HomeMy WebLinkAbout2024-03-04 Letter AOAO of Colony 1 at Sea Mountain, Anthony Gand (PL-CCH-2024-022) Mitchell D. Roth eSrtYJOF H,�* Zendo Kern
Mayorhw. Director
Deanna S. Sako Jeffrey W. Darrow
Managing Director n ;
+f Deputy Director
�TE•OF.Hre�
West Hawaii Office East Hawaii Office
74-5044 Ane Keohokalole Hwy • • 101 Pauahi Street,Suite 3
Kailua-Kona,Hawaii 96740 County of Hawaii Hilo,Hawaii 96720
Phone(808)323-4770 Phone(808)961-8288
Fax(808)327-3563 PLANNING DEPARTMENT Fax(808)961-8742
March 04, 2024
Association of Apartment Owners of Colony 1 at Sea Mountain
c/o Anthony Gand, Pacifica Realty Management, Inc.
75-1029 Henry St., Ste. 202
Kailua-Kona, HI 96740-1666
VIA EMAIL
Dear Mr. Gand:
Special Management Area Use Permit Application (PL-SMA-2023-000046)
Applicant: Black Sand Beach LLC
Request: Development of a Residential and Commercial Community Consisting of
Approximately 225 Residential and Short Stay Units,Village and Wellness Center,
Retail Uses,Rehabilitation of Golf Courses, and Dedication of a Portion of
Coastline as a Conservation Area
Subject: Acknowledge Receipt of Petition for Standing in a Contested Case Hearing
(PL-CCH-2024-000022)
TMKs: (3) 9-5-019:011, 015, 024, 026, 030, 031, 033, 035; 9-6-001:001-003, 006, 011-013;
9-6-002:008, 037, 038, 041, and 053, Ka`u, Hawaii
This is to acknowledge receipt of your Petition for Standing in a Contested Case Hearing filed in the
EPIC system on Thursday, February 29, 2024, with the petition fee paid on that date. Your petition will
be forwarded to the Windward Planning Commission for its consideration at its meeting scheduled for
Thursday,March 7,2024,at the Hawaii County Council Chambers at 25 Aupuni Street,Hilo,HI
96720, starting at 9:00 a.m. Your presence will be required at this hearing to respond to questions that
the Planning Commission may have regarding the Petition for Standing.
Please refer to Planning Commission Rules of Practice and Procedure, Rule 4 (Contested Case Hearing
Procedure) for information about the contested case process. The rules can be found on the Planning
Department website at: https://www.planning.hawaiicounly.gov/about-us/boards-committees/planning-
commission-applications
www.cohplanningdept.com Hawai`i County is an Equal Opportunity Provider and Employer plannin co.hawaii.hi.us
Association of Apartment Owners of Colony 1 at Sea Mountain
c/o Anthony Gand, Pacifica Realty Management, Inc.
March 04, 2024
Page 2
If you have any questions, please feel free to contact Maija Jackson of this office via email at
maija.iacksonghawaiicoun ov or(808) 961-8159.
Sincerely,
Mara 7ackro;l far-
Maija Jackson for(Mar 4,202�45 HST)
ZENDO KERN
Planning Director
AJR:mads
\\COHO1\planning\publicAwpwin60\PC\letters\2024\LColonyl_SMA23-46-AckPetContestedCase.docx
cc via email w/copy of petition: Windward Planning Commission
Suzanna L. Tiapula, Esq., Deputy Corporation Counsel
Jean Campbell, Esq., Deputy Corporation Counsel
Daryn Arai, Land Use Planning Consultant
PETITION FOR STANDING IN A CONTESTED CASE HEARING
(Page 1 of 2)
NAME: ow'-W6 of ccioviy 1 at Sea Mvvn+G;y�
ADDRESS: el0 Pcic;Fc(cl Rzul{y iAana�e,hent, inc.
lozei NEuitY SC STE 7 C)Z
K POLVA ICONA, M `t61-A0-166b
PHONE NO.:
APPLICANT/
DOCKET NO.: PL—SMA -- zoz3 -- OCOOyb
A. Is your interest in this matter clearly distinguishable from that of the general public?
Yes X No
If the answer is "yes", please explain:
colcny 1 rCpct5zni5 c� m:xaj uSQ, 16 nd;u;O�nl pryperlCaS VA);CN Gre-
C cmple A-01 enc:r6e(A by atP1;Cant'S hold;nss. FIease sec elttCC-IA d itIFzf and S0Cyvflinj
rlcc.�m e.r�t�Ztcv.1 � � rF1{achw`eniS }o5 a1�,
If the answer is "no", please explain how the proposed action will nevertheless cause you
actual or threatened injury:
B. Are you a government agency whose jurisdiction includes the land involved in the
subject request?
Yes No
If the answer is "yes", please explain the nature of the agency's jurisdiction:
C. Do you lawfully reside on or have some property interest in the land involved in the
subject request?
Yes No X
If the answer is "yes", please explain:
Appendix A
PETITION FOR STANDING IN A CONTESTED CASE HEARING
(Page 2 of 2)
D. Are you a person or persons descended from native Hawaiians who inhabited the
Hawaiian Islands prior to 1778, who practiced those rights which were customarily and
traditionally exercised for subsistence, cultural, or religious purposes?
Yes No X
If the answer is "yes", please submit any genealogical evidence and historical evidence
showing the exercise of those rights to support your statement:
L
Petitioner's Signature
An'4, v j C-100A, Mcmck3ii j Asc lt
STATE OF HAWAII )
SS.
COUNTY OF HAWAII )
On this 1-,6 day of r,m uckrj , 20 Zy, before me personally appeared
Anth,;Ay (_IancA , to me known to be the person described in and who executed
the foregoing instrument, and acknowledged that he executed the same as his free act and deed.
`��r�uunmiNip, ,
r'' STq T •'••, � "•,
NypAq��� Notary Public, State of Hawaii
U T y .-
s 8���•' c'p� o` My commission expires:
'nnurrrr+��
Appendix A
February 28, 2024
The Board of Directors
Colony I AOAO
%Pacifica Realty Management Inc.
75-1029 Henry St., Suite 202
Kailua Kona, HI 96740
Windward Planning Commission
25 Aupuni St.
Hilo, HI 96720
Aloha Honorable Commission Members!
The Board of Directors of Colony I at Punalu'u would like to thank you for your focused attention to the documents and
testimony we are submitting with our Petition for Standing in a Contested Case Hearing. Colony I represents a mixed used
development of 76 individual properties which are completely encircled by the applicant's holdings.
Colony I is uniquely affected by the proposed development in many ways,but the primary concerns we wish to bring
forward are related to the dilapidated state of the Public Water System, Fire Suppression System, and Wastewater System.
We are submitting numerous documents to support our assessment of these systems.
It should be noted that there is no current competent EA or EIS to guide the Commission in its decision-making process.
The latest"Draft EIS"was performed in 2006 and it is unclear if it was ever approved. Even if the 2006 document were
approved,it could not adequately address the current situation and take into account the tragedy that occurred in Lahaina.
There are literally fire hydrants laying on the ground in disrepair.
In addition, a current EA and EIS may find the Wastewater System and treatment plant currently in use to be so far below
current standards as to be obsolete.
We look forward to sharing our concerns with the Commission and genuinely appreciate your service to our community.
Many thanks,
The Board of Directors
Colony I AOAO
November 18, 2022
Board of Directors
Colony One AOAO
Pacifica Realty Management Inc.
75-1029 Henry St., Suite 202
Kailua Kona, Hi. 96740
Punaluu Water Sanitation
4101 Dublin Blvd., Ste F238
Dublin, Ca. 94568
Aloha!
