{"id":823,"date":"2018-09-01T21:12:59","date_gmt":"2018-09-01T21:12:59","guid":{"rendered":"http:\/\/hawaiioceannews.com\/?p=823"},"modified":"2018-09-14T20:43:12","modified_gmt":"2018-09-14T20:43:12","slug":"dobor_smoke_screen","status":"publish","type":"post","link":"https:\/\/hawaiioceannews.com\/index.php\/2018\/09\/01\/dobor_smoke_screen\/","title":{"rendered":"We Asked Ed Underwood How DOBOR Came Up With Fee Increase Numbers"},"content":{"rendered":"<div id=\"pl-823\"  class=\"panel-layout\" ><div id=\"pg-823-0\"  class=\"panel-grid panel-has-style\" ><div style=\"padding: 0px 0; \" data-overlay=\"true\" data-overlay-color=\"#000000\" class=\"panel-row-style panel-row-style-for-823-0\" ><div id=\"pgc-823-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-823-0-0-0\" class=\"so-panel widget widget_sow-headline panel-first-child\" data-index=\"0\" ><div style=\"text-align: left;\" data-title-color=\"#443f3f\" data-headings-color=\"#443f3f\" class=\"panel-widget-style panel-widget-style-for-823-0-0-0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-headline so-widget-sow-headline-default-bbd476588d7f-823\"\n\t\t\t\n\t\t><div class=\"sow-headline-container \">\n\t\t\t\t\t\t\t<h3 class=\"sow-headline\">\n\t\t\t\t\t\tWe Asked Ed Underwood How DOBOR Came Up With Fee Increase Numbers\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"decoration\">\n\t\t\t\t\t\t<div class=\"decoration-inside\"><\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"sow-sub-headline\">\n\t\t\t\t\t\tHere's What He Said\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t<\/div>\n<\/div><\/div><\/div><div id=\"panel-823-0-0-1\" class=\"so-panel widget widget_black-studio-tinymce widget_black_studio_tinymce panel-last-child\" data-index=\"1\" ><div style=\"text-align: left;\" data-title-color=\"#443f3f\" data-headings-color=\"#443f3f\" class=\"panel-widget-style panel-widget-style-for-823-0-0-1\" ><div class=\"textwidget\"><p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">We're wondering, at this point, if Governor David Ige is actually aware of what is going on in his DLNR, headed by his Chair pick, Suzanne Case.<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">In an attempt to pass off slight-of-hand fiscal management\/accounting practices, Suzanne Case's DLNR and Ed Underwood's DOBOR would like the public to think that there actually was a substantive process for determining a proposed harbors rate increase package with some increases as much as 1000%.\u00a0 We reached out to Ed Underwood to learn more about the accounting and fiscal-management processes that he used to arrive at the necessity of a 1000% increase in harbor tenant electrical fees.\u00a0 Over the last several months, we have queried DOBOR's administrator, Ed Underwood, regarding this question, and here is a cross-sampling of our conversations (Mr. Underwood's answers were sometimes channeled through designated talking heads in the department):<\/span><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span>\u00a0 The reason why we're increasing electrical fees is because the electrical fees charged for non-metered slips have not risen since 1994, so we thought it was time for an increase.\u00a0 <\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 So why weren't there incremental changes to the fee between 1994 and 2018, a span of some 24 years?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span>\u00a0 No answer as of this writing.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 Do you have something more substantial to base a fee increase on?\u00a0 For example, what real\/historical data are you basing your 1000% increase proposal on?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span>\u00a0 A while back we looked at some electrical billing from some boats (unspecified) in the Ala Wai and elsewhere and came up with an average number.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 Which boats were those?\u00a0 Could you tell me more about size and number of people on board and type of boat?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span>\u00a0 We shredded all of that information so I can't give you an answer to that.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:\u00a0<\/span> What other rationale are you using to justify this increase.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:\u00a0<\/span> Well, we're losing money on electricity.