HomeMy WebLinkAbout2023-07-25 Water Board Meeting MinutesMINUTES
DEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAI`I
WATER BOARD MEETING
July 25, 2023
Department of Water Supply, Hilo Operations Baseyard, 889 Leilani Street, Hilo, Hawaii
MEMBERS PRESENT: Mr. Steven Hirakami, Chairperson
Mr. Stephen Kawena Lopez, Vice -Chairperson
Mr. Thomas Brown, Water Board Member
Mr. Benjamin Ney, Water Board Member
Mr. Keith Unger, Water Board Member
ABSENT: Mr. Michael Bell, Water Board Member
Ms. Julie Hugo, Water Board Member
Mr. Michael Pono Kekela, Water Board Member
Ms. Kea Keolanui, Water Board Member
Mr. Keith K. Okamoto, Manager -Chief Engineer,
Department of Water Supply (ex-officio 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 Analyst
Mr. Alvin Inouye, Water Operations Superintendent
Ms. Sunshine Carter, Private Secretary
Ms. Nora Avenue, Recording Secretary
1) CALL TO ORDER — Chairperson Hirakami called the meeting to order at 10:00 a.m. A quorum of five
members were in attendance.
CHR. HIRAKAML• Before we start, I'd like Keith (Unger) to introduce himself to the Board. Tell us
what district you're from and a little bit about you.
MR. UNGER: Sure. My name is Keith Unger. I'm District 6, so taking that position. I'm a rancher in
South Kona, McCandless Ranch. I have a little bit of real estate background. I have a Broker's license
and a small real estate company, so I do that together with my ranching business. I'm from Hilo and
married a Kona girl. We live in Kona. We've been in Kona quite a while now, in Ho`okena area.
It's interesting reading these minutes, and I see that the Water Department deals a lot with companies
drilling contractors. After college, I got hired on by Global Marine Drilling Company and spent five years
in the Gulf of Mexico and overseas as a roughneck and Derrickman, so I'll be curious to see how it relates
back to drilling in Hawaii, and that's been a while ago. I spent seven years on the Leeward Planning
Commission, stepped up two years ago, and that was a good experience; and so when I saw this position
open up, I applied. I look forward to meeting you all, working with you all, and contributing where I can.
Mahalo.
BOARD MEMBERS: Thank you.
CHR. HIRAKAMI: Thank you for joining us and making quorum.
2) STATEMENTS FROM THE PUBLIC — Pursuant to HRS §92-3, oral testimony may be provided entirely
at the beginning of the meeting, or immediately preceding the agenda item. There were no statements
from the public at this time.
3)
APPROVAL OF MINUTES:
Minutes of the June 27, 2023, Water Board Meeting
ACTION: Mr. Ney moved to approve the Minutes of June 27, 2023. Seconded by Mr. Brown and carried
unanimously by voice vote. Mr. Bell, Ms. Hugo, Mr. Kekela, and Ms. Keolanui were absent.
4) APPROVAL OF ADDENDUM AND/OR SUPPLEMENTAL AGENDA — None.
5)
POWER COST CHARGE
Chair: Is there any testimony for this item?
Departmental power costs from all power sources decreased since the last Power Cost Charge rate was
determined. The Department proposes to decrease the Power Cost Charge from $2.70 to $2.64 per
thousand gallons as a result of this decrease. Power cost charges over the past two years were as follows:
Effective
PCC
April 1, 2023
$2.70
January 1, 2023
$3.04
November 1, 2022
$2.87
September 1, 2022
$2.75
July 1, 2022
$2.48
May 1, 2022
$2.34
Before the Power Cost Charge is changed, a Public Hearing should be scheduled to accept public
testimony.
RECOMMENDATION: It is recommended that the Board approve holding a Public Hearing on
August 22, 2023, at 9:45 a.m., to receive testimony on decreasing the Power Cost Charge from
$2.70 to $2.64, effective September 1, 2023.
CHR. HIRAKAMT: I'd like to entertain a motion to approve a Public Hearing on this.
Page 2 of 28 July 25, 2023, Water Board Minutes
MOTION: Mr. Brown moved for approval of the recommendation; seconded by Mr. Ney.
CHR. HIRAKAMI: Any discussion?
MR. LOPEZ: Yes, question. Remind me again please, is this mandated review of and adjustment of
Power Cost Charge?
MR. UYEHARA: So I'll start explanation, and maybe Candace. So mandated, I think it's within our
Board's jurisdiction of controlled power to review these Power Cost Charges. Previously it was done on
an annual basis, which left the department in a very unfortunate situation. So years back that Board
decided to review this every two months at least, and that's where we are at now. I think there's even a
$1.00 change threshold of about five cents that the Board re-evaluates and makes this action to adjust.
MR. LOPEZ: Okay, so if it was a Board's decision to have the department review this every two months.
So Board has the power to modify this.
MS. GRAY: At least two months. The review period would be at least two months.
MR. LOPEZ: So it could be long?
MS. GRAY: It could be longer. Actually, for this period the review period is about six months.
MR. LOPEZ: Is it? Okay. Thank you.
MR. UYEHARA: It is within the Board's jurisdiction.
MR. LOPEZ: Thank you.
MR. NEY: Just to bind of expand on what you were saying, we had that pretty sizable cumulative amount
we wrote off. In two of the things that I've been kind of harping on, one was the fact that tightening the
Power Cost adjustment, so perhaps we make it a little bit higher and credit back the difference, just to
reconcile the number so we're not at a loss. The second thing was to do with having the owner be a
guarantor of payment for the metered accounts. I've kind of reiterated this point a lot, but I'd like to
somehow get those agendized so we can address them at a meeting.
MR. UYEHARA: You know, I think that's been brought up before; and to your second point, I think we
could talk about that, that involves legal, so it has to be reviewed. The department would have to evaluate
and talk to Corp. Counsel and come up with a recommendation, and then we can agendize.
MR. NEY: Yeah, I'd like to get the ball rolling at least on it.
MR. UYEHARA: I think the last one was kind of a first, you know, the delinquencies to get it on the
agenda, talked about it, and this was another one that you mentioned before. So we can add that to the
future.
MR. LOPEZ: So Kawika, as a Board, we cannot ask for it to be agendized for discussion purposes? We
have to wait for the department to talk to legal first?
MR. UYEHARA: No, well we'll do that ahead of time. We can agendize for discussion, but we'll
probably —
Page 3 of 28 July 25, 2023, Water Board Minutes
MR. LOPEZ: Okay, maybe we can't make a decision without getting legal involved, which makes sense.
It just seems like a hell of a lot of cost and time for six cents. To me, it does. That was it. Thank you.
CHR. HIRAKAMI: That was kind of my concern. How much would exceed on an average water bill?
MR. UYEHARA: Six cents.
CHR. HIRAKAMI: Yeah, and how administrative cost is associated with this? Because you changed
the billing and all that stuff, I mean it seems so insignificant to go six cents. I mean, if it were at least
twelve cents or ten cents, I could see it, but six cents will make a dent. Are we obligated? As a Board, are
we obligated to—?
MR. UYEHARA: By being obligated, I think it's the Board's decision. So we do have the Power Cost
Charge, and that's the cost expended, so that's still the Board's jurisdiction. As far as how much six cents,
if you're going to average a bill of like 12,000 gallons a month, that's like 72 cents, I believe. So for a bill,
bi-monthly you may be saving S 1.44 or something. Yes, it's not a sizeable decrease in cost to the
customer, but I think it would be in line with us passing through that cost, that representative cost that we
get charged from Hawaiian Electric to the customer. So if it goes up, it goes up. If it goes down, it goes
down.
CHR. HIRAKAML Is this Board able to raise the minimum? I mean, you know, those five cents.
MR. UYEHARA: I think that's quite for the Board discussion and evaluation.
MS. MELLON-LACEY: So Kawika, I looked through the current Rules and Regulations to see if there
was anything that addresses it, and I couldn't find anything. I think that for transparency, if we are saying,
"At a certain amount, we would do an adjustment," like over five cents or over ten cents. But it should be
incorporated into the rules because that way the public what it is that we're doing. If we just change it
without making it clear when it's adjusted, I think that would be problematic from a legal perspective.
MR. UYEHARA: Okay, so what we can do, we can add an agenda item to discuss it, like what Kawena
was asking, right? I mean, like a month or two just to talk about it, to see what the Board is looking for. I
mean, check with the legal.
MS. MELLON-LACEY: So I mean, I guess what —if I'm understanding correctly, what we're doing now,
a decision to only do an adjustment if it's over five cents is sort of an internal decision that's been made,
but it isn't incorporated in the rules, or maybe I just missed it.
MR. UYEHARA: So I think, and correct me if I'm wrong, it's the Charter that says the Board has the
fiduciary responsibility for the department, so it's setting rates as appropriate to fund the operations and the
department, right? I think that's a Charter, right?
As far as the rules, I don't know if you want to put it exactly at a five cents rule, but if there's something to
cover the cost of operations, we will set rates to cover the cost of operations. I would think that's
appropriate right? It's prudent to fund the operations.
MR. NEY: I mean, my concern was this was unchecked for such a long time, like now that hole didn't get
plugged. It was a large amount of right -off and shouldn't have been.
MR. UYEHARA: Are you talking about delinquencies or the Power Cost Charge?
Page 4 of 28 July 25, 2023, Water Board Minutes
MR. NEY: Well, just related to how things are structured. Because my understanding was in the past we
made it on the Power Cost Charge, is that correct? We had a deficit, 1 guess, on the Power Cost Charge.
MR. UYEHARA: Oh, yeah.
MR. NEY: And I just don't want to have —
MR. UYEHARA: We're paying the Hawaiian Electric bills first and charging the customer to recover the
cost.
MR. NEY: Right, so that what's the tightening would be for, just to keep that.
CHR. HIRAKAMI: So it could be instead of a dollar and cents amount, could it be like a percentage
increase or percentage decrease because this is like two percent?
MR. UYEHARA: I think that would be appropriate for discussion.
MS. MELLON-LACEY: Part of a discussion.