On October 17, 2022 the Colony One Board of Directors decided that a written request for
information should be made of the management of Punalu'u Water Sanitation LLC (PWS). The
Board has significant concerns regarding numerous aspects of the potable water supply system
and wastewater system which provide service to Colony One by PWS, and is asking for a
detailed response within 30 days. We have a duty to our Owners to ensure PWS is following
through on their obligation to provide safe drinking water service and wastewater treatment
services to Colony One. Without either service, all Owners at Colony One will be directly
impacted and a prolonged service interruption could be catastrophic.
The Board of Colony One appreciates that you have allowed one of our Board members to have
direct contact with your Operators. This has helped the Board to be informed about day to day
operations and maintenance. However, we have concerns that are better addressed by PWS
management. We request specific answers, along with a timeline of any proposed action.
PWS made certain assertions and claims to the Public Utilities Commission (PUC) in their
application and follow up documentation to acquire the water systems (drinking and
wastewater). One of those assertions was that PWS has the capacity to safely manage,
operate, and maintain both systems in accordance with all laws and regulations governing
public drinking water systems and wastewater systems.
Specific questions are as follows:
1. Has PWS developed a comprehensive Emergency Response Plan (ERP)? Such a plan
should include scenarios for power outage, natural disasters, and man made disasters as well
as include contact lists of County, State, and Federal agencies and specific contact persons at
those agencies. It should also include other emergency contacts for materials, equipment,
supplies, and contractors.
2. Has PWS secured a generator or generators to provide backup power for the potable water
well, wastewater pumping station, and wastewater treatment facility? If so, has a working
electrical connection and switch been installed and fueling needs considered?
3. Has PWS (or a contractor) surveyed the condition of the primary well (potable) and its
appurtenances and created a list of spare parts to be inventoried?
4. Has PWS (or a contractor) surveyed the condition of the secondary well (inoperative and
non-potable) to ascertain the possibility of it being certified for potable use and acting as a
backup in the event the primary well fails?
5. Has PWS performed a lost water audit on the potable water system (pre treatment and in the
distribution system)?
6. Has PWS investigated the leaks in the water storage tank along with their specific cause(s)
and repair needs?
7. Has PWS developed a repair or replacement plan for the fire hydrants and determined if
adequate supply and flow rates are available for each hydrant? Have inoperative or damaged
hydrants been clearly marked as such and the Fire Department notified?
8. Has PWS developed a plan to repair or replace critical parts at the waste water pumping
station?
9. Has PWS performed a lost wastewater audit on the wastewater system?
10. Has PWS (or a contractor) surveyed and assessed the wastewater treatment plant for
reliability and effectiveness?
11. Has PWS identified and addressed all areas of concern outlined by the reports on both
systems generated by Aqua Engineers and submitted to the PUC?
12. Is PWS currently in compliance with all State and Federal testing requirements?
13. Is PWS currently in compliance with all reporting requirements?
Thank you for your valuable time and prompt attention to this matter.
Mahalo nui Ioa,
Board of Directors
Colony One AOAO
cc: Stakeholders
Kulana Homeowners
County of Hawaii Parks and Recreation
County of Hawaii Fire Department
Charles W Dahlberg Trust
Sidney Strange
Joseph K. Bangay
4101 Dublin Boulevard, Suite F 238
Dublin, California 94568
March 17, 2023
Board of Directors
Colony One AOAO
c/o Pacifica Realty Management Inc.
75-1029 Henry Street, Suite 202
Kailua Kona, Hawaii 96740
Dear Colony One Board of Directors,
We appreciate your letter requesting information regarding the potable water supply system
and wastewater system. Please be assured that PWS concurs with your concern for safe drinking
water and wastewater treatment services and in response to the questions set forth in the
letter, please find the enclosed attachment.
We look forward to our continued working relationship with Jeff Silva, your designated AOAO
Board member. Thank you.
Sincerely yours,
Nermom, G2IXDVL,
Norman Quon for Eva Liu, PWS President
PWSRESPONSE: COLONY ONE AOAO — REQUEST FOR INFORMATION
1. Has PWS developed a comprehensive Emergency Response Plan (ERP)? Such a plan should include
scenarios for power outage, natural disasters, and man made disasters as well as include contact
lists of County, State, and Federal agencies and specific contact persons at those agencies. It
should also include other emergency contacts for materials, equipment, supplies, and contractors.
• PWS is currently developing an ERP to include all above scenarios and contact list.
2. Has PWS secured a generator or generators to provide backup power for the potable water well,
wastewater pumping station, and wastewater treatment facility? If so, has a working electrical
connection and switch been installed and fueling needs considered?
• PWS is in the process of having a power asessment done to determine current power
generation needs for portable emergency generators for the potable water well,
wastewater pump station, and wastewater treatment plant. Upon completion of the
assessment, appropriate sizing of the generators and electrical connections/outlets can be
determined.
3. Has PWS(or a contractor) surveyed the condition of the primary well (potable) and its
appurtenances and created a list of spare parts to be inventoried?
• Big Island Mechanical has performed an assessment of the Potable Water Well A (primary
well)and is in the process of following up on quotes for replacing some of the critical
equipment.A spare chlorination pump and head is on order. Consumable parts for the
chlorination system are stocked.
4. Has PWS(or a contractor) surveyed the condition of the secondary well (inoperative and non-
potable)to ascertain the possibility of it being certified for potable use and acting as a backup in
the event the primary well fails?
• The condition of the Potable Well a (secondary well)has been visually inspected and shaft
rotation checked. The shaft is seized due to possible well casing issues. For a complete
inspection the motor,pump and other associated assemblies will need to be removed for
inspection by a third-party contractor. Will be soliciting an assessment by Big Island
Mechanical.
5. Has PWS performed a lost water audit on the potable water system (pretreatment and in the
distribution system)?
• A visual check of the potable water system has been done. See Question#6 for further
explanation.
• A comprehensive lost water audit will be done for the pretreatment and distribution system
when the system is upgraded for the proposed Phase I development.
1IPage
PWS RESPONSE: COLONY ONE AOAO — REQUEST FOR INFORMATION
6. Has PWS investigated the leaks in the water storage tank along with their specific cause(s) and
repair needs?
• A visual check for leaks of the water storage tank has been performed. To perform a
thorough inspection, the reservoir will need to be taken off-line.
7. Has PWS developed a repair or replacement plan for the fire hydrants and determined if adequate
supply and flow rates are available for each hydrant? Have inoperative or damaged hydrants been
clearly marked as such and the Fire Department notified?
• Yes, PWS is in the process of repairing and/or replacing the fire hydrants and marking
them.
8. Has PWS developed a plan to repair or replace critical parts at the wastewater pumping station?
• The replacement and repair plan of the wastewater pump station's needed parts is in place
now.
• Most recently a new submersible pump has been installed in the wet well of the wastewater
pump station. The station's transformer has been repaired and checked by HELCO.
• A comprehensive plan will follow with the Phase I infrastructure development upgrade.
9. Has PWS performed a lost wastewater audit on the wastewater system?
• A comprehensive audit of the wastewater system will be performed at the Phase I
infrastructure development upgrade.
10. Has PWS (or a contractor) surveyed and assessed the wastewater treatment plant for reliability
and effectiveness?
• Yes, a contractor has surveyed and assessed the wastewater treatment plant for reliability
and effectiveness.
11. Has PWS identified and addressed all areas of concern outlined by the reports on both systems
generated by Aqua Engineers and submitted to the PUC?
• PWS has identified and is addressing all areas of the concerns outlined in the PUC report
submitted by Aqua Engineers.
12. Is PWS currently in compliance with all State and Federal testing requirements?
• PWS is in compliance with all State and Federal testing requirements.
• The AOAO and all homeowners get a Consumer Confidence Report for drinking water
analysis that meets Federal regulations.
