly sales statistics on my website www.KauaiRealEstateNow.comif you're interested in seeing the whole report.  I also do a monthly update on my blog where I compare current sales stats with the years past.   

 

The Sep 8th Garden Island article "Ethics board opinion may set precedent" will give you some insight into politics here on the Island.  "The county Board of Ethics’ ongoing discussion of Kaua‘i County Charter Section 20.02D has led to the resignation of one county volunteer last month, setting up the possibility of a precedent that could reach far and wide and change the way local government operates.  Kaua‘i Economic Development Board President and CEO Matilda “Mattie” Yoshioka confirmed last week that she proffered a resignation letter to the Charter Review Commission on Aug. 14, one day after being advised by the Ethics Board to no longer appear before the Kaua‘i County Council.

“That’s part of my job. I would not be performing what I was paid to do here at KEDB, which is to bring up certain matters before Planning (Commission) or council on behalf of KEDB and our membership,” Yoshioka said in a phone interview. “I would be derelict in my duties as president and CEO of KEDB if I was forbidden to do that.”  Charter Section 20.02D says “No officer or employee of the county shall ... appear in behalf of private interests before any county board, commission or agency.”  Yoshioka agreed that she had done just that for KEDB.  “Essentially I am (in violation), but for the benefit of the entire island of Kaua‘i,” she said. “I think (the Board of Ethics) didn’t see that.”  In her resignation letter, acquired last week from the Office of Boards and Commissions, Yoshioka wrote, “At my request, the Board of Ethics issued an advisory opinion ... that I should not appear before any county board, commission or agency due to my involvement with private businesses in creating and sustaining a strong, diversified economy for the island of Kaua‘i, until such time they receive further clarification from the county attorney” on Charter Section 20.02D.

In a discussion on the merits of applying 20.02D earlier this year, County Attorney Al Castillo told the Board of Ethics that forbidding board and commission members to appear on behalf of private interests before other boards and commissions could have a chilling effect, causing a mass exodus of county volunteers and “absurd results.”  Asked if being forced out of government would be a negative for the island, Yoshioka said it “definitely” would.

“For me, the reason why I was willing to serve on any kind of commission with the county is that I felt I had some contribution to give,” she said. “I think that’s true for a lot of commission members. They do have a lot of history and value in the community.  “It’s unfortunate though for me, in my opinion. Because I did divulge that on my disclosure form” that was filed early this year, she said. “I was given no indication at that point that it was a conflict, and all of a sudden, boom, they say that there is one.”

Yoshioka said she believed that if she did not appear before any body that would conflict with her duties on the Charter Review Commission, “it wouldn’t be a problem” because Kaua‘i’s economy and the County Charter don’t normally intersect, but voluntarily asked for guidance after complaints were filed against Board of Ethics members Judy Lenthall and Mark Hubbard by their colleague Rolf Bieber.  Asked if she regretted seeking an opinion in light of the answer she was given, she said she did not, calling the board’s stance on the matter “very clear now” and noting that “there are a lot of other sitting commission members that do represent private interests.”

Private attorney and fellow Charter Review Commissioner Jonathan Chun in March 2008 was told by the Ethics Board that he was allowed to continue representing clients before other agencies, but the county attorney opinion that led to that decision has been under scrutiny in recent months.  The agenda for Thursday’s meeting of the Board of Ethics has a number of items related to 20.02D that will largely be discussed behind closed doors.

Executive sessions could be convened to consider the release of private meeting minutes from previous discussions on the topic to the public, the adoption of a resolution initiating an investigation of an officer or employee of the county, a legal opinion from the County Attorney’s Office to further clarify and guide the board regarding Section 20.02D, and a Declaratory Order regarding Section 20.02D.  A request filed with the Office of Boards and Commissions for a digital audio recording of the Aug. 13 Board of Ethics meeting was pending as of press time."  If you've been receiving this newsletter for any length of time, you know this will not be the last word on this issue.


On the lighter side of things, the Sep 8th article entitled "Pipeline project sees stimulus funds" announced that  "the Department of Water will be receiving $1.94 million in federal stimulus funds through the American Recovery and Reinvestment Act for the Lihu‘e Town Pipeline Replacement Project.  The appropriation was made by the Environmental Protection Agency and is being administered by the state Department of Health Safe Drinking Water Branch, a county news release says.

“The purpose of the American Recovery and Reinvestment Act is to put people back to work and invest in critical infrastructure,” said Sen. Daniel Inouye in the release. “The construction of the pipeline replacement for Lihu‘e Town will improve water delivery and continue to ensure water quality, as well as provide jobs for the people of Kaua‘i. This is a win-win project.”  Cushnie Construction Co., Inc. has been awarded the contract for the Lihu‘e project, which is scheduled to begin in mid-September."

