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Home My WebLink About2004-05-25 Water Board AgendaDEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII AGENDA WATER BOARD MEETING MEETING DATE: May 25, 2004 PLACE: Royal Kona Resort, Discovery Room; 75 -5852 Ali`i Drive, Kailua -Kona, Hawaii TIME: 10:00 a.m. 1) CALL TO ORDER - 10:00 a.m. 2) STATEMENTS FROM THE PUBLIC 3) APPROVAL OF MINUTES - 1. April 27, 2004, Water Board Meeting 2. April 28, 2004, Special Water Board Meeting 4) SOUTH HILO: A. RISK MANAGEMENT — GENERAL LIABILITY COVERAGE: The Department's insurance agents, Business Insurance Services, is presenting a $1,000,000.00 Public Liability and Public Official Liability insurance policy from Genesis Indemnity Insurance Company for the Board's consideration. Each coverage comes with a $150,000.00 retained limit or deductible that the Department is responsible for. The annual premium, including taxes, for this portion of the policy is $123,103.68, adjustable at $21.28 per $1,000.00 of payroll. In addition, a condition of the policy requires that a "Third Parry Administrator" be retained by the Department to administer liability claims under $150,000.00. Specialty Risk Services has been identified as this administrator who has an annual administration fee of $1,500.00, plus per claim fees of between $575.00 to $725.00 for general liability claims and between $370.00 to $690.00 for automobile liability claims. RECOMMENDATION: It is recommended that the Board approve and procure the Liability insurance policy prepared by the Department's insurance agents, Business Insurance Services and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel. B. INDEMNITY AND CONSENT TO LICENSE AGREEMENT (OLA`A SPRING SOURCE): Yamada & Sons, Inc., has executed a license agreement with the Hawaii Conference Foundation to use the Ola`a Spring Source water that has been disconnected from our water system. DWS has replaced this source with a deepwell and still has the ability to reconnect to the spring source under emergency conditions and with the consent of the Department of Health. The source will be used by Yamada & Sons, Inc., for dust control purposes during the construction of the Saddle Road Re- alignment project. RECOMMENDATION: It is recommended that the Board approve the Indemnity and Consent to the License Agreement between Yamada & Sons, Inc., and the Hawaii Conference Foundation subject to Page 1 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc the approval of the Corporation Counsel and that either the Chairman or the Vice - Chairman be authorized to sign the document. 5) NORTH KONA: A. RELEASE OF INDEMNITY AGREEEMENT - SCHULER HOMES: As a condition of the Board accepting a waterline easement over Tax Map Key 7 -5- 017:028 & 029 from Schuler Homes, an Indemnity Agreement, dated March 2004, was required of the latter in favor of the Board. Section 2 of the Agreement stipulated that the Agreement was valid only until such time as the water unit allocation litigation between Westpro Development, Inc., and Schuler Homes was resolved. As of March 17, 2004, such litigation has been resolved; the term of the Indemnity Agreement thereby satisfying Section 2. RECOMMENDATION: It is recommended that the Board approve this Release of Indemnity Agreement, subject to the approval of the Corporation Counsel and that either the Chairman or the Vice - Chairman be authorized to sign the document. 6) KA`U: A. SOUTH KONA — KA`U WATER MASTER PLAN FOLLOW -UP: See attached letter of May 6, 2004, from Mr. Don Nitsche, Chairman, OVCDC. For discussion and /or action. 