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RES 237 Draft 01 2000-2002
COUN°l~ OF ~A.~J~I`I ~T1~T~ O~ I I~W1~I`I RESOLUTION NO. ~ A RESOLUTION OF DETERMINATION TO PROCEED TO CREATE AND DEFINE A WATER SYSTEM IMPROVEMENT DISTRICT FOR TIIE I{ONA COASTVIEW AND I~ONA WONDERVIEW SUDDIVISIONS WIIEREAS, the Hawaii County Council adopted Resolution No. 220-02, Draft 2, a Resolution Proposing the Establishment of a Water System Improvement District for the Kona Coastview and Kona Wonderview Subdivisions, on June 19, 2002 in Kailua-Kona, Hawaii; and WI-IEREAS, Resolution 220-02, Draft 2 expressly approved and adopted the findings, conclusions and recommendations contained in the "Manager's Report" (Communication No. 652) prepared by the Manager, Department of Water Supply, dated June 2, 2002, and concurred with the Manager's conclusion that "the establishment of the Improvement District will provide significant benefits to the health, safety and welfare of the residents of the Coastview/Wonderview Subdivisions"; and WIIEREAS, in adopting Resolution No. 220-02, Draft 2, the Council further found that, in accordance with Section 12-10(i), Hawaii County Code, the creation of the proposed Improvement District and the construction, acquisition and installation of a water system for the Kona Coastview and Kona Wonderview Subdivisions was "in the public interest"; and WIIEREAS, Resolution No. 220-02, Draft 2, in accordance with the provisions of Section 12-28 of the Hawaii County Code, authorized a public hearing on the proposed improvements to be held within 60 days after its adoption; and WI-IEREA5, in accordance with the requirements of public notice set forth in Section 12-28, Hawaii County Code, the Office of the County Clerk undertook the following steps to notify owners of properties subject to assessment and owners of properties proposed for acquisition as contemplated in Resolution No. 220-02, Draft 2 of the date, time and place of the Public Hearing: (1) Set a Public Hearing to be held on August 2, 2002 at 6:00 p.m. at Kealakehe Intermediate School, 74-5062 Onipaa Street in North Kona, Hawaii; (2) Mailed copies of the Notice of Public Hearing (attached to this resolution as "Exhibit A") and the full text of Resolution 220-02, Draft 2 by certified mail to each of the 437 owners of assessment units within TMK Plat Nos. (3)7-3-13, -014, -015, -016, -022, -023 and -028 on June 28, 2002; (3) Published the Notice of Public Hearing in two newspapers of general circulation within the County of Hawaii -four times in West Hawaii Today (July 9, July 14, July 16 and July 21, 2002) and four times in the Hawaii Tribune Herald (July 9, July 14, July 16 and July 21, 2002) -with notarized affidavits of such publication received from each newspaper; (4) On July 5, 2002, posted the Notice of Public Hearing, accompanied by copies of Resolution No. 220-02, Draft 2, and two sets of the complete "Manager's Report," including all exhibits attached to the Report, at the Kona Mayor's Office and Kona Council Office for public inspection during county hours of business; (5) Posted the Notice of Public Hearing on the bulletin board of Matsuyama Mart on Mamalahoa Highway 10 days before the hearing date of August 2, 2002; and WHEREAS, pursuant to the requirements of Section 12-10(e), Hawaii County Code, the Notice of Public Hearing explicitly advised all interested parties and owners of assessment units for or against the establishment of the Improvement District that "a protest against making all or part of the proposed improvements or against the methods by which such assessments are to be made, or the inclusion of certain costs therein must be submitted in writing to be considered by the Council," and further directed that such written protests or objections were to be mailed to the County Clerk, Hawaii County Building, 25 Aupuni Street, Hilo, Hawaii 96720 prior to the date of the Public Hearing, or submitted in person at the date and time of the Public Hearing; and WHEREAS, on August 2, 2002 approximately 120 residents of Kona Coastview and Kona Wonderview attended the evening Public Hearing at Kealakehe Intermediate School; and WHEREAS, all citizens present at the August 2, 2002 Public Hearing were invited to offer verbal testimony relating to the Improvement District and to submit written testimony to the Office of the County Clerk for purposes of recordation and further consideration by the County Council; and WHEREAS, at the outset of the Public Hearing, to disclose all costs to be borne by owners of assessment units within the proposed Improvement District, residents were advised by the Legislative Auditor's Office that: (1) The facilities charge (water meter service connection fee) assessed by the Department of Water Supply would be billed separately from the assessments levied upon owners and would be payable upon completion of the Water System Improvement District; (2) Owners of assessment units would be responsible for all costs associated with plumbing and line connection of water meters fronting their properties to dwelling units; and WHEREAS, to answer any questions relating to the Improvement District proposed in Resolution No. 220-02, Draft 2, the following county departmental personnel were present at the Public Hearing: Department of Water Supply Manager Milton Pavao, Deputy Manager Quirino Antonio, DWS Engineer Glenn Ahuna, Fire Chief Darryl Oliveira, Finance Department Treasurer Michael Okumoto, bond counsel attorney Brian T. Hirai, Deputy County Clerk Jay Mende, Legislative Auditor Connie Kiriu and Program/Fiscal Review Auditor Rory Flynn; and WHEREAS, considerable testimony both for and against the proposed Improvement District was heard by the Council on August 2, 2002 and the audio-taped proceedings of the Public Hearing have been subsequently transcribed (attached to this Resolution as "Exhibit B"); and 2 WI~EREAS, at the conclusion of the Public Hearing, Deputy County Clerk Jay Mende announced a tally of written communications received from owners of real property within the Kona Coastview and Kona Wonderview subdivisions and reported a total of four (4) letters in support and fourteen (14) letters in opposition to the proposed Water System Improvement District (which letters are attached to this Resolution as "Exhibit C"); and WI-IEREAS, since the total number of property owners (14) who filed written objections before or at the date and time of the Public Hearing on August 2, 2002 constituted less than fifty-one percent of the total number of owners of assessment units (435) affected by the proposed Improvement District, the Council, in accordance with Sections 12-15(j) and 12-15(k), Hawaii County Code, may proceed to approve the proposed improvement by assessment. NOW, TIFIEREFORE, I3E IT RESOLVED BY TIDE COUNCIL OF TIIE COUNTY OF I~AWAI`I AS FOLLOWS: 1. Certain determinations and findings. In accordance with the provisions of Section 12-18, Hawaii County Code, the Council hereby determines to proceed with the improvements adopted in Council Resolution 220-02, Draft 2, and further described in the "Manager's Report." The Council finds that the establishment of a Water System Improvement District will provide significant benefits to the health, safety and welfare of the residents of the Kona Coastview and Kona Wonderview Subdivisions. The Council finds that the installation of 33 fire hydrants within the Kona Coastview and Kona Wonderview subdivisions as part of the improvements to be made as part of the establishment of the Water System Improvement District, in conjunction with the Kalaoa fire station to be separately constructed within five miles of the Improvement District, will measurably improve the public protection classification for insured homeowners within the Improvement District. BE IT FURTIIER RESOLVED, as follows: 1. Creation, definition and establishment of the extent of the Imp~rovernent District. The Council hereby creates, defines, and establishes a Water System Improvement District consisting of all "assessment units" (as such term is defined below) located within Tax Map Key Plat Nos. (3) 7-3-013, -014, -015, -016, -022, -023 and -028 (the "Coastview/Wonderview Subdivisions"), except for TMK No. (3) 7-3-022:001 (a State of Hawaii highway remnant parcel), TMK No. (3)7-3-022:002 (a parcel located along Mamalahoa Highway with no frontage along Ahikawa Street within the Kona Coastview Subdivision), and TMK Nos. (3) 7-3-022:046 and (3) 7-3-023:088, designated for acquisition as reservoir sites for the Improvement District. The owners of assessment units within the Improvement District are those persons identified in the "Proposed Assessment Roll" ("Exhibit D") attached to this resolution. The Council acknowledges that changes in property ownership and the recordation of ownership of assessment units by the County of Hawaii Real Property Tax Division may be subject to change and/or revision prior to the passage of a bond ordinance to finance the Improvement District. At that time, a final Assessment Roll of owners of assessment units within the Improvement District shall be compiled by the Department of Water Supply. 3 2. Kind, extent and general details of the proposed imQroventent. The improvements shall consist of a public water system (the "Water System") consistent with applicable Department of Water Supply standards, which shall be owned, operated, and maintained by the Department of Water Supply. The construction and installation of the Water System shall include the removal of all existing meters and laterals servicing residents of the Improvement District, and the installation of meters for each currently existing assessment unit within the Improvement District. 3. De cription of land(sLto be acquired. The construction and installation of the Water System shall require the acquisition of the following parcels of land, each to be used for the construction of a 100,000-gallon reservoir: (a) Undeveloped parcel of land, elevation 1,675 foot, Tax Map Key No. (3) 7-3- 022:046, consisting of .4197 acres, owned by Donald W. Judd, D. Wayne Judd and Nanette Judd; current assessed value of $73,600. (b) Undeveloped parcel of land, elevation 1,140 feet, Tax Map Key No. (3) 7-3- 023:088, consisting of .4041 acres, owned by Shinobu Sato and Joan H. Sato, current assessed value of $72,900. The Department of Water Supply is hereby directed to proceed with negotiations to acquire the above-mentioned parcels of land. 4. Part or proportion of the cost of the improvement which is to be borne by the Cozen .The total costs of the design, instruction and installation of the Water System, including the acquisition of the parcels described in the preceding section (collectively, the "Project Costs"), is estimated to be $4.6 million, which is anticipated to be financed by: (a) a grant from the U.S. Department of Agriculture Rural Utilities Service ("USDA/RUS") in the amount of $1,823,600 to be applied against the Project Costs; and (b) a loan to the County of Hawaii from the USDA/RUS in the amount of $2,776,400, which loan shall be repaid out of the proceeds of assessments to be assessed to the owners of assessment units within the Improvement District. The County of Hawaii shall bear the customary operating costs of loan management by its Department ofFinance-Treasury Division for the 35-year duration of the Improvement District bond. These costs will be partially offset by charging a monthly collection fee as specified in Chapter 12, Hawaii County Code. A prepayment penalty for early payoffs and out-of-pocket transaction costs associated with property transfers will also be assessed. 5. Description of the Assessment Unit and Method of Assessment. "Assessment unit" for purposes of the Improvement District shall mean a duly subdivided parcel of land or condominium unit bearing a unique tax map key number. 4 The Council finds that Resolution 220-02, Draft 2, failed to deduct the two parcels identified in Section 3 above for acquisition as reservoir sites from the total count of assessment units subject to assessment within the Improvement District. Accordingly, the adjusted estimated maximum number of assessment units within the Improvement District is reduced from 437 to 435, consisting of 412 parcels of land and 23 condominium units. As used in this Resolution, "Net Project Costs" means the Project Costs, less any grants which reduce the actual costs of the Water System to the County. By way of example, assuming the Project Costs to be $4,600,000, and further assuming aUSDA/RUS grant of $1,823,600 to be applied against the Project Costs, the Net Project Costs would be $2,776,400. Each assessment unit existing as of the date that assessments begin to accrue on assessment units within the Improvement District (the "Commencement Date") shall be subject to an assessment calculated by dividing the Net Project Costs by the number of assessment units within the Improvement District as of the Commencement Date. The Council finds that, assuming Net Project Costs of $2,776,400, the anticipated assessment per assessment unit ($2,776,400 divided by 435) will be $6,382.53. 6. Materials to be used. The materials to be used in the construction and installation of the Water System are set forth in the Manager's Report, which is incorporated herein by reference, and include, without limitation, the following: i. 15,000 lineal feet 6-inch ductile iron pipeline; ii. 9,200 lineal feet 8-inch ductile iron pipeline; iii. Three (3) pressure reducing valves (PRV); iv. Thirty-three (33) fire hydrants; v. 219 Type "C" service laterals; and vi. Two (2) 100,000 gallon concrete reservoirs. 7. Directions to the Manager, I2epartment of Water Sully. In accordance with Section 12-24, Hawaii County Code, the bid process for the engineering, design and construction of the improvements shall be administered by the Department of Water Supply in accordance with the state procurement code. Bid specifications shall contain provisions specifying that the award of the contract(s) shall not occur until the necessary funds for construction are available upon adoption of an Improvement District bond ordinance by the County of Hawaii and subsequent USDA/RUS grant/loan closing. In accordance with Section 12-21, Hawaii County Code, the Manager is directed to acquire the two lots for reservoir sites identified in the Manager's Report by deed or voluntary conveyance from the owners thereof before final award of the contract. The Department of Water Supply may, at its option, and in the name of the County cause condemnation proceedings to be brought to acquire the land. After the filing of the petition in such proceedings, the final award of the contract may be made. If the cost of acquiring such land exceeds the estimate therefor, the Council may provide for the excess cost by general appropriation. 5 8. Special Community Considerations. In consideration of community concerns and testimony heard at the Public Hearing on August 2, 2002, the Council directs the Manager to seek the guidance and assistance of the Kalaoa Water Company, Matsumoto Water Company and all other interested residents in order to identify all nonconforming consumer lines presently servicing customers within the Improvement District and to assure the maintenance of uninterrupted water delivery service during construction of the water system improvements. The Council directs the Manager, Department of Water Supply, and the Director of Public Works to collaboratively plan and alleviate ingress/egress traffic concerns for the residents of Kona Coastview and Kona Wonderview during construction of the water system improvements. 9. Effective Date• Transmittal of Resolution. This Resolution shall take effect immediately upon adoption thereof. Following such adoption, the Clerk of the County of Hawaii shall transmit copies of this Resolution to Mayor Harry Kim; Finance Director William Takaba; Corporation Counsel Lincoln Ashida; Real Property Tax Division Tax Administrator Gary M. Kiyota; Department of Water Supply Manager Milton D. Pavao; Director of Public Works Dennis Lee; Water Board Chair John Tolmie; Lorraine P. Shin, Hawaii State Director, USDA Rural Development; Brian T. Hirai and Andrew W. Char, McCorriston Miller, Mukai MacKinnon LLP, bond counsel; Al Konishi, County Clerk; and Constance R. Kiriu, Legislative Auditor. Dated at ~,na ,Hawaii this 25th day of Se~terrib r , 2002. INTR LICE I~: COUN IL EMBER, C LINTY OF HAWAII JCT/rf COUNTY COUNCIL ROLL CALL VOTE County of Hawaii AYES NOES ABS EX Hilo, Hawaii ARAKAKI X CHUNG X i I hereby certify that the foregoing RESOLUTION was by ELARIONOFF X ~ The vote indicated to the right hereof adopted by the COUNCI L of the JACOBSON County of Hawaii on ~pzr~ t Prnh c~ r ~ n n 2 X LEITHEAD-TODD X PISICCHlO ATTEST: SAFARIK ' . ~ ~ TYLER X r:~'--`~' YAGONG X 7 0 2 0 ~ Reference:- ~_]~Q~ F~ - 2 6 4 ~~/..:i { ~ ~d COUNTY CL RK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. 6 IIAWAI`I COUNTY COUNCIL I®TO~IC~ O~ PUBLIC ~I~AIZING Friday, August 2, 2002, 6:00 p.m. Kealakehe Intermediate School 74-5062 Onipaa Street, Kailua-Kona, Hawaii WATER SYSTEM IMPROVEMENT DISTRICT KONA COASTVIEW and KONA WONDERVIEW SUBDIVISIONS, NORT~9 KONA, HAWAII TMK Plat Nos. (3)7-3-13, -014, -015, -016, -022, -023, -028 TO THE OWNERS OF LANDS TO BE ASSESSED AND/OR ACQUIRED WITHIN SAID IMPROVEMENT DISTRICT AND TO ALL PERSONS INTERESTED GENERALLY: Pursuant to Resolution No. 220-02, adopted on June 19, 2002, the Hawaii County Council proposes to assess the properties within said Improvement District as provided'by Chapter 12, Hawaii County Code, and, pursuant to the requirements of §12-10(e), Hawaii County Code, notice is hereby given of the following: 1. General Details of Proposed Improvements This Improvement District is being initiated by the Hawaii County Council for the design and installation of a water delivery system meeting Hawaii County Department of Water Supply standards for the Kona Coastview and Kona Wonderview subdivisions. After completion, the system will be conveyed to the Department of Water Supply for operation and maintenance. This Improvement District consists of 414 existing lots and an additional 23 condominium units within the Kona Coastview and Kona Wonderview subdivisions contained in Tax Map Key Plat Nos. 7-3-13, -14, -15, -16, -22, -23 and -28. The special improvements shall include the removal of all existing meters and laterals within the improvement district, and the installation of water meters for each of the 437 assessed units within the improvement district. The Improvement District includes acquisition of two reservoir sites from TMK Nos. (3)7-3-022:046 and (3) 7-3-023:088. The water system improvements will include, but not be limited to: • 15,000 lineal feet 6-inch ductile iron pipeline; • 9,200 lineal feet 8-inch ductile iron pipeline; • Three (3) pressure reducing valves (PRV); • Thirty-three (33) fire hydrants; • 219 Type "C" service laterals; and • Two (2) 100,000 gallon concrete reservoirs. The total estimated cost of the Improvement District is $4.6 million. Assuming the project costs to be the Manager's estimate thereof, or $4.6 million, and further assuming a U.S.D.A. Rural Utilities Service grant in the amount of $1,823,600 to be applied against the project costs, the net project costs would be $2,776,400. Each assessment unit shall be subject to an equal assessment consisting of net project costs divided by the 437 assessment units within the Improvement District. Assuming net project costs of $2,776,400, the anticipated assessment per assessed owner will be approximately $6,353.00. The County of Hawaii shall adopt a general obligation bond and administer the collection of funds from assessed owners to service the debt. II~. A 2. Testimony, Protests and Objections At the Public Hearing to be held on August 2, 2002 the testimony of all interested persons and owners of assessment units for or against the establishment of the Improvement District, the extent of the Improvement District, and the levy of the special assessment shall be heard. This Public Notice hereby advises all interested parties that, in accordance with ~ 12-10(E) Hawaii County Code a protest against making all or part of the proposed improvements or against the methods by which such assessments are to be made or the inclusion of certain costs therein must be submitted in writing to be considered by the Council Such written protests or objections may be mailed to: County Clerk, County of Hawaii, 25 Aupuni Street, Hilo, Hawaii 96720 prior to the date of the Public Hearing, or such written protest may be submitted in persori at the date and time of the Public Hearing. 