Approved 08/09/06

MOLOKAI PLANNING COMMISSION REGULAR MEETING MAY 24, 2006

A. CALL TO ORDER

The regular meeting of the Molokai Planning Commission (Commission) was called to order by Chairperson Robert Ribao, at 12:35 p.m., Wednesday, May 24, 2006, Mitchell Pauole Center, Kaunakakai, Molokai, Hawai`i.

A quorum of the Commission was present. (See Record of Attendance.)

Mr. Robert Ribao: We’re begin. Like Wayne said, if you haven’t signed up for public testimony, I think there’s going to be a lot today, so please sign up for whatever item you’re going to testify on.

Chairperson Ribao read the May 24, 2006 agenda into the record.

Mr. Ribao: Okay, DeGray, you wanted to change the agenda if possible?

Mr. DeGray Vanderbilt: Yeah, Mr. Chairman, I’d like for this Commission to make or consider amending the agenda which would include the number one would be the Community Input on Matters Related to County Planning; number two would be the public hearing on the hospital; number three, Goodfellow Brothers public hearing; number four, the communication from the special area minor permit for the construction of single-family resident; number five, the Director’s Report and specific one and two, Panda Ranch Commercial Tours and the -- just the discussion on the entitlement process of Laau Point; and then the Chairperson’s Report, and then whatever else we have time to finish.

Mr. Ribao: Any second to that? Any discussion?

Ms. Janice Kalanihuia: I’ll second that motion.

Mr. Ribao: Any discussion among the board members?

There being no discussion, the motion was put to a vote.

It has been moved by Mr. Vanderbilt, seconded by Ms. Kalanihuia, then unanimously

VOTED: to amend the agenda as requested by Commissioner Vanderbilt.

Mr. Ribao: Okay, the agenda is amended and we’re going to start off with public input, and what that is if there’s an agenda item and you can wait to testify during that particular item, Molokai Planning Commission Minutes - 05/24/06 Page 2

I suggest you wait. If you gotta go and you wanna give your input now, I’m going to let you come up and give your input right now. Please state your name. And just to let you know you have three minutes, yeah.

C. COMMUNITY INPUT ON MATTERS RELATED TO COUNTY PLANNING

Mr. Bill Pfeil: I’ll just take one minute. Sorry ...(inaudible)... My name is Bill Pfeil ...(inaudible)... a farmer in Molokai ag park twenty-seven years and I’ve owned the property where the health food store and my laundromat are for twenty years. The laundromat needs to be rebuilt, and the health food store needs to be rebuilt, and I’m trying to get BC-T zoning and for a year now I have attempted to find out where do I start? And I have not received any feedback except, last week, Francis Cerizo called me ...(inaudible)... I understand there’s a mapping problem too on the property where the health food store and the laundromat is. So I’m here just to ask what do I do? Where do I start? And I think maybe this is a good place to start so I need your help.

Mr. Ribao: Any questions for Mr. Pfeil? Go ahead, DeGray.

Mr. Vanderbilt: Yeah, Mr. Chairman, Bill called me last week and I did go over to the county and I got a bunch of maps, the original zoning maps, the country town business maps, and a lot of other colored maps, which I’ll give to you, Bill, after the meeting. But it does seem like that he’s been in the process for an awful long time without getting any direction and I don’t think that’s right for somebody in a small business here on Molokai have to do that so I would hope that by the next meeting maybe we could get some explanation from the Planning Department as to what the problem is, how that problem can be resolved, and a suggestion of the process Mr. Pfeil needs to go through in order to get the country town business zoning for his property.

Mr. Pfeil: And I’d be willing to hire somebody to help me.

Mr. Ribao: Okay, Wayne, you get any comments on that?

Mr. Wayne Boteilho: Just quickly, Mr. Chair, first of all, Wayne Boteilho, Deputy Planning Director, pardon my site inspection clothes. Yeah, Vice-Chair Vanderbilt brought this to my attention last year and I’ve instructed staff to look into this and that’s why Francis Cerizo called you. It looks like, to keep things short, we need to start with a community plan amendment from residential to business, so we’ll be -- so we’ll be in touch with Mr. Pfeil.

Mr. Vanderbilt: Mr. Chairman, can this Commission get a response the next meeting?

Mr. Boteilho: I’ll have staff bring it up. Molokai Planning Commission Minutes - 05/24/06 Page 3

Mr. Vanderbilt: Thank you.

Mr. Ribao: Okay. Any further public testimony? Okay.

Mr. Gene Anderson: Good afternoon, Planning Commission members. My name is Gene Anderson. Good afternoon, commissioners. I appreciate this opportunity to speak to you. My name is Gene Anderson. Let me tell you, first of all, that I really appreciate the job that you folks do and I’m not trying to butter you up. I think that your work here for Molokai is commendable. I came to Molokai more than twenty years ago. I chose to plan, at that time, my retirement year. I appreciate what you folks do to keep Molokai Molokai. I also do that. I think you’ve seen me at your meetings because I wanna know what’s going on. I go to a lot of public meetings. And so, as I say, my wife and I discovered Molokai twenty- one years ago and decided that this is where we wanted to retire and bought a Kawela property. Then, eleven years ago, we built our home there. As a retired biology teacher, I felt I had to have an orchard there. I built myself a devil that is -- I need to move out of Kawela. I can’t take care of this any longer. My next birthday next month is seventy-two. So I’ve tried to -- I love this community. I try to earn my way in this community. I belong to organizations. I support them. And I feel blessed to live here. About seven years ago, my mother passed away and she left me an inheritance and she said, “I want you to do something that you’ll enjoy.” And everybody told me get in that stock market, you cannot lose. Well, I’m so glad I didn’t. Instead, I bought a lot in Kanoa in 1999, this is before many houses have gone in there since that you see, and so after much planning with an architect here, we’re finally ready to go ahead with the building, and the, excuse me, I need to have the correct title for Mr. Foley and his department, but they’re, I feel, singling me out. The houses out there are built according to subdivision survey pins that have been there since the subdivision began in 1979, and those marks are still there. The fishpond out in front, maybe you know it as private; it belongs to the Kamakana’s; it’s over fifty-two acres; they pay taxes on it. We are permitted to use it for recreational purposes as part of our title. But I feel that the rules are being changed on me in this string that I’m being singled out and suddenly I’m being told that I must set back from the vegetation line, not ten feet from the pin that two neighbors have, but now eighty-five feet from the vegetation and twenty-five feet behind the legal pin. And so I’m not here to plead this case today because I think it’s too long, I know you guys have a very full agenda, but I just feel -- I’m here to ask for your help but I’m not sure where to turn. I feel like I’m getting a really deaf ear from the Planning Commission and, not the Planning Commission here, but the Director of Planning, and I feel that they want to apply some rule that makes sense on Maui. And I having come to many of your meetings, I hear you guys dealing with the same problems. We want to keep Molokai Molokai. We want to have some independence. We wanna have more ability to make our own judgements. And so I come here to ask that I be on your agenda next time to present my -- the issues about the -- these are boundary issues and setback issues. And I thank you for your attention. Molokai Planning Commission Minutes - 05/24/06 Page 4

Mr. Boteilho: Mr. Chair, may I ask a question? Sir, yeah, I’m the Deputy Director Planning. I’m not aware of your predicament at this point. Was there a letter that was sent or anything like that?

Mr. Anderson: Yes. My architect has received a letter.

Mr. Boteilho: Okay.

Mr. Anderson: And we’re being told that we must -- and I have asked -- I went and got the survey for you, that was extra money, eighteen hundred money to get the what? Coastal survey?

Mr. Boteilho: Okay, what I’ll do --

Mr. Anderson: I paid two hundred dollars to have a state guy come out here and verify that and I thought, well, you know, what are you going to do? And now we’re talking about side setbacks and, you know, I don’t know if there’s such a thing as -- as being grandfathered in here, maybe I’m grandfathered by age, red card, you know, but I’m getting, you know, I just feel that I’m being pressurized and somebody has said, “Boy, you know, somebody else did this down the road.” Did you guys come out to look at all the fill that’s on the other properties? Have you come out to look at the walls that are not permitted? Have you come out to look at the rest of this? And my feeling is, hey, it stops with Gene Anderson. This is the guy we’re going to make the example of. So I’m not prepared to talk to you today. You can see I’m pretty hot already.

Mr. Boteilho: Yeah, and I’m really sorry, but I don’t know too much about it so could I give you my contact info and we could talk personally about this? If you could let me more details, I can try and help you.

Mr. Anderson: It would be good to get some help. Thank you.

Mr. Boteilho: Okay.

Mr. Ribao: Mr. Anderson, mister --

Mr. Vanderbilt: That’s alright.

Mr. Ribao: Okay, we’re going to move on because ...(inaudible)...

Mr. Vanderbilt: I’d like to make a statement if I could.

Mr. Ribao: Go ahead. Molokai Planning Commission Minutes - 05/24/06 Page 5

Mr. Vanderbilt: Mr. Anderson came because I got a call from him this morning and I suggested he come down here. Before that, I had gotten a call from his architect, Rich Young, who is sitting back there, explaining their dilemma and saying that my name was used by the Planning Department as somebody that had a concern about all the view plains, and the fills, and the illegal walls, and everything in that Kanoa Beach area. Now I, along with many other people, has expressed some concerns but at no time did I express any concern about that specific thing, and I suggested Mr. Anderson come down here because we’ve been trying to get from the Planning Department some explanations of why certain rules are applied on Maui or here or there and we’re the guys that end up being the scapegoats because people wanna know, well, what are the rules, and we don’t know, and I think that it behooves the Planning Department to make sure that we have some rules where people can look them and say this is what’s allowed and this is what’s not, and not after the fact when we’ve spent ten thousand dollars in architectural fees and everything else. Now we have another project coming up today on that minor permit for the same area so maybe we can discuss it more at that time but, hopefully, we’ll get some answers from the Planning Department so people in this community know what’s going on.

Mr. Ribao: Okay, I’m going to make a suggestion. Why don’t we put this on the July agenda, maybe an update to what’s happening with Mr. Anderson’s situation. Okay, we’re pretty full in June that’s why. Okay, moving on.

Ms. Mahealani Davis: Thank you. My name is Mahealani Davis. I wanted to make comment on a couple of agenda items. The first being the agenda item under Communications from the Maui Vacation Rental Association. I just wanted to give the Planning Commissioners a heads up that we are in the process of doing the ten-year review to the General Plan and the Molokai Community Plan and there are -- there are -- there is a group of community members on the east end of the island who have expressed concerns here before this group about vacation rentals, the proliferation of those, especially in the Wailua District on the east end. The greater concern is that there are many things that have been -- that are not allowed for or, actually, disallowed in our community plan but which are occurring anyway. We do have specific -- a means of people coming before this body to get variances or conditional permits, and even with that in place, we see several things going on that are not -- not allowed or not allowed for in our present community plan. I’d like to, for vacation rentals, the discussion that’s coming up and will, you know, will be starting I guess in June, and for the continuation of that discussion, I’d like the Planning Commission to be aware that there is a group that is suggesting, and we’ll bring it before the general planning advisory committee, to look at doing a district overlay for the east end community and that that is something that is being worked towards with staff at the Planning Department and community members. It is not something that is guaranteed going to happen but it is being proposed as a means of managing -- managing better things that are happening on the east end of the island which has been repeatedly recognized as being culturally, and environmentally, and Molokai Planning Commission Minutes - 05/24/06 Page 6 archaeologically, socially very significant, very special, and very unique in the State of Hawaii. So this is something that may overlap in things to be considered during your folks consideration of vacation rentals and other -- other activities including commercial activities.

And kind of as an extension of that, I see on the agenda, under Director’s Report, the Laau Point State District Boundary Amendment and, again, there are going to be things brought forward to changes proposed to the community plan and to the General Plan which have far-reaching consequences for this community. It -- we fought for a long time to get a local planning commission and the reason being that there were many decisions being made Maui -- on Maui or quite a distance from us, in this particular case, by the State Land Use Commission, which held the first hearing on this matter in Hilo, and some of us are concerned that we have asked and it has been -- we fought determined that if local community members felt it was important enough that decisions would be made at this level where community members can have input and decisions would be made by community members who have the best immediate knowledge of the community within which these changes are proposed to take place.

Mr. Boteilho: Mahea, it’s --

Ms. Davis: So I’d like to ask that that be kept in mind. Thank you.

Mr. Boteilho: I was just going say it was three minutes.

Mr. Ribao: Any questions? Wayne, you have a comment? No?

Mr. Boteilho: Oh, no, I was just gonna say it was three minutes. For the people in the gallery, the County of Maui standards for testimony is that after three minutes, I mean when there’s a large group, after three minutes, you have the choice of either concluding in a fourth minute or coming back at the end, when everybody has testified for the first time. Thank you.

Mr. Ribao: Okay, thank you. One comment on the vacation rentals, we’re scheduled to have an evening meeting on the 28th of June. That’s going to be a night meeting for the public -- public hearing. Any further public testimony? Okay, before I move on, I’m gonna go to Item B, approval of the minutes, yeah, that shouldn’t hopefully take too long. Did the commissioners read the minutes?

B. APPROVAL OF THE MINUTES OF THE MARCH 22, 2006 MEETING

Ms. Kalanihuia: I move that we accept the minutes of March 22. Molokai Planning Commission Minutes - 05/24/06 Page 7

Mr. Ribao: Seconded.

There being no discussion, the motion was put to a vote.

It has been moved by Ms. Kalanihuia, seconded by Mr. Napoleon, then unanimously

VOTED: to accept the minutes of the March 22, 2006 meeting.

Mr. Ribao: Okay, minutes approved. Now we go to the public hearing.

E. PUBLIC HEARING (Action to be taken after the public hearing.)

1. MR. RANDY LITE, Director of Facilities, of the MOLOKAI GENERAL HOSPITAL, requesting a Special Management Area Use Permit for the Molokai General Hospital Addition & Renovation Project consisting of a 1,460 square foot addition to the existing Medical Office Building at 280 Homeolu Place, TMK: 5-3-009:017, Kaunakakai, Island of Molokai. (SM1 2006/0003) (P. Fasi)

Ms. Kalanihuia: I need to recuse myself from this discussion as the President at Molokai General Hospital.

Mr. Boteilho: Mr. Chair, everybody knows this man by now, Mr. Paul Fasi, Planner.

Mr. Kip Dunbar: Mr. Chairman? Mr. Chairman, I think I have to recuse myself also because I sit on the board of the Molokai General Hospital.

Mr. Ribao: Okay, both Commissioner Dunbar and Kalanihuia.

Mr. Paul Fasi: Good afternoon, commissioners. I will this present this project as it relates to the Maui County Code. The description of the project I’ll leave up to the applicant’s agent who will then present the project ...(inaudible)... Randy Lite of Molokai General. This matter arises from an application for a special management area use permit filed on January 20, 2006. The application was filed by Mr. Randy Lite, Director of Facilities for Molokai General, who is the applicant, pursuant to the Special Management Area Rules of the Molokai Planning Commission on a portion of the 9.9 acre parcel of land located in the State Urban District, TMK 5-3-009:017, the address is 180 Puali Street, Kaunakakai, Island of Molokai. This is the property.

The purpose of the application. The applicant is requesting a special management area use permit to expand and renovate a portion of Molokai General Hospital. The land use Molokai Planning Commission Minutes - 05/24/06 Page 8 designation for this parcel are as follows: the State Land Use District is urban; Molokai Community Plan is public/quasi-public; county zoning is interim; the FEMA flood zone designation is Zone C, an area of minimal flooding; and it is in the special management area.

The description of the project or of this project was done in two phases. Phase 1, which has been completed, consisted of the construction of the new addition designed to house five of the patient care service areas. The building is 11,193 square feet and attached to the existing hospital. Phase 2 involved the renovation of the existing hospital building. The total renovated area of Phase 2 is approximately 21,750 square feet.

The proposed addition that is under consideration today will be constructed to match the existing medical building in appearance, color, and construction type. In other words, it’s going to look exactly the same as the Phase 1 and Phase 2. It will be a one-store wood frame building. I passed out a rendition that was given to me this afternoon by the applicant. You have it before you. The basic dimensions of the addition, and if you’re looking at the drawing, it’s the right half of that entire building. The outer dimension will be fifty feet wide, twenty-six feet deep, with a height of approximately fifteen feet.

Impacts regarding the archaeological, historical, and cultural resources. The portion on the property proposed for the extension has already gone under extensive ground alterations and, therefore, the State SHPD department concluded that it’s unlikely that any significant historic sites or artifacts will be found on the site.

Basically, the only impact to the existing infrastructure was very minimal, maybe water, however, the property is served by the Kualapuu aquifer, which has an estimated sustainable yield of five million gallons per day. The entire island of Molokai is designated as a Groundwater Management Area and, as a result, any withdrawals of water are approved by the Commission on Water Resource Management. The property is served by a six-inch waterline, six-inch and five-eighth inch water heaters, and fire hydrant located on the site.

Impacts to public services in terms of Police, Fire, Ambulatory services, none are anticipated.

If there are no further questions for the department, I’ll turn it over to Randy Lite of Molokai General. This will conclude the department’s presentation on this project. Thank you.

Mr. Randy Lite: I’ve been introduced so I won’t give you my name again. I’ll keep this short. One thing that might not have been clear with that presentation was that the overall campus redevelopment project was granted an SMA permit previously and part way into that application process, we realized that we neglected to provide for an addition to our Molokai Planning Commission Minutes - 05/24/06 Page 9 medical office building so this is a permit application just for the addition of the medical office building. The environmental assessment was done for the entire project and, actually, because of the funding sources for this little project, we also had to do a Federal environmental assessment, which we have already passed. You can see on this drawing right here that the addition is right beside the existing medical office building. When you go up on to the hospital campus, on your left there’s the outpatient building where we have two primary care physicians and all of our specialty care physicians come in and use the building periodically. Our goal is to give the specialty physicians who come in periodically half of the building and also operate our chemotherapy treatment services in that half of the building, and then our primary care physicians would use the existing half.

These are the architectural drawings, the exterior elevations, similar to what was passed out to you, but it does show a little bit clearer which side is the addition and which side is the existing. This left portion is the existing building; this right portion is the addition. And this is a floor plan. Let me know if you can’t see this very well over there. The bold areas are areas that will get worked on. Most of it is new construction but a little bit of renovation will happen within our existing building. The existing medical office building, as I said, is that side. There will be a staff conference room, a medical record storage area, and renovated reception records area for the staff to work out of. There will be a chemotherapy treatment suite right here, this room will house our fluid that we use to mix those drugs with, and the treatment will actually take place in this room. There are two offices and then two exam rooms that the specialty physicians will use when they come on island to do their treatments for the various practices that they have. And I don’t really wanna belabor this but I’m willing to answer any questions that you guys might have.

Mr. Ribao: Okay, staff recommendations.

Mr. Fasi: The Maui Planning Department recommends approval of the applicant’s request for a special management area use permit subject to the following conditions, there are ten standard conditions, none of any notable exception; there are six project specific conditions, none of any notable exceptions, therefore, in consideration of the foregoing, the Planning Department recommends that the Molokai Planning Commission adopt the Planning Department’s report and recommendation report prepared for the May 24, 2006 meeting as its findings of fact, conclusions of law, decision and order. Thank you.

Mr. Ribao: Any questions? If not, I’m going to open it to public testimony. Okay, anyone from the public wanna speak on this item or have any questions for anybody? Okay, seeing not, I need a motion from the Commission.

Mr. Bill Feeter: Mr. Chair, I make a motion that we accept this in its entirety.

Mr. Ribao: Any second? Molokai Planning Commission Minutes - 05/24/06 Page 10

Ms. Lynn DeCoite: Mr. Chair, I second that motion.

Mr. Ribao: Okay, all those in favor raise your right hand please. Yeah, I’ll open it up for discussion. We already have a motion on the floor, DeGray.

Mr. Vanderbilt: Mr. Chair, all I will say is that once there’s a motion made and seconded, it’s usually opened up for discussion.

Mr. Ribao: Okay, that’s correct. Okay, go ahead, discussion.

Mr. Vanderbilt: Yeah, I just wanted to commend Randy Lite for all the work that he has done. I mean a lot of people have to hire all these fancy lawyers and consultants and everything else to do all the work and he prepared all the EA and SMA documents and they were really well done and understandable and complete and I just wanna express my appreciation for all the hard work and quality work that he did.

Mr. Ribao: Okay, go ahead, Janice.

Ms. Kalanihuia: And I’d like to publicly add to that because what that translates too for the community is extra quick square footage or another piece of equipment so I, publicly, I wanna thank Randy on behalf of the entire community.

Mr. Ribao: Okay, any further discussion? Okay, if not, there’s a motion on the floor to approve this project in its entirety.

