Piiholo South Well Presentation

Maui County Council Water Resource Committee

September 7, 2010

When you are thirsty, it is too late to think about digging a well. ~Japanese Proverb

1994

Upcountry Water Meter Priority List initiated after the 1977 Kula List is invalidated by the courts.

2005

Piiholo South, 325 acres adjacent to Makawao,

purchased by a hui of 25 individuals, couples, and

families.

2007

Maui County enacts “Show Me the Water” law.

2007-2008

Working with DWS, Maui Pine drills Piiholo North well. Well underperforms and DWS

turns it down.

2008

Piiholo South LLC drills Piiholo South well to Maui County

standards. The well is the most productive well in Upcountry

history.

2008

1312 Residents on the Upcountry Water Meter List.

Applicant #1 waiting since October 8, 1996.

2010 Water Meter List frozen since 2005.

DWS not acting.

Council refers resolution to Committee urging mayor to negotiate a de facto taking of the Piiholo South Well.

The resolution is not realistic. Piiholo South will not negotiate a taking of its property.

However, the resolution succeeds in bringing the question, What are we going to do? to a head.

That’s why we’re all here today.

September, 2010

An unprecedented opportunity for decisive action to swiftly and dramatically reduce the Upcountry Water Meter List.

Three parties: The executive branch, the legislative branch, and the owner.

Acting together, on behalf of the people of Maui, we can bring an end to sixteen years of failure to find a working solution.

Well Specifications Elevation: 1694.93 feet

Depth of Well: 1822 feet

Hole Diameter: 20 inches

Casing Diameter: 14 inches

Casing Length: 1768 feet

Perforated Casing Length: 54 feet

Cement Grout: 1560 feet

Depth to Water: 1685.6 feet

Pump Test Pumping at 1200 gallons per minute, equivalent to

1,728,000 gallons per day, the drawdown is 1.65 feet.

Recovery time after pumping: 17 minutes.

Chloride measurement stable at 10 mg/L.

Average water temperature: 66.5 degrees.

Total water pumped in 96 hours: 6,174,200 gallons. Average: 1,543,500 gallons per day.

Mink and Yuen, Engineers

Water Purity Running through subterranean formations

and percolating down to the basal aquifer from slopes miles mauka of us.

Certified by Pural Water Specialty Company of Maui and Oahu.

Piiholo South’s water meets or exceeds EPA and Department of Health standards and is drinkable right out of the well.

Piiholo South Well

1,728,000 gallons of pristine water per day.

At the water hub of Upcountry, adjacent to the Po’okela and Maluhia Tanks, and very near the West Olinda Treatment Facility and the Piiholo Treatment Facility.

Alternatives for Piiholo South well

A. Remain Private

B. Dedication with Allocation of Credits

C. Purchase

Remain Private

Business as usual for Maui County. No solution or relief for Upcountry Water Meter List applicants.

DWS keeps studying the problem.

Dedication and Allocation

Maui County Formula

Piiholo South retains rights to 75% of 45% of the well, equivalent to 34% of its production.

Maui County receives rights to 25% of 45% of the well PLUS has County jurisdiction over 100% of remaining 55% of the well. A total of 66% of the well’s production.

320 new meters will be the result Upcountry.

Maui County purchases the well

1296 meters will be the result Upcountry.

Four times the number of meters compared to the Dedication and Allocation option.

Piiholo South LLC will retain and pay for approximately 30 of these 1296 meters.

“Economic Analysis indicates that the cost to mitigate decreased drought period capacity (Upcountry) using

groundwater basal wells…is $7 to 8 million for each 1 million gallon per

day impact.”

• Impacts of Amended Interim Instream Flow Standards on Drought Period Reliable Capacity, Page 1, Appendix C, Upcountry Water Use and Development Plan, Maui County Department of Water Supply, July 25, 2009

Purchase

Cost of the Piiholo South Well Generating Value for Maui County

$3.75 million for completed pump and 1.728 million gallon well. $4.25 million for infrastructure. $8 million total cost.

Infrastructure Link to the Po’okela Tank. Improve flow capacity along a half-mile of Olinda Road from the West

Olinda Treatment Facility serving Upper Kula. Build infrastructure for close to a mile along Piiholo Road. Build a new 225,000 gallon tank for storage for DWS water en route

from Haiku to Olinda.

All for the same cost as adding 1 million gallons capacity from a groundwater basal well.

However the Piiholo South Well is 72.8% larger than 1 million gallons.

Water System Map

Benefits of Purchase Fulfills nearly 50% of the Upcountry Water Meter List. Now.

Benefits thousands of Upcountry residents and their families.

Generates more than $8 million in water meter fees to help pay for the well.

Over the next ten years adds approximately $400 million of assessed valuation in homes to property tax rolls, generating about $2 million per year for Maui County.

Annual Return on Maui County Investment: 25%.

Within very few years, the Piiholo South well pays for itself several times over.

Creates several thousand people-years of employment for Maui construction workers and material providers.

Affordable Housing A 3 bedroom, 2 bathroom,1800 square foot Upcountry

home can, at present, be built for $300,000.

Most lots waiting for a meter have been owned and paid for, for years and years.

The distribution of nearly 1300 new water meters Upcountry will make possible the construction of more affordable homes for Maui families than have been built in total in many years.

These homes will be built not all at once and in one place, but one family at a time, widely distributed, from Haiku to Ulupalakua.

Proven Source.

Ready to Go.

At far less expense than the County can produce it.

Will pay for itself many times over.

Relieves Upcountry residents after decades of frustration.

Summary

At a time when people are losing their homes and having to move off-island, putting the Piiholo South Well to work will make it possible for many others to build their family homes and stay on island.

The Piiholo South Well is an economic engine for Maui that should be harnessed to help get us back on the road to financial security and prosperity.

Objectives and Action

“By water all things find life.” Maui County Department of Water Supply