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Record of Proceedings

Policy Committee on Environmental and Natural Resource Management – September 15, 2026

County Council & Committees — Tuesday, September 15, 2026
BodyHawaii County, Hawaii
SessionCounty Council & Committees
DateTuesday, September 15, 2026
StatusFILED
Video Record
0:00 / 1:57:01

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it
0:00

15th time is 127 p.m.

0:04

Uh we are here in the Hilo chambers and joined by one of our council members in Kona chamber.

0:10

Chair, sorry, point of information.

0:11

We're getting started.

0:12

If everyone can quiet down, thank you.

0:17

Thank you.

0:18

Um we are beginning the ninth session of the policy committee on environmental management and natural resource management here today in Hilo Chambers.

0:29

We have Councilmember Kirkowitz, Councilmember O'Neshi, Councilmember Inaba, Councilmember Kimball.

0:40

And shortly to join us again will be Councilmember Kagiwata and Councilmember Conley E.

0:49

Kleinfelder as well as Councilmember Galimba joining us from our Kona Chambers, Councilmember Houstis.

0:55

I myself am Rebecca Viegas, and I am chair of this committee today.

1:01

With that, we call this meeting to order, and I will hand it over to our clerk to read in the first item of business.

1:11

So check with Mr.

1:12

Aracelli.

1:13

I believe we do have some testimony for this.

1:15

Oh, my apologies.

1:16

Yes, testimony.

1:17

Thank you so much, madam chair.

1:19

Uh knowing that we do have one testifier here in the Hilo chamber, we do have a couple via Zoom.

1:24

What we'll do is we'll start with our testifier in Hilo and then transition to our Zoom testifiers.

1:30

With that, Del Otsuka is our first testifier on Bill 183 to be followed by Keikoa McClellan.

1:38

Dell, when you're ready to begin, please introduce yourself and you'll have three minutes.

1:51

Good afternoon.

1:52

Um good to see you again.

1:54

My name is Del Otsuka, and I'm here this afternoon to oppose Bill 183, which is fundamentally flawed because it functions as an archaic flat rate tax mechanism masquerading as infrastructure utility management.

2:09

It reverses the economic polluter pays principle.

2:13

Standard municipal infrastructure policies are built on volumetric metering, where entitled where entities that create the most physical waste pay the highest share.

2:22

Bill 183 detaches cost from volume entirely.

2:27

It treats a high volume resource-heavy commercial mega laundry facility identically to a low flow water restricted eco room.

2:36

It penalizes capital efficiency.

2:38

When local businesses invest capital into green infrastructures, such as low-flow gray water filtration, high efficiency plumbing, and strict water conservation systems, as demanded by Bill 66.

2:51

They reduce the physical strain on the county system.

2:54

Bill 183 locks in a static unielding penalty per unit, meaning the returns on investment for eco upgrades drops to zero.

3:03

So much for zero waste mission statement.

3:06

Bill 66 legally mandated the Hawaii County must design business tool kits, offer infrastructure priority, and create economic incentives for businesses practicing regenerate regenerative tourism and strict water conservation.

3:21

Our own SCP hotel is the living blueprint of what your general plan demands.

3:27

And way before this mandate was made.

3:30

Following natural disasters, they committed 100% of the restoration funding to local big island contractors, suppliers, and artisans.

3:37

They have multi-decade employees.

3:39

Why?

3:40

Because they invest, they look at them as long-term stakeholders, because they are.

3:44

So I asked the county many times to please hire.

3:48

SCP Hotel was recognized as the first property in the entire state of Hawaii to achieve silver benchmark status from Earth Check and top-tier curator elite certification from the Hawaii Tourism Authority.

4:01

We should be very proud.

4:22

30 seconds, please.

4:27

Council members were hesitant to vote yes, vote no today.

4:31

And because I don't have much time, uh I wish you read my written testimony too.

4:36

Because those who voted yes.

4:40

I mean, hey, don't this is sloppy bill.

4:43

It's not ready for your final vote.

4:46

So I'm just saying what you're doing to the people that you represent.

4:51

You're squeezing the local families from both sides.

4:54

Justifying tripling utility rates on debut 183 while simultaneously choking out the supplemental short-term rental income.

