HomeMy WebLinkAbout2005-09-02 TMALASEKO2
PLANNING COMMISSION
COUNTY OF HAWAII
HEARING TRANSCRIPT
SEPTEMBER 2, 2005
A regularly advertised hearing on the application of JAN MALASEK (GEOTHERMAL ASSET
FUND CLAIM)was called to order at 9:20 a.m. and again at 10:10 a.m. in the County Building,
Councilroom - Room 201, 25 Aupuni Street, Hilo, Hawaii, with Chairman Fred Galdones
presiding:
PRESENT:Fred Galdones ABSENT & EXCUSED: William Graham
C. Kimo AlamedaJeffrey McCall
Andrew Iwashita Rodney Watanabe
AllenSalavea
Hannah Springer ABSTENTION: Rene Siracusa
Ivan Torigoe, Deputy Corporation Counsel
Christopher Yuen, Planning Director
Norman Hayashi, Planning Program Manager
Phyllis Fujimoto, Staff Planner
Jeff Darrow, Staff Planner
And one person from the public in attendance.
CLAIMANT: JAN MALASEK
Geothermal Asset Fund Claim in the amount of $27,494.00 to compensate for a loss of income
from a orchard and nursery operation due to geothermal activity in the area. The property is
located at 13-683 Leilani Avenue, approximately 1600 feet south of the Leilani Avenue
Pohoiki Road intersection, Leilani Estates Subdivision, Keahialaka, Puna, Hawaii, TMK: 1-3-
28:18.
GALDONES:Commissioners, on Agenda Item No. 1, Unfinished Business, Claimant is
Jan Malasek. Unfortunately, Mr. Malasek is not here. He has been informed of todays meeting
however. And being that he is not here present, wed still like to give him an opportunity to be
able to make a presentation in case something has detained him that we are not aware of. So my
recommendation is to address that subject matter, take it out of order, and lets take that after
Agenda Item No. 4; and if he is still not here then at that time we shall decide how we will
proceed in his absence.
At 9:22 a.m., the Commission proceeded with taking up the remaining agenda items.
At 10:20 a.m., the Commission agenda took up the subject application.
GALDONES:Commissioners, I note that there is a representative for application No. 1,
so were going to take it out of order and bring it up at this point in time.
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Commissioners, AgendaItem No. 1, claimant is Jan Malasek. This is a continued hearing on the
Geothermal Asset Fund Claim in the amount of $27,494 to compensate for loss of income from
an orchard and nurseryoperation due to geothermal activity in that area. Norman.
HAYASHI: Thank you, Mr. Chair. As the Commissioners will recall, at the last
meeting there was a motion to approve a claim of approximately $27,000. That motion did not
pass, the vote was two to four. As a result, the Commission voted to continue this application or
this request to this meeting. You just received this morning a copy of a letter from the Planning
Director explaining further the rationale for his position on recommending denial of the claim.
Are there any questions?
GALDONES: Commissioners, any questions of Norman?
HAYASHI:Justfortherecord,theapplicantwasproperlynotifiedofthishearing.
There was a letter dated August 9th, sent to Mr. Malasek informing him of the Commissions
action as well as the hearing, and attached was an agenda.
GALDONES:Thank you.
ALAMEDA:Chair?
GALDONES:Commissioner Alameda.
ALAMEDA:Thank you. I have a question. I remember Commissioner Siracusa
recused herself and became a testifier in this particular -. No?
SIRACUSA:My recusing still holds.
ALAMEDA:Okay.
SIRACUSA:Im keeping my mouth shut.
ALAMEDA:Okay, thats all. Thank you.
GALDONES:Commissioners, any further questions of Norman? Otherwise, sir, could
you please raise your right hand. Do you swear or affirm to tell the truth on this matter now
before the Hawaii County Planning Commission?
OLSON:Yes, I do.
GALDONES:Could you please state your name and residence address.
OLSON:My name is Jon Olson, and I reside at 13-631 Leilani Boulevard, Pahoa,
Hawaii 96778.
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GALDONES:Mr. Olson, are you representing Mr. Malasek?
OLSON:Yes, I am.
GALDONES:Have you received a copy of the background report and the
recommendations?
OLSON:Yes, I did.
GALDONES:Do you have any comments to those documents?
OLSON:Yes. Actually I have a number of comments.
IWASHITA:Mr. Chair, Im sorry to interrupt but I have a procedural question.
GALDONES:Proceed.
IWASHITA:Atthe last hearing or at the last time this matter came up before this body,
ahearingwasconducted.Thetestifiertodaytestified,aswellasacitizennamedReneSiracusa.
And it was my understanding that at the conclusion of that last testimony that the hearing on this
matter was concluded; and we had the motion and so forth, the procedural things that we went
through to address this issue. So my procedural question is do we need a motion to reopen? If
the intent is to take further evidence in this case, do we need to reopen the matter, the hearing?
Because it was my understanding that the hearing was closed at the conclusion of the
proceedings at the last meeting.
GALDONES:Mr. Torigoe, if you could assist us in this matter, please.
TORIGOE:Thank you, Mr. Chairman. Im trying to check the record to see if we had
formally closed the hearing. But, in any case, it seems that the Planning Director wanted to
present further testimony in writing and it seems that the representative of the applicant wants to
respond to that. So, basically, at this point, if no one objects to the reopening of the hearing for
the purposes of that discussion, I think you can do that, and if theres no objection from the
Commission.
GALDONES:Mr. Iwashita?
IWASHITA:I just want it clear on the record, you know, that there was either -. I dont
understand, you know, Im not familiar with the exact requirements of the rule. So as far as the
hearing, I just want it clear on the record whether it was closed at the last proceeding, at the last
meeting; and if it needs to be formally reopened or not.
OLSON:I believe, as a point of order, Mr. Chairman?
GALDONES:Could you hold on -.
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OLSON:A point of order.
GALDONES:Whats your point, sir?
OLSON:If it would simplify the thing, I could always testify as a member of the
public. I could fill out a form and give my testimony as a member of the public, because I have
that right to do that because it is on the agenda. So if that would simplify things, Id be happy to
do that.
TORIGOE:Probably, I was trying to look at the transcript to see if there was a specific
closing of the hearing. I think Mr. Alameda was chairing at that time. Do you recall that,
Commissioner Alameda?
ALAMEDA:I think we did close the meeting, the hearing.
TORIGOE:At this point if the parties do not object, you know, to reopening the
hearingforthepurposesoffinishingthisdiscussion,thiswouldprobablybetheeasiestwayto
deal with this.
GALDONES:So, Mr. Torigoe, is it the purview of the Commissioners to decide?
TORIGOE:Yeah, you have the power to reopen the hearing and, you know, finish up
taking evidence and making a decision.
GALDONES:Okay. Mr. Yuen?
YUEN:The Department does not object to Mr. Olson making an additional
statement.
