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HomeMy WebLinkAbout2004-04-27 Water Board MinutesMEMBERS PRESENT: ABSENT: MINUTES DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII WATER BOARD MEETING April 27, 2004 OCEAN VIEW COMMUNITY CENTER Mr. Earl T. Nakashima, Chairman; Mr. Ivan Mochida, Vice - Chairman; Mr. Loren Heck; Ms. Sandra Scarr; Mr. Thomas Goya; Mr. Leonard Tanaka; Mr. George Wilkins; Mr. Milton D. Pavao, Manager (ex- officio member) Ms. Pamela Hons, Water Board Member Mr. Bruce McClure, Director, Department of Public Works (ex-officio member) OTHERS PRESENT: Mr. Roy Takemoto, representing Mr. Christopher Yuen, Director, Department (ex- officio member) Ms. Katherine Garson, Deputy Corporation Counsel Mr. Sherman Hee, Special Legal Counsel Councilman Bob Jacobson Mr. Andrew Levin, Mayor's Office Mr. Wendell Hatada, Mayor's Office Ms. Hillary Keehne, Townscape, Inc. Mr. Bruce Kawamura, BK, Inc. Mr. Gordon Tribble, United States Geological Survey (USGS) Mr. Don Nitsche Ms. Carol Converse Mr. Dennis Lomas Mr. George B. Wallace Mr. Robert L. Ray Mr. Kermit G. Goering Mr. Ed Bruno Ms. Marge Elwell Mr. Bob Barry Mr. Bruce Hopper Mr. John Turner Mr. Fred Thibedeau Ms. Gloria Lomas Ms. Diane Neufeld -Heck Mr. Herbert Deaguiar/Ms. Grace Deaguiar Mr. Jimmy Yocom/Ms. Elinor Yocom Mr. Richard Powers/Ms. Helene Powers Mr. Dave Smith, Hawai'i Tribune Herald Mr. Lane Wick, Hawai'i Island Journal Approximately 20 others from the public (names unknown) Department of Water Supply Staff: Mr. Quirino Antonio, Deputy Manager Mr. Glenn Ahuna, Engineering Division Head Mr. Dennis Lee, Chief of Operations Mr. Richard Tsunoda, Waterworks Controller Mr. Richard Sumada, Assistant Waterworks Controller Page 1 of 25 4- 27 -04min (Ocean View).doc CALL TO ORDER: Chairman Nakashima called the meeting to order at 10:05 a.m. STATEMENTS FROM THE PUBLIC: 1. Ms. Carol Converse Ms. Converse stated that she represents Ka`u Water Delivery and had come before the Board before, at its November 25, 2003, meeting in Waimea, telling of the problems water haulers face. She stated this may be premature; but as the line, hopefully, comes up the hill or wherever it is planned for the new loading area for the trucks, she hoped the contractor does their research with water haulers because they need this loading area to last a long time. They would be able to serve more people more quickly if they could have two or three trucks loading at a time. She suggested since the trucks are not all the same length, they need certain areas for the large ones (6,000 gallons) those take 35 minutes; and nobody likes to get behind the big trucks. By having two or three trucks able to load at one time would solve a lot of problems. 2. Mr. Dennis Lomas Mr. Lomas asked if there was a priority list that shows what is holding up getting Wai`6hinu water up to South Point Road. He suggested maybe their OVCDC group could assist the Department in getting problems resolved, like doing the legwork, etc. They would like to help in any way they can. 3. Mr. George B. Wallace Mr. Wallace stated that he was contacted by Mr. Nitsche to be available to testify in case he is needed. In actual fact, his information deals with the CFD (Community Facilities District). At the time that the OVCDC was actively pursuing a CFD, he was the secretary of that organization. He was actively involved in the gathering of information of the mail replies to the petition they had sent out to the various landowners. Part of his information is that he thought they were being very successful and getting positive return from the landowners. They had reached a point where he thought they were ready for a second mailing. In retrospect, he believes their difficulties were that they did not have enough expertise in how you establish a CFD; and therefore, their approach to giving information to landowners was clumsier than it should have been. That is where they needed the expertise from the County; and somehow, it never seemed to work out the way they thought it should. He believes they were simply too complex in their explanation to landowners and should have been able to do a better job in the second mailing. At the time that he ceased his volunteer work, they were ready for the second mailing; and the major stumbling block, at that time, was simply not enough funds, primarily for postage, which was eating them alive. 4. Mr. Robert L. Ray Mr. Ray explained that he is from Kona Paradise Subdivision; and for the past six or seven months, he has been trying to get a handle on how they could get water to the houses in that subdivision. What he thinks is the case is that they cannot count on any kind of line to the top of the hill before six years from now, realistically. The other thing he is unsure of is how does the County intermesh with the CFD if they were to form one. If they form a CFD within the next six years, what help can they expect from the County, if any, to get the water distributed down to the houses. He also Page 2 of 25 4- 27 -04min (Ocean View).doc asked if the County has jurisdiction of it. What he had been told in the past, if the County assumes maintenance over the line, they have jurisdiction, and it has to be built according to County or State standards, or both, which would mean the line has to be buried. Between now and the time in the future that the line may get out there, what can they be doing, and even in forming the CFD, can they call upon some offices of the County for help in doing that. Finally, he wanted to say that members of the Board of Directors of their subdivision have been kind of negligent in the last 10 or 15 years. They could have bought a piece of property at the top of the hill for a tank at a reasonable rate. At the time, they opted not to do that; but instead, put in a park down at the ocean. He added that there are two lots near the top of the hill that are for sale again. If nothing more than fire protection, he wondered if there was some way they could start to lobby; and if so, who, the County to purchase those lots so when the water gets there, they could get a tank for some fire protection. He mentioned it has been a very wet spring, thus a lot of foliage; and feared a very hot summer could be coming where they will have fire dangers that they have not had for years. They are very vulnerable out there. He reiterated that they want to know where to start and are willing to do the work. Chairman Nakashima stated that some answers would be provided in the upcoming presentation on the Ka`u to South Kona Water Master Plan by Townscape, Inc. Ms. Scarr pointed out in the Ka`u to South Kona Water Master Plan (Plan), Page 8 -3, there is a description of the CFD, how they are formed, and what steps need to be taken. When asked how to get copies of the Plan, Mr. Heck mentioned there is a website address they could get from Townscape, Inc. 5. Mr. Kermit Goering Mr. Goering asked if the Department has a printout of all the things that have either been funded or are in the pipeline already. If so, perhaps it could be placed on the internet for people to visit and see Ocean View's progress and how soon they might have water, at least down at the bottom of the hill. They realize the first priority is getting it from Wai`6hinu up to the top of the hill by South Point Road. He concluded that the priorities should be on the website because there should not be any secrets about them and commented that the Department works for the people. The Manager clarified that the Department does not operate on any tax money whatsoever, and Mr. Wilkins added that the Board works for free. Mr. Goering stated he did not realize that, but would still appreciate the report being placed on the internet so they may figure out where they are at in the Department's priorities. His other question was if the Department was going to, sometime in the future, get a drilling rig that actually works. 