There being no further discussion, the motion was put to a vote.

It has been moved by Mr. Feeter, seconded by Ms. DeCoite, then

VOTED: to accept the project in its entirety. (Assenting: D. Vanderbilt; S. Napoleon; L. DeCoite; B. Feeter; S. Chaikin) (Abstaining: J. Kalanihuia; K. Dunbar) (Excused: J. Kalipi)

Mr. Ribao: Okay, motion carried. Thank you. Okay, just a reminder, we’re gonna go over to the Goodfellow request for State Land Use Commission Special Use Permit and Conditional Permit. All those who haven’t signed up for testimony now, please do, okay. We’re going to open it up. Molokai Planning Commission Minutes - 05/24/06 Page 11

2. GOODFELLOW BROTHERS, INC. requesting a State Land Use Commission Special Use Permit and a Conditional Permit in order to utilize a rock quarry, concrete batching, and asphalt batching operations and aggregate storage on a 14.9 acre parcel in the State Agricultural District at TMK: 5-2-011: portion of 027, Palaau, Island of Molokai, (SUP2 2006/0001) (CP 2006/0001) (P. Fasi)

Mr. Ribao: I need the Planning Commission -- Planning Department’s report. Are you going to do that, Wayne, for the quarry. No, there’s no report?

Mr. Fasi: Thank you, Mr. Chairman. This matter arises from applications for land use commission special use permit and a conditional permit filed with the department on January 12, 2006. The applications were filed pursuant to Chapter 205-6, Hawaii Revised Statute, and Chapter 19.40 of the Maui County Code by Munekiyo & Hiraga, Incorporated, on behalf of Goodfellow Brothers, Inc., we will call them “GBI” for the purpose of this discussion, they are the applicant on approximately 14.9 acres of land in the State Agricultural District, situated at Palaau, Island of Molokai, County of Maui, identified as Maui TMK 5-2-11: portion 27.

The purpose of the application. The applicant is requesting a land use commission special use permit and a conditional permit for the relocation and reestablishment of a concrete and asphalt batching facility and establishment of a new rock quarry.

The applicable regulations for this particular project, there are two. First is a land use commission special use permit. And pursuant to Maui County Code, Section 205-6, Special Permit, Hawaii Revised Statutes, the county planning commission may permit certain and unusual and reasonable uses within the ag and rural districts other than those for which the district is classified. Special permits for the land and the area which is greater than fifteen acres shall be subject to approval by the land use commission.

The second permit that we are considering today on the agenda is a conditional permit. Conditional permit is reviewed pursuant to Title 19, Chapter 19.40 under Conditional Permits, Maui County Code, 1980, as amended. The intent of the conditional permit is to provide the opportunity to consider establishing uses not specifically permitted within a given use zone where the proposed use is similar, related, or compatible to those permitted uses and which has some special impact or uniqueness such as that its effect on the surrounding environment cannot be determined in advance of the use being proposed for a particular location.

The general description of the property. The parcel is part of a larger six hundred and fifty acre property. It is owned by Cooke Land Company, Inc. A perpetual easement has been Molokai Planning Commission Minutes - 05/24/06 Page 12 granted to Goodfellow Brothers by Cooke Land Company. The perpetual easement encompasses a 16.65 acre parcel as Lot 27-C, which includes the 14.9 acre portion of the subject property which is under consideration today. The land use designations for these parcels: State Land Use District is ag; Molokai Community Plan is ag; county zoning is ag. It is not in the SMA.

I could go into the description of the project. Goodfellow Brothers proposes to establish a new rock quarry at Palaau. In addition, Goodfellow Brothers seeks to continue its current concrete and asphalt batching operations currently being conducted in the vicinity. In order to implement this proposal, a State Land Use Special Use Permit and County Conditional Permit is required. This report has been prepared to support the applications for land use approvals affecting the 14.9 acre portion of the property. The parcel is part of a larger six hundred and fifty acre parcel. An easement that has been granted to Goodfellow Brothers by the land owner, Cooke Land Company, for the entire use of the 61.65 acre parcel, which encompasses the 14.9 acre portion of the property and the 3.4 acre portion of Parcel 29. It is noted that GBI’s current concrete and asphalt batching operations are located on Parcel 29. This operation has been in use since 1995. Goodfellow Brothers is planning to relocate the operation and is seeking a conditional permit on Parcel 27 for these activities as well as a special use permit for the rock quarry operation. Upon receiving land use approvals for Parcel 27, the concrete and asphalt batching operations will then be relocated from Parcel 29 to Parcel 27. You do have figures in your report which show these parcels in relation to one another. Goodfellow Brothers intends to establish an integrated quarry and concrete and asphalt batching facility on the 14.9 acre parcel. Surplus crushed aggregate will also be stored on this site.

In the analysis of the state land use category, the subject property is in the state ag district. The proposed use is not an outright allowable use in the state ag district. Chapter 205, Hawaii Revised Statutes, allows for the establishment of unusual and reasonable uses within the ag or rural district under special uses. The current operation has been in existence at its present location for the last eleven years. The Planning Department has not been notified and is unaware of any complaints and/or grievances regarding this ongoing operation to this date.

The impact to archaeological, and historic, and cultural resources. A partial archaeological inventory report was done in January 2006 revealing the presence of six sites on approximately fourteen of the sixty-one total acres. The recommendation in the report says that at the appropriate time, it will be recommended that a full archaeological inventory survey be conducted for the remaining sixty-one acre project area.

The impacts to the environment due to the nature of the operation. There will exist continual noise and air quality impacts throughout the duration of the project. Best Molokai Planning Commission Minutes - 05/24/06 Page 13 management practices should be incorporated into the operation in accordance with Federal, State, and County standards.

As of May 13, 2006, the Planning Department has not received any communication in opposition to this application. I have to put a footnote to this particular statement. I was handed a petition this afternoon that encompasses approximately seven hundred signatures on this petition in favor of this project. I believe it has been passed to the Commission a copy. I have a copy that I will pass out to the Commission shortly. That concludes the department’s report. I will turn it over to the applicant’s agent. If there are no questions for the department, Mr. Mich Hirano, from Munekiyo & Hiraga, will go into more detail as to what they propose to do. Thank you.

Mr. Mich Hirano: Thank you, Paul, and good afternoon, Chair Ribao and Planning Commissioners. My name is Mich Hirano, with Munekiyo & Hiraga, and our firm is assisting the applicant, Goodfellow Brothers, with the special use permit and the conditional permit applications before you today. The application is in regards to the proposed Molokai Rock Quarry and Batching Facility, and I’d like to just draw your attention to some of the display boards that we’ve prepared for this to just give you a better understanding of the site and its location.

I hope you could all see the site. To the right of the board is Maunaloa Highway and there’s a right turn into the Molokai Industrial Park on Ulili Street; this is a paved road that goes through the industrial park, and then it goes into a private easement for about three hundred yards to where the present base yard operations are located. This is the 3.4 acre parcel, and the shaded parcel is the 14.9 acre parcel that is the project site for the subject application. The 14.9 acre site is part of a larger 61 acre parcel, which is this large dotted area, which Goodfellow Brothers has a perpetual grant of easement over. An access road from Ulili Road will be constructed over the 3.4 acre parcel from the paved Ulili Road private extension. There’ll be an access road paved up through the 3.4 acre parcel and into the 14.9 acre subject parcel.

The land use entitlements being requested has -- have the following or has the following objectives. It will enable GBI to implement a new rock quarry facility on Molokai. The permit -- it would also permit the storage of surplus aggregate on the subject property, it would permit concrete and batching operations on the subject property, and it’s a corrective action to enable the existing batching facility on the 3.4 acre parcel to be relocated on the new permitted site.

I’d like to just present briefly the facility operational considerations for your information. The proposed batching integrated quarry and concrete and asphalt batching facility will ultimately employ ten to twenty Molokai residents on a full-time basis. At plant capacity, the facility will generate approximately seven hundred cubic yards of concrete per year and Molokai Planning Commission Minutes - 05/24/06 Page 14 approximately five thousand tons of asphalt per year; of course this is subject to the construction activity on Molokai, but this is a rough average of production. Concrete ad asphalt produced at the site will be utilized for construction of foundations, curbs, gutters, and the asphalt will be used in the construction of roadways, parking lots, residential driveways, and routine maintenance on Molokai. Onsite facilities associated with the concrete and asphalt production will include an asphalt drum mixer, a pull aggregate bin, a conveyor system, office trailers, machine shop, equipment storage area, and crushed rock stockpile. It’s very difficult to see right now from your distance but, generally, this is the area where the stored aggregate will be stored, the quarry operations will be taking place in this portion of the site, the rock crushing operation will be taking place in kind of the mid-northern portion of the site, base yard operations will be on the western portion of the site and the base yard operations are basically the parking of the trucks that -- the cement mixer trucks, the equipment maintenance trucks, that’s the base yard operation, and then the batching area is in the southern portion of the site. There will also be an office trailer for the office personnel on location on the site.

The proposed rock quarry operations will involve the excavation of onsite rock material and processing through a rock crusher to produce aggregate and untreated base course material for road construction. The resulting aggregate materials have various uses including materials used for topsoil, revetment boulders, asphalt paving product, and gravel for use in the roadways and driveway construction. The product that is produced at the quarry can also be used for landfill cover material. The landfill is located just to the west -- sorry, just to the northwest of the project site.

I’d like to just turn the board over and we have some pictures of the area for your information. The proposed rock quarry and batching site is located in close proximity to the existing Grace Pacific Corporation quarry site. This is Maunaloa Highway, this is Ulili Street, this is the Molokai Industrial Park, the 14.9 acres is located within the center of the yellow area, and the existing rock quarry operated or owned by Grace Pacific is to the north of the existing or the proposed quarry operations. It is also located in close proximity to Molokai Electric facility, which is located over across the street to the south of the proposed project as well adjacent to the Molokai Industrial Park. The Molokai Landfill, which is over to the northwest, and as well copies of Hawaii Production Plant and the Molokai Electric facility are all located in close proximity to the proposed project site. It is set in an area of existing heavy and light industrial uses and, therefore, is compatible with the surrounding land uses.

In terms of the topography and soil, the site can be best described as undulating. This is a -- these are pictures of the project site taken a few years ago. Elevations in the project site range from approximately a hundred and seventy-six feet above mean sea level in the northern portion of the site, and sloping in a southerly direction to a elevation of eighty-six feet above mean sea level in the southern portion. The average slope across the site is Molokai Planning Commission Minutes - 05/24/06 Page 15 approximately nine percent. So the site runoff, basically, slopes from the north to the south and there’s a drainage gully just to the south of the project site.

Soils are classified as very stony land rock association. The Land Study Bureau detailed classification rates the agricultural suitability of the area and of the soil as E, the very lowest or poorest suited for agricultural production. It is noted that the subject property receives approximately ten to fifteen inches of rain per year and the overlying soil has largely been eroded exposing the rocky environment, and you can see that from the existing photographs that there are rock out crops and very thin layers of soil over the project site.

A biological resources survey of the area was carried out in June 2005 by Robert Hobdy, an environmental consultant. The report describes the land as dry shrub and grass lands. There were no species of Federally endangered or threatened identified species during the field survey, and no special habitats were encountered during the course of the field survey. Based upon the assessment of these environmental parameters, the following conclusions can be reached. The project area is poorly suited for agriculture. The project will not adversely impact flora or fauna. As well, a cultural impact assessment was carried out for the site and an archaeological inventory was carried out over the 14.9 acres for the particular proposed project.

The cultural impact assessment and archaeological inventory survey was carried out by Scientific Consultant Services. For the cultural impact’s assessment, a number of people on Molokai were interviewed to get the historical background information and site specific information on the project area. The cultural impact assessment concludes that the proposed project will not adversely impact the native Hawaiian rights related to gathering, access, or other customary activities. During the cultural impact assessment, a very significant landmark was identified, Pu`u Kahanui, as a important Hawaiian cultural site. The site is located on this map, this is Pu`u Kahanui. It’s approximately one mile from the project site. The importance of this particular site was described as its visual plain overlooking all of the ahupua`a boundaries and Palaau. And the site is not visible from the subject property so, from this property, you cannot see the Pu`u Kahanui from the site. Comments were also made regarding concern over impact to the petroglyphs in the area, and this was Historic Site No. 106. Although the exact location of the petroglyphs during the cultural impact assessment were not clearly identified by the interviewees, the applicant, Goodfellow Brothers, had retained the architect to go out -- or retained the archaeologist to go out and to try and locate those petroglyph sites. And, just recently, the archaeologist did go out to the site and had located the petroglyphs and they identified them on GPS coordinates. This is the project area and the petroglyphs are located approximately a mile to the east of the project site. This information was provided to the State Historic Preservation Division and, as you can see from the map, the petroglyphs are quite a distance from the project area. The State Historic Preservation Division also Molokai Planning Commission Minutes - 05/24/06 Page 16 commented that the project site should be fenced to ensure that the quarry activities do not extend beyond the 14.9 acre parcel boundaries. This mitigative measure would ensure that no historic properties will be impacted by the proposed project. The applicant will comply with this particular recommendation and will fence the 14.9 acre site so that activities will not be carried out beyond the project boundaries.

The archaeological inventory survey of the project site also involved subsurface testing. There were six test holes or a number of test holes that were carried out throughout the project area and six sites were identified within the 14.9 acre area. These sites included alignment of rocks, modified outcrop, terrace, and enclosures. One site was interpreted to be of the ranching area -- of the ranching era, and five other sites were thought to be traditional sites that have been modified by the ranching activity. All significant information from these sites have been recovered and no further archaeological work was recommended. The State Historic Preservation Division had also reviewed the archaeological inventory survey and confirmed those recommendations as well. The State Historic Preservation Division concurred with the findings and approved the archaeological inventory survey report.

With respect to concern with drainage and best management practices, as mentioned previously, the drainage plan will be designed to retain all increase in storm water runoff on site. As you can see, and I’ll go back to the project site, basically, the drainage plan would be to maintain existing sheet slow patterns over the site, which is from a north to a south direction, from the higher points of land in the northern portion of the site, and there’s a drainage gully, natural drainage gully down on the southern portion of the site. Drainage swales will be developed to direct runoff and direct it into an onsite detention basin in the southern portion of the site and this will prevent runoff from running onto adjacent properties. As well, a berm will be established in this north or southwestern portion of the site that will keep all the runoff on site within the property boundaries and prevent flow from impacting adjacent properties.

Best management practices will also be included in the operational aspects of the project. Sprinkling will be done regularly to keep the dust down. The site is serviced by a private water system. There’s a two-inch waterline coming from the Molokai Ranch system. It traverses the agricultural lands to the north and comes into the site. There’s a two-inch line, it’s non-potable water, and that’ll be used for fire protection and dust sprinkling to keep dust down. The perimeter berm will be developed -- perimeter berms will be developed around the fuel storage tanks to contain fuel in case of spills. A protective liner underneath the fuel storage tanks, if required, will be installed to prevent groundwater infiltration. And GBI will have a proper maintenance schedule of equipment and vehicles to reduce noise and exhaust impacts. Molokai Planning Commission Minutes - 05/24/06 Page 17

In conclusion, the proposed project meets the criteria for a special use permit and a conditional permit. Proposed mitigation measures, as recommended by the State Historic Preservation Division and the Department of Water Supply, will be carried out. As such, the proposed project will not adversely impact surrounding properties, flora or fauna, and shoreline resources, nor will the proposed project adversely impact historic and cultural properties.

The proposed project is located in an appropriate location adjacent to similar heavy and light industrial activities. The rock quarry operations, the asphalt batching, and concrete batching will provide a needed source of aggregate construction material and concrete and asphalt material to support the construction activity on Molokai. In the next few years, there are a number of large projects coming on stream that have been approved. There’s the Kamehameha V Highway resurfacing project, this is a three point plus million dollar project, which will require asphalt. As well, the airport widening and airplane runway improvements slated for the Molokai Airport, this is a 4.6 million dollar project. This particular quarry operation will help support those particular projects under construction. The residents of Molokai will also benefit from the project. There will be employment created as a result of this project. Cost of competitive supply of construction materials, concrete, and asphalt will also directly benefit the Molokai residents. And I think, as you can see from that petition that was signed by over seven hundred Molokai residents, that they are in favor of this project and they realize the benefits that they will receive from this particular project. Thank you very much. The project team is available to answer any questions you may have.

Mr. Ribao: Do we have any questions for the applicant?

Mr. Vanderbilt: Mr. Chair, would it be possible if I defer the questions till after the public input and then we can ask the applicant questions if we want to?

Mr. Ribao: No problem. Any other questions for the applicant? If not, I’m going to open it up to staff recommendation. Yeah, then we do public testimony.

Mr. Fasi: I would like to point out and add to my department report that the estimated life of this quarry is estimated to be ten years. The department’s recommendation for the special use permit and the conditional permit is five years, so they will have to renew after five years. The department’s recommendation. The application complies with the applicable standards for a conditional permit for the proposed use is not detrimental to the public interest, convenience, or welfare and is in harmony with the area within which it is located. The State Land Use Commission Special Use Permit standard conditions, there are seven. Of notable exception is the State Land Use Commission Special Use Permit shall be valid until May 31, 2011. Project specific conditions, there are four. Of notable exception are numbers ten, eleven, and twelve. Number ten states that the entire length Molokai Planning Commission Minutes - 05/24/06 Page 18 and width of the access road shall be paved. That is comment number one as listed in your exhibit. The applicant has agreed to these following conditions that I am stating to you. Number eleven, that a twenty-foot wide emergency vehicle access with a minimum height clearance of 13.5 feet be provided and maintained. The applicant has agreed to do that as well. That a perimeter boundary fence around the entire facility, per State Historic Preservation Division comments, and, in addition to this, the State Historic Preservation Division is also requesting that at the appropriate time that a full archaeological inventory survey be conducted. That appropriate time is up to this board.

The conditional permit. The Maui Planning Department recommends approval of the conditional permit subject to the following conditions: Condition No. 2, that the conditional permit shall be valid for a period of five years; there are no conditions of notable exception, and, therefore, the Maui Planning Department recommends that the Molokai Planning Commission recommend and approve the special use permit and conditional permit and recommend to the Maui Council approval of the conditional permit. Further, that the Commission authorize the Planning Director to transmit said recommendation and record to the Maui County Council for further action. That concludes the department’s recommendation.

Mr. Ribao: Okay, thank you. Okay, you have a question for him, DeGray? Go ahead.

Mr. Vanderbilt: Yeah, couple of questions, Paul. The 14.9 acres, why is the 14.9 acres instead of the entire project?

Mr. Fasi: If the project went above fifteen acres or more, you would have to go before the State Land Use Commission instead of before this body.

Mr. Vanderbilt: Would there be any other requirements like an environmental assessment or anything else if it went to the state or --

Mr. Fasi: That would be determined by the State Land Use Commission.

Mr. Vanderbilt: Do they normally --

Mr. Fasi: In this --

Mr. Vanderbilt: I’m just wondering --

Mr. Fasi: For this scenario, probably not because the existing operation has been in that present location for a number years. The new quarry may trigger an EA.

Mr. Vanderbilt: An EA? Molokai Planning Commission Minutes - 05/24/06 Page 19

Mr. Fasi: Since it’s -- it is using state lands.

Mr. Vanderbilt: In the state land?

Mr. Fasi: No, I’m sorry. It is in the state -- it’s state zoned ag but Molokai Ranch lands.

Mr. Vanderbilt: Okay, so by going with the 14.9 acres, it’s up to this Commission to determine really the environment impacts --

Mr. Fasi: Special use permit.

Mr. Vanderbilt: Without the benefit of an environmental assessment?

Mr. Fasi: Correct, sir.

Mr. Vanderbilt: Thank you. And, the other thing, have you been in contact at all -- when you say the existing operation, it’s been there for twelve years, has the rock crushing been there for twelve years?

Mr. Fasi: I don’t believe the quarry has been in existence. I believe the quarry is a new facility.

Mr. Vanderbilt: The rock crushing and the quarry are new?

Mr. Fasi: Correct.

Mr. Vanderbilt: But the other -- okay. And have you been --

Mr. Fasi: Wait. But let me defer that question to the applicant. That is correct. There is no rock crushing. The quarry will facilitate the rock crushing.

Mr. Vanderbilt: And the last thing. Did you have any contact with, in coming up with your recommendations, with the -- the impacts of this on any other business or the existing quarry or whether the existing quarry --

Mr. Fasi: Did I have any communication with the other existing --

Mr. Vanderbilt: Quarry?

Mr. Fasi: No, I didn’t.

