HomeMy WebLinkAbout2009-10-27 Water Board AgendaDEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAII
WATER BOARD MEETING
AGENDA
MEETING DATE: October 27, 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 September 22, 2009, Public Hearing on the Proposed Rate Change of the
Power Cost Charge
2.) Minutes of the September 22, 2009, regular Water Board Meeting
4) APPROVAL OF ADDENDUM AND /OR SUPPLEMENTAL AGENDA
(Note: Addendum requires Roll Call Vote)
5) SOUTH HILO:
A. JOB NO. 2005 -862, CONSTRUCTION OF THE WAIAKEA OFFICE PLAZA AIR -
CONDITIONING REPLACEMENT:
The contractor, Isemoto Contracting Co., Ltd., requests a 121 - calendar day time extension.
This request is to allow for the shipping and arrival time schedule of critical air conditioning
system equipment, unforeseen relocations of existing electrical and structural facilities, and
unforeseen additional asbestos material removal.
DWS Engineering Division personnel have reviewed the request and find that the time
extension of 121 calendar days is justified. This is the contractor's second contract time
extension request.
Ext.
Days
#
From Date
To Date
Calendar
Reason
Shipping and arrival time schedule of
1
5/28/2009
11/30/2009
186
new Air Handler Units
Shipping and arrival time schedule of
critical air conditioning system
2
11/30/2009
3/31/2010
121
equipment, unforeseen relocations of
existing electrical and structural
facilities, unforeseen additional asbestos
material removal
Total
Days (including this request)
307
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RECOMMENDATION: It is recommended that the Board approve a contract time extension
to Isemoto Contracting Co., Ltd., of 121 calendar days from November 30, 2009 to
March 31, 2010, for JOB NO. 2005 -862, CONSTRUCTION OF THE WAIAKEA OFFICE
PLAZA AIR - CONDITIONING REPLACEMENT.
6) NORTH KOHALA:
A. JOB NO. 2007 -919, CONSTRUCTION OF EARTHQUAKE DAMAGED TANK
REPAIRS, COUNTY OF HAWAII, STATE OF HAWAII, FEMA- 1664- DR -HI, FIPS
NO. 001- UVKJ8 -00, GROUP #3 (N. KOHALA, S. KOHALA):
This project involves the repair and seismic retrofit of five (5) concrete water tanks (two in
South Kohala district, three in North Kohala district) that were damaged in the
October 15, 2006 Kiholo Bay Earthquake.
Bids for this project will be opened on October 22, 2009 at 2:00 p.m. A report and
recommendation for bid award will be provided at the meeting.
7) SOUTH KOHALA:
A. PROFESSIONAL SERVICES AGREEMENT: WAIKOLOA RESERVOIR NO. 2
FINAL DESIGN OF REPAIRS, JOB NO. 2007 -043:
The consultant, Kleinfelder West, Inc., has requested compensation to cover additional work
due to the ongoing construction of this project. The description of the additional work and the
associated fees are as follows:
1. Technical review and recommendation of Value Engineering Cost Proposal (VECP)
No. 1. This VECP has been approved and is a deductive change order (Change Order
No. 2) for the amount of (- $5,641.08) to the Contractor's contract amount.
Consultant's time and material cost: $ 1,690.00
2. Engineering analysis and laboratory testing of West Hawaii Concrete's #4 sand to be
used for the project's Zone 2 material. The original material that the Contractor
intended for that use did not meet specification requirements. The consultant's fees
include a written report to DLNR and the necessary effort to secure DLNR approval to
use the WHC #4 sand. A deductive change order for the amount of (- $9,790.00) to the
contractor's contract is being processed to cover the cost for this work.
Consultant's Fees Requested: $ 9,790.00
3. Revise plans to adjust subsurface drain system alignment and profiles to relocate two
headwall locations. By relocating the headwalls, disruption to current operations will
be minimized, and the new locations will make maintenance of the subsurface drain
system easier.
Consultant's Fees Requested: $ 6,875.00
4. Additional fees for Task 5 of the consultant's construction services. The description for
Task 5 is Coordination Work with Construction Manager, Geotechnical Engineer, and
the Department. The budgeted amount for this task is $20,330.00, and was based on
four months of construction time or $5,083.00 per month. Construction began on
February 12, 2009 and at the end of July 2009, 88 percent of the fees under Task 5
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have been spent. Fees to cover an equivalent of three more months of construction are
requested.
