High Surf Expected Along North Shores Through the Night

1. EVENT: The National Weather Service in Honolulu has continued the HIGH SURF ADVISORY for NORTH FACING SHORES of MOLOKAI and MAUI, in effect until 6:00 a.m. THURSDAY.

A High Surf Advisory means that high surf will affect beaches in the advisory area, producing large breaking waves, dangerous rip currents and localized beach erosion.

2. EFFECTS: A new northwest swell arriving early today will maintain surf near advisory levels through tonight.

Breaking waves will be near 15 feet along north facing shores of Molokai and Maui.

Surf heights will peak late Wednesday and then gradually subside early Thursday.

Forecast surf heights are estimates of the height of the face or front of waves.

A high tide of approximately 2.7 feet is expected between 3:06 a.m. and 4:24 a.m. tomorrow morning. The next high tide of approximately 1.7 feet is expected between 2:37 p.m. and 3:55 p.m. tomorrow afternoon.

3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS.

4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates.

NOAA Weather Broadcasts can be reached by calling 1-866-944-5025. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl.

Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov.

(Report Provided by Maui County Civil Defense)

(Back to Top)

NEWS FLASH - February 2, 2011 2:30 p.m. HST

Moloka'i Health Center Receives $500,000

Gov. Neil Abercrombie will release $500,000 to restart construction on an expansion project for Molokai Community Health Center, which halted the project on Friday due to lack of funds.

The money, which is half the amount appropriated in the 2009 Legislature, will be released within the upcoming months, according to Donalyn Dela Cruz, Abercrombie's press secretary.

"This will carry them for eight to 12 months," she said. "In the meantime, the state Department of Health will facilitate a comprehensive medical plan so there's no overlapping of services (with Molokai General Hospital). Once the plan is complete, we will then release the remainder of funds."

The health center said it stopped construction because the previous administration failed to release $1 million needed to complete three phases of the center. The $500,000 will allow the center to complete just the first phase.

The federally-qualified health center plans to build an Oceanside Health and Wellness Center at the former Pau Hana Inn site.

Renovations of the facility started last July.

(Report Provided by the Honolulu Star-Advertiser)

(Back to Top)

NEWS FLASH - February 2, 2011 12:30 p.m. HST

MECO Investigates Problem While Power Comes Back On

At 10:43 AM, an electrical load shed occurred when a generating unit at MECO’s Maalaea Power Plant tripped offline. Approximately 10000 customers were affected in parts of Lahaina, Wailuku, Waiehu, Pukalani, Paia, Spreckelsville, Kuau, Haiku and Hana.

Power was restored to the majority of customers within 7 to 12 minutes. Remaining customers were brought back on line shortly after 11:00 AM.

The cause of the unit tripping offline is under investigation.

(Report Provided by Maui Electric Company)

(Back to Top)

NEWS FLASH - February 2, 2011 11:10 a.m. HST

MECO Problem Cuts Power in West Maui, Upcountry

Maui Electric experienced problems with its electrical system at approximately 10:43 AM today that affected power to customers in areas of Lahaina, Wailuku, Waiehu, Specklesville, Paia, Pukalani, and Makawao.

MECO is in the process of restoring power. An update will be provided at 11:30 or earlier if possible.

MECO apologizes for the inconvenience and thanks the public for their patience.

(Report Provided by Maui Electric Company)

(Back to Top)

NEWS FLASH - February 2, 2011 7:10 a.m. HST

Hawaiian Airlines' Profits Double

Hawaiian Airlines' parent, which is targeting Asia for growth, doubled its earnings in the October-December quarter as increased seating capacity, nonrecurring tax adjustments and opportunistic fuel hedging helped the state's largest carrier post its 11th straight profitable quarter.

In a quarter that featured profits by nearly all U.S. carriers, Hawaiian Holdings Inc. continued the trend with net income that surged 101.5 percent to $70.6 million, or $1.36 a share, from $35 million, or 66 cents a share, a year ago.

"These fourth-quarter results round out another good year for Hawaiian Airlines," said President and CEO Mark Dunkerley of the carrier's third straight profitable year. "In 2010 our strong financial performance enabled us to start service on two new international routes (to Japan and South Korea), take delivery of the first three of 16 new Airbus wide-body aircraft and replace our expiring credit facilities on favorable terms. At the start of 2011, we are well positioned to continue to grow into the rapidly developing travel market in Asia."

Dunkerley said Hawaiian will add service to another yet-to-be-named city later this year. Chief Financial Officer Peter Ingram said last month that Hawaiian likely will announce another flight to Asia, most likely to Japan.

"These new services (to Tokyo and South Korea) are the beginning of what we anticipate will be a broader expansion of our business westward over the next several years," he said. "Our focus on adding the service between Asia and Hawaii is simply explained: Asia is where the growth is. Our service to Tokyo positions us in Hawaii's most significant international source of visitors and lays the foundation for further expansion in Japan."

