BOARD OF WATER SUPPLY
COUNTY OF MAUI
REGULAR MEETING


Taken at the David Trask Building, Conference Room 207,
Wailuku, Maui, Hawaii, commencing at 9:00 a.m. on
September 28, 2000 pursuant to Notice.

REPORTED BY:  GLORIA T. TAVARES, RPR/CSR #262

ATTENDANCE - Board of Water Supply Meeting, September 28, 2000
Members present:      
Elmer Cravalho, Chair
Mike Nobriga
Jonathan Starr
Orlando Tagorda
Adolf Helm
Howard Nakamura
Bob Takitani

Staff present:        
David Craddick, Director
Herb Chang, Engineering
Jacky Takakura
Mike Quinn
Howard Fukushima, Corporation Counsel
Fran Nago, Board Secretary
Shirley Falcon, Clerk Typist
     
IWADO COURT REPORTERS, INC.

CHAIRMAN CRAVALHO: The regular meeting of the Board
of Water Supply of the County of Maui comes to order.
Ms. Nago will check the roll.

MS. NAGO: We have Chair Elmer Cravalho, board member
Mike Nobriga, board member Peter Rice, board member Jonathan
Starr, Orlando Tagorda, Adolf Helm, and Howard Nakamura.  We
also have director David Craddick, deputy corporation counsel
Howard Fukushima, Mike Quinn, Jacky Takakura, Tom Rack, Paul
Seitz, Natalie Powell.  We have Doya Nardin, Mark and Denyse
Collins, we have David Niehaus, Mathilda Cravalho --  Carvalho,
Jackie Tavares, Marty Oostema, Marina Freitas, Jeff Ing.  We
have Glen Jackson and Carolyn Moore.  We also have Peter
Stolle, Hugh Starr -- and I'm sorry, your name is --

MR. LINDSEY: Henry Lindsey.

MS. NAGO: We have Thomas Kafsack and Inga Kafsack.

CHAIRMAN CRAVALHO: Thank you.  The minutes of the
meeting of August 24th, the year 2000.  What's the pleasure of
the Board?
Mr. Nobriga?

MR. NOBRIGA: Move that we receive the minutes of the
meeting and have it reviewed for 30 days, at which time there's
no corrections, additions, deletions, it shall be filed as
provided.

CHAIRMAN CRAVALHO: Is there a second?

MR. RICE: Second.
                           
CHAIRMAN CRAVALHO: So moved by Mr. Nobriga and
seconded by Mr. Rice that the minutes be received for a period
of 30 days, upon which time the members have the opportunity,
as well as the public, to review for additions or corrections.
Following the 30-day period, if there are no
additions and/or corrections, the minutes shall be filed as
though proved correct.
Further motion.  All in favor say aye.
(A chorus of ayes.)
Contrary.  Carried.
Shall we then proceed for testimony from the
public?  Any members of the public wish to make testimony at
this time?
This will not preclude members of the public being
able to make comments on any subject matter that comes up
subsequently.  If you testify, you have a position to make at
this time, you do not waive your right to discuss other matters
at any subsequent time during that meeting.
Is that clear?  Okay, fine.  Shall we then proceed.
Directors report 00-36.  A request for additional
funding for the Paukukalo waterline replacement.
Mr. Craddick, do you wish to advise us of the latest
developments?

MR. CRADDICK: The Burial Commission is meeting.
They would like to come over and address the Board in a half an
hour.  If we could defer this item until then.

CHAIRMAN CRAVALHO: No objection.  Deferred.  So ordered.
Directors report 00-37.  Request approval for the
partial release of agreement for deferral of subdivision water
system improvements for for Kulamanu.
Discussions, Mr. Craddick?

MR. CRADDICK: On this matter here, it's a request
from the subdivider to do this.  We have no objection with the
request.  But if the Board wants to refer it to committee,
that's all right.

CHAIRMAN CRAVALHO: The Chair would like to refer it
to the committee in operations.
Mr. Starr?

MR. STARR: My pleasure.

CHAIRMAN CRAVALHO: No objection. So ordered.
Committee reports from the committees on finance and
capital improvements.
Mr. Nakamura?

MR. NAKAMURA: Mr. Chairman, the committee report has
been circulated and moved for the adoption of the committee
report and the authorization of the listed pipeline replacement
and contingency fund.

CHAIRMAN CRAVALHO: Is there a second?

MR. RICE: Second.

CHAIRMAN CRAVALHO: You've heard the motion duly made
and seconded for the adoption of the committee report thereby
adopted by all the recommendations as enumerated in the
committee report that has been circulated to the members of the
Board.
Any discussion?  If not, are you ready for the
question?  All those in favor say aye.
(A chorus of ayes.)
Contrary. Carried.
From the committee on oversight.  The Chair
recognizes Mr. Nobriga.

