County of Maui Water Supply


                                                                      
BOARD OF WATER SUPPLY COUNTY OF MAUI REGULAR BOARD MEETING THURSDAY, APRIL 22, 2004
Kahului Shopping Center Kaahumanu Avenue Kahului, Maui, Hawaii Reported by: Katherine Eismann, RDR, CRR, CSR #439 APPEARANCES Chairperson: KENT HIRANAGA Board Members: KENNETH M. OKAMURA GINNY PARSONS STACY HELM CRIVELLO SALLY RAISBECK MICHELLE McLEAN Corp Counsel: EDWARD KUSHI Director: GEORGE TENGAN Deputy Director: JEFFREY T. PEARSON Board Secretary: CATHY HOWARD Staff: ELLEN KRAFTSOW HOLLY PERDIDO JACKY TAKAKURA ALVA NAKAMURA (Thursday, April 22, 2004, 9:10 a.m.) CHAIRMAN HIRANAGA: I would like to call the meeting to order. In attendance, we have our new member Michelle McLean. I would like to welcome you. BOARDMEMBER McLEAN: Thank you. CHAIRMAN HIRANAGA: We also have Stacy Crivello, Ginny Parsons, Kenneth Okamura, and Sally Raisbeck. I would like to welcome Sally back as a new full-timer. BOARDMEMBER RAISBECK: Thank you. CHAIRMAN HIRANAGA: Are there any announcements? BOARDMEMBER RAISBECK: Yes, Mr. Chair. Excuse me. I believe both of these things I mentioned maybe in my communication about the rules, but I wanted to draw the attention of this Board to the fact that the Water Meter Issuance Rule for Upcountry expires as of the end of this year. And we will have to make sure that an extension of that rule is shepherded through the Council before that time. And then the second announcement was that I know the deadline date for the water use permits is July 21st of this year, which is not that far away. And I would like to put on the agenda, for next time, an update on where we are with applying in the Iao Aquifer designation area and applying for water use permits from the State. So, those two dates, I think, are important. CHAIRMAN HIRANAGA: Okay. Thank you. Are there any other announcements? (Silence.) If not, moving on to approval of minutes. Are there any comments or corrections regarding the March 18th, 2004, minutes? BOARDMEMBER OKAMURA: Move to approve. BOARDMEMBER RAISBECK: Could I -- could I -- in accordance with our decision last time, could I move for approval, temporary approval to be -- corrections to be allowed for 30 days in accordance with previous practice of this Board, and they would be posted on the web site immediately, even though not approved. CHAIRMAN HIRANAGA: So moved. Is there a second? BOARDMEMBER McLEAN: Second. CHAIRMAN HIRANAGA: Any discussion? (Silence.) All in favor say aye. (Chorus of ayes.) The motion is approved. The next agenda item is new member orientation. One of the new members is, I believe, ill today, so it's been suggested that we defer this and allow the two new members, and if Sally wishes to also, to meet with the Director at his office for an orientation. The Chair would entertain an offer to defer this agenda item unless there are objections. Any objections? BOARDMEMBER CRIVELLO: You want that -- are you entertaining a motion for that? CHAIRMAN HIRANAGA: Yes. BOARDMEMBER CRIVELLO: I move that we defer. BOARDMEMBER OKAMURA: Second. CHAIRMAN HIRANAGA: Any discussion? (Silence.) No discussion. All in favor aye. (Chorus of ayes.) The motion is approved. Next agenda item is communications, letter regarding proposal for committee to draft revised rules of the Board and Department. BOARDMEMBER RAISBECK: Yes, Mr. Chair. Do you wish me to discuss why I sent this letter? CHAIRMAN HIRANAGA: Yes. BOARDMEMBER RAISBECK: Okay. It's been a year and a half since the Charter change. I have been on this Board a year. One of my first desires, on this Board, was to get an updated copy of the rules that would take into account the Charter changes. We have not received any drafts or any indication that anything has happened in regard to a change in the rules. So, I am suggesting that the Board appoint a committee of two, three, or four members, to meet together, to go over the rules and draft a changed set of rules that would separate -- as I say in the letter -- separate Board rules from departmental, administrative rules, separate policy from nonpolicy items, and also look at -- if not reconcile, at least look at any inconsistencies among the rules here, which date from 1977 and have merely had added layers as each situation arose. For example, I believe the Kaupo Rule is still in effect, and I am sure no member of this Board -- probably no member of this Board knows what the Kaupo Rule is, or why it was instituted, and whether it's still -- it is still in effect, because it's in our set of rules. So, that's the sort of historical archeological layer that I would like to get rid of. And then I would propose a draft format, where every place the Board is mentioned -- almost every place the Board is mentioned, it would replace it with the phrase Director, Mayor, Council. And when the rules -- the draft rules were brought back to this Board, this Board could make suggestions as to which of those entities was most appropriate, and, of course, the Council would be the one who would ultimately decide on that matter. The goal would be a simplified, unified, well-organized, user-friendly draft document, which would make clear what our intention is, and then it could be put into legal language by the Corp Counsel's office. I think I was overoptimistic to think that such a committee, if it met weekly, could do it in three months. That's probably overoptimistic. But even if it took that committee a year, we might get new rules quicker that way than waiting for further progress in the present situation. So, I would propose that this Board vote that a committee be appointed. I would wish to be on such a committee myself. I think new member Michelle McLean would be an excellent member of committee. I think new member Ralph -- oh, dear, I am losing his last name. MS. HOWARD: Johansen. BOARDMEMBER RAISBECK: Ralph Johansen, who is a retired attorney and has time, would be an excellent member. And for the fourth member, either Member Parsons or Member Okamura would be an excellent choice, I think. Or if it wanted to be just three or even just two of us, if there's only two, it totally avoids the Sunshine Law requirements. So, that is my proposal. I put it forward as a motion to appoint a subcommittee to examine and draft changes to the Board of Water Supply and the Department of Water Supply rules. CHAIRMAN HIRANAGA: Is there a second to the motion? BOARDMEMBER McLEAN: May I, before we move it into a motion, just one second. I think this is a terrific idea, and I applaud Sally for bringing it forward. THE REPORTER: Can you make sure your mike is on? BOARDMEMBER McLEAN: Okay. But I would like to ask Mr. Kushi and Mr. Tengan what they think of the idea. I want to make sure that perhaps these things shouldn't be generated from either of them or at least the Board moving forward in this direction having their consent for those things to come from us. CHAIRMAN HIRANAGA: Actually, Michelle, if there was a second to the motion, then those questions would be addressed to the Department and Corp Counsel. BOARDMEMBER McLEAN: Then I will second for discussion then. CHAIRMAN HIRANAGA: Okay. Thank you. Yeah, I'd like to have comments from the Department of Corporation Counsel regarding this agenda item. DIRECTOR TENGAN: I guess it wouldn't, you know, be detrimental to have such a committee. In fact, I think maybe this committee can make recommendations to the attorney that the County Council is hiring. As I understand, the County Council has selected an attorney to go over the rules. I don't know what exactly the scope is, but I would think that his committee could -- could communicate to the Council and Council staff regarding the amendments to the rules. CHAIRMAN HIRANAGA: Does Corporation Counsel wish to offer any comment? CORPORATION COUNSEL KUSHI: Yes, Mr. Chair. I agree with the Director that this may be helpful in the whole process if the subcommittee would want to spend the time and effort in doing it. It's going to be very tedious. Not too many people, from the get-go, understand all of our rules, coupled with the fact of the Charter amendments. But again, if you want to form a subcommittee to this, that's fine. The concern we have is that whatever results of the subcommittee, it comes before the full Board, and whatever results happen then is still in the -- is still unresolved as to what happens. Let's say you do a total revamp of the rules and their various amendments. The question then becomes who can amend the rules? That issue is still pending before, as my understanding, the Council, and that's why they hired special counsel to make that determination. But again, you know, this is historic, this is going to be very tedious, and our office would, of course, assist the committee. CHAIRMAN HIRANAGA: Is there a time line for the special counsel to provide this product? CORPORATION COUNSEL KUSHI: I haven't been following this, Mr. Chair. I am not privy to the hiring, to the contract, and the time line. I believe it was $10,000 appropriated. CHAIRMAN HIRANAGA: Any other discussion? BOARDMEMBER RAISBECK: Yeah, if I could make a comment, it would be that it's my belief, from having followed the discussion on the Council, that the primary focus will be distinguishing between the powers of the Mayor and the Council in regard to water. I don't think the scope, at this time, has been defined as including going over the rules, you know, with a fine tooth comb. I think it's more, as I said, distinguishing as to what lies within the kuleana of the Mayor, what lies within the kuleana of the Council. And I agree that -- with Mr. Kushi that it would be tedious. Nevertheless, I think it would be well worthwhile, since it's true that very few people understand our rules in the entirety. And that's partly because they are so difficult to understand. So, I would think that such a subcommittee could produce a more understandable version, weeding out outdated material, and come up with something that, in any case, has no force. It's simply a suggestion. CHAIRMAN HIRANAGA: Prior to the Charter change, or maybe about almost two years ago, the Board was reviewing the rules with the assistance of the Department. And the Department provided red-lined versions of each rule. And then we had a committee that sat down, reviewed the proposed changes, made recommendation, submitted it to the full Board for approval or for review. So, I'm not sure if the Department had completed the entire review of all the rules with their red-line suggestions. I think it was just staff reviewing the rules and making suggested changes. CORPORATION COUNSEL KUSHI: Mr. Chair, since the Charter change are you saying? CHAIRMAN HIRANAGA: Well, previously, this was under when Peter Rice was Chair. We had a subcommittee reviewing rules, Orlando, myself, and I forgot who else was involved. CORPORATION COUNSEL KUSHI: Mr. Chair, if I recall correctly, understand that I was only involved since Deputy Fukushima left, so, about a year with the full Board. You had a rules committee, subcommittee, and I think you did amendments, but I am not sure technically if you had the red line. CHAIRMAN HIRANAGA: Well, the Department would provide a version of their suggested changes, and then we would review them. CORPORATION COUNSEL KUSHI: Correct. Correct. For instance, I believe that committee established the Upcountry water meter rule. But that was brand new. It also amended the water system development fee rule, which I recall did have red line. CHAIRMAN HIRANAGA: I am just wondering if the Department did more work on that or what happened to it? DIRECTOR TENGAN: Mr. Chair, since the Charter Amendment, no work has been done in this area. CHAIRMAN HIRANAGA: How about prior to that? Maybe work has been done, but -- DIRECTOR TENGAN: Yeah, I know we had some. I believe we had sent some rule amendments over. In the process of making some rule amendments, however, because of the Charter change and the question of jurisdiction and authority, all of their work has been put on hold. CHAIRMAN HIRANAGA: Personally, since I was involved in that rules committee, it is very tedious. There is a lot of historical reasons for how these rules were created. Although they may seem to be a patchwork of rules, there were decisions made by previous Boards to create these rules as they are now. And, you know, I have no objection to Board Members wanting to volunteer their time reviewing the rules and making recommendations, but I think you will find it to be very challenging, and I'm not sure if the Council would -- you know, how