BOARD OF WATER SUPPLY
COUNTY OF MAUI
REGULAR SESSION


Taken at the HGEA Conference Room, David K. Trask, Jr.
Office Building, 2145 Kaohu Street, Room 207, Wailuku,
Maui, Hawaii, commencing at 9:00 a.m. on May 25, 2000.

REPORTED BY:   LYNANN NICELY, RPR/RMR/CSR #354
IWADO COURT REPORTERS, INC.

APPEARANCES:
Members Present:
Elmer Cravalho, Chairman
Mike Nobriga
Jonathan Starr
Clark Hashimoto
Orlando Tagorda
Adolph Helm
Howard Nakamura
Robert Takitani

Staff Present:
David Craddick, Director
Howard Fukushima, Corporation Counsel
Fran Nago, Secretary
Mike Quinn, Fiscal Officer

TRANSCRIPT OF PROCEEDINGS
Regular Session
May 25, 2000, 9:00 a.m.

CRAVALHO:  Will the meeting come to
order?  Even though it's one minute earlier, but
Mr. Rice is not going to be present so all those who
are going to be present are here.

Ms. Nago, will you call the roll of those
present and introduce the members of the public?

MS. NAGO:  We have Mr. Glen Jackson, we have
Mr. Thomas Kafsack, and we have Mr. Yasuo Nishida.
Elmer Cravalho, Chair.  We have Clark Hashimoto,
Michael Nobriga, Jonathan Starr, Orlando Tagorda,
Adolph Helm, Robert Takitani, Howard Nakamura.  We
have our corporation counsel, Howard Fukushima;
Director David Craddick, Fiscal Officer Michael Quinn,
and Assistant Fiscal Officer is Holly Perdido.

CHAIRMAN CRAVALHO:  Thank you.  May the record
reflect that there is a quorum present and we're
prepared to do business.

Approval of the minutes of the previous meeting
which has been sent to all members of this board.
What's the pleasure of the board?

MR. NOBRIGA:  Move that the minutes be reviewed,
30 days, and at a subsequent time filed.

CHAIRMAN CRAVALHO:  Is there a second to the
motion?

MR. HASHIMOTO:  Second.

CHAIRMAN CRAVALHO:  You've heard the motion duly
made and seconded, made by Mr. Nobriga, seconded by
Mr. Hashimoto, that the minutes be reviewed and after
a period of 30 days be filed.  Any objection?  Any
comment?  All those in favor, say aye. Contrary?
Carried.

Testimony from the public.  Is there any member
of the public who wishes to present testimony to this
board at this time?  Oral testimony or written
testimony.

Hearing none, shall we then proceed to Item V of
the agenda, Director's Reports.  Mr. Craddick,
Director's Report 00-26.

MR. CRADDICK:  This item here, what we're asking
for is $10,000 to hook up the well that we just
completed testing, Kanoa II.  If you recall back
December, the board approved $50,000, or maybe it was
January, to get Kanoa I hooked up.  That is hooked up.
We are getting some benefit from that.  With this well
here, we should be able to reduce another .09 mgd or
take it down to about 17 mgd [inaudible] aquifer drop
if we get this well operational.

CHAIRMAN CRAVALHO:  Mr. Starr?

MR. STARR:  Mr. Chair, I move for approval of
Director's Report 00-26 to hook up Kanoa II well and
to operate it, pending approval by the Department of
Health.

CHAIRMAN CRAVALHO:  Is there a second?

MR. TAGORDA:  Second.

CHAIRMAN CRAVALHO:  You've heard the motion duly
made and seconded by Mr. Starr -- made by Mr. Starr,
seconded by Mr. Tagorda, for approval of the hookup in
conformity with all the requirements of the Department
of Health and the State of Hawaii.  Any discussion?
Mr. Takitani.

MR. TAKITANI:  Mr. Craddick, with the completion
of Kanoa Well II, what would that bring the North
Waihee to the capacity of --

MR. CRADDICK:  It will bring it to -- well,
there will be four wells operational, each putting out
a little over 1.5 mgd, so the way we're currently
pumping it, 6 mgd, keep in mind one of the wells of
the first two is a standby well, not your normal
operation.  And we're operating this way just to get
the Iao Aquifer to drive down.  For the long haul, the
combination of all these wells would be around 5 mgd,
I would think.

