County of Maui Water Supply


                                                                      
BOARD OF WATER SUPPLY COUNTY OF MAUI REGULAR MEETING
Taken at the Kahului Shopping Center, 65 West Kaahumanu Avenue, Unit 29, Kahului, Maui, Hawaii, commencing at 9:00 a.m. on June 12, 2002. Reported By: Rachelle Primeaux, CSR #370 IWADO COURT REPORTERS, INC. APPEARANCES: Peter Rice, Chair Clark Hashimoto Mike Nobriga Adolph Helm Ginny Parsons Kent Hiranaga Howard Nakamura Michael Victorino Staff Present: David Craddick, Director Ed Kushi, Corporation Counsel Jerry Wells, Secretary Wendy Taomoto, Engineering Holly Perdido, Finance Herb Chang, Engineering Herb Kogasaka, Engineering George Tengan, Deputy Director * * * CHAIR RICE: Good morning, everyone. I will call to order the Regular Board of Water Supply County of Maui meeting. It's Wednesday June the 12th. We are at the Kahului Shopping Center. The agenda has been posted, circulated. In attendance, Board Members Clark Hashimoto, Adolph Helm, Mike Nobriga, Howard Nakamura, Ginny Parsons and myself, Peter Rice; Director, David Craddick; Ed Kushi, Junior, Deputy Corporation Counsel, staff, the those members of the public who are here, who are here to give testimony. We'll get to that in one second. There are no minutes to approve. There has been written testimony submitted. It was on your desk. Everyone has got copies of that. At this point, if there is testimony from the public on any of the issues that are on the agenda, we would be happy to take that testimony at this time. Or if you choose, you can wait until the issue comes up on the agenda, and I will provide for testimony at the beginning of that particular issue. So if I seem to forget, just raise your hand. We'll get moving quickly. Anybody want to give testimony at this time before we move into the agenda? Seeing and hearing none, I'm going to move on to Director's Report 02-19. Mr. Craddick. MR. CRADDICK: What we're asking for here is either board acceptance of the draft supplemental Environmental Impact Statement or an alternative to allow acceptance of the draft supplemental Environmental Impact Statement by the Department. Normally the staff does all the work related to the preparation of the projects including the acceptance of the environmental studies. This particular project is unique in that this supplemental environmental study has been required by the court and the supplemental work is already completed. The Board approved the original study in 1994, and this was under -- with the authorization of the Governor. And currently, it's only State funds that are encumbered in this project. This was done at my request to the Board as I felt the document would be challenged. And I felt it would lend more credence to the document by having the Board approve it. The document was challenged regardless of Board acceptance. An outline of the environmental review process is attached. That's a page behind my letter there. And we're at the point where that large black arrow is, "Agency accepts draft EIS." Now, should the Board decide to accept or delegate acceptance of this document, there is still ample time for community input. What you're doing here is allowing this to be published in the OEQC Bulletin, and that starts a 45-day public comment period. Now I see here corp counsel has reviewed the legal requirements for acceptance and opine that the Department can be the accepting authority, especially since this is a draft document and there is still ample time for Board participation and acceptance of the final document should they desire. The preliminary draft that was circulated to the Board in executive session has been supplemented by the comments collected during the comment period and that scoping meeting that we held and answers to all those comments are provided in this document; whereas, the other one you had didn't have those comments. An appendix has also been added to provide for further monitoring and observation of the aquifer as it is built out. And one other item here is after deciding how to handle the draft supplemental Environmental Impact Statement, the Board may want to schedule public meetings to explain the project or accept further community input to the study or some other form of participation with those that may be affected by the project. We would recommend that if you do it, it be done at this meeting because the 45-day comment period will be up on August 7th if this is resolved here today. And the August 7th date would start June 23rd, which actually is a Sunday, so I think maybe that's the 24th. And in order to meet that date, it must be submitted to OEQC sometime today. Anytime after the June 23rd publication date would be appropriate for a meeting date keeping in mind we will need to get minutes of the meeting and address the comments. That's it. MS. PARSONS: One question. CHAIR RICE: Yeah, Ginny. MS. PARSONS: If it's not accepted today, what would be the results? What would be the prognosis? MR. CRADDICK: They may I guess delay in getting water into the system, and there could be some financial repercussions on the State funds. MS. PARSONS: How much? MR. CRADDICK: On the order of not quite $4 million. MR. NOBRIGA: In the absence of the Chairman because he has something in his eye, monitoring the meeting, is there any other questions from the members? Mr. Helm. MR. HELM: Yeah, this is in reference to Mr. Hall's letter. He mentioned on his last sentence here, "To accept the draft EIS or SEIS is to violate the procedures set out in our EIS law." And maybe our corp counsel can elaborate a little bit about clarifying what he means. MR. NOBRIGA: Are you prepared to give a comment at this time, Mr. Kushi? MR. KUSHI: Yes, Mr. Vice-chair, Board Member Helm, yeah, I did review Isaac Hall's letter dated June 10th, 2002, and he says basically, if I'm reading correctly, his last sentence says "To accept a draft EIS or SEIS will violate the procedures set out in our EIS law." I looked at the Chapter 343 Hawai`i Revised Statutes, which is the EIS statute, as well as the EIS rules promulgated by the Department of Health. In terms of accepting a draft or accepting a supplemental draft, this is just the preliminary stage to get into the final draft, the final statement. I don't see where, you know, what Mr. Hall is saying that we violate the procedures. You need some mechanism to move forward. If we can't accept it, if the Department or the agency can't accept it, who does? That's the question. By reading these laws, the final accepting authority after a draft is published and public comment is accepted and responded to, final accepting authority is either the Governor or the Mayor. In this case, my understanding is the Governor delegated that task to this Board; however, to even to get to that final stage, you need to start the publication process. What Mr. Hall says I don't understand and I don't agree with. And I think if the Board is going to move on with this plan, we should move on accordingly. And there needs to have some sort of approval to get this draft plan to OEQC, QECC, whatever the agency is, to start the publication process, and the Department has come to you to say let us do it or you do it. CHAIR RICE: Isn't the question, Mr. Kushi, acceptance -- it's that I don't see acceptance in this draft of the system. It's pointing here, isn't it? MR. NOBRIGA: Yeah. CHAIR RICE: Which way is it pointing? The agency accepts draft EIS. The agency is not us. MR. NOBRIGA: Mr. Chairman, I beg to differ because it was basically under the charge of the Board of Water Supply that these supplemental EIS process was -- like it was rebegun. CHAIR RICE: Okay. Except I'm just talking about the words in this document that was circulated to us, because agency in here -- make sure Mr. Kushi has a copy of that. Agency in here, I guess that's my question. Does that mean Board of Water Supply? Because in the very beginning, it says, "Agency determines project is exempt or not applicable." That's not the determination that we make, and I think agency that's being referred to in this document is not the Board of Water Supply. And are we accepting -- I don't know that we're saying that we accept the EIS as much as we're saying, okay, it's been done. We've gone through the process. We've got comments. We've incorporated the comments into the document. Move it on to the next step. It's not approved. It's a document that is done to disclose issues, environmental issues that relate to a project. So it's not that it's approved by anyone. I guess this body can say have we adequately reviewed all the issues that would relate to environmental impacts and are they included in this document if we feel that's the case. Or obviously if we didn't feel that was the case, comments would have reflected that, and it would be included in this second draft. But whether it -- but to say that it's -- I mean I don't know that I could say that it was complete or not complete. You know what I'm saying? So my question is when they say agency in this document, who is agency? MR. KUSHI: Okay. That technical answer to your question I would just cite from the HRS 343. Under definitions, "Agency means any Department, office, board or commission of the State or County government which is a part of the executive branch of the government," so department or commission. CHAIR RICE: Ginny. MS. PARSONS: So as the board or the commission, can we appoint the Director to make the determination? MR. VICTORINO: I think that's what he's asking. CHAIR RICE: That's what he's asking for us to either accept it or ask the Department. But I don't want to get into that. Remember I made that speech a while back. We're not two groups here. MS. PARSONS: Right, we're one. So as a group, can we appoint the Director to make the determination? CHAIR RICE: Mike. MR. NOBRIGA: Thank you. Because of the nature of the entire project, keeping in mind that historically speaking, the Environmental Impact Statement process was begun and was challenged, and that challenge was heard in a court of law. The court provided -- the court provided a scope of work for the supplemental EIS if I am correct in that assumptions. Using this -- using this expanded view document that we have in our packets, on the original EIS preparation on the project, at what point was that EIS project along the line prior to the filing of Mr. Hall on behalf of his clients? Was it already down on the bottom, or was it like halfway through? MR. KUSHI: Understand I wasn't here, but according to Director Craddick, on your flow sheet, it was at the very bottom, 60-day legal challenge period. So it went through the whole 9 yards, and they went to court. MR. NOBRIGA: That brings up another question. Being that that EIS process had come to a natural conclusion, is our direction of a supplemental EIS a new project in which case Mr. Hall on behalf of his clients, the Coalition to Protect East Maui Resources et al., he -- I feel his comments is directed to the top of the process, which in his view was not followed for whatever reason. And I'm very clear in my mind that that wasn't -- that didn't take place because the court already determined what the scope of work for the top half was going to be. MR. KUSHI: Well, let me respond this way. Maybe David can try to make it clear. My understanding is, like you said, the initial EIS went through the 9 yards and it got challenged. And the plaintiffs were successful in persuading the court to say that the EIS was inadequate. So the court ordered the Department and the Board, both defendants, to do a supplemental EIS. And until you do a supplemental EIS, no funds would be spent, no premise would be issued except funds needed to prepare the supplemental EIS, so we're at that stage. So it's not like it's a new ball game. It's a continuation of what they started back in the early '90's. What Mr. Hall and his clients are arguing apparently is we should go back to the top of your flow chart, which I believe the Department