The Hawaii Community Development Authority approved a 5 percent increase for executive director Tony Ching at a time when other state officials are subject to a 5 percent salary cut because of tight fiscal times.

Two sources tell Civil Beat that the HCDA made the recommendation during an executive session on Feb. 1 while discussing Ching’s performance evaluation. Three HCDA board members opposed the pay raise, but a majority of the 18-member board voted in favor.

However, because the pay raise was not listed on the public agenda for the Feb. 1 meeting — an apparent violation of state law — the authority plans to vote again on the raise, perhaps as early its March 7 meeting. The HCDA meets on the first Wednesday of each month.

Civil Beat granted anonymity to the two sources — both members of HCDA — because they had direct knowledge of authority deliberations; their work with the HCDA could be in jeopardy because they spoke to the press.

If approved, Ching’s annual salary would increase from $110,250 to $115,762 — an increase of $5,512.

Because of the 5 percent cuts imposed on salaries, Ching’s fiscal year 2012 salary was reduced to $104,736.

With a pay raise that still factors in the 5 percent cut, Ching would make about $110,000 — more than $103,512 earned by Richard Lim, director of the Department of Business, Economic Development and Tourism, to which the HCDA is administratively attached.

Ching told Civil Beat that he could not comment on executive session matters; in fact, he was not part of the Feb. 1 session.

“I was not invited, so I can’t confirm or deny what happened,” said Ching, who has held his post for four years. “Typically, they are are veiled in confidentiality. What I can say is that I haven’t been notified of a pay increase or pay raise, and at this point it is not on the March agenda. Nor do I expect it to be. I am not requesting a pay raise at this time.”

Memo Says Otherwise

Ching may not be seeking a raise, but members of the HCDA appear to want to give him one anyway.

That’s according to a Feb. 8 email obtained by Civil Beat. It was sent by HCDA Secretary Patricia Yoshino to HCDA members on behalf of Chair Joseph “Kepa” Dwight:

Aloha Members: 


Chair Dwight has issued the following statement: 


All, 
With regard to the issue raised in the executive session held this past Wednesday, February 1, 2012–specifically, whether Member (Alicia) Maluafiti may disclose how she voted on the Executive Director’s salary increase even though the vote occurred during an executive session–I am informed, after review by the Attorney General’s office, that Member Maluafiti’s inquiry is moot because the issue of a pay raise was not on the agenda, and therefore should not have been the subject of a vote. The agenda only referenced the performance evaluation of the ED and not the issue of an increase in the ED’s salary. These are two different items. The vote that was taken is therefore invalid.

(Deputy Attorney General) Lori (Tanigawa) did not know that the issue of a pay raise was going to be a topic of discussion or be the subject of a vote when she reviewed a draft of the agenda. Upon further review and based upon what actually took place at the meeting, however, Lori has determined that the vote on the ED’s pay raise should have been specifically identified on the agenda and should have been held in an open meeting. She apologizes for not identifying these issues earlier.

I will inform Tony that we will need to place the issue of an increase in his salary on the agenda.

Even though the vote should not have occurred, I’d like to remind everyone that matters discussed in executive meeting to evaluate the performance of the Executive Director is confidential. Personnel issues are generally to remain confidential.  Lori refers us to §92F-14 regarding confidentiality of this discussion. 


Kepa Dwight

Chairperson

Hawaii Community Development Authority

Civil Beat left a message for Dwight at the HCDA. A spokesman for the Office of the Attorney General said the office does not comment on matters involving attorney-client privilege.

Asked about the email, Ching said he could not comment on something he did not write.

“Please take me at word that in terms of the March agenda, I believe there will be no item regarding pay,” he said, adding, “It is my belief that I received a positive evaluation, which means that I am still employed.”

As of Wednesday, the HCDA had not posted its March 7 agenda.

The minutes from the Feb. 1 meeting are also not yet posted, though Ching said they would be “shortly.” Minutes for the executive session, he said, would be posted at a later date.

What the HCDA Does

The HCDA is a state agency created in 1976 “to supplement traditional community renewal methods by promoting and coordinating public and private sector community development.”

The lands under HCDA’s purview are 660 acres in Kakaako and 3,770 acres in Kalaeloa. The authority’s membership is being expanded to add representation of 400 acres in Kaneohe under title to HCDA and administered by the Heeia Community Development Authority.

HCDA has been in the news lately because of the state’s proposal to give 25 acres in Kakaako to the Office of Hawaiian Affairs to settle a ceded-lands revenue payment. HCDA would still administer the lands.

HCDA is also at the center of the Abercrombie administration’s plans to turn Kakaako into a “third city” — beginning with the proposal to build a 650-foot tower and two smaller residential and commercial buildings in Kakaako.

As such, the board is in the news a lot and is politically influential.

Civil Beat’s sources say a majority of the HCDA felt Ching deserved a pay raise, despite the tight budget situation. The increase would not have to be approved by DBEDT or the governor.

One of the sources said they used Civil Beat’s database of state salaries to compare how Ching’s salary stacked up against comparable posts.

Asked if he had any other comment about a salary increase, Ching instead commented on the mission of the HCDA.

“I think the work we do is very important and we are challenged to do the very best that we possibly can,” he said. “I respect the efforts of all members toward that end and hope that in the future we are talking and are more concerned about relevant issues of how we are doing out jobs.”