HomeMy WebLinkAbout2009-04-28 Water Board AgendaDEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAII
WATER BOARD MEETING
AGENDA
MEETING DATE: April 28, 2009
TIME: 10:00 a.m.
PLACE: Department of Water Supply, Operations Center, Conference Room, 889 Leilani
Street, Hilo.
1) CALL TO ORDER — 10:00 a.m. (please turn cell phones off or set to silent)
2) STATEMENTS FROM THE PUBLIC
3) APPROVAL OF MINUTES
1) Minutes of the March 24, 2009, Public Hearing on the Proposed Operating and Capital
Improvement Budgets for Fiscal Year 2009 -2010
2) Minutes of the March 24, 2009, Water Board Meeting
4) APPROVAL OF ADDENDUM AND /OR SUPPLEMENTAL AGENDA
(Note: Addendum requires Roll Call Vote)
5) PRESENTATION OF AUDITED FINANCIAL STATEMENTS —JUNE 30, 2008
6)
Copies of the Department's Audited Financial Statements for the fiscal year ended June 30, 2008
have been distributed to Board members. Representatives from KPMG, the Department's
independent auditors from Honolulu, will be here to answer any questions Board members may
have regarding the report.
SOUTH HILO:
A. JOB NO. 2005 -863, HONOMU PRODUCTION WELL AND 0.3 MG RESERVOIR
Contractor requests a time extension. This request is due to delays beyond the control of the
Contractor with processing the building permit (81 calendar days) as well as rain -out (25
working days). See attached request from the Contractor.
Staff has reviewed the request and finds that the 81 calendar days for delays due to processing
the building permit and the 25 working days for rain -out are justified.
This is the first time extension request.
Original Contract completion date: May 14, 2009
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Plus 81 calendar days for permit: Aug. 3, 2009
Plus 25 working days for rain -out: Sept. 9, 2009
RECOMMENDATION: It is recommended that the Water Board approve a contract time
extension of eighty -one (8 1) calendar days, plus twenty -five (25) working days from
May 14, 2009 to September 9, 2009 for JOB NO. 2005 -863, HONOMU PRODUCTION
WELL AND 0.3 MG RESERVOIR.
B. JOB NO. 2005 -862, CONSTRUCTION OF THE WAIAKEA OFFICE PLAZA
AIR - CONDITIONING REPLACEMENT
Attached is a copy of a letter dated April 16, 2009, from Isemoto Contracting Company,
Limited, requesting a one hundred eighty -six (186) calendar day extension to the contract
time.
This is the Contractor's first time extension request for additional time to allow delivery of
equipment for the new air - conditioning system. The Contractor is required to have these
air - conditioning system components on hand before scheduling the installation work, as these
vital components are needed to provide uninterrupted air - conditioning service to the Waiakea
Office Plaza building. Staff has evaluated this request and finds that the 186 - calendar day
extension is justified.
RECOMMENDATION: It is recommended that the Board grant Isemoto Contracting
Company, Limited, a 186 — calendar day extension to the contract completion date from
May 28, 2009 to November 30, 2009 for JOB NO. 2005 -862, CONSTRUCTION OF THE
WAIAKEA OFFICE PLAZA AIR - CONDITIONING REPLACEMENT.
7) HAMAKUA:
A. DRINKING WATER STATE REVOLVING FUND /AMERICAN REINVESTMENT
AND RECOVERY ACT OF 2009, RESOLUTION NO. 2009 -02:
(Note: Resolution requires roll call vote.)
Attached is Resolution No. 2009 -02 for the project for which DWS has submitted a loan
application, under the Drinking Water State Revolving Fund (DWSRF) Loan and American
Reinvestment and Recovery Act of 2009 (ARRA). One of the prerequisites for the loan is a
Resolution approved by the Water Board. This Resolution is specifically identified for the
following project: JOB NO. 2007 -923, AHUALOA WELL DEVELOPMENT — PHASE 2
(PRODUCTION WELL AND 1.0 MG RESERVOIR), and authorizes the Manager or Deputy
Manager to execute loans and /or grants with the State Department of Health for up to
$10,000,000.00.
