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.

Protecting `Iolani Monument

Thursday, August 21st, 2008

By Zalina Alvi

New rules may soon change the way visitors interact with the `Iolani Palace State Monument.

Residents of Molokai, however, are arguing that rules applying to the general public should take the special needs of Native Hawaiians into consideration.

The proposal is part of an effort to preserve the historic landmark, which is the only palace in the United States and the former home of Hawaiian monarchy.

The department is currently seeking public testimony before making a decision on whether to implement the proposal.

Remembering the Native Hawaiians
Phil Ohta, Maui district parks administrator, hosted a formal public meeting in Kaunakakai last Tuesday to hear testimony on the proposed changes.

The majority of those who attended the meeting felt that the rules should reflect the special needs and privileges of the native Hawaiians who have strong ties to the monument and its history. By a show of hands at the meeting, many believed native Hawaiians should be included in a set of rules that apply to all visitors.

“How are the interests of the Hawaiians going to be served if the rules apply to the general public?” asked homesteader Walter Ritte.

Testimonies were recorded by Ohta and will be taken into consideration as DLNR makes its decision. Written testimonies can be submitted until Sept. 5 to Ohta at the Division of State Parks, 1151 Punchbowl St., Room 310, Honolulu, Hawaii, 96813.

Changes to the Rules
Currently, the restrictions that apply to the monument are the same rules that apply to all state parks, such as the ban of the use or possession of alcoholic beverages on the property.

This summer, however, the DLNR drafted a new set of rules that will apply specifically to the monument in order to “recognize, protect, and preserve the historic and cultural significance of the Monument and to meet the Monument’s educational mission to preserve the character of the era of Hawaii’s monarchy,” according to the new DLNR subchapter.

The proposed restrictions on all visitors to the palace come in the form of 14 rules, which include bans on climbing, trimming or cutting any tree, and taking showers or bathing on the grounds. There is also a list of 12 activities that will be allowed with permits within certain limits, for example using the grounds for a wedding.

A list of restrictions that apply to the general public when visiting the monument has been drafted by the Department of Land and Natural Resources (DLNR), and will apply to `Iolani Palace, Barracks, Coronation Pavilion, Kanaina Building (old archives building), Kekauluohi Building (state archives building), and 11 acres of grounds including the perimeter wall and fence.

Preserving the `Iolani Palace State Monument
Built in 1882, `Iolani Palace served as house to Hawaii’s last monarchs, King Kalakaua and Queen Lili`uokalani. The site has been listed in the National Register of Historic Places as a designated National Historic Landmark since 1962.

Before the arrival of the missionaries in the 1820’s, the grounds were also home to the temple Kaahimauili, and later a small mausoleum to house the remains of King Liholiho and Queen Kamamalu.

The palace that currently exists is the second to sit on these grounds. The original palace was built during Kamehameha III’s reign, and was a one-story building made out of coral block that occupied a third of the grounds that the current palace sits on.

Today, `Iolani Monument is a public gathering site. The Friends of `Iolani Palace, a non-profit organization, acts as the State’s steward of the palace under a lease agreement, and holds the official designation as the State of Hawaii Museum of Monarchy History.

The mission statement for The Friends of `Iolani Palace reads: “To preserve, restore, interpret, share and celebrate the unique cultural, historic, and spiritual qualities of `Iolani Palace and its Grounds for the benefit of Native Hawaiians, the People of Hawaii, and the world.”

The new rules can be read in full at http://www.hawaiistateparks.org/documents/hsp_proposed_admin_rules_iolani_pala1.pdf

Council Approves Hiring of Bronster

Monday, August 11th, 2008

Last week Friday, members of the Maui County Council unanimously adopted a resolution introduced by Molokai Council representative Danny Mateo to hire Margery Bronster, one of the state’s highest rated attorneys.

Bronster is to represent the county in all legal matters related to Molokai Ranch’s announced bailout of its responsibilities to deliver essential water and wastewater services to residents and business in central and west Molokai.

The Council’s Maui meeting was televised live and broadcast back Molokai by Akaku Community Television.

The Council’s proactive action was initiated in response to the unilateral decision by Molokai Properties Limited (MPL), which has been doing business as Molokai Ranch, to shutdown its utility companies on August 31. The purpose of the resolution was to also challenge the initial positions taken by Governor Linda Lingle and several state agencies that expected the county to step up and take over the utility operation if MPL followed through with its threat to walk away.

Mateo, who has been battling a severe case of the flu, was unable to attend the meeting. He is chair of the Council’s Policy Committee that approved the resolution going to the full council for consideration.

A report from Mateo’s Policy Committee noted that as the county's special counsel, Bronster and her firm would handle legal matters pertaining to Molokai Properties Limited, which is doing business as Molokai Ranch; and the Ranch’s three utility companies Molokai Public Utilities, Inc., Wai'ola O Moloka'i, Inc., and Mosco, Inc.

MPL is named along with the three utilities as parties to the PUC proceedings. MPL has objected to being named a party, but documents show that MPL and the utilities are basically the same.

The Committee report noted that Bronster would also be available to represent the county in possible legal claims against the State of Hawaii, and other parties, arising from the Ranch’s threat to terminate private water and wastewater operations in August 2008.