 

"Commission defers action on 30 vacation rental requests" is the subject of an article in the Sep 9th Garden Island.  "The county Planning Commission on Tuesday deferred action on a recommendation to approve 30 transient vacations rentals outside the visitor destination areas.  Under new county law, vacation rentals are generally not allowed outside VDAs, including Po‘ipu, Kapa‘a and Princeville, but existing vacation rentals outside VDAs are allowed if they receive non-conforming use certificates.  The recommendation to issue NCU certificates for 30 specific properties from Kekaha to Ha‘ena outside VDAs came from Ian Costa, county Planning Department director.

Barbara Robeson of Wainiha, a former planning commissioner now with the group Protect Our Neighborhood ‘Ohana, argued against “blanket approvals,” saying there are many problems with some of the parcels in question, including five where owners are receiving homeowner exemptions for property-tax purposes (where owners pledge their homes are their principal places of residence) and also submitted signed, notarized documents saying their residences are vacation rentals.

She also asked commissioners, planning staff and Deputy County Attorney Ian Jung if some of the properties in question aren’t multi-family dwellings, which are in violation of the county North Shore Development Plan.  Caren Diamond, also with the Protect Our Neighborhood ‘Ohana, passed out documentation that at least one of the vacation rentals on the list recommended by Costa to be given the NCU certificates has allegedly been the subject of substantial renovations, including an enclosed first floor with its own kitchen and bath and two kitchens on the second floor.  She argued that such improvements are likely violations.

Imai Aiu, deputy planning director, said the permitted improvements were in place when county inspectors visited the parcel, but Diamond’s information may represent a possible new violation.  “We all know people have violations. We all know people have illegal” construction or dwellings, Aiu said.  Aiu recommended pulling the subject property off the list of 30 parcels to be approved for the certificates.  Commissioner Herman Texeira asked if there are other potential violations on the list.

Jung said once NCU certificates are approved, owners have certain vested rights.  Commissioner Hartwell Blake, a former county attorney, asked if permits are supposed to be revoked if new violations occur.  Jung said that is a “gray area,” to which Blake responded, “This is a blatant poke in the eye,” adding that he is not surprised many residents are upset about how the new law is being implemented and interpreted.  Blake said he’s not anti-TVR, but argued that if a county ordinance is going to be implemented, interpreted and enforced, it should be done right.

“It’s just wrong,” Blake said.  After Jung explained that single-family TVRs were not regulated prior to the new county ordinance going into effect, and the county already facing litigation concerning the ordinance, that new conditions can’t be placed on grandfathered TVRs.  “It is an untested area of county law,” Jung said.  Texeira asked how commissioners could make decisions on TVR matters if issues are not clarified.

Commission Chair Jimmy Nishida said the commission would not act on Costa’s recommendation until more information is received.  Blake asked if the deferral means the TVRs on the list recommended for NCU certificates by Costa should not be operating.  Both Jung and Aiu said that is correct.  Robeson again asked planning officials to check on those parcels where owners are getting homeowners’ exemptions (and lower property-tax rates) and operating the dwellings as vacation rentals. “Once you give an approval it’s harder to take it away. It affects all of us” in terms of property taxes, she said."

 

Vacation rentals have been an ongoing problem outside of VDA's since I moved here in 91 and it seems they have yet to be resolved.
 
Interestingly enough, the very next day there was this article: "Officials: TVR enforcement will take some time."  The article went on to say that  "Tight timelines have made the county’s transient vacation rental ordinance difficult to enforce, but county officials vowed last week to do their best to make it work.  In an interview Thursday at the mayor’s office, Planning Director Ian Costa, Deputy Planning Director Imai Aiu and Beth Tokioka, executive assistant to the mayor, explained the rationale behind the administration’s recent controversial requests that the Planning Commission grant consent to the issuance of non-conforming use certificates for more than 60 TVRs.

“We’re committed to enforcing the law as it was intended and it takes some time,” Costa said, noting that the ordinance, passed last year, was never intended to completely eliminate TVRs but instead had regulation as its main aim and that it is more important to stop the proliferation of new vacation rentals and, over time, reduce TVRs outside of visitor destination areas through attrition.

“I don’t want to imply that it’s not enforceable,” Costa said, adding that the law will simply “take some time to have its effect.”  Despite what Tokioka described as “pretty significant attrition” thus far — more than 200 of the 500-plus applications have been denied, according to Costa — achieving those goals has been easier said than done due to some complexities in the ordinance.

“It’s the first ordinance I’ve seen that not only puts a deadline on applicants but also puts a deadline on the county to approve,” said Costa. He added that more than 500 applications have created resource and timing issues because “nowhere in the law does it say to put things on the back burner.”  Aiu acknowledged that “no law is ever perfect as currently written.”  But Tokioka said, “Even with challenges, we need this ordinance,” and that even an “imperfect” law is better than none at all.

Still, Costa said common misconceptions about TVRs abound. He insists that the ordinance has not been ineffective, that the Planning Department has not illegally approved any applications after the March 30 deadline, and that the law is not black and white but actually extremely complex.  The issue could at some point soon end up in Circuit Court. In July, former County Councilwoman and current Prosecuting Attorney Shaylene Iseri-Carvalho subpoenaed 64 Planning Department documents related to TVR ordinance enforcement, and left open the possibility of criminal prosecution for operation of illegal TVRs, a misdemeanor infraction.

