NIU VALLEY — The above-ground plastic pipe running down Kalaniana'ole Highway's median, stamped with "live sewer," will remain in place for at least another year because a standoff between city officials and the owner of Niu Valley Shopping Center is halting work on a permanent underground replacement utility line.

King's Cathedral Church, the center's owner, in August overturned an agreement through which the city would use part of the center's parking lot to store drilling equipment, said Craig Nishimura, deputy director of the city Department of Design and Construction.

Since then, city attorneys have been negotiating with the church's attorneys, who want the city to obtain a $10 million liability insurance policy to use 4,600 square feet of land fronting KFC-Hawaii on the 'ewa end of the shopping center property.

Typically, when the city uses parcels of private land, it requires contractors to provide a $1 million liability policy, Nishimura said.

"We're looking at other possible means to obtain access," Nishimura said yesterday. "We're even looking at going through condemnation procedures."

Condemnation of the land would probably take a year, Nishimura said. In addition, officials will look at switching the sewer pipe replacement method to open trenching, through which pipes are unearthed, replaced and covered over. That method, however, would create major traffic snarls, Nishimura said.

The Rev. Brian Reynolds, pastor of King's Cathedral, said in a prepared statement that while the church has a commitment to the community and is willing to allow the city access to its property, its insurance company is making the demand.

"King's Cathedral has desired to help the city with the Niu Valley wastewater pump station force-main replacement project," Reynolds said in the statement. "King's Cathedral is willing to negotiate an acceptable right-of-entry agreement. The insurance carrier for King's Cathedral has requested coverage of the city, and that seems to have created the challenge."

The city initially obtained backing to use part of the parking lot from the shopping center's manager. Also, the KFC owner, Kazi Foods, had agreed to the city's use of the leased property, according to a city news release.

In the city's plan to use a directional drilling method to replace the force-main sewer line, two areas are needed to store equipment: one at the beginning of the force-main line at Kawaiku'i Beach Park, and the other near the pump station at Niu Valley Shopping Center.

"We have no progress to show for over two months of negotiations between the city and the attorneys for King's Cathedral," Eugene Lee, city Department of Design and Construction director, said in a prepared statement. "King's Cathedral has presented us unreasonable demands for the temporary use of its property in order to complete a project that will benefit the entire East Ho-nolulu community."

The 3,300-foot above-ground bypass sewer line was installed in April 2005, after an aging underground line ruptured in the same location three times in February 2005.

About three months ago, a contractor began stashing equipment at Kawaiku'i Beach Park in preparation for underground sewer installation work, which was expected to be completed by the end of the year. The above-ground sewer pipes were to be removed by February, Nishimura said. The Niu Valley Force- Main Replacement Project is expected to cost taxpayers $9 million.

The line collects untreated sewage from Kuli'ou'ou to the east and from as far away as Kalani High School to the west. It then pumps the sewage through larger pipes to the sewage treatment plant at Sand Island.

"It is not acceptable for us to leave the pipe on top of the ground, open to vandals or car accidents that could rupture the line and cause a sewage spill," Nishimura said.

Some residents curious about the stalled project were upset to learn that the delay was due to negotiation issues.

"Thus far, King's Cathedral has not shown any interest in contributing to the Niu Valley community," said Marty Plotnick, a resident. "They've acted selfishly independent and appear to have no concern for the well-being of the community."

Reach Suzanne Roig at sroig@honoluluadvertiser.com.