BOARD OF WATER SUPPLY
COUNTY OF MAUI
REGULAR MEETING



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 February 22, 2001.
 
REPORTED BY:  JEANNETTE W. IWADO, RPR/CSR #135

IWADO COURT REPORTERS, INC.
 

A T T E N D A N C E
 

CHAIRPERSON:                   ELMER CRAVALHO
 
BOARD MEMBERS:                 CLARK HASHIMOTO
 
                               ADOLPH HELM
 
                               HOWARD NAKAMURA
 
                               MICHAEL NOBRIGA
 
                               PETER RICE
 
                               JONATHAN STARR
 
                               ORLANDO TAGORDA
 
                               ROBERT TAKITANI
 
 
DIRECTOR                       DAVID CRADDICK
 
DEPUTY DIRECTOR                GEORGE TENGAN
 
DEPUTY CORPORATION COUNSEL:    J.D. KIM
 
BOARD SECRETARY:               FRAN NAGO
 
FISCAL OFFICER:                MICHAEL QUINN
 
ENGINEERING:                   HERBERT KOGASAKA
 
  
 
                    TRANSCRIPT OF PROCEEDINGS
 
                      BOARD OF WATER SUPPLY
 
                         REGULAR MEETING
 
                   FEBRUARY 22, 2001, 9:00 A.M.
 
CHAIRMAN CRAVALHO:  The regular meeting of the Board
of Water Supply of the County of Maui will come to order.  Miss
Nago, would you check the presence here of the members and
introduce the members of the public who are here?
 
MS. NAGO:  We have Chair Elmer Cravalho, Board
members Clark Hashimoto, Peter Rice, Michael Nobriga, Jonathan
Starr, Orlando Tagorda, Adolph Helm, and we have Howard
Nakamura.  From staff we have Director David Craddick, we have
Deputy Corporation Counsel J.D. Kim, we have fiscal officer
Mike Quinn.  And then in the audience we have Dan Grantham, we
have Ron and Dawna Richmond, Deborah Maples, Peter Stolle, Bill
Wooster, Carl Friedman, Danny Mateo, Jack Naiditch, Anthony
Amaral, Chris Bernard, Mary Blane Johnson.  We have George
Tengan and Herb Kogasaka from staff.
 
CHAIRMAN CRAVALHO:  May the record reflect the
people who are present as well as the members of the Board,
that constitute a quorum.  Minutes to come before the Board for
the meeting of December 28 and January 25, the year 2001.  What
is the pleasure of the Board?
 
MR. RICE:  Mr. Chairman, I move that they be
accepted and maintained for the appropriate time for review.
 
CHAIRMAN CRAVALHO:  Is there a second?
 
MR. HASHIMOTO:  Second.
 
CHAIRMAN CRAVALHO:  It has been moved and seconded
for the acceptance of the minutes.  It shall be kept on record
for the established number of days, to wit, 30.  If there are
no corrections, it shall stand approved as read.
 Mr. Starr, I believe you have an observation for a
correction or a clarification of the minutes, maybe
typographical in error.  Proceed, please.
 
MR. STARR:  Yes, Mr. Chair, I have something on page
45 which I believe was incorrectly stated in the minutes on
line 23, I believe.  The word "not" should be inserted between
the word "will" and the word "be."  And I would like to get
clarification from Mr. Mink (phonetic), who we are quoting in
this portion of the minutes, as to whether that was indeed what
he said.  But my memory is that I clearly recall him saying
that it will not be affected, rather than it will be, as is
written in the minutes.
 
CHAIRMAN CRAVALHO:  May the record reflect the
statement and the concern expressed by a member of the Board.
Will staff make sure that we contact Mr. Mink for the
appropriate clarification, if any, of his remarks at that
particular meeting?
Mr. Rice, will that be acceptable?
 
MR. RICE:  Certainly.
 
CHAIRMAN CRAVALHO:  You have heard then the motion
for the acceptance with these conditions.  Are there any
further discussions?  If not, are you ready for the question?
All in favor say "aye."
 
(A chorus of ayes).
 
Contrary?
 
(No response).
 
