Jennifer Elflein

The meeting included a welcome to a new stakeholder representative from District 6. The agenda covered a review of the Water Sensible Program update, a discussion on recent contaminant detections in BWS Supply Wells, general BWS updates, and the schedule for 2025 meetings. Key topics involved updates on the Water Sensible Program, including its historical expansion since 2017 to include residential rebates (washers, toilets, rain barrels, smart monitors, irrigation controllers) and commercial programs (Food Service, audits, retrofits, cooling towers, submeters). Program performance highlighted annual water savings of over 79 million gallons and over 16,000 rebates issued, with high customer satisfaction scores. Outreach efforts, including social media campaigns and direct mail targeting Urban Honolulu, were detailed. The Cuna program for affordable housing residents and the New Construction program were also discussed. Significant attention was given to outreach efforts like Imagine A Day Without Water and Detect A Leak Week. Discussions also covered coordination with Hawaii Energy and the Hawaii Green Infrastructure Authority for multi-family property upgrades, updates on new water efficiency laws for developers effective in 2024 and 2025 (targeting 1.28 GPF toilets), and ongoing activities with the Commercial Stakeholder Advisory Group regarding development planning.

The meeting covered key items related to the Red Hill fuel contamination response. Discussions included the finalization of 10 members for the Red Hill Community Representation Initiative (CRI) group. Updates were provided by the Navy regarding defueling schedules, noting that defueling is set to commence on October 16th and tentatively conclude by mid-January, with gravity defueling planned initially. The Navy's consultant, Nakapuna company, is finalizing a report on non-fuel reuse options, expected by year-end, though the final closure plan approval remains with the EPA and Department of Health. The board also approved the minutes of the public hearing and regular meeting held on August 28, 2023, and adopted a resolution of appreciation for board member Max J. Sword as it was his last day serving on the board. Concerns were raised regarding remediation for past releases and the timeline for final closure plan supplements.

The meeting was a budget workshop focused on the proposed Fiscal Year 2026 Operating Budget and Capital Improvement Program (CIP) budget. The FY26 operating budget is proposed at $283,312,488, representing a 3.9% increase over the prior year, primarily due to increases in material supplies, services, and fixed charges. The CIP budget is proposed at $283,327,500, reflecting a decrease due to the execution and completion of existing projects related to the Red Hill situation. Discussions covered the strategic use of the operating fund balance, with a projected ending balance of $52.6 million, and analysis of financial policies, including debt service coverage ratios and net working capital days. The personnel costs budget showed a decrease due to reduced allocation for COVID-19 related temporary hazard pay, while Materials, Supplies, and Services saw the largest increase, funding source water protection, Red Hill studies, lead service line inventory, and succession planning. Revenue projections anticipate an 11.3% increase, largely driven by metered water rate increases implemented in 2024 and effective in 2025/2026, alongside increased interest income. The CIP discussion emphasized utilizing low-interest loan programs like SRF and WHIFIA to fund infrastructure needs while minimizing costs to ratepayers.

The Board of Water Supply presented proposed water rates in this community meeting. The proposal outlines a five-and-a-half-year plan for rate increases, commencing January 1, 2024, and concluding July 1, 2028. These adjustments are necessitated by escalating operational costs, including inflation and increased electricity expenses, as well as significant capital improvement needs driven partly by the Red Hill crisis. Key strategic elements include a tiered residential rate structure to foster water conservation, continued reduced rates for agricultural and non-potable water, waivers for affordable housing and fire sprinkler system installations, and new initiatives to support new farmers and assist senior citizens with water efficiency. The overarching goal is to ensure the continuous provision of safe and dependable water service while balancing cost recovery with rate affordability.

This document outlines the Board of Water Supply's strategic direction, encompassing a comprehensive Source Water Protection Plan and an update to its Water Master Plan, looking 20-30 years into the future. Key focus areas include proactive risk mitigation for water sources through Best Management Practices, ensuring safe and affordable water supply, adapting to climate change impacts, and addressing new water quality regulations like PFAS and lead/copper rule revisions. The strategy emphasizes inter-agency collaboration, data sharing, public education, and exploring alternative water supplies while aiming to reduce unaccounted-for water and sustain infrastructure.