OFFICE OF ADMINISTRATIVE HEARINGS
DEPARTMENT OF COMMERCE AND
CONSUMER AFFAIRS
STATE OF HAWAII

In the Matter of the Petition for Change
of Pilotage Rates of the

HAWAI’I PILOTS ASSOCIATION,

Petitioner,

PTP 2012-1

NOTICE OF PUBLIC HEARING
AND CONTESTED CASE HEARING

YOU ARE HEREBY NOTIFIED that the Hawai’i Pilots Association (“Petitioner”) filed a Petition for Change of Pilotage Rates with the Department of Commerce and Consumer Affairs, State of Hawaii (“DCCA”).
YOU ARE ALSO NOTIFIED that pursuant to Hawai’i Revised Statutes (“HRS”) Chapters 91 and 462A, and Hawai’i Administrative Rules Title 16, Chapter 96, a public hearing in this matter has been scheduled for:
Date: November 14, 2012
Time: 1:30 p.m.
Place: Department of Commerce and
Consumer Affairs
Hearing Room No. 2
335 Merchant Street
Honolulu, Hawai’i 96813

Petitioner has proposed changes to the Hawaii State Pilot Rates, Fees, and Charges, to be effective as of January 1, 2013, as follows:

1. Base Fees: Base Fees shall remain unchanged from January 1, 2013 to December 31, 2013. On January 1, 2014, Base Fees shall increase five percent (5%) from the amounts that were in effect on December 31, 2013. On January 1, 2015, Base Fees shall increase by four percent (4%) from the amounts that were in effect on December 31, 2014. On January 1, 2016, Base Fees shall increase by three percent (3%) from the amounts that were in effect on December 31, 2015.

2. CSS Charge: A new surcharge to fund Central Scheduling System (“CSS”) operations shall be assessed for all vessel movements. This surcharge shall be $360.00 for Honolulu Harbor and $600.00 for Kalaeola and Neighbor Island ports.

3. Delay charge: This charge shall be increased to $150.00.

4. Cancellation charge: This charge shall be increased to $300.00 per cancellation.

5. General Excise Tax (“GET”): Petitioner shall absorb GET and shall not pass this charge on to pilotage customers.

6. Capital Improvement Fund: The Capital Improvement Fund shall be funded out of the collection of Base Fees. Each year, the Capital Improvement Fund allocation amount shall be deposited in the bank account dedicated solely to fund purchases of pilot boats and other equipment used in the business of pilotage and other capital expenditures such as life extension projects for existing pilot boats. The Capital Improvement Fund allocation amount shall be $275,000 in 2013, and shall be adjusted each year in accordance with the annual inflation adjustment as provided below.

7. Inflation Adjustment: All fees, charges and surcharges including, but not limited to, Base Fees, CSS Charge, Cancellation Charge, Delay Charge, Travel Charge, and Senior Pilot and Deputy Pilot Training Fund Charges, and account balance limit amounts will be adjusted annually beginning on June 1, 2014 (and every June 1st thereafter). The annual adjustments will be based on changes in the Honolulu Area Consumer Price Index for All Urban Consumers as regularly published by the United States Department of Labor, Bureau of Labor Statistics (“CPI”). The amount of the adjustment will be the percentage change in the CPI for the preceding twelve (12) months ending December 31 of the preceding year.