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NEWS
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NEWS FLASH - July 2, 2009 2:40 p.m. HST Hawai'i Swine Flu Cases Climb to 616 Hawaii now has 616 confirmed cases of the H1N1 virus commonly known as swine flu, according to today's latest national count by the Centers for Disease Control and Prevention. That's an increase of 113 from the state Department of Health's last weekly update on June 24. The state has said it expects the swine flu count will continue to rise but will no longer provide weekly updates. Hawaii's first cases of swine flu — a couple and a school-aged child — were confirmed May 5. According to the CDC, there are 33,902 confirmed cases of swine flu in all 50 states, plus the territories of Puerto Rico and the Virgin Islands. The CDC reports 170 deaths in the U.S. related to swine flu, a 34 percent rise over the last week. The CDC said swine flu is the predominant flu type circulating currently, with 10 states, including Hawaii, reporting widespread cases. The other states are California, Connecticut, Delaware, Georgia, Maine, New York, Pennsylvania, Rhode Island and Virginia. For a state-by-state count of swine flu cases in the United States, go to the CDC Web site at: www.cdc.gov/h1n1flu/update.htm. Internationally, the World Health Organization today convened a two-day conference in Cancun, Mexico, to design strategies to battle the pandemic. The WHO says swine flu is running wild in the Southern Hemisphere and spreading rapidly through Europe, with Britain projected to reach 100,000 daily cases by the end of August. The virus is even showing signs of rebounding in Mexico. WHO officials and experts hope to use the swine flu pandemic as a model for how such diseases spread. Swine flu thus far has been relatively benign, but the WHO wants to see how the virus might mutate as it spreads through the Southern Hemisphere, which is now in the midst of its flu season. (Report Provided by The Honolulu Advertiser) NEWS FLASH - July 2, 2009 2:25 p.m. HST Governor Mulling Layoffs in Light of Furlough Injunction Gov. Linda Lingle said today she has made no decision on layoffs yet, and will consult with the state attorney general before she makes any decision. "An injunction means that this is temporary, and it means that we now have to come in and make our case," Lingle said, following a groundbreaking ceremony in Kapolei. "This doesn't mean that we can't go forward eventually. What the judge said today was that there's enough disagreement that you need to come in and put on a case. And we're certainly prepared to do that." Lingle said she would meet with Attorney General Mark Bennett to discuss what the next step would be, and what the options are. "As you know, one of the alternatives is layoffs," Lingle said. "I think everyone wants to avoid that. So, we'll wait and see how this all plays out. "I think people just need to recognize that we can't afford the government we have. We have to make adjustments. Our goal all along has been to avoid layoffs, and we'll continue to try to do that." (Report Provided by The Honolulu Advertiser) NEWS FLASH - July 2, 2009 2:20 p.m. HST Judge Rules Governor Lacks Authority to Order Furloughs for State Workers Circuit Judge Karl Sakamoto ruled this morning that Gov. Linda Lingle does not have the authority to unilaterally order furloughs for state workers. The judge found that Lingle's order of three furlough days a month for two years was unconstitutional because changes to workers' wages and hours should be the subject of collective bargaining. The judge ruled, however, that Lingle does have the authority to restrict state spending at the state Department of Education and the University of Hawaii. The governor has said she would reduce spending at public schools and UH in the equivalent amount to her furlough plans. The governor has said previously that she would resort to mass layoffs if her furlough plans were blocked in court. After Sakamoto's ruling today, Lingle said she has made no decision on layoffs yet and will consult with the state attorney general before she makes any decision. Sakamoto said it was premature to rule on a request by public-sector labor unions that layoff procedures be subject of collective bargaining because Lingle has not yet ordered layoffs. Lingle wanted to use furloughs and equivalent spending cuts to save $688 million and help close an estimated $730 million budget deficit through June 2011. Union leaders, who had gone to court to stop the governor, were gratified by the judge's ruling but acknowledged it does not solve the larger problem of the budget deficit. Randy Perreira, the executive director of the Hawaii Government Employees Association, said the unions would contact a federal mediator about a new round of contract talks with the state as early as today. Perreira said state workers are willing to accept sacrifices to help with the deficit, but said any specifics should be the topic of negotiations. "We're obviously pleased with the ruling but at the same time we'll note that the ruling does not solve the problem that we all face," he said. "And we are ready and willing to be bargaining with the governor in an attempt to try to resolve at least our share of the revenue shortfall that the state faces." Union contracts for the HGEA, the Hawaii State Teachers Association, the United Public Workers and the University of Hawaii Professional Assembly expired on Tuesday. Judge Sakamoto ruled that existing contract provisions cannot be changed by the state while the parties negotiate. At the court hearing, Herbert Takahashi, an attorney representing the HSTA and UPW, argued that workers' collective bargaining rights under the state Constitution would be rendered meaningless if Lingle was able to unilaterally order furloughs or cite the recession as an excuse to bypass talks. State Attorney General Mark Bennett told the court that the question of whether Lingle had the right to order furloughs should first be determined by the Hawaii Labor Relations Board. But Bennett said he believed the governor had the authority to furlough workers and respond to what is an undeniable fiscal emergency. Sakamoto, however, said unions had the right to come to court for a preliminary injunction because Lingle gave just a month's notice of furloughs. The judge said the court had to intervene to stop a constitutional violation. Sakamoto said the governor's furlough plans, which were equivalent to about a 14 percent pay cut, strike at the heart of state workers' livelihood. "The nature of a 13 to 15 percent cut in these wages sets in motion changes of jobs, failure of workers to make rents, mortgages, failure of affecting their families to pay tuitions, to pay their loans, creating bad credit ratings, and cascading effects from these events," the judge said. (Report Provided by The Honolulu Advertiser) NEWS FLASH - July 2, 2009 1:35 p.m. HST Victorino Wins Lou Gehrig Award Shane Victorino, of the Philadelphia Phillies, has won this year’s Lou Gehrig Memorial Award, sponsored by the Phi Delta Theta International Fraternity, headquartered in Oxford, Ohio. The award is presented annually by Phi Delta Theta to the Major League Baseball player who best exemplifies the giving character of Hall of Famer Lou Gehrig, who was a member of the Fraternity’s Columbia University chapter. The award was first presented in 1955 and is permanently maintained at the National Baseball Hall of Fame and Museum in Cooperstown, New York. A team of representatives from Phi Delta Theta and the ALS Association’s Philadelphia Chapter will present the award to Victorino at Citizens Bank Ballpark on July 4th when the Phillies take on the New York Mets at 4:05 PM. The presentation will be a part of “4ALS”, a day celebrated throughout Major League Baseball to honor the 70th anniversary of Gehrig’s “Luckiest Man” speech and to raise awareness for ALS (Amyotrophic Lateral Sclerosis) also known as Lou Gehrig’s Disease. Victorino is the 4th member of the Phillies to win the Gehrig Award. For detailed information about the history of the award, its recipients, or to download a press release release or video presentation go to www.LouGehrigAward.org. (Report Provided by Phi Delta Theta International) NEWS FLASH - July 2, 2009 10:35 a.m. HST Hanabusa Urges Lingle to Reconsider Furloughs State Senate President Colleen Hanabusa has urged Gov. Linda Lingle to consider alternatives to her furlough plans, including a 5 percent across-the-board pay cut for state workers or one furlough day a month for the next two years, instead of three days. In a letter to the governor on Tuesday, Hanabusa said the alternatives would help the state close the budget deficit but would not be as devastating as the governor's proposal. She also warned that the governor's plans could result in disparate treatment for state workers, which the governor has tried to avoid by making the furloughs as uniform as possible. Hanabusa's suggestions would save the state less money than Lingle's furlough plans, but are based on an alternative estimate of the budget deficit that is lower than what the governor projects. "I understand and can appreciate the need to maintain a negotiating position with collective bargaining. However, this is not the time," wrote Hanabusa, D-21st (Nanakuli, Makaha), a labor attorney. "The public worker unions have said that they are willing to share in the pain." A Lingle spokesman said the governor had only received Hanabusa's letter yesterday and had no immediate response. A Circuit Court judge is scheduled to hear legal challenges this morning to Lingle's furlough plans filed by public-sector labor unions. The governor has said she would resort to mass layoffs if her furlough plans are blocked. The University of Hawai'i Professional Assembly, meanwhile, filed a complaint yesterday against the university with the Hawai'i Labor Relations Board seeking to keep existing contract provisions in place during labor negotiations. The Hawai'i Government Employees Association has also contended in court filings that provisions of its existing contract should remain because the union and the state have signed a negotiating timetable that extends through December. Union contracts expired on Tuesday. State House and Senate leaders have been in an unusual spot. The balanced two-year budget they passed at the end of last session fell apart after the state Council on Revenues lowered the state's revenue forecast last month. Lingle responded by ordering furloughs and equivalent spending cuts to save $688 million and help close an estimated $730 million deficit through June 2011. Many majority Democrats have been cautious about publicly criticizing the Republican governor's furlough plans for fear of being accused of meddling in the collective bargaining process. But there has also been some internal feedback that Democrats appear disengaged by not getting involved and suggesting potential solutions. Union leaders have said that the governor and lawmakers should consider using money from the state's hurricane relief fund and rainy day fund and temporarily increasing the general-excise tax to help close the deficit. Garrett Toguchi, chairman of the state Board of Education, and J.N. Musto, UHPA's executive director, have encouraged lawmakers to reconvene in special session to address the budget. But Hanabusa and state House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo Valley, Wilhelmina Rise), say there are no plans to reconvene. Say and others have tried to ease some of the urgency over the budget, saying that the immediate financial challenge was to make it through the fiscal year that ended on Tuesday. The governor and lawmakers do not have to act immediately on a deficit projected over the next two years, Say said. Hanabusa, in her letter to Lingle, said there should be alternatives to "simply furloughing all employees" and warned of unintended consequences. Hanabusa cited, for example, the potential impact of furloughs on state workers who, because of the loss in pay, may qualify for unemployment benefits. She said shutting down the state Capitol for three days a month could add 12 days to the legislative session and increase costs. "Taking into consideration the unintended consequences of the furloughs and how devastating three furlough days can be, I ask that you consider the across-the-board pay cut with the unions or, alternatively, take only one furlough day a month," she wrote. State Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), said perhaps it is time for the governor, House and Senate lawmakers, and union leaders to meet and discuss a compromise. "The fear and uncertainty that is out there in the community with our workers is not healthy," he said. "I would like to find some way to break this stalemate." Reach Derrick DePledge at ddepledge@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - July 2, 2009 10:15 a.m. HST Governor Lingle's Internet Tax Veto Likely to Stand Gov. Linda Lingle's veto yesterday of a bill that would apply the state's general excise tax to Mainland retailers with Internet links to Hawai'i will likely stand, after state lawmakers said they will not attempt an override because of a technical flaw. Amazon and Overstock.com had threatened to cancel affiliate marketing arrangements with local Web sites if the bill became law, and both have since canceled Hawai'i affiliations. The Seattle- and Utah-based companies contend that the bill was unconstitutional because neither has a physical presence in the Islands and should not be subject to the state tax. Both companies, however, had said they would restore marketing relationships with local Web sites if the bill was vetoed and not overridden. Local Web sites can get paid to lure customers to Mainland-based retailers through links. Local Internet businesses and bloggers had predicted other companies would follow Amazon.com and Overstock.com and drop affiliates in Hawai'i. "I am vetoing this bill immediately to help ensure Hawai'i is not economically hurt by legislation that was not well thought out and would have negative consequences for nonprofits such as the University of Hawai'i bookstore, and businesses throughout our state," Lingle said in a statement. "I am hopeful by vetoing this bill that Mainland-based companies will promptly restore their relationships with our state." Lingle also said the state attorney general found that the bill may be legally defective because its scope was broader than the subject of its title. 2ND TAX PROPOSAL State House Majority Leader Blake Oshiro, D-33rd ('Aiea, Halawa Valley, 'Aiea Heights), said House lawmakers will not try to override the veto because of the technical flaw. Overrides require a two-thirds majority of votes in both the House and Senate to succeed. Oshiro also said it is questionable whether the House would override a potential veto of a separate Internet tax proposal. That bill would allow Hawai'i to join nearly two dozen other states in the Streamlined Sales Tax Project to simplify state tax laws and help persuade retailers to collect and pay state taxes. The compact is voluntary. States are not able to require retailers to collect state taxes until Congress passes federal legislation signaling that the project does not interfere with interstate commerce. Consumers in Hawai'i are supposed to pay a use tax on mail-order and Internet purchases, but the state does not enforce the law except on some big-ticket purchases such as automobiles. Hawai'i is losing as much as $37 million a year in uncollected taxes on Internet commerce. The two Internet tax approaches had been paired together as they moved through the Legislature last session, so the death of one could mean trouble for the other. State Sen. Carol Fukunaga, D-11th (Makiki, Pawa'a), noted that Amazon.com and other retailers prefer the Streamlined Sales Tax Project because it would bring some uniformity to conflicting state tax laws. She believes it would also help level the playing field for brick-and-mortar businesses that have to pay state taxes. "I think it's the appropriate path to take for a state," Fukunaga said. "It's not intended to create any kinds of new pressures, it's simply to collect taxes that are currently on the books." State Rep. Isaac Choy, D-24th (Manoa), said Amazon.com and Overstock.com are basically arguing that they want to do business in Hawai'i but do not want to pay state taxes. "The mail-order business and Internet sales business are growing by leaps and bounds, and we're going to have to tax that tax base sometime in the future, and do it properly," he said. "One, it's a huge tax base. And two, it's a fairness issue for the brick-and-mortars." AMAZON.COM FREEZE Amazon.com, the nation's largest online retailer, dropped affiliates in Hawai'i, North Carolina and Rhode Island because of the tax issue. The states had modeled the tax proposals after a law passed in New York last year that Amazon.com is challenging in court. Overstock.com dropped affiliates in Hawai'i, North Carolina, Rhode Island and California. "It's awful to have to terminate these relationships with affiliates, simply because they live in states where unconstitutional laws are being passed," Patrick Byrne, Overstock.com's chairman and chief executive officer, said in a statement. "However, politicians have to remember that a tax is a price that government charges for a service, and when they raise their prices, we're going to buy less of their services." Local Internet advocates warned that the bill could chill financial opportunities for local Web sites, from small one-person blog sites to larger operations such as the Advertiser and the Star-Bulletin. "I'm hoping that Amazon.com and Overstock.com will reinstate Hawai'i affiliates," said Troy Fujimoto, new media director for the Star-Bulletin. Reach Derrick DePledge at ddepledge@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - July 1, 2009 4:35 p.m. HST Brush Fire Along Pi'ilani Highway Snarls Traffic Maui police are still rerouting traffic around the scene of a brush fire along Pi'ilani Highway. The fire was first reported shortly after 2:30 p.m. today on the makai side of the highway. No structures were threatened, but Pi'ilani Highway was closed between Lipoa Parkway and Kanani Streets for nearly two hours. The highway was reopened around 4:20 p.m. and only Welakahao Road remains closed between Pi'ilani Highway and South Kihei Road. Now injuries or damage have been reported. The cause of the fire is still undetermined. (Information Provided by The Maui County Police Department) NEWS FLASH - July 1, 2009 3:25 p.m. HST Governor Lingle Vetoes Online Tax Bill HONOLULU – Governor Linda Lingle vetoed HB 1405 today because this legislation has immediate and adverse consequences for residents and businesses of Hawai‘i. This legislation would place Hawai‘i companies at a competitive disadvantage. As a consequence of this bill, Hawai‘i businesses would no longer be able to receive commissions for advertisements on their website that link to numerous national and international firms that offer goods and services to Hawai‘i residents. Already Amazon.com and Overstock.com have officially sent out notification that they are severing their “affiliate” relationships with Hawai‘i. Other well known internet-based firms, such as eBay are likely to do the same if prompt action is not taken. Hawai‘i residents can still order directly through these online retailers’ websites. “I am vetoing this bill immediately to help ensure Hawai‘i is not economically hurt by legislation that was not well thought-out and would have negative consequences for non-profits such as the University of Hawai‘i bookstore, and businesses throughout our State,” Governor Lingle said. “I am hopeful by vetoing this bill that mainland-based companies will promptly restore their relationships with our State.” The Attorney General found that HB 1405 HD2 SD2 CD1 may be legally defective in that it may violate Article III, Section 14 of the Hawai‘i State Constitution. This Article provides that each law shall embrace only one subject which shall be expressed in its title. The scope of HB 1405 may be broader than its title indicates and thus the legislation may not meet the constitutional test. “We are hopeful the Legislature will recognize this legal flaw and not act to overturn my decision to veto this measure,” Governor Lingle added. The Legislature can convene on July 15, 2009 to determine if they will sustain or override the Governor’s actions on any measures she vetoes between July 1, 2009 and July 15, 2009. On June 30, 2009 the Governor issued a list of 65 bills passed during the 2009 Legislative session that she is reviewing for potential veto action. This is one of those bills. The Governor’s statement of objections regarding HB 1405 is attached and can also be found on the Governor’s website at: www.hawaii.gov/gov/initiatives/veto . (Report Provided by the Office of Governor Linda Lingle) NEWS FLASH - July 1, 2009 8:15 a.m. HST Surf Advisory Warns of Waves up to Eight Feet on South Shores 1. EVENT: The National Weather Service in Honolulu has continued the HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE now in effect until 6:00 p.m. FRIDAY. A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: Surf heights will increase to 6 to 8 feet along south facing shores this morning and will continue through tonight. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 2.1 feet is expected between 12:53 p.m. and 1:07 p.m. this afternoon. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - July 1, 2009 6:35 a.m. HST HTA To Spend $3.4M to Attract Visitors from Mainland, Japan, Down Under The state Tourism Authority yesterday approved $3.4 million for marketing the Islands in Japan, North America, Australia and New Zealand. David Uchiyama, head of marketing for the agency, said the money came from the $10 million "marketing opportunity fund" set aside by the board last month to swiftly respond to challenges facing the industry. Tourism has suffered double-digit declines in the number of arrivals over the past year. Uchiyama said the money will be spread over several key visitor markets for Hawai'i, including a slice to the Hawai'i Visitors & Convention Bureau for a West Coast marketing effort. He said the agency also will spend $627,000 to blanket two key commuter trains in Tokyo and Osaka with images of Hawai'i and also feature television advertising. That push is designed to dovetail with the Japanese imperial family's visit to Hawai'i in mid-July. And Uchiyama said another $25,000 is set aside for Australia and New Zealand, for which the summer season peaks in our fall, from September to November. The authority's board, meeting on Maui, also re-elected its chairman, Kelvin Bloom, to serve a second consecutive term. Board member Sharon Weiner will continue to serve as vice chairwoman. "During these challenging times, Kelvin and Sharon's experience and demonstrated leadership will help us move forward as we look for ways to address the issues that currently face Hawai'i's visitor industry," said Mike McCartney, president and chief executive officer of the agency. Bloom was appointed to the HTA board in 2006. He has more than 30 years of experience in Hawai'i's hospitality industry and is the president of Aston Hotels & Resorts. He previously served as the founding president of Castle Resorts & Hotels, chief operating officer of The Castle Group and vice president of Village Resorts Hawai'i Region. Weiner is the vice president of global communications and government relations for DFS Group Limited. She previously served on the HTA board from 2002 to 2006 and was reappointed in 2008. Weiner has more than 30 years of experience working with Hawai'i's visitor industry. Reach
Robbie Dingeman at rdingeman@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS
FLASH - July 1, 2009 6:30 a.m. HST
Amazon Pulls Plug on Hawai'i Websites As State Passes Internet Sales Tax As revenue-hungry states eye Internet retailers as possible sources of new taxes, http://www.Amazon.com Inc. is firing back. Seattle-based Amazon yesterday cut ties with Hawai'i Web sites that refer customers to the online retailer because the state Legislature has passed a law to collect sales taxes on these transactions. The action follows a similar move by Amazon in Rhode Island and in North Carolina, both states that have passed legislation allowing Internet sales to be taxed. Amazon spokeswoman Patty Smith said said the Seattle-based online retailer sent letters to its Hawai'i associates via e-mail informing them that their accounts with the online retailer had been closed. At issue is the company's "Associates Program," which lets thousands of small businesses earn money by posting ads for Amazon and its products on their Web sites. Amazon pays the third-party Web site owner a referral fee of up to 15 percent on sales if a consumer clicks through and buys something. The use of such marketing associates is one of several ways Amazon drives visitors to its Web site. In its Hawai'i letter, Amazon said it would reconsider its decision if Gov. Linda Lingle vetoed the legislation and the veto was not overridden. Late yesterday, Gov. Linda Lingle included the bill on her "potential veto list." In a two-sentence explanation, Lingle said the bill "places Hawai'i companies, particularly those involved in on-line website development that make customer referrals to out-of-state businesses, at a competitive disadvantage to Mainland and international firms by attempting to tax the activities of these out-of-state businesses." Lingle also said the bill violates the state Constitution. In its letter to affiliates, Amazon noted that Lingle has until July 15 to veto the bill but said that its decision will stay in place until the issue is fully resolved. "In the event Hawai'i's governor vetoes this tax collection scheme, and that veto is not overriden, or in the event the law is eventually repealed, we certainly would be happy to reopen our associates program to Hawai'i residents," Amazon said in its letter. States can levy sales taxes on Internet commerce only when the Web company has a "physical presence" in the state, such as corporate offices, stores or warehouses. Seattle-based Amazon, for instance, must charge sales taxes on purchases made on the Internet by Washington state residents. But Amazon customers in nearly every other state don't have to pay sales taxes when they buy from the site. Now, several states are arguing that these third-party advertising contracts at Amazon and other Internet retailers constitute a "physical presence" and are looking to those companies to charge sales taxes on purchases. "We feel that the way the state legislatures are going about this is inappropriate," said Patty Smith, an Amazon spokeswoman. "It places an unconstitutional burden on interstate commerce for a state to require a seller without a physical presence in that state to collect sales tax." Similar legislation is awaiting action in California, prompting Amazon to send a letter to Gov. Arnold Schwarzenegger last week saying it opposed the move. Supporters of the legislation say the status quo gives out-of-state retailers an advantage over local merchants and argue that the companies' advertising affiliates clearly indicate a connection between the retailers and the states. "What the affiliate marketing programs are, are people who are under contract through Amazon who are being paid on commission for referring sales to Amazon," said Lenny Goldberg, executive director at the California Tax Reform Association in Sacramento, which supports requiring retailers to charge sales taxes. "That's drop-dead nexus." Opponents argue that collecting sales taxes would be both burdensome and costly for Internet retailers; for consumers, it would raise the cost of their purchases. By canceling the programs, thousands of individuals who rely on commission fees would be affected. Fred Nicely, tax counsel with the Council on State Taxation in Washington, called the states' efforts to tax shoppers based on affiliate programs "constitutionally suspect." "This is not door-to-door sales, where someone is knocking on your door, showing you the goods, demonstrating the goods," he said. "This is passive advertising, which the U.S. Supreme Court has said is not enough of a presence in the state to require a remote seller to have to collect a state sales tax." (Report Provided by The Honolulu Advertiser) NEWS FLASH - July 1, 2009 6:25 a.m. HST Sandwich Isles' Bid for Hawaiian Telcom Gets Hearing Today Sandwich Isles Communications Inc. faces a critical juncture today in its $400 million plan to acquire Hawaiian Telcom Inc. The upstart phone company announced last month that it wants to buy the state's largest and oldest telephone company, in a competing offer to Hawaiian Telcom's standalone $460 million reorganization plan. U.S. Bankruptcy Judge Lloyd King will hold a hearing today over whether Hawaiian Telcom should open up the sales process to outside bidders like Sandwich Isles or whether Hawaiian Telcom is free to proceed with its own deal on an exclusive basis. Industry experts said Sandwich Isles faces long odds even if it obtains a favorable ruling: It's too small, lacks the expertise and won't be able to obtain the financing for its plan, they said. With just 100 employees and slightly more than 2,000 customers, Sandwich Isles would experience considerable challenges acquiring a company that employs more than 1,400 and provides service to more than 500,000 residential and business customers statewide. "That's a mom-and-pop operation that's trying to take over a local phone company," said Mark Lutkowitz, co-founder of Telecom Pragmatics Inc., a Nashville, Tenn.