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 How would you know that if tenant electrical usage is unmetered and you have no way of knowing actual cost per tenant; specifically, how would you know what HECO is actually charging you, per dock, per boat, for electricity?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span> Our electrical bills are not just for tenant usage but also for infrastructure use, like, for example, running all of the lighting on the docks and other infrastructure usage.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 Since tenants are not using infrastructure electricity for their own personal use, why are you charging them for this?\u00a0 Usually, infrastructure electrical cost comes out of general tenant rents and other revenues as part of the expense of operating a marina.\u00a0 The Ala Wai Small Boat Harbor made $2.5 million in profits last year.\u00a0 Wouldn't some of that money have been earmarked for infrastructure\u00a0electrical cost at the Ala Wai?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span> No answer as of this writing.\u00a0 <\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:\u00a0<\/span>\u00a0 We understand that DOBOR is trying to recover a \"hookup\" fee from floating dock tenants.\u00a0 How does that work?\u00a0 So each electrical plug at each boat on the floating docks in the harbor system is being charged by HECO for a $17 hookup fee per month, the same as individual homes on Oahu?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:\u00a0<\/span> No answer as of this writing.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 If the $17 \"hookup\" fee hypothesis is true, why weren't tenants charged for this since 1994?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span> No answer.\u00a0\u00a0 Look, we had statistician Paul Oshiro look at this whole thing and he concluded that electrical rates in general went up 100% since 1994.\u00a0 That's why we're proposing an increase.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 Why, then, did you feel you had to add the extra \"zero\" and make the increase 1000% rather than 100%?<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Ed Underwood:<\/span> No answer as of this writing.\u00a0 Look,\u00a0 for one utility bill at Ala Wai, the monthly amount was $12,845 and there were 320 slips on that one meter.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><span style=\"font-size: 18pt;\">Hawaii Ocean News:<\/span>\u00a0 We submitted a UIPA formal request for per dock metering\/cost and was told, in writing, that that information didn't exist.\u00a0 Now you're saying it does?\u00a0\u00a0 If it does, which dock are you referring to?\u00a0 Was this infrastructure plus tenant usage or just tenant usage?\u00a0 We suspect the former since you have no way of separating this information out, and, as we've said, infrastructure costs are typically paid for out of general harbor revenue.\u00a0 The Ala Wai Small Boat Harbor has $2.5 million dollars of this in profit each year, more than enough to cover electrical costs.<br \/>\n<\/span><\/em><\/p>\n<p><em><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Which brings us to another question:<\/strong>\u00a0 Why aren't the other 11 failing harbors in the state harbor system paying their way.\u00a0 There are only 3 harbors in the system that operate at a profit, the other 11 operate at a loss. Why not bring tenant fees up in those harbors to make them current?\u00a0 Why are you charging tenants in profitable harbors substantial slip fee increases while refusing to charge tenants in losing harbors enough to cover costs?<br \/>\n<\/span><\/em><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><em><span style=\"font-size: 18pt;\">Ed Underwood:<\/span> No answer as of this writing.<\/em> <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 18pt;\">Below find the detailed <em>excerpts<\/em> from DOBOR's official written explanation as to why they think there should be a 1000% increase in harbor electrical fees (our observation follows each of these points):<\/span><\/strong><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">1.<em><strong>\u00a0 DLNR\/DOBOR:\u00a0 \". . . The rate that DOBOR charges its harbor users is $5.75, $11.00, and $25.00 a month.\u00a0 These fees have not changed since 1994 and the amount that users pay does not cover the cost of all electricity used at DOBOR\u2019s facilities.