1. Results From the Kula Community Association Survey for The Department of Water Supply’s “Priority Policy Issues” Presented by Ron Montgomery, President Kula Community Association

2. Survey Methods Paper ballots were handed out at the September 7 th KCA General Meeting where Director Taylor presented options, costs and answered questions from the audience. Ballots had to be turned in by the end of the meeting. An online survey was also available at the Kula Community Association’s website, www.kulamaui.com where a person could only vote once.www.kulamaui.com Attendees of the September meeting were asked to not vote again on the website and although it is possible that some did, the results from the paper ballot and the online survey were not markedly different. See the raw data that is included at the end. There were at least 54 paper ballots and 158 survey ballots for a total of at least 208 votes.

3. Question 1 How much are you willing to pay? The DWS has presented the following options: – A. NO annual increase in water rates resulting in a continued deterioration in the maintenance of the existing water delivery system. (Not included in the DWS presentation) – B. A 4% annual increase in water rates (an average monthly bill would rise from $60 to $93 after 10 years) resulting in keeping up with repairs of the current system, but with no expanded service. – C. A 6% annual increase in water rates (an average monthly bill would rise from $60 to $107 after 10 years) resulting in stabilization of the system and an upgrade to current fire suppression standards. No expanded service and continued restrictions during draught. – D. An 8% annual increase in water rates (an average monthly bill would rise from $60 to $129 after 10 years) resulting in a stable system with rare use restrictions and infrastructure for new water meter service.

4. Question 1 Results Average is a 6.5% annual increase: stabilize system, upgrade fire suppression

5. Question 2 Should water usage rates be the same regardless of community location or higher due to upcountry delivery costs? – A. Rates should be the same – B. Rates should be higher where costs are higher

6. Question 3 Should water rates for legitimate farming operations be subsidized? Read the attached comments including: “The County should standardize the processes to determine a legitimate farm, should follow up with checking the farm to see it is legitimate. ” Recommendation: Consider standardizing the process for a “legitimate” farm used by DWS, Real Property Tax and the Planning Department to the highest standard.

7. Question 4 Who should pay the additional costs for new water source development for new users (new water meters)? – A. Keep present $6,800 meter cost, and then all users pay higher water rates. – B. New users pay $14,000 for water meters and then all retain current water rates.

8. Question 5 To encourage water conservation, should the DWS develop a new rate structure with progressively increased water rates as usage increases? – Yes – No

9. Question 6 Should the DWS strictly adhere to the order of the Upcountry Water Meter List until all requestors on the List have been given the opportunity to obtain a meter, or if there is enough water for all, all neighbors to share the costs to bring water to their area? – A. Adhere to the list – B. Look for cost sharing opportunities

10. Question 7 Should the County Council: – A. Provide as many meters as possible – B. Carefully consider additional impacts on County and State Services, financial resources and communities if more water meters are issued and homes built

11. Summary The survey average was for a 6.5% annual increase in water rates as long as it results in a stabilized water system, upgraded fire suppression capabilities and are willing to accept some restrictions during draught. Upcountry users believe that basic water rates should be the same regardless of community location, but also support more aggressive pricing tiers to promote conservation. Upcountry users support subsidize rates for agriculture but have real or assumed concerns that there is abuse of these subsidized rates. They support a standardized process to determine legitimate farming and want enforcement. The majority of Upcountry users believe that new users should pay for costs associated for providing water through higher water meter costs. However, nearly half of respondents support looking for cost-sharing opportunities, if there is enough water for all requestors. The majority of respondents look to the County Council to look beyond providing water meters, to assure that growth resulting from new meters meets the vision of the Maui Island and local community plans.