TORIGOE:And, Mr. Olson, are you in agreement with that, that basically well
consider what the Planning Department has -?
OLSON:I have no objection.
TORIGOE:Okay. If thats the case and if the Commissioners are okay with that, then
by unanimous consent I think you can consider the hearing reopened and go ahead and conduct
this discussion based on the letter that the Planning Director has put in and Mr. Olsons response.
Any objections from the Commissioners? Hearing none, Mr. Olson, you may proceed with your
testimony.
OLSON:Thank you. I think, just as a couple of minor issues here. When I went in
last week to review the minutes of the last meeting, I think it was Tuesday or Wednesday of last
week, they were not available, so I cant really address some of the issues that were brought up
after I left. What I can address is some of the discussion that went on after the meeting was
closed in the body. I suppose the first issue was that of the assessment of the crops as a separate
entity. And in agricultural law it is quite common, in fact, FEMA and Department of Agriculture
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bothdeal with crop insurance separately from infrastructure. And, in fact, if you were to file a,
for instance, under whats happening like now in the hurricane impact area, you would file
separate claims for both your crop loss and your infrastructure loss. That is the standard process
for doing that. I think the claims adjuster recognized that.
The issue of the claims adjuster, why is there a claims adjuster involved in this process? Well,
because it is what the then Director of the Planning Department recommended to the Planning
Commission; and the Planning Commission agreed. The reason that they stated at the time for
doing that was to basically depoliticize the process. So now I find it somewhat of a breach of
faith with the community that that has changed, that someone supposedly with the expertise -.
At the time, they said the Planning Department didnt have the expertise to make the assessment;
and thats why a claims adjuster was brought in. Well, you have the document from the claims
adjuster, you know what the claims adjuster said about it.
TheotherissueIwanttotakeupwithyouthatgotalotofdiscussionsiswhetherMr.Malasek
departed from his property willingly. I dont know how many of you were reading in the
newspaper in 91 during the time of the blowout and all of the incidents that preceded it and
followed it. But I was going to circulate a copy of the front of the newspaper there where it said,
the headlines read, LETHAL LEVELS EMITTED FROM PGV. That was the headline of the
newspaper. And then it went on to state what had happened, the fact that the workers had been
knocked unconscious and they had been removed by other workers and safety equipment. That
erupted into a whole discussion of whether those lethal levels were actually capable of impacting
the surrounding community or not.
My assessment of that to give you kind of a visual on it, lets say that someone is standing down
the street and he tells you that he has a loaded weapon. So you get to assess whether that
weapon is capable of reaching you or not. Is it a high-powered weapon? Can you actually shoot
me and kill me, or is it the bullet wont reach me? Its, you know, this is what we face out there
now.
Wehadanotherincidentwiththewellventingjustlastweek.NumerouscallstotheHealth
Department, it goes on, you know. So just to be clear about this, the distance from that well pad
towhereMr.Malaseklivesiswithin1500feetofthewellpad.Thatswithin1500feetofthe
well pad. Thats why they notified him. So thats how close he is. Im 1200 feet away, so I
know. And that brings us to the issue of susceptibility to primarily hydrogen sulfide and caustic
soda. Those are the two major emitters coming out of the plant when they have an incident.
Well, Dr. Legator from the University of Texas at Galveston who is an epidemiologist, came out
here and did a study. It was part of a four-part study. He studied the surrounding community of
PGV and three other sites on the mainland, and oil and gas plant, a slaughter house facility, and
the sewage plant; and the subject was hydrogen sulfide and how people are impacted by that.
And he found that there is a certain portion of the population, about 20 percent, that are impacted
at what are really incredibly low levels, 10 parts per billion. So you want to gamble? You want
to find out whether youre one of that 20 percent or not? I dont see that Mr. Malasek, given the
amount of time and energy that he put into his farming, departed from there willingly.
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So just in passing just toaddressthisissue here of the bananas and taro, 12 to 18 months for
bananas, well, I mean, yeah, you can stick a plant in the ground and 12 to 18 months you might
get a bunch of bananas; but that does not put you into commercial production. And its
considerably longer if you were going through the process of getting yourself to where you can
actually state with some reputation that what youre growing is organic; because theres land
preparation involved there, too. And I dont recall whether Mr. Malasek was actually certified
by the Hawaii Organic, HOFA, Hawaii Organic Farmers Association, or not. But I know you
can see that his sales receipts were all to the health food stores. So theres a lengthy process
there for whatever it is that youre growing, it certainly exceeds 12 to18 months. Again, Im sure
that, you know, the Planning Department did their research and they came up with what they
came up from whoever it was they talked to. So Ill let it go with that and well carry on from
here. Thank you.
GALDONES:Commissioners, any questions of Mr. Olson? Commissioner Springer?
SPRINGER:In your discussion of adverse reaction to the emissions -?
OLSON:Yes.
SPRINGER:Is that part of the claim here?
OLSON: Well, its the reason that he sold the property. I mean, he was forced out
of there because he could not deal with the impacts. His health, you know, just didnt allow it.
SPRINGER:Okay, thank you. Mr. Director, under Section 4 of the eligibility of
geothermal asset fund claims, theres that discussion about adverse impacts being supported by
documents such as doctors affidavits. Was that submitted as part of the claim? I didnt see it
but Im just wondering if that was part of the record of this claim.
YUEN:Well, I dont think it was submitted in support of this claim. He had some
other claims and I dont know what went with those. Theres a chronology of what happened
with the other claims.
SPRINGER:Thank you.
OLSON:Point of information, I know that he did have a letter from the Pahoa
Health Clinic stating that he was, that theyve, I dont remember the doctors name, but the
doctor that saw him believed that he was being impacted. So -.
SPRINGER:Thank you, Mr. Olson.
GALDONES:Commissioners?
SPRINGER:Mr. -?
GALDONES:Commissioner Springer.
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SPRINGER:Im just wondering if, I wasnt at the last meeting but in my reading of the
record of it I see that Commissioner Iwashita had a number of concerns about the completeness
of the record. And Im wondering if those concerns remain or if you could help bring me up to
speed on the discussion of your concerns.
IWASHITA:I can tell you what I presently think. Well, I guess Ill answer you this
way that in reviewing this matter again before todays proceeding it appears to me the way
Rule 14 is written, the rule that controls our actions on this, is theres great or much of the
language -. Sections 14-9, portions of 14-8, 14-6, all make reference to this matter, you know,
initially being handle by the adjuster, in this case Wood & Tait, and recommendations being
presented, and the fact that if this body does not take action within 90 days of receipt of, if this
body does not take action within 90 days from the closing of the hearing that the adjusters
recommendation becomes final. I did express some questions about the completeness of the
recommendationandthereportwereceivedasitdoesntappeartocomplywithsomeofthe
requirements of 14-9. But, in any event, the suggestion at the time was, well, thats okay, you
know, they did the best they could. So thats how I would respond to your question at this time.