\"<\/strong><\/em>\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:<\/strong>\u00a0 DLNR Infrastructure electrical usage is a separable consumable from tenant electrical usage.\u00a0 Historically, tenants have been told by the DLNR that their electrical fees cover individual vessel owner usage.\u00a0\u00a0 \"DOBOR's facilities\" implies infrastructure.\u00a0 It is usual and customary in all well-run facilities that infrastructure electrical usage is clearly separated from tenant usage.\u00a0 Infrastructure expenses are typically paid for by general revenues.\u00a0 At the Ala Wai Small Boat Harbor, for example, profits of $2.5 million suggested that your infrastructure electrical bill was paid in full.\u00a0 That you are not profiting from revenues collected in the State's eleven failing harbors, is a direct result of poor fiscal management:\u00a0 mooring rates at these harbors obviously need to be increased in order to pay general infrastructure and infrastructure electric bills so that these harbors operate in the black.\u00a0 That \"fees have not been increased since 1994\" is a poor excuse, in and of itself, for a 1000% increase in any fee.\u00a0 Good fiscal analysis involving detailed usage figures is the foundation of intelligent and accurate conclusions.\u00a0\u00a0 By your own admission, you have none of this detailed information to work with. <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">2.<em><strong>\u00a0 DLNR\/DOBOR: \" . . . For example, in fiscal year 2018, DOBOR received approximately $31,000 in electricity reimbursement from facility users at the Ala Wai Small Boat Harbor and DOBOR paid approximately $171,000 in electrical bills.\"\u00a0<\/strong><\/em> <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:<\/strong>\u00a0 Again, you have absolutely no way to separate out facility usage from non-metered tenant usage.\u00a0\u00a0 This statement implies that tenants are now, suddenly, required to pay for infrastructure expenses from fees that are being represented to the public as those needed to cover the cost of electrical usage by individual tenants. To be honest with you, this has every appearance of public fraud.<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">2. \u00a0<em><strong>DLNR\/DOBOR: <\/strong><\/em> <em><strong>\". . . For example, if a product was $100 in 1994 and the CPI increased 100% over 14 years, then the price of the product would be expected to be $200.00.\u00a0 The data indicated that the CPI had increased over 100% since 1994.\u00a0 The price per kilowatt hour increased 60% from 2006.\"<\/strong><\/em>\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:<\/strong> Your nebulous conclusions based on\u00a0 Paul Oshiro's work in non-harbor-environment related areas does little to bolster your argument that tenant electrical rates should increase by some 1000%. \u00a0 Most of our staff here has had at least one semester of Statistics at a major university and understand, at least, that all good statistical projections have a historical basis in fact. \u00a0 With absolutely nothing in the way of substantive, detailed, background information, and obviously little understanding as to how consumers in a harbor environment actually use electricity, DOBOR forges ahead anyway with unsubstantiated projections resulting in ridiculous 1000% increase proposals -- this, despite the fact that Mr. Oshiro seems to suggest 100%. \u00a0\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">3.\u00a0\u00a0\u00a0\u00a0\u00a0<em><strong>DLNR\/DOBOR: <\/strong><\/em>\u00a0<em><strong> \" <\/strong><\/em><em><strong>. . . To approximate a minimum increase in the rates that DOBOR charges, DOBOR increased the current rate of $5.75, to $11.50 (a 100% CPI increase) and added HECO\u2019s minimum fee of $17.00 per month to come up with $28.00 per month.\"<\/strong><\/em>\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:\u00a0<\/strong> Anyone who owns a home knows this, but I'll walk you through anyway:\u00a0 the $17.00\/month hook-up fee is whole-facility based and\/or per-meter based.\u00a0 At my home, we pay $17.00\/month on top of our monthly usage fee.\u00a0\u00a0 To suggest that HECO has been charging the unmetered tenants on the floating docks at the Ala Wai, for example, $17.00\/month hook-up fees, in addition to usage,\u00a0 would suggest that DOBOR billing for this would have long-ago been triggered, as this would have been a clear-cut, definable expense.\u00a0 Hook-up fees have <em><strong>never<\/strong><\/em> appeared on any nonmetered tenant's electrical billing, ever in the history of State of Hawaii harbors.