MR. TAKITANI:  The answer is 5 mgd?

MR. CRADDICK:  Yeah, for normal --

CHAIRMAN CRAVALHO:  Mr. Tagorda?

MR. TAGORDA:  Thank you, Mr. Chairman.  David,
with this temporary pump that's going to be loaned to
the Board of Water Supply, there's a small risk
involved in using that pump and would it be possible
to talk to the owner of that pump, that they will be
responsible to remove the pump when we requested that?

MR. CRADDICK:  They are responsible to remove
the pump.  It's part of the job right now.  What
happened was when they finished testing the well, they
just left the test pump in the hole.  And what they
would have done was pull it out and leave it there
onsite.  They have to remove it.  But let's say they
drop it down the hole.  Now, from my experience, I'm
trying to think if there is any pump that would drop
down the hole that was left and I know there have been
a few where the hole assembly was left down the hole.
But for the most part, there's not been any well that
was lost because a pump dropped down the hole in the
history here in Hawaii, so I think the risk is very,
very small, but still there is that possibility they
could drop it and say hey, I don't want the pump
anymore, you keep it.  So I just wanted to make you
aware of that.

MR. TAGORDA:  There's also one problem on our
agreement shaded with this loaning of pump to the
Board of Water Supply; that is for to be provided
testing is finalized.  And one more thing is what's
the cost of a new pump?

MR. CRADDICK:  Probably run around $150,000.
And we will have the job going by say December or
January of next year, we probably will have the new
pump in.  This is just an interim measure for that
time.

CHAIRMAN CRAVALHO:  Gentlemen, the pending
motion is for the approval, with the understanding
that the comments made by Mr. Tagorda, and with the
further understanding that in the next fiscal year or
thereabout, there may be a need for a brand new pump
to be placed.

All those in favor, say aye.  Contrary?
Carried.  One nay, Mr. Nobriga.

Shall we proceed to the next item.

Mr. Craddick?

MR. CRADDICK:  Next item is we're asking for
$65,000 from the current budget contingency to buy the
wood for the Waikamoi Flume.  In next year's budget,
we have money to do the repair work, but the time of
year that we can do most of the repairs is during the
summer when the flume is running in very low water and
if we don't get the wood now, the summer will go by
the time we order the wood and probably won't be able
to do much on it.  So we're trying to get the jump on
getting the wood ordered.

CHAIRMAN CRAVALHO:  Any further comments?  Or
the Chair would entertain a motion.  Mr. Starr?

MR. STARR:  I move that we approve the request
to purchase the repair material as per the Director's
Report.

CHAIRMAN CRAVALHO:  Is there a second?

MR. TAKITANI:  Second.

CHAIRMAN CRAVALHO:  Seconded by Mr. Takitani.
You've heard the motion duly made and seconded.
Discussion?  Mr. Starr.

MR. STARR:  Yes, I'd like to understand what the
scope of the repair work is that's contemplated for
the summer.

MR. CRADDICK:  We're going to try and replace
the two trestles upstream of this, the one that
collapsed and the one downstream of it.  And the one
downstream is the largest one -- the highest and
longest one that we have.

MR. STARR:  Are we going to replace piece by
piece or are we going to take it down and rebuild it?

MR. CRADDICK:  All three of those pretty much
the foundation has to be rebuilt.  We have temporary
structures in there now holding up the big one.

MR. STARR:  Does that mean we're going to be
without the flume for a period of time?

MR. CRADDICK:  If it's not safe to work, we will
stop the flow in the flume, but I would expect for the
most part it's going to be running.

MR. STARR:  You're not going -- what I'm trying
to get at is are you going to take the whole thing
down in one gulp and then rebuild it --

MR. CRADDICK:  No.

MR. STARR:  -- or are you going to kind of --

MR. CRADDICK:  No, we'll do it trestle by
trestle, leg by leg, and we'll put temporary legs in
to support it while we're working on that one.

MR. CRADDICK:  I for one am happy to see that
we're doing maintenance on it.  It's very important.

CHAIRMAN CRAVALHO:  Mr. Tagorda?

MR. TAGORDA:  Maybe for clarification.  The
$65,000 that you're requesting, is this only for
materials?