-based consulting firm. "I don't think this is going to happen." The 126-year-old Hawaiian Telcom filed for bankruptcy protection Dec. 1 due to mounting debts and the loss of thousands of customers to wireless and other competitors. Founded in 1995, Sandwich Isles provides heavily subsidized phone lines to rural customers living on property developed by the Department of Hawaiian Home Lands. The federal government pays Sandwich Isles about $13,000 per customer for providing the service, which is 100 times higher than the average subsidy for rural telephone service on the Mainland. During an interview at the company's Downtown headquarters last week, Albert Hee, Sandwich Isles' founder and president, dismissed criticism of his company's size and capabilities. The 54-year-old Annapolis graduate said Sandwich Isles has invested more than $334 million in fiber optic cables, switching equipment and other technologies over the past 14 years. The company now has a statewide telecommunication network that covers more than 200,000 acres on six islands and has the 20-year exclusive rights for a 274-mile undersea cable that links O'ahu and the Neighbor Islands. "I believe that Sandwich Isles' proposal is the only currently available proposal that will work for Hawai'i," Hee said in a recent court filing. "Sandwich Isles ... has never experienced the kind of outcry of complaints about service that are routinely reported in the press about debtors." Jade Danner, CEO of Hawaiian Homestead Technology Inc., said Sandwich Isles has made a big difference in her company's growth. Danner's company converts paper documents to digital files for the U.S. Department of Defense and other clients. She said Sandwich Isles' fiber optic cables — which offer more bandwidth than transmission lines used by Hawaiian Telcom and Oceanic Time Warner — allow her company to move large amounts of data among several offices at about half the price charged by Sandwich Isles' competitors. "These are all the rural, remote, far-flung places," said Danner, whose company mostly operates on Hawaiian homestead lands. "I think they're going to revolutionize what's possible in the work world." There are plenty of critics. Since 1995, Sandwich Isles has received more than $400 million in low-cost loans from the federal government to fund its rural telecommunications systems. U.S. Rep. Henry Waxman, D-Calif., recently questioned the costly federal subsidies to Sandwich Isles and other local carriers such as Sprint Nextel and Mobi PCS, in hearings before Congress. "We should ensure that recipients of these public funds meet certain obligations that benefit the consumers," said Waxman, chairman of the House Committee on Energy and Commerce, in a March 12 subcommittee hearing. Lutkowitz, the telecommunications consultant, doubts that Sandwich Isles will be successful in obtaining the necessary financing. To get the federal government to fund its purchase of the local phone company, Sandwich Isles must first get approval from the Federal Communications Commission to expand its existing rural service area to the entire Neighbor Islands, which is unlikely, he said. Lukowitz added that the government has never allowed a company to use the rural subsidy program for a takeover of a local phone company. "They can ask for it since they have nothing to lose but I just think it's a joke," he said. Hee said he hopes to tap private lending sources for some of the financing. Hee defended Sandwich Isles' use of government funding, adding that the company's per-line subsidy reflects the high cost of building a telecommunications infrastructure in Hawai'i. According to Hee, the federal government has funded rural telecommunications programs for the past 70 years but his company was the first in Hawai'i to successfully take advantage of it. "I think a lot of it has created a lot of opposition but, hey, if somebody knows how to do it better, let me know," Hee said. "You have to have a little bit of maverick in you to do what I have done." Reach Rick Daysog at rdaysog@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - July 1, 2009 6:15 a.m. HST CPB Bailout Followed Call from Major Customer: Senator Inouye WASHINGTON — U.S. Sen. Daniel Inouye's staff contacted federal regulators last fall to ask about the bailout application of an ailing Hawai'i bank that he had helped to establish and where he has invested the bulk of his personal wealth. The bank, Central Pacific Financial, was an unlikely candidate for a program designed by the Treasury Department to bolster healthy banks. The firm's losses were depleting its capital reserves. Its primary regulator, the Federal Deposit Insurance Corp., already had decided that it didn't meet the criteria for receiving a favorable recommendation and had forwarded the application to a council that reviewed marginal cases, according to agency documents. Two weeks after the inquiry from Inouye's office, Central Pacific announced that the Treasury would inject $135 million. Many lawmakers have worked to help home-state banks get federal money since the Treasury announced in October that it would invest up to $250 billion in healthy financial firms. But the Inouye inquiry stands apart because of the senator's ties to Central Pacific. While at least 33 senators own shares in banks that got federal aid, a review of financial disclosures and records obtained from regulatory agencies shows no other instance of the office of a senator intervening on behalf of a bank in which he owned shares. Inouye, D-Hawai'i, declined a request for an interview but acknowledged in a statement that an aide had called the FDIC to ask about Central Pacific's application. Inouye said he was not attempting to influence the outcome. The statement did not address Inouye's personal role in the inquiry, including whether he directed the aide to make the call or knew at the time that it had been made. Even if Inouye were directly involved, it would not violate the rules the Senate sets for itself, experts said. Both the FDIC and the Treasury said the decision was not affected by the involvement of Inouye's office. Central Pacific was founded in 1954 by a group of World War II veterans, including Inouye, who were emerging leaders in Hawai'i's Japanese-American community. Inouye reported ownership of Central Pacific shares worth $350,000 to $700,000, some held by his wife, at the end of 2007. Inouye has requested a delay in filing his annual financial disclosure for 2008, which was due this spring, and he declined to provide the current value of his investment. Since the end of 2007, the bank's stock has lost 79 percent of its value. Central Pacific is Hawai'i's fourth-largest bank, holding about 15 percent of the state's deposits. In recent years, it increasingly used the money to make loans in California, funding several large residential developments. By last year, the bank was facing the consequences of California's collapsing housing market. In July, Central Pacific reported a quarterly loss of $146 million, matching its total profit in the previous three years. LONG ODDS In October, shortly after the government announced that it would invest billions of dollars in banks to spur new lending, Central Pacific submitted an application under the initiative, called the Troubled Assets Relief Program, or TARP. The bank faced long odds. More than 1,600 banks submitted applications to the FDIC in the three months after the program was announced, according to a report by the FDIC's inspector general's office. The agency forwarded 408 applications to Treasury, which approved only 267, or roughly 16 percent of the total. Central Pacific's situation was even bleaker because it was in trouble with the FDIC. Regulators had raised concerns about the bank earlier in the year. The bank would soon sign an agreement with its state regulator and the FDIC requiring it to raise an additional $40 million in capital and to improve its management practices. After the bank applied for bailout funds, weeks passed. Andrew Rosen, a spokesman for Central Pacific, said regulators had told the bank that the process would take "some time" because of the glut of applications. In late November, still waiting for an answer, the bank's government-affairs officer called Inouye's office to ask that it check on the status of the application, according to Rosen. One day after the bank's request, an Inouye aide called the FDIC's regional office in San Francisco, which regulates Central Pacific. Inouye said in a statement that the staffer, Van Luong, "simply left a voicemail message seeking to clarify whether Central Pacific Bank's application for TARP funds had actually been received by the FDIC." The statement said that the bank was soon notified that the application had been received, "and that closed the matter." "This single phone call was the entire extent of my staff's contact with regard to Central Pacific Bank, to any outside agency," Inouye said. Internal FDIC e-mails obtained through the Freedom of Information Act show that Luong's question was referred from San Francisco to FDIC headquarters in Washington. A few days later, Alice Goodman, who heads the FDIC's office of legislative affairs — and whose office is typically the point of contact for congressional inquiries — called Luong to say that the application "was still under process." INTERNAL E-MAILS The internal e-mails show that the application had been forwarded to an inter-agency council headed by the Treasury Department that reviews cases in which a bank did not meet the criteria for a federal investment. Those criteria require banks to demonstrate their viability without the benefit of federal funding. Shortly after the Inouye staffer's phone call, the council approved Central Pacific's application. So far, more than 600 banks have received federal investments. The Obama administration announced this spring it would continue to accept applications from community banks until November. The crush of calls from Capitol Hill on behalf of specific applicants led the Treasury to announce earlier this year that it would start releasing a weekly list of congressional inquiries, though it has yet to do so. The question of what role members of Congress have played in influencing the Treasury's decisions is under review by the special inspector general appointed to oversee the financial rescue program. A spokesman for the special inspector general said a report is expected later this summer. Such contacts by members and their staff do not violate the rules Congress has established to govern itself. "Congress has never been willing to adopt strong conflict-of-interest rules for its members, but for the most part, has left it up to each member to decide for themselves whether they have a potential conflict of interest," said Fred Wertheimer, president of Democracy 21, a watchdog group. Andrew Gray, an FDIC spokesman, said the Central Pacific decision was not unique, but he declined to name other banks, citing a policy against commenting on specific institutions. ProPublica, an independent newsroom that produces investigative journalism in the public interest, and The Washington Post contributed to this report. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 30, 2009 7:40 p.m. HST Governor Lingle Submits List of Veto Considerations HONOLULU – Governor Linda Lingle today submitted to the State Legislature a list of 65 bills that she is considering for potential vetoes. The complete list is attached. The bills are being considered for potential veto due to various factors including significant negative impacts on the public, legal or constitutional concerns, potential unintended consequences, and technical flaws in the legislation. Because of the complexity of certain bills, the Governor has placed them on the list to preserve her option to veto them while the Administration continues to review the legislation. Specific areas of concern include bills that would extract more taxes from state residents (HB 1271, SB 1678 and HB 1544); impact end-of-life choices (HB 1379); curtail affordable housing choices (SB 1160 and SB 1350); and, remove the Public Utility Commission’s oversight to control basic telephone service (SB 603). In addition, due to the unprecedented $2.7 billion revenue shortfall between now and June 30, 2011, as projected by the Council on Revenues, the Lingle-Aiona Administration has increased scrutiny of all bills for potential budgetary implications. As a result, a number of bills were put on the potential veto list because they call for new or increased spending at a time when the State cannot afford to expand the cost of government or further deplete the State’s limited fiscal resources. Twelve bills on the list fall into this category of potentially negative fiscal implications (HB 36, HB 343, HB 358, HB 982, HB 986, HB 989, HB 1504, HB 1809, SB 266, SB 423, SB 1248 and SB 1665). “While the Legislature has passed legislation that they believe is important and the public played a key role in the legislative process, it is my duty as Governor to ensure the bills that become law are constitutional, fiscally responsible and in the State’s and the public’s long-term interest,” said Governor Lingle. “This year, given the unprecedented fiscal crisis we are facing, my Administration is taking an extra cautious approach, beyond our already high level of fiscal prudence, to examine bills that would erode our ability to balance the State budget or that would delay our economic recovery,” the Governor added. The Governor is required by the Hawai‘i Constitution to give the Legislature 10 days notice of any bill she is considering vetoing, prior to the deadline when she must take final action on the bills passed in the 2009 legislative session. This year the deadline to veto bills is July 15. Any bill on the potential veto list can still be signed by the Governor or allowed to become law without her signature. Placing the bills on the potential veto list allows the Governor additional time to deliberate, and provides further opportunities for the public to voice their support or concern relating to the bills. Bills not on the potential veto list cannot be vetoed. Therefore, the list is more inclusive to preserve the Governor’s option to veto a measure that is still being reviewed. Over the next 10 days, the Lingle-Aiona Administration will continue to carefully review the bills on the list. As she has done every year since taking office, the Governor has been seeking comments on bills passed this legislative session from the public, including individuals, businesses, industry and professional associations, nonprofit groups, and community organizations statewide. In addition, the Administration sought input from legislators, the counties, law enforcement agencies, neighbor island liaisons and state boards and commissions. This year the Legislature passed 251 bills. As of today, 163 bills have become law. Four bills were vetoed while the Legislature was still in session. For a complete list of bills that have become law this legislative session or to read the Governor’s statements of objections on bills already vetoed, visit the Governor’s Web site at: www.hawaii.gov/gov/initiatives/laws. Public comments on the 65 bills being considered for vetoes on July 15 may be sent to the Governor’s office as follows: Email: governor.lingle@hawaii.gov or gov.policy@hawaii.gov Fax: (808) 586-0006 Mail:
Office of the Governor (Report Provided by the Office of Governor Linda Lingle) NEWS FLASH - June 30, 2009 7 p.m. HST New South Swell Prompts High Surf Advisory 1. EVENT: The National Weather Service in Honolulu has ISSUED a HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE effective from 6:00 a.m. WEDNESDAY to 6:00 p.m. FRIDAY. A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: A building south swell will cause surf heights to increase to 8 feet along south facing shores by Wednesday morning. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 1.6 feet is expected between 8:29 p.m. and 10:34 p.m. this evening. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 30, 2009 2:20 p.m. HST New Fiscal Year Brings Rate Changes for Water, Sewer, Refuse Collection WAILUKU - Beginning July 1, 2009, fees for basic County services will change to reflect the FY 2010 Budget Ordinances adopted earlier this year by the Maui County Council. Water rates will increase by an average of 8.5 percent, and sewer rates charged by the Department of Environmental Management will increase by an average of 10 percent. Please see the attached charts for a breakdown of the water and sewer rate increases. According to Department of Water Supply (DWS) officials, the rate increase for water is expected to generate approximately $3.9 million in additional revenue for DWS, which will be used to offset increases in electrical expenses, debt service and operations and maintenance expenditures. The balance of additional revenues will be used to fund capital replacement projects. The rate increases are intended to keep both utilities financially self-supporting without any subsidy by the County’s General Fund. For more information on water rates, contact DWS Customer Service at 270-7730. For sewer rates, call the Department of Environmental Management at 270-7420. Also effective July 1, 2009, new residential refuse collection rates will apply: Residents on Maui and Molokai will pay $18 per month (up from $14 per month) and residents on Lanai will pay $9 per month (up from $7 per month). Currently, a new refuse utility billing system is being implemented, including activation of the system’s new software program. Bills for the upcoming six-month billing period are expected to be mailed in the next two weeks; customers will have one month from the billing date to remit payment. More information on solid waste services is available on the County Website at www.mauicounty.gov/solidwaste or by phone at 270-1731. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 30, 2009 11:15 a.m. HST Kipahulu Campground Closed During Fourth of July Weekend Ongoing construction in the Kipahulu area of Haleakala National Park near Hana has caused the campground to be closed to the public. The campgrounds will not be open for this Fourth of July weekend. The park trails and visitor center are still open. For information about the Kipahulu area, contact the Haleakala visitor's center at 808-248-7375. (Report Provided by the Haleakala National Park Service) NEWS FLASH - June 30, 2009 11:10 a.m. HST County Offices Closing Early for Holiday WAILUKU - County of Maui offices, Lanai Landfill and the Olowalu Recycling and Refuse Center will be closed Friday, July 3, 2009 for the Independence Day Holiday. The Central Maui Landfill will be open 6 a.m. - noon.; Hana Landfill will be open 8 a.m. – 2 p.m.; and Molokai Landfill and Recycling Center will be open 8 a.m. – noon. Waiehu Golf Course will be open; all County pools are scheduled to be open, except for the training pool at Kihei Aquatic Center, which may still be closed for maintenance. The public is advised to call 270-8208 for daily recorded pool schedule information, which is updated by 9 a.m. seven days a week. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 30, 2009 6:10 a.m. HST While Still Dropping, National Housing Market Begins to Stabilize NEW YORK (AP) — There is a clear trend home prices declines are moderating — another sign the beleaguered housing market is stabilizing, according to data released Tuesday. While the Standard & Poor's/Case-Shiller index of 20 major cities tumbled by 18.1 percent, it marked the third straight month the decline was not a record. And yearly losses in 13 metros improved compared to March. "The stock market bottomed in March and measures of consumer confidence have turned upward. This report shows that these better spirits are also appearing in the housing market," said David M. Blitzer, chairman of the S&P index committee. But rising foreclosures fueled by layoffs could derail a meaningful turnaround. The number of homeowners at least two months behind or in foreclosure jumped in the first quarter from the previous quarter, a Treasury Department report said Tuesday. Defaults from borrowers with good credit contributed to much of the increase in seriously delinquent loans, echoing data last month from the Mortgage Bankers Association. As the recession claims more jobs, borrowers in good standing are more likely to miss their mortgage payments. Efforts to modify home loans have been slow and easily outpaced by the number of new delinquencies. In the first quarter, loan companies modified 185,156 mortgages, up 55 percent from the previous quarter. But the number of foreclosures in process increased to 844,389, up 22 percent. And nearly one in four borrows who received a mortgage payment reduction fell behind again within six months, the report found. "So far (the modification program) isn't showing large numbers, which tells me that it's not working and that's a problem," said Patrick Newport, an economist with IHS Global Insight. Nevertheless, stabilizing home prices will help stem the foreclosure crisis. Eight of the 20 metros posted price gains from March, with Dallas recording the largest increase at 1.7 percent, the index showed. And every city except Charlotte showed some kind of improvement month-over-month. The 20-city index is off almost 33 percent from its peak in the second quarter of 2006, which means home values are now around 2003-levels. "Prices are still dropping. They're just no longer in freefall," Newport said. Hardest hit remain Phoenix and Las Vegas, where home prices have lost more than half their value since their peaks. The Case-Shiller index tracks repeat sales on a specific group of homes in each city. Sales between related parties, such as family members, are excluded. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 29, 2009 9:05 p.m. HST Maui Officials Respond to DOH Swine Flu Report from Moloka'i Tonight the County of Maui responded to a Department of Health press release issued today at 4:40 pm stating that there is an outbreak of novel H1N1 among firefighters on Molokai: “We were surprised by a press release issued late this afternoon by the Department of Health claiming that an outbreak of the novel H1N1 influenza has occurred on Molokai among our fire fighters. We have reviewed with our personnel the statement made by DOH and have found that there is no clear basis to declare an outbreak of this sort. “About 10 days ago, one firefighter was tested and confirmed with the H1N1 influenza. Since then, that individual has been deemed healthy and has returned to work. “At no time was our service impaired, crippled or challenged. Our 39 fire fighters at the three Molokai fire stations are fine, and public safety has never been in jeopardy. “We are reviewing how one employee being ill has turned into a declaration of an outbreak by the Department of Health. Unfortunately, Dr. Sarah Park, chief of the DOH Disease Outbreak Control Division, had called it a situation on Molokai that demonstrated how limited services can be critically impacted; however, there was not a situation involving our fire fighters to begin with that would have created such a concern.” (Report Provided by the Maui County Office of Information) NEWS FLASH - June 29, 2009 5:25 p.m. HST Hawai'i DOH Confirms State's First Swine Flu Related Death HONOLULU – The Hawai‘i State Department of Health (DOH) today confirmed that novel H1N1 influenza infection likely contributed to underlying medical conditions that caused the death of an adult in his/her late 60’s on June 19 at Tripler Army Medical Center. The O‘ahu resident is the first death in Hawai‘i associated with the new flu strain and one of over a hundred reported nationwide over the last two months. No further information about the patient's medical condition before death or identification will be released due to patient privacy considerations and federal law. The first hospitalization of an adult with novel H1N1 influenza within the state was confirmed on June 27. The O‘ahu resident with underlying health issues developed pneumonia as a complication of their H1N1 infection. The individual is responding to treatment and recovering in the hospital. “These two new severe cases of novel H1N1 are a sad reminder of the seriousness of influenza, particularly for those at-risk for complications,” said Dr. Sarah Park, chief of the DOH Disease Outbreak Control Division. “Unfortunately, we knew this would happen eventually, as we have flu-related deaths and hospitalizations every year from regular seasonal influenza.” Dr. Park added, ”The influenza infection itself was not the primary cause of death in this case, it was a contributing factor to the patient’s already declining condition due to multiple serious health issues.” Cases of novel H1N1 influenza have been identified on the islands of O‘ahu, Maui, Hawai‘i, Kaua‘i, and Moloka‘i with the majority of cases confirmed on O‘ahu. Most recently, the DOH confirmed an outbreak of novel H1N1 among firefighters on Moloka‘i with reportedly 20 workers or over half of the staff becoming ill. The DOH has been working with local organizations to provide information to the community on prevention measures, and will be sending public health staff to the island of Moloka‘i tomorrow to conduct additional education and outreach efforts due to this new outbreak. “The situation on Moloka‘i shows how influenza can affect basic central services and cripple limited resources,” said Dr. Park. “It is so important that we all continue to consider and plan for the impact a flu pandemic can have on our workplaces, schools, and communities.” The DOH has confirmed a total of 545 cases of novel H1N1 since May 5, 2009. Of these cases, all but three have recovered or are recovering at home with no complications. One adult resident is hospitalized on O‘ahu; one adult that resides on Maui became ill after traveling to Washington state in May, was hospitalized and recovered in Washington before returning home; and one death occurred on O‘ahu as a result of complications from the flu. As
with any influenza, the public is reminded to take the following
