Political

Molokai and Hawaii – Island Politics

Concerned Community Members Take the Water Issue to the Capital

Wednesday, September 10th, 2008

Concerned Community Members Take the Water Issue to the Capital

Water Rates Protested at Capitol

Wednesday, September 10th, 2008

Fair process demanded of State officials.

By Catherine Cluett

All eyes were on Molokai as over 30 Molokai residents and supporters packed into a meeting room in the state capitol building last Thursday. The words “extortion,”
”unprecedented,” and “crisis” echoed around the room as TV cameras scanned the group, waiting for a press conference to begin.

Resource conservation group Hui Ho’opakale ‘Āina (“Rescuers of the Land”) and supporters, were on a mission: to demand a fair and just process to re-examine soaring water utility rates on Molokai, as well as raise statewide awareness of the situation. Stops included the offices of Governor Lingle, the Public Utilities Commission (PUC), the Ombudsman, and the Department of Commerce and Consumer Affairs (DCCA).

After Molokai Ranch threatened in June to cut water services to 1,200 residents, the PUC hastily approved exorbitant rate increases, as high as 178%. State representatives said the unprecedented move was necessary in order to keep the Ranch’s faltering utility companies from going under.

“My parents and other kupuna are on fixed incomes; I don't know how they're going to pay their water bill,” said Byron Espaniola of Maunaloa. He said his mother, Josephine, already pays $200 a month for medical treatment.


Purpose of the Trip
The purpose of the protest, explained activist and Molokai resident Walter Ritte at the press conference, was not to request decreased water rates, but to ask lawmakers to void the original process, and to hold a second hearing. Many Molokai residents feel that the first hearing, held by the PUC on July 15, did not afford them a chance to speak out against the increases and was arranged more as an announcement than a hearing, with the facts presented in a muddled and hurried manner. There was no process on the part of the PUC, argue Molokai residents, to find out what the rate should have been before it was set.

Support
Hui Ho’opakale ‘Āina drew many supporters from ohana and concerned residents of Oahu. Daniel Anthony from Wai’anae brought his two young daughters along on the protest. He said he was there because of them. “I’m raising them to fight for their rights,” he explained. “They’re going to see water prices rise astronomically in their lifetime.”

Manu Mook, also an Oahu resident, joined the group in their march and added a ceremonial presence with the blowing of his pu. He explained he was concerned for Molokai residents, and also about setting a statewide precedent caused by the rate increase.

Representative Mele Carroll and Senator Clayton Hee, both of whom spoke during the press conference, also added well wishes to the group. “The Ranch should not walk away from its legal and moral obligations,” said Carroll. “This is injustice, and I stand in support of the people of Molokai.”

“This land developer could be on any island, it just happens to be Molokai,” said Hee. “This is not magical, this is not complicated. It’s simply about a profiteer on an island that wishes to do what the island is not suited to do.”

Molokai resident Timmy Leong added that the rate hikes could be the straw that breaks the camel’s back. “With gas prices on Molokai at $5.16 per gallon, high costs of food, and soaring electricity rates, the water rate increase is just too much.”

Official Reactions
Holding colorful signs up high with messages like “Lingle on the wrong side… again,” “Water is a right,” “Da Ranch should pay,” and “Fight back,” the group marched up the stairs and along the balcony of the capitol building to their next stop: Governor Lingle’s office. The activist group came prepared, bearing letters to each office they planned to visit, stating their goal and complaint.

“I appreciate your taking the time to come here. We’re looking for the same thing, and hopefully we can come to a solution we all agree on,” said Lingle’s chief of staff Barry Fukunaga.

But it’s unclear what that solution might be or whether or not the Governor will support Molokai residents. As Molokai protester Jim Stone points out, Governor Lingle used to live on Molokai. “The governor forgot about us,” he said.

“There are other ways to deal with this than putting the cost on the people,” explained Ritte in the office of the PUC.

A secretary took the message. “I will take the files and make sure the commissioners see them,” she explained with a skeptical smile through the glass barrier, surveying the crowd packed into the small office lobby. None of the commissioners were available to meet the group.

“Well, please give them a message,” Ritte told her. “Watch the news tonight.”

