Loading...
HomeMy WebLinkAbout2003-11-25 Water Board MinutesMINUTES DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII WATER BOARD MEETING November 25, 2003 WAIMEA COMMUNITY CENTER MEMBERS PRESENT: Mr. Earl T. Nakashima, Vice - Chairman Mr. Loren Heck Ms. Pamela Hons Mr. Raymond Kawamata Mr. Ivan Mochida Ms. Sandra Scarr Mr. Leonard Tanaka Mr. George Wilkins Mr. Milton D. Pavao, Manager, Department of Water Supply (ex- officio member) Mr. Bruce McClure, Director, Department of Public Works (ex- officio member) ABSENT: Mr. John S. Tolmie, Jr., Chairman, Water Board Mr. Christopher J. Yuen, Director, Planning Department (ex- officio member) OTHERS PRESENT: Ms. Katherine Garson, Deputy Corporation Counsel Mr. Brandon Gonzalez, Deputy Corporation Counsel Mr. Mike Okumoto, County of Hawaii Mr. Don Nitsche Mr. Jimmy Yocom Mr. Elinor Yocom Mr. Steve Bowles, Waimea Water Services Mr. Bruce Kawamura, BK, Inc. Mr. Robert Ray Mr. Horst Braun Mr. Bob Barry Mr. Dennis Lomas Mr. Kermit Goering Mr. Bob Zeller Ms. Carol Converse Mr. Bill Brooks, Westpro Development, Inc. Page 1 of 26 Minutes November 25, 2003, Water Board Meeting.doc CALL TO ORDER: Ms. Tiffany Edwards, West Hawai'i Today (10:30 a.m.) Department of Water Supply Staff: Mr. Quirino Antonio, Jr., Deputy Manager Mr. Glenn Ahuna, Engineering Division Head Mr. Dennis Lee, Chief of Operations Mr. Richard Tsunoda, Waterworks Controller Mr. Richard Sumada, Assistant Waterworks Controller Vice - Chairman Nakashima called the meeting to order at 10:02 a.m. STATEMENTS FROM THE PUBLIC: 1. Mr. Don Nitsche Mr. Nitsche requested that the Board place an item on its agenda, to vote on, as soon as possible, the consideration of moving the Wai`ohinu production well up to top priority. They feel it is extremely important that the project be put together as soon as possible. Also, at the same time, the South Point system should be brought up, instead of having the gravity line feed South Point, it should be brought up into the system from the Wai`ohinu /Na`alehu sources and the new well at Wai`ohinu. At that point, if the line is not down the highway, the loading for the water haulers could be moved to the end of South Point Road; and it would take a tremendous load off by cutting the 28 -mile trip in half and eliminating the "killer" hill for the trucks. Another thing that has come to his attention is the fibreoptics line may be moved up to 2004 or 2005. The Department of Hawaiian Home Lands has been holding up that project in their area because they did not know what they wanted to do with their development on South Point. He understands now, from Sandwich Isles, the company working with the fibreoptics, that the Department of Hawaiian Home Lands is in the process of acquiring a number of lots in Discovery Harbour. If they do that, it will make it necessary for them to complete that part of the fibreoptics to a higher priority. If the fibreoptics go in, he felt that was a tremendous consideration to bringing in the waterline and tying Ho`okena to Wai`ohinu - -the two water sources that they know about at this time. It would cut the cost, at least in half, to share the ditch with Sandwich Isles, when they put the fibreoptics in. He understood that fibreoptics and a waterline are very compatible in the same ditch. Another thing he thought should be considered is the idea of running waterlines on National Park Service land (it borders with Ocean View on the top side of the highway). OVDC has discussed it with them, and they seem open- minded about it. That might be a better way than having it in the State Highway right -of -way and would cut costs down, as he understood. Kahuku Ranch owns the land below the highway, and he was sure they would be open- minded. He has already made connections with them in an effort to receive their approval to put a waterline between their property right on the line with State Highway property. Page 2 of 26 Minutes November 25, 2003, Water Board Meeting.doc Mr. Wilkins asked what would the actions Mr. Nitsche is recommending do to the priority that they are assigning to the exploratory well at Ocean View. Mr. Nitsche believed that the well in Wai`6hinu is going to be put in no matter what the results of the test well in Ocean View are. The surface water that is being collected now for that system has to be replaced, and that is where the idea of the Wai`6hinu well came from. They do not know the results for the test well in Ocean View yet, and he understood that they cannot make final decisions until that is done. In speaking with the United States Geological Survey (USGS), he understood that they hope to move to the test well site in Ocean View in two or three more weeks. He believes Wai`6hinu is going to be the first best source of water. The test well was so positive there - -it is only 350 feet below the surface - -and there are many so many reasons that will probably be the best site, although the Ocean View site could prove that a little bit different. Eventually, both wells will be needed anyway to facilitate that whole area. 2. Mr. Bob Barry Mr. Barry stated that he lives in Ocean View; and recently, they have been asked how they would manage water if they were to get a water source in Ocean View. He explained that in their community of about 4,000 people, they have 21 businesses and 44 farms that provide a living for their owners. They have numerous retired people who are well versed in the talents required to run a business. Starting their own private water company is a challenge that does not frighten them. Over 6 years ago, in 1997, while they were attempting to develop a Community Facilities District (CFD), they also laid down the plans for an Ocean View water company. It was based on a "Not For Profit 501 -C(4)" tax status and was made up of an 11- member board of directors who would be volunteers elected from the community. To start with, it would have a general manager, a secretary /accountant, and a maintenance manager - -all three of who would be paid employees. The general manager would answer to the board of directors. Once the source of water is brought to Ocean View, whether by well or pipe, a reservoir of perhaps 200,000 gallons would have to be built. Financing possibilities have been explored through grants and /or low interest loans from the USDA, or another go- around with a CFD and not make the same mistakes they did on the first go- around. Their mistake there was they did not do their homework prior to starting it. For the foreseeable future, water will continue to be by catchment from rain; however, in light of the ongoing drought, water will continue to be hauled by tankers from the reservoir to the homes. But having the source in Ocean View should greatly reduce this cost. Both the Department of Water Supply and Townscape, Inc. ( Townscape), have indicated that they would help the people organize a private water company, and they expect to take advantage of it if the price is right. 3. Mr. Dennis Lomas Mr. Lomas directed questions to Townscape. They started this study in February 2003, expected to be completed by February 2004. At the November 2003 Ocean View town meeting (9 months into Page 3 of 26 Minutes November 25, 2003, Water Board Meeting.doc a 1 -year study, Townscape stated in its community meeting web site, Note #10, you are about half- way through the budget. Ms. Hillarie Keehne stated, in her presentation to the Water Board on September 23, 2003, "Townscape is about 50 percent into the process." His question: 1) "Are you working with the County and when is the last opportunity for the public and the County to be able to add input into this plan before all of a sudden it is finalized ?" He mentioned the recent purchase by the National Park Service of "Kahuku National Park," thereby making Ocean View a front door community to the park. On November 13, 2003, at an Ocean View town meeting, Townscape stated, "We are looking into agricultural water too; and we will include agricultural analysis in the water draft." His questions: 2) "Will this be before the final draft? 3) Has anyone from Townscape met with Park Director, Jim Martin? Mr. Martin has agreed, in concept, to aboveground water pipes across Federal land. 4) Does the Department of Water have a problem with this? 5) Have you considered partnering up with the National Park Service ?" "You also state in your Master Plan, Scope #3, to develop a water source strategy to locate, test, and develop alternative water sources for domestic and agricultural uses." Questions: 6) "Why is there no mention of agricultural sources or uses of water in your report so far? 7) What legal ramifications was Ms. Hillary Keehne referring to regarding bringing water over National Park Land at the Water Board meeting on September 23 ?" 