HomeMy WebLinkAbout2022-12-20 Water Board Meeting MinutesMINUTES
DEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAI`I
WATER BOARD MEETING
December 20, 2022
Liquor Control Conference Room, 101 Aupuni Street, Suite 230, Hilo, HI
MEMBERS PRESENT: Mr. David De Luz, Jr., Chairperson
Mr. Steven Hirakami, Vice -Chairperson
Mr. Michael Bell
Ms. Julie Hugo
Mr. Porto Kekela
Mr. Benjamin Ney
Mr. Kenneth Sugai
Mr. Keith K. Okamoto, Manager -Chief Engineer,
Department of Water Supply (ex-officio member)
ABSENT: Mr. Stephen Kawena Lopez, Water Board Member
Ms. Kea Keolanui, Water Board Member
Director, Planning Department (ex-officio member)
Director, Department of Public Works (ex-officio member)
OTHERS PRESENT: Ms. Diana Mellon -Lacey, Deputy Corporation Counsel
DEPARTMENT OF
WATER SUPPLY STAFF: Mr. Kawika Uyehara, Deputy
Mr. Kurt Inaba, Engineering Division Head
Ms. Candace Gray, Waterworks Controller
Mr. Gregory Goodale, Chief of Operations
Mr. Eric Takamoto, Operations Division
Mr. Warren Ching, Energy Management Specialist
Mr. Alvin Inouye, Operations Superintendent
Ms. Sunshine Carter, Administration Division
Ms. Kaiulani Matsumoto, Contracts Technician (10:17 a.m.)
1) CALL TO ORDER — Chairperson De Luz called the meeting to order at 10:00 a.m. A quorum of seven
members were in attendance. He asked Ms. Mellon -Lacey if, in the interests of succession, Mr. Hirakami
could chair the meeting after Item No. 2. Mr. Hirakami will be Chairperson for 2023 and it would allow
him, the Manager -Chief Engineer, and Ms. Carter to get to work together prior to the change -over.
Ms. Mellon -Lacey stated that it could be done if the Board concurred. There being no objections, the
meeting was turned over to Vice -Chairperson Hirakami.
2) STATEMENTS FROM THE PUBLIC — Vice -Chairperson Hirakami thanked the Chair and continued
with Item No. 2. There were no statements from the public.
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3)
APPROVAL OF MINUTES:
ACTION: Ms. Hugo moved for approval of the Minutes of the November 22, 2022, Water Board
Meeting; seconded by Mr. Ney and carried unanimously by voice vote.
4) APPROVAL OF ADDENDUM AND/OR SUPPLEMENTAL AGENDA - none
5) POWER COST CHARGE:
Vice -Chairperson Hirakami asked if there was any testimony for this item. There being none, he
continued with the agenda item.
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 $2.87 to $3.04 per
thousand gallons as a result of this increase. Power cost charges over the past two years were as follows:
Effective
PCC
November 1, 2022
$2.87
September 1, 2022
$2.75
July 1, 2022
$2.48
May 1, 2022
$2.34
March 1, 2022
$2.02
November 1, 2021
$2.15
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 $2.87 to $3.04, effective January 1, 2023,
ACTION: Mr. Sugai moved for approval of the recommendation; seconded by Ms. Hugo and carried
unanimously by voice vote.
6) SOUTH HILO:
A. JOB NO.2020-1146, HILO OPERATIONS BASEYARD EMERGENCY GENERATOR
REPLACEMENT — REQUEST FOR TIME EXTENSION:
Vice -Chairperson Hirakami asked if there was any testimony for this item. There being none, he
continued with the agenda item.
The Contractor, Isemoto Contracting Co., Ltd. is requesting a contract change time extension of
48 calendar days. The Contractor was delayed due to changes to the project scope and the reasons
noted below. These delays were beyond the control of the Contractor.
Ext. #
From (Date)
To (Date)
Days
Reason
(Calendar)
1
8/12/2021
4/20/2022
251
Delays in receiving the building permit during
transition to new permitting system.
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7)
2
4/21/2022
7/11/2022
82
Delays in receiving the building permit during
transition to new permitting system.
Additional work associated with CO#4 and
CO#5 for replacement of metal paneling;
3
7/12/2022
12/20/22
162
additional disconnect switches; and
replacement of circuit breaker and new surge
protection device for caretaker's cottage.
