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Home My WebLink About2022-06-28 Water Board AgendaDEPARTMENT OF WATER SUPPLY COUNTY OF HAWAI`I WATER BOARD MEETING AGENDA MEETING DATE: June 28, 2022 TIME: 10:00 a.m. PLACE: Liquor Control Conference Room, Hilo Lagoon Centre, 101 Aupuni Street, Room 230, Hilo, Hawaii Due to the expiration of Governor Ige's COVID-19 Emergency Proclamation, members of the public are encouraged to continue face masking, physical distancing, and sanitizing, as outlined in the County of Hawaii Coronavirus Best Practices, Living with Coronavirus in our Community. Public testimony may be done in person or in writing by email (dws@hawaiidws.org), fax (808-961-8657), or by mail: 345 Kekuana5'a Street, Suite 20, Hilo, HI 96720. Please indicate agenda item submitting for. All testimony, regardless of time of receipt, will be part of the permanent record. 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 May 24, 2022, Water Board Meeting • Minutes of the May 24, 2022, Public Hearing on the Proposed Water Rates • Minutes of the May 25, 2022, Public Hearing on the Proposed Water Rates 4) APPROVAL OF ADDENDUM AND/OR SUPPLEMENTAL AGENDA (if necessary) (Note: Roll Call Required) 5) WATER RATE STUDY: The current contract with the consulting firm of Harris & Associates is to determine water rates for the Department for the Fiscal Year 2023 to Fiscal Year 2027 periods. The proposed water rates for Fiscal Year 2023 and Fiscal Year 2024 under the existing rate structure, is an increase of 9.5% each year for the consumption and standby water rates. Proposed water rates for subsequent years would include evaluation of other rate structure options that were previously discussed with the Water Board. The Water Board conducted public hearings on the water rates on May 24, 2022, 6:00 p.m., Hawaii Standard Time, at the West Hawaii Civic Center, Building G, 74-5044 Ane Keohokalole Highway, Kailua-Kona, Hawaii, and May 25, 2022, 6:00 p.m., Hawaii Standard Time, at the Aupuni Center Conference Room, 101 Pauahi Street, Suite 1, Hilo, Hawaii, to accept testimony on the proposed rate increases. There were no public testimony at these meetings; and the public hearings concluded after the presentations by the Harris & Associates consultant team, Ann Hajnosz and Karyn Johnson. Page 1 of 9 June 28, water Board Agenda RECOMMENDATION: The Department recommends that the Board approve proposed water rate increases of 9.5% each year, for Fiscal Year 2023 and Fiscal Year 2024 under the existing rate structure for the consumption and standby water rates, to be effective July 1, 2022, and July 1, 2023. 6) POWER COST CHARGE: Departmental power costs from all power sources increased since the last Power Cost Charge rate was determined. The Department proposes to increase the Power Cost Charge from $2.34 to $2.48 per thousand gallons as a result of this increase. Power cost charges over the past two years were as follows: Effective PCC May 1, 2022 $2.34 March 1, 2022 $2.02 November 1, 2021 $2.15 June 1, 2021 $1.85 December 1, 2020 $1.71 August 1, 2020 $2.01 A Public Hearing will have been held prior to this Board meeting to accept public testimony on this change. RECOMMENDATION: It is recommended that the Board approve the increase of the Power Cost Charge from $2.34 to $2.48 per thousand gallons, effective July 1, 2022. 7) NORTH KOHALA: JOB NO. 2016-1045, CONSTRUCTION OF THE HALA`ULA WELL DEVELOPMENT - PHASE 2 - REQUEST FOR TIME EXTENSION: The contractor, Goodfellow Bros., LLC, is requesting a time extension of an additional 92 calendar days to obtain the Pump Installation Permit and subsequently complete the installation of the pump equipment and piping. The completion of the project will also depend on the completion of Hawaiian Electric power being installed to the well site. Ext. From (Date) To (Date) Reason (Ca eBays 1 7/31/2021 7/31/2021 255 Excess delays due to land ownership changes and lack of site access. Delay in receiving the pump installation 2 11/18/2020 11/30/2021 122 permit from the Commission on Water Resource Management CWRM). 