Political

Molokai Residents Get Back to Work

Wednesday, September 3rd, 2008

County Of Maui Sues Molokai Properties

Monday, September 1st, 2008

County to seek pledge of commitment and cost reimbursement.

By Catherine Cluett

Last Friday the County of Maui filed suit against Molokai Properties, Ltd. (MPL) to insure that “the company continues to meet its obligations to operate and maintain its water and wastewater systems in West Molokai.” Margery Bronster, a lawyer with the Hololulu based firm Bronster Hochibatain, announced the suit in a press release on the same day.

Word from the Ranch
On August 14, the Public Utilities Commission (PUC) approved water utility rate increases requested by the MPL that will go into effect on Sept. 1. These rates were increased from the PUC rates by as much as 178%. Before the rate approval, MPL had issued a statement of intention to terminate water utility services on August 31.

Last Thursday, the day before the suit was filed, MPL director Peter Nicholas confirmed that MPL has agreed to continue services past August 31. There was no indication of long-term commitment, however.

“How long the temporary rate increase will be sufficient for the utilities to be able to continue to operate depends on future fuel, power and labor cost increases,” Nicholas stated in a letter to Carl Caliboso, chairman of the Public Utilities Commission (PUC).

While no lasting or reliable solution has yet been proposed for operation of MPL’s water systems, Governor Linda Lingle remained positive. “The temporary rate increases will allow Moloka‘i Properties to continue to provide water service until another entity can take over the operation.”

Mahina Martin, Communications Director for the County, confirmed last Saturday that the county’s emergency response plan was completed to meet the Department of Health (DOH) deadline, and will go into effect should MPL cease water utilities. Until then, emergency measures will remain on hold.

Commitment Sought
In a phone interview with Bronster, she explained that the goal of the suit is two-fold. The first concerns the contractual agreements entered into with the County of Maui. “When Molokai Ranch and its predecessors sought to develop the property, it agreed to build, operate and maintain water and wastewater systems in West Molokai,” reads the complaint filed by the county.

Thirty-one contracts have been uncovered, some dating as far back as 1978, that bind MPL to continue operating these utilities, among other agreements, according to the county’s complaint against MPL. If they terminate water services on August 31 as they had previously informed the county, they would be breaking legal and binding contracts.

Reimbursement Requested
The second goal of the suit is to “ask the MPL to pay for costs and expenses the county has incurred to prepare for this emergency situation,” says Bronster.
Martin confirms that the prospect of Molokai residents left without water is a great concern to the county, and that the office has put other issues on hold to give precedence to the situation. The county has a budget of $1,260,000 to cover emergency operations for ninety days, and has spent a tremendous amount of time planning for the possible outcomes due to the Ranch’s lack of communication, according to Martin.

Communication on the part of the Ranch is another frustration of the county, according to Bronster. “The Ranch has been less than forthcoming in answering the question as to what their plans are,” she says. “We’ve asked repeatedly that they comply with the orders, and we have not gotten a response.”

Accountability
“By filing suit, the County is going to hold Molokai Properties, Ltd. accountable. Molokai Properties, Ltd. cannot hide behind its subsidiaries and affiliates in an effort to avoid its clear obligations,” Bronster stated in a press conference.

MPL has been called the “alter ego” of its subsidiary water utility companies, Molokai Public Utilities, Inc. (MPU) and Wai`ola o Molokai, Inc. (Wai`ola), and the wastewater utility Mosco, Inc. MPL shares such assets as employees, funds, office spaces and supervisors with these companies. Although the county is suing the parent company MPL and each of its subsidiaries separately, it plans to hold MPL in sole responsibility because the water agreements with the county were entered into with MPL directly.

Background
MPL owns 70, 000 acres of land on Molokai, and a termination of water utilities controlled by MPL would result in a loss of water utilities to as many as 1,200 users.

A Call to Take Back Ranch Lands

Thursday, August 28th, 2008

Community meeting takes the first step for eminent domain.

From left to right: Alton Arakaki, Mahina Martin, Danny Mateo, Steve Morgan, Mahealani Davis, and DeGray Vanderbilt.

A Show of Support

Of the many who attended the meeting, a vast majority expressed overwhelming support for the plan by a show of hands.

Walter Ritte, homesteader and one of the night’s organizers, stressed that the community coming out and supporting eminent domain was an important first step. He said the purpose of gathering the community together was to educate and fight back.