Hawaiian's fourth-quarter earnings benefited from $56.9 million in nonrecurring tax benefits. Hawaiian had a similar benefit of $25 million in the fourth quarter of 2009. Hawaiian also benefited from $2.4 million in unrealized gains from fuel hedging or locking in oil prices before they rose higher. Hawaiian's fuel-hedging benefit in the year-earlier quarter was $436,000.

Despite the hedging, aircraft fuel costs last quarter rose 27 percent to $89.7 million from $70.6 million in the year-earlier period and represented 29.7 percent of operating expenses.

Excluding the tax benefits and fuel hedging, Hawaiian's net income increased 7.7 percent to $11.3 million, or 21 cents a share, versus $10.5 million, or 20 cents a share, from the year-ago period. Analysts were expecting 18 cents a share. Revenue jumped 15.7 percent to $343.8 million from $297 million as seating capacity increased 11.7 percent.

Hawaiian's stock rose 24 cents yesterday, or 3.25 percent, to $7.63. The earnings were released after the market closed.

Analyst Bob McAdoo of Avondale Partners LLC said it was another solid quarter for Hawaiian.

"It's a reflection on management that this is a company that continues to be profitable and make good money when they're getting more and more competition from the mainland like from Alaska, Continental and other guys," McAdoo said. "They're making money not because Aloha and ATA disappeared (in the spring of 2008), but because they're able to compete with the legacy carriers coming up from the mainland. ... They're making money because they're running a good business."

Reach Dave Segal at dsegal@staradvertiser.com.

(Report Provided by the Honolulu Star-Advertiser)

(Back to Top)

Inouye Agrees to A Ban on 'Earmarks' for Two Years

Hawaii programs that depend on hundreds of millions of congressional dollars are in jeopardy after U.S. Sen. Daniel Inouye said yesterday he would ban "earmarks" for the next two years.

The moratorium on earmarks, provisions directed by members of Congress to specific projects, could mean job losses, cut programs and military construction projects that might never see the light of day.

Inouye chairs the powerful Senate Appropriations Committee and has brought in much of the federal earmark money flowing into the islands. He is perhaps the most outspoken defender of earmarks, and has often been dubbed the unapologetic "king" of earmarks and pork-barrel spending.

Inouye's announcement follows President Barack Obama's pledge during his State of the Union address to veto any bill containing earmarks.

"The handwriting is clearly on the wall," Inouye said. "Given the reality before us, it makes no sense to accept earmark requests that have no chance of being enacted into law."

In December the U.S. Senate abandoned a $1.3 trillion appropriations bill, laden with about $321 million earmarked for Hawaii projects. In the meantime there is a continuing resolution that funds the federal government, but that expires March 4.

Inouye said the Appropriations Committee will review its earmark policy to ensure that every member in Congress has "a precise definition of what constitutes an earmark."

It is those words that officials at the East-West Center are hanging their hopes on.

The appropriations bill laid out $23.1 million for the internationally recognized think tank, more than a third of the center's annual budget. The center receives about $10 million from private grants and contracts.

Karen Knudsen, the center's director of external affairs, said that appropriation is a plus-up, or a change in the president's budget by Congress.

"We are part of the executive budget," Knudsen said. "There's reason to believe that we're not an earmark in the traditional sense."

Without the money, Knudsen said the center would have to review its fundraising strategy as well as its current programs and obligations.

Inouye said the Appropriations Committee will revisit the earmarks issue next year "when the consequences of this decision are fully understood by the members of this body."

"At the appropriate time, I will once again urge the Senate to consider a transparent and fair earmark process that protects our rights as legislators to answer the petitions of our constituents, regardless of what the president or some federal bureaucrat thinks is right," Inouye said.

Knudsen said earmarks are an opportunity to help their respective communities because they are the ones who know what is needed.

"Yes, there are some earmarks we can joke about," Knudsen said, "but there are others that have made a significant difference in their community. ... Let's be careful before we make these broad statements."

Inouye's move won faint praise from Hawaii Republican Party Chairman Jonah Kaauwai, who said earmarking has created a culture of special-interest corruption.

"The King of Pork's years of earmarking have left Hawaii unnecessarily dependent on federal government handouts," Kaauwai said. "I believe that Hawaii's people want to and can be self-sustaining, and this is a positive first step toward standing on our own two feet and getting our nation out of debt."

Kaauwai acknowledged that the earmark ban will have a serious impact on construction and trades industries that depend on military contracts funded by earmarks, like $9 million for a new fire station at West Loch in Pearl Harbor.

Another project includes construction of a proposed U.S. Coast Guard Command and Interagency Operations Center. The abandoned appropriations bill was to give $18.1 million — among the larger earmarks — for the center, which would be a centralized location for local and federal agencies to work with the Coast Guard.

When asked what the Coast Guard would do if the funding does not arrive, Coast Guard Sector Hono-lulu spokesman Lt. Gene Maestas said he would not speculate on what might happen.

"What I can tell you is that we do have an interagency command center that was established at Coast Guard Sector Hampton Roads in Virginia," Maestas said. "I worked with that command center. I can tell you, having agency partners in one facility did speed up the execution and prosecution of cases because the information-sharing was immediate. It allowed you to make very quick decisions."