6. Mr. Don Nitsche Mr. Nitsche handed out a letter to the DWS, Attention Mayor Kim and the Water Board, from OVCDC, subject - water for Ocean View, MacFarms, Honomalino, Miloli`i, Papa Bay Estates, Kona Paradise, up to Ho`okena, and read from it as follows: "I am sure that everyone is aware of Ocean View's quest for a water source, so we will not belabor you with past history, which has been going around in circles. The Townscape plan is basically complete. At least all the data is finally in one publication. The test well promised Ocean View Page 3 of 25 4- 27 -04min (Ocean View).doc and managed by the USGS, has been unbelievably delayed for over a year. The OVCDC continues to push for the DWS to place the Wai`ohinu well at the top of their priority list. It is known that the water from the Wai`ohinu area is abundant and of excellent quality. A waterline from the existing 100K gallon tank near Highway 11 to the upper end of South Point Road, just 2.3 miles, would be a very good place to locate a metered water filling station for the water haulers. This would also eliminate 12 miles round trip to Ocean View, plus a steep and dangerous 1,200 -foot elevation climb for loaded trucks. This should be the first phase and should be undertaken now. The next phase would be a waterline from the end of South Point Road, along Highway 11, to Ocean View, and eventually on north to the other communities and areas listed in the subject above. With a water source at South Point, grants and funding will be feasible. The OVCDC was formed to oversee the construction of the proposed well project funded by the State Legislation in 1998; but unfortunately, the funds were not released in spite of the fact that OVCDC had hired a project manager, Steve Bowles, and were ready to receive bids. We propose that funds from the State and held by Hawaii County be made available for OVCDC to conduct an engineering study and plan to bring a pipeline from South Point Road to Ocean View, and eventually on to Ho` okena, servicing all the farms and communities in between, and we would like to work with the DWS to help bring this about. We have consulted with contractors and engineers and have been assured that this is a viable plan. We are capable of overseeing and coordinating experts and professionals in this field, and we look forward to constructive discussions of our plan with you." Mr. Wilkins asked for clarification- -there was a plan cited when Mr. Nitsche last testified before the Board - -and that was about an aboveground pipeline from Wai`ohinu across National Park lands. He asked if that were still a possibility. Mr. Nitsche replied it is. They have consulted with the Volcano National Park, and they are more than willing to have a line come across their property. They understand, after talking to some of the larger contractors in the State, that it is expensive to put it on State Highway right -of -way; and it would probably be better to stay on private land or Kahuku Ranch. There are a few properties down at South Point, but they have not contacted them yet; however, that is part of a study they would like to do. There is also a possibility the State may relax some of the requirements for a waterline coming up the highway instead of making it more extensive to put it on their right -of -way. Mr. Heck stated that he would have questions later in the meeting for those who testified. Mr. Nitsche added that they appreciated the Board holding its meeting in Ocean View. He pointed out that the Community Center was built entirely on private funds and with their own labor in the community, along with a park. Their community could play a big part in helping get the water brought in at the highway. APPROVAL OF MINUTES ACTION: Ms. Scarr moved for approval of the Minutes of the March 23, 2004, Water Board Meeting; seconded by Mr. Goya and carried unanimously by voice vote. APPROVAL OF ADDENDUM Page 4 of 25 4- 27 -04min (Ocean View).doc ACTION: Mr. Tanaka moved to add Addendum Item 10) Miscellaneous, (L) Contracts Technician; seconded by Mr. Wilkins and carried by roll call vote (Ayes: 7: Ms. Scarr; Messrs. Goya, Heck, Mochida, Tanaka, Wilkins, and Chairman Nakashima; Nays: 0; Absent: 1, Ms. Hons). SUPPLEMENTAL AGENDA ACTION: Ms. Scarr moved to add the Supplemental Agenda Item 10(E) Water Treatment Proposal No. 2004 -02 to the Agenda; seconded by Mr. Tanaka and carried unanimously by voice vote. SOUTH HILO: A. JOB NO. 98 -705, HONOMU EXPLORATORY WELL: The Board considered a request from the contractor, Water Resources International, Inc., for a 123 - calendar day time extension. Minus weekends and holidays, this equates to eighty -two (82) working days. Staff reviewed the request and found that 58 working days are justified. The Manager recommended that the Board approve a contract time extension of fifty -eight (58) working days from May 19, 2004, to August 12, 2004, for JOB NO. 98 -705, HONOMU EXPLORATORY WELL. ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by Mr. Mochida and carried unanimously by voice vote. ACTION TO MOVE UP AGENDA ITEMS In the interests of those present today, Mr. Tanaka asked that the Board move up Agenda items "South Kona - Ka`u Water Master Plan" and "United States Geological Survey Drilling Program." ACTION: Mr. Wilkins so moved; seconded by Mr. Goya and carried unanimously by voice vote. KA`U: A. SOUTH KONA — KA`U WATER MASTER PLAN: Mr. Andrew Levin of the Mayor's Office gave a brief history leading up to this plan. The Legislature appropriated funds to plan a well in Ocean View in 1998, largely the successful work of Representative Bob Herkes. Unfortunately, Governor Cayetano never released that funding; and it lapsed in 2000. Thereafter, the Ocean View Community Development Council ( OVCDC) approached the County Administration and started talks about the Community Facilities District (CFD). Mayor Kim indicated support of the community in its efforts in the CFD process. When that effort failed, the OVCDC approached the Mayor; and based on that discussion, it was the Mayor's suggestion that rather than focusing strictly on a well for Ocean View, it would be more appropriate to look at the entire southwest quadrant of the Big Island, which is without water from Page 5 of 25 4- 27 -04min (Ocean View).doc South Point to Ho` okena. The Mayor asked Governor Cayetano if he would release funds if he was successful in asking the Legislature for funding again, this time for a plan. This was agreed to, and $500,000.00 was budgeted and released. Townscape, Inc., was hired for preparation of this report. In the report on Page 1 -4, Townscape has done an excellent job in pointing out the benefits to be derived from having a plan adopted and bringing water to this area -- talking about fire protection, public health -- better system than catchment, also ability to have a health clinic if there is water available. The idea of bringing a school to the area has been stymied by lack of water. Another obvious issue is droughts. Old- timers will talk about the maps they were shown when they first purchased their properties where there was something like 80 inches of rain a year, and now it appears they are getting about 20 inches of rain a year -- drastic changes. Also the agriculture and economic potential of the area is enormous. After Ms. Hillarie Keehne's ( Townscape, Inc.) review of the draft plan, questions were as follows: Ms. Scarr asked why the stand -alone well in Opihihale in the alternative study was not explored financially, instead of the Ho`okena extension. It is a big difference in price if you are talking about 335 in Kona Paradise and only 100 stretched along the other 5'/2 miles. Then the cost - effective thing to do soon would be to go for the Opihihale well at $1.7 million vs. the Ho`okena extension at $5.1 million when you are only serving 3/4 of the available customers. Ms. Keehne explained that the stand -alone well only serves that section of the community, whereas there are residents spread from Ho`okena to Opihihale. The 100 customers are just those that already have structures along the highway. Not all 335 lots have homes on them. If they did a community improvement district, they would all be required to contribute. Another difficulty with a stand -alone well is lack of integration with existing systems. Ms. Scarr commented that the most of the Department's systems are not connected now, and we can live with stand -alone systems if they are serving significant numbers of people. Mr. Wilkins was troubled with the statement that the average water consumption under the new plan would run 40 to 60 gallons per person, per day. Assuming there are multiple people in an average household, this would still be only' /4 of the current allocation to other people on the island, which is 600 gallons per day. He asked if the Plan is assuming that people will still rely on catchment water and wondered how many people are aware of this. Ms. Keehne stated that they have stated throughout this process that this is to supplement existing catchment systems. Right now, this plan only calls for putting in a spigot at the well site so there would be no distribution. Mr. Wilkins felt that it would make more sense to put in a larger pipeline, and the plans are shortsighted in that respect. Mr. Kawamura explained that pipe size is based on projected population growth. They did not want to oversize any pipe because if you start running the water and there is no usage, you would have to flush that water out because it becomes stale. Mr. Wilkins disagreed and pointed out that you could always keep a pipe empty or have it on standby. It is cheaper to put in a larger pipe than to have to dig another ditch. Page 6 of 25 4- 27 -04min (Ocean View).doc Mr. Tanaka asked Ms. Keehne and Mr. Levin about the possibilities of going back to the State Legislature for funding and what the next step would be. Ms. Keehne stated that Senator Kokubun has reviewed the plans and sees the need to write a Bill and try and get that allocation. The next step in