“These state agencies do not work; they have failed us,” he said. “They have abandoned us because they have been threatened by big business, and they have put the burden on us.”

Concern was raised, however, over getting the whole county of Maui behind an issue that only affects Molokai.

In response, Martin reiterated what has become a catchphrase for the county – that if the Ranch is allowed to walk away, it will set a bad precedent for other private companies providing essential services, which is something that should be a concern for all.

To questions about who will control the Ranch lands if acquired, Davis stressed that starting eminent domain proceedings are just a way to force the Ranch to the table, and open the door to discussing options.

Residents also flocked to sign two petitions circulating that night.

While one urged the county to begin eminent domain proceedings, the second called the rate increases approved by the PUC “arbitrary and unjustified,” and petitioned the PUC to order the two water utilities to continue operating if its customers cannot pay the higher water bills, and to fine the utilities the maximum amount for any violation of the law, including non-compliance.

Vanderbilt acknowledged the difficulty facing West End residents with the significantly higher water rates. The recommendation to “pay what you can,” was given, while stressing that not paying at all will result in a termination of water service.

Next Steps

In order to initiate eminent domain proceedings, the Maui County Council will have to introduce a resolution that would require five votes to pass. Mateo said the resolution would have to be deferred to the council’s Policy Committee, which he chairs.

Molokai residents, however, are urged to become active in the process. A meeting was held at Kulana O`iwi this week Wednesday to discuss the details and questions surrounding the issues of eminent domain and the increased water rates in the West End.

Residents were able to ask questions about either of these issues, including the status of funds pledged earlier this year to the MCSC in support of purchasing the Ranch lands

Anti-Aspartame Activists Don’t Take No for an Answer

Wednesday, August 27th, 2008

Hawaii Chapter of Mission Possible: A Small Group with Big Plans

By Catherine Cluett

A group of activists taking steps to ban aspartame, an artificial sweeter, from food, beverages and pharmaceuticals in Hawaii saw increased turnout at their meeting Saturday night. Last year they introduced the issue as a bill to state legislature, but made it only as far as the resolution stage before it was dismissed. This year, the group plans to reintroduce bill to the state House and Senate, hoping to build more support along the way, and planning for better success the second time around.

The group, based here on Molokai, forms the Hawaii chapter of Mission Possible, an international health organization dedicated to raising awareness about and eradicating the use of aspartame. The group hopes to make the anti-aspartame movement important enough to Hawaiians to become an integral part of candidates’ platforms in the upcoming elections.

The FDA under Commissioner Arthur Hull Hayes approved aspartame as a food additive in the United States in 1981. But Jade Brujhell, leader of the Mission Impossible Hawaiian chapter, is quick to point out that aspartame’s clean bill of approval might not have been so clean. Hayes was a close friend of Donald Rumsfeld, former United States Secretary of Defense and CEO of G.D. Searle, aspartame’s manufacturer.

Brujhell says he has reason to believe that the FDA has ulterior motives in approving aspartame as a non-toxic food additive. “There is extensive scientific research conducted by medical experts specializing in fields such as toxicology and neurology showing undeniable evidence that aspartame is a neurotoxin and causes serious harm,” says Brujhell. He suggests possible links between aspartame and biological weapons.

“They feed us poisons in our food, then you have to go to the hospital to fix it. But the medicines they give you contain the same poisons,” explains Mission Possible member John Wordin. Aspartame is found in the seizure medication Dilantin and other medications often used to treat diseases linked to aspartame.

In May 2008, the group released a Citizens’ Declared Emergency Public Health Crisis/Alert informing fellow citizens of the dangers of aspartame. The alert describes the diseases and symptoms linked to aspartame’s use, and also includes an Adverse Reaction Report Form for consumer documentation, and a petition to be signed and submitted to the Attorney General of the State of Hawaii for “eliminating aspartame from the food, beverage and pharmaceutical products in the State of Hawaii.” The crisis alert has also been submitted to Hawaii State legislators and the state Department of Health.

The Mission Possible Hawaii chapter is planning a public meeting on September 8 for those interested in the issue.

Utility Rate Hikes Approved

Thursday, August 21st, 2008

By Jennifer Smith

In the midst of an economic downswing the Hawaii Public Utilities Commission (PUC) has taken the unprecedented step of approving temporary rate increases for two water utility service providers on Molokai. This is the first time the Commission has initiated the opening of a rate case for a utility provider.