4. Mr. Jimmy Yocom Mr. Yocom stated that the Water Board had previously asked how many people wanted water in Ocean View. He brought with him today a box full of votes, totaling 1,544 "yes" votes that they obtained from the CFD (Community Facilities District) petition. Ten percent of the people mailed in money, even though they were not asked for it. The money had to be mailed back to them. He directed a question to Mr. Bowles: "Regarding the Water Board Meeting of September 23, 2003, Mr. Bowles stated he disagrees in fact with Belt Collins Hawai'i Ltd. on their analysis regarding building or drilling a deep capacity well near MacFarms. Could you explain ?" Question to Mr. Kawamura: "Hillary stated that the two different findings were incorporated into Townscape's study. Which study are you going by, or how are you incorporating it ?" 5. Mr. Kermit Goering: Mr. Goering stated that he has been living in Ocean View three years and represents the Ocean View Development Council. Page 4 of 26 Minutes November 25, 2003, Water Board Meeting.doc Question to Mr. Bowles and Townscape on the hydronics study: "If the hydronics report - -the most recent one - -is substantially different from the old one, which was submitted in 1997 or 1998, if it is not substantially different, how much money is the updated version going to cost out of the small budget for consultation with Townscape? If it is not very different, I hope they haven't spent $30,000 to $50,000 just to get an updated one with no substantial differences. In the original one, there was an assumption that maybe we could use the run -off from roads to gather water for fire fighting. In my experience from the mainland, that is not possible when you do not have curbs and gutters. If it is not in there, that difference should not be considered a chargeable difference." Question to Townscape on schools in Ocean View, as it relates to the water requirements: Although the Ocean View area has 4,000 residents and in excess of 400 students, it cannot have a school unless the water requirements are met. Also, Federal mandates require them to have a school because of the number of students they have in the area. He mentioned a law that originated in Alaska where they had a village that had more than 12 children; and they had to have a school. We have 400 children here. That may be a basis for a class action lawsuit, but they do not want to have to do that. The priority should be to get the loop finished between Wai`ohinu and Ho`okena so that school can go in. If you do use that approach, then that gives the wedge to ask for more Federal matching funds. "Has Townscape considered the school in the plan ?" Question to the Water Board: In reference to the Board's currently developing a Mission Statement, "is Ocean View considered in this new Mission Statement to let water to us as soon as possible ?" He also asked for a copy of the Mission Statement. 6. Ms. Elinor Yocom Ms. Elinor Yocom stated that people in her community that are very interested in getting water and would like to invite the Water Board to meet in Ocean View at a future date of its choice. They will provide a comfortable, quiet meeting place and will provide food. The Board can see, first hand, the struggle they go through daily. 7. Mr. Bob Zeller Mr. Zeller stated that he is the Chairman of the Board of the Ocean View Chamber of Commerce. He was not here in an official capacity today, but could state that the Chamber is unanimously in support of obtaining a water source in Ocean View. They are the newest town in the State of Hawai'i. They have had their zip code for only about six years. They are the fastest growing community in West Hawai'i, probably because of their more affordable land. Several years ago, Governor Cayetano refused to release the appropriated funds for their well. He stated it was because "we knew what we were getting into when we bought our land." If one were to go to the Page 5 of 26 Minutes November 25, 2003, Water Board Meeting.doc University of Hawai'i Hilo Library, you could look up the rain charts supplied by the U.S. Weather Service. They state that Hawaiian Ocean View Estates gets an average of 60 inches of rain a year. When he bought his land in 1980, there was sufficient rain for everybody to keep their tanks full. Nobody had to truck water in in those days. Since 1990, they have been suffering a severe drought. Rainfall dropped to 24 inches, then to 19 inches, then to 5.6 inches in 1995. This is not because of El Nino, La Nina, or any other volcano, but is just a global problem that we are all experiencing. The average rainfall over the last ten years, for him, has been 20.8 inches, with several years under 10 inches. Ten inches is the benchmark that defines a desert, so they are now living in a desert. This year, to date, he has received 7.2 inches in rainfall. Their native Ohia forests are dying. He has trees on his land that range up to three feet in diameter; these trees are hundreds of years old, so obviously there has been no drought like this in past history. Lately, he has had to cut down about ten trees a year because they are dead and he is afraid of them falling on him. All of the smaller trees died many years ago. There is no replacement growth coming up. There are plenty of dead tree tops and brush all around him on vacant land, and this is a great fire hazard. His plea was to get water in Ocean View so that the residents do not have to drive the 12 miles to Wai`6hinu to use the two hose bibbs to get their water. 8. Ms. Carol Converse Ms. Converse read from her written testimony as follows: "Aloha. I'm Carol Converse. I own Ka`u Water Delivery. I'm based in the Ranchos in Ocean View. We serve from mile marker 56, just north of Pahala, to mile marker 98, just past Kona Paradise, the steep one that goes to the sea, if you've ever driven down it. That covers several communities, like Miloli`i, Honomolino, Papa Bay, all along the highway, Kona Paradise; and, of course, HOVE. We have 800 to 1,000 customers, and the snowbirds come and go. Those customers had me buy 10,252,000 gallons of water so far this year, paying $26,000.00 to the County. They deserve to be called your customers. It isn't their fault that they have to go through me to receive their water from the County. My record of water orders tells me that we have been in a drought, especially with no relief since last August, in our area anyway. And I believe -, I fear that the County believes that because there are water haulers in Ocean View that the water needs are taken care of. That is far from the truth. I'm only one water hauler with two trucks. We do 11 to 12 loads a day; the only water hauler open 7 days a week; life is hard in Ocean View on catchment. Twenty -five years ago, as you've just heard, we received over 50 inches of rain. Nowadays, if we got 20 a year, we would probably be very happy. Catchment is not feasible as the County had thought in the past because the rainfall is dropping so dramatically. Customers often can't make that water stretch until pay day, and they have to go without. Public Utilities Commission rules state that we're to collect before we even pump. Today, there is only Charlie's Water Service, myself, and Aloha. Aloha is up for sale, and they're doing very little hauling. In fact, both trucks were down the last I spoke to them. The Wash, the only other one, has a PUC just for hauling to the laundromat. I believe this is many less water haulers than some of you have thought that we had in Ocean View. The Kona Paradise, we only use one truck for that community on that very steep hill - -a newer truck with a good "J" brake. There is only one other water hauler Page 6 of 26 Minutes November 25, 2003, Water Board Meeting.doc that will go there, and he's usually fishing. That's very serious for that community. Our meters are down in Na`alehu. That's a 25 -mile trip for us before we even get to deliver any water. When we reach the meters, only one truck can pump at a time. We haul 4,000 gallons, so we fill in about 20 minutes. But some haul 6,000 in their trucks, and takes 30 minutes that we must wait. And heaven help us when we arrive, which is often, and there's three trucks ahead of us- -we've just lost an hour. And with that possibility of coming back to the meters five and six times a day, per driver, that's why we pull out at 4:30 in the morning in the dark; and my drivers are coming back 16 hours later. Very, very difficult. Then it gets worse when the road maintenance trucks come down and need water on some days or another water service lets some of the private farmers in on their meter. No one asked us about it, but it certainly affects our wait. We have had no say in it. Repairs of the meters have been delayed because, and I quote, it wasn't their fault that it happened so they wouldn't go to the Hilo warehouse for parts until on a Monday. No one could haul water when that happens. This summer Na`alehu water tank ran low, and water hours were restricted. All haulers were put on notice not to get water during certain hours. It was an honor system. That didn't work at all. So while I told my drivers to abide by the rules, we went without, while other haulers kept hauling. One Friday, I even saw one water hauler washing their truck in that off -hour at the meters. More monitoring certainly should have been done or a different system is needed during emergencies. For the last month, we have ran 10 to 11 days behind consistently. Without a storm, this will definitely continue through Christmas and I don't know how long. This has always been the busiest time of year, in December. We've been hauling for six years, and this is the most serious that I have ever seen it. HOVE is growing rapidly, and more people are sitting without water today than ever before, waiting for us or hoping for a storm while I just pray the trucks don't break down. The above information and facts, I hope, have enlightened you to the reality that we live in, in Ocean View. Help has been too long coming. We need help that only you folks can give. And we deserve your help. Mahalo." 