Mr. Vanderbilt: Okay, thanks. Molokai Planning Commission Minutes - 05/24/06 Page 20

Mr. Ribao: Okay, we’re going to open up for public testimony. The first person I have on the list Darryl Leer. Just a reminder, three minutes and you have a fourth minute, and at the end, if you wanna talk again, you can come back, okay.

a. Public Hearing

Mr. Darryl Leer: Well, first of all, I’d like to thank everybody on the council here for at least letting us have our speak here. For those of you who don’t know me, I’m Darryl Leer. I’ve been on Molokai for over thirty years and I run Tri-Isle Construction. I’ve been involved in Atlas for many years. I don’t normally get up in front of people so if I stutter and stammer a little bit, please forgive me. It’s kind of a new thing for me so, first of all, I’d like to address couple of the items that, basically, that I have a problem with with the new quarry. First of all is water, of course. They also said that they had a two-inch line. It actually serves our quarry also as well as the industrial park in its entirety. We barely have enough water now to comply with all our edicts from the State Health Department and so on and so forth for dust and water control and as well as our concrete mixing and everything else that goes on at the quarry. The line has very little pressure and, in the future, if we put somebody else drawing off the end of it, we’re probably not going to get any water at all. So I think they need to take a look at that considerably. Second of all is employment. Tri- Isle Construction, since we’ve taken over the quarry, we’ve hired, we took over the full seven people who were existing at the quarry at their same rate, wages, same rates. In doing that, that’s caused us other headaches cause I’ve had to give raises for some of my other people up to their rates, okay, and -- but we have -- did that and we have added an additional six people to our staff, in the office, outside. This is in to upgrade our business so that we can provide better service, better operations for the island of Molokai, more crushed rock available, steadily. We’ve got a commitment from Grace Pacific, the landowner. Although we have no other ties other than they are our landlord, they have graciously given us the go ahead on anything we need to make this quarry operating safe and to provide whatever Molokai needs for rock and aggregate. Okay. If we do have to compete against another quarry, and we have checked our rates, our rates are less than Honolulu, we have a few rates that are higher than Maui, but, overall, our rates are pretty competitive across the state, if we do have to compete against another quarry, not that we’ll have to compete because, if I remember right last time when Goodfellow came in and started selling concrete, our concrete went up about ten to fifteen dollars a yard, which hurt me considerably cause I was on a project paying for concrete and Dave Patterson was keeping pretty much even with Maui concrete levels, but when Goodfellow come in, they raised the price and the price went from 105 to about 125 so --

Mr. Boteilho: Three minutes. Can you conclude in one more minute?

Mr. Leer: Sure. Basically, economically, if there’s two quarries on the island, basically, Goodfellow has deep pockets and they’ll be able to survive. There’s no doubt in my mind. Molokai Planning Commission Minutes - 05/24/06 Page 21

Tri-Isle, because we’re a small company and we do not have deep pockets, we may not survive this. I don’t know if it will or not. We’ll have to see what comes. But I’m sure, out of the thirty employees who do work at Tri-Isle Construction, we will have to probably cut back and some of these people will be looking for new jobs. I hope the water and employment is taken into effect during your consideration and that’s about it. I thank you for letting me say my speak and --

Mr. Ribao: Okay, any questions for Mr. Leer?

Mr. Steven Chaikin: Darryl, thank you. I have -- I’d just like to know what your current capacity is to meet the needs of Molokai and the proposed projects that are coming up on line during the next five years. How do you see your capacity being able to accommodate all the -- the needs?

Mr. Leer: In the next five years I see our capacity increasing considerably to the full extent that we can crush under our license and operating permits. Basically, we’re already in work of replacing equipment that is no longer usable and has been run to death at the quarry. We’re replacing a new power unit for the crusher. We are working on all these aspects and, of course, this is going to take time and we’re going to need a little bit of time, but I say, by this time next year, we should be up at full capacity and we’ll be able to crush between a hundred and two hundred tons a day of material.

Mr. Chaikin: Okay, for the layman, how does that translate into be able to meet the needs of the Molokai Airport resurfacing and the Kam Highway project.

Mr. Leer: For five thousand tons, we could meet in like fifty days as we’re doing right now. Our biggest problem is some of the customers come and they say, “Okay, we need five thousand tons next week,” and when you say that then we’re sitting there going, well, we cannot produce that next week, but we do plan on having major stocks of material. In other words, we are going to crush and continue to crush until we have at least three to four thousand tons of every material that we sell in stock. And we are currently working on setting up a lab technician to be able to provide state approved base course and state approved rock.

Mr. Ribao: Okay, thank you. You have a question?

Mr. Vanderbilt: Darryl, I have a question. How -- what is your relationship with Grace Pacific?

Mr. Leer: Well, basically, they are our landlord, and we currently lease the operation or the quarry from them, and then we’re entirely owned and operated by Tri-Isle Construction. Molokai Planning Commission Minutes - 05/24/06 Page 22

Mr. Vanderbilt: Okay, now when did Tri-Isle take over management of the quarry?

Mr. Leer: We took over actual management on January 3 of this year, 1906 -- 2006, excuse me, 1906, a little bit early, but 2006 we took over management of the quarry.

Mr. Vanderbilt: And the condition was pretty -- was left in pretty bad shape?

Mr. Leer: The condition was left in pretty bad shape.

Mr. Vanderbilt: Was that Grace Pacific leaving it like that or the manager before you?

Mr. Leer: As much as I like Dave Patterson, everything, and I would not say anything bad about him, his heart was not in the business for the last few years and he did not put real -- any effort into keeping the business.

Mr. Vanderbilt: There wasn’t much reinvestment?

Mr. Leer: Right, very little to none.

Mr. Vanderbilt: But you mentioned Grace Pacific was willing to help out?

Mr. Leer: Grace Pacific has supported us substantially where first -- our first process is to safetify the place and get it up to where our employees who work there are in a safe as possible condition as possible and that’s what we’re working on right now. As soon as that is solved, we’ll be moving on to other -- you know, other items, but, basically, crusher operations, which is our bread and butter, we have to make the rock, and safety is our number one item right now, those two items.

Mr. Vanderbilt: As far as operations proposed in the new quarry, are there any operations in that quarry that will not be available from your quarry?

Mr. Leer: I do not feel so that there will be anything different from their quarry than our existing quarry.

Mr. Vanderbilt: Now, if Goodfellow came to you being -- Goodfellow and Grace Pacific are both well respected companies here on this island and if they came to you for aggregate and they were competing with you on a job, you said Mr. Patterson would raise the price to them. Would you keep the price same to them?

Mr. Leer: Well we have our price list and, basically, anybody can buy per that price list. In other words, it doesn’t matter who you are, they’re going to buy per the price list. We do have some discounts that we do on large orders. In other words, if it’s a large order, Molokai Planning Commission Minutes - 05/24/06 Page 23 we can afford to do it a little cheaper, okay, and that would be like a negotiated thing. I would, basically, in the past, in the last five years, Grace hasn’t really done much on Molokai and, basically, they have actually, in the past, I’ve asked for them to do asphalt and they have sent us to Rim Rock so -- and Rim Rock, of course, is a company of Grace or of Goodfellow so -- so I don’t think that would be a problem and I would probably cross that bridge when I got to it. But I’m sure I would be more and willing to work out some better pricing for Goodfellow if they could give us an idea of what their needs are so that we would have time to provide it for them.

Mr. Vanderbilt: Thank you, Mr. Chair.

Mr. Ribao: Okay, thank you, Mr. Leer.

Mr. Dunbar: I have a couple of questions, Mr. Chair.

Mr. Ribao: Okay, go ahead.

Mr. Dunbar: Yeah, Darryl, I’m curious. What do you, from January when you took over to today, what do you -- how many tons can you crush a day now?

Mr. Leer: Right now we’re doing about a hundred ton a day, okay. We’re in the process of fixing the crusher, it’s a fix and repair daily item, that’s why we are ordering -- we’ve ordered a new power unit. We’ve gotten new hydraulic pumps. We’ve spent -- we’re spending considerable money to get that crusher in a position where it will run steady for us.

Mr. Dunbar: And so the idea is to be able to crush --

Mr. Leer: Up to two hundred tons a day, yes.

Mr. Dunbar: Two hundred tons a day. Okay. And if you do that, I mean because I don’t think Patterson was crushing a hundred tons a day, I mean --

Mr. Leer: Well right now --

Mr. Dunbar: I mean lucky if he was crushing five tons a day, but the point I’m trying to get at is that you got a two-inch line for water, you gotta scrub -- you gotta scrub your dust too, so if you’re out doing a hundred tons a day, how much water are you going to have to use to scrub that dust?

Mr. Leer: Well, basically, we have a three thousand gallon tank and it’ll run us through a full day at a hundred tons a day, okay. At two hundred -- the reason we’re not doing two Molokai Planning Commission Minutes - 05/24/06 Page 24 hundred tons is we’re not pushing the crusher unit because we have issues with -- with parts and conveyors and stuff that we’re working on to fix. The water would probably be about the same amount for the crusher, the rock itself, to keep the dust under control according to the license that we have through the Health Department. Our big issue is the additional water we need to spray on the roads to keep the dust down on the roads during the dry season, like from now through December. It’s going to be really tough for us to keep enough water on the roads just to keep the dust down, okay. And we are addressing that issue. We have secured two additional water tanks but, of course, these water tanks fill overnight and with the additional water tanks filling overnight and a day usage, it’s going to be pretty -- really tight for water. It will. So --

Mr. Dunbar: But, you know, we’ve had a bridge project out on the east end of Molokai now for three years, it should have taken one, and part of the problem was when they were trying to -- when they were trying to put down some of the asphalt that led up to that bridge and over it, we couldn’t get the rock. There wasn’t enough rock crushed on the island and --

Mr. Leer: That’s correct, and this was --

Mr. Dunbar: And whatever rock was crushed didn’t pass the state.

Mr. Leer: That’s correct. I’m sure there was. This was probably right around January when I took over cause we did sell Goodfellow some rock that was stockpiled there, and this is one of the goals that Grace has been gracious enough to supply their labs and we have samples going out every week testing to get this rock into spec and to make sure it is in spec for state projects.

Mr. Dunbar: So how much do you feel, in dollars, you’re going to need in order to bring up the safety, the production capacity, and the trucking? You know, I mean what are we talking about? The question is is it there or is it, you know, is this a five year project that we --

Mr. Leer: No.

Mr. Dunbar: All wait for or is it --

Mr. Leer: We plan on having everything up to par within two years, okay. The crusher sooner, okay, and the rock will be up to par within the next, I think we’ve set our goal of August to have our rock in line with state specs. We have also set up goals to replace some trucks and equipment by the end of next year, okay, and it’s an ongoing process. We cannot spend it right now. If I had to go out and spend it right now, I’d have to dig up another have a million dollars, which I do not have, so -- but Grace has been really good Molokai Planning Commission Minutes - 05/24/06 Page 25 in support of anything that we need. They have gotten it to us with a payment plan that we can pay them back as we get the money to pay it back.

Mr. Dunbar: Yeah, I’m -- I mean I have great regard for actually all three companies having friends in all three of them and, you know, but it’s more to the point that, you know, what is going to happen, you know, for the people of Molokai. You know I mean I’ve tried to call for concrete there sometimes and they say, “Well, yeah, maybe we’ll be there in two weeks,” you know.

Mr. Leer: Has this been in the last three months?

Mr. Dunbar: Well, you know, it’s not you.

Mr. Leer: Okay.

Mr. Dunbar: You know, it’s not you, but if -- if your equipment’s decayed and, you know, you’re going to take two years to come up to it and, you know, you’re buying new equipment at today’s price having to pay back at today’s price, or even two years from now, and then you have to pay interest on top of that because no one’s going to give you anything for free, you know, you say competition is not the base but doesn’t competition make some sense? I throw that out as a business question.

Mr. Leer: Okay, well, competition will basically get down to where nobody’s going to be able to afford to do business, I mean it’s going to get to where Tri-Isle will have to be like Dave Patterson, we’ll have to run it the way he does, which I will not do, okay, and that’s just basically it. It will not be run the way I feel it should be run. It will not be -- provide the service that I feel that it should provide, and that was one of the goals at the time of the takeover was that, basically, Grace was committed to keep the quarry open and, basically, we got together and discussed things and worked out an agreement that we could live with and still operate the quarry and bring it up to the par where Grace would like to see it as well as I would like to see it.

Mr. Dunbar: I mean I think part of why, just being part of the community, that Goodfellow is here at all because you know they -- maybe there was a prior relationship and they couldn’t get the cooperation, I don’t know, but -- or they couldn’t get the price. Every time they had to bid on something, we pay the premium because one was up, and with two people, it might even be better for us. I mean I don’t know that. I’m just saying that that’s a possibility.

Mr. Leer: Okay. Molokai Planning Commission Minutes - 05/24/06 Page 26

Mr. Dunbar: Now how much -- my final question would be Goodfellow feels that they have ten years of rock there. How many years of rock do you folks have?

Mr. Leer: The size the quarry is right now and the rock that is available there, there’s at least -- well, there’s more than ten years. I can’t say per se because I haven’t looked at the drilling or any of the actual geology, but there is a lot of rock there and it’s still available so --

Mr. Dunbar: And, well, which leads to another question. Are you doing the drilling and --

Mr. Leer: No. Grace has been gracious enough to send their drillers and their blasters over whenever we need and blast rock for us under -- their drillers and their blasters come over and do the blasting. We do not do that.

Mr. Dunbar: And, I guess, really finally, do you see you folks working together or --

Mr. Leer: Well, I’d sure like to but it just depends. If they get another quarry, I’m sure it’s not going to happen. I would like to say I’ll discuss with them some rates on rocks and we would try to work out a number that would be beneficial to both companies.

Mr. Ribao: I’m going to interrupt now.

Mr. Dunbar: Thank you.

Mr. Ribao: He’s been up there almost twenty minutes and we’re kinda straying a little bit off the subject so I’m gonna -- next testimony, Mr. Bob Singlehurst. Thank you, Mr. Leer.

Mr. Bob Singlehurst: Good afternoon. I’m Bob Singlehurst from Grace Pacific and I’d like to make a few comments on the application for the special use permit. I too don’t usually speak in front of people so pardon me if I don’t do well. Okay, thank you. The first comment is under Section 4.A. of the application. Goodfellow states the increased -- increasing construction activity and public infrastructure projects establish a unique and unusual condition requiring a new rock quarry. Grace Pacific, as owner of Maunawanui Quarry, believes the existing quarry is capable of handling all of Molokai’s needs for a long time to come. Second comment is under the same section of that application. Goodfellow notes that Grace Pacific terminated its lease with the operator of Molokai’s main quarry on October 2005 when, in fact, Patterson stayed on until Darryl finally took over, and we look forward to backing up Darryl anyway we can by helping him succeed in what he’s trying to do. And, thirdly, Grace Pacific is committed to the people of Molokai to ensure a continuous supply of quality rock products for all the construction needs. Thank you. Molokai Planning Commission Minutes - 05/24/06 Page 27

Mr. Ribao: Any questions for Mr. Singlehurst? Thank you, sir. Mr. Walter Ritte. Okay, that’s good.

Mr. Hano Naehu: Aloha. My name is Hano Naehu. I going go first of the three. From the testimonies I was hearing already and the questions I was hearing, me, I love this island. I not here for any other reason but I love this island and when we gotta ruin our environment for fill somebody’s orders, already that’s wrong. When I think about quarry, it puts me back into what we was taught about aloha aina. Only thirty years ago had some guys that went to jail, we even had some uncles that went die for teach aloha aina, and it’s only been thirty years and now we’re forgetting about that. It is simple. Or at least for me it is. Today we went down to the rock -- the existing rock quarry. That’s the first time I ever saw one rock quarry on our island and I suggest you guys go check it out too cause, to me, went look like -- this island is my mom, and you go down there, and look like mom is getting raped, pillaged, abused, get rocks all over, and just like Kahoolawe, they put bombs in the ground, brah. They blow ‘em up. It hurts. Make you angry. Make me -- I mean, please, go see it. All of you guys that sitting on top this, you guys gotta go see ‘em cause it look like mom getting raped. So even when they say, oh, the rock quarry only going be for ten years, whenever these other rock quarries licenses run out, please stop all these rock quarries. We live on one island, thirty-three miles long, ten miles wide. This is not one continent. We get limitless amount of rock. Get one aquifer. Get one water table that we all drink out of. And they only get fourteen acres because they not going this way, they going this way. All you gotta do is go down to the rock quarry and you going see ‘em. I mean make you hate people that do stuff like that when you see ‘em, and I love people. Also they was talking about a scientist gave recommendations that was okay. What kind scientist this? Guarantee they not Hawaiian scientist cause we no look through the -- we not run by the same paradigms as them. Us, we look at our island, only get rocks, only get dirt, but that’s still my mom. They look at our island, they look, oh, looks like nothing’s going on here. How much money can we make out of it? How much can we take before everybody knows, oh, we’re screwing up? My ancestors been here two thousand years. And in the past two hundred, with this kind recommendations and this kind ideas, she going down the toilet bowl. Why? For greed? For money? What kind excuses you guys had? Development?

Mr. Boteiho: Hano, it’s three minutes. Can you conclude in one more minute or you -- would you rather come back after for three more minutes.

Mr. Naehu: Oh, I think I was only talking like forty-five seconds though, ah?

Mr. Boteilho: It’s been three minutes. Molokai Planning Commission Minutes - 05/24/06 Page 28

Mr. Naehu: Let me end it with this then all of the time fleas and ticks stay all waiting for jump on us and suck us dry from what we get and it’s about time that we start putting natural resources above friendly competition. Mahalo.

Mr. Ribao: Thank you.

Mr. Kalani Ua Ritte: What’s up. My name is Kalani Ua Ritte, and I’m against this quarry, and I never really know much about ‘em until we went up or we went up today and it’s sickening. Get one huge hole and it’s irreversible. That hole going be there forever and we get holes, Kamalo, thanks to Mr. Anglin and all his rubbish, and then you get hole, Red Hill, one whole hill gone, and these guys is gone. They made their money and they out. And now we looking for make one more? Come on. And then bruddah went go mention water. You know, Molokai, you mention water, boom, red flags. Any mention Molokai Ranch and water, ho, bruddah, the alarm systems was going off. You know what I mean? Laau Point and now this new rock quarry. Whoa, something is fishy about this one. Okay, yeah. Da kine, so I’m against this thing and he said everything already for me so thank you.

Mr. Ribao: Thank you.

Mr. Walter Ritte: Aloha. My name is Walter Ritte and I heard the cultural report and I was interviewed by that lady that was doing the cultural report. Not one single thing I mentioned was mentioned today. That’s really, really irritating because that’s why we have to come to these kinds of meetings and we have to look at this thing through Hawaiian eyes and when you look at it through Hawaiian eyes, you don’t see the petition they’re talking about. We need competition. It’s not about competition. This is about a very sacred valuable resource that we have on this island. It’s our pu`u and our pohaku. And through Hawaiian eyes these are important things. This is not stuff you just nonchalantly put on the market place because you wanna go into competition with somebody. It’s the same issue as we have with the taro. People think the taro is just one plant and we have to go out there and tell them through Hawaiian eyes this is more than what you see. So we are here today speaking as Hawaiians that this has to be a very compelling reason for us to drill into our earth, blow it up, crush it, and sell it. Not because you need competition. It has to be a compelling reason and you have to get the people, the Hawaiian people, to say, yes, you can use our resources cause we have a responsibility as Hawaiians to these resources. We cannot just let everybody go and blow up our hills. I’m glad the county stopped blowing up Pu`u Luahine. It was sad to see that. So we’re willing to give up certain resources if there’s compelling reasons and this community needs it and this community is going to benefit. Right now what we’re hearing is there is no compelling reason. We’re going to have competition, one guy putting the other guy out of business, fighting for water, and all kinds of -- there is no need for another quarry. So don’t get the Hawaiians all upset for Molokai Planning Commission Minutes - 05/24/06 Page 29 nothing cause we have responsibility to these resources and we take these resources seriously. Thank you.

Mr. Ribao: Thank you. Any questions for the speakers? Okay, moving on. Next on our list is Lori Buchanan.

