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The Honolulu Advertiser
Updated at 7:09 p.m., Monday, July 21, 2008

State issues order on Molokai water service

Advertiser Staff

The state Department of Health today issued emergency orders for Molokai Ranch subsidiaries to continue drinking and wastewater services on Moloka'i for at least the next 90 days, and instructed Maui County to prepare to assume the services.

"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," Laurence Lau, department deputy director for environmental health, said in a statement announcing the orders.

The orders are intended to afford Maui County time to assess needs and prepare to provide the essential services.

Maui Mayor Charmaine Tavares said she is pleased by the state's action against Moloka'i Ranch but disappointed the order includes the county.

Tavares said she had requested the Health Department to take action five weeks ago in a letter to ensure Moloka'i Ranch provide services to 1,200 customers .

"I requested ...measures be taken to investigate the status and operation of the utilities with regard to their operation of three wastewater treatment plants on Moloka'i, the mayor said in a written statement. "Maybe now we will be able to receive information and records that were not made available to us these past few months."

Tavares added, "We do object to the DOH order directing the county to conduct a physical and staff assessment of these subsidiary companies that belong to Moloka'i Properties and make preparations to take over operations if the company walks away. It is puzzling that the DOH would treat the County as the violator in this case. Moloka'i Ranch is clearly the violator."

"It is a system owned and operated by a private company and one that we believe has been mismanaged," Tavares added. "Over the many years, there have been various state agencies responsible for monitoring and advocating on behalf of consumers, so it is strange that while it started out as a private company with a state license to operate, when it no longer is profitable to the company, the county is required to take it over. While the company prefers to discard these subsidiary companies of their's, it intends to keep other assets on Moloka'i."

County attorneys will travel to Honolulu to raise concerns at the hearing tomorrow, Tavares said.

Molokai Ranch in March threatened to halt the water service Aug. 31 because it is losing money, and maintains that the government has a duty to provide citizens with essential services such as water when the private sector is unable to do so.

Under the Health Department orders, Molokai Ranch utilities Wai'ola O Molokai, Molokai Public Utilities, and Mosco must continue operating for 90 days, but the department said it will monitor work by Maui County and the utilities to determine whether it's necessary to extend the orders beyond the 90-day period.

"Our priority is to ensure uninterrupted water and wastewater service for the health and safety of the people of Moloka'i," Gov. Linda Lingle said in a statement. "While the county has the primary responsibility to operate and maintain public utilities, the state is prepared to assist the county."