MR. NOBRIGA: Mr. Chairman, the committee report of
oversight has been circulated, and a motion would be in order
for its full acceptance.

CHAIRMAN CRAVALHO: Is there a second to the motion?
Hearing none, the motion made has not been approved
or passed.  It is the recommendation and suggestion of the
Chair that all matters enumerated there on the said committee
report be referred back to the entire Board, and we shall
handle it at the very next meeting.
No objection.  So ordered.
From the Rules Committee.  The Chair has a dual
function as chair and chairman of the Rules Committee.  The
report has been circulated, made available to all members.
Very clear.  Very simple.  It is the recommendation of the
Chair, there's no objection by unanimous consent, that the
report of the Rules Committee hereby adopted them and will
follow through upon it.
No objection.  So ordered.
From the Operation Review and Evaluation Committee.
Mr. Starr.

MR. STARR: Yes, sir, the Operation Review and
Evaluation committee met on September 5th for public testimony
regarding public record of Board of Water Supply committee
meetings.
It was noted that one Board of Water Supply member
has previously requested that verbatim minutes containing
everything said at the meetings be kept and made available for
all board and committee meetings.
It's noted that HRS 92.9 (a) states:  Any other
information that any member of the Board requests be included
or reflected in the minutes.
The minutes shall be public records and shall be
available within 30 days after the meeting.
Currently the Board is in violation of 92-9(b) in
that minutes for many committee meetings have not been made
available within 30 days due to lack of staffing.  It is
believed that the most effective way of getting and keeping
minutes up-to-date is to use verbatim minutes.  This will allow
the Board to be in compliance with the Sunshine Law and meet
the desires of the public and Board members.
As such, the recommendation of the Committee is
summed up in the following motion, which was passed by the
Committee.
It is moved that verbatim minutes for both committee
and board meetings be implemented in compliance with state law
and that various mechanisms be explored as to the best way to
get past and future minutes completed in a timely and cost
effective manner.

CHAIRMAN CRAVALHO: If there are no disagreements,
may the record reflect the acceptance of the committee report.
The Board shall review said matter at the next meeting together
with any and all other rules and regulations and statutory
provisions, including the rules of procedure and the reference
to the Roberts Rules of Order and as it may relate to this
particular recommendation.
If there are no objections, so ordered.
Shall we proceed therefore to the next item.
Old business.  Discussion of possible action
regarding Peter Stolle versus David Craddick.
There's a communication from the office of
corporation counsel.  It is the understanding of the Chair that
the communication from the corporation counsel makes two
particular points: A, that the request that's been originally
submitted some time ago with respect to the hiring of separate
private counsel for Mr. Craddick is hereby withdrawn by the
office of corporation counsel.  And he is submitting to us a
request that has been received by the office of corporation
counsel from the attorney of Mr. Stolle for a potential
settlement.
May the communication be received and arrangements
made for review?

MR. RICE: So moved.

MR. STARR: Second.

CHAIRMAN CRAVALHO: You've heard the motion duly made
by Mr. Rice, seconded by Mr. Starr that the Chair's
recommendation be followed.
All those in favor say aye.
(A chorus of ayes.)
Contrary. Carried.
A request from Carolyn J. Moore of Berean Mission
for a waiver of the subdivision requirements.
Is there anyone here?
Yes, ma'am.

MS. MOORE: Should I speak over here?

CHAIRMAN CRAVALHO: Anywhere you wish to.

MS. MOORE: This is a somewhat simple but complicated
request.  Berean Mission is dissolving, and they are turning
their assets and everything over to another mission in
Philadelphia named UFM International.  That mission has no
desire to own property in Hawaii and would like to give the
property to the ministries that are here, the Haiku Bible
Church and the houses to Doris Todd School for housing for
their teachers.
There's no intention of building or making any
property changes at this time.  It would just simply be a title
transfer.  So the water need would really not change for the
people living there or for the church.  It would remain the
same.
I'm trying to make it as simple as I can, but I
wonder if you have any questions about it.  We realize that the
water is not enough, but we also realize that we're in a
drought condition with the moratorium.  And I believe that the
water department has put us on a priority list for upgrading
water meters.  But we're really not planning any building or
construction or any changes at this time.

CHAIRMAN CRAVALHO: Any other discussion?  It is the
understanding of the Chair that a request is for a waiver --

MS. MOORE: Exactly.

CHAIRMAN CRAVALHO: -- to allow the subdivision.  It
is also the understanding of the Chair that at the present
time, this five-eighth meter does serve the property including
five operations or five units there.  There are to be no
changes.