2 1 P a g e
PWS RESPONSE: COLONY ONE AOAO - REQUEST FOR INFORMATION
13. Is PWS currently in compliance with all reporting requirements?
• PWS is in compliance with all reporting requirements.
• The AOAO and all homeowners get a Consumer Confidence Report for drinking water
analysis that meets Federal regulations.
3 1 P a g e
YamamotwOpCaliboso
A LIMITED LIABILITY LAW COMPANY
July 13, 2020
Via E-File
The Honorable Public Utilities Commission
of the State of Hawaii
Kekuanao'a Building, First Floor
465 South King Street
Honolulu, Hawaii 96813
Re: Docket No. 2018-0408: C & A Punalu'u, LLC's Submission of Its' Plant
Capacity Analysis and Its' Financial Plan Pursuant to Decision and Order No.
36473, filed August 15, 2019
Dear Commissioners:
In accordance with Order No. 36473,' C&A Punalu'u, LLC ("Buyer") respectfully submits
to the State of Hawaii Public Utilities Commission ("Commission") its Plant Capacity
Analysis, attached as Exhibit A, and its Financial Plan, attached as Exhibit B.
The Commission ordered that the Buyer's Plant Capacity Analysis and Financial Plan be
filed with the Commission within sixty (60) calendar days from the closing date of the sale
and transfer of 100% of the membership interests in Punalu'u Water and Sanitation, LLC,
from S M Investment Partners to Buyer.2
As noted in the letter filed with the Commission on May 20, 2020, the closing of the above-
referenced transaction occurred on May 13, 2020.3 Sixty calendar days from May 13,
2020 is July 12, 2020, which falls on a Sunday. Accordingly, pursuant to Hawaii
Administrative Rules § 16-601-22, when a deadline falls on a weekend or holiday, the
time period runs until the end of the next day that is not a weekend or holiday. Therefore,
the Plant Capacity Analysis and Financial Plan are due on or before Monday, July 13,
2020, and are timely filed.
Buyer notes that its Financial Plan and Plant Capacity Analysis are based on information
available at this time. Given that the Buyer only acquired the utility less than two months
ago and in light of the current COVID-19 pandemic, travel restrictions, and quarantine
requirements, Buyer reserves the right to update this information should new or additional
information become available.
See Order No. 36473, issued on August 15, 2019 at 67-68.
2 Order No_ 36473 at 67.
3 See Docket No. 2018-0408, Letter From: W. Yamamoto To: Commission Re: Docket No. 2018-0408 -
Applicants' Written Notice of Change in Ownership of Punalu'u Water and Sanitation, LLC Pursuant to
Decision and Order No. 36473, filed May 20, 2020.
1100 Alakea Street I suite 3100 1 Honolulu, Hawaii 96813 I Phone (808) 540-4500 1 Fax (808) 540-4530
ww_w__.ychawall.com
The Honorable Public Utilities Commission
of the State of Hawaii
July 13, 2020
Page 2 of 2
Sincerely yours,
141 r "E'
Wil K. Yamamoto
for
YAMAMOTO CALIBOSO
A Limited Liability Law Company
Enclosure(s)
cc: Docket No. 2018-0408 Certificate of Service List
(4839-3542-8674)
Punalu'u Water & Wastewater
Operations & Infrastructure
July 1, 2020
Table of Contents
1. Introduction
2. Description of Potable Water System Operation
3. Description of Potable Water System Infrastructure
4. Potable Water System Capacity
5. Description of Wastewater System Operation
6. Description of Wastewater System Infrastructure
7. Wastewater System Capacity
8. Equipment Listing, Remaining Useful life and Replacement Cost Spreadsheet
9. Capital Improvements for years 1 -3
Exhibit A
Page 1 of 12
1. Introduction
On September 1, 1999 Aqua Engineers Inc. signed its first contract with Punalu'u Water and
Sanitation Corporation to provide operation and maintenance services for their potable water and
wastewater systems.
Over the next 21 years Aqua Engineers Inc. operated the Punalu'u Water and Wastewater systems
within the State of Hawaii, Department of Health guidelines as supported by ownership.
The scope of this report will focus on providing ownership an up to date description of operations,
infrastructure and meet the Public Utility Commissions request for the following information.
• A plant capacity analysis study of the water and wastewater facilities which shall, at a
minimum:
(A) include an assessment of the remaining useful service lives to ensure that the
existing plant capacities are sufficient to meet current customer needs;and
(B) be used to verify the existing system maps to ensure that Buyer has a verified
map of all water and wastewater facilities and infrastructure used to service
existing customers;and
• Projected capital improvements for the water and wastewater utility operations, including
Buyer's anticipated use of the amounts referenced in Paragraph No. 2.1(c)of the Amended
and Restated Purchase and Sale Agreement,filed under confidential seal.
2. Description of Potable Water System Operation
Punalu'u Water System is rated by the State of Hawaii, Safe Drinking Water Branch as a class 1
distribution system. System ID is PWS 114. System provides potable water to the Sea Mountain
Resort, 75 individual condominiums located at the Colony One Complex, fourteen single family
residences and the County of Hawaii, Black Sands Beach Park. Punalu'u water system also serves the
Sea Mountain at Punalu'u golf course which has four irrigation ponds for storage.
The source of water is two groundwater wells registered with the State of Hawaii, Commission on
Water Resource Management. Well A "USE" is listed as municipal and Well B "USE" is listed as
irrigation. Wells are located on the Makai side of Mamalahoa Hwy and Alahaki Road intersection.
Daily flow readings are provided by the 12"flow tube.
Both wells pump via a 16" ductile iron pipe to the 1-million-gallon concrete storage tank located at
the top of Alahaki Road. Tank elevation is 305 feet above sea level.
From the storage tank, water gravity feeds the distribution and fire protection systems.
2
Exhibit A
Page 2 of 12
4d
Punalu'u Water System disinfection is accomplished with the addition of sodium hypochlorite.
Sodium Hypochlorite is purchased in 300-gallon totes,transferred into a 55-gallon drum,and injected
and into the water system when Well A is in operation. Chlorine residual is checked and recorded
three times per week at the one-million-gallon storage tank. On the first Tuesday of every month
water samples are drawn at a Department of Health designated sample point and submitted to the
State of Hawaii, Hilo Laboratory for analysis. Each sample is analyzed for Total Coliform bacteria.
Chlorine residual is tested at the time of sampling. Every year water samples are collected and
analyzed for disinfection By-products. The current sampling schedule requires testing for Lead and
Copper every three years and Radiological samples collected every nine years.
Consumer Confidence Reports are filed each year in June with the State of Hawaii,Safe Drinking Water
Branch and distributed to all Punalu'u Water System customers.
Ninole Pump station is provided backup power by a 250 KW Kohler diesel generator.
3. Potable Water System Infrastructure
Ninole Well A(8-0831-002)
Total Depth —172 feet, casing is 18-inches, Solid Casing—to 117 feet, Perforated casing to 147 feet,
it is a public municipal well drilled in 1969. Well is operational. The existing pump was replaced in
2011 and the motor in 2018. 100-amp breaker was upgraded to a 300 am breaker in 2019. Pump
control valve is 8" and operational. Well starts and stops using a timer that is set to pump for 3
hours per day from 7:00am— 10:00am. Well was flow tested in 2011 and registered a pumping rate
of 730 gallons per minute.
Ninole Well B(8-0831-003)
Total Depth —172 feet, casing is 18-inches, Solid Casing—to 112 feet, Perforated casing to 147 feet.
Well was drilled in 1971. Well B designated use is currently listed as golf course irrigation well. Well
B is not operational; Well B has been offline for 5 years plus.
12 Inch Flow Tube
Meter does not work, daily and monthly flows are calculated and reported by multiplying pump run
time hours (RTH) X 730 (GPM) gallons per minute.