and through its consultants have done. They've had meetings with agencies. They've had the scoping meetings. They have published the EIS preparation notice. Mr. Hall has been responding and commenting all throughout up to two days ago. So we're, as Mr. Craddick says, we're at the finger-pointing stage of what -- whether to go on and start to publish this document. CHAIR RICE: Okay. And I think that answers the question you had, Mike. MR. NOBRIGA: Uh-huh. CHAIR RICE: But my question now, it appears from reading these two letters that Mr. Hall disagrees with you in terms of input he's had along the process. And I'm looking at the longer of the two letters where he's talking about addressing studies and things that he thought should be included in the EIS that apparently are not. And I'm only bringing this up in terms of expecting a challenge, have we covered our bases adequately enough to -- we're going to be probably required to go back to court to present the EIS in such a way that it's now an adequate EIS. So the question should be have we done all of our homework and are we comfortable we addressed all the issues. And I think if we answered that question yes, we can make a decision to accept it in its current form and move it on to the rest of the process. Does that make sense to the Board Members? MR. VICTORINO: Yeah. MR. NAKAMURA: Can I ask a question? David, during this process of the preparation notice and the comments submitted in response to the preparation notice, were there a large number of comments or just a comment from Mr. Hall, and were all those comments responded to on a timely basis or, as Mr. Hall suggests, he did not receive any response until June 5th? MR. CRADDICK: Can I just go down and read you all the people we responded to, or do you want specific just to Isaac Hall? MR. NAKAMURA: I want to get a general idea whether or not there were a number of responses and a number of comments that whether or not there were responses made. MR. CRADDICK: This section in the report here titled 16.5 Testimony Letter and Responses to Comments on the Draft Supplemental EIS Notice, it has most state agencies. And the very last one Isaac Hall's letter dated June 7th, 2001, is responded to. MR. NAKAMURA: A year ago? MR. CRADDICK: Yes. MR. NAKAMURA: What is the reason for this, David? MR. CRADDICK: All of them are responded to within the span of about a week including the ones from the scoping meeting that we held. MR. NAKAMURA: Is that the normal procedure that the responses are in a significantly later period? MR. CRADDICK: I don't know if that's normal, but in this particular case, one of the things we had to do is drill that monitor well, so we had to go through the whole bidding process on that and actually drill the well and that was the main I think issue delaying this so that we could actually respond to them, because the issues that they brought up were the same issues brought up in the court case. And we -- the court felt we couldn't respond to them then without doing a monitor well, some sort of observational well, and that's what we did in order to respond to these. MR. NAKAMURA: When we started on this supplemental EIS project, we had requested that Mink & Yuen retain the services of a legal consultant to basically assure that the process was clean and that we would minimize the potential for action down the road. Has that been done? MR. CRADDICK: Yes, it has been done. MR. NAKAMURA: It has been done? MR. CRADDICK: Yes. MR. NAKAMURA: Are you sure? MR. CRADDICK: Yes. Well, they've been consulting with them over these letters when we held a scoping meeting. I know they talked about -- when I say they, Mink & Yuen talked with him about whether that was okay to have that meeting. And on our side, we talked with corp counsel, and on their side, they also talked to OEQC. MR. NAKAMURA: Okay. And then one last comment. If the Board, if there's no action taken in response to Commissioner Parsons, Board Member Parsons' question, the impact would be basically that it would be published at the next -- at the next issue of the OEQC newsletter; isn't that right? MR. CRADDICK: That's correct. Well, as long as something happens here today positively and not that it goes to further study or to try and address these two letters of Isaac's. MR. NAKAMURA: And the newsletter is published -- MR. CRADDICK: Twice a month. MR. NAKAMURA: Twice a month? MR. CRADDICK: Yes. MR. NAKAMURA: So you're not talking about -- I'm not suggesting we defer it, but you're not talking about a disastrous delay? I think the Director is crying wolf or something. I mean, you know, you raised $4 million. I don't think that's a fair statement. Two weeks is going to cost us $4 million. We've been at this thing for years. MR. CRADDICK: The State has been trying to lapse that money for some number of years. In 1996 the Board Chairman went in and had a meeting with the Governor and the budget person Earl Anzai at that time, and we got it deferred I believe it was until the year 2000. In the year 2000 we wrote a letter asking it to be deferred until December of this year. And we have always assumed it's early December. If it's late December, then you might be right. I didn't want to chance it, you know, and having that being confused. But our letter to them just says December 2002. MR. NAKAMURA: Thank you. CHAIR RICE: Any other comments from the Board? What's your pleasure? MR. VICTORINO: Mr. Chair. CHAIR RICE: Mr. Victorino. MR. VICTORINO: So if I'm correct in what I understood what has been said to this point, that if we accept this report, that's basically what we're doing so that we can move on in the process? We're not saying that we accept any other further changes that may come about or anything that may come about once this report is published through the -- I'm sorry, I missed that. MR. CRADDICK: OEQC Bulletin. MR. VICTORINO: Thank you. So what we're doing, this supplemental report was required by the courts, am I correct? And if we do not get this supplemental report out, we wait another two weeks, a month, we're getting closer and closer to these deadlines that makes it almost virtually impossible and we may lose the $4 million along with other things that may occur. By us accepting this supplemental report, it's my understanding we're just moving the process along. We're not saying we accept the project. We're not saying anything more than we want the process to be moved along. And I think Mr. Hall and those people out there, we're not saying that, hey, we're not listening to you. There may be other things that come up, but we want the process to continue instead of just being bogged down like it has in the past. Am I correct in saying that? MR. CRADDICK: I would say yes to that. MR. VICTORINO: So my feeling is this supplemental report moves the process, then I'm in favor of accepting the report, even though I've spent a number of hours reading it. And I'll be very honest, you've got to have some engineering background to understand a lot of this stuff. But, you know, I'm in favor of moving it on so we can move the process because the public needs to be engaged, and this is another way of the public being engaged. CHAIR RICE: Mr. Kushi, would you agree with Mr. Craddick's comment? MR. KUSHI: Yes. CHAIR RICE: Thank you. And I guess if Mr. Hall has legitimate concern, I don't know that we're going to solve it in two weeks, so if we drop the ball somewhere, we're going to be back to the drawing board anyway, right? MR. CRADDICK: That's correct. Can I -- one other thing for the record, too. CHAIR RICE: Mr. Craddick. MR. CRADDICK: There is a court case going on here right now, and there seems to be some debate whether that court case is finished. And when he submits something, it starts a new legal challenge and it's not part of that other court case. I believe corp counsel kind of takes the opinion that that court case is still ongoing, and if he challenges it, he'll be part of that. And if that's true, these letters they keep sending to us I think are of some concern because he should be corresponding with corp counsel, not necessarily us individually because there is a court case going on. CHAIR RICE: Well, Mr. Craddick, you have -- I'm sure you have a long enough memory to remember that I directed you that all this correspondence should go to corp counsel, so while he may mail it to you, it should be sent directly to them, and the responses should come from corp counsel. MS. PARSONS: May I just say this? It's a sanctionable issue in court, so it's a very important issue. It's a sanctionable issue. CHAIR RICE: I'm not an attorney, and neither is Mr. Craddick. That's why I don't want Mr. Craddick giving legal advice. That's why we have Mr. Kushi sitting next to him over there. MR. NOBRIGA: The matter before us this morning is to -- for us to either accept the document as the Board of Water Supply or delegate acceptance authority to the Department. There's one question that I still need to be answered in order for me to make that decision if we want to accept or delegate. That questioning is, unfortunately might sound weird, but legally who is easier to defend? MR. KUSHI: Clarification. Who, the Board or the Department? MR. NOBRIGA: Yeah. Because that's what's before us we. Either got to decide if we're going to take the rap or let Mr. Craddick take the rap. And I think Mr. Craddick would be more easy to defend in a court of law than we would be because we're all individuals. MR. KUSHI: Well, defending one is easier than defending nine, put it that way. But in any event, both of you, the Board as well as David in his capacity are defendants in this ongoing case. And I agree and confirm with David that our office's feeling is that this civil case starting back in 1993 is still pending, that the court made an order saying -- ordered us to do a supplemental EIS. And until we do it, they still have jurisdiction over it. So in terms of who is easier to defend, we have an obligation to defend both anyway. MR. NOBRIGA: If there is no objections, I would like to move that we delegate the Department to accept the draft. MR. VICTORINO: I second the motion. CHAIR RICE: Moved and seconded to delegate the Director. MR. NOBRIGA: The Director and the Department, the Director and the Department. CHAIR RICE: Okay. Comments, Mr. Kushi? MR. KUSHI: Mr. Chair, maybe for clarification and I guess comfort level, maybe the motion should be that you move to delegate to the Director the responsibility of accepting the supplemental EIS, the draft supplemental EIS for publication. MR. NOBRIGA: I will reword my motion to include all the comments made by our corp counsel in its entirety. MR. VICTORINO: And I second the amended changes to the motion. CHAIR RICE: Okay. Does everyone understand the motion? Mr. Nakamura, you have a question? MR. NAKAMURA: I was going to make a similar comment to what the corp counsel said. My suggestion was to add language to the effect that the Director be authorized to accept and to process the supplemental EIS, you know, in accordance with law or something like that or in accordance with the appropriate legal procedures, which is what he's basically going to have to do. I think that corp counsel's suggestion pretty much incorporates that. CHAIR RICE: Okay. Any other questions, comments on the motion? Okay. All in favor, say aye. VOICES: Aye. CHAIR RICE: Opposed, say nay. (No response). CHAIR RICE: Motion is carried unanimous. Okay. Next item, Director's Report 02-20. MR. CRADDICK: It's stream monitoring project is in our budget, and its program spans a number of years, three years I believe, for monitoring of streams in the northeast Maui. This first year is $30,000 I believe it says in the contract. The next year would be 50, but the funds get spent over three years. And the objectives of this study are to assess the effects of existing surface water diversions on flow characteristics for perennial streams in northeast Maui, characterize the effects of diversions on in-stream