Former councilman fined over gifts

The agreement between former City Councilman Nestor Garcia and the Honolulu Ethics Commission to settle claims that he accepted illegal gifts and failed to report them may throw a monkey wrench into the future of the city’s $5.8 billion rail transit project.

Garcia agreed to pay the city a civil fine of $8,100 to settle allegations that he accepted illegal gifts and failed to report them, the Ethics Commission announced Wednesday.

The case stems from an allegation made last year by former Councilman Romy Cachola — after he was fined by the commission — that he was being unfairly singled out when others also accepted meals and free golf games but didn’t report them. He alleged that besides himself, current Council members Ikaika Anderson and Ann Kobayashi received free meals and golf, as did former Council members Todd Apo, state Sen. Donovan Dela Cruz and Garcia.

Cachola went further, stating that it could be argued that all the votes that the Council members in question voted on could be invalidated.

Chuck Totto, commission executive director, said the other cases raised by Cachola’s allegations are ongoing.

The Ethics Commission report does not address the allegation by Cachola and his lawyer that improper votes could lead to the invalidation of key legislation allowing for rail and other development.

But Totto made it clear that his staff believes Garcia’s votes that benefited the interests of the lobbyists who gave him unlawful gifts should be nullified.

The advisory opinion refers to two unnamed firms that gave Garcia illegal gifts.

Cachola, however, told reporters in the fall that the commission questioned his votes on rezoning approvals for the Aina Nui Corp., master developer of Kapolei, and its predecessor, the former Campbell Estate, as well final approval for the city to move forward with a fixed guideway technology for the rail project as well as the annual budget for rail. Cachola gave reporters worksheets showing that meals were paid by lobbyists for Aina Nui and Campbell Estate, as well as the pro-rail political action group Pacific Resource Partnership.

"Because (Garcia) did not disclose the conflict before voting on the lobbyists’ measures, his vote would be nullified," Totto said in an email, in response to a Honolulu Star-Advertiser query. "Then the Council would have to determine whether the subtraction of his vote would change whether the measure passed."

A single Council member’s vote likely would matter only on close votes.

But if more votes could be deemed invalidated, it could theoretically spell trouble for all the votes that benefited lobbyists from whom they received unlawful gifts.

Council Chairman Ernie Martin, after learning of Totto’s interpretation, said in an email: "In light of the advisory opinion from the Ethics Commission, I will be discussing this matter with the city’s corporation counsel (Donna Leong) to determine the possible impact, if any, on votes cast during the period in question."

Garcia is agreeing to pay the city the civil fine to close the case, but the commission made no conclusion that he violated ethics law.

However, "Garcia admitted and acknowledged the alleged violations, and agreed to pay the city treasury $8,100 in civil fines," the advisory opinion said.

Garcia, a KHON-TV news reporter, had no comment Wednesday afternoon. He served on the Council from 2003 to 2013, then returned to broadcast journalism.

The advisory opinion said an investigation found Garcia "failed to disclose a conflict-of-interest in 72 bills and resolutions which affected (two unnamed lobbyists’ interests), including legislation affecting rail transit, Kapolei and matters in which (the two lobbyists) testified in support."

Garcia received $1,764.40 from those two lobbyists "in gifts of free meals and golf to discuss" various matters of interest with them, the advisory opinion said.

The advisory opinion noted that the commission took into consideration that in June 2012, Garcia agreed to pay the city $6,500 in civil fines for failing to disclose a conflict of interest because he was an executive with the Kapolei Chamber of Commerce when he voted on 52 bills and resolutions related to rail transit and rezoning approvals favored by the organization.

The prior misconduct "compounds the nature and seriousness of the allegations in this case," the advisory opinion said.