4
12/21/2022
2/06/2023
48
Material delays associated with CO#5.
Total Days (including this request)
543
Staff reviewed the request for contract time extension and the accompanying supporting documents and
found the 48 calendar days justified. Note: There are no additional costs associated with this time
extension.
RECOMMENDATION: It is recommended that the Board approve a contract time extension of
48 calendar days to Isemoto Contracting Co., Ltd., for JOB NO. 2020-1146, HILO OPERATIONS
BASEYARD EMERGENCY GENERATOR REPLACEMENT. If approved, the contract completion
date will be revised from December 20, 2022, to February 6, 2023.
ACTION: Mr. Bell moved for approval of the recommendation; seconded by Ms. Hugo. There being no
discussion, motion was carried unanimously by voice vote.
MISCELLANEOUS:
A. DEDICATION OF WATER SYSTEM(S):
Vice -Chairperson Hirakami asked if there was any testimony for this item. There being none, he
continued with the agenda item.
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 (Water Meter)
Grantor: Concept Construction, Inc.
Tax Map Key (3) 2-2-025: 022 (portion)
Waiakea, South Hilo, Island of Hawaii, Hawaii
2. Grant of Easement and Bill of Sale
Grantor: Meraki 9, LLC
Kealakehe Homesteads Subdivision
Subd. No. 20-001964
Tax Map Key (3) 7-4-009:072
Kealakehe, North Kona, Island of Hawaii, Hawaii
Facilities Charge: $50,079.00 Date Paid: 9/13/2022
Final Inspection Date: 11/16/2022
Water System Cost: $116,200.00
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RECOMMENDATION: It is 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.
MOTION: Mr. Sugai moved for approval of the recommendation; seconded by Ms. Hugo.
Chairperson De Luz asked for clarification about Item No. 1 in regards to concept and if the adjoining
facilities are moving to one meter.
Mr. Inaba replied that they are not moving to one meter. It is a separate meter. The box is too large to
fit in the sidewalk and is encroaching into private property.
The Manager -Chief Engineer stated that the added meter is for fire protection.
Chairperson De Luz asked Ms. Mellon -Lacey if it would be better to separate the recommendations
and have separate votes rather than combine the two in one recommendation.
Ms. Mellon -Lacey stated that they are two separate systems and therefore could be separated.
Chairperson De Luz suggested to Vice -Chairperson Hirakami that the votes be taken separately.
ACTION: Ms. Hugo moved to accept the Grant of Easement for Concept Construction, Inc.,
seconded by Mr. Sugai and carried unanimously by voice vote.
ACTION: Ms. Hugo moved to accept the Grant of Easement and Bill of Sale for Meraki 9, LLC;
seconded by Mr. Sugai and carried unanimously by voice vote.
B. MONTHLY PROGRESS REPORT:
Vice -Chairperson Hirakami asked if there was any testimony for this item. There being none, he
continued with, the agenda item.
Mr. Inaba provided an update on the Hala`ula Well Development Phase 2 project. Results from the
water samples that were collected and sent to the Department of Health are expected next month.
Once the new source report is completed, water can be put into the system. There will be a
monitoring schedule the Department will need to comply with.
For the Puako Waterline Replacement, the contract is now being routed for signatures.
Mr. Ney asked what the schedule will look like for completion after the contract is executed.
Mr. Inaba replied that the project is for one year.
Mr. Ney asked if the contractor would have difficulty staging the project and storing of materials, just
because of the area down there.
The Manager -Chief Engineer replied that a pre -construction meeting will be held and the contractor
will be issued Notice to Proceed 45 days after contract execution.
Mr. Ney hoped the details of the project will be scrutinized because of the scope of work.
Page 4 of 9 December 20, 2022, Water Board Minutes
The Manager -Chief Engineer stated that the bidders were made aware of the project scope during the
pre -bid meeting, and the Department's inspector will be instructed to make sure construction goes
accordingly.
Chairperson De Luz asked about the Lalamilo 10 MG Reservoir — Planning and Design and if the
Right -of -Entry is proceeding.
Mr. Inaba replied that the Department should be hearing about the Right -of -Entry after this week.
Chairperson De Luz stated if there is an emergency declaration for drought and it goes into emergency
preparedness, there may be opportunities for an avenue of additional funding outside of the regular
resources.