Consultant's Fees Requested: $ 15,249.00
SUMMARY TABLE:
ITEM
TASK DESCRIPTION
FEE AMOUNT
1.
Technical review and recommendation for VECP No. 1.
$ 1,690.00
2.
Reanalysis for Zone 2 material and report to DLNR.
$ 9,790.00
3.
Revise plans for subsurface drains stem.
$ 6,875.00
4.
Additional fees for Task 5 - Coordination Work with
Construction Manager, Geotechnical Engineer, and the
Department.
$ 15,249.00
TOTAL
$ 33,604.00
Staff has reviewed the request and finds that the $33,604.00 in additional fees are justified.
RECOMMENDATION: It is recommended that the Board grant this request for additional
funds of $33,604.00 to Kleinfelder West, Inc. and that either the Chairperson or the Vice -
Chairperson be authorized to sign the documents, subject to approval by Corporation Counsel.
8) SOUTH KONA:
A. EXTENSION OF WELL SITE DEVELOPMENT AGREEMENT — 1250 OCEANSIDE
PARTNERS AND REVOCABLE TRUST OF E. JEAN GREENWELL:
On April 12, 2007, William N. Greenwell and Ethelyn Jean Greenwell, trustees of the
Revocable Trust of E. Jean Greenwell dated September 11, 1992, and 1250 Oceanside
Partners (collectively the "Developer ") entered into a Well Site Development Agreement (the
"Agreement ") with the Water Board to develop and dedicate a potable water well (referred to
as the "Kalukalu Well "), in addition to other off -site water system improvements located in
South Kona.
The Developer is requesting a time extension to complete the construction and testing of the
Exploratory Well, from October 12, 2009 to October 12, 2010. Section 14(c) of the
Agreement required that the well be completed within 18 months from the time of execution
of the Agreement, which set the deadline at October 12, 2009.
On October 8, 2009, 1250 Oceanside Partners submitted a letter indicating that an extension
was necessary to complete the testing of the well. The Well Bond per Section 14(a) of the
Agreement is in effect until June 2010, and 1250 Oceanside Partners is in the process of
transferring approximately $309,000 to its Client Trust Account at Carlsmith Ball LLP to
provide for the completion of the Exploratory Well.
Staff has reviewed this request, and feels that the one -year extension to complete the
Exploratory Well is acceptable.
RECOMMENDATION: It is recommended that the Water Board grant the Developer a one -
year time extension, to complete the Exploratory Well by October 12, 2010.
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B. JOB NO. 2008 -938, KE`EI WELL "D" MCC REPLACEMENT:
This project generally consists of the removal and replacement of the existing medium voltage
motor controller switchgear and motor control panel, and all appurtenant electrical work.
Bids for this project will be opened on October 22, 2009, at 2:30 p.m. A report and
recommendation for bid award will be provided at the meeting.
C. JOB NO. 2003 -823, PALANI ROAD TRANSMISSION WATERLINE, MAMALAHOA
HIGHWAY TO PALANI NO. 2 RESERVOIR — QUEEN LILI`UOKALANI TRUST
RIGHT OF ENTRY:
The contractor, CTS Earthmoving, Inc., through the Department of Water Supply, is in need of
a Right -of -Entry (ROE) to the Queen Lili`uokalani Trust (QLT) property, which DWS is in
the process of obtaining easements and deeds (for the reservoir sites) for the subject
improvements. The existing ROE agreement between the Water Board and QLT has expired.
A new ROE has been drafted on condition that CTS name QLT as an additional insured to
their policy, and that CTS is allowed to do clearing and grubbing work only until February
2010.
In the meantime, DWS and QLT will work towards a complete Construction ROE, as well as a
formal agreement specifying the requirements for the DWS easement and reservoir lots, along
with QLT's requirements to obtain additional water service to their lands serviced by these
water system improvements.
DWS staff has reviewed the ROE, and finds it acceptable.
RECOMMENDATION: It is recommended that the Water Board approve the ROE with
Queen Lili`uokalani Trust, subject to the approval of the Corporation Counsel, and that either
the Chairperson or Vice - Chairperson be authorized to sign the document.
