Pursuant to this Memorandum of Understanding, the Board of Water Supply, County of
Maui ("BWS") and Alexander & Baldwin, Inc. ("A&B") hereby agree to cooperate on
certain matters being discussed by the parties relating to the following subjects:
1. Wailoa Ditch
2. Iao-Waikapu Ditch
3. H'poko Wells
4. Power
5. Central Maui Source Joint Venture ("JV")
6. East Maui Water Development Plan
The implementation of this Memorandum will be pursuant to one or more agreements
to be negotiated and agreed upon as a package. The parties agree as follows:
1. Wailoa Ditch
The 1973 Memorandum of Understanding ("MOU") will be amended (the "Amendment") to
accomplish the following:
(a) Increase the BWS's allotment to 12 mgd with option for additional 4
mgd (per original agreement).
(b) During periods of low flow, BWS to have minimum allotment of 8.2 mgd.
(c) During periods of low flow, HC&S will have a minimum flow of 8.2 mgd
(9.4 mgd should fire flow be required).
(d) When the ditch flow drops below the combined minimum needs of BWS and
HC&S (i.e., 16.4 mgd, or 17.6 mgd with fire flow), then BWS and HC&S
each shall be entitled to receive: (a) its respective-direct contribution
to the ditch flow (i.e., BWS would be entitled to the portion of ditch
flow attributable to ground water it pumps into the ditch, and HC&S would
be entitled to the portion of the ditch flow attributable to its East Maui
lands (30%); and (b) 50% of the amount of ditch flow remaining after
deducting the parties' direct contributions from the total.
(e) During periods of low flow, HC&S will not divert water to lower elevation
ditch systems.
(f) When the three-day average flow in the ditch falls below 55 mgd, BWS shall
fully utilize all available ground water sources to supplement the Upcountry
system and encourage conservation practices by domestic water users.
(g) Extend the term of the MOU for 25 years.
(h) The fee charged to BWS will remain unchanged (six cents per thousand gallons).
(i) BWS to initiate and implement a long-term plan for permanent improvements to
the Waikamoi flume system.
(j) A&B to cooperate in the development of a dual system to serve Upcountry
diversified agriculture.
(k) BWS will develop and implement a stream flow monitoring program to provide
current baseline data.
(l) As long-term agricultural water needs are reduced, a stream restoration
program will be studied, developed, and initiated by BWS.
(m) In return for increasing the allocation of ditch water to BWS, A&B may receive
an appropriate allocation of domestic water (subject to normal system-wide
limitations and conformity with general and community plans), to be mutually
agreed upon in the Amendment.
(n) BWS shall utilize its best efforts to maintain storage levels at 80% of maximum
capacity of both Piiholo and Kahakapao reservoirs.
(o) BWS shall pursue the implementation of additional raw water storage in the
Lower Kula system.
(p) BWS shall cooperate with A&B regarding appropriate permits or leases (short
and long-term) for East Maui waters from the State of Hawaii.
(q) BWS to pursue ground water development for Upcountry Maui to mitigate drought
effects. For example, BWS shall pursue exploratory wells (i.e., Lower Kula
and Pulehu) to supplement the domestic water sources for Upcountry. A&B may
participate in such well development in exchange for an appropriate water
allocation (subject to normal system-wide limitations and conformity with
general and community plans).
(r) BWS to pursue, with HC&S's cooperation, establishing supplemental water sources
to maintain the viability of the Kula Ag Park.
2. Iao Waikapu Ditch
Subject to Wailuku Agribusiness's agreement, a new Agreement Concerning Temporary
Withdrawal from the Iao Waikapu Ditch will be entered into and include the following
terms:
(a) BWS shall be entitled to withdraw up to 300,000 gallons per day from the Iao
Waikapu Ditch, except when the flow in the Iao Stream falls below 11.5 mgd.
(b) BWS shall pay a monthly charge of $2,000 for this allocation.
(c) BWS shall be entitled to take additional water (for a total withdrawal of up
to 2 million gallons per day) whenever the flow in Iao Stream exceeds 55 mgd.
For this additional water, BWS shall pay $0.12 per thousand gallons (not
including water used for back-washing filters).
(d) The term of the agreement shall be two years and may be extended upon mutual
agreement of the parties.
3. H'poko Wells
BWS and HC&S to pursue the following:
(a) BWS to expedite completion of necessary engineering reports and will pursue
approvals to utilize the wells for domestic purposes.
(b) A&B will convey all necessary land and easements to BWS.
(c) Subject to the completion and acceptance of the East Maui Development Plan EIS,
A&B will consider participating in the construction of the transmission line
from the well site to the BWS's Paia system in exchange for an appropriate
allocation of water for its participation.
(d) In consideration of providing such necessary land and easements, A&B may receive
an appropriate allocation of domestic water (subject to normal system-wide
limitations and conformity with general and community plans) to be mutually agreed
to.
4. Power
BWS and HC&S intend to pursue the following:
(a) HC&S will provide appropriate information on its transmission and distribution
system to BWS or its consultants.
(b) HC&S shall provide available power to BWS at mutually agreed upon locations, at
a price not to exceed that paid by Maui Electric. BWS understands that the power
being provided is not "firm", and that it shall be responsible for any necessary
stand-by generators.
(c) BWS shall, with HC&S's cooperation, explore the long-term feasibility of developing
hydroelectric and other alternative energy sources.
5. Central Maui Source Joint Venture
(a) BWS acknowledges that there is an unmet obligation to the Central Maui Source
Joint Venture arising out of the JV's prior development of three wells having an
installed pumping capacity of 13.4 mgd.
(b) Subject to the approval of the other parties to the JV, BWS and the JV shall enter
into a mutually acceptable settlement agreement resolving all outstanding issues
regarding the Central Maui Source Joint Venture.
(c) Any entitlement arising out of this resolution shall be for properties the JV
members own or subsequently acquire for development within the area served by the
Central Maui system; rights may be transferred to a subsequent purchaser or
developer, but may not otherwise be transferred.
(d) Within 30 days of the Memorandum, the Chairman of BWS (and/or his designees) shall
enter into negotiations with representatives of the JV on a settlement agreement
to establish:
(1) Existing usage by members of the JV;
(2) Future usage standards to be applied;
(3) The remaining entitlement of the JV;
(4) The terms and conditions of providing and utilizing the entitlement.
6. East Maui Water Development Plan
BWS and HC&S intend to pursue the following:
(a) BWS to proceed expeditiously with the supplemental EIS for the project as
originally planned.
(b) BWS will assure that stream flow monitoring is an integral part of the scope
of work.
(c) A&B may participate in the project in exchange for an appropriate water allocation
(subject to normal system-wide limitations and conformity with general and
community plans).
IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to
execute this Memorandum of Understanding as of this 13th day of April 2000.
Signed
ALEXANDER & BALDWIN, INC.
APPROVED AS TO FORM AND LEGALITY:
Deputy Corporation Counsel
MAUI COUNTY BOARD OF WATER SUPPLY
Elmer F. Cravalho, Chairperson
Orlando A. Tagorda, Vice Chairperson
Clark S. Hashimoto, Board Member
Adolph M. Helm, Board Member
Michael A. Nobriga, Board Member
Robert K. Takitani, Board Member and Past Chairperson
Howard Nakamura, Board Member
Peter Rice, Board Member
Jonathan A. Starr, Board Member
Department of Water Supply
County of Maui
200 South High Street
Wailuku, HI 96793-2155
Telephone (808) 270-7816
Fax (808) 270-7833