Hawaii State Ombudsman Robin Matsunaga, who is investigating the PUC and DCCA involvement in the Molokai rate increases, told protesters the investigation was not yet complete, and that the office “cannot guarantee the results.” But, adds Matsunaga, “We are acutely aware of how this affects all of you.” He assured them the office is doing its best to complete a thorough examination of the agencies.

Catherine Awakuni, Executive Director of the Division of Consumer Advocacy at the DCCA, responded to the protesters’ request for another hearing with her own request. “We also need help,” she said. “This is unprecedented, but we made the best decision based on the information we had. We need more information about what people can pay,” Awakuni added. She was unclear about just how the DCCA planned to get more information.

The rate increase will remain in effect for up to six months until a more comprehensive investigation can be completed.

Awakuni explained that the DCCA normally limits rate increases to no more than 25%, and that an “increase of greater than 25% constitutes rate shock.” But in light of the threat of Molokai Properties walking out, the Consumer Advocate approved the rate, deeming it a better alternative for Molokai residents than a loss of water utilities.

“There was not adequate information at the time for a normal review,” added Awakuni. The DCCA plans to gather that missing information in the next six months.

Mana’o
Hoi Ho’opakele ‘Āina and supporters gathered on the grass under the shade of a spreading tree outside `Iolani Palace after their march to talk story and share their thoughts.

Jim Stone opened the mana’o session by sharing his congratulations to the group for conducting such a “civilized and non-violent protest, working within the system.” “I’m proud to be a part of it,” he added.

Molokai resident Edna Cathcart echoed Stone’s sentiments. “Although we were hurt,” she said, “we held that hurt and conducted ourselves with pride.”

Former Ranch employee `Anakala Pilipo related how difficult it was to challenge Ranch authority and stand up for what he knew was right. “But you have to have pono,” he said. “It starts with the individual.”

Judy Caparida talked about the spirit of Molokai residents. ““Even if you don’t see us, we’re not sitting around doing nothing.”

Future Action
The group certainly isn’t sitting around; neither is it stopping after one trip. A similar protest will likely follow, this time on Maui to push lawmakers to consider the option of eminent domain against Ranch lands.

Legal action on the part of Molokai residents has also been discussed, with a possible law suit against the Ranch in the future. Molokai resident and ratepayer Steve Morgan says his ideal resolution to the situation would be to see Molokai residents manage their own resources. “This isn’t one day,” he said of the protest. “It’s one of many.”

Community Voice in Jeopardy as Akaku Faces Bid

Wednesday, September 10th, 2008

By Catherine Cluett

Akaku, the public television station for the county of Maui, may be up for bid because of controversy over its funding. Hawaii would be the only state to put its public access organizations up for bid, a decision which some say could disrupt and even jeopardize the future of public access television.

But Akaku isn’t ready to give up, and it hopes Molokai isn’t either. As Linda Puppolo, Administrative Services Director of Akaku, says, “We are fighting until there is no more to fight.”
.
What is Akaku?

Akaku is one of four public, education, and government (PEG) access organizations in Hawaii, and services the county of Maui. The private non-profit was created by the State of Hawaii in 1993 as a brand for public access, and has maintained close associations with the community ever since. It is funded by cable subscriber fees, three percent of which go into a fund to support Hawaii’s public access stations.

Ranch CEO Assumes Tighter Control of 13 Molokai Companies

Monday, September 8th, 2008

Eight of the companies are subject to recent County of Maui lawsuit.

By Molokai Dispatch Staff

Ranch CEO Peter Nicholas continues to control operations from behind the scenes, rarely seen on Molokai in recent months since making a “business decision” to shutdown Molokai Ranch operations.

Nicholas has assumed greater control of at least 13 different Molokai companies affiliated with Molokai Properties Limited (doing business as Molokai Ranch) that deal in, among other things, real estate sales, land ownership and management, water and wastewater delivery systems, water sales and development projects.

One such project is a five mile coastal development in West Molokai known as La`au Point, which is still considered viable by the company. Nicholas recently suspended the entitlement process needed to develop the La`au project.

But the Ranch’s ability to supply water to its properties and to proposed future developments like La`au Point are currently jeopardized by two major legal decisions.