going forward, if appropriation is given, is to start drilling and have the community simultaneously work with DWS in getting their CFD formed. In response to Mr. Tanaka's question of who would take the lead in lobbying the Legislature, Mr. Levin replied it should be a joint effort. There needs to be community buy -in if the next step should be a test well; and if so, where and estimated cost. Then the County, the DWS, and the community can join forces with district legislators to ask the 2005 Legislature to put in the necessary funds. Recognition that there is no federal money available for a test well, the source has to be proven first. Hopefully, that will be a winning argument at the Legislature. Ms. Scarr asked how the USGS tell will comes into this Plan. Ms. Keehne replied that it is a different type of well - -only 4 inches in diameter and only able to verify if there is water - -not the pumping data they would need. Also, the drill rig can only go as deep as 2,000 feet, and their projections show there is good water below that depth. Mr. Heck asked why they did not show the Wai`ohinu well and reservoir site as being phase one since that is already in the DWS' C.I.P. list. Ms. Keehne explained that it is because of engineering and costs. The pipeline cost outweighed the cost to having a well in Ocean View. This will allow the community to incrementally grow with their system and fund things little by little. Mr. Heck asked about the mention earlier of a moratorium on standpipes. Ms. Keehne explained that the moratorium on new meters at South Point is because the infrastructure there is limited. If you cannot even have a house hook -up, you would not be able to have a standpipe. She understood DWS may be studying the South Point system to make improvements, and the situation may change with those improvements. Mr. Heck asked for elaboration on the statement regarding the trench along the road, "shared utilities can cause danger or injury with workers not familiar with other types." The Manager explained that the DWS includes in its standards, trying to have waterlines at least 8 feet away from any other utilities for the safety of DWS personnel. There was previous discussion about putting the waterline in the trench with fiberoptics. Upon further review, it was found that there is a need to place a concrete jacket in between the two to prevent any injury. There is also the possibility of wiping out the entire fiberoptics system, thus the cost to repair. Mr. Heck mentioned the Department's standards and the Board's authority to change policy and asked to have this investigated further in the event that the trench ever becomes available. He also asked if Townscape reconsidered analyzing the population for the final plan and what that reconsideration is. Page 7 of 25 4- 27 -04min (Ocean View).doc Ms. Keehne stated that there is no rule of thumb for them to apply as far as numbers. The community has only indicated it is higher. In the final plan, it will probably be an across - the -board percentage, keeping in mind the number of lots that are in particular areas that are available, which is driving the projection growth because no zoning change is required. She did not feel it changes the next couple of steps that have to happen. What would impact the schedule is how much water is there when the well is drilled. Mr. Wilkins pointed out, from experience, that fiberoptics needs no electricity in the ground. As it is branched off to users, electricity is applied at the surface so there is no electrical hazard between fiberoptic and water pipes. He is also troubled with State Highways continually barring any attempt to put pipelines along their right -of -way, and yet the Board never hears any direct feedback from them. Mr. Kawamura stated that he contacted the State Highways division in Hilo and was referred to their right -of -way branch on Oahu regarding their policy on charging for utility easements. He got no response to his letters; but upon calling, was told that they would take each project on a case -by -case basis. Ms. Scarr reiterated her past suggestion of inviting the Director of the State Highways Department to a Water Board Meeting. Mr. Levin mentioned there needs to be an understanding that Townscape is a private consultant that does not have the authority to demand something of the Director of State Highways, but felt the question can be directed to him to the extent that the County or Mayor's office can be of assistance and will try to help the consultant get the information. RECESS: Mr. Tanaka moved for a 5- minute recess. Recess 11:28 a.m. to 11:33 a.m. Chairman Nakashima opened the floor for more public statements or questions of Townscape. Mr. Nitsche addressed the cost of the pipeline, which they feel is overpriced. They have been told by one of the largest contractors in the State that the waterline, turnkey, can be put in for $400,000 or less per mile (total length is almost eight miles) in a trench, covered up according to current specifications. There has been information from other contractors about highway right -of -way work with State Highways by going through State representatives to make a more practical approach at it instead of hard and fast rules. They feel they can be fact - finders and aid the County in getting this off the ground instead of "hear- say." He reiterated that all they are looking for is a source of water in their community and understand they will have to pay to bring it to their houses. Their idea is a Phase 1, from the existing line, come to South Point tank (only 2.3 miles) and a tank (way up the hill). It is not that big a project, but it would cut the problem in half for the haulers to be able to haul water from South Point instead of from Na`alehu. Phase 2 would be bringing the pipeline down the highway in the trench with the fiberoptics. He added that communications from [Sandwich Isles] indicate their thought to change the route to passing Pahala instead has not been set in concrete). Cutting the ditch is the biggest part of the project, so if this could happen, it would cut the cost way down. Mr. Nitsche also asked about the test well at the highway level and was informed that Mr. Tribble would be covering that a little later in the meeting. He felt that coming up into Ocean View is more expensive. It would mean more depth to drill, bringing a 3 -phase Page 8 of 25 4- 27 -04min (Ocean View).doc powerline to run the pumps, and then run a waterline back down because the community does not want the traffic from trucks loading water, so it will have to be loaded at the highway elevation and supply the business center, which needs water first. He did not think they should jump into the plan for wells until they have it at the highway elevation. According to the study, that line changes at right about the 2,000 -foot elevation where the test well is supposed to go. That could be the logical place to put a well. They need to get concrete facts and the Department needs to get some people working on it; therefore, he suggests they are the ones, to get the facts together to make plans. Mr. Heck asked Mr. Nitsche what would happen if, in fact, there is a delay or moratorium regarding the proposed site at South Point - -if he is recommending to delay all the other phases of water possibilities. Mr. Nitsche replied that there should not be a delay. He thinks the Department should build its well "tomorrow." All they are saying is to move that up to the top of the priority list, and include a 2.3 -mile pipeline to South Point and move the temporary loading area up there (Phase 1). That is not a big item, and they think it is the common sense approach to this. Eventually, you are going to get a pipeline down the highway anyway, but let's do it now. If they had to go through the Legislature again, it would take several years to get the money for a test well. Mr. Heck stated that the point he was trying to make is he believed you could have Priority 1 and another Priority 1. If the action is not happening here as fast as we like, he did not see why we should just wait until that is brought together. We want to finish that whole thing. If it is not possible, he agreed with Townscape's phases that a well up here makes perfect sense to proceed on at the same time. Mr. Nitsche agreed that they are going to need that well too, eventually as this whole community grows; but to get them water in the foreseeable future, the Department's well in Wai`ohinu should be voted up to priority one, and then add on the pipeline to South Point. Mr. Heck asked the Manager to elaborate on the Wai`ohinu project. The Manager stated that the Department is preparing an environmental assessment so it can proceed with land acquisition to drill the well because it does not have land next to the tank (that is State land). Once the environmental assessment is done and the Department gets land from the State by way of executive order, the funds are allotted