Costa and Aiu said the Planning Department has not done anything wrong and that the subpoenas are simply requests for documents and did not include the prosecutor’s intent.  The two Planning Department leaders also said a lack of evidence has forced the county’s hands in some instances where some signage or advertisements make it seem like a violation is occurring, but inspectors are unable to substantively prove any transgressions. An applicant’s appeal of such a denial would be difficult for a court to turn away.  “We shouldn’t say something is legal or illegal without proof,” Costa said. “Others can freely use those terms, but we should not.”

Aiu said the Planning Department reserves the right to come back and inspect rentals, and likened the granting of consent without an admission of legality to a speed bump on the road to a full, sustainable denial.  “The issue is not done. We’re watching,” Aiu said. “We are committed to enforcing a complex ordinance and taking on the enormity of the task as best we can.”   The sage continues.....
 
If you're one of those who likes to spend evenings drinking at the County parks, you will not be happy to hear that per a Sep 10th news article, a drinking curfew was passed.  "Those who like to consume alcohol in county parks will have to find something else to do from 11 at night until 6 in the morning.

The Kaua‘i County Council on Wednesday unanimously passed Bill No. 2320, which says that no person at a county park or recreation facility shall possess or consume any intoxicating liquor between those hours, excluding those persons with a valid camping permit.  “The intent of this bill is to give the Police Department some tools that they asked for,” said Councilman Derek Kawakami, who first introduced the bill at the behest of Police Chief Darryl Perry.  Those who violate the rule could be subject to a fine between $15 and $500."  Don't say you weren't warned.

 

I had the pleasure of dining at a new sushi restaurant recently that was written up in the Sep 10th Garden Island "The way of the warrior: Kauai boy opens sushi restaurant."  "The economic crisis keeps hitting the Hawaiian Islands hard. Hotel occupancy rates continue to drop, and businesses dependent on visitor revenue are closing down left and right. Who in his right mind would risk investing in a new restaurant in the middle of such turmoil?

Just ask Victor Heresa, who behind those deep dark eyes and bright smile, seems to have never doubted it is possible to live and thrive on Kaua‘i, where he was born and raised. He opened Sushi Bushido this week in Old Kapa‘a Town, his third venture in his short and successful career as a restaurant owner.  “It’s kinda crazy going into a new venture, especially in this time,” Heresa said. “But I feel it has to bounce back soon.”  The new restaurant has been open for less than a week, and so far it has been busy every single night.  “Everyday is a happening day,” he said.  Heresa said he finally created something he feels can compete with other high-end restaurants on the island, as far as ambiance, food and service.

The place does look sharp. Bushido, with 100 seating capacity, has a unique decoration. A large red wall serves as display for Sarah Wyman’s impressive portraiture art. Behind the bar a soft gray wall sets a contrasting tone, and upstairs the golden walls make you feel you are in a special place.  “I set this whole thing up in two months,” he said. “It was crazy.”  The sushi bar, which Heresa says is the largest on the island, has 16 seats. The black marble top and gun metal panels were Heresa’s ideas.

Up against the wall in the corner is the stage in which Heresa hopes to have live music at least four times a week, from Thursday through Sunday. This week, award-winning local artist Shilo Pa was jamming before a full house."

 

The sushi restaurant is located where Blossoming Lotus used to be and it was jammin the night I was in there too. If you like sushi, check it out and let me know what you think.

 

We're heading into winter and winter surf and, as always, I urge you to use caution when around the water. Per a Sep 10th article "Teen rescued at Queen' bath"  "High surf pounded Kaua‘i’s shoreline and strong currents were reported Friday at Ha‘ena and Ke‘e beaches.  Around 4:30 p.m., a swimmer found himself in distress at Queen’s Bath in Princeville. A lifeguard from the Hanalei tower responded to the natural coastal pool area on a Jet Ski equipped with a grabber, according to county spokesperson Mary Daubert.  The 15-year-old Princeville male was pulled to safety onto the Jet Ski and dropped off at Black Pot Beach where he was released to medics. He sustained minor scrapes and bruises, she said, and was treated and released at the scene."  Please use extra care during these high surf months and be sure to check with the lifeguards as to conditions if you are unfamiliar with our waters.

 

I'm always telling clients that we have the most expensive electricity in the US and it seems KIUC is determined to keep it that way.  Per a Sep 13th article "KIUC rate increase would impact local business" "Most business owners are already doing everything they can to cut back on costs, including reducing their energy consumption, Kaua‘i Chamber of Commerce President Randy Francisco said as he sat in his office with lights off and windows open Friday afternoon.

With Kaua‘i Island Utility Cooperative’s proposed general rate hike of 10 percent, many enterprises will be forced to slash costs even further.  Francisco said taking a look at the chamber’s recent electric bill gave him a “reality check.”  “Obviously, everything is going up. The only thing that’s going down is the economy,” he said with a chuckle. “The increase is going to challenge us to ask, ‘Where else can we cut?’”