temperature variations; and three, estimate the effects that stream flow restoration will have on habitat availability for native stream fauna in northeast Maui. And this is a cooperative agreement with the Commission on Water Resource Management and U.S. Geological Survey. CHAIR RICE: Okay. Any questions from the Board Members? Mr. Nobriga. MR. NOBRIGA: Any reason why the Board of Water Supply does not sign the second page of the contract? MR. CRADDICK: I think this came from the State, and I don't think we made an issue with it. But it could be the Board decided it. There's no problem with that if that's your desire. MR. NOBRIGA: Move to support this project. MR. VICTORINO: Second. CHAIR RICE: Moved and seconded to support the project. MR. NOBRIGA: Yeah, by releasing the funds necessary blah, blah, blah. MR. VICTORINO: I second the rest of that motion. CHAIR RICE: It's been moved and seconded to support the project and move funds along to perform according to our agreement. Mr. Nakamura. MR. NAKAMURA: One question. Mr. Attorney, is it appropriate for us to basically agree to the $50,000 for a subsequent fiscal year, or can we just agree to the $30,000 for this year? Isn't there supplementation? MR. KUSHI: Board Member Nakamura, I'm sorry, I had assumed this amount was budgeted. But if what you're saying is correct, that it's not budgeted, then we need to amend the budget. MR. NAKAMURA: Well, the 30,000 is budgeted. MR. KUSHI: Multi-year? MR. CRADDICK: Yes. MR. KUSHI: But your budget is year to year. MR. NAKAMURA: Yeah. CHAIR RICE: The request is for $30,000 matching funds, so I think that's what the Board is approving at this point. Well, Mr. Chair, the Director pointed out on the memorandum of agreement Page 2, Item Number 3, it seems to have a release clause there regarding termination before the end of the term, but I still have other questions. CHAIR RICE: Mr. Kushi, the request from the Director is for matching funds which are in the budget which we can approve. The request is not to sign a multi-year agreement, right? So we can approve the request for funds, matching funds, and then if we have to amend the agreement to conform with our own rules, then we have to do that. But if you think the agreement adequately protects us, then -- MR. KUSHI: You know, at this time, Mr. Chair, I need to look at this again. I can't give you a yes or no on that. CHAIR RICE: Mr. Nakamura. MR. NAKAMURA: Mr. Chairman, perhaps I would suggest, as you seem to be agreeing to, is if we approve the $30,000, which is the amount contained in the budget and basically leave it up to the Director and the attorneys to handle the appropriate documentation. CHAIR RICE: Okay. No objection to that? (No response.) CHAIR RICE: All in favor, say aye. VOICES: Aye. CHAIR RICE: Opposed say nay. (No response.) CHAIR RICE: Motion is carried. Okay. Communication 02-14, request from Fred Sherman for water service, Molokai. Mr. Sherman. Mr. Craddick. Members of the Board, I've asked Mr. Craddick for the historical background on this. Here it is. You're all welcome to have it if you like. I believe that in terms of service, Mr. Sherman can have service if he pays for the meter, is that correct, Mr. Craddick? MR. CRADDICK: That's correct. CHAIR RICE: The issue then is not with Mr. Sherman, as I understand it, with regard to getting a meter. It's that in the year 2000, the meter was removed from that property because the prior owner was delinquent. In the year 2001, Mr. Sherman purchased the property I think through a foreclosure and now wants that meter put back at no charge. And that's the long and short of all this correspondence I believe. MR. CRADDICK: Yes. CHAIR RICE: So if Mr. Sherman was here, I would ask for confirmation that he actually bought the property in 2001. And I would ask Mr. Craddick if, in fact, he did remove the meter in the year 2000 in April as he's indicated in this? MR. CRADDICK: We did. CHAIR RICE: You did, okay. So I think Mr. Sherman's issue is with the seller, if he believes there's a meter that's due him. And I don't know if corp counsel has had a chance to look at this or not. MR. CRADDICK: It was a foreclosure I believe. Those are as is where is. MS. PARSONS: It could have been represented to the seller that there was a water meter on the property. It could have been represented. We don't know, so you're right, it goes back I would think to the seller. CHAIR RICE: Mr. Victorino. MR. VICTORINO: Basically that answered the question. I mean when it's a foreclosure, you take it as is. And whatever results, resulting situations, you knew that going in. I see we're not obligated in that sense, Mr. Chair. CHAIR RICE: I could see nothing in there, unless for some reason -- there is some reference, Mr. Craddick, to reviewing the property when there was a meter there. That's why I asked if it was removed in 2000. And he didn't buy the property and closed until 2001. Then it was without a meter for a year, so I don't know. MR. CRADDICK: I can't confirm the date when he actually concluded his transaction. I do know that meter was removed in 2000. CHAIR RICE: This is an e-mail from Mr. Sherman to Mike Quinn, and it's dated April 23rd, 2001. And it said, "I closed on this property last Monday," so I'm sure we can figure out what date that was. And then in this documentation -- I just, I guess I want to make sure we don't embarrass ourselves here and find out we actually didn't remove the meter in 2000 and we removed it in 2001 when we found out he was buying it. Then I think we have an issue. MR. CRADDICK: We could research that a little bit better and bring that back to the Board if you want. Because we got all the information from Cravalho plantation over there in Molokai and we would be probably looking at that issue sometime in the next month or so. CHAIR RICE: I think the key thing is when we removed the meter, if we can verify when we did that. MR. CRADDICK: I can verify that it was removed in 2000. CHAIR RICE: Okay. Subject to verification that the meter was removed in 2000, then Mr. Sherman can have a meter and pay the current fee. Do we need a motion to that effect? That's part of the rules I guess, right? MR. CRADDICK: Yes. CHAIR RICE: Okay. Let's move on to the fun stuff. Mr. Nobriga, you want to say something? MR. NOBRIGA: I move Communication 14 be filed. MR. VICTORINO: Second. CHAIR RICE: Moved and seconded Communication 02-14 be filed. All in favor, say aye. VOICES: Aye. CHAIR RICE: Opposed, say nay. Motion is carried unanimous. I was going to say let's move on to the fun stuff. Okay. Other business, the three items under other business, no one has interrupted me for public testimony until now, so I guess you're all here for this issue. Mr. Craddick. MR. CRADDICK: Peter, on the last item, I don't know whether Mr. Sherman has gone to court yet, but he was supposedly consulting with some judge that referred him to my original letter to him saying that he could come to the Board to petition the Board for relief. Now he sent the letter in. He's not here, but I think the Board should take some kind of affirmative action either his request is approved or his request is denied, not just filing it, because that leaves it open that no action has been taken by the Board. And if he does go to court, court is just going to refer him back to you for taking action. So if you're going to take action today, I'll leave it up to the discretion of your legal advisor here, but it would be my suggestion to take some kind of affirmative action here, yes or no for his request to have the meter reinstalled no charge. CHAIR RICE: Well, and I guess at this point, you have another fact-finding thing to do before we can respond. MR. CRADDICK: So then the best thing would be maybe to defer this item until we get that information to you. CHAIR RICE: I don't have a problem with that. MR. NOBRIGA: My motion to file was based on proposed rule amendment allowing for public appeals to the Board that a proposed rule has been transmitted to the Mayor and has not yet been approved or denied by the County Council. MR. CRADDICK: This rule that the meter fee is in has its own provision there where the Board can waive the rule if we want, so you could deal with this if you wanted to take some action. CHAIR RICE: Ginny. MS. PARSONS: May I make a motion that provided that the meter was removed in 2000, that Mr. Craddick is to respond to Mr. Sherman, and the purchase was in 2001, that Mr. Sherman may purchase the water meter at the current rate. CHAIR RICE: Is that it? That's it? MR. VICTORINO: Second. MS. PARSONS: Do we need anymore? CHAIR RICE: All right. We've got a motion and a second. We have a prior motion to file I believe parliamentarily. MR. NOBRIGA: I don't remember what the motion is, but there's a motion to rescind. What was the motion? MR. KUSHI: The motion to reconsider your prior action. MR. NOBRIGA: Right, right, thanks. Move to reconsider the prior action, Mr. Chairman. MR. VICTORINO: Second. CHAIR RICE: Moved and seconded to reconsider the prior action. Any discussion? (No response.) CHAIR RICE: All in favor, say aye. VOICES: Opposed, say nay. (No response.) CHAIR RICE: Now we have a new motion subject to confirmation of the facts of the removal of -- the dates of the removal of the meter and the purchase of the property that Mr. Sherman be told that he may purchase a meter at the current rate. MR. VICTORINO: Second. CHAIR RICE: It's been seconded. Any discussion on that motion? (No response). CHAIR RICE: All in favor, say aye. VOICES: Aye. CHAIR RICE: Opposed, say nay. (No response). CHAIR RICE: Motion is carried. If there is testimony at this point, public testimony anyone? Start in the front row. Come up and give us your name. MS. BEASOM: Good morning, I'm Susan Beasom, and we've written a couple of letters. We have four-acre lot off Kokomo Road, and we applied for a subdivision in 1994. We've been on the water meter waiting list since then. Our subdivision has lapsed. We wish to remain on the list. We were notified that we may be taken off the list or that we are off the list. And I guess the point -- my point of contention is that I understand there are people on the list who have never even applied for a subdivision who remain on the list. And because our subdivision has lapsed, we're being taken off the list, and we don't want to be taken off the list. We are still waiting for -- we would like to still wait for a water meter. CHAIR RICE: Okay. MS. BEASOM: I think the reason -- Mr. Craddick informed me the reason that our -- we were taken off the list or that our subdivision lapsed, Newcomer Lee was surveying our property, and we're -- we're Kokomo Iki subdivision. I don't know if you see that. CHAIR RICE: Yeah. MS. BEASOM: We were off island from '96 to '99, and it was during that period, so I don't know if it was a miscommunication or if we were lost, they didn't have our address or what or why. And my husband unfortunately is not here. He would probably know more about that. CHAIR RICE: Okay. I can tell you that no final decision has been made on this kind of issue. That's one of the reasons we're having the meeting today is to discuss this, so we appreciate your comment. We've got the list of the subdivision. MS. BEASOM: I would like to know if there is something we need to do to remain on the list. We did not know it was a requirement to have a current subdivision to stay on that list. And if we had, I guess we would not have let it lapse or we would have been diligent about looking while we were off island. CHAIR RICE: Well, there's a lot of issues that are going to come up on the list that we're going to discuss today. We are not necessarily going to make a decision. We may or may not, but we are going to discuss them. So any input you give us, we appreciate it. MS. BEASOM: So just keep coming to meetings and sending you letters? CHAIR RICE: No, we're not delaying it, but as we go through the process, a lot of issues were raised. Board Member Hashimoto went through the list and