Loading...
HomeMy WebLinkAboutREP AWESC 006 10/16/2012 2010-2012 REPORT OF THE COMMITTEE ON AGRICULTURE,WATER AND ENERGY SUSTAINABILITY DATE: October 16, 2012 RE: Comm. No. 870/Res. No. 312-12 PLACE: Council Chambers Kailua-Kona, Hawai`i TIME: 9:03 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Agriculture, Water and Energy Sustainability, to which was referred Resolution No. 312-12, reports as follows: Resolution No. 312-12,transmitted by Council Member Brittany Smart via Communication No. 870, dated September 27, 2012, requests the Legislative Auditor to conduct a performance audit of the Department of Water Supply's meter award procedures and meter compliance reviews and procedures regarding the Hawaiian Ocean View water system standpipe station. The purpose of this resolution is to address the concerns of residents who have reported that the meter award process has resulted in inequities in the allocation of standpipe meters and may not have guaranteed that safe, potable water will be delivered to the community at fair, competitive rates. There were ten testifiers from the Kona Council Chambers and all spoke in support of the resolution. (There were no testifiers from the other locations.) Ms. Smart was absent from the meeting, but her Legislative Assistant,Nelson Ho, spoke on her behalf to ask for Council Members' support of her resolution. Mr. Ho explained that the community worked hard to get this water system in place, and they had assumed that only water haulers would apply for the meters, but that was not part of the criteria of the awarding process. Mr. Ho also explained that after the water system opened on July 5, 2012, the community continued to receive high delivery charges for water hauling. This resolution will enable an independent audit to make recommendations in order to eliminate future controversies. Mr. Pilago asked Quirino Antonio, Manager-Chief Engineer of the Department of Water Supply, to come forward. Mr. Antonio was accompanied by Kanani Aton, Public Information and Education Specialist. Mr. Pilago asked if the department followed correct procedures in the awarding process. Mr. Antonio explained that they held a community meeting to outline the requirements for signing up for the standpipe station prior to the water system opening on July 5, 2012. It was explained that it would be first-come, first-serve. Another community meeting was held after July 5, 2012,to address complaints from the community. Mr. Antonio stated that the AWESC Report No. 6 AWESC-6 Page 2 October 16, 2012 • department is trying to work with both the community and the water haulers to find a compromise that both sides can agree on. Ms. Aton also explained that board meetings were held in the community during both the design phase and the construction phase. A meeting was held about once every three to four months or once every six months depending on when they received new updates. The public also had an opportunity to submit testimony at the board meetings. Mr. Pilago explained that this resolution is not going to fix anything; it is only requesting the Auditor to conduct an audit. Mr. Antonio replied that they have no problem with the resolution or working with the Legislative Auditor's Office. Ms. Ford wanted to know what the requirements are to become a legitimate commercial water hauler. She asked Mr. Antonio if a PUC (Public Utilities Commission) license is needed to haul water. Mr. Antonio was not sure what the process is to get a PUC license. Ms. Ford asked one of the testifiers, Ivar Kaipo, Owner/Operator of Lehua Water Delivery Service, to come forward and explain what the process is to become a commercial water hauler. Mr. Kaipo confirmed that the truck has to be a licensed vehicle and the driver needs a commercial driver's license (CDL) and a State commercial water hauler license. He referred to his written testimony (Communication No. 870.1) that specifies the requirements. Ms. Ford also wanted to know the well's sodium content, but Mr. Antonio was not able to provide an answer at that time. Shortly after, Ms. Aton informed the Council that the information is available on the department's website (www.hawaiidws.org). Mr. Yagong asked Ryan Kanakaole, Deputy Corporation Counsel, to come forward to the table. Mr. Yagong wanted to know if the County can legally follow the Legislative Auditor's recommendations if the water haulers already have a contract in place. He is concerned that there might be a breach of contract. Mr. Yagong asked if the contracts are legally binding and in perpetuity. Mr. Kanakaole replied that the contracts have been executed, so they are binding. Modifications can be made, but that would require an agreement from all parties. Mr. Yagong stated that the Council needs to know the scope of what it can or cannot legally do before asking the Legislative Auditor to conduct a performance audit. He does not want to mislead the public into having any false expectations. Mr. Antonio explained that when the account holders for the standpipes signed up for their service, they signed a Letter of Conditions. One of the conditions was that the Department of Water Supply may terminate water service at any time; therefore, they do have the legal right to take away the service. Mr. Yagong asked Mr. Kanakaole if he concurred with that statement, but he did not have a copy of the contract, so he could not confirm the accuracy of Mr. Antonio's statement. Ms. Aton added that the department has not yet determined what the next step will be. They are proposing possible changes and have opened up discussions in order to receive input from all parties. Mr. Yagong asked about the next community meeting. Mr. Antonio replied that it is scheduled for Tuesday, October 23, 2012, at 10:00 a.m. at their operations baseyard on Leilani Street. Mr. Yagong hopes that this can be resolved in-house as the Council does not have authority over the Water Board; and the Water Board is the body that would make the rule changes, not the Council. Mr. Pilago asked who signs the contracts for the Department of Water supply. Mr. Antonio acknowledged that he does as well as the Chair of the Water Board. Mr. Pilago then called Colleen Schrandt, Legislative Auditor, to the table. Mr. Pilago asked Ms. Schrandt if she knew the scope of the audit, the start and end date, the estimated cost, and the follow-up date to the AWESC-6 Page 3 October 16, 2012 Council. Ms. Schrandt responded that there are two distinct issues. First, the current situation in Ocean View involves many legal issues, which her office cannot touch as they are not attorneys. What they can look at is whether or not the Department of Water Supply complied with the requirements in the application. Second, they can look at how to improve the whole process. As for the timing and estimated costs, Ms. Schrandt stated that she could not provide that information until she knows the scope of the work; however, she believes it can be done in-house and does not foresee a need to obtain an outside contract. Ms. Ford wants an audit to ensure compliance to the current standards and it should include recommendations for future wells and spigot stations. Although the Department of Water Supply has been doing the lottery system for decades, Ms. Ford feels that the department should look to see if there may be a better way. Ms. Ford is also concerned with whether or not the department complied with State requirements for commercial haulers. Your Committee on Agriculture, Water and Energy Sustainability is in accord with the purpose and intent of Resolution No. 312-12 and recommends its adoption. dwe AYES NOES A&E EX Respectfully submitted, BLAS X FORD x COMMITTEE ON AGRICULTURE, WATER HOFFMANN x AND ENERGY SUSTAINABILITY IKEDA X ONISHI X PILAGO X SMART X J YOSHIMOTO, CHAIR YAGONG x AWESC REPORT 0O 21112 YOSHIMOTO x ADOPTED: