DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAI‘I WATER BOARD MEETING

MEETING DATE: October 22, 2013

TIME: 10:00 a.m.

PLACE: Department of Water Supply, Operations Center Conference Room, 889 Leilani Street, Hilo, HI

1) CALL TO ORDER – 10:00 a.m. (please turn cell phones off or set to silent)

2) STATEMENTS FROM THE PUBLIC

3) APPROVAL OF MINUTES

Minutes of the September 24, 2013, Water Board meeting

4) APPROVAL OF ADDENDUM AND/OR SUPPLEMENTAL AGENDA

(Note: Addendum requires Roll Call Vote)

5) SOUTH KOHALA:

A. REQUEST FOR RIGHT OF ENTRY FOR ENVIRONMENTAL ASSESSMENT AND RESPONSE OF FORMERLY USED DEFENSE SITE (FUDS) WAIKOLOA MANUEVER, TAX MAP KEY (3)6-6-001:064:

The Department of the Army has requested a right-of-entry onto the Department’s Lālāmilo Reservoir (310’) site to perform an environmental investigation and response. The area was used by the military as stated, and they have been “combing” the area for ordnance. According to their records, they have not covered our reservoir site. Coordination of the entry to our site will be with the District Supervisor.

RECOMMENDATION: It is recommended that the Board approve the Right-of-Entry request and authorize the Board Chair to execute the document.

6) NORTH KONA:

A. NATIONAL PARK SERVICE PETITION TO DESIGNATE KEAUHOU AQUIFER SYSTEM AREA AS A GROUND WATER MANAGEMENT AREA:

On September 13, 2013, the National Park Service (NPS), through the Superintendent of the KalokoHonokōkau National Park, filed a Petition with the Commission on Water Resource Management (CWRM) to designate the Keauhou Aquifer System Area (North Kona) as a Ground Water Management area.

The Hawai‘i State Water Code, Haw. Rev. Statute Chapter 174C, Park IV, Regulation of Water Use, §§174C-41 to 467, and the Commission’s Administrative Rules, HAR §13-171-3 to 9, provide that the Commission consult with the Mayor, County Council, and County Board of Water Supply about the petition.

Under Haw. Rev. Stat. §174C-41, the Chairperson of CWRM was to make a recommendation whether or not to pursue the designation process within 60 days of receipt of the Petition or such additional time

as may be reasonably necessary to determine that there is factual data to warrant the proposed designation. The 60-day deadline is November 12, 2013.

The Department had submitted a request to the Commission to extend the consultation period. The County Council, the Mayor’s Office and Planning Department made similar written requests.

B. CORRESPONDENCE RE: ACCESS TO KALAOA WELL SITE FROM REV. NORMAN KEANA‘AINA:

For discussion.

C. EXECUTIVE SESSION RE: CORRESPONDENCE REGARDING ACCESS TO KALAOA WELL SITE FROM REV. NORMAN KEANA‘AINA:

The Water Board is expected to convene an executive meeting, closed to the public, pursuant to Hawai‘i Revised Statutes, Sections 92-4 and 92-5(a)(4), for the purpose of consulting with the Water Board’s attorney on questions and issues pertaining to the Water Board’s powers, duties, privileges, immunities and liabilities. A two-thirds vote pursuant to HRS Section 92-4 is necessary to hold an executive meeting.

D. JOB NO. 2012-985, HUALĀLAI DEEPWELL REPAIR – TIME EXTENSION REQUEST:

The Department of Water Supply is requesting a contract time extension on behalf of the contractor, Beylik Drilling and Pump Service, Inc., to January 31, 2014. This is due to unforeseen events involving failure of the existing step-up transformer. Well installation was completed on July 23, 2013. During start-up and testing, the well continuously tripped on high amps. Testing conducted in conjunction with the Contractor and motor manufacturer concluded that the existing transformer has degraded to a point that it no longer can support the motor load and requires replacement. This event was beyond the control of the Contractor and the original scope of the repair.

Note: There are additional costs associated with this time extension. Material and labor cost for replacement transformer to be conducted by Change Order request (see below).

1st time extension – 123 calendar days

RECOMMENDATION: It is recommended that the Board approve a contract time extension to Beylik Drilling and Pump Service, Inc., of 123 calendar days for JOB NO. 2012-985, HUALĀLAI DEEPWELL REPAIR. If approved, the contract completion date will be revised from September 30, 2013, to January 31, 2013.