raised a bunch more, so we're going to try and discuss those today and come up with an equitable resolution. MR. NAKAMURA: Can I ask one question? CHAIR RICE: Sure. MR. NAKAMURA: Your property, you have no meter at all? MS. BEASOM: We have a meter. We have four acres. We have one meter, and we want to subdivide that into two two-acre lots. MR. NAKAMURA: So this subdivision was for the purpose of creating a second lot? MS. BEASOM: Yes. MR. NAKAMURA: And that was why there was an application for the second meter? MS. BEASOM: Yes. Thank you. CHAIR RICE: Okay. I'm glad you asked that question, so you said your subdivision name was? MS. BEASOM: Kokomo Iki. CHAIR RICE: Okay. Right, thank you. MS. BEASOM: Thanks. Thank you. MS. DICKSON: Mr. Rice, Chairman, and Members of the Water Board. CHAIR RICE: Your name, please. MS. DICKSON: My testimony today is regarding the upcountry water meter waiting list and the issuance rule for the upcountry system on June 12th, 2002, the Board of Water Supply regular meeting. I'm here this morning to respectfully request that my husband Cecil Dickson and I be kept on the upcountry water meter waiting list. My husband and I own a two-acre parcel on Omaopio Road in Kula. In 1993, we applied for a three-lot family subdivision but were told that our subdivision would not be approved because the Board of Water Supply had deferred action on our request for additional water meters due to the fact that water was not available in our area. At this time, we were placed on a priority list for a water meter in the upcountry area and were told we were number 300 on the list. In 2001, after hearing through the news that the Board of Water Supply would soon be able to provide water to those on the upcountry priority list for water meters, we again applied for subdivision of our property. I was told that we were now 404 on the priority list. I am not sure how more than 100 people got in front of us on the list and this does concern me, but we were at least satisfied that our position on the priority list had been confirmed. On December 27th, 2001, we received primary subdivision approval. After doing some research, I discovered that the audit on the priority list conducted by the independent auditor with the cooperation of the Department of Water Supply recommended that numerous names be removed from the priority list. I also discovered that our name might be removed from the priority list because we did not keep our 1993 subdivision application active. I appeared before the Board of Water Supply on May 21st, 2002, to offer testimony to the Board's public hearing regarding the priority list and proposed rule change. I asked the Board to please reconsider removing our names from the priority list and to honor the grandfather clause regarding installation costs and charges of water meters. At the public hearing, Board Member Nobriga stated that the concerns such as those I expressed had already been addressed by the proposed rule amendment. Further research indicates that despite the Board's assurances, our concerns are not being addressed. The proposed rule amendment will only apply to those who remain on the priority list. If we are taken off the priority list, the proposed rule amendment will not apply to us and we will have little or no hope of receiving water meters we have waited almost a decade for. The only reason I stopped pursuing the subdivision was because we were told that the water was not available and no assurance could or would be made when the water would become available. We were never told that we could be excluded from the priority list because we did not continue to keep our subdivision application active. Had we known this was possible, we would have requested a time extension for our subdivision application. For the past nine years, we have been on the priority list and have relied on the assurance -- on that assurance that when water became available, we would be granted the water meters we were requesting in the order of the priority list. Therefore, I urge you to please allow us to remain on the priority list. To remove us from the priority list would, in my opinion, be unfair and unjust. I respectfully urge you to please address this issue before you decide on the proposed rule amendment. To allow the priority list to be amended without consideration of those will cause hardship to many families. Thank you very much. CHAIR RICE: Ms. Dickson, one second. MR. VICTORINO: Yeah, Ms. Dickson, I was looking on this priority list. I cannot find you. MS. DICKSON: I know, and I was -- I am 404 on the water -- MR. CRADDICK: It's 95079. MR. VICTORINO: 95079? MR. CRADDICK: Texeira-Medeiros subdivision. MR. VICTORINO: I was trying to find this using your name, and I could not find it for the living daylights. MS. DICKSON: I don't know why it went as that, but the that was the original when my dad did it years ago. MR. VICTORINO: That's the property we're talking about? MS. PARSONS: Since '95, not '93. MR. VICTORINO: You said '93 also in the letter. MS. DICKSON: Sorry. CHAIR RICE: I have a question, Ms. Dickson. You made a comment about the auditor recommending names to be removed from the list. Where did you get that information? MS. DICKSON: From the Board of Water Supply and on the -- in the priority, I mean in the rules, they said that they were removing. CHAIR RICE: But the auditor doesn't recommend anything. The auditor was engaged to check the list. They didn't make recommendations as to anyone being included or excluded. That wasn't their job just so it's clear for the record. MS. DICKSON: When they said the first 50 were, you know, considered okay on the list, I just assumed that there was, you know, this is where they were at. CHAIR RICE: No, the auditor -- one of the reasons we engaged the auditor was there was questions about the list, okay. I was number five. I'm now number 500, whatever, whatever. Without -- if it would have taken much longer, we would not have this report yet if they did the entire list. We told them to take the first 50. What they found was the first 50 were in correct order, that the documentation behind their listing is legitimate, so no exceptions were found. They did not -- we didn't ask them to say whether someone should be kept or not kept. That's the Board's decision as you were testifying. MS. DICKSON: Okay. CHAIR RICE: Thank you. Any other questions, Mr. Nakamura? MR. NAKAMURA: So what is the source, David, of this table on void subdivisions? MR. CRADDICK: The source of it is names that were not submitted to the auditor because they were taken off the list because the subdivisions had lapsed, and that's all I can say. MR. NAKAMURA: So the source of the list is the Department? MR. CRADDICK: Yes. Yeah, these are all -- all of these names here, I think if you'll look in Clark's report there, I think we see a total of 17. And I'm not quite sure how it went from 17 to the number you have here, but you can see there's more than 17 here. There's about 36 or somewhere in that order of magnitude of subdivisions that were dropped off the list because they had lapsed. MR. NAKAMURA: What's the difference between a subdivision being voided and a subdivision expiring? MR. CRADDICK: No difference I don't think. That's done by Land Use and Codes as far as I know, and, Herb Chang, is there some difference between those two? MR. CHANG: I just used the same term. Land Use and Codes said it's null and void. I just used the same word. MR. NAKAMURA: So these are basically preliminary subdivision -- they had a preliminary subdivision application and then their preliminary was either because of time or whatever was considered to be null and void? MR. CHANG: Correct, or expired. MR. NAKAMURA: Because of the expiration of time? MR. CHANG: I'm not sure. Sometimes they use the word expired. Sometimes they use the words null and void. MR. NAKAMURA: But is it usual the reason one has expired without any extension? MR. CHANG: I don't know. I just received a letter saying it's expired. MS. PARSONS: Mr. Craddick, do you have to have a subdivision in order to apply -- do you have to have a subdivision in order to apply for a water meter? MR. CRADDICK: No. Can I maybe go at the risk of -- CHAIR RICE: No, don't take any risks this morning. If you have a question for Ms. Dickson, I think it's appropriate, otherwise we'll get into plenty of this stuff. Thank you. CHAIR RICE: Any other comments, last row? Dick Mayer. MR. MAYER: First I would like to thank the Board for coming up to Kula and holding a meeting the other night. That was very helpful for a lot of people and I think hopefully for the Board to hear from people. I just want to reiterate one or two things that I said and that others may have said. We would like very much in the rule an actual public listing of the names. You can see the confusion that's come up today, the need for auditors, et cetera. We believe it should be on the Internet, and that as numbers go down the list, that they be made public. And I think that should be put on the list and people will see exactly how many more people are ahead of them at all times. The problem with subdivisions, and we feel that there are some large subdivisions which will deny families the ability to get meters, and consequently, we would urge, whether it be one, two, three, a maximum of a low number of meters being given to anybody on the list. And then they can get back on the list, be put at the end of the list for subsequent meters. We would like to see oversight by the Board of the whole thing, and so we would like to ask that quarterly reports be given to the Board and that relates to adequacy. If meters are being given out, we would like to make sure that there's adequate water for the people who already have meters. The problem could be that you give a meter out for a very large user; in other words, it may be only a three-quarter inch or one inch or whatever the meter size might be, but they might be using it up very intensively, be using up a large draw of water, so the number of meters does not relate directly to the amount of water actually being consumed and it may impact people. And lastly, I would like to remind you of the upcountry community plan. I would like to hand out something. There was an article in the newspaper that was written. If I could ask -- this is an article from 1993, and in there, it makes the point where the arrows are pointing there regarding what was done by the upcountry plan and the statement that we were making that rule a priority rule knowing that the Water Board was required to carry it out, so this was a very conscious decision that was made. At that same time, Mr. Craddick came to the Board, and I have here a second article that I would like to pass out. I hope David is flattered. I only have on this one here only a few copies. I hope he's flattered by the photo that's included in the article. And it says basically the same thing. I asked him a question. I asked him a question down on the lower left-hand corner of that article whether -- how the Water Department handled this question and Mr. Craddick did not answer the question at the time. And it seems to be still the point of the Department that we're not really getting clearly how this list is going to interact with the very strong recommendation that's contained in the plan that's required that the Board follow that plan of how Hawaiian Homes and agriculture will be interfaced with this priority list. And I still haven't heard any word on how that will be handled. That's the end of my testimony. CHAIR RICE: Thank you. Questions for Mr. Mayer? MS. PARSONS: Which Hawaiian homeland are you referring to? MR. MAYER: It's an area on the southern end of the upcountry district below Keokea and between south Keokea and the telephone exchange, largely in that area. There's another Hawaiian homelands, Kahikinui, which is outside the upcountry district. We do not have a right to specify that land per se, but we -- I think we're in sympathy with -- the problem is the water from our district serves that area, and therefore, it would impact them, but we could not make that statement. MS. PARSONS: Thank you. CHAIR RICE: Any other questions for Mr. Mayer? Yes, Mr. Nakamura. MR. NAKAMURA: Mr. Mayer, you mentioned the desire to perhaps limit the number of lots in new subdivisions. What is your suggestion in terms of what that number should be or what the criteria should be in establishing that number? MR. MAYER: I have always been frustrated by the whole concept of family subdivisions, because I had a next-door neighbor who came to me and said my two sons are going to get those two lots beside me. He went ahead and subdivided. I thought that was great. I knew the two boys, his sons. They were students of mine. He went ahead and subdivided, and within a month I believe after he subdivided, he immediately sold it off to a mainland developer. That to me is frustrating, so I think a family subdivision, if it is clearly a family subdivision and if the family keeps it in the family for an extensive period of time, 10, 15 years, would be a way of getting around that. Not 30. I saw that in the first list of 50, one subdivision of 37. I don't think that's fair for one person to get 37 meters when somebody who might be the next person on the list doesn't get a meter at all, so I would like to say one meter per family. And if they can generally show and put in the rule that it is generally a family subdivision, then perhaps, two, three, four. CHAIR RICE: Ginny. MS. PARSONS: Mr. Mayer, do you feel that -- I mean when you're looking at the number of meters and limiting it in times and essence on that, isn't that more of a Planning Department issue rather than the Water Board? MR. MAYER: Well, the Water Board is supposed to carry out the general plan and the community plan. That's your role. And so the technical part of someone who is carrying out the plan is your role. In this case, if the priority is Hawaiian homelands and agriculture, your obligation is to find or make a rule that carries out that plan. This would be a mechanism to help do that. So I see it not that you're making the plan. The plan is there. Your job is to decide how that is going to be implemented. That's my viewpoint. CHAIR RICE: Yeah, I think -- go ahead. Did you want to say something? MR. NAKAMURA: So your view of family subdivisions is that it's either Hawaiian Homes or agriculture? MR. MAYER: My thing is it doesn't say exclusively Hawaiian Homelands and agriculture. It says that's the highest priority it's stated in several places. That should be first. And then you would go to individuals, and that may include in some cases a small family subdivision of individuals, but not the type of extensive subdivisions which some people have on the list. And there should be a reserve. I suggested a possibility would be one-third/one-third/one-third. One-third we're going to keep whatever source we have reserved for Hawaiian Homelands, one-third for agriculture, one-third for residential use and the Director be given -- and you will not know what's happening unless reports are given back to the Board on some regular basis, quarterly or semiannually, as to exactly how the meters are being given out. That should just be a standard report that's given back to the Board how this rule is being implemented, otherwise you will never know what's happening. CHAIR RICE: Clark. MR. HASHIMOTO: So you're not in favor -- well, you're in favor of mostly family subdivisions and not so-called commercial subdivisions where they'll have 1more than three lots, so there's some commercial 1subdivisions in here. MR. MAYER: And I think that would be unfair to many families, people who testified today and other meetings, who have been waiting on the list ahead of people who aren't on the list. They would buy a lot in a commercial subdivision, but they themselves are not on that list. So a developer going and saying I am going to put up 37 or in some cases even more units I think should not be given a higher priority than someone who is further down on the list than a family in Kula or Pukalani or Kokomo who is waiting. MR. HASHIMOTO: Because there's a lot of lots, some of these are 9, 4, you know, 15, 10, 19, those are all considered commercial, not family subdivisions. MR. MAYER: And you may want to put a limit. You may say no more than four. MR. HASHIMOTO: That's what we're going to discuss today. MR. MAYER: I think that it would be very wise for you to set a limit, and then show not only that it's just a four-lot subdivision, but also for family members. CHAIR RICE: Any other questions for Mr. Mayer? Thank you, Dick. MR. MAYER: Thank you. Thank you for your attention to this. CHAIR RICE: Anyone else want to testify? We're going to take a quick break. (Recess taken.) CHAIR RICE: Okay. Before we get into a lot of deliberation here, we have the auditor's report. You lady and gentlemen have had a chance to review it in regards you heard me say the first 50 names on the list. Is there any questions or comments? I think the appropriate action would be just to accept it at this point. MR. VICTORINO: Mr. Chair, first of all, I would like to congratulate Clark on an outstanding job because it took a lot of effort. And I apologize for not being there, and secondly, I do and I move to accept this proposal that Mr. Hashimoto has made so that we can really start moving on on all these meters and start getting this process moving. CHAIR RICE: Mr. Victorino, if we could just take up the Russell Yamane audit report first. MR. VICTORINO: Oh, excuse me. CHAIR RICE: He's done the work, and unless there's questions, I don't think there's anything to do other than just accept it. MR. VICTORINO: Okay, I accept. Move to accept. MR. HASHIMOTO: Second. CHAIR RICE: Move and seconded to accept the auditor's report. Any questions, comments? (No response.) CHAIR RICE: All in favor, say aye. VOICES: Aye. CHAIR RICE: Opposed, say nay. (No response.) CHAIR RICE: Accepted. Now, Mr. Hashimoto has gone through the list and he has listed issues he thinks we should address. Mr. Craddick. MR. CRADDICK: I would just like to say it would probably be in order for Herb Chang who has done a real good job in keeping all this information together. I was fairly well convinced when this started there would be a number of things found other than the subdivisions taken off the list which was done at my direction, not his direction. I think he did a very good job there. CHAIR RICE: Thank you, Mr. Chang. Okay. Clark, you want to say anything on this report? MR. HASHIMOTO: Like David said, I think Herb Chang was the one that really did all the work in getting the list and putting it together. He had a list of multiple listings, lots that had multiple listings. Some of the lots had three applications, so he had to screen all of that out, but other than that, I think David and George and Herb Kogasaka and Herb Chang, we all met and we kind of decided on -- we kind of came up with a list of concerns, and I think that's what we have, the issues to discuss today. I think the sooner the better to resolve these issues. CHAIR RICE: Mr. Nobriga. MR. NOBRIGA: I would also like to express my gratitude to Commissioner Hashimoto for his excellent work. I would like to, if possible, pursue discussion on Clark's report on a number of bases, whereby there is seven concerns. I think we can knock this all off if we go one through seven. Prior to taking up Mr. Hashimoto's -- no, I take that back. Erase. On issue one, lapsed subdivisions have been removed from the list. We have before us a document showing 36 of these have occurred. In section -- Subchapter 2 of our proposed rule covering issuing meters for the upcountry area, Section 16-106-04(b), we have in place a provision that says, "Premises that are not on the priority list and have expended funds in reliance upon official assurances dated before November 2, 1994, or have any preexisting rights associated with the premises entitling the premises to water service shall be out 60 days from the effective date of this rule to pay for or reserve an allocation of service capacity pursuant to subsection 16-8-9(b) of Chapter 8 of the Board's rules. Thereafter such rights shall terminate." I felt in speaking with Ms. Dickson that that section kind of assured her ability to get back on the list. Ms. Dickson now has an interpretation that's telling me that that's not right. CHAIR RICE: Well, you know what, I don't know that -- that's why we're here today. If we decide these 36 people go back on the list, they go back on the list. I don't know we have to cite any rule for it at this point. I think that particular rule dealt with people who have been getting meters while these people have not been getting meters so that we could end that practice. So I think you're right, we go one through seven on the list. The first question is should lapsed subdivisions be removed from the list or not, and that's the question we should address right now. And if we think they should be on the list, then they should be put back on the list. I think it's that easy. Mr. Craddick. MR. CRADDICK: As long as you do that, it would be that easy, but you can't say that these funds expended are the funds for people that are not on the list. These people were on the list. They have a place in the priority list, so you can't use that provision in the rule to put them in this group that are not on the list. So if you decide they're going to be put on the list, they go in the order where they would have gone on the list following the procedures that we have for getting on the list. CHAIR RICE: I know. Don't go there with that expended funds thing, okay. MS. PARSONS: What about the dates that they, the date -- what are we going to make the priority here? Is it going to be to date that they file? CHAIR RICE: Mr. Craddick. MR. CRADDICK: All I can say is we would use the same procedures that we followed for the first 50. CHAIR RICE: Yeah, whatever date that everyone else has used to be on the list, these people would go back in their place. MS. PARSONS: In their place, okay, that makes sense to me. CHAIR RICE: I guess my personal opinion is if you're an individual on the list and you have no requirements to do any subdivision kind of things, you're on the list. But if you had a subdivision and you didn't follow through with it, you're off the list. I don't know how that's -- how we justify that with the individuals. MS. PARSONS: That was part of my question with David before. When you file for a subdivision, you also ask for water meters, but it doesn't have to be simultaneous or separate. It doesn't have to be separate actions, but sometimes it is, so if it's a separate action that they went to the Board of Water Supply in addition to filing a subdivision, that should be a separate action all together. CHAIR RICE: Yeah, all we're giving them, I believe, correct me if I'm wrong, all we're giving them is a chance to go back on the list in the order that they were in, and then when their name comes up, if they haven't done their subdivision stuff and they can't comply with the time frame in the rule, then they're off. They're off, but we have given them the same opportunity we have given everybody else. It's subject to any other rules that we come up with and subject to all the other kinds of things like availability of water and adequate transmission lines. Somebody can be number one on the list and be in the boonies and not get a meter if we don't have any water there, right? MS. PARSONS: I agree. CHAIR RICE: So all we're doing is giving them an opportunity to be on the list and when their name comes up, if they have their act together and they can get whatever is allowed under the rule. Clark. MR. HASHIMOTO: David might have explained this. Some of them have subdivision voided and others application expired. Herb, did you say that was all the same? MR. CHANG: Yeah, the same. CHAIR RICE: If there's some reason that they can't do their