The Manager -Chief Engineer noted that he is part of the drought committee on this island and they
will explore some of those opportunities at their next meeting.
C. REVIEW OF MONTHLY FINANCIAL STATEMENTS:
Vice -Chairperson Hirakami asked if there was any testimony for this item. There being none, he
continued with the agenda item.
Ms. Gray reviewed the Financial Statements for November of 2022. A lot of the line items listed on
the cover sheet, the Board has seen before. What makes her happy is that the Department is moving
in a positive direction. On the Balance Sheet, what she keeps an eye on is the current assets and cash
and investments, and also monitors long-term debt. Looking at the net position, it remains positive.
On the Income Statement, operating income is $3.195 million and the net position is positive. On the
Budget Status report, revenues, or receipts, exceeded the target of 42%. It was at 44%. Under
expenditures, it is nice to see the Department is not overspending at this point.
The Manager -Chief Engineer noted the delinquencies going down and acknowledged the Corporation
Counsel's Office for their efforts in assisting by sending out additional letters. It does carry some
weight to have a letter come from an attorney.
Ms. Mellon -Lacey mentioned her assistant, Ms. Kayleigh Idemoto, and Ms. Britt Bailey, an attorney
in their litigation section, who worked very hard on this.
Ms. Hugo asked about the history of delinquencies and write-offs. It seemed to her that $1 million in
delinquencies is a lot. She asked Ms. Gray to point her to the correct place in the Financial Statements
for some information.
Ms. Gray stated that it is tied into the receivables and actually reduces the receivables. The
Department has reserve accounts for non -collectibles. Instead of bringing down the
greater-than-90-day delinquencies, they are focusing more on write-offs within the past few months;
and this was triggered by Vice -Chairperson Hirakami's questions at an earlier meeting. The criteria is
delinquencies that have reached the Statute of Limitations, over six years old. Staff is looking at the
larger balances, including those greater than 90 days. Compared to 45,000 accounts, the number
might not be significant; but when talking about strategy, we try to focus on areas where we bring
delinquencies down quicker.
Ms. Hugo asked if delinquencies were primarily due to COVID or if it was prior to that.
Page 5 of 9 December 20, 2022, Water Board Minutes
Ms. Gray replied it was from prior to COVID.
Mr. Ney reiterated his previous suggestion related to accounts being opened by someone who is not
the property owner. If someone rents and there is a bad waterline, the Department and rate payers
bear that cost. It did not seem like a difficult fix to have the owner of that property sign off on the
water service. It seems there are things that can be done to address it going forward. The other issue
is the power cost charge and not chasing after it but rather to credit it back.
Upon Ms. Mellon-Lacey's caution of not getting too far from the agenda, the Manager -Chief Engineer
stated that an agenda item can be added to a future agenda, called Policy for Collections.
Mr. Ney appreciated that, if it could be introduced at a future meeting, when appropriate.
Vice -Chairperson Hirakami asked what the timing is between delinquencies and water shut-off and
how many past the 90 days have had water shut off.
The Manager -Chief Engineer suggested having that discussion with the agenda item mentioned above.
Some of these account holders are probably no longer on the property, but the balance does not go
away.
Mr. Sugai recalled a previous conversation, brought forth by Chairperson De Luz, about collective
bargaining and putting money into a surplus account.
Ms. Gray stated that any surplus cash receipts will be transferred annually to the CIP reserve account,
which is used for capital projects. The goal is to get it to a point where it is part of the water rate
study.
Chairperson De Luz suggested, to help new Board Members, giving them a calendar as far as the next
water rate study. He also recommended that the Board Members review the Department's Rules and
Regulations as far as policies, and maybe take a look at it with regard to how Wastewater did theirs
where the property owner is responsible. He complimented the Department on being at only 32% of
their operating budget almost six months into the fiscal year.
D. MANAGER -CHIEF ENGINEER'S REPORT:
Vice -Chairperson Hirakami asked if there was any testimony for this item. There being none, he
continued with the agenda item.