With a $200,000 electric bill last month alone, the Department of Water will potentially pay some $20,000 more per month with an average increase of around $240,000 per year, DOW Manager and Chief Engineer David Craddick said.  To offset higher costs, the DOW might look at other ways to acquire energy, such as the sun, he said.  Another large energy consumer, the Grand Hyatt Resort and Spa in Po‘ipu, also looked to the sun for alternative energy and had solar panels installed last September.  The resort has taken other measures to reduce energy consumption, such as putting timers and motion sensors on lights, said Diann Hartman, public relations manager for the Hyatt.  “Those little baby steps are really the things that have made significant impact,” she said. “We have taken great strides over the years to reduce energy.”

But, as more members turn to renewable energies, revenue will continue to decline for KIUC, which could ultimately drive the cost of electricity up even higher, said Randy Hee, KIUC president and CEO.  In addition, lower oil prices and a declining visitor industry have recently contributed to KIUC’s slumping revenue, essentially prompting the rate increase, he said in an interview at KIUC’s headquarters Friday in Lihu‘e."  So where does it all end?  You try to reduce energy costs by installing solar only to have KIUC up the rates to make up for the lost revenues.  What a joke!

 

Also in the Sep 13th edition is an article "Theater of the absurd."  If you've been receiving my newsletter for long, you know I have a special affection for the way our County government is run, which is why I am including this article in it's entirety.  "It is not the first time our local government has made us scratch our heads, and it certainly won’t be the last, but the most recent dubious decision by a group of county officials may very well make us go bald.  We looked at the facts available to us. Then we looked again. And again. We still don’t get it.

The Ethics Board recently advised a Charter Review Commission member in a fashion that seems to totally contradict the advice it gave two of its own members a couple months ago on a similar issue.  Matilda “Mattie” Yoshioka confirmed this week that she proffered a resignation letter to the Charter Review Commission on Aug. 14, a day after the Ethics Board advised her to no longer appear before the Kaua‘i County Council in her role as Kaua‘i Economic Development Board president and CEO.

Charter Section 20.02D says “No officer or employee of the county shall ... appear in behalf of private interests before any county board, commission or agency.”  Yoshioka agreed that she had done just that for KEDB. But as far as we can tell, so have Ethics Board members Judy Lenthall (who appeared before the County Council on behalf of Kaua‘i Foodbank) and Mark Hubbard (who appeared before the council on behalf of Kaua‘i Planning and Action Alliance), not to mention Cost Control Commissioner Lorna Nishimitsu (who appeared before the council on behalf of Kikiaola Land Co.) and Charter Review Commissioner Jonathan Chun (who appeared before the council and Planning Commission on behalf of his legal clients).

The first three were cleared June 4 of allegations they violated the County Charter. Similarly, the board unanimously decided last year that Chun, a private attorney, should be allowed to continue representing his clients before county government bodies.  No matter how you choose to define “appear” or “private interest,” there is no logical way of interpreting 20.02D to have it apply to Yoshioka’s behavior but not to Chun’s or the other three examples we mentioned. So why was Yoshioka — who, like Chun, voluntarily went to the Ethics Board for an advisory opinion — held to a different standard? We’re not saying we don’t like the new direction, but we are concerned about its selective application.

In a discussion on the merits of applying 20.02D earlier this year, County Attorney Al Castillo told the Ethics Board that forbidding board and commission members to appear on behalf of private interests before other boards and commissions could have a chilling effect, causing a mass exodus of such county volunteers and “absurd results.”  In a new legal opinion provided this week to the Ethics Board, which it appropriately released to the public, the County Attorney’s Office argues that the absurdity of a “strict constructionist reading” is what essentially nullifies the charter provision and allows the County Code to reign supreme.

So why did the board apparently heed that advice for Lenthall, Hubbard, Nishimitsu and Chun in the past, but not now for Yoshioka? Is it personal, a new path or what?  The law is clear to us, and even the latest legal opinion calls it “unambiguous.” Can it be interpreted to produce “absurd” results, such as a commissioner not being allowed to get her driver’s license, apply for a water meter or file a police report? Only if we let it.  The county should clarify the section. But it should do so according to the people’s will. This is, after all, a representative republic.

The Charter Review Commission put an amendment on the ballot last November that asked if the charter should be amended to expressly permit county board and commission members to appear on behalf of private interests before any county board, commission or agency except the board or commission on which they serve. Voters roundly rejected it 13,751 “no” to 7,133 “yes.”  A group of concerned citizens fought this proposed change to Section 20.02D from its infancy. Despite an affirmative advisory opinion in March 2008 from the Ethics Board, some residents argued there is a conflict of interest when commissioners try to wear “multiple hats.”

The people have spoken on this issue. Residents want this charter provision applied more conservatively. If a few exceptions are needed to avoid the section becoming “absurd” then the county should draft those and put them up for voter approval.  The county should not try to do the opposite of the people’s desire. The voters will see through any clever wording and kill such an amendment.