much weight they will put on those recommendations based on the amount of time that you are going to have to spend creating those recommendations. Personally, I don't wish to be on the committee, but I encourage anyone else that wishes to be on the committee to be so. BOARDMEMBER RAISBECK: I think, under the Sunshine Law, it has to be an appointment by the Board for a specific person, if there's going -- for a specific purpose, if there are to be more than two members on it. So, for it to have three or four members, it would have to be an official committee appointed for a particular purpose. So, are we ready for a vote? CHAIRMAN HIRANAGA: A vote to? BOARDMEMBER RAISBECK: To establish a committee of whatever, or does anybody else think such a committee is a good idea? CHAIRMAN HIRANAGA: Or does anybody wish to be on the committee? BOARDMEMBER PARSONS: We have a second on the floor, so we have to go to vote. CHAIRMAN HIRANAGA: Well, we are still in discussion. BOARDMEMBER PARSONS: Yeah, but what I am saying, there is a second on the floor to her motion. BOARDMEMBER RAISBECK: Okay. CHAIRMAN HIRANAGA: I guess I am curious. Are there any other members that wish to be on this committee? Because I think it's going to take quite a tremendous effort. BOARDMEMBER OKAMURA: Mr. Chair, I would like to maybe look over the rules myself, and I may be willing to serve on the committee. BOARDMEMBER McLEAN: I would be willing to serve on the committee. I would be concerned with the amount of time needed. Meeting more often than weekly, for example, would be difficult in my schedule. Trying to keep the committee down to two people is appealing, in order to have flexibility with meetings and so forth, not having to comply with Sunshine Law requirements. BOARDMEMBER RAISBECK: I am sorry. I can't quite hear you. BOARDMEMBER McLEAN: Sorry. It seems appealing to me to see if it could be kept to two people to allow more flexibility with posting requirements and so forth. But it probably, in general, is a better idea to have more than two people on it. Maybe it might be better to continue the discussion when the other new member is here, since you indicated he might be interested and valuable on the committee, to get input from other Board Members. BOARDMEMBER RAISBECK: If I -- I think that's a good idea to defer it until next time. Give people a chance to think about it. And, so, I would withdraw my motion, and -- BOARDMEMBER McLEAN: Withdraw the second. BOARDMEMBER RAISBECK: -- and instead move to defer this subject to the next meeting. BOARDMEMBER McLEAN: I second. CHAIRMAN HIRANAGA: Any discussion? (Silence.) Seeing none, all in favor say aye. (Chorus of ayes.) Opposed. (Silence.) The motion is carried. BOARDMEMBER RAISBECK: Thank you, Mr. Chair. CHAIRMAN HIRANAGA: The next agenda item would be update on the Water Use & Development Plan. DIRECTOR TENGAN: Mr. Chair, I would like to suggest that we defer this item until the staff member presenting this report arrives, and that we go on to the next item, Director's Report 04-06. BOARDMEMBER RAISBECK: I'm sorry. I couldn't hear that, George. DIRECTOR TENGAN: So this thing be deferred, 04-05, until the staff member arrives. BOARDMEMBER RAISBECK: Oh, okay. CHAIRMAN HIRANAGA: Is that -- who is doing the presentation? DIRECTOR TENGAN: Ellen is doing the presentation. BOARDMEMBER PARSONS: Do you want to take a break for a minute? DIRECTOR TENGAN: She's probably waiting for something. CHAIRMAN HIRANAGA: Well, we will defer that agenda item until later in the agenda if there's no objection. BOARDMEMBER RAISBECK: Mr. Chair. CHAIRMAN HIRANAGA: Yes. BOARDMEMBER RAISBECK: Point of order. I don't believe we asked if there was any testimony from the public. CHAIRMAN HIRANAGA: Okay. Sorry. At this time, is there any public testimony for any of the agenda items? (Silence.) Seeing none, thank you. Next agenda item, fiscal year 2004 write-offs. DIRECTOR TENGAN: Mr. Chair, before we get into this item, I'd like to introduce Mr. Curtis Tom. He recently -- he's with Bank of Hawaii. He recently transferred from Kauai. Mr. Tom was a Board Member of the Kauai Department of Water. Mr. Tom. MR. TOM: I am familiar with a number of you. CHAIRMAN HIRANAGA: Mr. Chair, we have staff report on page 142. We are requesting that the Board concur with the proposed write-offs for $9,782.86 of uncollected accounts. These are accounts, I believe, that we previously sent to the collectors, and although we would be writing these accounts off, collection efforts would still continue. In comparison with the previous years, in 2002, the write-off was $9,817.56, and in 2003, the amount was $16,285.50. Excuse me. The write-off for this year represents about .033 percent of the approximate total billings for the fiscal year. Of this amount, the write-off of $213.82 represents customers who have declared bankruptcy. So, that $200 is the amount that would be, I would think, totally uncollectible. BOARDMEMBER RAISBECK: Mr. Chair. CHAIRMAN HIRANAGA: Yes. BOARDMEMBER RAISBECK: Move to approve the write-offs as specified by the Director with congratulations for reducing it from 16,000 to 9,000. BOARDMEMBER McLEAN: Second. CHAIRMAN HIRANAGA: Any discussion? (Silence.) All in favor of the motion? BOARDMEMBER OKAMURA: I wanted to ask the Director, with a nice job of collections, but how do you deal with like hardship cases, you know, people that cannot pay, maybe a poor family that cannot pay? How do you deal with that? DIRECTOR TENGAN: When customers demonstrate that they have difficulty in paying their water wills, we try to arrange a payment plan for the customers. Basically, the payment plan consists of payment for the current amount plus a portion of the past due amount. So, we do work with the customer, and we do offer them an option to catch up on their past due bills. CHAIRMAN HIRANAGA: Any further discussion? If not, all in favor of the motion say aye. (Chorus of ayes.) Opposed. (Silence.) The motion is carried. DIRECTOR TENGAN: Mr. Chair, may we have a short recess so Ellen can set up? CHAIRMAN HIRANAGA: Okay. We will be in recess and reconvene at 9:45. (Recess, 9:36 a.m. Resumed, 9:49 a.m.) CHAIRMAN HIRANAGA: I would like to call the meeting back to order. The next agenda item is an update on the Water Use & Development Plan. DIRECTOR TENGAN: Mr. Chair, Ellen will be making the presentation. MS. KRAFTSOW: Okay. If I can remember the words, this takes about 26 minutes. This is a presentation that we gave to the State Water Commission in February. The handouts you have in your packet are much more extensive than the short presentation, but this was a summary of those. So, we are going to cover a bit about the requirements and guidelines of the Water Development Plan, a little bit of the history and where we are now, our proposed update process, and some of the supporting work we have done to prepare, and then we will get a little bit in to some of the policy questions that we anticipate will arise. These are all actually required elements of the presentation to the Council. Brief introduction to Maui County water systems. We have five main systems. Our largest is the Central system, the second largest is Upcountry, and third is West Maui, followed by Molokai and then East Maui. We don't have a system on Lanai, but that is part of the Water Use & Development Plan, so it's one of the six planning districts. Now, there are various requirements that lead to the Water Use & Development Plan, all the way from the constitution, to statutory, administrative, Charter and County Code. Among these requirements, they are summarized in four pages in your handouts. I am just going to go through them in a few slides here. It needs to be consistent with the other plans, the State Agricultural Protection Plan, the General Plan of the County, the Community Plans, and several other plans. There's a list coming up. It needs to delineate existing and future sources in anticipated demands. There should be multiple forecasts, so that you prepare for a range of scenarios. It needs to delineate both public and private capital needs. This is one of the challenges we see, because we can talk about our own capital program, but to get the capital programs of some of the private systems is more complex from what we have been doing so far we know. And supposed to allocate water to land uses, discuss the resource impacts of all the source decisions. It should be drafted with a credible public involvement process. This makes it, by definition, a slow process. There is supposed to be a high degree and very well-documented public involvement. It should be drafted in coordination with the Commission, and it needs to have clearly defined objectives and criteria that are discussed within the plan and worked out with the public. And finally, it should be implementable. There should be an implementation matrix. In terms of process, with the public group that you work with, you need to define your objectives and criteria explicitly, evaluate your resources, form your forecasts, and then come up with a broad list of options to meet them. As Carl would say, this could be anything from towing glaciers, to squeezing moss, as well drilling wells. Then you screen those, and you form strategy options which combine various options together to meet your objectives and criteria. You test these options against the criteria, including a review of uncertainties, uncertainties in demand, contingencies, things like that, climate. You select your composite strategies, and that's how you come up with the plan. Now, the status of the water plans that we are supposed to be consistent with, the Water Resources Protection Plan was last updated in 1990. An update is needed, but it's not yet funded. Same for the State Water Quality Plan. The State Water Projects Plan was published in the year 2000. The Agriculture Water Use Development Plan is in progress. That's the state level plans we are supposed to be consistent with. As far as the community plans, the General Plan update is in progress, but the last published General Plan was 1990, and the 1990 community plan process finished in 2002. Some of these we are still waiting for, the GIS and computer layers that delineate designations. Historically, the 1990 Water Use & Development Plan was fully approved through the County Council and the State Water Commission. In this process, a consultant and a drafter gathered data and developed a plan, and they just held public meetings for input. That would no longer be acceptable under the published statewide framework. Private systems were considered separately. The major issues that arose were the anticipated doubling of the demand in Central, Upcountry, and Lahaina, high unaccounted for water, especially Upcountry, the need for treatment and storage Upcountry to the tune of something like 73 million without funds to finance it, multiple large users that were not in County control, especially on Molokai, at the time, was an issue, and the shift from agriculture to tourism, especially on Lanai. That plan recommended wells in the Waihee and Haiku aquifers for Central Maui, in the Honokahua and Honolua aquifers for West Maui, to expand Upcountry treatment and storage, and to drill a new well out by the Kualapuu aquifer, and to develop a cooperative planning entity for contingency planning and cooperative planning in general on Molokai. It also, for Lanai, recommended very slow incremental development and examination of nonpotable water and aquifer protection for Lanai. The 1992 draft plan was actually approved by the Board to go to Council. It was never acted on. They worked with a community group or task force for each island, improved the databases on consumption and unit demand. Major issues were agricultural demands were changing. Ag preservation was a high priority in all the community plans at that time. There were reliability and water quality issues, the need for treatment and backup, the urbanization of the Central Maui. There were large state projects that were out of County control on the west side, high buildout estimates versus the actual demand trends, and the aquifer and changing economy on Lanai. Recommendations included conservation, examination of alternate sources, including recharge for Central Maui, groundwater backup and dual systems for Upcountry, use of the Honolua aquifer and Honokohau Ditch in Lahaina, and the need for a financial plan to cover the costs of doing all this for the systems, because it was recognized that the Department did not have the funding to do what really needed to be done. They