At the July 15 meeting of the Commission on Water Resource Management, director Ciara Kahahane provided a description of the funds available to support development of an Adaptive Management Plan for the Keauhou Aquifer Sector Area. <\/p>\n\n\n\n
There was an unspecified amount of federal funding, which, she said, had to be spent down by the end of August.<\/p>\n\n\n\n
In addition, the 2025 Legislature passed two measures providing additional support. Senate Bill 1602 (Act 189), signed into law by Governor Green on June 6, provides $200,000 over the 2025-2026 and 2026-2027 fiscal years for a project that sounds very much like the \u201cFirst Generation\u201d AMP proposed by CWRM staff. House Bill 300 (Act 250), the state budget bill, provides $4 million in the 2025-2026 fiscal year for \u201cplans, land acquisition, and construction\u201d of two deep monitor wells in the Keauhou Aquifer System. These wells are also part of CWRM\u2019s plans to fill in a few of the blanks in plans for management of the Keauhou aquifer sector.<\/p>\n\n\n\n
The contracts that will need to be issued to spend the recently appropriated funds are months off.<\/p>\n\n\n\n
But the (mostly) federally funded agreement that was issued to GUILD Consulting and Peter Adler to develop the Adaptive Management Plan is a done deal.<\/p>\n\n\n\n
And details of the financing do little to quell suspicions that the AMP is intended to facilitate housing \u2013 suspicions that may have been fueled by the fact that much of the testimony in favor of SB 1602 came from business groups whose representatives stressed the need to develop housing in the Kona area. <\/p>\n\n\n\n
For example, the Chamber of Commerce of Hawai\u02bbi urged the Legislature to pass the measure, stating: \u201cTo expand affordable housing and address Hawai\u02bbi\u2019s housing crisis, the state is launching a multi-year pilot program to improve access to reliable water in the Keauhou Aquifer System.\u201d<\/p>\n\n\n\n
No Contract<\/strong><\/p>\n\n\n\n The agreement between CWRM and GUILD is not a contract. Instead, CWRM issued a purchase order for the work, with GUILD as the vendor. Kahahane signed the agreement on May 20, authorizing $148,240 in federal funds and $2,940 in general funds to be paid out for \u201cfacilitation services to organize, run, and produce report(s)and a draft adaptive management plan for groundwater resources in the Keauhou Aquifer System Area.\u201d Documents provided to Environment Hawai\u02bbi<\/em> do not include any record signed by a representative of GUILD agreeing to the terms of the purchase order \u2013 but, according to an unnamed CWRM staffer, \u201cBy performing and submitting invoices under the [purchase order], GUILD Consulting is deemed to have accepted the terms outlined in the scope of work.\u201d<\/p>\n\n\n\n The starting date of the services was June 1, according to a statement by Adler at the July 15 meeting.<\/p>\n\n\n\n The proposed scope of work, which appears to have been prepared by GUILD, describes a timetable, four phases, and five milestones for fees totaling $151,180.<\/p>\n\n\n\n Notes attached to the proposal recommend \u201cCWRM have further funds available for additional tasks that CWRM may arise [sic] or want completed. \u2026 GUILD originally estimated the whole project to be around $200,000, inclusive of contingency and honoraria, travel expenses, etc.\u201d <\/p>\n\n\n\n Well before any agreement was signed, it was clear that CWRM was anticipating awarding the work to GUILD.<\/p>\n\n\n\n At the April 1 CWRM meeting, as Kahahane described the outline of the project to commissioners, she introduced Adler as a consultant to help facilitate the work of the working groups and advisors contributing to the development of the AMP. At that meeting, Adler told the commission that he wasn\u2019t officially on board yet, \u201cconstrained by budget and time frame.\u201d But, he added, he and his assistant, Stephanie Sang, were \u201cgoing to work pretty fast and pretty hard to get it all done.\u201d<\/p>\n\n\n\n Fast indeed. By June 10, just 10 days following the official start of work according to Adler, GUILD submitted its first invoice, seeking payment of $20,000 for completing \u201cPhase I, Project Planning and Preparation.\u201d Kahahane approved payment on June 17.<\/p>\n\n\n\n An Emergency Exemption<\/strong><\/p>\n\n\n\n As a general rule, state procurement laws require agencies to bid out contract work. There are, however, several exceptions for sole-source purchases, two of which were invoked in awarding this work to GUILD.