Let’s tighten up 20.02D and lay some ground rules — but make it practical and keep it realistic. It is indeed absurd if a volunteer board member is unable to apply for a driver’s license because of a potential charter violation.  But until those changes happen, let’s enforce the charter consistently. Qualified volunteers to fill the dozens of important board and commission seats are in short supply on such a small island. Let’s make sure we keep the minds of current and potential members open to serving the county.  If the Ethics Board is going to tell Yoshioka to either stop representing KEDB in front of the council or stop volunteering for the Charter Review Commission, then Chun, Hubbard, Lenthall, Nishimitsu and all the others wearing “multiple hats” should either stop representing their private interests or resign themselves."  Yes, I agree - it is the theatre of the absurd.

 

A Sep 14th article takes yet another look at the water quality issue in Hanalei.  Entitled "What a waste" this article says "HANALEI — “Keep out of water.”  Chronically high levels of enterococcus bacteria — well above state and federally deemed safe levels — was what prompted water quality expert Dr. Carl Berg to organize efforts in permanently displaying those words on a sign near the Hanalei River at the county’s Black Pot Park.

The first of its kind on the island, the state Department of Health sign advises people about the possible presence of waste in the water.  “This has been a long, long process trying to get these signs up,” Berg said, adding that there are several more locations which would be well-suited for cautionary signage, including at Kalapaki Stream and the county’s Hanama‘ulu Beach Park.

Matt Rosener, hydrologist for the Hanalei Watershed Hui, regularly monitors North Shore waters in collaboration with the DOH. He said the bacteria is not necessarily from humans. It could be originating from other warm-blooded animals’ fecal matter, such as birds or cows.  “We don’t want to jump to conclusions right away,” he said.  Even though Hanalei is known for having a high density of cesspool waste systems lining its waterways, Rosener said there is not enough conclusive evidence yet to point solely to human contamination.  “We need more information before taking more radical steps like planning for alternative sewage treatment plants,” he said. “Not everyone in Hanalei with cesspools are polluting the water.”  In combination with Hanalei’s low elevation and sand mixed within the soil, septic and cesspool sewage systems “drain more slowly,” but “we really don’t know how much,” Rosener said.

Presently, there is no existing test approved by the Environmental Protection Agency that can determine exactly what the bacteria’s source is, said Watson Okubo, monitoring and analysis section chief for the DOH’s Clean Water Branch. “The EPA is currently working very hard in the development of new testing methods,” he said.  Since both enterococcus and clostridium bacteria (currently accepted indicators for fecal matter) are at elevated levels in Hanalei River, it is the only fresh water source in the state regularly monitored by the DOH, Okubo said.

“We normally do not monitor streams for bacteria because the background numbers will always be high due to natural causes not related to human fecal contamination,” he said.  As the human population continues to grow, it might seem likely that human sewage could be a leading culprit. But Okubo said he cannot determine whether animal populations, such as birds or rats, have increased to the same extent, contributing to the bacterial count.  “Clostridium is also found in high concentrations in ducks and pigs,” he said.

Whatever the source, Rosener has been instrumental — along with Hanalei taro farmers, the U.S. Fish and Wildlife Service, and local contractors and engineers — in updating eight cesspools over the past two years along the Hanalei River with new septic systems.  “Definitely cesspools can be a source of enterococcus and clostridium perfringens,” Okubo said, but added again that other sources still can’t be ruled out.

The good news for beachgoers is that bacteria typically persists for longer periods of time in fresh water, but as it enters salt water, levels decline.  “The saving grace” for Hanalei is that it “flushes out very fast,” Berg said Sunday after clean water samples were taken this weekend by Kaua‘i Surfrider Foundation volunteers across the island.  “And the bigger the waves, the faster the dilution and flush,” he said.

Until further testing can confirm the true source, everyone is urged to take precaution, especially after it rains. Individuals should also exercise personal hygiene and if someone has open cuts or wounds, don’t go in the water, Okubo said.  “If you cut yourself while in the water, clean up the wound, medicate, bandage, and first sign of infection, see your doctor,” he added.  With looming DOH staff reductions due to state budget cuts, Okubo said four out of 10 staff members in the Clean Water Branch will be lost. This means the frequency of monitoring Kaua‘i’s waters may decrease even further.  Currently, only five sites — Po‘ipu Beach Park, Kalapaki Beach, Hanalei Beach Park, Salt Pond Beach Park and Lydgate State Park — out of 73 on Kaua‘i are tested at least once a week and the samples are drawn from only one location on the beach.

For monthly updates on the quality of water at surf breaks around the island or to volunteer for Surfrider Foundation visit
surfriderkauai.ning.com. To volunteer for Hanalei Watershed Hui call 826-1985 or visit www.hanaleiwatershedhui.org.