3. Time and Place of Public Hearing A Public Hearing will be held before the Hawaii County Council on Friday, August 2, 2002 at 6:00 p.m. at Kealakehe Intermediate School at 74-5062 Onipaa Street, Kailua-Kona, Hawaii to consider the matter of the Improvement District. Please examine Council Resolution No. 220-02, Draft 2, a Resolution for the Establishment of a Council- Initiated Water System Improvement District for the Kona Coastview and Kona Wonderview Subdivisions. Please also examine the Water Manager's Report (Communication No. 652) dated June 4, 2002, including Exhibits "A" through "H", for this Improvement District for yourself and your~property, and report any errors to the Manager of the Department of Water Supply, County of Hawaii, prior to or at the Public Hearing. The Manager's Report may be seen and inspected at: (1) the Office of the County Clerk, Hawai` i County Building, 25 Aupuni Street, Hilo, Hawaii; (2) the Kona Councilmembers' Office, 77-6399 Nalani Street, Suite 104, Kailua-Kona, Hawaii; and (3) the Office of the Mayor, Hanama Place, 75-5706 Kuakini Highway, Suite 103, Kailua-Kona, Hawaii. All interested persons are invited to attend and they shall be afforded the opportunity to be heard. The meeting place is accessible for persons with physical disabilities. Persons who need special accommodations to attend this Public Hearing should call 961-8255 by July 30, 2002. Persons using TDDs may call 961- 8521. BY AUTHORITY OF THE HAWAII COUNTY COUNCIL COUNTY CLERK (Hawai`i Tribune Herald -July 9, July 14, July 16, July 21, 2002) (West Hawaii Today -July 9, July 14, July 16, July 21, 2002) -2- PUBLIC HEARING OF THE HAWAII COUNTY COUNCIL Resolution 220-02 Water System Improvement District Kona Coastview and Kona Wonderview Subdivisions North Kona, Hawaii Kailua-Kona, Hawaii Friday, August 2, 2002 CALL TO ORDER: A public hearing to consider the Resolution 220-02, which proposes the Establishment of a Water System Improvement District for the Kona Coastview and Kona Wonderview Subdivisions, was called to order by Vice-Chairman J. Curtis Tyler, III, at 6:10 p.m., at Kealakehe Intermediate School Cafeteria, Kailua-Kona, Hawaii. ATTENDANCE: Present: Councilmember Leningrad Elarionoff Councilmember Nancy Pisicchio Vice Chair J. Curtis Tyler, III Absent & Excused: Councilmember Aaron S.Y. Chung Councilmember Julie Jacobson Councilmember Bobby Jean Leithead-Todd Councilmember Gary Safarik Councilmember Dominic Yagong Council Chair James Y. Arakaki Also Present: Jay Mende, Deputy County Clerk Constance R. Kiriu, Legislative Auditor Rory Flynn, Fiscal Program Review Auditor, Ofc. of the Leg. Aud. Glenn Ahuna, Civil Engineer V, Dept. of Water Supply Milton Pavao, Manager, Dept. of Water Supply Antonio Quirino, Deputy Manager, Dept. of Water Supply Darryl Oliveira, Chief, Fire Dept. Michael Okumoto, Treasurer, Dept. of Finance Alfred Robello, Executive Assistant to Council Chairman Glynis Yamada, Council Services Supervisor Donna Lynn Leonard, Council Services Assistant II (There were approximately 200 people in attendance.) Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Aloha and welcome. I'd like to call this public hearing to order and welcome everyone here-and, especially, thank you for coming out on a Friday evening just before the weekend. Let's hope that your "Aloha Friday" will have lots of aloha this evening, too. My name is Curtis Tyler as, I think, most of you know. And I'll be Chairing the meeting this evening in the absence of Mr. Arakaki, who had previous engagements. And I would like to introduce-beginning to my right, Nancy Pisicchio, who probably won't be saying too much this evening. She's lost her voice. I don't know whether that's good or bad but, in any case, she's informed me that's the situation. And to my left, Councilmember Leningrad Elarionoff--nice to have you here-both of you here. Thank you for coming out this evening. PURPOSE OF The purpose of the Public Hearing, this evening, is to hear and receive your oral THE HEARING: and written testimony. Afterwards, in accordance with Section 12-17 of the Hawaii County Code, the Council shall consider any protest, objections, or suggestions which may have been made or filed and whether sufficient valid protest have been filed to compel it-the Council-to abandon any part or all of the proposed improvement. If the Council still has jurisdiction to continue, it shall then proceed determining whether or not the proposed improvement shall be made as proposed or made with modifications. I want to point out, this evening, that the Council will not be taking any action at this hearing. Obviously, we only have three Members, but even if we had all nine Members here, we would not be taking any action. Our role, this evening, is to listen to you and to hear your comments regarding this proposal. Pursuant to the Council adoption of Resolution 220-02, any statements in opposition to the Improvement District must be submitted by owners, in writing, by the close of the hearing this evening, as set forth in Chapter 12 of the Hawaii County Code. I want to note for the record, as well-and for those of you who might not have been aware of it-that public notice requirements were fulfilled by: Number one, newspaper publication-four publications in two newspapers each with notarized affidavits of publication received from the West Hawaii Today and the Hawaii Tribune-Herald. Number two, posting of notices in the Kona Council Office, the Kona Mayor's Office, the Hawaii County Building, and Matsuyama Mart on Mamalahoa Highway. And, Number three, a certified mailing of public notice including the full text of Page 2 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 Council Resolution 220-02-which I previously referred to-was sent to each property owner within the proposed Improvement District. At this time, before we talk about the meeting protocol-and have a brief presentation-and then receive your testimony, I want to introduce the Departmental staff and Bond Counsel, who are present this evening to answer any questions that might arise, to the best of their ability, regarding this proposed project. First of all, I would like to introduce from the Department of Water Supply, Mr. Milton Pavao-and if you'd just raise your hand or stand up, whatever you wish to do-he's in the back, Mr. Quirino Antonio, Mr. Glenn Ahuna; and from the County Water Board, Commissioner Sandra Scarr-Commissioner, thank you for being here. Also, we have this evening, Mr. Michael Okumoto, our Treasurer of the Finance Department in the County of Hawaii; Fire Chief Darryl Oliveira; Legislative Auditor, Connie Kiriu; and Fiscal Program Review Auditor, Rory Flynn; Mr. Brian T. Hirai, our Bond Counsel from Oahu-thank you. Mr. Jay Mende, our Deputy County Clerk; and I also want to acknowledge and thank the Council staff-Alfred-let's see-and Glynis and Donna. Are there other staff members that I missed here? That's it? Thank you for being here to facilitate the receipt of information and also the distribution of it this evening. Although he's not here this evening, I want to, again, personally acknowledge Mayor Kim, Mayor Harry Kim, our Mayor, for his role in facilitating the integration and collaboration and cooperation, not only between the Legislative Branch, which we represent this evening, but also the Administrative or Executive Branch, of the County being represented by individuals here. Mayor Kim played a major role, in my estimation, in really bringing all the parts together to make it flow best. And to also involve all the key players, so we could present what we presented the last time in this location, and what we hope will be pleasing to you, and we hope to hear from you this evening. Now, I'd just like to talk a little bit about the meeting protocol-it goes without saying, but I'd just to just reiterate it. I'd like to request that each member of the public who wishes to speak, identify yourselves by name, address, and indicate if you are a property owner, tenant, or represent some other interest. Number two, I would request that each speaker try to limit your testimony to three-minutes-Mr. Robello, Alfred, over there will be timing it, so he can keep my on track as well-in order to allow everyone who wants a Page 3 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 chance to speak, to speak within the time limit that we have for this building. Number three, is I'd like each speaker to indicate, if you have a question or questions regarding the Improvement District and to frame your question and allow an appropriate County staff person to respond briefly-if you do have a question. You don't have to have a question, but if you do. Also, I want to let you know that this meeting place, as noticed in the public notice, has been reserved for a specific period of time and the hearing will conclude not later than 9 p.m. And, finally, again, it goes without saying-let's have aloha kekahi i kekahi-respect, civility and aloha between and among all of us. At this time, I'd to call Mr. Rory Flynn, the man behind the scenes, who makes it possible for me to even give you any information because he's the staff member who's worked most closely on this. Mr. Flynn, are you here? He's going to talk about the project and give you a brief legislative summary. And Mr. Flynn-it's just going to be brief. So, thank you, sir. Good evening. (At this time, Mr. Rory Flynn, Fiscal/Program Auditor, Office of the Legislative Auditor, came forward to address the Members of the Council.) MR. FLYNN: Thanks very much. I'm going to try to keep this very brief because we're here, tonight, to hear from you. I wanted to point out that, in addition to some of the materials you picked up when you came in, one of the things you may not have seen is the full text of the "Water Manager's Report", which was requested by the Council, actually, two years ago-as the basis of information to bring about this project. In addition-and this has been something that was sent to you in your public notice-there're a number of attached documents and exhibits to that Report. Your public notice lets you know that you can review these for public inspection at the Kona Mayor's Office. Also, the Kona Council Office. For those of you who have not done so and who wish to see all of this-and one of the, probably, the biggest thing you're going to see in there is the Department of Water Supply's application for Federal funding to support this project-we brought two of those black binders over there. Page 4 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 And, if any of you want to look at those materials, please feel welcome throughout the evening. What I wanted to do, briefly, because to put this in plain language, I think for most of you here tonight, this is a "pocketbook" issue. And it's also an issue about the security and long-term future of your water distribution throughout your neighborhoods. But I wanted to try to summarize, in the plainest language possible, what this means as presently proposed, in terms of the expenses that you would bear and when-and how, that timetable shapes up, because, I think, that's a good beginning point for common understanding about this. The overall cost of the project, as projected by the Department of Water Supply, is $4.6 million. That is to provide water to some X37 individual lots and to include those condominium units that exist within your subdivisions. The action taken by the Council at its meeting in June here, in Kona, was a resolution to establish an Improvement District. And that action specifies that it is the intent to finance this project using a combined Federal grant and loan from the U. S. Department of Agriculture. Of the project cost, roughly, $1.8 million would be outright Federal grant money, leaving $2.8 million to be financed. And that would be done through a 35-year Federal loan. Presently, the USDA interest rate on their Rural Utilities Service Loan Program is 4.75%. It's important to note that that is a quote of that interest rate as of today. It could go higher by the time this project reaches the stage of a "bond ordinance", at which point the loan would be closed. That's something to take into consideration in terms of, sort of, your community's decision about all this. It should be understood that for those of you who were here in March, when we last met with you, we indicated that the Department of Water Supply had applied for this grant loan package. That money has now been secured and encumbered on behalf of this project. That money represents an annual allocation that comes to the State of Hawaii from Washington. This year, basically, virtually, the entire allocation to the State of Hawaii, which includes Pacific Islands, like, Guam, Tinian, and Saipan, has been, basically, earmarked for this project alone. If, for any reason, this project is not moved forward and the Department of Water Supply and the County were to reapply in any upcoming fiscal year, Page 5 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 there would be no necessary guarantee that they would succeed in getting that amount of money. So you need to know that. The second thing I wanted to discuss, briefly, is, like, I said, what this means for your pocketbook, as presently packaged. The next steps, if the Council proceeds with this, is, upon hearing your comments tonight, to adopt a "Resolution of Determination" to proceed with the project; at which point, the Department of Water Supply would proceed with the engineering and site surveying work throughout your subdivisions to bring us to the point of getting bid documents to then-basically, have hard costs in hand-to proceed with contracting for the project. It's expected that, if all that proceeds as fast as possible, we would be looking at adopting a "Bond Assessment Ordinance" in June of 2003, which is, basically, 11 months from now. And, at that point, we would be looking at whatever the Federal USDA interest rate was, at that time, and the following action would be to close that USDA Rural Utility Service loan. At that point, as the project is presently estimated to cost, we would expect the monthly charge-in addition to your regular water bill-would be $30 a month. This would be a 35-year loan, so we're looking at a long period of time. There would be an additional cost for those of you who don't, presently, have Department of Water Supply meters of a "Facilities Hookup Charge". That charge, which is presently $940 a month is, also, something that could be raised, depending on actions by the Water Commission-as far as its rate schedule. Yeah? (Note: A speaker from the panel stated that it would be $940 period.) I'm sorry-900-yeah, excuse me. That's cone-time facilities hookup charge of $940. Excuse me. What I'm trying to get at here, is that, in anticipating if this project moves forward, what is it going to do to your pocketbook? The monthly assessment which, I guess, is anticipated to be $30 a month, would not be triggered until, at least, a year from now. The facilities charge would not come due until the system is in place and construction is complete, which would be-I think, Glenn could agree with me-at least, more than two years from now. There would be an additional cost that many of you would bear for running a line from that County water meter, fronting your property, to your home. And depending on what kind of rock or landscaping or Page 6 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 driveway issues or setback you have-obviously, that's going to vary from home to home. So, if we were to look at tonight and project two years from now, the cost that you would be looking at, would mean your facilities hookup charge for those of you who-as I say, there are 119 property owners within Coastview and Wonderview who would be exempted from that charge based upon prior payment. But, for all others, you would pay that facilities hookup charge and whatever it costs you to run a line to your house. And I wanted to get this information out in front, so you could anticipate, if this goes forward, what this is going to cost me in the next two years. What costs I have to anticipate? So, having said that, I'll stop, and Mr. Tyler can resume the testimony. Thank you. ACTING CHR. TYLER: Thank you very much, Mr. Flynn. I appreciate, again, all your hard work and your disclosure this evening. I think it's very important that you understand what the costs are. At this time, I'd like to begin the public testimony, and I thank you for your patience. Again, for those of you who came in late and might not have heard me, if you have not signed up but you do wish to present a statement this evening or ask a question, if you would please go and speak with Mr. Robello and our Deputy Clerk, Mr. Mende. And if you don't have such a question or comment but you do later, I will, at the end-right now, we have eight persons wishing to speak-at the end of that time, I will, again, ask for public testimony. And if, at that time a question or comment arises that's not with you right now, you will be given the opportunity to present your question or your testimony. Our first speaker this evening is Elaine Coats. And Elaine Coats resides at Kiekie. She is representing herself and she's speaking in opposition. Good evening, Ms. Coats. Thank you for coming. You may just sit there- ELAINE COATS: Can I sit here? ACTING CHR. TYLER: Yes, please. And while Ms. Coats is sitting down, if you have any cell phones or that kind of thing, if you put them on the silent mode, that'll be helpful. Thank you. Go ahead, please. Thank you for coming. MS. COATS: Good evening. Page 7 . 