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Resort looks to
settle water finesKaluakoi on Molokai has not
By Gary T. Kubota
met federal standards
Maui correspondentWAILUKU -- A resort on Molokai is negotiating with the state to settle potential penalties and fines totaling about $50 million for alleged sewage and drinking water violations.
If not resolved, the owner of the Kaluakoi resort and state officials will present their arguments about alleged sewage violations at an administrative hearing tentatively scheduled on May 17 on Molokai.
A hearing officer would make recommendations to state Health Director Bruce Anderson after the close of the proceedings.
"At this time, it looks like we're going to have a hearing," said Gary Gill, the state deputy director for environmental health.
State Deputy Attorney General Jessica Wooley said the drinking water violations with potential fines of close to $10 million will not be a part of the hearing because an order for compliance has already been issued by Anderson.
The resort, owned by Kukui (Molokai) Inc., serves a golf course, hotel, two condominiums and several residences.
It has been in violation of federal drinking water standards since 1993 and sewage standards since 1989, state officials allege.
Kukui (Molokai) Inc. planned to build a 9-mile pipeline from central Molokai to the resort but stopped in 1994 because of legal disputes.
Gill said the resort is motivated to resolve the violations so that it can clear off liabilities prior to a sale. He declined to discuss the details.
Asked if the drinking water was safe, Gill said the resort is providing drinking water that is more susceptible to contamination than water treated under modern standards.
He said state officials have corresponded a great deal to try to get Kukui to invest in improvements.
"They have continually failed to do so and continually asked for more time," Gill said.
"Over the past decade, drinking water standards have become more stringent, and the resort has not invested to upgrade their water supply."
Gill said the drinking water is being filtered and treated with chemicals, and the fines stem from the resort's failure to treat drinking water to new federal standards.
He said the resort has also failed to maintain and properly monitor the waste-water treatment plant.
Kaluakoi officials have stopped irrigating the golf course with treated sewage water pumped from an enclosed lagoon. The treated sewage is now put into drying beds.
"Essentially, they have a very old facility, and they've had problems meeting the standards for treatment," said Wooley.
She said negotiations are focusing on the penalties and fines as well as the nature of the corrective work.
Scott MacKinnon, the attorney representing Kaluakoi, confirmed that the company was negotiating a settlement but declined to discuss the details. MacKinnon also declined to comment on whether the resort had a buyer.