Ms. Lori Buchanan: You went invite me up after that on purpose? No -- Hi. My name is Lori Buchanan. Thank you, Chair Ribao and esteem commissioners. What I have to say is probably going to take a little bit more than three minutes but I’ll reserve the right to come back and finish if I have to. The first thing I was wondering why -- why the Commission didn’t ask for a site inspection because of acreage. The trigger for that would have been Exhibit 5, the letter from SHPD. That would have been a clear indication that the Commission should have gone out and did a site inspection. The second thing, and that’s okay, maybe it’s not too late, the 14.9 acres is obviously in there because the decision can be made here cause we all know in the analysis it says that over 15 acres you have to come to the Land Use Commission which would probably trigger an EA, okay, but I give Goodfellow, which I’ll refer to as GBI, credit for at least trying to mitigate before this and go out and look for archaeological sites which was stated in this report. For that reason, they’re putting in the fencing. Other things that would be nice to be mitigated is they’re only widening the access road and so I had to really look at that because now that the State Highways Division has built a new facility on that same road, at the end of the state highways site, the road then turns into a one-lane highway -- I mean one-lane road, and it would be nice as a condition of the permit should you see approval of this permit would be to for GBI to consider widening from that point to the point of their entrance and the reason for that is a safety issue. As most of you know, the health center is the first warehouse entering that long road of stretch. I work on that -- in that industrial area. My self and other people frequently walk on that road all the way down to Coffees of Hawaii past GBI’s place of business and with larger vehicles now accessing that road, it’s a safety issue. So maybe that would be a nice consideration for Goodfellow to do is to widen that roach, which belongs to Molokai Ranch. Of that 14.9 acres, which is a smaller parcel of the 61.5 acres, my question then would be if this permit is for five years, are they looking at piece-mealing future 14.9 parcels at the same thing as their business grows or potentially grows? And let me get to the meat of the matter, if I can find my paper. Three minutes. Okay. Oh, I going come back and I going wait. He said I three minutes already so I’ll wait and come back.

Mr. Ribao: Okay, great. Okay, Mr. David -- questions? Any questions for Lori Buchanan? Not at this point. Okay, Mr. David Borgau.

Mr. David Borgau: Thank you very much. My name is David Borgau. Aloha, Chair and members of the Commission. Mr. Darryl Leer failed to tell you guys that it is four hundred acres that he has, that was stated, four hundred acres, and those two hundred tons a week Molokai Planning Commission Minutes - 05/24/06 Page 30 is being shipped out to Lanai for Kamalapau extension. So those rocks that is big boulders is being sent out as is. I did visit with him this morning and some of his employees, and I wanted to see what’s up on his rock quarry because it is Grace’s quarry and I found out that they’re leasing it from Grace. They do have seven employees that were working for Patterson, and he stated that he had to give the rest, the other six other employees that he hired, a high rate, but what’s thirteen dollars an hour? Who can survive on thirteen dollars an hour and medical just for you? We need medical for the whole family. Also -- also, on another note, the 14.9 acres is a small area. I did bring it up to Kaiwi. How much employees, if you do get awarded this petition, how much employees will you take from Mr. Leer. I asked him. I want you to take a hundred percent because Local 3 is a family. I represent approximately forty thousand people, members, and I like to take care the local people from here. I would like them to hire people from here. I don’t want nobody else from the outer-islands to come over here. That’s how I feel. On Lanai, I want people there working, not from the outer-islands, but we only have so much people there that is qualified. That’s what we’re looking for is qualified people and I believe GBI persistently trains in safety, trains in the quality of the workman, they get paid fair wages and fringe benefits for the entire family. Dale Moore asked me to come today and I said, “Maybe I’ll be there; maybe not.” But I thought about it a long time.

Mr. Boteilho: Three minutes. Can you conclude in one minute or would --

Mr. Borgau: Yes, sir. I would like the local people from Molokai be employed by GBI with a fair wage package, operating engineers, laborers, carpenters, everybody should be working that’s why we’re -- I have approximately thirteen people from the Mainland, and it’s all crane operators, cause we don’t have them, they’re all working, so I support GBI. Thank you.

Mr. Ribao: Thank you. Any questions for Mr. Borgau? Go ahead, Commissioner Vanderbilt.

Mr. Borgau: David.

Mr. Vanderbilt: David.

Mr. Borgau: Yes, sir?

Mr. Vanderbilt: Can I call you David?

Mr. Borgau: Yes, sir.

Mr. Vanderbilt: Alright, thank you. So you’re saying that Mr. Leer pays thirteen dollars an hour and has medical benefits only for the person working? Molokai Planning Commission Minutes - 05/24/06 Page 31

Mr. Borgau: Correct.

Mr. Vanderbilt: And what is --

Mr. Borgau: No, no, no.

Mr. Vanderbilt: Well that’s what I --

Mr. Borgau: I said -- I said that they have medical just for the one person and has a lower wage rate. Maybe I did say thirteen, but I am not -- I am not for sure about that.

Mr. Vanderbilt: Well you said thirteen.

Mr. Borgau: Okay.

Mr. Vanderbilt: Where did that number come from?

Mr. Borgau: A source that -- that I bumped into.

Mr. Vanderbilt: Well how are we -- who is the source?

Mr. Borgau: An employee.

Mr. Vanderbilt: Of?

Mr. Borgau: Mr. Leer.

Mr. Vanderbilt: Mr. Leer. Okay, as a --

Mr. Borgau: ...(inaudible)... I hope he don’t get fired for it too.

Mr. Vanderbilt: You didn’t give a name. I mean it could have been Goodfellow Brothers that gave you that figure.

Mr. Borgau: Correct.

Mr. Vanderbilt: I don’t know. But what I was asking was, by comparison, what does Goodfellow Brothers pay a comparable worker?

Mr. Borgau: 31.05 to run the crusher, plus $20.03 fringe benefits, so $51.03.

Mr. Vanderbilt: And those fringe benefits include what? Molokai Planning Commission Minutes - 05/24/06 Page 32

Mr. Borgau: Annuity, pension, vacation, industry stabilization fund, trades council, health and welfare pension, health and welfare.

Mr. Vanderbilt: Thank you.

Mr. Borgau: You’re welcome.

Mr. Vanderbilt: So are Goodfellow Brothers workers members of your union?

Mr. Borgau: Yes, sir.

Mr. Vanderbilt: Is Mr. Leer’s workers members of your union?

Mr. Borgau: No, sir.

Mr. Vanderbilt: Thank you.

Mr. Ribao: Okay, any further questions? Thank you, Mr. Borgau.

Mr. Borgau: Thank you.

Mr. Ribao: Next on our list, Yama and Sons.

Mr. Yama Kaholoaa: Good afternoon, Mr. Chairman and the board members. I’m here to testify and speak in behalf of Goodfellow construction. I believe, as my personal experience, I’m a mason for forty-three years, and I’ve been doing mason work here on Molokai for thirty-seven years, and I ran into a lot of problem with just one company. I believe that we need more than one company or business here on Molokai because it would become a monopoly game. And to Hano’s question, Kalani, speaking about all the -- the destruction that the previous quarry guys made, you know, it wasn’t because of the contractor, it was because of the landowners, but with Goodfellow, they’re a private entity. If you got a problem, you fight with Goodfellow. You don’t have to fight with Darryl Leer or Grace Pacific. That’s the problem you guys been having with Patterson. Patterson didn’t give a damn. Grace Pacific didn’t give a damn. That’s why they left all that rubbish there. I think Grace Pacific should be the one to be held accountable for. And I have a lot of experience on concrete service. When you have one individual, if you get on the bad side of that individual, you’re never going to have concrete, just like what Kip was talking about. And everyone of you here on Molokai know how things operate here. If there’s only one entity, you know, you’re going to pay through your nose. I don’t want to mention those businesses here Molokai right now that are gouging the community. Now Mr. Leer spoke about reducing the amount of aggregate if you buy more. You know, still then, if they were to supply Goodfellow, Goodfellow cannot sell it for the price that he buy Molokai Planning Commission Minutes - 05/24/06 Page 33 it from Darryl Leer but he’s gotta make a profit out of it. You know, it’s plain common sense that. Now, if Darryl Leer were to give me and sell it to me for the price that he’s selling it for, I’ll open up my own quarry and I’ll go partner with him. I’ll have him do all the work, I’ll just go there pick up the material, okay. So no matter what way you look at it, I think your sole responsibility is toward the majority of this community, okay. And then if there’s only company, not matter what way you look at it, you’ll have no say for the community. The -- we, as contractors, we don’t care. Whatever the concrete goes up, we’re going to tap the homeowners so they’re going to pay, not us, but it don’t really matter whether you get one or two, you know, from the contractor’s point of view for that homeowner. And as for my colleagues, Walter them, I gotta support them tonight so I hope they support me today. Walter, I’m in favor for Goodfellow Brothers opening up a new quarry only because it would benefit Molokai and we have a lot of, you talk about Hawaiians, we have a lot homestead is going to be opening up now. I’m sure they don’t wanna walk on those red dirt in Hoolehua. They want some concrete and by having other entity will help reduce the price and also the main thing, having the service. And I wanna thank you all.

Mr. Ribao: Yama, for the record. You can state your full name? Your name? Your full name.

Mr. Kaholoaa: William Kaholoaa.

Mr. Ribao: Okay, thank you. Any questions for the speaker? Okay, DeGray.

Mr. Vanderbilt: Eh, Yama. Oh, Yama?

Mr. Ribao: Yama, he has a question.

Mr. Vanderbilt: Just one question.

Mr. Kaholoaa: Some people gotta go to work, DeGray.

Mr. Vanderbilt: So, no, no, but I just wanna say that you mentioned that this Commission’s role is to do what’s best for the majority.

Mr. Kaholoaa: Of the -- the community, yeah.

Mr. Vanderbilt: Yeah, what the majority wants, yeah. Well now say if the majority wanted Longs Drugs to come in here so they could get cheaper prices, would --

Mr. Kaholoaa: Bring ‘em in. Molokai Planning Commission Minutes - 05/24/06 Page 34

Mr. Vanderbilt: Bring ‘em in?

Mr. Kaholoaa: Yes.

Mr. Vanderbilt: And this has been discussed before, something like Molokai Drugs that has been serving this community sixty years and is a special asset here would go out of business.

Mr. Kaholoaa: But sixty years we’ve been paying high price, you know, so they --

Mr. Vanderbilt: And you don’t get any other service. Well, anyway, that’s all I have to say.

Mr. Kaholoaa: But I think they’ve been -- they’ve had all our support sixty years already.

Mr. Vanderbilt: But then we keep hearing with everybody keep Molokai Molokai and it’s -- and so there’s a balance there and I think that’s what --

Mr. Kaholoaa: Okay, you know, like the sign Hano was presenting, you know, save the pu`u, yesterday I’ve never been to landfill, man that pu`u is so eyesore, you have a win-win situation, you’re digging out and you making another pu`u, so the rock still on Molokai. Is that all?

Mr. Vanderbilt: No, and I think that’s what this Commission is trying to do is to figure out what the community benefit is so thank you for the input though.

Mr. Kaholoaa: Okay.

Mr. Ribao: Thank you. Any further testimony before we -- okay. If nobody, Ms. Lori Buchanan, you wanna finish up?

Ms. Buchanan: Okay, thank you. Let me finish real fast cause I know you guys going have to make one decision. No, I like sit down. Can? Lori Buchanan, for the record, okay. Under recommendations, on your recommendations sheet, cause I kinda looked over it, because you have two decisions before you today: one is the land use and one is the special conditional permit. On the land use, and let me state for the record that I am all for development but I’m all for smart development and good development that does not have accumulative adverse impact. Your mission, the commissioner’s mission is stated very clearly what your mission is and that’s to the community plan. Okay. On the first one, under conclusions of law, is it that? I’m sorry, under recommendations, it’s for five years. On item two, it’s, you know, basic stuff and that’s all good. Under item three, it makes a reference about transferring without prior written approval of the Molokai Planning Commission, however, in the event that a contested case hearing, and I’m reading from Molokai Planning Commission Minutes - 05/24/06 Page 35 page, what page is this? I guess two, it says, issuance of said Land Use Commission Special Use Permit, public hearing, then it goes all the way down, what would be nice if that hearing would be on Molokai, which is not stated currently. Okay? Under item five, it refers to government requirements. I don’t know what they are. That would have been nice to know what they were. Actually what Mr. Hirano had presented in the beginning, which was not in any of the briefing, would have been nice to see. On item seven, I’m sorry, project specific conditions, item eight, on the first line, “The applicant shall submit a final BMP practices,” and in case it wasn’t here, if it could be referenced specifically on the concrete and that would be good cause it has its own BMPs. This one. Okay. And then it would be nice to add to item eight that a summary of that report shall be submitted and approved by the Molokai Planning Commission before construction begin, okay? And item ten, and as I stated earlier about a safety issue, the condition is that they’re widening their access road, but they’re not widening the access road outside of the facility, and I would really encourage that. Lighting would be nice, but I wouldn’t hold them to that since they have to deal with Molokai Ranch. And on the conditional permit, I think something would be great to have that in the event that Goodfellow Brothers vacate or terminate its lease with Cooke Lands, that a restoration, some type of restoration and mitigation should be made or clean up plan be instituted as part of the permit so we’re not talking stink about them like we’re talking stink about Grace Pacific now. And mostly what everybody said about Grace Pacific, the condition of the current quarry, unfortunately is true, and I know that cause I flew over it in a helicopter, okay. Yes. I also was born and raised approximately less than a quarter mile from the quarry all my life. I played fifty feet from the quarry. So I’m very familiar with quarry and what it does. And that would be one of my main concerns is the safety issue with the road and the restoration clean up and that those plans be submitted before any construction begin. It’s just part of smart business and smart planning. And I would think Steve would be concerned because I haven’t heard anybody ask how -- in what proximity is Maunawainui River from the quarry because, as we know, Grace Pacific is quarrying out Maunawainui River, which actually ends up right in Steve’s back yard, at the shrimp farm, so that would impact him as well as Maui Electric impacting stuff from their diesel engines into the same river system, okay. So all of that stuff, yeah, should be considered. And the arch study would have to take place if, in the future, they would expand pass that point, okay. Thank you.

Mr. Ribao: Thank you. Any questions for Ms. Buchanan? Go ahead.

Mr. Vanderbilt: Yeah, I’d like to thank Lori for taking the time to track down the documents and being ex-Chair of the Planning Commission and sharing her mana`o with us. If I could, you mentioned on item three, Lori, you said, however, in the event that a contested case hearing proceeded issuance of said Land Use Commission Special Use Permit, a public hearing shall be held upon due published notice, including actual written notice to the last know addressees to the parties, to said contested case and their counsel. Do you understand that? I mean is this application subject to a contested case or -- Molokai Planning Commission Minutes - 05/24/06 Page 36

Mr. Fasi: Could you restate that question please?

Mr. Vanderbilt: Well, Ms. Buchanan was talking about item, under standard conditions, the last sentence in item three, where it says, “However, in the event that a contested case hearing proceeded the issuance of said Land Use Commission Special Use Permit.” Under what circumstances would a contested case hearing be -- is this application subject to a potential contested case or what does this language mean?

Mr. Fasi: Yes, sir. All applications are open to contested case hearings, challenge, a legal challenge that could be submitted by any party.

Mr. Vanderbilt: On what time line? When would somebody enter and say they wanna have a contested case?

Mr. Fasi: I may have to refer that to Corp. Counsel but my best guess would be upon issuance of the -- before issuance of the conditional permit by the County Council. This permit still have to be passed by the Maui County Council. I should also point out that I just received a letter from the Molokai Council representative also in favor of this project.

Mr. Vanderbilt: Mr. Chair, I’ll just defer that question to Corp. Counsel after the public testimony.

Mr. Ribao: Okay, any further questions for Ms. Buchanan? Go ahead, Mr. Ritte.

Mr. Walter Ritte: Yeah, I wanted to clear up a little bit of misinterpretation of what was said earlier. What we were saying earlier was that we wasn’t bad mouthing Grace Pacific about their specific quarry. They’re quarry, just like any other quarry, is the point we’re trying to make, and you guys going over there is imperative. You have to see what happens to the land and what happens to all the resources at a quarry. What we’re saying is if you’re going to put another quarry, it’s going to look just like that or close to it. So before you put in another quarry, it’s a big, big decision is what we’re saying, and there has to be compelling reasons why you wanna do that. And if -- I did not understand the conversation about whether there’s a -- who can enter into a contested case hearing but we would be very, very interested in entering into a contested case hearing if that would be possible for our group. So if you guys could keep us informed as to how the thing works. We’re very, very adamant that there is no need for this new quarry.

Mr. Ribao: Any further comments? No? While we’re reviewing that about the contested case, is there any further public testimony? If not, I’m going to take a five-minute break cause we’ve been doing this for about two hours now, and then we’ll come right back, okay. A five-minute break. We’ll be back in five minutes, okay. Molokai Planning Commission Minutes - 05/24/06 Page 37

(A recess was called at 2:25 p.m., and reconvened at 2:45 p.m.)

Mr. Ribao: Okay, at this time, I’m going to open up any questions from the commissioners to the applicant or the Planning Department. I know I saw some of you taking notes and I’m -- I saw DeGray taking a lot of notes, so any questions? Okay, Commissioner Dunbar.

Mr. Dunbar: Yeah, this would be for the applicant. I guess you’ve heard that there’s the water issue; there’s the access road issue and it’s, perhaps, widening off of Ulili Street; you’ve heard that there’s community concern regarding the -- the reclamation or the return of the site to a reasonable state of being; you’ve heard a partial request for maybe a site visitation, though that’s not been formalized; I guess the question is how do you respond to these?

Mr. Hirano: Thank you, Commissioner Dunbar. In terms of the waterline, as I mentioned in the report, the Goodfellow Brothers site is serviced by a two-inch waterline. I’d like to clarify that the industrial park, the Molokai Industrial Park is not on that system. It has a separate waterline and they’re waterline, I believe, is a twelve-inch ductile waterline servicing the industrial park. Goodfellow Brothers is on the end of the two-inch line that it shares with Grace Pacific, I understand; however, there is a thirty thousand gallon storage tank on site that will be used to store water and that water will be -- the water and storage tank will be filled during the off hours, down peak hours, filled over the evenings and perhaps weekends, and then that will be used, if required, for dust control and for fire fighting purposes. And I understand that that thirty thousand gallon tank is ample for controlling the dust onsite for a number of days.

With respect to paving the site, I won’t bother getting the map out, but I understand that at the end of Ulili Road, there’s a private section of road, which the testifier had, Lori Buchanan, had mentioned, and I think that GBI would consider looking at widening that road. It would, as well, benefit their operations. It is a private road that’s owned by Cooke Company, and they would have to negotiate that, but it would be a favorable compliance item that Goodfellow Brothers would do.

I think that the comment that was made regarding the reclamation plan, if the site was abandoned, is a very good and a very sound recommendation that the applicant will comply with. The plans are, as well, to, if possible and if required, to use the, say after the quarry operations, is to, and if there is a need to expand the landfill, which is the adjacent property owned by the county, that that may be a possibility. The county had commented in the agency response to the application where that was mentioned in the application that the applicant should be meeting with their Solid Waste Division to see if that is, in fact, feasible. And, as well, they commented that they would like the applicant to store any excess cover material so that it can be used at the landfill. So I think that the Department of Public Works, in terms of their response, had provided a, you know, comment that they Molokai Planning Commission Minutes - 05/24/06 Page 38 would -- they would look at that as a possibility. Regardless of that, I think if the landfill was ever -- well, maybe when the life span of the landfill is completed or that it was abandoned for one reason or another, I think that the applicant will restore the site with the restoration plan, and we put that in our application as well that in a project assessment report that that would be something that the applicants will do.

Mr. Ribao: Any further questions? Go ahead, Commissioner Vanderbilt.

Mr. Vanderbilt: Mich? I had a question of somebody. The thirty thousand gallon tank you mentioned, that’s where?

Mr. Hirano: That’s on the 3.4 acre site right now.

Mr. Vanderbilt: On your site? That’s your tank?

Mr. Hirano: That’s correct. Yeah, it’s owned by Goodfellow Brothers, yeah.

Mr. Vanderbilt: Okay. Now, we heard the Grace Pacific representative or Mr. Leer, I forget who, mentioned that, you know, they’ve got to fill --

Mr. Hirano: Three thousand gallon tank.

Mr. Vanderbilt: Well, yeah, but they’ve got to fill their storage trucks and everything, they probably do that off hours too. I think he mentioned it and I -- now is there enough water out of that line to have everybody filling up their tanks?

Mr. Hirano: I’m sorry. I think Dale Moore, who is the manager of the site, can respond to that.

Mr. Dale Moore: Well, it’s nice to see all of you here. To answer his question, that two- inch line we are hooked together with it. They turn ours off all the time so we have to use out our tank and we have to then, at night, we fill our thirty thousand and we have enough water, no problem. But the ranch land goes up and makes them turn it on again and that’s a little problem that we have. But, yes, there’s plenty of water there if we control it properly and take care of it. We can fill ours. We got a thirty thousand gallon tank and what he said he had three? And he’s getting by real well he said with that so I don’t really see a problem there.

Mr. Vanderbilt: Thank you, Dale. Dale, I had another question. There was -- there was comments about competitive bidding and all of this and that there were some bids coming up, there was -- yeah, yeah, there was some bids coming up but you guys have been Molokai Planning Commission Minutes - 05/24/06 Page 39 successful bidders with the state. I think you guys recently -- didn’t you get the -- didn’t you have the contract for the road paving out to Halawa?