Carried.  The next item on the agenda, testimony
from the public.  Are there any members of the public who wish
to testify or to offer any information to this Board at this
time?  If you do so, you will not be precluding entering into a
discussion at a later time if the subject matter does come up.
But you do have an opportunity now to discuss any matter which
may or may not be on the agenda.  Any discussion?  If not,
shall we then proceed to the agenda.
 Item number five on the agenda, Director's Report
01-01.  It is requesting funds, for the appropriation of funds
for the construction of Ainakula Road/Haleakala Highway,
Highway Waterline Replacement Project.

MR. CRADDICK:  Yes.  Both these Director's Reports
are for CIP projects, so if you want to handle them.
 
CHAIRMAN CRAVALHO:  The Chair is kind of aware of
that, and the Chair appreciates all the help it gets from you
from time to time.  These are requests for appropriations.  The
Chair has a question.  Are these in the current budget?
 
MR. CRADDICK:  Yes.
 
CHAIRMAN CRAVALHO:  In the current budget that has
been approved by the committee?
 
MR. CRADDICK:  Well, it's a lump sum amount.  It's
not been approved by the committee.
 
CHAIRMAN CRAVALHO:  The request then is to proceed
to divide the lump sum amount that has been appropriated?
 
MR. CRADDICK:  Right.
 
CHAIRMAN CRAVALHO:  Mr. Quinn?
 
MR. QUINN:  Mr. Chair, they are within the original
appropriation numbers approved by the Board.
 
CHAIRMAN CRAVALHO:  There will be a joint referral
to the Committee on Capital Improvements and Finance for the
appropriate action on both communications.  That's
Communication one and Communication two.
 Shall we then proceed to item number six on the
agenda, Communication 01-04 for Michael Conway for a waiver of
the fire flow requirements.  Is Mr. Conway here, or a
representative here?  If there are none, referred to staff to
report back to the full Board of Water Supply.
 Communication 01-05 for Mr. Anthony Amaral, Sr., for
a water meter for their agricultural land located on Waiakoa
Road, Kula.  Any discussions or presentations or requests to be
made of the Board at this time?  If not --
 
MR. AMARAL:  Excuse me, sir.
 
CHAIRMAN CRAVALHO:  Yes, come up, please.  You can
say anything you wish to.
 
MS. NAGO:  Mr. Amaral, I'm sorry, could you come up
here to speak?
 
MR. AMARAL:  Right now they have a private system up
there to carry up there.  They have a water tank, a 30,000
gallon water tank just below my property and my neighbor's
property, which is Brown. I went to talk to this guy David
Craddick.  First, I talked to McArthur, you know, which they
was very helpful.  They tried to help me what they could, but
they have rules and regulations that must be followed, and I
was referred to the Council, and that's why I'm here.
 So my idea was because no more meters can be hooked
up to that system, what I was told -- first of all, Dave
Craddick told me that I would have to run -- if I want a meter,
he told me if I run an eight-inch water line all the way up to
one fire hydrant and all that, and it's just not feasible for
me.  I'm by myself up there.  My grandchildren is raising some
4-H stuff, like that.
 And anyway, I talked to my neighbors and I guess
they talked to the Water Board.  And in order to like join the
association, to be part of that group, which is not feasible,
because there's not enough fire protection on that 30,000
gallon tank.  But I guess somewhere along the line somebody
didn't do their homework, because in reality, Mr. Brown has
another 30,000 gallon tank above that tank.  Because right now
with the existing, where the existing tank is, his house is
higher and his farm land is higher than that whole area right
there.
 So what he did, he took upon himself to his own
expense, pumped water up to that tank and let everything
backflow down to his home and for feed his cows and whatever
animals he got, whatever he use the water for.  My idea was
that I was willing and it was affordable to me and my family
that I put another 30,000 gallon tank on my property, which I
have an 8,000 gallon tank now that I paid big money to have
water hauled up there.
 So then what I propose to the Board was, you know,
if that would be all right, where somehow we could on that same
line coming back feeding to that original tank, make a bypass
line to feed that tank in case if there's an emergency.  That
would be one of my options that would be affordable for me.
 The second option would be, and in my mind it
doesn't make any sense, because I would have to go put up my
own system by myself, put one tank over there, then pump water
up to my place, then I would be by myself.  An association, the
more members you have, you know, it's feasible to people like
me to afford and do what we have to do.  So that's about it.
This is my own personal feelings that what can be done in that
area, and that's about all I have to say.
 