\u00a0 If this was a legitimate expense from the outset, then, long ago, any responsible accounting system would have required DOBOR to charge for this expense to cover an obvious, clear-cut debit. \u00a0 As I've said, this charge has never appeared in any billing Statewide.\u00a0 Why? Because HECO does not charge $17.00\/month hook-up fees for each individual non-monitored slip.\u00a0\u00a0\u00a0\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">4.\u00a0\u00a0\u00a0\u00a0\u00a0<em><strong>DLNR\/DOBOR: <\/strong><\/em>\u00a0 <em><strong>\" <\/strong><\/em><em><strong>. . . DOBOR staff used the electrical bills for the harbors of Haleiwa, Nawiliwili, Ala Wai, and Keehi, and developed an average cost per slip.\"<\/strong><\/em>\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:\u00a0<\/strong> By what magic?\u00a0 There is no documentation that accurately tracks tenant usage vs. infrastructure usage.\u00a0 By your own admission, the only \"electrical bill\" that you could have seen was a generalized facilities-wide billing that gave no hint as to actual tenant consumption. <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">4.\u00a0 <em><strong>DLNR\/DOBOR: <\/strong><\/em>\u00a0\u00a0<em><strong>\" . . . For example, for one utility bill at Ala Wai, the monthly amount was $12,845 and there were 320 slips on that meter.\"<\/strong><\/em> \u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:\u00a0<\/strong> The response that we received from our UIPA request was that this very same information was <em><strong>not<\/strong><\/em> available to DOBOR or the DLNR. Our request for the numbers relating to the clearly-marked electrical metering of B, C, and D docks was answered with a \"we don't have this information . . . \" So now you're saying that you do, in fact, have this information?\u00a0 Are you lying to the public regarding UIPA records requests?<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">4.\u00a0\u00a0<em><strong>DLNR\/DOBOR: <\/strong><\/em>\u00a0\u00a0<em><strong> \". . .\u00a0 <\/strong><\/em><em><strong>Ala Wai\u2019s range, using three months of bills, was $24-$60 and does not include street and harbor lights. . . .\"<\/strong><\/em>\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:<\/strong>\u00a0 Interesting in that this implies that you can, in fact, separate tenant electrical usage from infrastructure usage in the non-metered slips of public harbors? You've told us repeatedly in the past that you didn't have this capability. \u00a0 If you do, in fact, have this capability, why not just charge based on per tenant usage?\u00a0 Which vessels were being monitored?\u00a0 Large sportfishing powerboats, Cal 20 sailboats, forty-five foot trawlers with families of four, twenty-one foot Aquasports . . . ?\u00a0 And, $24-$60, as ethereal as these numbers may be, is not $50-$125 as per your proposal in 13-234.<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">\u00a05.\u00a0 <em><strong>DLNR\/DOBOR:\u00a0 <\/strong><\/em><em><strong>\". . .\u00a0 <\/strong><\/em><em><strong>DOBOR estimated an overhead cost of approximately $20.00 per users. . .\u00a0 .\"<\/strong><\/em> \u00a0\u00a0\u00a0\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:\u00a0<\/strong> Based on what?\u00a0 As noted above, general \"overhead costs,\" typically are covered by general revenue.\u00a0 Electrical usage costs are covered by tenant electrical fees.\u00a0 Are you saying that it costs you $20 per vessel to produce electrical billing?\u00a0 Because you certainly don't do anything to maintain the electrical grid in the State harbor system. (Come to think of it, the DLNR seems to do as little maintenance as might be humanly possible in the State's harbor system. )\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">5.\u00a0 <em><strong>DLNR\/DOBOR:\u00a0 <\/strong><\/em><em><strong>\". . .\u00a0 <\/strong><\/em><em><strong>This would include the estimated cost of DOBOR\u2019s office, harbor, ramp, and street lights as well as the personnel cost of processing invoices and payments.\"\u00a0<\/strong><\/em> <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:<\/strong>\u00a0 The estimated cost of DOBOR's office, harbor, ramp, and street lights . . . and the cost of processing invoices and payments . . .\"\u00a0 should be reflected in tenant electrical usage billing? <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">5.