Mr. Moore: Yes.

Mr. Vanderbilt: And you guys -- didn’t you have the contract for the paving of the airport runway?

Mr. Moore: We have a contract with the airport now to widen that existing runway another thirty feet wide there. Yes, we have that to start.

Mr. Vanderbilt: Yeah. Yeah. So now you’ve bid on those contracts and in past contracts, where did you get the materials needed from those contracts? From the existing quarry?

Mr. Moore: The material we’re using now?

Mr. Vanderbilt: Yeah.

Mr. Moore: We had a contract, as you know, with Hawaiian Homes on the --

Mr. Vanderbilt: Oh I -- no, I didn’t know that.

Mr. Moore: Well, this was some years ago. It was the subdivision right there by Coconut Grove. The one they’re doing now. Anyway, they had lots of rock there and, just to put you all straight, we drilled and shot all of that, it was solid rock, and it was in the contract agreement that we had to remove all the rock, and they would not give us a storage area on site, so, fine, we moved our crusher in and we crushed it all. We crushed all the material and made the concrete for that particular job, and then we had all this extra rock we had to get off so I moved it up to where it is now and we’re still using it, but we’re about out so we would like a new source. And competition, I think, is great and we all need competition or we’re all going to pay. So that’s kind of the overall picture of this.

Mr. Vanderbilt: Thank you, Dale.

Mr. Ribao: Any further questions or comment from the Commission?

Mr. Chaikin: Yeah, I have a question for the applicant. But, first, I’d like to echo what Lori was saying about the widening of the road. That road is really a safety situation right now cause you have big heavy equipment and heavy trucks barreling down that road, and then you have the public going down that same road, a very narrow road, to get to the electric company to pay their bill, so I would give that some heavy weight to, not only pave it, but to also consider widening that should this Commission approve your request. I have a Molokai Planning Commission Minutes - 05/24/06 Page 40 question. It says here as far as your tenure of the land that you have a perpetual easement on the sixty-one acres. Could you kinda clarify what a perpetual easement is and how that gives you tenure to -- to do what you need to do on that land?

Mr. Hirano: I think it’s about as close as you can get to owning the land without actually owning it. It’s an exclusive perpetual use easement so they can use the land for in perpetuity as though they own it and I think that’s what the agreement seeks to accomplish.

Mr. Chaikin: Okay, and that easement gives you the right to do whatever you need to do on that land?

Mr. Hirano: Yes. Yes. It’s in perpetuity so it’s goes on for as long as it’s there.

Mr. Chaikin: Okay. I have some additional questions. The land and the operation that you have right now, do you currently have a special use permit and a conditional permit for that operation?

Mr. Hirano: No, it’s operating under a license through the state under the -- they have a batching plant operation so this effort would be to correct that situation and get it in a properly permitted site.

Mr. Chaikin: Okay, I think one of the concerns of the community is that, with these quarries, it’s one thing for us to start blowing up our mountains for our own needs, but then when we start doing that to support the infrastructure of off-island needs, then it gets a little difficult for the community to accept. Can you comment on what you see the future of that quarry whether you see yourself doing a lot of off-island supplying of aggregate?

Mr. Hirano: Again, I think Dale Moore would have --

Mr. Moore: We have no intention for shipping off ...(inaudible)... yeah, you have a good question there but -- and you see that going on now, but, no, we are not crushing to ship off-island, it’s for Molokai.

Mr. Chaikin: Okay, thank you.

Audience Member: ...(inaudible)...

Mr. Moore: Pardon? At this time we don’t have any. We have to ship in our rock now.

Mr. Ribao: Okay, any other question? DeGray, go ahead. Molokai Planning Commission Minutes - 05/24/06 Page 41

Mr. Vanderbilt: Mich, you got a minute here on this? The perpetual easement that you have for the sixty-one acres --

Mr. Hirano: That Goodfellow has with Cooke but from --

Mr. Vanderbilt: That Goodfellow has with Cooke, is that -- did you make one payment for that or is it like a lease that kicks in when you use portions of the land or what?

Mr. Hirano: The question is is it paid for now? Yes. ...(Inaudible)... John Mahoney, from Goodfellow Brothers as well. He’s familiar with it.

Mr. John Mahoney: Yeah, hi. The perpetual easement was paid for in lump sum several years ago and it’s for use of the sixty-one acres.

Mr. Vanderbilt: Okay. Well, I guess nobody really knew about that, you know, in all the master planning that we’ve doing and everything else. It didn’t seem like that issue came up, you know, in our community planning meetings, but that’s not -- that’s not your responsibility. It should have come up though because --

Mr. Mahoney: If I may say, we did include that property on an inventory that went to, I forgot the name of the planning company working for the county, the general plan update, that was included so I don’t know where it stands right now, but we did list that property.

Mr. Vanderbilt: Okay, well, I was on the community plan advisory council and I think Commissioner Dunbar was. I just didn’t remember that being a property but maybe that was before the easement came. And just as I asked Mr. Leer, just say you guys did come in and you were paying thirty-one dollars or fifty-one dollars with benefits an hour, I mean if I’m working for Mr. Leer, I’m not working for him tomorrow cause I’ll be working for Goodfellow hopefully, but if just say he went out of business, would you have the same -- would you be supplying Grace Pacific with concrete at a reasonable rate?

Mr. Mahoney: Well, I’m sure they would but I can’t answer that question because I -- I think Dale is the answer for that.

Mr. Vanderbilt: Well, I mean then we’d be back to one guy, only one person in town, and so I mean I’m just trying to -- we’re supposed to look at this thing based on need and fairness and a lot of other things and we got two big hitters here dealing on a small little island.

Mr. Ribao: You know, I going recommend you guys take the mike to the table instead of standing up and down. Can? It can come off. Okay. Molokai Planning Commission Minutes - 05/24/06 Page 42

Mr. Mahoney: Okay, thank you.

Mr. Moore: Well, as you know, and I hope I have a better reputation than what you’re hinting at --

Mr. Vanderbilt: I wasn’t hinting at anything.

Mr. Moore: No, no, that was pretty straight. You’re alright, DeGray. But, no, we -- we work with the people and that’s one reason we kinda want this -- this project to go through. We -- you have to make a little profit but we darn sure don’t jab it to you. We’ll take our little cut out of it and make a profit, but we’re here to work with the people and then I’m -- the one’s I am related to can’t afford a great big high concrete price, I’ll tell you, and we’re trying to make it as easy as we can just like the Hawaiian Homes project that Menehune is doing. They buy concrete from us and we give them the best deal we can and we’ll keep it that way if we were the only one on the island.

Mr. Vanderbilt: Thank you, Dale. And I didn’t mean to hint at anything and, as I was saying during the break to your representatives from off-island, that seven hundred signatures on that petition was not so much people wanting another rock quarry, I don’t think, as it was a testament to the good work you’ve done in our community, so I’ll just leave it at that.

Mr. Moore: Yeah, I thank you, and that’s exactly right. Now we got a little over seven hundred in about two days. People were lining up to sign it just because of the problem today so they’re looking forward to it.

Mr. Ribao: Any further questions from the Commission? You have questions, DeGray, or you’re going to entertain a motion?

Mr. Vanderbilt: Well, wait. Now wait a minute.

Mr. Ribao: Okay.

Mr. Vanderbilt: I have a question because I asked earlier about that language on the contested case from the lawyer.

Mr. Ribao: Yeah, he has your answer. That’s going to be our next thing to talk about. Mr. Peters, you wanted to say something? I’m sorry, Mr. Nicholas.

Mr. Peter Nicholas: I’m sorry. Can I just clarify to Commission members the perpetual easement to Grace Pacific was done in 2001 and when we did the master plan for Molokai Molokai Planning Commission Minutes - 05/24/06 Page 43

Ranch with the community, it was identified by this company as not being owned by this company. So it is stated on the maps as not being owned by us. Thank you.

Mr. Ribao: Okay, thank you. Let’s have clarification on that contract. Let me read the question first. Under standard conditions, item three, “That the subject Land Use Commission Special Use Permit shall not be transferred without prior written approval of the Molokai Planning Commission; however, in the event that a contested case hearing proceeded issuance to said Land Use Commission Special Use Permit, a public hearing shall be held upon due public notice including actual written notice to the last known addresses of parties to said contested case and their counsel.”

Mr. Jesse Souki: This is Jesse Souki, Deputy Corp. Counsel. According to the rules relating to special uses adopted by this Commission, Section 12-3-8, the authority shall have the sole power to approve or deny applications for special use permits by applications involving lands fifteen acres or less or as otherwise authorized. Under Sub-section B, all final decisions and order should be issued in writing forty-five calendar days. So this, as a final decision making body and the making of quasi judicial decision, that brings into play the invention section of the rules adopted by this Commission, Molokai Planning Commission Rules of Practice and Procedure. If we go Section 12-301-25, Petition filing, petitions to intervene shall be in conformity with 12-301-16 herein and shall be filed with the authority and served upon the applicant no less than ten days before the first public hearing date. Untimely petitions will not be permitted except for good cause but in no event after the authority has taken the final vote on the matter before it. And 12-301-30 is also instructive. All petitions to intervene shall be heard prior to rendering a decision.

Mr. Ribao: Any questions? Question on that, DeGray?

Mr. Vanderbilt: Yeah, I have a question. When -- when was this advertised and where was this advertised, this public hearing? Wasn’t it in our report somewhere?

Mr. Fasi: The dates are in your report, under procedural matters, on April 6, 2006, the Maui Planning Department mailed a notice to the applicant; on April 21, 2006, the applicant mailed a letter of notification and a location map to all owners and recorded lessees within five hundred feet of the subject property, that was April 21, 2006.

Mr. Vanderbilt: When was this advertised? This public hearing?

Mr. Fasi: On April 22, 2006, a notice of hearing on the application was published in the Maui News by the Maui Planning Department. On April 22, 2006, it was published in the Molokai Advertiser News.

Mr. Vanderbilt: On when? Molokai Planning Commission Minutes - 05/24/06 Page 44

Mr. Fasi: April 22. April 22.

Mr. Vanderbilt: And when was the -- the staff report and everything available or whatever needed to be reviewed, when was it available and where was it available for review by the public? If somebody was -- saw or happen to see --

Mr. Fasi: If the public request a copy of the staff report, if it happens to be ready at that time, it is available as it is public --

Mr. Vanderbilt: When was the staff report prepared? We just got it Thursday.

Mr. Fasi: Probably Wednesday prior to that.

Mr. Vanderbilt: So if somebody -- nobody likes to intervene because it’s time consuming and it’s a pain the neck, so how is the public supposed to meet these time lines in our rules, which nobody probably understands, if there’s not some -- I think what I’m getting at is the public just gets --

Mr. Fasi: When the applicant files a notice of application for filing on a project is published in the paper when this project first gets applied for, for an SMA permit, it is -- the notice of application is published in the paper, and that could happen, and it could take six months, it could take a year, it is -- that is the public notice wherein they are notified.

Mr. Vanderbilt: Well, at some other time, I’m going to have to try to understand this cause it just doesn’t seem -- I mean people are trying to make a living, they’re trying to do everything else, and our newspapers come out every couple of weeks and, I don’t know, I think the public needs more notice because what was that time frame, Jesse? Ten days before this -- today?

Mr. Souki: Ten days --

Mr. Vanderbilt: Prior --

Mr. Souki: Before the first hearing.

Mr. Vanderbilt: Which is today. We, as Planning Commissioners, didn’t even have any information on this project so how can you expect the public to look at this, try to understand it, and then decide whether they wanna intervene or not? I mean it just -- I don’t know whether we gotta change the rules or we gotta give more notice, but I think it’s not a fair service to the public and I mean that’s -- you gotta do what you gotta do and we gotta do what we gotta do, but we represent the public and, hopefully, you guys can work Molokai Planning Commission Minutes - 05/24/06 Page 45 with us so we can get some more advance notice on this thing so that the public has a right to take advantage of the rights that they have under the law.

Mr. Fasi: Can I just pose a question to the applicant? Mich, do you know when the notice of application was published?

Mr. Hirano: ...(inaudible)...

Mr. Vanderbilt: A long time ago?

Mr. Ribao: Okay, you know what? I’m going -- that’s a policy question. If you wanna put that on an agenda for future and we can talk about it. We’re already coming to an end on this, deciding for or for not, so I’m gonna cut you off at this point, DeGray.

Mr. Vanderbilt: Can I just ask one question on this?

Mr. Ribao: Okay, fast one.

Mr. Vanderbilt: Alright. So this Commission, and, Jesse, maybe you could answer this, this Commission, somebody obviously didn’t intervene, we had somebody saying that they may want to intervene; if somebody intervenes -- if we make a decision, we cut off anybody from intervening. If we don’t make a decision today, then somebody that may wanna intervene has the chance to apply for intervention and it wouldn’t be timely and it would be up to this Commission to say whether they can intervene or not. Is that a fair assessment?

Mr. Fasi: Yes, sir, but I don’t think the intent of your decision should not be driven by whether a party is going to intervene or not. It should be based on the merits of the project.

Mr. Vanderbilt: And it should be based on fairness to the public’s rights too so I think we gotta -- that’s something we have to balance so, you know, you can say what you want because you’re from Maui and we’re from here, and it’s just -- it’s just something that I feel very strongly about is the public process and protecting the integrity of that for our people so --

Mr. Fasi: Actually I’m from Honolulu so I’m very neutral.

Mr. Vanderbilt: Oh, okay. Sorry, Paul.

Mr. Boteilho: I’m from Maui.

Mr. Vanderbilt: Oh, yeah, Wayne. Thank you. Molokai Planning Commission Minutes - 05/24/06 Page 46

Mr. Ribao: Okay, any further questions? Okay, if not, I’m entertaining a motion at this time. One comment, first, before we do this. I’m sorry. We should take the two entities separate, the special management permit and the conditional permit separate, okay. Okay, DeGray.

Mr. Vanderbilt: Mr. Chairman, based on that, just one last question. We are the final authority on the special use permit. Is that correct?

Mr. Souki: That’s correct.

Mr. Vanderbilt: But on the conditional permit, we’re only advisory and then it has to go to the council for final approval. Is that correct?

Mr. Souki: That is also correct.

Mr. Vanderbilt: Okay, thank you.

b. Action

Mr. Ribao: Anyone want to entertain a motion? Okay, Bill.

Mr. Feeter: I’ll make a motion that this proposal be accepted in its entirety.

Mr. Ribao: You’re talking about the special use management area permit or the conditional permit? We have to do two separate, yeah.

Mr. Feeter: It was the special use permit.

Mr. Ribao: Okay. I need a second.

Mr. Dunbar: Second.

Mr. Ribao: Okay, Commissioner Dunbar second. You folks ready to vote? All those in favor raise your right hand.

Mr. Vanderbilt: Mr. Chairman?

Mr. Ribao: Oh, wait. I’m sorry. Discussion again. I’m sorry. I keep forgetting that.

Mr. Fasi: The Planning Department would like to point out that before you take a vote on this special use permit, if you’re going to add any conditions to the special use permit, you should do it now. Molokai Planning Commission Minutes - 05/24/06 Page 47

Mr. Dunbar: I guess that’s why we wanted to discuss.

Mr. Ribao: Commissioner Dunbar?

Mr. Dunbar: So I think, as we raised the issues before, we have the reclamation; we had the improvements to any -- from the end of Ulili to your, you know, your base yard; I think water, the water is an issue if it turns to be, I don’t know how you really wanna word that, detrimental to other competitors or one is using all the two-inch and the other is not getting any that something they work out so that everybody survives, and I think that’s about it.

Mr. Ribao: Okay, Steve.

Mr. Chaikin: Yeah, I’d like to just clarify that all of the conditions as set forth by the Planning Department are also included in our motion, and I’d also like to add that the widening of that street to also be included in the approval.

Mr. Ribao: Okay, anything further? Go ahead, Commissioner Vanderbilt.

Mr. Vanderbilt: I’m going to be voting against the proposed motion and the reasons I am is that I think this Commission, we heard a lot of proposed conditions and everything else, there’s a lot of other information we need and, personally, I agree with our former chairman, Lori Buchanan, that we need to go out and get an idea by having a site visit and -- and I think this was the public hearing phase, we got a lot of information today, and, personally, I haven’t been able to sift through all of it, and I’d like to have a site visit for this Commission. So I would be more inclined to go for a deferment until that site visit and getting some answers to some other questions. So I won’t be supporting the motion.

Mr. Ribao: Any further discussion? Okay, Mr. Feeter, you made a motion to accept that in the entirety. It’s up to you if you wanna put those amendments in, which was recommended by Commissioner Dunbar and Steve.

Mr. Feeter: Yes, I agree to that.

Mr. Ribao: Okay, I need another second on that again. Okay, seconded by Commissioner Dunbar. The motion on the floor is that we approve the special management area permit with the necessary amendments as discussed by Commissioner Dunbar and Steve. We’re going to take a vote now. Go ahead. Okay, we’re going to vote on the amendment first, okay.

There being no further discussion the motion was put to a vote. Molokai Planning Commission Minutes - 05/24/06 Page 48

It has been moved by Mr. Feeter, seconded by Mr. Dunbar, then

VOTED: to include the amendments discussed by Commissioner Dunbar and Commissioner Chaikin. (Assenting: K. Dunbar; L. DeCoite; B. Feeter; S. Napoleon; S. Chaikin; J. Kalanihuia) (Dissenting: D. Vanderbilt) (Excused: J. Kalipi)

Mr. Ribao: Okay, motion carried. Second vote. All those in favor of ...(inaudible)...

Due to technical difficulty, a portion of the following section of the meeting is deemed inaudible, therefore, minutes may be in summary format.

Chairperson Ribao, at this time, took a vote on the main motion to approve the special use permit as amended.

It has been moved by Mr. Feeter, seconded by Mr. Dunbar, then

VOTED: to approve the Planning Department’s recommendation, as amended, for the special use permit. (Assenting: K. Dunbar; L. DeCoite; B. Feeter; S. Napoleon; S. Chaikin; J. Kalanihuia) (Dissenting: D. Vanderbilt) (Excused: J. Kalipi)

Mr. Fasi asked for clarification on the amendments made, and a clarification was made by Mr. Dunbar regarding the waterline situation and the access road as he discussed previously.

Mr. Fasi: ...(inaudible)... to their specifications, less curbs and gutters of course.

Mr. Dunbar: Okay, we’ll concur with that as part of the recommendations. And, lastly, that there is reclamation, in the event of abandonment, there’s reclamation to the area by either filling the hole or picking up so we don’t have a bunch of old equipment sitting around there that makes the landscape ugly and the hole is --

Mr. Moore: ...(inaudible)... we did cut all the brush off the side of the road ...(inaudible)... on both sides and it looks like a road now and ...(inaudible)...

Mr. Dunbar: Okay, okay. Molokai Planning Commission Minutes - 05/24/06 Page 49

Mr. Fasi: Based on that third condition, the department would recommend that the state of the quarry, upon abandonment, be put back into the condition based on Department of Public Works specifications at that point in time because environmental laws and rules and regulations do change over time. So, at that point in time, ten years or whenever it is, you want those rules and regulations to be in place.

Mr. Dunbar: Yeah --

Mr. Fasi: And the site brought up to their standards.

Mr. Ribao: Okay, next item we have to take up is the conditional permit, yeah, for the rock quarry. I entertain a motion at this point or discussion.

Mr. Vanderbilt: Yeah, I move that we approve the conditional permit.

Mr. Ribao: Second?

Ms. Janice Kalanihuia: And I’ll second that motion.

Mr. Ribao: Any discussion on that? If not -- oh, you want discussion?

Mr. Vanderbilt: Yeah, I’d like to have some discussion. The reason I’m approving this, at this point, is because my concerns were not really ...(inaudible)... that we have the last approval so we’re only a recommendation here anyway and so, as far as the public’s right to participate ...(inaudible)... affected by the conditional permit and, therefore, I’ll be voting for it.

Mr. Ribao: Any further discussion? Okay.

There being no further discussion, the motion was put to a vote.

It has been moved by Mr. Vanderbilt, seconded by Ms. Kalanihuia, then

VOTED: to approve the Planning Department’s recommendation for the conditional permit. (Assenting: K. Dunbar; L. DeCoite; B. Feeter; S. Napoleon; S. Chaikin; J. Kalanihuia; D. Vanderbilt) (Excused: J. Kalipi)

Mr. Ribao: Okay, motion carried. Okay, that concludes that part. Now under Communications, Item No 2, first of all, 2a and b, I’m going to table that for the next Molokai Planning Commission Minutes - 05/24/06 Page 50 meeting next month. A decision can be made by Vice-Chairman DeGray. I will not be here. I be in the Mainland. But we’ll move to Item No. 1, Tan Altinbay, I hope I’m pronouncing that right, and Akiyo Murata requesting a special management area minor permit of the construction of the single family dwelling, and I thank everyone for sitting through this. Thank you.