to drill the well. Mr. Nitsche asked if the Department had room for the production well by its USGS test well above the tank in Wai`ohinu. The Manager explained that if the well were put in that location, the water would have to be pumped up to the Discovery Harbour tank; but if the well it put above the tank, water can be gravity fed to the Discovery Harbour tank. Another factor is pumping efficiency. Mr. Heck pointed out in Mr. Nitsche's letter, second page, they propose that the "...funds from the State, held by Hawaii County, be made available for OVCDC to conduct an engineering study and plan to bring the pipeline to South point..." He asked if that meant they would to the study on their own or that they would help the County. Page 9 of 25 4- 27 -04min (Ocean View).doc Mr. Nitsche replied that they would be happy to do the whole project or work with the County, whatever they can do to help. They realize that the Department is busy already, but they want to get water to Ocean View as soon as possible. Mr. Heck supported that by stating that the Board recognizes the Department just does not have the personnel to effectively do things sometimes and appreciated the community's willingness to help. Mr. Nitsche clarified that they are not asking for the County to just hand over the remaining $250,000.00 from the initial $500,000.00. Those purse strings could be held by the County and given out to them as they request, but he asked for some leeway. They were that confident in the community in 1998 to do the well - -they hired Mr. Bowles and were going to oversee the well going in-- hopefully, they will still have confidence in them. He felt they could do it quicker and at a lesser cost. Ms. Scarr referred once again to Mr. Dennis Lee's presentation on the alternatives for Wai`ohinu and transmission lines and was struck, in the Townscape report, by the options there are to think about extending the Department's current systems versus drilling more stand -alone wells as an option. She is not entirely clear on what the desirability is of phasing in stand -alone wells or phasing in connections. She felt the Board needs to think about that set of alternatives. She asked if Mr. Lee would be willing to make a brief summary of what he had to say on that. Mr. Lee state that when he was asked to look at the alternatives in bringing water to Ocean View and neighboring communities, he looked the end of the system, which is South Point. South Point is actually connected to the main system, which is Wai`ohinu/Na`alehu system. The source at Wai`ohinu, which feeds South Point, is a groundwater source under the direct influence of surface water. Based on that classification, the Environmental Protection Agency says the Department needs to either treat the water by conventional methods or replace it with a well. After looking at the cost of treatment versus establishing a new well and the dependency factors of the surface source (drought), the decision was made to replace the spring source with a well. Looking at the situation with the existing pipeline from Wai`ohinu to South Point and the condition of the pipeline as well as the pipeline materials, the decision was that the Department needed to also replace the pipeline. The project called for not only well development, but also called for the replacement of a transmission line from Wai`ohinu to South Point. In response to Ms. Scarr's question if the transmission replacement project is on the C.I.P. list, Mr. Lee replied it is not. It was part of phasing in. The first thing the Department needed to do was the Wai`ohinu well and reservoir. The transmission line is the second phase. In doing that, staff also took into consideration the needs of Hawaiian Ocean View Estates and surrounding communities. One of the concerns was that they needed to have a water point established - -one large enough to take care of at least three vehicles at a time. In the plan, they included a sufficient or adequate water point such that it could handle the demand for water hauling. The situation in Wai`ohinu at the present time is if there is a drought or the supply is low, the Department would stop all water haulers and send them to Pahala. That is the reason why they looked at not only EPA compliance requirements, but also looked at the drought situations and how it impacted water hauling to Hawaiian Ocean View Estates. Also in that second phase was not only establishing a pipeline from Wai`ohinu to South Point, but also establishing a water point at South Point. That Page 10 of 25 4- 27 -04min (Ocean View).doc would reduce the distance by 8 to 10 miles. He concluded that this is what he had presented to the Water Board and could not recall exactly the cost, but it was about $5 million for each phase. Ms. Scarr stated that she brought this up because the Board never decided on Phase 2 of the presentation. She felt that this keeps getting dropped and that the Board needs to look at its C.I.P. list to see where this fits in the priorities. She thought it should be high on the list in terms of facilitating the development of water in this area. However, this is not in keeping with the Townscape plan, which starts with stand -alone wells; and she hoped to hear discussion as to why we should start with stand -alone wells rather than this project that the Department had presented earlier to the Board. The Manager commented that this area needs to look for a source of its own because the Wai`ohinu well was made specifically to accommodate that area because of the loss of source water under EPA mandates. While there will be some surplus water, the quantity will not be enough to serve Ocean View. Townscape's plan to prove a source in Ocean View is the key factor in the total development of that area. He reiterated that Ocean View cannot rely on a source 12 miles away and needs its own source. Ms. Scarr asked if that is a limitation of the water source or a limitation of the size of the pump that will be put in the well. The Manager replied that it is a limitation of the size of the pump to be put in the well. The well could be drilled so it can produce two million gallons a day; however, another component is a storage reservoir as well as transmission pipeline, thus escalating the price. Ms. Keehne explained that their recommendations go back to what the Manager talked about, but also looked at cost and also growing with the community. Their study looked at "out of the box" ways for the community to fund many of their own projects and not depend on DWS for expansion outside its existing system because of funding constraints. The only feasible option was to do a well here - -the community would not be able to fund the $15 million pipeline from there [Wai`ohinu] to here [Ocean View]. One of the main priorities that was also communicated to them was fire protection for the commercial area. The quickest way for that to happen is a well and run it down to the commercial center. Ms. Scarr asked what happens if the sustainable yield does not prove a good source, then you are left with nothing. Ms. Keehne replied that the only way to find out is to drill, based on Mr. Bowles' calculations. He conducted a very comprehensive study; and when asked by the Mayor how confident he is in his numbers, Mr. Bowles indicated he is very confident there is water in the ground. Mr. Wilkins commented that he has heard a lot of technical information traded this morning and suggested it may be wise for Ocean View to form an ad hoc council or group and offer its services to the DWS in any way it requests. Mr. Nitsche mentioned the fault line at Mauna Loa down to South Point. The test well is needed to get the data for their side of that fault line, but that will take time. In the meantime, it makes sense Page 11 of 25 4- 27 -04min (Ocean View).doc to go from Wai`ohinu to South Point with the waterline; and their community will be looking at other ways of bringing it down the highway. Mr. Ed Bruno Mr. Ed Bruno inquired on the Green Sands Subdivision, located on Ka`alu`alu Road, right below Wai`ohinu Park, a 400 -lot subdivision. He wondered about the moratorium on the water meters. A few lots have them, but have heard there was a halt put on meters. Their concern is also fire protection. They have not been able to get answers. The Manager stated that the Department has had many requests from that subdivision. The Department's waterline is on the main highway. This is similar to Kona Coastview/Wonderview, Paradise Park, and Orchidland. Green Sands has been offered the same type of resolution -- forming an Improvement District with the Department's assistance. Mr. Bruno was advised to contact DWS or their Councilmember for ways to proceed. Chairman Nakashima also suggested that Mr. Bruno contact the Manager at another time regarding his question of meter availability. Mr. Heck suggested that in a future strategic planning meeting of the Board that it get some specific advice and personnel, possibly