1-Iawai`i County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Good evening. MS. COATS: Can you hear me? ACTING CHR. TYLER: Yes. Just bring it close to you. MS. COATS: Yeah. My reasons are this. I've lived there 16 years and I have paid my County water bill every two months. When I bought the home-before I bought the home, I was told "Be sure you have County water because the area past you, south of you, has water problems". So that's what I did. And I did check to see that I had a County water meter, and I did. And the water comes-my meter's in front of my neighbors house. There's about four meters there. All of my neighbors' meters are grouped together. All of us have County water. And it all is galvanized to the house. There's no plastic lines above the ground. And we really feel-and Ifeel-that I've paid for this improvement when I bought my home. And I just feel that asking me to pay for-I have no problem with my neighbor's needing water-they do. The plastic lines break all the time. I understand their problem. But, that's not my problem. I feel that I've already addressed my problem by buying a home with correct water to my home and galvanized under the street. So, I am looking to be exempt from this problem. And I live on-close to Kona Highlands. In fact, the neighbor-the two neighbors on the end of our street are hooked to Highland meters. So, there're only four of us in that street that are asking to be exempt from this problem of theirs. Okay? Thanks. ACTING CHR. TYLER: Thank you very much. Councilmembers, any questions for Ms. Coats. Thank you so much. I appreciate you being here this evening. Our next speaker, Mr. Larry Tansey-I hope I pronounced that correctly-a resident of Ho`okumu and speaking in opposition. Good evening, Mr. Tansey. Did I pronounce your last name correctly, sir? LARRY TANSEY: Yep. ACTING CHR. TYLER: Thank you. Thank you for being here. MR. TANSEY: I have similar concerns that I've been there-most people-I don't-people remember the Jolly Green Giant. I've lived Page 8 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 there for over 20 years I've had that property-did my homework and have paid for it. And as a single parent, I'm being priced out of my own neighborhood-every bill every month goes up-and all that kind of stuff. I think the Hurricane Relief money that was extorted from me should come back and pay for this. And I'm empathetic to people needing water but when I came here in 1979-I bought my house early eighties-I did my homework on water and I have a County meter. And I just, at a point, where Ihave--that I want to be-invest any more money in this subdivision. We're not afforded sidewalks. We have nobody comes and-really, doesn't need maintenance-our roads are in bad shape. So, for me, it's a huge burden to do it. And I'm empathetic to, like, the fire hydrants and other people having needs. But I, too, like this lady, have been paying my bills and working here for over 20 years. And I feel like I've contributed to that and paid for that- and that's just where I come from. It's, really, a struggle for me and I don't believe that you're going to pull this off for what you're saying because I've lived there so long-I know how many pipes are buried under my own driveway. Ihave easements I've granted on my property for people and other problems. And, unlike some other people here who have a small box under my house full of PBC pipes and fittings-I have repaired, at least, 30 peoples' other waterlines, when they've broken just because the waters running. And I' 11 go up and find the meter, turn it off, fix the pipe type thing. So, I appreciate all-everybody's-all the hard work. I know that there's a lot of homework into this. I've worked at the hospital for over 20 years and we've worked really hard to make that better. I know how hard it is. But, for me, it's a lot of money-even though it's $30 a month. You see, I don't think that's going to work-that's going to be more than that-from when I did the math, it doesn't come $30-even at 30 years. I have eight more years of house payments and I'll be-I've worked really hard for what I have and I take really nice care of my house. My children police our neighborhood. We pick up the rubbish from our house all the way over to the bus stop. And so, I guess, that's where I'm at. It's just a real personal hardship for me. ACTING CHR. TYLER: Thank you for the service to your community. Excuse me, Mr. Tansey, Mr.-Councilmember Leningrad Elarionoff, has a question or comment. Page 9 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. ELARIONOFF: The first lady gave us some idea about her waterline. This is from her house, where her water meter is-what's that in relationship to yours? MR. TANSEY: Yeah. I live at the very top of the subdivision, on Ho`okumu Street. So my meter comes from the back of the highway- ACTING CHR. TYLER: The makai side of the highway, right? MR. TANSEY: Yeah. ACTING CHR. TYLER: Behind your house? MR. TANSEY: Yeah. ACTING CHR. TYLER: Is that right? Yeah. MR. TANSEY: Right. So that's where my meter- MR. ELARIONOFF: Okay. Thank you. ACTING CHR. TYLER: Thank you. And just for the record, Mr. Tansey, you own-you're the property owner; and also, Ms. Coats- you're the property owner? (Note: They responded "yes".) Thank you very much. All right, our next speaker is Mr. Keith King. Mr. King is a resident of Ahikawa Street and he is speaking this even-representing himself and speaking in support. Good evening, Mr. King. KEITH KING: Good evening. I've brought you some prepared testimony (SEE COMM. 652.14) that I won't bore you with but I'll give to you before Ileave-how's that? ACTING CHR. TYLER: That'll be fine. I appreciate that. MR. KING: First of all, thank you for being here, unlike past years where the Councilmembers tended to hide in Chambers. I really do appreciate it. ACTING CHR. TYLER: You're welcome. MR. KING: This has been an interesting exercise because it's the first time in this community, in over 20 years, that I've seen various government entities come together and try and consider what the residents want and try and do something about it. That's impressive. And I thank Page 10 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 each and every individual that had a piece of this pie-from the Department of Ag. to the Bond attorneys, Department of Water Supply- it's refreshing. And I hope that's the way government's going to continue in this County. Now, that said, I am in favor. I support this thing. Will it be a hardship? Yes. It's not going to be easy for anybody in this room. It's going to be a hardship for every one of us. Who, in the horrible hell would willingly pay $30 more a month for something we already have? Well, you got to step back and take a look at what you're going to wind up with. And you're not going to have any further assessments on down the road. You're not going to have your insurance company telling you we're not going to insure you anymore because there's no fire fighting capability in your neighborhood. You're not going to see houses burned to the ground-like I've seen happen three times in my neighborhood. So, I support this resolution. It's not going to be easy. I'm on fixed income. I'm retarded, not retired-`cause I don't draw the check, yet. I do have a major problem with the resolution, as written, and with the Department of Water Supply policies-that is that residents are being assessed for County fire fighting capability. It's not the residents' responsibility, folks. It's the responsibility of the entire County. You don't believe me? Take a look at what happened in Hawaiian Paradise Park. And the Mayor and I have talked about this. We've agreed to disagree. The line was put in by the County at no assessments to the individuals-fire hydrants were put in. No assessments to the individuals. Why? Because there was a fire station at the end of the road. Fine. We got a portable station in Palisades-put it at the end of my street, run the damn waterline-leave me alone. C'mon. Don't give me this kind of answer, Mayor-and he knows how I feel about this. Now, I also understand Harry's deep abiding sense of fairness between East side and West side. But I was absolutely livid today when I realized on Wednesday-there was an article, a Viewpoint article in the paper, pointing out that the Department of Water Supply's going to replace an entire water system. And I talked to Glenn, this evening, about this-and Milton. And I now understand that that is already a County system. If these two developments had a County system and something happens to it-it'll be replaced, at no cost, to the residents-and people should understand that. This is a one-time shot with this deal. Once we pay for it, that's the end of it. Page 11 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 But I still have a real serious problem with the residents being assessed for fire hydrants, reserve capacity-and those things that are incident to fire fighting. If we build a new fire station-are the residents going to be assessed for that? No. Why are they assessed for the hydrants? You put a fire hydrant in front of my house and the Fire Department does not come, it's against the law, forme, to hook up to that hydrant and save my house. So, whose hydrant is it? It's not mine. I can't use it. And I think we need to take a serious look at, whether or not, the County in its entirety-should be sharing in the fire fighting cost portion of this system. Nobody in our neighborhood's looking for a free ride. We just want to be treated fairly. Any questions? ACTING CHR. TYLER: Yeah, she can't talk so-(Note: At this time, due to Ms. Pisicchio's voice loss, she whispered a question or comment to Acting Chair Tyler, to address Mr. Tansey.) Okay, you want me to address that to the Department of Water Supply- MR. TANSEY: And we still don't know if it's a good thing or a bad thing-do we, Nancy? ACTING CHR. TYLER: Councilmember Pisicchio has a question relating to Mr. King's concern about the payment, by the residents, for fire fighting capabilities. Does anyone wish to answer that question-either from the Department of Water Supply or from the Fire-Hawaii County Fire Department? Or just comment on it? MR. TANSEY: I recognize that this is something that's probably going to have to be researched, Curtis. MS. PISICCHIO: What was the Mayor's justification when you talked to him? MR. TANSEY: Because there was a fire sta-a pre-existing fire station at the end of the road. The line was not run for the benefit of the residents. That was a peripheral benefit, so they were able to hookup for the facilities charge only. And I'm going-"Wait, a minute". ACTING CHR. TYLER: I'm sorry, I misunderstood the point. I thought you were talking about why they're paying for the hydrants. I didn't realize you were talking about Hawaiian Paradise Park. MR. TANSEY: Well, the two are interrelated, Curtis, because the County paid for an entire system in Hawaiian Paradise Park. Page 12 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Well, it's just a system to the fire station- MR. TANSEY: So, therefore, indirectly, everybody in this room helped subsidize that but nobody's going to help us with ours. That's not fair. ACTING CHR. TYLER: Okay. Thank you. Yes, Mr. Elarionoff has a question and comment, sir. MR. ELARIONOFF: Yeah. I'm curious right now-on your stance, anyway. Will this thing cause your subdivision to split or have animosity against each other? I see where you said that you and the Mayor agreed- or you and somebody agreed to disagree-but can you and your neighbors work that out, too, to agree to disagree and work it out? Or is this going to create some problems? MR. TANSEY: I don't know. Are we going to see an East Hawaii County and a West Hawaii County? MR. ELARIONOFF: No, no. I'm just-I'm talking about you-in your own neighborhood. MR. TANSEY: Oh, it's not amatter--this is not something that's-let me try and give you the sense in the neighborhood. And if somebody in the audience disagrees with me, they're welcome to speak up. I sense that even as cheap as we've managed to get this thing down over 28 years, that most people in this audience feel like they're going to be burdened, financially-and I don't know. Maybe you want to ask for show of hands? How many people are going to hurt? How many people are not going to hurt? I don't know. But, no, this water system-I do not see this as an issue of division within our community-if that's what you're asking. MR. ELARIONOFF: Okay. That's my main concern. Yes. MR. TANSEY: Yeah. I don't see that. There are some people that, I think, may have legitimate claims-you've already heard from two of them. Hey, I'm already there. I did my homework. I tried to do it right and now you're going to stick it to me. Well, I don't think we're sticking it to them-the developer stuck it to them. MR. ELARIONOFF: Okay. Thank you. Page 13 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Thank you, Mr. King. All right. Our next speaker this evening is Mr. Chris Rizzi from Loloa--and he is speaking in opposition. Good evening, sir. CHRIS RIZZI: Hi. My name's Chris Rizzi. I live at 73-1221 Loloa Drive. And I bought my home there 15 years ago. And, like, the first two speakers-I did my homework before I moved in. I made sure I had County water. It cost me a little bit extra to get that-there were some other cheaper homes without it. But it was really important, not only to me, but to my bank, that I had County water. So I did get it and I felt really good about it. My house is connected, directly behind me-to about a 75-foot waterline underground to a Highlands meter-where I got my own meter and everything's all set. And my waterline is behind my house, so for me to hook up, I'm going to have to tear up that whole line, go underneath my driveway, go up to the front and connect to something that I don't feel I need. I called the water company and asked them why I needed to be a member of this? And they said it's because it's an Improvement District and it benefits me, directly, not other members of the community. So, I wanted to go down the list and see what my benefits were. And the first one they listed was my insurance rates will go down. I talked to my insurance agent-it does not affect my insurance rates in any way- I'm just as close to the fire hydrant as I need to be. The only thing that would affect my insurance rates is if we put a fire and a--fire station closer. And they said my water service will be better. My water service will be exactly the same. If anything, I haven't had any problems with my water service in 30 years. So, when I hook up, again, my experience has been- usually, when I start running my own lines, unless I pay a top notch plumber-it's going to be my problems that I have hooking up to this system that will leak, instead of the ones I already have. So, if anything, my improvement will be less-my water service will be less. And then the last one that everyone keeps grinding on me is that property values will go up. And, once again, I do not see that as a benefit. I think the only people that benefit when property values go up are people that move or don't live there. If you live there, the only thing that's going to happen is you're going to pay higher taxes from an increased assessment. It's not, really, benefiting me in any possible way. So, I don't feel that as a member-I should be a member of the Improvement District just like the other speakers before me. Page 14 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 Now, I want to go into a little bit about these numbers. Now, these are just things that I've put together. I'm not an accountant and I don't really understand a lot of things. But I do know that-like, an average of $40 a month, the Water Department has collected from my house over the last 30 years-approximately $14,400. And using their last financial statement, although depreciation is usually a percent of revenues, looking at how much they depreciated-was 37% of the revenues that they took in last year-and that is set aside to upgrade and maintain their systems. And, that's about $5,328 that the money that I've put aside-it should have been put aside over the last $14, 400 to upgrade the County system. But then, they claim just like the last guy said-he spoke to the water company, also, that that's only for County systems-not public and private. However, the water's all coming from the same place. It's all going through the County water. Nobody has another wallet there-the monies all being deposited in the same account. They're still getting their money. And I feel that the County should accept responsibility as quickly as they accept payment. The guy mentioned the Happy Homes Subdivision thing-and over in Hilo, that's exactly what's happening. They're getting a whole new system because they've been putting aside money for-to depreciate and fix their system-basically, fixing ours. Now, I'm totally happy with my water system. And I think that if-like, these other people, if it comes down to it and we lose and there's no way you're going to exempt this-the last ditch scenario would be to go ahead and put a water meter in front of my house. And then, if I or a future buyer of my house wants to hook up to that, let him do it. But I'll be very happy to leave my water system where it's at to the County meter I already have-and be exempted from that process. That's it ACTING CHR. TYLER: Thank you. Are there any questions for Mr. Rizzi? Questions? Thank you very much, sir. And, did you have written testimony you wanted to present or not? MR. RIZZI: I did already. ACTING CHR. TYLER: Oh, thank you so much. Okay. Our next speaker is Mark Soma from Ho`okumu Street and he is also speaking in opposition. Good evening, Mr. Soma. Page 15 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MARK W. SOMA: Howdy. ACTING CHR. TYLER: And you're a property owner there? MR. SOMA: Yes, I am. ACTING CHR. TYLER: Thank you. MR. SOMA: Yeah-I'm from 73-4239 Ho`okumu Street, which is right up on the top of the hill. And like the first two speakers we're, basically, in the same position of being asked to pay for something that we already have. Purchasing the home-knowing the water situation within the neighborhood-now in purchasing the home, I assumed all the responsibilities for all the existing infrastructure, including the waterlines. So, I, basically, paid for it. Now, should I pay for something that I already have? It doesn't make sense to any rationale person. Or, can I be reimbursed in the tune of $6,353 for the value of my time and efforts in regards to the homework that was done, the effort that was taken to put in the new lines-waterlines and such? If this is not an option where I cannot be considered "exempt", I'll let the County go through my yard. I' 11 help them dig the ditches-but I just can't afford to pay this fee, at this time. And that's it. ACTING CHR. TYLER: Okay. Thank you very much. Any questions, Councilmembers? Thank you Mr. Soma. Our next speaker is Vanessa Lawson, a resident of Kiekie Street, speaking-wanting to comment this evening. Good evening-and thank you-and you're a property owner? VANESSA I'm a property owner. LAWSON: ACTING CHR. TYLER: Yes, thank you. MS. LAWSON: I live, in fact, directly across from Ms. Coats here, she had spoke earlier. And I've been a resident here for 22 years and I was very fortunate to be able to recently purchase the home that I've been renting. And, of course, one of the things that I was mainly concerned about was the water. And I was informed that I had County water. I have Page 16 I-tawai`i County Council -Public I-tearing, Kailua-Kona, Hawaii August 2, 2002 the galvanized piping--comes in front of my home. My home's located one house from Mahilani Drive. So my meter is, actually, on Mahilani- and it's my neighbor. So I called the Department of Water Supply, I spoke to an acquaintance of mine, who works at the Department of Water Supply-and they both assured me that I had County water and-no, this doesn't concern you as far as switching over to the