steps to prevent spreading illness to others: (Report Provided by the State of Hawai'i, Department of Health) NEWS FLASH - June 29, 2009 3 p.m. HST Hawai'i Students, Chaperons Released from South Korean Quarantine All 21 Hawai students and three adult chaperons have been released from medical quarantine in South Korea, the Pacific and Asian Affairs Council said today. The students were quarantined because several of them tested positive for swine flu. One chaperon who has developed pneumonia remains in a hospital, but the rest of the group has resumed its travel itinerary. PAAC officials are investigating the possibility of extending the date of return to Hawaii, so as to provide the students with the fullest range of experiences possible, as originally planned. The return date is still currently set for July 5. The students, from public schools around the state, were selected by the PAAC to participate in a study tour of South Korea. But when they arrived on June 22, thermal scans taken at Seoul Incheon Airport indicated elevated body temperatures in five of the students. The five were taken to a hospital, where tests confirmed they had swine flu. The rest of the group was quarantined in its hotel. Several other members of the group later were found to have swine flu. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 29, 2009 2:55 p.m. HST Maui Quake Magnitude Revised; Felt As Far Away As O'ahu Last night's magnitude-3.5 earthquake beneath Haleakala was felt on Maui, Molokai, Lanai as well as parts of northwest Hawaii Island and Oahu, the U.S. Geological Survey said today. The USGS said today it had received more than 600 'felt' reports. The earthquake was located about 2 miles southeast of Makawao at a depth of 18.6 miles, the USGS said. The earthquake is believed to be the result of flexure of the Earth's lithosphere to accommodate the weight of Haleakala volcano, the USGS said. For updates and information on recent earthquakes in Hawaii, visit the Hawaiian Volcano Observatory website at: http://hvo.wr.usgs.gov (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 29, 2009 2:15 p.m. HST MEO Receives $100,000 for 'Green' Training Program Maui Economic Opportunity, Inc.(MEO) has received $100,000 from the State Dept. of Labor and Industrial Relations (DLIR) to develop a “green” training program in Small Business & Residential Energy Management (SBREM) and Commercial Building Energy Management (CBEM). This effort, in collaboration with the University of Hawaii’s Maui Community College and it’s Office of Continuing Education and Training through the Vital Innovative Training & Economic Development Center (VITEC) and the Sustainable Living Institute of Maui (SLIM), will result in an ongoing ability to train an eco-friendly workforce in Maui County by addressing the skill challenges necessary to alter and manage the infrastructure of current workforce systems (eg. energy auditing and retrofitting) and/or aiding in the establishment of new industries focused on deploying innovative energy conservation strategies and technologies. “Learning is life-long, especially in the workplace where high-performance, quality, and technological adaptation are increasingly a requirement for advancement. The creation of a trained workforce in “green jobs” is part of MEO’s long term strategy to insure improved employment opportunities for the unemployed and underemployed people in our community,” Said MEO CEO Sandy Baz. “In 2010, all residential construction will require solar hot water heating. We recognized the need to have a trained workforce ready to take on the boom that will take place next year, and we are delighted that Maui Community College was ready, willing and able to partner with us to obtain the necessary funds. These will be good, high paying jobs that will help people and change lives.” The program will begin to take in students next January with the first class scheduled for completion in March. The second group will graduate in July. The partners are forming an advisory council of interested business leaders to insure the curriculum being developed and the graduating students have the requisite skills the jobs in the industry will require. It is anticipated that up to 20 students will be enrolled in each of the first two cohorts of the program. The students will have a combination of classroom training coupled with on the job training and applications. “The Sustainable Living Institute of Maui (SLIM) is excited to play an integral role in developing and implementing this new energy efficiency training program and looks forward to continued involvement in efforts towards contributing to Maui County’s energy independence and the development of a locally trained green workforce,” said Alex de Roode, SLIM Executive Director. “SLIM, VITEC and MEO are natural partners in these efforts. This specific initiative emerged as a direct result of collaborative work conducted as a part of the Maui County Energy Alliance.” (Report Provided by Maui Economic Opportunity) NEWS FLASH - June 29, 2009 7:15 a.m. HST DLNR Refocuses Enforcement Priorities The Department of Land and Natural Resources is undertaking a major restructuring of its law enforcement arm to refocus on protecting the state's natural, cultural and historic resources. As part of a newly released five-year strategic plan, the department's Division of Conservation and Resources Enforcement is seeking national accreditation and looking at ways to shed some tasks that are keeping officers from spending more time on patrol and responding to complaints. DOCARE officers also are expected to get more time in the field when a new "conservation court" is phased in over the next two years to handle minor civil violations of resource laws. Constantly evolving responsibilities and organizational upheaval, such as the 1996 transfer of the now-defunct Marine Patrol from the Department of Public Safety to DOCARE, have made it difficult for the agency to distinguish its priorities, according to DLNR Chairwoman Laura H. Thielen, who took over the department in 2007. "I don't think we even had a strategic plan of what DLNR enforcement should be, given it came from different places," she said. "Consequently, attention to core resource enforcement has suffered at the same time as our population and visitor counts have risen and stresses on the resources are multiplying." No longer simply fish and game wardens, DOCARE's 120 conservation and resource enforcement officers have the daunting task of enforcing the rules and regulations of DLNR's other divisions and monitoring state and county parks, historic and cultural sites, forests, wildlife and marine life, sanctuaries, public fishing areas, boating, ocean recreation and coastal programs, game management and public hunting areas, and natural area reserves scattered across 3.2 million acres of conservation and state-owned lands, 3 million acres of ocean and 750 miles of coastline. The Nature Conservancy of Hawai'i is among a long list of groups that have advocated for more DOCARE officers. Others are the Sierra Club, the Conservation Council for Hawai'i, KAHEA: The Hawaiian-Environmental Alliance, the Hawaii Audubon Society, the Pacific Fisheries Coalition and Malama Hawai'i. "No matter who you talk to who has an interest in the nearshore marine realm, there just isn't enforcement and not sufficient enforcement officers and too much area to cover," said Mark Fox, director of external affairs for The Nature Conservancy. "It doesn't matter if it's from the conservation community, the fishing community or the recreational user community, there are not a lot of things we agree on, but there is one thing we agree on: We'd all like to see more capacity and a greater level of enforcement." Fox said he's enthusiastic about DOCARE's new strategic plan, but would like to see it implemented "sooner and faster." "We're excited that they made their primary goal to focus on natural resource and cultural protection. ... We think they need to get out there and start making examples of people," he said. "I think people would respond to that." 'SPREAD TOO THIN' A 2006 management audit of DOCARE by the state auditor reported the division's officers generally are unable to patrol state land and waterways and also respond to hot line calls. The report said DOCARE rarely used its boats to patrol waterways, "providing virtually no coverage of the coastline out to the three-mile limit." "Growth of enforcement division's conservation enforcement workload, possibly by as much as 50 percent, along with a mission that has shifted away from protecting natural and cultural resources toward deterring illegal and criminal activity, has caused the enforcement workforce to be spread too thin," the audit said. "Public perception is that the state is unable to respond effectively to or enforce laws relating to the conservation of natural resources, making the public less likely to comply voluntarily." The concerns echoed those in a 2005 NOAA study of coral reef ecosystems, which indicated fishers frequently cited inadequate enforcement of fishing and marine resource laws in Hawai'i as one of their main concerns. The study said that although state law mandates that the primary duty of DOCARE officers is to enforce resource laws, the proportion of citations and arrests related to natural resource violations had decreased, comprising only about a third of all citations issued. Maui fisherman Darrell Tanaka said many people engaged in illegal activities that contribute to overfishing don't worry about getting caught. Tanaka is part of a growing group of fishers who have become advocates for DOCARE and laws promoting sustainable fisheries. "When you have a bad economy, people turn to their resources, and the ocean is a source of food and recreation ... More strain is being put on the resource but we don't have enforcement officers there to protect it to address the additional impacts," he said. "If more officers were out there, you would have more concern by would-be poachers that they're going to get caught." Fox believes most fishers would obey regulations if they understood the rules and felt more pressure to comply. "One of the best ways to inform people what the rules are is to have enforcement out there watching and being visible," he said. "We've all been to places like Florida or Alaska or California and seen that when you pull up to the boat dock in a lot of places in this country, there's an enforcement officer or fish and game officer asking what you're doing and what you caught, and that's rare to have happen here." DLNR ENFORCEMENT DLNR leaders admit the enforcement division has been primarily responding in a reactive manner. Although the department has been building stewardship, research and public awareness partnerships with community, scientific and nonprofit groups, Thielen said that's not enough. "Enforcement is a component of keeping healthy reefs and healthy ecosystems in our oceans. It's a very important component and one of the few components that can really only be done by a government agency or regulatory agency," she said. "Outside help with education, data gathering and research and partnerships can stretch DLNR resources, but at the end of the day, when education doesn't work, when prevention doesn't work, when you have to have someone step in and say, 'You need to stop that and here is a citation and here are the consequences,' that is DLNR enforcement." The department was finally getting public and legislative support for additional enforcement resources when the recession hit. Even before Gov. Linda Lingle announced across-the-board spending cuts, DOCARE's current $9.9 million budget was slashed 18 percent by the Legislature for the coming fiscal year and 21 positions were lost, including 13 conservation and enforcement officers. DLNR officials said even greater cuts are coming, and Lingle's plan to furlough state workers effective Wednesday will further reduce enforcement coverage. "Over the next couple of years, the state is not going to be in a position to add staff no matter how critical the positions are," Thielen said. "That said, it is a very good time for DOCARE to be taking the time to figure out how to restructure itself. It's a very good time for the different divisions in this department to be sitting around a table together to figure out what those core purposes are to keep going during these next years." One step being taken is seeking accreditation from the Commission on Accreditation for Law Enforcement Agencies. The process involves establishing a body of standards designed to increase agency effectiveness and efficiency. To get the ball rolling, the Harold K.L. Castle Foundation has provided a grant to send nine DOCARE officers to a commission conference next month. Thielen also said discussions have started between DOCARE and the Aquatic Resources, Historic Preservation, State Parks, Forestry and Wildlife and other DLNR divisions to identify key resource protection areas and how the other divisions can support enforcement efforts. For example, minor fishing violations could be handled by aquatic resources staff through the new Civil Resource Violations System that will allow violators to pay a simple fine instead of going before the Board of Land and Natural Resources or the courts, where DOCARE officers often are called on to testify. "That is not a good use of enforcement officers' time," Thielen said. DOCARE also is working with the Division of Boating and Ocean Recreation to free up enforcement officers from routine police work at small boat harbors. Forty percent of citations issued in the past fiscal year involved activities at small boat harbors, according to DOCARE records. A new contract for parking services at the Ala Wai Small Boat Harbor will require the vendor to provide basic security, and Thielen said similar contracts will be put in place at other sites. The strategic plan, developed over a series of meetings last fall, also looks at improving DOCARE procedures, training, technology, employee recruitment and retention, and staff utilization. LEGISLATURE WOES Chronic staffing shortages and budget woes aren't the only hindrances to better protection of marine resources. DLNR often faces resistance to enforcement-related measures at the Legislature, where fishing interests have a strong lobby. A law that would have authorized inspection of boats, coolers and other containers belonging to commercial marine licensees didn't even make it out of committee during the last legislative session. As it stands, DOCARE officers can inspect containers only if there's probable cause. Licensed commercial fishers are required to file a monthly catch report, but at least one-third ignore the rule, Thielen said. She argues that commercial fishers, who pay a $50 annual license fee, should be subject to the same requirements as hunters, who agree to inspections of their game bags as a condition of obtaining a hunting license. Makakilo fisherman Thomas Grass, who comes from generations of commercial fishermen in Alaska, said he's astounded at the differences in enforcement rules and capabilities between the two states. "The DOCARE officers do not have the authority to ask people to inspect their catch if it is not in public view," he said. "Once the fishermen figured this out, they switched from mesh bags to pillowcases. The DOCARE cannot even look inside of someone's pillowcase without permission, and they can't look in coolers or the fish holds on boats. How the heck can they do their job if they can't even breach a pillowcase?" Hawai'i also is rare among coastal states in not issuing recreational saltwater fishing licenses, despite estimates that recreational fishers are removing more fish from reefs than commercial fishers. The state does have freshwater fishing licenses, issuing 6,857 last year at a cost of $5 each. According to U.S. Fish and Wildlife Service records, Hawai'i by far issues the fewest number of fishing licenses in the nation. Recreational fishing licenses could provide a source of revenue and help the state claim more federal money for sportfishing programs that base funding allocations, in part, on the number of fishing licenses issued. KEY INFORMATION More important, Thielen said, is the information that could be gathered from catch reports. "The real issue here is, do we have enough data and information on what's being taken out of the ocean to make good management decisions? Clearly, recreational fishers are a big part of the picture. But a lot of people get very tense about licensing," she said. To ease some of the concerns, Hawai'i could follow the lead of other states that offer exemptions to shore fishers, native populations and other groups. Grass supports recreational fishing licenses as a funding source for enforcement. Alaska, which charges $24 for an annual license, collected more than $23 million in sportfishing fees in 2007, according to the state's Department of Fish & Game. "When we go fishing (in Alaska), it is not uncommon for fish and wildlife officers to land in float planes and check out boats. They also cruise around in big, fast boats," he said. "Southeast Alaska has 20,000 miles of undeveloped coastline and our wildlife officers manage to catch tons of people because they have the resources to do it. Hawai'i is the only state I know of where any joker with $50 can harvest a natural resource and sell it." Thielen said DLNR is considering establishing a recreational fishing license in the wake of a new NOAA Fisheries rule requiring recreational fishers who use federal waters to join a national registry by Jan. 1, 2010, if their state does not have a licensing program. The purpose of the registry is to gather data on the economic value of saltwater fishing and to help manage and rebuild fish stocks, the agency said. Reach Christie Wilson at cwilson@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 29, 2009 7:05 a.m. HST Damien's Rise to Sainthood Helping to Eliminate Hansen's Disease Stigma Father Damien's coming elevation to sainthood in October is renewing efforts to eliminate the centuries-old stigma attached to Hansen's disease, also known as leprosy. The illness still occurs — though rarely — in the United States and continues to be a public health concern in several developing nations. On average, 20 new cases of Hansen's disease are diagnosed in the Islands annually. Hawai'i has one of the highest per capita rates of Hansen's disease nationally, though other states, including Texas and California, see more cases. "I think people don't realize it's still out there," said Lori Ching, program manager for the state Hansen's Disease Community Program. Most new Hawai'i patients are immigrants from Asia and the Pacific, and are diagnosed thanks to screening programs that also look for other illnesses. Worldwide, more than 200,000 new cases of Hansen's disease were diagnosed in 2008. Advocates for patients say Damien's canonization is helping spotlight the ongoing push to eradicate Hansen's disease, whose cure was found in the 1940s. The lessons of Damien and Kalaupapa from more than a century ago are also resonating with people worldwide who have the disease and say its stigma is still so strong that they are often afraid to publicly discuss their illness. Valerie Monson, secretary and coordinator for Ka 'Ohana o Kalaupapa, a nonprofit that advocates for Hansen's disease patients in Kalaupapa and works to preserve the history of the settlement, said many are using Damien's story as a human rights story to help end the stigma associated with Hansen's disease. "Leprosy is one of the few diseases where human rights are stripped of people" because of discrimination, said Monson, who has also written extensively about Kalaupapa. "The world is now looking at (the history of) Kalaupapa for leadership. And people are standing up. They're speaking out I think like never before." ANCIENT AFFLICTION Recorded cases of Hansen's disease date back more than 3,000 years — and its stigma, advocates say, is just as old. Much of the stigma is related to the disfigurement that patients in advanced stages of the disease can experience. There are also plenty of myths about the disease and how it spreads, advocates for patients say. Hansen's disease is difficult to transmit and much of the population is naturally immune. Because of the stigma to patients, some prefer not to use the word "leprosy," though the term is used by the U.S. Centers for Disease Control and Prevention and the World Health Organization. Hansen's disease was first detected in the Islands in the mid-1800s, and was likely brought here by immigrants. Fearing an epidemic, the Hawaiian Kingdom in 1865 established Kalaupapa as a settlement and required those diagnosed with the disease to go there. At one time, nearly 9,000 people were quarantined in Kalaupapa. Hawai'i's quarantine restrictions on Hansen's disease patients were lifted in 1969. Today, 19 patients still live in Kalaupapa by choice. The Rev. Damien de Veuster arrived at the Moloka'i settlement in 1873, at age 33, to minister to the patients when no one else would. During his 16 years on Moloka'i, Damien worked to create a community for patients as a way to give them dignity and a source of pride. He died in 1889 from Hansen's disease. Damien will be elevated to sainthood Oct. 11 in Rome. The Congregation of the Sacred Hearts priest is already known worldwide for his service to those who were isolated in Kalaupapa, and hundreds of Hansen's patients from around the world are expected to attend his canonization. Anwei Law, international coordinator for a Hansen's disease advocacy group called the International Association for Integration, Dignity and Economy Advancement, said people with Hansen's disease from all over the world "have a great reverence" for Father Damien. "Anybody diagnosed with this disease feels this legacy of thousands of years of misunderstanding," she said. In Kalaupapa, she said, "these were people coming together under unimaginable circumstances, but they were good people and they created a community and that community has inspired the world. Just knowing that tells you something about Father Damien." Hansen's disease, which is one of the least contagious infectious diseases, is caused by a slow-growing bacterium that mainly affects the skin, nerves and mucous membranes. In advanced stages, the disease causes disfiguring sores and disability from nerve damage. The disease is cured with a multi-drug antibiotic therapy, mostly on an outpatient basis. FEW NEW U.S. CASES There were about 70 new cases of Hansen's disease nationwide in 2008, compared with about 100 the previous year, according to the CDC. In the Islands, there are about 225 people on the outpatient registry for Hansen's disease. Most have been cured, but are being monitored annually for recurrence. Since 1993, there have been 291 new cases of Hansen's disease diagnosed in Hawai'i. Health Department officials said most people diagnosed with the disease are immigrants from countries where Hansen's disease is more prevalent, including the Federated States of Micronesia, American Samoa and Vietnam. So far this year, there have been 15 new cases, though not all are confirmed. Few of those diagnosed with the disease are from Hawai'i. One Hawai'i resident was diagnosed in 2007, however, and two in 2005. In the mid-1990s, the state Health Department began screening incoming immigrants for Hansen's disease, after a cluster of about 12 people were diagnosed with the disease in Kona. The patients were all migrants, and most came from a single family. Since then, health officials have been working to increase awareness of Hansen's disease with health fairs and screenings at churches and clinics. People can also request to be screened in their homes, because of the stigma involved with the disease. More recently, the Health Department has offered screenings at homeless shelters and housing projects. Ching, of the Hansen's Disease Community Program, said some Hansen's disease cases are caught through immigration screenings. But that system is not fool-proof, since not everyone who comes into the country is required to go through those tests, including arrivals from the Federated States of Micronesia. Helping those people, Ching said, requires continued community outreach efforts and education. The screenings and any treatment for Hansen's disease is free in Hawai'i. Hansen's disease is considered rare in most developed countries and is close to being all but eliminated in some nations where it used to be widely seen. Also, the number of cases worldwide is on the decline. In 2001, some 763,000 people were diagnosed with the disease — about 500,000 more than the total diagnosed last year. Countries with the highest number of cases include Brazil, India and Indonesia. Law, of the IDEA advocacy group, which has branches in 22 countries, said the statistics are still distressing given that Hansen's disease is easily curable. "There are still a lot of people getting this disease around the world today," she said. She added: "Of course, the problem is the stigma. There's a different kind of bar with leprosy. It needs to be raised." Reach Mary Vorsino at mvorsino@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 28, 2009 9:45 p.m. HST 3.4 Magnitude Earthquake Jolts Maui Tonight A 3.4 magnitude earthquake shook Maui tonight at 8:39 p.m., according to the U.S. Geological Survey. The quake centered 15 miles west-south-west of Hana, Pukalani and Makawao areas. Residents reported moderate shaking from the earthquake. Police say no damages were reported the temblor. "We have no reports of injuries or damages," said Mahina Martin, Maui county spokeswoman. "But we did receive calls from Molokai, Kula and Lahaina, even though the earthquake was on the southern slopes of Haleakala." More than 300 people reported to the USGS that they felt the shaker. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 28, 2009 1:05 p.m. HST Look for Gas Prices to Jump Another 12 Cents Starting Wednesday Big Island resident Paul Crawford isn't looking forward to the start of July, knowing he'll probably see red the first time he drives by a gas station. That's because on Wednesday, gasoline prices likely will spike about 12 cents as a general excise tax exemption expires. The coming tax restoration, along with a 30-cent-plus surge in gasoline prices over the past month, is disturbing to Crawford. "I'm very upset about the gas thing," said Crawford, a Mountain View resident who sometimes drives his 2002 Ford Focus 100 miles a day commuting to Hilo and other places. "I'm getting 30 miles a gallon and this is killing me." Barring a dramatic fall in gasoline prices, Hawai'i drivers on Wednes-day will be paying the highest taxes on gasoline of any state. Currently, motorists pay 52 cents a gallon, made up of 33.6 cents in state and county taxes and 18.4 cents in federal taxes, according to the American Petroleum Institute. The overall tax burden likely will jump to 64 or more cents this week, surpassing the 60.9 cents paid by New York drivers and the 45.6-cent average for the entire U.S., according to petroleum institute data from April. The higher taxes will drain an estimated $38 million to $39 million from drivers' pocketbooks while filling up state tax coffers with a like amount, according to Lowell Kalapa, head of the Tax Foundation of Hawaii. He said the tax increase is tied to the expiration of a moratorium on general excise taxes that was enacted to shield consumers from higher prices when ethanol started being blended with gasoline three years ago. In April 2006, the state mandated that at least 85 percent of the gasoline sold here needed to include 10 percent ethanol, or ethyl alcohol. During the past session, lawmakers didn't want to extend the exemption as they eyed a gaping state budget shortfall and scrounged for revenue sources. "Now that we're in this fiscal crisis with a shortfall of the general fund, that money looks pretty good," Kalapa said. The shift to E10, or 10 percent ethanol-laced gasoline, came as the state cozied up to the idea of establishing an ethyl alcohol/renewable fuel source industry here. Besides being blended into gasoline, ethanol also can be used to replace diesel fuel used by some electrical generators in the state. On the surface, the idea presents potential synergies for the state, since ethanol can be made from sugarcane byproducts. Policy makers thought Hawai'i could reduce its economically unhealthy addiction to imported fuel sources while resurrecting a sugar industry trampled by foreign competition. At the same time, pollution would be lowered. One state study projected local ethanol production would result in $104 million of new investments in manufacturing plants, 84 direct jobs and 601 indirect jobs. Besides dangling a ready ethanol market of more than 40 million gallons annually in front of would-be producers here, the state enacted a tax credit for 100 percent of plant construction costs. But three years after the state mandated E10 at the pump, not one ethanol facility has broken ground. Instead of millions of gallons of ethanol being produced here for the local market, refiners are spending millions to bring in ethanol produced elsewhere, including foreign countries. That's given ammunition to critics. "It continues our reliance on foreign fuels," said Henry Curtis, executive director of Life of the Land (Hawai'i), an environmental and community action group. Curtis also questions the amount of water that will be needed to produce ethanol and said the nation's move toward E10 has raised grocery prices as corn and other grains are used to produce ethanol. "We were never enthusiastic fans of ethanol to start with," he said. Moreover, the switch to E10 also raised costs for producing gasoline here, since refiners have had to add storage and other equipment for ethanol. It now appears it will be at least a year, probably longer, before ethanol starts flowing from any Hawai'i-based plants. At one time, at least half a dozen different proposals were being floated to build plants here. But the implosion of ethanol prices, along with closures of plants on the Mainland and a worldwide credit crunch, seemingly have thinned the ranks. Hawaiian Commercial and Sugar Co. on Maui is now sitting on the sidelines after reviewing ethanol potential, though it is keeping a watch on ethanol and other emerging renewable energy options. Another player, Pacific Biofuels, which changed its name from Aloha Ethanol Corp., couldn't be reached for comment and isn't listed in the telephone book. "The situation has been challenging to everyone in the space," said William Maloney, chief executive officer of Pacific West Energy LLC, which is among the ethanol plant frontrunners with a plan for a $134 million facility on Kaua'i. Maloney had a setback last year when Kaua'i sugar producer Gay & Robinson Inc. withdrew from a partnership with Pacific West. But Maloney said he is back in talks with the plantation about using Gay & Robinson's sugar mill in Kaumakani. Pacific West also is bringing in ClearFuels Technology Inc., an 'Aiea company with processes to turn sugarcane waste and other cellulosic biomass materials into ethanol and electricity. But beyond those steps, there is reason to be optimistic, said Maloney, whose experience includes building and operating a 25-million-gallon ethanol facility in Jamaica and helping establish the Jamaican bobsled team commemorated in the movie "Cool Runnings." Maloney said financing of the projects may be easier now since biorefiners are eligible for part of the federal stimulus package and have incentives from a 2008 farm bill. "What we really have at this point is a series of state and federal incentives that really have enhanced the viability of what we've worked on," Maloney said. The same incentives have brightened the outlook for Oahu Ethanol Corp., which wants to build a 15-million-gallon facility at Campbell Industrial Park. "I hope within the next couple of months we will be making a serious announcement," said Daniel KenKnight, Oahu Ethanol president. "We're back in the saddle as far as moving forward with interested parties that want to do the financing." KenKnight said it is possible that his venture will produce ethanol in the next 18 to 24 months. Besides volatility in ethanol market pricing, financiers also want to know where the facilities are getting their feed stock. KenKnight said his operation will initially import molasses until local sugarcane growers start producing crops; Maloney has identified lands that could be used to grow biomass. One firm that might not have as many worries is Hawai'i BioEnergy LLC, which is backed by three of the state's largest landowners: Kamehameha Schools, Grove Farm Company Inc. and Maui Land & Pineapple Co. Its other partners include successful venture capitalist Vinod Khosla. Joel Matsunaga, Hawai'i BioEnergy president, said it was too early to disclose the company's plans, which include producing ethanol and projects to develop jet fuel from algae. In Hilo, motorist Paul Crawford said he's all for the ethanol ventures, having read articles about Brazil's energy independence and the widespread availability of the sugarcane-based fuel at low prices throughout the country. "Their economy is a lot stronger because they're energy-independent," Crawford said. "If that gets us there, I don't care if they put molasses in my car." Reach Greg Wiles at