One Million Gallon Concrete Storage Tank
Tank is constructed of concrete and reinforced steel. Tank is 20 feet tall and has a diameter of 92
feet. There is a ladder mounted on the side of the tank to provide access to the top where there is
an entrance hatch and access to the float control. Tank is not fenced in and there is no gate at the
start of access dirt road. Located at the tank site are abandoned golf course booster pumps. Tank
is leaking form the bottom from two locations.
3 �
Exhibit A
Page 3 of 12
Emergency Power Generation
Punalu'u potable water pump station is designed with an 250kw emergency power generator for
power outages, generator is not operational and un-reparable.
Fire Protection
Fire protection is provided by seventeen Clow fire hydrants with three outlets on each hydrant. Six
of the seventeen hydrants do not work. To meet fire flow requirements, it is always important to
operate the 1-million-gallon tank at a level not lower than 15 feet.
Distribution System Vales
Distribution system has an estimated 7,920 feet of 12" pipe. Distribution system has twenty-one
water meters that are read one time per month. Twenty-one in line valves,of which six are frozen
and need to be replaced, system pressure of 140 at the lowest point.
4. Potable Water System Capacity
The largest user of potable water is the golf course. With the golf course closed all of 2019, we can
see that commercial water consumption decreased by 44,073,030 gallons from year 2018 to 2019.
During the same period residential consumption remained relatively consistent.
Based on the 2018 and 2019 consumption and pumping numbers as presented in the table below it
is reasonable to assume that if Well A was to continue to produce at a rate of 730 gallons per
minute with no other commercial/ residential_additions, and the golf course closed the existing
potable water system should have capacity to meet the needs of the existing customers for the next
three years.
It is important to note,that with only one well operational there is no system redundancy. Should
well A go down for an extended period of time the ability to meet fire protection and daily potable
water demands would be compromised.
Account(Meter) Classification 2018 2019
Commercial Water Sold 73,272,728 29,199,698
Residential Water Sold 13,398,712 16,308,502
Total Gallons of Water Sold 86,671,440 45,508,200
Average Water Sold Per Day 237,456 124,680
Total Water Pumped 87,616,000 45,509,000
Average Well Run Time Per Day in Hours 5.48 2.85
4 _.
Exhibit A
Page 4 of 12
41d(� A( ) � I .. C I11� I_. I - 1\
5. Wastewater System Operation
Punalu'u wastewater operations is divided into three parts, collections, pump station and the
Punalu'u Wastewater Treatment Facility. Collection system starts at the top of Alahiki Road serving
the single-family residences, golf course operations building,tennis courts and the Colony One
Condominium. Collections system does serve the County of Hawaii, Black Sands Beach Park,the
Visitor Center, or the resident located across the visitor center.
Collection system feeds the Ninole wastewater pump station located at the corner of Ninole Loop
Road and Golf Course Road, at an elevation of 36 feet above sea level. Station has two ITT Marlow
self-priming solids handling pumps. Both pumps do not work. Station uses a float system to start
and stop. Currently station wet well is pumped with a 7.5 HP effluent pump, pumping
approximately four hours per day at 40 gallons per minute.
Ninole pump station pumps to Punalu'u Wastewater Treatment plant which is classified as a Grade 2
Facility by the Hawaii Department of Health, Wastewater Branch. Treatment facility is currently
approved for a capacity of 20,000 gallons per day. With no new sewer connections allowed until
facility is upgraded or rerated. Department of Health mandated monthly effluent grab samples are
taken and shipped to FQ Labs in Oahu for analysis of Biochemical Oxygen Demand (BOD) and total
suspended solids (TSS).
6. Wastewater System Infrastructure
Collections& Force Main
Collections system consist of twenty-two manholes, 4,500 feet of six-inch gravity line made of Terra
Cota clay pipe. Force main is an estimated 3,100 feet long and is also made of six-inch Terra Cota
clay pipe. It is unknown if the force main from the Black Sands pump station was properly plugged
when the station was abandoned after the 1965 tsunami.
Ninole Pump Station
Has two ITT Marlow Series Trash Hog pumps. Model number is 4DTH24EL-EB Impeller diameter 9.65
with electric 10.5 Hp motors, 3 Ph, 1700 rpm. Both motors work and both pumps do not work.
Pump#1, suction line located in the wet well has holes in it and unable to hold suction for pumping.
Pump#2 suction line has holes in it, the pumps seals, bearings are burnt, and the impeller is worn.
5 �
Exhibit A
Page 5 of 12
Black Sands Pump Station
It is Aqua Engineers Inc. understanding that the Black Sands wastewater pump station was damaged
and abandoned after the 1975 tsunami. We never received plans or were informed if the gravity or
force main lines was properly plugged when the statin was taken offline.
Punalu'u Wastewater Treatment Plant
In 2007 Punalu'u treatment facility made many changes in its operation due to the need to cut cost.
Facility was downgraded from its design capacity of 100,000 gallons per day to 20,000 gallons per
day. Also, in 2007 the facilities sludge disposal was changed from sludge sand drying beds to
effluent rapid infiltration disposal beds. Disinfection was also stopped in 2007 as the plant was
downgraded from R-2 to disposal beds,this eliminated the use of the chlorine.
One of the results of this Department of Health approved action was the need for a sludge bagger
for sludge removal. This unit was installed in early 2008, on average our staff removes 180 pounds
of dried sludge (Three 60# Bags) every two weeks from the facility. Sludge is hauled to Hilo and
disposed of in a trash bin.
Treatment Plants influent and effluent meters do not work. Both Return Activated Sludge (RAS)
pumps do not work, facility backup power generator does not work,and the clarifier baffles are
filled with holes making proper separation of floating solids by the scraper impossible at times.
Clarifier scrapper motor needs to be replaced.
Disposal beds are scrapped once per year to help with rapid infiltration.
7. Wastewater System Capacity
A request to downgrade the existing treatment plant capacity from 100,000 to 20,000 was
submitted in April of 2017 to the Hawaii Department of Health and was approved.
In 2018 daily influent flow averaged 7,199 gallons, in 2019, 7,866 gallons and so far in 2020 influent
flows are averaging 7,345 gallons pe day. Highest average influent flow was recorded in December
of 2019 at 10,757 gallons per day. Lowest average influent flow recorded in February 2020 at 4,866
gallons per day.
Based on the Department of Health approved Treatment Plant capacity of 20,000 gallons per day,
and the daily averages over the past two plus years as show in the table below it is reasonable to say
that the wastewater treatment facility does have the capacity to meet existing customer needs.
6 � ..
