Kauai County Council Meeting - March 25, 2026

The Kauai County Council met on March 25, 2026, beginning at 8:30 AM in the council chambers at 396 Rice Street in Lihue. The meeting included a public hearing on Bill 2985 (Housing Development Fund expansion), an interview with planning commission nominee Kuule Aloha Santos, a briefing on the Wailua wastewater treatment plant relocation, and action on multiple bills and resolutions. Councilmember Holland arrived late due to traffic.

Public Hearing

• Bill 2985: Ordinance amending Chapter 6 (Housing Development Fund) to expand uses to include preservation of existing housing and remove interim financing language for large-scale subdivisions. No oral testimony was offered; two pieces of written testimony were received. The hearing was closed.

Consent Calendar

• Minutes of the February 18, 2026 council meeting were approved unanimously.
• Communications received included the FY 2026-2027 budget message from the mayor (C2026-66, C2026-67) and authorization to retain special bond counsel for the housing agency (C2026-68), which was approved.
• The following items were received: property assessment list (C2026-63), communication from the chair transmitting a rural property tax bill (C2026-71), two claims against the county (C2026-75), and committee reports (CRPL 2026-01, CRFED 2026-04).

Planning Commission Nomination Interview

• Nominee: Kuule Aloha Santos, nominated for the environmental seat for a term ending December 31, 2028.
• Background presented by Boards and Commissions Administrator Ellen Ching: Born and raised in Hanapepe, vice president and owner of Unlimited Construction Services (30 years), LEED-certified professional. Deeply involved in cultural practices including the Hanapepe salt ponds (Pa'akai), where her family has worked for generations, and formed the nonprofit Hui Ulu Ha'aloa dedicated to restoring native Hawaiian plant practices.
• Public Testimony: 41 supportive testimonies were received, 4 opposed, and 2 other. Remote testimony from Elizabeth Okinaka raised concerns about the appointment process and conflict of interest, arguing that a vice president of a construction company should not hold the environmental seat. In-person testimony from Brice Pavel and Kumo Hina expressed strong support, citing Santos' cultural commitment and community service.
• Councilmember Discussion: Multiple councilmembers expressed strong support, citing Santos' cultural knowledge, community involvement, integrity, and ability to make difficult decisions. Councilmembers noted her unique combination of business experience and cultural grounding. Councilmember Kuali'i read names of supporters including cultural leaders. Concerns about conflict of interest were acknowledged, but councilmembers stated they evaluate her as an environmental nominee, not as a construction executive.
• Vote: Deferred to the next council meeting.

Wailua Wastewater Treatment Plant Relocation Update

• Context: The existing Wailua plant is in a tsunami inundation zone, deteriorated, restricted to 1.0 MGD capacity (permitted for 1.5 MGD), and facing new stricter National Pollutant Discharge Elimination System effluent standards effective May 2026.
• DHHL Partnership: Department of Hawaiian Homelands Chairman Kylie Watson and Raymond Connor presented an alternative: a modular "package plant" (membrane bioreactor/MBR technology) on 5 acres of DHHL land, costing $25-30 million per million gallons per day (MGD) of treatment capacity, with an estimated 5-year timeline. DHHL proposes including PFOS removal to allow reuse of treated water on agricultural lands.
• County Position: County Engineer Troy Taniguchi confirmed the administration supports relocating the plant and has completed a siting study identifying DHHL property as the recommended site. A draft memorandum of agreement has been exchanged. Public works is pursuing a dual track: improving the existing plant while pursuing relocation.
• Timeline and Cost Disparity: DHHL's consultant Kyle Yukumoto estimated 5 years for a package plant; the county's 15-year timeline for a conventional plant includes completed tasks and contingency. Councilmembers expressed frustration that alternative options were known to the administration for years without action.
• Public Testimony: Testifiers including Hugh Strong and Lonnie Sykos supported the package plant technology and DHHL partnership, citing successful MBR installations at Schofield Barracks and Waiawa. Charles Wilson cautioned about environmental impact statement requirements and potential cost escalation.

Discussion Items

• Resolution 2026-10 - Wailua Wastewater Treatment Improvements Phase 2: Increased the loan amount from the State Water Pollution Control Revolving Fund from $14 million to $25.5 million. The construction contract is $17 million; additional funds cover construction management, technical support, and contingency. Bids expire April 3, 2026; the next lowest bidder is $3.9 million higher.
• Shoreline Setback Bill (Bill 2984): Amended Chapter 8, Article 27 regarding shoreline setbacks and coastal protection. County Attorney Tyler Seitz confirmed the exemption in Section 827.3 allows the Planning Director to grant exceptions if an applicant demonstrates no impact on beach processes, erosion, or coastal hazards, also exempting properties from the 500-square-foot dwelling size limit. Passed 7-0.
• Tax Credit Bill (Bill 2991): Allows owner-occupants who purchase property mid-assessment year to apply for a tax credit for the difference in tax rates. A housekeeping amendment passed unanimously. Passed 6-0 (Councilmember Holland excused).
• Real Property Tax Amendments (Bill 2981): Provides the Director of Finance with inspection and examination powers. Councilmember Cowden proposed an amendment requiring 7 calendar days' notice before property inspections and quarterly reporting to council on settlements, compromises, and outstanding penalties and interest. The amendment failed 1-5 (Councilmember Cowden for; Councilmembers Cavallio, Holland, Kanashiro, Kuali'i, and Chair Opposal against). The main bill passed 6-1.
• Grove Farm Land Acquisition (C2026-70): Approved indemnification provisions for purchase of approximately 140 acres north of Pulemalu Road, Lihue, for housing development. Housing Director Adam Roversi confirmed the project could serve up to 180% area median income. Estimated purchase price approximately $4.5 million.
• Kalola Court Transitional Housing (C2026-73): Approved right of entry for KIUC to install electrical infrastructure for Phase 2, adding 24 units (12 studios, 12 one-bedroom) for unhoused residents. Projected completion: mid-May 2026.
• Budget and Tax Rate Bills: Resolution 2026-11 (real property tax rates), Bill 2988 (operating budget), Bill 2989 (capital improvements budget), and Bill 2990 (firefighters hazard pay) all approved on first reading and scheduled for public hearings.

Key Outcomes

• Bill 2984 (Shoreline Setback): Passed 7-0.
• Resolution 2026-10 (Wailua Wastewater Funding): Passed 5-2. Councilmembers Bolo San, Cavallio, Cowden, Holland, and Kanashiro voted aye; Councilmember Kuali'i and Chair Opposal voted no. Chair Opposal requested quarterly relocation progress updates beginning June 10, 2026.
• Bill 2991 (Tax Credit): Passed 6-0 with amendment (Councilmember Holland excused).
• Bill 2981 (Real Property Tax Amendments): Amendment failed 1-5; main bill passed 6-1.
• Planning Commission Nomination: Vote deferred to the next council meeting.
• Executive Session (ES-1161): Completed regarding retention of special counsel for potential litigation. No disclosures were made; session approved unanimously.