The Budget, Finance & Economic Development Committee recommended passage on first reading of Bills 127 and 128 to amend the FY26 capital improvement budget and bond authorization to appropriate $5,862,123 as the county match for a previously allocated $10,000,000 in reimbursable state general obligation bonds for the Upcountry Maui Agricultural Park (UMAP, often called Kula Ag Park) expansion.

Budget Director Leslie Milner told the committee the action restores lapsed county bond funds so the county can meet the state match and draw down the state allocation. The committee voted in favor by a recorded tally of six ayes with three excused members and recommended that the bills proceed to the council for first reading.

Dan Shupack, county Capital Improvement Program coordinator, summarized project phases, timeline and costs. Phase 1 is construction of a booster pump station at Reservoir 40 (under construction with design and preliminary submittals underway). Phase 2 proposes a new 2.4 million‑gallon concrete reservoir near the existing Kula Ag Park to provide storage and firefighting capacity; phase 3 is a 12‑inch water main to gravity‑feed the new park; phase 4 is construction of the new 262‑acre Ag Park with roadways, irrigation mains, electrical service and off‑site water work.

Shupack said the booster pump station work began in January 2025 (still in preliminary submittals) and is expected to break ground later in 2025 or early 2026. The draft environmental assessment is expected in December 2025 and full project completion across all phases is estimated in 2028, contingent on funding and permitting. Construction estimates presented to the committee show the reservoir median cost at roughly $22.7 million and the new Ag Park construction estimate at about $11.1 million; total design, construction and management for phases 1–4 were estimated at roughly $44.3 million. County staff said current on‑hand funds plus the reappropriation total about $24.3 million; the project therefore still needs roughly $20 million to complete all phases.

Milner and Director RC (Department of Agriculture) told the committee the county had previously encumbered about $4,137,877 of the FY24 bond funding; $5,862,123 lapsed and is the amount being reappropriated now. The state’s $10,000,000 allocation is reimbursable, which requires the county match to be in this fiscal year’s budget. The county is also preparing applications for other grants, including an Economic Development Administration supplemental grant, and staff said they will coordinate with the Office of Recovery to pursue additional federal funding.

Council members and water staff discussed source and allocation of water for the project. Deputy Director Landgraf (Department of Water Supply) said the work will use surface water pulled from the East Maui irrigation system (the Wailoa ditch) under a revocable permit; the county currently has an allocation of 5.25 million gallons per day and officials said they will seek an increased allocation when the permit comes up for renewal later this year. Shupack said the 2.4 million‑gallon reservoir and the 12‑inch water main are intended to provide reliable supply and fire‑flow capacity and to lower ongoing pumping costs compared with continuous pumping from lower elevations.

Public testimony included two brief comments: one from JC Law of Haleakala/Waiakoa Ahupua‘a raising questions about cultural patents and food security, and another from an anonymous commenter offering general support and blessings for the project.

Committee members pressed on project timing, permitting and escalation risk. Staff said cultural reviews and the environmental assessment have taken time and that design and permitting are advanced enough to bid components; they also noted contingencies were included in cost estimates (for example, ~15% contingencies on some estimates). Members asked about in‑house capabilities and whether county crews might offset costs; staff said the reservoir is large and likely outside typical in‑house construction capacity, so outside contracting would be required.

The committee voted to recommend first reading of Bills 127 and 128 to appropriate the $5,862,123 county match; the item will proceed to the council for further action and staff will continue pursuing grant opportunities and prepare bid packages for project components.