As expected, Mayor Mufi Hannemann named former state Rep. Kirk Caldwell yesterday as his managing director, the city's No. 2 position.

Hannemann's current managing director, Wayne Hashiro, is leaving to head the Board of Water Supply as its chief engineer. Caldwell, a close Hannemann political ally, had been considered for a Cabinet position since Hannemann won re-election last month.

“;(Caldwell) has many of the qualities that I am looking for in a managing director,”; Hannemann said yesterday at a news conference. “;I think he'll hit the ground running. Though he hasn't been at the city government before, his background speaks volumes.”;

Caldwell, who represented Manoa in the state House, served as House majority leader but dropped out of the state race to run for City Council - in part because of Hannemann's influence. He was disqualified from the City Council race after he failed to formally withdraw from the state House race before filing for the City Council.

Without an election of his own this year, Caldwell helped Hannemann in a campaign to get voters to approve Hannemann's proposed $4 billion rail transit system in a ballot question.

“;Our relationship took a much closer turn,”; Hannemann said. “;I feel that he was one of the individuals I would look upon to say that when we look at the 53 percent victory margin, Kirk was very instrumental in bringing that on.”;

Hashiro maintained a low profile as managing director, serving as acting mayor when the mayor was out of town, but worked behind the scenes on everyday functions for the city.

Caldwell, on the other hand, has been one of Hawaii's more visible politicians. If Hannemann runs for higher office in 2010, Caldwell could have an advantage in a special election to fill the mayor's seat.

“;He could use the managing director position as a jumping-off point,”; said Neal Milner, a University of Hawaii political scientist. “;Caldwell is walking into a situation where they anticipate fluctuation soon in regards to the mayor because everyone expects Mufi to run for higher office.”;

Hannemann has repeatedly said he is open to running for Congress or governor in 2010, but has not made any commitments. Caldwell declined yesterday to say whether he is interested in running for mayor should Hannemann leave.

“;If something happens in the future, we'll have to see,”; said Caldwell, who is leaving his position as a law partner at Ashford & Wriston. “;I'm not going to speculate. I'm committed to working hard for the next four years.”;

The managing director is paid $120,000 a year. As with all Cabinet positions, Caldwell has to be confirmed by the City Council.

Councilman Charles Djou said in a statement yesterday that he looks forward to reviewing Caldwell's background.