9. Mr. Robert Ray "Good morning. I'm Bob Ray. My wife and I live on that steep road in Kona Paradise that Carol was just talking about; and I will tell you something, if it weren't for Carol, I don't know what the heck we would do in that subdivision. As far as I know, she is the only water company right now that's going past "C," and they start from "A," "B," "C," and it goes on down, I think, to practically "Z." There's a lot of streets there. I guess I want to address my comments, if we're supposed to address comments to something on the Agenda, mine would probably be addressed to the Mission Statement of this Board. And as I read it, is provide customers with an adequate and continuous supply of safe drinking water in a financially responsible manner, comply with all relevant standards, and assist and facilitate development of water systems in areas not currently served. My wife and I are also here, not in an official capacity, but just to gather information. We're associate directors of a soil and water conservation board; and we are here to report back to them, but our comments are mainly addressed to our need in Kona Paradise Subdivision. It goes without saying that the topography there -, it's probably one of the steepest roads in any subdivision on the Big Island, perhaps in the State. And as you go towards the ocean, it gets drier. Page 7 of 26 Minutes November 25, 2003, Water Board Meeting.doc The elevation drops, so the people down towards the ocean get practically no rain at all - -at least through this drought season. And even though Carol has just been tremendous in trying to provide us with water when no one else would and the rain was not sufficient, as safe as their drivers may be, the trucks poise a danger to the traffic coming down those roads. The roads are extremely narrow, their diesels are noisy - -not any noisier than any other water company - -it's just they have to have the large diesel motors, and there is just general diesel pollution from their trucks coming down. Don't get me wrong - -I'm not trying to criticize their water company. They keep us in water, period, when no one else will. But it's very difficult where we live to provide any attractive landscaping, and fruit trees and so forth, from catchment. Really, we're on "E" which is five streets down; and there is just no way that we can irrigate for landscaping out of catchment. I'd like to talk a little bit about the demographics, of Kona Paradise, appear to be changing. I haven't been on the Big Island very long in body. My heart has been here for many years. We finally made it a reality to come over and try to manage our business, which is in California, from here. But I'm told that in recent history, that the banks could hardly give away lots over in Kona Paradise, that there were foreclosures, and that wasn't a very attractive place to live. I think it's changing now a great deal. I think there are a lot of professional class people moving in there; homes are being built that are attractive. I think, generally, just the whole social economic status of that area is changing pretty dramatically and it's growing. Right now, there are 140 houses, there are approximately 300 lots; and from the point of view of what we need is we need the Ho` okena extension to happen as soon as possible. As I understand it, that will run approximately 6 miles south and will get piped water to the top of our subdivision. And as I understand it, it would be up to us as members of the Kona Paradise community to create a distribution system so the water, which was brought by the County to the top of the hill, could be distributed to the houses. I think that is a daunting task. My wife and I, who is an ex- planner, and I, as a side, am an attorney, are used to dealing with environmental planning issues and development issues; but there is no doubt whatsoever that if we get to that point, that we're starting a distribution system. We're going to need help and plenty of it. And as I understand it, that's something that we can call on the Board for, for some help. For example, is it a 501C(3) or a 501C(4), what is the percentage - -what is it, 25% that have to consent to the distribution? We're just entering this thing at absolute ground level. And if it gets to that point, which I hope it does relatively soon, we're going to need a lot of help. But on the other hand, we're willing to put in a lot of time in seeing us through. From the point of view of the Association, of course, they would like to see water distributed. I don't speak for the Association, but their crying concern right now is fire protection. What they are hoping is eventually, they can get a fire hydrant at the top of the hill because right now, we just don't have fire protection. And there's a lot of people, unfortunately, in that subdivision, in the past, that have stacked brush at the ends of the road; and I think it's a disaster waiting to happen, especially in these drought conditions. That's basically all I want to say. We think there are 25% of the people in the subdivision that would agree to form a Community Facilities District so if you can get it out there and give us some help in distributing it, I think it would be a tremendous community serve and a tremendous government service on your part. Thank you." APPROVAL OF MINUTES Page 8 of 26 Minutes November 25, 2003, Water Board Meeting.doc ACTION: Ms. Scarr moved for approval of the Minutes of the October 28, 2003, Water Board Meeting; seconded by Ms. Hons and carried unanimously by voice vote. SUPPLEMENTAL AGENDA ACTION: Mr. Wilkins moved to add Supplemental Agenda information Items 5(a) Job 2000 -767; 6(a) Job 2003 -832; and Miscellaneous Item L, Job 95 -634, to the Agenda; seconded by Ms. Hons and carried unanimously by voice vote. The Manager suggested that Item 8(a) Ka `u Water Master Plan be taken up at this time. Messrs. Kawamura and Bowles were present to answer questions from the public testimony. There were no objections. X A'TT- A. SOUTH KONA — KA`U WATER MASTER PLAN: Mr. Steve Bowles of Waimea Water Services, Inc., and Mr. Bruce Kawamura, BK, Inc., sub - consultants to Townscape, Inc. ( Townscape), were present to answer questions. In response to Mr. Heck's questions about Mr. Bowles' new study in comparison to his 1987 study -- whether the new one was given to Townscape yet; if it would be premature to ask for that study from Townscape; and if the new study bases weather patterns and rainfall on something more recent than the 1915 forestry department statistics used in the 1987 study, Mr. Bowles replied that the new study is 90% complete. The important difference in the studies is the older one focused only on the Ocean View complex above and below the highway, whereas the new study covers the area from Na`alehu to Kealakekua Bay - -an area the size of Oahu. Their mission was to document, the best of the knowledge that they could gather from various sources, what the groundwater situation looked like for the whole region for purposes of master planning strategies. They went through a very systematic water budget approach to look at the long -term rainfall. They do not necessarily deal with the short term on that type of study. When looking at the locations of wells and sources, you have a degree of surety with what the resource looks like in the groundwater. With that study, they were able to assemble a limited amount of data that does exist, and is restrictive, from the wells that are in the area. It defines where the high -level groundwater is, versus the basal groundwater. As far as Townscape is concerned, they have been presenting portions of the new study