MR. CRADDICK:  Yes.

MR. TAGORDA:  And there is the delivery and
[inaudible] is not included here?

MR. CRADDICK:  That gets it to our baseyard.

MR. TAGORDA:  So is this going to be done by
staff or with EMI employee, too?

MR. CRADDICK:  I think it's going to be our
staff.

MR. TAGORDA:  And the materials and the repair
job, is it coordinated with EMI employees as to what
kind of materials, thickness, and --

MR. CRADDICK:  We're replacing it with the same
stuff that we have there now.

MR. TAGORDA:  When you bring in those materials
to that area, EMI will not have any problem at all as
to the thickness, the shape, and as to, you know --

MR. CRADDICK:  I don't know that.

MR. TAGORDA:  Because that was the problem
before.

MR. CRADDICK:  Yeah.  I don't know that.

MR. TAGORDA:  Okay.  Thank you.

CHAIRMAN CRAVALHO:  Mr. Nobriga?

MR. NOBRIGA:  There were no bids received for
this.  How did we estimate the $65,000?

MR. CRADDICK:  Actually we have three bids and
it was bid out, but I think after the bid was finished
we realized that the money that we had in the budget
was all spent.  So it's kind of a large item for a
contingency item, just take it out without informing
the board, so we're here getting the board's
permission on it.

MR. NOBRIGA:  You say that the department
advertised for bids and received none.  Now you're
saying that we have three bids.

MR. CRADDICK:  By the April 5th deadline.  We
received prices afterwards and it will have to be
rebid.  I couldn't know why they didn't get them in on
time, but they weren't -- none of them were responsive
and we have to rebid it again.  But --

MR. NOBRIGA:  $65,000 is the lowest of the bids?

MR. CRADDICK:  No.  I think it was like 63 and
change.  We're rounding it off there.

MR. NOBRIGA:  What was the highest of the bids?

MR. CRADDICK:  Ninety-something-thousand.

CHAIRMAN CRAVALHO:  Any further discussion?
Mr. Starr.

MR. STARR:  Yeah, what were the three bidding
entities, do you remember?

MR. CRADDICK:  Oh, boy.  I know Honsador was
one, Container Home Supply was another one.  And off
the top of my head, I can't remember who the other one
was.

MR. STARR:  And I was wondering if you have the
-- the issue of the AWWA section magazine where they
have an article about the previous replacement to show
the other board members.

MR. CRADDICK:  I don't have it.

MR. STARR:  At a later date the other board
members --

CHAIRMAN CRAVALHO:  Any further discussion?  If
not, are you ready for the question?  All those in
favor, say aye.  Contrary.  Carried.

Report No. 00-28.  Mr. Craddick.

MR. CRADDICK:  Okay.  On this item here, it's
partnership agreement -- West Maui Mountains
Partnership Agreement, some work that we're doing in
that area with the University of Hawaii and the other
partners.  It's for $25,000.  And it says copy of the
relevant page of the budget is attached, and that's
not our budget, that's that overall budget what's
going on.

CHAIRMAN CRAVALHO:  If there is no objection on
the part of members of the board, the Chair would like
to refer this matter to the finance committee.  So
ordered.

Report No. 00-29.  Mr. Craddick.

MR. CRADDICK:  On this one here, the Community
Workday Program also has another program that they do
for cleanup.  It's called the River Cleanup and what
I'm suggesting is that since we own half of North
Waihee, that we do some cleanup work there in North
Waihee River.  We don't know how many people would
want to do that voluntarily, but we're going to limit
the number to around 15 or 20 of our staff people and
felt that because it's not technically related to
work, that the board should decide whether they want
to do this and we would probably provide lunch to
those employees that day.

But we would -- we're not giving any money to
anybody; we're just using our employees' time.

CHAIRMAN CRAVALHO:  Provided however we don't
end up with overtime.

MR. CRADDICK:  Right.  There won't be any
overtime.

CHAIRMAN CRAVALHO:  What's the pleasure of the
board?  Mr. Helm?

