DEPARTMENT OF WATER SUPPLY
COUNTY OF MAUI
RATE STUDY STAKEHOLDERS COMMITTEE 
MEETING MINUTES


 
KAHULUI SHOPPING CENTER, UNIT 29
TUESDAY, MARCH 16, 2004


The first meeting of the Water Rates Stakeholders Committee began at approximately 9:15 a.m.

INTRODUCTIONS
	George Tengan, Director of the Department of Water Supply, opened the meeting, thanking 
the members for their involvement, and introduced Department of Water Supply staff present:

Jeffrey Pearson, Deputy Director
Jacky Takakura, Administrative Officer (meeting facilitator)
Holly Perdido, Fiscal Officer
Cathy Howard, Secretary (staffing meeting)
Paul Seitz, Treatment Plant
Alva Nakamura
Ellen Kraftsow
Edna Manzano
Mike Cabral

	George Tengan introduced Ann Hajnosz, R. W. Beck, consultant for Rate Study.
	Ann Hajnosz introduced herself and Richard Cuthbert from Seattle office of R. W. Beck and 
thanked committee members for participating.
	Stakeholder Committee Members introduced themselves.  Those present:

Elliott Krash, Kula Community Association
Warren Watanabe, President, Maui County Farm Bureau
Joseph Pluta, President, West Maui Taxpayers Association
Clark Hashimoto, representing agriculture
Michael Victorino, Vice Chair of the Board of Water Supply
Ron Sturtz, President, Maui Tomorrow Foundation
Scott Jensen, Maui County Office on Aging
Bruce Faulkner, member Maui Realtor's Association
Jim Williamson, Kihei Resident
Brenda Lee, Maui Hotel Association, Alternate for Lani Correa
Mike Quinn, Former Fiscal Officer of DWS
Lani Correa, Maui Hotel Association


AGENDA & GOALS AND OVERVIEW OF ROLES AND RESPONSIBILITIES
	Jacky Takakura presented the agenda and goals of the day's meeting and gave an overview 
of the roles and responsibilities of the committee, including the history of last rate study, the 
relationships with the Department, Board, and Council, communication protocols – material to 
be provided to Board, County Council and Stakeholders Committee one week before Board 
meetings.  Jacky also communicated that committee chair's would represent committee at 
Council and Board meetings, as necessary.  Jacky concluded with the goal of the committee, 
which is to produce letter of support for rate recommendation or other input to the Mayor.


OVERVIEW OF RATE PROCESS
	Ann Hajnosz spoke on when committee members would receive data and presented 
summary of slides shown at the January 29, 2004, Board of Water Supply meeting.  Spoke on the 
phases of the scope of services of the rate study: the revenue requirements analysis and the cost 
of service analysis.  	Ann answered questions and concerns from committee member Jim 
Williamson regarding the types of data and considerations necessary to include in the rates study.
	Ann Hajnosz spoke on rate-setting approach.  Ann answered Mike Quinn's question 
regarding customer groups and customer data availability.
	Jim Williamson spoke on wastewater treatment as partial relief of the aquifers.
	Mike Victorino stated desire for fair and equitable treatment for all and need to look outside 
box for rate-setting possibilities.
	Ron Sturtz stated concern that riparian rights and environmental interests be considered.
	Elliott Krash wanted scarcity of resource considered and that principles set in committee be 
followed.
	Mike Quinn stated replacement program integrated into CIP should be considered.
	Ann Hajnosz closed with committee members input taken into consideration.


OVERVIEW OF COMMITTEE ORGANIZATION
	Richard Cuthbert provided overview of the stakeholders committee organization with note 
that the organization models provided are options for consideration, up to the committee, but 
what has worked elsewhere.  Discussed possible structure, function, and focus.  Stated that 
committee would be more focused on the rate-setting review than the utility review.
	Jim Williamson discussed formality of committee meeting.
	Richard Cuthbert discussed voting vs. general input.
	George Tengan advised that committee not subject to Sunshine Law per Corporation 
Counsel opinion.
	Richard Cuthbert spoke on rules and procedures, with respect to process, decision-making, 
roles, and responsibilities.
	George Tengan spoke on procedures for alternates.
	Mike Victorino discussed alternates, formality, focus, and mutual respect.
	Joseph Pluta spoke on the committee role as rate-setting review vs. utility review.
	Mike Quinn answered Joseph Pluta in what he thought the committee could provide as to 
rate-setting information.
	Richard Cuthbert answered concerns as to committee organization and question of 
alternatives as well as committee role as rate setting review, not utility review.


DISCUSSION ON STAKEHOLDER COMMITTEE ORGANIZATION
	Mike Victorino spoke on importance of committee, structure of committee and choosing 
chair and vice chair at following meeting.
	Lani Correa spoke on importance of alternates.
	Elliott Krash spoke on importance of alternates with stipulation that the alternates are kept 
up to speed.
	George Tengan asked that members notify Cathy Howard of their alternates.
	Jacky Takakura asked committee what structure they would like, Chair and Vice Chair, with 
agendas being mailed to members.
	Ron Sturtz spoke on agenda posting and transparent a process as possible.
	Elliott Krash asked about function of the committee.
	Richard Cuthbert clarified function of committee is to come up with a rate recommendation 
to provide input to the Board, the Mayor, the County Council.
	Jacky Takakura stated focus of committee is to look at rates, and asked if there were any 
other questions regarding structure, function, and focus of committee.
	Jim Williamson stated that he wanted to be able to express opinions on the function of the 
department as it has a bearing on the rate study.
	Elliot Krash agreed about broad range of topics.
	Ron Sturtz emphasized the bottom-up structure of this process.
	Mike Quinn agreed that CIP and operating cost concerns will be involved in decision 
making on the rate structure.
	George Tengan added that members of the committee, as members of the public, have many 
avenues to share their opinions, as well as this one, in the government process.
	Clark Hashimoto spoke on committee's importance.
	Ann Hajnosz addressed concerns on restricting scope of topics of discussion.
	Richard Cuthbert said that Department was available to provide backup information.
	Mike Quinn asked about debt service ratio.
	Ann Hajnosz said it would be included in discussions.
	George Tengan said that debt service ratio is part of County's.


RATE STUDY SCHEDULE
	Ann Hajnosz went over the Rate Study Schedule and said that it was a draft that can change 
as committee provides input.  Ann stated importance of keeping up with goals and staying 
focused.  Ann also said that she would be at meetings of the committee, Board of Water Supply, 
and County Council to keep everyone informed of process.  Ann said process is geared toward 
setting new rates in July 2005.
	Jim Williamson asked if Chair of committee was going to be presenting at the June 
meetings.
	Ann Hajnosz answered that she would be presenting, but it would be good if chair could 
attend.


NEXT STEPS
	Ann Hajnosz asked that role of chair and vice chair be discussed and consider who 
committee wants for those positions by the next meeting.
	Ann Hajnosz asked for comments on the rules and procedures to Jacky so that a modified 
Rules and Procedures be available at next meeting for committee approval.  Ann asked that 
members get input from their respective groups for input on issues that need to be addressed in 
the committee.  Additional agenda items need to go through Jacky 14 days in advance of the 
following meeting.
	David Ching from Mayor's office advised that schedule would need to be stepped up in 
order to get the rate increase through the budget process for fiscal year 2006.  Said that the 
County Council would need to be able to recognize the rates and the Water Department would 
need to be able to budget for those rates and be able to present that budget through the Mayor by 
March 15, 2005.


ADJOURN
	Jacky Takakura adjourned meeting at 11:00 a.m. and thanked members for their time.