3 11/30/2021 2/28/2022 90 Delay in receiving the pump installation ermit from CWRM. Delay in receiving the pump installation 4 2/28/2022 6/30/2022 122 permit from CWRM and power from Hawaiian Electric. Delay in receiving the pump installation 5 6/30/2022 9/30/2022 92 permit from CWRM and power from Hawaiian Electric. Total Days(including this request) 681 Page 2 of 9 June 28, Water Board Agenda The contractor has not received the Well Pump Installation Permit which is required to begin the installation of the pump. Hawaiian Electric has begun installing power lines up Hala`ula-Maulili Road to bring power to the well and reservoir site. These delays are beyond the control of the contractor. Staff reviewed the request for the contract time extension and finds the request for the additional 92 calendar days to be acceptable. Note: There are no additional costs associated with this time extension. RECOMMENDATION: It is recommended that the Board approve a contract time extension of 92 calendar days to Goodfellow Bros., LLC, for JOB NO. 2016-1045, CONSTRUCTION OF THE HALA`ULA WELL DEVELOPMENT - PHASE 2. if approved, the contract completion date will be revised from June 30, 2022, to September 30, 2022. MISCELLANEOUS: A. DEDICATIONS: 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. Bill of Sale Sellers: Dennis Akamine and Kevin Iwasaki Tax Map Key (3) 2-5-009:021 Pi`ihonua, South Hilo, Island of Hawaii, Hawaii Facilities Charge: $6,095.00, Date Paid: 06/01/2022 Final Inspection Date: 05/27/2022 Water System Cost: $55,000.00 2. Grant of Easement and Bill of Sale Grantors: Diane O. Ito, Rockwell Okada, Guylon Okada and Clint Okada SUB-05-000182 Tax Map Key (3) 6-4-031:005 & 006 Pu`ukapu, Waimea, South Kohala, Island of Hawaii, Hawaii Facilities Charge: $73,140.00, Date Paid: 02/24/2021 Final Inspection Date: 06/03/2021 Water System Cost: $183,500.00 3. Second Amendment of Grant of Non -Exclusive Easement and Bill of Sale Grantor/Seller: State of Hawaii, Department of Transportation Tax Map Key (3) 7-3-043:003 (portion) Kalaoa 1st- 4' , North Kona, Island of Hawaii, Hawaii Facilities Charge: $6,095.00, Date Paid: 06/08/2022 Final Inspection Date: 01 /11 /2021 Water System Cost: $174,955.00 4. Bill of Sale Seller: Hilo International Airport Tax Map Key (3) 2-1-012:009 portion Waiakea, South Hilo, Island of Hawaii, Hawaii Facilities Charge: n/a, Date Paid: n/a Final Inspection Date: 06/07/2022 Water System Cost: $926,174.00 Page 3 of 9 June 28, Water Board Agenda 5. License Easement No. 511A Amendment (Non -Exclusive Right) Licensor: Department of Hawaiian Home Lands Tax Map Key (3) 1-5-010:004 & 003 Maku`u, Puna, Island of Hawaii, Hawaii Facilities Charge: $166,388.04, Date Paid: To be announced Final Inspection Date: 05/26/2022 Water System Cost: $625,000.00 RECOMMENDATION: It is recommended that the Water Board accept these documents subject to the approval of the Corporation Counsel and that either the Chairperson or Vice -Chairperson be authorized to sign the documents. B. SERVICE CONTRACT NO.2021-03, WATER RATE STUDY, FY22 - FY27- CHANGE ORDER TO THE CONTRACT: The current contract with Harris & Associates is to determine the Department's water rates for the periods of Fiscal Year 2023 through Fiscal Year 2027. The proposed water rates for Fiscal Year 2023 and Fiscal Year 2024, under the existing rate structure, includes an increase of 9.5% each