2011-10-25 Water Board Minutes - Laserfiche WebLink

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Ms. Garson said she can look into the matter; she knows that Honolulu treats the Power Cost differently. She said that she felt it better to play it safe to hold the Public Hearings before adjusting the Power Cost Charge, because the Statute talks about rate increases, etc. She feared that if DWS did not hold a Public Hearing,that the rate adjustment could be considered invalid. She said she would explore the matter, acknowledging that DWS does treat the Power Cost differently than Honolulu does. The Manager-Chief Engineer asked Ms. Garson whether it would make a difference if the Power Cost was not part of DWS's rate structure, and if that would alleviate the need for Public Hearings. Ms. Garson said she did not think it would make a difference, saying if you call it a duck, it is still a duck. Mr. Greenwell asked Mr. Taniguchi and Mr. Sumada about the possibility of setting up an escrow account that would provide a cushion against such shortfalls. He said that when DWS does not receive what it should, DWS is not only losing the money, but also a great deal of interest. Mr. Taniguchi said that even if there were such an escrow account, it would still come out of DWS's money. Mr. Greenwell said that at least an escrow account would be earning a return while the money was just sitting there. Mr. Taniguchi said that would work if DWS had the money, but if DWS collects less,the balance would drop and even possibly go into negative territory. Mr. Greenwell said if DWS collects less, it could take the money out of the account, and then in the following month if it collected more, it could put that back into the escrow account. An escrow account would at least create a cushion, so that DWS is not always behind. Chairperson Mukai asked how DWS would create funds to put into an escrow account. The money would have to come from someplace, but the way the formula is written, DWS cannot overcharge money to put into an escrow account. Mr. Taniguchi said Mr. Kaneshiro's proposal has a lot of merit. DWS should look into doing what Honolulu Board of Water Supply is doing on the Power Cost;this would give DWS the ability to adjust rates without holding a Public Hearing. Honolulu must surely have done due diligence to come up with their rationale, he said. He thought it was a good starting point. Mr. Taniguchi asked Ms. Garson if she could look into it. Ms. Garson said she would speak to the Honolulu Board of Water Supply's attorney. G. MANAGER-CHIEF ENGINEER'S REPORT: The Manager-Chief Engineer will provide an update or status on the following: 1) Palam Road Transmission Waterline Project—Noting the time extension approved earlier in the meeting,the project is wrapping up and hopefully will be done by the end of the extension period. This project will bring a lot of mauka water makai, and reduce the pumping at the Kahalu`u Shaft. As a result,the quality of the water will be greatly improved for the customers along Ali'i Drive. 2) Hawaiian Ocean View Estates Project—Mr. Inaba said that HELCO encountered a voltage problem, and will be going back to the site on Thursday to resolve it. The Manager-Chief Engineer said that once the electrical work is done, DWS can start the pump, do the efficiency test,take the water samples and send them to the Department of Health(DOH). Mr. Okamoto Page 15 of 21 10-25-11—Water Board Minutes js