\u00a0 <em><strong>DLNR\/DOBOR:\u00a0 <\/strong><\/em><em><strong>\" . . .\u00a0 <\/strong><\/em><em><strong>It would be greater than the amounts determined by the electrical bills in step 4, however, the amounts taken from the electrical bills do not include the DOBOR overhead. . .\u00a0 .\u00a0\u00a0 . . . Adding the estimated DOBOR overhead<\/strong><\/em><em><strong> . . .\"<\/strong><\/em>\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\"><strong>Hawaii Ocean News observation:<\/strong>\u00a0 The further down your document, the sillier it gets.\u00a0 So you're trying to recoup unrelated DOBOR administrative costs from tenant electrical usage billing?\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Frankly, it is difficult for those on our staff with accounting backgrounds to conclude anything other than the following:\u00a0 \"This is nothing more than another version of the infamous shell game (you know the one, where the unwitting patsy tries to follow the location of the ball-beneath-the-shells dupe) . . . \".<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">In my previous email you were notified about our intention to publish an article regarding the conclusions of our research to date.\u00a0 In fairness to you and the DLNR, you are free to respond to the article. We will include your comments in the publication.\u00a0 <\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Kathrine Lindell<\/span><br \/>\n<span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Hawaii Ocean News<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 18pt;\"><strong>Here is the <em>complete<\/em> DOBOR document, in its entirety, of their so-called process for arriving at a 1000% increase of harbor tenant electrical fees:<\/strong><\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">\u00a01. Currently, DOBOR pays for electricity for its harbors and seeks reimbursement from the harbor users.\u00a0 DOBOR\u2019s electrical bills include electricity used by slip users, for common areas such as comfort stations, for street and ramp lights, and for electricity used in the harbor and administrative offices.\u00a0 DOBOR wanted to increase the amount that it is reimbursed for electricity used at its harbors.\u00a0 The rate that DOBOR charges its harbor users is $5.75, $11.00, and $25.00 a month.\u00a0 These fees have not changed since 1994 and the amount that users pay does not cover the cost of all electricity used at DOBOR\u2019s facilities.\u00a0 For example, in fiscal year 2018, DOBOR received approximately $31,000 in electricity reimbursement from facility users at the Ala Wai Small Boat Harbor and DOBOR paid approximately $171,000 in electrical bills.\u00a0 For the Keehi Small Boat Harbor, DOBOR received $14,500 and spent $101,500.\u00a0<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">2. Paul Oshiro, Department of Business and Economic Development and Tourism (DBEDT) Research Statistician, was contacted to see if he had any data on the increase in electrical rates statewide.\u00a0 DBEDT provides economic forecasts that assist with long-term planning for the State of Hawaii (State) and they read, collect, compile, and post economic statistics on all aspects of business activity, the economy, and demographic characteristics of the State.\u00a0 They also publish the State of Hawaii Data Book that provides data on a myriad of subjects.\u00a0 The databook is located at: <a href=\"http:\/\/dbedt.hawaii.gov\/economic\/\">http:\/\/dbedt.hawaii.gov\/economic\/<\/a> .\u00a0\u00a0\u00a0 He provided data on the increase in the Consumer Price Index (CPI) and data on the price per kilowatt hours of electricity.\u00a0 The CPI measures the increase in the price of consumer goods.\u00a0 For example, if a product was $100 in 1994 and the CPI increased 100% over 14 years, than the price of the product would be expected to be $200.00.\u00a0 The data indicated that the CPI had increased over 100% since 1994.\u00a0 The price per kilowatt hour increased 60% from 2006.<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">3. To approximate a minimum increase in the rates that DOBOR charges, DOBOR increased the current rate of $5.75, to $11.50 (a 100% CPI increase) and added HECO\u2019s minimum fee of $17.00 per month to come up with $28.00 per month.\u00a0 If we used HELCO (Big Island), it would be $31.50 per month and MELCO (MAUI) it would be $29.00 per month.\u00a0 HECO, MECO, and HELCO all assess a minimum monthly fee to users whether electricity is used or not.