HomeMy WebLinkAbout2008-10-28 Water Board AgendaDEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAII
WATER BOARD MEETING
AGENDA
MEETING DATE: October 28, 2008
PLACE: Hilo Operations Center Conference Room, 889 Leilani Street, Hilo, Hawaii
TIME: 9:20 a.m.
1) CALL TO ORDER - 9:20 a.m. (please turn cell phones off or set to silent)
2) STATEMENTS FROM THE PUBLIC
3) APPROVAL OF MINUTES - Minutes of the September 23, 2008, Water Board Meeting
4) APPROVAL OF ADDENDUM AND /OR SUPPLEMENTAL AGENDA (if necessary)
(Note: Addendum requires Roll Call Vote)
5) SOUTH HILO:
A. RESOLUTION NO. 08 -06: PROVIDING FOR THE ACQUISITION OF AN
EASEMENT SITUATE IN THE DISTRICT OF SOUTH HILO, COUNTY OF
HAWAII AND STATE OF HAWAII, IDENTIFIED AS PORTIONS OF TMK
NO. (3) 2 -5- 028:029, FOR THE REPLACEMENT OF EXISTING FAILING
GALVANIZED IRON WATERLINE:
This Resolution is being introduced for the condemnation of a portion Tax Map Key
(3) 2 -5- 028:029, for the purpose of acquiring an easement to replace the existing waterline
along the roadway. The Piihonua G.I. Pipeline Replacement project is an approved
C.I.P. project designed to replace failing above - ground galvanized iron waterline with new
6 -inch ductile iron waterline and appurtenances installed to current standards.
The condemnation is required because the minority landowner, while initially sounding
receptive, over the past 14 months has been unresponsive and uncooperative. Thus, the
Department of Water Supply has not been able to obtain the easement necessary for the
waterline replacement project.
RECOMMENDATION: It is recommended that the Water Board approve Resolution
No. 08 -06 and authorize the Department and Corporation Counsel to continue with the
condemnation process.
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6) SOUTH KOHALA:
A. RIGHT -OF -ENTRY AGREEMENT - SHELL WINDENERGY, INC.:
The Water Board, at its meeting of October 5, 2006, granted a right -of -entry over a portion of
Tax Map Key 6 -6- 001:002 to Shell Windenergy, Inc., for vehicular as well as pedestrian access
to their property for the purpose of developing a wind powered electrical generation facility.
This right -of -entry has lapsed, and they are requesting for a renewal as they are still working on
a proposal to develop a wind powered electrical generation facility. If approved, the term of
this agreement will be 18 months.
Staff has reviewed this agreement and finds it acceptable as submitted.
RECOMMENDATION: It is recommended that the Board approve the right -of -entry
agreement for the period of October 28, 2008, until April 30, 2010, and subject to the approval
of the Corporation Counsel and that either the Chairperson or the Vice - Chairperson be
authorized to sign the document.
7) NORTH KONA:
A. JOB NO. 2003 -834 (REVISED), CONSTRUCTION OF THE KONA BASEYARD
FACILITY IMPROVEMENTS:
Attached are copies of letters dated September 25 and 26, 2008, from Central Construction,
Incorporated, requesting an extension of contract time and an approval of their escalated
contact cost. This is the contractor's fifth time extension request to allow the Department of
Water Supply additional time to secure the necessary building permit for the project. Staff has
evaluated this request and finds that the 412 - calendar day extension is justified.
The contractor's escalated price ($214,862.00) reflects the present -day cost to construct the
project. The contract bid price ($192,513.40) and contingency funding totals $208,000.00.
We will need to allocate additional monetary funds to make up the shortage:
Escalated Cost
$214,862.00
Contingency ( -8 %)
17,188.00
Total =
$232,050.00
Available Funds
208,000.00
Additional Funds =
$ 24,050.00
Previously approved time extensions by the Water Board (no contract price increase):
• First time extension 64 calendar days (May 11, 2007, to July 14, 2007)
• Second time extension 60 calendar days (July 14, 2007, to September 12, 2007)
• Third time extension 60 calendar days (September 12, 2007, to November 11, 2007)
• Fourth time extension 65 calendar days (November 11, 2007, to January 15, 2008)
This is the recommended time extension and contract fund revision for Water Board approval:
• Fifth time extension 413 calendar days (January 15, 2008, to March 3, 2009), and
• Increase funding for the project construction by $24,050.00
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RECOMMENDATION: It is recommended that the Board grant Central Construction,
Incorporated, a 412 - calendar day time extension to the contract completion date from
January 15, 2008, to March 2, 2009, and approve an additional $24,050.00 for JOB
NO. 2003 -834 (REVISED), CONSTRUCTION OF THE KONA BASEYARD FACILITY
IMPROVEMENTS.