new system. So, here I am now, three months later and I'm really concerned because this, to me, is micro thinking inside the box. I mean, we have the system in place already-the County system. It works just fine. If it ain't broke, don't fix it for us. So I, actually, believe that the--my neighbors that have the County system already, really, don't need to reinvent the wheel here and be taken off and put on a system that they already have-that exists. So I'd like to seen an amendment for those homeowners. And I'm also a single parent with three kids-and it is a burden for me, also. ACTING CHR. TYLER: Thank you very much. Are there any questions? Thank you very much, Ms. Lawson. Our next speaker this evening is Michael Farm, a resident of Ahikawa. And he also wishes to provide comment this evening. Mr. Fann, good evening, thank you for coming. MICHAEL J. First of all, Curtis, thank you very much for all your effort you've done. And, in FANN: the beginning at the (inaudible) Building down there, when you were warning the Councilmen-you had your hands in the pile already. ACTING CHR. TYLER: You're very welcome. MR. FANN: I appreciate that. I appreciate all you Councilmen tonight and the Mayor-and to get this project going. I appreciate that very much. I've been a resident of Coastview from 1975. Sir, I understand your problem-you're at the top of the hill-you have County water. Well, when we all bought in the Coastview, it was stated, "You're in a substandard subdivision"-that's what you bought into. You were lucky-you're at the top of the hill-you have County water. Page 17 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 There're a lot of people that, below, that don't have County water. They're on the spaghetti system. So, I'm sorry for you on that. To the rest of the people, I've had a house burned to the ground, right in front of my face. And having it-the wind shifted-it would have taken more houses out. There was no water. The waterline was broken-but it's all mended now. So, the water system-we need the water system. It's going to cost money. There's no doubt about it. Time waits for nobody. And the costs are going to go up. What I'd like to see is-I'd like to see the "laterals" cut through. I know Palisades doesn't want to talk to Coastview because we don't quite-but we need the lateral. Of all the hydrants and stuff-if you can't get a truck to the area, like the firemen told me-I've had a house burned down 200 feet away from a fire hydrant. Well, we need that chance. We need the chance-and I think the water system has to go in. The longer you wait, the more it's going to cost. My concerns tonight are-when they do the construction, there's no map on the construction. There're a lot of folks here, right now, their meters may not jive where they're going to put the new meters in. There's going to be additional work putting it in. We understand it. So we need a map-proposed-`cause there is extra cost, just from getting the meter to the house. I think we need to know about the laterals, Curtis. I mean, we need those. Holu Street, up there, has got a barrier on that. That could be brought through. When we do the construction project, if this daes come through, we need to be able to get in and out the kids got to go to school, there's medical emergencies, there's a potential fire hazard-so we need those laterals in. So, you can put all the fire hydrants, all the lines in but, I think, we need to get some other assess-assess down to more fine-tuning. I know this is a cost factor. The water system has to go in. I mean, I just fixed a waterline today-I know what it is. But I would like to see everybody on a mutual agreement that water is water-and if you turn your meter off today and you're going to have ashower--then you realize how important water is. So with that, I'll leave you. Thank you very much. ACTING CHR. TYLER: Hold tight for a second. I want to find out if the Councilmembers have any questions or comments? I'd like to address your comments. Page 18 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 When you talk about "laterals" I was thinking "water laterals'-but you're talking about "roadway connections". MR. FANN: The road. I know Ahikawa is going to have a subdivision at Nana Street. Okay. That's been going on for seven or eight years. I went to that meeting, too. ACTING CHR. TYLER: Yeah. MR. FANN: So--and they're going to put that road through-that goes through at Holoholo. There's one at the top-and Holu is blocked off right now-they had a barrier around there. ACTING CHR. TYLER: I'm going to address your comments, if you like. MR. FANN: Go ahead. ACTING CHR. TYLER: Because I can provide you with an update. MR. FANN: I understand that. ACTING CHR. TYLER: Holoholo Street-some of you have called me regarding this. And I spoke with Mr. Ashikawa, in the not too distant past, and he told me that as soon as he was finished with the project in Kealakekua, which is wrapping up now, he's going to begin seeking the financing and the development and the planning for the properties between Holoholo Street and Nana Street. And, as I think everybody here or most people probably know, the rezoning request that came before the Council, I think it was four years ago, perhaps-four years ago--contains a mandate that he has to provide that connection. He's also going to be providing some land there, so we can move the volunteer fire station, which is now in our community, as I think everybody knows-at the Palisades Rec. Center parking lot-to a permanent location there. In addition, the Holu Street connection that you spoke about-a member of the Hawaii County Fire Department brought this to my attention about-oh, six or eight months ago-and we're working with the Administration as well as the Highway Maintenance Division, and the Hawaii County Fire Department-to-since that is a County road, it has a County hydrant-to have that road upgraded and connected, in the not too distant future. And so, hopefully, that comes as- Page 19 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. FANN: Kauhale is the next one. ACTING CHR. TYLER: Yes. I'm aware of Kauhale. And as, I think, everybody knows, there's some significant grade differences and, after this Holu Street was brought to my attention, I made a trip through all the communities there and noticed Kauhale. I haven't had an opportunity to follow-up as to who owns that property, and I know there're vehicles and other things stored on the property. I'm also aware that some connections between Makalei Estates and Keonelehua University Heights West also have barriers there but they don't access your subdivisions at this time. But I do want to speak about Ili`Ili Street and the connection with Kiekie Street, which also is mandated by ordinance. And we hope that will be-once again, it's really out of the control of the Council, `cause we don't do the financing for them, etcetera. But, the developer told me, after repeated inquiries and pleadings to get this thing connected as soon as possible, we hope that they would be able to do this in two years, etcetera. It's going to be done in stages. And so, it will depend on sales, etcetera. And I forgot to say that Mr. Ashikawa indicated he hoped to start his project, the Holoholo-Nana Project, early next year. The connection of Keo`keo Street, which has been barricaded for some years will probably be the last one to be opened up. And the reason for it is, number one, this street-a huge portion of that street is not owned by the County-has not been dedicated to the County. Furthermore, the site distances at the intersection of Kiekie Street and Ka`iminani Drive is less than ideal. And so, instead of pouring all the traffic through to Kiekie Street, right now, what we want to do is have additional roads in place so that not all the traffic will come out under this less-than-perfect situation. And I believe those are the connections that are being addressed right now. So I hope I've- MR. FANN: Well, you have addressed it but-Mr. Elarionoff, he knows, he's in construction-he knows. But putting in a waterline when there're 4141ots and there's only one road out of Ahikawa and then-up there in Wonderview-they got one road out. And you got to get in-you got to get out. ACTING CHR. TYLER: Absolutely. And I- Page 20 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. FANN: And the road is only 16 feet wide with 5-foot shoulders on each side. So, I'd assume they go down the middle or one side or something but there's no construction plan, yet-and, which should be addressed on where it's going to come together. It's going to, definitely, affect peoples' lives and their system and how that works and-which is important, just for the safety and factor of the community itself. So those addresses-this issue I'm addressing right now. ACTING CHR. TYLER: Absolutely. And I couldn't agree with you more-and this is one of the issues that came up early on in talking with the Department of Water Supply regarding the fact that there are limited streets there. MR. FANN: Okay. There's one other question I had with Mr. Pavao, the last time we were in the meeting about stragglers on the system. It was brought to me back in the Colson(?) meeting down-many years ago- that if you put a system in and that if a subdivision, a small subdivision, came in that was developed later on, that they would be a--called a, quote/unquote, "Ms. (inaudible) Straggler" and that-would they be prorated on that or would they be affected? I mean, we're all paying a certain amount of fee. I'm sure the gentleman said before-as time rolls on, this project is going to increase in interest rate and the price is going to go up. So, the sooner it gets done, the better. We all realize that. But as far as the straggler-will they be prorated? Will they be put into that system or we'd be paid back on that? Or are they just floating on that? ACTING CHR. TYLER: Yes. Mr. Flynn. MR. FLYNN: Yeah. ACTING CHR. TYLER: Are you addressing Mr. Farm's question? MR. FLYNN: Let me answer that question. If- ACTING CHR. TYLER: I think you better use the microphone, Mr. Flynn, since we're recording this. MR. FLYNN: If there's any additional subdivision within Coastview and Wonderview, which is highly unlikely-other than additional condominium units-those units would be added as assessment units within the Improvement District. Page 21 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 And that action will be taken at whatever time that new-again, I'm going to stick to condominium units, `cause that's the only real likelihood-but you've had 23 already and there's no reason to- MR. FANN: I'm a CPR owner so- MR. FLYNN: Okay. For some people, this may be an incentive to seek CPR, and if you've been following some of the actions and discussions of our Planning Department lately, it's becoming increasingly clear that the direction they're moving in is that, for any CPR to be granted, they would expect the requisite infrastructure to include water, at a County standard, to be in place. So, there is that possibility. As one of the actions that the Council took in conjunction with this entire project, was an amendment of our Improvement District Code, Chapter 12, of the Hawaii County Code- specifically, to allow for the additional assessment of any new subdivision to include condominiums. So, presently, we're looking at 437 assessed units, if additional people came on board, they would be added. MR. FANN: All right. Another question that was brought up in the last meeting was that we couldn't prepay this bill in advance-we'd be penalized for it. Is that still on that record, too? In other words, if we want to buy all our meters now-if you gave the price of $6,500-and we went ap there and we paid them all the last meeting, you said we couldn't do that-you'd be penalized that you prepaid the meter. Is that still on the ticket? ACTING CHR. TYLER: Who wants to address that? Mr. Okamoto, our Treasurer? Or Bond Counsel? Or whatever? (At this time, Mr. Mike Okamoto, Treasurer, Department of Finance, came forward to address the Members of the Council.) MR. OKUMOTO: Yeah. We'd assess a prepayment penalty. The Code allows us to go up to 5%. It's for the benefit of the other assessees in that we have to manage this money for 35 years. So, we want to make sure that we can make-because what happens is that we run short-we're going to raise your assessment. So, we want to - MR. FANN: Catch 22. Page 22 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR.OKUMOTO: Yeah. MR. FANN: Yeah. Okay. ACTING CHR. TYLER: Thank you. Okay. Thank you, Mr. Fann. I hope we answered your questions- MR. FANN: Thank you, Curtis, very much for your time and effort. ACTING CHR. TYLER: You're very welcome. Well-you're welcome. And thank you for your patience. I'm sorry you had to lose a home. MR. FANN: Not a problem. ACTING CHR. TYLER: Well, I'm glad it's not now, but it would be for me, I think. Our next speaker this evening is Mr. Allan Robbins (SEE COMM. 652.9). Mr. Robbins is a resident of Loloa Drive and he's speaking with comment as well as opposition. Good evening, Mr. Robbins. Thank you for coming this evening. ALLAN I just, also, wanted to thank you for your efforts and salute your work on BOBBINS: resolving this private water system in Coastview and Wonderview. ACTING CHR. TYLER: You're welcome. MR. BOBBINS: Particularly, I think, the rural development grant is going to offer a value to those that haven't been on County water. As others have pointed out, though, I think there really is a disproportionate issue of benefits with those who have County water, that I would ask be addressed. Those without County water will be getting much more consistent-better delivery of water. They'll be getting, probably, reduction of homeowners insurance because of the proximity to fire hydrants. Now, certainly, safety-it's difficult to see any type of that proportionate benefit to those who currently have County water. I appreciate the offer of a free meter but it's in the category of offering me a new tax number. I appreciate it but I don't really need it. The option, if we could make it, of restating the proposal to exclude those who currently have County water allowing them to opt in by paying a one- time fee for their meter, if they choose to-I think, would be much more equitable and fairer than the current proposal. And I think it would also Page 23 Hawaii County Council -Public Hearing, Kailua-Kona, I-iawai`i August 2, 2002 further cohesiveness within our community and, perhaps, avert some division that you may be hearing already. And the issue-the newspaper said $6,000 for 30 years if it's $30 a month for 30 years, it's more like $10,000. That's six to ten mortgage payments. That's a significant amount to ask people to contribute to the community pot for goodwill without any tangible benefits. And so, I would ask if we could look at restating that-let that be an opt in for those who currently have County water. So, thank you. ACTING CHR. TYLER: Okay. Any que-excuse me, Mr. Robbins. Any questions? I just wanted to ask you acouple---one question. You are on a County water system right now? MR. RO1313INS: That's correct. ACTING CHR. TYLER: Okay. Yeah. And I appreciate your positive comments and you're looking at ways to deal with this-a possible solution-and I thank you very much for that. It means a lot. Our next speaker this evening is Mr. Jeffrey Smith. Mr. Smith is representing himself. He's a resident of Ahikawa Street and he is speaking in support. Good evening, Mr. Smith. JEFFREY SMITH: Good evening and thank you for allowing us the time to talk and to listen. I have a couple of things. I'm still digging the dirt out from my last water leak on Tuesday. And from somebody who has County water and who has been billed for over $1,400 this year for water, I can't wait `til the system is in. I mean, I'm looking forward to it. There is a question on the $30-is that $30 assessment only for that loan or does that include your water consumption as well? Is that an average? ACTING CHR. TYLER: No, it's only for the- MR. SMITH: That's only for the assessment, right? ACTING CHR. TYLER: In addition- MR. SMITH: In addition to your consumption? Page 24 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: In addition to your monthly water consumption bill, it'll be an additional $30. I believe that's---did I misstate that Mr. Flynn? MR. SMITH: `Cause when I was in the last-the last meeting I was at, it was said that an average of $35 or $30 to $35 with your consumption of water is going to be your month-that's what I understood. ACTING CHR. TYLER: I don't recall that but I'm glad we're here and able to straighten it out this evening. Thank you for the question. MR. SMITH: Okay. You've already answered my questions from the streets tv Palisades. But the other issue is the other waterlines that leak on a current-on a continual basis-are eroding the sides of the street. It's a very dangerous place. There are ravines that are three-feet deep on each side of Ahikawa Street, going up and down. ACTING CHR. TYLER: It's from the spaghetti lines? MR. SMITH: From the spaghetti lines leaking-people not fixing them. I, too, have gone and fixed peoples' lines because, thinking it was mine- finding out it's not. Two or three days go by-you got to do something before the entire street erodes. I know my driveway's been eroded out several times and has been torn up several times. So, I just look forward to having it done quickly and as painlessly as possible. So, thank you. ACTING CHR. TYLER: Okay. Thank you. Any questions for Mr. Smith? Well, I just want to acknowledge your work on behalf of fixing those pipes. Thank you. MR. SMITH: Thanks very much. ACTING CHR. TYLER: And all of you-I know there's a whole bunch of you here who have done that and others who helped. It means a lot to see the community cooperating like that. Our next speaker is Manmohan Desai-and the question-I'm sorry, this is not a speaker-it's a question only. A resident of Kuakini Highway- oh, okay-Unit 1-201. And representing Mr. Robert Sampognaro, owner of two empty lots. Mr. Sampognaro lives in California and, as I said, the owner of two empty lots-and he wants me to build a home for them- "he" being Mr. Desai. Page 25 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 His question is: "How does one go about building a home without water? Water hauling on a steep hill is not an option". I don't think anybody can build a home without water. I'm sorry, I don't mean to be flippant, but the question, Mr. Desai, but-Mr. Ahuna. (At this time, Mr. Glenn Ahuna, Engineer V, Department of Public Works, seated at the front table as part of the panel, addressed the Members of the Council.) MR. AHUNA: Well, he would have the option of using a catchment system. They build houses with catchment systems. (Note: Comments were made by members in the audience regarding the above. ) ACTING CHR. TYLER: Okay. Thank you. Thank you for clarifying that forme. Mr. Desai, did we answer your question? Are you here, sir? (Note: A male seated in the audience responded "yes".) ACTING CHR. TYLER: Yes, thank you very much. I appreciate it. Our next speaker-the last one I have signed up-and if any of you have a burning desire to say something or ask a question, rush over to the table and sign up-is Mr. Anthony Marlines, a resident of Loloa Drive, speaking in opposition. Aloha, Mr. Martines, nice to see you. ANTHONY I don't oppose having