MS. MOORE: No changes.

CHAIRMAN CRAVALHO: The only request is for the
formality of a subdivision.

MS. MOORE: Right.

CHAIRMAN CRAVALHO: It is also the understanding of
the Chair that the department makes reference to the water
shortage in the area, and therefore it would not approve the
request; but in fact, there would be absolutely no change
except just dividing of the property.

MS. MOORE: Exactly.

CHAIRMAN CRAVALHO: Mr. Starr.

MR. STARR: I'm curious why the property is being divided.

CHAIRMAN CRAVALHO: Explain it again.

MS. MOORE: The mission does not want to own property
in Hawaii.  It wants to give the property -- to just transfer
the title to the Haiku Bible Church and to Doris Todd School.
And they are both separate entities.  And in order to do that,
they have to subdivide the property and give the section number
1, I think it's plot number 1, to Haiku Bible Church and plot
number 2 to Doris Todd School because we're using it for
housing for our teachers.

MR. STARR: Okay.

CHAIRMAN CRAVALHO: Mr. Nobriga.

MR. NOBRIGA: I would support the request, and I
would move to approve the waiver of subdivision.

CHAIRMAN CRAVALHO: Is there a second?

MR. TAKITANI: Second.

CHAIRMAN CRAVALHO: Hearing the motion duly made and
seconded -- welcome, Mr. Takitani. May the record reflect the
presence of Director Takitani.
The motion before this body is to approve the
waiver.  Any discussion?  Hearing none.  Ready for the vote.
Everyone in favor say aye.
(A chorus of ayes.)
Contrary.  Carried.
Thank you very much for your presence.  The Chair
suggests you run out of here quick.
A request from Mark and Denyse Collins for a water
meter, Olinda house lots.
Is there anyone here to testify?

MS. COLLINS: I am.

CHAIRMAN CRAVALHO: Fine. Will you identify yourself, please?

MS. COLLINS: I'm Denyse Collins and this is my
husband Mark.

CHAIRMAN CRAVALHO: All yours.

MS. COLLINS: My name is Denyse Collins.  I'm the
nurse coordinator for Aloha House, which is a drug and alcohol
rehab here on Maui.  My husband is Mark Collins.  He is the
coordinator for the West Maui Watershed Mountain Partnership.
We are both hard-working, tax-paying citizens.  We
just yesterday took our building plans to the County for a
building permit, and it would represent a hardship for us if we
were not to be granted a water meter.
So I humbly ask you for your compassion in your
consideration in granting us a water meter.

CHAIRMAN CRAVALHO: Are there any questions?
Mr. Starr.

MR. STARR: What is granting a water meter?  Does
that mean that they want us to give them one for free?

MS. COLLINS: No.

CHAIRMAN CRAVALHO: Installation.

MR. COLLINS: There's a bit more that I would like to
present to give some background.
This is a continuation of an appeal that was
initiated in February, and I just want to show you the
property.  This was originally owned by Sheila Myhre.  And the
property is here in the green.  This is Olinda house lots.
This is a subdivision that was established in 1915.
The gray areas are lots within the subdivision that
are state owned.  It's in the forest reserve.  The red are the
lots that the owners have water meters to those lots.  The lots
that is ours is the green, so you can see it's surrounded by
owners who have water meters.
Once again, this is a subdivision established in
1915.  So there's some main points to this appeal to the Board
that we are continuing.  And that is that this lot number 7,
our lot, should be considered an existing lot.  The latest
water meter approved in that subdivision was in 1989.
There was another point made within the original
request that was of substantial reliance.  The owner had an
expectation that a water meter would be issued to the lot, and
this is based on the fact that up through the years since 1915
water meters have been issued to owners within the
subdivision.
The other reason why I wanted to have this put up
again is that these lots here are receiving water off of Olinda
Road with an easement.  And this represents a point of
adequacy.  So the lots on either side of our lot -- this is
where they are getting their water.  There's a substandard
two-inch line down here that would not service well.
There's another very important aspect of this.  This
ties into why -- ties into the standards of appeal that are
written.  And that's 16-2-79.  The timing of the application
for a water meter apparently fell 27 days after an unannounced
change in procedure by the water department, which apparently
occurred on October 4th, but essentially halted the approval of
water meters to properties that were subdivided or created
without the approval from the department.
The issue here is that a substantial change in the
issuance of water meters should have been announced by the
department to property owners, and it was not.
And so regarding the standards of appeal, this is if
you are to give us a water meter based upon essentially a
case-by-case basis, it needs to fit within the standards of
appeal.
And what we are saying is that the department,            
because on October 4th, stopped granting water meters to
properties that were created or subdivided without the approval
of the department.  To do this without notifying the public
could be considered capricious in its application.
I don't mean that in a way to be offensive.  It's
just that it fits within the language of the standards of the
appeal.  And that also that, just to say that this is not an
existing lot, even though that the surrounding lot owners have
received water meters, that is once again fitting within the
standards of appeal that can be considered arbitrary in its
application.  To say, well, this one lot is not an existing lot
when it's in a subdivision that is surrounded by owners that
have water meters.
So we ask that the Board approve our request for a
water meter for lot number 7 based on the merits of the appeal
that were originally initiated by Mrs. Myhre and continued by
us.  Furthermore, we ask the Board to approve the meter from
the point of adequacy which is on Olinda Road.  Thank you.