SPRINGER:Thank you.
GALDONES:Further discussion, further questions? Commissioner Salavea.
SALAVEA:To your knowledge was there any impact to the fruit trees on the property
from the blowout that you referred to, I think you said in 91, in terms of their fruit-bearing
ability?
OLSON:The impact from the H2S, no. There was earlier impact from the caustic
soda. They had a system, a scrubber system. They used caustic soda to neutralize the H2S that
was leaking from the plant and from the wells; and they had a vacuum system set up. It sucked
all of this into a central location, and then they poured caustic soda on it; and this was all done in
an open air tank. So if they didnt get the mix right, in other words at some point youd have not
enough caustic soda, you get the H2S. If you didnt, sometimes thered be too much caustic
soda, it would go airborne and it formed this white powder on everything around the plant. It
was reported in the newspaper, samples were taken. The Health Department knows about it.
You know, they were very ambiguous about it; but samples were sent out and it was analyzed
and -. So the short answer to the process, yes, it did affect his crops and it, you know, ate roofs
on houses and things like that around the plant.
SALAVEA:And currently are his plants still surviving now or have they all withered?
OLSON:Well, whoever purchased the place, it doesnt appear that theyre making
any effort to continue the farming operation there, so I really cant say.
SALAVEA:And to what point did he continue to farm his crops, up to the point that he
sold the property?
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OLSON:When the Planning Department notified him that he would be eligible, you
know, for relocation; and, of course, at that point he just, he gave up.
SALAVEA:Okay. All right, thank you very much.
OLSON:Sure.
GALDONES:Commissioner Iwashita.
IWASHITA:Thank you, Mr. Chair. Mr. Olson, I have couple of questions that I hope
you can help clarify. In the report from Wood & Tait dated December 30, 2004, the adjuster
references a letter from a Patrick Tomlinson, quoting from the letter, For Jan to begin again
would mean planting immature trees that would take from seven to ten years to be at the point
that the trees on his land are today. Youre personally familiar with Mr. Malaseks property?
OLSON:Yeah, sure. Ive gone down there and bought produce from him, and
products,yes.
IWASHITA:Okay.Doyouhaveanyinformationthatwouldcontradictthestatement
quoted from Mr. Tomlinsons letter?
OLSON:Well, that it would take -?
IWASHITA:That it would take seven to ten years to -.
OLSON:To get his citrus trees into the same condition that they are, I think thats
probably optimistic considering that he planted those trees, what, 14 years ago, 80 something.
IWASHITA:Okay. The next question I have is the next statement in the Wood & Tait
report states, Based on our knowledge and experience, we believe a 7-year period to replace the
orchard is reasonable and fair. Do you have any comment or testimony related to that?
OLSON:Again, that would seem, from what I know of it, I mean, that seems to be
very optimistic. I mean, you go and look at a tree that has been in production, he planted 14
years ago thats in production, was in production then, how are you going to get a tee to that
same state in 7 years? I mean, considering, again, that he was an organic farmer. He did not use,
you know, pesticides, herbicides, commercial fertilizers and all of those things to get those trees
to the condition they were in when they were in production. So, yeah, thats a pretty
conservative approach.
IWASHITA:Thank you. Thank you, Mr. Olson.
GALDONES:Further discussion? Commissioner Springer?
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SPRINGER:Following up on Commissioner Iwashitas discussion, in our letter from
the Planning Director dated September 1, 2005, on the second page theres a discussion
regarding bananas which may be in full production 12 to 18 months after planting, and papayas
and taro can also be harvested within a year. Im wondering what this statement is based on and
if the Director has taken into consideration that there were also citrus and avocado crops grown
by the applicant.
YUEN:The statement is based on personal experience with bananas as a
commercial banana farmer; and with papayas and taro as a person who has grown them. The
bananas can be in full production in 12 to 18 months. The Schedule F forms that we received do
not itemize between various crops. But in, and Ive just listed what the claimant himself listed as
the principal products in those tax forms. We are not, certainly avocados and citrus take longer
to bear. And we dont know of, we dont know the proportion of income earned from the
various crops, but clearly by his own report some of it was earned from relatively short-term
crops.
GALDONES:CommissionerSpringer?
SPRINGERMr.Director,wouldyouconsiderthenacompensationofthe$3,623for
two years of time a reasonable compensation?
YUEN:I oppose any compensation on the grounds that he is not entitled to any
compensation after selling the property. If the Commission disagrees then I would hope the
Commission takes into account the points made about that some of the crops were relatively
short-term crops and that theres labor involved.
SPRINGER:Mr. Director, in Rule 14 when, lets see, on the sheet thats part of our
background packet, adverse impacts will include physical injury, medical or health conditions,
business or economic loss. How should we consider this business or economic loss? Then, it
seems to me in your letter youre suggesting that the sale of the property was indeed the
compensation due the applicant.
YUEN:Thats right. It terminates a persons right to income from the property
when you sell the property. Certainly a person who had crops or fruit trees affected by a
geothermal event could make a claim against the Geothermal Asset Fund for that loss of crops.
If hydrogen sulfide or caustic soda destroys your crops, you can make a claim; and it would go
through this adjustment process of reviewing the claim. And if youve made your burden of
proof, then thats a legitimate claim that we would respect. Similarly, if you are, you have to
move, youre dispossessed from your house and you move back, then you have a claim for
temporary relocation, youve a claim for temporary accommodations. Our position on the basic
claim is that, as I said, that once you sell your property youre not entitled to earn any income
from it.
SPRINGER:So, Mr. Director, just so that Im clear on what your guidance to us is is
either the applicant could have sold the property, or if he had retained the property then we might
be taking into account this loss of business due to the condition of the land?
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YUEN:If he were making a claim for that. My understanding is he has not ever
claimed that the geothermal conditions hurt his crop. At least he has never made that claim
against the Fund. Theres a list of 30 claims that have been made over time by Mr. Malasek, and
none of them is for damage to his crops per se. And this claim here is not for damage to his
crops per se. Its actually that he could have continued his farm but having sold his property to
the Fund he is no longer going to earn money from his farm, and he wants income for the interim
work he establishes for an equivalent kind of farm.
OLSON:Point of information if I may.
GALDONES:Yes, Mr. Olson.
OLSON:The fact of the matter is that during the incident that we talked about
earlierwiththecausticsoda,Mr.Malasekdidtrytofileaclaimfordamagetohiscrops.The
Planning Department at the time rejected it because these rules did not exist at the time. The
rule-making had not been completed; and, in fact, if you will look to see when the rule-making
came into effect, youll find out that a lot of the people attempted to make claims to a process
that while it was in the permit had not been formulated by the Planning Department for the
Planning Commission to do. So you cant submit a claim for a process that doesnt exist. And
thats the way they left a lot of people hanging.
GALDONES:Mr. Iwashita.
