The advisory that people should not “look a gift horse in the mouth” is well known. But what Hawaii taxpayers should contemplate is this question: Is the Wahiawa Dam and reservoir simply a gift to the state?
The answer is plainly “no,” when it’s considered that the water system’s private owners are relinquishing an asset that has not been kept up optimally, and are benefiting from the state’s intent to assume that liability.
The enactment of Senate Bill 833 is, on balance, a necessary effort to keep the reservoir, dam and associated irrigation network accessible to farmers engaged, or hoping to engage, in sustainable agriculture. The unresolved issue is, how much will it cost the state to seal the deal?
That’s because, while final terms are yet to be negotiated, Dole Food Co. Hawaii, the principal owner that first listed the property for sale, has indicated its willingness to turn the system over to the state, in exchange for fulfilling its own water needs free of charge.
Gov. Josh Green needs to head up the talk to finalize the acquisition and drive a hard bargain. In particular, Dole has derived revenue from delivering water for agricultural use to about 50 farms, so likewise, the state should not be giving water to Dole and others at no gain.
In addition, lawmakers had to appropriate $21 million for repairs to be undertaken by the state Department of Land and Natural Resources. And $5 million is for the state to acquire the spillway property now owned by Sustainable Hawaii Inc.
Both Dole and Sustainable Hawaii will benefit from the state taking over the duty to maintain dam safety standards and the liability for damages, injury and loss of life from a catastrophic failure.
For the many people who remember the Ka Loko Reservoir dam failure in 2006, that hazard is painfully real. Seven people were killed on Kauai when the walls of that dam gave way under strain from 40 days of rain.
An investigation followed, culminating in a report the following year concluding that the lack of maintenance by owner James Pflueger was the cause. Pflueger, a prominent car dealer, pleaded no contest to reckless endangering and served a seven-month jail term.
Another scare in 2018 occurred when the Nuuanu Reservoir nearly overtopped following Tropical Storm Olivia.
Especially now that climate change has factored into more frequent and intense storms, the state is shouldering something substantial by taking over the Wahiawa Dam and reservoir system. With the appropriation of millions for upgrades that Dole should have done itself, that should have been the extent of the state’s outlay.
SB 833 had wide support, however, from DLNR and the Department of Agriculture, and from industry representatives such as the Hawaii Farm Bureau.
“We can’t afford to lose this critical agricultural water source,” the farm bureau asserted in written testimony. “No farming entity can afford the $20 million listed price. We are concerned about the potential impact on farmers if a private individual or entity purchases the system.”
Little argument there. This is a critical acquisition. The new law to enable it was written with an “out” clause, language that would repeal it should the acquisition fail to complete by June 30, 2026.
It would have been better had the state been able to enforce standards and assess fines when standards weren’t met. Officials did try to do that. However, there’s some leverage for the state in that this deal has an expiration date.
Once the acquisition is finalized and the upgrades are made, it falls to the state, through the state Agribusiness Development Corp., to maximize the system’s use to power agricultural growth. That was the stated aim of SB 833, from the start.