Without the earmarks, it also could mean that 30 of the 36 Hawaii National Guard anti-drug personnel will lose their jobs. Guard public affairs director Lt. Col. Chuck Anthony said they are now trying to reassign soldiers and airmen out of the program.

"We've been kind of planning for such a possibility as this, so we have been instituting different policies within counterdrug, trying to minimize the impact," Anthony said. The Guard also implemented a new policy limiting personnel to no more than five years in the program.

The counterdrug program augments local law enforcement efforts to pursue drug producers and traffickers. Sometimes the Guard would provide helicopters to conduct surveillance, or provide infrared equipment to identify drug houses.

"We've always known that much of the funding is dependent on year-to-year earmarks, and just reading the tea leaves, we know we had to prepare," Anthony said.

The Boys and Girls Club of Hawaii was looking forward to $1.5 million for its rural community outreach program. Executive Director David Nakada said the money would have been used for programs to teach children how to shoot video as a means to shrink isolation in rural communities.

The program began in Maui and Kauai, and the money would have gone toward expanding it to Big Island communities.

"There's obviously going to be some cutbacks for those who have been subrecipients of the grant," Nakada said. "We like to hope that there is enough staying power in the program that it'll last beyond the funding."

The University of Hawaii system was to see about $4.95 million for a number of purposes, including clinical pharmacy training, and occupational safety and health research.

University spokeswoman Kristen Bonilla said the administration is assessing the situation and does not yet know what the impact will be if the funding is not received.

"When we do know more details, we will brief our Board of Regents on the situation," Bonilla said.

Reach Gene Park at gpark@staradvertiser.com.

(Report Provided by the Honolulu Star-Advertiser)

(Back to Top)

Congresswoman Hirono Announces 2011 Nominees to U.S. Service Academies

Oahu, Hawaii – Congresswoman Mazie K. Hirono (D-Hawaii) today announced her nomination list of 32 students, who live in Hawaii’s 2nd Congressional District, to the U.S. military service academies for the class entering in the fall of 2011. The students’ applications are now being considered by the four academies for final selections.

“This list of nominees represents some of our brightest leaders of tomorrow. I would like to commend these young women and men for the years of study, hard work, and dedication they have already demonstrated in pursuing their goal of attending one of our nation’s military academies,” said Congresswoman Hirono. “They are all highly-qualified.”

The four American service academies are the U.S. Air Force Academy, the U.S. Military Academy, the U.S. Naval Academy, and the U.S. Merchant Marine Academy.

Each year, U.S. Representatives and Senators make nominations to the four service academies. Each academy administrator then selects from the submitted lists. To be eligible for nomination, each student has submitted an application and references, and met certain scholastic requirements. Nomination does not guarantee appointment
Congresswoman Hirono 2011 Academy Nominations (Maui County Nominees are noted in bold print):

U.S. Air Force Academy

• Jershon Baldomero (Kailua, O‘ahu), ‘Iolani School
• Rosebel Belong (Kapolei, O‘ahu), Kapolei High School
• Jacob Butters (Kailua, O‘ahu), ‘Iolani School
• Josianne Cabalce-Hotchkiss (Hilo, Hawai‘i Island), Hilo High School
• Madeline Compagnoni (Kailua, O‘ahu), Kalaheo High School
• Daniel Cook (Kamuela, Hawai‘i Island), Hawai‘i Preparatory Academy
• Edward Franco (Makawao, Maui), Kamehameha Schools – Maui
• Anthony Genco (Kailua, O‘ahu), ‘Iolani School
• Joseph Kekedi (Kea‘au, Hawai‘i Island), Christian Liberty Academy
• Lincoln Liesmeyer (Kailua, O‘ahu), Punahou School
• Evan Matsuyama (Honaunau, Hawai‘i Island), Kealakehe High School
• Malia Pearson (Kane‘ohe, O‘ahu), Kailua High School
• Jez-Arvin Queja Ramil (Kihei, Maui), Maui High School
• Geoffrey Whitener (Kailua-Kona, Hawai‘i Island), Kealakehe High School

U.S. Military Academy at West Point

• Thomas Adams (Wahiawa, O‘ahu), Leilehua High School
• Daison Batangan (Kapolei, O‘ahu), Damien Memorial School
• Jacob Butters (Kailua, O‘ahu), ‘Iolani School
• Jazmine Camp (Kea‘au, Hawai‘i Island), Waiakea High School
• Justin Hirae (Hilo, Hawai‘i Island), Kamehameha Schools – Hawai‘i
• Kendra Ishida (Kalaheo, Kaua‘i), Waimea High School, Kaua‘i C.C.
• Peter Joyce (Waimea, Kaua‘i), Waimea High School
• Justin Lowe (Kapolei, O‘ahu), Kamehameha Schools – Kapalama
• Evan Matsuyama (Honaunau, Hawai‘i Island), Kealakehe High School
• Rey Molina (Kihei, Maui), Maui High School
• Mitchell Richmond (Kailua, O‘ahu), Punahou School
• Solomon Wechsler (Kailua, O‘ahu), ‘Iolani School