B. SUPPLEMENTAL AGREEMENT SETTING FORTH A LETTER OF CREDIT
AMOUNT FOR WELL DEVELOPMENT AGREEMENT — LANIHAU PROPERTIES,
WEST HAWAII BUSINESS PARK, PALANI RANCH COMPANY:
At its February 26, 2008, meeting, the Water Board approved a Supplemental Agreement
specifying a letter of credit in the amount of $7.5 million dollars to complete the remaining
infrastructure which included constructing the production well and supporting facilities and
the transmission improvements. The agreement has not been executed as it was pending the
approval from the Department of Health and we subsequently received a request to withdraw
this Supplemental Agreement due to a cancellation of the sale of their land. The Owners are
requesting that we do not execute the Supplemental Agreement and we return all of the copies
to them.
RECOMMENDATION: It is recommended that the Board approve this request to withdraw
the Supplemental Agreement and all copies of the Supplemental Agreement will be returned to
the owners unexecuted.
C. PALANI TRANSMISSION PROJECT:
Status of negotiations for easements for the project to be presented.
MISCELLANEOUS:
A. MATERIAL BID NO. 2007 -01, FURNISHING AND DELIVERING WATER METERS,
BRASS GOODS, FIRE HYDRANTS, VALVES, CHLORINATORS, PUMPS, PIPES,
FITTINGS, SCADA, METERS, AND MISCELLANEOUS ITEMS FOR THE
DEPARTMENT OF WATER SUPPLY STOCK:
SOAR Technologies, Inc., was awarded the bid to furnish and deliver Section 59,
Hydroelectric Turbine Generator, to the Department of Water Supply for Material Bid
No. 2007 -01, Furnishing and Delivering Water Meters, Brass Goods, Fire Hydrants, Valves,
Chlorinators, Pumps, Pipes, Fittings, SCADA, Meters, and Miscellaneous Items for the
Department of Water Supply Stock. A Hydroelectric Turbine Generator was ordered to be
installed at the Waimea Water Treatment Plant. The Department did not realize that the bid by
the Contractor included installation costs, which was not required in the bid. SOAR
Technologies, Inc., was the only bidder for this section.
A contract amendment is being proposed to account for the installation costs for the bid. As
part of the amendment, an exemption request to have the SOAR Technologies, Inc., to
perform the installation was completed. As part of the installation, it was found that the
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existing air compressor, air lines, and turbine strainer also needed to be replaced. The cost to
replace these items is $19,270.74.
The original contract amount to SOAR Technologies, Inc., totaled $187,714.15. The
additional cost to include the amendment would bring the contract amount to $206,984.89.
RECOMMENDATION: It is recommended that the Board approve the amendment to
Material Bid No. 2007 -01, Furnishing and Delivering Water Meters, Brass Goods, Fire
Hydrants, Valve, Chlorinators, Pumps, Pipes, Fittings, SCADA, Meters, and Miscellaneous
Items for the Department of Water Supply Stock to allow SOAR Technologies, Inc. to install
the Hydroelectric Turbine Generator, and to replace the air compressor, air lines and turbine
strainer at the Waimea Water Treatment Plant, and that either the Chairperson or the
Vice - Chairperson be authorized to sign the contract amendment, subject to review as to form
and legality of the contract amendment by Corporation Counsel.
B. MATERIAL BID NO. 2007 -01, FURNISHING AND DELIVERING WATER METERS,
BRASS GOODS, FIRE HYDRANTS, VLAVES, CHLORINATORS, PUMPS, PIPES,
FITTINGS, SCADA, METERS AND MISCELLANEOUS ITEMS FOR THE
DEPARTMENT OF WATER SUPPLY STOCK:
If the amendment to the above contract is approved for SOAR Technologies, Inc., it is
requested that the total amount of the contract be increased by $32,453.90 to provide for a
change order to account for additional labor charges due to the Contractor having to comply
with the Davis -Bacon law, which requires the Contractor to pay their employees wages that is
listed in the Compensation Plan for government projects. The Contractor was also required to
obtain a performance bond for the project.
RECOMMENDATION: It is recommended that the Board approve the increase in funding by
$32,453.90 to SOAR Technologies, Inc., for Material Bid No. 2007 -01, FURNISHING AND
DELIVERING WATER METERS, BRASS GOODS, FIRE HYDRANTS, VALVES,
CHLORINATORS, PUMPS, PIPES, FITTINGS, SCADA, METERS, AND
MISCELLANEOUS ITEMS FOR THE DEPARTMENT OF WATER SUPPLY STOCK.
The total contract amount will be increased from $206,984.89 to $239,438.79.
C. FUEL COMMITTEE:
Summary of Fuel and Recycling Effort for the October 2008 Board Meeting
The Department's Fuel Reduction/Recycling Committee and Manager met on October 8th to
discuss the outcomes of the following two prior efforts:
• June 12, 2008 meeting of the Department's fuel reduction committee; and
• June 23, 2008 summary of the Hawaii County Recycling Coordinator.
Conclusion and Next Steps:
Fuel Reduction: The priority action items should focus on changes with the most impact on
reducing the Department's fuel consumption. Education on driving habits and why it is
important to both the Department and Hawaii in general should be initiated soon thereafter.