MR. HELM:  I think that's good you're doing that
kind of thing.  My wife participates in stuff like
this.  She's an HSDA union member, she's a teacher.
But a lot of the stuff they do in regards to on the
side of the road picking up rubbish and all of that is
done on their own time now.  A lot of it is
volunteer.  So I just like to see this kind of stuff
happen, but if there is any possible way that in the
future you can look at having people in the department
actually volunteer their services for environmental
kind of stuff like this.  Because I see other union
members around the place, especially the teachers,
giving a lot of their own time.

MR. CRADDICK:  Good.  We can look into that.

CHAIRMAN CRAVALHO:  Would it be acceptable to
the board if we say we grant permission for
participation for the first and the last time on this
basis; in the future, voluntary.  Would that be
satisfactory?

MR. TAGORDA:  Is that a motion, Mr. Chairman?

CHAIRMAN CRAVALHO:  Not necessarily.  If there
is no opposition, this shall be it.  May the record
reflect that's the policy.

Shall we go on to Old Business.  Ratification of
the Memorandum of Understanding Concerning Settlement
of Water and Related Issues with Alexander & Baldwin,
Inc.

The Chair would recognize Mr. Takitani for the
proper motion, to be seconded by Mr. Nakamura because
of their work done in this particular document.

MR. TAKITANI:  Mr. Chairman, I move that the
Board of Water Supply ratify the Memorandum of
Understanding Concerning Settlement of Water and
Related Issues with Alexander & Baldwin, Inc.

MR. NAKAMURA:  Second the motion.

CHAIRMAN CRAVALHO:  You've heard the motion duly
made and seconded.  I don't think we need discussion,
but Mr. Starr wants to.

MR. STARR:  Yes, I have a question.  Is there
any other items attached to the agreement that we had
all signed here that is being ratified today?

CHAIRMAN CRAVALHO:  The motion is, as I
understand it, the agreement that had been presented
to the board, period.  That was it.  Nothing added to
it.

MR. STARR:  Okay.  So this is the same agreement
that we --

CHAIRMAN CRAVALHO:  Exactly the same, word for
word, comma for comma, semicolon for semicolon,
whatever, precisely the same.  You've heard the
motion.  All in favor, say aye.  Opposed?  Carried --
may the record reflect that --

MR. TAGORDA:  May the record reflect that I
abstain -- when I signed my -- or affixed my signature
on that Memorandum of Understanding on April 13, it
doesn't mean that I approved or disapproved of the
agreement.  Thank you.

CHAIRMAN CRAVALHO:  Fine.  No problem.  Yes,
sir.

MR. STARR:  I would like to ask if there are any
additional negotiations proceeding in relation to any
of the items mentioned in that agreement at this
time.

CHAIRMAN CRAVALHO:  To the knowledge of the
Chair, the answer is no.  This does not preclude the
committee headed by Mr. Takitani for continuing
negotiations on other items, but not on this
particular thing.

MR. STARR:  I would like to make sure, though,
that if other negotiations are entered into, that the
board is made aware before these negotiations are
entered into and to be given status updates as they
proceed.

CHAIRMAN CRAVALHO:  The Chair understands and
respects your request.  It is the opinion of the Chair
that no condition should be placed on any committee
that would in effect have the tendency to restrict the
activities of a commission or of a committee.

The request for timely reports to this
distinguished body is quite appropriate.  There are no
problems with that.  The Chair has never made any
request of you, Mr. Starr, or any committee chairman
with respect to your time schedules, your meeting
schedules, to your subject matter schedules.  So we
need to have the same degree of trust and confidence
in all members of this board because the reports will
be coming back.

And the Chair thinks -- the Chair would like to
make this known.  The request with respect to
receiving permission from this board prior to is
slightly presumptuous.  The Chair never does that.
And yet the Chair is the Chair.  And never does that.
The same respect and confidence should be extended to
every single member of this Board of Water Supply.
And I think this is proper attitude and the proper
approach to take.  And I look forward to your
participation and help, keeping in mind that this
particular approach is the proper symbol of the mutual
respect that is absolutely necessary.

We've come a long, long way in a relatively
short time.  I don't know -- the Chair doesn't know of
any incident or any development that should detract or
should diminish the mutual trust that we have had up
until this time.  And the opportunity will be there
for people to comment, participate, and do whatever is
necessary on an orderly basis.  Thank you.

MR. STARR:  Mr. Chair?

