state of hawaii honolulu, hawaii 96813 · honolulu, hawaii ; hawaii : amend prior board action of...

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D-5 STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES Land Division Honolulu, Hawaii 96813 June 12 , 2020 Board of Land and Natural Resources PSF No : 04HD-225 & 226 State of Hawaii Honolulu, Hawaii Hawaii Amend Prior Board Action of August 13 , 2004, Item D-6, Cancellation of Governor's Executive Order No . 1965; Issuance of Term, Non-Exclusive Easement for Temporary Underground Sewer Line; Grant of Perpetual, Non-Exclusive Easement to Wairnea Wastewater Company , Inc. for Sewer Line Purposes, Lalarnilo, South Kohala, Hawaii; Tax Map Key: (3) 6-7-003:020 The Purpose of the Amendment is to Change the Term, Non-Exclusive Easement for Temporary Underground Sewer Line to a Perpetual, Non-Exclusive Easement for Sewer Line Purposes. BACKGROUND : Wairnea Wastewater Company , Inc. (WWCI) is a wholly owned subsidiary of Parker Ranch, Inc. (PR!). At the time of the original approval (see Exhibit I) for the term sewer line easement, PRI was working with Schuler Hornes on an adjacent private residential development. The term, temporary sewer line easement was needed to service this existing development. The plan was to do an exchange with the State of Hawaii to acquire the subject parcel at which time the private residential development would be expanded onto the subject property and the temporary sewer line would be moved to the street sides of the expanded development. REMARKS : Despite years of negotiations on potential exchanges, to date no private lands have been identified to exchange for the subject State parcel. Without the exchange, the expansion of the residential development cannot occur , and the sewer line needs to stay in the current location permanently to service the existing adjacent residential development. Therefore, WWCI is requesting a perpetual, non-exclusive easement for the sewer line. The alignment of easement is the same as delineated in the original request (see Exhibit 2). 0-5

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Page 1: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

D-5

STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES

Land Division Honolulu, Hawaii 96813

June 12, 2020

Board of Land and Natural Resources PSF No : 04HD-225 & 226 State of Hawaii Honolulu, Hawaii Hawaii

Amend Prior Board Action of August 13 , 2004, Item D-6, Cancellation of Governor' s Executive Order No. 1965 ; Issuance of Term, Non-Exclusive Easement for Temporary Underground Sewer Line; Grant of Perpetual , Non-Exclusive Easement to Wairnea Wastewater Company, Inc. for Sewer Line Purposes, Lalarnilo , South Kohala, Hawaii ; Tax Map Key: (3) 6-7-003:020

The Purpose of the Amendment is to Change the Term, Non-Exclusive Easement for Temporary Underground Sewer Line to a Perpetual , Non-Exclusive Easement for Sewer Line Purposes.

BACKGROUND :

Wairnea Wastewater Company, Inc. (WWCI) is a wholly owned subsidiary of Parker Ranch, Inc. (PR!). At the time of the original approval (see Exhibit I) for the term sewer line easement, PRI was working with Schuler Hornes on an adjacent private residential development. The term, temporary sewer line easement was needed to service this existing development.

The plan was to do an exchange with the State of Hawaii to acquire the subject parcel at which time the private residential development would be expanded onto the subject property and the temporary sewer line would be moved to the street sides of the expanded development.

REMARKS :

Despite years of negotiations on potential exchanges, to date no private lands have been identified to exchange for the subject State parcel. Without the exchange, the expansion of the residential development cannot occur, and the sewer line needs to stay in the current location permanently to service the existing adjacent residential development. Therefore, WWCI is requesting a perpetual , non-exclusive easement for the sewer line . The alignment of easement is the same as delineated in the original request (see Exhibit 2).

0-5

Page 2: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

BLNR - Amend Prior Board Action Page 2 June 12, 2020 South Kohala, Hawaii TMK : (3) 6-7-003:020

RECOMMENDATION: That the Board:

1. Amend its prior Board action of August 13 , 2004, under agenda item D-6 by changing "Term, Non-Exclusive Easement for Temporary Underground Sewer Line" to "Perpetual , Non-Exclusive Easement for Underground Sewer Line Purposes".