IWASHITA:I have a question. In this proceeding I note that Wood & Tait or
representative of Wood & Tait, Mr. Wood, is not present to, you know, for us to be able to ask
questions based on the report. And I was wondering why the adjuster is not here. Is there a
reason why the adjuster is not here?
HAYASHI:As far as the adjuster, we did not inform him of the meeting. However, if
the Commission wanted Mr. Wood here then if you had indicated that to us then we would have
asked him to be in attendance today.
IWASHITA:Thank you. The reason I had brought that up is, you know, in going
through the rule again, Rule 14, again, to me there is emphasis on this process, initiating and
focusing on; and ultimately if this body does nothing, everything the adjuster does is what
controls. There is a great emphasis in my opinion under the rule, you know, in reliance upon the
adjuster and the work the adjuster does in terms of whether or not a claim is made; and therefore,
I would suggest there is a deference under the rule to the work that the adjuster does.
One of the problems I have with where we are in this process, this body, is that suggestions are
being made by staff that certain information is incomplete or incorrect, and those kinds of
suggestions are being made. If those concerns were there, you know, I would see those concerns
arose after the report was submitted. In my view of how the rule is written, because the adjuster
is empowered to make the report and the recommendations, that any concerns such as this should
be addressed back to the adjuster, so that the adjuster can take them into consideration and do
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further investigation or whatever needs to be done in order to address those concerns. That was
not done as far as I can see in this case. And so the bottom line to me is that, you know, having
the public hearing to hear this matter is part of our process, but it really, the way this has
developed doesnt provide us any significant additional information. Essentially all Im hearing
is, for lack of a better term right now, speculation really about what if this, what if that, how
come, why not this, why not that. And thats really all it is; and its not really, if you look at the
way the rule is written, those things really dont come up in this procedure. Im focusing now
on, this is Rule 14-8(e), which says, Compensation shall be granted or denied by an affirmative
vote of the majority of the entire voting membership of the Planning Commission (five of the
nine members), and this is the language that is of interest to me now, or by default, or by
default by the Planning Commission choosing not to consider the claims adjusters
recommendation. In other words, we can today choose not to consider the claims adjusters
recommendation. And the net effect of that would be basically this body saying we defer to the
adjuster and what the adjuster did. Because, you know, frankly, the adjuster knows more than
anybodyheretoday.Theadjusterdidallthework,staffdidnotdothework.Theadjustertalked
to all the people the adjuster felt was necessary as required under the rules. The adjuster came
up with the report and the recommendation. And were being asked to question or disagree with
the adjusters recommendation based upon frankly I dont know what, other than suggestions
that the adjuster is wrong and the adjuster should not have decided that this is a compensable
claim under Rule 14-6(c). You know, and thats an argument.
I understand the concern because Mr. Malasek did sell the property and that is, you know,
obviously raised a question, well, how can you still have a claim if you sold the property. You
know, but, as I stated at the last hearing this rule is not clearly written, shall we say, to put it in a,
as positive a light as I can say. So there is room for argument here. And the adjuster, knowing
the rule, having followed the rule, you know, basically says there is an adverse impact, has
defined what that is, and put a range of numbers on it. And I find it difficult on the record that
has been presented to us to try and challenge what the adjuster has come up with. So my
deference is, right now, to follow 14-8(e) and have this body chose not, to consider the claims
adjusters recommendation, make it clear on the record deference is being given to the adjuster
and let it stand that way.
GALDONES:Commissioners, any further discussions? Commissioner Springer.
SPRINGER:Could you clarify for me if I heard the Commissioner correctly, and I
dont have the rule in front of me, if we do not have a vote of five today, if the vote is split
similarly to the way that it was previously, what happens? Does automatically the adjusters, is
the adjusters report accepted or do we hear it again?
GALDONES:We should yield to Mr. Torigoe.
SPRINGER:Thank you.
TORIGOE:Thank you, Mr. Chairman. Under your Rule 14-10(a), end of that says
that , If the Planning Commission does not make a decision on the claims adjusters
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recommendation within ninety (90) days from the close of the hearing, the claims adjusters
recommendation becomes final.
You know, we reopened the hearing today and so I think the clock would start running again.
The other interesting wrinkle is that the adjusters recommendation here does not have a solid
number on it. It has a range in it, so that becomes a problem.
GALDONES:Commissioner Springer.
SPRINGER:Could that problem be properly addressed by having the adjuster appear
before us and have a deeper discussion of the range?
TORIGOE:Thats a possibility. But I think also you should consider that, looking at
your Rule 14-8(c) which talks about how you deal with the claims adjusters recommendation, it
says,ThePlanningCommissionmayvotetopaytheclaimant(s)afterreviewingthesupporting
documents and the recommendation made by the claims adjuster if it finds, you know, that there
should be an impact and theres, an appropriate amount of damage can be compensated for. But,
basically, its saying that you look at whatever supporting documents and the recommendation,
and I think we also have to read in at this point testimony because these rules are kind of
outdated. These rules, the way theyre written, allow an appeal to the Board of Appeals; and as
we know, you know, thats no longer the case under the Charter amendments. And, so,
basically, I think we have to consider this to be the contested case; and if there is relevant
testimony such as whatever testimony from personal knowledge Mr. Olson is bringing, as well as
testimony from the Planning Director upon his review of the record and his experience as a
farmer, I think those are relevant things that you can use to fill in the gaps here. So, again, going
back to what the rule says, you can vote on a claim if you have substantial evidence based on the
documents, I think the testimony also, along with the recommendation of the claims adjuster.
So, for instance, if you felt like there was a basis for saying that there was adverse impact and
you believe that a certain amount of compensation should be paid and if you feel the evidence is
clear enough for you to make a reasonable determination, then you could make, you know, take
the claims adjusters recommendation and put a number on it where he has a range. I think thats
within your discretion to do. Or if you feel that the evidence is really not sufficient to make
those kinds of findings, that you can make a rejection.
GALDONES:Commissioner Springer.
SPRINGER:As Commissioners were, often were admonished not to take our
personal, we need to base our discussion and decisions on the merits of the evidence before us,
setting aside our personal opinions and experiences. And Im wondering if the Planning Director
may, how we should treat his opinion as a farmer in his letter to us as the Planning Director, if
his basis for the statement that 12 to 18 months after planting papayas and taro can be harvested
within a year is based on his experience as a commercial farmer, is that valid?
IWASHITA:Mr. Chair, I have a related comment on the question.
GALDONES:I would like to have Mr. Torigoe respond to her question first.
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IWASHITA:Sure.
TORIGOE:Well, again, treating this as a contested case basically any relevant
testimony you can consider. And so if you want to further probe into the extent to which the
Planning Director has actual experience that relate to that, well, you can do that. I think it
probably goes to the weight of the evidence rather than to its admissibility. And in a matter like
this, I think the Planning Director basically, again, would be a party; and so you can treat him as
such.
GALDONES:Commissioner -.