7) MISCELLANEOUS: A. DEDICATION OF WATER SYSTEMS: We 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 (For Water Meter Purposes) Grantors: Rex Honl and Lori Ann Honl TMK: (3) 7 -6 -006: Portion 013 2. GRANT OF EASEMENT For Access and Water Pipeline Purposes Happy Homes Subdivision Grantor: Kea'au Maintenance Association TMK (3) 1 -7 -017: Portions 123, 124 and 146 3. GRANT OF EASEMENT AND BILL OF SALE Makana Aloha Plantation Subdivision E.W.O. NO.: 2003 -032 Grantor: Iokepa Makai, LLC TMK (3) 7 -5 -016: 086 & 087 Lots: 16 Zoning: A -la Page 2 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc Facilities Charge: $71,500.00; CAF: $6,500.00 Final Inspection Date: 03/15/2004 Water System Cost: $127,550.00 4. GRANT OF EASEMENT AND BILL OF SALE Kawena Street Subdivision E.W.O. NO.: 2004 -047 Grantor: CL &D Five, LLC TMK: (3) 7 -5 -010: 087 Lots: 15 Zoning: RS -20 Facilities Charge: $77,000.00; CAF $7,000.00 Final Inspection Date: 03/15/04 Water System Cost: $100,800.00 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. B. MAINTENANCE BID NO. 2004 -06, MAINTENANCE OF RESERVOIR SITES AND PUMP STATIONS SITES IN THE DISTRICTS OF PUNA, NORTH AND SOUTH HILO, NORTH AND SOUTH KONA, AND NORTH KOHALA FOR THE DEPARTMENT OF WATER SUPPLY: Bids were opened on May 13, 2004, with the following results: The listed prices are the total contract amount for a two -year period from July 1, 2004, to June 30, 2006. For Part G, North Kohala, no bids were received. Therefore, the Department will obtain quotes for these sites in the best interest of the Department. RECOMMENDATION: It is recommended that the Board award the contracts to the following bidders for MAINTENANCE BID NO. 2004 -06, MAINTENANCE OF RESERVOIR SITES AND PUMP STATIONS SITES IN THE DISTRICTS OF PUNA, NORTH AND SOUTH HILO, NORTH AND SOUTH KONA, AND NORTH KOHALA FOR THE DEPARTMENT OF WATER SUPPLY, for the period July 1, 2004, to June 30, 2006, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel: Page 3 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc PART D, PART F, PART B, PART C, NORTH & PART E, NORTH & PART G, PART A, SOUTH SOUTH SOUTH NORTH SOUTH NORTH BIDDER PUNA HILO HILO HILO KONA KONA KOHALA CL Scrvices $79,200.00 N/B N/B N/B N/B N/B N/B WWW Lawn & House No Bid $86,400.00 N/B N/B $67,200.00 N/B N/B Maintenance (N /B) Tom's Tree Trimming & N/B N/B $60,000.00 N/B N/B N/B N/B Maintenance Services T. Kobayashi Yard N/B N/B N/B $64,080.00 N/B N/B N/B Maintenance Frank Mizoshiri N/B N/B N/B N/B $45,756.00 $34,320.00 N/B The listed prices are the total contract amount for a two -year period from July 1, 2004, to June 30, 2006. For Part G, North Kohala, no bids were received. Therefore, the Department will obtain quotes for these sites in the best interest of the Department. RECOMMENDATION: It is recommended that the Board award the contracts to the following bidders for MAINTENANCE BID NO. 2004 -06, MAINTENANCE OF RESERVOIR SITES AND PUMP STATIONS SITES IN THE DISTRICTS OF PUNA, NORTH AND SOUTH HILO, NORTH AND SOUTH KONA, AND NORTH KOHALA FOR THE DEPARTMENT OF WATER SUPPLY, for the period July 1, 2004, to June 30, 2006, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel: Page 3 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc Bidder Part Amount CL Services A $79,200.00 WWW Lawn and House Maintenance B $86,400.00 Tom's Tree Trimming and Maintenance Services C $60,000.00 T. Kobayashi Yard Maintenance D $64,080.00 Frank Mizoshiri E $45,756.00 Frank Mizoshiri F $34,320.00 TWO -YEAR TOTAL: $369,756.00 C. RENEWAL OF CONTRACT FOR MAINTENANCE AGREEMENT — SOUTH KOHALA, HAMAKUA, AND LAUPAHOEHOE SITES (BRANTLEY CENTER, INC.): Brantley Center, Inc., presently has a Maintenance Agreement for site maintenance for the Department's South Kohala, Hamakua, and Laupahoehoe tank and pump sites. They are requesting to renew the Agreement for two years from July 1, 2004, to June 30, 2006. The new rates would be as follows: Hamakua - $2,262.00 /month Laupahoehoe - $639.00 /month South Kohala - $2,944.00 /month The Department has the right to award the