MR. UYEHARA: Because then we can provide numbers.
CHR. HIRAKAMI: Right.
MR. UYEHARA: And again, Hawaiian Electric's rates are based on something that's out of everybody's
control.
CHR HIRAKAMI: Right.
MR. UYEHARA: So, I guess we're in discussion on that?
MS. MELLON-LACEY: Yes.
CHR. HIRAKAMI: Say if we're going from $4.00 to $4.25, five cents (inaudible); but if you're going
from $1.05 to $1.10, then five cents is substantial. You see what I mean about the percentage increase? So
the higher the Power Cost gets, the lower percentage of five cents increase, that's what I'm trying to say.
So maybe when the five cents thing was in effect, the older Board, maybe the Power Cost Charge was
$1.38 or something Now it's up to $3.00, so that's double what that is. It doesn't relate as far as dollars
and cents to percentage.
MR. UYEHARA: This is getting off topic.
MS. MELLON-LACEY: Yes. I think we have a motion for a public hearing, and I think this should be
agendized as a separate matter.
CHR HIRAKAMI: Does the Board have a right to not call a public hearing, I mean to decrease the water
rates until a later meeting?
MS. MELLON-LACEY: Yes, the Board could defer it.
MR. LOPEZ: Just the meeting or the change in rate?
Page 5 of 28 July 25, 2023, Water Board Minutes
MS. MELLON-LACEY: The change in rate cannot occur until the Public Hearing is over. That's referred
by statute.
MR. LOPEZ: Okay, so it defers also? Thank you.
MR. UYEHARA: And I think this was asked, maybe brought up at a meeting or so ago, but we would
caution the Board about having justifications. Like it's mentioned, we have a recommendation for a
reason, justifications for the recommendation. But if you're going to not go with the recommendation,
then —I think it was brought up that there should be some basis for that.
CHR. HIRAKAMI: Okay, I think maybe we can move this through, and then at a later meeting discuss —
go back to what percentage or what kind of increase or decrease is —like a threshold for us to call a Public
Hearing, but I think since this is already agendized. Is there any other discussion? Seeing none. I'll call
for the question, all in favor of Public Hearing say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote. Mr. Bell,
Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
CHR. HIRAKAML• So with that, Public Hearing will be at our next meeting, which will be in Kona.
Okay, we'll move on to Item No. 6.
6) NORTH HILO
Chair: Is there any testimony on this item?
A. JOB NO. 2021-1162 (REBID), LAUPAHOEHOE DEEPWELL B REPAIR— REQUEST FOR TIME
EXTENSION
The Contractor, Derrick's Well Drilling and Pump Services, LLC., is requesting a contract time
extension of 60 calendar days, due to delays by the motor manufacturer. Due to the motor's poor
performance test results the manufacturer has requested to provide a substitute equal motor. These
setbacks were beyond the control of the Contractor.
Staff reviewed the request for the time extension and the accompanying supporting documentation
and found the 60 calendar days to be justified. Note: There are no additional costs associated with
this time extension.
Ext.
From
To (Date)
Days
Reason
#
(Date)
(Calendar)
1
10/31/2022
3/31/2023
151
Manufacturer delays in providing submittals
and receiving materials for pump production.
2
3/31/2023
6/16/2023
77
Manufacturer delays in motor production.
3
6/16/2023
8/15/2023
60
Manufacturer requests motor substitution,
delaying shipment.
Total Days (including this request)
288
Page 6 of 28 July 25, 2023, Water Board Minutes
RECOMMENDATION: It is recommended that the Board approve a contract time extension of
60 calendar days to Derrick's Well Drilling and Pump Services, LLC, for JOB NO. 2021-1162
(REBID), LAUPAHOEHOE DEEPWELL B REPAIR. If approved, the contract completion date will
be revised from June 16, 2023 to August 15, 2023.
MOTION: Mr. Lopez moved for approval of the recommendation; seconded by Mr. Ney.
CHR. HIRAKAMI: Discussion.
MR. LOPEZ: Well, when 1 read this, it's experience of short -staffing and change of manufacturer.
This short -staffing is occurring worldwide, so it's an understandable situation.
MR. UYEHARA: Basically what it was, it's Laupdhoehoe B Well repair, and outside of the
contractor's (Derricks) control, staffing issues with the vendor or manufacturer. I believe staff
questioned the contractor to confirm that they ordered the materials on time or timely, and it was
confirmed, so our contractor was doing steps necessary to document, and that it was ordered on time.
Once the order is out there, they rely on the manufacturer to bill and ship.
CHR. HIRAKAML• Is there any update on the Estimated Time of Arrival (ETA)?
MR. TAKAMOTO: At this time, they're still working with the vendor to try to nail down the details.
CHR. HIRAKAMI: So, I don't see any objections. Any other discussions? If not, I'm calling the
question, all in favor of the motion say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
7) SOUTH KONA
Chair: Is there any testimony on this item?
A. JOB NO. 2021-1179, KE`EI #2A & #3B BOOSTER REPAIR — REQUEST FOR TIME
EXTENSION
The Contractor, Beylik/Energetic A JV is requesting a contract time extension of 177 calendar
days, due to delays from the Manufacturer with responding to and addressing Department
comments and concerns regarding equipment submittals, and due to delays from Manufacturer
recommended material changes and mechanical seal design change. This was beyond the control
of the Contractor.
Staff reviewed the request for the time extension and the accompanying supporting documentation
and found the 177 calendar days to be justified. Note: There are no additional costs associated
with this time extension.
Page 7 of 28 July 25, 2023, Water Board Minutes
Ext.
From (Date)
To (Date)
Days
(Calendar)
Reason
Delays from Manufacturer regarding
Department comments and concerns for
1
01/13/2023
07/07/2023
175
equipment submittals and Manufacturer
recommended material and design
changes.
Delays from Manufacturer with
2
07/07/2023
12/31/2023
177
addressing comments from the
Department for equipment and material
substitution requests.
Total Days(including this request)
352
RECOMMENDATION: It is recommended that the Board approve a contract time extension of
177 calendar days to Beylik/Energetic A JV, for JOB NO. 2021-1179, KE`EI #2A & #313
BOOSTER REPAIR. If approved, the contract completion date will be revised from July 7, 2023
to December 31, 2023.
MOTION: Mr. Brown moved for approval of the recommendation; seconded by Mr. Ney.
CHR. HIRAKAMI: Discussion?
MR. UYEHARA: For the Board's information, sorry, we forgot to include the back-up
information from Beylik, the contractor, so you should have that on your desk this morning. Pretty
lengthy time extension request, based on a change in design to make it functional. Are there any
other questions?
MR. LOPEZ: Yes. You might have just answered my question with that comment. Because
when I read this —it was delayed from the bank (inaudible). So it's got like —we dare to ask the
question, they spend time on it, they're going to ask for delay? That's the way this read to me.
But I think what you said was a design change.
MR. UYEHARA: Correct.
MR. LOPEZ: And that's what this was.
MR. UYEHARA: So I think the department directed a change of design.
MR. LOPEZ: I understand. Okay, thank you.
MR. NEY: Quick question, have you guys ever had to intervene directly to the manufacturer? I
mean, I don't know if that's appropriate. It's really not our responsibility, but just to be the
squeaky wheel sometimes. You know, sometimes you've got push to expedite. I know I've had to
do it with my business, and it's not fun to do but sometimes results happen. So, I don't know if
you guys had intervene.
MR. GOODALE: Typically, you would not because our contract is not with that person, that
entity. So our contract, we try to keep our communications with the person that we have the
contract with, so we would try to avoid having communications with outside parties. I mean, those
Page 8 of 28 July 25, 2023, Water Board Minutes
discussions had taken place, but they're taken place along with the entity that we have the contract
with.
MR. NEY: Right, right.
MR. GOODALE: So we would try to avoid anything like that, you know, outside of the contract.
MR. NEY: I get three times, by night and the day, but I'm just saying sometimes it's like they can
get the letter for us, an email, I mean is there additional steps they can do to push a little harder?
MR. GOODALE: We may request to have a discussion with them, but it would through our
contracted entity.
MR. NEY: Got it, okay.
CHR. HIRAKAMI: Okay, any other discussion, questions? If not, I'll call for the question, all in
favor of approving this contract extension say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
CHR. HIRAKAMI: Moving down to Item 8.
8) SOUTH KOHALA
Chair: Is there any testimony on this item?
A. JOB NO. 2023-1223, WAIMEA WATER TREATMENT PLANT (WWTP) SLUDGE REMOVAL
(Note: This matter was deferred on June 27, 2023. There was no motion made to approve the
recommendation.)
This project generally consists of furnishing all labor, materials, tools, and equipment necessary to
remove and dispose of settled sludge from the Waimea Water Treatment Plant 2.7 MG reservoir,
for a period not to exceed one year.
Bids for this project were opened on June 8, 2023, at 2:00 p.m., and the following is the bid result:
Bidder Bid Amount
2B Environmental, Inc. $0.29125/Gallon
RECOMMENDATION: It is recommended that the Board award the contract for WAIMEA
WATER TREATMENT PLANT SLUDGE REMOVAL, JOB NO. 2023-1223 to the lowest
responsible bidder, 2B Environmental, Inc., for a unit price of $0.29125 per gallon, on an
as -needed basis with a total contract amount not to exceed $350,000.00, and that either the
Chairperson or the Vice -Chairperson be authorized to sign the contract, subject to review as to
form and legality by Corporation Counsel. The sludge removal contract shall be from July 1, 2023
to June 30, 2024.
MOTION: Mr. Lopez moved for approval of the recommendation; seconded by Mr. Ney.
CHR. HIRAKAMT: Discussion?
Page 9 of 28 July 25, 2023, Water Board Minutes
MR. UYEHARA: Thank you for going through that, Mr. Chair. As we mentioned last month, the
vendor, 2B Environmental was not HCE (Hawai`i Compliance Express) compliant, and we
checked again this morning, they're still not compliant with HCE. So if it's appropriate at this
time, I was hoping to ask the Board to not award to 213, to allow the department to figure its next
best options on this. We have some ideas in mind, but we've got to evaluate and see what's most
appropriate procurement to follow.