also recommended that community venues be established for Lanai-Molokai participation. In 1995, the Molokai Water Working Group did an interim plan pending the time that the next update would be undertaken. This was a balanced interest group from Lanai -- Molokai. Sorry. And the major issues there were designation. Although the sustainable yield was considerably higher than Lanai, they considered it low. High proposed use, especially the buildout was way higher than the estimated demand trend. Source water protection and restoration became important, and Hawaiian rights and the HHL rights to water were very, very important here, because they had some large projects here. The recommendation was for more water resource studies, protection and restoration, to set aside undisturbed watersheds, conservative use of the aquifers and streams pending more studies, to require that uses over 10,000 gallons per day be reported monthly. At this time, they only have to be reported annually at that level, that low. To reserve water for Hawaiian Homelands first, and to limit withdrawal to 33 percent of the developable yield in the southeast sector, and to reforest Maunaloa. The established developable yields for each aquifers, in some cases, were smaller than the actual sustainable yields that they all agreed to. In 1997, the Lanai Water Working Group came out with its report. That was also a balanced interest group. The major issues were the question of designation, the low sustainable yield, the sense that in the consumption analysis, the consumption data wasn't adequate. Also the need for systems analysis and conflict. There were a lot of conflicts between the company and the community at that time. Recommendations were to put in additional storage for Koele, to establish watershed management and well operating guidelines, dual systems, including desalination, landscape conservation, and several other conservation points, and ongoing forum for community involvement. So, around that time, we issued a modified IRP contract. We knew that the State was working on a framework for its IRP guidelines, and it had not yet been completed, but they asked us -- and the community plans were also still in progress. So, they asked us to start anyway, particularly in Lanai. So, we negotiated -- or we didn't negotiate. We discussed with the staff what a contract should have, and we started with a small contract that would cover the regulatory framework, system descriptions, range of demand forecasts and analysis, capital and operational considerations, supply side, demand side, and alternate development options, resource issues, contingency plans, policy considerations, and externalities, and then, of course, summary and conclusions. There also was established, in that time, a time for resolution of issues between districts, because we already knew that some of the community plans for different districts disagreed with each other in terms of their implications. We established a minimum number of meetings. We were going to do three meetings in Lanai, six in West Maui. East Maui was five, and the others were all six. Well, this is what we learned about the public process, about the resources in staffing that we had to accomplish all these things, and the data. It just wasn't enough. But we did start working with Lanai, and the critical issues that have arisen to the fore with Lanai is forest management, continued community involvement, water allocation, operational guidelines, conservation, monitoring and accountability, especially of water use, where it comes from and where it goes to. The low sustainable yield continues to be an issue, and the changing conditions both in terms of the condition of the watershed, project district changes, et cetera. This slide shows you why watershed protection was a top priority for Lanai. The top left is relatively intact Lanai watershed. It's not as wet as Maui watershed, but it's sort of mesic. And as you go down to the bottom right, you see invasive plants coming in, loss of ground cover, and eventually lunar-like landscapes with massive erosion. And that's what has happened in Lanai, not only because of the gulch, but also because of the changing planned communities. And, so, one of the things that the group did was it called a big peer review of scientists from around the state, established the need for watershed protection, and the priority for fencing the watershed, and that is ongoing now. The Watershed Partnership was formed in 2001. The Water Advisory Committee was established as an ongoing permanent committee in 1999 with procedures that aimed for consensus. If there is a vote, both sides of an issue are brought forward. These are the allocations which were agreed upon in the 1997 Working Group Report and since then as amended by various meetings and meetings minutes. There are also operational guidelines that were set for each well and some further analysis of water use. So, demand trends and systems, we have looked at pumpage, chlorides, and water levels for each system and treatment plant totals. They are putting together a revised capital program, and we have also had the wellhead protection areas modeled. And we are expecting to be doing this month and next month an inventory of potential contaminant sources that will go into the source water protection section and develop some conservation, conservation both in English and in Tagalog, which was a point of recommendation under the community plan. So, the benefits of this process have been improved metering and monitoring of the system, improved data on consumption and use, improved mapping, operational guidelines, wellhead protection work, watershed management chapter work, an updated regulatory calendar, an implementation matrix, capital program, and established water committee ongoing. I will say that despite all this progress -- there is good progress that I think has helped the community -- the Lanai community, that community is very distressed that their document is not done, and we have made a commitment to get that done by the end of this fiscal year. West Maui, we held six meetings, then the framework was published, and we stopped and redid our whole process. We had an introduction and issue scoping meeting. We had a preliminary look at every water system's project plans and prioritizing issues. We discussed source water protection a bit. Some discussion of capital and operational considerations including demand and supply side options. Some projections for water requirements, and then a discussion on the relationship between land and water planning issues and the implications of the Waiahole Ditch case, at which point, we stopped and postponed everything so that we could revise our process. Among the big issues in Lahaina, of course, were the end of some of the agricultural growing and the large proposed projects. So now, what we are proposing to do is recommence, and because of the issues with the Iao and et cetera, we are going to be commencing with Central Maui and Upcountry, although Western Maui will be soon to follow. It has big issues, too, coming up. These are the IRP processes as defined by the Commission. Introduction and overview, you go through your demand forecasts, your water quality and resource options, form your potential resource sequences, screen them and narrow them until you get your resource strategies, and your final recommendations. We propose to do this in five planning districts instead of six. We want to group Central Maui and Upcountry, because several of the Upcountry, Haiku, Paia plans say don't take water out of the area, while the Central Maui specifically says that they will go east, and also that their demand will require us to go east, if we were to give them that much water, almost require. We have a very strong public participation component which consists of Water Advisory Committees from each district. Probably we will do that differently in each area, using the working groups from Lanai and Molokai. Also, advertising for participants. We have one ad. We are going to run some more and also going to all the community groups and soliciting referrals. And we also will be able to have subcommittees for different items like the wellhead protection subcommittee. In terms of our meetings we anticipate, we have doubled the amount of meetings we expect to have in each group. An introduction/overview, demand forecast discussion meeting, water quality and resource protection meeting, resource options and alternatives, and a few meetings on narrowing down the strategies and the policy issues, your final candidates, drafting of chapters and review of those, and then review of any outstanding issues, and then a whole separate set of meetings in each district. And then at the end of the process, to resolve any remaining inter-district issues, so we don't come up with inconsistent plans. Then some approval process meetings, which could go beyond the committees themselves but into the Board and the Council. In terms of how we will get to the objectives and criteria, we will both do a direct poll of the water advisory committee members. There are exercises we do for the meetings like, congratulations, you have just been appointed King of water on Maui, and you have this much water left, and how will you use it? Those kind of things help you get to people's priorities. Discussions both in-house and with the committees and with other agencies, and then in subcommittee, such as the wellhead protection subcommittee or any others we form. Public presentations that will be broader than just to the committees, and surveys or other tools as needed. We will be doing forecasts for five, 10, 15, 20 years, low, high, and base cases, and we will use several types of forecasts, including just simple time trends, econometric forecasts that include factors like occupancy, and visitor rates, and employment, and things like that, and project buildout, which is like all the projects that are on line, how much would they use if they were actually built. We will look at those by customer class and district, and we will also look at any impacts that conservation programs might have and look at possible conservation programs, and we will be able to break that down both by systems and community plan areas. We are required to come back to the Commission with various briefings. We will request that they approve one district at a time, and so we will be requesting that the Board and Council approve one district at a time as well. So, we would probably do -- the first briefing is this process proposal, and then we will do the -- probably the Lanai Chapter, hopefully -- if we get it done in June, hopefully, we will be ready to present it with the committee's approval by July or August. The midpoint will be the Central Maui and Upcountry. The midpoint of the Central Maui and Upcountry process just because it's felt that's one of the first plans, and we can make sure we are moving in the right direction. And then at the completion of that and at the completion of each of the other committees, a final resolution and compilation. So, we are proposing a total of eight briefings of which this is the first. The proposed schedule of the Water Advisory Committees goes until about 2008 for all approvals, but each district gets approved along the way. Hoping to do Central Maui and Upcountry by 2005. We request some assistance from the State Water Commission. We need to get more regular pumpage updates and also more regular updates on surface water use than we are getting. Sometimes in the reports we get, they don't add up, and, so, we need some assistance resolving what appear to be discrepancies and assistance in updating the status of nonreporting sources. There are -- you know, in Lanai, we were able to take every single existing well and plots its pumpage history and water levels and chlorides. We can't do that. There are thousands and thousands of wells on Maui, and we don't even know the status of many of them. So, we have asked for some assistance with that. EPA has also expressed some interest in giving us some funding for that. And then assistance in characterizing private systems, because it can be difficult to get that information. We have pulled together a very good consulting team, with extensive background, from various perspectives, including engineering, forecasting, public process, and economic analysis. The main contract is with Haiku Design & Analysis. That would be Carl Freedman. He's here if you have any questions for him, and he will be handling the