REP AWESC 006 10/16/2012 2010-2012

Home

AWESC-6 Page 2 October 16, 2012 • department is trying to work with both the community and the water haulers to find a compromise that both sides can agree on. Ms. Aton also explained that board meetings were held in the community during both the design phase and the construction phase. A meeting was held about once every three to four months or once every six months depending on when they received new updates. The public also had an opportunity to submit testimony at the board meetings. Mr. Pilago explained that this resolution is not going to fix anything; it is only requesting the Auditor to conduct an audit. Mr. Antonio replied that they have no problem with the resolution or working with the Legislative Auditor's Office. Ms. Ford wanted to know what the requirements are to become a legitimate commercial water hauler. She asked Mr. Antonio if a PUC (Public Utilities Commission) license is needed to haul water. Mr. Antonio was not sure what the process is to get a PUC license. Ms. Ford asked one of the testifiers, Ivar Kaipo, Owner/Operator of Lehua Water Delivery Service, to come forward and explain what the process is to become a commercial water hauler. Mr. Kaipo confirmed that the truck has to be a licensed vehicle and the driver needs a commercial driver's license (CDL) and a State commercial water hauler license. He referred to his written testimony (Communication No. 870.1) that specifies the requirements. Ms. Ford also wanted to know the well's sodium content, but Mr. Antonio was not able to provide an answer at that time. Shortly after, Ms. Aton informed the Council that the information is available on the department's website (www.hawaiidws.org). Mr. Yagong asked Ryan Kanakaole, Deputy Corporation Counsel, to come forward to the table. Mr. Yagong wanted to know if the County can legally follow the Legislative Auditor's recommendations if the water haulers already have a contract in place. He is concerned that there might be a breach of contract. Mr. Yagong asked if the contracts are legally binding and in perpetuity. Mr. Kanakaole replied that the contracts have been executed, so they are binding. Modifications can be made, but that would require an agreement from all parties. Mr. Yagong stated that the Council needs to know the scope of what it can or cannot legally do before asking the Legislative Auditor to conduct a performance audit. He does not want to mislead the public into having any false expectations. Mr. Antonio explained that when the account holders for the standpipes signed up for their service, they signed a Letter of Conditions. One of the conditions was that the Department of Water Supply may terminate water service at any time; therefore, they do have the legal right to take away the service. Mr. Yagong asked Mr. Kanakaole if he concurred with that statement, but he did not have a copy of the contract, so he could not confirm the accuracy of Mr. Antonio's statement. Ms. Aton added that the department has not yet determined what the next step will be. They are proposing possible changes and have opened up discussions in order to receive input from all parties. Mr. Yagong asked about the next community meeting. Mr. Antonio replied that it is scheduled for Tuesday, October 23, 2012, at 10:00 a.m. at their operations baseyard on Leilani Street. Mr. Yagong hopes that this can be resolved in-house as the Council does not have authority over the Water Board; and the Water Board is the body that would make the rule changes, not the Council. Mr. Pilago asked who signs the contracts for the Department of Water supply. Mr. Antonio acknowledged that he does as well as the Chair of the Water Board. Mr. Pilago then called Colleen Schrandt, Legislative Auditor, to the table. Mr. Pilago asked Ms. Schrandt if she knew the scope of the audit, the start and end date, the estimated cost, and the follow-up date to the