but that it is in draft form at this point. The study covers seven years of record. They recognize that there are short-term droughts, such as what we are experiencing now. In fact, he has been making very focal statements in many places about how severe the drought is in the south end of the island, from Kailua all the way through to South Point. Anybody who has any observation will know that the forests are dying. Page 9 of 26 Minutes November 25, 2003, Water Board Meeting.doc Ms. Scarr mentioned data froma Kainaliu ag station annual that shows a very noticeable drop in rainfall after Kilauea Volcano began its eruption. The average of the preceding 50 years, compared to the 20 years post Kilauea, was a drop of 20.5 inches - -1/3 of the rainfall. She asked if Mr. Bowles is suggesting this is a short-term drought; and if so, why? Mr. Bowles replied that in the type of analysis they look at, groundwater resource, that is a short-term record. For the past 20 years, there has been a depression of rainfall, and the eruption may be one of the key triggers. The first time it was really noted was in 1993 at a watershed meeting in Kona; and since that time, we have seen the same prolonged drought continuing. They have done analyses as part of their study on short-term looks within the Ocean View region. Unfortunately, there are no good records. For their analysis, they have used a rainfall study by the University of Oregon that covers the entire island chain. They crosscheck it with local rain gauges to make sure they are the same. Their concern in the groundwater is that it does not necessarily reflect what is going on at the surface. They are concerned with if the resource is there and what the magnitude of it is and how far the basal lens extends. Mr. Wilkins stated that in the last 11 to 12 years, high- altitude perched water has been reported all along the Kona coast, starting with a Pacific Congress meeting in Kona in 1992 when the USGS, the County of Hawai'i, and the University of Hawai'i, gave a presentation on the findings from recently drilled wells. As he understood the data, Ho`okena has about the highest altitude perched water of any point between there and Kalaoa, at nearly 600 feet above sea level. Wai`6hinu has been reported as having perched water at 1,250 feet above sea level. These are two extremely high -level examples of perched water. He knows of no data, other than electromagnetic surveys, which indicate what the height of the basal or perched or Ghyben- Herzberg water is in Hawaiian Ocean View Estates; and Mr. Bowles says it is probably basal water, essentially, at sea level. He asked for clarification. Mr. Bowles replied that there is a well there at the 1,000 -foot elevation. There is no evidence of geologic structures to the north of the fault at the pali by Kahuku Ranch. As far as they can tell, that is the edge of the rift zone, on the Ocean View side of the rift zone. To the north, extending north, almost to Ho`okena, there is high -level water from there going north. There is a gap in which there does not appear to be any structural evidence of high- level, and /or perched aquifers. Mr. Wilkins stated that USGS has told him that they have a dearth of information on the altitude of water along the Ocean View part of the coastline and were looking forward to the drilling of the exploratory well as something which would give them a great deal of information. Mr. Bowles differed from that opinion. For example, he has information at Opihihale, which is right next to the Mamalahoa Highway, and that stands at about 3'/2 feet above sea level. There is no geologic evidence to indicate otherwise. They expected it in the case of Ocean View, near Mamalahoa Highway, that the water level will probably stand at around 4'/2 to maybe as high as 5 feet above sea level. Page 10 of 26 Minutes November 25, 2003, Water Board Meeting.doc Mr. Wilkins added that would indicate a 200 - foot -thick lens of fresh water, which is a much better supply that we have in other Ghyben- Herzberg wells in the Kohala area. Mr. Bowles stated that is what they are anticipating is there. In Opihihale, it is extremely thin. When they developed that well, they had to backfill a portion of it in order to get enough fresh water out; and they got a yield of 125 gallons a minute. They did the same thing at Hawai'i -Kau Aina Well. It was salty at about 30 feet below sea level, and they had to bring it back up to make it as fresh as they could. Mr. Wilkins asked when the information, conclusions, reports, and measurements upon which they are based will become available to the Board. Mr. Bowles replied that they are sub - contractors to Townscape and could not comment on their schedule. However, the facts that he just spoke about are all in public record at the USGS. His portion is just the hydrologic budget portion looking at the whole picture to determine what the recharge is. They have also been looking at the structural evidence. Mr. Wilkins reiterated his request for written information. Ms. Scarr asked the sub - contractors to address the concerns from the community that the money for the study is being used for gathering information that is already known and that nothing new is being learned here. Mr. Kawamura commented that Mr. Bowles' study was a good one so they incorporated that and proceeded. He could not comment on if there is reiteration of what was done in the past. This study was done taking into consideration projections and present population and what the best economical solution would be. In response to Ms. Scarr's question of what portion of the study is his civil engineering portion, Mr. Kawamura replied it is based on Mr. Bowles' report, and they tried to get the wells pumping higher. Currently, pumping is at 150 gpm. The two sites chosen - -the Community Center and the park site -- available for water development - -are at about the same elevation. If you look at HOVE, for it to work efficiently, you would want reservoirs at the same elevation so that you do not have to put pumps or regulators in. The reason for the higher elevation is to provide pressure at the commercial centers. Mr. Heck asked why there is no mention of the USGS site in this plan and why it seems to have been tabled. Mr. Kawamura replied that the USGS rig can drill down to 2,000 feet, and that is why they are at the highway. From what he understands, you cannot determine the yield of the well, based on that Page 11 of 26 Minutes November 25, 2003, Water Board Meeting.doc USGS well. What they are proposing at the community center is to drill a test well but large enough to put a pump in and do a 7- day /14 -hour sustainable yield test. That means you do not just pump at 150 gpm. If you are getting good results, you increase the pumpage and go to where you start getting salt -water intrusion. Then you know how much water can safely come out of the well. Mr. Heck asked if they are not expecting any viable information to come from that well. Mr. Kawamura replied they are going to tell us how high above sea level that water table stands. Mr. Heck stated that from testimony heard today, it crosses his mind that this district is in a situation that he would call an emergency. He asked if there were a possibility that a USGS bore could be considered an emergency; and therefore, information coming from that could be yield and quality, etc. The Manager stated that to answer that question, he would have to speak with Mr. Gordon Tribble of the USGS to see if the equipment is capable of doing the test and if the USGS drilling program allows it. Mr. Heck mentioned Mr. Bowles' report in which it states, "A less desirable location would be on the Ranchos parcel. It would be acceptable as a site for a first well if no funds could be found to build a core system. At the least, a small tank and booster could be used for a hauling service." He asked if that has been totally scrapped now. Mr. Bowles replied that they were not challenged with that; they were challenged with a master plan of the district - -not a very specific detailed plan. They developed the concept of water development for an urban core. The one they did for Ocean View was a very specific, targeted plan to get water out and around. This master plan takes a look at all the factors and how to approach the water development for the district. Mr. Heck still did not understand why that well is not a consideration. He asked what the potential yield would need to be to awaken their interest. Mr. Kawamura mentioned the fact that pumping the water up the hill to deliver the pressure would be added cost. Someone had mentioned the cost of bringing electricity and checked with Hawai'i Electric Light Company, Inc. They do have the poles there - -all they have to do is strong the wire. Mr. Heck mentioned a comment by someone - -maybe it