Exhibit A
Page 6 of 12
46,�- AQUA EN(=; INI-ERR
Total Gallons Per
Year Month Gallons Da
2020 May 273,840 8,834
April 256,200 8,540
March 272,580 8,793
February 141,120 4,866
January 172,620 5,568
2019 December 333,480 10,757
November 196,980 6,566
October 209,160 6,747
September 214,620 7,154
August 314,160 10,134
July 323,820 10,446
June 193,280 6,443
May 193,200 6,232
April 185,640 6,188
March 234,360 7,560
February 226,380 7,806
January 246,120 7 939
2018 December 221340 7140
November 222,600 7,420
October 215,880 6,964
September 166,320 5,544
August 205,800 6,638
July 162,540 5,243
June 162,960 5,432
May 166,740 5,379
April 241,500 8,050
March 293,580 9,470
February 274,260 9,795
January 294,000 9,484
7 Pa e
Exhibit A
Page 7 of 12
4d
�- AQLIr.\ Lm -1 I N E E RS
f" NN I%,Irko EE CIV14ED CDOW10%,
8. Equipment Listing, Remaining Useful life and Replacement Cost Spreadsheet
a. WWTP Listing
Effective Remaining
Equipment Description Service Life Useful Life
Mechanical Aerator 59 9
Mechanical Aerator Nbtor 10 7
Tank Railings 54 4
Aeration Tank 75 25
Building 30 -
Doors 10
Lab Counter/Cabinets 20
Eye Wash Station 8
Air Conditioner 7
Sample Fridge 7
Genrator 30
A TS 30
MCC Cntrl Pnl#1 30
MCC Cntr;Pnl#2 30
MCC Cntrl Pnl#3 30
Hot Water heater 7
Internal 110v circuit panel 30
Mssion SCADA 20 -
Tank Railings 54 4
Tank Grating 10 -
WeirslBaffles 8 3
Effluent Rumps 20 -
Effluent Pump Valves 25
RAS Pump Valves 25
RAS Pumps 20
Scum Pump 15
Effluent Flow meter 15 -
Gravi y Collections Rpe 75 25
Manholes 75 25
Percolation Sumps 15 -
Influent Flow meter 15
Barminuter 31
Bypass Screen 31
Rant Lighting 10 -
Rant Fence/Gate 54 4
Pavement 70 20
8 1 ' age
Exhibit A
Page 8 of 12
4d
�- AQLIr.\ Lm -I I N E E RS
f'" tic i,.ti�!•E iIYBE l��"�tE1l COMY,�',
b. Pumpstation Listing
Effective Remaining
Equipment Description Service Life Service Life
Pumps 15
Motors 10
Control Panel 15
Portable Generator 7
Housing 20
Alarm Sys/Level Control 20 -
Complete Replacement 56 20
c. Water System Listing
Effective Remaining
Equipment Description Service Life Service Life
Building 56 20
Building Doors 10 -
Chlorine metering pump 15 2
Eye Wash Station 40 4
Fencing 39 3
Fence Gate 20 -
MCC Panel main 39 3
Generator 30 -
Generator ATS 30
Well Pump 30
Well Pump Valves/Rping 25
Flow meter 20
Pressure Sensor 6
Chlorine Booster Pump 15
Tank 30 -
Tank Ladder/Railing 46 10
Grating 10 -
Tank Access Cover 41 5
Sample Point Piping 10
Fire Hydrants 35
Water Meters 19 -
16"Distribution Piping 86 50
12"Distribution Piping 86 50
12" Isolation Valves 12 total 86 50
9 Pae
Exhibit A
Page 9 of 12
9. Capital Improvements for years 1—3
Ownership will be processing new entitlements over the next 3 years, and the planned
improvements and repairs being planned will need to be consistent with such entitlements.
Potable Water System Justification
Upgrade wiring and install soft Existing well motor does not have soft starters. This
starter for 100 horsepower motor for creates a higher amperage demand charge during
Well A. daily start-ups. Not having soft starters also shortens
the useful life of motor.
Replace 21 water meters with Badger Replacing the meters will improve accuracy in the
M25 positive displacement meters monthly meter reading consumption report.
Replace motor control center and Building contains high voltage, Replacement will
chlorine pump room doors and provide security from trespassers, rodents, and the
ventilation louvers. weather. Doors are beyond repair.
Replace chain link fencing as needed Provide security for facility.
and replace entrance gate
Install SCADA monitoring system at SCADA system will provide 24-hour monitoring of the
million-gallon tank and potable well tank height and provide a more efficient pumping
site. operation.
Replace existing 16" x 12"flow tube Meter does not work; daily pumping totals are
and totalizer. calculated by multiplying the run time hours by the
estimated pumping rate of 730 gallons per minute.
Increase reported pumping accuracy.
Wastewater System Justification
Install effluent meter at treatment Effluent flow meters are required by the Department
plant. of Health at all wastewater treatment facilities.
Install SCADA monitoring system at SCADA system will provide 24 hours monitoring of wet
wastewater pump station. well height and alarms for high and low levels,
Replace pump at wastewater pump Existing Pump is failing. New pump will be able to
station with a new 7.5 hp Barnes pump more waste in less time which will decrease the
grinder pump. Replace wiring in daily run time.This will result in lower electrical cost
panel as needed to provide for water and lessens the chance of a wastewater spill.
seal alarms.
10 � ,. ..
Exhibit A
Page 10 of 12
Ownership will be processing new entitlements over the next 3 years,and the planned
improvements and repairs being planned will need to be consistent with such entitlements.
Potable Water System Justification
Replace inoperable backup power Backup power generation will assure the potable water
generator and upgrade transfer system and the fire protection is functional during
switch at pump station extended periods of no grid power.
Repair 1-million-gallon concrete Concrete tank is leaking form the bottom from two
tank locations. It needs to be determined if it is more cost
efficient to repair the tank from the outside or take the
tank off line and refurbish from the inside.
Replace 5hp chlorine booster Pump is past its useful life. Booster Pump is critical to the
pump successful disinfection of the potable water system.
Should pump fail daily injection of sodium hypochlorite to
meet DOH disinfection requirements would stop.
Replace 8" pump control valve for Existing valve is past a its useful life. Pump Control Valve
Well A is used to control water flow from the deep well to the
system during the start and stop process. Should valve
fail, well would be inoperable until replaced.
Well B Well B is inoperable. Replace well casing, pump motor,
control valve, install soft starter, install heater coils for
motor, replace 100 amp breaker, replace run time hour
meters, update wiring as needed in MCC panel and run
water quality test as required by Department of Health.
Wastewater System Justification
Replace portable backup power Backup power generator will be used to power up
generator for wastewater pump wastewater pump station during extended periods of no
station power. This will prevent wastewater spills.
Camera collections system to Line is 50 years old and has never been flushed or CCTV
confirm condition of line. for cracks, root intrusion or blockage. System is estimated
at 4,500 feet long.
Exhibit A
Page 11 of 12
,d(,- AAQUA ENGINEERS
AN I!%,F1I.0,t LL OWNED COMPANY
Ownership will be processing new entitlements over the next 3 years,and the planned
improvements and repairs being planned will need to be consistent with such entitlements.
Potable Water System Justification
Repair or replace fire hydrants as Replace damaged fire hydrants and repair valves as
needed. needed.
Replace distribution system Replace broken 12-inch system gate valves
broken gate valves
Wastewater System Justification
Replace wastewater treatment Based on the condition of the existing facility It would be
facility more cost efficient to replace the treatment plant with
newer technology that is eco-friendly and would be built
on a smaller footprint.
12 1 Page
Exhibit A
Page 12 of 12
C & A Punalu'u, LLC
Financial Plan as of July 13, 2020
Punalu'u Water & Sanitation, LLC Financial Plan as of July 13, 2020
The following financial plan is based on information available at this time. Given that C & A
Punalu'u, LLC ("C & A Punalu'u") only acquired the utility less than two months ago and in light
of the current COVID-19 pandemic, travel restrictions, and quarantine requirements, C & A
Punalu'u reserves the right to update this information should new or additional information
become available.
1. Operating Projections
Currently, the sole revenue source for Punalu'u Water & Sanitation, LLC ("PWS") is the
potable water sold to the PWS' twenty residential and commercial customers in the
Punalu'u area. The water consumption for those customers has remained relatively
consistent in past years. Without seeking any rate increase,the projected revenue for the
next consecutive two years is approximately $36,000 per year. PWS anticipates an
increase of 25% in revenue during the third year if the Black Sand Beach development is
able to proceed, and the projected revenue for the third year would be approximately
$45,000.00.
The operating expenses of Punalu'u Water & Sanitation, LLC mainly fall in two line items,
service fees paid to Aqua Engineers, Inc. ("Aqua Engineers"), which operates and
maintains the potable water and wastewater systems for Punalu'u Water & Sanitation,
LLC, and electricity payments to Hawaii Electric Light Company. The newly signed service
contract with Aqua Engineers is $86,199 per year, including taxes. Aqua Engineers is
expecting a 2% yearly increase on its service fees. If there is no significant increase of
water consumption by customers, the PWS' electricity usage will remain consistent as
electricity is primarily used to power a pump to pump water. PWS projects $5,000 in
monthly expenses for its utility bills with a 1% increase in the the second year and a 10%
increase starting the third year. PWS has prepared a budget plan for operating PWS and
is expecting a total operating loss of around $380,000.