year for the consumption and standby water rates. Proposed water rates for subsequent years would include evaluation of other rate structure options that were previously discussed with the Water Board. The purpose of this change is to prepare the additional rate structure analyses requested by the Department of Water Supply for implementation during the July 1, 2024, through June 30, 2027, time period. The proposed cost for this change would be an additional $105,662.00, which increases the contract amount from $117,000.00 to $222,662.00. The proposed schedule would also extend the current contract duration with a revision of the completion date from June 2023 to September 2024. RECOMMENDATION: It is recommended that the Board approve this change to the current contract with Harris & Associates, Service Contract No. 2021-03 Water Rate Study FY 22-FY27 as described in the Proposed Addendum 1, Scope of Services, proposed by Harris & Associates. The change order will include the following: Increase of contract amount by an additional $105,662.00, which will change the total cost for this contract from $117,000.00 to $222,662.00. Extend the current contract duration with a revision of the completion date from June 2023 to September 2024. Revise the Scope of Work and Project Schedule as described in the "Proposed Addendum 1.- The additional cost for this change order is included in the FY 2023 budget that was approved by the Water Board. The additional work is deemed warranted as it will involve the evaluation of data in the current system for potential changes to the rate structure requested by the Board, analyses of financial conditions after implementation of rate increases, internal and public communication, and attainment of financial policy targets to maintain a sound financial position for DWS. C. MATERIAL BID NO. 2022-01, FURNISHING AND DELIVERING PIPES, FITTINGS, WATER METERS, FIRE HYDRANTS, BRASS GOODS, VALVES, ELECTRICAL SUPPLIES, ELECTRICAL EQUIPMENT, SCADA, WATER QUALITY EQUIPMENT, CHLORINATORS, MOTORS AND MISCELLANEOUS ITEMS FOR THE DEPARTMENT OF WATER SUPPLY STOCK: This item was deferred at the May 24, 2022, Water Board meeting. Page 4 of 9 .Tune 28, water Board Agenda Bids were opened on May 4, 2022 at 1:30 p.m., and following are the bid results: PART NO. DESCRIPTION BIDDER AMOUNT I DUCTILE IRON PIPE, PUSH -ON TYPE Core & Main LP dba Pacific $86 800.00 JOINT Pipe Co., Inc. ' 2 DUCTILE IRON FITTINGS Core & Main LP dba Pacific $152,901.00 Pipe Co., Inc. 3 DUCTILE IRON SOLID BODY Core & Main LP dba Pacific $57 020.00 SLEEVES Pipe Co., Inc. 4 FLANGE GASKETS No Bids. 5 NUTS, BOLTS, AND THREADED Fastenal Company $76,423.12 RODS 6 COPPER TUBING Core & Main LP dba Pacific $183,050.00 Pipe Co., Inc. 7 GALVANIZED PIPES T&C Core & Main LP dba Pacific $23 210.00 THREADED & COUPLED Pipe Co., Inc. ' 8 METER BOXES M&H Investment Corp. dba $45,500.00 1CO Supply 9 METER COVERS Ferguson Enterprises, Inc. $19,017.50 10 AUTOMATIC METER READING UNIT Ferguson Enterprises, Inc. $98,638.80 11 SMART WATER METERS No Bids. 12 5/8" WATER METERS Badger Meter, Inc. $54,360.00 13 NEPTUNE T-10 SERIES METER PARTS Ferguson Enterprises, Inc. $96,661.00 14 BADGER RECORDALL SERIES Badger Meter, Inc. $4,306.39 METER PARTS 15 1"- 2" WATER METERS Badger Meter, Inc. $10,427.80 16 COMPOUND WATER METERS Badger Meter, Inc.. $11,211.30 17 TURBINE METERS Badger Meter, Inc. $20,199.14 18 DETECTOR CHECK METERS Core & Main LP dba Pacific $5,170.00 Pipe Co., Inc. 19 FIRE SERVICE METERS Badger Meter, Inc. $62,366.24 20 FIRE HYDRANTS Core & Main LP dba Pacific $121,150.00 Pipe Co., Inc. 21 TAMPER -RESISTANT FIRE Core & Main LP dba Pacific $158,325.00 HYDRANTS Pipe Co., Inc. 22 MUELLER FIRE HYDRANT PARTS Ferguson