gwiles@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 28, 2009 11:55 a.m. HST Matson Strike Starts and Ends in One Day Matson Navigation Co. yesterday reached a tentative agreement with three unions that represent its captains and crewmembers, ending a short-lived strike in Seattle that threatened to disrupt Hawai'i's critical shipping lifeline. The agreement came late yesterday afternoon in San Francisco, several hours after one of the unions, the American Radio Association, went on strike in Seattle, temporarily stranding a Matson container ship scheduled to carry goods to Honolulu via Oakland, Calif. Terms of the four-year deal were not disclosed. The agreement still must be ratified by members of the ARA, International Organization of Masters, Mates & Pilots, and the Marine Engineers' Beneficial Association, said Matson spokesman Jeff Hull. The three were the only unions involved in the contract talks. If the new contract is accepted, Hawai'i will once again avert a potentially devastating disruption to the flow of offshore goods that make up 80 percent of all products sold here. Matson carries two-thirds of the containerized freight to Hawai'i. Yesterday's brief strike affected the Matson ship SS Maui, which was scheduled to leave Seattle for Oakland yesterday and then continue on to Honolulu, arriving Tuesday night. While only one member of the SS Maui is a member of the ARA, longshoremen represented by the ILWU refused to load the ship in a show of unity. The ship remained docked in Seattle as negotiations between Matson, the ARA and two other unions — the Masters, Mates & Pilots and the Marine Engineers' association — continued through the day. Following the tentative settlement, Hull said longshoremen and crew were expected to return to work to get the Maui on its way to Oakland. Despite the strike, both sides maintained that they were positive an agreement would be reached soon. Charles Khim, attorney for the MM&P, said the ARA's decision to return to the bargaining table yesterday was a strong indication that talks were headed in the right direction. "Even though they are still on strike, that's a very positive development," Khim said before the agreement was reached. "What they've done is very clearly illustrated the gravity of the situation." The unions involved in the talks represent crewmembers, including captains, on Matson Navigation Co.'s trans-Pacific cargo ships. Hull said Matson's ships are typically manned by 21 people represented by six different unions. Matson delivers three shipments per week to Hawai'i. The Matson vessel Manoa arrived in Honolulu from Oakland yesterday with a return trip scheduled for tonight. It is not known whether local longshoremen honored the strike by refusing to load or unload either of the ships. Another Matson ship, the Maunalei, is scheduled to arrive from Los Angeles this afternoon. Unlike in 1999, when the threat of a dock strike in Honolulu triggered a massive run on rice, toilet paper and other bulk items at local stores, Hawai'i consumers seemed to take a wait-and-see approach to yesterday's breaking news. Nofo Lilo, executive manager for Target in Kapolei, said his store experienced "higher-than-normal" sales of toilet paper when news of the impasse was first reported last week but sales returned to their regular levels after a day or so. Managers at Foodland, Times and Longs Drugs stores in Honolulu also reported normal sales of all goods. The tentative agreement also averted what Hawai'i Pacific University travel industry management professor Jerry Agrusa said could have been yet another blow to Hawai'i's ailing tourism industry. "Bad news travels fast, and good news doesn't travel," Agrusa said. "People know that Hawai'i is isolated and that we have to ship in most of our goods. If there was a huge run on toilet paper and that story was picked up nationally and internationally, that image would stick with people. "It's all about perception and people already associate Hawai'i with being expensive. You don't want them thinking that there's not going to be any toilet paper when they check into their $400-a-night hotel room." Reach Michael Tsai at mtsai@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 27, 2009 9:50 a.m. HST South Shore Surf Could Reach 7-10 Feet Today 1. EVENT: The National Weather Service in Honolulu has EXTENDED the HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE now in effect until 6:00 a.m. Sunday. A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: Surf heights along south facing shores will be 7 to 10 feet today and 6 to 9 feet tonight. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 1.3 feet is expected between 6:36 a.m. and 8:48 a.m. this morning. The next high tide of approximately 2.4 feet is expected between 7:06 p.m. and 8:08 p.m. this evening. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 27, 2009 7:45 a.m. HST Union Strike This Morning Disrupts Matson Loading, Sailing One of the unions in contract talks with Matson Navigation Co. will go on strike in Seattle this morning, likely disrupting the loading and sailing schedule of the SS Maui, an attorney for the unions said this morning. The announcement signals a turn for the worse in contract talks between the unions and Matson, which carries two-thirds of the containerized freight to Hawai'i. Charles Khim, attorney for the unions, said the American Radio Association will strike the SS Maui at 8 a.m. today in Seattle. While only one member of that union is assigned to the Maui, other unions are likely to honor the picket line, Khim said. One of those is the ILWU, whose longshoremen would not load the ship if they honor the picket, Khim told The Advertiser. "The net effect is that the ship will not be loaded," Khim said. It was not immediately known if this turn of events would spread to other Matson container ships, including those that serve Hawai'i. In addition to the longshoremen, Khim said an estimated 15 members of two other unions now in talks with Matson the International Organization of Masters, Mates & Pilots and the Marine Engineers Beneficial Association probably would not board the SS Maui. "The whole point is without a full complement of crew, the ship cannot sail under U.S. Coast Guard laws," Khim said. The SS Maui's destination is Oakland, Calif., said Matson spokesman Jeff Hull. Asked to comment on the union's plans, Hull said he did not know exactly what would happen and declined to comment. Khim said he expects Matson to challenge the right of the longshoremen to honor the picket line. A court's ruling on that "is likely to have great weight or precedence on other ports along the West Coast, in Oakland and Los Angeles," he said. Earlier yesterday, talks between Matson Navigation Co. and the three unions that represent its captains and crewmembers in San Francisco were said to be going well, with both sides reporting that progress was being made in an attempt to reach a contract settlement. Hull said some progress had been made, but declined further comment. Hull and Khim said management and the unions are focused on the talks and did not want to negotiate in the media. "But they said they're closer than they were this morning," Khim said last night. Matson's contract with the three unions expired Thursday night, but both sides agreed to resume talks yesterday. Union members voted last week to authorize a strike, a move that is intended to give the workers leverage in their negotiations with the company. Matson, a subsidiary of Alexander & Baldwin Inc., provides a critical service to the Islands. The state's largest trans-Pacific shipping company carries nearly 80 percent of all goods sold here that arrive via container ship. Under the old contract, an MM&P captain earned an average of $220,000, according to Matson. An MM&P chief mate earned about $176,000 a year, according to Matson. Reach Andy Yamaguchi at ayamaguchi@honoluluadvertiser.com and Curtis Lum at culum@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 26, 2009 8:50 p.m. HST High Surf Halts Navy's Reef Recovery Project Off O'ahu At a cost of more than 7 million dollars, the Navy reattached thousands of coral colonies and removed 250 cubic yards of rubble before high surf forced an end to the historic emergency effort to stabilize the reef at the site of the USS Port Royal grounding, off Honolulu International Airport’s Reef Runway. “We were able to cover almost all of the affected area, reattaching almost 5,400 coral colonies,” said Rear Adm. Joseph A. Walsh, deputy commander, U.S. Pacific Fleet. “In addition, we removed enough rubble from the grounding site to prove the value of a new, environmentally friendly excavation process that was used by the contractors.” The Navy waited as long as possible for the surf to subside. It had contractors standing by for 17 days, but unable to work, at a cost of more than $600,000. The Navy reached the point where the weather no longer allowed the project to continue. This is the largest and most expensive reef stabilization project the Navy has ever undertaken. The Navy expressed its thanks to the state of Hawaii, Army Corps of Engineers and the National Oceanic and Atmospheric Administration for their support in obtaining the necessary authorizations and agreements in remarkably quick time. Laura H. Thielen, chairperson of the state Department of Land and Natural Resources said, “DLNR continues to welcome the support and cooperation of the U.S. Navy in achieving our mutual goal of protecting the state's marine resources and minimizing further damage to them. The actions we have agreed to are steps in the continuing response to the impacts of this grounding.” Thielen added, “The state appreciates the Navy’s commitment to timely actions to remove rubble before onset of southerly summer swells which were critical to prevent further damage to the reef habitat. However any remaining rubble may cause additional damage to the reef and the surrounding areas. Once the summer swells have passed, future steps will involve identifying projects that can restore damaged reef and replace the loss of coral reef resources.” Port Royal ran aground about a half-mile off the Reef Runway the night of Feb. 5, 2009. Seven tugboats and two other ships pulled the ship free early on Feb. 9. From that date until the project was terminated, not a day went by when the Navy was not actively involved in remediating the damage caused by the grounding, The Navy has spent more than $7 million to minimize the effect of Port Royal’s grounding on the environment. That effort occurred in four phases:
Phase 1: Navy divers from Mobile Diving and Salvage Unit 1, with
guidance from the state Department of Land and Natural Resources,
performed emergency work, moving 73 rocks, up to 5 feet in diameter,
to deeper water and reattaching dozens of coral colonies. The state of Hawaii on March 30 notified the Navy it intends to file a claim for damage to the reef and asked the Navy to perform emergency work to salvage surviving live coral and stabilize the reef to prevent surf-driven debris from causing additional damage. Port Royal remains under repair at the Pearl Harbor Naval Shipyard. (Report Provided by The State of Hawai'i, Department of Land and Natural Resources) NEWS FLASH - June 26, 2009 3 p.m. HST A&B Voluntarily Assigns 27,000 Maui Acres as 'Important Ag Lands' HONOLULU – Thirty-two years after the passage of a constitutional mandate to preserve and protect agricultural lands in Hawai`i, the State Land Use Commission (LUC) today approved by unanimous vote, a petition submitted by Alexander & Baldwin, Inc. (A&B) to designate more than 27,000 acres in Central and Upcountry Maui as “Important Agricultural Lands” (IAL). In an earlier petition, A&B received approval from the LUC to designate 3,700 acres of IAL on Kaua`i. “This is a historic moment that demonstrates a true investment in agriculture in Hawai`i,” said Sandra Lee Kunimoto, Chairperson of the Hawai`i Department of Agriculture (HDOA). “This designation is the fruit of years of concerted efforts by farmers, landowners, government, legislators and many others to save the best agricultural lands for future generations. A&B should be commended for stepping up and being the first to dedicate lands to IAL and we look forward to additional designations by other landowners and farmers.” The lands designated on Maui are located in Central Maui and extend from Maalaea, Kahului, Paia, Haliimaile to Kihei and are mostly in sugar cane production, with some lands in seed corn and pasture. On Kaua`i, the lands are located in Lawai and Hanapepe and currently in coffee, seed corn, rice, taro and pasture. “There were a lot of people who put in a lot of time over the years to craft an IAL law that would help—not hurt—farmers and agriculture, thus preserving and protecting this important industry in the best way possible, said Dean Okimoto, President of the Hawai`i Farm Bureau Federation and owner of Nalo Farms, Inc. “People often talk about how much they love agriculture, and want to see it stay in Hawai`i, but then do little to support the local farmers. Our laws, our regulations, our consumers need to support agriculture if they want agriculture to remain in Hawai`i. Agriculture is a business—it’s not a lifestyle or a hobby. It has to be viable to survive. “I am proud of A&B for stepping up to the plate,” Okimoto continued. “Not only do we now have a significant infusion of high-quality lands dedicated to agricultural use into the future, but A&B has also helped to ‘de-mystify’ the process for the small farmers. That is what is great about this IAL law—it works for small and large famers alike. And, you know what? The industry needs both to be viable.” The identification and designation of IAL was first proposed at the 1978 Constitutional Convention and subsequently approved by voters in the same year. Several attempts to establish IAL in statute were attempted over the years, but it was only in 2005 that Act 183 was enacted. In 2008, Act 233 was enacted to establish incentives, such as tax credits, loan guarantees and expedited regulatory processing to encourage farmers and landowners to designate lands under IAL. This designation also makes it more difficult to utilize these lands for non-agricultural uses. For more information on IAL, go to the HDOA website at: http://hawaii.gov/hdoa/Info/ial/important-agricultural-lands-update. Click here to view a map of the designated lands on Maui. (Report Provided by the State of Hawai'i, Department of Agriculture) NEWS FLASH - June 26, 2009 8:55 a.m. HST Double-Digit Drop in Tourist Arrivals Continues for Maui The double-digit downward trend in visitor arrivals in Maui County continued in May, according to figures released Thursday by the state Department of Business, Economic Development & Tourism. Visitor arrivals to Maui in May were at 145,790, down 13.9 percent; Molokai was at 3,709, off 36.4 percent; and Lanai was at 5,003, a decline of 25.1 percent - all from May 2008. Overall state visitor numbers were at 516,204 in May, a reduction of 6.9 percent from the same month last year. For year-to-date numbers through May, Maui's head count was at 768,161, down 18.3 percent; Molokai was at 21,447, off 39.7 percent; and Lanai was at 26,063, a drop of 35.5 percent. The statewide visitor count through May was nearly 2.7 million, a reduction of 10.3 percent. Also, statewide visitor spending this year is down 16.4 percent to $4.1 billion. In May, the decline was slightly less, down 15 percent to $754.8 million. That was $133 million less coming into visitor-industry cash registers, with consequent effects on jobs, on hours for people still working and on state revenues. State Tourism Liaison Marsha Wienert attributed a double-digit drop in visits from Japan as swine-flu jitters. This is relatively less important for Maui County, which got only 17,441 visits from all foreign countries in May, but it made a big difference in Waikiki, where international arrivals were down 17.1 percent to 108,749. While Oahu gets six times as many international tourists as Maui County, it doesn't get even twice as many Americans: 216,975 last month vs. 137,358. However, Oahu's fall overall in May was much less, only 6.4 percent to a total of 325,724. The other Neighbor Islands did better than Maui, too. Hawaii was down 10.4 percent to 91,224. Kauai was down 5.9 percent to 82,013. Lengths of stay were up somewhat, so that total visitor-days spent in the islands dropped only 5.4 percent. But discounting made the stays cheaper. Per-person per-day spending was down $20 to $165 compared to May 2008. "The health of Hawaii's visitor industry and our economy, moving forward, will be dependent on increasing visitor spending," Wienert said. "Decreased spending is affecting our activities, restaurants and retail businesses as well as our accommodations." Managing that may be more easily aspired to than achieved. Maui visitor-industry executives long have noted that the discounting they did in reaction to the downturn of the mid-1990s was hard to dispense with. Maui's income fall in May closely tracked its loss in visitor numbers, down 13.7 percent to $181 million. Visitor spending was off 39.1 percent on Molokai to only $1.4 million, and tourists spent 22.5 percent less on Lanai, leaving only $6 million. Kauai saw its visitor spending drop 5.6 percent to $83 million, and Big Island visitors spent 15 percent less, $78.1 million. Oahu's visitor-spending numbers were at odds with its relatively small 6.4 percent drop in tourist-arrival numbers. Visitor spending on Oahu plunged 17 percent in May to $405 million. Harry Eagar can be reached at heagar@mauinews.com. (Report Provided by The Maui News) NEWS FLASH - June 26, 2009 8:44 a.m. HST Six More Among Hawai'i Students in Korea Have Swine Flu Six more members of a Hawai'i study trip to South Korea have confirmed cases of swine flu, and are expected to remain quarantined in a Seoul hospital through the weekend. The five students and a chaperone were found to be carriers of the virus, but are not exhibiting symptoms, said Ruth Limtiaco, a spokeswoman for the Pacific and Asian Affairs Council, which organized the trip. She said the group has been told it will be released from the hospital as early as Monday. With the latest confirmed cases, a total of 11 of the 25 people on the trip have been found to have swine flu. Another chaperone on the trip is staying at a different hospital after coming down with pneumonia. The chaperone is expected to be in the hospital until Wednesday. The Korean consulate in Honolulu said the chaperone also has swine flu. Limtiaco could not confirm that, however. Meanwhile, four other students on the trip already diagnosed with swine flu remain in quarantine at Seoul National Hospital. The four and one other student were sent to the hospital Monday, when thermal imaging cameras at Seoul's Incheon International Airport determined they had temperatures of about 100 degrees. All incoming airline passengers to South Korea are thermally scanned for fevers as part of efforts to stop swine flu. In all, there are 25 people on the trip — 19 Hawai'i high school students, two students who graduated from high school this year and are producing a documentary on the trip, and four chaperones. All of those who have confirmed cases of swine flu are apparently not showing any symptoms. PAAC officials have said the students in quarantine feel fine, and are anxious to start sightseeing. Limtiaco said that yesterday was the first day those on the trip who hadn't been quarantined at hospitals were allowed to leave their Seoul hotel rooms. The 11 students and two chaperones who did not have swine flu had been contained in their rooms over fears they could be carriers of the H1N1 virus. Also yesterday, one student who had been at National Hospital since landing in Seoul was released from quarantine and rejoined the study group, which took a tour yesterday of the demilitarized zone that separates North and South Korea. Limtiaco said two other students quarantined at National Hospital will be released over the weekend, one tomorrow and one on Sunday, and two will be released Monday. Reach Mary Vorsino at mvorsino@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 26, 2009 8:40 a.m. HST Contract Talks Continue to Hold Off Matson Strike Matson and the unions representing ship captains and other crew members have agreed to continue contract talks today in San Francisco, averting for at least a day the threat of a shipping strike as contracts expired last night. Matson's contracts with the International Organization of Masters, Mates & Pilots, the Marine Engineers Beneficial Association and the American Radio Association expired at 9 o'clock last night Hawai'i time. But negotiations were extended into today after both sides made progress in negotiations, said Charles Khim, attorney for the unions. However, Khim said last night, the expiration of the contract means the unions can still go on strike at any time. Union members voted this week to authorize a strike, a move intended to give the workers leverage in their negotiations. Matson spokesman Jeff Hull confirmed last night that contract talks would resume at 7 a.m. today Hawai'i time. "There was some progress in the talks and then they shook hands and agreed to reconvene," Hull said. Matson, a subsidiary of Alexander & Baldwin Inc., is the state's largest trans-Pacific shipping company, carrying about two-thirds of the containerized freight to the Islands. Nearly 80 percent of all goods sold in Hawai'i arrive via container ship. The International Organization of Masters, Mates & Pilots and the Marine Engineers Beneficial Association represent about 100 workers each, while the American Radio Association has slightly fewer members here. The expired contract did not cover Matson's competitors, Horizon Lines and Pasha Transport Lines LLC. Under the previous deal, an MM&P captain earned an average $220,000, according to Matson. An MM&P chief mate earned about $176,000 a year, Matson said. Contracts for the unions were last negotiated in 2001 and reopened in 2006. Since 2003, Matson has acquired four new cargo container ships, said MM&P Vice President Don Marcus. To pay for the ships, Matson asked union members working on the newer ships to take a pay cut to avoid outsourcing the MM&P jobs, Marcus said. Marcus said union members want the pay restored for employees hired to work on the new ships. Advertiser Staff writer Curtis Lum contributed to this report. Reach Rick Daysog at rdaysog@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 25, 2009 5:55 p.m. HST Water Department Declares Drought Watch for Upcountry Maui The Department of Water Supply (DWS), in consultation with the Board of Water Supply, declared a drought watch for Upcountry Maui today. Based on the declaration of drought, the DWS issued a watch, which asks customers to reduce water consumption by 5 percent. Customers with agricultural rates are exempt from the request. The areas included are Haiku, Makawao, Olinda, Haliimaile, Pukalani, Kula, Omaopio/Pulehu, Keokea, Ulupalakua, and Kanaio. Reservoir level decreases indicate that demand is exceeding supply. Current data is available at www.mauiwater.org . As of today, the Kahakapao Reservoirs, which serve the Upper Kula area, are at 33.4 MG. The Kahakapao Reservoirs can hold 100 MG. The 30 MG Waikamoi Reservoirs are empty. The reservoir level at Piiholo is 48.1 MG. Most of the inflow is from pumping up from the Kamole WTF in Haliimaile. The maximum capacity for the Piiholo Reservoir is 50 MG. Wailoa Ditch flow as at 150.6 today. This is down from an average of 94.7 MGD for the past seven days. The DWS will continue to monitor the weather forecast and source water flows. Should the situation continue to worsen, a drought warning may be issued. A drought warning involves a mandatory reduction of 10 percent in water consumption. The DWS would also like to remind consumers that the Central water system is also in a drought. Customers in Kahului, Wailuku, Paia, and Kihei were asked to cut back water usage by 10 percent on August 23, 2007. To help conserve water, consumers should check in and around homes for leaks, and install water saving devices where possible. Flow fixtures are available at no charge from the DWS. The free fixtures can be picked up at the department’s planning division office located at the Hokama Building at 59 Kanoa Street in Wailuku. The division's office phone number is 244-8550. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 25, 2009 3:35 p.m. HST South Shore Advisory Predicts Larger Waves Tomorrow 1. EVENTS: The National Weather Service in Honolulu has continued the HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE in effect until 6:00 p.m. Saturday.A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: Surf along south facing shores will be 5 to 8 feet through this afternoon, then rise to 6 to 9 feet Friday. The surf will hold with similar size through Saturday afternoon. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 2.9 feet is expected between 5:55 p.m. and 6:41 p.m. this evening. The next high tide of approximately 1.3 feet is expected between 5:19 a.m. and 7:29 a.m. tomorrow morning. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) |
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NEWS FLASH - June 25, 2009 6:55 a.m. HST Ilocos Norte Governor to Visit Maui Tomorrow WAILUKU – The Maui County Council will be welcoming the Honorable Michael Marcos Keon, Governor of Ilocos Norte, Republic of the Philippines, during his first visit as Governor to the County of Maui, on Friday at 10 a.m. at the Council Chamber, 200 South High Street, 8th Floor, Wailuku. Ilocos Norte is the province in the Philippines where the largest number of Filipinos in Hawaii have family ties. Bryan Andaya, former president of the United Filipino Council of Hawaii, estimates that out of the 240,000 Filipinos in Hawaii, between 150,000 and 175,000 are Ilocano. Council Chair Danny A. Mateo, along with other Council members, will meet with Governor Keon and his delegation of 26 elected officials. In addition to the Governor, the visiting delegation includes 12 Mayors representing the 23 municipalities within Ilocos Norte province, 2 Vice-Mayors, and 8 Board Members. Included in the extensive list of visiting dignitaries is Edito Balintona, Mayor of Maui’s Sister City, Sarrat, the birthplace of former Philippine President Ferdinand Marcos. Governor Keon said he is here for a tour of Oahu and Maui and to “familiarize myself with the Ilocanos community” in Hawaii. In addition to meeting with the Council, Governor Keon will be attending an Aloha Reception at the Paina Building at Maui Community College at 6 p.m. Both events are open to the public. For more information on the Aloha Reception, please contact the President of the Maui Filipino Community Council, Herman Andaya, at 357-7939. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 25, 2009 6:05 a.m. HST Governor Signs Executive Order on Furloughs HONOLULU – Governor Linda Lingle today issued an executive order to furlough, effective July 1, 2009, all state employees in the State Executive Branch under her jurisdiction (not including, for example Department of Education and University of Hawai‘i employees) to help close the unprecedented $2.7 billion revenue shortfall projected between now and June 30, 2011. The executive order, issued under the Governor’s executive authority (including Articles V and VII of the Constitution of the State of Hawai‘i, the provisions of Chapters 37, 89, and 89C, Hawai‘i Revised Statutes and all other applicable authority), details which state employees are affected by the furlough, the number of furlough days/hours, the effective time period of the furlough, the responsibility of individual departments for developing and implementing furlough plans for their departments, and other conditions and requirements relating to how and when furlough days/hours may be taken by employees. “This is not something we want to do, but something we have to do to balance the state budget and address the unprecedented fiscal emergency we are in due to the projected $2.7 billion revenue shortfall,” Governor Lingle said. “I appreciate the understanding of the State employees who will be affected by the furlough and admire the cooperation they have demonstrated in helping to ensure that state services will continue to be provided when the furlough plan begins on July 1.” The executive order refers to the furlough plan announced on June 18, 2009, which describes furlough schedules of specific departments and agencies, and includes furlough calendars. The statewide furlough plan and restrictions on the budget of those departments like the Department of Education over whom the Governor does not have furlough authority will save an estimated $688 million over the next two years, 25 percent of the budget gap the state needs to close, and will avoid having to lay off many state employees at this time. Furloughs will allow the state to continue to provide public services, and will allow employees to maintain their benefits and avoid recruitment and training costs for new employees when the economy recovers. Since last summer, the Governor has taken a series of steps to close nearly $2 billion of the projected revenue gap, including ordering spending restrictions of 8 percent on all state agencies; eliminating duplicate and inefficient programs; restructuring debt; imposing a freeze on new hires, out-of-state travel and the purchase of new equipment; using special funds and maximizing federal stimulus funds. On May 28, the Council on Revenues revised its forecast by an additional $730 million shortfall for the remainder of fiscal year 2009 which ends on June 30, 2009, and the two-year budget that begins July 1, 2009 and ends June 30, 2011, requiring the Administration to identify further savings. Because employee salaries and fringe benefits account for roughly 70 percent of the State’s operating budget, it is now necessary to impose furloughs on state workers to help close the remaining gap in the State’s budget. The detailed furlough plan can be found on the Governor’s Web site (www.hawaii.gov/gov). In addition, each department will post modified hours of operations for their respective divisions and attached agencies on their web sites. (Report Provided by the Office of Governor Linda Lingle) NEWS FLASH - June 24, 2009 3:05 p.m. HST 205 News Swine Flu Cases Bring State Total to 503 As of today, the state Department of Health has confirmed 205 new cases of novel H1N1 Influenza A, or swine flu. This brings the total confirmed cases to 503. These numbers are subject to change as investigation of cases is still taking place. After today, the Department of Health's Web site will no longer be providing updates on case counts. For that information, please check the national Centers for Disease Control Web site at: www.cdc.gov/h1n1flu/update.htm. (Report Provided by the State of Hawai'i, Department of Health) NEWS FLASH - June 24, 2009 8:25 a.m. HST Spencer Eyes Abandoned Ma'alaea Site for Affordable Project A subdivision plan in south-central Maui abandoned by a California partnership is being recast as an affordable housing community by a longtime Maui housing developer. Jesse Spencer of Wailuku-based Spencer Homes Inc. is proposing to build 1,100 single-family homes, for sale mostly at prices affordable to residents with more-or-less moderate incomes. The new plan still faces what Spencer said is continued opposition from some area condominium owners and the county Planning Department — both of which opposed the former development plan in favor of keeping the site, which is zoned for agriculture, as open space. But the developer said he believes the need for affordable housing and construction jobs will garner enough support for the estimated $400 million project to proceed. "I've listened to all the comments," he said. "I'm trying to satisfy all the naysayers." Spencer's project, called Ohana Kai Village, is planned for 257 acres of former sugarcane fields south of Wailuku near the Ma'alaea Small Boat Harbor. Much of the property is vacant, though some is used for cattle grazing. A previous developer affiliated with two California homebuilders and known as Ma'alaea Properties LLC proposed developing the site with 949 homes, including 380 affordable units under the county's 40 percent affordable housing requirement, plus a 15-acre park and 37 acres of open space. But the Maui Planning Department, supported by then-Mayor Alan Arakawa, strongly opposed the plan because of impact on county infrastructure, including schools. The Ma'alaea Community Association objected to the project primarily over traffic concerns and increased use of the shoreline and community park. PREVIOUS OWNER Ma'alaea Properties bought the parcel in 2004 from C. Brewer & Co. affiliate Wailuku Agribusiness Co. Inc. for $6.6 million, petitioned the state Land Use Commission to reclassify the land for urban use in 2006, and in late 2007 filed a draft environmental impact statement. Three wells for water also were drilled, but the development effort was abandoned in the face of the opposition and a slumping real estate market. Spencer bought the property for $10.5 million in October, according to property records, and recently filed an environmental impact statement preparation notice with the state. Spencer said Maui planning director Jeff Hunt supports keeping the site undeveloped. Hunt and Maui Mayor Charmaine Tavares could not be reached for comment yesterday. Ohana Kai conceptually is planned to be a workforce housing community with 3- and 4-bedroom homes, a commercial complex, a school site, parks and open space. According to the environmental notice, Ohana Kai will reserve 660 homes, 60 percent of the project, for residents earning between 81 percent and 140 percent of Maui's annual median income. These homes, which if sold today would be priced roughly from $260,000 to $500,000 assuming about a 5 percent interest rate on a 30-year mortgage, will be sold by lottery. NOT YET APPROVED Another 440 homes would be available at prices affordable to residents earning 141 percent to 160 percent of Maui's annual median income, or $113,100 to $120,640. "The product choices being proposed will provide healthy competition and allow for a more balanced housing market," Spencer said in the environmental notice. The median sale price of existing single-family homes on Maui this year through May is $515,000, meaning half the homes sold for more and half for less. That is down from $585,000 in the same period last year. To proceed, Spencer will need approvals from the Land Use Commission and the County Council. Spencer, who is 78 and has built 1,400 homes on Maui over several decades, believes that most members of the County Council will support Ohana Kai. Though the project site is classified as "prime" agricultural land by the state and zoned for agricultural use by the county, the Kihei-Makena Community Plan designated the property for residential growth in 1998. Spencer estimated that development of Ohana Kai would employ 250 people for seven years. He also said that based on his last affordable housing project, Waikapu Gardens, demand remains high for moderate-priced housing on the Valley Isle. Waikapu Gardens in 2004 held a lottery that attracted 3,576 entrants for 214 units priced between $225,000 and $275,000 in the 412-home subdivision. Spencer expects that 2,000 to 3,000 people from the Waikapu Gardens lottery are likely prospective buyers of Ohana Kai. "I really feel we will sell out," he said. Reach Andrew Gomes at agomes@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 24, 2009 8:15 a.m. HST Council Votes to Ban Alcohol from Honokowai Park WAILUKU — The Maui County Council yesterday voted unanimously in favor of a bill that would ban alcohol from Honokowai Beach Park in West Maui. The vote was the first reading of a bill that Councilmember Jo Anne Johnson said she authored at the behest of Honokowai neighborhood families. She said the park, which has popular playground equipment, has been plagued by a small but vocal group of heavy drinkers who have been known to vandalize the park and harass some park visitors. "It's a family park. It's not a beach park," Johnson said. "This is something that's long overdue, and I think we're going to start looking at other parks, too, especially if they are used by children primarily." The bill is expected to pass second and final reading when the council gets together in two weeks for its next regular meeting, Johnson said. The measure then would be forwarded to Mayor Charmaine Tavares for final action. Johnson said her Economic Development, Agriculture and Recreation Committee will next examine Charley Young Beach Park in Kihei for a potential alcohol ban. Drinking is prohibited at state parks without a permit, but all-out alcohol bans are only in place at a handful of Maui County parks, such as Keopuolani Park in Central Maui, Johnson said. Councilmember Mike Victorino said that, in general, he supports the alcohol bans, but he said they should only be done on a case-by-case basis after careful examination of each situation. (Report Provided by The Maui News) NEWS FLASH - June 24, 2009 8:10 a.m. HST Superferry Seeks to Abandon Alakai, Huakai Hawaii Superferry has asked to abandon its two high-speed catamarans to creditors because of the significant cost of maintaining the vessels as the company moves through bankruptcy. Superferry has told the U.S. Bankruptcy Court in Delaware that it cannot find financing to maintain operations while searching for charter opportunities. The company has no current source of revenue yet has to cover the cost of insurance, maintenance, security, storage and a skeleton crew for the catamarans at an Alabama shipyard owned by J.F. Lehman & Co., the project's main private investor. The federal Maritime Administration, which guaranteed construction loans for the catamarans; Austal USA, the Alabama shipbuilder that built the vessels; and the state of Hawaii, which provided harbor improvements, are secured creditors with mortgage rights. The Maritime Administration, which holds first priority on the mortgages and is owed $135.7 million, would likely take possession of the catamarans for charter if the bankruptcy court approves Superferry's request. Austal USA, which holds the second mortgage, announced last week that it is writing off the $22.9 million it is owed for construction loans. A hearing on Superferry's request is set for July 1. The state of Hawaii, meanwhile, has asked the bankruptcy court to move the proceedings from Delaware to Hawaii. An attorney for the state argues that a change of venue is necessary to protect the state's strong interest in the project — $40 million worth of harbor improvements — and for the justice and convenience of many local creditors. Superferry is a Hawaii company but its parent, HSF Holding Inc., is a Delaware corporation. "At their essence, these debtors (Superferry) are nothing more than the product of a public-private partnership to develop and operate a transit system solely within Hawaii," the state's attorney wrote. "Just as one would expect a regional transit authority to file its bankruptcy case in its own region, the same is expected of these cases." The state's attorney cited the six-hour time difference and the 4,900 miles that separate Hawaii from Delaware. Nearly two-thirds of the Superferry's 30 largest unsecured creditors are also in Hawaii, the attorney argued, and have an interest in participating in the case. STATE'S CASE A significant issue in the bankruptcy case is Superferry's contention that it does not have to make payments toward the harbor improvements because an operating agreement with the state is void. The state Department of Transportation maintains that the operating agreement is still in effect. The harbor improvements, which were financed by state bonds, are mostly vehicle ramps and barges designed specifically for the project. If Superferry does not pay the $40 million, then the state and other harbor users such as Matson Navigation Co. and Young Brothers would likely have to retire the debt over time. Hawaiian Telcom Communications, the state's largest telephone company, initially filed for bankruptcy in Delaware last December but asked for and received a change of venue to Hawaii because of local concerns. SHIPS DRAINING CASH Superferry ceased operations in Hawaii in March after the state Supreme Court ruled that a state law that allowed Superferry to operate during an environmental review was unconstitutional special legislation written solely for the company. The court had ruled in August 2007 that the Lingle administration was in error when it exempted the project from environmental review. Superferry filed for bankruptcy protection in May. In its motion to abandon the two catamarans, the Alakai and the Huakai, Superferry argues that the vessels are now a burden. "It is unclear if there is any equity in the vessels given current market conditions and the debtors do not have sufficient liquidity at this time to maintain the vessels while waiting for market conditions to improve," attorneys for Superferry said. A source close to Superferry said the two catamarans remain in excellent condition. The objective, the source said, is to charter the vessels for commercial or military use. If the company's request is approved, however, it would be up to the bankruptcy court, and likely the Maritime Administration, to determine the future of the catamarans. Reach Derrick DePledge at ddepledge@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 24, 2009 7:50 a.m. HST High Surf Forecast for South Shores Through Saturday 1. EVENT: The National Weather Service in Honolulu has ISSUED a HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE in effect until 6:00 p.m. Saturday. A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: Surf along south facing shores will be 5 to 8 feet through Thursday night. Surf may rise further on Friday. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 3.1 feet is expected between 5:15 p.m. and 5:57 p.m. this evening. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 23, 2009 9:40 p.m. HST Moloka'i Water Pump Replacement Puts Kaunakakai, Kalae in Tough Spot KAUNAKAKAI - The County of Maui Department of Water Supply (DWS) is urging all customers in Kaunakakai and Kalae, Molokai to use water for health and safety purposes only while the Department of Water Supply replaces the pump and motor at the Kualapuu Well, which is the County’s only water source for the area. Water levels at the Kaunakakai tank have fallen rapidly since the Kualapuu Well was shut down on Monday, June 22, 2009 for the repair work. Customers may experience low water pressure or no water if storage levels continue to drop. The State Department of Hawaiian Home Lands is supplying water to the County system while the well is out of service but cannot keep up with the additional demand. The
pump replacement project is scheduled for June 22 through July
10, 2009. DWS personnel are working to find ways to supplement
the water supply until tank levels are stabilized. Customers
were originally asked to cut back water usage by a targeted
amount of 25 percent; however, this may be revised if demand
continues to exceed supply. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 23, 2009 3:40 p.m. HST Hawai'i Students Quarantined in South Korea Amid Swine Flu Fears Twenty high school students from Hawaii have been quarantined in South Korea after five of the students were found to have elevated temperatures when their flight landed today at Seoul Inchon Airport. Korea performs temperature scans on incoming airline passengers as a precaution to guard against the spread of the H1N1 virus, also known as swine flu. The students are participants in a study tour organized by the Pacific and Asian Affairs Council. The group left on the tour yesterday and is scheduled to return July 5. The five affected students all had temperatures in the range of 100 degrees, detected at the Seoul airport where all passengers are screened via thermal scans, according to an e-mailed statement from the PAAC in response to questions from the Advertiser The five students who showed elevated temperatures are being quarantined at the National Hospital in Seoul while they await the results of blood tests. The remaining 15 students and their four chaperons are quarantined in their Seoul hotel until the test results come in, according to the statement. All the students, who are public school students selected for the free study program organized annually by the PAAC, have been able to speak with their parents here in Hawaii. It is anticipated that the students will be able to resume their study tour after the blood tests are received, as they were certified to travel by their physicians prior to departure, according to the statement. Each year, 20 public school students receive full scholarships to experience two weeks in Asia organized by the PAAC. Reach David Waite at dwaite@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 23, 2009 3:35 p.m. HST North Korea Missile Test Appears to Not Aim Toward Hawai'i WASHINGTON — An impending missile test threatened by North Korea is expected to launch short- to medium-range missiles rather than a long-range missile fired in the direction of Hawaii, according to U.S. intelligence reports. North Korea issued a warning over the weekend to mariners of upcoming live-fire missile exercises. The exclusion zone cited in the notice covers a stretch in the Sea of Japan, 279 miles by 68.2 miles, off the coast of Wonsan, North Korea. The warning lasts from June 25 to July 10, from approximately 8 a.m. to 8 p.m. local time, a U.S. counterproliferation official said. U.S. defense and counterproliferation officials say intelligence suggests that North Korea is likely to fire short- and medium-range missiles, based on the splashdown zone referenced in the notice and other activities that are consistent with such launches. The officials spoke on condition of anonymity to discuss sensitive intelligence. The Yomiuri Shimbun reported last week that North Korea was expected to test-fire a long-range ballistic missile by sending it in the direction of Hawaii. In reaction, Defense Secretary Robert Gates ordered deployment of a ground-based mobile missile intercept system and a sea-based radar system to Hawaii. Together they could shoot down an incoming missile in midair. Experts say North Korea has not yet built a ballistic missile that can reach Hawaii, which is about 4,500 miles from North Korea. U.S. defense officials told Congress earlier this month they think North Korea is still three to five years away from being able to hit the West coast of the United States with a long-range Taepodong-2 missile. U.S. officials said they have not seen preparations for the launch of a Taeopodong-2 missile similar to that launched on April 5. It took North Korea about 12 days to stack and fuel that missile, which it claimed was a space-launch vehicle intended to put a satellite into orbit. It failed sometime in its second or third stages, splashing down into the ocean after traveling about 2,000 miles. Pyongyang has also not mastered mounting a nuclear bomb on a long-range missile despite recently conducting its second underground nuclear test. The yield was estimated by U.S. intelligence as a "few" kilotons. The communist regime has vowed to bolster its nuclear arsenal and threatened war to protest U.N. sanctions in the wake of its second nuclear test. It conducted its first nuclear test in October 2006, and there are suspicions it is preparing for a third. (Report Provided by The Associated Press) NEWS FLASH - June 23, 2009 8:35 a.m. HST State Wants Superferry Bankruptcy Case Moved Here The liquidation of Hawaii Superferry Inc., a former operator of high-speed ferry service between the islands of Oahu and Maui, should be transferred to Hawaii from Delaware, where the company filed under Chapter 11 on May 30, according to a so-called change-of-venue motion filed Saturday by the state of Hawaii. The state said that Hawaii Superferry has no connection with Delaware aside from being incorporated there. All of the operations were in Hawaii, the state said. The hearing on the motion to move the case will be held July 1. Having the case nearly 5,000 thousand miles and six time zones away makes it difficult to protect the state's interest in regulating the use of Hawaii's waters and ports, the state's papers say. Honolulu-based Hawaii Superferry was shut down in March by a decision from the Hawaii Supreme Court. The company was operating one ferry since August 2007. The second was delivered in April. The Chapter 11 petition said that assets and debt both exceed $100 million. Debt includes $136 million in first-mortgage bonds secured by the ferries. There is another $23 million in second-priority ship mortgages owing to shipbuilder Austal Ships. Guggenheim Fund LLC is owed $51.7 million on notes where there is a $7.5 million fund to pay interest. The last major Hawaii-based company to file in Delaware was Hawaiian Telcom Communications Inc. It filed for Chapter 11 reorganization on Dec. 1 in Delaware and moved the case to Hawaii under pressure from creditors. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 23, 2009 7:45 a.m. HST State BOE Postpones Budget Reduction Plan Again Faced with the largest cuts ever to Hawaii's public schools, state Board of Education members yesterday again delayed a decision on a budget reduction plan, this time saying they are concerned the state's fiscal situation may change between now and the time the governor signs the budget bill in July. "The governor still hasn't signed the state budget bill. Because of that, any decisions that we take today may have to be altered," board Chairman Garrett Toguchi said at yesterday's meeting of the board's Budget and Fiscal Accountability Committee. State Budget Director Georgina Kawamura, however, told the board members that Gov. Linda Lingle intends to sign the budget bill by July 1 and suggested they use the information that is available to them now to work out their budget plans. "Again, we are proceeding ... as if we have a budget in place. We're working with each department as far as what their allotments will be and to make sure they are operating July 1," Kawamura said. Also yesterday, Toguchi said the board sent a letter to state Senate President Colleen Hanabusa and House Speaker Calvin Say urging them to convene a special session of the Legislature to consider use of the hurricane relief fund or an increase in the general excise tax to plug the state budget deficit. Before the board is a proposal to cut $226 million from next year's $1.8 billion public education budget through a variety of means: a 5 percent across-the-board cut in school-level programs, a reduction in part-time workers and potential furloughs of teachers and other school employees. For the second time in two weeks, the board postponed a vote, saying it does not have enough information to make a decision. The board will reconvene in a special meeting on July 1. Board members told Kawamura they are concerned the governor has yet to sign the state budget . "Schools are going to be opening at the ending of July and they need money. ... We need to have this thing rolling along so that our schools can do what they need to do," board member Maggie Cox said. Kawamura assured members that Lingle's signing of the state budget should not be a concern. QUARTERLY INSTALLMENTS Toguchi also said board members are concerned about a July 19 memo from Lingle that alerted all state departments that she will be releasing money incrementally on a quarterly basis — rather than in an annual lump sum — because the state's financial situation is in a constant state of change. "We typically get an annual allotment from (the state). And that allows us to determine what parts of our budget we need to restrict and what parts can be allowed to be spent," Toguchi said. Toguchi said the board will seek a waiver to the quarterly allotments, because schools can't operate not knowing how much money they will have from quarter to quarter. "It's going to make us cash-short before the end of the first quarter, potentially having to close schools for about five or six days," he said. But, given the state's budget situation, Kawamura told board members it's unclear whether the waiver will be granted. "We're in a very difficult position to give you an annual allotment," she said. FURLOUGHS A FACTOR State officials are in discussions with labor unions, including the Hawai'i State Teachers Association, about furloughs, another reason board members said they could not make a decision on the budget yesterday. The HSTA was among two other labor unions to file complaints in Circuit Court last week. The union asked the court for an injunction stopping Lingle from imposing spending restrictions equivalent to furloughs at the state Department of Education, or roughly $127 million a year for the next two years. Because the issue is in negotiations, Toguchi said he was unwilling to discuss exactly how many days could potentially be cut from the school year because of furloughs. To cover the entire $127 million restriction, Toguchi said 12-month employees would need to be furloughed for 36 days or 10-month employees would need to be furloughed for 30 days. "It's something we want to avoid as much as possible. Our main goal is to preserve as many school instruction days as much as possible," he said. Reach Loren Moreno at lmoreno@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 22, 2009 9:55 p.m. HST Maui Bus Passes Drop in Price by $10 WAILUKU - The County of Maui Department of Transportation announced today that changes to the Maui Bus monthly pass system, effective July 1, 2009, will reduce the cost of general All Route monthly bus passes from $45.00 per month to $35.00 per month; reduce the cost of student and senior (55 years and older) All Route monthly bus passes from $40.00 per month to $30.00 per month; and eliminate Single Route and Commuter monthly bus passes. The All Route monthly bus pass is valid for unlimited rides on all Maui Bus routes including the commuter service. “The changes are intended to streamline the bus pass system, making Maui Bus even more efficient to meet the needs of the County’s growing ridership,” said Don Medeiros, County of Maui Director of Transportation. Also effective July 1, 2009, monthly bus passes will be valid for a calendar month, from the first to the last day of the month. Monthly bus passes will be available for purchase from the 25th of the previous month, and remain on sale until the 10th of each month. Rides on all Wailuku and Kahului Loops and the Lahaina Villager route are free; single ride fares of $1 are available on Maui Bus’ seven other routes: Kihei Villager, Kihei Islander, Upcountry Islander, Haiku Islander, Lahaina Islander, Kaanapali Islander and Napili Islander. Beginning this Thursday, June 25, the new July 2009 bus passes will be available for purchase: -From Maui Bus drivers; - At the Maui County Business Resource Center, in the Maui Mall (mall hours); - At the Wharf Cinema Center Management Office (weekdays 9:00 a.m. to 4:00 p.m., excluding holidays). Maui Bus is a service provided by the County of Maui and operated by Roberts Hawaii. For more information, the public should contact Roberts Hawaii at 871-4838, or the County of Maui Department of Transportation at 270-7511. General bus schedule information can be found on all County buses, and is available online at www.mauicounty.gov/bus. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 22, 2009 8:20 p.m. HST Ma'alaea Fire Damages Exceed Half-Million Dollars MAALAEA - Damages to two homes caused by a brush fire yesterday were estimated at $500,000 total to the two structures and $100,000 in damage to contents including a vehicle, two motorcycles and furnishings. The fire burned approximately 80 acres in Maalaea since it began shortly after 2:00 p.m. yesterday. At 6:30 this morning the fire was declared under control. A dozen fire fighters were on the scene today dealing with smoldering kiawe wood and wind gusts of up to 40 mph. Fire department personnel will conduct checks of the area throughout the evening. No injuries are reported and the cause of the fire remains under investigation. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 22, 2009 3:20 p.m. HST Utility Pole Fire Closes Pulehu Road in Central Maui (Editor's Note: As of 8:30 p.m., Maui Police are allowing traffic in both directions along Pulehu Road while Maui Electric crews complete repairs on the utility pole.) Maui Police report that Pulehu Road is closed between Hansen Road and Fire Break Road due to a fire. At 3:01 p.m., Police report that autility pole is in flames, and wires are down across Pulehu Road. Downhill traffic on Pulehu Road is being re-routed onto Fire Break Road. No word on the cause of the fire, nor of any injuries or damage (besides the pole). Police have not estimated a time when the road will reopen. (Information Provided by the Maui County Police Department) NEWS FLASH - June 22, 2009 12:20 p.m. HST Daily Debris Cleanup To Partially Close Hana Highway at Wailuaiki KAHULUI
- The state Department of Transportation advises Maui motorists
of intermittent traffic stoppages on the Hana Highway (Route
360) in both directions between Mile Post 19.18 (near the Wailua
Lookout) and Mile Post 21.0 on Monday, June 22, through Friday,
June 26, from 7:00 a.m. to 4:00 p.m., daily, for rock scaling Motorists are advised to use caution while driving through the work area and to allow for extra travel time. For more information, please call the State Department of Transportation Highways Division at (808) 873-3535. Roadwork is weather-permitting. (Report Provided by the State of Hawai'i, Department of Transportation) NEWS FLASH - June 22, 2009 7:05 a.m. HST Ma'alaea Fire 100 Percent Contained MAALAEA - A fire that was reported at 2:15 pm yesterday has burned an estimated 80 acres and was reported to be 100% contained shortly before 5:30 this morning. The fire began on the mauka side of Honoapiilani Highway in Maalaea. High wind conditions with wind gusts reportedly around 45 mph caused the fire to cross the two-lane highway and reach the makai side of the highway reaching several homes located on Maalaea Road. One home engulfed in flames was destroyed. A second home was partially burned. Damage cost estimates are expected later today by fire inspection personnel. 3 homes were occupied at the time and residents were evacuated. Occupants in 2 other homes in the small neighborhood were not home at the time. Firefighters worked to keep the fire from advancing further into the neighborhood while battling the fire on both the mauka and makai side of the highway. Dispatched to the incident yesterday were 35 firefighters who were aided by 2 helicopters conducting water drops. Water tankers and heavy equipment support were provided by Goodfellow Brothers and the County’s Department of Public Works. Crews worked through the night to maintain the perimeter and hot spots. This morning a little over a dozen firefighters remain on the scene. The
Honoapiilani Highway was closed by Maui Police at 2:30 pm from
the Kihei junction to milepost 11 near Ukumehame in West Maui.
Motorists were not allowed to travel the highway over the pali
into or out of West Maui as firefighters battled the fire. Traffic
through Kahakuloa from Kaanapali was permitted in the evening.