The rate case was opened in response to an announcement by Molokai Ranch that it would abandon services to customers of its three regulated utilities on Aug. 31. The company claimed that its two water utilities, Molokai Public Utilities, Inc. (MPU) and Wai`ola o Molokai, Inc. (Wai`ola), and one wastewater utility, Mosco, Inc. had been operating in the red for years and therefore would cease services.

“Under these dire circumstances, the commission has no choice but to approve the temporary rate increases as a stop-gap measure,” said Carlito Caliboso, chairman of the PUC in a statement released Thursday. “We need to do what we can to require the utilities to keep operating, at least, temporarily, for the sake of the health and welfare of the people of West Molokai.”

The rate hikes will affect approximately 1,200 customers in areas of west and central Molokai, many of whom were also affected by the closure of Molokai Ranch in April. Customers will see inflated rates for the next six months, beginning Sept. 1.

“I’m appalled that the Governor would put this financial burden on the people,” said DeGray Vanderbilt, former chair of the Molokai Planning Commission.

PUC Explanation
PUC auditor Steve Iha came up with the numbers for the  rate increases, which ended up significantly higher than the increases initially proposed by the commission in July.

Rates for Wai`ola customers will jump from $1.85 per 1,000 gallons to $5.15 per 1,000 gallons, potentially providing an additional $156,710 of annual revenue over the next year.

MPU user rates will increase from $3.18 per 1,000 gallons to $6.04 per 1,000 gallons, which is expected to yield an additional $398,687.

The rates for Mosco users will not increase as the PUC review deemed the action unnecessary because the company failed to show a loss.

“We are still gathering information from the utilities and the ranch,” said Kaiulani Kidani Shinsato, Commission Council. As of last Friday the Ranch had not responded to the PUC decision, but she said, “We think it’s going to work.”

Shinsato said the decision is only a temporary measure, and that the commission is hoping that another provider will step in to take over the system. 

“I would like to see the state hold Molokai Ranch responsible to this issue and all costs before a transfer is made,” said Walter Ritte, Homestead farmer during last week’s Governor’s Molokai Advisory Committee meeting.

He asked the council to provide the Governor with two recommendations, which included auditing all of the Ranch’s systems, and the Governor beginning eminent domain procedures to cover costs.

The order states all three utilities are required to provide monthly financial reports and bi-weekly status reports. At the end of the six months, if another service provider is not found, MPU and Wai`ola must file applications for rate increases to allow for the determination of final rates.

If the ranch chooses to defy the order, the PUC has the authority to fine the company $25,000 per day. “We do have pretty broad authority,” said Shinsato.

Questioning the PUC
“It may appear they are being soft on the rate case issue,” but the commission has to provide adequate rate relief to the utility companies in order to compel them to continue providing services, said Carl Freedman, Haiku Design & Analysis consultant and expert witness for PUC rate cases. He said the strongest course of action for the commission at this point is to give the utilities exactly what they want.

If the companies continue to refuse services, then the PUC has taken away the company’s claim to financial hardships, he said.

Vanderbilt was quick to disagree. “The PUC didn’t have the gumption to challenge MPL’s claims of having no money.”

“The three PUC commissioners, all appointed by Governor Linda Lingle, showed little backbone and totally wimped out when they approved the massive rate hike MPL demanded,” he said.

County Takes Action
The county has been quick to step up and assure residents that those who are unable to bear the brunt of additional financial obligations will not be left without services.

“I’m confident that we will be able to come up with a program that can provide temporary relief,” said Mayor Charmaine Tavares.

Tavares said county staff on Maui and Molokai are busy trying to come up with a plan of how to provide assistance to those who will not be able to make the payments for these “harsh increases.” The Department of Housing and Human Concerns will determine the qualifications for supplemental assistance.

Funds are expected to come from a combination of federal, state, and county sources.

DOH Orders
The county is also busy working on fulfilling a Department of Health (DOH) order to prepare an emergency response plan if the Ranch utilities do choose to discontinue services. In the event of a walk out, Tavares said the county would treat the situation as a natural disaster.

The plan is due to the state Civil Defense on Aug. 25.

Once the emergency plan is submitted, Tavares said the county will be on standby, offering any technical assistance to the state that may be required to evaluate the system. She said they have expertise in the way of engineers, lavatory technicians, and operators that the state lacks.