contract to Brantley Center, Inc., without advertising or calling for bids, according to Subsection 103D -1010 of the Hawaii Public Procurement Code. Brantley Center, Inc., has submitted the necessary documents to meet the requirement as a qualified rehabilitation facility. RECOMMENDATION: It is recommended that the Board award the contract for the MAINTENANCE AGREEMENT — SOUTH KOHALA, HAMAKUA, AND LAUPAHOEHOE SITES, to Brantley Center, Inc., for a period of two years from July 1, 2004, to June 30, 2006, at the rates as follows, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel: South Kohala Sites ($2,944.00 /month x 2 years) $70,656.00 Hamakua Sites ($2,262.00 /month x 2 years) 54,288.00 Laupahoehoe Sites ($639.00 /month x 2 years) 15,336.00 TWO -YEAR TOTAL: 140280.00 D. MATERIAL BID NO. 2004 -05, FURNISHING AND DELIVERING WATER METERS, BRASS GOODS, FIRE HYDRANTS, VALVES, CHLORINATORS, PUMPS, PIPES, FITTINGS, SCADA, MOTORS, AND MISCELLANEOUS ITEMS FOR THE DEPARTMENT OF WATER SUPPLY STOCK: Bids were opened on May 13, 2004 (see attached bid summary sheet). The contract period for all Parts is one year, from July 1, 2004, to June 30, 2005. All Parts are to establish price agreements for materials on an "As- Needed Basis." The apparent low bidders as shown on the bid summary sheet did not necessarily receive the staff's recommendation because it did not meet the specifications as required in the bid documents. RECOMMENDATION: It is recommended that the Board award the contracts to the following bidders for MATERIAL BID NO. 2004 -05, FURNISHING AND DELIVERING WATER METERS, BRASS GOODS, FIRE HYDRANTS, VALVES, CHLORINATORS, PUMPS, PIPES, FITTINGS, Page 4 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc SCADA, AND MISCELLANEOUS ITEMS FOR THE DEPARTMENT OF WATER SUPPLY STOCK, on an as- needed basis, as listed below, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel. The contract period shall be from July 1, 2004, to June 30, 2005. PART NO. DESCRIPTION BIDDER AMOUNT I DUCTILE IRON PIPES Ferguson Enterprises, Inc. $167,567.80 II DUCTILE IRON FITTINGS Ferguson Enterprises, Inc. $318,140.48 III COPPER PIPES Ferguson Enterprises, Inc. $72,638.16 IV COPPER FITTINGS Ferguson Enterprises, Inc. $32,166.47 V GALVANIZED PIPES Ferguson Enterprises, Inc. $49,642.40 VI GALVANIZED FITTINGS Ferguson Enterprises, Inc. $67,272.32 VII BRASS FITTINGS Ferguson Enterprises, Inc. $28,651.89 VIII 5/8" WATER METERS Hersey Meters Company $40,680.00 IX 1" —2" WATER METERS Badger Meter, Inc. $9,540.00 X METER BOXES AND COVERS Ferguson Enterprises, Inc. $40,080.00 XI COMPOUND WATER METERS Ferguson Enterprises, Inc. $8,530.05 XII TURBINE METERS AND STRAINERS Badger Meter, Inc. $8,893.58 XIII DETECTOR CHECK METERS Ferguson Enterprises, Inc. $5,436.57 XIV FIRE SERVICE METERS Ferguson Enterprises, Inc. $26,463.03 XV FIRE HYDRANTS AND EXTENSION KITS Ferguson Enterprises, Inc. $28,043.02 XVI AMERICAN DARLING FIRE HYDRANT EXTENSION KIT Ferguson Enterprises, Inc. $3,361.80 XVII KENNEDY SAFETOP FIRE HYDRANT EXTENSION KIT Ferguson Enterprises, Inc. $5,879.60 XVIII M & H FIRE HYDRANT EXTENSION KIT Ferguson Enterprises, Inc. $10,047.85 XIX NUTS, BOLTS, AND THREADED RODS A.P. Water Supply, Inc., dba HIW- Hawaii $16,162.04 XX I BALL VALVES Ferguson Enterprises, Inc. $21,360.00 XXI BALL VALVE, PACK JOINT X METER COUPLING Ferguson Enterprises, Inc. $14,480.10 XXII CORPORATION AND CURB STOPS Ferguson Enterprises, Inc. $36,866.86 XXIII STRAIGHT METER COUPLINGS Ferguson Enterprises, Inc. $10,679.70 XXIV LOK -PAK METER COUPLING Ferguson Enterprises, Inc. $3,182.64 XXV PACK JOINT COUPLING Ferguson Enterprises, Inc. $11,137.20 XXVI TRANSITION COUPLINGS Ferguson Enterprises, Inc. $4,332.72 XXVII FULL CIRCLE CLAMPS Ferguson Enterprises, Inc. $12,614.22 XXVIII HOSE BIBBS Ferguson Enterprises, Inc. $371.46 XXIX INVERTED