under a contract basis, to help the Board proceed in this area because there are a lot of communities that want to hook up and some that do not have water at all. Ms. Scarr mentioned that since the Department has a "model" that it has been through- -Kona Coastview/Wonderview. It is just matter of getting key people from Green Sands together with key people in the County -- Milton Pavao, Manager of DWS, Mr. Rory Flynn of the Legislative Auditor's Office, and the Councilmember for the particular area. Ms. Marge Elwell Ms. Marge Elwell, representing from Ocean View down - -one being Mark Twain Estates, congratulated Townscape on its effort in this concise resource material. However, in looking through it, she does not see anything from the Office of Hawaiian Affairs (OHA). Their area of Ka`u is being looked at by OHA on a very large scale. They have over 400 homes coming in to Wai`ohinu and Discovery Harbour. Their growth rate in Discovery Harbour has escalated from 30 to 80 homes started since January of this year and also had 80 lots bought by Hawaiian Home Lands just last month. They have 800 home sites in Discovery Harbour alone. Although only 130 homes exist, it has doubled only in the last four months. They worry about the shallow well because their water pressure in the afternoons is starting to show a change. Also, from attending a Hawaiian Homes meeting, she knew of their plans to acquire land makai of Sea Mountain Estates; and there is no well up there. She asked that somebody investigate what their plans for expansion are. Mr. Heck asked if the C.I.P. list is posted on the internet, noting a lot of public interest in it today. The Manager replied that it is always attached to the Agenda but that he would look into putting it on the website. Page 12 of 25 4- 27 -04min (Ocean View).doc Mr. Fred Thibedeau Mr. Fred Thibedeau addressed the Board. He is a retired well driller and lives in the area. Now that he sees the costs involved in developing well sources, he suggested doing a cost comparison on furnishing water of a lesser quality, perhaps conditioning it to necessary levels, with the cost of deep wells. The reason being that lesser quality waters of between 250 and 700 parts per million might be more cost effective and abundant at the 1,000 -foot and less elevations. Drilling costs are much less, and the type of equipment needed to drill is not as sophisticated. Mr. Kermit Goering Mr. Kermit Goering added that he knew someone in the business of doing transmission lines. He worked with Coluccio Construction, and his name is familiar in Honolulu. Mr. Goering asked his advice about putting in transmission lines. Also, from his experience in putting communication lines in the same trench with water and electric lines, on one occasion, the excavator accidentally tapped into a fiberoptics line and a telephone cable at the same time. It was a disaster; but fortunately, it was on a weekend. When you run into one of those things, it can shut down banks, hospitals, hotels, airports, you never know. He did not think putting a waterline in the same trench is a good idea. He also learned the price of putting transmission line down the highway is very costly because you have to pay truck drivers to haul stuff away and bring it back. The numbers in Townscape's plan are probably realistic - -he was told it would be around $365 to as much as $600 a foot. In that case, you should consider coming across the Park. You would not have to worry about trucks to haul stuff away. Any leftover stuff you could probably use to fill in holes, etc. Plus we would be giving them fire - fighting capabilities. B. UNITED STATES GEOLOGICAL SURVEY (USGS) DRILLING PROGRAM: Mr. Gordon Tribble of the USGS handed out a map of the southern part of the Big Island. He informed members of the audience that it is his intention to come back at some evening meeting to give a discussion to the full community. Mr. Tribble gave the Board some background on the drilling rig cooperative program and updated its status at Kaneoha. They had drilled to 1,500 hundred feet, had to shut down for repairs, and are now at 1,300 feet due to some blockages. This is as of last week, and the next couple hundred feet should go quickly and hopes to finish there in a month or so. He reviewed steps taken to improve the performance of the rig. The people that run the rig are working very hard. Mr. Tribble sees to it that they are provided with what they need to get the job done; however, he stressed that he cannot push them any harder - -they are already doing everything they possibly can to get the job done. Mr. Tribble called the Board's attention to the map wells registered with the State index. Some of the high -level water sources above Pahala area are not shown. On the map, the numbers in blue represent the water level in the well when it was first drilled in height above sea level. Numbers in green show the salinity of the water when it was first drilled, in parts per million (ppm) in chloride. EPA's suggested limit for drinking water is 250 ppm. Looking at water levels, the map shows a well at the bottom of South Point with a 2 -foot level; going farther up you see a 7 -foot level, and then a 240 -foot level, and on to a 436 -foot level (at the South Point tank site). Going over towards Wai`6hinu, you see a 1,000 -foot water level; and again towards Na`alehu, you see a 10 -foot level Page 13 of 25 4- 27 -04min (Ocean View).doc posted. These all indicate something complex underground that is allowing water to build up to high elevations somewhere in that vicinity. How far that goes is more or less speculative. Looking over towards Ocean View, there are two wells makai of where this Community Center stands - -one with an 8 -foot water level and the other with a 10 -foot level. Salinity in the 10 -foot level well is above EPA suggested level. The red dot at the highway is where USGS proposes to drill its test well. If you look up the coast again, you see there are only two wells they have records for; and neither are at very high elevations or look promising for water sources. That is why they are drilling this well - -it is a real unknown. Another reason for drilling at the highway is because of the drill rig's depth capability. There are good reasons to believe there is high -level water in this vicinity, but how far mauka you have to go to reach it is somewhat speculative. What will be learned from this exploratory well are water levels and water salinity. What they will not learn are the hydraulic properties of the aquifer around the well. That is a critical piece of information that is needed when designing a well. Whether this well would suffice for a test well in the area or not depends on legal and engineering requirements for a test well. They will not be able to put a pump in this well and conduct a standard aquifer test due to the well's diameter. Mr. Wilkins asked the following: 1. South Point well notation at 436 feet shows no notation on chloride content. Were such measurements made? If that reservoir turns out to be large, he thought the juncture of South point Road with the Volcano Highway would be an excellent point for a well that would save several miles of piping. Mr. Tribble indicated that is probably data that has been collected but did not make it into the State database. He pointed out that the difference in elevation between that well and the one in Wai `ohinu would mean pumping costs would be a lot less. 2. In the Ocean View test well, could you bring up samples of water so you could figure out, without pumping, what the original salinity level was? Mr. Tribble indicated they could put a bailer down the well and get a sample. Mr. Heck asked about getting information from the sources of other wells in the region, pointing out that there are other wells in the region that are not listed here. Mr. Tribble answered that they are always interested in new information and would be willing to contact such sources if they knew where they were. He pointed out, though, that people are under no obligation to share information with the USGS. Mr. Heck stated that it is not clear to him and asked what the benefit is and what the cost is of this program. The Manager explained the original intent when the program was started was there several areas on the island where there was only a hunch water was there, but were not certain. The benefit is if it is determined a good area, the Department makes good use of the money spent to do the actual drilling, preventing "dry holes." Ms. Scarr asked about the lower level versus upper level wells. Mr. Thibedeau referred to the relative cost of drilling shallow wells as opposed to higher elevation wells. In particular, what would the relative cost be, if the shallow wells were found not acceptable for potable consumption, for treating by reverse osmoses versus the cost of drilling deeper wells. Page 14 of 25 4- 27 -04min (Ocean View).doc The Manager replied that if that time