RECOMMENDATION: It is recommended that the Water Board adopt Resolution
No. 2009 -02, subject to the approval of Corporation Counsel.
Page 2 of 10 4/28/09 Agenda
8) SOUTH KOHALA:
A. ASSIGNMENT OF WATER ALLOCATION PURSUANT TO THE PARKER WELLS
3 AND 4 TRI -PARTY AGREEMENT
(This item was deferred from the 3124109 Water Board Meeting.)
The Assignor, Mauna Lani Services, Inc., is intending to grant, assign, transfer and convey its
rights to and allocation of water to Assignee, Tokyu Corporation, from the Lalamilo Wells A,
B, C and D, and Parker Wells 1, 2, 3 and 4. This assignment shall exclude the portions of such
allocation that have been assigned to other owners of property within MLS's Development
Area prior to the date of this assignment. All other terms and conditions in the Parker Wells 3
and 4 Tri Party Agreement between the Assignor, Mauna Kea Properties, Inc., and the Water
Board of the County of Hawaii shall remain unchanged.
RECOMMENDATION: It is recommended that the Water Board approve this Assignment of
Water Allocation and authorize either the Chairperson or Vice - Chairperson to execute the
document subject to the review and approval of the Corporation Counsel.
B. ASSIGNMENT OF USE AND OCCUPANCY AGREEMENT BETWEEN THE STATE
OF HAWAII, DEPARTMENT OF TRANSPORTATION AND MAUNA LANI
SERVICE, INC. TO THE WATER BOARD OF THE COUNTY OF HAWAII
(This item was deferred from the 3124109 Water Board Meeting.)
Mauna Lani Service, Inc. (MLS) constructed a 24 -inch waterline within the Queen
Ka`ahumanu Highway pursuant to a portion of the improvements required to serve MLS's
Development Area as described in the Parker Wells 3 and 4 Tri -Party Agreement. The
Department of Transportation of the State of Hawaii (DOT) is requiring that the developer,
MLS, execute a Use and Occupancy Agreement (UOA) for this installation of the waterline
and make payment to DOT based upon an appraisal by the DOT. DOT and MLS intend to
execute the UOA shortly, but payment will be delayed once an appraisal is completed. As part
of the dedication of the water system improvements for the Parker Wells 3 and 4 project, the
DOT is also requiring that the UOA be assigned by MLS to the Water Board of the County of
Hawaii.
RECOMMENDATION: It is recommended that the Water Board accept the assignment of the
UOA contingent on the execution of the UOA between MLS and the DOT. It is also
recommended that the Water Board authorize either the Chairperson or the Vice - Chairperson
to execute the Assignment of the Agreement subject to the review and approval of the
Corporation Counsel.
Page 3 of 10 4/28/09 Agenda
C. JOB NO. 2004 -850, WAIMEA WATER TREATMENT PLANT SLUDGE DRYING
BEDS
Contractor requests a 289 calendar -day time extension. This request is due to delays beyond
the control of the Contractor with processing the building permit. See attached request from
the Contractor.
Staff has reviewed the request and finds that the 289 calendar days are justified.
This is the first time extension request.
Original Contract completion date: May 19, 2009
Plus 289 calendar days for permit: March 4, 2010
RECOMMENDATION: It is recommended that the Board approve a contract time extension
of two hundred eighty -nine (289) calendar days from May 19, 2009 to March 4, 2010 for JOB
NO. 2004 -850, WAIMEA WATER TREATMENT PLANT SLUDGE DRYING BEDS.
D. PROFESSIONAL SERVICES AGREEMENT: WAIKOLOA RESERVOIR NO. 2
FINAL DESIGN OF REPAIRS, JOB NO. 2007 -043
The Consultant, Kleinfelder West, Inc., has requested to modify the Professional Service
Agreement language by incorporating the following two additional provisions:
1) WAIVER OF CONSEQUENTIAL DAMAGES — Neither party shall be responsible to
the other for any special, incidental, indirect, penal, or consequential damages (including
lost profits) incurred by either Consultant or Board or for which either party may be liable
to any third party.
