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Mr. Brooks said that the developer, like everybody else, got caught in the economic downturn, and is in <br />pretty dire straits. The developer is just sitting there having to wait; there is nothing they can do. Just <br />like having the reservoir site is of great future benefit to DWS, the future benefit for Seascape is there <br />once the water can be made available, Mr. Brooks said. <br /> <br />Chairperson Mukai said that he feels for the developer in this situation, and he is inclined to vote in <br />favor of the Motion to extend. However, he would strongly urge the Board not to approve a further <br />extension if another request comes in next year. <br /> <br />ACTION: Motion carried unanimously by voice vote. <br /> <br />(Mr. Brooks left the meeting at 10:37 a.m.) <br /> <br />AGREEMENT BETWEEN ESTATE OF BERNICE PAUAHI BISHOP, KAMEHAMEHA <br />D. <br />INVESTMENT CORPORATION (KIC) AND THE DEPARTMENT OF WATER SUPPLY: <br /> <br />The Trustees of the Estate of Bernice Pauahi Bishop (KS) and Kamehameha Investment Corporation <br />(KIC) are requesting to enter into an agreement with the Water Board to allow the transfer of water units <br />that were previously assigned and used on Tax Map Key 7-8-013-002 (the “Property”), through a 4-inch <br />meter to Lands that are currently owned by KS and/or KIC within the same pressure zone and serviced <br />from the same reservoir. <br /> <br />The water service to the Property was used for the former 462-room Kona Lagoon Hotel until it was <br />razed and replaced with a pavilion and other amenities. The agreement specifies that KS/KIC will cut <br />and plug the existing service lateral for the 4-inch meter and replace it with an appropriate-sized lateral, <br />based on the current and foreseeable water usage. The balance of the 235 units that are assigned <br />through the 4-inch meter will then be available for KS/KIC, to reallocate to their lands currently owned <br />and serviced by the same reservoir. <br /> <br />The Manager-Chief Engineer recommended that the Water Board agree to the Water Agreement <br />between the Trustees of the Estate of Bernice Pauahi Bishop and Kamehameha Investment Corporation <br />and the Water Board of the County of Hawai‘i, and that either the Chairperson or the Vice-Chairperson <br />be authorized to execute the document, subject to review as to form and legality by Corporation <br />Counsel. <br /> <br />MOTION: Mr. Meierdiercks moved to approve; seconded by Mr. Taniguchi. <br /> <br />Mr. Kyle Chock gave an overview of the rich historical and cultural significance of the Keauhou- <br />Kahalu‘u legacy lands owned by Kamehameha Schools, in which the subject property lies. Mr. Chock <br />thanked DWS for the work done on the transfer of credits on the 235 water units at the former Kona <br />Lagoon site. Mr. Chock said that much restoration work is being done on the cultural sites in the area, <br />and this work will continue. He asked the Board’s support of the agreement to transfer the water <br />credits. <br /> <br />The Manager-Chief Engineer explained that the old Kona Lagoon had a 4-inch meter, of which the <br />average use was about 235 units per day. This agreement allows KIC to use the 235 units on properties <br />owned by them in the same area, with the water coming from the same reservoir that was used by the <br />Kona Lagoon. This agreement allows KIC the same 235 units, for use on other lands, so long as the <br />water comes from the reservoir that Kona Lagoon once drew from. This arrangement poses no <br />detriment to DWS, and is a good situation whereby KIC maintains the 235 units that they were entitled <br />to when the Kona Lagoon was operating. It allows KIC to develop culturally significant lands in the <br />area for preservation purposes. <br /> <br />Mr. Greenwell asked whether the 4-inch meter was gone. <br />Page 8 of 29 9-27-11 ~ Water Board Minutes js <br /> <br /> <br />