9) MISCELLANEOUS:
A. LEGISLATIVE AUDIT OF DWS:
Ms. Colleen Schrandt, Legislative Auditor, will provide an update of the upcoming DWS
Legislative Audit, and will discuss the process and desired outcome.
B. PLACEMENT OF FIRE HYDRANTS IN MCCOY SUBDIVISION, KONA:
Water Board member Mr. George Harai, at the September 22, 2009 Board meeting, inquired
about the Department's policy on placement of fire hydrants in McCoy Subdivision, in South
Kona. The Department will explain the policy, based on the rules below:
Increment 1, Parts A & B of the McCoy Subdivision (Subdivision Application No. 75 -79) was
submitted to the Department of Water Supply in 1975 under the December 23, 1969 Rules and
Regulations. Section 4 -4 of the Rules and Regulations required that for agricultural
subdivisions, the water system be designed to "deliver water at adequate pressure for domestic
use under peak consumption" only. Part C and subsequent increments were submitted and
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approved in 1978 or later under the September 10, 1976 amendments to the 1969 Rules and
Regulations.
This amendment included the requirement for fire protection to subdivisions of one -acre
agricultural lots.
C. REPORT OF AD HOC FINANCE COMMITTEE:
The Water Boards Ad Hoc Finance Committee Chairperson, Mr. Art Taniguchi, will report on
the following areas, which encompass the scope of the Committee's work:
1. Review and approval of credit card expenses of DWS personnel;
2. Procedures regarding cash control;
3. Vehicle take -home policy.
D. WRITE -OFF DELINQUENT ACCOUNT #77000940 -10: EDWARD CORTEZ, JR.:
Background: Account #77000940 -10, which was opened by Edward Cortez, Jr. in 1998,
serviced a Pu`ukapu farm lot in Waimea. The account was closed in March 2002, and sent to
the Frank Huff collection agency with a balance due of $15,221.08. The account was returned
to the Department as uncollectible by Frank Huff Agency, Inc. in August 2009, due to
unsuccessful efforts to locate this individual within the statute of limitations time period.
This customer had very little usage at this service, except for the final bill covering the period
January 2002 —March 2002, when 3,534,000 gallons were consumed. The customer's previous
bill had been returned by the post office in addition to his final bill, and his account had
already been tagged for meter removal. No leak adjustment was applied for, so DWS does not
know why consumption was so high.
RECOMMENDATION: The Department recommends writing off the $15,221.08 balance
due from Edward Cortez, Jr., on delinquent Account #77000940 -10.
E. HAWAII INFORMATION CONSORTIUM (HIC) STATEMENT OF WORK (SOW)
FOR BILL PAYMENT SERVICES OVER THE INTERNET:
The Department is requesting approval of a Statement of Work (SOW) agreement with the
Hawaii Information Consortium (HIC) to provide bill payment capability over the Internet for
DWS's customers. This is in response to numerous requests from DWS's customers in recent
years to provide this type of payment option.
HIC was selected via Request for Proposal (RFP) to serve as manager of the State of Hawaii's
EHawaii.gov website. The RFP included providing Internet services to all counties and water
departments, and is currently being used by the State of Hawaii for General Excise Tax and
licensing payments, and by the County of Hawaii for real property tax payments.
The Statement of Work agreement provides a general outline of services and terms between
HIC and the Department. The key decision to be made at this point, noted in the Statement of
Work agreement, is to identify who will be responsible for paying HIC fees that will be
assessed per transaction. The Department may choose to absorb all the fees, pass all the fees
on to the customer, or split the fees by type between the Department and the customer.
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The fees for each payment option provided by HIC are as follows:
• Credit Card: $2.50 per transaction, plus a 2.25% of the transaction amount credit card
fee.
• Debit Card: $2.50 per transaction, plus a $1.00 e -check processing fee.
The Department proposes the following fee allocation for each payment option:
• Credit Card: Customer pays $2.50; Department pays 2.25% of the transaction amount.
• Debit Card: Customer pays entire $3.50 fee.
The Department currently absorbs credit card fees associated with walk -in customers who pay
by credit card. The Department's Statement of Work proposal is consistent with this policy.
It is difficult to determine how much the fees will amount to under different fee allocation
scenarios, because it is not clear how many customers will use the website.