Mr. Hirano: On behalf of applicant, I would also like to thank the commissioners for your consideration and your support. Thank you.

Mr. Ribao: Okay, you know what? What time is your flight, Wayne? Okay, we’re going to take another five-minute break then we’ll continue with you guys cause you guys gonna stay anyway, right? Okay.

(A recess was called at 3:40 p.m., and reconvened at 3:45 p.m.)

Mr. Ribao: I’m gonna begin on Item 1 under Communications. Can we start please?

D. COMMUNICATIONS

1. TAN ALTINBAY & AKIYO MURATA requesting a Special Management Area Minor Permit of the construction of the single family residence, carport, and appurtenant facilities at TMK 5-4-017:37, Kanoa Beach Lot #39, Kamehameha V Highway, Kawela, Island of Molokai. And (SM6 2006/0002) (J. Dack)

Mr. Boteilho: Yeah, Mr. Chair, handling this item will be one of our rising stars in the Planning Department, in his first appearance before the Molokai Planning Commission, Planner V, Mr. Jeffrey Dack.

Mr. Jeffrey Dack: Thank you. I’ve never had such a rousing welcome. I really appreciate that. I’m happy to be making my first presentation before you this evening. I’m sorry it’s kinda run long today so I’ll -- I’ll try to move through things quickly but slow me down if I get going too fast.

As you know, if you had a chance to read your packet, which I expect you hopefully had, this is an application for a special management area assessment minor permit that was filed on April -- excuse me, September 29 of last year and the application was filed pursuant to Sections 12-302-12 and 12-302-14 of Chapter 304, Special Management Area Rules for the Molokai Planning Commission by the applicants, Tan Altinbay and Akiyo Murata, on approximately twelve thousand one hundred and eighty four square foot Molokai Planning Commission Minutes - 05/24/06 Page 51 lot located in the urban district situated at Kanoa Beach Lot Number 39, Kamehameha V Highway, Kawela, and identified at TMK 5-4-017:37.

The applicant’s requesting a special management area minor permit for the construction of a six hundred square foot single-family residence, carport, driveway, and other appurtenant facilities. Second larger home -- a second larger home may be pursued at some later time using a separate new permit request at that time. You have on Page 3 of your staff report the standards for reviewing this SMA application, it’s found under HRS and your rules.

The property, as I mentioned, around a little over twelve thousand square feet and is located between Kamehameha V highway and the shoreline. In Exhibits 1 through 5, as well as some color photo handouts that I placed up at the table, you can see the location of the site and then some photographs of it. Now the photographs, I must -- were taken about a year and half or so ago so the property is -- has more vegetation on it now. If you’re trying to drive by, it looks a little bit different now, but certainly the permanent improvements are the same.

The land use designations are it’s in the State Urban District, it’s single-family designation in your community plan, the zoning is interim, and surrounding uses, to the north, is Kamehameha V Highway, single-family residences to the east and west, and then to the south is the shoreline. The subject property is currently vacant and undeveloped.

The request is for a permit for construction of a six hundred square foot cottage residence with a two hundred and forty square foot carport and gravel driveway. If you look at Exhibits 6 through 9 in your staff report, you can see the basic plans for the site for the construction, at this point, and you also have eleven by seventeen handouts of the site plan and the elevations.

The staff report indicated that there was a possibility of a retaining wall going on the makai side of the proposed residence. The applicants have indicated they do not intend to pursue that retaining wall. A certified shoreline survey was prepared. You find it in Exhibit 10. The shoreline actually lies about eight to fourteen and a half feet makai of the deeded boundary, and under the terms of your shoreline rules, the setback for the property is forty- three and a half feet. The proposed residence is approximately sixty-two feet mauka of the setback line at its closest point, which is the southwest corner of the stairway landing. There is proposed also a septic system leech field that would be makai of the residence but also still very well mauka of the shoreline setback line. As such, the project is not subject further to the shoreline setback rules. Molokai Planning Commission Minutes - 05/24/06 Page 52

Regarding the project’s possible affects upon natural or cultural resources, the application material state that the site alteration activities will be relatively minor as the structure is built on post and pier, and grading will only affect the top soil to place the driveway.

The project was submitted to the State Historic Preservation Division for their review and comment. They responded that they expected historic habitation and burial sites would be found in the vicinity, you can see Exhibit 11 is their letter, and they recommend that conditions be attached to any approved permit to ensure any significant historic sites properly identified and treated. Their recommending conditions, you see in that letter, are also -- have also been placed as recommended conditions in that section of the staff report.

Two residences may be built on lands with the subject’s site zoning and land use designations, therefore, a building permit for a second larger unit could be applied for at some later time. Under current rules, an SMA exemption may be obtained for one single- family residence on a lot. Given that an SMA minor permit is being sought for the one small residence this time, the single permissible SMA exemption could still be applied to a second larger unit in the future.

Mr. Vanderbilt: Excuse me, where are you reading from? That last sentence?

Mr. Dack: That was the second to the last paragraph on Page 7 of the staff report. The proposed development is in compliance with the State Plan, County General Plan, Molokai Community Plan, and county zoning. You have conclusions of law found on Page 8 of your staff report including that the project has no significant adverse environmental or ecological effect. That concludes the presentation prior to recommendation. If there’s any questions, commissioners, at this point, I’d entertain them, otherwise, the applicants are here in the audience. They may wish to say a few words and then they certainly are open to any questions also.

Mr. Dunbar: Chair Ribao?

Mr. Ribao: Any questions? Go ahead, Commissioner Vanderbilt.

Mr. Dunbar: Me?

Mr. Ribao: I’m sorry. Let’s do Commissioner Dunbar first. Thank you.

Mr. Dunbar: I’m looking at the site plan and I don’t see if I missed or I don’t show on the plan where the -- the septic would be located; additionally, I don’t show on the plan where the second future home would be located and how big that is given this is six hundred feet, and where that septic would be located. Molokai Planning Commission Minutes - 05/24/06 Page 53

Mr. Dack: Yes, you do not have on the submitted plans that --

Mr. Dunbar: Did I miss something?

Mr. Dack: That information. I do have plans that I -- a single set of plans in the file that I can provide that will -- will answer those questions. They do intend, the applicant does intend to, in their engineer -- engineering report, has indicated that they would be planning for a septic system for a five bedrooms, which could be a combination of two residences, and so they intend to have the septic system immediately makai of the proposed residence, at the moment, which on the -- the one sheet I’ve shown you, Commissioner Dunbar, is located in red, and I can pass this on down the rest of the table so everyone has the same record, and then in the white area, the vacant area between that septic system and the setback line would be the location for a second residence, which again would be subject to all permit conditions applicable at that time or all permit processes, excuse me, applicable at that time.

Mr. Dunbar: Because that’s actually, you know, not part of our, you know, our plan or package anyway, you know, it should probably be made part of it because it’s, you know, that’s a pretty extensive leech field, as I see it, and serving a five-bedroom home, I don’t know if the capacity of the initial one is large enough to handle the one bedroom and then other five bedrooms or the three bathrooms and the -- so, you know, the two kitchens and the -- you know, if it’s going to be built on post and pier, which I think is fine, and I’m not so sure that that area of land is much more than one and half feet above sea-level, so then when you begin digging in an eight-foot tank that you gotta cover by one and half feet, all eight feet of it is in the water, so, you know, I mean all that whole are down there leech fields have had, you know, people have put in leech fields because that’s the new recommendation, but normally they’ll put in a leech field and they’ll come back in and then they’ll fill the property in order to accommodate the leech field, so I -- I mean, for my five cents, I guess I just need a little bit -- a little bit more, a little bit more grease.

Mr. Dack: The engineering report does address that, and I’m looking for the proper page, but the engineering report --

Mr. Dunbar: Take your time.

Mr. Dack: Yeah, okay, here we go. There was a site evaluation and percolation test conducted in May of 2005, by engineer Wayne Arakaki, which indicated that the elevation of the -- of the site is eight feet, the ground water table is at four feet, and so there -- what they have proposed is an elevated septic leech field where they’re going to actually build up, they’ll have approximately two feet of a four-foot deep leech field below the finished elevation, and then approximately two feet above the current elevation, and then put twelve inches on top of that, so they’re, basically, going to mound it. They realize the water table Molokai Planning Commission Minutes - 05/24/06 Page 54 is high in the area and they’re working to maintain it looks like one-and-a-half foot to two feet of depth between the bottom of the leech field and the -- the water table so it would, again, as I say, be an elevated leech field that is on a mound which, again, I can also pass down the details for that. And they have sized it. They have been in coordination with the Department of Health. They have sized it for five bedrooms and I think, I don’t have the sheet in front of me cause the commissioners have it, but I think it’s around twelve hundred and fifty square foot, if I remember right, for the leech field.

Ms. DeCoite: Excuse me, is this on low tide or high tide?

Mr. Dack: I couldn’t answer that. That’s a water table, whatever would be the engineering practices to determine what the water table is, and I must admit I don’t know that detail, sorry.

Mr. Vanderbilt: Excuse me, Mr. Chair?

Mr. Ribao: Yes?

Mr. Vanderbilt: Could I ask a question or --

Mr. Ribao: Go ahead.

Mr. Vanderbilt: You mentioned that this is consistent with the Molokai Community Plan?

Mr. Dack: Correct.

Mr. Vanderbilt: Now, did you review all of the goals, policies, and objectives of the community plan in making that statement?

Mr. Dack: Yes, I did. Actually, this project came to me a good number of months ago and this was the occasion for me to read through the entire Molokai Community Plan, which I did in review of this application.

Mr. Vanderbilt: Okay, I just want to quote one section or one -- one -- two things -- three things: one says, “Discourage any additional development of buildings which impact the integrity of the shoreline;” another one says, “Establish shoreline setback plans based on the unique cultural environment in our ecological shoreline characteristics of Molokai shoreline,” and this is fronted by a fishpond, is that correct?

Mr. Dack: No, that is not correct. There is a Kanoa Fishpond is actually located maybe half a dozen lots or so to the east, so this front’s right on the -- Molokai Planning Commission Minutes - 05/24/06 Page 55

Mr. Vanderbilt: This is -- okay, that’s somewhere in the middle.

Mr. Dack: This front’s on the bay.

Mr. Vanderbilt: Okay. And I think that’s -- those were the only two, and my other question would be, we had a -- are you familiar with the problem that the Planning Director has imposed on that person, Mr. Anderson, who testified earlier that says they’re requiring a certain percentage view plain to the water or a certain amount of view plain, are you familiar with that? And how would what Mr. Foley is asking Mr. Anderson to do, how would that apply to the plans that are before us right now?

Mr. Dack: Yes. I’m not aware of the specific case of Mr. Anderson, however, when I was reviewing this application last fall, and in consultation with other staff members who’ve been around for quite a while, they did indicate to me, and I made notes in my copy of the community plan here, of not -- to have a general policy of forty, a minimum of forty percent of the width of the lot is supposed to be maintained for a view corridor between the road and the beach. In that -- so in that situation, yes, this application would meet that requirement just fine. That forty percent is forty percent of seventy-foot lot frontage is twenty-eight feet, so that’s the minimum corridor, per that standard, the cottage is only thirty feet wide, so they have well enough room for this lot and they could even have built it wider and still maintain that standard.

Mr. Vanderbilt: Have you seen the plans for the second home?

Mr. Dack: There are no plans for a second home now. The applicant has had some thinking of where they might want to put it, as I indicated earlier in the exhibit just passed out on the table, but, no, there are no plans for a second home but they have -- they are aware of this forty percent minimum and are comfortable that with the second home and showing the leech field where it shown proposed now that they could build a second home within the resulting development envelope just fine. They can speak more to that but, in my conversations, that’s what I understand them to say.

Mr. Vanderbilt: You mentioned earlier to another question that the second home would be subject to all the processes that’s involved with it --

Mr. Dack: At that time.

Mr. Vanderbilt: At that time.

Mr. Dack: Absolutely. Molokai Planning Commission Minutes - 05/24/06 Page 56

Mr. Vanderbilt: And I’m wondering, for instance, how that plays with the statement at the bottom of Page 7, it says, “Two residences may be built on the land and given that the SMA minor permit is being sought for the one small residence at this time, the single permissible SMA exemption could still apply to the second larger unit in the future.” What does that mean? Does that mean it won’t come back to this Planning Commission at that time?

Mr. Dack: Under existing rules, that is the case. If you were to change your rules, of course, then it could come to the Commission but, under existing rules, a second residence would be able to obtain an exemption and not come before the -- before the Commission.

Mr. Vanderbilt: So, however, even given the small additional future potential no known accumulative adverse affects upon the environment or involvement of the commitment for larger access beyond the project site are anticipated, but we don’t have any way of determining cause we’ll never see what happens with this second home. Is that correct?

Mr. Dack: It sounds like, under existing rules, you wouldn’t see what’s going to happen with the second home. That is correct.

Mr. Vanderbilt: Is this Commission empowered to put conditions on the cottage, for instance, no vacation rental?

Mr. Dack: I expect that they would be empowered to do that.

Mr. Vanderbilt: No, I only ask because that -- that was a commitment that an earlier person made in getting his approval for an ohana unit in the same area, the Pepper residence, I believe.

Mr. Dack: That’s not an uncommon condition with other projects these days unless, you know, the Director or Corp. Counsel were to indicate you have limitations of that condition, that would probably be fine.

Mr. Vanderbilt: Thank you.

Mr. Ribao: Question on the septic tank. You said the septic tank, the one that’s going in there, five bedrooms?

Mr. Dack: That’s correct.

Mr. Ribao: Okay, now this cottage, I’m looking at the floor plan, it’s one bedroom and an office so that would be considered a one bedroom? Molokai Planning Commission Minutes - 05/24/06 Page 57

Mr. Dack: That’s my understanding.

Mr. Ribao: Okay, so the house can be a four bedroom house? A bigger house?

Mr. Dack: Sounds like it could be.

Mr. Ribao: Yeah. Okay, just curious. But they can convert that office to a bedroom, right? Yes?

Mr. Dack: Yeah, that would be -- that could be a problem.

Mr. Ribao: Yeah, okay. I’m just curious. Thank you.

Mr. Chaikin: Yeah, I want to go back to that comment you made on the forty percent view plain. Does that include fencing that sits in front of the property?

Mr. Dack: It’s my understanding that if there’s anything that would be blocking the view plain, that would be included within the sixty percent that they can actually block.

Mr. Chaikin: Because as we drive down there right now, I mean that doesn’t seem to be the case. I mean there’s areas where you drive down the east end it looks like you’re driving through a tunnel. I’m just bringing that up to our attention because I think, at some point, this Commission has to put conditions or restrictions on the types of fences that can be put up to block the view because it doesn’t seem like it’s happening at the Planning level.

Ms. Kalanihuia: Well, probably they -- it didn’t go to the Planning Department and it didn’t go anywhere - they just built it. That’s the way it works.

Mr. Ribao: Yeah, okay. Okay, one question. If -- as you drive out Kawela there’s a house there with a huge wall, I’m not even sure who’s house it, and if there’s a complaint lodged, and just out of curiosity talking about view plains, they build a wall after everything was approved, if there’s a complaint, maybe this is more towards Wayne, can you folks go check on that?

Mr. Boteilho: Yes, we could. Preferably in writing and indicating exactly where the lot is so that we know where to go, but you could do it by email or even phone me, yeah.

Mr. Ribao: Okay. What was that, Ms. Buchanan? You had something you wanted to say? Okay, go ahead. Yeah, go ahead. Molokai Planning Commission Minutes - 05/24/06 Page 58

Ms. Lori Buchanan: That’s the applicants, yeah? Welcome to Molokai. Okay, I have two things, really fast. He brought up one of them is a condition to not have it as a vacation rental until the vacation rental law is being heard and gets done through Maui County. That would be a condition. If the law changes, they might be allowed to do that, okay. The second condition would be to not install a swimming pool. Now this is in general for anyone makai of Kam Highway, Maunaloa Highway in the SMA. And the reason for that is that I am asking, officially, for the State Water Use Commission to render an official decision on recreational water use on Molokai as a water management area, and until that official report by the water commission comes out, I’m hoping that this Commission will deter any further applications for recreational water use for swimming pools in the SMA and mostly on the shoreline, okay. So that would be my thing on top this. That’s it besides -- and just about the wall. We did put in an official complaint. That wall is in compliance. The reason why that wall is in compliance is because a berm was built up so -- because of flooding, and the law says that from the ground up, that wall is in compliance because the berm was altered so that wall that you cannot see, and a complaint was personally made to me by a resident across the street that they cannot access the beach now, there’s no beach access, and if you read in your rules and regulations for the Planning Commission, beach access falls under the purview of the Planning Commission. So when they build up subdivisions, the provisions for beach access is in there but when you start building up walls and not allowing people access, then you going have problems with people complaining that they cannot cross the street to the beach anymore. It’s just mana`o. Thank you.

Mr. Ribao: Thank you. Any further discussion? Okay, Commissioner Vanderbilt.

Mr. Vanderbilt: The second -- if a swimming pool is considered in the future, say it was considered with the plans of the first house, does that come back to this Commission, or is that just another project that -- I mean if it was part of the second home or if it was before or after the second home was built, would that come before this Commission?

Mr. Dack: Excuse me. I might ask for some Corp. Counsel assistance with that one or Director. The house could come back and be exempt. I would expect that if a swimming pool was coming as part of the house, that it could also -- that it could also be exempt. So I don’t have an expectation that the pool would come back, but, again, I’ll defer to other folks who might have a better idea on that one.

Mr. Vanderbilt: With regard to beach access that former Chair Buchanan brought up, along the whole subdivision of Kanoa Beach, is there any public access, beach access?

Mr. Dack: I understand, I haven’t verified it on documents, but I understand from discussions and site visit with the applicant that there is beach access between the highway and the beach, a little -- one adjoining the next lot to the south and then, of Molokai Planning Commission Minutes - 05/24/06 Page 59 course, lateral beach access along the -- along the shoreline is allowed because there is -- because it’s State owned land. So I understand there is access between the highway and the beach very near this property.

Mr. Vanderbilt: And it’s a public beach access? The county --

Mr. Dack: That’s my understanding. The applicant has indicated to me that -- that it’s in the deeds or conditions along with those deed requirements but, I must admit, I haven’t seen the physical documents myself.

Mr. Vanderbilt: Well, I think just in the future, it’d be good when -- I mean this is your first time to Molokai so it really is the friendly island if we get the information and -- so those are the kind of things that are really important, especially with beach accesses sort of getting cut off all around. And I guess the other question I had, Mr. Chair, was regarding the exemption. Now maybe our Deputy Director or Corp. Counsel can say where we stand as far this Commission having the say over what’s exempt and what’s not exempt.

Mr. Boteilho: If I understand that question, it’s if there is a condition today placed on the permit today, that no swimming pools would that -- would a future swimming pool have to come back before you. I would say yes because the condition clearly states no swimming pools. So you’d have to -- the landowner would have to come back and, basically, ask the Planning Commission to strike out that condition of no swimming pools.

Mr. Vanderbilt: No, my question was, in reading on Page 7, it says, the second -- they could use the SMA exemption for the second building and we heard that they could probably maybe use the exemption or apply for an exemption for the swimming pool. My question is we’ve been working on, this Commission, taking back the approval of the exemptions which now lie with the Planning Director, so where are we on that and when are we going to get this thing resolved?

Mr. Boteilho: Okay. Where we are is that Planning staff is working with Corporation Counsel to come up with the final signed rule change. Once that is done, then we will schedule it for a formal public hearing. If we were to assume that that rule change were to pass, then an exemption would -- any SMA assessment for you to -- for you to decide whether it’s exempt or minor or major would come before you. But, personally, I don’t feel it would be exempt because the condition states no swimming pool.

Mr. Vanderbilt: No, but even the second house, according to this stuff on Page 7, they’re not using the exemption on the smaller one but they’re going to use it, they could use it on the bigger house. So it’s not just the swimming pool, it’s the bigger house, which we understand that the applicant has said that they were gonna still try to maintain the view plain and everything else, but, you know, you may love Molokai and all of this, but you can Molokai Planning Commission Minutes - 05/24/06 Page 60 see all the “For Sale” signs there where people buy land, they build, and they speculate, and -- and we’ve had an awful lot of good people move in here also, so these questions aren’t anything personal. It’s just we’re trying to understand what you -- you probably are trying to understand too, so --

Mr. Boteilho: But it’s almost a double-edge sword because if the second house comes under this permit, under this exemption, then the conditions apply to the second house.