CHAIRMAN CRAVALHO:  Are there any questions?  It is
the Chair's understanding that reference is being made to an
existing private water system.
 
MR. AMARAL:  Yeah.
 
CHAIRMAN CRAVALHO:  And the request is for the Board
of Water Supply to approve a connection to that private water
system to make possible for your properties.
 
MR. AMARAL:  Right now, you know, I had a meeting a
couple of weeks ago, last week, or whatever, with these
people.  And right now it's not feasible to do that because the
simple reason is, and I can understand where they're coming
from, that that amount, that 30,000 gallon tank right now that
the association owns, it's not, you know, any more people
hooking up to that system wouldn't be approved.  In other
words, they wouldn't have enough fire protection.
 So what I was thinking of, me and the Doctor, he
would be with me, you know, he has a tank already.  I go put up
one other tank.  And the line that we're pumping water up to
the tanks, what we do is we just make one bypass line over.
And probably I would have to give the Fire Department, I talked
to the fire station, and they would go with that providing
that, you know, they would have a key or something.  I really
don't know how the thing works, this is only my idea.  I don't
know if I'm sounding right or what, you know.  I'm just trying
my best for do what I've got to do.
 
CHAIRMAN CRAVALHO:  It's fraught with great
problems.  It's the Chair's recollection that there is a
request pending before this body by the owners of that private
water system, that they want to convert for the County to take
over.  And there are a number of potential legal problems
involved.  So perhaps it might be the best thing to look at
that particular problem which is before this body, in
connection with the request of Mr. Amaral, and have the
Corporation Counsel's office work very carefully on it, so that
if there are any legal problems that they are fully met.  If
there are no objections, so ordered.  And we'll follow through,
Mr. Amaral.
 
MR. AMARAL:  Thank you.
 
CHAIRMAN CRAVALHO:  So we're making reference, you
see, Mr. Amaral, to Russia after the revolution.  So you will
have a chance to have a hearing.  Thank you.
 Mr. Amaral had a comment earlier to me that he
thought he was going to be brought before a commission of
Russia, but it's Russia post-revolution.
 
MR. AMARAL:  Gestapo, feels like that.
 
CHAIRMAN CRAVALHO:  Shall we go onto the next one,
request from Council Chair Patrick Kawano for the Board to
schedule a public hearing on Molokai regarding the
fluoridation.  The question of fluoridation had been sent to
the Committee of the Whole.  The Chair would like to request
that this particular matter and request be handled through
Mr. Tagorda, and to proceed expeditiously to schedule a meeting
together with a representative from Molokai.  And then we
should have this meeting during the month of March the year
2001.  Okay?
 
MR. TAGORDA:  Yes.
 
CHAIRMAN CRAVALHO:  If we don't say 2001, maybe it
will be March ten years.  Shall he we go onto the next one,
request from Larry Fukunaga of Sandwich Isles Communications
for a water meter.  Referred to the staff and to the
administration for implementation in conformity with Mr.
Craddick's most recent announcement of a change of heart in the
granting of meters and et cetera.  So we're making progress
along the line.
 
MR. TAGORDA:  Mr. Cravalho?
 
CHAIRMAN CRAVALHO:  Mr. Tagorda.
 
MR. TAGORDA:  I'd just like to clarify some points
here.  Are we going to provide these people meters?
 
CHAIRMAN CRAVALHO:  That's why we're referring it to
staff for Mr. Craddick to report back to us.
 
MR. TAGORDA:  All right.
 
CHAIRMAN CRAVALHO:  The Chair understands that this
particular matter deals with water and servicing of the
Hawaiian Homes project, which raises questions as to priorities
of the use of water.  Shall we go then to committee reports
Oversight Committee.  Everything for you, Mr. Nobriga.
 
MR. NOBRIGA:  Mr. Chairman, Communication 00-52
requests upon behalf of William S. Worcester to defer this
matter until Mr. Worcester returns from his trip, and we can
talk to him about some improvements that we think are within
his budget.  We will be scheduling another Oversight Committee
report with communication 01-01, request waiver on behalf of
Peter Yacooshin.  This matter is within the confines of our
Easy Street decision, and our committee recommends denial of
the request.  I so move.
 
CHAIRMAN CRAVALHO:  You have heard the motion.
 