2. All terms and conditions listed in its August 13, 2004 approval to remain the same.

Respectfully Submitted,

Ct:t11lface #atti11 Candace Martin Land Agent

APPROVED FOR SUBMITTAL:

.G~Q.lNl.v...

g-Suzanne D. Case, Chairperson

Page 3: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

EXHIBIT 1

• STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES

Land Division Honolulu, Hawaii 96813

August 13, 2004

Board of Land and Natural Resources PSF No.: 04HD-225 & 04HD-226

State of Hawaii Honolulu, Hawaii Island ofHawaii

Cancellation of Governor's Executive Order No. 1965; Issuance ofTerm, Non­Exclusive Easement for Temporary Underground Sewer Line; Grant of Perpetual, Non-Exclusive Easement to Waimea Wastewater Company, Inc. for Sewer Line Purposes, Lalamilo, South Kohala, Hawaii; Tax Map Key:3rd/6-7-03:020

APPLICANT:

Waimea Wastewater Company, Inc. (WWCI), a Hawaii corporation, a PUC regulated public utility company and a wholly owned subsidiary ofParker Ranch, Inc. (PRI), a Hawaii corporation, whose business and mailing address is 67-1435 Mamalahoa Highway, Kamuela, Hawaii 96743.

LEGAL REFERENCE:

Section 171- 95, Hawaii Revised Statutes, as amended.

LOCATION:

Portion of Government lands situated at Lalamilo, South Kohala, Hawaii, identified by Tax Map Key: 3rd/6-7-03 :020, as shown on the attached map labeled Exhibit A.

AREA:

Overall Reservoir Lot 3.866 acres, more or less.

Proposed Perpetual, Non-Exclusive Easement A 680 square feet, more or less.

• Proposed Term, Non-Exclusive Temporary Easement B 4,250 square feet, more or less.

~ ~ APPROVEQ BY THE BOARD OF ·. .

LAND ANO fJATURAL RESOUR(i~ t.; ITEM O-6 AT ITS MEETING H!;LD ON l(µJ' :-:.:'.; :(tqf11r;./ /~, 0(tJ#I/ ~ ..

Page 4: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

EXHIBIT 1 BLNR- Cancellation ofGovernor's Page2 August 13, 2004

Executive Order No. 1965; Issuance ofEasement to Waimea Wastewater Company, Inc. •ZONING:

State Land Use District: Urban County ofHawaii CZO: Agriculture 40 acres (A-40a)

TRUST LAND STATUS:

Section 5(b) lands of the Hawaii Admission Act

Note: The reservoir lot was obtained by way ofland exchange with Parker Ranch in 1961. Since the exchange involved ceded land, the land obtained by the State from Parker Ranch takes on the ceded status.

DHHL 30% entitlement lands pursuant to the Hawaii State Constitution: NO

CURRENT USE STATUS:

Encumbered by Governor's Executive Order No. 1965 to the Department ofLand and Natural Resources, Division of Water and Land Development for the Lalamilo Reservoir Site and Roadway. Reservoir is no longer in use and has been abandoned for some time. -

CHARACTER OF USE:

Right, privilege and authority to construct, use, maintain, repair, replace and remove sewer transmission pipeline over, under and across State-owned land.

COMMENCEMENT DATE:

Commencement date as to both the perpetual and term easements shall be determined by the Chairperson.

TERM:

The term, non-exclusive easement shall be for a period of 5 years.

CONSIDERATION:

Consideration for both the term and perpetual easements will be one-time payments to be determined by independent or staff appraisal establishing fair market rent, subject to review and approval by the Chairperson.

Page 5: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

EXHIBIT 1 BLNR- Cancellation ofGovernor's Page3 August 13, 2004

Executive Order No. 1965; Issuance ofEasement to Waimca Wastewater Company, Inc.