YUEN:If I could just say one thing on that. The role of the Department in
providing factual information, or even opinion, is different than the role of the Commissioners.
We,ineveryapplicationwewillprovidefactualinformationthatsometimesmaynotberight.
But thats what we do. And so when we talk about the Commissioners not interjecting
information that is not broadly known into the proceedings, theres a difference between the role
of the Department as staff or as party to a contested case and the Commissioners as the decision
makers.
GALDONES:Commissioner Iwashita?
IWASHITA:Thank you, Mr. Chair. Im going to venture into, maybe, quicksand
because now Im going to put on my sort of lawyer training here. The rule we have to follow is
Rule 14. And I have some concerns about the rule with regard to how staff and the Director are
factored into the implementation of the rule. And Ive gone through the eight pages that
constitute my copy of the rule provided to me and I find nothing in these eight pages on staffs or
the Directors participation in this process, nothing. All references are to the Commission and to
the adjuster. Okay?
So if, and I agree with counsel that this is a contested case type of matter that, the result of which
may be appealed by the applicant. And so we if want to dot our is and cross our ts and
make sure we peel only the right bananas, if the Director, or staff, or otherwise wants to make a
record, a proper record, in this contested case matter then it should be done the way its usually
done, by sworn testimony before the body. Otherwise it doesnt appear to me that we as a
Commission under Rule 14 can take anything other than the report of the adjuster and whatever
is actually placed on the record before us under oath into consideration in reaching whatever
decision we come to reach in this matter.
GALDONES:Mr. Yuen.
YUEN:Two things: first on the authority of the Director to make
recommendations on this matter comes from the County Charter which says that the Director
advises the Planning Commission on matters within their responsibility. Second, on the point of
whether matters should be submitted, matters like a background report, we would be happy to be
under oath for such matters. That has not been the general practice for the Departments
13
background report to be accompanied by an oath or other affirmation, nor we -. In typical
contested cases involving intervenors with formal contested cases, documents are routinely
accepted, written documents are routinely accepted without being sworn to.
IWASHITA:I dont have any problem accepting advice from staff and the Director.
Its just in the contested case process that were involved in, my point is that thats all it is, its
advice. And its not something that the Commission can rely on as evidence as part of the record
in reaching its decision. Because, for example, in the Directors last letter, the Director says the
sale ended his rights to the property, including the right to earn income from fruit trees. Thats
advice. If we, lets say thats advice. But thats not something that the Commission can rely on,
you know, as a matter of fact in this case that thats how the rule is to be read. The decision on
how the rule is to be read is to be made by the Commission. The decision on how the rule is to
be applied is to be made by the Commission. The advice of the Director is welcomed and can be
looked at it that way, but its advice. And its not controlling and cannot be controlling of this
body.
And,youknow,lookingatRule14and,again,theDirectorandthestaffreallyhavenorolein
the rule directly to this bodys consideration and approval of, or deference to the adjusters
recommendation. You know, that whole process, its adjuster makes recommendations, the
Commission either accepts it, denies it or defers. Thats the process. There is nothing in the rule
itself that says, you know, basically staff or the Director has input. And I acknowledge that
under the Charter the Director is required to provide advice to the Commission. But, again, you
know, were working under Rule 14 and, to me, we should, thats primarily what should control
our process.
GALDONES:Im going to have Mr. Torigoe make a statement and Im going to call for
a short recess thereafter.
TORIGOE:Okay. Thank you, Mr. Chairman. Just with respect to the Directors role,
you know, everybody acknowledges that the Charter says that the Director advises the
Commission. We also acknowledge that this should be considered a contested case. And under
your Contested Case Rule 4-7 it says that, In all proceedings where the Commissions action is
directly appealable to Circuit Court, including this one, the applicant and the Planning Director
will be designated parties to the action. So that is, you know, the Director is a party, the
Director can participate as such and can testify as such.
Now Commissioner Iwashita raises a good point in that if were going to be taking testimony
then at some point it would be good to swear the people who are giving that testimony if its
factual. And when we have formal contested case procedures, that certainly has been the
practice to swear everybody in, and also to make sure that whatever documents are properly
recognized as being in evidence. In times when you dont have a real formal adversarial
contested procedure going weve tended not to be that formal. But it doesnt hurt at the end, you
know, when you have all the evidence in to make sure that all the parties are satisfied, that
whatever they want to present is in the record, and have that designated and, if you also want to,
at some point, say, you know, we have been treating this as a fairly informal proceeding by
apparent consensus of the Commission and parties. But if the parties want at the end to affirm
14
that all that they have presented is to the best of their knowledge true and accurate, you know, in
a form of oath, then I think that couldnt hurt either. So we can we deal with these things in a
fairly informal fashion but try and preserve some of the attention to truthfulness and to the sworn
accuracy of the testimony that Commissioner Iwashita has raised.
IWASHITA:I have a lawyerly kind of question.
GALDONES:Commissioner Iwashita, is it going to take a while? Weve been -.
IWASHITA:I hope, I dont think so, cause I just, theres a dynamic here between the
contested case rule and Rule 14.
GALDONES:No, I understand that. But the Commissioners have been here sitting here
for a while now and Im prepared to call for a short recess, and continue the dialogue thereafter.
Thatsthepurposeofmyask-.
IWASHITA:Justforoneortwominutes,Mr.Chair?Isthatokay?
GALDONES:Ifyoucouldexpediteit.
IWASHITA:Yeah,justoneortwominutes.
GALDONES: Im sure the Commissioners would appreciate if you could expedite it.
IWASHITA:Thank you. So Im not, because Rule 14 doesnt you know, directly
reference the Director, Directors role in implementing the rule, can you explain to me -. I
understand youre saying, you know, this is a, youre defining it as a contested case type of
matter because it is appealable; and I agree with that. But how does that, I dont understand
exactly then the role of the Director as a party when Rule 14 doesnt, you know, specify that and
the Commission as a body is the one empowered to make the decision.
GALDONES:Mr. Torigoe, would you like to research that?
TORIGOE:No, let me just really briefly address it. I think as in, basically, the Rule
14 sets out what the Commissions duties are and what the standards basically are. And under
Rule 4, the contested case rules, you know, the Director can come in as a party and present
witnesses and cross-examine and everything, if thats what he wants to do. So I think you can
harmonize those two and say the Director comes in, Mr. Olson or the party comes in, and they
can place whatever evidence on the record, and then the Commission has to apply Rule 14 to that
evidence and make a decision. Thats basically it.
GALDONES:Okay. Im going to call for a short recess.
RECESSEDThe Chair called for a short recess at 11:10 a.m.
RECONVENEDThe meeting reconvened at 11:22 a.m.
15
GALDONES:Will the Hawaii County Planning Commission be back in order. Further
discussion on this application?
ALAMEDA:Question.
GALDONES:Commissioner Alameda.