integrated resource planning analysis, the estimates of costs, the characterization of options, and, basically, the main work items for the plan. We also have some additional advice. We retained our original consultant from the smaller contract. He's very busy now, but he will continue to be involved and give us help with hydraulic analysis, and policy analysis, and engineering feasibility analysis, and some other items. We also, in a separate contract, have a forecasting model under development which will enable us, in the future, once this plan is done, internally to continue an upgraded quality of forecasting. And that also is with Haiku Design & Analysis. And finally we have a facilitation contract that doesn't cover facilitation of every single meeting, but it is enough to cover major meetings where we feel that there is a need for expert assistance. And that was with Peter Adler and the Accord. And, so, that would either be Peter Adler personally or probably Kim Lowry or one of the other members of the Accord Group. And they will also helped us document the public participation process. In preparing for this work, we did an annotated bibliography of availability policies around the country, because availability is one of the big policy issues that will be coming up. We have a Capital Improvement Program list, which is about a 20-year list, which is a huge database. We have been putting together GIS system layers of our facilities, the hydraulic model. Inventory is part of that same work. The replacement planning and asset evaluation model you are familiar with. We need to get that tied into some kind of geographic database, which we don't have yet. The demand forecast model I have just described. And the source water and wellhead protection work, we have already got a -- we have been working with a committee on Maui and have a draft program in ordinance formality. We are working on one for Lanai now, and other public input forums that we have had. A little bit about the source water protection work we have been doing, and we will try to improve upon. We have some conservation programs, some operational management guidelines with our wells, security surface water protection, groundwater protection, watershed protection. We would try to include something about all of these, to the extent that we can, in the plan. Obviously, because of 9/11, we can't do all of that, but those are all elements of source water protection. Some of our forecasts, looking at both the County's SSM forecasts that they use for their community plans and econometric forecasts, buildout analysis of projects, which we have in each district. Every quarter we update what's coming through at a discretionary level. And then just community plan analysis. Looking at the costs of operating the system, this is just a sample schematic showing the costs at different points in the system, in part of Central Maui, just an example. The inventory and hydraulic model close. And then finally, we expect some policy questions to arise. And among those, resource availability we think is a big one. Some people say we give out water too fast. Some people say we don't give it out fast enough. What is the pace at which you want to use the resource? What are the proper ties between land use and water? At what stage should water commitments be granted? Right now, we don't grant them until a meter is purchased, but some people feel they should go with land approvals, and so that should be an issue of discussion. How to implement community plans that don't always agree within themselves or between plans, either within themselves, between the policies and the maps. In the same community plan, you find conflicts. Contingent evaluation, we have a lot of people say they don't want water with DBCP even if it's been treated. Well, okay. Let's say we take that request quite seriously and look at what it costs to go give them water that's never had to be treated. How much will that cost, and are they willing to pay it, and can we finance that? Those kinds of things. Same thing with reliability, 100 percent drought reliability or 50 percent? That's a contingent evaluation question. And finally, fire protection, there are a lot of issues about who is responsible for fire protection. We hope, through this process, to come up finally with proper land use and water planning use, so that we know our role more clearly, to develop robust source protection programs, carefully considered availability policies, preparation for multiple demand scenarios and multiple scenarios contingency-wise as well, to consider all the costs including not only those to the utility but to the customer, community and environment as well, and to commit to have an ongoing friendly dialog with the community and other agencies. Thank you. CHAIRMAN HIRANAGA: Thank you, Ellen. Any questions for staff? BOARDMEMBER RAISBECK: Yes, Mr. Chair. I do have questions. I'd like to pass out a hand-drawn schedule for questioning about. Yeah, thank you, Ellen. I do have some questions about scheduling, and if -- Cathy, if you could pass that out for George, and Jeff, and Holly. I drew up this graph based on the figures on page 19, in the handout, because I always find it easier to look at schedules if I have time lines graphically. And I see that you have the different plans set up going up through 2008. And I wanted to know what other major commitments you and your small staff have, within these time lines, that might conflict with the progress you anticipate. For example, I know that the budget process, this year, has -- I have seen how much you are involved in that, and it's going to recur every year. The budget has to be ready for the Mayor, I presume, again by January, and then he gets it to the Council by March, and the Council has many, many questions from March through the end of May. So, that's a time commitment, I think, on the part of your -- you and your staff. The water use permits that I spoke of earlier, is your section responsible for water use permit, for applying for those? MS. KRAFTSOW: Yes. BOARDMEMBER RAISBECK: Okay. So, that will be something that has to be done before July 21. We also have the Stakeholders Committee that's working on new rates, and I believe your staff is providing the major support to those consultants. And I just wondered if these are realistic time frames on the schedule that you have put for staff in what's obviously an extremely complex process and not made easier. And I wanted to ask also, it said on page 19 that the Water Advisory Committee for Central and Upcountry would hold their first meeting on the 15th of April. Did that meeting take place? MS. KRAFTSOW: No, it didn't. We were aiming for that, but we do expect to be holding a meeting soon. We are still advertising right now. But -- BOARDMEMBER RAISBECK: How was that -- how are those members chosen? MS. KRAFTSOW: Well, we have been putting together a list. You know, there are the major organizations, major environmental organizations, Sierra Club, Maui Tomorrow, et cetera, and then major hotel association, contractors' association, et cetera, large landowners. And we have also put into this -- what we were proposing to do, actually, with Central and Upcountry, what we did already with Lahaina, so it's not as crazy as it sounds. Actually, we send out the agenda and the list to 80 people. And it's pretty self-selected who attends, and we ask them if you are going to attend, you need to be prepared to attend every month. In Lahaina, we were doing it every other month. But, it self-selects, and we ended up with between 20 and 30 people. Fairly balanced. Not everybody was 100 percent attending, but there was a core group, and it was very cordial. And, so, we were going to try a similar process for Central Maui and Upcountry, so that we would get adequate coverage of all interests. So, whoever has -- right now, we ran our first ad. We have some other ads that are going to come out to invite -- BOARDMEMBER RAISBECK: What day did that run? MS. KRAFTSOW: I'm not sure when it's running. It made the Haleakala Times' deadline for their next issue, and we have a couple more that are going to come out in the Maui News and the Maui Weekly. And I'm not sure if we have one set up for the Maui Bulletin or not. We didn't do Maui Family Magazine, because it's more of a kid -- you know, goes to the schools and stuff. Besides that, there was a radio ad. I haven't scheduled it yet. But, basically, we sort of know -- over the years, working in the Water Department, you get to know who is interested, and who you need to contact, and so we get referrals from them and so on. But we put it out there in case there's anyone we have missed. BOARDMEMBER RAISBECK: Okay. I understand why the Lahaina meetings -- although I am sure they educated people, they did not actually produce any kind of draft, because you broke it off in the middle because of the decision to go with Central/Upcountry first, which is obviously very important. But, why didn't the Lanai draft, that was done in 1997 -- why did that never actually proceed to finalization? MS. KRAFTSOW: The Lanai draft, I was sort of annoyed that they even actually called it a draft. It was the Water Working Group Report, is what it was. It was the final report of the Water Working Group, and it was accepted by the Board and, I guess, unofficially, by the Commission. They said they would refer to it in the event of a conflict. They would go with the last report as the interim Water Use & Development Plan. And it is the policy core and will be attached and incorporated, in its entirety, into the Water Resource & Development Plan. But in and of itself, it does not meet the requirements under the framework. And, so, we continued to work -- even now, we are still just getting to the point where we can get some decent consumption breakdown analysis to do any kind of real demand forecast where we have any idea of any commitment on capital. You know, one of the things it didn't say was where is the next well going to be, even though the water model said that there is no guarantee that they continue to pump that. It just didn't meet -- it just didn't have the stuff it needed. It was a good policy core. That's what it was. BOARDMEMBER RAISBECK: Am I hearing that change is needed to that draft report before it becomes acceptable to the Water Commission? And I believe now it would have to be not accepted by the Board but accepted by the Council. MS. KRAFTSOW: By the Department and then the Council and State Water Commission, all three. And it would -- we would certainly bring it to the Board. And, yes, I have about eight pages. Basically, the supplemental report. It's not even a supplemental report. It is a Water Use & Development Plan of which the policy core will be the '97 draft, but there are many, many other elements being added. BOARDMEMBER RAISBECK: My comment would be that my experience with self-selected community groups are you have a lot of eager, intelligent people, who need tremendous amounts of education as to what the issues are and what the facts are, and that uses up a very great deal of staff time. And the other people on the Board, who actually have background in water -- I mean, on the committee, who actually have background, come from groups with such opposing standpoints. I mean, you get the Contractors' Association and the Sierra Club on the same committee. That's almost a guarantee of deadlocks that also extend the time. So, I don't see that this schedule has any reality to it. Given the way you say you are required to approach this and given the results so far, I don't see this as a realistic schedule. And other demands on your time, I think, are very, very major. MS. KRAFTSOW: It is an ambitious schedule. One thing we have now, that we did not have in the beginning, is major consultant assistance. We also have a budget proposal that would double our existing staff, if we are, in fact, able to find them. It's like pulling teeth to try and find a planner. I mean, the list came down with one name, and then it came down with three names, one of which was the first name, and one of the other two is already hired. I mean, you know, it's very difficult to find planners who will work for a planner's salary. So, I don't know if we will be able to do this staffing. That's one of the reasons I am asking for more. It's not as hard to find clerical-level staff and field staff, asking for those people that have been trained up. But we will be having more openings, hopefully more staffing. If I drag out a little bit, I