CHR. HIRAKAMI: When they say "remove," how do they remove the sludge?
MR. UYEHARA: This is through a suction pump, I believe of a suction pump.
CHR. HIRAKAMI: And then they put it into a tanker?
MR. UYEHARA: A close -tanker, and truck it off site.
CHR. HIRAKAMI: And then where do they—?
MR. UYEHARA: The current contractor, they have an agreement with a private Wastewater
Treatment Plant. They truck it offsite, and they have an agreement to dispose that properly.
CHR. HIRAKAMI: And how big is the tanker, the sludge tanker?
MR. GOODALL So if you're familiar with any of the septic pumpers that you see, it's basically
the same type of vector truck like that.
CHR. HIRAKAMI: Oh yeah, like about 4,000 gallons?
MR. GOODALE: I think it's 3,000 or 4,000.
CHR. HIRAKAMI: Because at 29 cents a gallon, at a contract price of $350,000, that's
1.2 million gallons, so that's a lot of sludge.
MR. UYEHARA: The whole lagoon can hold up like, I believe, 2.7 million gallons.
CHR. HIRAKAMI: Oh, yeah? Okay.
MR. LOPEZ: The 2B Environmental, Inc., they have the contract now, or have they done sludge
removal for us?
MR. UYEHARA: Yes.
MR. LOPEZ: And were the compliant? So they've lost their compliance certificate?
MR. UYEHARA: We've talked to them about getting —
MR. LOPEZ: They still haven't produced it?
MR. UYEHARA: No, we've asked them. They haven't been able to produce it because they still
are non -compliant with one of the entities, that signs off on this compliance express, the
compliancy. So 2B was under contract with us this previous fiscal year to do the pumping.
Page 10 of 28 July 25, 2023, Water Board Minutes
MR. LOPEZ: But they weren't compliant then?
MR. UYEHARA: Yes.
MR. LOPEZ: And somehow, they lost their compliancing?
MR. UYEHARA: Yes.
MR. LOPEZ: Given that they were the only vendor that replied, are there other options for new
vendors?
MR. UYEHARA: We thought of it. That's part of our evaluation. We've got to figure out, yeah,
what should we do next?
MR. LOPEZ: Just a gut feeling, I hate to shut them down, then we can't get them back.
MR. UYEHARA: That's why the request is for that revised Board action of not awarding for this
particular Job No. bid, and that allows us to report and figure something else out.
MR. NEY: We're going to rescind not deferred, is that correct.
MR. UYEHARA: It's not deferred as far as I know.
MS. MELLON-LACEY: Not deferring, Ben. I mean, you're either going to rescind or you're just
asking for this —you're asking for it not to be awarded, so it wouldn't come back.
MR. UYEHARA: Okay, that's all, yeah.
MS. MELLON-LACEY: So I guess you would want a revision to the motion.
MR. UYEHARA: So the motion on the floor is correct?
MS. MELLON-LACEY: Yeah, to approve it.
CHR. HIRAKAMI: And we could just vote it up?
MS. MELLON-LACEY: Or vote it down.
CHR. HIRAKAML• Do you guys all understand the motion?
MR. LOPEZ: What's the risk of this work and this vendor if we don't approve this contract?
MR. GOODALE: Fortunately, right now we're in a good place because they had been doing a lot
of pumping at our Water Treatment Plant in Waimea. So one of our concerns at one point was we
were reaching the top of the lagoon, since then we've gained a lot of ground and we're well below
the top of that lagoon. The risk to us is very low at this point. We believe we've got —also, one of
the other things, in addition to this, is that we're in the process of procuring additional pumps, that
are fixed -pumps, where the effluent from the lagoon would get pumped to a different lagoon. This
is kind of a step that's allowed us to remain well below the top level of that lagoon, so we don't
have any risk of over -topping. So right now we're in a good place.
Page 11 of 28 July 25, 2023, Water Board Minutes
We really want to keep this A contract similar to this, as kind of more of a back-up. So yeah,
ultimately, we're going to want to have service similar to this. Whether it's going to be with these
folks or some other —I mean there are other companies that have vector trucks, but these were the
only ones that actually submitted a bid.
MR. UYEHARA: That was actually a good question, Kawena, the risk management side of it.
And for Mr. Unger's information and background, the sludge is actually the buy -product of our
Water Treatment Plant filtration process in Waimea. So basically, we get the stream water; we
filter it through our systems, and then that —we call it a waste buy -product sludge, that's taken out
of the water, is put into this lagoon.
And what Greg was mentioning, usually our primary way of emptying that sludge lagoon is with
these fixed diesel or on -site fixed pumps. Correct? We can pump up to a reservoir higher up.
Then this actual truck mounted sludge removal is another secondary way we can empty that lagoon
out. So like what Greg saying, it's another avenue back-up option for us. That's why we put in an
.,as needed" basis.
CHR. HIRAKAMI: Is the sludge recyclable? Could it turn into like soil?
MR. UYEHARA: Possibly. That's basically what it is. It's sediment.
CHR. HIRAKAMI: Sediment, right?
MR. GOODALL It's not hazardous. And that's why the company 2b had found essentially a
farm that they can take to, and they're using it like a soil amendment. It's just basically a really
fine dirt, silt. But it's not hazardous, because anything coming out of our plant is in the process of
making potable water, so anything we use is non -toxic, non -hazardous substances. Nothing like
that would be found in the sludge.
MR. INABA: Just to help, maybe clarify why we need this back-up service also, we do have what
we call the sludge drying beds but it cannot really dry enough sludge fast enough, so eventually
when the sludge pond builds up. We need some assistance.
CHR. HIRAKAMI: What do we do with that dried sludge? Do we recycle it to farms?
MR. INABA: I think that was a physical haul. But it's not really like if we don't like to have a
contractor, somebody to purchase it already.
MR. UYEHARA: So hopefully, Kawena, that was an adequate response at least for the —
MR. LOPEZ: Oh, yes. I thank Eric explained very well that the minimal issue.
MR. UYEHARA: At least the action on the table.
MR. LOPEZ: Thank you.
MS. MELLON-LACEY: I guess I'd also add, you still have a contract for something like this if
you really needed it in the interest of health and safety, you could procure it.
MR. UYEHARA: Yes.
Page 12 of 28 July 25, 2023, Water Board Minutes
MS. MELLON-LACEY: You can also use alternate procurement methods if you rebid and you
don't get bids, so it's not like they would be stuck. But if you have a non -compliant contractor that
can create a number of issues.
CHR. HIRAKAMI: Okay, let's unstuck ourselves from the sludge and get to the motion now. Be
clear, if you vote "yes" you're voting to award the contract; if you vote "no," that means we're not
awarding the contract. So I'm going to call for the question, all in favor of this motion say "aye."
ACTION: There being no further discussion. Motion to approve the recommendation was denied
by voice vote. Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
CHR. HIRAKAMI: So, motion doesn't pass. Let's go to Item B.
B. JOB NO. 2021-1171 (REBID), LALAMILO B DEEPWELL REPAIR — REQUEST FOR
TIME EXTENSION
Chair: Is there any testimony on this item?
The Contractor, Derrick's Well Drilling and Pump Services, LLC is requesting a contract time
extension of 30 calendar days, due to delays from staff shortages at the Manufacturer's facility.
This was beyond the control of the Contractor.
Staff reviewed the request for the time extension and the accompanying supporting documentation
and found the 30 calendar days to be justified. Note: There are no additional costs associated
with this time extension.
Ext.
From (Date)
To (Date)
Reason
(CaDlens
Delays from Manufacturer.
1
02/28/2023
05/15/2023
76
Delays from Manufacturer.
2
05/15/2023
06/14/2023
30
Delays from Manufacturer and
3
06/14/2023
07/31/2023
47
Department requested modifications.
Delays from Manufacturer.
4
07/31/2023
08/30/2023
30
Total Days(including this
request)
183
Page 13 of 28 July 25, 2023, Water Board Minutes
RECOMMENDATION: It is recommended that the Board approve a contract time extension of
30 calendar days to Derrick's Well Drilling and Pump Services, LLC, for JOB NO. 2021-1171
(REBID), LALAMILO B DEEPWELL REPAIR. if approved, the contract completion date will be
revised from July 31, 2023 to August 30, 2023.
MOTION: Mr. Brown moved for approval of the recommendation; seconded by Mr. Ney.
CHR. HIRAKAMI: Discussion?
MR. BROWN: Yeah, I have a question. In my days with the County doing contracts, there were
never short request for extension like these. I see 76 days, 30 days. We would get them for like
180 days, and that would be like the minimum. And I see another one, this latest one for 30 days, is
that—? They really expect to get things done, I guess, in 30 days'? Kind of surprising.
MR. UYEHARA: That's a good question and good point, and that we'll rely on the contractor to
provide that to us, their timeframes. This one, I believe, the change was our department's request,
to add something to the discharging head. I think the last month, we also brought it up that we want
to try and get ahead of these time extensions, where we're putting on the agenda today, so at least
they're covered until the next month. I'm not sure an exact 30 days, if that's realistic. I mean,
we're trusting the contractor. That's their kuleana to come up with that timeframe.
MR. BROWN: Yeah, they seem optimistic to me, or really exact when a previous, for 47 days.
CHR. HIRAKAMI: I agree with that because we've seen a lot of (inaudible). I know the industry
is like that, but still we've seen a lot. So it would be really diligent on their part to say, "Is it really
realistic. I know I've only asked for 30 days, should have asked for 60 days?"
MR. INABA: Sometimes we get to the specific days, like we'll grant 70 days because of weather
or something like that, so you'll have some extensions like that, right? But in these cases too, I
think we don't really allow them to add their requests. I think we don't want them to, you know,
not focus on our project.
MR. UYEHARA: And that's kind of what we got staff to do too, is that when we get the request,
make sure it's realistic. But if they had it over -estimated, we're probably going to say, "No, we're
going to only be 20 less," because we should be able to finish it by then.