2) THIRD PARTY BENEFICIARY — Nothing contained in this Agreement shall create a
contractual relationship with or cause of action in favor of a third party, against either
Consultant or Board.
The Department requested the Consultant to prepare a brief narrative to explain the reason for
this request. The following is from their response:
"These provisions are requested due to changes in the nature of services provided by
Kleinfelder during the construction phase of this project.
During the initial engineering analysis and design services, Kleinfelder had full control of the
work with no third parties involved other than our sub - consultants. However, during the
construction phase, Kleinfelder no longer has full control of the work and third parties,
including the general Contractor and his subcontractors, are involved. The general
Contractor has assumed responsibility for and control of construction activities, and these
provisions should provide mutual protections for Kleinfelder West, Inc. and the Water Board
of The County of Hawaii against consequential and third party liabilities. "
Page 4 of 10 4/28/09 Agenda
9)
Although it is not mentioned in the Consultant's narrative, the Construction Manager, SSFM
International, Inc. and their sub - consultant, Construction Engineering Labs, Inc., are
considered third parties as well.
This is a no -cost change to the Professional Services Agreement with Kleinfelder West, Inc.,
and all existing provisions contained therein remain unchanged and in effect.
RECOMMENDATION: It is recommended that the Board approve the modification to the
professional services agreement with Kleinfelder West, Inc., and that either the Chairperson or
the Vice - Chairperson be authorized to sign the documents, subject to approval by our
Corporation Counsel.
NORTH KONA
A. JOB NO. 2002 -806, MAMALAHOA HIGHWAY WATERLINE IMPROVEMENTS —
PHASE 2
The Contractor, Isemoto Contracting Co., Ltd., has requested a contract time extension due to
unforeseen communication problems with the existing Kona SCADA system. The SCADA
subcontractor discovered that several devices installed by a previous Contractor were not
functioning properly when attempts were made to communicate with and test the new
improvements installed with this project. Since the malfunctioning devices are still under
warranty by the previous Contractor, the SCADA subcontractor for this project must wait until
the devices are repaired or replaced and functioning properly before the SCADA system
improvements for this project can be completed.
Due to the unknown amount of time needed by the previous Contractor to correct the situation,
it is recommended that the Contractor be granted a contract time extension of 27 calendar days
to coordinate with the previous Contractor and complete the project. If the current problems
cannot be resolved and the project be completed by that date, the Contractor will be required
to submit another time extension request with supporting information explaining the current
circumstances and an accurate estimate of the time required to complete the project.
This would be the seventh time extension to the contract. The previously approved time
extensions are listed below:
• Time Extension #1: Project extended 180 calendar days to allow for revisions to the
plans and specifications.
• Time Extension #2: Project extended 180 calendar days due to change in scope of
work, project scheduling, and revisions to the plans.
• Time Extension #3: Project extended 90 days due to unforeseen site conditions at
Holualoa Well and Reservoir site requiring redesign.
• Time Extension #4: Project extended 90 days due to valve control additions that were
not shown on the plans and the installation of an additional valve at the Holualoa Well
site, also not shown on the plans.
Page 5 of 10 4/28/09 Agenda
• Time Extension #5: Project extended 180 days due to unexpected problems interfacing
with the Kona SCADA system.
Time Extension #6: Project extended 130 days due to ongoing SCADA problems.
Contractor was instructed to suspend SCADA work until upgrades to the existing
SCADA system were completed.
RECOMMENDATION: It is recommended that the Board grant this contract time extension
of 27 calendar days to Isemoto Contracting Co., Ltd., for JOB NO. 2002 -806, Mamalahoa
Highway Waterline Improvements — Phase 2. If approved, the contract completion date will
be extended from May 4, 2009 to May 31, 2009.