CHAIRMAN CRAVALHO: Any further discussions or
questions?
Mr. Rice.

MR. RICE: I thought you said in the beginning of
your presentation that the last meter that was issued in that
subdivision was 1989.

MR. COLLINS: That's correct.

CHAIRMAN CRAVALHO: Any further questions or
discussions?
Mr. Starr.

MR. STARR: Are you on the priority list?

MR. COLLINS: Yes, we are.

MR. STARR: What number on the list?

MR. COLLINS: I don't know the number.  The
Department was kind enough to put us on the list based on when
the original request by Mrs. Myhre was initiated.  That was, I
believe, in October of '99.

MR. STARR: While I certainly would like to see you
be able to get a meter, I have a problem with anyone jumping
the cue and getting ahead of other people who have been waiting
as well.  I hope we'll be able to get water meters issued in
the not too distant future.  I for one feel that we need to
look at people who have been waiting even longer before we let
anyone in.
I believe we have a policy going that we're not
issuing any meters until the first of the year, in any event.

CHAIRMAN CRAVALHO: Any further discussion?  Sir?

MR. COLLINS: Just for clarification.  We are
requesting this not in the concept of trying to bump ahead, but
in the belief that if this can be considered an existing lot,
it's my understanding then that a water meter can be issued.
It's not a matter of being on the list.

CHAIRMAN CRAVALHO: The opinion of the Chair, there
are two separate items or two separate elements to this
question.  The question with respect to the existing of a lot,
if we assume for the sake of discussion that there is a lot,
legal lot, that would be entitled to a meter under normal and
ordinary circumstances.  And if that particular fact or that
particular thought is adopted, it does not however
automatically eliminate or supercede the moratorium that we
have at the present time with respect to the issuance of meters
in the area.
So the point raised by Mr. Starr is extremely
pertinent.  There is in existence a policy of this Board for no
issuance of meters in the area until the ending of this
particular year.
So I think, if there's no objection on the part of
the members of this Board, that we shall continue to adhere to
that.  That there be no meters being approved for issuance at
this time in the anticipation that hopefully we'll get all
things ready and going by early January.
If there's no objection on the part of the Board, so
ordered.
Shall we proceed to the next item?

MS. NAGO: Item D, Mr. Cravalho.

CHAIRMAN CRAVALHO: A request from Jackie Tavares on
behalf of Mathilda Carvalho for subdivision of the property in
the country area.  It's all your's.

MS. TAVARES: I'm Jackie Tavares.  I'm helping
Mathilda Cravalho --  Carvalho in doing her subdivision, and
she sits back there. She's the owner of the property.
There was a misunderstanding in regards to the
configuration of the three lots.  Did you all get corrected
copies?
If you look at the configuration, the original copy
that was at the County had three lots.  One was parallel to
Lilikoi Road, the next one was lot 2, and the bottom was lot 3
with a 40-foot easement coming in.  That has been redesigned.
It's still three lots.  There's still a 40-foot access to the
back lot.
However, now two lots face Lilikoi Road.  It was
just for the family purposes in reviewing the first one put
together and the second one put together.  It was more feasible
for one family to take one piece, and the other whole family to
take the other piece.  And that was the purpose of combining
the two lots to Lilikoi Road.
We would like to request that the Board postpone the
water system improvements.  That's on your handout on lot A and
B until Mrs. Carvalho passes on and the moratorium is lifted
for the following reasons:
Number one, there is presently a moratorium on
building.  So if you would --  well, and Mrs. Carvalho's
children will not have access to the property until she passes
on.  And number three, even though Mrs. Carvalho would do the
improvements, she still could not build on this property
because of the moratorium.
In this regard, we're hoping that you would allow
her to only postpone until such time as she passes away and the
moratorium is lifted.
I had another question.  On page 83 of your packet,
at the very bottom, number 1 -- there's 1 and 2 there.  The
sentence reads, "The transfer shall occur until after the death
of Mathilda Carvalho."
I am asking if there was an omission of the word
"not," so that it would read in such where, "The transfer
shall not occur until after the death of Mathilda Cravalho."
I don't know who typed this up, but I would like to
insert that.