subdivision that has nothing to do with water and their name comes up on the list and they can't get their subdivision and they can't get their meter, then they're off. There won't be, you know, you don't go to the back of the line. You're done. We're going to get rid of this list. That's the whole purpose of this. MR. ZAJAC: How much time is there to get the subdivision complete? MR. HIRANAGA: Mr. Chair, what was the answer to Clark Hashimoto's question? I didn't hear the answer. CHAIR RICE: Herb. MR. CHANG: My answer to that question was that whatever reason why Land Use and Codes decided to use expire or use the term null and void, the Water Department didn't really look into that. As long as we got the letter from Land Use and Codes saying it was either voided order expired, we took that as saying our action is to take them off the list and leave them off the list, so we didn't get into the nitty-gritty with LUCA why they did that action. CHAIR RICE: That's not our concern is their ability to get their subdivision. Does that answer your question, Kent? MR. HIRANAGA: Yes. MS. PARSONS: It's right now where the confusion I think stems from, and I know Planning is trying to address this, too, it's where we come up in the process. And maybe we need to come in first before they go through their subdivision requests, because what happens is they'll submit to Planning and then come back to us and find out they can't get water, so they've expended funds to get to that process. That's something that's going to be handled internally, but right now the issue is are these people allowed to come back on the list, and if they can reup their subdivision -- because they probably expired because they couldn't get water period. They just said, well, let it expire. I'm not saying probably, possibly. So let them have an opportunity to reup their subdivision with the County on the -- on the probability that they're on this list and they can't get water depending upon where they are located. CHAIR RICE: Mr. Craddick. MR. CRADDICK: What we can do for administrative purposes, we can use the old subdivision numbers so that we can see that it is in order and just put the new subdivision alongside of it, so that, you know, people can see they are in the proper order on the list. CHAIR RICE: Mike. MR. NOBRIGA: What about the applicants on this list that have expended funds to keep their subdivision active? CHAIR RICE: They're on the list. MR. NOBRIGA: Well, did you have those people that have been expending funds? CHAIR RICE: Versus the people who didn't expend funds? MR. NOBRIGA: Yeah. MS. PARSONS: That's a personal choice. That's a personal choice issue I think. If you want to roll the dice that you're going to get a water meter that it's going to come soon and you can keep your -- you want to pay the money to keep your subdivision going, that's your choice. It's a personal choice. MR. NOBRIGA: But is the funds being expended to the Department of Water Supply? MS. PARSONS: We don't -- well -- MR. CRADDICK: Can I use your example? MS. BEASOM: Sure. MR. CRADDICK: Since she's here, we won't violate any public names, but for whatever reason, they didn't start their subdivision I guess in '94 and they went off island. And the time came along where I guess a letter was submitted to somebody, whether it was their address or Newcomer Lee, it wasn't responded to and eventually it dropped off the list. The problem that Mike I think was talking about are people when they got that letter probably told their engineer, whoever was doing it, yeah, submit another application. MS. BEASOM: Or a letter of extension. MR. CRADDICK: Yeah, requesting an extension, something like that, and they had to pay that person whatever, $5,800 or whatever, something like that, get the letter in and keep their subdivision renewed. And however many times they had to do that would be the money that they probably expended in trying to keep their subdivision alive, and I think that's the issue where these people let it lapse, and that person did expend money. Let's say you come up and you're five short of this person that expended money to remain active on the list and then that person can't get a meter that expended money. I think that's -- is that the issue you're trying to bring up? CHAIR RICE: I know what Mike's point is, right. So does that put that person who spent money here in a different position than those people who let their subdivision lapse or dropped or whatever happened? That's his question. The question -- the other question he asked though you didn't answer was did those people whose subdivisions are active placed any money with us? MR. CRADDICK: No. CHAIR RICE: The answer is no. Ginny. MS. PARSONS: I just look at it as we weren't very clear to the people upcountry what was going on with this water for the last ten years, and I think that it's our fault. If we had have been clearer with the issues on what was going on, maybe these people would have opted to keep their subdivisions going. I don't think it's an issue of whether somebody is spending more money than somebody else. MR. VICTORINO: Mr. Chair. CHAIR RICE: Yes, Mike. MR. VICTORINO: I almost have to disagree with Ms. Parsons on that. If somebody has done their due diligence and kept up with their subdivision fees and kept redoing it, if I was the person, I would be very offended if all these people that had let it lapse, whatever the reason. It's good, justified. If all of the sudden their name goes above me, I would be kind of offended, and I think if you were in that position, you would be exactly the same way. I don't mind putting them back on or whatever if that's what the general feeling of the Board is; however, I think they should fall into an area where those who have done their due diligence and have been maintaining and waiting and kept their subdivisions and whatever else alive by paying whatever they needed to do and taking care of their responsibilities, they shouldn't be penalized in that nature. I think something has to be worked out that way, but that's my feeling on that issue. CHAIR RICE: But the question though is the maintenance of the subdivision. Maintaining it as an active subdivision has nothing to do with water. MR. VICTORINO: I'm not arguing that point. CHAIR RICE: Well, I'm just saying. So someone who has a subdivision application and who intends to keep it active is doing so because they intend to go through with the subdivision and they're just waiting. It has nothing to do with whether water is available or not. They choose to keep it active. MR. VICTORINO: I'm not arguing that fact. But to reward someone who has let is lapse, for those who have done due diligence, I don't know if that's fair. I'm not talking about, you know, just the water issue. CHAIR RICE: Well, they have to go back and do, I mean who knows. They have to go back to the County and reactivate it, so maybe that's easy. Maybe that's not. I don't know. I think there's another bigger issue, Mike, before Mr. Craddick speaks, and that is when we publish the -- when we publish the information about the list, we didn't, unless I'm wrong, it doesn't say if you're on the list as a subdivision, you must keep it active in order to be maintained on the list. It is just you want a water meter, you come in and you put your name on the list, which is why I said anybody who is Joe Blow who puts their name on the list is not going to get knocked off. And the choice of maintaining an active or an inactive subdivision, I don't know why that would differentiate somebody. Kent. MR. HIRANAGA: I believe you brought up a good point, because are there people on the list who are asking for meters who have not applied for a subdivision, and if they have not, are they still on the list? CHAIR RICE: Sure, an individual who wants one meter. MR. HIRANAGA: Right. CHAIR RICE: Sure. MR. HIRANAGA: I believe the Public Works Department takes a very or is trying to not grant these extensions on a rubber stamp basis anymore. You have to show effort occurring during that six months for a six-month extension; therefore, a lot of these applicants probably, if water is their only obstacle, would not be able to demonstrate to Public Works that they're moving forward on their subdivision, and Public Works would not grant the extension. Personally, I feel that the applicants should be placed back on the list, and they have the opportunity at that point when their name comes up to reserve the requested number of meters and pay the fees and to have two six-month extensions, which basically allows them two years to accomplish the subdivision. And maybe we need clarification from Public Works as to how they grant extensions. Are they willing to grant extensions to people who for the only reason they're not receiving final subdivision approval is lack of water meters? CHAIR RICE: Personally, I think they should be put back on the list in whatever order they were originally on, but whatever they can or can't do from Public Works is what happens. If they can't go through, then you don't -- MR. NAKAMURA: I just wanted to clarify something that was asked earlier. So, David, when you were maintaining this list, if someone came to you and said we're thinking about doing a six-lot subdivision and we want our name on the list for six meters, you would have put them on the list without them having gone through the process of getting preliminary subdivision approval, or is everybody that has more than one meter presumably have gone through preliminary subdivision? MR. CRADDICK: To the first part of your question, the answer is yes, people are on the list simply with letters saying they need to do this. The next -- can you repeat the next part of your question there again? MR. NAKAMURA: Well, I guess I think that answers it. So basically, we're -- I think that reinforces what the Chairman is saying, we have the matter of requesting the position on the list which is separate from the initial subdivision. CHAIR RICE: So it could be even worse. It could be that some of these guys could say something about a subdivision and never really applied for it. They're just on the list. And the poor guys who applied for it and let it lapse are off. So somebody who is up here on the list for the first 25 may not even have a subdivision application in, and they may not even be able to comply when the list comes out, so I think that's even more reason to do it. MR. NAKAMURA: I think that's why it's important to treat the list as purely a list. And as people come up, they're given the opportunity to proceed to either take it or not take it. If they don't take it, then they go off the list for whatever reason. It could be subdivision. It could be some other reason. But if they're not in a position to take it, then I think they should go off the list. If they're in a position to proceed with the building permit or a subdivision or whatever, then, you know, they have the opportunity to proceed. CHAIR RICE: Mike. MR. NOBRIGA: The list is basically a chronological listing of applicants which have been denied service due to lack of source adequacy primarily, yeah? CHAIR RICE: Right. MR. NOBRIGA: I think we're getting that confused with this priority issue or who has priority. It's basically a chronological listing. I would support replacing these -- the -- I would support putting the people that have been removed back on the list in the same chronological order that they were originally situated on the list. I believe that those applicants that have continued paying to reactivate their subdivision will only -- will have a faster chance of actually installing meters once meters can be released. MR. HASHIMOTO: Is that a motion? MR. NOBRIGA: I will make a motion at this time. MR. HASHIMOTO: Second. CHAIR RICE: It's been moved and seconded that those people -- MR. NOBRIGA: Thirty-six names. CHAIR RICE: You want to make it absolutely only the 36 names, the subdivisions that have been removed from the list because they're not active, void