Candace Gray

The Water Board held a public hearing to discuss a proposed amendment to the Power Cost Charge. The Department of Water Supply recommended a decrease in the Power Cost Charge from $2.98 to $2.84 per thousand gallons to align with current power cost reductions. The hearing served as an opportunity for the public to provide testimony or comments regarding the adjustment.

The board discussed a proposal to decrease the Power Cost Charge based on decreased power costs from all sources. A presentation was provided on the Strategic and Business Plans, focusing on prioritizing and creating a framework for utility management. The board approved the contract award for the Panaʻewa Wells A & B Repair project and accepted dedications for the Park View Subdivision water system. Additionally, progress reports were provided on ongoing projects, including the Lālāmilo Reservoir, and financial statements were reviewed. The Manager-Chief Engineer provided updates on North Kona wells, a quarterly energy report, the AWWA Annual Conference, and recognized an Employee of the Quarter.

The Water Board Meeting addressed several critical items. Discussion took place regarding the proposed reduction of the Power Cost Charge from $2.98 to $2.84 per thousand gallons, necessitating a Public Hearing scheduled for February 24, 2026. A significant agenda item involved approving additional contingency funds of $1,160,000.00 and a time extension of 1,110 calendar days for JOB NO. 2019-1107, the Lālāmilo 10 MG Reservoir project, due to delays related to site negotiation and permitting. The Board also approved an increase in contingency of $2,443.00 for motor refurbishment related to JOB NO. 2025-1263, Lālāmilo A Deepwell Motor Repair. Furthermore, an additional $7,375.00 contingency was approved for MATERIAL BID NO. 2025-05 to change materials of construction for spare equipment intended for Saddle Road #1 Deepwell A. Progress reports included updates on the Lālāmilo 10 MG reservoir construction and restoration efforts following the 2018 Lava Eruption under FEMA funding, as well as the status of HOVE Well No. 2 feasibility study. A review of the December 2025 financial statements indicated positive fiscal tracking, including a decrease in delinquencies over 90 days, and discussions covered the budgeted Temporary Hazard Payout. The Manager-Chief Engineer provided an update on the North Kona wells, noting that three of the fourteen sources remain offline with estimated return-to-service dates.

The key discussions during the meeting involved several agenda items. For Material Bid No. 2025-20 regarding a Waimea Water Treatment Plant Raw Water Valve, no responsive bids were received, and the staff recommended resoliciting the bid. The Board approved the Proposed Second Amendment to the Agreement with the Parker Land Trust, which assigns remaining water entitlements from Parker Ranch Well No. 1 to a specified development area. In project updates, progress was reported on the Kapoho waterline replacement (40% complete) and the Lālāmilo 10MG Reservoir slab construction. The monthly financial statements were reviewed, noting that revenues were slightly below target and highlighting a significant liability increase due to a new accounting standard for accrued employee leave. The Board also adopted the Findings of Fact, Conclusions of Law, and Decision and Order for a November 25, 2025, contested case hearing appeal. Updates were provided on the status of three offline North Kona Wells. Finally, the Board convened an executive session to evaluate the Manager-Chief Engineer and Deputy for Calendar Year 2025, subsequently approving recommended salary increases for 2026 for both positions.

The meeting included a contested case hearing regarding a water service account and a presentation on Effective Utility Management (EUM) attributes. The contested case involved an appeal of a proposed shut-off notice due to a high water bill resulting from a leak. The presentation covered the ten effective utility management attributes and included a survey activity to rank these attributes in terms of importance for updating the Strategic and Business Plans.