CHAIRMAN CRAVALHO: That's a typo.

MS. TAVARES: Thank you.

CHAIRMAN CRAVALHO: Are there any questions from the
members of the Board?
Mr. Nakamura.

MR. NAKAMURA: Mr. Chairman, I believe we discussed
this a little bit at our last meeting.  My recollection is that
the only issue was that this was different in a sense that the
property was to be conveyed to a trust instead of directly to
the family members and with the conditions recommended by the
Board.  I assume with that one change, you have no objection to
that?

MS. TAVARES: And also I notice on that page, page 83
at the top, it gives the subdivision requirements that you are
asking her to fulfill.  Am I to understand that that is to be
done at the point of approval?  Or, is that to be done after
she passes away?

MR. NAKAMURA: I would assume that the improvements
would be the improvements required at the time that the
subdivision is actually consummated.  I don't know.

MR. CRADDICK: No, it's when they do something to
require additional water.  The subdivision is all done,
completed, but no building or no additional meters until the
improvements are done.

MS. TAVARES: So if I can clarify this.  You are
saying that I'm asking you to postpone the water system until
she passes away and until the kids decide to build something;
is that right?

MR. NAKAMURA: Mr. Chairman, I would move for
approval of the request subject to the conditions recommended
by the director.

MR. RICE: Second.

CHAIRMAN CRAVALHO: Mr. Starr?
 
MR. STARR: I want to have an understanding for
myself.  How does this differ --  I think this is a question
for the director.
How does it differ from a normal family subdivision waiver?

MR. CRADDICK: The land is in a trust instead of
actually transferred to family members, which is what this 216
is.  It's a family subdivision.  The trust actually takes on a
life of its own.  Something could happen with the trust, it
could be taken out of the --  the trust could be dissolved
before she passes away.  There's a lot of things that could
happen with the trust.  I think we're comfortable enough with
it that it's not an issue for us.

MR. STARR: It's not a question on a number of lots, right?

MR. CRADDICK: No, it's just that a trust takes on a
legal entity all its own.

CHAIRMAN CRAVALHO: This Board is so fortunate that
we're all qualified attorneys and we don't need to make
reference to corp counsel.

MR. TAGORDA: That's my question next.  This is for
our corporation counsel and some of the agencies involved in
this final approval subdivision.
Since this land is in the State Land Commission, I
know we just passed an agricultural district ordinance
recently.  Any relation that this subdivision should also go to
those different agencies?

MR. FUKUSHIMA: They will go to the Department of
Public Works and Waste Management who administers subdivisions
in the county.  They would review it.  It would also go to the
Planning Department who would review it for matters under their
jurisdiction.  And it goes through the normal process as any
other subdivision.
What this Board is approving is this Board is
approving the subdivision water requirements.

MS. TAVARES: That's correct.

MR. FUKUSHIMA: That you would defer these
improvements until such time as building permits are requested
or additional water services are requested.
Until that time, there are no required water system
improvements, and the subdivision goes through like any normal
subdivision.

MS. TAVARES: Okay.

CHAIRMAN CRAVALHO: Any further discussion?
Clarification?
It is the opinion of the Chair, and correct me if
I'm wrong, that while if the Board approves a waiver, this
means that this waiver shall be present and in existence
precisely as indicated.  And it will be binding on all
subsequent divisions or what have you.  I don't want to see
subsequent boards of water supply being approached to waiver a
waiver again.  And sometime along the line, somebody is going
to get away for not doing and not putting in the necessary
improvements and requirements.
Is that your understanding also?

MS. TAVARES: Yes, it is.  May I ask another
question, please?

CHAIRMAN CRAVALHO: Sure.

MS. TAVARES: I heard -- and you know when you hear
something they say always go to the source -- that if she goes
--  the family does go ahead and put together this whole thing
that you are asking, which you are asking 2,500 feet of
six-inch waterline, there presently is there a four-inch line
with two fire stand-up pipes, as I understand it.
Am I saying it right or wrong, Herb?

MR. CHANG: Close enough.

MS. TAVARES: Close enough. Thank you.
So my question is: Why are you asking her to do six?
Why are you asking the family I should say?  Not her because
she won't be here.

MR. CHANG: The reason why is the fire code.  The
four-inch is a little too small.  The six-inch is about the
right size.  And that's according to standards.

