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condition. And that is direct the developer to work with the State, in this case the Division of <br />Land Management, to deal with a really serious flood control problem that’s in large part caused <br />by really poor grading on the State lands adjacent to this property. And so it is manageable. <br />When it gets very wet in Puako what the first thing that happens is that the road adjacent to this <br />property fills up with a couple feet of water -- and there are several hundred acres in the back in <br />the State lands that are dry or just wet from rainfall but not runoff -- and in large part because of <br />poor drainage systems on those State lands. And the other issue, I might also mention that when <br />that area floods, it’s more than just an inconvenience cause that is our only effective escape route <br />in the event of a hurricane or a tidal wave. <br />The other issue I want to mention is fire. And I think they passed around a photograph, an aerial <br />photograph, which I shot a couple days after a fire which occurred in Puako on July 1. I saw a <br />couple of people holding the acetate sheet. If you could look at that, you’ll see that there is an <br />area that has just been burned right adjacent to the road. That’s a 25-acre fire that occurred on <br />st <br />July 1. It quite possibly was set by an arsonist, but we don’t know that for sure. We were very <br />lucky that there happened to be an off-duty fireman very close to it right when it started and he <br />was able to call in a helicopter within 10 minutes. But if you’ll look at it, it burned right up to <br />the road; and the property immediately across the road is this project. And so we are very <br />concerned about fire in Puako. I’ve worked with the State, again, the Division of Land <br />Management, to enhance our firebreaks to try and find ways to deal with these problems. But, <br />frankly, I think the developer might have a hard time selling lots knowing that the forest within <br />30 feet of the edge of the lot is so vulnerable to fire. So we again ask the developer to work with <br />the Division of Land Management on a firebreak. If you’ll look at that picture you’ll see that <br />they put a firebreak in immediately after the fire started. But we would like to see that along the <br />edge of Puako Beach Drive so that the makai properties are not vulnerable. <br />So with that, I’ll take any questions you might have of me. <br />GRAHAM: Thank you, Mr. Shallenberger. Do any of the Commissioners have <br />questions? Let me ask you one if I might. I actually used to live at 124 Puako back when that <br />was a little flat house on the slab. On the coqui frog issue, I know in Kohala we’ve had a coqui <br />frog issue that the community has really come forth and dealt with very well, as I presume you <br />guys have. Is there a group there in Puako which sort of has the equipment, whatever, to deal <br />with any coqui frog infestations? <br />SHALLENBERGER: Yes. We do have a group in Puako and we got a County grant that <br />allowed us to buy some equipment and be better prepared for it. But it’s really about every <br />month, month and a half, somebody reports that we go out and get it. And so far we’ve been <br />successful. But we also deal with the landscapers working on new projects, individual houses in <br />Puako, to try and get them to deal with the problem. But here again the best technique on that <br />side of the island in my opinion is to negotiate agreements with landscapers that require them to <br />deal with the problem if they bring it in. <br />GRAHAM: Sure I was thinking, and I’ll ask Mr. Fuke this in a little bit, that maybe <br />one condition we could put in is that if there were coqui frogs within the subdivision that it <br />would be required of the homeowners that they allow your group to come in and deal with the <br />coqui frog. Because I know in Kohala that’s been the only issue as you can find a recalcitrant <br />EXHIBIT B <br />10 <br /> <br />