HONOLULU -- Moloka`i Ranch, which closed its resort and other commercial operations this spring, said it plans to terminate water and sewer service for more than 1,200 customers at the end of August.

The ranch said the state or Maui County should take over operations on Moloka`i and Maui's mayor is calling on the state to step in and help.

Mayor Charmaine Tavares said to expect Maui County taxpayers to take over the costs and liabilities of antiquated sewer and water systems is "irresponsible."

A spokesman for Gov. Linda Lingle said these functions fall within county jurisdiction and the state does not have money to help the county.

Maui County should take the lead in this and the state is willing to help without providing any money to do so, Lingle's Chief of Staff Barry Fukunaga said. Fukunaga said he does not understand how Maui County claimed it cannot afford to take over sewer and water operations when it has not even made a detailed cost estimate yet.

Moloka`i Ranch operates water and sewer service for customers in the Kaluakoi and Maunaloa areas.

The ranch said those services were never financially self-sufficient, so the ranch used profits from other areas, like its resorts, gas station and movie theaters, to cover the costs.

Since the company is not operating anymore, the ranch said it will cease water and sewer service at the end of August.

"This can't just be dumped on somebody else and have the people suffer in the meantime," Tavares said.

Tavares said the ranch's water and sewer systems are in bad disrepair, far under county standards, and the county would need to spend money to fix them up, hire personnel and set new rates.

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"Maui's not ready to do that, because to set something up like that would take years, at least two years," Tavares said.

In letters to government officials, Moloka`i Ranch's President Peter Nicholas said while he realizes Moloka`i's citizens require water and sewer services, "it is economically impossible for our affiliated companies to provide them on a self-sustaining basis."

Nicholas said the ranch has considered asking the state Public Utilities Commission for rate increases so water and sewer service break even, he said, "We simply do not have the funds necessary to go through such lengthy and costly proceedings."

"People just can't walk away because they feel like it. They're saying, 'You know, it's not working out financially for them.'"

Tavares said the state should bring in a private company to operate the system or make some other arrangement.

"I firmly believe that the governor can, with the state resources, figure out something to do to keep the services going," Tavares said.

Moloka`i Ranch and the governor's office did not return KITV's calls for comment.

Moloka`i state Rep. Mele Carroll said she is "suspicious" about whether the ranch has really exhausted all financial alternatives.