Ala Wai harbor users want
conditions on privatization

They are asking the Land Board
to amend its current proposal

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By Diana Leone
dleone@starbulletin.com

A group of Ala Wai Small Boat Harbor users and neighbors say any private contractor chosen to run the harbor should first meet a list of conditions to ensure that the state gets the most out of privatization.

The issue will be before the Board of Land & Natural Resources this afternoon at an informal question-and-answer session at the harbor and at its regular meeting tomorrow morning.

An ad hoc committee representing Ala Wai harbor users and neighbors developed a list of conditions it thinks any private firm operating the harbor must address to gain a contract with the state. They include:

>> Specifying that the Ala Wai privatization lease will improve the operation, management and capital facilities of the harbor and maximize revenue for the state's boating fund, which in turn will provide for renovation of nonprivatized state boating facilities.

>> Require that annual rent for the Ala Wai be at fair market value and that the lease rent may not be waived or reduced as a way to reimburse the contractor for its capital investment in the property.

These "fundamental conditions" were agreed to by all committee members except the state boating division representative, said Bill Mossman, a member of the ad hoc committee and Ocean Users Coalition of Hawaii, a statewide coalition of boaters.

Mossman said the committee wants the board to amend the plan for privatization that it adopted Dec. 14 with these and other requirements.

Mossman said his reading of the un-amended plan could conceivably allow a private harbor operator to deduct so much of the cost of improvements to the harbor from its lease payments to the state that the state boating fund might not get any income. That, he said, would completely defeat the alleged purpose of privatization: to provide more and better services to the state's boaters at a lower cost.

The state has estimated that needed harbor repairs statewide could cost $250 million.

The Land Board, including two new members, will tour the Ala Wai Harbor at 5 p.m. with members of the DLNR's boating division staff and the ad hoc committee. Then the two groups will meet at the Hawaii Yacht Club for a question-and-answer session.

Members of the Land Board cannot deliberate toward a decision on whether to incorporate the ad hoc committee's suggestions until their regular meeting at 9 a.m. in the boardroom of the Kalanimoku Building, 1151 Punchbowl St.

Mason Young, acting director of the DLNR's boating division, said that although the ad hoc committee's report will not be given to the Land Board until today, members have been provided minutes of committee meetings and are aware of its recommendations. He would not speculate on whether the board will act on the formal recommendations tomorrow or take them under advisement.

Young's recommendation to the board is to require that a potential contractor have experience managing a harbor with 1,000 or more slips.

When the Land Board has approved the parameters of a privatization contract, it will advertise for requests for proposals.