Based on current credit card activity from July and August 2009, DWS averages on a monthly
basis: 700 credit card transactions, credit card payments totaling $100,000, and credit card fees
totaling $2,250.
If this activity were transferred to the HIC website and the Department chose to absorb all
fees, total fees from credit card use would increase from approximately $27,000 ($2,250 * 12)
to $48,000 ($27,000 + ($2.50 * 700 * 12)) per year, almost doubling with the addition of the
$2.50 transaction fee.
The Department does not feel it is fair to all its customers to subsidize those choosing to pay
via the Internet, when less costly ways to pay such as via U.S. mail or automatic bill payment
are available.
RECOMMENDATION: The Department recommends that the Water Board approve the HIC
Statement of Work allocating HIC fees as follows:
• Credit Card: Customer pays $2.50, DWS pays 2.25% of the transaction amount;
• Debit Card: Customer pays entire $3.50 fee;
• And that the Chairperson or Vice - Chairperson be authorized to execute the Statement of
Work, subject to approval by Corporation Counsel as to form and legality.
F. RED FLAG POLICY:
The Federal Trade Commission (FTC) is requiring certain businesses and organizations to
implement a written Identity Theft Prevention Program designed to detect warning signs, or
"red flags" of identity theft in their day -to -day operations, in an effort to protect confidential
customer information. Organizations that regularly provide goods or services and bill
customers later are required to implement such a Program, and the Department qualifies under
those conditions.
The Red Flag Policy requires the following elements:
1. Identify "red flags" of identity theft in our organization.
2. Procedures to detect the red flags that DWS has identified.
3. Appropriate action to take when red flags are detected.
4. Update Policy periodically.
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The Department's Red Flag Policy is written to protect confidential customer information
received in Customer Service from customers applying for service or paying water bills.
The Federal Trade Commission guidelines require that a business's Board of Directors
approve its first written Policy program.
RECOMMENDATION: The Department recommends that the Board approve the
Department's first written Red Flag Policy program, which will have been distributed prior to
the Board meeting.
G. ENERGY MANAGEMENT ANALYST UPDATE:
The following areas will be covered:
1. Securing fuel delivery and lightning mitigation for Haleki`i - Emergency Back -up
Generator
2. Negotiations with HELCO on Lalamilo Windfarm /DLNR land lease
3. Mayor's Green Team
4. Mayor's Energy Advisory Commission
H. 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.
I. 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.
J. 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.
K. 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.
L. 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. Hawaii Water Works Association (HWWA) '09 conference report
4. Kona Hospital area emergency generator /diesel logistics
5. Update on Pahala Water System — new well in operation
6. Update on delivery of vehicles
7. Employee of the Quarter
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M. CHAIRPERSON'S REPORT:
Chairperson to provide comments and /or information relating to matters of concern to the
Water Board.
N. KAWAILANI 1.0- MILLION GALLON RESERVOIR:
Corporation Counsel to provide update.
O. REFERRALS FOR EXECUTIVE SESSION: KAWAILANI 1.0- MILLION GALLON
RESERVOIR:
The Water Board anticipates convening an executive meeting, closed to the public, regarding
the foregoing matter, pursuant to Hawaii Revised Statutes (HRS) Sections 92 -4 and
92- 5(a)(4), for the purpose of consulting with Water Board's attorney on questions and issues
pertaining to the Board's powers, duties, privileges, immunities, and liabilities.
10) ANNOUNCEMENTS:
1. Next Meeting:
The next meeting of the Water Board will be held on November 24, 2009 at 10:00 a.m. in Kona
at the Royal Kona Resort, Resolution Room, 75 -5852 Ali'i Drive, Kailua -Kona.
2. Following Meeting:
The following meeting of the Water Board will be held on December 15, 2009, at 10:00 a.m. at
the Department of Water Supply, Operations Center Conference Room, 889 Leilani Street,
Hilo.
11) STATEMENTS FROM THE PUBLIC:
12) ADJOURNMENT
Anyone who requires an auxiliary aid or service for effective communication or a modification ofpolicies or procedures to participate in this Water Board
Meeting should contact Doreen Shirota, Secretary, at 961 -8050 as soon as possible, but no later than five days before the scheduled meeting.
The Department of Water Supply is an Equal Opportunity provider and employer.
Notice to Lobbyists: 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 ofattempting 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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