U.S. Naval Academy

• Alec Geilfuss (Kailua, O‘ahu), Punahou School
• Justin Hirae (Hilo, Hawai‘i Island), Kamehameha Schools – Hawai‘i
• Emilio Jaramillo (Kailua-Kona, Hawai‘i Island), Hualalai Academy
• Zachary Mossman (Kailua, O‘ahu), Home School
• Kaikea Nakachi (Waikoloa, Hawai‘i Island), Hawai‘i Preparatory Academy
• Dane Oshiro (Kula, Maui), Maui High School
• Timothy Wong (Kane‘ohe, O‘ahu), Hawai‘i Baptist Academy

U.S. Merchant Marine Academy

• Katrina Dreier (Lihu‘e, Kaua‘i), Kamehameha Schools – Kapalama
• Jerick Sablan (Kailua, O‘ahu), Damien Memorial School

(Report Provided by the Office of U.S. Representative Mazie K. Hirono)

(Back to Top)

Governor Seeks Applicants to Fill BOE Vacancy

Honolulu – Governor Neil Abercrombie is accepting applications now to fill one seat on the state Board of Education (BOE) vacated by Lei Ahu Isa, Ph. D. Applicants are encouraged to apply now through the Governor’s website, http://hawaii.gov/gov.

“We want to maximize outreach to the people of Hawaii to get the most qualified applicants and give them the opportunity to serve and advance our public education system,” Governor Abercrombie said.

This will be Governor Abercrombie’s first appointment to the BOE. In November 2010, Hawai‘i voters approved a Constitutional Amendment that gives the Governor the authority to appoint members of the BOE. The state Legislature is discussing legislation specifying the appointment process.

“It is my intention to replace Dr. Isa with a member who will continue serving on the Board of Education for the long term,” added Governor Abercrombie. “We need board members who will be independent, bring diverse perspectives, and stand up for what is right for our children. They need to work as a team and put the interests of the children first to restore trust of parents, policymakers, educators and the public.”

BOE members oversee the Department of Education (DOE), one of the state’s largest employers, with more workers than the state’s five largest private sector employers combined. Governor Abercrombie is looking for talented and dedicated leaders who care about our children’s education and the future of Hawaii. He will appoint individuals with skills, talent and experience related to governing an organization of DOE’s size and complexity including those who have led large or complex businesses, public agencies or non-profit organizations.

Dr. Isa, an Oahu at-large member elected in 2004, resigned on January 25, 2011. According to state law, the Governor appoints a replacement when there is a vacancy on the BOE.

The Governor’s Office is receiving applications from prospective BOE members and from those interested in serving on the 150 boards and commissions appointed by the Governor. Interested applicants for the BOE are encouraged to continue to apply to the website even after Governor Abercrombie makes his first appointment.

(Report Provided by the Office of Gov. Neil Abercrombie)

(Back to Top)

NEWS FLASH - February 1, 2011 1:40 p.m. HST

Pasha To Begin Interisland Service Feb. 15

The monopoly in Hawaii's interisland shipping market is scheduled to end in two weeks with the start of limited service by Pasha Hawaii Transport Lines LLC.

Pasha announced today that it will begin one-way, biweekly service on Feb. 15 from Honolulu to Kahului and Hilo.

"Our company is proud to deliver on a promise made to our customers to offer interisland services," George Pasha IV, chief executive officer of Pasha Hawaii, said in a statement.

The company received approval in September from the state Public Utilities Commission for the service over the objections of the state's sole interisland ocean cargo transportation firm Young Brothers Ltd.

The PUC is allowing a sort of test for the Pasha service, which it could terminate if results of the operation produce substantial harm to businesses and consumers.

Young Bros. has argued that Pasha will skim a portion of more profitable service that forces the incumbent carrier to raise rates and possibly reduce service.

Young Bros. applied to the PUC in December for an average rate increase of 24 percent, of which 6 percentage points it said is needed to counter anticipated revenue losses created by Pasha.

Pasha's service will be the first time since statehood that shipping between Hawaiian islands is open to competition. But the new service is limited.

Young Bros. operates 12 weekly round-trip routes carrying a wide variety of goods between Honolulu and neighbor island ports. The breakdown of Young Bros. port calls is two for Hilo, two for Kona, two for Kauai, three for Maui, two for Molokai and one for Lanai.

Pasha will use its 579-foot roll-on, roll-off cargo ship, the Jean Anne, which is limited to carrying items that can be driven onto the ship's 10 enclosed decks. Livestock and refrigerated cargo won't be carried.

No stops will be made on Molokai or Lanai because the harbors there are too small for Pasha's ship. Pasha said it will make special stops at Kauai's Nawiliwili Harbor based on customer needs.

Pasha already transports cargo on the Jean Anne from San Diego to Honolulu, Kahului and Hilo, but is prohibited from picking up and delivering cargo between Hawaii ports.

The new service will allow Pasha to pick up cargo in Honolulu and deliver it to other Hawaii ports. Pasha also can pick up cargo at the other Hawaii ports, though its ship will sail to San Diego after Hilo.