<\/p>\n\n\n\n The first exemption claimed on the purchase order form signed by Kahahane allows for \u201cservices of lecturers, speakers, trainers, facilitators, and scriptwriters, when the provider possess [sic] specialized training methods, techniques, or expertise in the subject matter.\u201d This is provided for in Hawai\u02bbi Administrative Rules 3-120-4, Appendix A, exception No. 3.<\/p>\n\n\n\n The second exemption invoked is \u201cGovernor Josh Green, M.D.\u2019s Eleventh Proclamation Relating to Affordable Housing.\u201d That emergency proclamation expired on April 5, nearly two months before the GUILD agreement was reported to have been signed.<\/p>\n\n\n\n Since April 5, the governor has signed two more emergency proclamations relating to housing, so it may be argued that even though the eleventh proclamation expired, there\u2019s still legal cover for CWRM referring to the proclamation, which has not changed in the two more recent versions. But the fact that the records relating to this agreement refer to the eleventh proclamation suggests that well before it expired, CWRM was anticipating the award of funds to GUILD.<\/p>\n\n\n\n Records reviewed by Environment Hawai\u02bbi<\/em> suggest that months before the May 20 purchase order was signed, CWRM was working out the intricacies of financing this project.<\/p>\n\n\n\n In an email exchange of May 15 between Kahahane and CWRM staffer Kathy Yoda, Kahahane asks for \u201cmore PO-related assistance. I\u2019m sure you recall this one \u2013 we wanted to use federal funds and had to create a special fund account, cancel the old PO and cut a new one.\u201d Kahahane listed three items that needed to be changed on the \u201cnew PO:\u201d the amount of the contract, the period of performance, a new breakdown of the distribution of funds.<\/p>\n\n\n\n In response to a question about the earlier purchase order, CWRM stated: \u201cAn initial purchase order was issued but subsequently cancelled to allow for the establishment of a special funding account for the federal funds.\u201d<\/p>\n\n\n\n In the May 15 email, Kahahane says: \u201cLast, I know Fiscal wanted a justification for using the Housing EP [emergency proclamation] to cut this PO.\u201d This was followed by a two-paragraph narrative that describes circumstances and conditions that justify the housing exemption.<\/p>\n\n\n\n Among other things, Kahahane states: \u201cThe project directly supports the construction of affordable housing by addressing the longstanding conflicts over groundwater resources that have impeded well development in the Keauhou aquifer. These efforts will improve water allocation decisions, promote the protection of traditional and customary rights, and enable housing development to proceed with greater clarity and community confidence.\u201d<\/p>\n\n\n\n The need for speed, combined with the need for housing, are factors that, she concluded, make it \u201cin the public\u2019s best interest to move forward without delay via this direct contracting mechanism.\u201d<\/p>\n\n\n\n As far as the selection of GUILD to do the work, Kahahane again referred to the time constraints. \u201c[I]t is not practicable or advantageous to procure the services required via traditional procurement methods under the current time constraints,\u201d she wrote. Funds had to be spent by September 30, she wrote \u2013 the deadline has since moved up a month \u2013 \u201cand traditional procurement would likely introduce delays that jeopardize both expenditure deadlines and project objectives.\u201d<\/p>\n\n\n\n The Scope of Work<\/strong><\/p>\n\n\n\n The purchase order calls for the state to pay GUILD a total of $151,180 for the services of Peter Adler to \u201cprovide facilitation services to organize, run, and produce report(s) and a draft adaptive management plan for groundwater resources in the Keauhou Aquifer System Area,\u201d with a period of performance starting June 1 and running through November 30, 2025.<\/p>\n\n\n\n By July 15, when the Water Commission was asked to approve this project, GUILD had already been paid $20,000 for having completed the first phase of its scope of work <\/p>\n\n\n\n A second deliverable was due July 18, for which GUILD was to receive another $20,000 payment. This payment was to be for \u201ccommunity engagement, scoping, and commission approval.\u201d Among other things, the work was to include holding \u201cat least one outreach meeting for community stakeholders to comment on the expert group members, project description, and preliminary outline of elements to be included in the AMP.\u201d<\/p>\n\n\n\n The third billable deliverable, due August 31, is to pay for \u201cexpert group meetings,\u201d for which GUILD would \u201ctake accurate notes from each expert group discussion and prepare a report.