The Manager -Chief Engineer provided an update on the following:
North Kona Wells — the Deputy reported that ten out of fourteen sources are in use or available to
use. Hualalai Well, which was reported on last month, has been put out to bid for repair. After last
month's meeting, the Palani Well megger reading was zero. There is a problem with the motor,
and it is advertised for bids. Award for both projects will be in January 2023. Ten sources are
adequate to service North Kona. He also mentioned the Kona Low weather system where there
were issues last night during a power outage. Staff worked through the night to maintain water
service to North Kona. Ms. Hugo asked about contingency plans, noting the presentations by the
County Auditor at two past meetings. The Manager -Chief Engineer stated that there was a
requirement for a written plan that covers the entire island. The Department is also working on one
for each of its 23 water systems. Chairperson De Luz mentioned the complexity of the water
systems. He encouraged the Department, either on its Fiscal Year end or Calendar Year end to do
Page 6 of 9 December 20, 2022, Water Board Minutes
an annual report to the public in general so they can appreciate the complexity of the systems, and
even to policy makers. The Manager -Chief Engineer mentioned the discontent from some in North
Kona but relayed that staff work really hard to keep water running. Some people may get upset,
but the Department is taking a proactive approach.
2. Retirees of the Department of Water Supply for December 31, 2022
• Four retirees were acknowledged at this meeting. The Deputy began with Mr. Jay Mende,
Geographic Information System Analyst II. Jay has been with the Department since 2005. He
was not present today. He is responsible for GIS maps and various diagrams, as needed, and
sometimes on short notice. He always comes through and will be missed. Mr. Inaba
mentioned that he has relied on Jay a lot and he leaves behind big shoes to till.
• Mr. Goodale announced that Mr. James O'Keefe, Electronics Technician, Operations Division,
is retiring. James started in October of 2009 and has 13 years with the Department. He is one
of two Electronics Technicians and worked with SCADA (Supervisory Control and Data
Acquisition) and the upgrade of hand-held radios to digital. His knowledge sometimes makes
you want to scratch your head because it is so hard to understand. James could not be here
today as he is already travelling. He will be missed.
• The Manager -Chief Engineer announced that Administration's Clerk II, Ms. Susan Okamoto,
is also retiring. She is the face of the Department and is always pleasant and professional. She
began in 1998 and has 24 years of service and institutional knowledge. This is another big loss
for the Department. She falls under the supervision of Ms. Sunshine Carter. Susan will be
missed and is wished well in her retirement.
• Lastly, Ms. Doreen Jollimore, Secretary, is retiring; and this is her last Water Board Meeting.
She will make 30 years with the County, of which all but seven months were at the Department
of Water Supply. She started with DWS in 1993 and is another employee with institutional
knowledge. The Board has mentioned several times that there are a lot of employees who have
stayed on a long time with DWS. The Manager -Chief Engineer mentioned that the Minutes
will probably not look the same after this and may become verbatim.
E. EXECUTIVE SESSION: MANAGER -CHIEF ENGINEER AND DEPUTY EVALUATION
AND COMPENSATION FOR CALENDAR YEAR 2022:
The Board anticipates convening an executive meeting to consider the evaluations of the
Manager -Chief Engineer and Deputy for its annual performance review, as authorized by Hawaii
County Charter Section 7-4.6(d) and Hawaii Revised Statutes ("HRS"), Sections 92-4 and 92-5(a)(2).
The Board wishes to have its attorney present, in order to consult with the board's attorney on its
questions and issues pertaining to the board's powers, duties, privileges, immunities, and liabilities
pursuant to HRS Section 92-5(a)(4). A two-thirds vote of the members present, pursuant to HRS
Section 92-4, is necessary to hold an executive meeting, provided that the affirmative vote constitutes
a majority of the board.
ACTION: Mr. Ney moved to enter into Executive Session; seconded by Ms. Hugo and carried by roll
call vote (Ayes: 7 — Mr. Bell, Ms. Hugo, Mr. Kekela, Mr. Ney, Mr. Sugai, Chairperson De Luz, and
Vice -Chairperson Hirakami, and Absent: 2 — Ms. Keolanui and Mr. Lopez).
(The Board entered Executive Session at 11:07 a.m. and ended at 11:58 a.m.)
Page 7 of 9 December 20, 2022, Water Board Minutes
F. MANAGER -CHIEF ENGINEER AND DEPUTY EVALUATION AND COMPENSATION
FOR CALENDAR YEAR 2022:
Vice -Chairperson Hirakami asked if there was any testimony for this item. There being none, he
continued with the agenda item.
Vice -Chairperson Hirakami stated that during Executive Session, the Board had discussion about the
evaluations of the Manager -Chief Engineer and Deputy and compensation and asked if anyone wished
to make a Motion.