think we can show real progress against this schedule in a way that maybe we weren't able to before. Also, remember, with Lanai, we had it set, the same schedule or goal. And, you know, with Lanai, I can only say it's been pushed back and pushed back, and that's -- you know, I will say that's my fault for not focusing enough on it. But there has been extensive community involvement. All the elements that are going into the plan that were not in the Water Working Group Report are elements that were drafted and provided to the committee and reviewed with the committee. So -- BOARDMEMBER RAISBECK: Okay. Another question I have is looking at the schedule as I drew it out, you know, sort of graphically, does starting the West Maui plan, for example -- does that -- is that contingent at all with what stage you have reached on the Central and Upcountry plan? If Central and Upcountry plan keeps stretching into 2006, will you still be simultaneously working on West Maui? MS. KRAFTSOW: I think if that were to happen, it would depend on the results of staffing that we acquire. I want to say I would hope that we would still start West Maui on schedule, because I feel that West Maui needs to go soon. There are large issues looming there. You know, this is the schedule we have put up. It is ambitious. We will do our best to meet it. That's really all that I can say. We are doing -- taking measures to help ourselves be able to meet it by doubling -- trying to double our staff, by -- to cover other things besides this plan, by bringing in the consultant assistance, by a lot of background work that had not been done prior in the other efforts, having been done now. So, you know, I can't -- I'm not a God. I can't put it absolutely, but I am going to try my best, and we all are. BOARDMEMBER RAISBECK: I just noticed, in this morning's newspaper, that Riki Hokama, the Budget Chair, is quoted as saying that we need to cut spending, and he doesn't feel that the 80 additional positions the Mayor is asking for are necessary. So, I wouldn't count on doubling your staff. I did testify and ask, you know, the planning -- water planning be given more resources, but it looks like they are in a mood to cut not to give more resources. So, thank you, Mr. Chairman. I just wanted to clarify that I think the schedule is probably not going to be met. I think it's too ambitious. CHAIRMAN HIRANAGA: Any other questions for Ellen? MR. OKAMURA: Mr. Chair, I had a question. Ellen, can you give an estimate on how much this is going to cost in terms of consultants and department time? MS. KRAFTSOW: Yeah, we have contracts that were approved by the Board that will total about a third of a million dollars. MR. OKAMURA: How much? MS. KRAFTSOW: About a third of a million, which is actually about a third of what the other counties estimate it would cost. MR. OKAMURA: So, if you include staff time and other time, what is your estimate of the cost to the Department over the four years? MS. KRAFTSOW: Staff time. You know, that's an interesting question. Some of the Water Use & Development Plan work is stuff that's assigned to people. You know, once you have a Planning Division, Planning shouldn't be just to get one document out. That's been my philosophy. So, a lot of what people do that's the preparatory work will continue to be ongoing as part of their regular function anyway, and they would have to do it to do their regular function anyway, as in maintaining lists of discretionary projects and how much water those -- that represents, and updating that quarterly and all of that. That goes into Water Use & Development Plans, right? So, it's just there in a notebook waiting for me. It didn't use to be. Now that I have staff covering those districts, it is. So, you have to cut some of that out. I would say it would need probably two -- one to two full-time staff over the period of drafting. It would need that ideally. MR. OKAMURA: Thank you. BOARDMEMBER McLEAN: Mr. Chair. CHAIRMAN HIRANAGA: Yes, Michelle. BOARDMEMBER McLEAN: I have a question. I am not sure if it's for you or for Carl, just a general question on forecasting. And I understand the different components involved in forecasting. But when you look at projects coming on line, for example, do you also look at existing land use designations where development hasn't yet been proposed for them? MS. KRAFTSOW: Yeah, that would be in the community plan buildout analysis. BOARDMEMBER McLEAN: And population forecasts as well? MS. KRAFTSOW: Those go into the econometric forecasts that Carl is talking -- he has taken a hard look and talked to the consultant who does the SMS forecast, too. BOARDMEMBER McLEAN: Okay. And looking historically like from the 1990 figures, have you changed the forecasting model to make it better, or were those forecasts pretty good back then and you are using a similar model now? MS. KRAFTSOW: The old plans were done pretty much just with time trend analysis. And even from the way time trend analysis was done, we have changed -- internally changed things a little. I don't know about for the purposes of the document. One of the contracts out is to populate the IWR main forecasting model, which is a utility-based forecasting model specifically for how these things affect water trends. And Carl could tell you more about that, but that would be, hopefully, the model that we would aim to use in the future. BOARDMEMBER McLEAN: Thanks. CHAIRMAN HIRANAGA: Any further questions? BOARDMEMBER RAISBECK: Oh, yeah. I just wanted to know what the meaning of IWR was. IWR main, what does the IWR stand for? MS. KRAFTSOW: I think it would be integrated water resources planning model. It's just -- that's what they called it. No, that's IRP. That's different. IWR main is -- there is a company that -- I don't remember the name now, what company. MR. FREED: The name of the company keeps changing. It's a proprietary model -- BOARDMEMBER RAISBECK: Okay. MR. FREED: -- for forecasting. BOARDMEMBER RAISBECK: Thank you. CHAIRMAN HIRANAGA: No further questions for Ellen? Thank you. Next agenda item, other business, update of the water rate study. DIRECTOR TENGAN: Mr. Chair, I would like to turn this item over to Holly to -- MS. PERDIDO: Good morning. We had our first Stakeholders Committee meeting on Tuesday. We had about, I think, a dozen people who attended. Mike Victorino turned it over to Sally as one of the Board members who attended. He was ill. What we did, is we went over the communication flow chart that was in the packet. They decided to elect a facilitator and vice-facilitator instead of a chair and vice-chair. And the facilitator is going to be Mike Quinn, and the vice is Elliott Krash. They also discussed the voting and nonvoting members and decided the two Board members, who are on the committee, would not be voting. And basically, they went over a little bit of housekeeping on the rules and procedures and the schedule. And right now, it's scheduled for next month again. CHAIRMAN HIRANAGA: Holly, who are the two Board members? MS. PERDIDO: The two Board members were Mike Victorino -- no, not even Mike, huh. It was Clark and Mike Nobriga. And then I guess -- oh, Cathy, maybe she can answer that. MS. HOWARD: Mr. Chair, it was originally Mike Victorino and Clark Hashimoto. And Mike Victorino had talked to Mike Nobriga about taking his spot, so that no current Board members were on the committee. It was the committee's understanding that two current Board members would sit on the committee, and those would be the nonvoting members. CHAIRMAN HIRANAGA: But currently, there are no Board members on the committee? MS. PERDIDO: Correct. BOARDMEMBER RAISBECK: Mr. Chair, I believe that's incorrect. I believe that Mike Victorino is considered a nonvoting member of the committee, but he is the only current Board member on the committee. But he's nonvoting. CHAIRMAN HIRANAGA: So, Mike Victorino is still on the committee? DIRECTOR TENGAN: (Nods head.) CHAIRMAN HIRANAGA: And Mike Nobriga is not on the committee? MS. HOWARD: He did not come. He was supposed to come to take Mike Victorino's place, and he did not come. CHAIRMAN HIRANAGA: Okay. Thank you. Any other questions for Holly? MR. OKAMURA: I had a question. Holly, I was looking at the April 20th. I am not going to -- I don't know who did this, but, you know, the committee talks about agricultural rate subsidies. I wanted to bring up a couple points in regards to that. I don't think that -- I don't think that, you know, we should look at it in terms of the agricultural rate subsidies. There is a difference between domestic water and agricultural water. I think that increasing demand for domestic water is the major factor driving up the cost for the Water Department to deliver water. And the reasons are domestic water users are small users, so the Department must lay more distribution hardware and service more customers to sell the same amount of water. In the Upcountry area, more lower water must be pumped from lower elevations to higher elevations as the demand increases by and large for domestic use. And number three, increasing domestic use increases the need for costly water treatment facilities that it services. More water must be treated for increasing domestic use. Ag users do not need treated water. I would like to propose that an ag user is being sold domestic water for agricultural use and is being made to pay for the rising costs of the Department for delivering domestic water. In addition, over the decades, many capital improvements to the water system, adding millions of dollars to the County, both directly and indirectly, have been made in the name of agriculture and funded by sources outside the Department. For example, currently, the Kula line, it's about a 9 million-dollar project. Half of it is being funded by the Federal Government and half by the State. Using the term agricultural rate -- in addition, I think the Kahakapa Reservoir was built with Federal and State funds. Using the term agricultural rate subsidy is unfair for the agriculture community, because it presents a very narrow and biassed perspective on the issue. And I propose that it not be used in the discussion of water rates. Thank you. BOARDMEMBER PARSONS: What do you do -- question. CHAIRMAN HIRANAGA: Yes, Ginny. BOARDMEMBER PARSONS: What do you do then about the residential usage? That's your major developments, subdivisions coming in that are agricultural? MR. OKAMURA: I don't know. CHAIRMAN HIRANAGA: You shouldn't pose the questions to the Board members. Don't pose it to the Board member. Pose the question -- BOARDMEMBER PARSONS: Holly, what then would we do about subdivisions? Or George, or somebody. What would we do about the subdivisions if we weren't going to consider it? MR. OKAMURA: As a point of clarification, I didn't mean that we didn't consider agriculture, but -- I think we should look at agriculture. There is different types of water. Agriculture water is one type of water and domestic water is another type of water. It's costing the Department a lot of money to deliver water, which agriculture don't use it. I am just saying, in the water rate study, we should not be using the term agricultural rate subsidy. Do you guys understand what I am trying to say? Thank you. BOARDMEMBER RAISBECK: Yeah, on the general subject of the water rate study -- on the general subject of the water rate study, I realized, from attending budget hearing meetings, that the Department funded phase one of this study out of the current fiscal year, the currently running fiscal year, for $60,000 for phase one. They have requested a supplemental appropriation for 181,000, for phase two, and I wanted to ask the Director why it doesn't -- that supplemental appropriation cover -- why don't you also include phase three and four in that request for a supplemental appropriation? If it's intended to have that project finish within the fiscal year, why only request funds for phase two? DIRECTOR TENGAN: Mr. Chair, phase two encompasses all the remaining work of the proposed scope submitted by the consultants. So, I believe the amount is 180,000, Holly? That should cover all of the work that the consultant has proposed. Towards the end of the list of the proposed work, most would -- I believe about four or five items are optional, and that if we decide to engage the consultant to do -- to further his work, then we will use part of that $180,000 to fund that work. So, phase two references and encompasses the total contract, in addition to the $60,000 that has been currently funded. BOARDMEMBER RAISBECK: I am not sure I understand. Are