State: MPL to provide its services for 90 days

Department of Health directs county to ready to take over in August

The Maui News
Tuesday, July 22, 2008

By CHRIS HAMILTON Staff Writer

HONOLULU - The state ordered Molokai Properties Ltd. and its utilities Monday to continue providing water and wastewater services to west Molokai residents for at least 90 days.

And, the state Department of Health directed Maui County to assess the water and sewage utilities and prepare to take them over if the company follows through with its announced shutdown of services at the end of August.

"The Department of Health is exercising its authority to order immediate action to protect the public health from an imminent and substantial danger if the services are stopped," said Laurence Lau, the Health Department's deputy director for environmental health. "The emergency orders also afford the County of Maui time to assess needs and prepare to provide these essential services to the people of Molokai if the companies cease operations of these vital systems."

The Health Department is requiring Molokai Properties and its drinking water utilities - Wai'ola O Molokai and Molokai Public Utilities - to continue operating systems in Kaluakoi-Maunaloa, Kualapuu and Kipu as well as the surface water treatment plant at Puu Nana. The department also is ordering the company and its wastewater utility, Mosco, to continue to operate the Kaluakoi, Maunaloa and Kualapuu wastewater systems with certified plant operators.

"Our priority is to ensure uninterrupted water and wastewater service for the health and safety of the people of Molokai," Gov. Linda Lingle said in the Health Department news release. "While the county has the primary responsibility to operate and maintain public utilities, the state is prepared to assist the county."

Molokai Ranch officials could not be reached for comment. The company has said it can no longer afford to operate the utilities at a loss. The Public Utilities Commission is processing utility rate increases as an emergency measure.

Mayor Charmaine Tavares said she was pleased the Health Department "has finally taken action and issued an order to the utilities requiring Molokai Ranch to continue to provide water and sewer service to its approximately 1,200 customers."

The mayor said she requested five weeks ago that the Health Department take action to safeguard utilities on Molokai.

However, the mayor said the county objects to the Health Department's order directing the county to conduct a physical and staff assessment of Molokai Properties' subsidiary companies and to make preparations to take over the utilities if the company walks away.

"It is puzzling that the DOH would treat the county as a violator in this case. Molokai Ranch is clearly the violator," Tavares said. "We would have liked to have partnered with the state in holding Molokai Ranch accountable and protecting the rights of the consumer. In fact, the county itself is a consumer."

The Health Department scheduled a meeting at 9 a.m. today in its Environmental Management Division conference room in Honolulu to address issues raised by its orders.

Tavares said that despite receiving less than 24 hours of notice, county attorneys will travel to Honolulu today to raise concerns at the hearing.

The mayor called the Health Department's order "disappointing" for requiring Maui County to step in while Molokai Ranch abandons its utility services.

"We continue to be concerned with what each county in the state would face should private companies that own and operate water and sewer systems choose to abandon their paying customers," Tavares said. "Our communities should not be treated this way."

State Sen. J. Kalani English, whose district includes Molokai, said the Health Department's rulings set a "dangerous precedent" for the public and counties throughout the state.

Molokai Ranch agreed to provide water and wastewater services to Molokai residents, he said.

"Allowing Molokai Ranch and its successors in interest to walk away from their obligations is simply wrong, particularly where those obligations were a fundamental part of an initial agreement allowing them to do business in the community," English said.

The Health Department is requiring the county to immediately assess what is needed to provide sufficient drinking water and wastewater services. The county's assessment may include a physical assessment of facilities and a determination of staffing needs and training.

Original article URL: http://www.mauinews.com/page/content.detail/id/506219.html

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