MR. INABA: With the understanding that if another extension is required, it needs a request for
another extension because the manufacturer is not now meeting their predicted timeframe that
they're giving you today. You know, they didn't come back.
CHR. HIRAKAMI: And of course they want to get paid for the job. They want to complete it,
right?
MR. INABA: Yes.
MR. GOODALE: And that's another reason why, you know, like these attachments, because if you
track through here, the correspondence that takes place between the contractor and their sub-
contractors, they're asking those specific question, "How long is that going to take," and that's I
think one of the last exchanges that is in here, "Is 30 days, okay," and he said, "Yes, we could do
that." So from that end, we kind of have to go by what they are telling us.
Page 14 of 28 July 25, 2023, Water Board Minutes
There have been instances where they've asked for like one percent, We don't want to let them
kind of pad it, so if we see something that appears to be they're asking for time that may be really
isn't justifiable, we may say, "No, we'll grant you x-amount instead of y-amount."
MR. UNGER: Can you clarify the second extension for repair, for example Lalamilo Well? Does
that mean the well is offline and not operating at all, or is that limited capacity and still nothing
done?
MR. INABA: Yeah, the well is currently offline.
MR. UNGER: Offline?
MR. INABA: Yes.
MR. UNGER: So how does that —I mean, is that extensive urgency, or what is the reservoir
situation like, or how long is it?
MR. UYEHARA: So this Lalamilo B is in our public water system, called Lalamilo. It has eight
total sources, above the Puako Beach area, above Puako, above Mauna Resort, Mauna Lani. So
yes, this well being down is putting us in a situation because I think we only have four of the eight
operating, so we don't like that.
MR. INABA: But we do have a well also that's in another situation, like you say, we could operate
it at limited capacity.
MR. UYEHARA: So yeah, there's urgency for us to repair.
MR. UNGER: Okay, so at some point when these requests come in, we really need to look at
reservoir capacity, reservoir levels, and at some point it's more urgent than others.
MR. UYEHARA: Yes. This one we looked at the source. Because reservoirs were —our tank sizes
are limited to about 5 million gallons total.
MR. INABA: Because in storage we don't have it.
MR. UYEHARA: That's why the sources that need the storage, we need to make sure our repaired
as timely as possible.
MR. NEY: One last quick question. In terms of scheduled values for payment, in terms of
progressing a job, how's that broken? I just kind get an understanding of what percentages they
draw in each phase of the project.
MR. UYEHARA: For like a well repair?
MR. NEY: Yeah, how does that work out?
MR. UYEHARA: I'll start, maybe Eric can add. But usually the sequence might be mobilization,
and if there's a line item for a well extraction. I don't know how often we —usually monthly we get
the invoices, I'm not sure, maybe less frequent than that. There's probably a line item for the pump
and motor, or even on island pay them for that, or which we receive by them. And then as they're
installing —Depending on how long it takes to install?
Page 15 of 28 July 25, 2023, Water Board Minutes
MR. TAKAMOTO: Yes, depending how long it takes install, we may have multiple invoices. But
typically it's short, so usually it's complete with their repair, and then just submit their invoice.
MR. NEY: I've known projects like that, and not gotten under —the contractor fell out that
whatever was paid out, that whatever was paid out in terms of what work was done is somewhat
even, I guess.
MR. UYEHARA: We still keep track of work -in -progress, and all of our construction repair
contracts have retainage specified it.
MR. NEY: We're on the limb when it comes to payments and work completed.
MR. INABA: We don't typically like prepaid for material or anything like that.
MR. UYEHARA: And if there are questions like on the big —the CIPs, like under Engineering,
there are inspectors that are out more frequently for bigger construction projects when doing
projects, to at least cross-check and verify what level of progress has been completed in the field
versus what they're asking for on their payment request, and Ops. does the same thing with our own
mechanical engineers.
CHR. HIRAKAMI: Okay, the motion on the floor is for the extension of 30 days. Seeing no
further discussion, all in favor of the motion say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
CHR. HIRAKAMI: Moving down to Item No. 9, Miscellaneous. We have three dedications, and
we'll take them one at a time.
9) MISCELLANEOUS
Chair: Is there anv testimonv on these items?
A. DEDICATIONS:
Grant of Easement and Bill of Sale
Grantor: Hope Services Hawaii, Inc.
Tax Map Key (3) 1-5-006:017
Wa`iaka`hiula, Puna, Island of Hawaii, Hawaii
Facilities Charge: $79,235.00 Date Paid: 5/19/2023
Final Inspection Date: 5/23/2023
Water System Cost: $125,874.85
CHR. HIRAKAMI: Using the map, this is a Catholic Church land, right behind the Pahoa Village
road and the Pahoa bypass The details are in your packet. I need a motion to accept the Grant of
Easement and Bill Sale from Hope Services Hawaii. I need a motion.
MOTION: Mr. Ney moved for approval of the recommendation; seconded by Mr. Brown.
CHR. HIRAKAMI: Is there any discussion on this item?
Page 16 of 28 July 25, 2023, Water Board Minutes
MR. INABA: Sorry, it's confusing a little bit. But the easement is actually parallel to an existing
roadway.
CHR. HIRAKAML• It's parallel to?
MR. INABA: It's the loop road that goes around in their Akamae Loop, I think.
CHR. HIRAKAMI: Oh, yeah. That's part of the Old Homestead Road that goes all the way to the
bypass, but Hope Services closed it up because they felt that —that was one of the only two
bypasses.
MR. INABA: The road was so narrow that they couldn't fit basically a new line in there to be able
to service the project. So, the line does look back to their existing line. It was a small 4-inch line.
The new waterline was installed in that easement, and that easement is parallel into that —adjacent,
yeah parallel.
CHR. HIRAKAMI: So they're granting —it's actually on their Catholic Church land?
MR. INABA: Yeah, so they're granting that easement to ours for the access and install the water,
maintenance of the water meter.
CHR. HIRAKAML• And the facility charge and the water system cost is the amount they paid for?
MR. INABA: Yes.
CHR. HIRAKAMI: They put that in?
MR. INABA: Yes.
CHR. HIRAKAMI: To service all those shelters?
MR. INABA: Yes.
MR. UYEHARA: Kurt, correct me if I'm wrong, because they installed a new waterline and
granting easement to the meter is near the end?
MR. INABA: Yes.
MR. UYEHARA: Near the end of this new dotted blue line?
CHR. HIRAKAMI: And how big is that line?
MR. INABA: Six inches.
CHR. HIRAKAMI: Okay, any other discussion? Hearing none, motion to accept the grant of
easement, all in favor say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
Page 17 of 28 July 25, 2023, Water Board Minutes
2. Grant of Easement and Bill of Sale
(SUB-19-001925)
Grantor: Mailani Development LLC
Tax Map Key (3) 2-4-080:013 (portion)
Waiakea, South Hilo, Island of Hawaii, Hawaii
Facilities Charge: $158,470.00 Date Paid: 11/7/2022
Final Inspection Date: 6/15/2023
Water System Cost: $169,125.00
CHR. HIRAKAMI: I need a motion to accept the Grant of Easement and Bill of Sale, from Mailani
Development LLC.
MOTION: Mr. Brown moved for approval of the recommendation; seconded by Mr. Ney.
CHR. HIRAKAMI: Discussion'?
MR. INABA: So this one here again, just like to mention I apologize that my initial map —the
intent was to really just show you guys where these —to give you an idea of where the development
is, not so much of the development. I don't know what you guys prefer; it was really just a request
from a previous Board a while back. But anyway, this one is in Waiakea, I guess between
Kawailam and Haihai.
MR. BROWN: On the left side of the Life Care Center, right?
MR. INABA: Yes.
MR. INABA: Up by the Life Care Center area.
CHR. HIRAKAMI: And so is the waterline with Mailani, and this is just an extension of the waterline
into the development?
MR. INABA: Yes.
MR. UNGER: So the water meter would go right there?
MR. INABA: Would stay within that road. It's got a right-of-way, basically.
MR. UYEHARA: But I think Mr. Unger's question, is there going to be new meter for each property
lot?
MR. INABA: New meters for each lot.
MR. UNGER: Oh, for each lot. Okay.
MR. INABA: Sorry, it's not master meters yet.
MR. UNGER: Oh, got it.
MR. INABA: The waterline extension is in the road. I didn't put it in. I think this was a little —It's
kind of a little more standard of a like a standard subdivision. I didn't show all the new lots, sorry.
Page 18 of 28 July 25, 2023, Water Board Minutes
MR. LOPEZ: So is the easement designated by the white dotted line?
MR. INABA: The white dash line is actually the sidewalk, so it's actually on the outside of that.
MR. LOPEZ: So it's the red line?
MR. INABA: No, the red line is just —
MR. LOPEZ: Because over here it's literally —okay, I can see it. Where is the easement here?
MR. UYEHARA: So the easement is over the road.
MR. LOPEZ: Over the road?
MR. INABA: Yes, the road right-of-way. The road that's created with the subdivision. And even
if this gets dedicated to the County in the future, the reason why we're accepting the easement now
is that process takes a little longer. We get the easement over that same road that would eventually
dedicated to the County. Once it's dedicated to the County, that just supersedes our easement
because of a right-of-way, so then we already have, by that, the ability to maintain our water
system.
MR. UYEHARA: So what's the line size and how wide is the easement?
MR. INABA: The line size is six inches in here I believe. Six inch, typical for a subdivision; if it's
really small lots, then an eight -inch would be required. But anyway, this one here is six inch, and
the easement is typically a road right-of-way, which is 50 or 60, depending on the zoning. So, I'm
not quite sure if the road is going to be dedicated to the County or not. That's just the typical
County right-of-way requirement.
CHR. HIRAKAMI: So are we using that new mapping system to draw all these maps? Where are
you getting all these maps from?
MR. INABA: This clearer review here, I did that because you can kind of see the lots. It's a little
bit newer map, right, and that's available. We have a few accounts, where we tie in with the
County. Eagleview on the bottom left (see maps), I got it from them.
CHR. HIRAKAML• Well, it's really helpful with these kind of pictures because pictures could be
(inaudible).