or expired or whatever to be put placed back on the list in their chronological order, is that your motion? MR. NOBRIGA: My motion specifically -- yes, Mr. Craddick. MR. CRADDICK: I just talked with Herb who prepared this list, and he would prefer it be more general because he's not 100 percent. There might be one or two more. CHAIR RICE: So that the motion should be subdivisions, not this only. MR. NOBRIGA: All applicants, yeah, that were removed from the list be replaced to the list in the chronological order that they had originally appeared. MR. HASHIMOTO: Second. CHAIR RICE: Discussion? MR. HELM: Yeah. Basically, I agree with what Mike is saying there, and the bottom line, the way I look at it, part of the list is going to be determined by the water availability and water source, so, yeah, I agree with what Mike has said. CHAIR RICE: All right. Shall we call for the question? All in favor, say aye. VOICES: Aye. CHAIR RICE: Opposed, say nay. (No response). CHAIR RICE: Motion is carried. MS. PARSONS: Mr. Chair. CHAIR RICE: Was there a nay? MS. PARSONS: No. Mr. Chair, I ask you to make another motion that the list be published on the Internet pursuant to Mr. Mayer's request so people will know where they stand and we have public notice available to the community. MR. CRADDICK: Peter, I think that would be an OIP issue, putting people's personal names. We can put the list on, but I don't know if we can put individuals' names on. CHAIR RICE: But their list is already on the website by tax map key. MS. PARSONS: But it is by tax map key. CHAIR RICE: It is already. MS. PARSONS: Subdivisions, too? CHAIR RICE: Well, it will be amended. Okay, Number 2. Mr. Nobriga. MR. NOBRIGA: There was no second to commissioner -- sorry, sometimes you move fast. CHAIR RICE: That's why you're sitting next to me. Number 2, multiple listings. Clark. MR. HASHIMOTO: I guess Herb came out with multiple listings in total 88 from 40 different properties, so I guess one of the suggestions was that properties listed multiple times on the list will be evaluated according to the amount of source requested. And then subsequent requests needing more water than earlier requests will be offered water in the order the requests -- order of the request on the list. So, you know, it's the same TMK with sometimes three different names requesting for the same lots. CHAIR RICE: Are there two issues here? One is that the same person -- I mean multiple requests for the same TMK, and then you have persons who are requesting for the same person or different TMK's, so they may have three pieces of property. MR. CRADDICK: Same property. MR. HASHIMOTO: Same property. CHAIR RICE: And your suggestion on the same property is evaluated according to the Maui source? MR. VICTORINO: Mr. Chair. CHAIR RICE: Yeah. MR. VICTORINO: Am I correct, Clark, you're saying if I applied, first of all, say I applied as an individual, and then I came back six months later and I applied for a subdivision or farming, which my source now increased the amount of water I was requesting. Is that how you're saying by when I came in, or by the source amount? CHAIR RICE: Go ahead, David. MR. VICTORINO: Just so I get that clarified. MR. CRADDICK: Maybe I should let Herb do this, but my understanding, as Howard pointed out, people could have gotten on the list simply by submitting a letter. So let's say they got on the list once that way, and let's say they actually applied for a subdivision and their name got put on the list again. And then let's say, for example, because I know some are on there three times, let's say they applied for further subdivision of that other subdivision and asked for more meters. And I think those are some of the issues that are out there, so in our discussion, what we said was evaluate these things according to the request. If the first one, they wrote in and said, I need two meters for a family subdivision, okay. That has a date, let's say 1994. The next one, their subdivision actually got submitted. Let's say it's 1996, but it's still a two-lot subdivision. Then we would take the earlier date. If it's for three meters or some other number of meters, then those extra meters would be handled at the time that name came up on the list, not before, and I guess one issue could come up is if the request wasn't clear what it was for in first place. But I would have to defer to Herb if that may be an issue. But I think most of them are relatively clear what they want to do. MR. VICTORINO: So you're going by when the request was made, the date of the request, yeah? MR. CRADDICK: That's I think the suggested language here. CHAIR RICE: So let me clarify this. If somebody has been on the list three times and there are people whose names are on three times, and let's just assume it's not -- they did make a mistake. Let's say they started with a three-lot family subdivision. Then they decided they bought the adjacent property and they wanted five meters and then they later want ten meters just for an example. It's not real that I know. When their name comes up, they don't automatically get ten meters. Or it will depend on what we decide in terms of limiting the meters. What are we saying? It goes by the first request? MR. VICTORINO: The first request. CHAIR RICE: In some cases, they might be right after each other. MR. VICTORINO: Still the first request. CHAIR RICE: So then their name is next, so they get their first three, and then their name is actually next on the list and they get the next. MS. PARSONS: Right, but they should have the opportunity reject or accept the first name, the first position. If they accept the first position, they take the first position. And when their name comes up again, otherwise, their name goes off the list for the first one. They can't say I'm going to wait until I get all three names up and take it. Is that fair? CHAIR RICE: I don't know that it's fair. In some cases, multiple names follow each other. And in the case where they come back and want more meters, if we're thinking about trying to get meters to people, that person becomes a large user all of the sudden. Is it fair that they then before anyone else gets a meter, they may get nine, because they're listed three times in a row, for example? MS. PARSONS: That's got to come in for our decision though. CHAIR RICE: I'm just raising the question. MR. HELM: I guess, Chairman Rice, the question I have if the applicant who has duplication of applying based on duplication of TMK's, not necessarily a name because he changes the name, but the TMK's are the same. He applies for a five-eighths meter and then applies for a three-quarter meter and applies for a one-inch meter. And what we're saying is actually we're going to recognize that he applied first for the five-eighths meter, and that's what we're intending on giving him and not the one-inch? MR. CRADDICK: That's the way I read this suggested language there. CHAIR RICE: We need to be real clear on that because there's a lot of variations because I see people on the list in succession with different TMK's. George. MR. TENGAN: Mr. Chair, there's another scenario. Let's say for one tax key, there might be two meters and subsequently for five meters, or if they say seven meters, and then on the third one would be five meters. I believe the way we were discussing it, the request for the seven meters would take precedence over the five meters, so that let's say you couldn't use it for -- couldn't take the seven meters at the time it was offered to you, you could revert back or go forward to the five meters. CHAIR RICE: That's the question. MR. TENGAN: That's another scenario. CHAIR RICE: What about this to make it simpler? What if we said if you're on there for multiple requests, you have one request? You decide whatever it is, and you get one, that's it. You don't get three. You don't get two. You don't get three. You get one. You decide, if it's for the same piece of property now. If it's for the same piece of property and you've got three requests in, you need to make a decision. You can choose the earliest filing so you don't lose that early filing space, but you only get one request, whether it be for three, five or seven, whatever it is. You say, okay, I'm going to take my early request, and it's for nine. That's it. And if you don't get it, you're off. And if we decide to limit the number, that's all you get. And that's it. I'm talking about for the same TMK, multiple listings for the same TMK. David. MR. CRADDICK: Let me try and get a scenario here. If somebody has an early request for more meters than they made in a subsequent request, I'm not quite certain why they would come back on the earlier request and ask for more. What they've probably done is written in and said I want seven meters and actually tried to subdivide it and probably found out they can only have five lots. So I think other portions of the rule, one meter, one lot covers that they wouldn't be able to still get seven meters on those five lots on the first request just by that one lot, one meter portion of the rule. But if, you know, let's say a subsequent request was for less meters and you put in, let's say a quarter million dollars of improvements, and I don't know if you're saying that you take the request with the lowest amount of water. I don't know if that's what you're saying. CHAIR RICE: All I'm saying in your scenario, if the person, let's say they came in for seven meters, but they found out later they could only get five lots so they reduced it to five, when we asked them you know, you've got to choose one. You go to the earliest priority. Why are they going to choose seven if they can only do five, right? So then they do five. MR. CRADDICK: That's what I'm saying. I think the existing rules cover that. What I heard you saying is that if they come in, let's say they're on the list three times, first the written one, next the family subdivision two lots, and then subsequently, let's say they want to do another two lots and they knew when they did the planning and stuff for that two-lot family subdivision that they're going to have to put in a quarter of a million dollars in improvements. So they said, oh, well, geez, if we're going to spend that much money, I'm going to get these other two meters when my name comes up on the list. And they may have purposefully got on the list for that reason because they're shelling out a big chunk of money. CHAIR RICE: And my proposal is, yes, they would be allowed to go from that four meters, for example, earlier. But we have the other part of the rule yet to go. Limiting meters we haven't talked about yet, so, right? MR. CRADDICK: I don't think you're understanding what I'm saying there. What I'm saying is let's say the person consciously had stepping up requests for water. CHAIR RICE: Right. MR. CRADDICK: And they -- the reason why they stepped up the request is because they found out how much it's going to cost them to make improvements to get their let's say two meters. CHAIR RICE: I understand. MR. CRADDICK: Then they will have spent that money in reliance of being on the list where they are for the subsequent requests for more meters, so to arbitrarily make them pick one, I'll defer to corp counsel, but I'm going to guess that's going to be a substantial change in the rule on something that people would want to comment on. CHAIR RICE: What you're saying is someone, let's say they've spent a quarter million dollars already, and they haven't gotten any meters? MR. CRADDICK: No, no, they're on the list for some number of meters. CHAIR RICE: And they realize in order to get two meters, they have to spend, for example, a quarter of a million dollars, so they might as well get four, and they later come in for two more, is that what you're saying? MR. CRADDICK: So on the first request, they've got to put in the quarter of a million dollars of improvements. And they get the two meters, and they sit and wait until their name comes up again. And what I'm telling you is if