was Ms. Keehne - -that the cost factor would be studied between the two. He asked if Mr. Kawamura was in the middle of that. Mr. Kawamura replied that first of all, if you were to do it at the highway, he did not know what specific property you would be looking at. But if it accesses directly off the highway, then Page 12 of 26 Minutes November 25, 2003, Water Board Meeting.doc problems would be encountered with the State Highways Division because they are trying to tell us their next requirement would be to put a left turn pocket to access through that property if we are going to have heavy traffic. That left turn pocket is estimated to cost $400,000.00. The next thing is you have the well at the highway, you would have to put a reservoir down at the well site, put a chlorinator, a reservoir, and a booster pump to boost it up to the community Center to provide gravity feedback. You could possibly chlorinate it and shoot it straight up to the Community Center reservoir, but he did not know if DWS would be happy with that situation. Another note is that the Fire Department requires, at the hydrant, a minimum of 20 -psi residual. Mr. Heck asked for a conclusion of the financial factors on each one because there are pluses and minuses for each one. Driving trucks up to Ocean View Community Center is a problem, but is it more of a problem than a left -hand turn off the highway? He was sure there would be some kind of traffic problem in Ocean View with a well higher, but he wanted to know the cost. His concern was that the study has been going on since February 2003 and from what he hears, Townscape is approximately 50% through this study. A lot of people are here today with concern that they are not going to be able to provide their input, on public record, before the time is up. He asked when the results are going to be reviewed. Mr. Kawamura replied that as far as he is concerned, their work is almost done. It is just a matter of how Townscape is going to put it together. There are always going to be the "what if we did this, or what if we did that ?" It is not to say that what they have proposed is the best way; but in their study, this is what they think would be best for the community. Mr. Heck made one last comment. He appreciated Messrs. Bowles and Kawamura coming today for this special purpose. He hoped it is realized that for the region of Ka`u, promises have been made, monies have been dropped out, and there is a lot of suspicion. They want the best plan possible and want to provide input and know that they are being heard. The fact that the plan about the well along the highway was not known about until recently is astounding. Mr. Nitsche had brought that idea up with the Board months ago. He senses there is nothing trickling down to the levels that they would like to see. Mr. Kawamura clarified that he knew about the idea of the well at the highway. The idea was studied initially and then scrapped. However, the directive was given to him that they wanted a cost comparison; and that is what he did. Mr. Nitsche added some information. The proposed site where the test well will be is just below the highway on Ranchos land, owned by the community, so it is an ideal location. Directly up the hill from that, the park, which would be an ideal location for a reservoir because it is County land, is at 2,000 -foot elevation. He believed that 200 feet is adequate to give enough head for fighting fire or loading trucks. Another factor, if the well is there and it could be pumped up to the reservoir on County land, it could be pumped at night, which Mr. Bowles mentioned in the past is much cheaper to fill the reservoir. Page 13 of 26 Minutes November 25, 2003, Water Board Meeting.doc RECESS: The Board took a 10- minute recess at 11:20 a.m. Vice - Chairman Nakashima asked the Board to direct their questions to the Board's business, which is water supply; and although this is a meaningful discussion for the those present, it is suggested that they have their questions answered in a different forum, i.e. community meeting. Ms. Scarr moved the questioning to Mr. Ray's testimony about Kona Paradise. It is South Kona but is part of the planning area. She asked what the thoughts are on feasible ways to bring water sources to that area. Mr. Kawamura replied that he learned something today, and that is that Kona Paradise is too steep for the water trucks to get down there. So in the interim, the most economical way is by extending the waterline. After hearing testimony today that they may have 25% for the Community Facilities District, it may be possible to put a reservoir in at the top and haul water to that reservoir. Ms. Scarr asked if he had a cost of extending the waterline for Ho`okena. They were told it was six miles to the top of the Kona Paradise Subdivision. Mr. Kawamura replied it is about $4,100,000.00. That includes a standpipe to be placed somewhere in between where the trucks could come and fill up. Mr. Heck stated that the Board has heard a lot of information today that needs to be sifted through. He suggested that the sub - consultants report back to Townscape on the need for a different format such as a "master meeting," before this final plan, with all relevant people in attendance, instead of small community meetings, so they can get these things ironed out. The benefit for the people in attendance today is the assurance that the County will hear their comments. He mentioned the Board's recent Strategic Planning Retreat in which Mr. David Tarnas facilitated. Something along the lines of a third party would be a good idea. Townscape is a wonderful company, but maybe that could be a consideration. Mr. Kawamura replied that he could not speak for Townscape, but he thought that is their plan. If they were to have a meeting with everybody present, everyone would want to talk about their specific community, and they would get nowhere. He thinks what they are doing is going from community to community - -for instance, they had a meeting in Ho`okena School and had one about two weeks ago in Ocean View. The plan is to eventually create the whole master plan and present it at a "master meeting." Mr. Heck asked if Mr. Jim Martin, the superintendent of Kahuku Park has been contacted or if they knew what the progress is in associating with the Federal Government. There had been talk of their being open to running pipes above ground along the roads and work together with us. Page 14 of 26 Minutes November 25, 2003, Water Board Meeting.doc Mr. Kawamura replied that he has not contacted Mr. Martin. On the other hand, that idea of pipe above ground will work like a huge solar heater. Mr. Heck reiterated an earlier comment about the study by Belt Collins Hawai'i Ltd. (Belt Collins) in which Mr. Bowles has a different opinion of. He asked for a brief explanation on those differences in opinion. Mr. Bowles explained that he had been contacted by Belt Collins to associate with them on their project, which is a cooperative program. The difference of opinion is that his experience in the field in this region, at Opihihale and at Hawai'i -Kau Aina Estates, tells him that the basal lens is very thin. Practically speaking, 150 gpm is a good well in this area. They may be pleasantly surprised in the future, but the facts are this is what he knows first hand. Belt Collins has proposed 1,000 gpm well. He disagrees with that and has suggested to them that they drop their sites a little bit because in his experience at MacFarms, which is not far down the road, and from the Papa Bay well, which the State of Hawai'i put in, the lens is very thin and gets very salty very quickly. Even for plants, the salt content is very marginal. When MacFarms pumps at 700 gpm, it goes brackish very quickly. The other issue is in terms of the water quality for the plants. His suggestion to them was they be careful in their planning because 1,000 gpm is not a practical level, based on present knowledge. Mr. Heck asked what Mr. Bowles' conclusions are, in follow -up to what Ms. Keehne had mentioned about taking this and Belt Collins study and incorporating them, if one of them is right and one is wrong. Mr. Bowles replied that Belt Collins' study is being currently being modified because of that discussion. Ms. Scarr asked what the feasibility is of treating brackish water with reverse osmosis as done in a project in North Kona, to use those brackish wells as a source. Mr. Bowles replied that if it is for drinking water, his experience tells him that it is 50% efficient. Therefore, if you would want 1 million gallons per day (mgd), you would have to have a 2 -mgd well to make the total amount of water available. Then you have the problem of what to do with the salt concentration, or the water that comes from that process. In the case they have done on this coastline, they have been