MR. INABA: Some of them are Google, depends on what I think is the —I just kind of take a look
at what I think might help visually.
CHR. HIRAKAML• Yeah, I googled it after. It's not as clear as this one. This is impressive.
MR. INABA: Right, and then I oriented this a little different. If you look at the north arrow, it's
not straight up on this one.
CHR. HIRAKAMI: Okay, motion on the floor is to —
MR. UNGER: Clarification question, can you tell me what the facilities charge cover and then
what the water system cost charge covers?
Page 19 of 28 July 25, 2023, Water Board Minutes
MR. INABA: Sure. So the facility charge is basically the cost to, you know, incurred of the impact
to our system, for us to maintain, upkeep, and upgrade the system, secure that system there. So
facilities charges are used for system improvements going forward in the future. As more
customers come online, then we have to upgrade system also.
MR. UNGER: So that money is held in an account.
MR. INABA: That money is held in a separate account. The water system cost, basically the cost
for the developer to the contractor, and some of them went to their engineer to install the waterline
in this subdivision service laterals. That's kind of the construction cost basically.
MR. UNGER: Right. That's outside of Water Department. None of that money come to the Water
Department.
MR. INABA: That's just what they need to pay, so we need to go place a valuation of the system.
MR. UNGER: And the facility charge one time, the facility charge?
MR. INABA: Yes.
CHR. HIRAKAMI: So that's just for the laterals, not for the meters itself, right? When the
homeowners move in, they request a meter, and they pay for the meter? I
MR. INABA: They only pay for the installation fee at that point. The facilities charges now are
paid for all of the laterals. Now the homeowner would just purchase the lot and just have to pay to
drop the meter in the meter box basically. Establish an account.
MS. MELLON-LACEY: I think you would use the Rules and Regulations for the department. It
does cover how this works.
MR. INABA: Yes, but now you might get a better idea when you're reading it, because if you're
just reading the rules, it's kind of difficult to understand.
MR. UYEHARA: So just for discussion purposes, the facilities charge for this subdivision, I don't
know if 22-24 lots, but basically each lot will need a 5/8-inch meter, so we have a facility charge
for one 5/8-inch meter, times 24 lots. So that's the FC, the facility charge.
MR. NEY: So to get this straight, the developer has to put the (inaudible) line in, and they have to
tap that line to put the laterals?
MR. INABA: Yes.
MR. NEY: We're only providing meter?
MR. INABA: Yes.
MR. NEY: Okay, got it. Thanks.
MR. INABA: So to get the final subdivision, the infrastructure has to be complete, and that's
actually a Planning requirement, make sure all of the agencies have given their final approval.
Page 20 of 28 July 25, 2023, Water Board Minutes
MR. NEY: So that's only thing, you kind of have a flat -rate, like if you do a hot tap on the new
line, it's like a fix -cause, right, it's not associated with a degree of difficulty of what it entails.
MR. UYEHARA: What Ben is referring to is our service lateral installation charge and those are
flat fees based on the State or County right-of-way; and so if you're on the same side of our
waterline, same side of the road of the road and the waterline, on the other side.
MR. INABA: That would be not for a development but for existing lots that don't have service, and
they're requesting service.
CHR. HIRAKAMI: Any other discussion or question? Seeing none, all in favor of accepting the
Grant of Easement and Bill of Sale from Mailani Development say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
CHR. HIRAKAMI: Moving on to Item A, this is another Grant of Easement and Bill of Sale.
3. Grant of Easement and Bill of Sale
Grantor: Absolute Builders LLC and Kahealani K. Kaaihili
Tax Map Key (3) 4-5-004:148 (Roadway) (3) 4-5-004:025
Kaao, Hamakua, Island of Hawaii, Hawaii
Facilities Charge: $24,380.00 Date Paid: 7/10/2023
Final Inspection Date: 5/2/2023
Water System Cost: $56,000.00
RECOMMENDATION: It is recommended that the Water Board accepts 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.
CHR. HIRAKAMI: Motion to approve the Grant of Easement and Bill of Sale, any motion?
MOTION: Mr. Brown moved for approval of the recommendation; seconded by Mr. Ney.
CHR. HIRAKAMI: So, discussion on this?
MR. INABA: Sorry, the reason why I did a little more detail on this one, the road lot is granted;
and there's also a little dot, as you see the first lot near Ohia Street there, a little red encroaching
into that lot, that's a fire hydrant easement also, so that's why there's that extra TMK, as far as the
Grant of Easement and Bill of Sale.
MR. UYEHARA: This one has a waterline going down that road easement?
MR. INABA: Yes.
MR. UYEHARA: That's an existing road easement?
MR. INABA: No, that's a new —yeah, so it's a new road that this whole subdivision was created
actually through a variance, and now water became available for it, and they decided to install the
system to our standards to satisfy, and they can remove the variance.
Page 21 of 28 July 25, 2023, Water Board Minutes
CHR. HIRAKAMI: So the existing waterline was on Ohia Street, and they're bringing into the
subdivision?
MR.INABA: Yes.
CHR. HIRAKAML• Any other discussion, questions for Kurt? Seeing none, all in favor of
the motion to accept the Grant of Easement and Bill of Sale from Absolute Builders and
Kahealani Kaaihili say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
CHR. HIRAKAMI: Moving on to Item B, this is another request for time extension.
B. MATERIAL BID NO. 2021-04, FURNISHING AND DELIVERING SPARE PUMP AND
MOTOR SETS FOR PARKER RANCH DEEPWELL, WAIMEA DEEPWELL, AND KEOPU #1
DEEPWELL, AND REFURBISHING PUMP AND MOTOR SET FOR HALEKPI DEEPWELL
FOR THE DEPARTMENT OF WATER SUPPLY — REQUEST FOR TIME EXTENSION
The Contractor, Beylik/Energetic A JV, is requesting a contract time extension of 306 calendar
days for Section 1 — Parker Ranch Deepwell, due to submittal and manufacturer scheduling delays;
300 calendar days for Section 2 — Waimea Deepwell, due to submittal and motor testing delays;
311 calendar days for Section 3 — Ke6pu #1 Deepwell, due to submittal and manufacturer
scheduling delays; and 340 calendar days for Section 4 — Haleki`i Deepwell, due to shipping and
motor repair delays. These delays were beyond the control of the Contractor.
Staff reviewed the request for the time extension and the accompanying supporting documentation
and found only 248 calendar days to be justified for Section 1 — Parker Ranch Deepwell, only
263 calendar days to be justified for Section 2 — Waimea Deepwell, only 278 calendar days to
be justified for Section 3 — Ke6p5 #1 Deepwell, and only 279 calendar days to be justified for
Section 4 — Haleki`i Deepwell. Note: There are no additional costs associated with these time
extensions.
Ext.
From
To (Date)
Days
Reason
#
(Date)
(Calendar)
12/11/22
8/16/2023
248
Delay in receipt of equipment submittals,
and delays in manufacturer scheduling.
12/11/22
8/31/2023
263
Delay in receipt of equipment submittals,
and delays in motor testing.
1
11/11/22
8/16/2023
278
Delay in receipt of equipment submittals,
and delays in manufacturer scheduling.
Delay in shipping of equipment to
10/10/22
7/16/2023
279
manufacturer, and manufacturer delays with
motor refurbishment.
Total Days (including this request)
248, 263, 278 & 279
Page 22 of 28 July 25, 2023, Water Board Minutes
RECOMMENDATION: It is recommended that the Board approve a contract time extension of
248 calendar days for Section I — Parker Ranch Deepwell, 263 calendar days for Section 2 —
Waimea Deepwell, 278 calendar days for Section 3 — Kcbpu #1 Deepwell, and 279 calendar days
for Section 4 — Haleki`i Deepwell to Beylik/Energetic A JV, for MATERIAL BID NO. 2021-04,
FURNISHING AND DELIVERING SPARE PUMP AND MOTOR SETS FOR PARKER RANCH
DEEPWELL, WAIMEA DEEPWELL, AND KEOPO #1 DEEPWELL, AND REFURBISHING
PUMP AND MOTOR SET FOR HALEKI`I DEEPWELL FOR THE DEPARTMENT OF WATER
SUPPLY. If approved, the contract completion dates will be revised from December 11, 2022, to
August 16, 2023 for Section I — Parker Ranch Deepwell; December 11, 2022, to August 31, 2023
for Section 2 — Waimea Deepwell; November 11, 2022, to August 16, 2023 for Section 3 — Keopu
#1 Deepwell; and from October 10, 2022 to July 16, 2023 for Section 4 — Haleki`i Deepwell.
CHR. HIRAKAML• Do I have a motion?
MOTION: Mr. Ney moved for approval of the recommendation; seconded by Mr. Brown.
CHR. HIRAKAMI: Discussion?
MR. UYEHARA: Just for background information again, this is part of our efforts to improve
resiliency. So it's a material bid. It's a material bid to furnish and deliver spare pumps and spare
motors. We put this out as a package. Beylik was awarded the four sections. Unfortunately, as you
can see, there are delays in it, but again this is an important part for our department to complete
because some of these spares, like Ke6p6 and maybe even the Waimea motor could possibly be
used in other different sets of wells, possibly. So again, it goes back to our balancing cost versus
having the resiliency, having a spare equipment on -island because it takes a long time to get stuff to
the island. But yeah, this is where we're at for this material bid. Eric has some information, so I
asked him to look up, as far as within the four sections, what is still owed to us and where we're at
in this section.
MR. TAKAMOTO: So for Sections 1 through 3, we received all the motor equipment that was part
of that particular section, it's the pumps that are the reason for most of these delays. In the case of
Section 4, we haven't received any of the equipment yet.
MR. UYEHARA: Like Eric mentioned, we have part of that delivery, for 1, 2, and 3 sections the
motors are on -island.
CHR. HIRAKAML• Is this a first-time extension because it goes all the way back to
December 2022? Was there a request for a time extension (inaudible)?