Mr. Ribao: Okay, I’m going to move on. That’s more of a policy question. The policy allows you to build the second house with the present minor permit. Until that’s changed, there’s nothing we really can do about it. We can put an exemption for the pool, if you wanna, that’s no problem, but, Ms. Buchanan, you wanna say something? I think the applicant want’s to talk too. Okay, you wanna say something, sir?

Mr. Tan Altinbay: Good afternoon. I am Tan Altinbay and this is Akiyo Murata, my wife, and, excuse me, I’m a little nervous. But, anyway, two and a half years ago we purchased this property with the intent to eventually move here. As you said, we do love this place very much and we’re happy that we have the meeting here and we were able to come. Anyway, I wanted to clarify a few things, if I may. As far as the leeching field, initially, the engineer had made it just for the cottage, which was two -- considered two bedrooms. Yes, it is a bedroom and our office, but the second one would be considered a bedroom, so as far as we’re concern, yes, it’s three bedrooms max for the second house. As far as beach access, yes, this morning we verified that neighboring lot has a four foot easement to the beach. That’s just another piece of information. What else? We did, oh yes, the archaeological survey inventory was performed April 21 and I did get a letter yesterday from them stating that it was performed and nothing was found. I don’t think the final report is quite ready cause they mentioned it would take about six weeks so it would be another week or two. And we are not intending to build a pool. I think that’s about all. Do you wanna say something? Say hello.

Ms. Akiyo Murata: Hi. My name is Akiyo Murata, Tan’s wife. The second house we’re looking at in the future but we have not determined when and how big it’s going to be but probably will be a small house and then we -- we are going to, of course, comply with all the rules and restrictions and everything, so we try to be part of Molokai, that’s our heart.

Mr. Altinbay: Yeah, we don’t want to do anything -- I mean we would be living here so we would be part of the community. We don’t want to do anything that would, you know, be not consistent with, I suppose, the community. I guess that’s all. Oh, by the way, we live on Maui. We’ve been twenty years, ten years. So, again, we would like to retire here eventually. That’s the intent of the purchase and the cottage. It’s part of our dream. Thank you. Molokai Planning Commission Minutes - 05/24/06 Page 61

Mr. Ribao: Any questions for the applicant? Kip?

Mr. Dunbar: I’m looking at your map here and you say now on is it the east side of the property or is it the west side of the property that has this four-foot easement?

Mr. Altinbay: It’s the ...(inaudible)...

Mr. Dunbar: It’s here by the driveway?

Mr. Altinbay: It’s on the next lot. Our lot would be thirty-nine; lot forty has a four-foot easement. I do have the paper. I should show it I suppose. One second. Yes, it is Joan Aidem. She’s our neighbor. If I may show --

Mr. Dunbar: Okay, well, I mean what I’m saying is that I’m looking at -- when I look at this, and Mrs. Aidem’s lot is here --

Mr. Altinbay: Yes.

Mr. Dunbar: So that four foot runs here?

Mr. Altinbay: No, it’s on the other side.

Mr. Dunbar: It’s on the other -- okay, so it’s the Kaunakaki side of Joan Aidem’s lot --

Mr. Altinbay: Yes.

Mr. Dunbar: Which has nothing to do with your lot.

Mr. Altinbay: Oh, okay, I guess someone mentioned ...(inaudible)...

Mr. Dunbar: Okay.

Mr. Altinbay: ...(inaudible)... thank you.

Mr. Dunbar: Thank you.

Mr. Vanderbilt: Here comes our Chair.

Mr. Ribao: Any further questions? Molokai Planning Commission Minutes - 05/24/06 Page 62

Mr. Vanderbilt: Yeah, I have a question for the Planning Department. So, in your talks with the applicant, you have -- there was some indication that if there was a second home that they would try to maintain that view corridor to the ocean from the road?

Mr. Dack: They indicated they would be able to do that. That would still, even under current rules, that would come through the Planning Department and in order to be able to achieve the exemption, it would be -- need to meet all policy requirements that time including, as it stands right now, the current policy of the forty percent. So, yes, that would come back for review and there would be a chance to check it I’m sure ...(inaudible)...

Mr. Vanderbilt: Could you supply this Commission with that rule or whatever it is that -- at some later date but just --

Mr. Dack: Yeah, we’ll make a note to try to get that to you. All I have is a pencil note from senior staff at this point.

Mr. Vanderbilt: Okay. That would be terrific. Yeah. And I just had another question for the applicant. Had you given any thought, I assume that what you’ve talked about the view corridor with the Planning a little bit --

Mr. Altinbay: Yes, a little bit.

Mr. Vanderbilt: And have you -- have you thought about single-story or two-story on the second home?

Mr. Altinbay: We, definitely, we’re thinking of first, I’m sorry, one story --

Mr. Vanderbilt: Oh terrific.

Mr. Altinbay: Because we’ll probably be older and we wouldn’t wanna climb stairs.

Mr. Vanderbilt: I can identify with that. Thank you.

Mr. Altinbay: Okay, thank you.

Mr. Ribao: Okay, go ahead.

Ms. DeCoite: If that is a single-story and my question is what size of a house you’re looking at building because ---

Mr. Altinbay: Yes -- Molokai Planning Commission Minutes - 05/24/06 Page 63

Ms. DeCoite: On the first home, we kind of mapped out and diagramed what, you know, a five bedroom, what, probably three thousand square feet, I mean going be pretty close to the shoreline and, you know --

Mr. Altinbay: The second -- the other home?

Ms. DeCoite: Yeah.

Mr. Altinbay: Obviously, because of the, well, the setbacks and everything, it probably would not be that big. We haven’t, again, we haven’t really planned that yet and we didn’t really know about that forty percent corridor till today so --

Ms. DeCoite: Okay.

Mr. Altinbay: And which is not a problem. We just put it, you know, locate the house -- and, again, that would make it a bit smaller but, as far as figures, we don’t know except it’s somewhere in that open area and then the reason that we made the -- asked the engineer to make the leech field bigger was to accommodate for the future home --

Ms. DeCoite: Okay.

Mr. Altinbay: Which would be a maximum three bedrooms.

Ms. DeCoite: Okay, thank you.

Mr. Altinbay: Yeah, thank you.

Mr. Ribao: Okay. No further questions? Okay, Bill, go ahead.

Mr. Feeter: Yes, thanks. The drain way in front, there’s a concrete drain way, do you know if you have to maintain that?

Mr. Altinbay: I think we do. Yes. And I think that was mentioned in the -- that we would have to clear that up.

Mr. Feeter: Did our new planner -- so is it, in other words, is it county property or your property?

Mr. Altinbay: The swale is ours. It’s in the easement.

Mr. Feeter: Okay, that’s close enough. Molokai Planning Commission Minutes - 05/24/06 Page 64

(Commissioner Kalanihuia was left the meeting at 4:13 p.m.)

Mr. Ribao: Okay, I’m gonna ask for recommendations at this point.

Mr. Dack: The Planning Department recommends approval of the SMA minor permit subject to conditions. There are four standard conditions listed. There are a few special conditions, some of which were eluded to in the earlier presentation, first your archaeological, I’ll just briefly, number five, is archaeological inventory survey be conducted, a report documenting the archaeological work shall be submitted to the State Historic Preservation Division for review and approval. The applicants have indicated they’ve completed the report and it’s probably going to be submitted very soon. That if significant historic sites are identified, the applicant shall develop detailed mitigation plans and submit those to SHPD for approval. On the last page of the staff report, if burials are discovered during the survey, a burial treatment plan would be prepared. Condition 8, which does reference the concrete swale. Prior to occupancy of the new dwelling, the applicant will either clean out the concrete swale traversing the property, again, mauka of the proposed dwelling, and/or work with other parties responsible for its maintenance to achieve its cleaning and future maintenance so as to serve its original drainage purposes. And site development and future use shall not encumber its effective use for drainage. Final Condition No. 9 is best management practices to be employed. You’ve heard a couple suggested conditions from public testimony, which we’ll certainly leave that to you, but with consideration of all the foregoing, the Planning Department recommends the Commission adopt the department’s report and recommendation prepared for this meeting and approve the project subject to those conditions. Thank you.

Mr. Ribao: Thank you. Any public testimony on this? Yeah, it’s a long day. Any further discussion? If not, I’m going to entertain a motion if anybody wants to put one forward.

Mr. Vanderbilt: I would like to make a motion that we approve the special management area minor permit for the construction of a single-family residence, carport, and appurtenant facilities, Tax Map Key 5-4-017:037, with the conditions recommended by the Planning Department and with three other conditions that the -- no swimming pool be developed on the lot; that the second home be single story; and that no vacation rentals be allowed on the property until such time as the vacation rental ordinance is -- comes into effect.

Mr. Ribao: I’ll need a second.

Ms. DeCoite: I’ll second that.

Mr. Ribao: Okay, any discussion? Molokai Planning Commission Minutes - 05/24/06 Page 65

Mr. Dunbar: Yeah, I got one discussion and the discussion is they’re putting it on post and pier, which is fine, for that second home -- I mean for that first home, but I would think that you would want someone on hand when they dig that leech field to find out what is subsurface because if the leech field is going to be down a couple feet, you may well find my bruddah is down there a couple feet. So I would think that, you know, on any type of sandy soil like this, at least there be somewhere there to determine if there is or is not remains of some burial in that area because the State Historic Preservation said that certainly they thought there was but, you know, just walking over the surface doesn’t necessarily tell you there is. So I don’t know if we can add that as a fourth condition or a third condition or -- but that would be my recommendation. You don’t have to add it as a -- but it’s up to you.

Mr. Ribao: Okay, you wanna add that amendment on, then we vote on the amendment, then we’ll vote on the management permit.

Mr. Vanderbilt: So, Kip, what would the amendment say that if there’s any --

Mr. Dunbar: You said no pool, no vacation rental --

Mr. Vanderbilt: No, what you said --

Mr. Dunbar: And the ...(inaudible)...

Mr. Vanderbilt: That you were worried about burials?

Mr. Dunbar: Well, when you -- it’s on -- it’s not in the staff’s recommendation that when they dig the leech field, there be a monitoring of that dig to make sure that there are no skeletal remains under the leech field so -- I mean I’m -- I’m suggesting, you don’t have to act on the amendment; of course you’d have to have my approval ...(inaudible)...

Mr. Vanderbilt: Corp. Counsel, I mean how do we if it’s a friendly amendment?

Mr. Souki: This is Jesse Souki, Deputy Corp. Counsel. You could offer it as an amendment, vote on the amendment, and then vote on the motion as amended.

Mr. Ribao: Okay, any discussion on that? Okay.

Mr. Dack: Pardon me. If you wish to do that, you probably should also say monitoring be present during digging for the leech field as well as the septic tank itself, both those items, cause that’ll actually probably be deeper than the leech field. Minor point.

Mr. Dunbar: I was thinking all at once. Molokai Planning Commission Minutes - 05/24/06 Page 66

Mr. Dack: Okay. Alright. Well, that’s --

Mr. Dunbar: But you’re right.

Mr. Dack: We’re in sync then. Thank you.

Mr. Vanderbilt: So what was the scope of the historic preservation review? Do you know? Did they do any subsurface testing or anything?

Mr. Dack: Yes, there was. I understand there were four or five -- four or five digs, I guess so to speak, and nothing was found.

Mr. Vanderbilt: And we’ll be getting a copy of that report?

Mr. Dack: If you wish to have one.

Mr. Vanderbilt: Yes, I mean I would think we’d want one in the file.

Mr. Dack: Oh, well, yes. We’ll have a copy in the department’s file. Does the Commission --

Mr. Vanderbilt: And the file here on Molokai.

Mr. Dack: We can make sure that one comes to Molokai.

Mr. Vanderbilt: Thank you.

Mr. Dack: Yes.

Mr. Ribao: Okay, if there’s no further discussion on the amendment, the amendment is to have someone present from the archaeological society while they dig the leech field and septic tank, okay? All those in favor, raise your right hand? All those against? Okay, motion passed. Now the other motion on the floor is to accept the special management area minor permit with the necessary recommendations that was brought forth by Commissioner DeGray Vanderbilt and Mr. Kip Dunbar. Okay?

There being no further discussion, the motion was put to a vote.

It has been moved by Mr. Vanderbilt, seconded by Mr. Dunbar, then unanimously

VOTED: to accept the special management area minor permit with the necessary recommendations that was brought forth by Commissioner DeGray Vanderbilt and Mr. Kip Dunbar. Molokai Planning Commission Minutes - 05/24/06 Page 67

Mr. Ribao: Okay, motion passed. Thank you. Okay, continuing on. We can try get out of here in about ten minutes, okay. Maybe you guys can catch your flight. Oh, no. The plane left.

Mr. Boteilho: This is the one chance we don’t have to rush.

Mr. Ribao: Before -- Lori, your thing is going to take a while? No?

Ms. Buchanan: No.

Mr. Ribao: Okay, under chairman’s report, like I said, we tabled item two under Communications, a and b. I’m going to let you folks deal with that on the next meeting. Under chairman’s report, Ms. Lori Buchanan wanted to bring something up. I’ll put her under chairman’s report.

G. CHAIRPERSON’S REPORT

Ms. Buchanan: I just wanted the Commission to be aware of something as well as the Planning Department on record. Back in July of 2005, I -- it wasn’t made -- I don’t know if the Planning Commission got a copy of the letter, but a letter was sent by west end residents to our County Council, our Councilman, to the Planning Department, and to the FAA back in 2005 of July, and that letter was an official complaint by west end residents that there was a private airstrip owned by John Weiser, or his company, that multiple private aircraft landing activity takes place daily carrying tourists to and from Oahu. A vintage stunt plane flies from time to time doing acrobatics and using smoke canisters for entertainment all over their west end property. At times, blank, I not going say the person’s name, has seen, and that was the person who wrote this letter, has seen many as three planes land, bumper to bumper, in several cases, so close to each other that the first had to abort landing to let fellow behind land and he was too close. This person made calls to the FAA October 14, 2003, and spoke to this person, Mr. Charles Kantu, who indicated he had heard of the issue already, and that was it. And so this person did that already, yeah, back in 2003, complained to the FAA, FAA never do nothing; took their complaints to the County Council, to the County Planning Department, and nothing was done.

As you well know, there was a plane crash where people were seriously injured concerning this person’s complaint. I feel if something was done about this person’s complaint back in 2003, we would have not had that plane crash. If anybody read what happened following that plane crash, the FAA said, “A sudden burst of wind was to blame for that plane crash.” Residents surrounding Mr. Weiser’s property are not happy with what he’s doing. Mr. Weiser has also been turned in for landing his helicopter in inappropriate places without permission from landowners, and I, personally, have seen that.

So, again, I just say it’s Molokai has no enforcement and for this Commission to approve things, we always have to lay on the side that there will be no enforcement once we put a Molokai Planning Commission Minutes - 05/24/06 Page 68 project through. What the -- if I was resident of west end and I knew that everybody knew what was going on since 2003, I’d be suing a lot of people right now because if my house was in less than a quarter of a mile of that landing strip, and if I was a PUC holder, which I am, doing tours, I would not appreciate paying large amounts of taxes to PUC, Public Utilities Commission, while people were running illegal tours. I’ve never seen a letter that any investigation was done or any enforcement was done, and that’s just status quo, again, on Molokai. So when this plane crashed, can you imagine how I felt? I was like it was the accident waiting to happen. Nobody did anything about it and here’s the proof, okay. Everybody knew about it, but nobody did anything about it. It’s just the lucky thing that nobody -- it didn’t land on somebody’s house. Look what happened in Maui with the air ambulance, you know. Could have landed on Wal-Mart, but it’s just the whole thing that it’s not a permitted use, it’s shouldn’t be there, and it’s this Commission’s job to make sure that we ensure the safety of our community members, okay.

And I’m not going to be here at the next one, so on the Maui Vacation Rental issue, cause it’s a public agenda item, they want you to do two things. They want you to allow a presentation by their panel. Sure, nothing wrong with that. But on item two, that they’re asking your guys to designate the MVRA as a resource during meetings where vacation rental legislation is discussed. Simple. No way Jose. That’s my answer. That is not pono and that is not cool, and I would not want this Commission to give them that type of designation and importance on such an issue. That would greatly outweigh the balances of what the community is here for. Okay, thank you. That’s it.

Mr. Ribao: Okay, thank you, Lori Buchanan. Under Director’s Report, we’re going to move to item two because Mr. Nicholas has been waiting very patiently back there.

H. DIRECTOR’S REPORT

2. Laau Point State District Boundary Amendment

Mr. Boteilho: If I could just briefly report, we put this on because we’ve been receiving information documents that we’re going to hold on file here and we’re passing it out to you officially on the record today. So I just had to report on that that we are passing out information. This will come -- come before you if and when there is a community plan amendment application.

Mr. Ribao: Okay, under that item, did you receive this letter, Wayne?

Mr. Boteilho: No, I didn’t see that letter.

Mr. Ribao: From Mr. Nicholas? I’ll read it and -- you guys received the letter from Mr. Nicholas, Peter Nicholas, CEO and President of MPL, Molokai Properties? He requested to attend the May 24 meeting, okay, which he is here, and on June 14, which is the next meeting, he wanted to give some explanation as to where they are in the Molokai Planning Commission Minutes - 05/24/06 Page 69

Laau Point State District Boundary Amendments, and it’s up to you folks if you folks want that on there.

Mr. Boteilho: Well, if I could suggest, Mr. Chair, we could go back into community input and as long as there’s no discussion or debate by the members on this issue, I think it would be okay for Mr. Nicholas to give input. Yes, well, the reason I’m saying that is because it was not agendaed as a matter that we would discuss or debate, yeah, so -- but if Mr. Nicholas wants to take his three minutes to give some community input, he would be the same as everybody else.

Mr. Ribao: Yeah, because discussion and public hearing is scheduled for the 28th, yeah? Go ahead, DeGray.

Mr. Vanderbilt: Well, I think the idea of putting this on the agenda was mainly because the community was really confused about the state and county entitlement process and why the Molokai Planning Department or Molokai Planning Commission weren’t the accepting authority for the EIS statement. As you know, from reading the Dispatch, the first meeting was held in Hilo on May 4 and this document we’re getting today came out April 27, and, on May 4, there’s no way for anybody to Molokai to get to a meeting in Hilo and -- but there were four or five people there. I was in Maui and went down there to the meeting only because I felt that the Molokai Planning Commission or Molokai Planning Department or combination of the two would be the best accepting authority under the EIS because of our knowledge of Molokai and -- but I guess the way the law reads, it’s who they applied to first and Molokai Ranch elected to file for a State Land Use Boundary Amendment first instead of going for a community plan amendment first. And if they’d gone for a community plan amendment first, I believe, Peter can correct me if I’m wrong, but I believe that then the Planning Department or and/or the Planning Commission would have been the accepting authority for the EIS so -- but I did go the meeting down there and I had a copy of the petition because the ranch attorney, Lynell Nishioka was nice enough to give me hers, but the only people down there was some residents who were formerly from Molokai, Linda Camara, her kids; Scarlett Ritte was down there helping her daughter and she was there; myself, and the county was unable to get down there and so I’m hoping that at least I could get my expenses reimbursed for the airfare and everything down there ...(inaudible)...

Mr. Ribao: Okay, you know, DeGray, I’m going to cut you off. This is not the time to discuss this. We can -- you guys wanna put it on the agenda for the next meeting, we can do this. The question here is, Mr. Nicholas, he requested thirty minutes to give a presentation, not necessarily -- no discussion. If it’s a presentation, you say it’s alright, Wayne, and as long as there’s no discussion?

Mr. Boteilho: Well, it would be community, yeah, it would be community input, technically. If the body wishes to give him thirty minutes, then that’s up to the body. Molokai Planning Commission Minutes - 05/24/06 Page 70

Mr. Ribao: Okay, that’s what we’re discussing. If you wanna discuss the Laau Point, you can put that on the agenda for you guys to talk about after, next week, because we’re kinda stretching our time to the limit today.

Mr. Vanderbilt: Mr. Chair, regarding, you know, under the Director’s Report, there’s the Panda Ranch Commercial Tours, could I --

Mr. Ribao: Yeah, we’re going to talk about that but let’s settle this item first, okay.

Mr. Vanderbilt: Okay, thank you.

Mr. Ribao: Okay, I’m not going to be here. It’s up to you folks if you folks wanna let him give his thirty minute presentation or not. Okay, go ahead.