 
The marathon was a blessing for the Island, generating over $1.7M during the event. Per the Sep 17th article "Marathon generates $1.7M in visitor spending; $1.1M for hotels"  "Kaua‘i Marathon participants were such a welcomed change of pace to the slumping economy here that next year’s race has already been put on the calendar for Sept. 5, 2010, said Sue Kanoho, executive director for the Kaua‘i Visitors Bureau.  “For one of the toughest economic times in 34 years, this event was a shining star for us,” she said in a phone interview Wednesday.

Overall, an estimated $1.7 million in spending was generated from an approximate total of 3,300 participants and visitors spending around $125 per day, according to county statistics released this week.  Hotel occupancy also skyrocketed during the weekend of the marathon with some 5,600 nightly room reservations, attributing to about $1.1 million in revenue, according to county data."

 

You better believe when an event generates income like that, it's here to stay so sign up early if you want to walk or run.  It was great fun this year.

 

"Donations sought" is the Sep 19th news article seeking money to keep libraries open.  "LIHU‘E — Patrons and others interested in donating money to help keep public libraries open with regular operating hours have the choice of giving to a specific library, a specific island’s public-library system, or the entire Hawai‘i State Public Library System.

“Severe and unprecedented budget reductions are threatening to close libraries across our state, at a time when Hawai‘i residents need these library services the most,” according to various Web sites where donations can be made.  Donations are tax-deductible, and will be used towards the costs of library materials, core services, programs, utilities and supplies, according to the HSPLS Web site,
www.librarieshawaii.org.

There are the Keep the Doors Open! (Friends of the Library of Hawai‘i) and Keep Your Library Open! (HSPLS) campaigns, with the goal of the statewide friends campaign to get each of the 1 million holders of state library cards to donate $3, for a total of $3 million.  The HSPLS campaign allows donors to donate to a specific library or island, with donation envelopes available at every public library on the island, said Carolyn Larson, branch manager of the Lihu‘e Public Library.

Filled envelopes may be dropped off at any public library or mailed to Honolulu, she said.  Checks should be made payable to Hawaii State Public Library System (designate library or libraries or island or islands of choice on the check), and mailed to the Office of the State Librarian, Administrative Services Branch, 44 Merchant St., Honolulu, HI 96813.  Credit-card donations may be made at the Friends of the Library of Hawai‘i Web site,
www.friendsofthelibraryofhawaii.org, or by calling 1-808-536-4174.

Donations by check should be made payable to FLH and mailed to Friends of the Library of Hawai‘i, 690 Pohukaina St., Honolulu, HI 96813. Donations can also be made at any Bank of Hawai‘i branch. Be sure to say it’s for the Keep the Doors Open! campaign for Hawai‘i’s public libraries.  Friends of the Library of Hawai‘i is a nonprofit, 501(c)(3) organization.  As of last week, the HSPLS campaign had received over $15,000. As of earlier this week, the friends campaign had raised $37,580. There are 51 public libraries in the state, including six on Kaua‘i: Princeville, Kapa‘a, Lihu‘e, Koloa, Hanapepe and Waimea.

A Sep 19th article "Real property tax appeals unclear," once again speaks to my fascination with the workings of our County government.  This article, written by Princeville resident, Walter Lewis reads as follows: "When we received the 2009 assessment of our residential property in March from the Kaua‘i Real Property Tax Assessment office, it was rather apparent that the assessment amount was significantly higher than the current fair market value of our property.  Articles in various periodicals and papers had been reporting that commencing in late 2006 real estate values across our country had been declining in value as the “real estate bubble” had burst. While our local paper was advising the same thing, the data on how the economic recession was affecting Kaua‘i was murkier.

I noted with concern that the total assessments of taxable real property on Kaua‘i had increased in both 2007 and 2008 and the nearly $21 billion total for 2009 was only about 3 percent below that of a year earlier. Either our tax assessors here were not aware of the maelstrom that was occurring or were trying to avoid recognizing it.  I spoke with several real estate brokers in our area and it was their unanimous consensus that values of single family residences, condos and land had indeed dipped very sharply since 2007.  They advised of the sharp increase in the number of foreclosure and short sales that were occurring and of the extended period that properties typically were on the market before sale. They commented that while there was some activity in sales of lower-priced properties the volume of sales of properties over the median price range was small.

While I was considering whether to appeal our assessment I was informed that our assessors take the position that their appraisals are based on market value and they do not regard foreclosures and short sales which comprise a significant part of the recent transactions to be at market.  But I learned that a property on our street with characteristics very similar to ours had been sold with a closing date shortly after Jan. 1, 2009 at a price which was more than $250,000 below its assessment. So I concluded our assessment would be appealed.  My decision was made with considerable reluctance as the appeal procedure contemplates its result being determined by a decision from the seven-person Board of Review. The board rarely decides an appeal favorable to the taxpayer.

