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The Honolulu Advertiser
Posted on: Thursday, August 8, 2002

Council votes to put sewage/water merger on ballot

By Robbie Dingeman
Advertiser City Hall Writer

The City Council yesterday approved asking voters at the next election if city sewer functions should be merged with the Board of Water Supply, after a candid debate about the political implications of the move.

Councilman Gary Okino and other supporters say the move will save taxpayers' money by merging departments with similar functions. Councilman Jon Yoshimura and other opponents say it will allow elected officials to sidestep responsibility for the politically unpopular choice to raise sewer fees, which is likely to happen soon.

But the city charter gives the mayor the power to reject any charter amendments proposed on the eve of this election.

The measure was passed by the council 6-3, with Darrlyn Bunda, Steve Holmes and Yoshimura opposed. Council members favoring it were: John DeSoto, John Henry Felix, Okino, Duke Bainum, Romy Cachola and Ann Kobayashi.

Okino said the proposal could save 10 percent to 30 percent by consolidating the water and wastewater functions within one semi-autonomous agency. The city would achieve greater economies of scale and enhanced efficiency and effectiveness, he argued.

Okino said the move has been successful in other cities. The proposal calls for the merger to happen no sooner than July 1, 2004. "We have to take the first step," Okino said, and if the merger turns out later to be unwise, "we can always undo it."

But Yoshimura noted that each time the proposal has been discussed, it has been changed substantively. Passing it this year, he said, is "ill-conceived and rushed."

Chairman DeSoto said he favors the move because it would help prevent the city administration from tapping the sewer fund to balance the budget. The council has criticized Mayor Jeremy Harris for using $60 million from the sewer fund to balance this year's spending plan.

City Environmental Services worker John Witeck, speaking as an individual, said the plan is poorly conceived and "would move responsibility for sewer fees away from elected officials."

Bainum argued that the city's financial situation is what's pushing him to approve the merger plan. "I can promise you the rates are going to go up," he said.

"We've got to be bold," Bainum said, even if the decision prompts "erosion of some of our personal power."

Holmes said money can be saved by other means: refinancing debt, more automation, and controlling cost overruns.

City managing director Ben Lee said Harris will decide today if he will support or reject the charter proposal.

"He's concerned that they were rushing into this complex merger without proper thought and working out some of the issues, such as impact on bond rating, and bond fees," Lee said. He said that the federal Environmental Protection Agency might have concerns about the city's commitment to certain public works improvements.

Lee said, "it really hasn't been studied whether there is going to be cost saving and improvements to public service."