CHAPTER 343 - ENVIRONMENTAL ASSESSMENT:

Proposed Perpetual Easement A:

In accordance with the "Division of Land Management's Environmental Impact Statement Exemption List", approved by the Environmental Council anci dated April 28, 1986, the subject request is exempt from the preparation ofan environmental assessment pursuant to Exemption Class No. 4, Item No. 4 that states "Minor cut, fill and grading of State prop_erty ofless than 50 cubic yards of rock and/or soil where the vertical height ofcut or fill does not exceed three feet."

Proposed Term, Non-Exclusive Easement B:

In accordance with the "Division of Land Management's Environmental Impact Statement Exemption List", approved by the.Environmental Council and dated · April 28, 1986, the subject request is exempt from the preparation ofan environmental assessment pursuant to Exemption Class No. 4, Item No. 4 that states "Minor cut, fill and grading of State property ofless than 50 cubic yards of rock and/or soil where the vertical height of cut or fill does not exceed three feet."

Proposed Cleaning, Grading and Grassing ofAbandoned Reservoir Lot:

In accordance with the "Division ofLand Management's Environmental Impact Statement Exemption List", approved by the Environmental Council and dated April 28, 1986, the subject request is exempt from the preparation of an environmental assessment pursuant to Exemption Class No. 1, that states flOperations, repairs or maintenance of existing structures, facilities, equipment or topographical features, involving negligible or no expansion or change ofuse beyond that previously existing."

.· DCCA VERIFICATION:

Place ofbusiness registration confirmed: YES Registered business name confirmed: YES Applicant in good standing confirmed: YES

APPLICANT REQUIREMENTS:

Applicant shall be required to:

• 1) Pay for an appraisal to detennine one-time payment; Provide survey maps and descriptions according to State DAGS standards and at ' 2) Applicant's own cost;

Page 6: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

EXHIBIT 1 BLNR- Cancellation of Governor's Page4 August 13, 2-004

Executive Order No. 1965; Issuance of Easement to Waimea Wastewater Company, Inc. •REMARKS:

The subject property is a former reservoir lot that is still currently set aside to the Department ofLand and Natural Resources, Division ofWater and Land Development for the Lalamilo Reservoir Site and Roadway under Governor Executive Order No. 1965. The former reservoir used to be part ofDepartment ofAgriculture' s _Lalamilo Irrigation

District system. TheLalamilo Reservoir was abandoned after the development of the large Lakeland Reservoir and a related high pressure transmission line years ago. As a result, Governor's Executive Order No. 1965 should be canceled accordingly.

Waimea Wastewater Company, Inc. (WWCI) is a wholly owned subsidiary ofParker Ranch, Inc. and is a public utility company regulated by the Public Utilities Coinmission. · It currently operates the private wastewater system that services the two main shopping centers, the North Hawaii Community Hospital, the County's elderly housing complex · and other properties within the_ town ofKamuela. Parker Ranch Inc. has also offered possible service to the DOE's existing elementary and middle school complex in the future, subject to the necessary PUC approvals for expanding service areas. WWCI's main wastewater treatment plant located in th_e proximity of the industrial lots near the Kamuela Airport.

WWCI is currently requesting a perpetual, non-exclusive easement for a sewer transmission line in connection with their private sewer system. WWCI is also •requesting a 5-year, term, non..:exclusive easement for a temporary underground sewer

' .

line that would traverse the reseryoir lot and be replaced upon the completion of the next phase of their residential development project that is being developed through a joint venture between PRI and Schuler Homes. The attached diagram labeled as Exhibit B, · illustrates the development plan for their residential project showing the alignment of the permanent sewer line that will traverse -the roadway to the reservoir lot labele4 as Easement A and the proposed temporary Easement B that will contain an underground temporary line that will be removed upon completion of the permanent line to be located within the roadways of their next phase ofresidential development.

The abandoned reservoir is currently surrounded by deteriorating chain link fencing with , the remaining reservoir improvements left in place. This situation represents a significant liability for the State and should be cleaned up as soon as possible. This liability concern will increase significantly with PRI's residential development adjacent to the site. PRI/WWCI is willing to mitigate the hazardous conditions by cleaning, grading and grassing the reservoir lot.