10) KA`U
A. JOB NO. 2002 -809, PAHALA PRODUCTION WELL AND SUPPORTING
FACILITIES:
The Contractor, Isemoto Contracting Co., Ltd., requests a 42- calendar day time extension.
This time extension request is for the additional time required to return the original specified
pump power cable to the mainland manufacturer, and then delivery of the larger pump power
cable from the mainland manufacturer to the project site. The need for a larger pump power
cable was identified and confirmed during construction. See attached request from the
Contractor.
This is the second time extension request. The previously- approved time extension is listed
below:
Time Extension #1: Project extended 97 calendar days to allow for additional time required to
obtain the County Building permit.
Engineering staff has reviewed this time extension request and finds that the 42 calendar days
are justified.
RECOMMENDATION: It is recommended that the Water Board approve a contract time
extension to Isemoto Contracting Co., Ltd. of 42 calendar days from April 13, 2009 to
May 22, 2009, for JOB No. 2002 -809, PAHALA PRODUCTION WELL AND
SUPPORTING FACILITIES.
11) MISCELLANEOUS:
A. DEDICATION OF WATER SYSTEMS:
The Department received the following documents for action by the Water Board. The water
systems have been constructed in accordance with the Department's standards and are in
acceptable condition for dedication.
(These items were deferred from the 3124109 Water Board Meeting.)
Page 6 of 10 4/28/09 Agenda
1. PURSUANT TO THE TRI -PARTY AGREEMENT BETWEEN MAUNA LANI
SERVICES, INC, (MLS), MAUNA KEA PROPERTIES (MKP), AND
DEPARTMENT OF WATER SUPPLY. APPROVED BY THE WATER BOARD
AT ITS MEETING ON FEBRUARY 28, 2006. THE FOLLOWING DOCUMENTS
ARE HEREBY PRESENTED FOR ACTION BY THE WATER BOARD.
A. GRANT OF EASEMENT
Grantor: Waikoloa Village Association
TMK: (3) 6 -8- 002:019
B. ASSIGNMENT OF EASEMENT
Grantor Mauna Lani Service, Inc.
TMK: (3) 6 -8- 001:001
C. BILL OF SALE
Seller: Mauna Lani Service, Inc.
TMK: (3) 6 -8 -001 and (3) 6 -8 -002
Final Inspection Date: Pending
Water System Cost: Pending
D. DEED (Well Site 5 and Well Site 8)
Grantor: Mauna Lani Service, Inc.
TMK: (3) 6 -8 -001: 044 and 047
2. GRANT OF EASEMENT AND BILL OF SALE
Subdivision Application No. 2007 - 000524
Grantor: Hawaii Island Community Development Corporation
TMK: (3) 5 -5- 008:046 portion
E.W.O. 2009 -011
Lots: 26 Zoning: RS 7.5
Facilities Charge: $138,690.00 Paid: 10/31/08
Final Inspection Date: 4/15/09
Water System Cost: $175,200.00
3. LICENSE EASEMENT No. 722
Subdivision Application No. 2004 -0217A
Lalamilo Housing Phase I West Subdivision
TMK: (3) 6 -6- 012:021
EWO NO.: 2007 -004 (West)
Owner/Licensor: State of Hawaii, Department of Hawaiian Home Lands
No. of Lots: 20 Zoning: RS -10
Final Inspection Date Issued: 3/24/2009
Facilities Charge: $113,840.00 Date Paid: 4/03/2009
Water System Cost: $130,950.00
Page 7 of 10 4/28/09 Agenda
RECOMMENDATION: It is recommended that the Water Board accepts these documents
subject to the approval of the Corporation Counsel and that either the Chairperson or the Vice -
Chairperson be authorized to sign the documents.
B. MATERIAL BID NO. 2009 -02, FURNISHING AND DELIVERING ELECTRIC
MOTORS FOR HAWI BOOSTER PUMP, HONOKA`A HOSPITAL BOOSTER PUMP
AND LALAMILO WELL A, DISTRICTS OF NORTH KOHALA, HAMAKUA, AND
SOUTH KOHALA, COUNTY OF HAWAII, STATE OF HAWAI`L•
Bids were opened on April 9, 2009, and the following are the bid results:
Bidder
Bid Amount
Pacific Liquid & Air Systems
$50,197.59
Kaman Industrial Technologies Corp.