MR. HASHIMOTO:  Second.
 
CHAIRMAN CRAVALHO:  For the denial of the request of
Mary Blane Johnson as it relates to the request on behalf of
Peter Yacooshin for a waiver of the Department's requirements.
Any discussion?  Yes, ma'am?
 
MS. JOHNSTON:  My name is Mary Blane Johnston, I'm
the attorney for Peter Yacooshin, who is the Petitioner in this
matter, and I would like just very briefly --
 
CHAIRMAN CRAVALHO:  Ma'am, just as a matter of
clarification, or procedurally, the pending motion is for the
denial, so whatever testimony you have will have to deal with
the pending motion as to whether we should deny or adopt the
committee report or not.  So let us confine ourselves to the
subject matter before this Board.
 
MS. JOHNSTON:  Yes, Mr. Cravalho.  The subcommittee
has recommended denial of the petition, the request by
Mr. Yacooshin for a waiver of the requirements that a larger or
new water meter be installed before he can have approval from
the Water Department for a building permit.  And second, that
the fire protection is inadequate.
 We appeared at the time that the committee met and
spoke, and I would like to just very briefly, for the purposes
of the whole Board, explain what I saw happening at that
meeting and why I believe that even though the committee voted
to deny the request I would ask the full Board to hear it.
 
CHAIRMAN CRAVALHO:  Ma'am, I think you are quite
familiar with appropriate procedure.  We do not go behind the
committee report.  The committee report is inclusive.  The
motion is very exclusive and very specific.  What took place or
didn't take place at the committee report or at the committee
hearing is not before this body.  What's before this body is
the content of the committee report for which there is a
motion.  So please limit yourself to these discussions.
 
MS. JOHNSTON:  Yes, but I believe that in order to
address my comments --
 
CHAIRMAN CRAVALHO:  Ma'am, the Chair then
reluctantly, very reluctantly, would have to rule you out of
order.  It's no different than the court procedures.  So let's
follow them.
 
MS. JOHNSTON:  Perhaps it's just my style that the
Chairman is not recognizing.  We asked that the full Board not
follow the committee recommendation to deny the petition on the
following basis:  One, one of the bases that was discussed was
whether or not there would be adequate water if Mr. Yacooshin's
building permit is signed off.  What is pointed out is that
since 1994, Mr. Yacooshin has had a shed and has had the
toilet, sink and shower, has been up and running since that
time.  In other words, what is being requested is not any kind
of additional water use that hasn't already existed since 1994.
 So there is no problem, the service has been
adequate even though, according to the Department's
recommendation, the gallons permitted exceed the capacity of
the existing water line.  The recommendation also of the Water
Department is even when the Easy Street parcels are removed
from this line, the water flow is still going to exceed that
which is allowable by the existing water meter.  Easy Street is
making plans to remove themselves from this meter on this
particular lot.  One of the concerns raised was about
Mr. Yacooshin and this lot, lot four's participation in those
efforts.  Since the committee meeting I have spoken with
Mr. Isaacson, who is spearheading the Easy Street project, and
I have learned that in fact this lot has contributed the amount
of money that they have been requested to towards that project.
 At the time of the committee meeting Mr. Craddick
raised this as an issue, as to whether or not my client was
participating in that, and there is in the recommendation of
the Department before this Board a statement to the effect that
Mr. Yacooshin is not participating.  That is incorrect.  The
money was advanced, unbeknowns to us, by Dorvin Leis for three
of the hui members.  That will be taken care of by my client to
reimburse Mr. Leis.
 The second issue has to do with the recommendation
that the fire protection is inadequate.  In the past when
Mr. Pollack and Mr. Koshiver (phonetic), who are also hui
members, came before this very same board, waivers of the fire
protection, waiver of liability was obtained in order to permit
them to obtain building permits on the same kind of request we
are making here.  And I'd like to point out that one of the
considerations that was made at the time that Mr. Koshiver
applied for a relief from the same requirements that the water
department is imposing on Mr. Yacooshin is that the
consideration of the Board should be, it says the Board may
decide to waiver the subdivision water system improvements if
the public is properly served, without full and strict
compliance with the rules and regulations.  I think it's
already proven that the water is adequate there, even though on
paper, and according to the regulations that the Department has
to enforce, it appears that the water meter is not sufficient.
 One other concern that was raised was whether or not
by granting Mr. Yacooshin a waiver, that would sort of open the
doors to other people coming in.  This is contained in the
recommendation of the Water Department.  If this Board -- and I
hope that they will grant our petition for a waiver of the
requirements.  I don't believe that people are going to say,
"Oh, they granted it in Mr. Yacooshin's case, so we're going
to come before the Board."  Neither do I think that if the
Board denies it that that's going to keep other people from
coming before the Board.  There are other people that have
appeared on the committee and people have problems, and until
the water situation is solved Upcountry people are going to
continue to come to the Board with requests for relief from the
strict regulations.
 In my profession, law, there are rules that have to
be enforced, but the law also provides for equity, which is
there are certain circumstances when a court will find that in
the best interest of justice to waive those rules, and that's
what we're asking here.  At the time of the committee meeting
Mr. Tagorda raised an issue as to whether Mr. Yacooshin was
trying to somehow go around the rules and regulations of the
subdivision requirements that he finds himself in by virtue of
the fact that there's a structure on this property.  In fact,
I'm here today because your rules provide for me to be here and
make this request, just as many people before me and probably
many people after me will be here asking for this same
request.
 Mr. Yacooshin has complied with all of the Land Use
and Codes, we've worked for two-and-a-half years.  He's paid
the park assessment fee, we've gotten clearance through the
State Historic district office, he's complied with the Health
Department requirements.  In the time we've been working there
are no longer fire protection requirements, that's come and
gone.  He's had to pay to reinstate the partnership that owns
the property.  It was disolved because the partnership failed
to keep it in effect.  He's taken numerous steps.  He's doing
everything he can to comply with the rules to get a permit to
legalize his structure so he can live in it.  It's a $5,000
improvement.  It will take no further water usage than that
which he's already been using since 1994.  I would respectfully
request that the Board, notwithstanding the committee's
recommendation, grant the request for a waiver from these two
conditions.
 My client is willing to sign whatever necessary
waiver of liability, as was done before by Mr. Koshiver and
Mr. Pollack.  Thank you.
 
