Department lays out projected costs, revenues and transition expenses for proposed system purchase

Deputy Landgraf presented a slide set with operating‑cost estimates and expected revenue streams for the two systems under county management. For the Lanapoko potable system, staff estimated annual operation and maintenance at $207,282; electricity $423,365; administrative costs $249,017; total operating cost $879,664 with expected annual revenue of $2,561,440 (based on May–June 2026 usage). For Olowalu, staff listed operating and maintenance $381,175; electricity $126,126; admin $164,254; total cost $671,554 and expected combined potable/nonpotable annual revenue of $734,363.

Staff also described post‑closing seller transitional services (six months at an estimated monthly fee of $46,500 for Lanapoko and $53,600 for Olowalu, exclusive of electricity) and a menu of near‑term capital improvements including fencing, reservoir relining and SCADA integration. Deputy Landgraf provided an estimate of about $904,000 in immediate post‑closing improvements and noted the County intends to hire five of 10 approved expansion positions if the acquisition proceeds. Committee members asked for comparison of existing private rates and County rates and whether anticipated higher tiers would depress usage and affect revenue projections; staff said those rate impacts would be examined in the PUC process.