you saying that phase three and phase four as proposed -- DIRECTOR TENGAN: I am saying it encompassed the entire scope of work that was submitted by the consultant. BOARDMEMBER RAISBECK: They had a phase three and phase four. Phase four included presentations to the public. DIRECTOR TENGAN: I understand. However, we are using phase two to include all of those other stages that the consultant has submitted as part of the scope of work. In other words, your phase two is equivalent to phase two and on to the end of the defined scope of work as submitted by the consultant. BOARDMEMBER RAISBECK: Thank you. I would also like to say, at this time, that I did take a look, since the consultants, in their resume, had said that they had been consultants to Kauai, to the Big Island, and to Honolulu, for their rates. I took a look at the rates on the web for those counties. And my impression is that those rates reward large users at the expense of household-type users, five-eighth-inch meters and so on. And while I certainly -- this is merely an impression at this point. I would want the opportunity to ask questions about any proposals, especially proposals that structure the rates in terms of meter size rather than in terms of customer classes. Honolulu publishes their rates in terms of customer classes, but the other two publish their rates only in terms of meter size. And I think the block structure they use is very unfair to small users. And all counties do recognize that agriculture, I believe, is in a special category as far as water rates are concerned. Thank you. CHAIRMAN HIRANAGA: Any further questions for Holly? Thank you, Holly. Next agenda item is an update on the April 7th, 2004, Paia Community Meeting regarding the H'poko wells as a water source. MS. HOWARD: Mr. Chair, there is a handout. DIRECTOR TENGAN: Mr. Chair, Jacky will be taking up this. MS. TAKAKURA: Okay. This is an update on the April 7th, 2004, Paia Community Meeting regarding using Hamakuapoko wells as the source of water for that area. Approximately 75 people attended the meeting at Paia Community Center, including Board of Water Supply members Kenneth Okamura and Sally Raisbeck. We gave a brief overview of the wells, and I basically followed that handout that I passed out. And just in summary, let me just go over some of the points. These two wells were drilled in 1992 and 1993 as part of the East Maui Water Development Plan. They were in the first phase of that plan. They weren't used until 1999. That was when they were first used for Upcountry drought emergencies. At that time, GAC, granular activated carbon, filters were installed there. DBCP, EDB and TCP -- and I have the actual names of each chemical on that handout -- those three and nitrates are present in the water. The granular activated carbon filters remove the EDB, DBCP, and TCP to levels at or below the state maximum contaminant levels, MCL. However, the GAC does not remove the nitrate. The nitrate levels range from a high of seven milligrams per liter to the most recent reading, which was last October, at about four milligrams per liter. The maximum contaminate level for nitrates is 10 milligrams per liter. The Department of Water Supply does not have a treatment facility to remove the nitrates. And at this time, we don't know how much that would cost either. I have heard that the nitrate removal facility that the Honolulu Board of Water Supply is building is going to cost them $4 million, but I don't know what size that is. That could be for a much larger facility. Nitrate removal facilities have become necessary in Honolulu and throughout California after continuous GAC operation. And the nitrate levels there are at about half the MCL. A sampling for these contaminants, the pesticides and the nitrates, will be done monthly, and we will be submitting them to the State Department of Health Safe Drinking Water Branch. As far as the plan goes to connect the wells to the Paia system, the earliest that connection would be made would be in a year, so maybe March 2005, and that's if everything goes perfectly. And prior to the connection, the granular activated carbon will be replaced with new carbon before connecting it to the Central system. The attendees at the meeting were very concerned about the contaminants. Even though it does meet the State and Federal standards, studies on long-term health risk are still inconclusive. Looking at the MCL, the maximum contaminant level for DBCP, it's set at a higher risk level, for example, one cancer per 10,000 people, than most other MCLs, which are more likely to be set at one cancer in a billion people. The Department of Water Supply is looking at instead of making a direct connection from the Hamakuapoko wells straight to the Paia tank, we would instead consider pumping the water from the wells up to the Kamole Water Treatment facility, in Haliimaile, prior to sending it to Paia. This would have two advantages. The first thing is the water would be blended with another source at an average of three-to-one ratio, three being the Kamole surface water and one being the Hamakuapoko well water, which may ease peoples' concerns about the levels of contaminants; and, two, excess water produced by the wells that Paia cannot use can be used Upcountry. We are going to look at this further. We are going to review and discuss it with staff, and we will look at all options available and meet with the community again to discuss the proposed action. But at this time, the next community meeting date has not been set. So, any questions? BOARDMEMBER PARSONS: I have a question. CHAIRMAN HIRANAGA: Yes, Ginny. BOARDMEMBER PARSONS: Jacky, do we test -- do we test at our own facility or the DWS facilities for these chemicals, because I have got a couple questions here? MS. TAKAKURA: What do you mean at our own facility? BOARDMEMBER PARSONS: Do we do it at the baseyard? MS. TAKAKURA: Oh, I see. Where is the testing done? We do some tests at our own lab, but for those things, the DBCP, pesticides and nitrates, we send those off to a lab on the mainland. BOARDMEMBER PARSONS: Can you give me a verbal description of the area that we are talking about? I know it's H'poko wells, but what area might this encompass that could be affected? And the reason I am asking this is I learned out in the field this week that there are several private well systems that we have going in, in and around this area, and there are several that already exist. MS. TAKAKURA: Do you mean pesticides in the water? You mean finding them? BOARDMEMBER PARSONS: Yeah. MS. TAKAKURA: I think Ellen might be able to answer that better, but what you have to look at is if the well is at a lower elevation of an agricultural area. BOARDMEMBER PARSONS: There is a lot of development that is going in, in that area, and there are private systems that are being drawn on it. But could you kind of give me maybe a verbal of, it goes from this road to this road, and this road to this road, or possible areas? DIRECTOR TENGAN: Mr. Chair, a general response to that question would be any location downstream of any area that was previously cultivated for pineapple or sugar cane. BOARDMEMBER PARSONS: So, could that affect West Maui as well? Do we have the same problems there, too? DIRECTOR TENGAN: Yes, it could. MS. TAKAKURA: Yes. BOARDMEMBER PARSONS: And then one more question is would -- how do we -- how do we make the public safe? I mean, can they bring water in for testing? Is that a possibility? Even if they are on a private well system, could they bring it to us, or can we tell them where to send it to to check it out? DIRECTOR TENGAN: I would think that if they are on the private system, that they would have to pay for their own analysis. BOARDMEMBER PARSONS: But -- DIRECTOR TENGAN: That's not something that we would provide. BOARDMEMBER PARSONS: But could we tell them where to send it? I mean, most of these people are going to be like -- they haven't a clue. DIRECTOR TENGAN: Well, we have been sending our water for analysis to Montgomery Labs in California. BOARDMEMBER PARSONS: Maybe we could make that information available if they want it. Do you think we should? This is a question in-house here. Should we? I know we don't have anything to do with the private well systems, but what if -- what if these people -- I mean, they don't necessarily know that this is going on. What if they are being affected, and some of these are on, you know, small -- they kind of go underneath that radar, the Health Department. So, how do we -- how can we at least alert them or help them out to check this out? DIRECTOR TENGAN: I suppose through some public education program we could do that. And I am pretty sure the entire community or most of the community Upcountry are aware of the issues. You know, whether it's within the Kapalua, DBCP concern has been in the news. It's been in community discussions. I'm sure people are aware of the issues. But, you know, it wouldn't hurt, at an appropriate time, for us to spread the word that, you know, if you are on a private system, that maybe you should have your water analyzed by a certified lab. BOARDMEMBER PARSONS: I am also thinking there are people coming from the mainland buying these properties. The one we discussed earlier has eight lots on it and he wants to put two wells. Maybe one of our recommendations should be full disclosure of the issues in the area, and that -- you know, that attaches to everything else, that he has to provide this, you know, to the people that are buying his lots, just -- just to safeguard. I mean, not everybody has been here, you know, that bought property. Sometimes they come for vacation, and they buy, and then they move back. DIRECTOR TENGAN: I think that would be a concern of the Department of Health Drinking Water Branch. They also have jurisdiction over private well systems. CHAIRMAN HIRANAGA: I would concur that if the users of -- these parties are not users of the County water system, then it would be under the jurisdiction of the Department of Health to inform people of possible water risks. I think if they are users of the County system, then it's the Department's responsibility to inform users of the potential risk of the water that the County is providing. BOARDMEMBER RAISBECK: Mr. Chair. CHAIRMAN HIRANAGA: Yes, Sally. BOARDMEMBER RAISBECK: I know that there are requirements on real estate agents to disclose certain things when they sell a property. And I think what I heard Ginny almost suggesting was that that disclosure, if there's a possibility that a private well might, or a private system might be drawing water from underneath old pineapple land, that that should be made a part of disclosure. Who requires disclosure by real estate agents of various -- various things? I am not quite sure what they are, but I know somebody requires it. CHAIRMAN HIRANAGA: I believe it is under the Department of Commerce & Consumer Affairs has requirements for disclosure. And if the seller fails to disclose latent information, that is a civil matter between the buyer and the seller. BOARDMEMBER RAISBECK: Thank you. BOARDMEMBER McLEAN: Mr. Chair, if I can make a comment. CHAIRMAN HIRANAGA: Yes, Michelle. BOARDMEMBER McLEAN: I think Ginny's concern is mostly very small, private water systems, because I believe the number is either 15 or 25 service connections on a private system is -- I am speaking from experience -- rigorously regulated by the Department of Health in terms of monitoring and testing protocols. The entire system has to be designed and constructed under their guidelines, which, as you can see here, that the maximum contaminant levels are even more stringent than Federal standards are. But it's the small users that the Department of Health still oversees it, but I don't know what their requirements are for testing and monitoring. So, that might be a simple question for the Department of Health. For the smaller systems, what requirements do they impose on their systems in terms of monitoring and testing. I would imagine that there are some. I just don't know how rigorous they are as compared to the larger private systems. BOARDMEMBER PARSONS: So, maybe what the recommendation might be is that this discussion be before the Department of Health, so that they can, if they want to, which they probably should, make this a part of whatever wells that they determine that they are going to allow to be drilled, but this information, make sure that it's provided to them, and they are kept up to date with it. Because stuff does slide under the radar. And also, I think probably the