CHAIRMAN CRAVALHO:  Any further discussions or
questions?  The Chair would like to again repeat the status.
The motion is to deny, so before the committee would be able to
act on a motion to approve, it would have to disapprove the
motion to deny first.  So the motion before the body at this
time is to deny the request.  Is that clear?  Are you ready for
the question?  All in favor of the motion shall say "aye."
 
(A chorus of ayes).
 
Opposed?
 
(No response).
 
Carried.  The motion is carried, the request is
denied.  Shall we proceed then to the next item.  Mr. Nobriga,
please.
 
MR. NOBRIGA:  Thank you, Mr. Chairman.  On the
matter of Communication 01-02, request for a waiver of
subdivision requirements for 2-8-003:020 on behalf of Ron and
Donna Richmond, the committee has asked for a formal
interpretation from the Corporation Counsel's office.  I
received that just as you were calling the meeting to order.
I'd like to defer action on this until we can restudy what is
contained in the Corporation Counsel's material.
 
CHAIRMAN CRAVALHO:  Will you place a time limit, one
hour, two hours, one week, two weeks, whatever, so we'd have a
time definite?
 
MR. NOBRIGA:  We will be reconsidering this within
two weeks, the first week of March, and then bring it to the
Board.
 
CHAIRMAN CRAVALHO:  Is there any comment on the part
of the members of this Board?  If not, referred back to the
committee for consideration of its legal interpretations and
opinions.  No objection?  So ordered.
 
MR. NOBRIGA:  Thank you, Mr. Chair.
 
CHAIRMAN CRAVALHO:  Capital Programs Committee.
 
MR. NAKAMURA:  Mr. Chair, regarding a new well for
Upcountry, the Capital Programs Committee met on Thursday,
February 8th and noted that there is an urgent need for
development of additional and reliable water sources to serve
the Upcountry area.  The committee further noted that there is
an existing appropriation of one million dollars in the fiscal
year 2001 budget, and believes this project should be pursued
expeditiously.
 The committee recommends that a consultant be
retained to conduct a study of the Upcountry area to determine
the most appropriate location for an exploratory well.  In so
doing, the committee further recommends that this study not be
limited to any specific sites, but rather be as general as
possible in scope in order to explore all possible
alternatives.  I would move for adoption of the recommendation.
 