Pasha said it could seek future route adjustments depending on customer needs.

The California-based company said customer requests were the reason it sought to launch interisland service.

"Since the inception of our mainland service (in 2005), Pasha Hawaii has been approached by many of our clients to offer specialized interisland services not available through other carriers," said Reggie Maldonado, Pasha's general manager in Hawaii.

Reach Andrew Gomes at agomes@staradvertiser.com.

(Report Provided by the Honolulu Star-Advertiser)

(Back to Top)

Kaupakalua Road Reopened to Traffic

A traffic accident that closed Kaupakalua Road in Upcountry Maui last night resulted in a toppled utility pole.

Maui Police report that Kaupakalua Road is now open in both directions. Maui Electric Company crews are still working on the lines, so motorists can expect delays between Kokomo Road and Pu'uomalei.

No word on the cause of the accident or the extent of any injuries.

(Report Provided by the Maui Police Department)

(Back to Top)

NEWS FLASH - February 1, 2011 11:35 a.m. HST Live Snake Captured on O'ahu
HONOLULU – A live snake was captured in Waipahu on Sunday (Jan. 30) by inspectors from the Hawaii Department of Agriculture, with the help of several citizens and the Honolulu Police Department. The snake has been identified by herpetology staff at the Honolulu Zoo as a male non-venomous black rat snake (Elaphe obsoleta), which measured four-feet, four-inches long. Several individuals spotted the snake slittering into a hole in a concrete barrier across from the Honolulu City & County Refuse Convenience Center on Waipahu Depot Road at about noon on Sunday. Police were called to the scene and called the Pest Hotline. Two agriculture inspectors were sent to the site as police officers and witnesses kept an eye on the area. Inspectors used a car jack to lift one of the barriers and were able to coax the snake out of the barrier. One of the witnesses helped hold a net over a hole in the concrete barrier as inspectors prodded the snake and it eventually came out of the hole and into the net.	SLITHERING ALIEN - This four-foot rat snake was captured Sunday in Waipahu, O'ahu. (Photo Courtest HDOA)
“We appreciate the help from the citizens and police in this capture,” said Russell S. Kokubun, Interim Chairperson for the Hawaii Board of Agriculture. “It is rare that a sighting results in an actual capture of a snake in the wild. “Snakes are at the top of the list of invasive species threatening our islands and we need everyone’s help to protect Hawaii,” added Kokubun. - more - Black rat snakes are native to North America and may grow to about seven feet in length. As the name implies, it is black in color except for a white-colored chin. They are in the constrictor family and are excellent swimmers. Snakes have no natural predators in Hawai`i and pose a serious threat to Hawaii's environment. Many species also prey on birds and their eggs, increasing the threat to endangered native birds. Large snakes can also be a danger to the public and small pets. Individuals who have illegal animals are encouraged to turn them in under the State's amnesty program, which provides immunity from prosecution. Illegal animals may be turned in to any HDOA Office, Honolulu Zoo or any Humane Society - no questions asked and no fines assessed. Anyone with information on illegal animals should call the toll-free PEST HOTLINE at 643-PEST (7378). (Report Provided by the State of Hawai'i, Department of Agriculture) (Back to Top)

NEWS FLASH - February 1, 2011 11:15 a.m. HST

High Surf Coming to North, West Shores of Maui, Moloka'i

1. EVENT: The National Weather Service in Honolulu has ISSUED a HIGH SURF ADVISORY for NORTH AND WEST FACING SHORES of MOLOKAI and NORTH FACING SHORES of MAUI in effect until 6:00 a.m. WEDNESDAY.

A High Surf Advisory means that high surf will affect beaches in the advisory area, producing large breaking waves, dangerous rip currents and localized beach erosion.

2. EFFECTS: Surf heights will be 14 to 18 feet along north facing shores of Molokai and Maui. The surf will be 8 to 12 feet along west facing shores of Molokai.

Surf heights will gradually subside later today and tonight.

Forecast surf heights are estimates of the height of the face or front of waves.

A high tide of approximately 1.4 feet is expected between 1:26 p.m. and 2:44 p.m. this afternoon. The next high tide of approximately 2.7 feet is expected between 2:42 a.m. and 4:00 a.m. tomorrow morning.

3. PRECAUTIONARY MEASURES: BEACH GOERS ARE URGED TO STAY OUT OF THE WATER AND WELL AWAY FROM THE SHORE BREAK DUE TO THE HAZARDOUS WAVE ACTION AND STRONG RIP CURRENTS.

4. INFORMATION: Maui County Civil Defense will continue to monitor the situation. Please listen to your local radio and TV stations or NOAA Weather Radio broadcasts for any updates.

NOAA Weather Broadcasts can be reached by calling 1-866-944-5025. NOAA Weather Internet services can be found at www.prh.noaa.gov/hnl.

Pre-recorded advisories and notifications are available 24-hours a day on the Maui County Automated Information System (AIS) by calling 986-1200. The same information is available on the Maui County website at www.mauicounty.gov.