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Policy development on carpooling, planning routes, and further tracking of all fuel
consumption is needed. The energy performance contract may be able to address some of the
long -term efforts for reducing fuel consumption. Perceived buy -in from top levels of
management can support acceptance of this needed change at the other Department levels.
Recycling: The Department's recycling effort is expected to become a part of each
employee's regular work process. First priority is education to staff about procedures,
equipment, upkeep, and how DWS benefits. Sectional meetings with employees and base
yards are appropriate.
The roll out is commencing collaboratively with the County's Recycling Coordinator. A
recent October 22 meeting identified container options and resources. The effort will initially
begin at the Hilo Base Yard and the Main Office building prior to expanding to outside
offices. The effort will be measured by reductions of the amount of regular rubbish hauling.
D. UNACCOUNTED WATER PROGRAM UPDATE AND ENERGY RECOVERY:
A third presentation will be given by Department personnel, followed by discussion.
E. POWER COST ADJUSTMENT CLAUSE:
A Public Hearing on the Power Cost Adjustment Clause was held today.
RECOMMENDATION: It is recommended that the Board approve the proposed changes to
the Method of Calculating the Power Cost Adjustment Charge and frequency of calculations
as stated in the Notice of Public Hearing published in the Hawaii Tribune - Herald and the West
Hawaii Today on October 5 and 7, 2008.
F. MONTHLY PROGRESS REPORT:
Submission of Progress Report of Projects by the Department (see attached). Department
personnel will be available to respond to questions by the Board regarding the status /progress
of any project.
G. REVIEW OF MONTHLY FINANCIAL STATEMENTS:
Submission of financial statements and information relating to the financial status of the
Department. Department personnel will be available to respond to questions by the Board
relating to the financial status of the Department.
H. WATER RATE STUDY:
For discussion by the Water Board on results of the final report.
I. MANAGER'S EVALUATION:
Attached is an evaluation form for Appointees/Managers, used by the Water Board for the
yearly evaluation of the Manager. For discussion on processing, procedures, and summarized
results.
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J. EXECUTIVE SESSION:
This item was deferred at the September 23, 2008, Water Board Meeting.
Kawailani 0.50- Million Gallon Reservoir
The Board anticipates convening an Executive Session for the purpose conferring with the
Board's attorney per Hawaii Revised Statutes (HRS) Sections 92 -4 and 92 -5(4) to consult with
the Board's attorney on questions and issues pertaining to the Board's powers, duties,
privileges, immunities, and liabilities relating to this project.
K. MANAGER'S REPORT:
1) The Manager will provide a status of the Hawaiian Ocean View exploratory well.
2) The Manager will provide update on negotiations with Kamehameha Investment Corp.
3) The Manager will provide a report of recent and upcoming Public Relations efforts:
• Community Meetings: Downtown Hilo, Department of Hawaiian Home Lands -
Kawaihae, Waimea Rotary, Waikoloa Seniors, Arborist Committee
• Visits: Elementary schools, Hawaii Electric Light Co., Inc., Integrated Resource
Planning Hydro field trip
• Special Events: November 3 - Kona Water Round Table, November 8 - E Malama
Aina Festival, November 14 - HELCO IRP presentation
4) Vacant Positions Priority
5) The Manager will provide a report of recent Staff Nominations/Recognition
• DWS employee and supervisor of the year
• Employee of the Quarter (3rd Quarter) — Kawika Uyehara
• William Y. Thompson Award - Norris Gonsalves
• Retiree of the Department of Water Supply — Herbert Chang, Jr.
• Remembrance of Len Nakano
L. CHAIRPERSON'S REPORT:
Chairperson to provide comments and /or information relating to matters of concern to the
Water Board.
9) ANNOUNCEMENTS:
Next Meeting:
The next meeting of the Water Board will be held on November 25, 2008, 10:00 a.m., in the
Hilo Operations Center Conference Room, 889 Leilani Street, Hilo, Hawaii.
10) STATEMENTS FROM THE PUBLIC
11) ADJOURNMENT
The meeting place is accessible to persons with disabilities. Ifyou require use ofan auxiliary aid or other access accommodation, please contact Doreen
Shirota at 961 -8050 as soon as possible or at least 5 days prior to the meeting.
The Department of Water Supply is an Equal Opportunity provider and employer.
Notice to Lobbvists: If you area lobbyist, you must register with the Hawai `i County Clerk within five days of becoming a lobbyist. (Article 15,
Section 2- 91.3(b), Hawai `i County Code) A lobbyist means "any individual engaged for pay or other consideration who spends more than five hours in
any month or $275 in any six -month period for the purpose of attempting to influence legislative or administrative action by communicating or urging
others to communicate with public officials. " (Article 15, Section 2- 91.3(a)(6), Hawai `i County Code) Registration forms and expenditure report
documents are available at the Office of the County Clerk - Council, Hilo, Hawai `i.
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