cost effective because that water is reused into the irrigation systems and applied on golf courses. There is no energy being thrown away. In the case of being independent, if you just had a desalting system and throw away the reject water, you are also throwing away 50% of your energy; and that becomes very expensive and at least doubles the unit cost of the water. They have been doing some analyses models just so they have some cost factors to present as part of this master plan. Page 15 of 26 Minutes November 25, 2003, Water Board Meeting.doc Vice - Chairman Nakashima suggested the Board now move on to the rest of its Agenda. (Members of the public from Ocean View left the meeting at 11:45 a.m.) PUNA: A. JOB NO. 2000 -767, CONSTRUCTION OF THE OLAA NO. 6 EXPLORATORY WELL (WELL NO. 3306 -02): Bids were opened on November 20, 2003, and the results were enumerated in the Supplemental Agenda. Funds are available from the Department's C.I.P. Budget. The contractor will have 270 calendar days to complete this project. This project consists of drilling a 1,370 -foot deep, cased well, along with test pumping, to determine viability for outfitting for production. The Manager recommended that the Board award the contract for JOB NO. 2000 -767, CONSTRUCTION OF THE OLAA NO. 6 EXPLORATORY WELL (WELL NO. 3306 -02), to the low bidder, Water Resources International, Inc., for the contract bid amount of $797,400.00 with a contingency of $79,600.00 for a total contract amount of $877,000.00. ACTION: Mr. Tanaka moved for approval of the Manager's recommendation; seconded by Mr. Kawamata and carried unanimously by voice vote. SOUTH HILO: A. JOB NO. 2003 -832, JANITORIAL SERVICES AT THE WAIAKEA OFFICE PLAZA, 345 KEKUANAO`A STREET, HILO, HAWAII, DEPARTMENT OF WATER SUPPLY, COUNTY OF HAWAI`L• Bids were opened on November 20, 2003, and the results were enumerated in the Supplemental Agenda. Funds are available from our DWS Operating Budget. The contract period is from December 1, 2003, to June 30, 2004, for a total of 7 months. The Manager recommended that the Board award the contract for JOB NO. 2003 -832, JANITORIAL SERVICES AT THE WAIAKEA OFFICE PLAZA, 345 KEKUANAO`A STREET, HILO, HAWAII, DEPARTMENT OF WATER SUPPLY, COUNTY OF HAWAII, to the low bidder, Pacific Facility Services, Inc., for the contract bid amount of $4,696.68/month, multiplied by 7 months, for a total of $32,876.76. MOTION: Mr. Kawamata moved for approval of the Manager's recommendation; seconded by Mr. Tanaka. Page 16 of 26 Minutes November 25, 2003, Water Board Meeting.doc In response to Mr. Tanaka's questions regarding the qualifications of the low bidder and if the Department is comfortable with this bid, the Deputy Manager replied that all bidders were required to submit bidders qualification questionnaires; and Pacific Facility Services, Inc., has performed services for County agencies in the past and has the experience. The Department feels comfortable with this recommendation. Mr. Wilkins noted a small price difference between the first and second lowest bidders (Pacific Facility Services and Big Island Removal Service) and asked if attempts were made to look at other factors -- difference in performance records, for example. Ms. Garson clarified that the Department is bound by the Procurement Code. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. HAMAKT TA A. JOB NO. 95 -621, POHAKEA WATER SYSTEM IMPROVEMENTS: The Board considered a third time extension request from the contractor, Willocks Construction Corporation, of 152 calendar days due to delays as stated in their letter (attached to the Agenda). Their second time extension request resulted from the same issue (necessary easement from the property owner not finalized). The situation is beyond the contractor's control. DWS and Hawaii Electric Light Company, Inc., are actively pursuing the easement to complete the necessary improvements. Engineering staff has reviewed the request and finds that the 153 calendar days are justified to complete the remaining portions of the project. The Manager recommended that the Board grant this extension of contract time of 152 calendar days to Willocks Construction Corporation for JOB NO. 95 -621, POHAKEA WATER SYSTEM IMPROVEMENTS. If approved, the contract completion date will be extended from November 30, 2003, to April 30, 2004. ACTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Tanaka and carried unanimously by voice vote. KA`U: A. SOUTH KONA — KA`U WATER MASTER PLAN: Discussed earlier. MISCELLANEOUS: Page 17 of 26 Minutes November 25, 2003, Water Board Meeting.doc 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: 1. GRANT OF EASEMENT AND BILL OF SALE KEAAU ELDERLY HOUSING EWO NO.: 2003 -046 Grantor: Keaau Housing Foundation, Inc. TMK: (3) 1 -6- 143:039 Facilities Charge: $34,800.00 Paid: June 23, 2003 Final Inspection Date: June 23, 2003 Water System Cost: $10,000.00 2. GRANT OF EASEMENT AND BILL OF SALE KIKAHA HEIGHTS SUBDIVISION Subd. App. No. 96 -083 EWO NO.: 2003 -058 Grantor: Gerald T. Kodama TMK: (3) 2 -4- 003:074 Lots: 1 existing 8 additional TOTAL = 9 Lots (Plus Kikaha Street Ext.) Zoning: RS -10 Facilities Charge: $34,800.00 Paid: June 30, 2003 Final Inspection date: September 18, 2003 Water System Cost: $31,240.00 The Manager 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. ACTION: Mr. Tanaka moved for approval of the Manager's recommendation; seconded by Ms. Hons and carried unanimously by voice vote. B. R. W. BECK, INC., AGREEMENT FOR PROFESSIONAL SERVICES - WATER MASTER PLAN AND WATER RATE STUDY, JOB NO. 2003 -829: This project consists of providing all professional services necessary to develop a water master plan, prepare a water rate study, do a hydraulic model of all 24 water systems, and provide technical assistance for the GIS system. Through the professional services procurement process, R.W. Beck, Inc., was selected. Page 18 of 26 Minutes November 25, 2003, Water Board Meeting.doc The Manager recommended that a contract for the above services be awarded to R. W. Beck, Inc., for a total of $987,000.00 and that either the Chairman or the Vice - Chairman be authorized to sign a contract for said services subject to the approval of Corporation Counsel. MOTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Mochida. The Manager provided some background on the cost of this contract. The County of Kauai, Department of Water Supply, paid approximately $600,000.00 for their study, and they have 13 water systems. This island has 24 water systems, hence the higher cost. This is a two -year contract. In addition to consulting the Department on its future needs, they will also conduct a hydraulic study of each water system, provide a needs assessment for each system, generate maps of each system, and also do a water rate study, with proposed financing to carry out their plan. They will also schedule the improvements over a period of time. He realized this is a lot of money, but they are going to do a lot of work. This is something really needed, and it also ties in with discussion that took place during the Board's recent Strategic Planning Retreat. Mr. Kawamata mentioned the fact that R. W. Beck, Inc., was present at the Retreat and charged $15,000.00 for it. He asked if they would be writing a report about the Retreat. The Manager replied that they took notes and will adjust their strategy for the plan based on what the Board Members had discussed at the Retreat. He felt it was very valuable that they were present. In response to Mr. Wilkins' question on what the $15,000.00 includes, the Manager replied that it includes any changes they may need to make, plus their time spent with staff the day before the Retreat and their presence at the Retreat. Ms. Scarr asked about the scope of work. Other than doing a complete description and analysis of the Department's existing water systems, they refer, rather obliquely, to future plans. She gathered their contract was written before the Board held its Retreat (the Manager confirmed that it was.) Ms. Scarr asked for an updated version that describes the scope of work because R. W. Beck, Inc., can be very valuable in helping the Board to look ahead in its options. She mentioned, for example, Mr. Dennis Lee's presentation to the Board at its meeting back in February on options in bringing water to HOVE. They should be looking at those possibilities or options to bring water down from Ho`okena, or options on how to bring new water availability to communities. The Manager stated that he met with R. W. Beck, Inc., after the Retreat; and they intend to come back to the Board to see what the Board wants in their study. Page 19 of 26 Minutes November 25, 2003, Water Board Meeting.doc Mr. Wilkins asked how R. W. Beck, Inc., was selected, given the amount of similar firms in the State. The Manager explained that the reason they were selected was because of their reputation on Kauai. They were very pleased with the work that was done, and this is a similar contract. They are also very familiar with our system because they have done the past two water rate studies. Discussion followed on a personnel needs assessment covered in the study (Page 10 of the Agreement). Ms. Scarr did not think it covered a human resource survey about the Department's strengths and weaknesses as well as just a needs survey. Mr. Lee pointed out Page 12 of the Agreement, Phase 3, Task 3 -2, "Personnel Needs Assessment," and Page 7, Task 2 -9, "Operation and Maintenance Program," mentions the consultant will provide a description of water system management and staff. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. C. SSFM INTERNATIONAL, INC., AGREEMENT - VULNERABILITY ASSESSMENT AND EMERGENCY RESPONSE PLAN FOR ISLAND OF HAWAII WATER SYSTEM, JOB NO. 2003 -835: This project consists of providing all professional services necessary to perform a Vulnerability Assessment and Emergency Response Plan in accordance with the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (P.L. 107 -188) and 42 USC 300I, P.L. 108 -76 (' Bioterrorism Act ") for the Island of Hawaii. Through the professional services procurement process, SSFM International, Inc., was selected. The Manager recommended that a contract for the above services be awarded to SSFM International, Inc., for a total of $249,985.00 and that either the Chairman or the Vice - Chairman be authorized to sign a contract for said services subject to the approval of Corporation Counsel. MOTION: Mr. Kawamata moved for approval of the Manager's recommendation; seconded by Mr. Mochida. Ms. Scarr mentioned recent articles about SSFM International, Inc., being fined and some of their principals convicted of illegal campaign contributions. She asked where this puts them in terms of doing business with the County. The Manager stated that currently, there is a move by the State to pursue debarment; however, that has not occurred yet. This firm was selected prior to this conviction. Page 20 of 26 Minutes November 25, 2003, Water Board Meeting.doc Ms. Garson added that they cannot be disqualified because presently, there is no debarment against them. Ms. Scarr did not feel that the Board had to accept this contract. Mr. Mochida mentioned that it goes back to procurement issues and cautioned the Board to consult with counsel. MOTION TO DEFER: Ms. Scarr amended the motion to move that the Board enter into Executive Session to consult with counsel on matters of Water Board liability in regards to procurement; seconded by Mr. Wilkins. The Manager asked that the Board take care of the Agenda items first and then take everything in Executive Session at one time. (Vice- Chairman agreed). ACTION TO DEFER: Motion carried by voice vote to defer item to Executive Session on today's Agenda. Deferred until after consultation with legal counsel in Executive Session today. D. JERRY T. WATANABE, AIA, AGREEMENT - KONA BASEYARD FACILITY IMPROVEMENT, JOB NO. 2003 -834: This project consists of providing all professional services including preparation of plans, specifications and proposals for installing the building enclosure of the existing garage /storage facility. The project also includes construction and installation of an office and storage spaces and installation of electrical and mechanical systems. Through the professional services procurement process, consultant Jerry T. Watanabe, AIA, was selected. The Manager recommended that a contract for the above services be awarded to Jerry T. Watanabe, AIA, for a total of $13,000.00, and that either the Chairman or the Vice - Chairman be authorized to sign a contract for said services subject to the approval of Corporation Counsel. ACTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Heck and carried unanimously by voice vote. Page 21 of 26 Minutes November 25, 2003, Water Board Meeting.doc E. RESOLUTION NO. 03 -04, AUTHORIZING THE COUNTY OF HAWAII DEPARTMENT OF WATER SUPPLY TO STREAMLINE AND IMPROVE THE EFFICIENCY OF THE PROCEDURE FOR THE DEPARTMENT TO PROCURE AND AWARD FORMAL CONTRACTS FOR SERVICES, EQUIPMENT, MATERIALS, AND CONSTRUCTION WHILE MAINTAINING WATER BOARD OVERSIGHT: Because the Department of Water Supply is bound by the procurement rules in the procurement of services, materials, equipment, and construction, there is very little discretion that can be asserted by the Water Board in the award of the contract to a particular contractor. Rather, the Water Board, as the policy maker for the Department of Water Supply, should take a greater role in establishing priorities when it approves DWS' Annual Operating and Capital Improvements Projects Budget. A number of years ago, the Water Board gave the Chairperson the authority to sign contracts for services. This resolution re- establishes that authority and adds the authority for the Chairperson or Vice - Chairperson to sign construction contracts. This policy was adopted in Kauai, and a similar policy is in effect for the City and County of Honolulu. The Manager recommended that the Board adopt Resolution No. 03 -04 and that it take effect upon adoption. MOTION: Mr. Kawamata moved for approval of the recommendation; seconded by Mr. Mochida. Mr. Wilkins noticed there was no upper or lower limit in the Resolution and suggested that the Manager recommend a threshold dollar amount. (The Manager suggested $1.5 million.) He did not favor this proposal because it will remove the Board from an important role in determining the geographical spread of C.I.P. projects around the island. Example would be the Kona Baseyard Beautification and the Waiakea Office Plaza tree cutting projects, in which there were debates. It is not clear to him that the people of this island will gain from this loss of oversight. He did not have a problem with the Department gaining the authority over purchase of things such as nuts and bolts, vehicles, equipment, and consultation up to a certain dollar amount. Ms. Scarr also did not think this was a good idea. For the most part, the Board has examined vendors, questioned how contracts are awarded, questioned how specifications were done; and she would not like to lose the Board's scrutiny over contracts. Ms. Garson stated that the Board is running up against the Procurement Code as to what its goal is. No matter what the Resolution says, the Board will not be engaged in any personal interaction with vendors and will not gain any additional authority. The only thing that this is stating is the approval of the contract itself. Page 22 of 26 Minutes November 25, 2003, Water Board Meeting.doc In response to Mr. Heck's request for where to find procurement information, the Manager stated it is in the Hawai'i Revised Statutes and is also on the State's Procurement web site, found by searching for the words " Hawai'i State Procurement." Ms. Scarr added another purpose for having these items on the Agenda is they become a matter of public record that is accessible to anyone who wants to know with whom the Department is doing business. Ms. Garson explained that they are required by procurement rules to post all of that on the web site. In response to Mr. Wilkins' comment that web sites are not accessible by everyone, Ms. Garson noted that Item No. 2 in the Resolution covers that the Department will report contracts awarded under this policy to the Board on a monthly basis. Ms. Hons also agreed with Mr. Wilkins in that the Board would not have had the public input in the example of the tree issue, and that particular contract was not awarded. She felt it was a very important process for the Board to go through; and not meaning to micromanage the Department, the public should have a way to have a voice in it. Ms. Garson added that authority had been given to the Department in the past, and she had chunked it together in a new Resolution. Ms. Scarr mentioned the contract with R. W. Beck, Inc., passed today and that it needed to have the Board's scrutiny because the Board is part of that process. The Board should be part of determining the scope of work and be in on how much it will cost. She reiterated that she is against this Resolution. Mr. Wilkins sympathized with the Manager and reiterated that he would favor a Resolution which would, again, remove the purchase of expendables and vehicles from the Board's purview but agreed with Ms. Scarr that consultation is really pointing the path to where we will be going over the next few years; and construction is pointing the path to development of the water resources of the island and the transmission of them to the public and that he very much wants to be a part of the approval process for. The Manager suggested some compromises, and one was bringing all construction contracts to the Board and all consultant