In late 2007, the Hawaii State Attorney General decided the company could no longer use the state-owned Molokai Irrigation System to transport water to West Molokai without undergoing a potentially extensive environmental assessment.

Less than one month later, the Hawaii State Supreme Court ruled that the Ranch’s permit to draw one million gallons per day from Well 17, in central Molokai, was no longer valid and would not be renewed.

The Ranch’s latest business decision anticipates Maui County taking over three of the company’s six utility subsidiaries. The move would forseeably leave the County and its tax payers to make sense of the Ranch’s complicated water and legal issues.

In the mean time, Nicholas has stripped away the officers from many of the Ranch’s subsidiary companies, leaving himself as sole director. Nicholas is President and Executive Director of Molokai Ranch and a Vice President of GuocoLeisure Limited, a Singapore-based billion dollar company which owns 100% of Molokai Ranch.

At the Controls
As of July 18, Nicholas has assumed personal control over Molokai Public Utilities and Waila O Molokai, which delivers water to the Kaluakoi resort and the towns of Maunaloa and Kualapu`u respectively. Both utility companies, subsidiaries of the Ranch, list Nicholas as director and sole officer or each company.

In a PUC hearing held July 2008, Nicholas informed commissioners that, “with regard to the (officers of MPL’s utility companies) Mr. John Sabas, Mr. Dennis Ikeda, and Mr. Roy Sugiyama are no longer employees of the company, and Mr. Daniel Orodencker is not an employee of the utilities.”


Companies managed by Peter Nicholas
Information was taken from current State of Hawaii Business Registration Office records. (Companies listed 1 thru 8 are all subject to recent lawsuit filed by the County of Maui)

1. Molokai Properties Limited (dba Molokai Ranch)
Peter Nicholas -President, Exec. Director, and Director as of July 18, 2008
Daniel Orodenker, General Mgr., Secretary, Director, as of July 18, 2008
Elaine Hammond, Treasurer, as of July 18, 2008
Richard Lim, Director, as of July 18 2008

2. Waiola O Molokai, Inc. (Wholly owned subsidiary of MPL)
Peter Nicholas - President, Secretary and Director as of July 11, 2008
No other officers or directors.

3.. Molokai Public Utilities Inc. (Wholly owned subsidiary of MPL)
Peter Nicholas - President, Secretary and Director as of July 11, 2008
No other officers or directors.

4. MOSCO Inc. (Wholly owned subsidiary of MPL)
Peter Nicholas - President, Secretary and Director as of July 11, 2008
No other officers or directors

5.. Kaluakoi Sewer LLC
Peter Nicholas - President, Secretary and Director as of July 11, 2008
No other officers or directors

6.. Kaluakoi Land LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager since November 5, 2007
Dennis Ikeda, Manager since November 5, 2007
Daniel Orodenker, Manager since November 5, 2007

7.. Kaluakoi Water LLC
Peter Nicholas - President, Secretary and Director as of July 11, 2008
No other officers or directors

8.. Cooke Land Company, Inc.
Peter Nicholas, President, Director July 18, 2008
Daniel Orodenker, Secretary and Director since July 18, 2008
Elaine Hammond, Treasurer since July 18, 2008

9. MRL Management Limited
Peter Nicholas, President and Director since July 18, 2008
Daniel Orodenker, Secretary since November 5, 2007

10. Kaluakoi Acquisitions LLC
Peter Nicholas, Manager since November 5, 2007
Roy Sugiyama, Manager since November 5, 2007

11. Kaluakoi Poolside LLC
Peter Nicholas, Manager since October , 2003
Roy Sugiyama, Manager since November 5, 2007
Dennis Ikeda, Manager since November 5, 2007
Daniel Orodenker, Manager since November 5, 2007

12. Kaluakoi Real Estate LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager since November 5, 2007

13. Kaluakoi Residential LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager since November 5, 207

14. Kaluakoi Roads LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager November 5, 2007
Elaine Hammond, Treasurer since July 18, 2008

MPL is a wholly-owned subsidiary of GuocoLeisure Limited, and Nicholas is a Vice President of the company and one of its five-member senior management team.

GuocoLeisure is a subsidiary of Guoco Group, headquartered Hong Kong, which operates as a subsidiary company of Hong Leong Group, one of Malaysia’s largest business conglomerates.