comes, the Department would need to do a cost analysis between the two. Several things factor in such as elevation differences, energy costs, and how many booster stations are needed. Mr. Wilkins was struck that the well shown a 1,436 feet is at almost the same elevation as the well planned by USGS in Ocean View so there would be no uphill for water transmitted over that distance whether carried by truck or by pipeline. Mr. Tribble responded that if they hit water at 400 feet above sea level here, he will be ecstatic. He added that the wells at Wai`6hinu and at South Point were both drilled by USGS as part of this exploratory program several years ago, as were some of the earlier wells that characterized the high -level body in Kona. The intent of the program is although $200,000.00 is a lot of money, it is cost effective in terms of exploration. He realized there has been frustration that these wells cannot be used for public consumption, but that is one of the limitations. Ms. Scarr asked what the plans are for the drill rig, whether it would be replaced by one that will drill effectively at more than 1,000 feet. Mr. Tribble replied that from discussions with the three water managers that participated in the program, they are at a crossroads. We can phase it out, continue to use the rig with its depth capability, or purchase a new rig. Consensus was the rig will go to Maui next, and they do not have a need for deep wells. Kauai felt they would continue in the program on a limited basis, but Big Island was not sure it had a need to continue participating after this phase. The Manager added that this Department will participate in the repair costs for this rig but will not continue with the program because of its capacity to only go up to 1,000 feet, which would be of no benefit. This Department will pull out of the program after the Ocean View test well is completed. Mr. Tanaka asked for summarization what looks like three projects going on simultaneously - -the USGS test well, the Wai`6hinu Production Well, and possibly the well mentioned by Townscape. For a timing standpoint, he asked Mr. Tribble for a best guess to complete the Ocean View test well (Mr. Tribble estimated 4 months); and to the Manager for Wai`6hinu (Manager estimated two months to secure the land with the State, another 4 to 6 months for design, and approximately 8 to 9 months for construction.) In response to Mr. Wilkins' question about whether the well drilling will continue until the well is completed, Mr. Tribble replied that it will, barring a major structural failure in the rig or a change in priorities by the Board; and they intend to go at it because they feel it is a very important piece of information. Mr. Tribble added one more note that the USGS has a priority in its future but not in the planning stage yet, and that is to do a reassessment of islandwide water resources on this island. The last one was done by Stearns & McDonald in the mid 1940's. This island, of all the islands, is most in need of one; and they have had conversations with Mr. Donald Thomas of the University of Hawai'i, who has made a presentation to the Board in the past about drilling deep wells, and others on getting something started. If anything like that does come about, he will notify the Board. SOUTH HILO: Page 15 of 25 4- 27 -04min (Ocean View).doc B. JOB NO. 99 -754, PUAPUAA 2.0 MG CONCRETE RESERVOIR: The Board considered a request of contract time from Willocks Construction Corporation of 122 calendar days due to a drainage problem at the entry of the access road. This would be the second time extension to the contract. Engineering staff has reviewed the request and confirmed with DPW, and subsequently, finds that the 122 calendar days are justified for a time extension to the proj ect. The Manager recommended that the Board grant this extension of contract time of 122 calendar days to Willocks Construction Corporation for JOB NO. 99 -754, CONSTRUCTION OF PUAPUAA 2.0 MG CONCRETE RESERVOIR. If approved, the contract completion date will be extended from March 30, 2004, to July 30, 2004. ACTION: Mr. Mochida moved for approval of the Manager's recommendation; seconded by Mr. Tanaka and carried unanimously by voice vote. HAMAKUA: A. JOB NO. 95 -621, POHAKEA WATER SYSTEM IMPROVEMENTS: The Board considered a request for extension of contract time from Willocks Construction Corporation for 91 calendar days due to delays as stated in their request. This would be the fourth time extension to the contract. Engineering staff has reviewed the request and finds that the 91 calendar days are justified to complete the remaining portions of the project. The Manager recommended that the Board grant this extension of contract time of 91 calendar days to WCC. If approved, the contract completion date will be extended from April 30, 2004, to July 30, 2004. ACTION: Mr. Tanaka moved for approval of the Manager's recommendation; seconded by Mr. Heck and carried unanimously by voice vote. SOUTH KOHALA: A. JOB NO. 97 -684, CONSTRUCTION OF THE PUUKAPU- NIENIE BOOSTER PUMP STATION NO. 1 & NO. 2 REPLACEMENT: The Board considered a contract time extension request from Dick Pacific Construction Company, Ltd., of 78 calendar days. The Manager recommended that the Board grant Dick Pacific Construction Company, Ltd., a 78- calendar day extension for JOB NO. 97 -684, CONSTRUCTION OF THE PUUKAPU - NIENIE BOOSTER PUMP STATION NO. 1 & NO. 2 REPLACEMENT, from May 13, 2004, to July 30, 2004. ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by Mr. Tanaka and carried unanimously by voice vote. Page 16 of 25 4- 27 -04min (Ocean View).doc B. INDEMNIFICATION AGREEMENT -THE HIGH BLUFFS AT MAUNA KEA COMMUNITY ASSOCIATION: As a condition of a gated community, an indemnification agreement between the Water Board/ Department of Water Supply and The High Bluffs at Mauna Kea Community Association, has been submitted. The Agreement specifies the conditions of indemnification, in consideration for the maintenance and operations of the water system within this gated community in South Kohala. The Manager recommended that the Board approve this agreement, subject to the approval of the Corporation Counsel and that either the Chairman or the Vice - Chairman be authorized to sign the document. ACTION: Mr. Tanaka moved for approval of the Manager's recommendation; seconded by Mr. Heck and carried unanimously by voice vote. NORTH KONA: A. JOB NO. 2001 -790, KONA COASTVIEW/WONDER VIEW SUBDIVISION WATER SYSTEM IMPROVEMENTS: Bids were opened on April 7, 2004; and following are the bid results: Bidder Amount Isemoto Contracting Company, Ltd. 4,942,024.00 Goodfellow Brothers, Inc. 5,795,806.00 Jas. W. Glover, Ltd. 5,888,560.90 Kiewit Pacific Co. 6,940,582.00 Project Scope: The project consists of furnishing and paying for all labor, materials, tools and equipment necessary for constructing the following: Two 0.10 M.G. Reinforced Concrete Reservoir and Site Improvements, including, but not limited to excavation, embankment, concrete work, paving, metal work, inlet controls, painting, site work, planting, trenching, backfill, ductile iron pipelines, miscellaneous piping, valves, fittings, air relief valve units, meter boxes and meters, chlorination, electrical work, and all necessary incidentals and appurtenant work, in place complete, all in accordance with the plans and specifications, and ready for operation as intended. • 8 -inch, 6 -inch, and 4 -inch Ductile Iron Pipelines, including but not limited to, trenching, backfill, miscellaneous piping, gate valves, valve boxes, fittings, air relief valve units, clean out units, thrust blocks, chlorination, and all incidentals and all appurtenant work necessary, in place complete, all in accordance with the plans and specifications, and ready for operation. • Pressure Reducing Valve Units. • Service Laterals and appurtenances. Page 17 of 25 4- 27 -04min (Ocean View).doc • Fire Hydrants and appurtenances. Project Cost: 1. Low Bidder (Isemoto Contracting Company, Ltd.) $4,942,024.00 2. Construction Contingency (10 %) 494,200.00 Total Construction Cost: $5,436,224.00 Funding for this project will be from the USDA's Rural Utilities Service Water and Waste Water Loan and Grant program and County G.O. Bonds (Loan - $2,776,400, Grant - $1,823,600 and Total $4,600,000; remainder from the County of Hawai`i). The contractor will have 480 calendar days to complete this project. The Manager recommended that the Board award the contract for JOB NO. 2001 -790, CONSTRUCTION OF KONA COASTVIEW/WONDER VIEW SUBDIVISION WATER SYSTEM IMPROVEMENTS, to the lowest responsible bidder, Isemoto Contracting Company, Ltd., for their bid amount of $4,942,024.00 plus $494,200.00 in construction contingency for a total contract amount of $5,436,224.00, subject to review as to form and legality of the contract by Corporation Counsel and the acceptance by the Hawaii County Council and homeowners of the Improvement District Assessment amount. MOTION: Mr. Tanaka