CHAIRMAN CRAVALHO:  Yes, Mr. Starr.

MR. STARR:  I am not requesting that the board
interfere or need to give permission or in any way
approve what a committee is doing.  All I've been
asking for in the spirit of cooperation is that the
various board members know what is happening in the
way of negotiations and that out of respect --

CHAIRMAN CRAVALHO:  The Chair is going to rule
you out of order if you're not careful.  The point is
well --

MR. STARR:  I have the floor --

CHAIRMAN CRAVALHO:  Do you have the floor,
Mr. Starr?

MR. STARR:  You gave me the floor.

CHAIRMAN CRAVALHO:  Only as long as the Chair
grants it and the Chair can remove it.

MR. STARR:  Are you over -- are you overruling
-- are you removing the floor, sir?

CHAIRMAN CRAVALHO:  One moment.  One moment.  I
will respond to you.  But let's have mutual respect.

MR. STARR:  Do I have the floor?

CHAIRMAN CRAVALHO:  No, you don't, while I
respond to you.  Then you have the floor.  Let's get
this really straight because that I will not
tolerate.

MR. STARR:  Are we suspending the rules to do
this?

CHAIRMAN CRAVALHO:  If you wish to appeal the
ruling of the Chair -- the Chair hasn't ruled.  But if
you wish to appeal the ruling of the Chair, do so, do
so.  I would suggest that would not be the best
possible thing to do under the circumstances.

The Chair recognizes very clearly that you did
not go -- the request was not made for prior
permission.  Avenues are there in place where meetings
are scheduled with proper staff, the office.  Any
person who wishes to receive information merely calls
the office and asks Fran if any committee has a
meeting scheduled.  Because under the Sunshine Law and
under the requirements, all meetings need to be
scheduled, all agendas need to be posted, and so these
things will be followed.  And it's a matter of
course.

If we are aware of any exception to that course,
then that is the right place to bring it to this
body.  And that's all I'm saying.  Let's follow this
type of a procedure.  I think we'll all be much
happier.  Okay?

MR. STARR:  May I have the floor again, please?

CHAIRMAN CRAVALHO:  What new item are you going
to add to the discussion?

MR. STARR:  I have clarification.

CHAIRMAN CRAVALHO:  State your clarification,
please.

MR. STARR:  Okay.  I'm happy with that answer,
so I understand it that any committee work in the way
of negotiations will be done in noticed meetings and
that that was what I wanted to know, whether there was
any negotiations and committees working outside of
these noticed meetings and if there were, I think the
members of the board should know that they are taking
place.  That was my desire and I stand firm on the
belief that that would be the right way to proceed.

CHAIRMAN CRAVALHO:  The Chair has indicated in
the past that there are no meetings to the knowledge
of the Chair that's been taken on by a committee with
results being formalized and finalized without the
knowledge of this board.

The Chair does not recognize and will not
approve or participate in any activity which will have
a tendency, directly or indirectly, to muzzle, to
reduce the opportunity for members of this board,
individually or collectively, to seek information one
way or another in the same manner that every member of
this board, as I understand it, has done so in the
past.  That's a matter of record.  So shall we
proceed.  Any member of the board, Chair included,
should not participate in the form of censoring or
restricting the free flow of discussion and
information.  The Chair stands equally convinced and
equally adamant on that.  Shall we proceed to the next
item, please.

Under Communications.  Communication 00-14
regarding the salary commission.  If no objection,
filed.

Communication 00-15 from the Honorable Chair of
the County Council, Patrick Kawano.  Refer to the
committee on oversight.

Request from Thomas Kafsack for approval of ag
rates and waiver of the fire protection requirements.
It is the understanding of the Chair that the matter
on the agricultural rates had been resolved.

MR. KAFSACK:  Yes, it is.

CHAIRMAN CRAVALHO:  With respect to the question
of the waiver of fire protection, that matter is
referred to the committee on oversight as others
have.

Request of Yasuo Nishida of Pukalani Country
Club for reduction in the water system development
fee.  The position of the Chair is to refer this to
the finance committee where you will be given the
opportunity.  Same thing with respect to communication
00-18, request from Roy Okumura, oversight committee.

MR. NOBRIGA:  Oversight committee.