(Report Provided by Maui County Civil Defense)

(Back to Top)

---

NEWS FLASH - February 1, 2011 11:05 a.m. HST

'Seized' Grand Wailea Files for Bankruptcy

The Grand Wailea Resort Hotel & Spa in Hawaii, The Club at PGA West in California and three other luxury resorts filed for bankruptcy after lenders including Paulson & Co., one of the world’s biggest hedge funds, seized them from Morgan Stanley’s real estate funds.

The five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, according to Chapter 11 papers filed today in U.S. Bankruptcy Court in Manhattan. The lending group, which consists of Paulson, Winthrop Realty Trust and Capital Trust Inc., said it will restructure the debt and keep the hotels operating to take advantage of a predicted turnaround in the luxury market.

“We and our partners are excited to be owners of some of the world’s most desirable resorts and look forward to providing new sponsorship to maximize the value of these irreplaceable assets,” Michael Barr, a portfolio manager at New York-based Paulson, which has $36 billion of assets under management, said in a statement.

Paulson is also a co-investor with Winthrop Realty Trust and Capital Trust Inc. in three other properties that didn’t file for bankruptcy. The group’s joint venture, CNL-AB LLC, acquired the eight resorts in a foreclosure auction on Jan. 28. They held junior debt that helped finance Morgan Stanley’s 2007 purchase of CNL Hotels & Resorts Inc., positioning them to foreclose when Morgan Stanley defaulted.

Morgan Stanley bought the hotels “at the peak of the market,” Dan Kamensky, a Paulson partner, said in a court filing. The properties have struggled since then because of “reduced business and consumer spending, higher fuel prices, increased unemployment, and a severe decline in business and personal travel,” he said.

The Paulson group put the resorts in bankruptcy after failing to reach an agreement on a debt extension with trusts overseeing a securitized mortgage on them. A $1 billion mortgage backed by five of the former CNL properties, and $500 million of additional debt, matured today.

The Paulson and Winthrop group will need approval from other lenders to restructure the debt, said Harris Trifon, an analyst for Deutsche Bank Securities Inc. in New York. Midland Loan Services, a unit of Pittsburgh-based PNC Financial Services Group Inc., is the special servicer for the loans that matured today.

“Over the last few weeks, holders of the mezzanine debt have battled for control of the five properties,” Trifon wrote in a report yesterday. Secured-debt holders probably will be fully repaid and the mortgage loan likely will be extended two years once it is restructured, he said.

MSR Resort Golf Course LLC, also known as PGA West & Citrus Club, listed more than $1 billion in both debts and assets and seeks to be the lead case for 30 units in bankruptcy. The property in La Quinta, California, has six golf courses, three club houses, and a health and racquet club, according to its website.

The Grand Wailea, a Waldorf Astoria resort in Maui, Hawaii, situated on 40 acres along Wailea beach with 780 guest rooms, makes up 42 percent of the mortgage collateral, Trifon said.

Other properties included in the filing are the Doral Golf Resort & Spa in Miami; the Claremont Resort & Spa in Berkeley, California; and the Arizona Biltmore Resort & Spa in Phoenix. Together, the five resorts have 14 separate golf courses, more than 35 food and beverage outlets, and more than 432,000 square feet (40,134 square meters) of meeting space in the U.S., court papers show.

The three properties that didn’t file for bankruptcy are controlled by Capital Trust. The JW Marriott Grand Lakes and Ritz-Carlton Grande Lakes, both in Orlando, Florida, and the JW Marriott Desert Ridge Resort in Phoenix don’t face maturity on their debt until May 2012.

Paulson affiliates will fund operations of the bankrupt hotels with a $30 million loan that would be junior to the mortgage liens while the lender group pursues more financing, Kamensky said. Because only a few days separated the Jan. 28 foreclosure from today’s debt maturity, the property owners didn’t have time to negotiate the usual so-called debtor-in- possession loan that funds operations in bankruptcy, he said.

Morgan Stanley, the New York-based owner of the world’s largest brokerage, financed the CNL acquisition with $1.5 billion of senior debt, $1 billion of mezzanine debt and $800 million of corporate debt, which was previously restructured.

U.S. Bankruptcy Judge Sean H. Lane was assigned MSR’s bankruptcy case, filed by the law firm Kirkland & Ellis LLP.
The case is In re MSR Resort Golf Course LLC, 11-10372, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

(Report Provided by the Bloomberg News Service)

(Back to Top)

---

NEWS FLASH - February 1, 2011 11 a.m. HST

Horizon, Pasha Follow Matson With Fuel Surcharge Increase

Horizon Lines Inc. and Pasha Hawaii Transport Lines said yesterday they are increasing their fuel surcharge between Hawaii and the mainland by 4.75 percentage points to 26.5 percent from 21.75 percent.

The increases, which match the one announced last week by rival Matson Navigation Co., will be effective Feb. 27, the same day as Matson. It is the shippers' first increase in about a year.

Horizon, the state's second-largest ocean shipper behind Matson, also increased its fuel surcharge for service between the mainland and Guam/Commonwealth of the Northern Mariana Islands to 28 percent from 23.25 percent, matching Matson. Both increases also are effective Feb. 27.