$53,746.00
Derrick's Well Drilling & Pump Services, LLC
$56,096.59
Water Resources International, Inc.
$68,196.52
Gexpro
$89,901.00
Associated Electro- Mechanics, Inc.
Non - Responsive
(Note: Bid included three (3) motors: 40 hp, 50 hp and 300 hp.)
RECOMMENDATION: It is recommended that the Water Board award the contract for
MATERIAL BID NO. 2009 -02, FURNISHING AND DELIVERING ELECTRIC MOTORS
FOR HAWI BOOSTER PUMP, HONOKA`A HOSPITAL BOOSTER PUMP AND
LALAMILO WELL A, to the lowest responsible bidder, Pacific Liquid & Air Systems, at a
cost of $50,197.59, and that either the Chairperson or the Vice - Chairperson be authorized to
sign the contract, subject to approval of the contract, as to form and legality of the contract by
Corporation Counsel.
C. 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.
D. DEPARTMENT OF WATER SUPPLY PROPOSED OPERATING AND CAPITAL
IMPROVEMENT BUDGETS FOR FISCAL YEAR 2010:
A Public Hearing on the proposed Operating and Capital Improvement Budgets for Fiscal
Year 2009 -2010 was held on March 24, 2009. Public Hearing Notice was published in the
Hawaii Tribune - Herald and in the West Hawaii Today on March 13 and 15, 2009. The first
reading of the Budgets took place at the Water Board Meeting on March 24, 2009.
This is the second reading of the Budgets.
Page 8 of 10 4/28/09 Agenda
Action to be taken by the Water Board on the adoption of the Fiscal Year 2009 -2010
Operating and Capital Improvement Budgets.
E. 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.
F. WATER RATE STUDY:
Discussion on the new water rate study that the Department is planning to conduct, to address
the shortage of funds being generated from water sales.
G. MANAGER'S REPORT:
The Manager will provide an update or status on the following:
1. Update on use agreement on KIC wells
2. Palani Road Transmission Project
3. AWWA ACE 09
4. AWWA Hawaii Section Conference
5. Waiakea Office Plaza Building status
6. Hawaii County Green Team
7. Employee of the Quarter Award (1st quarter of 2009)
H. CHAIRPERSON'S REPORT:
Chairperson to provide comments and /or information relating to matters of concern to the
Water Board.
1. Clarification on Water Board Travel Report Submittal -- (Board members will have
received from Chairperson a sample form to report on conference attendance).
2. Proposed dates and locations for the remainder of 2009 Water Board meetings for
review and approval: (The venues for the remainder of 2009 Water Board meetings
were proposed, but not decided, at the 3124109 Water Board Meeting).
May 26 KONA
June 23 WAIMEA
July 28 HILO
August 25 KONA
September 22 WAIMEA
October 27 HILO
November 24 KONA
December 15 HILO
Page 9 of 10 4/28/09 Agenda
12) ANNOUNCEMENTS:
1. Next Meeting:
The next meeting of the Water Board will be held on May 26, 2009, 10:00 a.m. in Kona.
Venue to be announced.
2. Following Meeting:
The following meeting of the Water Board will be held on June 23, 2009. Chairperson Smith
has proposed holding this meeting in Waimea.
13) STATEMENTS FROM THE PUBLIC:
14) ADJOURNMENT
The meeting place is accessible to persons with disabilities. If you require use of an 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 Lobbyists: Ifyou are a lobbyist, you must register with the Hawai `i County Clerk within five days of
becoming a lobbyist. (Article 15, Section 2- 91.3(6), 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), Hawaii County Code) Registration
forms and expenditure report documents are available at the Office of the County Clerk - Council, Hilo, Hawai `i.
Page 10 of 10 4/28/09 Agenda