CHAIRMAN CRAVALHO:  Yeah, that's you, son.
Next, invitation from Mr. Holaday.  Members of the
board are requested to respond as they wish to to the
invitation.

Other Business.  Quarterly update on USGS
monitoring of Iao Aquifer status.  Mr. Craddick, do
you have anything to add to it?

MR. CRADDICK:  Nothing to add.  I'm kind of
encouraged here on page 45, if you look at the deep
monitor well there, you can see that the 675 foot is
-- you see a break in the steep climb of the
chlorides down there, so that's encouraging.  And then
you see at 655 where it actually dropped back, so we
may finally be seeing a response of the aquifer to the
keeping the pumpage below 20.

CHAIRMAN CRAVALHO:  Item B, scheduling of a
public hearing for the proposed operating and CIP
budgets for the fiscal year of 2001.  Mr. Rice isn't
here, but Mr. Nakamura is here and I imagine that he
is able to make a representation of both committees.

MR. NAKAMURA:  Thank you, Mr. Chairman.  While
Mr. Quinn passes out his hand-outs here, let me just
make a very brief report.  Both the finance committee
and the capital programs committee have had the
opportunity to preliminarily renew the proposed budget
for fiscal year 2001.  There were several issues that
were discussed and clarified with Mr. Quinn and
Mr. Craddick, including items such as equipment
replacement, electricity costs, personnel costs.

One of the major recommendations of the
committees, although we did not meet jointly, we have
had consensus, is that we should look for ways to fund
replacement on some sort of an organized, orderly
basis annually by setting aside funds.  We have
recognized that there will be additional changes
required to the amended draft budget that has been
prepared and circulated.  We recommend that the board
authorize a public hearing to be held in accordance
with law, and subsequent to which the committees will
make more specific recommendations to the board for
ultimate approval of the budget.

There is a -- you will find a report from
Mr. Rice and a report from the capital programs
committee which basically summarizes the status as I
briefly indicated.  So, Mr. Chairman, I would move
that the board authorize the draft budget as presented
to be -- a public hearing to be conducted on that
draft budget.

CHAIRMAN CRAVALHO:  That is with respect with
the operating as well as the capital improvement.

MR. NAKAMURA:  That's right, operating and
capital.

CHAIRMAN CRAVALHO:  Is there a second to the
motion?.

MR. NOBRIGA:  Second the motion.

CHAIRMAN CRAVALHO:  You've heard the motion duly
made and seconded that a public hearing be established
and declared in conformity with law on the proposed
budgets, both capital improvements as well as
operating budget.  Any discussion?  If not, are you
ready for the question?  All in favor, say aye.
Contrary?  Carried.  Okay.

Possible action regarding the Upcountry water
situation.  Mr. Craddick?

MR. CRADDICK:  Yes, I have passed out what the
current situation is there and Wailoa Ditch is at 37.6
mgd or 19 percent of capacity.  Kamole treatment
plant, we are using Hamakuapoko wells and it looks
like we are getting a little over 1.5 mgd there from
the wells.

The Piiholo treatment plant is at 49 mgd, the
reservoir.  Waikamoi is empty.  Kahakapao is at 91.5
percent.  Olinda is running at about .8 mgd.  One
thing at Olinda there, we could probably cut that back
more, but one of the pumps at Natamatsu was put in in
1975 and we're going to replace it.  So we'll probably
have an agenda item for the board the first meeting
there in June.  But we replaced one of the pumps there
last year and we need to replace the other one to get
it to where we can pump 3 mgd to that system.  And if
we do, then we should be able to get the water
production down to around 100,000 a day.

And then the Upcountry water system demand is
about 8.5 mgd and it's running in that range there
between 7.5 and 9.5 over the last week.

CHAIRMAN CRAVALHO:  That covers Kula, Makawao,
and Haiku.

MR. CRADDICK:  Right.  Right.  And then -- oh,
and then one other thing, too, is that we are -- it
doesn't cover the pumpage from the Haiku well and my
understanding is that they have started pulling the
temporary pump at Kapakua well, so possibly next week
sometime the permanent pump will be in.  I believe
either Friday or Monday they actually put the meter in
for Maui Electric so the station is electrified now
and they have done testing on the controls and it
appears that's all functional.