Following the recommendation of Aqua Engineers, PWS has also budgeted $120,000 for
facility and equipment improvements over the next three years. This budget amount is
based on the PWS and Aqua Engineers' best estimates and is subjectto change depending
on whether there are changes in circumstances and if there is a need to increase the plant
capacity during the next three years.
Exhibit B
Page 1 of 4
C & A Punalu'u, LLC
Financial Plan as of July 13, 2020
Punalu'u Water and Sanitation LLC Pro Forma
3 Year Operating Projections
Year 1 Year 2 Year 3
Revenue
Revenue Water Safes $36,000.00 $36,000.00 $45,000.00
Total Revenue $36,000.00 $36,000,00 $45,000.00
Expenses
Insurance $800.00 $800.00 $800.00
Third Party Consultant-Aqua Engineering $86,199.o0 $87,923.00 $89,681.00
Repair $7,000.00 $7,210.00 $7,426.00
Utilities $61,000.00 $61,610.00 $67,771.00
PUC Fees&Taxes $1,600.00 $1,600.00 $2,000.00
Professional Service Fee $1,500.00 $1,500.00 $1,500.00
Total Expenses $158,099.00 $160,643.00 $169,178.00
Project Net Income ($122,099,00) ($12.4,643M) ($124,178.00)
Capital improvement
Facility Improvement $20,000.00 $30,ODO.00 $70,000.00
Prje4gftKCa$jvF10W (SI:42,0"40) '($154,643.00) ($194,178.00)
Assumptions:
1.No new customer accounts are opened in 3 years
2.No rate increase in 3 years
3.No significant usage increase for electricity
4.Capital improvement is budgeted base on the company's best estimation and is subject to change.
2. Fund Source
PWS is unable to generate enough revenue to support its daily operations under current
water consumption revenue unless new or additional revenue sources are developed.
Over a relatively long period, PWS will greatly depend on its C & A Punalu'u's financial
contributions as its main source of funds. C & A Punalu'u has reserved $520,000, which
includes a $120,000 credit that C&A Punalu'u saved from the land acquisition from Seller,
to contribute to PWS over the initial three years. These funds will help to support PWS'
operations and help PWS to provide services to its existing customers until such time a
rate increase becomes necessary.
Sources and Usages of Cash
Sources of Cash Usages of Cash
Year 1 Year 2 Year 3 Total Year 1 Year 2 Year3 Total
Revenuefrom Operation $35,000.00 $36,000.DD $45,000.00 $117,000.00 operating cost $158,D99.D0 $160,643.00 $169,179.00 $487,92o.DD
OwnersContributfon Capital Improvement $20,000.00 $30,ODD.00 $70,00D.00 $120,ODD.DD
Additional Cash $130,000.00 $130,0D0.D0 $140,000.00 $400,000.00 Fund Reserved $7,901.D0 $5,357.00 $15,822.00 $29,080.D0
Money Saved from Buy's credits $20,D00.00 $30,10D0.00 $70,013D.00 $120,000.00
Total $196,000.00$196,000.00$255i000.00$637,000.00 Total $186,000.00 $196,000.00 $255,000.00 $637,000.00
Exhibit B
Page 2 of 4
C & A Punalu'u, LLC
Financial Plan as of July 13, 2020
3. Financial Goals
PWS'financial goal is to reach a break-even point in five years assuming the development
commences by year 3 and there are new or additional customers. PWS is optimistic
regarding its financial goals and is projecting revenue increases after year three, based
on the following assumptions:
1. A significant increase of water consumption with the development of Black Sand
Beach. New or additional accounts will eventually help PWS generate more revenue
to cover its operating costs.
2. Potential customers that may buy a large amount of potable waterfrom PWS. During
the three-year window, PWS plans to actively explore business opportunities that
can help PWS expand its commercial customer base and revenue sources.
3. PWS anticipates needing funds to expand/replace its current water system and
equipment beyond year 3 when there is a need to increase plant capacity,which PWS
may seek a rate increase for.
Punalu'u Water and Sanitation LLC Pro Forma
5 Year Operating Projections
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Revenue Water Sales from local residence/commerical customers $36,P00,00 $36,000.00 $45,000.00 $67,500.00 584,375.00
Revenue Water sales from Joint Venture $120,000.00 $140,000.00
Total Revenue $36,000.00 $36,000.00 $45,000.00 $187,500.00 $224,375.00
Expenses
Insurance slimton $swim $800A0 $800.00 $800.n0
Third Party Consultant-Aqua Engineering $86,199.00 $87,923An $89,681.00 $91,475.00 $93,305.00
Repair $7,nF10,00 $7,210A0 $7,426.30 $7,649.09 $7,878.56
Utilities $611000.On $61,610M $67,771.00 $77,936.65 $93,523.98
PUC fees&Taxes 51,600,00 $1,660.00 $2,000.00 $7,750.00 $9,225.00
Prolessional Service Fee $1,500,00 51,560.60 $1,500.00 $1,500.00 $1,506.00
Total Expenses $158,099.00 $160,643.00 $169,178.30 $187,110.74 $206,232.5
Project Net Income ($122,099.00) ($124,643.00) ($124,178.30) $389,26 $19,142.46
Capital improvement
Facility Improvement $20,000.00 $30,000.00 $70400,00 $200,000.00 $300,000.w
Project Net Cash Flow 6142,f'9,90J 6194.a43.00g 5174.175,3.01 l$199,610.74) d5231.657,54
4. Water and Wastewater Rate Increase
A moderate rate increase after May 2023 is under consideration. PWS is not currently
able to provide a detailed plan regarding the future rate increase due to limited
information and uncertainties regarding future expansion and operations. An
updated financial plan can be provided after PWS has more information. PWS' goal
Exhibit B
Page 3 of 4
C & A Punalu'u, LLC
Financial Plan as of July 13, 2020
is to break even and make a reasonable rate of return, and a future rate increase may
be needed to facilitate this and make PWS' operations and services sustainable.
Exhibit B
Page 4 of 4
BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF HAWAII
In the Application of }
}
PUNALU'U WATER AND SANITATION, LLC, } DOCKET NO. 2018-0408
S M INVESTMENT PARTNERS, AND )
C & A PUNALU'U, LLC )
for (1) A Certificate of Public Convenience and }
Necessity for Punalu'u Water and Sanitation, }
LLC to Provide Water and Wastewater }
Services to Sea Mountain at Punalu'u, Ka'u )
District, Island of Hawaii; (2) Approval of )
Proposed Initial Tariffs, Including Rates, )
Charges, Map, and Rules; and (3) Approval of }
the Proposed Change of Control of Punalu'u }
Water and Sanitation, LLC. }
CERTIFICATE OF SERVICE
I hereby certify that on this date copies of the foregoing document, together with
this Certificate of Service, were duly served on the following parties as set forth below..
Parties U.S. Mail Hand E-Mail
Deliver
Dean Nishina ❑ ❑
Executive Director
Department of Commerce and Consumer Affairs
Division of Consumer Advocacy
dnishina@dcca.hawaii.gov
consumeradvocate@dcca.hawaii.gov
dca@dcca.hawaii.gov
{4839-8542-8674}
DATED- Honolulu, Hawaii, July 13, 2020-
Wil K. Yamamoto
YAMAMOTO CALIBOSO
A Limited Liability Law Company
Counsel for C&A Punalu'u. LLC
2,4839-8542-8674}
FILED
21--12D J,il 13 AM 10:53
PUBLIC' UTILITIES
M I'AI'--SIt-1N
The foregoing document was electronically filed with the State of Hawaii Public Utilities
Commission's Document Management System (DMS).