a water system in the area that you're going to have water MARTINES: system-the spaghetti lines. I don't oppose that. I think you should have a water system. But I oppose digging up my line when it's already a ductile pipe. It's a 60-year guarantee ductile line. And it's coming from the-where do you call that other subdivision-Mahilani or-yeah. Okay. I digged the line-I just talked to Milton-and Milton told me that we're going to dig that line. Now, the thing's an 8-inch ductile line. It goes across to Holu Street and goes up to my street, goes down, and goes all the way down inside there. It's a specification line. All of those people who have taken from that line have water meters. We already paid $1,000 for the water meters and all that-30 years ago. Brother Milton tells me that-I love him-he's my brother-that they're going to dig up the line. I said, "Why you're going to dig up the line?" Page 26 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 He said, "We don't know if the line is defective or something wrong with the line". I said, "I don't think something wrong with the line. Never did leak." So, if something wrong with my line, you got to look at the Highlands line because they wen dig their line-put their line in, a long time ago, before our line got in. So, what we should do is dig all that whole subdivision out-you know what I mean? Take all that line out, make sure something is not wrong. Is what I say. So, don't you guys going dig out my line and my line is newer than the Highlands line. And I've been paying water for the 30 years that I've been there. And I appreciate you guy's effort to make the water system. And I hope that all those who don't have the water system could get into the water system thing-being that I have a sufficient line for myself and for other homeowners over there. I think that your assessment is too high because you don't even have to assess that area. That area's already done. Why should you assess the area and that thing is already made? If you want to put a fire hydrant-fine-there's a fire hydrant you can put them on Holu Street; and a fire hydrant you can put them Kiekie Street. It's not even 100 yards. So, hallelujah. It's all I got to say. ACTING CHR. TYLER: Oh, hold on a second, Mr. Martines. Any questions? I have a question because I know you've been along-time resident over there, and I've heard the comments, over the years, about the ductile pipe. You've also been in construction- MR. MARTINES: I, personally, put the pipe in. ACTING CHR. TYLER: I was going to ask you. MR. MARTINES: Me and Manfred. ACTING CHR. TYLER: Okay. I was going to ask you, `cause you did work for Mr. Cieslik). MR. MARTINES: Right. Right. ACTING CHR. TYLER: When this pipe was put in? MR. MARTINES: Right. ACTING CHR. TYLER: Yeah. And was this done with the understanding of the Water Department, or what happened when this- Page 27 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. MARTINES: That Water Department was right there inspecting our lines. We put sufficient gravel underneath. We tempered the line. We put 18-inches. We got sufficient amount of base course, put it on the top of that ductile line, and covered it up. It's specification line. ACTING CHR. TYLER: Okay. Well, I had heard that-and you're the first person that's, actually, come and talked to me-I heard it-but, seeing it in the letter-but, you've been a long time resident. So I really thank you for bringing this information to our attention. MR. MARTINES: In case they want to dig up the line, make sure they dig up the Highlands line, `cause I don't want them-their lines starting to leak before mine. ACTING CHR. TYLER: Okay. Mahalo- MR. MARTINES: Thank you very much. ACTING CHR. TYLER: Thank you, Mr. Martines. We have another speaker this evening, Mr. Jake Jacobs, who is speaking in support. Mr. Jacobs, good evening. Thank you for coming. JAKE JACOBS: Good evening. ACTING CHR. TYLER: And, I'm sorry, I can't read-you're at Kiekie? MR. JACOBS: Kiekie Street. Yeah. ACTING CHR. TYLER: Yes. Thank you. And you're a landowner there as well? MR. JACOBS: Yeah. ACTING CHR. TYLER: Thank you. MR. JACOBS: I've been there since '76. I waited six months with my lot in escrow-waiting for water-that was part of my due diligence. I wasn't going to buy the lot until I had water. I got it from Manfred Cieslik, which, then, later turned into Matsumoto. And I'm on the end of Manfred's mystery line. We've never had-I've never lost water, except when the County's water gone out. Never had a leak. Never had any problems. I've been paying Matsumoto-never missed a payment. Page 28 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 And what I'd like to propose-I'm in support of the system even though I'm, kind of, halfway between people who-on the spaghetti system and people who are on County. But I've never missed a payment to Matsumoto and I've been under the threat of him going out ofbusiness- the water getting cut off or whatever. And he charges-I pay about double what my neighbor across the street pays, `cause he's directly to the County. So I figure that my $30 assessment is going to, about equal out, with the drop in my actual water bill, due to the fact that I'm going to-I'll be on County. Well, what I think ought to happen is-we all know that Matsumoto hadn't been paying the County for the water. Why can't the money that Matsumoto owes the County go to offset the loss that the people that are already on the system? The people that are hooked up to the County- why should Matsumoto get a free ride? I mean, the money ought to go to somebody. Why should it go into his pocket? (Note: At this time, comments were made from the audience.) The money- ACTING CHR. TYLER: Folks, can we keep it down? Can we keep it down, please? MR. JACOI3S: I've been paying there for 27 years. And if I hadn't have paid, my water might have been turned off. And $15 has been an assessment fee. There've been all kinds of fees. And what I understand, also, is, in talking with Milton, is that the rate, the water rate, goes up the more you use. So, Matsumoto's rate went up because of all the people that he hooked up, incorrectly, onto the system, and I had to pay a higher rate in addition to the assessment that he charged me. So all that money that he never paid to the County, why can't that money be collected and go to offset some of the costs, including the cost to these people that are-that went to the trouble to get County water. I elected (inaudible) to get County water, as part of my due diligence, even when I was having problems. `Cause I said, you know what, someday the money I spend running a line all the way down from the top of the road is going to be worthless on account that, someday, we're going to have to put in a system that's going to service everybody. So that's all I have. ACTING CHR. TYLER: Excuse me, hold on a second. Any questions? I have a question, Mr. Jacobs. The line that you said Mr. Cieslik- Manfred Cieslik put in, was that the plastic line or was it the ductile line that Mr. Martines spoke about? Page 29 _ Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. JACOBS: My understanding is that Cieslik put in a line into that subdivision, with materials leftover from another job-it's cast iron. It comes almost up to where my house is, on the corner of Kiekie and Ahulani. And, so, I had to wait and bugged him for six months to get him to just attach the meter. I paid $1,000 to have them connect the meter, about six feet, and six months of badgering him to do it. And- ACTING CHR. TYLER: You mean the Department of Water Supply? MR. JACOBS: No. `Cause it was-it's-it was a private system. ACTING CHR. TYLER: Oh, okay. So- MR. JACOBS: But it would have been up to County standards, except that it's mystery pipe. So- ACTING CHR. TYLER: Okay. You had a question about any outstanding balance from the Matsumoto Water Company and how that might be applied. And I wondered if anybody from the Department of Water Supply wanted to address that? I don't know what the status of that is. As Mr. Marlines pointed out- MR. ELARIONOFF: Milton's raising his hand. ACTING CHR. TYLER: Yes, Mr. Pavao, could you come forward so we can hear you and put it on the record? Yeah, as Mr. Martines pointed out, Mr. Matsumoto--Caxl Matsumoto, has passed on to another life so-and we wish him well there, clearly-but, Mr. Pavao. (At this time, Mr. Milton Pavao, Manager, Department of Water Supply, came forward to address the Members of the Council.) MR. PAVAO: The only thing I can say is that a lot of the money that you paid to Mr. Matsumoto did not reach us. MR. JACOBS: I know. I know. And thank you for not turning off our water. ACTING CHR. TYLER: So, I guess, Mr. Pavao, the question is-is there any likelihood of ever collecting that money? MR. PAVAO: We make every effort to, but, at this point in time, with Mr. Matsumoto's demise, it's awfully hard to. Page 30 Hawaii County Council -Public Nearing, Kailua-Kona, Hawaii August 2, 2002 We have a Summary Judgement in order with our Corporation Counsel that we can execute. But what are we going to execute against? We have legal grounds to collect, but we're not receiving money. MR. JACOBS: Well, the thing is, is that if we put in aCounty-dedicated system, then you're-my understanding was you didn't turn off Matsumoto's water because you didn't want the 400 lots to lose their water, right? But if we got a County system, then you can take some action against whoever the heirs are or whoever owns some asset to offset our costs! `Cause, like I said, I paid and all my neighbors paid. We paid money to Matsumoto that was supposed to go to the Water Department. It didn't get there-went to somebody else. MR. PAVAO: That's exactly what we plan to do. Once this system is in and there's no threat of anybody losing their service, then we'll take legal action on Mr. Matsumoto, the estate. MR. JACOBS: Okay. ACTING CHR. TYLER: Thank you, Mr. Pavao. And thank you for the question-(Note: Some comments were made from the audience.) Wait, wait, hold up a second. (Note: Further comments were being made from the audience.) Folks, can we hold up, please? It's hard for everybody to hear. I have one other quick comment. You made the point that-which I'd never known and never thought about. Is that you're paying double the amount-the cost of-for the same amount of water as somebody on the County. And I don't think anybody had ever brought that to my attention. If they did, I'm sorry, I forgot about it. But, I had not heard that before, so, I thank you for bringing that "plus" to my attention. MR. JACOBS: But we paid additional assessment, a "management fee", of $15. And then we pay a higher per gallon rate on account of the quantity-the rate for the larger quantity. ACTING CHR. TYLER: That's right. Because there's one billing that goes to the end of the month. Okay. Matsumoto Water-well, thank you very much. I appreciate that. Any questions for Mr. Jacobs? MR. JACOBS: I have one question. ACTING CHR. TYLER: Yes, sir. Page 31 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 20Q2 MR. JACOBS: Could, in your bill, that when you approve this project- can part of that bill be that the money that you eventually collect back water fees from Matsumoto be used specifically to offset the people that paid that money? Or that it goes---or, at least, goes to the project to offset the cost of people that are being forced into the system, even though they're on County? ACTING CHR. TYLER: That's a good question. MR. JACOBS: But it goes to our community. ACTING CHR. TYLER: Yes, sir. That's a good question. I don't have an answer to that. Is-Bond Counsel or Treasurer or Mr. Pavao-anyone able to address that? If not, perhaps, we can look into this and- (Note: At this time, Ms. Sandra Scarr, Water Commissioner, responded from the audience.) ACTING CHR. TYLER: Commissioner Scarr, yes. MS. SCARR: The outstanding bill is for water that the community has already used and the Department has supplied. So it's, really, a debt to the Department. ACTING CHR. TYLER: Okay. Those were my thoughts, but I---okay. So, we're hearing it from Water Board Commissioner, a representative from Kona, Sandra Scarr. Thank you. (Note: Ms. Scarr proceeded to comment, again, from the audience.) Yeah. Well, all these things are being recorded, so that we can address these. And I'm sure that the Councilmembers who aren't here this evening, they' 11 be receiving this transcript before any final decisions are made and they' 11 be asking questions. Hopefully, we' 11 have answers for some of the folks, here, this evening. Did you want to say something? MS. PISICCHIO: Excuse me. Also, I keep seeing hands jumping up. You should just come up and sign up and come up and answer your question. ACTING CHR. TYLER: They'll have a chance. I'm going to ask, again, here shortly-like, right now. We've come to the end of all the persons who have signed up. I see a lady going over to sign up. Is there anyone else here who would like to share some mana`o with us this evening? Page 32 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 That's our whole purpose for being here. Yes? (Note: Someone commented from the audience.) You need to go sign up, please, everyone. And, if there's anyone else that is thinking about it- JODI E. TRACY- Hi, I'm Jodi Aviles. I live on 73-1198 Ahikawa Street. Okay. I have a water AVILES: tank. ACTING CHR. TYLER: I'm sorry? MS. AVILES: I have a water tank. I don't have pipes. I don't have anything like that. I have hoses that run from a very substandard-the water's right in front of my house and we couldn't hook up because Mr. Matsumoto did what he did. We bought the lot because of the price, okay, and it was a nice subdivision-it's quiet, it's peaceful-needs a little cleaning up, but it's pretty cool. But, everybody here either has to realize-Mr. Matsumoto is gone. His estate is in an uproar. We're not getting monthly billings. I'm not. I don't know about you-from Matsumoto. What will it come to? It's not going to get any better. It's only going to get worse. Everybody else has to realize, if it's not Mr. Matsumoto, what is it going to be? Either it has to be the Department of Water coming in and doing a proper job that they need to do. Or, an alternative is catchment. Let me tell you, catchment's no fun. You don't have the same pressure. You have to deal with the clean-the tank, filters. That tank cost me $5,000. Okay? I know I paid for a lot of labor to put that tank up in my property. But, if you think about it, that could have gone for hooking up to the street for proper water. So, in the long run, if you think about it-what is your alternative? Now, I understand-I am so much in empathy with people that are already on County water-that it's very much of a hardship. But we live in one district and you need to improve the district, unfortunately, that goes with the flow-and that's not (inaudible). But for all the people that have lived in this subdivision and dealt with the problems-and just yesterday, we had a house burn down on Palisades. And for a person who lives in Coastview, whose back lot faces that field, you have a fear of God that it will blow to your house and you have nothing. So, that's my-I am totally in-for the water system. Okay. Thank you. Page 33 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Thank you, Ms. Aviles. Any questions? Thank you very much for deciding to testify. Ms. Susan McGeachy, a resident of Ahulani Street. Good evening, Ms. McGeachy, and thank you for being here. You're another one of those patient souls-all of you. Thank you for testifying. SUSAN Hi. I have been there since 1988. I've dedicated three years to working on this McGEACHY: system to make it happen-volunteer work-many hours. I am, too, on that iron pipe-a six-inch iron pipe does, in fact, run in front of my house. It's 30-inches deep that Mr. Martines did put in with Cieslik. And I am familiar with that-they are going to have to dig that out. I am pro-for it, even though I have an iron pipe-I have great water. Matsumoto's methods may not be the greatest, but my water has never been affected by it. I did, in '91, spend $5,000 and put in a 12,000-gallon tank of water catchment, for fear of what was going to happen. My feeling is the Improvement District, as a homeowner, is going to help because we're going to have fire hydrants, so we'll have the ability to put out a fire. One concern, as everybody else said, would probably be the laterals- once the system starts, how are we going to get out of that subdivision. Right now, it's one road in, one road out. That's a big problem. We have to address that before you begin ripping up the road, how in the heck are we going to get out of there to go to work? Okay. Number two, another thing I'd like to say is that it improves the value of the property. Myself, as a realtor, a part-time realtor-the lots were going for about $70,000 to $75,000 for ahalf--acre. Now, they're gong for about $115,000 to $150,000. The value of your property, with the fact that water's coming in, will increase. If you sell your property, this assessment goes with the property. If anybody is that, really, angry about it, I'd love to list their property. Okay. And-but, no, really---the value, that it's increased, all of ours-I mean, neighbors houses now are selling for $300,000, and the water's sketchy. What does that tell you? The values are there. And the values are there because the water's coming in. And we're ready for it. We've worked for it-30 years it's been worked for. It was the third shot at it. This is it. We've got to do it. This is our shot. We were at $14,000. We're at $6,000. We got to go-we got to go while the going's good. Page 34 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Well, I want to, personally, thank you for the effort and you and others-Mr. Livingston, I see here-and others this evening-here, as well as other times-who really worked hard to try to get the cost down-to look to doing it through a private system. We-you worked on it. You tried all kinds of things, and I really want to, personally, acknowledge your role in putting that together. And I know you worked tirelessly on it-and many of you spent your own personal monies on this, and I just thank you very much. And thank you for your support this evening. Any questions? Ms. McGeachy, thank you. Okay. MS. McGEACHY: Let's make it a go! ACTING CHR. TYLER: Our next speaker this evening is Mr. Jeff Murphy. Mr. Murphy is a resident of Ahulani, and he's speaking in support and representing himself. Mr. Murphy, good evening. JEFF MURPHY: Good evening. I'd like to thank you for all of your work on this. I have a couple questions, though-the 6,353-this gentleman over here said that the $30 assessment is not a fixed fee. So, somewhere down the road, in a few years, it could be raised if, he said, if we run out of money. Is that correct? ACTING CHR. TYLER: Would the Bond Counsel or the Treasurer like to address that? Or, Mr. Flynn, did you-Mr. Flynn, I think you made the comment. MR. FLYNN: No-yeah. Let me (inaudible), `cause I think there may be two issues. One, is the prepayment 5% penalty for anyone who wants to make payment in full. And that's, basically, to protect the integrity of the loan for the whole and all other assessee's. I think the second issue and it's probably worth making this very clear to everyone tonight-the action represented by the Council Resolution you're looking at, basically, accepts the estimate of project costs by the Department of Water Supply. And if, for some reason, we get to the point of survey work and all bids are submitted and, in fact, the cost comes back and it's substantially higher, we will come back to you in a public hearing format and ask, basically, for your permission again. Page 3 5 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 So, in other words, if everything proceeds as the cost are reasonably anticipated-and folks in the Department of Water Supply have taken a very hard look at this and, basically, tried to build in cushions in their estimate-we expect that, basically, the $30 that I cited you will stand up. If, for some reason, when we get to the point of hard bids, the cost are more, we will come back to you and ask for that. MR. MURPHY: But once it's fixed price-three, five, ten years down the road-it cannot change? MR. FLYNN: No. MR. MURPHY: Okay. The other was a $940 hookup fee to the meters? MR. FLYNN: Yeah. Let me explain something about that. I think- MR. MURPHY: That's a fee that has to paid up front- MR. FLYNN: Yeah. There's something I want you to understand and some thought has gone into this-and I hope this isn't too complicated. But I hope it's also helpful to you. The U. S. Department of Agriculture, in working with Department of Water Supply-I can mention that they have so much money that comes to the entire State of Hawaii each year. Money that is not encumbered by a project, lapses, and it goes back to Washington, and it's spent for other things in other states. This year, their allocation, if I'm correct, was in the neighborhood of $5, million of which $4.6 million is coming to this project. To get the entire amount encumbered by the USDA Grant Loan Program, certain steps were taken, and they're detailed in the "Manager's Report" that each of you picked up. One of the steps taken was Water Supply, itself, will conduct construction inspections-rather than contracting that out, that will be done by the Department of Water Supply personnel. One of the other items that was removed from this overall cost budget was the cost of service connection charges. If we have added all those charges, we would have exceeded the amount of Federal grant loan money available to us. All right. So, for the sake of, basically, bringing in the maximum amount of Federal, outright, grant money and securing the best possible interest rate, that was split out from this project cost. Page 36 . Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. MURPHY: Okay. So, we're looking at the $6,353, if it comes in, it's $30 a month? MR. FLYNN: Right. MR. MURPHY: There's a $940 fee up front to hook to the meter, and that's paid to the County, period, up front. You don't pay it full in advance? You don't get (inaudible). Okay. So it's $6,353 plus $940 up front-plus, you're going to have to hire a licensed plumber to pull permits to hook up to the meter and bring it to your house, which he then has to have inspections and you have to have an 18-inch deep line. So, there're people that are going to have costs anywhere from a few hundred to a few thousand dollars to get a legal line hooked up to their house? MR. FLYNN: That's right. And that's why Invade-yeah. MR. MURPHY: And, basically, we're looking at $6,353 plus $940 up front, plus another $1,000 to $2,000-possibly, to have water hooked up to your house. MR. FLYNN: That's correct. MR. MURPHY: And those are up front fees. So, basically, maybe $3,000 up front. Out of pocket. And then $30 (inaudible). MR. FLYNN: Nine-well, actually, what would be up front is $940 plus the charge of getting that line into your home. MR. MURPHY: From a licensed plumber? MR. FLYNN: Right. MR. MURPHY: Because we cannot hook it up ourselves. It has to go through a licensed plumber, is what I understand. MR. FLYNN: Yeah. MR. MURPHY: Okay. Page 37 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. FLYNN: And one of the reasons I mentioned this at the outset of this meeting, because you're asking exactly what, I think, people most want to know-which is looking ahead for my life, what does this mean to me? One of the things that came up in discussion around this was what you can do as a community, in terms of negotiating more, as a group, or street by street, with a plumber. And all I'm saying is, you have some time to begin plotting that out. Yeah. MR. MURPHY: Well, I'm just trying to add the total cost up here-so we're about 63 and 76-somewhere about $8,500 to $9,000 is what this actually is-with about $3,000 up front, out of everyone's pocket-to be connected- MR. FLYNN: Again, you keep saying $3,000. I don't know if it's necessarily going to be that high. MR. MURPHY: Well, we got $940 for the meter. Okay. MR. FLYNN: Right. MR. MURPHY: And then to bring a licensed plumber in, if he has to square cut your concrete-the costs could get expensive. MR. FLYNN: Ah-hmmn. MR. MURPHY: Okay. I'm just trying to figure out what it's going to cost me, up front. The $30 is minimum. I'm on County water, but I'm all for it. But, to say $30 a month and then, "Oh, by the way, here's $940 before you can hook up" and "Oh, here's the plumber's bill of another $800 before you can hook up". Those are the things that people that are on fixed incomes need to know about. MR. FLYNN: I understand. That's why we wanted to- MR. MURPHY: And the other thing is- MR. FLYNN: Yeah. MR. MURPHY: Do we get a new paved road out of this or is that going to be an additional assessment down the road? Page 38 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. FLYNN: Okay. The obligation under our Improvement District, County Code, is that the road be returned to the condition it was in or better. Okay. MR. MURPHY: Well, the last meeting we had in March, the Mayor said that there was money that's being held aside. ACTING CHR. TYLER: Yeah. It's hard to hear the question or comment when everybody's speaking, and I realize that this is an important question. So, please- MR. MURPHY: Well, the last meeting we had in March, the Mayor said that there was money that was being held aside, specifically, to repave the roads. But they didn't want to use it until after they put the system in because, if they put a new road in and then put the system in, they got to tear the road up. So, if the money's still sitting there, do we get a new road out of this also? ACTING CHR. TYLER: Well, I certainly hope so. And let me tell you, as long as I'm in there, I'm going to do everything I can to get a new road. Because the road has been-the repaving of that road, the resurfacing of that road, has been postponed in order that we didn't hear from you saying, "Well, wait a minute now. We just paid this and now you pave the road and now you're going to tear it up?" We all know the scenario there. So, unfortunately, this process has taken a lot longer than some of us ever thought, seven years ago, when we got involved in this-and some of us weren't even elected, as was pointed out. But the past has passed, and the Mayor has been made aware of this, by me, early on. And Iwill-I meet with him once amonth-I will continue to bring this to his attention. And I'm very glad to hear that he-you recall that he said the money was set aside. And I'll, certainly, remind him of that when the time comes. And I thank you for your comments. Did we adequately address your concerns? MR. MURPHY: Yeah. I'm just trying to get the total cost of what it's going to cost me, up front, before we get into the $30-and then, if we get a road system. ACTING CHR. TYLER: Good. Well, that's why Mr. Flynn-I'm sorry-Yes, Mr. Ahuna. Page 39 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 (At this time, Mr. Glenn Ahuna, Engineer V, Department of Water Supply, addressed the Members of the Council.) MR. AHUNA: Maybe we should clear up something first-you got stuck on the $940. That's the Facilities charge prevailing now. Eut, at the time you come for the meter, when the project's finished-it's, probably, going to be higher-like, over $1,000. I just wanted to make it clear. It's a prevailing Facilities charge. MR. MURPHY: I understand. MR. AHUNA: Yeah. MR. MURPHY: Right now, that's a floating fee also? MR. AHUNA: Well, it's not "floating". It's fixed. As of July 1 S`, 2003, it's going to go up again. So- MR. MURPHY: So, if it's not in by that date, it's going go to a higher- MR. AHUNA: Right. Right, yeah. MR. MURPHY: And you said that the people that are already on County water would not pay that fee? MR. AHUNA: If they had paid the Facilities charge to the Department, or if you can prove that you paid it to Matsumoto, then- MR. MURPHY: Well, I have the receipt to the County, that I paid $2,513. My question is (inaudible) do I get a refund for the $940-the difference? MR. AHUNA: No. There's no refund. MR. MURPHY: Thank you very much. ACTING CHR. TYLER: Yeah. There was a very important distinction that, I think, Mr. Ahuna made. Not everybody that has County water, I believe, has paid the Facilities charge. And we won't ask you to raise your hands here now, but you know who you are, if there are any here. And the Facilities chaxge is what everybody pays to hookup. MR. MURPHY: So, basically, if we can show that we have the receipts, we don't pay. Those that don't have records from 20 years ago, they're stuck paying, again? Page 40 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: I believe the Department of Water Supply has records. Mr..Ahuna, can you answer that question, sir? MR. AHUNA: Well, if you paid it to Matsumoto, he probably didn't pay us. So, you'd have to show us that he did. But we have records, if you came into our office and applied for the meter and you paid us, we would have that record. Yeah. (Note: Someone from the audience directed a question, which is as follows.) AUDIENCE: What if the previous owner of the house-like you bought a house on County water? MR. AHUNA: Well, if you have-you have a meter in Highlands, right? AUDIENCE: Right. MR. AHUNA: So, whomever you bought the house from paid a Facilities charge at the time, so you would be exempt from the payment of that. ACTING CHR. TYLER: Yeah. Mr. Flynn? Thank you, Mr. Ahuna. MR. FLYNN: In the binders there-and you can look tonight before you leave, or visit the Mayor's Office or the Kona Council Office-in this binder, there is a list of the 119 people who our office asked the Department of Water Supply to identify as those who, basically, are on County water. Now whether you've paid your Facilities charge is something to verify. But, this is, basically, "Exhibit G" in those binders, and if you wish to go through there and look for your name, please do so. MR. MURPHY: And one last question. ACTING CHR. TYLER: Yes, Mr. Murphy. MR. MURPHY: There are few homeowners with ohanas. Will one meter be brought to both homes? ACTING CHR. TYLER: Mr. Flynn or Mr. Ahuna, you want to answer that? Did you hear the question? Page 41 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. MURPHY: Those properties that are not CPR'd, but have ohana dwellings on the property? MR. FLYNN: It's a decision, by the Department of Water Supply, when someone creates an ohana unit to, basically, charge them the service connection charge. In this Improvement District formula, as proposed by the County Council, we are, basically, required to assess genuine units of property which, typically, we would consider a single family lot or a condominium because that is a legal unit of property. MR. MURPHY: But, would it be two separate meters? MR. FLYNN: Okay. Yeah- MR. MURPHY: On the condominium? MR. FLYNN: Right. In the case of an ohana, basically, you have---it's a building permit. So that ohana unit will not be separately assessed. Okay. If the Department of Water Supply decides that that unit merits a distinct service connection charge, that's up to them and the owner. MR. MURPHY: Thank you very much. ACTING CHR. TYLER: Thank you, Mr. Murphy. Good questions. I appreciate it. And now we have Allan Robbins, a resident of Loloa, and he has a question. Mr. Robbins, again, sir, I need you to come forward because I don't want you to have to yell, and we need to put it into the system, so- ALLAN Thank you for your time, again. I just want to clarify that-is it your BOBBINS: understanding that those on Matsumoto's water system will experience a reduction by half of their water bill, irrespective of the new assessment, as they go on County water? ACTING CHR. TYLER: I didn't hear that, necessarily. What I heard was that there's a monthly fee, service fee, that Mr. Matsumoto charges. And there was also an indication, by the speaker, that Mr. Matsumoto's rates are significantly higher because the more water you use, the more money you pay in this County-that's part of our conservation effort, I believe. And so, Mr. Matsumoto being the supplier--excuse me-the receiver of Page 42 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 water-pays a much higher rate. Whether it's double or not, I don't know. But- MR. ROBBINS: I just thought that was a significant new piece of information of the disproportionate benefits. ACTING CHR. TYLER: Does anyone from the Department of Water Supply know? Mr. King, you've got your hand up but, let me ask Mr. Ahuna or anyone? MR. AHUNA: Well, we don't have any idea what his rate structure is. What is your average bill? MR. BOBBINS: Well, we know what the County bill is. I'm not on Matsumoto. MR. AI=TUNA: Oh. MR. BOBBINS: I was surprised to hear that it was, potentially, twice as much as the County. ACTING CHR. TYLER: Well, let me ask the question: if, for someone on Matsumoto, do you know what the charge is per gallon-per thousand gallons-excuse me? And is it a graduated charge? Yes, sir? (Note: Someone responded from the audience, which is as follows.) MR. CLEMENT ZIERKE: I can tell you about the Kalaoa Water Company-it's $3 per thousand, And we pass that on. When I pay the County, Kalaoa Water Company pays $3, and I pass that on to the user. And I'm going to speak in a few minutes ACTING CHR. TYLER: Okay, but you- MR. ZIERKE: But I would assume that Warren Matsumoto, who has taken over from Carl Matsumoto, is charging about the same. ACTING CHR. TYLER: Okay. MR. ZIERKE: But I'm only making an assumption, all right. ACTING CHR. TYLER: Okay. Mr. King, you have-thank you, sir. (Note: Someone from the audience spoke, which is as follows.) Page 43 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 AUDIENCE: I own a rental property over-(inaudible) district in Palisades- ACTING CHR. TYLER: Right. AUDIENCE: And I live in Coastview, and so, I can compare the two for you. And I can tell you that my water bills were always lower on Matsumoto and the consumption was about the same, over the County water. So-not by much, but they're roughly the same. ACTING CHR. TYLER: Okay. Well, that's interesting. It's conflicting information-from what we heard earlier. I don't think anybody here is prepared to answer that-it's probably individual. I don't-I can't speak for the Matsumoto Company, but I thank you for the question. If we do get some information, we'll pass it along. Thank you. Our next speaker this evening is Mr. Michael Williamson, a resident of Ahikawa, and he's speaking in support. Mr. Williamson, good evening. MICHAEL Good evening. WILLIAMSON: ACTING CHR. TYLER: Thank you for being here. MR. WILLIAMSON: I'm building a house on Ahikawa right now-and I have a water hookup. And I do have the receipt, paid to Matsumoto Water, for my meter. And I'm wondering if that is going to be what the County is requiring or since those fees have not been paid to the County, does that mean I have to pay that, again? Or is that, kind of, a gray area at this point? ACTING CHR. TYLER: Mr. Ahuna, are you able to answer? MR. WILLIAMSON: And do we get a new meter, if we have to pay the new assessment or the new $940? MR. AHUNA: Yeah. It's, kind of, a gray area. MR. WILLIAMSON: Yeah. MR. AHUNA: `Cause we don't-I mean, you paid him-but we don't know if that was paid to us. Page 44 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. WILLIAMSON: Right. And I have the receipt. I mean, it was just, like, last year. So, I have the receipt. So, it's like this does me a lot of good. MR. AHUNA: Yeah. We got to deal with that, I guess, at some point. I don't know right now. MR. WILLIAMSON: Okay. And also, since I'm building this house, we are required by the County to put in a catchment system for fire control. I'm guessing that's what it's for. `Cause-well- ACTING CHR. TYLER: Can anyone from the County answer that question? MR. WILLIAMSON: It's not for potable water, it's just for fire prevention. ACTING CHR. TYLER: The Building Department required you to put this in? MR. VVILLIAMSON: Yes. ACTING CHR. TYLER: Mr. Ahuna? MR. AHUNA: We would have no requirement. And, I guess, the Fire- so, Idon't know. ACTING CHR. TYLER: That's the first time I've heard of that. Anybody else had to do that? Raise you hand, if you did. Yes, sir, can you comment? (Note: Someone from the audience responded, "I'll talk about that in a minute". ) ACTING CHR. TYLER: Okay. Great. Thank you. MR. WILLIAMSON: `Cause there are several homes around us that do have the tanks there and that's what it's for. And then there're many that don't. I mean, if I don't have to put it in, that's going to save me a bit of money. So, that'd be great. ACTING CHR. TYLER: Okay. Well, thank you for bringing that to our attention. Page 45 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 MR. WILLIAMSON: Yeah. And how soon will the plan be laid out as far as where the meters are going to be located? Is that- ACTING CHR. TYLER: Mr. Ahura, are you able to answer that question? MR. AHUNA: As far as the plans, if this Resolution goes through, it'd probably take about eight months to a year to do the design and stuff. MR. WILLIAMSON: So, we really don't have any general idea on which side of the street? MR. AHUNA: We're going to have to look at where your lat well, probably, if we know where your consumer line is-we, probably, could locate the lateral right close to it-so, it'd be less cost to you. MR. WILLIAMSON: Yeah. Because, since I'm building this home, I can run my main line whereever I need to. I mean, right now, we're hooked up in the back of the property. And, I'm sure that the meters are going to be on the road. But there're two corners, and I could pick either one at this point and it would- MR. AHLTNA: It would save us money and the project money if the meters were located, commonly, on the common border- MR. WILLIAMSON: Right. MR. AHUNA: But if you have consumer lines, I guess, we can locate the meters separately. But we would like to locate it on the property line, probably. MR. WILLIAMSON: Yeah, but I have a driveway on one side, and I have nothing on the other side. And, like the other gentleman was saying that we're going to have a plumber come in and do it, I've got all of that set up, at this point, and I'd really like to save all that money and time by knowing, ahead of time, where it's going to be-put the line in, have the plumber okay it-and be done with it and be ready to go. ACTING CHR. TYLER: Well, that's a good question, Mr. Williamson. And I think it makes a lot of sense to be in touch with Mr. Ahura or others, as you're going through this process, so you can get the latest information. MR. WILLIAMSON: Yeah. That's what I need. Page 46 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Yeah. And thank you for bringing-and anyone else who might be in that