Planning Commission should be aware of the territory that this affects and where we are finding this right now, so that when they are looking at these subdivisions coming before them, they can -- you know, they can wear that other hat and say -- because there are folks coming in and talking about doing private well systems, and they can wear that other hat and say, well, okay, well then, this is -- maybe they make a full disclosure as part of their caveat. CHAIRMAN HIRANAGA: Thank you, Ginny. Any other questions for Jacky? MR. OKAMURA: I have a couple questions. What is the health risk of nitrate? MS. TAKAKURA: I believe it can get into your bloodstream and take the place of oxygen. It can cause blue baby syndrome. It's especially dangerous to infants and pregnant women. It is not dangerous on the skin. It's only dangerous when it's ingested. MR. OKAMURA: But at this level, at 4.3 million gallons per liter, what is that? It's pretty safe? MS. TAKAKURA: I can't answer that. I mean, what the EPA and State Department of Health considers safe is 10, so that's -- MR. OKAMURA: As far as the DBCP is concerned, if the testing machines now are really good, so when you have a nondetectable level, it's not like it's nonexistent in the water, right? MS. TAKAKURA: With the technology today, we can't really check to zero. When we say nondetectable, in the case of DBCP, that could mean 0.01 micrograms per liter or less. You see that the State maximum contaminant level is 0.04 micrograms per liter. MR. OKAMURA: Why do they -- like usually it's stated in terms of parts per million and parts per billion. MS. TAKAKURA: Right. These are parts per billion. MR. OKAMURA: Parts per billion. MS. TAKAKURA: Yes. The only one in parts per million is the nitrates, 10 milligrams per liter. The others are all in micrograms per liter or parts per billion. MR. OKAMURA: Oh, the DBCP is .2 parts per billion. MS. TAKAKURA: Correct. MR. OKAMURA: The last question I had is H'poko well has so much supply of water, and I was wondering what percentage were you going to allocate to this particular project, and was there going to be any kind of extra that you were going to save for like drought periods for Upcountry, or are you looking at some kind of allocations? MS. TAKAKURA: Average consumption in the Paia service area is about a half-million gallons per day. When the two wells are running at full capacity, their production is about one-and-a-half million gallons per day. So, there is still an excess. And ideally, you would want to be running the wells regularly. You don't want to be shutting them on and off all the time, because that causes operational problems. So, where the excess goes, I can turn that over to George for answers to that one. MR. OKAMURA: Thank you. CHAIRMAN HIRANAGA: Jacky, what is a synthetic organic chemical? MS. TAKAKURA: That means it's a manmade chemical out of organic things. I am not real sure. CHAIRMAN HIRANAGA: Okay. Seems like an oxymoron. MS. TAKAKURA: It's a category that the Department of Health puts all these things in that are manmade pesticides versus organic things or versus like nitrates which can be naturally found. CHAIRMAN HIRANAGA: Why did you note that the GAC charcoal will be replaced prior to the connection to the Central System? MS. TAKAKURA: We decided to do that because that, we think, might help -- well, first of all, it's -- some of it might appease some of the public's concerns. And also, over time, see, the carbon adsorb -- A-D-S-O-R-B -- adsorb gets the DBC to cling to it, and it stays there. And then over time, the carbon fills up. It becomes spent with the DBCP. And you have four sampling points at each filter. There's two filters. The water flows through both filters, and there's sampling points at the 75 percent point, 50 percent, 25, and then the effluent. And you monitor those, and you can see how the filters are becoming spent or how they are filling up with DBCP. And as they fill up, you can kind of plan ahead to know when you are going to need to change it. We are going to change it anyway and start with a brand new carbon when we connect -- make the connection to the Central system. It's about time anyway. We should be doing it anyway. CHAIRMAN HIRANAGA: Why do you say prior to connection to Central System, because isn't the Department proposing to disconnect Paia, Kuau, and Spreckelsville from the Central System? MS. TAKAKURA: No, that won't be disconnected, because if ever Hamakuapoko would go down, we would need that backup source. CHAIRMAN HIRANAGA: But the water will not be entering the Central Maui water system? MS. TAKAKURA: That's right. The farthest it would go, at this point, would be Baldwin Park. DIRECTOR TENGAN: Mr. Chair, Central system here is used in reference to the connection to the Paia system. Paia is part of the Central System. So, it's not as though we are going to connect Paia, and then connect to the, you know, remaining part of the Central System before we change the carbon filters. Prior to us putting the well on line to service the Paia area, we will then be replacing all of the carbon. CHAIRMAN HIRANAGA: So, Sprecklesville is not going to be connected to the Paia system? Spreckelsville will not be serviced with water from H'poko wells? DIRECTOR TENGAN: Initially, I would say that the end point would be the pump station located at the Maui Country Club. The water cannot get back any further into Central Maui without further pipelines. CHAIRMAN HIRANAGA: Yes, Kenneth. MR. OKAMURA: Mr. Chairman, I want to ask the Director a question. In our last meeting, we discussed the H'poko wells, and you said that there was a well near Hog Back Road in Haiku that had potential to produce water, in the statement you said for -- you know, as an additional source. Would it take like -- what would it take? Would it take like a motion, by this Board, to request that you look into it, or is there anything that the Board could do to try to request that we try to move forward with this or at least look into it more deeply? DIRECTOR TENGAN: Mr. Chair, Mr. Okamura is referring to the well to use in the Central area. That's not an option at this point because of the settlement agreement. At this point in time, we don't need any more groundwater sources for the Haiku area, because Haiku, when Kapakalua well is running, the Kapakalua well would be serving most of the Haiku area in addition to the Haiku well. And we have some excess capacity now at the Kapakalua well. So, you know, to make the Hog Back Road well into a production well would be somewhat, I would say, not to our benefit at this time, because we couldn't use it anyway. MR. OKAMURA: I see, because the pump is not in, and it's not geared to be used? DIRECTOR TENGAN: No, because of the settlement agreement, we cannot use that well to bring water into Central Maui even if we had a pipeline connection from Haiku into the Central Maui system. MR. OKAMURA: Would it be a potential source, like, for Upcountry area to replace some of the water used at Kapakalua? DIRECTOR TENGAN: That's possible, but we haven't taken any steps to do that yet, because of our capacities at Kapakalua. BOARDMEMBER RAISBECK: Yeah, that well -- I have just been learning with the stuff about Pookela. That well was drilled as an exploratory well, and it's now capped, or what's the diameter of the casing? Is there a pump in it or not? DIRECTOR TENGAN: Mr. Chair, I am really not prepared to discuss all the details of Hog Back Road. You know, we are talking about Hamakuapoko wells right now. CHAIRMAN HIRANAGA: You can make it an agenda item for next week, because this is really about H'poko wells. BOARDMEMBER RAISBECK: I would like next time -- I will jump the gun a little bit and say not just about the Hog Back Road well, but also Maluhia well. I would like to know what the status is of the Maluhia well north of Makamakaole. Thank you. CHAIRMAN HIRANAGA: Any other questions regarding the Paia community meeting regarding H'poko wells? MS. TAKAKURA: May I just mention that we have another community meeting planned for Upcountry on May 18th, and that's regarding Upcountry proper. And EPA Region 9 staff will be here. Once I have the location set, I will let the Board know. CHAIRMAN HIRANAGA: Thank you. Thank you, Jacky. Next agenda item. CORPORATION COUNSEL KUSHI: Mr. Chair, the court reporter has been going over an hour. CHAIRMAN HIRANAGA: Call for a 10-minute recess. We will reconvene at 11:20. (Recess, 11:08 a.m. Resumed 11:19 a.m.) CHAIRMAN HIRANAGA: I would like to call the meeting back to order. Mr. Kushi, you wish to make a request? CORPORATION COUNSEL KUSHI: Yes, Mr. Chair. On behalf of the Director, I was requested to make this request to the Board. Under other business, it's not listed on your agenda; however, the Director would wish -- the Director wishes to have the Board amend the agenda to place on consideration before the Board the issue of the Board's appointment of committee members to the rate study group. CHAIRMAN HIRANAGA: Steering. CORPORATION COUNSEL KUSHI: Stakeholders Committee. According to HRS, all boards and commissions can or may amend their published and posted agendas, provided that the matter's not of utmost importance. And also, you need two-thirds majority vote. So, in this case, your Board is nine. You need all six of you to concur that you would amend the agenda to put this item on. So, that's the request, and if not, then I guess we can schedule it for the next time. CHAIRMAN HIRANAGA: Are you going to identify the requested agenda amendment, so they can consider it, or we just have to vote whether we are going to amend the agenda without knowing what the request is? CORPORATION COUNSEL KUSHI: The request is to put the item of the Board's appointment to the Stakeholders Committee. BOARDMEMBER PARSONS: Can it fall under what we talked about? CHAIRMAN HIRANAGA: Do you want to explain in more detail what -- who this person might be and why? DIRECTOR TENGAN: Mr. Chairman, when we were forming the Stakeholders Committee and asking for volunteers, we had difficulty in getting someone from Molokai. And the reason is because it's more or less an ad hoc group. The expenses of travel wouldn't be covered by the Department. As of today, we still don't have anybody from the Molokai community sitting in on the committee, and it's a concern of one of the Council members. And, so, I felt that it might be justifiable to have a Board member appointed to the committee representing Molokai to sit in on the Stakeholders Committee, where it would be justifiable for the Department to clear the travel expenses of the Board member. And that's the reason for the request. CHAIRMAN HIRANAGA: Do I have a motion to amend the agenda to consider this matter? MR. OKAMURA: So moved. BOARDMEMBER McLEAN: Second. CHAIRMAN HIRANAGA: Discussion. BOARDMEMBER RAISBECK: Mr. Chair, yeah. I would oppose this motion for the following reason. I think it would be a great idea to have Stacy on that rate setting committee. But, the last -- when I attended the first meeting -- I am not on that committee. When I attended the first meeting of that committee, I was told I had to leave because there were two Board members on that committee, and I would make a third Board member. And the Director, and by phone call, Mr. Kim, in the Corp Counsel's office, said that I could not stay to observe, to sit in the audience quietly, without participating and observe, because that would break the Sunshine Law. I disputed that, but George told me that if I persisted in staying, he would have to cancel the meeting. So, I left, of course. And I did listen to that meeting on tape the following day, which would be my right if Stacy was on the Board. But I want to be able to sit in the audience and see those meetings. I think they are important. So, I will not agree to amending the agenda today. I believe we should defer this to next time when it can be on the agenda officially. I did consult a lawyer, because I was very angry at being ejected. I did consult a local lawyer as to whether that was a correct interpretation of the Sunshine Law. And he told me that the first question should be should that Board be operating through the Sunshine Law. And I decided not to pursue it because of the fact I know it would be very hard for that Board to do its work if they have to follow Mr. Kushi's rulings about the Sunshine Law. So, I did not persist. But I do not wish to be excluded from observing those meetings. So, unless the Department changes its mind, that if two members are sitting on the Board, and I am sitting in the audience, that