Enterprises, Inc. $8,041.84 23 MUELLER FIRE HYDRANT Ferguson Enterprises, Inc. $10,342.43 EXTENSION KITS 24 M&H VALVE FIRE HYDRANT PARTS No Bids 25 BALL METER VALVES Core & Main LP dba Pacific $75,500.00 Pipe Co., Inc. 26 BALL VALVE, PACK JOINT X METER Ferguson Enterprises, Inc. $52,939.25 COUPLING / FIP 27 COMPRESSION JOINT COUPLING Core & Main LP dba Pacific $7,550.00 Pipe Co., Inc. 28 METER FLANGE COUPLING Ferguson Enterprises, Inc. $5,385.75 29 PACK JOINT COUPLING Ferguson Enterprises, Inc. $48,795.05 Page 5 of 9 .Tune 29, Water Board Agenda PART DESCRIPTION BIDDER AMOUNT NO. 30 CORPORATION AND CURB STOPS — Core & Main LP dba Pacific $125,657.15 BALL TYPE Pipe Co., Inc. 31 PRESSURE REGULATORS No Bids 32 HOSE BIBBS No Bids 33 INVERTED MARKPAINT Safety Systems & SignsING $13,344.00 Hawaii, Inc. 34 AIR RELIEF VALVES Core & Main LP dba Pacific $17,400.00 Pipe Co., Inc. 35 SLOW CLOSING AIR/VACUUM No Bids VALVES 36 SILENT CHECK VALVES Core & Main LP dba Pacific $103,280.00 Pipe Co., Inc. 37 DUCKBILL CHECK VALVES No Bids 38 GATE VALVES — 3" AND LARGER, Ferguson Enterprises, Inc. $47,939.36 125# CLASS 39 GATE VALVES — 3" AND LARGER, Ferguson Enterprises, Inc. $88,365.76 250# CLASS 40 AUTOMATIC CONTROL VALVES Ferguson Enterprises, Inc. $1 887 644.02 41 ROTARY PUMP CONTROL VALVES No Bids AND ACTUATION 42 RESERVOIR LEVEL INDICATOR TKProcess Hawaii, LLC $11,118.29 43 HATCH FRAMES AND COVERS Core & Main LP dba Pacific $41,900.00 Pipe Co., Inc. 44 EMERGENCY EYEWASH/SHOWER Safety Systems & Signs $157,205.70 STATIONS Hawaii, Inc. 45 TOXIC GAS MONITORS No Bids 46 SIGNAL DEVICES Graybar Electric Company, $151,250.00 Inc. 47 ARC FLASH PPE — DAILY WEAR No Bids 48 SUPPLEMENTAL PPE Safety Systems & Signs $10,968.94 Hawaii, Inc. 49 ELECTRICAL GLOVES Safety Systems & Signs $1,222.48 Hawaii, Inc. 50 DIGITAL MULTIMETER & TESTING No Bids 51 ELECTRICAL SAFETY EQUIPMENT Graybar Electric Company, $4,270.00 Inc. 52 ELECTRICAL EQUIPMENT TESTING No Bids SERVICES 53 INDUSTRIAL MOTOR LEAD CABLE Graybar Electric Company, $140,840.00 Inc. 54 INDUSTRIAL CONTROL WIRING Graybar Electric Company, $12,105.00 Inc. 55 HEAVY-DUTY SAFETY SWITCH No Bids 56 SOLID STATE REDUCED VOLTAGE No Bids SOFT STARTER 57 MAGNETIC CONTACTORS No Bids Page 6 of 9 .Tune 29, Water Board Agenda PART NO. DESCRIPTION BIDDER AMOUNT 58 MEDIUM -VOLTAGE REDUCED TK Process Hawaii, LLC $115,491.43 VOLTAGE SOFT STARTER 59 VARIABLE FREQUENCY DRIVES TK Process Hawaii, LLC $5,395,265.87 60 POWER QUALITY EQUIPMENT TK Process Hawaii, LLC $303,127.92 61 PAD -MOUNTED STEP-UP No Bids TRANSFORMER 62 SURGE PROTECTION DEVICES TK Process Hawaii, LLC $89,620.94 63 POWER MONITORING EQUIPMENT No Bids 64 PROGRAMMING SERVICES No Bids 65A PRESSURE TRANSDUCER— WELL SCADA & Control Solutions, $39,650.71 LEVEL LLC 66 PRESSURE TRANSDUCER- No Bids RESERVOIR LEVEL 67 PRESSURE TRANSMITTER TK Process Hawaii, LLC $4,762.56 68 FLOW SWITCH TK Process Hawaii, LLC $2,163.48 69 LEGACY ELECTROMAGNETIC FLOW No Bids METER PARTS 70 UNIVERSAL ELECTROMAGNETIC No Bids FLOW METERS 71 REAGENTLESS CHLORINE No Bids RESIDUAL ANALYZERS 72 WATER QUALITY EQUIPMENT No Bids 73 REAGENTS AND STANDARDS No Bids 74 MULTISTAGE BOOSTER PUMPS No Bids 75 CHEMICAL FEEDER PUMP No Bids 76 DIGITAL CHLORINE CYLINDER No Bids SCALE 77 CHLORINE GAS FEEDER No Bids 78 TABLET CHLORINATOR & PARTS No Bids 79 MECHANICAL SEALS No Bids 80 MOTORS No Bids 81 LEGACY LEAK NOISE DATA Wong's Equipment & $1 895.69 LOGGER & PARTS Services, LLC 82 LEAK NOISE DATA LOGGERS TK Process Hawaii, LLC $70,439.53 83 REMOTE PRESSURE MONITORING No Bids SYSTEM 84 LIGHT EMITTING DIODE Graybar Electric Company, $3 825.00 LUMINARIES Inc. 85 INDUSTRIAL LUBRICANTS No Bids For the Sections where no bids were received, staff shall seek alternative procurement pursuant to