“I would like to assure the Molokai people that they are not forgotten,” said Tavares. The county is aware of the issues looming over the entire community, she said, and “it is going to take all of us to get through this period.”

Orders to the Ranch
On Thursday, the Ranch, also known as Molokai Properties Limited, received an order from the DOH ordering the company to continue providing services for at least 90 days.

“It remains to be seen whether the company will obey or defy the state’s orders,” said Tavares in a statement. “We hope that the company, including its larger and wealthier parent company in Hong Kong, will do what’s right and comply so that water and sewer services to over a thousand people on Molokai will continue without interruption.”

“Should the company refuse to obey the orders, we anticipate that the state will enforce them vigorously on behalf of its citizens.”

Council Takes Action on Restoration, Trash, and Jet Skis

Thursday, August 21st, 2008

By Zalina Alvi

The Molokai Planning Commission (MoPC) tackled a number of issues at last Wednesday’s meeting, from approving exemptions for two projects including a wetlands restoration project at Kalaeloa, Mana`e, to making waves in the effort to keep jet skis away from the waters around Molokai.

Manabas Get the Go Ahead
After two previous attempts at MoPC meetings, Christy and Desmond Manaba will now be able to begin restoration of the wetlands where they once bred ogo, shrimp, and tilapia through D&J Ocean Farms.

The council voted unanimously to grant an exemption to the Manabas, allowing them to complete restoration work without a Special Management Area (SMA) permit. Nancy McPherson, staff planner for Molokai, recommended the exemption to the council as the restoration plan has already passed an environmental assessment and will have only “positive and beneficial” effects.

The Environmental Protection Agency (EPA) has ordered the restoration work, and will be monitoring the progress over the next five years.

The work will involve the restoration of 0.60 acres of wetlands that includes re-vegetation, the removal of sidecasting material in 0.25 acres, minor trenching for electrical repairs, the replacement of a drainage pipe, and removal of mud from harvest boxes, all of which has been outlined in the restoration plan ordered by the EPA.

`Ohana Unit Approved
Tanya Davis-Mendija also received good news on Wednesday when the council granted her a similar exemption for the construction of a second dwelling on her property.

The house will function as the main home of an `ohana unit, and is valued at approximately $75,000.

McPherson recommended the exemption to the council on the grounds that single-family units are exempt from SMA rules, it will not have any impact on the coastal resources, and was a “simple, straightforward project.”

Recommendations for Island’s Trash
The council also heard recommendations and comments from the public in regards to the county’s draft Integrated Solid Waste Management Plan (ISWMP) currently under review.

Chairman Steve Chaikin stressed the importance of problem-solving when looking at the looming deadlines for the county’s landfills.

Molokai’s landfill is expected to be full by 2015, when another nine acres will be accessed for waste disposal. By 2029, it is expected Molokai will run out of space all together. The ISWMP offers suggestions for how to extend these deadlines with recycling, energy conversion technologies, and landfill management.

Resident Jade Bruhjell testified during the meeting to suggest that the automotive parts taking up the majority of space in the landfill should be relocated to a junkyard, where people could retrieve the used parts and make treasure out of someone else’s trash.

The formal public hearing for the plan was held on Molokai on July 25, and will now go to the state Department of Health for final review.

No Jet Skis In Molokai’s Waters
The subject of jet skis being permitted in the waters around Molokai was first brought up by kupuna Judy Caparida during a July meeting of the MoPC. In response to public demand to keep Molokai’s shorelines clear, the council is exploring options for advocating against the practice. This past Wednesday Chaikin shared some of his personal research on the subject.

After speaking to two representatives from the Department of Land and Natural Resources, Chaikin said the rules surrounding the use of jet skis, which fall under the category of “thrill crafts,” were complicated. Currently, he said, the average person would not be able to discern whether or not they are allowed to ride a jet ski in the waters surrounding Molokai.

DLNR representatives told Chaikin that amending the rules to make them clearer was a possibility.

The topic will be put on the agenda for the next MoPC meeting, when the council will explore the options to support the clarification of the rules in an effort to keep the waters clear from jet skis.

The MoPC continues to encourage all members of the public to attend the meetings, which are held at the Mitchell Pauole Center at 12:30 p.m. The next meeting will be on Sept. 24.