CHAIRMAN CRAVALHO:  Any second?
 
MR. RICE:  Second.
 
CHAIRMAN CRAVALHO:  You have heard the motion duly
made and seconded for adoption of the recommendation.  I
believe I'm correct that it's wide open as to who the
consultants are to be, and we will recruit for consultants.
 
MR. NAKAMURA:  The department will go through the
normal consultant selection process.
 
CHAIRMAN CRAVALHO:  And report back to the
committee.  You have heard the motion duly made and seconded.
Any further discussion?  If not, are you ready for the
question?  All in favor say "aye."
 
(A chorus of ayes).
 
Contrary?

(No response).
 
Carried.  Proceed to the next one.
 
MR. NAKAMURA:  Mr. Chairman, status report on fiscal
year 2001 Capital Improvement Program Budget.  Staff presented
a status report.  I don't believe there's any action required.
The committee report does note some items which we believe to
be noteworthy.  If there are any questions we'd be happy to
discuss them.
 The one item that I think will require further
discussion and action by the Board is the Director's Report
regarding the appropriation for North Waihee Source
Development, Kupaa Well II, where the Director has indicated
his thoughts that rather than proceeding with Kupaa Well II,
that we should look for an exploratory well in the north of the
Kupaa Well site.  I think the committee felt that that was an
appropriate direction.  However, a specific recommendation will
be forthcoming from the Director regarding this project.
 
CHAIRMAN CRAVALHO:  So noted.  The Chair has one
comment with respect to the status of the capital improvements,
and that deals with the storage for the Upcountry area, the
Piiholo area.  There is an appropriation of 2 million dollars,
plus or minus, of the state and pending receipt of any release
from the Governor, it appears we may be just waiting and biding
time.  The Chair would like to suggest that in the interest of
speed and efficiency, that we proceed using our portion of the
money to initiate planning and to get things moving.  So if and
when the Governor does release it he's just reimbursed.  And if
not, at least we're that much ahead with respect to the
planning.  We are not going to sit back and put our fingers in
a place we're not supposed to be.
 No objection?  So ordered.  And Mr. Craddick, I hope
you really understand it and you don't go look for something
that wasn't said.
 
MR. CRADDICK:  No.
 
CHAIRMAN CRAVALHO:  We're saying go, okay?
 
MR. CRADDICK:  Yes.
 
CHAIRMAN CRAVALHO:  We are ready to go for
Operations Review, East Maui Watershed Protection.  It's all
yours, Mr. Starr.
 
MR. STARR:  Yes, sir.  Relating to Director's Report
00-39, there was a public hearing held last night.  There was
some spirited comment from the public and there was also
appreciation to the Board for holding the hearing and allowing
people to speak on the matter.  And I'd like to move that this
item be filed.
 
CHAIRMAN CRAVALHO:  So noted.  No objection?  So
ordered.  Shall we proceed to the next item.  Did your motion
cover everything?
 
MR. STARR:  No, just item one.
 
CHAIRMAN CRAVALHO:  Shall we go to item two?
 
MR. STARR:  Yes.  If I may, I'd like to take item
two and item three together.
 
CHAIRMAN CRAVALHO:  Fine.
 
MR. STARR:  There was, once again, a public hearing
last night and there was a lot of spirited comment on these,
and the committee would like to take them back to a meeting
when the committee can try to decide on a course of action.  So
I request that they be sent back to the committee, and
hopefully by the next full board meeting we will be able to
recommend some action on items two and three to the Board.

CHAIRMAN CRAVALHO:  The Chair would just like to
point out some time elements, if we are going to be able to
take action on this particular matter.  The Chair's tenure
ceases on March 31st, and it is the position of the Chair that
all matters that have been referred to various committees will
just cease at that time, because the new Chair should have a
completely open hand and opportunity to decide on how they wish
to proceed on any matters coming before this body.  So let us
keep that in mind.
 The Chair also wishes to indicate that it is the
position of the Chair that the final positions on the issuance
of meters and priorities are the responsibilities of the entire
Board, and needs to be made accordingly.  And I think if we
look at it from that point of view we will be in very good
shape.
 Very bad to whisper, it generates a level of
suspicion.  And knowing who we're dealing with, it becomes even
more suspicious.  Anyway, Mr. Craddick?
 