HAR 3-122-35 to procure the required materials in the best interests of the Department. The contract period for all Parts is one year, from July 1, 2022, to June 30, 2023. All Parts are established price agreements for materials on an "As -Needed Basis." Page 7 of 9 .Tune 29, Water Board Agenda RECOMMENDATION: It is recommended that the Board award the contract to the following bidders for MATERIAL BID NO. 2022-01, FURNISHING AND DELIVERING PIPES, FITTINGS, WATER METERS, FIRE HYDRANTS, BRASS GOODS, VALVES, ELECTRICAL SUPPLIES, ELECTRICAL EQUIPMENT, SCADA, WATER QUALITY EQUIPMENT, CHLORINATORS, MOTORS AND MISCELLANEOUS ITEMS FOR THE DEPARTMENT OF WATER SUPPLY STOCK, on an as -needed basis, as listed below, and that either the Chairperson or the Vice -Chairperson be authorized to sign the contract(s), subject to review as to form and legality of the contract(s) by Corporation Counsel. The contract period shall be from July 1, 2022, to June 30, 2023. Core & Main LP dba Pacific Pipe Co., Inc., for Parts 1, 2, 3, 6, 7, 18, 20, 21, 25, 27, 30, 34, 36, and 43 Fastenal Company for Part 5 M&H Investment Corp. dba ICO Supply for Part 8 Ferguson Enterprises, Inc., for Parts 9, 10, 13, 22, 23, 26, 28, 29, 38, 39, and 40 Badger Meter, Inc., for Parts 12, 14, 15, 16, 17, and 19 Safety Systems & Signs Hawaii, Inc., for Parts 33, 44, 48, and 49 TK Process Hawaii, LLC, for Parts 42, 58, 59, 60, 62, 67, 68, and 82 Graybar Electric Company, Inc., for Parts 46, 51, 53, 54, and 84 SCADA & Control Solutions, LLC, for Part 65A Wong's Equipment & Services, LLC, for Part 81 D. MATERIAL BID NO. 2022-06, FURNISH BASE COURSE, SAND, COLD MIX HOT MIX, AND NO. 3F ROCK TO THE DEPARTMENT OF WATER SUPPLY: For the award of District III Part 3G to Grace Pacific, LLC, the item description on the Letter of Award was corrected from "Blended Material 60% 44 Sand and 40% No. 3F Rock (Cost per ton)" to "Hot Mix - County Mix IV (Cost per ton)" for a bid amount of $174.00. E. 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. F. 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. G. MANAGER -CHIEF ENGINEER'S REPORT: The Manager -Chief Engineer to provide an update on the following: 1. North Kona Wells 2. COVID-19 Update 3. Update on Establishment of Permitted Interaction Group, Re: Capacity Expansion 4. 2022 Keiki Water Conservation Poster Contest 5. Retiree of the Department of Water Supply H. CHAIRPERSON'S REPORT: Chairperson to report on matters of interest to the Board. Page 9 of 9 .Tune 28, water Board Agenda 9) ANNOUNCEMENTS: 1. Next Meeting: - July 26, 2022, 10:00 a.m., at the Liquor Control Conference Room, Hilo Lagoon Centre, 101 Aupuni Street, Room 230, Hilo, Hawaii. 10) ADJOURNMENT Anyone requiring an accommodation or auxiliary aid and/or services to participate in this meeting (i.e. sign language, interpreter, large print), please contact the Board Secretary, at (808) 961-8050 as soon as possible, but no later than five days before the scheduled meeting. Notice to Lobby: If you are a lobbyist, you must register with the Hawaii County Cleric within five days of becoming a lobbyist. {Article 15, Section 2-91.3(b), Hawaii 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), Hawaii County Code} Registration forms and expenditure report documents are available at the Office of the County Clerk -Council, Hilo, Hawaii. Board Packet Pursuant to Hawaii Revised Statutes, Section 92-7.5, the board packet provided to members of the board for this meeting is available for public inspection during regular business hours at the Department of Water Supply office, 345 Kekiiana6`a Street, Suite 20, Hilo, Hawaii. "The Department of Water Supply is an Equal Opportunity provider and employer." Page 9 of 9 June 28, Water Board Agenda