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FOR IMMEDIATE RELEASE                            October 27, 2006

Release No. M-108-06

 

 

CITY REACHES AGREEMENT

ON LAIE WASTEWATER SYSTEM ACQUISITION

 

            Mayor Mufi Hannemann today announced the City has reached agreement with Hawaii Reserves Inc., to acquire the Laie wastewater system from the private company, ending a decade of negotiations.

            Once the City Council approves the property and title transfer, the City will acquire and operate the wastewater system that serves more than 400 homes in Laie. The system includes the Laie Water Reclamation Facility, which treats wastewater from the community to stringent tertiary standards and was built by Hawaii Reserves for $20 million.

            “This agreement is another example of a successful public-private partnership negotiated by our Administration,” said Mayor Mufi Hannemann. “I remember dealing with the first stages of the Laie wastewater improvements back in 1995, when I was chairman of the City Council Planning Committee. This agreement is a win-win outcome that will give the City a modern wastewater treatment and collection system in a community that was once served primarily by cesspools.” 

            R. Eric Beaver, President and Chief Executive Officer of HRI, is pleased with the City’s cooperation over the years, and is in full agreement that this is a win-win for HRI, the City, the community and the environment.

            Hawaii Reserves manages or owns more than 6,000 acres of land in Laie for the Church of Jesus Christ of Latter-day Saints, which acquired most of the historic village and its environs in 1865.  The company provides water supply, wastewater and road maintenance services, among other things, and has been negotiating for the transfer of wastewater services with the City since the mid-1990s.

            By the time the transfer is done, Hawaii Reserves will have spent more than $31 million and the City will have spent more than $13 million on the Laie wastewater collection and treatment system.  Because of Hawaii Reserves’ involvement and investment, the City estimates that eventually over 600 homes in Laie will be sewered, using a low-pressure collection system that is new to Hawaii.  After the operational transfer of the existing system, Laie homeowners on the system will pay City sewer fees like all other City sewer users.

            City Environmental Services Director Eric Takamura said the City’s acquisition of the Laie system will take the City a step closer toward the long-term goal of bringing municipal sewer service to all Oahu communities. The North Shore and most of Windward Oahu between Kahaluu and Laie are still served by cesspools.



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Media contacts:

            Eric Takamura, Director of Environmental Services, 692-5159

            Carrie Okinaga, Corporation Counsel, 523-4115

 

Friday, October 27, 2006

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