MARKING PAINT Ferguson Enterprises, Inc. $5,171.00 XXX GATE VALVES — 3" AND LARGER Ferguson Enterprises, Inc. $78,947.43 XXXI GATE VALVES — 2'/z" AND SMALLER Ferguson Enterprises, Inc. $6,658.11 XXXII BUTTERFLY VALVES A.P. Water Supply, Inc., dba HIW- Hawaii $121,210.00 XXXIII CHECKERED STEEL PLATES Ferguson Enterprises, Inc. $20,066.50 XXXIV MECHANICAL SEALS (1" - 3'h" SIZE) Arakaki Mechanical LLC $187,493.00 X XV PUMP SEALS No Bid XXXVI TABLET CHLORINATORS Phoenix V LLC dba BEI Hawaii $4,323.55 XXXVII CHLORINE RESIDUAL ANALYZER No Bid XXXVIII TRANSIT -TIME FLOW METERS Hawaii Engineering Services $413,150.90 XXXIX HORIZONTAL END SUCTION PUMPS Arakaki Mechanical LLC $96,310.00 XL SURGE ARRESTORS G. E. Supply Hawaii, Inc. $24,891.00 Page 5 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc PART DESCRIPTION BIDDER AMOUNT NO. XLI MOTORS G. E. Supply Hawaii, Inc. $371,671.00 XLII BOOSTER AND DEEPWELL PUMP Ferguson Enterprises, Inc. $355,196.70 CONTROL BALL VALVES LIII POWER MONITORING EQUIPMENT Na Bid XLIV SCADA SYSTEM Na Bid XLV SUBMERSIBLE MOTORS Beylik Drilling, Inc. $4,101,050.00 XLVI VARIABLE FREQUENCY DRIVES Ferguson Enterprises, Inc. $4,040,383.88 XLVII AUTOMATIC CONTROL VALVES A.P. Water Supply, Inc., dba HIW- Hawaii $445,081.20 XLVIII CENTRILIFT VARIABLE SPEED DRIVE Beylik Drilling, Inc. $16,076.00 PARTS XLIX CHLORINATORS Phoenix V LLC dba BEI Hawaii $8,504.70 L ANTI - CAVITATION VALVE Ferguson Enterprises, Inc. $263,571.42 LI COMMUNICATIONS HARDWARE Ferguson Enterprises, Inc. $18,150.97 LII LOW HORSEPOWER VFD Ferguson Enterprises, Inc. $10,725.00 LIII SOLID STATE REDUCED VOLTAGE Ferguson Enterprises, Inc. $203,009.63 SOFT STARTER - LOW VOLTAGE LIV SOLID STATE REDUCED VOLTAGE Ferguson Enterprises, Inc. $84,151.25 SOFT STARTER - MEDIUM VOLTAGE For the Parts where no bids were received, staff shall obtain quotations in the best interest of the Department. E. WATER TREATMENT PROPOSAL NO. 2004 -03, FURNISHING AND DELIVERING POLYMERS TO WAIMEA WATER TREATMENT PLANT: Bids will be opened on May 20, 2004; and a report and recommendation will be provided at the meeting. F. PROPOSED AMENDMENT TO RULES AND REGULATIONS: Attached is a Draft New Rule, Section 4 -13, Acceptance of Existing Private Water Systems, for discussion and /or action. G. DRINKING WATER REVOLVING LOAN FUND — SUPPLEMENTAL LOAN AGREEMENT NO. 1 FOR SADDLE ROAD WELL "A ": See attached. RECOMMENDATION: Corporation Counsel has reviewed and approved the documents. It is recommended that the Board accept these documents, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel. H. PROFESSIONAL SERVICES AGREEMENT: Professional Services Agreement contracts for the following Department of Water Supply projects are currently being processed. However, the projects are not listed on the Department's current 5 -year Capital Improvement Projects list. 1) Job No. 2004 -839, Keopu - Puuhonua Production Well and 0.50 MG Reservoir Consultant: Tom Nance Water Resource Engineering Fee: $246,581.00 RECOMMENDATION: It is recommended that the Board award the consultant contract Job No. 2004 -839 to Tom Nance Water Resource Engineering for $246,581.00, and that either the Page 6 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel. I. RESOLUTION 04 -02: RESOLUTION AUTHORIZING A LOAN IN THE AMOUNT OF $600,000.00 FROM THE COUNTY OF HAWAII, DEPARTMENT OF WATER SUPPLY, TO THE COUNTY OF HAWAII TO BE USED BY THE COUNTY OF HAWAII AS AN ADVANCE TO THE KONA COASTVIEW AND KONA WONDERVIEW IMPROVEMENT DISTRICT, AND EVIDENCED BY A GENERAL OBLIGATION BOND TO BE PAID BACK IN FIVE (5) YEARS: Because the bid for the Improvement District project was higher than the estimated amount, there is a shortage of loan funds to complete the Kona Coastview/Wonder View Water System Improvements. As the County of Hawaii is the only entity which can advance funds