HONOLULU -- Mayor Mufi Hannemann Tuesday announced the appointment of John Reed as city managing director.

Reed was a Duty Free Shoppers executive for 21 years, retiring as chairman of DFS Pacific Retail. Reed then moved to Walnut Creek, Calif., where he co-founded and headed BriteSmile Inc.

Reed said he has a clear idea of how he'll manage the city.

"Everything to me is a business. If it's a church and you don't have enough income you are going to close the church. If it's a city and you don't have income to match expenses you are going to go bankrupt; run it like a business, similar to a business," Reed said.

Hannemann Tuesday also appointed Mary Patricia Waterhouse to be the city's budget and fiscal services director. Waterhouse is currently vice president of finance for Catholic Charities. Waterhouse was deputy state comptroller during Gov. Ben Cayetano's administration.

Hannemann appointed retired Air Force Col. Lester Chang to head the Parks Department.

The parks deputy will be Dana Takehara Dias, the current athletic director of Moanalua High School.