PRI has expressed interest in acquiring the reservoir lot as it is surrounded by its residential development and could be developed into additional residential lots in connection with its next phase of homes. PRI has proposed a land exchange of this reservoir lot for lands near the entrance to the Kamuela Airport that have industrial •

Page 7: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

EXHIBIT 1 BLNR - Cancellation of Governor's Page 5 August 13, 2004

·•

Executive Order No. 1965; Issuance ofEasement to Waimea Wastewater Company, Inc.

potential. The area is already designated as industrial under the County's General Plan but would require rezoning in order to accommodate industrial development. The proposed land exchange will be brought to the Board under separate submittal and is not part of this action.

However, PRI is requesting that the Board approve that any appraisal done in the future for the purposes of such a land exchange take into consideration their cost of clearing, grading and grassing the abandoned reservoir site. Should a land exchange be approved in the future, PRI's request is that, they do not bear a higher value for the acquisition of the reservoir lot as a result of their agreement to clear, grade and grass the reservoir at their own cost.

WWCI has not had a lease, permit, easement or other disposition of State lands terminated within the last five years due to non-compliance with such terms and conditions.

Any agency or community comments will be discussed in the final submittal to the Board ofLand and Natural Resources.

RECOMMENDATION: That the Board:

1. Declare that, after considering the potential effects of the proposed disposition as provided by Chapter 343, HRS, and Chapter 11-200, HAR, this project will probably have minimal or no significant effect on the environment and is therefore exempt from the preparation ofan environmental assessment.

2. Subject to the Applicant fulfilling all of the Applicant requirements listed above:

a. Authorize the issuance of a term, non-exclusive easement for sewer transmission line purposes to Waimea Wastewater Company, Inc. covering the area labeled Easement B, under the terms and conditions cited above, which are by this reference incorporated herein and further subject to the following:

1. The standard terms and conditions of the most current term, non­exclusive easement form, as may be amended from time to time;

11. The term ofthe easement shall be for a period of five (5) years commencing upon the issuance of the construction right-of-entry;

m. WWCI shall remove all abandoned reservoir improvements, clean, grade and grass the entire reservoir lot at no cost to the State;

Page 8: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

•EXHIBIT 1

BLNR - Cancellation of Governor's Page6 August 13, 2004 Executive Order No. 1965;

Issuance ofEasement to Waimea Wastewater Company, Inc. •

1v. Review and approval by the Department of the Attorney General; and

v. Such other terms and conditions as may be prescribed by the Chairperson to best serve the interests of the State.

b. Authorize the issuance ofa perpetual, non-exclusive easement for sewer transmission line purposes to Waimea Wastewater Company, Inc. covering the area labeled Easement A, under the terms and conditions cited above, which are by this reference incorporated herein and further subject to the following:

1. The standard terms and conditions of the most current perpetual, non­exclusive easement form, as may be amended from time to time; .

ii. Review and approval by the Department of the Attorney General; and

iii. Such other terms and conditions as may be prescribed by the Chairperson to best serve the interests of the State.

c. Authorize the issuance of an immediate construction right-of-entry to the easement areas subject to the following:

1. The standard terms and conditions ofthe most current construction right-of-entry form, as may be amended from time to time;

11. Review and approval by the Department of the Attorney General; and

m. Such other terms and conditions as may be prescribed by the Chairperson to best serve e interests of the State.

Approved as amended. The Board amended the Recommendation Section by adding a new paragraph 3 tor. as follows:

"3. Authorize the cancellation of Governor's Executive Order No. 1965."

fullyS~

Harry M. Yada District Land Agent

Page 9: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

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Page 11: STATE OF HAWAII Honolulu, Hawaii 96813 · Honolulu, Hawaii ; Hawaii : Amend Prior Board Action of August 13, 2004, Item D-6, Cancellation of Governor's Executive Order No. 1965; Issuance

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