ALAMEDA:Sure, I might as well get in the mix. I remember as I was chairing this last
meeting on this subject, the relocation program from the County, I think I heard correctly it
doesnt offer 100 percent. Its 130 percent, is that correct?
YUEN:Yes. Its up to 130 percent of assessed, thats the taxed assessed
valuation.
ALAMEDA:Okay. Thats what I remember. Thank you.
SALAVEA:Chair?
GALDONES:Commissioner Salavea.
SALAVEA:Just, I guess, point of clarification from counsel. Our role as
Commissioners on this particular agenda item is to identify whether or not, and you can correct
me if Im wrong, whether or not, or to establish if there was adverse impact upon the application
to the GAF, is that correct?
TORIGOE:Thats the first criterion under Rule 14-8(c)(1), Adverse Impact from the
geothermal activities.
SALAVEA:And that would help govern our decision whether, or whatever action we
did take?
TORIGOE:Right. If you think the evidence does not support a finding of adverse
impact by the geothermal activities, then, you know, thats the end. You shouldnt go any
further. If you think that the evidence shows that there was adverse impact from the geothermal
activity, then you can consider if there was, you can award an amount of compensation
appropriate for the damage caused by the adverse impact.
SALAVEA:All right. That answers my question. Thank you.
SPRINGER:Mr. Chair?
GALDONES:Commissioner Springer.
SPRINGER:To the Director, I think I understood correctly from Mr. Olson that a
grievance process did not exist at the time that the grievance occurred, that were being asked to
16
consider that a claim would have been filed by the applicant of this complaint if the process had
existed. Did I misunderstand?
YUEN:What I think he was, Mr. Olson was responding to my comment that of the
many complaints filed by Mr. Malasek none of them claimed damage to his trees. Mr. Olson
then, and he can correct me if Im wrong, said that he would have filed such a claim earlier but
that the claim process didnt exist at the time. The major blowout occurred in 1991 and Im not
sure when this rule came in as far as compensation. And Im not sure what the timeframe was
for the rule as to, you know, the time period before the enactment of the rule. All that Im not
sure of. So I think thats the gist of what has been said here. And, I dont know, this particular, I
dont know that he, whether or not he did have damage to his plants before the rule was in effect.
All I can say is that he did not claim, that he began, there are a number of claims starting with, I
believe, 1997 from Malasek, and none of those involved damage to the plants.
SPRINGER:Thankyou.
GALDONES:Seeingnofurtherdiscussion,Mr.Olson,doyouhaveaclosingstatement
youd like to make before we go into decision making?
OLSON:Certainly. Just to answer your question, that the reference to the blowout
of course is not particularly relevant. That is the big impact that everybody got to see. You
know, it sent everybody scurrying from here to Honolulu, right? That was the biggey. The
surrounding community actually suffered far more impact from all those little events, the little
leaks here, the caustic soda. You know, if, I dont know how this is going to go but certainly at
some point if it goes against him well certainly supply all of these documents. Theyre all well
reported. You know, there are stacks. Ive got boxes, and boxes, and boxes of this stuff. So yes,
there -. And while the permit required that the rules be adopted, somehow or another the
Planning Department just never got around to it. And so there was a stack of people who filed
for loses or attempted to and were simply told that, you know, the rules hadnt been adopted and
they could come back whenever the Planning Department got around to it. So thats what
happened there.
As far as the closing statement, I dont really know what more I can tell you that I havent
already told you, except that youre hearing it from somebody who lived through it. I was right
there. I saw this man suffer. And this has cost him a great deal. And in terms of what he does
and the way he perceives himself, this has been very humiliating for him. Hes just a little
farmer guy and hes just trying to make a living.
And it is interesting that the only guy in this whole process of geothermal who stepped up to the
plate and said Im sorry its governments fault that this has happened to you happens to be the
Mayor of this County today. I mean hes the only one left with any credibility; and much of it
revolves around the fact that he took responsibility for his part in a failure to prevent what has
happened, and whats still happening on a lesser scale. So you can throw that into the mix.
I do have one other question, Mr. Chairman. Is it your understanding that the Planning
Department hired the claims adjuster because they believed that they had the expertise to do the
17
job? And its a rhetorical question. I mean either the Planning Department hired these people
because they felt that they were competent and qualified to make the call or not. Thank you.
GALDONES:Commissioners, any further discussion or any further questions? Seeing
that theres no further questions and I dont see anyone else from the public here to testify, the
Chair is going to declare the public testimony part of this hearing closed. Were going into
decision making. Commissioners, the Planning Director recommends that the claim be denied
by the Planning Commission.
IWASHITA:Mr. Chair?
GALDONES:Commissioner Iwashita.
IWASHITA:Thank you, Mr. Chair. Im prepared to make a motion.
GALDONES:Motion is in order.
IWASHITA:Thank you, Mr. Chair. I move that the Planning Commission choose not
toconsidertheclaimsadjusters,Idontknowifthis,itssortofawkwardlanguage.Ichoose
that the Planning Commission, I choose, I move that the Planning Commission pursuant to Rule
14-8(e) defer to the Claim Adjusters recommendation.
GALDONES:Seeing that theres no second, is it because there is no clarity to his motion
or there will be no second to his motion?
SPRINGER:Could I have the motion repeated?
IWASHITA:Certainly. I move that the Planning Commission pursuant to Rule 14-8(e)
defer to the recommendation of the claims adjuster.
SPRINGER:May I have a further clarification -?
IWASHITA:Sure.
SPRINGER:Of what the motion is? Does that include, he gives a range for payment.
IWASHITA:Yeah, I understand the concern expressed about that. But, you know,
thats the way the report came in; and the reason for my motion is that I think thats, given
everything that has happened in these proceedings, I think thats the best way to go. But thats
why I make it. If nobody wants to second, thats up to you guys.
SPRINGER:Second, for the purposes of discussion and then discussion.
IWASHITA:Thank you.
18
GALDONES:It has been moved by Commissioner Iwashita and seconded by
Commissioner Springer that we defer to the recommendation of the claims adjuster.
IWASHITA:Mr. Chair, as the maker of the motion, can I ask for the opportunity to
present the first discussion?
GALDONES:Yes, you may.
IWASHITA:Thank you. Thank you, Mr. Chair. The reason I made the motion, fellow
Commissioners, is that the way this matter has come before this body, to me, emphasizes the
reliance of Rule 14 upon the claims adjusters hiring, the claims adjusters work and
investigation, and the claims adjusters preparation of the report and recommendation. And
theres a lot that the claims adjuster did obviously thats not even in the paper record that weve
had. I know its in the complete file or in a more complete file with the Department. But
becauseofthebackandforthonhowtheruleistobeappliedandallofthat,Ibelievethat
because Rule 14 in total gives deference to the claims adjuster, and the claims adjusters work
and the claims adjusters recommendation, that given all of the circumstances and what weve
heard thus far in this proceeding that deference to the claims adjuster is the best way to proceed,
and dare I say the fairest way to proceed.