\u201d For this, GUILD is to be paid $37,060. The cost of travel expenses for GUILD employees or experts, plus honoraria (if any), is to be paid by CWRM and is not included in the GUILD contract.<\/p>\n\n\n\n The fourth payment is for the \u201cfirst draft AMP, briefings for CWRM and the Public.\u201d This phase includes \u201ctravel for Hawai\u02bbi island meetings with Native Hawaiian traditional & customary practitioners, Hawai\u02bbi [Department of Water Supply], Kaloko-Honokohau National Historical Park, and other stakeholders, as necessary.\u201d Also, GUILD is to \u201csubmit a reasonable set of literature references to be attached to the draft AMP. This is due by September 30, with GUILD to be paid $37,060.<\/p>\n\n\n\n The fifth deliverable, with a deadline of November 30, is a revised plan to be presented to the commission \u201cand others as may be needed,\u201d with \u201ca pre-publication draft\u201d given to CWRM, incorporating feedback from commissioners and the public. Again, payment is $37,060.<\/p>\n\n\n\n The funds themselves were to come from a Department of Defense grant to the state Department of Business, Economic Development, and Tourism, through the DOD\u2019s Office of Local Defense Community Cooperation. To facilitate the delivery of funds to the DLNR, the DLNR\u2019s deputy director Ryan Kanakaole signed a Memorandum of Understanding with Laurel McAllister-Moore, director of DBED\u2019s Military and Community Relations Office (MACRO) on April 21.<\/p>\n\n\n\n At the July meeting of CWRM, Kahahane stated that after August 31, CWRM might be able to get another tranche of federal funds, but at that time it was not certain. In late July, CWRM informed Environment Hawai\u02bbi <\/em> that \u201cWe have confirmed that another tranche of federal funding will be available and will seek to cover the remaining balance of the PO with GUILD Consulting after August 31, 2025.\u201d<\/p>\n\n\n\n State procurement procedures require contracts and purchase orders over a certain amount to be posted on the Department of Accounting and General Services\u2019 HANDS website (Hawai\u02bbi Awards and Notices Data System). When Environment Hawai\u02bbi <\/em>began to look into the details of this award, it did not appear on HANDS. Within a day or two of our inquiring with DAGS about possible exemptions to public posting of the award, it suddenly appeared on Friday, July 25.<\/p>\n\n\n\n \u201cThank you for bringing this to our attention,\u201d CWRM stated in an email to Environment Hawai\u02bbi. <\/em>The award has now been posted.\u201d<\/p>\n\n\n\n \u2014 Patricia Tummons<\/strong><\/p>\n\n\n\n CWRM Missing a Member; Staff Missing More than a Dozen<\/em><\/strong><\/p>\n\n\n\n Terms for two members of the Commission on Water Resource Management expired on June 30.<\/p>\n\n\n\n Aurora Kagawa-Viviani completed her first term on the commission. Governor Josh Green did not nominate her to serve a second term, although she did submit her name to the CWRM Nominating Committee as it interviewed potential new commissioners.<\/p>\n\n\n\n Paul Meyer completed his second term and was prevented by law from applying for a third.<\/p>\n\n\n\n In June, the CWRM Nominating Committee met once to interview candidates for the two open seats. The meeting, on June 9, was not properly noticed to the public. The second meeting, while publicly noticed, did not comply with the state\u2019s Sunshine Law, Chapter 92F HRS. As a result, both the scheduled June 27 and June 30 interviews were cancelled.<\/p>\n\n\n\n Kagawa-Viviani continues to serve on the commission as a holdover appointee. But the commission still lacks a fifth appointed member.<\/p>\n\n\n\n No announcement has been made as to any future meetings of the Nominating Committee. Until the committee meets, makes its selections, and forwards them to the governor, the Water Commission will continue to make its decisions absent one member.<\/p>\n\n\n\n It\u2019s not just the commission that\u2019s operating with less than a full complement of members. Staff also is limping along. Of the 33 authorized staff positions, as of September 30, 2024 (the last date for which figures are publicly available), just 19 were filled.<\/p>\n\n\n\n Environment Hawai\u02bbi <\/em>asked CWRM for a more recent staffing figure, but no response was received by press time.<\/p>\n","protected":false},"excerpt":{"rendered":" At the July 15 meeting of the Commission on Water Resource Management, director Ciara Kahahane provided a description of the funds available to support development of an Adaptive Management Plan for the Keauhou Aquifer Sector Area. 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