Vehicle traffic from the Waihee-side of Kahakuloa was restricted
to residents of the Kahakuloa area only. One lane of Honoapiilani
Highway was opened at 9:45 pm and police began alternating traffic
into and out of West Maui. Maui police opened both lanes to
vehicle traffic at 11:25 pm. No injuries are reported. The cause of the fire is under investigation by fire officials. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 21, 2009 9:25 a.m. HST Maui County Athletes, Schools Place Among State's Best Twenty-one student-athletes and 10 high schools were honored for achievements in athletics, academics, sportsmanship and community service at yesterday's HMSA Kaimana Awards & Scholarship Program luncheon at the Hilton Waikiki Prince Kuhio. Three of the athletes — Moloka'i's Colten Manley, Punahou's Farrah Madanay and Waimea's Benji Allan Sevilleja Baclig — received distinguished scholarship awards of $3,000 each. Eighteen others each received $2,000 scholarship awards: •Caralyn Broyles, Waimea; •Vinson Diep, Kalani; •Morganna Hayes, Mid-Pacific; •Amy Hunt, Mililani; •Hannah Ishida, Punahou; •Shyanne Lecker-Agnew, Hana; •Pengyu Li, Kaimuki; •Daniel Keo Okubo, Waiakea; •Chelsy Okuma, Kaiser; •Jackie Owens, Lahainaluna; •Lalo Respicio, Campbell; •Hannah Noelle Ross, Mid-Pacific; •Aubree Shipman, Kalaheo; •Jake Shiraki, Honoka'a; •Stefanie Sueda, Hawai'i Baptist; •Malia Tanaka, Konawaena; •Ryan Yamada, 'Iolani; •Elisabeth S. Young, Kaua'i. The 10 schools receiving $1,500 each for achieving the highest program scores in their leagues and divisions are: •Kea'au (Division I) and Parker (DII) from the Big Island Interscholastic Federation; •Kamehameha (DI) and Hawai'i Baptist (DII) from the Interscholastic League of Honolulu; •Moanalua (Red Division), Radford (Blue) and Anuenue (White) from the O'ahu Interscholastic Association; •Island School from the Kaua'i Interscholastic Federation; •King Kekaulike (DI) and Kamehameha-Maui (DII) from the Maui Interscholastic League. University of Hawai'i assistant football coach Rich Miano was the keynote speaker at the luncheon. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 21, 2009 9:15 a.m. HST Taxpayers Footing Bill For State Solar Power Use - At Twice The Price Taxpayers are paying what could amount to a multimillion-dollar premium for power from recently installed solar panels on the roofs of state-owned buildings, including several airports. The rate the state pays for solar power is not only more than what it would pay for traditional electricity, it's nearly twice what private consumers pay for solar energy in today's market. In January 2008, the state launched its Photovoltaic Energy Systems Project, aimed at putting solar power generators on state roofs within two years to produce as much as 34 megawatts of electricity, enough to meet the need of thousands of homes. The intent was to move Hawai'i off its dependency on imported oil and save money. While the solar panels may prove cost-effective over the life of the system, the state is paying a premium in the early years that might have been avoided, solar industry officials said. The state negotiated a price when the cost of power was near its recent peak and locked it in for 20 years. It also failed to get a large number of competitive bids, which could have lowered the price, industry officials said. "The state is definitely paying too much for electricity at least on the airport projects," said Sean Mullen, president of solar power integrator Suntech Hawaii. "It's twice as high as it should be." The state signed 20-year power purchase agreements with Hoku Scientific Inc. last fall. Under the agreements, the state is paying 38 cents a kilowatt hour on Maui and Kaua'i for solar power. In Hilo the rate is 33 cents a kilowatt hour, and in Kona the rate is 32 cents a kilowatt hour. Hawaiian Electric Co.'s rates for medium and large customers on Maui this month vary from 16 cents to 21 cents a kilowatt hour. Additionally, two local solar power companies surveyed by The Advertiser said comparable power purchase agreements today sell electricity for 20 cents to 22.5 cents a kilowatt hour. State Transportation Department Director Brennon Morioka acknowledged that the state's purchase power agreement prices were fixed at a time when prices were high. However, he said, the state could still benefit over the long term. "When we were doing the (power purchase agreements), the price of oil was fluctuating so much. and it was still going up, and no one really knew when it was going to end," he said. "We think our rates are very competitive. We believe electricity rates ... will only be going up anyway, so in the long term, we are going to be saving money. Maybe not as much as some others that entered into the (power purchase agreements) at the right time, but it is just a matter of timing." Mullen and others also blamed a lack of competition for the relatively high solar power rates paid by the state. PLAN HITS A SNAG The state began the solar project in January 2008, hoping to build 34 megawatts of generating capacity. The plan was slowed by a bid protest against contract winner SunPower Systems Corp. Later, SunPower backed away for financial reasons from an agreement to install more than 12 megawatts of capacity. After that loss, the state applied for and received an exemption from procurement laws and then offered the contract to Hoku Scientific, which had been a prior bidder. Under that deal, Hoku is supplying less than 1 megawatt of capacity on state facilities on Maui, the Big Island and Kaua'i. Jim Whitcomb, owner of Haleakala Solar in Pu'unene, said he balked at bidding on the initial, large 12-megawatt contract won by SunPower. However, he said, he would have bid on the much smaller project awarded to Hoku. "I never even heard about it," said Whitcomb, who said he's been in the solar business in Hawai'i since 1977. "I wish I had a chance to bid on it. "Really, they would have gotten a better deal if they had opened it up to competition. The competition is fierce out there now, and it was fierce back then." Suntech's Mullen agreed that the state could have gotten more competitive prices by issuing a new request for proposals after the deal with SunPower fell through. Morioka said the state did not seek to issue a new request for proposals because it needed the solar power system installed before the expiration of a 30 percent federal credit at the end of 2008. The availability of that credit has since been extended by Congress. Morioka said the state contacted several solar power providers, notifying them they could bid on a scaled-down airport photovoltaic project. "I know we started contacting a lot of them to let them know," he said. "It was actually open to everybody. Hoku was the only provider that responded." Critics of the state's power purchase agreement rates also said the state could have waited for the Legislature to change the state tax credit program so that companies such as Hoku could benefit from them. Such a change was made in the recently passed Senate Bill 464, which makes the renewable energy credit refundable for taxpayers who agree to accept a lower credit of 24.5 percent. The bill has been sent to Lingle for review. Hoku could still benefit from the solar tax credit if that bill becomes law. However, any such cost savings would not reduce the rates the state pays for solar power. SAVINGS UNCERTAIN It's unclear how much money the state may save using solar power versus conventionally generated electricity during the next 20 years. However, if the state is paying 15 cents a kilowatt hour too much for solar power, the estimated added cost is about $200,000 a year or $4 million over 20 years for the 779 kilowatts of power now installed on state rooftops. The solar power rates paid by the state will rise annually by 2 percent to 3 percent, which should work in the state's favor as the cost of oil-based products will likely rise much faster. "All in all, from here on out I think it's going to be a very good thing for the state," Mullen said. "I think they just dove into it too quick. If they would have taken a step back, I think it could have worked out a little bit better for the state." Dustin Shindo, chairman and chief executive of Hoku Scientific, said the long-term power purchase contract will provide a hedge against increases in the cost of grid electricity. "Today's rates notwithstanding, the average price of electricity in Hawai'i has increased steadily over time, just like the average price of oil," he said in an e-mail. "As a result, the (state transportation power purchase) contracts are expected to save Hawai'i taxpayers a significant amount of money over 20 years, to say nothing of the environmental and strategic benefits of using clean, renewable power." Meanwhile, Morioka said, the state is readying bid solicitations for 3 to 10 megawatts worth of projects that will take a year or two to complete at about 20 sites. "We want to maximize as much of the space as possible," he said. "Our ultimate goal is getting some of our facilities off the grid." Reach Sean Hao at shao@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 21, 2009 8:25 a.m. HST Haleakala Wind Advisory Extended through Tomorrow Morning 1. EVENT: The National Weather Service in Honolulu has EXTENDED the WIND ADVISORY for the HALEAKALA SUMMIT NOW IN EFFECT 6:00 A.M. MONDAY. A Wind Advisory means that winds of 30 MPH are expected. 2. EFFECTS: Expect sustained winds of 20 to 35 MPH with gusts to 50 MPH today. 3. PRECAUTIONARY MEASURES: WINDS THIS STRONG CAN MAKE DRIVING DIFFICULT, ESPECIALLY FOR HIGH PROFILE VEHICLES. USE EXTRA CAUTION. SECURE ANY LOOSE OBJECTS THAT MAY BECOME AIRBORNE OR MOVE THEM INDOORS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 21, 2009 7:55 a.m. HST Early Morning West Maui Fire Closes Hokiokio Road Maui Police report that Hokiokio Road in West Maui is completely open this morning as of 5:44 a.m. A fire at the intersection of Hokiokio Road and Honoapi'ilani Highway closed both thoroughfares for a time shortly after 2 a.m. today. Within minutes, Fire crews were able to isolate the fire to just the Hokiokio Road area and Honoapi'ilani Highwas was reopened. By 5:30 this morning the fire was completely extinguisehed and crews began moving equipment out of the area. The entire road was reopened at 5:44 a.m. No word yet on what caused the fire, nor if there were any injuries or fdamage reported. (Information Provided by the Maui County Office of Information) NEWS FLASH - June 20, 2009 9:25 a.m. HST Bailout Recipient Defends Maui Trip Lincoln National Corp. flew top insurance agents and company executives to a Maui resort the week before accepting almost $1 billion in U.S. bailout funds, two people with knowledge of the trip said. An event schedule and other materials given to agents who went on the trip to Grand Wailea resort were printed on the letterhead of ITAGroup, the firm that calls itself "a full-service performance improvement company" on its Web site. The hotel advertises rates from $369 a night. Financial firms have roused public ire by funding conferences and bonuses after posting record losses and tapping Treasury's Troubled Asset Relief Program to stay afloat. Congress has passed pay curbs and the government has demanded budget cuts, including the cancellation of a private-jet purchase at Citigroup Inc. "Lincoln is committed to providing continuing education events and rewards" for agents, Laurel O'Brien, a spokeswoman for the Philadelphia-based insurer, said in an e-mail yesterday. The event in Hawaii allowed Lincoln to fulfill its "obligation to our top distribution partners." She said the event was for independent contractors, not company employees. The insurer, which has been unprofitable for two straight quarters, held a pair of four-night trips from June 6 to June 14, each attended by more than 100 salespeople, the two people said. The second conference ended the day before Lincoln announced it would take about $950 million in U.S. funds. Grand Wailea generally doesn't comment on clients, said Christina Yumul, a spokeswoman for the hotel. Insurance policies in the U.S. are often sold by independent agents who help customers choose among products from different carriers. Trips are used by many insurers as an incentive to salespeople. Conferences "have a value that goes beyond just compensation," Steven Schwartz, an analyst with Raymond James Financial Inc., said in an interview. Agents "are motivated to sell in part due to the public nature of the awards system." Insurers have reported losses and profit drops over the last 12 months as the financial crisis has pushed down the value of investments backing policies. American International Group Inc., the insurer saved by four bailouts since September, said last year it would cancel most planned meetings, and Amsterdam-based ING Groep NV, which received a capital injection from the Dutch government, eliminated some conferences at its U.S. business. Lincoln offers getaways annually as a reward for top sellers, the two people said. This year's gathering scaled back on recreation activities, entertainment and meals, they said. Lincoln broke with tradition this year by not issuing badges with the company's name and not printing agendas on its own letterhead, the people said. (Report Provided by The Honolulu Star-Bulletin) NEWS FLASH - June 20, 2009 9:15 a.m. HST Hale Makua Nurses Approve New Contract Registered nurses at Hale Makua Health Services on Maui have ratified a new three-year labor agreement, the Hawaii Nurses Association announced yesterday. The contract, which covers more than 50 registered nurses at Hale Makua, is effective July 1 and includes a 3 percent annual wage increase, or 9 percent over the life of the contract. The contract also includes an increase to the dental plan cap, an increase in life insurance coverage and an enhanced tuition reimbursement program. Additionally, nurses will get every third weekend off or be paid overtime for every hour worked during a third weekend. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 20, 2009 9:05 a.m. HST Extended Fishing Season Could Further Endanger Endangered Turtles A proposal by the National Marine Fisheries Service to allow unlimited fishing trips by Hawai'i's longline swordfish vessels has come under fire by conservation groups that argue this would lead to a greater number of endangered sea turtles being killed or seriously injured. In addition to removing a limit on each boat's fishing trips, the proposal would increase the number of allowable "interactions" with the threatened loggerhead sea turtle from 17 to 46 a year. The number of allowed interactions, defined as by hook or entanglement in nets, with endangered leatherback turtles would remain at 16 per year. Several conservation organizations yesterday criticized the planned changes, saying they could lead to nearly three times as many endangered sea turtles being killed or injured as currently permitted. The state's 30 swordfish boats are limited to a combined total of 2,120 sets, or fishing trips, each year. With no limit on the number of sets, the likelihood of more turtles being caught in nets or by hooks will increase, the groups charge. "They've gone to the Fisheries Service and said, essentially, 'We want to fish until we kill this number of turtles,' " said Paul Achitoff, managing attorney for Earthjustice in Hawai'i. "They're turning the swordfish fishery into a turtle fishing derby. 'As soon as you catch this number of turtles, the fishery closes. But not until then.' " Not so, said Scott Barrows, general manager of the Hawai'i Longline Association. Barrows said the state's fishing operators are among the most regulated in the world. He said an observer accompanies each vessel on every fishing trip to ensure that rules and regulations are followed. BELOW LIMIT Since the turtle interaction limits were put in place in 2004, he said, only once — in 2006 — did the swordfish boats reach the limit. He said with new fishing techniques and hooks, very few turtles are being killed or injured. Barrows said his organization has been working with the Fisheries Service and Western Pacific Fishery Management Council for three years to come up with a plan that will help the swordfish fishery, as well as protect the sea turtles. "We asked them to increase the number of sets because we weren't interacting with turtles as much as they had thought and the turtles that we did interact with, the mortality was much lower than they thought," Barrows said. He said a problem in the past was that no one really knew how many turtles were being caught or killed. But with observers on each trip, an accurate count can be kept, Barrows said. In 1999, Earthjustice filed a lawsuit against the swordfish longline industry because of its impact on endangered turtles. U.S. District Judge David Ezra issued an injunction that shut down the fishery. CAP ON 'INTERACTIONS' In 2004, the Fisheries Service reopened the swordfish fishery, with several restrictions. Among them were the number of fishing trips allowed, which were half of what they were at the time of the lawsuit. New fishing gear, and limits on turtle takes were also required. The Fisheries Service said the changes have reduced the number of interactions with loggerheads by 90 percent and with leatherbacks by 83 percent. Changing the rules, the service said, isn't expected to increase the turtle interactions. "This proposed rule intends to optimize the harvest of swordfish and other fish, without jeopardizing the continued existence and recovery of threatened and endangered sea turtles and other protected species," the Fisheries Service said in its proposal. But Achitoff said the turtles are so threatened that they could be extinct within a few years. "The leatherback and loggerhead sea turtles are acknowledged by experts as being in risk of extinction over the next few decades," Achitoff said. "It just makes no sense at all to be increasing the risk of this extinction." Barrows said the last thing his industry wants is for turtles to be killed or maimed. "If we hit the cap, the fishery is over. They end the fishery for the year," he said. "The year that they did have to close the fishery that hurt, because a lot of boats were told all at one time that they couldn't fish anymore." Reach Curtis Lum at culum@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 20, 2009 8:45 a.m. HST Haleakala Wind Advisory Extended Through Tonight 1. EVENT: The National Weather Service in Honolulu has EXTENDED the WIND ADVISORY for the HALEAKALA SUMMIT now in effect until 6:00 p.m. this evening. A Wind Advisory means that winds of 30 mph are expected. 2. EFFECTS: Sustained easterly winds of 25 to 35 MPH with higher gusts will continue today. 3. PRECAUTIONARY MEASURES: WINDS THIS STRONG CAN MAKE DRIVING DIFFICULT, ESPECIALLY FOR HIGH PROFILE VEHICLES. USE EXTRA CAUTION. SECURE ANY LOOSE OBJECTS THAT MAY BECOME AIRBORNE OR MOVE THEM INDOORS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 19, 2009 6:20 p.m. HST Kula Fire Burns 10-15 Acres Near King Kekaulike High School KULA - A fire first reported at 2:10 pm has burned an estimated 10-15 acres in the Kula area. The brush fire appears to have started in a field adjacent to King Kekaulike High School and came within approximately 200 feet to a nearby residence. Four fire engines and two water tankers dispatched to the incident were aided by two helicopters conducting water drops in very windy conditions. As of 5:30 this afternoon the fire is not advancing. No structures have been damaged and no injuries reported. Maui Police closed the Kula Highway from Aapueo Road to Halekalaka Highway. The cause of the fire is under investigation. (Report Provided by the Maui County Office of Information) NEWS FLASH - June 19, 2009 9:50 a.m. HST Hawai'i Unemployment Climbs to 7.4 Percent in May HONOLULU- The Hawai`i State Department of Labor and Industrial Relations announced today that the seasonally adjusted unemployment rate for May was 7.4 percent, an increase of 0.5 percentage point over April’s rate of 6.9 percent. The U.S. seasonally adjusted unemployment rate also went up by an identical amount, going from 8.9 percent in April to 9.4 percent in May. For the second consecutive month, Hawaii’s seasonally adjusted unemployment rate was lower than the national rate by 2.0 percentage points. In May, there were 601,150 employed and 47,850 unemployed, for a seasonally adjusted statewide labor force of 649,000. “After 5 months of decline, it is encouraging to see some job growth in the construction industry,” said Director Darwin L.D. Ching. “We are anticipating even greater construction job gains as the Governor’s Capital Improvement Projects get underway,” he added. Click here to read the entire report. (Report Provided by the State of Hawai'i, Department of Labor and Industrial Relations) NEWS FLASH - June 19, 2009 9:20 a.m. HST Hawai'i Leads Nation in Personal Income Growth Personal income in Hawai'i grew at the fastest rate of any state in the first quarter, according to new data from the U.S. Bureau of Economic Analysis. The agency said personal income here rose 0.8 percent compared with the prior three months, driven by earnings growth in the federal civilian and military sectors because of first-quarter pay raises as well as some initial hiring for the 2010 Census. The average personal income nationally fell 0.5 percent as earnings in 37 states declined. The BEA's personal income data are not adjusted for inflation. When inflation is taken into account, Hawai'i's personal income actually declined last year and is expected to fall even further this year. The University of Hawai'i Economic Research Organization is forecasting a 2.7 percent decline in "real," or inflation-adjusted, personal income this year. UHERO said its forecast takes into consideration proposed furloughs for state employees that would result in a nearly 14 percent salary reduction for those workers. The Department of Business, Economic Development and Tourism has forecast a 1.1 percent drop in real personal income this year that doesn't take into account the proposed furloughs. Without the inflation adjustment, DBEDT is forecasting a modest 0.1 rise in personal income this year. Personal income represents income received from all sources, including wages and salaries, business owner income, rental income, interest and dividends and transfer payments. The BEA said Hawai'i's first-quarter gain came after two quarters of declines. Alaska had the largest percentage decrease in first-quarter personal income at 3.2 percent. The BEA said Alaska's decline occurred as payments to residents from the Alaska Permanent Fund returned to regular levels. There had been a special $2,000 payment to Alaska residents in 2008. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 19, 2009 9 a.m. HST Haleakala Park Announces Fee Free Weekends - Starting Tomorrow Haleakala a National Park is participating in the National Park Service "Fee Free Weekends" in which entrance fees are waived. This Saturday and Sunday June 20 & 21 entrance to the park is free of charge. The National Park Service's "Fee-Free Weekends" are also announced for July 18-19 and Aug. 15-16. For a list of national parks, visit www.nps.gov. (Report Provided by Haleakala National Park) NEWS FLASH - June 19, 2009 8:40 a.m. HST Education Board Approves Drug-Sniffing Dogs The state Board of Education last night voted 8-4 to approve controversial changes to the public school system's disciplinary rules, including allowing for suspicionless locker searches and drug-sniffing dogs. For nearly two years, board members have been grappling with sweeping changes to rules governing student conduct and discipline. A major point of disagreement has been whether to allow searches of student lockers solely at the discretion of principals and school administrators, and the use of drug-sniffing dogs. "I am thinking of the 99 percent of our students who are entitled to safe environments," board member Mary Cochran said last night. The four members who voted no were board chairman Garrett Toguchi, vice chairwoman Lei Ahu Isa, Carol Mon Lee and Kim Coco Iwamoto. Breene Harimoto was absent. The policy will be reviewed by the state attorney general and must be signed by Gov. Linda Lingle before it can take effect. Board members debated at length over whether locker searches should be allowed with or without cause. Iwamoto offered an amendment to remove language that would allow for suspicionless searches, but the majority of board members voted it down. Ahu Isa said she does not support suspicionless searches, saying students have privacy rights. "This is unconstitutional," she said. But Kaua'i member Maggie Cox, a former public school principal, said allowing for suspicionless searches would "give (principals) the tools to be able to deal with the small group that are causing the problems." Whitney White, owner of Interquest Detection Canines of Hawaii, ran a six-month drug-sniffing dog pilot project in 2007 at three Maui schools. She used a specially trained dog to detect alcohol, drugs and guns on campus. She said the state could face legal consequences for not allowing drug-sniffing dogs in schools. "When and if a tragedy occurs relating to drugs, alcohol or gunpowder related items, the state could be sued for disallowing a proven program that could have prevented the tragedy," she said. Katherine Irwin, associate professor of sociology at the University of Hawai'i-Manoa, said research has shown the drug-sniffing dogs fail to detect drugs about 30 percent of the time. Irwin also said groups such as the NAACP and Rainbow Push Coalition have challenged such programs on the Mainland on the grounds that "these mandatory disciplinary policies and drug policing strategies are pushing large numbers of African American, Latino and Pacific Islander students out of school." Jeanne Ohta, director of the Drug Policy Forum of Hawaii, suggested that the board put money into programs that prevent drug abuse rather than spending money on a drug sniffing dog program. "It sounds like ... drug-sniffing dogs are going to help the drug problem, but it really doesn't help. ... It doesn't address usage, it doesn't decrease usage. Isn't that the end result of what we want?" Ohta said. Reach Loren Moreno at lmoreno@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 18, 2009 4:35 p.m. HST Strong Winds Atop Haleakala Extend Advisory 1. EVENT: The National Weather Service in Honolulu has continued the WIND ADVISORY for the HALEAKALA SUMMIT in effect until 6:00 p.m. Friday. A Wind Advisory means that winds of 30 mph are expected. 2. EFFECTS: A strong high pressure system northeast of the Islands has caused stronger winds over higher elevations of Haleakala on Maui. Expect easterly winds of 25 to 35 mph, with higher gusts, to continue through Friday afternoon. 