5:01

I'm sorry, but the three minutes are 147.

5:05

Thank you.

5:06

Chair, your next testifier is via Zoom, K.

5:08

Cole McClellan to be followed by Jerry Gibson.

5:10

Kole, whenever you're ready to begin, please introduce yourself and you'll have three minutes.

5:14

Thank you very much.

5:15

Aloha Awinala, a committee chair Viegas, Council Chair, and honorable members of the Hawaii County Council, K.

Discussion Breakdown — Share of Meeting
Wastewater Management█████████████████████████████████████████████54%
Public Works█████████11%
Budget Equity Analysis██████7%
Taxation Policy█████6%
Public Engagement███4%
Procedural███3%
Environmental Protection███3%
Legal Counsel███3%
Fiscal Sustainability███3%
Summary of Proceedings

Policy Committee on Environmental and Natural Resource Management – September 15, 2026

The Policy Committee on Environmental and Natural Resource Management met on September 15, 2026, to consider two bills: Bill 191, which amends erosion and sedimentation control enforcement, and Bill 183, which proposes increases to wastewater service rates and creates a new hotel rate class. Bill 191 was passed with an amendment and recommended to the full council. Bill 183 was postponed to the October 6, 2026 hearing following extensive public testimony and council discussion.

Public Comments & Testimony

  • Del Otsuka opposed Bill 183, calling it an "archaic flat rate tax" that reverses the polluter-pays principle, penalizes businesses that invest in green infrastructure, and squeezes local families by tripling utility rates while choking short-term rental income.
  • K. Cole McClellan (Outrigger Hospitality Group) opposed the creation of a separate hotel rate class, arguing it violates state law (HRS 237D-1 and Act 17) which defines all transient accommodations uniformly. He urged the committee to remove the isolated hotel classification and place hotels within the uniform non-residential schedule.
  • Jerry Gibson (Hawaii Hotel Alliance) stated support for necessary rate increases but requested hotels be treated under the non-residential class. He argued the proposed separate hotel rate, with increases approaching 300%, is infeasible and threatens local jobs, workforce benefits, and small properties.

Discussion Items

  • Bill 191 (Erosion and Sedimentation Control): Councilmember Inaba introduced the bill to establish administrative enforcement for Chapter 10 violations, including fines up to $1,000 per day without requiring a criminal conviction. The amendment (Comm. 1058.1) removed the option of service by newspaper publication, relying on hand delivery or certified mail to satisfy due process. Councilmember Galimba raised concerns about Good Samaritan grading after natural disasters; Deputy Corporation Counsel and DPW staff noted that property owners can call the Engineering Division (808-961-8327) for guidance. The definition of grading (over 100 cubic yards, cut/fill over 5 feet, or altered drainage) and grubbing (over 1 acre) was clarified. The bill aims to provide realistic enforcement tools where previous criminal referrals were never pursued.
  • Bill 183 (Sewer Service Charges): Director Dan Gervin (DEM) and Regulatory Administrator Kelly Hartman presented the rate increase as a legal mandate under the Administrative Order on Consent (AOC) to become self-sustaining by 2031. Supplemental materials included a rate study, rate model, and legal framework. Key discussion points:
    • Rate increase magnitude: Director Gervin disputed the 300% figure, stating that fixed monthly charges for hotels rise from $96 to $1899 (approx. 100%) and per-thousand gallon rates from $10.85 to $21.40 (also approx. 100%), similar to residential and non-residential increases.
    • Legality of hotel class: Corporation Counsel and consultant Art Griffith (FG) confirmed that Maui and Kauai have similar hotel classes; Oahu does not but the practice is legally defensible under cost-of-service principles.
    • Small hotel impacts: Councilmember Kagiwada requested analysis of impacts on small hotels like SCP Hilo and possible relief mechanisms for low-income households and nonprofits. Director Gervin noted that smaller hotels would have lower discharge and thus lower usage charges.
    • Budget projections: Councilmember Caneali-Kleinfelder questioned inflated projections (e.g., OCE repairs from $18,900 in FY2425 to $92,000 in FY2627) and the absence of debt service in the rate study. Consultant Art Griffith attributed the jump to catch-up spending after years of underfunding; debt service was excluded because it relates to capital investment, not operations.
    • Connection compliance: Hartman announced a connection compliance plan due in December 2026 to enforce sewer connections and broaden the rate base, potentially moving short-term vacation rentals into non-residential rates.
    • Infiltration and energy savings: Director Gervin described ongoing efforts to identify and repair leaks in the collection system, which can reduce energy costs (electricity approaching $3.5M/year). Two crews are scoping lines and using GIS for scheduling.
    • Calculator request: Councilmember Inaba requested a simple rate calculator to allow council members to model changes; a meeting with DEM was scheduled within the week.

