2005-10-25 Water Board Agenda - Laserfiche WebLink

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projected revenues depend in part by the inverted block structure. Modifying the Block Thresholds will have an effect on future revenues. G. FUNDING AGREEMENT WITH UNITED STATES GEOLOGICAL SURVEY: Funding Agreement with USGS will be discussed and Department personnel will be available to respond to questions by the Board regarding the status /progress. H. PROPOSED REVISION TO SERVICE LATERAL INSTALLATION CHARGES FOR STATE RIGHT -OF -WAYS: Currently, the fee to install a service lateral connection for a 5/8 -inch meter on State right -of -ways pursuant to our published Water Rates is $4,600.00. This is a flat rate fee and applies to either side of the highway regardless of the location of the pipeline. The actual cost the Department incurs for a service lateral connection on State right -of -ways, which crosses the highway, is averaging $25,002.46 islandwide. This average includes the cost to do the design and plans as required by State Highways. The specific district cost averages are: Hilo -Puna, $22,095.25; Hamakua - Kohala, $16,200.00; and Kona, $26,792.50. For every service lateral connection, the Department provides on State right -of -ways, which crosses the highway, we are losing an average of $20,402.46. To revise the fee we charge to our prospective consumers for service lateral connections on State right -of -ways, the Water Rates need to be changed through the public hearing process. An alternate revision, which would provide our prospective consumers greater flexibility, is to allow them to contract on their own for the design and plans and for the construction of the service lateral connection, providing that the construction is done by a licensed contractor. In this case, we would perform the wet tap to the pipeline and provide inspection of the construction to assure conformance to our Water System Standards. To assure fairness to residents alongside a State Highway, this alternate revision should apply to either side of the highway, regardless of where the pipeline is. RECOMMENDATION: It is recommended that the Board agree in concept to the above proposed alternate revision to our published Water Rates and that staff prepare a draft amendment to the Water Rates for the Board's review at the November 2005 regular Board meeting and that public hearings for this purpose be scheduled in 2006. I. EXECUTIVE SESSION: The Board anticipates convening an executive meeting regarding the following case, pursuant to Section 92- 5(a)(4), Hawaii Revised Statutes (HRS), as amended, for the purpose of consulting with its attorney on questions and issues pertaining to the 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. 1. Attorneys, BAUMAN, LOEWE & WITT, claim for subrogation on behalf of The Hartford and John & Irene Mcculloch regarding damages to Unit #A103, Kaulana at Kona. Page 4 of 5 10 -25 -05 Agenda.doc