E. JOB NO. 2012-985, HUALĀLAI DEEPWELL REPAIR – CHANGE ORDER:

The contractor, Beylik Drilling and Pump Service, Inc., is requesting a contract change order to replace the existing step-up transformer for Hualalai Deepwell. Due to age and degradation of the existing transformer, it can no longer support the electrical load of the motor and requires replacement. Total project costs shall not exceed $181,645.00. The description of additional materials and associated fees are as follows:

ITEM DESCRIPTION AMOUNT
1. Additional funds required for replacement 750kVA step-up transformer, installation, disposal and freight costs. $ 94,500.00

Original Contract Amount: $ 79,223.00 Original Contingency amount: $ 7,922.00 Additional Contingency request: $ 94,500.00

RECOMMENDATION: It is recommended that the Board approve an increase in contingency of $94,500.00 to Beylik Drilling and Pump Service, Inc., for JOB NO. 2012-985, HUALĀLAI DEEPWELL REPAIR.

7) MISCELLANEOUS:

A. DEDICATION OF WATER SYSTEMS:

The Department received the following documents for action by the Water Board. The water systems have been constructed in accordance with the Department’s standards and are in acceptable condition for dedication.

1. GRANT OF EASEMENT AND BILL OF SALE*

Subdivision Name: Kona Vistas Subdivision, Unit 4 Subd. Appl. No. 2005-000227 Grantor: Kona Vistas, LLC Tax Map Key: (3) 7-6-027: 105 portion Zoning: Not Available No. of Lots: 26 Facilities Charge: $25,145.00 Final Inspection Date: 08/13/13 Water System Cost: $319,946.00

*Corporation Counsel to provide details.

2. BILL OF SALE

Subdivision Name: Kamakana Village, Phase 1-A Subd. Appl. No. 2011-001105 Seller: FHT Kamakana, LLC Tax Map Key: (3) 7-4-021:026, 035-040 and 044 Zoning: A-5a and RS-15 No. of Lots: 6 Facilities Charge: $93,500.00 Date Paid: 12/08/2011 Final Inspection Date: 07/02/2013 Water System Cost: $411,900.00

3. GRANT OF EASEMENT AND BILL OF SALE / BILL OF SALE

Subdivision Name: Mohouli Heights Senior Neighborhood Project, Phase 1 Subd. Appl. No. 2011-001115 Grantor / Seller: HICDC / County of Hawaii Tax Map Key: (3) 2-4-177 and 178 Zoning: RM-4 No. of Lots: 1 Facilities Charge: $253,000.00 Date Paid: 7/26/2012 Final Inspection Date: 10/10/2013 Water System Cost: $155,331.00

4. GRANT OF EASEMENT AND BILL OF SALE

Subdivision Name: Kapua II Mahi‘ai Subdivision Subd. Appl. No. 2011-001045 Grantor / Seller: EWM Enterprises, LP Tax Map Key: (3) 5-4-008:001 Portion and 5-4-010:029 Portion Zoning: FA-2A No. of Lots: 10 and Roadway Lot 11 Facilities Charge: $1,190.00 Date Paid: 8/12/13 Final Inspection Date: 10/04/13 Water System Cost: $76,041.00

RECOMMENDATION: It is recommended that the Water Board accepts these documents subject to the approval of the Corporation Counsel and that either the Chairperson or the Vice-Chairperson be authorized to sign the documents.

B. DEPARTMENT OF WATER SUPPLY PROPOSED TABLE OF ORGANIZATION:

The Department recognizes the need to revise its current table of organization to align with current and future needs as identified in the Strategic Plan. As such, the Department proposes the following:

REVISED POSITION ORGANIZATION CHART -- ADMINISTRATION DIVISION – PUBLIC

RELATIONS BRANCH

(This Item was deferred at the September 24, 2013, Water Board meeting.)

The Department proposes to amend its Table of Organization, Position Organization Chart, Public Relations Branch by creating a Public Relations Section, a Strategic & Business Plan Section, and a Support Section. The proposed amended branch will allow the Department to better administer and execute public information, education, and strategic planning programs. The existing Public Information Education Specialist position is proposed to change to an Information and Education Manager (SR-26) that will supervise the proposed subordinate positions: Public Relations Technician I (SR-14), Public Relations Technician II (SR-16), Information and Education Specialist I (SR-18), Information and Education Specialist II (SR-20), Information and Education Specialist III (SR-22), and a Clerk III (SR-10).

The proposed changes will provide the Department the ability to meet its goals of improved efficiency, through the appropriate separation and distribution of workload. Please note that although numerous positions appear on the proposed organization chart, positions will only be filled as needed.

This matter was deferred by the Board at the previous meeting to allow the Manager-Chief Engineer to consult with Vice-Chairperson Kenneth Kaneshiro.

RECOMMENDATION: It is recommended that this matter be tabled, i.e., removed from the Agenda.