Former Molokai Planning Commission Chair DeGray Vanderbilt testified in support of Bronster being hired, noting that in the late 90’s, as the State’s first full-term female attorney general, she successfully uncovered deceptive and corrupt business practices by the Trustees of the powerful Bishop Estate, which led to all the trustees resigning and one going to jail.

Where the Ranch Stands Now
MPL currently owns approximately 60,000 acres of land on Molokai that was appraised a couple of years ago for $200 million dollars.

Most observers feel it will take anyone at least a 18 months to 2 years to complete the due diligence and negotiations required to understand and document what was needed to assume the complex operations of MPL’s utilities, which are currently in disrepair and administrative disarray.

For example, Molokai Public Utilities, which delivers water to the Kaluakoi resort, has no permitted water source and no agreement for transmission of water to the West End. In addition, half of its dual water delivery system is inoperable.

Nicholas also has made it clear that anyone considering taking over the utility companies would have to lease or purchase the assets needed to operate the utilities. He wrote to the PUC and reported these assets currently have a net book value of over $12 million dollars.

The PUC’s unprecedented proposed rate increase on behalf of MPL’s utilities amounts to $461,497 per year. Nicholas sent a response letter to the PUC rejecting the offer as being inadequate. He threatened to terminate operations unless the PUC provided increased rates to give MPL’s utilities $894,926 a year more in operating income.
 
Public Criticism
Vanderbilt expressed disappointment to the Council over the fact that the Governor and the PUC appear ready to place the financial burden of subsidizing efforts to work out a solution to MPL’s utility mess on the backs of Molokai residents, who are already strapped financially. He said it appeared that the PUC was going to approve the higher rates being demanded by Nicholas.

At the July 15 PUC public hearing, Chairman Carlito Caliboso announced that by using a simple formula it was easy to determine what the rate increase would mean. Carliboso said that if customer in Kualapuu or Maunaloa is paying $50 a month water bill, the bill would increase to $110 under the PUC proposed rate hike.

Applying the Carliboso’s formula to the higher rates being demanded by Nicholas, Kualapuu or Maunaloa families would see their bills increase from $50 to $139.

At the same July 15 public hearing, PUC Commissioner Les Kondo concluded to those attending that MPL’s significantly higher water use rates were “very similar” to the rate increases proposed by the PUC.

The PUC is scheduled to make a decision on the temporary rate increase on August 14.

Vanderbilt said Nicholas should step up to the plate and agree to sell two or three of their 20-acre Papohaku Ranchland residential lots at the Kaluakoi resort to cover the utility operating costs during the interim period when the County, State and MPL attempt to resolve the frenzy created by MPL’s unlilateral decision to walk away from its utility service responsibilities.

The PUC has issued an order advising MPL that its utilities shall continue “to provide utility services until the commission approves a transfer to a public or private third party” and that non-compliance of the order could result in civil penalties being assessed at $25,000 per day ($9 million dollars a year).

In an article published in the Dispatch, Nicholas claimed last year that since 2006 MPL had been selling off “minimal amounts” of non-strategic lands in order have their operations remain “cash flow positive”

Vanderbilt provided portions of GuocoLeisure’s 2007 annual report which reported to shareholders that “Molokai Properties continued to
remain cash positive through the sale of non-strategic subdivided land.”

The 2007 annual report also noted that GuocoLeisure’s primary goal is “active investment management aimed at extracting and maximizing shareholder value”.

Vanderbilt opened his testimony by holding up a large, poster-sized color picture (published in a past issue of the Dispatch) showing Ranch employees burning company files in 50-gallon barrels. He said the picture was taken by a Ranch employee shortly after Nicholas issued a press release on March 24 announcing that a “business decision” had been made to shutdown the Ranch’s entire operation and “mothball” its land assets until better economic times returned.

Vanderbilt claimed MPL and GucoLeisure’s decision to shutdown was in clear contradiction to the responsibility the Governor said she expected from “true business leaders” during the current trying economic times.

He provided the Council with portions of a speech the Governor gave at the Hawaii Economic Association’s (HEA) annual conference, which was held just a few weeks after MPL announced a total shut down of its operations on Molokai.

“The business community has an especially important role to play,” the Governor told those attending the HEA conference. “I am a firm believer that during an economic slowdown, businesses (like Molokai Ranch) should not hunker down, be stagnant and adopt a defensive mentality. This only exacerbates the situation”

According to Vanderbilt, MPL is clearly “hunkering down” during these slow economic times, has sacrificed its employees for the benefit of company shareholders, and is now trying to unload its utility expenses so it has minimal carrying costs (operating expenses) while it land banks its land assets until better economic time roll around,

Despite these facts, the Governor is still backing MPL’s corporate interest at the expense of Molokai’s working families, he said.

Background on the Ranch
Nicholas, in addition to heading up MPL, is also a Vice President of GuocoLeisure Limited, the billion dollar foreign investment company that owns 100 percent of Molokai Ranch. For his dual management roles, Nicholas reportedly earns in excess of $500,000.

In 2007, the three utilities combined lost approximately $350,000 from operations.

Quek Leng Chan is Executive Director of GuocoLeisure and ranked the 314th riches man in the world with a personal net worth of $2.9 billion dollars.