MR. CRADDICK:  Mr. Starr referred to it as a public
hearing.  I believe it was a committee meeting because we
didn't have 30 days' notice for public hearing.
 
CHAIRMAN CRAVALHO:  The Chair really appreciates
your fine handling and adherence to the provisions of the law.
And may we remember this day and this time and your respect for
the law, because it's going to be coming back to haunt you, I
can assure you of that.  When we get into subjects it's going
to come back.  I like it, in fact, very much, I like it.  It's
a step in the right direction.
 Next?
 
MR. STARR:  Thank you, sir.  Once again, item four,
the evaluation of the Director, and I would like to once again
request that the evaluation of the Director be put on the
agenda for the next meeting, and that the committee will have
guidelines for the evaluation to recommend to the Board, which
can be acted on at the next I believe it's March 22nd meeting
of the Board of Water Supply.
 
CHAIRMAN CRAVALHO:  The Chair appreciates the
announcement.  The Chair would like to raise a question.
 Mr. Takitani, do we not have a system or a schedule
of priorities of evaluation?
 
MR. TAKITANI:  Yes, we do.
 
CHAIRMAN CRAVALHO:  That was adopted by the Board?
So that has to be available for all of us to look at at that
time.  Because if we don't have one then we may need to take
some legal steps to make everything mesh.  The Chair also would
like to point out the matter of time.  The evaluation of the
Director and/or staff is an extremely serious, extremely
serious matter to come before the Board.  In fairness to all
members of the Board, we should have adequate time.  So if
necessary, we will have special meetings, or whatever the case
may be.  We will take a look at it at that time and see what is
necessary.  So every person would have an ample opportunity to
look at everything.
 And in the same manner, the Chair would be very open
to the receipt of any recommendations and any presentations
that would indicate the operations that would give us light
into the programs, the activities taken, and where we are and
what has been taken and what has been done.  I think we then
can come out, and we simultaneously leave the matter for the
new Chair to be looking at, should it be necessary.  I think
that's very important, very important.  No objection?  Okay,
good.
 
MR. STARR:  Just for clarity though, my committee
will be having a meeting.
 
CHAIRMAN CRAVALHO:  Up to March 31st.
 
MR. STARR:  Yes, on the criteria in the next two
weeks or so.
 
CHAIRMAN CRAVALHO:  No problem, as long as we
understand that the recommendation will be coming back, we will
look at things, see what legal provisions, if any, are present,
and to reconcile all things.  No problem?  That's good.
 Shall we proceed then to the next item of business.
All the matters in the Rules Committee have been deferred and
we are deferring everything to the Committee of the Whole.
 Shall we then proceed to item 8, Other Business,
request for Board authorization for the Director of Water
Supply to sign cancellation of Kualapuu.  Is that communication
from you, Brother Craddick?
 
MR. CRADDICK:  Not really, it's from Corp Counsel.

CHAIRMAN CRAVALHO:  Shall we then defer action until
the next meeting?
 
MR. CRADDICK:  I think there's some parts with the County.
 
CHAIRMAN CRAVALHO:  I have no objection to anybody
making a presentation for information for the Board at this
time or later.  The suggestion from the Chair for deferral on
this particular question is because the Corporation Counsel
indicated to me it didn't have all of the necessary background
at the present time on this particular question.
 
MR. CRADDICK:  I can provide it, if you want.
 
CHAIRMAN CRAVALHO:  That's what I'm afraid of.
 
MR. CRADDICK:  Anyway, this agreement was entered
into in 1987 between the County and the Molokai Ranch, and a
trust fund was supposed to be set up to which designs could be
done for the County to take over the wastewater plant and the
Water Department could take over their water system.  I guess
somewhere along the line they stopped making payments into this
trust fund.  The agreement kind of fell on what I'll call hard
times, for lack of a better definition.
 The County has now, I guess, asked for some parks to
be granted to them and turned over, and Molokai Ranch said
"We're not doing that until we get this agreement cleaned
up."  And I think all the parties felt the best way to clean it
up was to cancel the agreement.  And if you look on page 47 --
or no, wait a minute, 23, it says the County will use its best
efforts to develop a public water system to serve the Kualapuu
Village Subdivision within the term of this agreement, and
Molokai Ranch will cooperate with the County in order to
achieve this objective.
 Molokai Ranch has said they will still work towards
getting our well integrated with their well, and if that is the
case, I have no objection to recommending to the Board to
approve the cancellation of this agreement.
 