Pasha, which transports vehicles between Hawaii and San Diego, received state Public Utilities Commission approval last October to begin limited interisland cargo service in a decision that was challenged by incumbent Young Brothers Ltd. Pasha has yet to announce a start date.

(Report Provided by the Associated Press)

(Back to Top)

---

NEWS FLASH - February 1, 2011 10:15 a.m. HST

Lone 'Leaf' Breezes Into Hawai'i

Nissan had been promising for months that it would roll out its long-awaited, all-electric Nissan Leaf in Hawaii starting in January.

The company met its commitment yesterday -- just barely -- delivering a single car to a Honolulu man on the last day of the month.

Nissan executives have said initial production of the Leaf was insufficient to meet the strong demand for the car in the U.S. Nissan capped its reservations at 300 in Hawaii and 20,000 nationally after realizing it might not be able to meet demand.

Hawaii had the highest number of reservations per capita of any market, according to Nissan.

There is no firm timetable for delivery of the remaining vehicles that have been reserved, a company spokeswoman said yesterday.

"We are at full capacity at our plant in Yokohama and by spring expect to be delivering Leafs in volume in all markets, including Hawaii," said Katherine Zachary, a company spokeswoman at the company's North America headquarters in Tennessee.

Zachary said the company expects to reopen reservations for the Leaf sometime "in the first half of this year."

"Like any ramp-up of a new product, it is starting up slowly," she said. "We're trying to satisfy global demand."

All the customers in Hawaii who made reservations have been put in a queue and are being contacted by Nissan to place an order as production permits, said James Moniz, Nissan district operations manager for Hawaii.

"We're still in the early stages of taking orders. A good percentage have yet to place an order," he said. Customers should receive their vehicle from four to seven months after placing the order, he added.

Nissan last fall announced that Hawaii was one of the first seven U.S. markets where it was launching the Leaf. Top officials from Nissan held a media event at the Hawaii Convention Center in September that included test drives by Gov. Linda Lingle and Lt. Gov. James "Duke" Aiona.

Nissan has selected California-based AeroVironment to oversee the installation of home charging stations for the Leaf. AeroVironment, in turn, has contracted Honolulu-based photovoltaic installation company RevoluSun to handle installations of the 220-volt, 40-amp charging stations.

The Leaf carries a suggested manufacturer's retail price of $32,780. A $7,500 federal tax credit and $4,500 state tax credit drop the effective price to $20,780.

Reach Alan Yonan at ayonan@staradvertiser.com.

(Report Provided by the Honolulu Star-Advertiser)

(Back to Top)

---

NEWS FLASH - February 1, 2011 8:50 a.m. HST

SPAM Can Design Contest Opens

A Hawaii graphic designer, professional or amateur, could have their design emblazoning cans of SPAM Less Sodium this year.

The Minnesota-based maker of SPAM products has launched a design contest for a customized package label exclusively for Hawaii, offering a grand price of $1,000 cash, a case of SPAM, a SPAM gift bag and bragging rights that their design is featured on the product.

The public will vote on submitted designs online from Feb. 21 to 25 and Hormel will select the winner from the five top vote-getting entries. The winner will be announced at the Waikiki SPAM JAM April 30.

Official rules and design specifications can be found online at http://www.HawaiiSpamCan.com.

(Report Provided by the Associated Press)

(Back to Top)

---

NEWS FLASH - February 1, 2011 7:30 a.m. HST

Aquarium Collecting Bill Goes Before State

WAILUKU - State senators have introduced legislation that would impose a statewide ban on collecting reef fish for sale in the aquarium trade to protect the health of Hawaii's coral reefs.

The bill would prohibit the sale of aquatic life taken from state waters for aquarium purposes. Violators would face fines or possible jail time. The legislation would allow exceptions for animals collected for subsistence, traditional or cultural use, human consumption, scientific research or public display.

Lawmakers noted that there have been numerous unsuccessful attempts over the years to ban or limit aquarium fishing in Hawaii but said they are optimistic this could be the year for such a proposal to succeed.

"I think there's just a greater awareness," said Sen. Roz Baker (D, Honokohau-Makena) told The Maui News. "I think people are taking a fresh look at some of the things we need to do to preserve the reef. People come here to enjoy the marine life, and we need to have healthy and robust numbers of fish in the ocean."

The bill hasn't been scheduled for a hearing yet, which is an essential step if it is to become law.

Baker and two other lawmakers from Maui County -- where the County Council recently passed new aquarium fish trade regulations -- introduced the legislation: Senate President Shan Tsutsui (D, Wailuku-Kahului) and Sen. Kalani English (D, East Maui-Lanai-Molokai).

Robert Wintner, owner of Snorkel Bob's stores in Hawaii and author of "Some Fishes I Have Known," said he supports the bill.

"Hawaii reefs and Hawaii fish populations are in decline," he said. "We've known this for years."

Wintner said he and other advocates had pushed for legislation for years with little result. But he shared Baker's belief that the proposal might have a better chance in the current Legislature.

"We've gotten huge resonance from the Maui bills passing," he said.