A tax assessor told me that he wins about 98 percent of his cases before the board. A few years ago, I appealed an assessment of the building on our property that jumped 25 percent in one year. For a number of years, assessments had risen about 5 percent annually based on the use of data from Honolulu as to building cost increases.  The tax law requires that assessment practices must be systematic. But the assessor argued that the law did not require consistency and his arbitrary increase was upheld.  A threshold issue in our appeal was the meaning of a provision in the tax code requiring a 20 percent or greater difference between the assessment and the “tax base” of the property.  Some considered that term meant that the assessment needed to be 20 percent greater than that in the prior year. But a tax official said that his office did not know what the law specified and disregarded it.  His interpretation was that the difference was between the assessment and the value the taxpayer contended for the property. That attitude resonates with the view elsewhere among our county officials that the law is to be as they think it ought to be.

The tax assessor’s office was last year strengthened by the addition of Steve Hunt, a well qualified person with considerable appraisal experience He confirmed that taxpayers could request a settlement conference prior to the Board of Review hearing and agreed to provide one in my case.  In civil litigation in other places a settlement conference mandatory. But to be of value the conference must be preceded by mutual disclosure of the data relied on. This step was observed in our case.  In property valuations arms length sales transactions of comparable property proximate to the valuation date are the gold standard. But in these troubled times relevant transactions were scarce.

The comparables offered by the assessor for our conference did not seem compelling and the property sale on our street was not included because it occurred after the Jan. 1 valuation date and the assessor argued that such sales should, in accordance with standard practice in his office, be excluded.  I pointed out that the law provided for determining market value as of the January 1 date and that transactions both shortly before and shortly after the date should be applicable. In the end we agreed on a valuation that was intermediate between our positions. The result reached was, as is the case in all good negotiations, somewhat of a disappointment to both sides.

This year was a banner year for the number of appeals by Kaua‘i taxpayers with nearly 1,000 filing exceptions to the amounts of their assessments. Steve Hunt, who is handling over half of the appeals, informed me that in over 15 percent of the cases that he was given, adjustments were made to the assessments, certainly an improvement from the taxpayer’s standpoint from the 2 percent rate that has been applicable in Board of Review hearings.  Property taxes provide over 60 percent of the revenue for our county and are essential for its financing. But fairness to taxpayers is also fundamental and the 2 percent success rate for taxpayers in the Board of Review process is disquieting.  It is unknowable what the true merit rate for appeals may be, but arbitration after an unproductive settlement conference would be a responsible option.  • Walter Lewis is a resident of Princeville and writes a biweekly column for The Garden Island."  Good luck Walter!

 

In my last newsletter Kauia Police Chief Darryl Perry announced he was a candidate for the position of Honolulu Chief of Police.  However, since that time, Chief Perry has withdrawn his name, per a Sep 22nd article in which he said "Kaua‘i Police Chief Darryl Perry said he has withdrawn his name from consideration to be the Honolulu Police Department’s top cop.  “Family comes first,” and a family decision was made to remain on Kaua‘i, Perry said in his letter to the Honolulu Police Commission charged with selecting a new chief."

 

Yet another example of our County govenment came to light in a Sep 25th article "Asing, Bynum argue travel policy."  Seems these two are always going at it, which is, in my opinion good, as it shakes up the good old boys club.   

 

"The sometimes personal argument between Kaua‘i County Council Chair Bill “Kaipo” Asing and Councilmember Tim Bynum that nearly boiled over earlier this summer flared up briefly Wednesday as the two debated the legislators’ travel policy — or lack thereof.  The disagreement began when Asing, the council’s chief procurement officer with the power to OK other members’ travel plans, denied Bynum’s request to be reimbursed for a round-trip flight to Honolulu and a rental car in July — around the same time of Bynum’s and Lani Kawahara’s crusade to address issues of transparency and challenge Asing’s power as chair.

Fellow council members and County Attorney Al Castillo were able to cool things off and keep the discussion civil, and what started as an argument over $150 ended with an agreement to hammer out a written travel policy.  That accord was largely thanks to Castillo, who before Asing could begin his slideshow presentation, warned the chair — offering an “abundance of caution” — to keep the discussion centered on policy and not on his powers as chair or Bynum’s liabilities as a subordinate member, lest the council need to go into executive session.  In his presentation, Asing said Bynum flew to O‘ahu to meet with Special Counsel David Minkin after the attorney was unable to brief the council during its July 8 meeting about a pending lawsuits involving the county.

The July 8 agenda included two executive sessions: one for cases involving 1000 Friends of Kaua‘i and a pair of Eastside development projects, and another involving the Sheehans’ permits along the Hanalei River.  Earlier, in the open session portion of the meeting, the council had approved an additional $175,000 for special counsel to work on the two cases.

On July 14, Bynum flew to Honolulu to meet with Minkin, but when he returned and asked Asing to sign off on the travel reimbursement, the chair said he would not.  “I didn’t feel that it should have been done in the manner it was done,” Asing said Wednesday, noting that a telephone conference would be a more efficient and cost-effective way of getting a briefing from an attorney, and adding that Bynum’s “one-man executive session ... violated the spirit of the Sunshine Law.”