is an illegal meeting of the Board of Water Supply, I will not be supporting having two members -- two sitting members on that committee. Thank you. CHAIRMAN HIRANAGA: It's my understanding that Mike Victorino will be relinquishing his seat to Mike Nobriga, and Mr. Hashimoto is no longer a Board member. So, if that was to occur, we would have only one Board member on the stakeholders meeting, which would be Stacy, which I don't -- BOARDMEMBER RAISBECK: Excuse me just a minute. CHAIRMAN HIRANAGA: I am speaking. Thank you. Which would not precluding any of us from attending. BOARDMEMBER RAISBECK: I am not sure, under the rules of that committee, that Mike Nobriga has the right to relinquish his seat to Mike Nobriga (sic). CHAIRMAN HIRANAGA: I believe he's relinquishing his seat. The decision was to replace him. BOARDMEMBER RAISBECK: The decision by whom? CHAIRMAN HIRANAGA: The Director. BOARDMEMBER RAISBECK: I don't see that the Director has the right to do that. BOARDMEMBER PARSONS: He does. BOARDMEMBER McLEAN: He does. CHAIRMAN HIRANAGA: Mr. Corporation Counsel. CORPORATION COUNSEL KUSHI: I apologize. I don't know the setup of this rate study group. All I know is it's not a subcommittee of the Board, and it's not a Commission or Board as subject to the Sunshine Law. Therefore, I don't know who appoints the members. I don't know who controls the meetings. I do know that the consultant, which is hired by the Department, has initiated this rate group for public input. That being the case, I can't comment, because it's not a Board or Commission as I know it. DIRECTOR TENGAN: Mr. Chair, as I recollect, it was intended to have two Board members sit in on the committee. Although the composition is somewhat flexible, if the Board is -- you know, desires to have only one sitting Board member, I guess the Board can make that determination. At the other day's meeting, Mike Victorino was going to relinquish his sitting in on the committee to Mike Nobriga, but Mike Nobriga never showed up. So, I don't know what's going on on that part. But, the issue right now is to have somebody sitting in -- somebody from the Molokai community to sit in on the committee and provide feedback from the users on Molokai, so that we can have better representation on the committee. And if a Board members desire -- you know, if a Board member wants to hold up that intent, then so be it. BOARDMEMBER CRIVELLO: May I? CHAIRMAN HIRANAGA: Yes, Stacy. BOARDMEMBER CRIVELLO: I can appreciate Sally's concern and her need or want to participate in the stakeholders meeting. Whether it's myself or if a volunteer can afford to fly from Molokai to participate, if this benefits Molokai, an opportunity to be one of the stakeholders, I would appreciate some consideration. We are isolated. We are separated by waters. And we are not even accessible right the next day to listen to the tapes of the meetings as you are. So, just -- I can understand your concerns and your -- you know, for that. But on behalf of the island -- we call ourselves sometimes the stepchild of Maui. So, we would like to be included. BOARDMEMBER RAISBECK: Yeah. Stacy, I agree with you totally that Molokai needs representation on that Board. I still don't wish to consider it today when it was not on the agenda. I would sooner have it put off till next month, because then all nine members will be here. And I would also like to see what Mike Victorino says about relinquishing his seat before I would -- I think it's wonderful to have representation for Molokai, and I do want to see that, but I don't want to have it decided today. I am sorry. MR. OKAMURA: Although even if we decide not to take it up today, that wouldn't preclude Stacy from attending the meeting if Mike is there. Only if Mike is there. CHAIRMAN HIRANAGA: We would have three Board members are present, but she would have to pay for her own travel expenses. I have no objection to deferring this matter to the next meeting, so that the subject can have more preparation, if the individual who made the motion and the second wishes to withdraw the motion. BOARDMEMBER McLEAN: Withdraw the second. MR. OKAMURA: Okay. Withdraw. CHAIRMAN HIRANAGA: Thank you. Next agenda item, discuss possible action regarding election of Board Chair and Vice-Chair. BOARDMEMBER RAISBECK: Move to defer. Move to defer this item until next month when, hopefully, all nine members can be present. Or not nine, eight. Dorothy Pyle, for the benefit of our new member, is on sabbatical, and she will be in Europe, but she does expect to be back in time for the June meeting. CHAIRMAN HIRANAGA: You are saying defer this to the May meeting not the June meeting? BOARDMEMBER PARSONS: We don't have a June meeting. BOARDMEMBER RAISBECK: Yes, yes. I was just explaining that Dorothy wouldn't be there in May, but everybody else should be. CHAIRMAN HIRANAGA: So, you are making a motion to defer? BOARDMEMBER RAISBECK: Yes, motion. CHAIRMAN HIRANAGA: Is there a second? (Silence.) No second. The motion died. Did we amend the rules of -- I don't know if the rules apply or not. Did we amend -- or maybe the staff can brief us on what the rules are regarding election of Chair or Vice-Chair. CORPORATION COUNSEL KUSHI: Yes, Mr. Chair. The Rules of Practice and Procedure, L-16-102-7, just says members of the Board shall elect a Chairperson and Vice-Chairperson from its members. The term shall be for one year and may continue until such time as successors are duly elected. CHAIRMAN HIRANAGA: I can't recall when I was elected to the Chair. MS. HOWARD: Mr. Chair, that was June 26th. CHAIRMAN HIRANAGA: So, my term would effectively be until June 25th? CORPORATION COUNSEL KUSHI: It says your term shall be for one year or may continue until the successor. BOARDMEMBER RAISBECK: Mr. Chair, there was a motion passed early in -- I don't know which meeting it was, but there was a motion passed that election of the Chair should be held, I believe, in May. We did -- because there was no date specified in that rule, there was a motion passed by the Board. I would have to consult the minutes, but I think it could be in May. I think it could be now and/or it could be in June. CHAIRMAN HIRANAGA: I guess if you had the election, it would be effective July 1. BOARDMEMBER RAISBECK: I don't believe it says that. CHAIRMAN HIRANAGA: Well, it says the Chair shall serve for one year. So, if you make it effective in April, it's less than a year. We need to have the election but make it effective at the end of the one-year term. BOARDMEMBER RAISBECK: I would have to see what the motion actually said that we passed that changed the rules. CHAIRMAN HIRANAGA: Okay. Well, I guess what I would like to see is us decide the process, because in the past, we have had -- in some years, we have had committees, nominating committees. Some years we just nominated from the floor. So, maybe we can have a discussion on what direction this Board wants, whether they want to have a nominating committee or nominate from the floor. Any thoughts? BOARDMEMBER RAISBECK: Since the Board doesn't wish to defer it, I think we should have an election right now then. And I would nominate Mike Victorino as Chair and Ken Okamura as Vice-Chair. CHAIRMAN HIRANAGA: Is there anyone else that wishes to be considered for Chair or Vice-Chair? (Silence.) So, are we voting? Can you vote just for the Chair and not for the Vice-Chair, or for the Vice-Chair and not for the Chair, or is there -- is it a combined ticket? CORPORATION COUNSEL KUSHI: It should be one at a time. It's separate offices, the ticket. BOARDMEMBER CRIVELLO: You don't have a second. CHAIRMAN HIRANAGA: I was just asking a question of Corp Counsel. BOARDMEMBER RAISBECK: I will revise my motion, and I will nominate Mike Victorino as Chair. CHAIRMAN HIRANAGA: Is there a second? No second. MR. OKAMURA: I will second. CHAIRMAN HIRANAGA: Second by Kenneth. Discussion. BOARDMEMBER McLEAN: Do we know if he wants to serve as Chair? BOARDMEMBER PARSONS: That's a good point. CHAIRMAN HIRANAGA: I do not, no. BOARDMEMBER RAISBECK: He spoke to me yesterday and said that he would be running for Chair. Tuesday, Tuesday. CHAIRMAN HIRANAGA: Does anyone else wish to nominate another Board member for the position? (Silence.) Seeing none. BOARDMEMBER RAISBECK: I move the nominations be closed. CHAIRMAN HIRANAGA: Motion to close the nomination for Chairman. Is there a second? BOARDMEMBER McLEAN: Second. CHAIRMAN HIRANAGA: Call for the vote. All in favor of Mike Victorino as the new Chairman please so indicate by saying aye. (Chorus of ayes.) Opposed. (Silence.) Mike Victorino will be the Chairman elect. BOARDMEMBER RAISBECK: Mr. Chair, I would like to nominate Ken Okamura as Vice-Chair. CHAIRMAN HIRANAGA: Is there a second? BOARDMEMBER CRIVELLO: Second. CHAIRMAN HIRANAGA: Discussion. Do you wish to be Vice-Chair? MR. OKAMURA: I would, you know, whatever the pleasure of the Board. I think it's not a heavy job. I can handle that. CHAIRMAN HIRANAGA: So, that's a yes? MR. OKAMURA: Yes. CHAIRMAN HIRANAGA: Does anyone else wish to be considered for Vice-Chair? BOARDMEMBER PARSONS: I would like to nominate Dorothy Pyle. I think she brings a lot of balance to the Board, a lot of information. CHAIRMAN HIRANAGA: There is a motion to nominate Dorothy Pyle for Vice-Chair. Is there a second? (Silence.) No second, so the motion dies. BOARDMEMBER RAISBECK: Move the nominations be closed. CHAIRMAN HIRANAGA: There is a motion to close the nominations. Is there a second? BOARDMEMBER McLEAN: Second. CHAIRMAN HIRANAGA: Second by Michelle. Nominations are closed. Those in favor of the motion to elect Ken Okamura as Vice-Chair, please so indicate by saying aye. (Chorus of ayes.) Okay. Ken, you are the Vice-Chair then. Moving on to the next agenda item, receipt of Board members' request for agenda items to be placed on future agendas. Note Sally's request regarding the Hog Back Road and Maluhia wells. And also request for the addition of a Board member to the stakeholders meeting. Yes, Ginny. BOARDMEMBER PARSONS: I believe there was some requests from Planning -- from the Planning Commission to have the workshop. That came across this week -- this last month to have this on the agenda, and it didn't make it to the agenda. So, they would like for us, I believe -- and Cathy Howard would probably have more information -- to set dates, possible dates, so we can get together to do a workshop with Planning and Water. Put it on the agenda. CHAIRMAN HIRANAGA: Did we receive any written notification of their intent from the Planning Commission? MS. HOWARD: Mr. Chair, we received a letter from one of -- we received a copy of a letter to the Director of Planning from one of their committee members or commission members requesting that. We have not received anything else, and it was a copy of an unsigned letter sent from one commission member to the Director of Planning. I have not seen anything but that. BOARDMEMBER PARSONS: My understanding, we had a phone call. The scheduler made phone calls to the Department. That is what they said. They were expecting it to be on the agenda today. MS. HOWARD: We are looking into that. The Director's secretary has been in contact with one of the Planning Department employees. We are trying to get an answer on whether or not this has been formalized. CHAIRMAN HIRANAGA: Okay. Thank you. BOARDMEMBER RAISBECK: Mr. Chair. CHAIRMAN HIRANAGA: Yes. BOARDMEMBER RAISBECK: I would also like to have, on the agenda next time, a response as to what is the status of the applications for water use permits in the Iao Aquifer. And I would remind us that we have deferred the new member orientation, the presentation on the Department overview, and we also deferred the proposal for a committee to draft revised rules of the Board. CHAIRMAN HIRANAGA: Thank you. BOARDMEMBER RAISBECK: Thank you. CHAIRMAN HIRANAGA: Any other requested agenda items? Moving on to -- MS. HOWARD: Mr. Chair, just to clarify, was the item new member orientation going to be put on the Board's agenda, or were the two new members going to meet in the Director's office for the orientation? If there's only two new members, and Sally does not want to attend, it does not need to be an agenda item. BOARDMEMBER RAISBECK: I want to attend. MS. HOWARD: The same information, so I put it on the agenda. CHAIRMAN HIRANAGA: The other Board member may not be available. MS. HOWARD: That's true. CHAIRMAN HIRANAGA: We will figure it out. MS. HOWARD: Okay. Thank you. CHAIRMAN HIRANAGA: Next agenda item is division reports. DIRECTOR TENGAN: Mr. Chair, the division reports are included in the packe