Qeuk Leng Chan heads up all three foreign companies, including the one that terminated operations on Molokai, and is one of the world’s richest individuals.

Feds Investigate Molokai Ranch

Monday, September 8th, 2008

Union files charges of unfair labor practices.

By Molokai Dispatch Staff

Molokai Properties Limited, doing business as Molokai Ranch, is under investigation by the federal government’s National Labor Relations Board (NLRB) for engaging in alleged unfair labor practices.

According to public documents supplied to the Dispatch last week from NLRB’s Honolulu office, the charges of unfair labor practices were filed against the Ranch on July 7, 2008 by Local 142 of the International Longshore and Warehouse Union (ILWU). The Union represents most of the former Ranch employees.

A document filed by the Union lists Peter Nicholas and Roy Sugiyama as representatives for the Ranch in the matter. Sugiyama is no longer employed by the Ranch. Nicholas is President and Executive Director of Molokai Ranch. He is also a Vice President of GuocoLeisure and a member of that company’s five-member senior management team.

According to the public document’s received from NLRB’s Honolulu office, the ILWU alleges that during the last six months the Ranch has refused to bargain collectively with ILWU and has failed to engage in good faith bargaining on the effect of the Ranch’s shutdown of its operations.

The Union also alleges that the Ranch has “interfered with, restrained and coerced its employees” in the exercise of their guaranteed rights.

ILWU seeks to a cease and desist order prohibiting the Ranch from refusing to engage in effects bargaining and from interfering with its employees in the exercise of their rights.

The NLRB has not rendered a decision on the Union charges.

The ILWU is being represented by Rebecca Covert, a partner with the Honolulu law firm Takahashi, Vasconcellos and Covert, according to the document.

The Ranch is currently embroiled in another legal matter trying to defend itself on a lawsuit recently filed by the County of Maui. That lawsuit seeks to prevent the Ranch from walking away from providing waste water and water utility services to approximately 1,200 Molokai customers.

The County is being represented by former Hawaii state attorney general Margery Bronster, who is a partner with the Honolulu firm of Bonster and Hoshibata .

Molokai Ranch is 100% owned by GuocoLeisure Limited, a billion dollar investment company headquartered in Singapore Malaysia. The company recently decided to close down its Molokai Ranch operations and terminate all its employees despite reports to GuocoLeisure shareholders that Ranch operations “continue to remain cash positive.”

Park would Require Urban Zoning

Wednesday, September 3rd, 2008

Proposed parks baseyard within Duke Maliu Regional Park would require an urban land designation.
 

by Zalina Alvi

A proposed $1-million parks baseyard within Duke Maliu Regional Park may not be built due to concerns over the location being suggested by county planners. 

Changes in land use designation needed to allow construction of the 5,000-square-foot facility would make the area makai of Home Pumehana and east of Kaunakakai School urban land under state zoning. It is currently designated as agricultural land. 

While members of the Molokai Planning Commission (MoPC) expressed concerns over opening a door to an urban designation, members of the public also spoke on behalf of the residents of the Home Pumehana retirement community, who would be new neighbors to the baseyard.

In an effort to provide more time for staff planner Nancy McPherson and county planners to present information on possible alternatives and justifications for the zoning changes, the issue has been deferred to the next MoPC meeting on Sept. 24.

Zoning Changes

Deputy Parks Director Zachary Helm told the commission of the dire need for a centrally-located baseyard large enough to house equipment storage, staff offices, maintenance shops, employee lockers, and meeting rooms. The facility would also include covered parking.

He said the proposed area in central Kaunakakai is the ideal location. The assertion was supported by a presentation made by county planning consultant Rowena Dagdag with Munekiyo & Hiraga, Inc., who cited a community meeting on the proposal that took place in 2005. 

Currently, the parks department uses several small buildings in various parts of the island, making it difficult to store and transport equipment. The department has been trying to begin construction of the baseyard for the past five years. 

Commissioner Lori Buchanan sympathized with the need for a baseyard for the parks workers, but felt that there were better alternatives. 

“There’s no argument that this is a needed project, but it’s a big leap,” she said. “I’m not comfortable with the request at this point.”