Mr. Mahealani Davis: I’m the only public person left here, practically. The Ranch is proposing or has posters up presently around town to do public meetings to put forward and receive any comments, concerns about this project. I don’t see that it would be necessary to do a special presentation here in front of the Planning Commission unless this Planning Commission, these commissioners don’t plan to attend any of the public information meetings. As I said earlier, I was concerned that the -- the review, I guess, or lobbying for this project is taking place in such a way that it seems -- it could be done in a way to greatly increase the amount of public participation by this community. There’s a strong voice that says this is going to be in the benefit of the native Hawaiian community but I don’t see that those meetings are particularly geared to present that information to the native Hawaiian community. It’s community at-large. And as we are all community members, I’d say, you know, people should make every effort, whether you’re a commissioner or a homesteader or a west end resident or whoever, to attend those information meetings and have this discussion openly and fully at the community level and not in selected small sessions. We’ve had two years of small meetings with hand-selected audiences and I feel like the time is now for these to be open, community meetings, and by community I mean fully community, and these commissioners, you folks are members of this community like everybody else. The time for special interest groups to sit in small gatherings and closed rooms is pau. This is a very important decision. I would like to request, formally, that this Commission get in touch with the Land Use Commission and make a request that this group right here be the final authority for any zoning changes, anything that needs to be changed, a community plan or ordinance, county level, you know, anything that needs to be -- just any decisions that need to be made, this should be the final authority. This is something that’s going to impact this community. We have a planning commission and we have a community plan for a reason and I don’t like the feeling that a plan is coming in and kinda sidelining decisions that have been made over the last ten, fifteen, twenty years by community people participating in long drawn out discussions. At this point in time, there some commitments and some policies and some visions that have been put to paper by large groups of community members and if this EC master -- the masters land use plan is going to in part or in full be -- become part of what Molokai Planning Commission Minutes - 05/24/06 Page 71 our community’s plan is for the future, then I want it to be done openly and honestly at community meetings. So I’m not sure what your decision should be about, you know, having a thirty minute presentation just for this group. Maybe that’s good. That’s your decision. But I just wanted to make those comments and request, formally, that, I didn’t do it earlier, but for that this Commission to request, formally, to whoever the powers are, the other authorities are, that this Planning Commission, Molokai Planning Commission be the final authority for decision making in this Laau development plan.

Mr. Ribao: Mr. Nicholas has -- he has his three minutes also.

Mr. Boteilho: And, Mr. Chair, if I may note, Mr. Nicholas seems to be asking for a presentation on the June 14 meeting.

Mr. Peter Nicholas: Chair and members, the request to address you was more than -- it was a courtesy. I’m happy if you don’t see fit to do that at your next meeting. We have to and intend to come to the Planning Commission on a formal basis seeking an SMA permit and a community plan amendment. So there’s been no thought, at any stage, that this body would be circumvented or gone around in any shape or form. Our legal advice was that a Supreme Court ruling meant that we had to go to the State Land Use Commission for a district boundary amendment, now as well as the Planning Commission, we have to go to the Maui County Council, we have to go to the State Office of Environmental Quality Control. It’s a long involved process. And at the end of the day, you hold a lot of power and you can make decisions on this project just as much as the Land Use Commission can and just as much as the Maui County can.

So I think as far as the Hilo hearing went, we filed our petition with the Land Use Commission and they picked where the hearing was to be held. We had no say. The next one was Hilo, the one after that was Lanai, etcetera. There was a desire to get it filed because the process is very long and very tiresome and very time consuming. So I apologize if it was seen as being circumventing anyone.

The community input process begins next week with the cultural assessment EIS report. There are eleven EIS reports and once those reports are filed in a draft form, then we intend to come to the Commission for their input, as well, we have to come to the Commission, as I briefed the Commission last year, on the refurbishment of the Kaluakoi Hotel, and that has to be in the next little while as well, so we’re preparing those applications. So my reason really for requesting an audience was just to give you a briefing, just to give you an overview, and give you a time table and so that you could slot in, over the next six months, the sort of dates and the sort of times that you’d need. Thank you.

Mr. Ribao: Thank you. Any questions for any of the speakers? Go ahead. You have a question. Molokai Planning Commission Minutes - 05/24/06 Page 72

Ms. DeCoite: First of all, thank you, Mahea, for coming up and, you know, I think some of the requests that she made, I would like to make to -- to the Commission also is that we get with Land Use Commission, see what kind of request they’ve had come in on the impacts of what’s going on, and I’d also like to request the final authority being that is such a huge project is going to be taken here on Molokai. I’d like to get the dates and times of all the community meetings coming up from you, Peter, if possible, and I’d like to get, hopefully, I can get the rest of the Commission members out there. Thank you. And in light of all the information that was put on our table today, I’d like to request more time on this matter to go through it because it was a lot dumped on us today. Thank you.

Mr. Ribao: Okay, go ahead. It’s still open for public testimony.

Ms. Buchanan: Really fast. While I agree wholeheartedly with what Mahea had to say, just a reminder, that this is -- this Commission is driven by the Sunshine Law, and the reason for presentations, like Peter is advising, is that you guys can all hear this under the Sunshine Law rule. If three or more -- if three or more of you show up at a public meeting, that constitute a meeting of the Planning Commission. You cannot -- you cannot voice your opinion in a public meeting, one way or another, if you’re meeting, and the Corp. Counsel can explain this to the Commission, that is the reason why we have special groups come in to the Planning Commission. Now, if Peter does his thing and he can come in, so can the Save Laau Point. They can put in the same request to you requesting that they come before you to present their point of view. There’s nothing wrong with that. Just be aware that you are under the Sunshine Law, okay.

Mr. Ribao: Thank you.

Mr. Vanderbilt: Mr. Chair?

Mr. Ribao: Okay, DeGray.

Mr. Vanderbilt: Yeah, Mr. Chair, in response to what Mahealani said, as far as the Land Use Commission, as I mentioned earlier, I think the fact that the Ranch went to the State Land Use Commission first rather than filing with us for a community plan amendment first made it so that the Land Use Commission is the accepting authority just on the EIS. With regard to us being the final authority on the change in zoning or community plan amendment, the law says that we’re only advisory. We hold the public hearings, we give our recommendations to the County Council, but we are the final authority on the SMA permit. So before the development can move forward, as Peter said, it’s an exhaustive, they’ve gotta get the state zoning changed, they gotta get a community plan amendment, they gotta get a change in zoning from the county and a community plan amendment from the County Council, and then they gotta get final approval of the project on an SMA permit from this Commission. So I, personally, wouldn’t want the community to have to come up to another meeting. Molokai Ranch was nice enough to, I guess, give everybody a copy of this, this is three hundred pages, and if you read through that, you’ll have a pretty good Molokai Planning Commission Minutes - 05/24/06 Page 73 understanding of the project itself and I’d just hate to see the community coming out before us. You know, they’ve elected to go to the state, there’s going to be a lot of documents come out, and the community is going to be able to comment on those documents with any questions they want and the ranch is going to have to answer them, and the Land Use Commission has said that they will have three hearings on Molokai. They will have the hearing to accept the EIS. They’re the accepting authority. They can accept it or decline it. But they will have the meeting here and the public will be able to get involved. They will also have, after they’ve accepted the environmental impact statement, they will have a evidentiary hearing.

Mr. Ribao: You know what, DeGray? I’m going to cut you off. This is going to be discussed at the next meeting. The thing brought before us right now if you guys gonna allow him to give his presentation. At the next meeting you guys can discuss this, this Laau issue, cause you guys have light agenda at this point. Okay.

Mr. Vanderbilt: Well, I’d like to make one other --

Mr. Ribao: Okay, one --

Mr. Vanderbilt: I think it’s really important, Mr. Chair.

Mr. Ribao: One fast comment.

Mr. Vanderbilt: Alright. I just think, you know, it’s really important that we only, the public only has three more days to file a very important document and that’s -- to file a document with, I assume it’s the Land Use Commission, if you have an intent to intervene and -- and maybe you don’t -- even if you don’t file that letter, there’s a chance you can intervene in the future, but that letter allows you to get all documents that come into the Land Use Commission and everything else. They will forward them to you so you have a better understanding of where everything is going in this project. Unfortunately, there’s not many people left here, but it’s just -- it’s a simple letter and that’s just ...(inaudible)...

Mr. Ribao: Okay, thank you. Now, the issue at hand. You folks -- that’s up to you folks, like I said, I’m going to be here, if you want him allowed to give you a presentation or not.

Mr. Vanderbilt: Mr. Chairman?

Mr. Ribao: Go ahead.

Mr. Vanderbilt: Can I ask our Corp. Counsel or --

Mr. Ribao: Well Wayne addressed that question. I don’t think there’s -- he said as long -- Molokai Planning Commission Minutes - 05/24/06 Page 74

Mr. Vanderbilt: No, the only thing I said is the county didn’t show up at the first State Land Use Commission, they are a party, the county is a party at all the State Land Use Commission hearings and, generally, the planner in charge of the project plus the deputy director or director, is that right? will sit at the Land Use Commission table and I do know if planning commissioners can sit at the table also, but is -- is this -- are members of this Commission allowed to intervene, or this Commission, or are they already a part because the Planning Department --

Mr. Ribao: Okay, you know what? Again, I’m closing you off. You can talk to him about that after. The question before is if you guys gonna allow him or not. It’s up to the commissioners.

Mr. Vanderbilt: Well, with regard to that question, I just think, from my standpoint, it’s just we have a big document to digest, the community’s going to have a lot of meetings sponsored by the Ranch, sponsored by the Save Laau Point so, and we’ve got a pretty full agenda coming up in June and July, so I would just assume go through the process.

Mr. Ribao: Okay. Okay, I’m gonna take a vote since we’re running -- he request a thirty- minute presentation at our next meeting, which is June 18. All those who wanted to do this, without giving any input or anything, can you raise your right hand?

Mr. Vanderbilt: Well don’t we have some discussion on that?

Mr. Ribao: We discussed it enough, Mr. DeGray.

Mr. Vanderbilt: Did we have -- did we have a motion?

Mr. Ribao: No, that’s why I’m asking for a motion right now.

Mr. Chaikin: I have a question. So if he makes a presentation, is the public going to be able to respond to that presentation?

Mr. Ribao: Yeah, but not us. We just have to listen cause it’s scheduled for the June 28. Am I correct in saying that, Wayne?

Mr. Boteilho: Mr. Chair, if you vote to have a presentation at the next meeting, it will be agendaed as a communication item, it’ll be same as everything, public testimony, anybody can discuss anything, you could possibly even take action. I would say that if you do vote to make that request, it would be subject to further legal review because I’m not sure, we’re already on the record knowing that you’re going to have an application coming, so to discuss this, I would like to give your legal counsel a chance to take a look at it. But you could vote to make the request. I’m just not qualified to say yes or no. Molokai Planning Commission Minutes - 05/24/06 Page 75

Mr. Ribao: Okay, you know what? This is not a pressing item at this point. It’s still at the Land Use Commission and stuff so he can do some review, and if you guys wanna decide maybe to have it at another time or not, it’s up to you, you know.

Mr. Vanderbilt: Don’t we have a pretty important item on our June 14 meeting already?

Mr. Boteilho: Yes, two public hearings.

Mr. Vanderbilt: Two public hearings and --

Mr. Boteilho: Six and seven under Director’s Report, so I don’t have to report on it later. Sorry, just joking but -- okay, six, to answer your question, six and seven are scheduled -- oh, excuse me, six is scheduled for June 14, that’s the affordable housing policy.

Mr. Vanderbilt: Well, and I think that’s going to be a big issue and I just think it’s going to be a circus here with people coming in to testify cause they don’t want to be left out in the cold and I, for one, would be against it.

Mr. Ribao: Yes?

Mr. Nicholas: I’m sorry. This is information. This is trying to keep people briefed. This is not any desire to do anything other than have you knowledgeable of a process. So I’m quite happy if it’s delayed. Or you don’t have it all? Really?

Mr. Ribao: Okay, fine. To get us -- why don’t we delay that and make -- go ahead.

Mr. Vanderbilt: Peter, would you be willing to just send in to the Commission some kind of summary of how you see the state and the county entitlements going so we could do that and share that with the community? Send it to the Commission, just a letter saying here’s how you see the process going.

Mr. Nicholas: ...(inaudible)...

Mr. Ribao: Okay, if you folks satisfied with that, we’ll just leave that at that. Okay, next item, the Panda Ranch Commercial Tours.

1. Panda Ranch Commercial Tours

Mr. Boteilho: Yeah, Mr. Chair, to report on this one, I had a request to look into this. I’ve looked into it. There was an inquiry years back and I’m told by our Zoning Administration and Enforcement Division that, at that time, it was ascertained that the flights did not include commercial activity, it was basically transportation of the landowner, I’m not saying whether it’s right or wrong, but that’s what’s on the record as being told to me. Since then, we have been looking at it closely, I mean more closely, and I am told by our zoning Molokai Planning Commission Minutes - 05/24/06 Page 76 enforcement division that there is some indication of commercial activity, so we’ll be looking at that, and if there is commercial activity, then formal zoning enforcement will take place probably first in the form of asking the landowner to cease and desist. And that’s what I’d like to report.

Mr. Feeter: Yeah, a comment. It seems to me if he’s -- that he is running a commercial operation. There’s no question about it. He should be paying some sort of fees for that. Has it been determined? Or let’s ask the question. I think you should determine what fees he should have been paid and he should be made to pay any back fees on his commercial operation.

Mr. Boteilho: That’s something we could look into. I’m not certain, at this point, whether we could do that. I know we can fine him for not being in compliance but as far as requiring business fee, license fees from the back, I’m not sure if we can do that but we can look into it.

Mr. Feeter: Well, I would strongly recommend that and if it takes a motion from this body, I would so do it, but it just seems to me that that’s only appropriate that -- he’s getting away with it and he has done.

Mr. Boteilho: Okay, well, I’ll relay that to our zoning enforcement people to look into that. Further, going down I guess -- oh, sorry.

Mr. Chaikin: I have one more question about that. I guess the one issue is whether or not he’s conducting the commercial operations and that is not consistent with the zoning of the area. When you take away that commercial operation, is a landing strip a permitted use in that zoning?

Mr. Boteilho: That’s another thing we would look into. Honestly, I cannot give you the answer right now. I’m not certain what the zoning is, it’s probably residential, but I’m not certain. It could be open space or something like that. But, yeah, he has to comply with the zoning, whatever the zoning is, but it -- being that it’s been there for a while, I’m not -- and it was looked at earlier, it may be a permitted use, but I’m not sure ...(inaudible)...

Mr. Chaikin: Could you repeat whether or not he had permits originally to put that airstrip in?

Mr. Boteilho: No, what I’m saying is we’re looking into it, I cannot answer you right now, but it just seems that it’s been there so long he may have had permits.

Mr. Feeter: Along with fees, what about taxes? Is he running a --

Mr. Boteilho: That is almost the same thing. I’m not sure if we can back taxes. Molokai Planning Commission Minutes - 05/24/06 Page 77

Mr. Feeter: Let’s look into that.

Mr. Boteilho: Okay.

Mr. Feeter: That shouldn’t happen here.

Mr. Vanderbilt: Mr. Chair, this is a question to Wayne or to Jesse. Under the ag ordinance, which Molokai had a big say in, there’s things that are specific to only to Molokai. For many commercial operations, you don’t have to get -- it’s a permitted use in Maui and on Lanai, but on Molokai, all such uses, hiking, non-commercial fishing, hunting, equestrian activities, rodeo arenas, blah, blah, all these other commercial activities, mountain biking, hang gliding, they must be approved by the Molokai Planning Commission, so my question is if there is a commercial operation and it’s determined that, and maybe Corp. Counsel, don’t they have to come to this Commission for a permit to conduct that commercial operation?

Mr. Souki: This is Jesse Souki, Deputy Corp. Counsel. Well, like Wayne was saying, we don’t know what the status of that permit is now. It would be enforcement, at this point, if, you know, a permit was granted or not granted. The application comes before this Commission and so to the extent that there’s no application, it wouldn’t come before this Commission.

Mr. Vanderbilt: My question is if it’s determined that he has a commercial operation and he has no permit, if he wants to continue that commercial operation, he would have to come to this Planning Commission for a permit. Would that be a --

Mr. Boteilho: Yes. Yes, either under a special permit or change of zoning.

Mr. Vanderbilt: Thank you.

3. Status of the Molokai Planner

Mr. Ribao: Okay, last thing for you, Wayne. What’s the status on the planner, the Molokai planner?

Mr. Boteilho: Molokai planner. We -- we have been in touch with Department of Personnel Services and we have interviewed the people on the list that we had. I do not believe we’re going to be hiring anybody from that list and so we’re going to be sending that list back and we are going to request a new list. Now, this is the old list with the one with two people. The new list, we expect possibly three or more, but we haven’t gotten that list yet. Typically, once we ask for a new list, it takes about two weeks.

Mr. Ribao: Okay, go ahead. Molokai Planning Commission Minutes - 05/24/06 Page 78

Mr. Vanderbilt: Yeah, at the last meeting or the meeting before that, it looked like it would be June and you were still talking about changing the list. Are you still looking at the June timetable for hiring somebody?

Mr. Boteilho: Yeah, that’s what I’m saying is that, since the last meeting, we’ve come a little forward but they’ve been working on it and so we are -- we are requesting that second list and once we get that second list, let’s say in two weeks, then we could hire, or we could interview and hire within a week.

Mr. Vanderbilt: So these people haven’t -- you’re not going to hire them because they’re not qualified or they just don’t seem --

Mr. Boteilho: I did not conduct the interviews but usually, yeah, we would not hire them because for whatever reason that, well, one, you’re not qualified or, two, you just wouldn’t fit into the work environment, or whatever reason that a person hiring would make.

Mr. Vanderbilt: Well, I just wanna mention something to everybody because Wayne sort of said this might be his last meeting and I know everybody on the street knows, but I don’t know if everybody here knows, but he’s being replaced as the Deputy Planning Director, and moving up with the Mayor, and our new Planning Director will be a guy, apparently, the word on the street is Don Couch and here we are looking for qualifications for our planner, my question is does Mr. Couch have a background in planning to be the Deputy Planning Director?

Mr. Boteilho: I’ll refer that to either the Mayor or the Planning Director.

Mr. Vanderbilt: Oh, okay. I’m sorry. I didn’t want to put you on the spot but I’m going to buy you a beer tonight.

Mr. Boteilho: Thank you.

Mr. Vanderbilt: Maybe I’ll buy you two beers tonight because you’ve been a -- you’ve been a good friend to us and tried your best and -- and we’re gonna miss -- at least I’m gonna miss ya.

Mr. Ribao: Okay, Wayne, under Director’s Report, you want to talk about anything else on that?

4. Pending Molokai Applications 5. Closed Molokai Applications 6. Public hearing scheduled for the June 14 meeting - Council Resolution 06-30, Residential Workforce Affordable Housing Policy. 7. Public hearing scheduled for the June 28 meeting - Council Resolution 06-32, Transient Vacation Rentals Molokai Planning Commission Minutes - 05/24/06 Page 79

Mr. Boteilho: No, I guess the applications are there.

Mr. Ribao: Okay.

Mr. Boteilho: I hope you have decoded it by now. If not, as was said, I won’t be here anyway, and the public hearings are as noted, June 14 and 28. If we could move into Announcements, Mr. Chair.

Mr. Ribao: Go ahead.

I. ANNOUNCEMENTS

Mr. Boteilho: Yeah, I’d like to confirm that I have been offered by the Mayor to be an Executive Assistant within his office. I have accepted. My last day as Deputy Planning Director will be May 31. Don Couch, an Executive Assistant in the Mayor’s office will replace me as Deputy Director on June 1, and so I must bid you goodbye, it’s been a pleasure, and thank you for all the good times. Aloha.

Mr. Ribao: Thank you. Let’s give him a big hand. And since they’re staying over tonight, where will you folks be?

Mr. Boteilho: We’ll probably be at Hotel Molokai maybe about 6:30 or so, 7:00.

Mr. Ribao: Okay, just for your information. The next meeting date is June 14 and meeting adjourned. Thank you. Thank you, commissioners, for bearing this long day. Thank you. We got a lot done today.

J. NEXT REGULAR MEETING DATE: June 14, 2006

K. ADJOURNMENT

There being no further business brought before the Commission, the meeting was adjourned at 5:00 p.m.

Respectfully submitted by,

SUZETTE L. ESMERALDA Secretary to Boards and Commissions I Molokai Planning Commission Minutes - 05/24/06 Page 80

RECORD OF ATTENDANCE

Present Robert Ribao, Chairperson DeGray Vanderbilt, Vice-Chairperson Janice Kalanihuia Kip Dunbar Sherman Napoleon, Jr. Lynn DeCoite Bill Feeter Steven Chaikin

Excused Joseph Kalipi

Others Wayne Boteilho, Deputy Planning Director Paul Fasi, Planner Jeffrey Dack, Planner Jesse Souki, Deputy Corporation Counsel Ralph Nagamine, Administrator, Development Services Administration, DPWEM