GALDONES:Commissioner Springer.
SPRINGER:Im just wondering if there are any other, if there have been any other
cases of this sort that have been considered and decided upon.
GALDONES:Norman, would you know?
HAYASHI:Examples in terms of -?
SPRINGER:Just this process that were going through where a consultant firm is
retained and then a report presented to the Planning Commission, and the decision rendered from
that.
HAYASHI:Normally, we, well, this would be the only occasion where we would hire
a consultant or hearings officer. So I guess I can say this would be the first time.
SPRINGER:Well, as Commissioner Iwashita has articulated, I feel most comfortable
relying upon the expertise of the Wood & Tait consultant firm which was hired by the County
for the purpose of providing a report to the Planning Commission on this matter.
GALDONES:Further discussion?
ALAMEDA:I -.
GALDONES:Commissioner Alameda.
19
ALAMEDA:I just want to make a comment. I think its important to note that the
claims adjusters report is a recommendation; and, you know, to me thats a big difference from
it being a mandate. Its a recommendationfor us to consider. Thats all. Thank you.
SALAVEA:Mr. Chair?
GALDONES:Commissioner Salavea.
SALAVEA:Thank you. I agree with Commissioner Alameda that its a
recommendation and I still, I feel that our responsibility is to establish whether or not theres any
adverse impact to the business itself, because thats what is applicable in this instance. Not
adverse impact to the individual which caused the person to sell the property because he couldnt
live in that area but adverse impact. Thats the way Im reading into this, is that adverse impact
to the business. And I dont think through testimony adverse impact to the business has been
established.Iftherewasdocumentationsayingpriortothe91blowoutsalesoffruitswereata
certain level and after the event the sales dropped or the production of fruit by these trees were
lessened because of the impact I would feel comfortable compensating Mr. Malasek for that.
But in my mind that hasnt been established in any shape or form. The fact that he submitted
documentation to the asset or the claims person kind of showed that the business continued to
produce at a certain level. So thats why I asked for clarification from counsel, is if its to
establish adverse impact on the business; and thats where Im going with my discussion.
IWASHITA:Mr. Chair?
GALDONES:Are there any other first-time speakers? Otherwise, I will call upon
Commissioner Iwashita. Commissioner Iwashita.
IWASHITA:Thank you, Mr. Chair. I view this claim not as the business or economic
loss, not necessarily that, but as the any other claim of adverse impact which is able to be
substantiated by evidence. And as I understand the claim, Commissioner Salavea is correct in
saying that there is no evidence that the actual, theres a decrease in his production and all of
that. And my understanding is that that is not the claim. And so the claim is not that his, he was
making $10,000 a year before the blowout and then now hes making $3,000 so he should be
compensated. The claim is that because of the geothermal conditions he essentially was forced
to sell his property. If, you know, if it was a perfect world he would not have sold the property,
he would still be there today, you know, selling his fruit and other things for $3,000 to $4,000 a
year net. But because of the conditions he had to sell the property. And the claim is that when
he got paid for that, that 130 percent of the taxed assessed value, part of what was not included in
that payment was any consideration for his income. And the record is clear in what Wood &
Tait has submitted that the Tax Office made it expressly clear that the 130 percent that Mr.
Malasek received from the separate relocation program did not include any compensation for
that, none at all. It was not even considered as part of the compensation. Thats what our record
is clear.
So that this claim is for, Mr. Malaseks claim as I understand it is that because that was not
considered that constitutes any other claim of adverse impact for which he should be
20
compensated. So its clear that the claim hes making was never considered in the other rule
program so that, again, thats clear to me that he has not been compensated for what he is being
asked to be compensated for in this proceeding. And then the question is whether or not, you
know, the fact that, -. So its a claim that, hey, I lost out on this money because I had to sell, and
Im not able to get it at the, you know, at the place I have and its going to take me all the seven
years to get back to where I was making this money so I should be compensated over that period
of time. And hes not saying that -. You know, thats essentially as how I see it. Thats the
question that was put to the adjuster, the adjuster went and did his work and made the
recommendation. And so thats why I think that its best to defer to the adjusters
recommendation. We dont have any new evidence that the adjuster didnt have in making the
recommendation for compensation. We dont have anything new. We have some different
arguments that maybe the adjuster, I dont know what the adjuster considered, whatever the
dynamic was in doing the investigation or if there was any interaction with the Department on, or
the Director on coming up with how this should be done. But, you know, and I dont know if
thatsevenappropriatetoconsider.
But,again,becausethisisanyotherclaimanditsnotaclaimforanactualeconomicloss,thats
how I view that, that we need to view it as a claim under 14-6(c), the very last provision that says
that compensation can be made for any other claim of adverse impact which is able to be
substantiated by the evidence. And Wood & Taits Report basically summarizes that, that this
claim was substantiated by its investigation, the evidence it saw. And thats why I think its best
for us to defer to that, because we dont have all of that.
SPRINGER:Mr. Chair?
GALDONES:Commissioner Springer.
SPRINGER:While the adjuster submitted that range, I believe that we need to put a
dollar value to it. I see from the previous record, the record of the previous discussion on this
th
matter on August 5
, that just for clarification the approval recommendation is to award the
claimant compensation totaling the amount of $25,361, which is an amount represented in the
adjusters report. Is that the nature of this motion?
IWASHITA:No. That motion failed last time and so I dont like to fail twice doing the
same thing. I know Im crazy but I dont want to be declared insane. So the reason Im making
this motion in this manner is, I understand the concern about this range and if it actually goes
through what Mr. Malasek would actually get paid. Okay, I understand that thats a concern
because the recommendation will become the decision. You know, and its going to be this
range, right? I understand that concern. But, you know, I think that administratively or however
that works out, thatll get dealt with by the Fund, whoever has to cut the check. And I guess the
worstthingthatcanhappenifyouwanttoputavaluejudgmentonitisthatthehighestamount
is the amount that will be paid. And I dont have a problem with that, if thats actually the result
ofthemotion.
SPRINGER:Mr.Chair?
21
GALDONES:Commissioner Springer.
SPRINGER:I do have aproblem with that. And Im just wondering if theres any, I
have heard clearly what Commissioner Iwashita has said to us. Should this motion pass as it is,
how would a dollar amount be arrived at, or is that even an option? Is it the responsibility of this
body to set a dollar motion into place?
GALDONES:I have an opinion to that, but Ill yield to our counsel.
SPRINGER:Thanks.