Baker said she was particularly concerned about the removal of plant-eating fish, which help protect reefs from invasive algae, and about the collection of species that are too fragile to survive the transition from their natural environment to a tank.

"It's really a waste," Baker said. "We need to have a serious look at this industry."

English said the proposals could gain more traction this year with new members in the Legislature, and Democratic Gov. Neil Abercrombie in the executive office.

"There's fresh ideas, a fresh outlook, and I also think people are more aware of the fact that there is depletion going on," he said.

In the House, state Rep. Gil Keith-Agaran (D, Kahului-Paia) and Rep. Chris Lee (D, Lanikai-Waimanalo) introduced a bill that would require the state to develop a list of aquatic species that may be collected or sold. Keith-Agaran said the measure would ensure that any fish collection was sustainable.

"We have to put the brakes on this and allow the fish to regenerate," Keith-Agaran said.

(Report Provided by the Associated Press)

(Back to Top)

---

NEWS FLASH - February 1, 2011 6:20 a.m. HST

Lingle Deemed 'Threat' to Akaka in 2012

U.S. Sen. Daniel Akaka has not been actively raising money and has just $66,278 in cash for his re-election campaign in 2012.

While Akaka is not known as an aggressive fundraiser — he had $82,565 at a similar point before his 2006 campaign — the nearly empty war chest is a potential warning sign.

Former Gov. Linda Lingle has said she would consider a Senate campaign and would likely get national Republican help to match the record $6 million she raised for her re-election five years ago.

Akaka, D-Hawaii, scrambled to raise money after then-U.S. Rep. Ed Case challenged him in the 2006 primary but was able to collect more than $2 million with the help of state and national Democrats who rallied to his side.

The Cook Political Report and The Rothenberg Political Report have rated Akaka's re-election a solid or safe bet in traditionally Democratic Hawaii. But if Lingle were to enter the race, the campaign would likely be considered among the most competitive in the nation. Senate Democrats and independents now hold a 53-to-47 edge over Republicans, so the balance of power in the Senate will be at stake in 2012.

Jennifer Duffy, a senior editor at the Cook Political Report who tracks Senate and governors' races, said she would likely move the rating to a toss-up if Lingle runs.

"It seems to be Akaka's modus operandi to avoid raising money entirely until he is up for re-election," Duffy said in an e-mail. "It's not an especially wise strategy. It's part of why Case thought that beating him in a primary was even remotely possible. National Democrats, particularly his Senate colleagues, had to do a lot of the heavy lifting to help him raise money in 2006. They will certainly come to his aid again if he gets a serious challenge, but it could be a little more difficult this time because Democrats have 23 seats up and it is a presidential year."

Jesse Broder Van Dyke, an Akaka spokesman, said the senator has been raising money for others and will now focus on his re-election. The $66,278 in cash on hand was reported in the senator's year-end federal campaign-finance report.

"Senator Akaka fundraised for Colleen Hanabusa (for Congress) and the Democratic Senatorial Campaign Committee in the fall and is now working on his re-election campaign," he said.

Akaka told KHON in April and the Star-Advertiser in October that he plans to run for re-election, but there is persistent talk in Washington, D.C., and in Hawaii that the 86-year-old may retire. The Cook Political Report rating, for example, has an asterisk next to Akaka's name indicating a potential retirement.

Dylan Nonaka, the executive director of the state GOP, said he personally does not think Akaka will run and believes the senator would be vulnerable against Lingle if he did.

"I don't think he'll put himself through it again," he said.

Nonaka acknowledged, however, that Akaka would likely receive extensive fundraising help from Democrats if he runs for re-election. Lingle would have to start from scratch, but she has proven fundraising ability.

Democrats, as they showed during the primary with Case in 2006, have deep affection for Akaka. The senator is considered the most likable politician in the state, a personification of the aloha spirit.

Lance Holter, the Maui Democratic chairman, said Akaka is beloved. But like many other Democrats, Holter worries about a campaign against Lingle.

"I'm sure everybody would be concerned," he said. "I imagine that she's not only going to have $4 million to $6 million, but I think this will be one of the No. 1 focused races in the nation. The GOP? All the money they can grab they're going to throw at this one."

Although senators approach fundraising differently, many build war chests well in advance of their re-election campaigns, in part to ward off potential challengers. For example, in Utah — which is similar in population to Hawaii and is as Republican as Hawaii is Democratic — U.S. Sen. Orrin Hatch has $2.5 million in cash to prepare for a potential Republican primary against U.S. Rep. Jason Chaffetz, the Salt Lake Tribune reports.

Reach Derrick Depledge at ddpledge@staradvertiser.com.

(Report Provided by the Honolulu Star-Advertiser)

(Back to Top)

---

Breaking News Archives

NEW FOR 2010: Maui TV News Breaking News stories are now being archived. Each month (or more frequently if needed) we will save an archive of all the Breaking News stories covered to date on this page. And you can use the search box in the upper right corner of this page to locate a specific story or topic. Now available:

Back to Top | Home | Links | Music Contest

Maui TV News is an accredited member of

Radio and Television News Directors Association & Foundation