While the area would be remain under the “park” designation under the Molokai Community Plan, it would change from agricultural land to urban land under state zoning, and would change from Interim to Park, or PK-2, under county zoning.

Buchanan suggested that changes, such as the inclusion of office space in the plan, could be made to avoid changing the land use designation to urban zoning. She also requested that more information be provided to justify the need for the change.

Concern for Home Pumehana Residents

Members of the public, including several kupuna, came out to the meeting to urge the commission to consider the needs of the residents at Home Pumehana.

Concerns about noise levels were a priority for the testifiers. Helm, however, said the noise level would be minimal, and added that the baseyard would only be used during weekdays.

In the past, baseyard facilities have been constructed in the areas west of central Kaunakakai, according to former county worker Constance Hao. Several residents felt the baseyard should be kept out of nearby residential areas.

The project is looking for a recommendation from the MoPC to change the land use designation, but the Maui County Council can choose to change the zoning with or without the recommendation. 

However, if the zoning is changed, the project must still go through the MoPC for a Special Management Area major permit before construction can begin.

 

Molokai Planning for a Rise in Tourism

Wednesday, September 3rd, 2008

Molokai Councilmember Danny Mateo hosts meeting to prepare for what’s to come.

By Zalina Alvi

When Molokai is hit with the surge of tourism expected to follow Father Damien’s canonization early next year, the community will be the ones in control.

Molokai Councilmember Danny Mateo was on Molokai last Friday to conduct a planning session between members of the Molokai and Maui county communities with a focus on controlling sustainable economic development on the island.

Members of the working group kept the focus on addressing the needs and concerns of the patients in Kalaupapa, and planning for ways to welcome visitors to the island while ensuring Molokai, and Kalaupapa in particular, remain uncompromised.

The working group will be meeting regularly to prepare both topside Molokai and Kalaupapa for what is to come in the following months.

Getting Involved in Statehood Celebrations

Wednesday, September 3rd, 2008

Getting Involved in Statehood Celebrations

Governor Linda Lingle encourages Molokai residents to share their mana`o.

By Governor Linda Lingle

Aloha!

Last year, I was proud to sign into law a bill requiring the creation of a 25-member commission to develop, plan and coordinate activities to honor the 50th anniversary of Hawai‘i’s admission to the United States.

I addressed members of the 50th Anniversary of Statehood Commission at their first meeting in November 2007 in order to reinforce the importance of organizing culturally sensitive events and programs that honor the past, respect the present and look to the future, and that also invite the participation of both residents and visitors statewide.

My hope is that the comprehensive plan announced by the Statehood Commission last month will engage the public – including Moloka‘i residents – in a lively and thought-provoking discussion about the significance of statehood.

A year-long series of events to commemorate Hawai‘i’s golden anniversary of statehood started in August. The plan’s varied components provide people of all ages with opportunities to reflect on how statehood has contributed to the Hawai‘i of today and the direction we are headed as the youngest and most ethnically and culturally diverse state in America. For more information about how to become involved, Moloka‘i residents can e-mail statehood@hawaii.gov or visit www.hawaii.gov/statehood.

Hawai‘i’s distinctive history inspired commission members to focus their efforts on community education. A major highlight of the programs they’ve planned is 50 Voices of Statehood, a series of radio and television vignettes recorded for posterity by the award-winning Searider Productions of Wai‘anae High School on O‘ahu.

Featuring diverse and personal perspectives on statehood from 50 residents from across the island chain, the weekly vignettes started airing on several television stations and more than 60 radio stations statewide on Aug. 25 and will last an entire year. The commission has also created an interactive, online forum (www.seariderproductions.com/50voices) so that teachers can incorporate the vignettes into their classrooms.

To ensure that events commemorating statehood have a broad reach, each county will host several island-specific events that will be coordinated by the neighbor island representatives to the commission, including Maui County representative Deidre Tegarden.

Working in conjunction with the U.S. Mint, the commission also plans to host simultaneous events on Nov. 10, 2008 for the Hawai‘i state quarter on O‘ahu and the neighbor islands, providing visitors and kama‘?ina with an opportunity to complete their 50-state quarter set.