Key Outcomes

  • Bill 191: Amended by Communication 1058.1 (approved unanimously, 9 ayes). The committee voted unanimously (9 ayes) to recommend passage to the full council.
  • Bill 183: Motion to postpone to the October 6, 2026 committee hearing passed unanimously (9 ayes). Councilmember Inaba requested a meeting with DEM by Thursday or Friday to develop a rate calculator and review materials, noting that the 200+ pages of supplemental reports were provided only the day before the meeting.
  • Council also noted that DEM will present a connection compliance plan in December 2026 to enforce sewer connections and potentially reclassify short-term vacation rentals to commercial rates.

Meeting Transcript

15th time is 127 p.m. Uh we are here in the Hilo chambers and joined by one of our council members in Kona chamber. Chair, sorry, point of information. We're getting started. If everyone can quiet down, thank you. Thank you. Um we are beginning the ninth session of the policy committee on environmental management and natural resource management here today in Hilo Chambers. We have Councilmember Kirkowitz, Councilmember O'Neshi, Councilmember Inaba, Councilmember Kimball. And shortly to join us again will be Councilmember Kagiwata and Councilmember Conley E. Kleinfelder as well as Councilmember Galimba joining us from our Kona Chambers, Councilmember Houstis. I myself am Rebecca Viegas, and I am chair of this committee today. With that, we call this meeting to order, and I will hand it over to our clerk to read in the first item of business. So check with Mr. Aracelli. I believe we do have some testimony for this. Oh, my apologies. Yes, testimony. Thank you so much, madam chair. Uh knowing that we do have one testifier here in the Hilo chamber, we do have a couple via Zoom. What we'll do is we'll start with our testifier in Hilo and then transition to our Zoom testifiers. With that, Del Otsuka is our first testifier on Bill 183 to be followed by Keikoa McClellan. Dell, when you're ready to begin, please introduce yourself and you'll have three minutes. Good afternoon. Um good to see you again. My name is Del Otsuka, and I'm here this afternoon to oppose Bill 183, which is fundamentally flawed because it functions as an archaic flat rate tax mechanism masquerading as infrastructure utility management. It reverses the economic polluter pays principle. Standard municipal infrastructure policies are built on volumetric metering, where entitled where entities that create the most physical waste pay the highest share. Bill 183 detaches cost from volume entirely. It treats a high volume resource-heavy commercial mega laundry facility identically to a low flow water restricted eco room. It penalizes capital efficiency. When local businesses invest capital into green infrastructures, such as low-flow gray water filtration, high efficiency plumbing, and strict water conservation systems, as demanded by Bill 66. They reduce the physical strain on the county system. Bill 183 locks in a static unielding penalty per unit, meaning the returns on investment for eco upgrades drops to zero. So much for zero waste mission statement. Bill 66 legally mandated the Hawaii County must design business tool kits, offer infrastructure priority, and create economic incentives for businesses practicing regenerate regenerative tourism and strict water conservation. Our own SCP hotel is the living blueprint of what your general plan demands. And way before this mandate was made. Following natural disasters, they committed 100% of the restoration funding to local big island contractors, suppliers, and artisans. They have multi-decade employees. Why? Because they invest, they look at them as long-term stakeholders, because they are. So I asked the county many times to please hire. SCP Hotel was recognized as the first property in the entire state of Hawaii to achieve silver benchmark status from Earth Check and top-tier curator elite certification from the Hawaii Tourism Authority. We should be very proud. 30 seconds, please. Council members were hesitant to vote yes, vote no today. And because I don't have much time, uh I wish you read my written testimony too. Because those who voted yes. I mean, hey, don't this is sloppy bill. It's not ready for your final vote.

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