MR. UYEHARA: No, this is the first-time extension, and yes, thank you for asking that. We
recognize that there is no completion dates, or end of 2022. I think Eric can provide some more
background information. But from what I understand, we were pushing the contractor to get a
request for a time in, again that's on the contractor. So I think we have a plan how to address that
after.
CHR. HIRAKAML• So the original completion date was 12/1 1/22, 11/11/22, and 10/10/22, that
was the original?
MR. TAKAMOTO: Yes.
Page 23 of 28 July 25, 2023, Water Board Minutes
CHR. HIRAKAMI: And since that time —and now, they would come in for a request to carry all
the way back, from then until —looks like a month from now?
MR. TAKAMOTO: Yes.
CHR. HIRAKAMI: So in my mind, I look like maybe a 30-day extension rather than 248-day
extension. But I see you've got to take it all the way back to the original completion date. Is this
normally how it works or would we —before the completion date of 12/11/22 would be faced with a
time extension?
MR. UYEHARA: That's typical. We strive to bring the extension request to the Board before they
expire. It's not uncommon where we had to go retro.
MR. UNGER: I'm really happy to see that that Water Department is working on resiliency plans,
and knock out fires, because in Kona as you know, couple of years ago, when the pumps went
down, it is just bad. Bad, bad, bad. And this is a great example of why you try to order back-up
parts because you needed it today, telling you've got to wait 300 days. So anything we can do to
encourage you to be as resilient as possible; and depending on the budget, get as many back-up
parts as possible, because again 300 days is just crazy, unacceptable, especially if a well is down
and you're waiting on a part.
MR. UYEHARA: Just for the Board within our General Requirements and Covenants (GRCs),
there are provisions for liquidated damages when our deadline is not met by the contractor. We've
had to use that before, you know, when it's appropriate.
MR. UNGER: Yeah, again from public to your standpoint.
CHR. HIRAKAMI: Any further discussion, questions? If not, I'm going to call for the question.
All in favor of this contract extension say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
CHR. HIRAKAMI: Moving on to Item C, this is another request for time extension.
C. MEMORANDUM OF UNDERSTANDING (MOU) TO IMPLEMENT THE EMERGENCY
POWER FOR WATER INFRASTRUCTURE PROJECT IDENTIFIED WITHIN THE
COMMUNITY DEVELOPMENT BLOCK GRANT — MITIGATION PROGRAM
The Department of Water Supply (DWS) is proposing to enter into a MOU with the County of
Hawaii Planning Department and County of Hawaii Finance Department to facilitate the
Community Development Block Grant — Mitigation Program (CDBG-MIT) funds allocated to
DWS' Emergency Power for Water Infrastructure project. This project involves the installation of
power transfer switches and supporting infrastructure at Pi`ihonua #1, Pi`ihonua #3, `Ola`a #3 and
`Ola`a #4. The federal share will be 100% of the total project cost, not to exceed $835,000. DWS
will be responsible for the procurement of the professional services and construction, in accordance
with the MOU.
RECOMMENDATION: It is recommended that the Board approve the MOU with the County
of Hawaii Planning Department and County of Hawaii Finance Department to implement the
Emergency Power for Water Infrastructure project identified within the CDBG-MIT, and that either
Page 24 of 28 July 25, 2023, Water Board Minutes
the Chairperson or the Vice -Chairperson be authorized to sign the MOU, subject to review as to
form and legality by Corporation Counsel.
MOTION: Mr. Ney moved for approval of the recommendation, seconded by Mr. Brown.
CHR. HIRAKAMI: Is there any discussion on this?
MR. UYEHARA: I'll let Warren provide us something.
MR. CHING: This is an MOU between the Department of Water Supply, County of Hawaii
Planning and Finance. Basically, it just lays out the terms and conditions necessary for the
department to access Community Development Block Grant Hazard Mitigation funds to install
transfer switches at four department water sites that serve low to moderate income areas. The
project entails installation of transfer switches which basically allow the department to drive up a
generator, plug it in, and flip a switch, you know, to get it on generator power, so this will allow us
to get that transfer over to generator power a lot faster and safer, also.
I should mention too, so this is coming from Housing and Urban Development, and the federal
share is 100 percent, up to $835,000, so meaning the department doesn't have to put up any money
up to that limit. But other than that, I'd be happy to answer any questions.
MR. BROWN: Did you folks put together the project cost or did Housing just say we got the
CDBG, you guys can get—?
MR. CHING: We did. The good thing about this project is each site we can do a transfer switch.
So we gave them a few sites, and I guess based on how much money was available to this type of
project, we would kind of get it down to only the sites that cover.
MR. BROWN: Oh okay, based on their allocation too.
MR. UYEHARA: And Warren, correct me if I'm wrong, I think Warren mentioned it, but the
grantee is our County's Planning Department from the CDBG, and I believe it's their Lava Disaster
office has kind of taking the lead on this. From what I remember, there are other County projects in
this award, and we're just one of the County departments that are participating. It's kind of a good
thing, like you said, "Outside funds, outside resources to complete our improvements."
MR. NEY: So this $835,000 is the total amount to cover the whole program?
MR. UYEHARA: No, just ours. I think the total was almost —
MR. CHING: $6.8 million for the County. And I should add too, so these sites were sites chosen
within low to median moderate income areas, that was a focus of this grant.
MR. NEY: That's great.
MS. MELLON-LACEY: So this is really more internal operations between the department and the
County?
MR. UYEHARA: Correct. That's why we wanted to put it on the agenda, to bring this
Memorandum of Understanding to the Board, just so you're aware that we will be working with
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them, with other County agencies for this. Just in case, like CDBG, to see that our approving body
occurred and approved this.
CHR. HIRAKAML• So outside of the low-income areas with the department working through to do
transfer switches in other areas too, so we can drive generators up there because storms are not that
selective, they don't miss any money (inaudible).
MR. CHING: Yes, we're trying to more so game plan around that. We've done some in the past
already. We're working on I think four sites now, so we're in contract to install those now. And so
we figured we'd start with the places that have generators on site already, and then now we're, I
guess in the next phase, looking at sites that don't have generators on site but that can have a
generator drive up to it and be able to plug in.
MR. NEY: These are not auto transfer switches, these are manual transfer switches.
MR. CHING: These are all manual transfer switches.
MR. NEY: Is there not a reason why we don't go with auto transfer switches?
MR. UYEHARA: We need to control that. I think our Operations would prefer to do it manually,
especially if it's after a storm.
MR. NEY: Risk, risk. Manually, yeah.
MR. CHING: Yeah, and I think the idea is our guys would go and check out the site to see if it's
safe to run, and then do their transfer.
MR. GOODALL There's a lot of back and forth between us and also HECO (Hawaiian Electric),
so their preference would be primarily for manual.
MR. NEY: Even the home ones have auto switches. There's delays and stuff, so it causes issues
with electricity, but I just thought —they can do it on the house. It seems like it wouldn't be too
hard to do on the facility.
MR. GOODALE: They can, although the value of our equipment far exceeds what an average
household, so we tend to be a little on more the cautious side.
MR. UYEHARA: There's probably some checks we want to do too, like Warren said, motor or
something. I mean if we find that the motor is bad already, then we don't want to start the generator
up automatically, right?
MR. CHING: Yes.
MR. UYEHARA: But the other thing I wanted to add too was the sites that were selected, and what
Warren was mentioning, the transfer switches that we've done in the past, like kind like the larger
loads, some of the larger, the bigger wells, because do have some mobile 200 and 400 kilowatt
generators that the department owns that we can take too, like a smaller, like Hawaiian Ocean View
Estates well, or Kalapana, maybe some of the smaller wells, loads, where we could take a truck
trailer.
Page 26 of 28 July 25, 2023, Water Board Minutes
MR. GOODALE: And even for booster pumps, we're trying to identify, you know, as much from
the resiliency standpoint as we ca.n,1 mean each site has a lot of different components. It's not just
the well pump, it may be the well pump and a booster. But we're trying to identify what gives us
the most resiliency in terms of that specific event. You know, just to pump the water where it's
needed.
MR. CHING: And in terms of funding, I guess, FEMA—we've been working with FEMA Hazard
Mitigation Grant Program. We just put in another application for more sites, so hopefully we'll get
an opportunity there, otherwise we'd have to figure it out on our end, which is a Capital
Improvement Plan situation. Yeah, we try to get as much Federal FEMA money. Even Housing
and Urban Development, which is —this is a Housing and Urban Development project.
CHR. HIRAKAML• I like the 100 percent.
MR. UNGER: I was going to ask that question, but I think it was answered. Is there somebody at
the Water Department that does research and is aware of these federal grants out there to help with
sustainability and capital improvements?
MR. CHING: Not anyone specifically.
MR. UYEHARA: Warren. I think that's pretty important, unless you just hear from the County.
MR. UYEHARA: I'm bind of serious because Warren is our Energy Management Analyst, so
things along those lines, he does look at other funding possibilities; and same with our Division
Heads. Candace do also I think get in touch with other Finance Departments. Recently, we've
actually been working with the outside consultant that helps us on the federal level to strategize and
how to line things up. I don't understand the Federal budget process, the appropriations and all that,
but at least they have the know-how to try to find us some more projects, the Department of Health,
and then the federal side too.
MR. UNGER: Okay, good to know.
MR. UYEHARA: We're working on that.
MR. UNGER: Good.
CHR. HIRAKAML• All right, so this was an easy one. All in favor on the motion to accept the
MOU with the County say "aye."
ACTION: There being no further discussion. Motion was carried unanimously by voice vote.
Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
D. MONTHLY PROGRESS REPORT
Chair: Is there any testimony for this item?
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.
CHR. HIRAKAMI: I'm turning it over to Kawika.
Page 27 of 28 July 25, 2023, Water Board Minutes
MR. UYEHARA: And actually I'll turn this over to Kurt.
MR. INABA: The red is what I changed each month. Just kind of an update of our projects. What I did want
to mention, I was hoping to get an update for Puako, specifically if the materials made it on the July 14m
shipment. The contractor did not get any confirmation. I'm hoping that they still did, they didn't get
anything saying they did. So I apologize, we weren't able to get that information in time for the meeting.