MS. TAVARES: In that case, if this were to be put
into effect, is there any reimbursement through the water
department that goes to the family who does this because --
I'm not really familiar with meets and bounds and feet and all
of this.  Does the 2,500 feet of six-inch waterline only cover
from her property lines along Lilikoi Road?  Or, are we talking
about further than that?

MR. CHANG: To answer your first question, she will
be entitled for the reimbursement for the 2,500.

MS. TAVARES: She'll be reimbursed for the whole amount?

MR. CHANG: For half of the cost.

MS. TAVARES: Could I ask you to put that in writing?

CHAIRMAN CRAVALHO: One moment. One moment. Don't
speak for subsequent water boards.  You speak for the situation
as it may exist today.  As it exists today, that is our
understanding.  That's all the authority we have.  Let's stick to that.
Now with respect to the fire requirements.  I think
it is only fair to say that there is a difference of opinion as
to whether this Board has, in fact, authority to act on fire
requirements above and beyond those that have been prescribed
and required by the Department of Fire Control.  I happen to
think that we don't.  But that's a separate question.  But as
long as we understand what this involves, I have no problems
with what has been discussed thus far.
Are you ready for the question?  All in favor say aye.
(A chorus of ayes.)
Contrary.  Carried.
Can I make the same suggestion to you? Disappear
when you can.

MS. TAVARES: Thank you very much.

CHAIRMAN CRAVALHO: Communications from a Mr. Donald
Nordgren.  That's on page 97.  What's the pleasure of the
Board?  The recommendation of the Chair's referral to committee
of Mr. Nobriga.  No objection.  So ordered.
Communication 00-44 from Edward T. Esty for the use
of a temporary --  for the use of his present meter to fill up
some tanks temporarily, whatever the case may be.  If there's
no objection, refer to the Committee of the Rules.
A request from Andrew and Sheila Fujikawa for a
water meter Kula Haleakala.  Anyone here to represent them?  If
not, refer to Committee of the Rules.
Communication 00-46.  Request from Mr. Sameshima.
Mr. Sameshima.

MR. SAMESHIMA: Good morning, Mr. Chairman.  We have
requested of the Board waivers from certain purported
requirements.  And as indicated in our submission, we're
incorporating all of the documentation testimony and so forth
from the previous request for declaratory order to be
considered by the Board.  There's been a report by the
department and so forth, and we ask that that all be
incorporated into and considered as part of our request.
We have gone over this before.  I believe there was
a Committee of the Whole meeting regarding some of the issues,
and there was a subsequent report from the department.  And so
we have asked for this waiver, again, based on the fact that as
indicated in my letter dated September 14th, the four reasons a
waiver is appropriate under the rules.  We ask the Board to go
ahead and approve the request for a waiver at this time.

CHAIRMAN CRAVALHO: The Chair asks corp counsel for
comments on the request before us.

MR. FUKUSHIMA: The request is certainly within the
jurisdiction of the Board, with respect to waiver of
subdivision requirements.  It's an appropriate request, based
upon the circumstances surrounding this case.  It's appropriate
for the Board to consider a waiver.

CHAIRMAN CRAVALHO: What's the pleasure of the Board?
Mr. Starr.

MR. STARR: I'd prefer dealing with it this way than
the other way.

CHAIRMAN CRAVALHO: You and me both.  If there are no
objections, may the record reflect by unanimous consent that
the waiver is granted.

MR. SAMESHIMA: Thank you very much, Mr. Chairman and
board members.

CHAIRMAN CRAVALHO: Same advice.  Go.
A request from Sandy Daniells for relocation of a
water meter.
Why does this have to come to us, Mr. Craddick?  Is
there anybody here representing Ms. Daniells?  Come in.  Your
request is to move a water meter from point A to point B?
 
MS. DANIELLS: Yes.

CHAIRMAN CRAVALHO: Have you been denied?  Has your
request been denied by the Department?

MS. DANIELLS: Yes.  We have talked to the engineers
in the department and they say --

CHAIRMAN CRAVALHO: What was the rationale?

MS. DANIELLS: They don't move a meter across
property lines.

CHAIRMAN CRAVALHO: Oh, Christ. I have heard of
bureaucracy, and I have seen it in action.  My understanding
again is it's in effect like a waiver.  If they say no, waive
it.  If you move a meter from point A to point B may cross the
property line or whatever, all parties agree.  Any objection to
the granting?

MR. NOBRIGA: No.

CHAIRMAN CRAVALHO: May the record reflect that the
request is granted and the department proceed to act in an
understanding manner and a cooperative manner.  Things come
before this Board that should never come here, if there's
proper concern for the people.  So ordered.

MS. DANIELLS: Thank  you.