CHAIRMAN CRAVALHO:  The recommendation of the Chair
is that we defer until we have a chance to examine, defer it to
the next meeting to work with the Corp Counsel's office, or
whatever the case may be.  Earlier this Board went on record
with respect to another matter, not dealing with this, but
dealing with the concept of opening Pandora's box as it related
to Miss Johnston, if you recall, on behalf of her client.  It
is the understanding of the Chair that perhaps this is not an
isolated instance.  That somewhere along the line from within
the administration is a proposal dealing with some other
matters, and the utilization of land and/or agreements or
agreements with the Water Department, or what have you, to make
available a variety of other proposals from the
administration.  And we are not aware of the consequences of
all of that.
 So that's the only reason I suggest that we look
carefully at all things, and we set a criteria for some of
these things that are pending before the Council.  It was dated
somewhere along the line of February 16th, or thereabouts, from
the Department of Human Concerns to here, to here, to here, and
it involves West Maui.  It involves I think Amfac prior to
that.  Pioneer Mill, what have you.  And there are a variety of
suggestions that I think we all should look at.  And maybe we
will look at the criteria that the Board will use.  That's the
only reason, for protection of the Board.
 
MR. NAKAMURA:  Mr. Chairman, may I request that when
this matter comes up, or prior to this matter coming up, I
assume at the next meeting, that the staff provide a summary of
the issue before the Board.  Because we have a lot of paper,
but it's very difficult to understand what the conditions
really are.
 
CHAIRMAN CRAVALHO:  The matter that the Chair
alluded to earlier as it relates to Amfac and Pioneer Mill, and
what have you, I just had this morning a very brief opportunity
to look at some of the documents, and it was very, very brief.
And it indicated that reference is being made to a document or
an agreement that was signed by the Board of Water Supply back
when.  And if so, the Chair is concerned with the
administration or a department of the administration moving to
amend or to change or to shift an agreement which had been
reached by the Board of Water Supply.  So I said, hey, let's
wait a little bit so we can take a look.  No objection?  So
ordered.
 Anything else that legitamately should come?
Communication from Judge McConnell.  Remember what I said,
legitimately.  The Chair would suggest this communication from
Mr. McConnell be referred to the Corporation Counsel's office.
 Completely off the record -- on the record, but I'll
express some thoughts.  A referee, court decision or litigation
on potential subdivisions between partners' disagreements
predicates his recommendation on action by this Board.  I think
that is highly irregular.  A decision should be made by that
person, whatever it may be, and then this Board takes a look at
it to see whether it is willing to, as it did in the past with
respect to court decisions, to approve it subsequently, but not
prior to, because then we're substituting ourselves as the
arbitors.  I think that's an improper role for us.
 And I believe that the distinguished Judge McConnell
may be functioning for a fee, and I see no suggestion that he
would share this fee with the Board of Water Supply or the
Department.  So he should do his work and we do ours.  And he
keeps his money and we don't dip into it.  Okay.  You see what
happens when you get to be as old as I am, you can be as
difficult as you wish.
 All right, it's up to you, Mr. Craddick.
 
MR. CRADDICK:  Update on the Upcountry water
situation.  Wailoa Ditch is at 61.2 million gallons, or 30
percent of capacity.  Kamole treatment plant was producing
about 1.6 million gallons of water.  Piiholo treatment facility
the reservoir is full.  The production was about 1.9 million.
Waikamoi is 76 percent full.  Kahakapao is 100 percent full.
Olinda was producing at 1.5 million.  Total demand from the
treated water I guess was a half million yesterday, and the
average for the last week was about 4.7, and groundwater
production was about 0.8.
 
CHAIRMAN CRAVALHO:  The Chair would suggest you stop
right there.  We won't get into any climatical situations.  Any
other matters to come before this body?  If not, we thank you.
We will meet again at the next meeting.  The meeting is
adjourned.
 
(The proceedings were concluded at 9:50 a.m.)
 
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