HA wAII FIRE DEPARTMENT
FIRE PRE i E_% TICS% 8URFA
1111.0. '.-I;q S;qN' "/L ti� S 932-2913 or(80 9_i1-1914
KO% _q- U-l-I, m' i; lilr r., f nrlru.-Rnrti. 111 J(-!fl(i1'f;) �_3-!'b0
Eire Report
Dates 8l7 23
Location: 9 7,88 Ninoole Loop %Punaluu Private Hydrants
POC:
Scope of Work: Re-inspection of non-operational hydrants from 12/30/21- Inspectors manually tested
1-16 hydrants to verify in use/not operational
Test Results: Phases #1-3 of work is needed
All Required maintenance and testing is the responsibility of the owner or occupant and fall under
NFPA 25 of Water-based fire protection systems:
-All private hydrants shall be inspected, tested and maintained annually
-All Pri%ate hydrants shall have a record of maintenance and/or stamped sticker from professional
water suppression personnel yearly
- The owner or occupant shall promptly correct or repair deficiencies, damaged parts, or impairments
found during operation and use of private hydrants
Findings: Multiple hydrants needing repair, shall be organized in repair by greatest areas of need to
lo«er level areas until all are in service and tagged operational by a professional
P1lASF 1
I I%drams #1-3: Life safety is top priority and shall be first hydrants that need to be operational, Sm.I I
Capiain Carvalho upon testing of hydrant 2 found metal shavings/heavy debris in the hydrants water
Phase 2
Hydrants #4-8: Should be zoned as the second priority due to being within the area of multiple
condos. These condos also have wooden shingled roofing near the brush fire zone and are a high fire
hazard area.
Phase 3
Hydrants#9-12,13-16: The most important hydrants on the bottom of the loop#14,15 and 16 are
operational but eventually need to be tagged and serviced once all hydrants are operational
Submitted,
Inspector Tyson Goo
Hawaii Fire Department
Fire Prevc rtlorl Bureau
Revised 1282013
HAWAII FIRE DEPART.WENT
FIRE PRE VFA I-ION B(!RE,= U
may. HILO 'bpiuu,,t Juan 25u,. '-!, rvM)932-2913 01'(8ft 932-2914
KOAA. 74-5044 Ane Keohokalole 1h) 1: l,uduu-Kona, NI90-40(MN)3_3-4 60
Fire Report
Date: 2-4-22
Location: Punaluu Ninoole Hydrants (4 of 16 OC)
Scope of Work: Meet w/landowner to discuss Hydrant situation
Findings:
FIRE recommended to change/removal of 4 OC hydrants and install ne". hydrants available on island
After speaking
-hydrants bolt fitment are different from a normal updated hydrant, a bolt adjusted sleeve needs to
be installed in order to install a new hydrant
4- .
�off•
EA
} 4
. r r
t
a
w
,l3� eetx.s TV ,w
Submitted, ,.
jz�_
Inspector T
T
f
Hawaii Fire Department r : 1
„.
Fire Prevention Burcau
Revised 2/28/2013
HAWAII FIRE DEPARTMENT
FIRE PRE YEN TION B UREA 1`1
HILO. 25.I upuniSi.tiieuc '5W W VO.—'ii, 932-2913,(,j-qOS)932-2914
J" I!?L h k.i„iri,' —60
Firt, Report
Date: 12/24/21
Location: Punaluu Loop Hydrants
POC:
Findings:
-Hydrant#14 was fixed/completed fk- 4
-Currently working on #12
Follow Up:
Completed hydrants shall need to be inspected, Goo Tvo,
Floxvied and flushed by certified personnel then
niarked/tagged in service Just wanted to Het you know that we fixed number!4 we stailed number 12
trot need dO(I I I I 0n a I P,3F 9,because the elbow I A s erK Jsii If I Li04crete Is Wt'd I
is Beak no IS DECk"IQ up more Pdrtl,Per us is California and is shippiliq
their do�,ri Will keep acu posted as V.'e move furwaid°
Merry Christmas and a Happy New Ycai,fl
ueT vutlgQk for iQS
SUbmitted,
Inspector Tyson Goo
I lawall Fire Department
Fire Prevention Bureau
Revised 2'281'2013
o
f'R HA WAIT FIRE DEPARTMENT
FIRE PRE J,'EA 170V R L R kA L,"
HIT 25_t 0?2_7913or(8ft 937-'913
KO', J. W 10(:4i1 f1
Fire Report
Date:11-12-21
Location: Punalu'u Private Hydrants
Contractor:
Scope of Work: 2nd Follow-up
Test Results: Progress Report
Findings: Goo Tyson I ry
(No subject)
Need to see on next update: F rar �, �,,-n,•
1. Fire Prevention Plan Mark as unread
2.Hydrant parts order list ,r) 7 r,az s,
3. Need timeline for hydrant
Completion
To: Goo,Tyson;
Good morning,
I wanted to give you and update; I am still working on the fire prevention plan.
I am hoping to get this to you scion.Also, I had a meeting with
yesterday, and we have Identified all the fire Hydrants. We have a list of each
and every one of them, in total we have 16 of them.There are currently 9 in
total `heat is running, there are 6 out of the 9 that need repairs but is still in
workr';t r. c t1cn. There are 5 that are not rrorkinq condition, and two that
are tk:a ly ml,5Sing. is waiting on quotes lrnm i n Hilo. I just
recently talked to from he saki that he should have the
quote r€ady for us tomorrow.Then we can see i! �,e can get the parts or not. If
we can't get the parts, we will have to order all new hydrants. I'm hoping to get
more information for you next week.
Thank you for y,=:_r Nett., and patience.
Punalu'u Property Manager
Submitted,
Inspector Tyson Goo
Hawaii Fire Department
Fire Prevention Bureau
Revised 2i28;2013
HA WAII FIRE DEPARTMENT
FIRE PREVENTION B UREA U
HIM '5 1)",um S1 tiiwe Iii V6720 6Y081 932-2913 W)�', 932-2914
Fire Report
Location: Punalu'u Beach Area: Ninole Loop
95-788 Ninoole Loop Colony Condominiums Vacation Internationale
Description of Complaint: Privatc I lydratit Maintenance
Date of Investigation: 11/4/21
Findings:
POC:
Land Management
Taken the duties within 3 weeks of investigation
"""Currently 6 of 16 total hydrants working
2yrs may of last year 16 hydrants
Aqua Engineer running facility for property
Manages water sanitation
Notes: Pond water supply drafting?
Submitted,
Inspector Ty- 0
Hawaii Fir� lent
Revised 2 28 20 1-')
..
« v
i
'
6
,
i
t + z ...
—
�; r
r
,
i
_ t
,
4
E ,
j •4 t t
i
_ l
-a:r-
s
w 6 a r
PUNACU'CD FIRE HYDRANTS
;m September 2020
vT Lt1Tf — Lt3NG_ ELt3V4l TEST ^ - HUT OFF Vf V CAT LONG
GPM _ -- ..,�_ -- I REMARKS
1 19'1417 155,5182,_ 200
�_
2 34p9- 1555176 i�. 3
IN SERVICE T
I _
3 191400T 155.5168^.. 300
4 M13773 -155'5141� —.. ._
--
5 - 19.1364 -1555134 400 _
1364 155.5135
19 3.34$ 155 328,
_ IN STREET
--"" ADD 19.1348` -i
j _. _ __ .� _5551291 IN STREET,STRIPPED VALVE STEMS
19 1337 155.511$' 350 — --
19.1338 -155.511$ IN STREET
"- —�
1 3335 -155 5101
_ w
19.13341 -155.5103 � IN STREET,NOT IN SERVICE
�9� ERYiCE
_ 19
19e:1315,.-155.5133
MISSING —
1I 19.1306 155.510$" -
NOT IN SERVICE
121�._13 0I 1? 55:51 m.4
NOT
IN SERVICE -
13 19
—.
