Candace Gray

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.

The agenda includes discussion on MATERIAL BID NO. 2025-20, FURNISHING AND DELIVERING WAIMEA WATER TREATMENT PLANT RAW WATER VALVE, and a proposed second amendment to the agreement between the Water Board of the County of Hawai'i and the Parker Land Trust. Also on the agenda are monthly progress reports, a review of monthly financial statements, adoption of proposed findings of fact, conclusions of law, and a decision and order for a contested case hearing. The Manager-Chief Engineer will provide updates on North Kona Wells and the retiree Nora Avenue. There will be an executive session for the Manager-Chief Engineer and Deputy Evaluation for Calendar Year 2025, followed by discussion and action on the evaluation and compensation. The Chairperson will report on matters of interest to the Board, including the term end for Board Member Michael Bell.

The meeting addressed several key issues, including a time extension request for the Laupāhoehoe reservoir project due to inclement weather and additional work. The contract for the Paukā'a waterline relocation was awarded to Koga Engineering & Construction, Inc. A time extension was approved for the Laupāhoehoe Deepwell A repair, and additional funds and a time extension were approved for the Kaloko Mauka #1 Station Boosters B & D repair. The board also discussed unforeseen delays and potential amendments to the General Requirements and Covenants, including input from contractors and subcontractors. Additionally, there was an update on the National Parks Service's petition to designate Keauhou Aquifer as a ground water management area, and the board reviewed monthly financial statements and discussed the power cost charge increase. Finally, the board discussed water restrictions due to wells being down and the next steps.