3. PRECAUTIONARY MEASURES: WINDS THIS STRONG CAN MAKE DRIVING DIFFICULT, ESPECIALLY FOR HIGH PROFILE VEHICLES. USE EXTRA CAUTION. SECURE ANY LOOSE OBJECTS THAT MAY BECOME AIRBORNE OR MOVE THEM INDOORS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 18, 2009 3:15 p.m. HST Governor Lingle Details Furlough Plan HONOLULU – Governor Linda Lingle today announced details of the Administration’s plan to furlough all state employees in the Executive Branch to help close the unprecedented $2.7 billion revenue shortfall projected between now and June 30, 2011. The furlough plan represents the first time labor costs are being impacted to address the state’s budget gap. Starting July 1, 2009 and continuing through June 30, 2011, full-time employees in the Executive Branch will be placed on furlough for three days (24 hours) per month. Part-time employees will be placed on furlough on a pro-rated equivalent basis. The statewide furlough plan will save an estimated $688 million over the next two years and will avoid having to lay off employees at this time. In addition, furloughs will allow the state to continue to provide public services, maintain employee benefits and avoid recruitment and training costs for new employees when the economy recovers. The furlough plan applies only to employees in the Executive Branch, including the Governor’s Office, Lt. Governor’s Office and 16 state departments and their attached agencies. The plan does not affect the Department of Education, University of Hawai‘i, or the Hawai‘i Health Systems Corporation. These departments will see their budgets reduced by an amount equivalent to the three-day-per-month furlough, and the management and respective boards of the individual departments will determine how to implement the additional reductions. In addition, the furlough plan does not affect the Judiciary, the Legislature or the Office of Hawaiian Affairs. “The primary goal in developing the furlough plans for each department was to achieve the required operational savings, while minimizing disruption to public services,” said Governor Lingle. “I recognize the impact the furloughs will have on many employees and their families. This is not something we want to do, but something we have to do to balance the state budget. We appreciate the public’s understanding and patience as our state employees adjust to the new schedules.” Since last summer, the Governor has taken a series of steps to close nearly $2 billion of the projected revenue gap, including ordering spending restrictions of 8 percent on all state agencies; eliminating duplicate and inefficient programs; restructuring debt; imposing a freeze on new hires, out-of-state travel and the purchase of new equipment; using special funds and maximizing federal stimulus funds. On May 28, the Council on Revenues revised its forecast by an additional $730 million shortfall for the remainder of fiscal year 2009 which ends on June 30, 2009, and the two-year budget that begins July 1, 2009 and ends June 30, 2011, requiring the Administration to identify further savings. Because employee salaries and fringe benefits account for 70 percent of the State’s operating budget, it is now necessary to impose furloughs on State workers to help close the remaining gap in the State’s budget. The furlough savings will account for 25 percent of the total of budget savings that the State must achieve to close the projected $2.7 billion revenue gap. If the furloughs are not implemented, the State would have to lay off at least 2,500 Executive Branch employees to make up for the projected revenue shortfall. Such layoffs could also result in the shut-down of entire programs and services. State executive departments are preparing layoff plans in the event that the public worker unions are successful in blocking the implementation of the furlough plan. In addition to these layoffs, the Department of Education and the University of Hawai‘i will have their general fund budgets reduced by $278.4 million and $106.8 million, respectively, as part of their share of the labor savings, which could result in additional layoffs. Under the furlough plan, several departments will close all or portions of operations on specified days. The majority of the closures will take place on Fridays (attachment A). To minimize the impact to the public, several offices will extend their hours to accommodate the public during furlough weeks. These offices include the Unemployment Insurance Claims Office, Workforce Development Office (job referral and assistance), and Benefit Employment and Support Services Offices (food stamps, financial assistance, child care and related benefit eligibility determinations). Some departments and agencies will modify their furlough schedules and remain open on certain days to ensure the public is able to conduct business and meet deadlines, such as when tax returns are due to the Department of Taxation, or when public housing rent collections are due to or housing assistance payments are made by the Hawai‘i Public Housing Authority. A number of divisions and offices will maintain their current hours of operations and remain open during regular state government business hours (7:45 a.m. to 4:30 p.m., Monday through Friday). These include the Governor’s office, Lt. Governor’s office, Department of Defense, Hawai‘i Tourism Authority and Family Guidance Centers. Furlough days will be staggered to ensure public access during normal business hours. Other agencies and divisions which have hours different from regular government business hours will maintain their current hours of operations and stagger or rotate their furlough days to minimize the impacts on their operations. These include State Civil Defense; Highways, Airports and Harbors Divisions; Natural Resource Conservation and Enforcement; Foreign Trade Zone #9; Information and Communications Services Division (provides state information services, internet and computer support); Public Works Division; Child Welfare Services; Halawa Animal Quarantine Station; Honolulu International Airport Animal Quarantine Holding Facility; Plant Quarantine Inspections; Aloha Stadium; and geothermal drilling engineering. Operations that require round-the-clock coverage due to the clientele they serve and responsibilities they handle will remain operational throughout the year on a 24-hour basis. These include the Kalaupapa, Moloka‘i and Hale Mohalu Hospital operated for Hansen’s disease patients, Hawai‘i State Hospital, Hawai‘i Youth Correctional Facility; and correctional facilities and community correctional facilities statewide. The furlough plans and schedules for personnel working at these facilities are still being finalized. The detailed furlough plan can be found on the Governor’s Web site (www.hawaii.gov/gov). In addition, each department will post modified hours of operations for their respective divisions and attached agencies on their web sites. (Report Provided by the Office of Governor Linda Lingle) NEWS FLASH - June 18, 2009 2:35 p.m. HST Kaua'i Missle Defense Systems Are 5 for 5 since 2005 Defense Secretary Robert Gates has ordered deployment of the Terminal High Altitude Area Defense missile system to Hawaii, according to American Forces Press Service. The system, called THAAD, is designed to destroy short- to medium-range ballistic missiles at high altitudes, even outside the atmosphere. The THAAD system has been successfully tested at Kauai's Pacific Missile Range. Since 2005, the system — using mobile launchers at Barking Sands on Kauai's west coast — has been a perfect 5 for 5 in knocking out an incoming missile. Gates also has ordered use of the sea-based SBX radar. THAAD is one of two ground-based mobile missile interceptor systems available to the U.S. military, according to the Department of Defense's Missile Defense Agency. The other is the Patriot Advanced Capability 3. Both systems work in tandem with radar and involve missiles that directly hit incoming missiles. A third system — the Airborne Laser, or ABL — involves a laser aboard a modified Boeing 747 that destroys missiles in flight by heating them until they fail structurally. The Patriot, which gained notoriety by knocking down Iraqi SCUDs during the Gulf War, is designed primarily as a hit-to-kill interceptor of short-range ballistic missiles, cruise missiles and aircraft. For more on the THAAD system, go to: http://www.mda.mil/mdalink/html/terminal.html (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 18, 2009 2:25 p.m. HST Missile Defense Systems On Way to Hawai'i WASHINGTON — Defense Secretary Robert Gates said today he has ordered the U.S. military to take defensive measures should North Korea attempt to fire a ballistic missile toward Hawaii. "We do have some concerns if they were to launch a missile to the west in the direction of Hawaii," Gates told reporters at the Pentagon. Gates said he has sent the military's ground-based mobile missile system to Hawaii, and positioned a radar system nearby. Together the systems theoretically could detect and shoot down a North Korean missile if it came to that. "Without telegraphing what we will do, I would just say ... we are in a good position, should it become necessary, to protect Americans and American territory," Gates said. Gates' comments came in response to a report out of Japan that said North Korea may fire its most advanced ballistic missile toward Hawaii around July 4. North Korea test-fired a long-range missile on July 4 three years ago, but it failed seconds after liftoff and fell into the ocean. While the Yomiuri Shimbun speculated the latest Taepodong-2 could fly over Japan and toward Hawaii, it said the missile would not be able to hit Hawaii's main islands, which are about 4,500 miles from the Korean peninsula. A spokesman for the Japanese Defense Ministry declined to comment on the report. South Korea's Defense Ministry and the National Intelligence Service — the country's main spy agency — said they could not confirm it. A new missile launch — though not expected to threaten U.S. territory — would be a brazen slap in the face of the international community, which punished North Korea with new U.N. sanctions for conducting a second nuclear test on May 25 in defiance of a U.N. ban. North Korea spurned the U.N. Security Council resolution with threats of war and pledges to expand its nuclear bomb-making program. The missile now being readied in the North is believed to be a Taepodong-2 with a range of up to 4,000 miles, and would be launched from North Korea's Dongchang-ni site on the northwestern coast, the Yomiuri newspaper said. It cited an analysis by Japan's Defense Ministry and intelligence gathered by U.S. reconnaissance satellites. Pyongyang's missile and nuclear programs are centerpieces of the regime's catalog of weapons of mass destruction. But the impoverished nation, which has put most of its scarce resources into boosting its military capabilities under its "army-first" policy, also has a large chemical arsenal, as well as capabilities to produce biological weapons. Today, an international security think tank warned that these weapons are no less serious a threat to the region than the North's nuclear arsenal. The independent International Crisis Group said the North is believed to have between 2,500 and 5,000 tons of chemical weapons, including mustard gas, phosgene, blood agents and sarin. These weapons can be delivered with ballistic missiles and long-range artillery and are "sufficient to inflict massive civilian casualties on South Korea." "If progress is made on rolling back Pyongyang's nuclear ambitions, there could be opportunities to construct a cooperative diplomatic solution for chemical weapons and the suspected biological weapons program," the think tank said in a report. It also called on the U.S. to engage the North in dialogue to defuse the nuclear crisis, saying "diplomacy is the least bad option." It said Washington should be prepared to send a high-level special envoy to Pyongyang to resolve the tension. South Korea's annual defense report, published early this year, said that in addition to chemical weapons, the North is believed to be capable of producing biological weapons with agents like anthrax and smallpox. (Report Provided by the Associated Press) NEWS FLASH - June 18, 2009 8:10 a.m. HST High Winds at Summit Prompt Advisory 1. EVENT: The National Weather Service in Honolulu has issued a WIND ADVISORY for the HALEAKALA SUMMIT in effect until 6:00 p.m. Friday. A Wind Advisory means that winds of 30 mph are expected. 2. EFFECTS: A strong high pressure system northeast of the Islands has caused stronger winds over higher elevations of Haleakala on Maui. Expect easterly winds of 25 to 35 mph with higher gusts. 3. PRECAUTIONARY MEASURES: WINDS THIS STRONG CAN MAKE DRIVING DIFFICULT, ESPECIALLY FOR HIGH PROFILE VEHICLES. USE EXTRA CAUTION. SECURE ANY LOOSE OBJECTS THAT MAY BECOME AIRBORNE OR MOVE THEM INDOORS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 18, 2009 7:50 a.m. HST Governor Defends Furlough Plans, Will Address State Today Gov. Linda Lingle yesterday defended her furlough plans for state workers from an objection by the federal Social Security Administration. The federal agency warned that furloughs of federally funded workers in the state Department of Human Services could cost the state $1.9 million in federal money and delay the processing of about 3,000 Social Security claims over two years. In a letter to the Social Security commissioner, the governor wrote that her decision to furlough all state workers "recognized that employees working side-by-side, whether their paychecks come from federal funds, state funds, special funds, or other taxpayer resources, should be treated in the same, even-handed manner." "It is troubling that some would argue they are 'special' or should be set apart from their brethren, simply because their pay comes from a federal source." Lingle will outline in more detail her plan to furlough state workers at a news conference this afternoon at 1:30. You can watch the press conferenbce live at http://hawaii.gov/gov. Public-sector labor unions went to court on Tuesday to try to block the governor's furlough plans, contending that furloughs should be the subject of collective bargaining talks as union contracts expire at the end of the month. Michael Astrue, the Social Security commissioner, wrote Lingle on June 9 objecting to furloughs for workers in the state Department of Human Services' disability determination branch. The federal government pays the salaries of 36 state workers and 16 medical consultants under contract, who help process disability claims. Astrue argues that these state workers should be treated differently because of their federal role. He claimed no other state is furloughing as many state workers for as long as Hawai'i. Lingle has ordered three furlough days a month for two years to save the state $688 million and help contain a budget deficit. "Not only are you denying full salaries — that we pay for — to DDB employees, you are harming those Hawaiians who have applied for disability benefits and now will wait even longer for a decision as a result of your furlough plan," Astrue wrote. "In addition, those Hawaiians whose federal benefits are delayed will rely on state programs, adding to the state's costs." 'WILLING TO BARGAIN' The exchange with the Social Security Administration shows some of the practical challenges the governor is encountering as she tries to develop her furlough plans. The Lingle administration and county mayors submitted proposals to the unions yesterday during a meeting at the United Public Workers headquarters that was attended by a federal mediator. Randy Perreira, the executive director of the Hawai'i Government Employees Association, said he remains optimistic despite the escalation in rhetoric over the past few weeks. "The four unions are certainly willing to bargain some kind of resolution that will include some employee sacrifice," he said. The state's congressional delegation, citing the Social Security Administration's objections, called Lingle's furlough plans troubling and urged the governor to reconsider. The delegation warned that other state workers who are federally funded could be in a similar situation as workers at the disability determination branch. "While we understand the gravity of the state's economic situation, your plan to furlough all state employees for three days per month for two years, which will reduce social services just when many Hawai'i residents will need them most, is troubling," wrote U.S. Sen. Daniel K. Inouye, U.S. Sen. Daniel Akaka, U.S. Rep. Neil Abercrombie and U.S. Rep. Mazie Hirono, all Democrats. Lingle, in her response to Astrue, said her administration would monitor the workload in the disability determination branch and could add workers if demand increases, using some of the savings from furloughs to help cover the costs. The governor again warned that the alternative to furloughs is layoffs. "Failure to institute furloughs will leave Hawai'i with little choice but to start massive layoffs of state personnel that could result in the shutdown of entire programs," she wrote. "Furloughs allow the state to continue to carry out its mission, avert layoffs, maintain employee benefits, and avoid recruitment and training costs for new employees when the economy recovers." SEVERE MEASURES While union leaders and some Democrats have criticized the Republican governor for acting unilaterally on furloughs, some Republicans counter that union leaders and Democrats have not offered a credible alternative to close what Lingle now describes as a $730 million budget deficit. Union leaders have suggested an increase in the general-excise tax, which would not come until next year unless the state Legislature returns in special session. Some Democrats have mentioned that Lingle could restrict spending over the next several months and then work with lawmakers on an amended two-year budget next session, including the possible use of the state's rainy day and hurricane relief funds. "Furloughs are the most cost effective, the least painful, and nobody loses their job, nobody loses their tenure, nobody loses their seniority, nobody loses their benefits," said state Rep. Gene Ward, R-17th (Kalama Valley, Queen's Gate, Hawai'i Kai). Confrontations between governors and public-sector labor unions have occurred in several states, including California, New York and New Jersey, where, like in Hawai'i, governors have warned of layoffs of thousands of state workers unless unions agree to concessions. Lingle's order of three furlough days a month for two years and her estimate of 10,000 layoffs as the alternative is among the most severe in the country. But several labor and political insiders privately doubt the governor would lay off so many state workers without more convincing evidence of an immediate budget crisis because of the likely public backlash at the loss of state services and programs. The National Governors Association, in a fiscal survey of states released this month, found that nearly three-quarters of states are recommending fiscal year 2010 budgets with negative growth because of the recession. The survey, completed before Lingle ordered furloughs, found that 17 states had used layoffs and 15 states had used furloughs, with several states adopting both methods to help close budget gaps. Reach Derrick DePledge at ddepledge@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 17, 2009 3 p.m. HST Maui Adds One New Swine Flu Case - State Total Nears 300 The state Department of Health today said 100 new cases of swine flu have been confirmed, bringing the state total to 298. The weekly breakdown shows 98 new cases on Oahu, bringing Oahu's total to 288. Kauai and Maui each reported one new case and have three cases each. There were no new cases on the Big Island, which has confirmed four cases. The first cases of swine flu in Hawaii were confirmed May 5. To date, the Department of Health has investigated and conducted case follow-up for over 1,350 individuals tested for swine flu. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 17, 2009 7:50 a.m. HST Hawaii Superferry Seeking to Abandon Ships The Hawaii Superferry, anchored in bankruptcy in a Wilmington, Del., courtroom, is seeking to literally abandon ship about three months after legal and environmental obstacles forced it to cease operations in the islands. Citing the expenses to maintain its two idled vessels, the Superferry has filed a motion to walk away from the ships and release its financial interest in the ferries. "It is unclear if there is any equity in the vessels given current market conditions, and the debtors do not have sufficient liquidity at this time to continue to maintain the vessels while waiting for market conditions to improve," the motion said. The Superferry said it is incurring significant costs for things such as insurance, maintenance, security and storage. "For these reasons, the debtors in their business judgment have determined that abandonment of the vessels is appropriate since the vessels constitute a burden to the estate," the motion said. "By abandoning the vessels, the debtors will eliminate this current and ongoing burden and expense." A hearing on the motion, which was filed last week, is set for July 1. The Superferry, which operated the $85 million high-speed, aluminum-hulled Alakai between Honolulu and Maui until it ceased operations in mid-March, also owns a second ship, the Huakai, which recently was constructed by Austal USA LLC at its Mobile, Ala., shipyard and delivered to the Superferry around April 21. That ship would have allowed the Superferry to expand its service to the Big Island and revisit initial plans to sail to Kauai. But the Superferry was stopped in its wake on March 16 after the state Supreme Court ruled that Act 2, a law passed by the state Legislature in October 2007, was unconstitutional because it benefited a specific company. The law had enabled the Superferry to keep operating while trying to complete an environmental impact statement study. The Superferry, in its motion for abandoning the ships, said that as of its May 30 bankruptcy filing it owed $135.8 million to the U.S. Department of Transportation's Maritime Administration through a guaranteed loan that provided financing to construct the vessels. Austal, the second lien holder, is owed $23 million through two term loans. And the only money owed the Hawaii Department of Transportation is secured by an $833,000 letter of credit, the motion said. The Superferry contended in its motion that no money is owed the state through a $40 million Harbors Operating Agreement due to the state Supreme Court ruling and an earlier ruling by the Second Circuit Court on Maui . The agreement allowed the Superferry to use specific pier areas at the Honolulu, Nawiliwili, Kahului and Kawaihae harbors and the use of certain equipment, such as ramps and barges, provided by the state DOT. Tom Fargo, president and chief executive of the Superferry, declined to comment yesterday because of the bankruptcy proceedings. A spokeswoman for law firm Pepper Hamilton LLP, which represents the Superferry, said the firm had "no comment at this time." Craig Wolfe, an attorney for the Superferry's unsecured creditors' committee, didn't respond to a phone call or e-mail. Following the state Supreme Court's March 16 ruling, Fargo said at a news conference that an environmental impact statement study might take a year or more to complete even with the work that already had been done. He said the Superferry would look for commercial or military work in or outside Hawaii. But the motion said the Superferry has been unable to obtain financing that would permit it to maintain existing operations until determing whether one or more of the vessels can be chartered. "While discussions with potential sources of financing are ongoing, it is the debtors' present intention to liquidate its remaining assets and distribute them to creditors pursuant to a liquidating plan," the motion said. The 349-foot twin-hulled catamaran Alakai, which was capable of carrying up to 866 passengers and 282 cars, began interisland service in August 2007. However, court challenges and protesters in harbor waters off Kauai and Maui led the ferry to suspend operations until the Legislature came back in special session in October 2007 to pass Act 2. MILESTONES » Aug. 23, 2007: Hawaii Supreme Court rules that environmental laws require the state to review the impact of Superferry operations. » Aug. 26, 2007: Inaugural voyage to Maui. » Oct. 31, 2007: Hawaii Legislature passes Act 2 in a special session to allow the Superferry to operate while an environmental impact statement study is conducted. » March 16, 2009: Hawaii Supreme Court rules that the state law allowing Superferry to operate while an environmental impact statement is conducted is unconstitutional. » May 30, 2009: Hawaii Superferry files for Chapter 11 bankruptcy. » June 11, 2009: Hawaii Superferry files a motion to abandon its ferries. (Report Provided by The Honolulu Star-Bulletin) NEWS FLASH - June 17, 2009 7:40 a.m. HST State's High School Athletes Facing Higher Hurdles In a cost-cutting move that will affect hundreds of athletes this coming school year, the Hawai'i High School Athletic Association's executive board voted unanimously yesterday to reduce state tournament participation in most individual sports by 20 percent. Affected sports include boys and girls air riflery, bowling, cross country, golf, swimming and wrestling. The reduction in boys and girls tennis would be greater — from 44 singles and doubles each to 32 (27 percent), while the reduction in judo is less, from a maximum of 16 entries per weight class to 14 (14 percent). Paddling also will be affected, with the tournament entries dropping from 24 teams to 16 for the championship regatta. Track and field entries will be limited to 26 per event, down from a high of 36 for some events. "I wish more of our kids could play in state tournaments, because that's their big opportunity," said Maui High principal Randy Yamanuha, the Maui Interscholastic League president. "But we had to go with everybody on this." A proposal to use a formula that would shrink some tournament fields from 12 teams to eight was tabled due to gender equity concerns. A vote has been delayed until June 24. That proposal would affect baseball, softball and soccer, mostly at the Division II level. OIA PROPOSALS The O'ahu Interscholastic Association, made up of 29 public schools, submitted most of the proposals relating to the reductions while citing the Department of Education's mandated 50-percent budget cut in athletic supplies, equipment and transportation. OIA executive director Dwight Toyama addressed a conference of the state's athletic directors on Saturday, informing them of an additional 5 percent cut proposed at Friday's Board of Education meeting. The ADs then voted to approve the state tournament reductions affecting most of the individual sports. The proposals became official after yesterday's vote at Radford by the HHSAA executive board, made up of principals from each of the state's five high school leagues. "These cuts were made for reasons beyond my or anyone else's control," said HHSAA executive director Keith Amemiya. At the ADs conference last week, the proposed cuts faced opposition from the MIL and Big Island Interscholastic Federation, whose administrators maintained that their state tournament travel money is privately raised and not tied to DOE budget restrictions. But yesterday, the MIL and BIIF voted in favor of the cuts, as did the Kaua'i Interscholastic Federation and all-private-school Interscholastic League of Honolulu. "We still felt that some parents would be willing to pay (for state tournament travel)," said BIIF executive director Lyle Crozier. "But then again, with even more budget cuts coming, some parents might change their mind." Crozier said amendments to shrink the proposed cuts from an original 30 percent to 20 percent "made it easier to swallow." GENDER EQUITY ISSUE As for DII softball and girls soccer, those tournaments may remain at 12 teams despite the proposal that probably would have shrunk them to eight each. That's because of gender equity concerns with regard to leaving the football state tournaments at status quo with six teams each. Since football involves an unusual amount of players (usually 50 or more per team), leaving it status quo while cutting girls' state tournament participation in softball and soccer would create an imbalance, said DOE gender equity specialist Raymond Fujino. "You have to be careful when you make across-the-board cuts but don't touch football," said Fujino, who addressed the HHSAA board yesterday morning. "I explained the need to look at gender equity and take it into consideration, because it could be a Title IX (federal equal opportunity) issue." Fujino said the Florida High School Athletic Association recently made similar cuts of 20 percent "across the board," exempting football and cheerleading. But Fujino said there are 36,000 football players in Florida, and only 4,000 cheerleaders. He added that a parent group threatened to file a gender equity lawsuit against the FHSAA. "You have to look at the numbers, and it has to be equitable," Fujino said. Reach Wes Nakama at wnakama@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 17, 2009 7:30 a.m. HST Battle Heating Up Over Furloughs Three public-sector labor unions filed legal challenges yesterday against Gov. Linda Lingle's plans to furlough state workers, while the governor said she has instructed state department directors to draft layoff options as an alternative if furloughs are blocked in court. The unions — the Hawai'i Government Employees Association, the Hawai'i State Teachers Association and the United Public Workers — filed separate complaints in Circuit Court in Honolulu arguing that furloughs should be the subject of collective bargaining negotiations between unions and the state. The unions asked the court for an injunction stopping the governor from imposing furloughs in July or spending restrictions equivalent to furloughs at the state Department of Education. Lingle has ordered state workers to take three furlough days a month for the next two years — about a 13.8 percent pay cut — to reduce $688 million in state spending and help close a budget deficit. The HGEA, the state's largest public-sector union, contends the governor cannot unilaterally impose furloughs and circumvent the collective bargaining process. The HSTA and the UPW claim the governor's furlough plans are unconstitutional violations of the right to organize for collective bargaining and the separation of powers with the state Legislature, which has the authority to appropriate state money. Union contracts expire at the end of the month. "We have always been committed to a fair process, the need for all parties to negotiate in good faith, and we have been willing to do our part to work together to explore workable solutions for our community in the current economic climate," Roger Takabayashi, the HSTA's president, said in a statement. "It is unfortunate that we are forced to take this action." FURLOUGHS 'UNFAIR' Randy Perreira, the HGEA's executive director, accused the governor of ignoring the collective bargaining process. "Her imposed furloughs are unfair and unconstitutional, and we were forced to take legal action to prevent implementation, and the harm it would do to government employees and their families," he said in a statement. "Now that we have challenged her unilateral furlough plan, we anticipate that the governor would next threaten the employees with layoffs. It's unfortunate that she has chosen this path instead of negotiating with us." Lingle has said the state would need to lay off as many as 10,000 state workers to achieve the same $688 million in savings as furloughs. The governor has portrayed union leaders, particularly Perreira, as in denial about the state's financial crisis and unwilling to sacrifice. Lingle said yesterday that the state has asked a federal mediator to help make progress in labor negotiations. While Lingle's authority to impose furloughs is unclear, she has the power under state labor law to order layoffs. She said department directors have been asked to draw up layoff plans. "If the unions are successful at blocking the furloughs, we will have to go to some mass layoffs and some shutdown of programs," Lingle said. MAYORS ACT JOINTLY County mayors, acting as the Hawai'i Council of Mayors, submitted a proposal to the governor on Monday for county workers that does not include furloughs, layoffs or pay cuts. In a statement, the four mayors said it would be the first time the counties and the state would submit separate packages under one umbrella to the unions. The Lingle administration has been in negotiations with unions for months over new contracts, but the governor has not made a formal offer because she has not been able to get an endorsement from a county mayor. Under state labor law, the governor needs at least one mayor to back a formal offer, a safeguard that prevents the state from acting unilaterally. "We have balanced budgets for next year," said Ken Nakamatsu, the director of human resources for the city and county of Honolulu. Nakamatsu said the county budgets do not include furloughs, layoffs or pay cuts but "we're reserving the option to then negotiate with the unions any appropriate actions" for the second year of the contracts. 