Chairperson De Luz suggested that the motions for evaluation and for compensation be segregated
and made two motions as follows:
MOTION/ACTION 91: Chairperson De Luz moved that the evaluation exceeded the expectations for
the Manager -Chief Engineer and the Deputy for Calendar Year 2022 and suggests that the Board take
that separate from the compensation; seconded by Ms. Hugo and carried unanimously by voice vote.
MOTION/ACTION #2: Chairperson De Luz moved that the compensation for Calendar Year 2023,
January 1 to December 31, upon discussion and evaluation primarily based on evaluation, that the
Board recommend approval for the Manager -Chief Engineer of a salary of $13,845.00 per month
and the Deputy of a salary of $13,150.00 per month; seconded by Ms. Hugo and carried by
roll call vote (Ayes: 7 — Mr. Bell, Ms. Hugo, Mr. Kekela, Mr. Ney, Mr. Sugai, Chairperson De Luz,
and Vice -Chairperson Hirakami; Absent: 2 — Mr. Lopez and Ms. Keolanui.)
Ms. Mellon -Lacey stated that the two outgoing Board Members can hold over another 90 days or until
a replacement is found for their district; therefore, Chairperson De Luz and Mr. Sugai can continue to
come to the meetings until then. They both agreed to continue on the Board for that period. Mr.
Hirakami will assume the position of Chairperson in the new year.
Vice -Chairperson Hirakami then turned the meeting back over to Chairperson De Luz.
(Ms. Hugo left the meeting at 12:05 p.m.)
G. CHAIRPERSON'S REPORT:
1. Discussion on upcoming Water Board Schedule — Chairperson De Luz recommended that the
Board will have an opportunity to discuss this further with the Manager -Chief Engineer and to
gather more information to come back to the Board next month; but it is his understanding
that would not constitute a Sunshine Law violation for the Chair and Vice -Chair to have that
conversation.
Ms. Mellon -Lacey stated that was correct.
Mr. Ney added that the conversation should involve Board Members from other districts.
Chairperson De Luz stated that administration could give whatever report is needed so there is
more hard data to have a more productive discussion.
Ms. Mellon -Lacey suggested the Board consult with the DWS Rules and Regulations
regarding the date on when the Board meets.
Page 8 of 9 December 20, 2022, Water Board Minutes
The Manager -Chief Engineer stated that upon review of Mr. Lopez's letter, he proposed the
suggestion of four east side, four west side, and four virtual meetings for next year. The
hybrid situation would be a challenge.
Ms. Mellon -Lacey stated that even if the Board meets virtually, it still has to provide a
location that the public can come to in order to attend the meeting. Under Sunshine Law, you
cannot completely eliminate a physical location.
Chairperson De Luz stated that, because Mr. Lopez was the person who introduced this topic,
further discussion should be postponed until he can take part. He also suggested that if the
Board wishes to have a site visit, that it give the Department six months' notice as there are
preparations for that type of meeting. It was decided to place this on the January 24, 2023,
Water Board agenda and for it to be its own separate agenda item rather than part of the
Chairperson's Report.
Mr. Ney stated that when the meetings were all virtual, he did not feel connected and prefers
the in -person setting. Vice -Chairperson Hirakami agreed. He also preferred in -person
meetings and does not mind travelling to West Hawaii.
2. Chairperson to Report on Matters of Interest to the Board — Chairperson De Luz stated that he
has enjoyed his term on this Board; and of all of the boards and commissions he has sat on,
this is his favorite. He wished everyone a happy holiday season.
8) ANNOUNCEMENTS:
1. Next Meetinu: - The next meeting of the Water Board will be January 24, 2023,10:00 a.m. at the
Department of Water Supplv, Hilo Operations Conference Room, 899 Leilani Street, Hilo,
Hawaii. Chairperson De Luz stated that for those who are not familiar with the Department's
baseyard office, it is the last building on the left on the road leading to the Hilo Landfill.
9) ADJOURNMENT
ACTION: Mr. Sugai moved to adjourn the meeting; seconded by Mr. Ney and carried unanimously by
voice vote.
(Meeting adjourned at 12:18 p.m.)
Recording Secretary
APPROVED BY WATER BOARD
(JANUARY 24, 2023)
Page 9 of 9 December 20, 2022, Water Board Minutes