\u00a0 If you are hooked up to the electrical grid, you are assessed a minimum fee.\u00a0 In a conversation with a HECO representative, DOBOR learned that the minimum fee covers the electric company\u2019s overhead.\u00a0<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">4. DOBOR staff used the electrical bills for the harbors of Haleiwa, Nawiliwili, Ala Wai, and Keehi, and developed an average cost per slip.\u00a0 This amount would reflect that average electricity usage.\u00a0 Boaters in facilities such as Lahaina, Maalaea, and Heeia Kea pay the electric company directly.\u00a0 Staff obtained and reviewed a sample of electrical bills for each facility and dividing the amount by the number of slips associated with the invoice.\u00a0 For example, for one utility bill at Ala Wai, the monthly amount was $12,845 and there were 320 slips on that meter.\u00a0 That meant that the cost to each slip would be approximately $40.00.\u00a0 Using five months of bills, the cost of electricity for Haleiwa ranged from $25 to $30 per month.\u00a0 This included street and harbor lights.\u00a0 Keehi, using four months of bills, ranged\u00a0 from $27-$32.\u00a0 This amount does not include street and harbor lights.\u00a0 Ala Wai\u2019s range, using three months of bills, was $24-$60 and does not include street and harbor lights.\u00a0 Nawiliwili\u2019s cost was $24 and included street and harbor lights and was based on the amount that was paid annually.\u00a0 It should be noted that this rate does not include the cost of electricity for common areas such as offices and comfort stations.\u00a0<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">5 DOBOR estimated an overhead cost of approximately $20.00 per users.\u00a0 This would include the estimated cost of DOBOR\u2019s office, harbor, ramp, and street lights as well as the personnel cost of processing invoices and payments.\u00a0 Adding this amount to the minimum increase calculated in step 3, brings DOBOR proposed monthly rate to approximately $50.00.\u00a0 It would be greater than the amounts determined by the electrical bills in step 4, however, the amounts taken from the electrical bills do not include the DOBOR overhead.\u00a0 Adding the estimated DOBOR overhead, $50.00 would be consistent for rates for Ala Wai, Keehi, Nawiliwili, and Haleiwa.\u00a0<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">I hope this provides you with an understanding of the process that we went through to develop our proposed electric fees.\u00a0 The rate increase was based on invoices from the harbors, economic information from the DBEDT, and information from the respective electrical companies.\u00a0 I believe our approach to determining the rates was not arbitrary.\u00a0 We were comprehensive in our analysis and analyzed all of the data that was available to the division.\u00a0<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Mahalo,<\/span><\/p>\n<p><span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Kevin H.K. Yim <\/span><br \/>\n<span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Boating Staff Officer<\/span><br \/>\n<span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Department of Land and Natural Resources<\/span><br \/>\n<span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">Division of Boating and Ocean Recreation<\/span><br \/>\n<span style=\"font-family: trebuchet ms, geneva, sans-serif; font-size: 14pt;\">(808) 587-1979<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>We&#8217;re wondering, at this point, if Governor David Ige is actually aware of what is going on in his DLNR, headed by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dlnr"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/hawaiioceannews.com\/wp-content\/uploads\/2018\/05\/Ala-Wai-WA-_3.1.1.jpg?fit=1920%2C1080&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/posts\/823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/comments?post=823"}],"version-history":[{"count":0,"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/posts\/823\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/media\/572"}],"wp:attachment":[{"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/media?parent=823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/categories?post=823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hawaiioceannews.com\/index.php\/wp-json\/wp\/v2\/tags?post=823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}