and be paid back through the Improvement District, the Department has proposed to loan $600,000.00 to the County of Hawaii in exchange for a General Obligation Bond with a term of five (5) years and with an interest rate of no less than 3% and no more than 4.5 %. RECOMMENDATION: It is recommended that the Board adopt the attached Resolution No. 04 -02, and that either the Chairman or the Vice - Chairman be authorized to sign the loan documents, subject to approval of our Corporation Counsel. J. MONTHLY PROGRESS REPORT: Review of progress report of projects. K. REVIEW OF MONTHLY FINANCIAL STATEMENTS: Review of financial statements and information. L. DEPARTMENT OF WATER SUPPLY PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2004 -2005: Budgets were mailed on May 14, 2004. For review and discussion. M. REFERRAL FOR EXECUTIVE SESSION: The purpose of this Executive Session is to consult with the Board's attorney on questions and issues pertaining to the Board's powers, duties, privileges; immunities, and liabilities pursuant to H.R.S. 92 -4 and 92- 5(a)(4) regarding Harris Computer Systems. N. MANAGER'S REPORT: 1. Kona Coastview/Wonderview status 2. USGS Drilling Program O. CHAIRMAN'S REPORT: P. STRATEGIC BUSINESS PLANNING SESSION: 1. The Department of Water Supply Draft Strategic Plan 2004 - 2009 was presented to the Board during a special meeting on April 28, 2004. The Board had several comments and requested Page 7 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc several revisions to the draft document. The updated Draft Strategic Plan will be reviewed with the Board to verify that their April 28 comments and revisions have been satisfactorily addressed. 2. The draft Department of Water Supply Business Plan 2004 - 2005 will be presented to the Board. This is a companion document to the Department of Water Supply Strategic Plan. The draft Business Plan will identify specific activities, including budgets and schedules, that need to be accomplished over the next year to successfully begin implementation of strategies outlined in the draft Strategic Plan. Topics to be covered include: • Several organizational changes, including additional staff positions, have been identified. These changes will be necessary to accomplish new work areas identified in the draft Strategic Plan. • Discussion of specific activities or tactics necessary to accomplish strategies identified in the draft Strategic Plan. Information will include draft budgets and timelines as well as identification of individuals responsible for accomplishing each tactic. 3. Solicit input from the Board regarding the above topics and seek endorsement of progress made to date. 4. Facilitate an interactive session with the Board to identify contributions the Board can make to successfully implement the draft Strategic and Business Plans. 5. Identify Next Steps in the Strategic and Business Planning process. 8) ANNOUNCEMENTS: Upcoming Meetings: The Water Board will meet on June 22, 2004, in the Hilo Operations Center Conference Room, 889 Leilam Street, Hilo, Hawaii, as follows: 1. 9:30 a.m. - Public Hearing on the Department of Water Supply Proposed Operating and Capital Improvement Budgets for Fiscal Year 2004 -2005 2. 10:00 a.m. - Regular Water Board Meeting 9) STATEMENTS FROM THE PUBLIC 10) ADJOURNMENT If you require an accommodation or auxiliary aid and /or services to participate in this meeting (i.e., sign language, interpreter, and large print), please call this number 961 -8050. The Department of Water Supply is an Equal Opportunity provider and employer. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, Room 326 -W, Whitten Building, 14a` and Independence Avenue, SW, Washington DC 20250 -9410. Or call (202) 720 -5964 (voice and TDD) Page 8 of 8 May 25, 2004, Water Board Agenda (Royal Kona Resort).doc