CHAIRMAN CRAVALHO:  Based on a timetable, when
do you anticipate or when is it anticipated that the
Kapakalua wells, the Dowling wells, will be
operational and in a position for us to accept?

MR. CRADDICK:  I believe the well probably will
be operational within the first week of June.  As far
as acceptance, I see Herb nodding his head no there,
so there must be some other issues.  I would expect
the water will be able to go into the system around
that time, but --

CHAIRMAN CRAVALHO:  First week in June?

MR. CRADDICK:  Yes, but I --

CHAIRMAN CRAVALHO:  Don't you want a little
leeway?

MR. CRADDICK:  Well --

CHAIRMAN CRAVALHO:  Yes, Herb.

MR. CHANG:  I think he's a little bit
optimistic, but I think --

CHAIRMAN CRAVALHO:  I think you're right.

MR. CHANG:  I think middle the June.  Get all
the kinks out, maybe the latter part of June.

CHAIRMAN CRAVALHO:  I would think so.  Between
the third week and -- if sooner, fine, but third week
to the ending of June.  Okay?  Yes, sir.

MR. STARR:  I would like to know -- we are doing
a lot of pumping and the system is being buoyed, kept
up by the pumping now.  If the ditch continues to
fall, at what point would it reach the spot where we
would not be able to keep up?

MR. CRADDICK:  I think the MOU said 16 and some
fraction of a million gallons.

MR. STARR:  So in other words, as long as it
stays above 17, then we won't have a problem keeping
up with this 8, 9 mgd demand; is that correct?

MR. CRADDICK:  That's correct.

CHAIRMAN CRAVALHO:  And that would be -- the
amount to be recovered or taken from the ditch would
be -- would not be affected by what is put in by
H-Poko.  Whatever is put in by H-Poko is ours anyway
and we can get that 1.5 or 2 plus whatever fractional
amount comes from the supply in the ditch system.  So
it appears that with prudent control and management
and cooperation of everybody, we will be able to
weather and take care of the situation.

And if the worst comes to the worst, I would
suggest that the department looks into this.  That's
with respect to the well closer to the Pulehu area
where the ill-fated golf course had been scheduled to
go into and possibility of using that to put water
into the ditch system and therefore allow us more on
the other side for pumping purposes.

So I think when we look at the totality of the
right of withdrawals, what can be available from
H-Poko, and anticipate the Dowling situation,
anticipate the potential of the Pulehu area, we have
ample water and to be in a position of making sure we
deliver.  So your pump is necessary, a second pump is
necessary in that Upcountry area.

MR. CRADDICK:  Yes.

CHAIRMAN CRAVALHO:  But it appears that we seem
to have the system pretty much under control and the
agreements that you people worked out are very, very
good as long, as we continue to meet those
requirements.  Yes, sir.

MR. CRADDICK:  Just in the worse case event that
is absolutely no rain on East Maui, I would just like
to request that if the ditch gets down to say 25, then
say an emergency meeting get called and some other
action taken to deal with it before we get to a crash
situation.  And I doubt we will get to that.  But just
in that worst case event.

CHAIRMAN CRAVALHO:  The Chair wishes to assure
you that a special meeting will be called for those
purposes.  Mr. Nobriga?

MR. NOBRIGA:  Is it appropriate for us to take
action to support the pumping of water at this time or --

CHAIRMAN CRAVALHO:  We are pumping already.

MR. NOBRIGA:  Yeah.

CHAIRMAN CRAVALHO:  That's part of the agreement.

MR. NOBRIGA:  So no action is actually required
from the board.

CHAIRMAN CRAVALHO:  Not at this stage.

MR. NOBRIGA:  Thank you.

CHAIRMAN CRAVALHO:  Not at this stage.  But we
may potentially, because we are already utilizing the
pumping requirements and the conditions of the
agreements.  That's an ongoing kind of thing.  That's
my understanding.

Anything else to come before this distinguished
body?  Mr. Nakamura.

MR. NAKAMURA:  Mr. Chairman, just a couple of
quick things.  Making the board aware of Mr. Rice's
committee report from the finance committee, I did
neglect one specific item which was a little bit
outside of the authorization for public hearing, which
is that one of the items that was discussed was the
issue of the rental paid for the baseyard facility.
And the finance committee suggested that this issue
could perhaps be referred to the legislative committee
for followup in trying to bring it to resolution so
that we would be able to deal with it during the
budget process.