CHAIRMAN CRAVALHO: The Upcountry water situation.
Mr. Craddick.

MR. CRADDICK: The Wailoa ditch was 135 million
today, the Kamaole treatment facility produced 3 million
gallons yesterday, Piiholo treatment facility is a hundred
percent full, production was 1.96 million, Waikamoe reservoir
is 63 percent full.  Kahakapao is about 97 percent full, the
Olinda treatment facility produced about 1.6 million gallons.
Total demand on the upcountry system was 7.6 million.  Average
demand for the past week 8.1.
I passed out earlier in the week -- we get this
quarterly El Nino update.  It says, the year to date numbers
improved a bit in July four sites have managed to poke above 60
percent of normal, and we're talking about rainfall here.  The
highest being Haiku, in terms of the standard participation
index, all periods 1 through 18 months indicated values above
negative 2, which is extremely dry category.
That's the projection outwards for 18 months.

CHAIRMAN CRAVALHO: Any questions?  The Chair
recognizes Mr. Starr.

MR. STARR: I feel it's time for us to move away from
the emergency situation that we have been in for a while and
hope it rains and help us meet system demand.  So I move that
we take down the emergency.

CHAIRMAN CRAVALHO: Is there a second?

MR. TAGORDA: Second.

CHAIRMAN CRAVALHO: You've heard the motion duly made
and seconded.  We can discuss this ad infinitum, but the facts
are there.  We have a supply.  Adequate.  Nothing is to
preclude us from taking subsequent action at any time should
the conditions change.
If there's no objection, may the record reflect a
unanimous decision of the Board that the moratorium is lifted.

MR. STARR: Excuse me, the emergency.

CHAIRMAN CRAVALHO: The emergency. As far as I'm
concerned, the moratorium is also.  We can discuss it later,
but the emergency is lifted.
The Chair would like to reiterate a couple of things
that this Board has acted upon in the past.  This Board took
action in this memorandum of understanding.  It provided the
groundwork and the guidelines, and there is an adequate supply
that's available, unless you have a tremendously dangerous
situation which develops.  And we have the cooperative efforts
of A&B, EMI, the proceeds from the Dowling well, the potential
of the H'poko wells which says we can have a manageable
condition, and we can have a manageable situation, if
management is willing to manage.
If management does manage, there's no reason why
there should be any dilution of the storage and the amounts in
storage.  We have the authority for withdrawal, we exercise
it.  If there's a question of money that's a fiscal decision,
that's the responsibility of the Board.
The general public should not be denied adequate
protection and adequate supplies.  This Board should never hide
behind any rule or reg or whatever, be they be valid or not.  I
have a couple questions in that area.
I have a suspicion, and I'm not sure that the
department is making reference to shortages and making
reference to rules that are no longer valid.  Rules that may
have been covered by court decisions in the Smith versus
Craddick case which went all the way up to the Supreme Court of
Hawaii.  Which said that with the exploration of the Kula
Rule -- and in the absence of a rule, there is no rule.  There
has been no justification for the movement in meters or what
have you.
Let's look at these questions.  And if we manage,
and if management does manage, there is absolutely no
justification in that Upcountry area.  Absolutely none.
If this is true, we're bordering on the basis --  on
the borderline of negligence and mismanagement.  And as it has
been pointed out to the Chair sometime ago, what has been
allowed to happen in that area has been nothing short of
criminal.  And I take that same position.
Now, with that particular area, taking care of and
handled, let us go give our attention down here, which is
absolutely urgent.  Absolutely urgent.  Let's not go hide
behind numbers and hide behind whatever we want to hide
behind.  We have to meet that need for the growth, for the
salvation, and the strength of this community.
Let's focus our attention where the need is.  And it
is here on this Iao aquifer.  And we've got to move. And I'm
sure Mr. Takitani and his people and his negotiating committee
will have matters in hand to come before this Board within the
foreseeable future.
The Chair wants to thank all of the members of the
Board, the members of the public who have supported the
decisions that have been made.  The Chair also wishes to thank
the administration.  We have come a long way from where we used
to be, and it's all positive.  And I think we need to recognize
that.  And we can solve the problems.
End of sermon.  It's been a long time since I gave one.

MR. STARR: I have a question.  I agree with what's
just been said.  I would just like to be sure that we are
looking as to how we'll deal with the Upcountry situation at
the time when the moratorium does get lifted and with the
priority list still in existence and so on.  I think we should --

CHAIRMAN CRAVALHO: Have no fear.  Have no fear.
There's method to my madness, I can assure you.
Any other matter before this Board?
Mr. Pierce.