situation. This is good information. MR. WILLIAMSON: Okay. Thank you. ACTING CHR. TYLER: Okay. Anything else, sir? Any questions for Mr. Williamson? Thank you very much for coming up. MR. WILLIAMSON: Thank you very much. ACTING CHR. TYLER: Our next speaker is Mr. Dewey Proietti, a resident of Ahikawa, and he's speaking in support. Mr. Proietti, good evening. DEWEY Hi, there. First of all, I'd like to thank the County Council and the Department of PROIETTI: Water Supply and all the administrators for putting this project together. ACTING CHR. TYLER: You're welcome. MR. PROIETTI: This is something that, really, has concerned me. We are recent residents of Ahikawa Street and I'll be quite honest with you, it puts chills down my spine every time I hear the damn fire engines go by, because the fire hydrant is quite a ways from where I live, and I'm not liking that a lot. So the sooner this thing gets off the ground, the better off I' 11 be-I do say. I'm on Matsumoto, I'm a recent homeowner, and we've been there about four months and we haven't even gotten a bill yet. And that's even scarier than paying a high price for the water, as I have absolutely no reality on going home in the evening and opening up the tap and having the water come out. That's not a pleasant thing to deal with everyday. So, that's one of the reason-another one of the reasons. And, yeah, ours comes over the back wall, through the pasture, on a PVC pipe, not on the street, but through the jungle and then through this. )3ut it's terrible looking plastic hose, and that's the way the place was set up. So- ACTING CHR. TYLER: Okay. Well, thank you. MR. PROIETTI: Yeah. Okay. ACTING CHR. TYLER: I appreciate it. Mr. Elarionoff, any questions? Just two comments-thank you for your leap of faith and, as Mr. Rogers says, "Welcome to the neighborhood". Nice to have you up here, Dewey. Page 47 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 Okay. Our next speaker this evening is Clement Zierke-and a resident of Ahikawa--he's spoken before-and thank you, sir, also, for your work with the Kalaoa Water Company-speaking in support. Good evening. CLEMENT Hi, I'm Clem Zierke, a resident since '85, and I also run the Kalaoa Water ZIERKE: Company. And the reason I run the Kalaoa Water Company, `cause 58 families lined up, and 57 of them took a step backwards, and I happened to be dumb enough to stand there, and I'm running it. We talked about the $3-the $3 is what comes to the bill. The bill, just last month, was about $5,000. We have 58 families, and we are current at all times, and I will shut offpeoples' water, if they don't pay their bill. I want to talk-the reason I even came up here was we talked about the $30 a month-and the Kalaoa Water Company, currently, is charging people $10 a month. But I have the option of changing that. If I have to buy pipe-if the water-if we have a water leak and it doesn't go through anybody's meter, obviously, it comes through the County meter-and I have to up that service charge. But for the most part, we're talking about $20 a month assessment or whatever the thing is here. I am told that the Matsumoto Company charges $15 at this point in time. I do know that they have severe problems. I happened to-I've got to say this---on behalf of Carl Matsumoto, he helped me with a lot of breaks. And his brother, Warren, is out there now. And Warren has approached me to take over the whole Matsumoto Company and the Kalaoa Water Company, and I run like hell when I hear that kind of talk because there's no way. I want to talk a little bit about the people that are on County water. I'm in very much sympathy with them. But I have to say that if their meter- County meter is not on their property they, potentially, have a real problem, because the meter could be there and their house is over here and the break is in between and they could have a $1,400-I think Jeff just talked about one-$1,4001eak, and it could be running out into nowhere. The County meter is spinning. They got a fair amount of water coming into their house, but they don't know they have a leak. And I've got that same problem with 58 families. I've got, I don't know how many feet/miles/inches of pipe, and I-when I drive around the neighborhood and I walk the system-try to walk the system at least once a month in looking for green patches when we don't have rain, because I know what's going on. And we've got pipes that are on top of one Page 48 I-~awai`i County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 another. My pipe-Kalaoa Water Company-`cause I'm only 1/58t" of it, the Kalaoa Water Company, Matsumoto, and County water-three-quarter inch pipe from the top of the hill-all together-and when there's a break, I have no idea what that is. I would like to address the point that some people have mentioned that they have helped and fixed breaks. Any breaks that have ever happened on the Kalaoa Water Company, since I've been involved and I find out about it, reimburse those people. I pay them $35 an hour, and I give them parts. Now, if they fix any of mine, they've got to turn off valves; and when you turn off a valve, my phone jumps off the hook because somebody's out of water. So, I would thank them. But the ohana thing-one more thing-I bought a house with an illegal ohana in 1985-it's one of these, somebody built it underneath-and I bought it knowing what I had, and I also bought it from a realtor that was very up front with me about the water system, but he gave me a price that I couldn't refuse. But a few years ago, I decided that's not a good idea, and I brought it up to date, and the Building Department-I had Kalaoa Water Company, obviously the Building Department made me put in a catchment tank for a second source. It wasn't for fire as somebody just mentioned here-fire prevention or anything like that. So there's-and I'm not faulting the Water Company, the Water Department-and I'm not faulting the Building Department or Planning Department-I just want to get this thing-get this monkey off of my back. Because 3 o'clock in the morning, if somebody gives me a call, my wife holds the light, and I go fix it. Now there's 58 families, and I'm in sympathy with them-most of them work regular jobs and they would get a call (inaudible)-they say, I've got a $25 an hour job, I got to go to, and, what can you do? So, there is no word big enough for me being for this. And I want to thank you. ACTING CHR. TYLER: Thank you, Mr. Zierke, for your letters of support to the Council and, also, for the work that you've done with the Kalaoa Water Company. I really appreciate that. Our last speaker, at least as signed up here, is Mr. Randi Lawson, a resident of Ahikawa Street, also, speaking in support. Page 49 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 RANDI LAWSON: It's not Mister. ACTING CHR. TYLER: I'm sorry. Yeah, I appreciate it, and I apologize to you. Thank you, Ms. Lawson. MS. LAWSON: I'm- ACTING CHR. TYLER: It's a good thing I brought my glasses tonight or I' d really be in trouble, huh? MS. LAWSON: That's why I wore a dress, so it wouldn't be any problem. I'm all for it. I'm one of those people who have had tons and tons of water problems. I keep 15 milk jars-probably, I have 20 now-in my shed, because I have had numerous times when I've had no water at all. And where you can't flush your toilets-I'm a single mom with two kids-you can't flush your toilets, you don't have enough water pressure to do laundry anymore. You turn the faucet on and nothing comes out, and you're going, "Oh, good, we'll wait half an hour, maybe we'll get water," because somebody down the line is taking a shower. And I've had this-actually, now-I'm, actually, doing pretty good. But Matsumoto has come, and they have fixed it within, usually, within 24 hours, but 24 hours is a really long time to have no water and not be able to flush your toilets. And you get up in the morning to shower and cold water with milk jugs shower-baths-are not fun. So, I'm really, really for getting water, so I can, actually, have consistent water, because I've talked to a lot of people who have had no problems, but I have had a lot of them. And I know the guy on the line behind me, when I have nothing, he has nothing, but he's only one person, so it's easier on him, whereby I'm more. That's all. ACTING CHR. TYLER: We look forward to helping you and thank you for sharing your experience. MS. LAWSON: Thanks. ACTING CHR. TYLER: Ladies and Gentlemen, it's 7:54. This is a public hearing. And I want to ask for the last time, hopefully, is there anyone else here who would like to share some information with us? We've heard some very interesting things this evening. We'll be happy to Page 50 I-Iawai`i County Council -Public Hearing, Kailua-Kona, 1-Iawai`i August 2, 2002 hear from you. I'm not trying to close this off. It is Friday evening and I know many of you want to get home to your families or- (Note: Someone from the audience asked, "When does it all happen?" ACTING CHR. TYLER: Mr. Flynn. I'm so glad you're here this evening, sir. MR. FLYNN: The next step-and I'm sure Councilman Tyler will be the sponsor of this Council Resolution would be a "Resolution of Determination", which I expect him to ask me to start working on Monday morning. And that would be taken up by the Council, by the terms of the County Code that need only be passed once to be considered "an act of the Council". That would be, basically, a resolution to proceed with the project, as it's been outlined tonight. That would then trigger site engineering and surveying work to generate bid specifications. The Department of Water Supply has, basically, in their efforts to expedite this project, already secured a bid for that work, and it is within the budget range anticipated for the project. As Glenn mentioned earlier, that work could take anywhere from eight to ten months, at which point, we will have hard bids. The County's next step would be to enact a bond ordinance, close the USDA loan, at which point the project would be financed and construction would begin. ACTING CHR. TYLER: Thank you. Did that answer your question? Mr. Ahuna? (Note: Someone commented from the audience, which was inaudible.) ACTING CHR. TYLER: The question is, from this gentleman, your name, sir? (Note: At this time he responded "Lee Rogers".) Lee Rogers, a resident of Ahikawa. He understands the last report was that it might be finished by March of 2003. He's wondering if that's been pushed back and could we give some information to him. Thank you. Mr. Flynn. MR. FLYNN: I don't recall that date and time being set, sir. But what I just outlined, by no means, would you have a system within the next year. What we expect is that within a year we should have completed the bids, Page 51 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 the financing, the bond ordinance, and construction would begin. As to how long that will take, I'm in no position to anticipate right now. We're trying to do everything as fast as we can. And what I just outlined, previously, I think, is a hard schedule that we're all trying to meet. ACTING CHR. TYLER: Thank you, Mr. Flynn. (Note: Someone directed a question from the audience.) The question-Mr. Flynn, just let me get it on the record-the question was: how long does it take to finish the project once it starts? Yeah. And your name, ma'am? Your name, please? Terri Frisbee-you're a resident of Loloa? Ahulani, excuse me. Mr. Flynn--or Mr.-excuse me- Mr. Ahuna. MR. AHLJNA: Once the plans and the survey have been done, it'd probably take at least a year for the construction, at least, `cause it's a complex situation, and that's what I was going to get into next is that what we need is help from the residents that have meters and all these laterals. I don't know how we're going to do it to locate these laterals. Maybe we've got to have another public meeting and have the people come down and help us draw it on the map-kind of, where it is. I know Clem Zierke, probably, knows about Kalaoa Water Company. But, if there's somebody that's-I don't know if there's anybody in the community that has a collective idea of where all these laterals are, especially the ones that cross the street. So, I don't know how we're going to do it, yet, but that's something that we got to deal with-maybe, a public meeting, again. So- ACTING CHR. TYLER: So, Mr. Ahuna, if there's anyone here this evening who either knows about this information or knows someone who has this information, they should contact you? The Department of Water Supply in Hilo? MR. AHUNA: Yeah, that's fine. ACTING CHR. TYLER: Telephone number? MR. AHUNA: 961-8070, Extension 260. ACTING CHR. TYLER: Thank you MR. AHUNA: 961-8070, Extension 260. Page 52 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 ACTING CHR. TYLER: Thank you for making that point, Mr. Ahuna. We are going to need your help all the way along in this, as we have from the beginning. Is there anyone else-let me ask one more time-is there anyone else who would like to ask a question or has some testimony? Yes, Ma'am, if you would come forward, please? And state your name. FEMALE: I just want to know, what happens to all the subject matter that was brought up to you folks right now? What happens with that before the "Determination" things goes on? ACTING CHR. TYLER: Yes, good question. Thank you. You- FEMALE: Is something going to happen with all that? ACTING CHR. TYLER: Yes. We have recorded all of this, this evening. That's the reason why we use the microphones and asked you to come forward, and a written transcript to this hearing will be prepared and will be given to each of the Councilmembers-especially important for those who weren't here this evening-so they can read it. And copies will be available from the County Clerk's Office in Hilo. So, if you're interested in reviewing this yourself-although I'm sure you all have good memory and you'll remember it-and you want to have some more paper, these will be available. The Council will take this up, and I can assure you that we regard this, individually and collectively, as a very, very, very serious matter. And the comments that each of you made this evening, whether pro, con, or just asking questions, mean more than you know because we learned some new information this evening from you, and we thank you for sharing it. We thank you for being candid, and, personally, as your elected representative, Ithank you from the bottom of my heart, `cause each of you has been as patient as I can imagine anyone would be. As the last speaker said, waiting just 24 hours for water is serious, serious stuff. Now, before we close this meeting down, I'm going to ask Chief Oliveira, our new Fire Chief, if he would give us a brief update, sir, on the fire protection in Kalaoa, in particular, the Volunteer Fire Station, the Fire Rating Bureau and it's relationship, because there was some concern about insurance rates. And also, if you would give us an update on the Kalaoa Fire Station that's planned for this area. Page 53 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 (At this time, Mr. Daryl Oliveira, Fire Chief, came forward to address the Members of the Council.) MR.OLIVEIRA: Sure. ACTING CHR. TYLER: Good evening, Chief. MR. OLIVEIRA: Good evening. ACTING CHR. TYLER: Thank you for being here. MR. OLIVEIRA: Thank you. ACTING CHR. TYLER: You're welcome. MR. OLIVEIRA: This morning I spoke to the representatives from the Hawaii Insurance Bureau to update them on the status of the newly relocated Kalaoa Volunteer Fire Station at the bottom of Ka`iminani. And what they're in the process of doing right now is reassessing the rate schedule for the district. They weren't aware that the station was being moved-excuse me-and, therefore, they're going to be looking at, again, the response times and the distance traveled by that station and the coverage area. So we should see some changes in the Hawaii Insurance Bureau's-this rating schedule. One of the things that was brought up with that representative from that Bureau was this meeting tonight, and, should the fire hydrants be put in as part of this project, as planned, how that would impact the fire classification or insurance classifications for those subdivisions. And, realistically, what I was told was, until such time that there is a fire station within five road miles of that area, that Hawaii Insurance Bureau would still classify that as "unprotected", even if there was a hydrant within 1,000 feet of your residence. With that in mind, I'm sure Councilman Tyler is aware that, this coming Thursday we have a meeting to go over the actual specs and plans for the new station that we have always been anticipating or working on for that Kalaoa-Kaloko axea. Page 54 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 So we're trying to move that project along, knowing that that's going to have a significant impact on the insurance ratings and premiums for the homeowners in that area. So we're trying to move that project along. But I'm sure with the relocation of the Volunteer's, we will see some impact on some of your residence based on their location at Ka`iminani, and, hopefully, again, with the new station we're planning, more impact on the residents further north. ACTING CHR. TYLER: Thank you, Chief. I want to acknowledge you and your leadership-your new leadership in the Department, and the fact that you were instrumental in getting some funds to the community for completion of that station. I also want to publicly acknowledge-and I hope that each of you who knows any persons living in Kona Acres, connected with the Kona Acres Homeowners Association and also the Kona Palisades Estate Community Association-each of them put in, I believe it was, $5,000 apiece-volunteered to give that money to have the Volunteer Station move up from off of Henry Street, into our community. And I think we'll all be eternally grateful for their kind offer and gifts to all of us. And, Chief, I look forward to our meeting on Thursday. The Mayor has assured me that the money's in the bank and earning interest. And as you know, Chief, we put in the funding for next fiscal year for the staffing of this station. I look forward to working with you, and I thank you very much for taking time out of your schedule to be with us this evening. Thank you so much, Chief. MR. OLIVEIRA: Thank you. It's my pleasure. (Note: Someone in the audience directed the following question, "Is that station, the volunteer one, operating right now?") MR. OLIVEIRA: That's correct. It is in operation. The staffing has always been available and responding. They were just not located on Ka`iminani, as Councilman Tyler mentioned. So they are available and responding, as we speak. ACTING CHR. TYLER: And it's going to make a big difference because most of the volunteer firemen who staff that station live right in the neighborhood-some of them in your neighborhood, actually, as a matter of fact. Thank you, again, Chief. Any other questions for the Chief? Yes, Ma'am. Page 55 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 GERALDINE: Hello, my name is Geraldine (inaudible), and I live in (inaudible). (Inaudible.) MR. OLIVEIRA: That's the same unit. Right now where they're located, next to the Community Center on Ka`iminani, is a temporary location until the site can be prepared and relocated. GERALDINE: Inaudible. MR. OLIVEIRA: Correct. That same unit will be located to Holoholo Street. ACTING CHR. TYLER: Right. Those