Kauai County Council Meeting Summary - January 7, 2026

The Kauai County Council convened on January 7, 2026, for a meeting marked by significant celebratory tributes, a critical briefing on the future of Kauai Coffee, and a supportive resolution regarding Kamehameha Schools. The session opened with a certificate presentation for muralist Trison Kanishige, followed by a detailed public briefing exposing a potential closure of the Kauai Coffee operations and a legal challenge to Kamehameha Schools' admissions policy. The Council unanimously passed a resolution reaffirming support for Kamehameha Schools and referred the fiscal year 2024 audit to the Finance Committee for deeper review of material weaknesses. Additional routine items including indemnifications, federal fund allotments, and claims were also approved or referred.

Consent Calendar

• Certificate of Appreciation: Presented to artist Trison Kanishige for his mural work at the Kauai Veterans Museum.
• Minutes Approval: Minutes of the December 17, 2025, council meeting were moved and approved.
• Document Receipt: Item C2026-01 (receipt of document) moved and approved.

Public Comments & Testimony

• Trison Kanishige: Shared his personal history, noting that mural art became his therapy to heal from multiple concussions suffered during high school soccer. He explained that his grandfather's service in the Korean War inspired his dedication to veterans and that he seeks to use art as a healing tool for the community. He expressed a desire to expand mural initiatives as educational tools for students and mental health advocacy.
• Bart Thomas, Director of Kauai Veterans Museum: Highlighted the museum's unique status, with 80% of its artifacts donated by island families. He confirmed that Trison's work transformed the museum walls with realism depicting major conflicts and announced an upcoming unveiling event featuring a blessing, food, and a Jurassic Park movie premiere.
• Councilmembers & Staff on Kamehameha Schools: Multiple speakers (including Councilmember Cowden, Kaneshiro, and Kuli) testified in strong support of Kamehameha Schools. Councilmember Cowden described the legal attack as "atrocious" and expressed that attacking the school is an attack on the community's cultural anchor. Councilmember Kaneshiro emphasized the school's role in evening the playing field against generational inequalities, while Councilmember Kuli noted that he is not Hawaiian but feels the attack is disrespectful to the island's culture and the legacy of Princess Pauahi Bishop.
• Kauai Coffee Leadership & Staff: Wayne Katayama, Senior Advisor, warned that 141 employees face termination notices by March 28, 2026, because the leaseholder (BBCP) will not renew the lease. Employees present testified to the economic and social importance of the coffee plantation, expressing fear of the loss of their local culture and livelihood.
• Councilmember Cowden (Kauai Coffee): Expressed deep disappointment and concern regarding the potential loss of the operation, emphasizing the critical need to maintain the agricultural land and prevent it from being redeveloped.
• Councilmember Kanashiro (Kauai Coffee): Reiterated his support for Kauai Coffee as a pillar of his pro-agenda, noting its role in exporting locally and preventing over-dependence on tourism.
• Councilmember Bulasan (Kauai Coffee): Stated that the potential loss of the coffee shop would impact community mental health and urged the council to leverage their influence to keep the business viable. He emphasized that "AO" (Aloha 'Oe/Community) must stand with the community.
• Councilmember Kuli (Kauai Coffee): Expressed gratitude and prayed for a solution, noting the 60-day notice period gives the council little time to react.
• Councilmember Conoshiro (Audit): Expressed strong concern regarding the recurring material weaknesses and the delinquency of the audit, stating that being late is "not acceptable" and demanding a plan to resolve staffing and accounting issues immediately.
• Director of Finance Rachel Rayco: Took full responsibility for the audit delays, acknowledging the information is 18 months behind schedule. She explained that hiring higher-level accountants has been difficult due to a lack of qualified candidates in the pool and that the current team is "cleaning up the mess" left under previous administration.

Discussion Items

• Muralist Recognition & Future Initiatives: Trison Kanishige proposed a "Call to Mural Initiative" to create plot-based, educational murals around the island to teach history and provide therapy. Councilmember Conoshiro suggested he contact the Office of Economic Development if funding is involved. The Council expressed strong admiration for the realism of his work and its cultural value.
• Kamehameha Schools Legal Challenge: Rosalind Rosello, Director of Government Relations, briefed the Council on the lawsuit by Students for Fair Admissions (SFFA), claiming a violation of 42 U.S.C. 1981. She clarified that Kamehameha Schools is a private entity receiving zero federal funding, and the lawsuit targets the charitable intent of Princess Pauahi Bishop to care for her "Lahui" (people). She noted a previous 2006 Ninth Circuit victory by Kamehameha and explained the school's shift toward developing "OEV leaders" (Olo 'Ea) and regenerating the 'Aina. Councilmember Rios questioned the legal basis given the lack of federal funds; Rosello specified the 1866 law regarding contracts is the basis. Councilmember Kabahola and others emphasized the distinction between race-based discrimination and the indigenous rights/origin status of Native Hawaiians as the intent of the will.
• Kauai Coffee Lease and Operations: Wayne Katayama detailed the crisis where the land owner, BBCP, will not renew the lease, threatening the lives of 141 employees. He explained that a fully integrated specialty coffee business requires more than just land; it needs a 24/7 water management system, a skilled workforce, and a global distribution network (which was built with partner Massimo Zanetti). Councilmembers asked about the possibility of moving to new land; Katayama noted it would take five years to mature new trees and that the global brand would be lost without the existing distribution network. Councilmembers expressed concern that the landowner may intend to subdivide the property, though Katayama noted a small sliver of ADC zoning exists but the majority is agricultural.
• Fiscal Year 2024 Audit: Auditors from N&K CPA presented the report, identifying four material weaknesses: (1) Controls over post-closing journal entries (repeat finding), (2) Reconciliation of investment balances (repeat finding), (3) Untimely processing of expenditures, and (4) Prior period adjustments for government prior obligations. Director Rayco admitted the audit is 18 months late and accepted full responsibility. Councilmember Conoshiro challenged the explanation of understaffing, demanding a concrete plan and budget to fix the issues, fearing the problem will only compound. Director of Human Resources Annette Anderson explained the difficulty in integrating Workday HR software with financial reporting systems, noting that manual processes are currently required to compile accrual reports, leading to the identified findings.

Key Outcomes

• Resolution 2026-01 Adopted: The Council unanimously passed a resolution strongly supporting Kamehameha Schools' admissions policy, reaffirming the mission of Princess Pauahi Bishop, and urging all levels of government to respect the school's legal and cultural foundations.
• Audit Referred to Committee: The Council moved to refer the receipt of the 2024 audit report to the Finance Committee to allow for a deeper review of material weaknesses and to formulate questions for the administration before a full council discussion.
• Consent Calendar Items Approved: C2026-01 (receipt), C2026-02 (Kauai Coffee public comment), C2026-3 (Audit briefing), C2026-5 (Navigate 360 indemnification), C2026-E5 (Aging federal funds), C2026-06 (CZM funds), C2026-7 (Aging donations), C2026-9 (Credit card chargebacks), C2026-10 (Travel reimbursement), and C2026-11 (Claim referral) were approved or referred.
• Kauai Coffee Situation: While no immediate resolution was passed, the Council received a formal briefing on the imminent threat to 141 jobs and the potential loss of the island's largest coffee plantation, with Councilmembers vowing to support the industry and investigate potential pathways to save the business.
• Kamehameha Schools Support: The Council formally affirmed its stance against the legal challenge, signaling political support for the school's indigenous educational mission.