14 - —.
NOT IN SERVICE
�5 1.9 13S6 155.505
r 5 400
f
� t� 39137, �5. i 250 � VALVE i5 DtFEICUIT TO OPERATt
AlUmter-==
March 12, 2023
Board of Directors
Colony One AOAO
c/o Pacifica Realty Management Inc.
75-1029 Henry Street, Suite 202
Kailua Kona, Hawaii 96740
Public Utilities Comission of the State of Hawaii
Kekuanao'a Building, First Floor
465 South King Street
Honolulu, Hawaii 96813
RE:
Punalu'u Water and Sanitation, LLC
C &A Punalu'u, LLC
Aloha,
The Board of Directors of Colony One Association of Owners (the Board)would like to introduce
ourselves as the largest water user and consumer of drinking water service and waste water service
from Punalu'u Water and Sanitation, LLC (hereinafter PWS). PWS is licensed in the State of Hawaii as
a Public Drinking Water System and Wastewater System and was approved to purchase the systems by
the PUC based upon assertions made in their application and subsequent documents.
The Board was unaware of the application or approval to purchase the water systems until after it had
been approved by the PUC. In fact, the Board was unaware of the takeover of the system until at least
November 2021. Therefore, the Board (and Colony One Owners) as well as the individual landowners
of fee simple lands at Kalana Estates, the County of Hawaii Department of Parks and Recreation, and
other landowners near Punalu'u Beach were unable to comment on the application or submit concerns
prior to approval.
Despite the approval process covering many points of concern and requiring PWS to make assertions to
their financial, managerial , and operational capacity to safely operate the systems, PWS has done little
to bring the systems up to a reliable standard and have not addressed any of the severe concerns raised
in their own filings.
The Board has attempted to establish dialog with PWS and its Management and has had mixed success.
The landowners at Kalana Estates and other affected owners have also expressed concern over the same
issues and have shown a unity of interest regarding the water and wastewater systems current
condition. To date, PWS has made claims that they intend to bring the systems up to a reliable
standard, but has failed and the water and wastewater systems have continued to degrade from the
highly questionable condition when they took them over. PWS was aware of the poor condition of the
infrastructure and has made no real effort aside from doing the bare minimum. They claimed they
would work with the Board and the other affected owners attempting to placate them by making
promises to make improvements and even to update us on progress monthly. We have yet to receive a
monthly update after more than a year, and none of the community member questions have been
answered.
It should be pointed out that Colony One is located at Punalu'u Beach in the District of Ka'u on the Big
Island. It is very remote and all residents of Ka'u understand the importance of water. We are located
in the Ka'u Desert. The poor condition of the water system is troubling enough, but the lack of any
redundancy or backups is terrifying.All systems are operated manually by the operators. If any event
caused a long term power outage, there is no generator, no plan to get one, and no connection to plug it
in if they did locate one. This applies to the water supply pump, but would also need to power the
chlorination system which is at a different location as well as the waste water lift pumps and the
treatment plant (also both at different locations). If there were an event similar to the rains in November
2000, not only would the power be out, but the operators would be unable to start or stop the pumps
because they wouldn't even be able to get there from Hilo or Kona for nearly 5 days.
Currently, PWS is experiencing a lift pump failure in the wastewater stream. The pump that failed is the
backup to a backup that was installed prior to the transfer of ownership. The primary lift pump and
secondary lift pump have been broken for many years and are beyond repair. The pump that recently
broke has been fouling regularly because it is too small for the application and is not the type of pump
for that application.At this point PWS has hired a pumping company to pump and haul the sewage
daily. Rather than heed the warnings they had when purchasing, and the many warnings they have had
from the community, they are now spending money on pumpers that probably would have paid for a
properly sized and designed pump.
Enclosed is a copy of our most recent correspondence with PWS that was written after months of
attempted dialog seeking answers to many questions that have gone unanswered. We have not received
a response.
PWS submitted their own condition report by Aqua Engineers with their application which clearly
shows the majority of the infrastructure exceeding its life expectancy and a lack of backup generators
or redundancy of any kind. The systems were on the verge of failure when they purchased them and
they made assertions as to their capacity to properly finance, manage, and operate and improve the
systems. However, since the transfer of ownership, PWS has lost Aqua Engineers as their contract
operator and manager, and are now managing the system with little or no professional experience in the
management of a public utility. They have hired two contract operators who are licensed in the State of
Hawaii which may qualify for operational capacity, but those operators do not appear to be getting the
managerial and financial backup that is desperately needed and was required in the approval process.
The Board of Colony one is therefore asking for your input on how best to file a formal complaint with
the PUC to compel action by PWS. We are also asking to be included as interested parties in any
hearings or correspondence regarding their compliance or lack thereof as well as any application for the
sale or transfer of PWS.
Many thanks for your thoughtful consideration of this matter,
Board of Directors
Colony One AOAO
cc:
Stakeholders: Kulana Homeowners, County of Hawaii Parks and Recreation, County of Hawaii Fire
Department, Charles W. Dahlberg Trust, Sidney Strange, Joseph K. Bangay
cc:
Punaluu Water and Sanitation LLC
i
f
I
I n
,I
(xti
- a•
r
4'
hR I
r � k
F'Y
C 11T
*xy
a
r
4.
.; U
__. Via -
.. tl
_r
a
-
r
y _
a•
y
t
r.
1
.w v
y k..* s_ #F,ta ..' I I I. eJAL
rr
�w
y
r
r
_ r
.., f, „ .a► •-` art. .i �- ,�
r.
_
9'edb� ".I .,
f
a
do
' `
P �S
A
� a
, \»
44
`
-
\ yx
� r .
�
» ^ » :
°f§
� {) �
« # . �
d {
\ �
. ��.
r
y
' 'w � t�• �iz w s /r i. �..
4
jo
Ito
die
fir/�r01
- ?,
p
�A b n J Pik �'aK`r �r, l ► �ta ( �I� 1
^M Y yy
w
w
a
r
o
u s,
a
�,� #.�r�"�.^n1_,�a. ^�"�".""'�.,'� »r •`"' m a �`b4,! "\\M ^s r� '*'M' ' .T � � ��" �"'". ��-:,�,,, *, —•�C,/`�."" �
_
'ev' � VsV w 6" �,. `�' s�, •T�,�M' V'�•.., v.. '"" .� dam_ �_ �r `/ ,. a ��%��,y*r •��g�y �;!x'
7
a
"
4 fir, Nowr,• ti ,9N#"""°
i
lk
-14
a
P 4M py
low
r0
.ply gym,
*b n W
ArA
e
4 yy
.,,
Ohm
vyM� a
n
m
y�
. w w •AY a . �. dR. �n M. ... M�' �� �� Iw! _., -..eeW
gyp"" 1.
nw
i OPT 1A�R j,I�Yr
f �"���'►"'� ...�`v �'��/;•� � � �_ � f� p��,air.
DAI
14
FAF
,. _ R
P't OT -1
. .. z
�Y
c
1dll. -�1 �I. � �._+! �1 �1�' �f F�1.y�k ■
1�1
® Tfl
,
at
vs
Lo
lk
WWI
51
Mr
r til ,�� a� ��. '�'� t - .[r ^a•a�. �7W1a al�t`: x.�� r wy,
y
4. �1�,+',�F'e, +��'�t.3i �•l�Wi► k r Aye,? 7 � ws, _`. �p� --'�,'��r
ry ,
4
�r y
R