were the two lots, the land that I said that the landowner was going to be giving, as part of the zoning, to locate a permanent volunteer fire station. Now, it's highly unusual for a community, here, on the Big Island to have two volunteer and a fully staffed station in such close proximity. And some people questioned me early on-the two previous chiefs, actually- why are we doing this? And, I think everybody here knows that the grade-the steepness of the grade-20% grades, etcetera-these large trucks, the tankers, have a very difficult time. Mr. Fann knows this better than anybody, I think, as to what happened when the fire occurred at his home, and what happened to the tankers and the fire trucks and the difficulties they had. So, the volunteer fire company has lighter, smaller vehicles that are much-have a much quicker response time, and they can come in from the bottom, while the top-while the permanent station is going to come in from the top. So, I think, this is really a wonderful opportunity that we have in our community. I thank you all for your patience on that. And, again, I acknowledge the Hawaii County Fire Department, the Mayor's Office, for helping us there. And other questions for Chief Oliveira? I'm sorry-thank you, Chief, for being here, this evening. Now we have one final report. I want to ask Mr. Mende, the Deputy County Clerk, to, for the record, state the total number of written communications received this evening. Those "for" and "against" the ID Resolution by "owners"; and "for" and "against" by "others", if there are any, so that we may have this on the record, so persons who are looking at the transcript will have this information. Thank you for bearing with us. Page 56 Hawaii County Council -Public Hearing, Kailua-Kona, Hawaii August 2, 2002 This is real important for the record. Mr. Mende, good evening, thank you for giving us this information. (At this time, Mr. Jay Mende, Deputy County Clerk, came forward to address the Members of the Council.) MR. MENDE: Okay. We checked with the County Clerk's Office, in Hilo, at 4 o'clock, and there was nothing additional to this. Total "against", written, was 14; total "for", written, was 4; and "no comment", which we take as "support" was 419. ACTING CHR. TYLER: 419. MR. MENDE: So, total "support" was 423-out of the 437. ACTING CHR. TYLER: Okay. Thank you. And you took into account what was received in, this evening, right? MR. MENDE: Yeah. Yeah. ACTING CHR. TYLER: Okay. Thank you very much. And so, folks, it looks like I'm going to be talking to Mr. Flynn on Monday morning to get the resolution going. Is there anything else before we quit? Again, I want to thank each and every one of you; thank the Councilmembers for coming; thank the staff- Mr. Flynn, thank you for all your hard work-and have a wonderful weekend. Aloha. ADJOURNMENT: There being no further speakers to come before the Council, at 8:10 p.m., Acting Chair Tyler adjourned the meeting. ~ 1 J. CURT'IS TYLER III ACTING CHAIR gY Page 57 ~ W N z 00 O~ to ~ W N O ~ O O O O O O O O O O O O O O O O O O O ~ 00 00 00 00 00 00 00 ~.1 J ~1 00 J ~l J ~.1 J J J w I I I I I 1 1 I I I I O O O O O O O N N N O N N W N O W N ~ N N N N N N ~O ~O ~O N ~O ~D O ~ ~O ~O I I I 1 ~ 1 I I I I I I I O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N ~ ~ ~ o ~ ~ o w ~ ~ ~ ~ w w ~ o ~ w Z ~ Ro x ~ ~ ~ ~ ~ ~ aro w w c~ ao ~ ~ ~ ~ co ~ ~ ~ ~ ~ s" o C7 C ~ ~ ~ o o CT3 cu ~ ~ ~ O o ~ ~ ~ ~ w ~ ~ ~ ~ ~ ~ ~ w ~ ~ ~ ~ ~ ~ s~y-~ f1. ~ `i ~ ~ ~ o ~ ~ ~ c ~ ~ rya w ~ ~ w O ~ ~ w w ~ w w w ~ w w O w w ~ ~ O O ~O N N N N N N N N N N N N -R N ~ ~ ~ N ~ W W N N W W N N ~ N O1 ~ ~ N ~ ~ t~°' ~ o ~o N v, ~ v, N N o ~o 0 0 ~o b- m Vi t/~ ~ O p ~ O O O O O O O O O O O N ~ O tgJ ny ~ ~ m ~o m m ~ m sv w w w w ~ w can vii ~ d ~ ~ ~ ~ d ~ C7 d ~ d d C7 ~ ~ O ~ C~ < C C C~ C C C~ < C~ ~ may' t~/~ ~ ~ cn ~ ~ ~ ~ co ~ co to co ~ q co '--3 ~ ~ ~ ~ o ~ w W W W W W W W W W W W W W W W W W W W ~ ~A 1 I 1 1 1 I 1 1 I I I I O O O O O O O O O O O O O O O O O O O y~ N N ~ N N I-^ ~ I--~ r^-. N N N ~ l 00 N -A Vr N N W W W W W W W W W W W N W ~ I I 1 1 I I I 1 I I I I I I I I 1 O O O O O O O O O O O O O O O O O O Y ~ M. cn N w to O w O A O O O O 1h O ~O ~O w w n O O ~ Oo O 17 W ~O J ~ W ~D `~O O O~ ~O 00 N Oo ~ ..f ~ ~ ~ ~ ~ ~ ~ ~ ~X >C X k ~ t~ ~ ~ >C X X X X X X k X X k 5C >C >C ~Y 73-1221 Lplpa 1'~rive ICaila~-Koh 3~i 740 808.325-057 ` _ . July 29, 2002, C~~nty Clerk 4 25 Aupuni Street kiila, 96720 Re. O~Vater System, Caastview aced W®aadervievv subdivision `fo The Co~aa~ty Clee~c, Att~hed is a copy of a t®tter we have see~t to ~Jcst f3awaii "today to exptaiet our rasa®ras why we are ACI~IST` ~e prop®sed county water syateen f®r the coastvievv/vvotid®rvi saebdiviotts, (fie factor n®t rueebtioeeed in the later is the fact that the only r~~~on we hove a coausty watea~ roster is bocatase it vv~ a ed by the county water d®parkrsserat seed ia~talIed by theeef> So t® say we do not realty a water system or real county water is ludicrous, ~Ve have flee scene quality system ~s we will have iat tl'e fa~ta~re at a ~~ter less these 75 feet Pram our house; h®wever, we xrill be at least ~b500.~ or so eraora in debt thaw vrt are today. T'h~k you for passing on this infoe~.tion to ties county coua~cil. Si ly, f'L r~` Debra,Lee-Ri~.i Christopher Rini Ci0Y19T11. NAs ~ . y~ 1 :c?:,:.:Tz .o:~::tl ~e~. Date ~U~2 ZQQ2 z®•d wd rz:ig z~®z-~z-~nr 'fo the editor, Imagirao buying a house, living there for seven years, and then l"inding oast there is a water problem with oth®rs in your neighborhood slid you arc responsible for paying for it. fil~tat is exactly what happened to rsgy farraiiy ~a othc~ who have lived there even longer. ~Ic p~u'chased our bosses on I,oloa Drive in 19~g. Like grsost new hoggieowners, wG called all the aatility companies including county water to learn on the utilities, ~e never gave a thoaaght to ar~y probleg~ as why would there be one. In 1995 wo received notice i$'otn a conccrned citiaen that the county water dcpaa~aerzt was putting in new lines and we w®re to be assessed $19,000. ®f coaarae, w~ had no idea what he was talking about s® we called the county water dopartgneegt to ask what this was aboaat. ~y husband was toad that since a }ergs raumbcr ®f homes in our (~Yonderview and Coaslview subdivisions) were o~'co~anty water they were iga the planning stages of putting in n®w lines ~d eerie boost would be assessed, IVdy husband explained that we already had county water and this r®a11y does not concern us, ~e was thou raadely told v+!e would be forced m discor€nect -from the line argil then reoonraect to the new line seed bo assossod just like everyone else.we thought this biaar~ to have to pay for sorraethia?g we already havo. At rho recent meeting with the anayor (thcrc to take cruel for "helping to solve the Coastview water issue") we explained our situatioat and t®1d bins about the izae~ui#y we foe}. Ike told ass that he, has r~othiag to do with county water, tlg® county water de ant is really not a county issue and we would have to spot to the wwater departaraerat. This- did not seem right to age. vvhy is it then called "coeaagty" water? Since then there has men much w®r1c done and n®w the county wwatcr de ®nt has figural. ®ut s way to get the assesstnent down to around X6300,00 por house. ~y using the low incomes ®f the average hognoowraeg~ in W®nderviow and then coupligag thorn with rho Coastview rosidents that want a new sysiem they havo found a giant that will pay a portion of rho assessed agraocant (this portfora would have been much larger in V6/ondcrva®w if they worn not linked). 'This estiaraate, egad we know how estingates are, does not iaaclude $1600 for a water gnetCr and whatever it-will coat you #o connect, In Dear case since we already have coganty water w® do not have to-pay tlxe ~ 1600. H®wever, Dear water-lime currently runs behiaad Dear house will r~uire tither tc sap a substaagtial acre®unt of concrete sidewalk and driveway or rerouting spaghetti line fronri floe back all the way arougid the house. Talking with my racighbors, T havo yet to fsnd anyone who wagers this (ogg private or couaaty water). The ones who have coaagaty water don't foal it is fair that we have to pay a lot of gnonoy for socnethirig we already have. tethers that doga't are happy with the systegns they (fur subdivision is area. where horneowagers age not loalcin~ to ianpr®ve their houses. for a fast sale but is gncrely a gtoaap of people who would like to bs left alone. Nobody wants our streets dug up f®r tw® year's, and aao one wagg~ts go have to deal with the pr®blcgns anal expense of hi<ing sap to the meter al®aag with the assessaneaat fees. There is absolutely zero advantage to us.The water departaneett says that- our horraeowaaers isasuratcce will ~o down. Rely ins agent said that is agot true ~ ®raly rho pc~xianity to the fire station is what: counts. Curreastly, the only way out is to writo to the Coutaty Clerk voicing a negative opinion. If you do nothing you are counted as a yes vote. l~lost of doe people 1 havo spoke to-are shock®d and in disbeliof. Trying to get them to write a letter is difficult beat undorstandable, wh®-has: tine. ~l'e are all working two jobs to pay our mortgages and current water bills. Yt has takesa mo over a month to het this wand I am ggtotivated. if any ®gac has agcy idee~ to st®p the bull dozers ~ please send your opinions to the county clerk, the water deputarlea~t, and any goverment officials that will listen, becauso that's the only way era ~ will get d®a'ic. I.~tly, thc~~h the c®onty water department will tell y®u it's not teat earns thing, there is a subdivisi®ca in Iililo called I-I$ppy I-I®rnes subaivisi~n. fi~ao aunty water dcpartrng~t is repiaci all the lines to flee people for no charge, 7`hg dif~grence they claaen is ti~.t we are rgc~ivin~ ~ wh®1~ new syst~tra, theirs is rs~~rcly a rcpla~ment. A.s far as I coaac~rncd, what tl~acy art doing here is ~ replacement too. I live paid ttaotaey f®r 1~ g~e~rs ia~ta this Fund part of ~y watcr bill, So have all the other people v~ho pay wwater bills, be it county water, IvlatstanYOto, or flee l~iaoa system, Is this the typical situation where-there is money for 1Hilo and no money for Kona? what is the real reason we have tm pay and they d®n ®t? If my neighbor was hungry, I w®aald bria~~ t3~e faanily food. I£ my nei~hlbor n d taelp, i would b® tharc. I~wevcr, I draw the ling in paying for someone gm's water line, Sic~cerely, l~bra Ttia~ t?hristophgr IZi~i ~®'d wd ~z: t~ z®®z~6z-~~nr v Na G9~ Imo' - f .9. _ J~ ~ ~ ,--j .;rh N E~i -r .{nrry,.. r ..rJ %f Ali v~'i:': <z;~%_ ~~f. r~~t~s . AI~G ~ Edward T. Wilson Randi R. Wilson Tr P.O. Box 382 I~ailua-Kona, HI 96?~45 (808} 325-721 July 9, 2002 OiBce of the County Clerk County of Iiawaii 25 Auputai St. Milo, I~dI 96720 RE: Public hearing Atag. 2,2002 Water System Improvement 13istrict Kona Coastview di Wonderview Ileac Sir: We will be unable to attend the meeting on Aug. 2, but wanted to express our positive position reSardfng the improvemeni district. We own 2 lots: TIVIK 7-3-023-098 and Tiv%K 7-3-023-099. The proposed improvements seem very adequate and the assessmea~ts seem fair. We look forward to the new system. Yours truly, Edward T. Wilson / < Randi R. Wilson Coartrn. N~ File IVo. Itef. ~`o: ~ C~a~ty Clark ~ . 2~ ~4 ' Std - I3i1~, ITs 96730 Jaaly 29, 2EH02 I AGST pr suerv sy f®r tl~ ~®~~a1~~ I Rya ~ la®~a a~tt~ d will ~t ra~ava stay flt e~? by ~a l~ ®f s , I It t v~ b ~ y fps ~a~~~ ~ ~a~y, - :1 `7 ~ ~ ~ j c~, y~ Similar letters were received from the following persons: Kalua S. Colombau, 73-1229 Loloa Dr., I:ailua-Kona, HI 96740 Francisco Omaya, 73-1240 Loloa Dr., I:ailua-Iona, HI 96745 Dee Robbins, 73-1222 Loloa Dr., Kailua-Kona, HI 96745 Elisabeth L. Bullock, 73-1236 Loloa Dr., Kailua-Rona, HI 96740 Karl Puou, 73-1231 Loloa Dr., Kailua-Kona, HI 96740 I:.aren Galvin ~ David Yonemura 73-1226 J~oloa Dr., %ailua-i;ona, HI 96740 d® ~a x~ _ . ; ~f. , . ter. ~ z®.a wa iz:t~ ~®®z-ez-~nr Ci~a°k . ~ ;i , 2~ ' qtr I~al®, Iii 96724 July 29, 2002 'T®~o ~tt~ty Ct~rf~o I l~~~7ST s~ r9~~+ ~y f®~ 8~~ ttiri~mvlW it I p ~ ~ ~tl~ ~aa~ty ~a?il~ ivy y b~~~ by the ~ I i~ ' tit ~ y fir ~ 9i 1y, ~ ~ ~ ~ C~~ ~ 1 ~ ~ ~ T®'d wd ~~:ie z®®z-sL-~nr JUL-31-' 07:51P FROM: T0:961~12 P:2~2 _ ~ • , ZS ~u~ ~ ~b720 I t~~ p~~pcased w system. f~ ~c~ii~, ' I ~ ~ qty d 3t r~c.~ive fit by I sysa. I fi~ad a~ m~ k®~ p~? f~ ' ~r~ dy S~~y, /`~r ~g? ~fl~rk 25~ 'S ~Iil~, 96730 ,iuly Z9, 2002 'I'o t!~ C®~ty Ci~1c„ I A~ S`T ~I~ pr® v ter f®r ~h~ C~~stva~~?f~V~ ~~r I I ~ ~t~ ty ~d wiU ~ b~c~~at by i ion of ~ I i! Z~v~ ~ pay for ~ Si ~y, ~w T®•~ gad ®s: e® z®0Z-T£-lfif First, [solute your efforts to upgrade and resolve the private water system situation in the Coastview ~t Wonderview area. Particularly with the Rural Development Cgrant it looks like a true value to those that don't have County water. They should get better water delivery and most likely see a reduction on their homeowners insurance due to closer proximity to a fire hydrant. I~owever each of the SO to 100 homes which currently has county water, has already paid a substatatial premium to be connected to County water which other homes in t~ area have not paid. These families ~ NOT stand to gain near the proportional berets from having county water as do those who do not currently have it, f3iJT they are bung asked to share equally in the approx $6000/home cost of improving a system which they do i~dt need. The offer to provide a new meter at no cost, while appreciated, is a benefit in the sam:r category ofthe county assigning me a new home tax number for free is a beneft. We are not asking something for nothing. 'Those who currently are on county water via short spaghetti lines who wish to connect with the new system, should have to pay eons-tune fee (approx $1200) for a new meter to be dropped the same as anyone else, but to ask this group of families to share equally in the cost for a project for which they will see minimal benefit is profoundly unfair. I would ask that you restate the Improvement District proposal to exclude those homes with current county water, unless they choose to opt in for gone-time fce as future new homes will do to connect to the new system. 'This would still serve everyone's interest but in a much more equitable manner, Alan Robbins I-Iomeowner 73-1222 Loloa Dr. Kailua-Kona, I-lI 96740 .I~1~, • Ptil~ eta ~fe lief, 13a~ 06/30/2002 10:02 3250833 KLEEN RITE PAGE 01 C®~zaty CI~k 25 Aupami Str~€ I'$aI®, #~II 9720 Re: W~t~ Sys#~n, Covievv old dVondervi~vv subdivisions `i`® ~e Comity Clerk, I ~ ~GAINS7` the pr®posed r~ew w~t~r system. for eh~ CoastviewiVJ®nderview . 1 ow9'1 a horns ~®unty ~v~ter end will riot receive ~y b~lefat whatsoever by the inst~l~ti®sr of this syst~l. I fired it urafaar that we hive tcz pay f~ s we e~dy have! Sia~cerely, 7 ` ~ _J~G ~~i.r > / , ,y~~ fn ~ _ _ . JlL-31- 67:51P FROM: T0: 9618912 P:1~2 . , ~ , ~ ty C~~rk ~9 9b72® ~JV S C®~t~r aI ~~d say 'r~s a ~tty ~~~k, I AG 5T' P ~w ~r sys f~ Clot I ~ ~ ty ~r d i~ y ~ by ~ ~ ~f . I i8 ~ir~ ~ ~ pay ~ta~ I ~ S~ y, ~ ~ 7! County Clerk 25 Aupuni Street Hilo, Hi 96720 July 29, 2002 fio the County Clerk„ I am AGAINST the proposed new water system for the ~ ~:':`.::~i~nderview ~re~. I purchased a home with county water and will any benefit whatsoever by the installation of this system, I find it unfair the pay for sor~aethin~ we already have. Sincerely, ` ~ ~ 'V~'^_ ~.~o~C~,~ ~c~~v ~~-1ZZ~ L~~ of ~?~~o August 1, 2002 County Clerk 25 Aupuni Street Hilo, HI 96720 Re: Water System, Coastview and ~onderview subdivisions To The County Clerk, I a~n AGAINST the proposed new water system for the Coastview/~V®nderview yea, I own a home with county water and will not receive any benefit whatsoever by the installation of this systems. I find it unfair that we have to pay for something we already have. Sincerely, SIP~ILAR LETTERS RECEIVED FROM: Geraldine bushman Turk Ed. Soma 73-4239 Hookumu St., Kailua-Kona, HI 96740 . ?~I~ I~at~ ~T~ 4. _ ~ Au~ttst 2, 2002 ~ R~~m~ iflaa4~~...~~~...~ ~~T_ ,.e r Coa~n Clerk 25 AL1pLflB11 .Street Ccsun9y Cour~i4 ~ - Kilo, ICI 96720 lte: Water System, Coastview and Wonderview subdivisions To "I°he County Clerk, I a~n AGAII~IST the proposed new water system for the Coastview/Wonderview area. I own a home with, county water and will not receive any benefit whatsoever by the installation of this system. I find it unfair that we have to pay for sagnethin~ we aDready have. Sincerely, August 2, 2002 County Clerk 25 Aupuni Street I-Iilo, I~iI 95720 IZe: Water System, Coastview and d~Vonderview subdivisions TI'o The County Clerk, I am AGAINST` tlge proposed new water system for the Coastview/~onderview area. I own a home with county vaster and will not receive any benefit whatsoever by the installation of this system. I end it unfair that we have to pay for something we already have. Sincerely, Lei®~ ~ ~d~~ ~73- ~ . L/ ~ ~?~o~~ ~ ~ ,i' ~ r a x~. ~f. Ref. Date J _ > -tom ~ ~v~~'-.~,., ~ 3~ <~'.,.~j`~!~/!~' L,) It ~ t J / '.,l1 / A f . t., r ¢ ~~::~c``` ~ ~ ~.~F.., ~~L,1~~, ~,~s~,~~<~:~• ~ Vii, ~f / l J R 1 i`b " ~ r / f { 4..F:Eiss'4'r G£'?3'?'s,:}T ~ ya~ f l~ k _ _ _ ....--T----- ~1t~a_...m.....~~.-~y_n,.~...._.,_.._-~, , - ~sunsy Coun~~°' a~~~ '/~l a ~ o~° ~ S ~ ~ ~ d ~3~ o~ ~l`70U ---m ~x~~ ~ 1G~1~ c~v~ S o ~~fo~~,~~~~~~ v cy ~ ~ ~cl~~-Sep Cv) / ~vc~av j ~ic~i9-T~v- lit/ ~l JG ~ ~ ~ ~v~~~~ ~~r~/ Qloi ~l LPG ~ ~r ~ ~3~~ ~ v ~ o ~1J~ ~v a ~ ~ P . L3~6i 9S ~VidL ~S". ~ $o $lF~ GOeanty G®eatxcll In rt ®€It~soleation ~20-OZ " ~.......,,,a.,....,,~ ~Y Gounty Covncll P- F i' I ~ the o resoleation for I~oa~. Co I~® ~®r (1~C~~} Sea ~ i~ I~ortb Koaas~ I ° 11}' 1'c ~ kno~r acs sad ~d° ' s live coanc to$ r worl~~ tta ~~p tle~ r~sidcs o€I~C~~T ~ dead the . ~ ~ llev of tlsiis ss sncthod o€aesscsat by fiaa~ I~°Y tl~ "os~l ~nt~l footee~c i~Iy coanps to those; indi~idls thou this throeaglZ i swois~d . ` to cry ~ sasoa~ ~a~ltablc sst vehicle. saalxport is not . 1~ or assay years now, the geaestion of c o~ Goat' ~ ' ~ i to ~ o€~. p€~ticea° s ' '~ioaa ~ be sea ZQO1, the Carty t~ b aen etc waet~ sy~te ~as~ I~~c in Iwsi I~ i~ ~~rk °I`levs i~ ll, l ~a o€ l2-h w~ternc, 12 hydra 'I`hc 2~U ~sidents w 'tt~ to co t to t sea+ ~r a osa~tit o€~I,763 plies aaoal ear cost ozz co boss. 1l~yor IG~n laded to wl I I~h was t o€coaantg? s~ ' s bid capon why they lip. ~e theet the in IMP vvas raot beiss~ ll~ €Srs• the £t o€t r~~ d w~ lell~d by tl~ C'oaae~tq to s~avece ~s ~~noaa . b€at to the was ~ side eft, not the paarposc ®€tlae lirsc. I lyor I l~ to t It grossly €or s~siderats o€I~G~~'to ~ In tl~ cost of IMP ` : sacteare ~ strlely a°es~ for costs ire ' owes ri~od. In Wit, Iyor's re~ponsc tl~ Coeanty's ~;tion ha I~I$ elogely ~ the co ' n ~t portiosa o€ war systems Illy ~ Coe~ty sersponsa`hr°h'ty, s~ert t ° in ~ ~abdae~iosa. . 'Thal w~lc I 5°osn ~ Wiewpoiiat article iaa es$, I3aw~ai Todtl~t the I•lasppy I•Ios ( sea ' ' iosa In I-hlo will esa~oy aerp of fir w~tte~ sYste, coal ° ®€the Goa>atty I3cp t of'~Inter reapply. ~rosn where I alts tlsege as no jea ion for two sea ' `ions on the fast s of the isld • • saw blc s€ls for theis° r sy €roas~ other coeaaaty citisss wlae°lc I~C~~' sersid eess~ feral cost to rcpt their syste~~. Plc ~ this isseae s~ w or scot it psiate, €sir said feast for the Co to, pay for t~ ' . postic~as o€ waiter ~ ~G~~'. I be3i~ t Goaaxetl? ' sa in 'Ia ~ s$loa>~ nth mayor I~rra's se~poa t® e it al€~ely ' t eosa the Coaaraty t® smart ~ res° o€di#Tcs~st . ions . 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