With that, we're communicating to set up the community meeting with the Puako. We're also going to
include Public Works because they're also timing a project to do a complete resurfacing of Puako Drive, so
hopefully we can work together and maybe save us some money; but if not, we're saving them some money
CHR. HIRAKAMI: Where's the new waterline going, on the side of the road or the middle of the road?
MR. INABA: Mostly in the makai lane, but it does go back and forth a little bit. It stays typically within the
travel lane. We do have in some areas where we have like eight shoulders, we can put it in eight shoulders.
The shoulders aren't paved. We do run into issues with washing out of the trench. If there's water flowing,
they'll run off the trench first, basically.
CHR. HIRAKAMI: Is it going alongside the existing waterline or is it going in the exactly the same location?
MR. INABA: No it goes parallel to it, mostly on the —we try to keep enough space distance from it so that
we can install this new line while the existing line stays in service. There are some provisions to put, in this
project specifically, some temporary connection so that the new line can be installed to how we want it rather
than have it way down deep because it's at sea level, and we really don't want to have it put down too deep.
MR. NEY: So if you can align the schedules with the repaving, that's a cost benefit to the contractor, correct?
Because he would be responsible to cut the road, to excavate it out, and then patch, right, all the way down?
MR. INABA: So basically what it is, is Public Works had asked us to keep them abreast so that they don't go
in and resurface it and we come in six months later, right, and dig it up and pave it. I mean, install a
waterline, and then basically patch it.
MR. NEY: Your guys would precede theirs.
MR. INABA: Yeah, we just want to make sure that our work goes first; but with that being said, as a project
manager knowing we have this to do, we're hoping that we can work together to have a smooth transition at
the end of our project, when the paving is being done, to save either them or us money.
MR. NEY: You guys should have highlighted that the fact that you guys asphalted the road all the way up
Kohala, Hala`ula?
MR. INABA: Oh yeah, we did. So yeah, the contractor participated in that bid. We agreed to pay for
materials, and they contributed all the labor.
MR. NEY: I mean, that should be like the community thinking back, because a lot of these roads are private.
They're looking for anything for something, to come and asphalt.
MR. INABA: That one was hard because of the condition of the existing road, and we pointed it out when we
did that Change Order, that there would be a lot of finger -pointing that we think we can avoid. We didn't
want to get into that situation where the community is going to say, "Hey, your contractor," —our contractor,
so we're responsible, right, but did this for our road. And then the contractor has all these pictures of the road
in the condition it was before we even got there and saying, "Hey, we have no—" in fact, we —
MR. NEY: That road was in a terrible shape. But it's like when you split the cost of repairing the road, the
guy at the bottom doesn't want to pay their equal share.
MR. INABA: Right.
Page 28 of 28 July 25, 2023, Water Board Minutes
MR. NEY: No, that was a nice gesture, I guess, from the department.
MR. INABA: And the contractor, as well, I mean they kicked in.
MR. UYEHARA: Thanks for bringing that up because that's actually kudos to staff, Kurt and his staff, Greg
and his staff, and Waimea, because I think that relationship with the contractor allowed for a fair, cordial
agreement on how to —ultimately, for the community. We need access to our well site at times.
MR. NEY: Thank you guys.
CHR. HIRAKAMI: Any other questions
MR. INABA: Not really. I know we have in town, Kilauea-Keawe, is probably disrupting traffic. I think
right now they're still working on the gas, so I'll just try to get an update on their schedule. We will likely
start earlier but mid -August, not the k" but maybe 2nd week of August, but hopeful for them to start on the
waterline portion.
CHR. HIRAKAMI: Telephone line for the alarm. What kind of alarm is that? Is that a low-level alarm?
MR. INABA: It's an alarm system from the site itself. So there's the well, or if there's a low level in the
tank, it will still call out if there's an outage because it's a physical phone. We have what they call an auto -
dialer, and you program. Depending on the signal that reaches alarm port, it will dial out to either our main
office here at this working time, or the answering service. I believe it will state that "Alarm at Hala`ula Well
site for low level," or something like that. We programmed that in there.
CHR. HIRAKAMI: Do all well sites have that?
MR. GOODALE: Most of them.
MR. INABA: Yeah, especially the older ones. We find it reliable, but there are some that are little bit more
high tech.
CHR. HIRAKAMI: Is it wireless kind of alarm?
MR. INABA: Some of them do because they don't have telephone service. Some of them have like a
cellphone. Radio and microwave.
CHR. HIRAKAMI: Any other questions for Kurt or Kawika? If not, we're going to move on to Review of
Monthly Financial Statements.
E. REVIEW OF MONTHLY FINANCIAL STATEMENTS
Chair.- Is there any testimony for this item?
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.
MS. GRAY: For this month we have the Financial Statements for June 2023, the end of our fiscal
year. So this would be our first report, and it doesn't include any year-end adjustments, that will
come in next month's meeting.
So on your coversheet, I just pointed out what was added, or highlighted, as a significant change for
this month, which is an increase in our receivables, 22% or $1.5 million from the prior year, and
Page 29 of 28 July 25, 2023, Water Board Minutes
that's attributed to our water sales great increase, as well as additional receivables that are monies
due to us, which is not as significant as the water sales. That's reflected in your Balance Sheet, the
first report.
The other thing I'd like to point out, especially at the end of the year, our net position increased
again for this fiscal year. As the auditors did point out that that's an indicator of our financial
position. So the increase was higher for Fiscal Year 2023. It may change again next month when
we do our Year -End adjustments.
Next report is your Income Statement, and that of course shows an increase in our revenues. Slight
increase in our expenses but not that much, so our net income had a significant increase from the
prior year.
Our Budget Status Report: Our receipts or revenues exceeded our budget by five percent, and our
expenditures were under, at this point, by 4 percent. We're on good track, I would say, heading
towards our financial (inaudible). Are there any questions.
MR. UYEHARA: So Candace, next month will have your adjusted year-end report end of July, and
the July report'?
MS. GRAY: Yes.
MR. UYEHARA: So the Board will see a couple financial statements?
MS. GRAY: Yes.
MR. UYEHARA: And then normally those that were given were audited, as well? Eventually,
we're going to do another Single Audit after the Financial Audit, later at the end of the year.
MS. GRAY: Financial Audit, yes, so those reports as well as all the information they request were
given to the auditors and they are audited. In January and February, we'll have the
Final Audit Report.
CHR. HIRAKAMI: Do we go through a single audit?
MS. GRAY: We do.
CHR. HIRAKAMI: Will we receive more than $750,000 of federal funds?
MS. GRAY: Our Single Audit is actually through the County, so we submit our information to the
County, and the Board is actually —
MR. UYEHARA: Sorry, our departments, what I was referring to, the department's Financial
Audit, which is later this calendar year.
MS. GRAY: For this fiscal year.
MR. UYEHARA: For Fiscal Year 2022?
MS. GRAY: Yes.
Page 30 of 28 July 25, 2023, Water Board Minutes
MR. BROWN: I have a question. Based on what Steve said, the Single Audit is for the federal
fund, right?
MS. GRAY: Yes.
MR. BROWN: How often do you folks go through that? Is that annually?
MS. GRAY: Yes.
MR. BROWN: Is that because of the amount of funds you receive or because they found issues?
MS. GRAY: The Single Audit is another audit report for any federal funds that we receive. What's
included is really like our FEMA, or USDA, or any Federal funds.
MR. BROWN: Finance still does that, or do they contract?
MS. GRAY: Yeah, it is conducted by an independent auditor.
MR. BROWN: Right.
MS. GRAY: But the County has the contract actually. The contract is though the Legislative
Auditors.
MR. BROWN: Legislative, okay.
CHR. HIRAKAMI: Any other questions for Candace? Okay seeing none, we're going to move on
to the Manager -Chief Engineer's Report, and so we'll go to Kawika.
F. MANAGER -CHIEF ENGINEER'S REPORT
Chair: Is there any testimony for this item?
The Manager -Chief Engineer to provide an update on the following:
North Kona Wells
MR. UYEHARA: So for North Kona, for some of the newer Board Members, just background.
Like what Mr. Unger was mentioning earlier, years back we had issues in Kona, Makalei Well is
down. So at that time, the Board asked us to report monthly the repair status.
So for this month in North Kona water system, we have 14 total sources and are operating or online,
and four of that are still offline. So Palani Well is offline, and that one we have time extension till
August 30' of this year to repair. Hualalai Well, we have a time extension till September 15' to
repair. Then Makalei Well, we got from the developer's contractor that some of the electrical
equipment might be on the island already, so they're working to schedule some of the electrical
demolition work, and then that contractor for the developer still got to get timeframe on pump and
motor shipment, but we haven't gotten that yet. Wai`aha Well, we're still working with Corp.
Counsel on that, so it's on our site. Any questions?
MR. LOPEZ: Makalei, equipment that's on, weren't received yet?
Page 31 of 28 July 25, 2023, Water Board Minutes
MR. INABA: Maybe I can clarify.
MR. LOPEZ: That's been a long, long time, years.
MR. INABA: It has been. What happened was we had to come back basically and make a decision
on what to put back at that point, because we're saying we didn't agree with the water —the water
quality was not desirable. There were provisions in the original agreement that we could require
them to reduce that pump size.
MR. LOPEZ: I remember that.
MR. INABA: So they are putting in now a pump and motor that's half of the original capacity.
Hopefully the draw is slower, so it won't drop as much —I guess we call it "contaminant," but it's
not. So they have done that, they redesigned it. All the equipment, you know, that the electrical
equipment has to be replaced, so that's why they have to do the demolition of that, removal
basically of the existing controls, you know, electrical equipment.
What they are waiting on is the pump and motor. What happened was I think the pump has to be
redone. It didn't quite meet their specs, in terms of when they did the efficiency testing, and that's
being addressed right now. So they're waiting on that to be taken care of so that they can ship that.
MR. LOPEZ: Is there any dart and a target, Makalei coining back online? Is that reasonable?
MR. INABA: I believe if they get started —Eric might know better, with the amount of work they
got to do. Within a year or so.