you do that, I would expect that's going to be a change that is going to probably require this going back up to public hearing again. CHAIR RICE: That's not what I'm saying. I'm saying, just to make sure we understand each other, if they've got a request in for two meters and go to six because they know they've got to spend a quarter of a million bucks, they decide that the request for six goes into the first position is what I'm saying. MS. PARSONS: Peter. CHAIR RICE: Right here first. MS. PARSONS: I think it might give an unfair advantage to people with multiple listings because there may be folks that are on this list ahead of them that could do the same thing and really could use four meters instead of two and they didn't -- I think it's where your request falls, give them the right to say, no, I don't want the two meters. I'll wait until my four meters come up. But don't give them an earlier advantage to getting something. CHAIR RICE: Except we haven't made a decision on limiting meters. MS. PARSONS: I'm just saying I don't think their request should be just because they have a letter in for one meter in '93 and they come back in '94 and they want four, that they should jump up to the next position. It's an unfair advantage. You're going to knock those guys out in the middle. CHAIR RICE: If we give them four. MS. PARSONS: If we did, yeah. CHAIR RICE: Mike is next. MR. NOBRIGA: The question is what is the deciding factor in determining -- in determining what is actually listed? Is it a tax map key that we are focused on as the determining factor, or is it the applicant, the actual person, the name which is the deciding factor of the determination of the position on the list? I feel that the list is people. It's flesh and blood. It's not the tax map key. CHAIR RICE: But the tax map key just represents the property. The individual can be on there five times, for example, for five different pieces of property in whatever order. MR. NOBRIGA: The tax map key could change already, so that's one different body. CHAIR RICE: The TMK can change? MR. HASHIMOTO: It's all the same. MR. CRADDICK: The list is on there according to TMK. Because, you know, let's say a person didn't even live upcountry and they submitted a letter saying I want X number of meters and went out and tried to buy a property as they saw the Board coming up to get meters I mean. There's nobody on the list that didn't have some sort of a land position. CHAIR RICE: Yeah, that's exactly why -- MR. CRADDICK: So these requests definitely run with the land, not with the person. I mean a person couldn't be on the list for one property, sell it off and go somewhere else and say, hey, I had a request for two meters on this other property, but now I want it over here and this other guy, you know, was cut loose. CHAIR RICE: Clark. MR. HASHIMOTO: I don't know if it would be legal. Can we issue if you have multiple requests on the same TMK, issue the meters on the first request only, and if they have a second and a third request, will the same TMK be on it after the whole list has been honored? In other words, you know, they've got the same request or a different request for the same TMK three times, but we'll honor the first request and any subsequent requests will be honored after, in all fairness, after everybody else has been issued their meter. MS. PARSONS: I think we've got to determine whether we want to go by date. And what's the most important thing here is the TMK. Secondly, how do they get positioning? And it's by the date of their request. CHAIR RICE: That's already set. MS. PARSONS: So we can't move their second request down to the end of the list because it's dated. MR. HASHIMOTO: But it's the same TMK. MS. PARSONS: It doesn't matter. They can reject. If they reject the first one, they wait until their second request comes up. CHAIR RICE: If you take that argument, then you wouldn't limit meters then. MS. PARSONS: Why? CHAIR RICE: All you're doing by -- all Clark is saying is he's limiting meters to multiple applications for the same TMK. MS. PARSONS: Let's stay on the subject though. CHAIR RICE: That's what the subject is. MS. PARSONS: We're not there limiting meters yet. That's their determination call, and we make our determination if we're going to limit the number of meters. So if they have a request in for two, four and six and we're only going to give two out, then they're going to have the right to take the first one, and then they take the first one. Then the other ones fall by the wayside or stay on the list until we up the number or whatever. But I think we've got to determine first what the priority is or put these guys back on the list by the dates they came in. After we finish determining that, we determine how many meters we're going to issue. And then that's their determination if they want to stay on or get off. CHAIR RICE: I don't disagree with that, but I think that's what he said. MS. PARSONS: He said go to the end of the list I think. That's what I kind of understood. They go to the end of the list, and I don't think you can review the end of the list. You leave them where they're in there by their dates. CHAIR RICE: Howard. MR. NAKAMURA: I think we can come up with all kind of hypothetical situations. It could get complicated. We could have undivided interest, two people with the same tax keys applying for meters. And I think the simple solution that was mentioned when we started, which is that you basically go down the list and when the person's name comes up, you give them the opportunity to get his meters and he either takes it or he doesn't. If he chooses to wait until his name comes up a second time because he wants more meters, so be it. You just work your way down the list. The guy takes it or he doesn't take it. I think that's the easiest way to handle it. MR. VICTORINO: I move to accept Mr. Nakamura's conclusion. MS. PARSONS: I second. MR. VICTORINO: That's the best way I can figure it. It's clear-cut. When your name comes up, Peter Rice, you want it? Now. Done. Mike Nobriga next. We move it right along, and we keep moving in that chronological order instead of trying to move you up and bring you -- how you got this. I think if we keep it simple would probably be the safest way. MS. PARSONS: Yeah. CHAIR RICE: It's been moved and seconded. If I understand the motion correctly, that you just stay on the list where your name is no matter whether you have multiple names, the same TMK or whatever, right? MR. VICTORINO: Exactly. CHAIR RICE: Okay. Any discussion? All in favor, say aye. VOICES: Aye. CHAIR RICE: Opposed, say nay. (No response.) CHAIR RICE: Motion is carried. MR. VICTORINO: Thank you, Mr. Nakamura. CHAIR RICE: Inadequate distribution pipelines. MR. HASHIMOTO: I guess what Mr. Craddick has been saying is that should people on the list be notified that they will not be able to get water unless the distribution lines are upgraded. I guess some of the staff thought that this is covered under the current rules, but a lot of people, they're up on the list, but if they don't spend the $250,000 to upgrade, they're not going to get their water meter, so maybe we should notify these people or I don't know how it's going to be done. CHAIR RICE: Yeah, Kent. MR. HIRANAGA: I believe that situation is an evolving situation because someone above them may put improvements which may bring adequacy to their lot, so I think that question shouldn't be answered until that point in time when he's being offered the meters because someone could be putting a subdivision in now. I would hate to see him forfeit his position until the question is asked to him do you want your meters. CHAIR RICE: And so in terms of people who are on the end of the list, that would be good. But if you were in the beginning of the list let's say and you didn't have adequate distribution and couldn't get a meter and you don't apply within 30 days, you're off the list. Now you have no chance, and then let's say two years later, somebody else puts your -- MR. HIRANAGA: They had ten years to bring the system to adequacy if they wanted to. CHAIR RICE: Ginny. MS. PARSONS: Well, wasn't that more of a Planning determination? I mean we're talking right now about lines going in to make -- that on the list now in the world that we're in in this scheme right now, we're talking about or not there's sufficient lines to provide for them. Now, they can stay on the list if they can't use it. We're just going down the list, right? CHAIR RICE: No, when we're done with this list, when we're done with this rule, there's no list. This list thing should never have started in the first place in my opinion. We're going to be done with the list. MS. PARSONS: It's still a Planning determination not for us, not in our scheme. And if they could show us something else is being developed in the area in the near future, then we could give them an extension of time. CHAIR RICE: I don't think so. MR. CRADDICK: Because this list is going to be available to everybody, anybody high up in the list can look. If there's other people further down that may have to make the same improvements that they do, nothing prevents them getting together with that person and saying, hey, let's share in this. I mean the information is out there to everybody, so administratively we could tell people without making a rule change that lines may be inadequate. Do some early planning on your part, so when your name does come up, if there are people in the near vicinity that could work with you, start working with them now. Don't wait until the 11th hour and you've got 60 days to come up with an agreement with somebody. CHAIR RICE: Kent. MR. HIRANAGA: If the system is inadequate to a specific lot, they can still go ahead and reserve meters in the anticipation that based on their efforts, it will bring the system to adequacy in those two years. It's a gamble, but they can say it's not adequate, but I'm going to go ahead and pay the fees because I believe in two years it will be adequate. MR. CRADDICK: Well, I suppose they could, yeah. MR. HIRANAGA: You know, my belief is nothing is certain in this world, so when your time comes up, you make your decision am I going to pay the fees because I feel I can bring adequacy there. Joint ventures or whatever, joint property owners, but the two years elapses and you lose your fee. CHAIR RICE: So it just sounds like we want to make a general notice that you need to be aware of the adequacy of the distribution lines in your particular area; is that right? MR. VICTORINO: Yes. MR. CRADDICK: Actually, Ed points out something in the new rules, in the meter fees, I think that was the three years now in the new rules, so it's more than two years. MR. KUSHI: Subject to the Board's approval. MR. CRADDICK: The Board has already approved that one. MR. KUSHI: No, if they want to go more than two years. CHAIR RICE: It's an option if they want to come and ask for an extra year. Mr. Nobriga. MR. NOBRIGA: On the subject of notification of adequacy of the lines, I think it is the Department's purview to notify everybody whether they're upcountry or some place else that the line is inadequate. And being that we just went to CIP and we had a request for the Planning Department to tell us where they're proposing to put pipes, that should also be public knowledge so that people that are waiting can see three, five, six years down the road, if the Department is going to have one CIP project to approve the area. That's all. CHAIR RICE: Kent. MR. HIRANAGA: I feel the responsibility of determining the likelihood of having adequacy for the meters should be placed upon the applicant, not upon the Department. They should meet with the Department at that point to determine what is the likelihood. Is it adequate? If not, what is the likelihood when it will be adequate? You're putting too much of a burden 1on the Department. CHAIR RICE: Mr. Craddick, probably a live question here. Looking at this list, how many just ballpark have adequacy problems? MR. CRA