The year-long activities will culminate with a one-day public conference on Aug. 21, 2009 called Commemorating the 50th State: New Horizons for the Next 50 Years, at which local, national and international leaders will gather to discuss topics about Hawai‘i’s past, present and future, including technology in our daily lives, education for the next generation, the 21st century economy, and a break-out session entitled “Native Hawaiians: Cultural Navigation in a Sea of Change.”

I know that Moloka‘i residents offer valuable perspectives on the significance of statehood to Hawai‘i. I encourage you to find information on additional events and learn how to get involved at www.hawaii.gov/statehood. In addition, please feel free to send my office your input on this and other initiatives at governor.lingle@hawaii.gov.

Mahalo,
Governor Linda Lingle

Citizens Take Immediate Action Against Water Rate Increases

Wednesday, September 3rd, 2008

Meeting results in protest trip to Oahu.

By Catherine Cluett

Hope and optimism were in the air as Walter Ritte gathered a group of concerned citizens for a meeting last Wednesday to address the water crisis on Molokai. The goal of the meeting was to “figure out what we can do as a group, and go do it,” said Ritte. The result? A publicity and protest trip to Oahu on Sept. 8.

Brainstorming
Proposed action included sending letters, signing petitions, making phone calls, and paying visits to all council members. Other ideas included raising money and getting international organizations to match funds, T-shirt fundraisers, and all manner of publicity to raise statewide awareness of the issue.

A rate increase of such high proportions (178% approved by the PUC for Wai`ola O Moloka`i) would set a precedent for possible state-wide rate increases. This possible precedent, as Ritte points out, makes the Molokai water situation an issue of concern, not just for residents of Molokai, but for Hawaiians.

One member of the group related how she filed the original complaint against the PUC with the Ombudsman, a legislative office set up to investigate complaints about executive branch agencies. “I came home from the water meeting last week and couldn’t sleep. So the next day I called the Ombudsman’s office, which I didn’t even know existed until then. I told them about our problems and they said they’d do an investigation.” Ritte filed a formal complaint with the office last week, and an investigation of the PUC’s high rate increases is currently underway.

An American Savings Bank account created specifically for funds to purchase the property of the Molokai Ranch currently has a balance of $7,821.25, though no steps are being taken to propose a purchase in the near future.

The group is also looking for a lawyer to assist the effort with understanding legalities and representing the people of Molokai should the need arise.

Immediate Action

Ritte had his own proposal ready: get on a plane, fly to Oahu, and visit the offices of the PUC, the DCCA, the Ombudsman, and the Governor. His plan was to hand each office with petitions signed by concerned individuals and other paperwork to present the issue.

The media will not be left in the dark. Ritte plans to alert TV, radio and newspapers, and to host a press conference with guests including Danny Mateo, the Mayor, and a selection of senators and representatives. The trip would focus on the issue of increased utility rates.

The proposal met with positive group approval and pledges of participation, and the trip is planned for Thursday, Sept 4. Individuals will cover their own travel expenses. If all goes well, another trip will follow to Maui to target a plan for eminent domain.

The meeting also broke into smaller groups to discuss specific further action. The groups addressed T-shirt fundraisers, petition organization, and eminent domain action.

PUC Rate Increases Investigated

Wednesday, September 3rd, 2008

Ombudsman confirms investigation is underway.

By Molokai Dispatch Staff

At least two formal complaints have lead to an investigation by the Office of the Ombudsman into the recent water rate hikes approved by the Public Utilities Commission (PUC). The hike will affect as many as 1,200 west and central Molokai residents.

Last Wednesday Robin Matsunaga of the Hawaii Ombudsman’s office, who is leading the investigation, held an informational meeting on Molokai for residents to learn about the purpose and procedures of the department.

Matsunaga also addressed a complaint filed last week by an unnamed Molokai resident that sparked the investigation of the PUC’s activities and policies.

Water rights activist Walter Ritte formally handed in his own letter of complaint against the PUC for the water rate increases, and included the Department of Commerce and Consumer Affairs (DCCA) in the complaint. The DCCA has set a state cap of 25% on utility rate increases but did not take action against PUC in this case. Ritte also volunteered to provide the Ombudsman with any information the community has concerning the PUC increases to aid in the investigation.