Bynum said a settlement was imminent, that “time was of the essence” and he did not feel he had done anything inappropriate. He said after the meeting that the cost of the flight and the car rental was in the range of $150.  Bynum said he agreed with some of Asing’s rationale, but said the chair’s policy on not flying to Honolulu to get briefings from special counsel was not previously laid out in detail or put in writing.  Asing later said that forming a written travel policy for councilmembers was an “excellent idea” and said council staff would draft such a policy." 

 

Remember the fool who shot the monks seals for no reason?  There have been several articles the last couple of months in this newsletter.  Well, they finally found him, per a Sep 25th article " Monk seal shooter pleads guilty."

 

"The Kaua‘i man charged with fatally shooting an endangered Hawaiian monk seal earlier this year pleaded guilty on Friday morning to violating the Endangered Species Act, and will likely face 90 days behind bars.  Charles Vidinha, 78, will also be forced to pay a special assessment of $25, according to the plea agreement that was released to the media later Friday by the U.S. Attorney’s office. Had no plea agreement been reached and Vidinha been found guilty of the one count with which he was charged, he would have faced up to a year in prison and a $50,000 fine. His trial had been originally scheduled to begin Oct. 14."   Can you believe that?  A big $25 fine...let's hope he gets the 90 days behind bars but somehow I'm just not so sure he will.

 

I'd like to finish with an interseting article from the Sep 28th Garden Island

 

"Flash forward 15 years from now.  Everyone is puttering around in miniature electric cars powered by solar-charged batteries. There are shuttle systems which carry the cars and their owners to destinations across the island and Kaua‘i is no longer dependent upon foreign oil.  Sounds like a science fiction fantasy or a scene from the animated sitcom “The Jetsons,” but it can be done, Tony Locricchio said at Thursday’s Apollo Kaua‘i meeting.

From “solarizing” neighborhoods to manufacturing $3,000 vehicles on island, Locricchio’s model for “changing America’s transportation and power systems” is a “doable project in a limited number of years.”  In the United States each family has an average of 2.3 vehicles, whereas in Hawai‘i, that number is 3. Locricchio blamed the discrepancy on a lacking mass transit system and spouses who have to work to make ends meet.  But with a declining economy and a deepening visitor industry slowdown, “life on Kaua‘i is going to change dramatically,” he said, affirming the urgent need to become more self-sufficient and less reliant on imports.

Having electric vehicles and LiFT (land-integrated ferry transport) stations is “pretty revolutionary” and would “really meet the future of transportation,” he said.  “Job creation is the key to all of these proposals,” said Locricchio, head of Renewable Electronics Transportation International.  Employment would be possible everywhere from manufacturing plants for the vehicles — which could be made with materials gathered on island like bamboo and reclaimed metals — to “solar orchards” where the “fruit” harvested would be battery packs.

“Electric vehicles are really the future,” Brian Goldstein of Better Place Hawai‘i said Thursday evening in a presentation following Locricchio’s. His business presented a “solution” to the high cost of battery-operated vehicles.  The reason more individuals have not converted to alternative vehicles is largely due to the high cost of batteries, he said. His plan is to provide an exchange program for them, reducing the cost to consumers.  “It’s like a cell phone service,” he said. “You sign a contract, but instead of buying minutes, you buy miles.”  And rather than gas stations, battery exchange locations would be located across the island for cars of different makes and models.  While both entrepreneurs presented separate business plans, their fundamental goal was the same.  “We need to break the addiction to oil,” Goldstein said.For more information visit
www.evtransports.comor www.betterplace.com/global-progress/hawaii."  I don't know about you, but I plan to be around here 15 years from now and this sounds very interesting to me.

 

On a final note, before I go to your monthly update I'd like to share my own good news.  My significant other of 2 years proposed on the second anniversary of our meeting.  Prior to that occuring, I told him my present to myself for my 60th birthday,which is Oct 20th, was a trip for us to Bora Bora with lodging in an overwater bungalow.  I have always dreamed of those wonderful bungalows.  After accepting Jack's surprise proposal, I decided that our Bora Bora trip would be a perfect birthday / wedding / honeymoon setting - so we are getting married at sunset on the beach in Bora Bora on my birthday and my birthday present will be one perfectly charming, loving, wonderful husband! 

 

If you are going to be on Island between Oct 16th and Oct 24th, I am sorry to say that I will not be here to meet with you.  By the same token, my email correspondence will be drastically curtailed so please ask all your questions now or later but not during that week. All of you are important to me and I wanted to share this with you and let you know I am here to assist you in any way -- just not during that particular week. If you are here during that time, and will need the services of a real estate agent, please let me know now and I'll refer you to someone else who will take good care of you.  I may be checking email and voice mail sporadically - so you can leave a message and I'll get back to you - eventually.  As I said, I am back on Island, in the swing of things as of Saturday morning on the 24th.

 

Enough -- on to your update! 

 

Aloha Elaine
 



posted by elaine@kauairealestatenow.com October 09, 2009 13:00 | permalink | comments (0) | General

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