CHAIRMAN CRAVALHO:  May the record reflect that
the recommendation is accepted and the matter is
hereby referred to Mr. Hashimoto and his committee.
Anything else?  Yes, sir.

MR. HELM:  Yes.  Mr. Chair, this is in regards
to a conversation I had with the supervisor in charge
of the water department on Molokai.  He was concerned
about where the status of the CIP for the upcoming
fiscal year was at because he had some concerns about
some immediate problems that he deals with every day.
So I would just like to suggest once we go through the
process of a public hearing and we move forward on
that, that we sort of look at some of the CIP
projects, especially the Wakea Loop one which he was
concerned about.  And once that's approved, if we can
expedite and move forward in getting some of those
problems taken care of because the people are going
through some hardships there in dealing with problems
with the water system.  And that's based on the age of
the waterline and the quality of the water going
through that waterline.  So that's --

CHAIRMAN CRAVALHO:  May the record reflect the
request.  The Chair suggests and recommends to
chairman of the CIP committee, capital improvements,
to give that attention on a priority basis so that
we're able to roll.

Anything further?  Mr. Starr.

MR. STARR:  I just want to favorably comment on
two meetings that I attended in the last week.  The
strategic planning session, open session on Monday,
which Mr. Nakamura had put together, I thought was a
really excellent experience.  I think that it brought
a lot of the ideas that had been put together in the
strategic plan into a greater perspective, gave a lot
of different elements of the community opportunity to
comment on them, and I just felt that it was handled
very well and would like to compliment Howard on a
very good process which he's been leading us on.

And secondly, last week I went to the Hawaii
section of the American Waterworks Association
convention in Honolulu and there were some interesting
sessions, most of them technical, a lot of them about
EPA stuff.  But the best of the sessions that I sat in
on was a presentation by our own Walter Hagar who
talked about -- gave a presentation on our
microfiltration plants and the problems we've had, how
they resolved them, and how the plants work, and it
was just an excellent presentation that was very
honest, had great photographs and a really good power
point presentation, so I would just like to compliment
Mr. Hagar for a job well done on that and I think
everyone in the audience was impressed by how
knowledgeable and how good a job he did.

CHAIRMAN CRAVALHO:  Mr. Helm?

MR. HELM:  Yes, Mr. Chair.  I would like to
[inaudible] Mr. Starr's comment on the committee that
Mr. Nakamura chairs in regards to the strategic plan.
I noticed one item in there that I felt good about and
he had mentioned it's in regards to the ability of
looking into providing more resources for the
Department of Hawaiian Homes Land and I think very
important that the Board of Water Supply really look
at some of those issues.  And I'm glad that was -- I
appreciate it.

CHAIRMAN CRAVALHO:  Anything else?
Mr. Nakamura?

MR. NAKAMURA:  I just wanted to say that
subsequent to the public meeting that Mr. Starr
referred to, that the committee will be getting
together and reviewing the comments that had been
received both in writing and at the forum and coming
up with a revised draft to present to the board.

CHAIRMAN CRAVALHO:  Mr. Craddick?

MR. CRADDICK:  One other, Jonathan kind of went
over the one item discussed with the public and I'll
go over another one there.  There was a seminar put on
with the Groundwater Foundation and the State
Department of Health and ourselves cosponsored it.
Ellen's planning department gave a very good
presentation and such a good presentation that the EPA
wants to give us $70,000 to continue in that effort to
get --

CHAIRMAN CRAVALHO:  $7,000 to the board or
$7,000 to the administration?

MR. CRADDICK:  It all comes through the board.

CHAIRMAN CRAVALHO:  Thank you.  Seventy.

MR. STARR:  I would like to make it clear -- I
didn't want to belittle that presentation; I just
wasn't there.  There were three things happening at
any given time.

MS. KRAFTSOW:  I just want to say they're
interested in giving it to us.  It doesn't necessarily
guarantee that they will give it to us.

CHAIRMAN CRAVALHO:  Spoken like a true
government official.

Any other matter to come before this board?  If
not, the meeting is hereby adjourned.

(WHEREUPON, the meeting was adjourned.)