MR. LOPEZ: Within a year you think?
MR. INABA: Hopefully, yeah.
MR. LOPEZ: It's just that it's been going on for many years.
MR. INABA: And that's what we're asking them, is basically for a schedule so that at the least we
have an idea of when that's coming back. That is still —equipment that was under warranty, that's
why the developers doing this. They cannot get really any more water until they do this right.
MR. LOPEZ: Thank you for that.
MR. UYEHARA: Maybe it's appropriate for the new Board Members to mention, and for the
Board, I think that's where our Operations and Engineering work hand -in -hand to make sure they
stay on top of status, because we say "redundancy and resilience is a focal point for the department.
We've got to put on the continuous water. I know that ongoing meetings that happened and
occurred to —when we're talking about the Lalamilo Water System, we track of, as best as we can,
push certain contractors to get things done, have continuous use when things happen, because things
happen.
MR. INABA: South Kohala and North Kohala we have biweekly meetings basically, that's one
meeting, and we also have a Noth Kona meeting.
MR. NEY: I guess too, Keith was telling me, kind of like looking at areas, just addressing pump
locations, the hydraulics, and things involved with moving water around, and elevation and such.
Page 32 of 28 July 25, 2023, Water Board Minutes
So I'm sure you guys run through different scenarios of pumps going down and how they'll play
out.
MR. UYEHARA: The Kona guys get'um. I mean, yeah, because there's different hydraulic
situations. It's not like it is one system can feed everywhere.
MR. INABA: Every system is pretty unique. Broaden that a little bit that the city so that we can
have some compatibility between systems. We're not going to get the most efficient pump and
motor maybe for that, but at least it can be installed, right? We can bring water up to customers.
That's all I have, thank you.
CHR. HIRAKAMI: Great, thank you.
G. CHAIRPERSON'S REPORT
Chairperson to report on matters of interest to the Board.
CHR. HIRAKAML My report. I just want to reiterate that I appreciate all the Board Members
doing their homework, for coming to the meeting. Discussion is more lively and more intelligent.
We're able to get to items on time. We had a whopping agenda, and we got through in 90 minutes,
so that's pretty good. I'd like to thank Keith for joining the Board. Hopefully you weren't bored
during this first meeting, and thanks for coming because we just made quorum.
MR. UNGER: I was happy to hear that you enjoy (inaudible), so thank you.
CHR. HIRAKAMI: I'd like to see a system where we can add things ahead of the meeting to the
agenda, possibly with an email chain between the members and myself, and between myself and
whoever makes the agenda. Because we mention agenda items, and we never discuss it; like
Kawika wanted to give his final report for finalize of PIG, and we never got around to that. Ben
mentioned something about this Power Cost Charge, and we were talking about that, we can't
discuss it unless it's agendized. So, if we had kind of like an email chain.
MS. MELLON-LACEY: You have to be careful about that.
CHR. HIRAKAML• What?
MS. MELLON-LACEY: The Sunshine Law.
CHR. HIRAKAML• About what?
MS. MELLON-LACEY: About an email chain, okay, because one board member to another, but
not if it becomes serial communication. So perhaps if those items are communicated to the Board
secretary, then the secretary could—
CHR. HIRAKAMI: Yeah, just a system saying, "Okay, we're developing the Board agenda, do you
have any items for the Board?"
MR. UYEHARA: So is that appropriate and allowed. Like I think what Steve might be asking, you
don't want to wait to a meeting and say we want to talk about something at a later meeting.
Page 33 of 28 July 25, 2023, Water Board Minutes
CHR. HIRAKAMI: Right. Yeah, we've had several instances where we may not talk —it's not on
the agenda, we can't talk about it and then we forget about it, and they never get on the agenda.
MS. MELLON-LACEY: So the way this is handled at most Boards, would be if the members
would give their items to the secretary, and then you and the secretary prior to finalizing the agenda
would go over those items. And then if somebody has proposed one, you would go take Kawena
proposals up and you wanted to get more information, then you and Kawena, two people, could talk
about it. So, that's bind of what most Boards would do. And you as the secretary —
MR. NEY: And I think it was a draft of the agenda —ahead of time, and then we can go, hey, these
guys —
MR. UYEHARA: Honestly, our agenda we post the final a week prior to —but we're still working
on finalizing it, right up to almost the agenda deadline post. So I think like what Diana —if I could
recommend, suggest that —you know, Nora is the Board secretary. If there is interest the Board
wants to put on the agenda, however you want to have it—
CHR. HIRAKAML Kawena can email her and say, "I want to put the final of the PIG on the
agenda, and then Nora says, "Hey, I got a request for that, is that okay with you," I say, "That's
fine," and then it gets added to the agenda. I think that's the way.
MS. MELLON-LACEY: And Kawena could copy you on that. So if members would send to Nora
and then copy you as the Chair, then prior to finalizing you and Nora can kind of iron out.
CHR. HIRAKAMI: I think that would be a good way, because we bypass up agenda items, you
know, we think of something and it's too late; and by the time the next agenda comes, it goes. So,
we've been bypassing these discussions. Like last month, we had a real lively discussion on how to
reduce the account receivable, that was like, "Well, you can't talk about it, it's not agendized." So
we finally got it agendized, and we had a real nice discussion on strategies to do that. So I think if
we had more of a better system, I think that would make a meeting more relevant to the members
because we don't see their (inaudible).
MR. LOPEZ: Chair, isn't that what, like item 4 on the agenda is for? Although, it's kind of
catching you at the last minute, Approval of Addendum.
CHR. HIRAKAMI: It has to be a real important, and can't wait, and of utmost important to be
added on the agenda, at the last time.
MS. MELLON-LACEY: I mean you could have an item on the agenda, discussion of items for the
next agenda, and let people —and reduce items that way. But this item is specifically to add
something to the agenda, you have to be very cautious about that.
MR. INABA: Maybe just to, like what Kawika was saying, "We're working on the agenda, right
up to that date." You know, I would put maps ahead of time, but basically the dedications are like
they're last minute, so I'm not going to be able to make a map in time already.
MR. NEY: Because it isn't just simple saying, "Agenda item, looking restructuring this or that." I
mean it's just something someone has to write up and put in there.
MR. UYEHARA: So I would suggest that maybe if the Board wants to add something, you will
email Nora, copy to Chair; because once we receive on our side, Nora will come ask and myself
Page 34 of 28 July 25, 2023, Water Board Minutes
how to phrase it on the agenda. We might even have to come to legal just to agendize properly,
word it properly, right, and then we might just say, "For discussion purposes," or something like it.
Because we may come back and ask the Board Member that inquired, or sent a query in, to try to —
make sure we understand what they're trying to do, right, with the intent of the agenda item is.
Discussion, or discussion and action, or just strictly background information. So yeah, there might
be a multi -step process. You sent a request in, we might have to come back and say, "Okay, is this
what you're intending?" Okay, and then we have to figure out how to word it properly on the
agenda, so it's transparent.
MS. MELLON-LACEY: 1 would say based on because you have this posting requirement, six days
before, and you can't wait till the sixth day to put it in there. You get so inundated, and you don't
get your agenda on at all.
MR. NEY: So, shoot it off early.
MS. MELLON-LACEY: Yes, you've got to do this between —like the first two weeks after this
Board meeting, you get ready for next. I know the departments works like this. They're always up
in front of what it's going to be on that. So if someone wants to recommend something, do it quick.
CHR. HIRAKAML• The secretary, Nora can send out like a request for agenda items, maybe two
week prior to the posting, and then everybody (inaudible) and copy the Chair on the response to
Nora.
MS. MELLON-LACEY: But not each other.
CHR. HIRAKAML• Yeah, not each other. Just copy the Chair, And then, "Nora, I want this —like
Ben would say, "I want to discuss Power Cost Charge and that on the agenda," and then copies me
to you, and then you say, "Hey, is this-7 And then I ask, "Is that relevant to the department," and
then we can put it on the agenda if it's relevant." Something like that.
MS. MELLON-LACEY: What I would say to do, I mean if you wait till two weeks, you're almost
going to be too late. I would say you've got to start work on that within one week for this meeting
because it takes time to do the steps; and if Nora gets five or six requests, two weeks before the next
Board meeting, she's going to —it's not going to work.
CHR. HIRAKAMI: There's not many that many requests. I'm just saying this item, that's all. So
one or two items at the most. Normally, we follow the agenda, but just a way for some of those
things that come up during the course of the meeting that we can't discuss sometime.
MR. UYEHARA: Sorry, Mr. Chair, but I could suggest something for you as the Chair, but we
may have to look to you to make that call as the Chair, right, of the Board, to make the call if the
item is appropriate to bring before the Board; discussion and action, or discussion? Everything on
the agenda is needed for the department and the Board to function. So it's kind of a judgement,
right? Discussion is different than for action, right?
MR. NEY: If it's like a matter of legal of clarification, I understand there might be, but like some
of these things I think could be discussion and action right away. Because if we have discussion,
the next month we take a vote on it. I mean, I just want to see things happen, take a vote on it. And
I've been like six months, eight months since I first brought this up, and I'm like —I don't want to
belabor the point, but we have to have something like within two three months we should be able to
address, talk about the subject, take it up for vote or discard it.
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CHR. HIRAKAMI: I mean, that's why people sit on Boards, and they want to be proactive, they
want to take position. So if you have an idea that you can't hold in, we need to see if it's
appropriate to be agendized. That's all. We need to validate us sitting on the Board.
10) ANNOUNCEMENTS
Next MeetinL. - August 22, 2023, 10:00 a.m., at the West Hawaii Civic Center, Building G,
74-5044 Ane Keohokalole Highway, Kailua-Kona, Hawaii.
11) ADJOURNMENT
ACTION: Mr. Ney moved to adjourn the meeting; seconded by Mr. Brown and carried
unanimously by voice vote. Mr. Bell, Ms. Hugo, Ms. Keolanui, and Mr. Kekela were absent.
(Meeting adjourned at 11:44 a.m.)
Recording Secretary
APPROVED BY WATER BOARD
AUGUST 22, 2023
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