C. AD HOC COMMITTEE PURSUANT TO HRS SECTION 92-2.5(B) TO PRESENT, DISCUSS AND/OR NEGOTIATE FOR LEGISLATION REGARDING THE PLACEMENT OF SUCH LIENS ON REAL PROPERTY FOR NON-PAYMENT OF WATER BILLS:

The Ad Hoc Committee is exploring legislation pursuant to HRS Section 92-2.5(B) which would allow the placement of an automatic lien on property for non-payment of water bills. The Ad Hoc Committee will present, discuss, and/or negotiate for such legislation with any necessary person including, but not limited to, any water or wastewater department or division of any county, and/or with any legislators in the State of Hawai`i.

The Ad Hoc Committee is also exploring a revision of the Department of Water Supply Rules and Regulations to hold a property owner responsible for any water bill for water service to such property, whether or not the property owner resides on the property; and that no water service will be granted to such property until all such delinquencies are paid or other agreement is reached.

D. AD HOC FINANCE COMMITTEE REPORT:

The Water Board’s Ad Hoc Finance Committee Chairperson, Mr. Art Taniguchi, has been investigating the three focus areas (DWS’s policies on credit card use, cash control and vehicle take-home), which encompass the scope of the Committee’s work. At this meeting, the Committee may do the following:

Discussion of DWS’s cash handling procedures and proposed changes.

E. MANAGER-CHIEF ENGINEER’S QUARTERLY UPDATE:

Report on the second quarter of 2013 by the Manager-Chief Engineer, with discussion.

F. MANAGER-CHIEF ENGINEER’S EVALUATION:

The Board will have received in their packets copies of an evaluation form for the Manager-Chief Engineer, used by the Water Board for the yearly evaluation of the Manager. For discussion on processing, procedures, and summarized results.

G. ENERGY MANAGEMENT ANALYST UPDATE:

The Energy Management Analyst will provide a quarterly update on significant changes or noteworthy areas relating to energy use and the Department’s Green Initiatives.

H. MONTHLY PROGRESS REPORT:

Submission of Progress Report of Projects by the Department. Department personnel will be available to respond to questions by the Board regarding the status/progress of any project.

I. REVIEW OF MONTHLY FINANCIAL STATEMENTS:

Submission of financial statements and information relating to the financial status of the Department. Department personnel will be available to respond to questions by the Board relating to the financial status of the Department.

J. MANAGER-CHIEF ENGINEER’S REPORT:

The Manager-Chief Engineer will provide an update or status on the following: 1) Pu‘ukala/Kona Ocean View Properties Subdivision Improvement District Update 2) Queen Ka‘ahumanu Highway Widening Project Update 3) Kawailani Tank update 4) Waikoloa Reservoir No. 1 Update 5) Parker Well Repairs Update 6) Public Information and Education Specialist Update 7) Employee of the Quarter Recognition 8) Recognition of Service Retirement

K. CHAIRPERSON’S REPORT:

Chairperson will raise issues of interest to the Board.

8) ANNOUNCEMENTS:

American Water Works Association (AWWA) Annual Conference & Exposition (ACE) – Boston, Massachusetts, June 8 to 12, 2014. Interested Water Board Members, please contact Doreen Jollimore at 961-8050.

  1. Next Regular Meeting: The next meeting of the Water Board will be held at 10:00 a.m. on November 26, 2013 at the West Hawai‘i Civic Center, Liquor Control Conference Room, Bldg. B, 2nd Floor, 74-5044 Ane Keohokalole Hwy, Kailua-Kona, HI.
  2. Following Meeting: The following meeting of the Water Board will be held at 10:00 a.m. on December 17, 2013 at the Department of Water Supply, Operations Center Conference Room, 889 Leilani Street, Hilo, HI.

9) ADJOURNMENT

Anyone who requires an auxiliary aid or service for effective communication or a modification of policies or procedures to participate in this Water Board Meeting should contact Janet Snyder, Secretary, at 961-8050 as soon as possible, but no later than five days before the scheduled meeting. Notice to Lobbyists: If you are a lobbyist, you must register with the Hawai‘i County Clerk within five days of becoming a lobbyist. {Article 15, Section 2-91.3(b), Hawai‘i County Code} A lobbyist means “any individual engaged for pay or other consideration who spends more than five hours in any month or $275 in any six-month period for the purpose of attempting to influence legislative or administrative action by communicating or urging others to communicate with public officials.” {Article 15, Section 2-91.3(a)(6), Hawai‘i County Code} Registration forms and expenditure report documents are available at the Office of the County Clerk-Council, Hilo, Hawai‘i.