TORIGOE:Thank you, Mr. Chair. I think the amount of any award will be something
that the Commission could set. Again, youre not bound by the recommendation. In fact, the
recommendation opens the door to you basically saying that they recommend a range so they
donthavea-,andWood&Taitdidnothaveaspecificamountinmind.ButIthinkthatyou
can act based on what you believe the evidence would support. Id also add that since
Commissioner Salavea had asked me for some advice regarding adverse impact, in short I think
Commissioner Iwashita has properly stated what the nature of the claim is, basically that theyre
saying that but for having to sell the property due to the geothermal impact, they would have
continued or Mr. Malasek would have continued to have income from the farming that he was
doing. And so because Mr. Malasek sold the property based on the geothermal impact, and it
would have taken him a certain amount of time to get productive on another piece of property, he
looses out on that ramp up period, right, before you get into production. And so Im not
advocating for or against that position. I think thats basically the statement of what the claim is
at this point. So you need to look at that question of adverse impact in that light.
And as Commissioner Springer earlier noted, it may be that when you look at the evidence it
may be if you give credence to the Planning Directors testimony about being able to get into
production in two years or so, if you want to use banana and taro, you know, if you accept that
testimony as credible and you think that thats true, then that might be one type of decision that
you come to, as to say, well, we think that there was impact based on geothermal but we think
that the loss period would only be a couple of years. Again, Im not advocating that. Im just
giving that to you as an example of the kind of thing that you could do based on your view of the
evidence.
SPRINGER:Mr. Chair?
GALDONES:Commissioner Springer.
SPRINGER:Thank you, Mr. Torigoe. With that in mind, may I offer an amendment to
the motion that sets a price specific for compensation?
GALDONES:It is in order.
SPRINGER:I move that the amount of compensation to be awarded to Mr. Malasek be
$7,246, which is compensation for two years of production at the value of $3,623 per year.
22
SALAVEA:Second.
GALDONES:Theres a motion to amend. Does the maker consider that to be a friendly
amendment?
IWASHITA:I dont know how to respond to that question.
TORIGOE:Well, let me just say that if there is a proposed amendment and in a small
board like this there is consensus that that is okay, the Chairperson can basically say if theres no
objection to that proposed amendment, then the motion can be considered amended. But, or you
can treat it as a formal motion to amend and go through all that -.
GALDONES:Yeah, okay.
IWASHITA:I see. Thats fine. I consider it a friendly amendment.
ALAMEDA:Chair?
TORIGOE:Okay, Commissioner Alameda.
ALAMEDA:Sorry, could you restate that amended motion?
SPRINGER:That an award in the amount of $7,246 be made to the claimant; and thats
based on the yearly earnings of $3,623, which comes out of the Tait and Wood Report, and
taking into consideration the Planning Directors letter to us that full production of bananas,
papayas and taro can occur two years after planting.
ALAMEDA:Thank you, Commissioner Springer.
SPRINGER:Youre welcome.
GALDONES:Is there any objection to the amendment?
IWASHITA:Again, I consider it a friendly amendment.
GALDONES:Okay. If theres no objection then the motion has been amended.
ALAMEDA:Discussion?
GALDONES:Yes, discussion.
ALAMEDA:Okay. Just for a point of clarification, so if we dont have a majority vote
on this, five, that being, then it goes back again to the claim adjusters range, which is a problem
again.
23
TORIGOE:Right, thats correct. And, basically, I think if we consider the hearing as
having been closed today, then it will be 90 days.
ALAMEDA:And the 90 days, so two questions, one it does go back, thats answered.
The next one is will it come back to this body again? Because the 90 days, well be meeting
again within 90 days.
TORIGOE:Well, you know, thats, I think its up to you guys if you feel like you
want to just defer it until further acted upon and then it just sits for 90 days, and thats another
option. But then youll end up with that range.
ALAMEDA:And since were in discussion mode, for those reasons Im okay with the
motion, if we were to move forward with it. Okay? Thank you.
SPRINGER:Mr.Chair?
GALDONES:CommissionerSpringer.
SPRINGER:Partofmyreasoningformakingthemotionisthattheclaimsadjuster
recommends compensation. Weve received testimony from a commercial farmer who indicates
that two years time is sufficient to get a number of the crops into production; and in the
consultants report we have a report from Patrick Tomilson with 20 years of nursery experience.
So Im taking to heart the consultants recommendation that compensation is due. Im not sure
that seven years is necessary.
GALDONES:Any further discussions? Norman, whatever action we take on this, that
would set the precedent for future claims that is brought before the Geothermal Asset Fund?
HAYASHI:I guess so.
TORIGOE:Well, its not a binding precedent.
GALDONES:Its not binding?
TORIGOE:Well, yeah, Mr. Chairman, basically, these are all taken on their own
merits; but, obviously, you know, you want to be consistent. The other thing you could do is if
you think there are some issues that need to be addressed, for instance, requiring that claims
related to the sale of the property be brought within a certain time frame, you can try to make
rule amendments to make that sort of thing clear.
GALDONES:Well, the reason for my questioning is Im at a quandary at this point in
time and, I guess, I was somewhat like Commissioner Alameda, Id like to bring this to a rest
also. But Im also cautious what kind of impact its going to have in the future in moving
forward. Based upon the statement by counsel, Im comfortable and prepared to more forward.
SPRINGER:Mr. Chair?
24
GALDONES:Commissioner Springer.
SPRINGER:I wonderif atthis time, if I heard Mr. Torigoe correctly, might this body
have an opportunity to improve the process by virtue of our experience here in this case?
TORIGOE:You mean by rule-making or -?
SPRINGER:Yes.
TORIGOE:Sure, you can. I mean not today, but you can go through that process.
SPRINGER:Right. I guess I would just ask if the Planning Department by virtue of
this experience sees any areas for refinement or improvement of this rule, to take advantage of it
basedonthisexperiencesincethisisthefirstcasethatwerehearingunderthisrule,totake
advantage of that opportunity?
GALDONES:Mr. Yuen, can the Department consider that?
YUEN:We, I have some thoughts about what should happen with this rule but Id
rather not get involved while the Commissioners are in decision making. We can discuss that at
a workshop at some time.
YUEN:Thank you. Further discussion? Hearing none, Norman.
HAYASHI:Thank you. Before I take the roll call, just to be clear, the motion is to
defer to claims adjusters recommendation; but the award would be limited to $7,246. Is that
correct?
SPRINGER:Yes.
HAYASHI:With that, Ill take the roll call. Commissioner Iwashita?
IWASHITA:Aye.
HAYASHI:Commissioner Springer?
SPRINGER:Yes.
HAYASHI:Commissioner Alameda?
ALAMEDA:Aye.
HAYASHI:Commissioner Salavea?
SALAVEA:Aye.
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HAYASHI:Chair Galdones?
GALDONES:Aye.
HAYASHI:Mr. Chair, a motion carries with five aye votes.
GALDONES:Thank you, Norman. Mr. Olson, you can inform Mr. Malasek that the
action today will be submitted to him in writing.
OLSON:Thank you.
GALDONES:Youre welcome.
Thediscussionendedat11:55p.m.
Respectfullysubmitted,
Sharon M. Nomura, East Hawaii Secretary
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