'DIFFERENT ISSUES' The mayors' stance could undermine Lingle's argument that furloughs are necessary starting in July. Some union leaders and state lawmakers believe the governor could impose spending restrictions over the next several months, bargain with the unions over new contracts, and work collaboratively with lawmakers next session on amending the two-year budget to close a deficit she says is $730 million. "While we have areas of agreement with the governor, it is important that during this round of negotiations we handle certain issues differently from the state," Big Island Mayor Billy Kenoi said in a statement. "We appreciate the governor's willingness to be flexible and to work collaboratively with the counties as we navigate the economic challenges that confront all of us." Lingle said the mayors' position is consistent with her thinking historically that counties should be negotiating more on their own. The governor said separate proposals make sense this year because the state — which relies primarily on general excise and individual income taxes — and the counties — which depend more on property taxes — are facing different financial challenges. The governor said the counties will likely experience more of a revenue decline next year because of a lag in the recession's impact on property taxes. "They have different issues. They have different revenue streams, so it makes a lot of sense," she said. SECOND THOUGHTS Legal observers, after an initial look at the legal challenges yesterday afternoon, believe the courts will likely decide the complaints based on the collective bargaining argument rather than the separation of powers claim. The state attorney general's office told state lawmakers in February that it was unclear whether Lingle had the authority to order furloughs without negotiating with unions but found that furlough procedures should be negotiated. In May, the state attorney general's office amended its position and argued that furloughs and furlough procedures are not subject to mandatory negotiations with unions. The unions claim that furloughs reduce state workers' hours and wages and should be subject to collective bargaining. The HGEA also argues that existing contract terms cannot be changed by the state when the contracts expire because negotiations are ongoing as part of a timetable signed by the HGEA and the state in February. The HGEA contends that even if the court finds that furloughs are not subject to negotiations, furlough procedures should be part of labor talks. The governor said most department directors turned in their furlough plans over the weekend, and her administration will announce the details soon. Lingle said it will likely take longer to provide details on how furloughs will be implemented at state prisons, the Hawai'i State Hospital and the Hawai'i Youth Correctional Facility. The state has been working with the federal government to improve conditions at these facilities, and the governor said the state does not want the furlough process to sidetrack progress. Michael Nauyokas, a labor attorney and mediator, described the legal issues involved as "very muddy." "I just think that the governor put the unions in a position where they had to do this," he said. "They need to sit down and work it out. Instead of solving the problem, we're escalating it." Staff writers Gordon Y.K. Pang and Jim Dooley contributed to this report. Reach Derrick DePledge at ddepledge@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 16, 2009 5:45 p.m. HST South Shore Surf Expected to Stay Up Through Wednesday Evening 1. EVENT: The National Weather Service in Honolulu has EXTENDED the HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE now in effect until 7:00 p.m. WEDNESDAY. A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: A south-southeast swell continues to produce high surf along southern shores. Surf will range from 6 to 9 feet through tonight, lowering slowly to 5 to 8 feet Wednesday. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 1.7 feet is expected between 8:50 p.m. and 10:17 p.m. tonight. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 16, 2009 2:45 p.m. HST Maui High Team Places 14th in Auto Skills National Championship Two students from Maui High School placed 14th at today's 2009 Ford/AAA Student Auto Skills National Championship at Dearborn, Mich. Teams from the Kahului school have represented Hawaii at the national finals 15 times since 1992, and won national titles in 1995 and 2000. Recent graduates Chester Coloma, 18, and Edler Espiritu, 17, took 92 minutes and 58 seconds to repair their "bugged" Ford Escape at AAA Michigan headquarters, and received just one demerit, according to a news release. They were coached by Maui High School instructor Shannon Rowe, who competed in the 1996 national competition. The Hawaii team members each received a $1,000 scholarship to the Lincoln College of Technology, and by finishing in the top 15, Maui High will receive a Ford vehicle for its automotive technology program. The top five finishers in today's national competition were Minnesota, Colorado, Alabama, Texas and California. "We're really proud because the kids did a great job," Rowe said. "The team fixed the problems with the car; the one demerit was a small mistake that took the team down several places. But the students are happy with how they represented their community and the state of Hawaii." (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 16, 2009 10:45 a.m. HST Moloka'i Customer Asked to Cut Water Use During Maintenance Customers in Kaunakakai and Kalae, Molokai, are asked to conserve water while the Department of Water Supply replaces the pump and motor at the Kualapu’u Well, which is the county’s water source for this area. The project is scheduled for June 22 through July 10, 2009. The State Department of Hawaiian Home Lands will provide water to the County system while the well is out of service. The project is a scheduled Capital Improvement Project and is budgeted at $300,000. The Department will be working with a contractor to complete the job. Until the Kualapu’u Well is restored to normal operations, Kaunakakai and Kalae customers are asked to cut back water usage by a targeted amount of 25%, and the DWS will closely monitor the situation. (Report Provided by the Maui County Department of Water Supply) NEWS FLASH - June 16, 2009 7:35 a.m. HST Local Company Wants to Buy Hawaiian Telcom Local telecommunications company Sandwich Isles Communications Inc. said it wants to purchase Hawaiian Telcom Inc. for $400 million. The offer would compete with a reorganization plan proposed earlier this month by the local phone company that had a $460 million price tag. "The Sandwich Isles proposal represents a far superior restructuring alternative to the 'stand-alone' plan proposed," Sandwich Isles said in a filing in U.S. Bankruptcy Court on Friday. Established in 1995, Sandwich Isles provides heavily subsidized phone lines to rural customers living on property developed by the Department of Hawaiian Home Lands. The federal government pays Sandwich Isles about $13,000 per customer for providing the service, which is 100 times higher than the average subsidy for rural telephone service on the Mainland. "As a strategic acquirer with significant expertise in the Hawai'i telecommunications industry, the Sandwich Isles proposal would ensure a smooth transition of service to a proven local operator," the company said. In its filing, Sandwich Isles said its offer includes $250 million in cash plus $150 million in debt issued by Hawaiian Telcom. The company said it plans to keep Hawaiian Telcom's 1,400 workers at existing wages, with the exception of senior management. A deal with Sandwich Isles would require the approval of the bankruptcy court, the state Public Utilities Commission and the Federal Communication Commission. Hawaiian Telcom said it stands behind its own reorganization plan, which has the support of a key committee of its secured bank lenders, who have a big say on how the bankruptcy proceedings are handled. "On June 3, Hawaiian Telcom filed its plan of reorganization, which will significantly reduce the company's debt by nearly $790 million, from $1.1 billion to $300 million, and position the company to emerge from bankruptcy a stronger and more financially secure company," Hawaiian Telcom said. FEDERAL LOANS Hawaiian Telcom, founded in 1883, is the state's largest phone company with more than 500,000 business and residential customers state- wide. The company filed for bankruptcy protection Dec. 1 due to its heavy debt load and the loss of thousands of customers to wireless and other competitors. Besides the seller financing, Sandwich Isles said its purchase will rely on low-cost, federal government loans. Since 1998, Sandwich Isles has obtained more than $400 million in loans from the U.S. Department of Agriculture. The company is headed by Albert Hee, the brother of state Sen. Clayton Hee, D-23rd (Kane'ohe, Kahuku). The company's participation in the government loan program and other subsidies has recently come under the scrutiny of an influential member of Congress. In March, U.S. Rep. Henry Waxman, D-Calif., said Agriculture Department subsidies received by Sandwich Isles and other local carriers such as Sprint Nextel and Mobi PCS amounted to about $13,000 per phone line per year. Waxman, chairman of the House Committee on Energy and Commerce, has advocated reforms to the government's high-cost rural phone subsidy program. REJECTED EARLIER In its filing, Sandwich Isles said company officials met with Hawaiian Telcom's management earlier this year but were rebuffed. Hawaiian Telcom currently is not required to consider Sandwich Isles' reorganization plan. After filing for bankruptcy in December, the company had six months to come up with its own reorganization plan without having to consider alternative plans. U.S. Bankruptcy Judge Lloyd King recently extended that period to June 30 and the company is seeking another extension to Sept. 30. Sandwich Isles is opposing the latest extension request so it can present its reorganization plan earlier. A hearing is scheduled on July 1. Reach Rick Daysog at rdaysog@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 15, 2009 4:50 p.m. HST Intermittent Phone Problems Plague Maui County WAILUKU -- Dropped phone calls, Internet disconnects and problems with phones in general have crippled telecommunications for Maui County residents, with hard information on what's wrong hard to come by. Phone service in and out of the Kalana O Maui Building has been down since offices opened Monday morning, Maui County spokeswoman Mahina Martin reported. Martin said she has been told the phone problems stem from a fiber-optic line that was cut near the Maui Research and Technology Park in Kihei. Service was expected to be restored by 4 p.m. Monday, she said. But the telecommunications problem is more widespread than just the county building. Verizon cell phone customers have been reporting problems Monday, primarily with calls that last a few seconds and then disconnect. Internet access was affected for some businesses. Carol Reimann, executive director for the Maui Hotel & Lodging Association, said her office phones have not worked properly Monday. She tried checking member properties and learned that the Ka'anapali Beach Hotel, the Westin Kaanapali, the Kaanapali Beach Club and the Royal Lahaina were not getting incoming or outgoing phone service. Because she wasn't able to call the resort properties directly, her information comes by "just word of mouth, I can't confirm," Reimann said. Internet service at the Westin was working, she said. The Marriott Maui Resort in Kaanapali had phone service, but not Internet service, she said. Reimann said she also heard that the problem came from a damaged fiber-optic cable in South Maui. "Obviously, you know it's not good for business," she said. "Communication is everything in this day and age." The Ka'anapali Beach Hotel has been doing a radio promotion, and its Internet service has been down, Reimann reported. "This has hugely affected them," she said. Fortunately, she said, hotel reservations are handled off island, but guests still need to be able to make calls to make dinner reservations or book activities for the day. "It's a good thing most people have cell phones," she said. Martin said the county's emergency 911 telephone line was briefly affected by the phone problems, but calls were immediately rerouted to a different police dispatch center on Molokai. Pacific LightNet provides the county's telephone service, she said. Calls seeking information from Pacific LightNet were not been returned as of 3 p.m. Monday. The problem does not stem from Hawaiian Telcom, said Ann Nishida, its senior manager for corporate communications. But she said the fiber-optic problem has, somehow, affected three or four of Hawaiian Telcom's customers, she said. Martin said phone service among offices within the county building were not affected by the downed phone system. The county's e-mail system also was working, although county-issued Blackberry phones were without service, she said. (Report Provided by The Maui News) NEWS FLASH - June 15, 2009 4:20 p.m. HST South Shore Surf Advisory Extended Another Day 1. EVENT: The National Weather Service in Honolulu has CONTINUED the HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE effective UNTIL 6:00 a.m. HST WEDNESDAY. A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: Surf along south facing shores will be 6 to 9 feet with locally higher sets through early Wednesday morning. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 1.9 feet is expected between 8:12 p.m. and 9:26 p.m. this evening. The next high tide of approximately 1.5 feet is expected between 11:22 a.m. and 12:01 p.m. tomorrow morning. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 15, 2009 1:20 p.m. HST DLNR to Hold Public Meetings on Fishing Regulations HONOLULU – The Department of Land and Natural Resources (DLNR) invites the public to participate in continuing information meetings to discuss possible regulations for certain marine fish species. The public discussion will center on using minimum size rules to protect marine life that may be at risk of being over harvested. The meetings will focus on at least three main fish families that the DLNR feels may be in need of updated regulations: Parrotfish (uhu), Goatfish (weke), and Jacks (ulua/papio). The Division of Aquatic Resources (DAR) would also like to discuss other methods to manage fisheries, including the use of daily bag limits. The Division has not yet drafted any rule changes. Scheduled meetings are as follows: Kona
– June 17 (Wednesday) , 6-8:30 p.m., Konawaena Elementary School
cafeteria Maui
– June 18 (Thursday), 5:30-8:30 p.m., Maui Waena School cafeteria
Hilo
-- June 22 (Monday), 6:00-9:00 p.m., County of Hawai‘i Aupuni
Center Kaua‘i – June 26 (Friday) from 6 to 8:30 p.m. at the Kaua‘i Community College, Electronics Technology building, room 114. Recreational and subsistence fishers have developed a preference for the parrotfish family (uhu), with many spearfishers considering them prized catches. Commercial harvesting supplies uhu to various markets throughout the state. Recent changes in uhu commercial harvesting using specialized and highly effective net- and trap-based fisheries operating in deeper water can remove large amounts of uhu. These trends have resulted in increased concern over uhu stocks. Of particular concern is the role of these fish in helping to maintain healthy coral reefs. Parrotfish are the largest grazing fishes on Hawai‘i’s reefs, and play a critical role in controlling seaweed growth and helping to maintain healthy coral reef ecosystems. Scientific information from commercial fisheries and fish survey data for goatfishes (moano kali and weke nono) shows a decline in catch rate over time that correlates with an observed decrease in goatfish abundance. Ulua/papio is another very important species group caught by recreational fishers. The Division of Aquatic Resources plans to hold similar meetings on other islands, and those dates and locations will be announced at a later time. For more information contact DAR offices at: Maui (808) 243-5294; Hilo (808) 974-6201, Kona (808) 327-6226, Kaua‘i (808) 274-3344; Honolulu (808) 587-0100; Moloka‘i/Lana‘i (808) 553-3778. (Report Provided by the State of Hawai'i, Department of Land and Natural Resources) NEWS FLASH - June 15, 2009 9:25 a.m. HST Federal Stimulus-Funded Projects in Hawai'i Begin on Maui Hawai'i's first construction project using federal stimulus money is now under way at Kahului Airport. The $23.8 million project to relocate security equipment started May 15 and will last until mid-2010. While relatively small, the project provides the first indication of how the state will use an estimated $500 million to $950 million in added federal funds that will be pumped into Hawai'i's flagging economy during the next several years. Overall, the American Recovery and Reinvestment Act promises to create or save 15,000 jobs statewide over a two-year period. Most of the money will pay for highways and bridges, transit systems, clean-water projects, public housing improvements and affordable housing. The program also is expected to require unprecedented levels of transparency, oversight and accountability regarding how that money is spent. However, the Kahului Airport project has so far lacked transparency. That's because state officials are still struggling with how to gather and distribute information on how the stimulus money is being spent and the economic benefits being created. "It's not where it needs to be right now," said Mark Anderson, a deputy director at the Department of Business, Economic Development and Tourism that is on a team tracking stimulus spending. "We should have it all at our fingertips, but we're still getting it together." State officials are still waiting for federal officials to finalize reporting rules, which then must be shared with state agencies and contractors, Anderson said. Then various local information systems must be coordinated with the federal www.recovery.gov Web site, which will serve as an information clearinghouse. The goal is to start providing more comprehensive information later this summer. "Eventually we're going to have to be able to reach down into these venders and ask for this information, bring it up through government and send it to the federal recovery.com Web site," Anderson said. "For all the money we've spent, you'll be able to see who got it, what they're spending it for, how many jobs have been created and all of that." JOB TALLY UNCLEAR Just how many jobs Hawai'i's first stimulus construction project will create and how much will be spent on salaries is still unclear. State transportation officials referred those questions to project contractor Bodell Construction Co., which did not return messages. In general, the state estimates that 12.9 jobs will be created for every $1 million of construction spending. In the case of the Kahului Airport project that equates to about 310 jobs — an estimated figure that includes construction and construction-related jobs. Apart from jobs there are social benefits of the Kahului Airport project. "This streamlines (Transportation Security Administration) operations, increases security through newer technologies, and also increases lobby space ... which ultimately contributes to a more positive traveling experience," said state Department of Transportation spokeswoman Tammy Mori, in an e-mail. "It should also improve traffic around the airport as well, because luggage won't stack up on curb-side anymore, since the baggage screening equipment will be relocated." Assessing the economic impact of the Kahului Airport project is made more complicated because many stimulus-funded projects likely would have gone forward even if there were no federal stimulus program in place. To put money to work quickly, the federal government has directed money toward so called "shovel-ready" projects. In many cases those are projects that already had state funding and federal funds. In the case of the Kahului Airport, the stimulus act is providing an estimated $18.5 million that otherwise would have been paid for by the state and Federal Aviation Administration. Another $43 million in federal funds will go toward explosive detection system integration improvements at Honolulu International Airport. O'AHU PROJECTS Federal stimulus funds that supplant state funds free up state money that can be spent on other projects, said state Transportation Department Director Brennon Morioka. "Although these projects did have either federal funds or state funds programmed for the project, the stimulus monies come in and replace those funds and we can then spend those funds on other projects that probably wouldn't have gotten done because of the lack of money," he said. O'ahu's first stimulus-funded construction project will be in West O'ahu, Morioka said. The $1.8 million project will upgrade Farrington Highway and Makakilo separation structures over the H-1 Freeway. The upgrades, which are expected to begin in about a month, will make the structures more resist to earthquake damage. O'ahu's biggest project will be a $24 million South Punalu'u bridge replacement, Morioka said. About $17 million of that money is coming from federal stimulus funds. The project will take about two years to complete and will involve a wide range of construction trade and professional services work, Morioka said. "That's probably our biggest and best project in terms of truly fulfilling the intent of the stimulus bill because we are diversifying the workforce that we're putting back to work," he said. Reach Sean Hao at shao@honoluluadvertiser.com. (Report Provided by The Honolulu Advertiser) NEWS FLASH - June 15, 2009 8:30 a.m. HST DLNR Closes Kula Reserve Access on Weekdays for Improvements
“We are implementing this temporary closure for public safety reasons while we improve access to the Kula state forest reserve,” said Laura H. Thielen, DLNR chairperson. “We ask the public’s patience as we make these improvements.” A culvert will be replaced to minimize heavy rainfall damage to the dirt road and subsequent closures for its repair. This has been a common occurrence in recent wet periods. In addition, there will be asphalt resurfacing of one mile of the access road. A mile of road was paved several months ago. The forest will be open to the public on all weekends beginning at 6 p.m. on Friday to Monday at 6 a.m. during this period. For information call the Division of Forestry and Wildlife at 984-8100. (Report Provided by the State of Hawai'i, Department of Land and Natural Resources) NEWS FLASH - June 15, 2009 8:20 a.m. HST High Surf Advisory for South Shores Continued Through Tonight 1. EVENT: The National Weather Service in Honolulu has CONTINUED the HIGH SURF ADVISORY for SOUTH FACING SHORES of MOLOKAI, LANAI, MAUI AND KAHOOLAWE TODAY effective UNTIL 6:00 p.m. HST MONDAY. A High Surf Advisory means that high surf will affect beaches in the advisory area, producing rip currents and localized beach erosion. 2. EFFECTS: Surf along south facing shores will be 7 to 10 feet today. Forecast surf heights are estimates of the height of the face or front of waves. A high tide of approximately 1.2 feet is expected between 9:34 a.m. and 11:10 a.m. this morning. The next high tide of approximately 1.9 feet is expected between 8:12 p.m. and 9:26 p.m. this evening. 3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS. 4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates. NOAA Weather Broadcasts can be reached by calling 1-866-944-5052. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl. Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov. (Report Provided by Maui County Civil Defense) NEWS FLASH - June 11, 2009 4:40 p.m. HST Hawai'i Health Director Seeks Calm in 'Flu Pandemic' In response to the World Health Organization declaring a swine flu pandemic, Hawaii Health Director Dr. Chiyome Fukino issued this statement today: "The raising of the pandemic alert level by the World Health Organization was not meant to alarm the public or cause undue concern. The situation in Hawai'i at this time remains the same with all cases recovering at home with no complications.
(Report Provided by The Honolulu Star-Bulletin) NEWS FLASH - June 10, 2009 12:30 p.m. HST First Maui Swine Flu Confirmed - State Cases Near 200 The state Department of Health said today it has confirmed 83 new cases of novel H1N1 Influenza A, commonly called swine flu. That brings the total number of confirmed cases in the state to 198. The new breakdown includes the first two cases on Kauai, one on Maui, two on the Big Island and 78 on Oahu. All of the cases have recovered or are recovering at home with no complications, the state said. "The numbers we are seeing are expected and not alarming," state Health Director Chiyome Fukino said in a statement. "The number of cases will continue to rise as we identify more cases due to community transmission. ... To prevent further spread of illness, it is important that people with flu symptoms stay at home, and not expose others." (Report Provided by The Honolulu Star-Bulletin) NEWS FLASH - June 10, 2009 9:55 a.m. HST Honolulu Councilman Duke Bainum Dies Suddenly at 56 Honolulu City Councilman Duke Bainum died suddenly last night in Honolulu after suffering an aneurysm, his office announced this morning. He was 56. “We are deeply saddened to announce that council member Duke Bainum passed away last night at approximately 11 p.m. from complications due to an aneurysm,” a City Council news release said. “We respectfully request that media and well-wishers respect the family’s privacy at this time. Information on a memorial service will be forthcoming.” Members of Bainum’s staff appeared visibly upset as they gathered with Council Chairman Todd Apo to make a brief statement to the media this morning. Mallory Fujitani, Bainum’s senior adviser, said he felt fine at work yesterday and was “having fun chasing his kids around” in the evening. He later experienced chest pains and was taken to the emergency room for treatment, “but couldn’t be revived,” Fujitani said. "There were no prior indications that anything was wrong,” she said, reading from a written statement. “Duke was a dedicated public servant who served his constituents with integrity and passion,” she added. “He will be sorely missed.” Apo said he was informed of the news by one of Bainum’s staff members early today. “We’re all very sadden by the news of Councilmember Bainum’s passing — a very big shock to all of us,” he said. “We all had the honor to work with Duke over the past few months since he returned to the council in January. “I think we’re all dealing with the shock of the news right now.” Mayor Mufi Hannemann, who defeated Bainum in the 2004 mayoral election, issued a statement saying, “Like other members of the city ohana, I was shocked to learn of the untimely death of Duke Bainum. I served with him on the City Council, and we vied for the mayor’s seat in 2004. Throughout it all, I knew him as a man with a heartfelt desire to help others. In his work as a member of the Honolulu City Council, Duke was a dedicated public servant and a strong voice for those he represented. “I join everyone in the City and County of Honolulu in offering our condolences to his wife Jennifer and children, as well as to the Bainum family.” Bainum, a retired physician, served four years in the state House of Representatives, from 1990-94, and eight years on the Honolulu City Council, from 1994-2002. He returned to the City Council after being elected to represent District 5 (McCully-Kaimuki) last year, replacing Ann Kobayashi who resigned to run against Hannemann. Brian Schatz, chairman of the Democratic Party of Hawaii, said, “We are all shocked and deeply saddened to hear of the passing away of Councilmember Duke Bainum. Duke was an honest and hardworking public servant, always simultaneously friendly and earnest. He will be missed by us all.” Bainum was also managing director of the holding company for Diamond Bank of Murfreesboro in Arkansas. Mark Edmund Bainum was born on July 21, 1952, in Maryland, the younger of two sons of Irvin and Evea Bainum. He grew up in Arkansas where his father was a banker. He received his medical degree from the University of Maryland School of Medicine, in 1980, and served his surgical residency at the University of Hawaii from 1980-82. He also attended the Western Regional Banking School in 2000, and the UH Public Administration program in 1989-1990. Bainum made his nickname “Duke” part of his legal name in 1987. He married Hilo native Jennifer Ann Harumi Toma on Feb. 14, 2004. Each was married twice previously. He is survived by his brother, Tim Bainum, their mother, Evea Bainum, wife Jennifer and two sons, Z and Kona.< | |||||||||||||||
