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Wednesday, January 24, 2001



Big Isle farmers fear
effects of water rate hike


By Rod Thompson
Star-Bulletin

HILO -- The struggling east Hawaii economy will be hurt by a proposed increase in county agricultural water rates, say Big Island farmers.

"We have the solution to take east Hawaii out of the economic doldrums. Increasing the rates for water is not going to help that effort," foliage grower Pat McGrath told the Hawaii County water board yesterday.

The board yesterday postponed a decision on an increase for a second time in the face of farmer opposition.

County water manager Milton Pavao says increases are needed to pay for $60 million in repairs, new facilities and federally mandated changes.

The U.S. Environmental Protection Agency is requiring the department to abandon surface water sources and to obtain water from costly new wells, Pavao said. Other projects include the replacement of rusty old water tanks.

There seems to be no major disagreement over a rate hike for homes. A typical monthly residential bill would go from $26.25 now to $36.40 in two years.

For a farmer using 100,000 gallons per month from a small water line, the jump would be from $198.75 now to $297.50 in three years. Rates producing a high of $307.50 and a low of $237.50 are also being considered.

Bills could rise to thousands of dollars per month for larger users.

Flower grower Paul Charbonneau told the commission Hawaii growers have an advantage in mainland markets now because of better quality than flowers from Mexico and South America. But he warned, "The competition is getting better and their costs are substantially lower."

Orchard grower Susan Hamilton said water restrictions placed by the county during droughts, such as the present one, mean she has to choose between allowing a block of rambutans to die or laying off workers.

Dendrobium grower Leland Anderson said his water usage is so carefully computer-controlled that he has to tell his employees when they can flush a toilet.

A rate increase will impose another 10 percent on the cost of doing business, he said.

Several people said they applied for cheaper agricultural rates but were turned down. Hamilton said she applied three times in a decade.

Papaya grower Rusty Perry said the study on which the rate hike is based underestimates the number of agricultural users because so many can't get agricultural rates.

Water board member John Clark called the study flawed and said the present practice is to "don't ask, don't tell" if someone is using water for agriculture.



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