The Koolauloa Neighborhood Board’s vote to support the “Envision Laie Development Plan” and a proposed 1,200 new homes is being challenged by two board members, who say violations of the sunshine law and glaring conflict of interests should nullify the vote.

Following sometimes heated public testimony at a special July 31 public hearing, members of Neighborhood Board 28 voted 7-4 in favor of the development.

But a complaint filed with the Neighborhood Commission argues the board violated the sunshine law by voting on the issue without hearing all public testimony or hearing responses to concerns raised, and without any opportunity for Neighborhood Board members to question the project’s sponsors.

The complaint also questions whether five board members employed by Mormon organizations behind the development should have recused themselves because of their conflicts.

Those filing the complaint were former board chair Dee Dee Letts and long-time Punaluu resident and community leader Creighton Mattoon.

Minutes of the special meeting confirm that public testimony was initially cut off after 50 minutes to keep to a previously announced schedule. But with 25 people who signed up to testify still waiting for the opportunity, the board extended the hearing for an additional ten minutes, for a total of 60 minutes of public testimony.

When the 10 minutes had expired, there were still 21 people signed up and still waiting to testify. They were told to submit their views in writing.

Then a motion was immediately made by board member Kela Miller to “accept and support” the Envision Laie Plan. It was later disclosed that Miller is employed by Hawaii Reserves, Inc., the real estate and development arm of the Mormon Church and sponsor of Envision Laie.

The motion was seconded by John Elkington, an employee of BYUH, another project sponsor.

Mattoon objected, according to the minutes, saying no action should be taken until all testimony had been heard. He also noted requirements for disclosure of conflicts of interest.

The board finally agreed to continue with testimony of all those who had put their names on a sign-up sheet.

When that testimony was completed, Miller and Elkington again offered their motion to support the plan.

Two other board members, Moana Kalua’u and Norman Kaluhiokalani, also disclosed that they are employed by BYUH. Kaluhiokalani, known as Coach K, is the cross country coach at the school. Another board member, Les Steward, is a recent past president of the BYU-Hawaii Alumni Association.

Of the five board members with direct ties to the project’s sponsors, only Kalua’a voted against the motion to support the project. The motion carried 7-4.

In their complaint, Mattoon and Letts assert that sunshine requirements were skirted when sufficient sign-up sheets were available, some who wanted to testify were unable to get onto the list, and then testimony was limited to those who had signed up. According to the complaint, the chair made no effort to solicit testimony from those who arrived late or could not sign up because “sign up sheets were not available.”

The Neighborhood Plan, which provides the rules of procedure to be followed by the neighborhood boards, requires disclosure of conflicts but does not prohibit voting on matters where a conflict may exist.

§2-11-310 Disclosure. (a) Any commissioner who knows he or she has a personal or private interest, direct or indirect, in any proposal before the commission shall disclose the interest either orally or in writing to the commission. The disclosure shall also be made a matter of public record before the commission takes any action on the proposal.
(b) A commissioner who makes any disclosure shall not be disqualified from participation in the discussion or vote on the matter. A commissioner may choose to be recused. A recused commissioner shall not participate in the discussion or vote. The recusal shall be recorded in the meeting minutes.

However, it also provides:

§2-13-105 Conflicts of interest. (a) No board member shall:

…(3)Engage in any business transaction or activity, or have a financial interest, direct or indirect, which is incompatible with the proper discharge of a member’s official duties or which may tend to impair the independence of judgment in the performance of the member’s official duties.

The complaint is pending before the Neighborhood Commission.