MR. PIERCE: Mr. Chair, I understand that the Board
this morning approved the committee reports including Committee
Report 00-02 from the Oversight Committee.  I wanted to ask if
you would allow an opportunity for us to understand a
clarification of the committee report.

CHAIRMAN CRAVALHO: The Oversight Committee report
was not adopted as such.  The whole matter is referred back to
the entire board.

MR. PIERCE: So it will come up at a later date?

CHAIRMAN CRAVALHO: At the very next meeting.

MR. PIERCE: And then, Mr. Chair, on a different
matter, I'm also here with Mr. Stolle today.  I talked with
Mr. Rack, and I'm wondering if this might be a good opportunity
for us to meet in executive session with the Board to
explain --

CHAIRMAN CRAVALHO: No.

MR. PIERCE: Will we have an opportunity to do that
at a later date?

CHAIRMAN CRAVALHO: That will be decided
subsequently.  And if you wish to have an open meeting, the
Chair's prepared for an open meeting on this particular
subject.

MR. PIERCE: Whichever one the Board prefers. Thank
you, Mr. Chair.

CHAIRMAN CRAVALHO: There are some very pertinent
matters that deal with this particular thing.  Very pertinent.
Just parenthetically, so you can mull upon this, you can mull
on this, initially, the decisions of this Board were ignored by
parties that be.  In spite of requests and in spite of
directions, it was ignored.  This ignoring of this public
policy that had been determined by this Board has resulted in
this particular matter being taken to the courts, which I
believe are the appropriate positions to take.
This was followed by a request that we authorize
independent counsel to defend an individual who defied the
decision of this Board and to use public funds to support a
defying of public policy.  The better course of wisdom took
place, and that has been withdrawn.
With respect to your particular proposal, without
getting into details, these are factors that we need to
consider.  We need to consider, Mr. Stolle needs to consider,
we need to consider the damages done to all parties, and we
need to consider the suffering and the deprivations of your
client.  I'm well aware of that.
But the compassion of this Board should never result
in an approval and the sanctioning being given to any
individual, to any employee who defies the decision of this
policy-making body.  And I think those are very valid
positions, and they are very valid concerns.  And that this
should serve as a notice to all parties, to all employees at
all times.  You do not have the right to take everything into
your hands which is in complete and total defiance of a policy
decision made by a correct body such as this.
This has nothing to do with the justification of the
cause of your client.  But it's an overall kind of thing.  You
have a thousand employees and a thousand employees decide
they're going to go marching to Georgia, regardless of the
consequences.
Where are we?  We have anarchy.  We need to
recognize this.
Enough said.  No objection.  Meeting is adjourned.

MR. CRADDICK: What about Paukukalo?

CHAIRMAN CRAVALHO: You mean the burial people in Paukukalo?

MR. CRADDICK: They're not here. We don't have to
wait for them, but it's an item on the agenda.

CHAIRMAN CRAVALHO: Okay, I'll withdraw my
adjournment.
The Paukukalo situation.  You asked for additional
monies.  I think the amount of money you have asked for exceeds
a possible cost.  I think there's a little additional monies in
there and not $1,000 either.
If there's no objection on the part of this body,
refer this matter to the Finance Committee with authorization
to make the appropriate appropriations approved in advance to
meet the absolute costs and nothing more.  Fair enough?

MR. RICE: Fair enough.

CHAIRMAN CRAVALHO: So ordered. Can we adjourn?
Yes, ma'am.

MS. FREITAS: I'm sorry. I'm Marina Freitas. When it
comes under oversights --

CHAIRMAN CRAVALHO: The entire matter is referred
back to this Board, which we'll take up.

MS. FREITAS: Sir, it's been going on and I received
a letter saying that the committee had said that they felt that
there was no reason not to --

CHAIRMAN CRAVALHO: Excuse me, ma'am.  The committee
report was not adopted on this day, and therefore the entire
committee report has been sent back to this entire Board.  And
we're going to take care of it.

MS. FREITAS: I understood from the letter that it
was taken care of and that we would deal with it today.  My
mistake.

CHAIRMAN CRAVALHO: Excuse me, ma'am.  It was taken
care of.  You're right. It was taken care of at the committee
level; but the committee is just a committee.  It needs to
report back to the entire Board.
When that report came back to the entire Board, it
was the wisdom of the Board that it comes back entirely.  It
comes back to the Board.  And I assure you we'll take it up at
the next meeting.
Yes, ma'am.

MS. NARDIN: I'm also  -- the rule committee.

CHAIRMAN CRAVALHO: The same thing, ma'am. I hope we
leave you people the impression that we try to move.  I try to
move.
Thank you members of the Board.
(The proceedings were concluded at 10:10 a.m.)

IWADO COURT REPORTERS, INC.