moved for approval of the Manager's recommendation; seconded by Mr. Wilkins. In response to Mr. Tanaka's question of what the waterline linear footage is, the Manager replied he could not recall offhand but mentioned that it is available at the office for anyone who wishes to look at it. In response to a question on the bid being over budget, the Manager explained that Rural Development was able to come up with another $900,000.00 in loan amount, which leaves it $600,000.00 short. The County will try to float separate bonds to make that up. Mr. Wilkins noted that Isemoto Contracting Company, Ltd., is in line for award of both this project and the one following on the Agenda, Waiaha Production Well. He asked if the Department is confident they can handle both jobs at the same time. The Manager replied there was no question in his mind they could manage both jobs. He added for clarity before the vote was taken that this award of contract is contingent on the public accepting the figures that will be presented to them at a future public hearing. If they do not accept the figures, then this award will be null and void. (The Board understood this condition.) ACTION: A vote was taken on the Motion to award the contract for JOB NO. 2001 -790, CONSTRUCTION OF KONA COASTVIEW/WONDER VIEW SUBDIVISION WATER SYSTEM IMPROVEMENTS, to the lowest responsible bidder, Isemoto Contracting Company, Ltd., for their bid amount of $4,942,024.00 plus $494,200.00 in construction contingency for a Page 18 of 25 4- 27 -04min (Ocean View).doc total contract amount of $5,436,224.00, subject to review as to form and legality of the contract by Corporation Counsel and the acceptance by the Hawaii County Council and homeowners of the Improvement District Assessment amount. Motion was carried unanimously by voice vote. B. JOB NO. 2001 -785, CONSTRUCTION OF THE WAIAHA PRODUCTION WELL AND 2.0 MG RESERVOIR: Bids were opened on April 15, 2004; and following are the bid results: Bidder Isemoto Contracting Company, Ltd. Unlimited Construction Services, Inc. Jas. W. Glover, Ltd. Kiewit Pacific Company Robison Construction Inc. Amount $4,365,307.00 $4,515,490.41 * $4,967,328.00 $5,581,040.00 $5,695,128.00 * * Indicates corrected total. Project Scope: This project consists of installing a 1,400 - gallon per minute well pump, constructing a 2.0- million gallon water storage reservoir and connecting waterlines, sewage vault, pump controls, installing chlorination equipment, constructing a control building, constructing miscellaneous site improvements, and demolishing /removing existing water treatment plant facilities at the project site. Project Cost: 1) Low Bidder (Isemoto Contracting Company, Ltd.) $4,365,307.00 2) Construction Contingency (12 %) 523,833.00 Total Construction Cost: $4,889,140.00 Funding for this project will be from the Department of Water Supply's Capital Improvement Project (C.I.P.) budget. The contractor will have 360 calendar days to complete this project. The Manager recommended that the Board award the contract for JOB NO. JOB NO. 2001 -785, CONSTRUCTION OF THE WAIAHA PRODUCTION WELL AND 2.0 MG RESERVOIR, to the lowest responsible bidder, Isemoto Contracting Company, Ltd., for their bid amount of $4,365,307.00 plus $523,833.00 in construction contingency for a total contract amount of $4,889,140.00, subject to review as to form and legality of the contract by Corporation Counsel. MOTION: Mr. Wilkins moved for approval of the Manager's recommendation; seconded by Mr. Goya. Mr. Wilkins asked if this Waiaha output will be connected into the existing system and if any of it will be brought down the hill to help supplement the Kahaluu wells and also if the Board should expect to see another contract addressing transmission of the water. Page 19 of 25 4- 27 -04min (Ocean View).doc The Manager replied that this well will be able to put water into the 8 -inch waterline on the Mamalahoa Highway; and as reported at earlier meetings, the Department is in negotiations for a corridor to bring the water down the hill and reach Hienaloli Road. There will be some improvements necessary along Mamalahoa Highway -- upgrade to 16 -inch waterline. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. KA`U: A. SOUTH KONA — KA`U WATER MASTER PLAN: Taken up earlier. B. UNITED STATES GEOLOGICAL SURVEY (USGS) DRILLING PROGRAM: Taken up earlier. 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 Keahole View Subdivision, Increment 2 E.W.O. NO.: 2002 -137 Grantors: Kim A. Maier and Carol L. Maier TMK: (3) 7 -3 -003: 005 Lots: 10 Zoning: A -la Facilities Charge: $39,150.00; CAF: $4,500.00 Final Inspection Date: August 7, 2003 Water System Cost: $47,700.00 2. GRANT OF EASEMENT AND BILL OF SALE PUALANI ESTATES SUBDIVISION, PHASE I (Phased Construction Plans) E.W.O. NO.: 2003 -004 Grantor: D. R. Horton - Schuler Homes, LLC TMK: (3) 7- 5- 017:028 & 029 Lots: 31 Zoning: RS -7.5 Facilities Charge: Paid (Portion of 302 Units) Final Inspection Date: April 19, 2004 Water System Cost: $76,069.00 Page 20 of 25 4- 27 -04min (Ocean View).doc The Manager recommended that the Water Board accept these documents subject to the approval of the Corporation Counsel and that either the Chairman or the Vice - Chairman be authorized to sign the documents. ACTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Mochida and carried unanimously by voice vote. B. SURVEY AND EXPLORATION RIGHT -OF- ENTRY: The Department of the Army is asking for an irrevocable right to enter upon our Tank and Well Site at any time within a period of ONE (1) year from the date of this instrument, in order to survey, make test borings, and carry out such exploratory work. This is for Tax Map Key (3) 6 -2- 001: 0061 ( "Kawaihae Tank & Well Site). This site is a portion of the Army's maneuver area during World War II. They will survey, explore and investigate possible unexploded ordnance left in the area. The Manager recommended that the Water Board grant this Survey and Exploration Right -of -Entry subject to the approval of the Corporation Counsel and that either the Chairman or the Vice - Chairman be authorized to sign the document. ACTION: Mr. Tanaka moved for approval of the Manager's recommendation; seconded by Mr. Wilkins and carried unanimously by voice vote. C. MATERIAL BID NO. 2004 -01, FURNISH BASE COURSE, SAND, COLD MIX, PORTLAND CEMENT, QUIKRETE, AND NO. 3F ROCK TO THE DEPARTMENT OF WATER SUPPLY: Bids were opened on April 14, 2004; and the results were enumerated in the Agenda. The Manager recommended that the Board award the contract for MATERIAL BID NO. 2004 -01, FURNISH BASE COURSE, SAND, COLD MIX, PORTLAND CEMENT, QUIKRETE, AND NO. 3F ROCK TO THE DEPARTMENT OF WATER SUPPLY, by Parts to the following for the amounts shown above and subject to review as to form and legality of the contract by Corporation Counsel: District I — Parts A, B, C, D, E, H, I, and J - to Jas. W. Glover, Ltd. District II — Part H to Grace Pacific Corporation District III — Parts H and I to Grace Pacific Corporation. For the Parts where no bids were received, staff shall obtain quotations in the best interest of the Department. The contract period shall be from July 1, 2004, to June 30, 2005. ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by Mr. Tanaka and carried unanimously by voice vote. D. GASOLINE BID NO. 2004 -04, FURNISHING AND DELIVERING GASOLINE AND DIESEL TO THE DEPARTMENT OF WATER SUPPLY: One bid was received and opened on April 15, 2004; and the results were enumerated in the Agenda. The Manager recommended that the Board award the contract for GASOLINE BID NO. 2004 -04, FURNISHING AND DELIVERING GASOLINE AND DIESEL TO THE Page 21 of 25 4- 27 -04min (Ocean View).doc DEPARTMENT OF WATER SUPPLY, to Hawaii Petroleum, Inc., for Parts A, B, and C, for the amounts shown above and subject to review as to form and legality of the contract by Corporation Counsel. The contract period shall be from July 1, 2004, to June 30, 2006. ACTION: Mr. Mochida moved for approval of the Manager's recommendation; seconded by Mr. Tanaka and carried unanimously by voice vote. D. WATER TREATMENT BID NO. 2004 -02, A - FURNISHING AND DELIVERING LIQUID CHLORINE TO VARIOUS LOCATIONS IN THE ISLAND OF HAWAII (ON AN AS- NEEDED BASIS); B - FURNISHING AND DELIVERING LIQUID AMMONIA TO WAIMEA WATER TREATMENT PLANT, DISTRICT OF SOUTH KOHALA (ON AN AS- NEEDED BASIS); AND C - FURNISHING AND DELIVERING 50% LIQUID CAUSTIC SODA TO WAIMEA WATER TREATMENT PLANT, DISTRICT OF SOUTH KOHALA (ON AN AS- NEEDED BASIS): One bid was received and opened on April 21, 2004; and the results were enumerated in the Supplemental Agenda. The Manager recommended that the Board award the contract for WATER TREATMENT PROPOSAL NO. 2004 -02, PART A - FURNISHING AND DELIVERING LIQUID CHLORINE TO VARIOUS LOCATIONS IN THE ISLAND OF HAWAII (ON AN AS- NEEDED BASIS) AND PART C - FURNISHING AND DELIVERING 50% LIQUID CAUSTIC SODA TO WAIMEA WATER TREATMENT PLANT DISTRICT OF SOUTH KOHALA (ON AN AS- NEEDED BASIS), to Phoenix V LLC dba BEI Hawaii at the unit prices listed above for the period from July 1, 2004, through June 30, 2006, subject to review as to form and legality of the contract by Corporation Counsel. For Part B where no bid was received, staff shall obtain quotations in the best interest of the Department. ACTION: Mr. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Wilkins and carried unanimously by voice vote. F. PROPOSED TABLE OF ORGANIZATION — OPERATIONS DIVISION The Operations Division proposes several new positions to the current Table of Organization that was funded under this fiscal year 2003/2004. They are the following: Customer Service Representative I Office help in Waimea with customer service functions Customer Service Representative I Office help in Kona with customer service functions Meter Reader As- needed position in Ka`u for meter reading functions Water Plant Electrician Mechanic As- needed position in Ka`u for Plant maintenance functions The current budget allocates $60,080.00 for the above positions. The Manager recommended that the Board approve of the proposed additions for the four (4) new positions in the Operations Division -- Customer Services Representative I in both Kohala and Kona Districts, Meter Reader (Temporary As Needed), and Water Plant Electrician Mechanic (Temporary As Needed), both in the Ka`u District. Page 22 of 25 4- 27 -04min (Ocean View).doc MOTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by Mr. Tanaka. Mr. Wilkins commented that he had hoped to see an engineering position in here, but was glad the Department is putting more people into the bottlenecks the Board has been hearing about. The Manager stated that it is a double -edged sword in a sense that you cannot just keep adding personnel. You have to make sure the current personnel remains efficient. Ms. Scarr recalled previous discussion about retraining the meter readers for customer service positions after going to automatic meter reading. The Manager stated that the meter readers are currently going out in the field with the hand -helds and are in the process of moving forward. When the number of necessary meter readers is reduced, then they can be retrained for customer service. Responding to Mr. Heck's question about engineering positions, the Manager replied that the positions are on the Table of Organization and are approved, but they are not occupied. Ms. Scarr suggested thinking about adding a person to help substandard subdivisions deal with Improvement Districts -- someone who could walk them through the process. Mr. Lee replied that a position to that effect is already staffed at the Legislative Auditor's Office. Improvement Districts have nothing to do with the DWS, only that the DWS may get involved after the fact if water is involved. Ms. Scarr added that we need to let people know that. Mr. Lee stated that the starting point is with the Legislative Auditor's office, and the Ordinance falls within the County Council's power. The Manager added that if the Board knows of anyone who wants information, they may refer the calls to him and he could point them in the right direction. Mr. Heck stated that testimony today showed there was difficulty in this area in getting their CFD together -- trouble with communication, confusion, etc. If they had been pointed in the right direction, perhaps they could have gotten it together and obtained the 5% more votes they needed. There needs to be more overt help from the County with organizations like OVCDC. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. G. MONTHLY PROGRESS REPORT: Questions were asked about lagging projects, keeping on budget schedule, and when the new five -year C.I.P. budget will be prepared. The Manager indicated it will be part of R. W. Beck's 5 -year study. H. MONTHLY FINANCIAL REPORT: Page 23 of 25 4- 27 -04min (Ocean View).doc The Finance Division's contract with Harris Computers was mentioned. Ms. Garson will explain the status at next month's meeting during Executive Session. I. MANAGER'S REPORT: 1. Kona Coastview/Wonderview Status - discussed earlier. 2. AWWA National Conference, June 13 -17, 2004, Orlando, Florida -please finalize plans with staff. 3. AWWA Hawai'i Section Conference, Ilikai Hotel, Honolulu - May 12 to 14, 2004 - please finalize plans with staff. REPORTS BY SUBCOMMITTEES: 1. Report of the Financial Subcommittee - Mr. Takana announced that Mr. Goya has volunteered to serve, along with himself and Ms. Scarr. Ms. Scarr reported on research she had done on a possible resource. She suggested a conference call with the person based in California that R. W. Beck had mentioned last month. The Manager pointed out a memorandum from the County Treasurer that was handed out today as to what our role is in investments. According to the memo, Charter provides that the County Treasurer invests for the Department. Mr. Tanaka suggested getting financial advice from this outside source and make recommendations to the County Finance Department. He noted the last page of the memo indicates "with approval of the Board's Chairman." To him, that indicates the Board has some input. The Board should find more creative ways to invest. Another note, the possibility of collaborating together with the community, the Mayor's Office, the Board, and the Department and possibly seeking funds again from the Legislature. He questioned the Board if the subcommittee would want to be involved in that effort. Mr. Goya and Ms. Scarr agreed. 2. Report of the Kona Water Quality Subcommittee - The Manager stated a press release was prepared by staff and passed by the Department of Health for comments. They had some minor comments, and what was handed out today was pretty much ready to go to the press. He wanted to give the Board a chance to see it before it goes out. The Deputy Manager added that he spoke with the Department's Water Quality and Assurance Branch about additionally mailing this notice out as an insert to the water bills to the customers involved. Comments from the Board on the press release followed: • Mr. Goya suggested attaching a map since not everyone is familiar with locations. • Ms. Scarr applauded the Department's effort in preparing this and agreed with mailing it out as well as taking out an advertisement. She suggested adding information to the notice about upcoming projects addressing the water system ( Waiaha Production Well). The Manager cautioned against that because the corridor to bring Waiaha water down to Hienaloli is not a certainty. • Mr. Wilkins suggested arranging to meet with a reporter from West Hawaii Today and respond to that person's questions as to what will be of greatest interest to the public. That could cut down a lot of expense. • Mr. Heck suggested sending it to the community health centers and individual physicians in the area (check the telephone directory). K. CHAIRMAN'S REPORT: None Page 24 of 25 4- 27 -04min (Ocean View).doc L. CONTRACTS TECHNICIAN: With the increasingly more stringent State Procurement requirements for contracting, the Department is proposing to create a new position, a Contracts Technician, to ensure compliance. Currently, the Department depends on its secretaries and engineers in processing contracts. The Contracts Technician will serve as the Department's central coordinator for the processing of contracts. This will enable efficient coordination and communication among staff, the Office of Corporation Counsel, other departments, and the vendors. The position will be in a Contracts Services Branch in Administration as shown in the attached chart of the Department's Table of Organization. The Manager recommended that the Water Board approve the creation of the Contracts Technician and the corresponding amendments to the Department's Table of Organization. ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by Ms. Scarr and carried unanimously by voice vote. ANNOUNCEMENTS: A. Special Water Board Meeting: Wednesday, April 28, 2004, 10:00 a.m., in the Hilo Operations Center Conference Room (Mr. Mochida suggesting that holding meetings two days in a row is very difficult for those on the Board who have businesses.) B. Next Regular Water Board Meeting: The next Water Board Meeting will be held on Tuesday, May 25, 2004, 10:00 a.m., in the Royal Kona Resort, Discovery Room. (Ms. Scarr asked for an Agenda item on the May 25, 2004, Water Board Meeting -- Private Water Systems. Comments may be sent to Corporation Counsel.) STATEMENTS FROM THE PUBLIC No further public statements. ADJOURNMENT ACTION: Mr. Wilkins moved for adjournment of the meeting; seconded by Mr. Heck and carried unanimously by voice vote. Meeting adjourned at 1:28 p.m. Secretary The Department of Water Supply is an Equal Opportunity provider and employer. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, Room 326 -W, Whitten Building, 14a` and Independence Avenue, SW, Washington DC 20250 -9410. Or call (202) 720 -5964 (voice and TDD) Page 25 of 25 4- 27 -04min (Ocean View).doc