contracts that involve any major study for the Department and any consultant contracts over $500,000.00. Common contracts such as designing waterlines, tanks, or something already on the budget schedule, could be left to administration. Page 23 of 26 Minutes November 25, 2003, Water Board Meeting.doc Mr. Wilkins noted some consultation contracts come through on planning for under $100,000.00 and could support the Manager's compromise if the dollar amount were set down to that amount or even $250,000.00. He did not feel that a one -month delay is that serious a problem. Ms. Scarr called for the question. MOTION TO DEFER: Mr. Kawamata rescinded his motion and restated a motion to defer; seconded by Mr. Wilkins. Mr. Tanaka commented that one of the things that came from the Board's Strategic Planning Retreat was better communication between the Board and Department. He hoped that would be initiated here. From what he is hearing, the Waiakea Office Plaza landscaping project came down to review and revision in the scope of work - -the amount of trees that were cut. Perhaps the Board, not trying to hinder the operations of the Department, could give input on the scope of the work. Once that is agreed upon and it goes out to bid, it follows the procurement code. He agreed with deferring this for more clarification. Mr. Wilkins hoped that in rewriting the Resolution that the Department remember to let the Board keep a handle on the things it regards are important to the goals and the future of the Department. Ms. Scarr spoke against deferment and felt the Board should defeat this Resolution and ask the Department to present another Resolution, reflecting today's discussion. ACTION: A vote was taken on the Motion to defer. Carried by seven ayes and one nay (Ms. Scarr). Deferred. (Mr. Tanaka left the meeting at 12:24 p.m.) F. MONTHLY PROGRESS REPORT: Ms. Scarr thought it worth noting when the Board comes to the item during Executive Session that to date, the Department has paid Oasis Water Systems, Inc., $202,664.00 for the Pahala Deepwell Project, Job No. 95 -634. G. WAIAKEA OFFICE PLAZA - JUDICIARY LEASE: The Judiciary is one of the Department's tenants at the Waiakea Office Plaza. They lease approximately 11,544 square feet from the Department, and their lease is up for renewal and approval by the Water Board. The new lease runs from July 1, 2003, through June 30, 2006. Rent for the first year ending June 30, 2004, is $20,202.00 per month, or $1.75 per square foot. Rent for the remainder of the lease is $21,933.40 per month, or $1.90 per square foot. Page 24 of 26 Minutes November 25, 2003, Water Board Meeting.doc The Department recommends that the lease with the Judiciary be renewed and approved. MOTION: Ms. Scarr moved for approval of the recommendation; seconded by Ms. Hons. Ms. Garson added to the recommendation that the Chairman or Vice - Chairman be authorized to sign the lease subject to approval by Corporation Counsel. ACTION: A vote was taken on the Motion with the addition. Carried unanimously by voice vote. H. MONTHLY FINANCIAL REPORT: Ms. Scarr noticed an alarming amount of operating income ($2 million) down from last year. Mr. Sumada explained that it is a result of the Department's billing system being down over the last month to month and a half. The Department has not sent out bills for at least a month. The Manager added that he was going to cover this under his Manager's Report. As was explained during the Board's strategic planning workshop, the Department is seeking a way to get out of its contract. Contacts with Harris Computers has not remedied the situation. Mr. Tsunoda went over the Deposit Fund explanation. Upon the Board's earlier request, the County Treasurer, Mr. Mike Okumoto, was present to answer questions. Investments for periods of 90 days was clarified. Until recently, about $9 million of restricted funds were invested for 6 -month periods. With Mike's assistance, when we did the 2001 $8 million general obligation bond issue, the proceeds were deposited into a special Bank of Hawai'i account, which allows us the flexibility to draw down on interest to make contract payments whenever we needed; and still provide a competitive yield. At any given time, we have at least a dozen time certificates that mature at different times at approximately 90 -day periods. Responding to questions and concerns about the low interest rates, Mr. Okumoto stated that present rates are about .95 percent; and it does not increase much by extending the term to six months. Number one concern is safety, and the County is limited by Hawai'i Revised Statutes on the kinds of investments it can make. Other types of bonds are restricted, exception for State of Hawai'i bonds. They are considered a long -term investment, and the Department's timeframe is shorter. He would have to confer with Mr. Tsunoda on the Department's cash flow needs. The bond fund is in a money market mutual fund and the term can go longer; however, now we are in a rising interest rate environment so you would want to keep it short term unless you want to risk getting caught in a rising interest rate. In response to Ms. Scarr's question if the DWS is bound by Statute to use the County's investment vehicles or can it, as a semi - autonomous agency, have any flexibility, Mr. Okumoto replied that when he took his present employment, he tried to give DWS' portion back. Page 25 of 26 Minutes November 25, 2003, Water Board Meeting.doc Corporation Counsel informed him that under the County Code, it is under the jurisdiction of the Director of Finance. The Board asked the Department to come up with a recommendation, working with the County, considering long and short-term investments to get some increase in yield. REFERRAL FOR EXECUTIVE SESSION: ACTION: Mr. Kawamata moved that the Board enter into Executive Session on the items and reasons listed on the Agenda, plus the contract for SSFM International, Ltd.; seconded by Ms. Scarr and carried unanimously by voice vote. Executive Session began at 11:50 a.m. and ended at 1:53 p.m. The Manager and Deputy Manager were excused from the meeting to attend a meeting in Hilo. Messrs. Tsunoda and Okamoto were also excused. D. SSFM INTERNATIONAL, INC., AGREEMENT - VULNERABILITY ASSESSMENT AND EMERGENCY RESPONSE PLAN FOR ISLAND OF HAWAII WATER SYSTEM, JOB NO. 2003 -835: The Board took action on this item from earlier in the Agenda. ACTION: Ms. Hons moved for approval of a contract for the above services be awarded to SSFM International, Inc., for a total of $249,985.00 and that either the Chairman or the Vice - Chairman be authorized to sign a contract for said services subject to the approval of Corporation Counsel; seconded by Mr. Wilkins and carried unanimously by voice vote. MANAGER'S EVALUATION: a) ACTION: Mr. Wilkins moved that the Board approve the performance of the Manager of the Department for the last year, and that it has offered him a raise, and the Manager has asked the Board to defer such a raise until next year (offered for record); seconded by Mr. Mochida and carried unanimously by voice vote. b) ACTION: Ms. Scarr moved that the sub - committee review the Manager's Evaluation form and come up with recommendations to revise the document; seconded by Mr. Mochida and carried unanimously by voice vote. K. WESTPRO DEVELOPMENT, INC., VS. INTERNATIONAL DEVELOPMENT PROJECTS, LTD., ET AL., CIVIL NO. 03- 1- 0133K: Page 26 of 26 Minutes November 25, 2003, Water Board Meeting.doc ACTION: Ms. Scarr moved to defer; seconded by Ms. Hons and carried unanimously by voice vote. L. JOB NO. 95 -634, CONSTRUCTION OF PAHALA DEEP WELL #2 EXPLORATORY WELL DRILLING, STATE WELL NO. 1229 -02 (OASIS WATER SYSTEMS, INC.): ACTION: Ms. Scarr moved for acceptance of the recommendation in the Supplemental Agenda that the Settlement Agreement be approved and that either the Chairman or the Vice - Chairman be authorized to sign the Settlement Agreement subject to the approval of Corporation Counsel. It is also recommended that upon Oasis' compliance with the terms of the Settlement Agreement, the Chairman or the Vice - Chairman be authorized to sign the Mutual Release and Indemnification Agreement subject to the approval of Corporation Counsel. Motion seconded by Mr. Wilkins and carried unanimously by voice vote. M. MATSUMOTO WATER SYSTEM: ACTION: The Mr. Mochida moved to approve the recommendation of Corporation Counsel as discussed during Executive Session; seconded by Mr. Heck and carried unanimously by voice vote. N. QUARTERLY SPECIAL MEETINGS: Ms. Garson suggested that this be deferred to the next meeting since Mr. Tanaka was particularly interested in this item; and it ties in with the next Agenda item. Mr. Wilkins so moved to defer Items N and O to the next meeting; seconded by Mr. Mochida and carried unanimously by voice vote. O. SETTING WATER BOARD MEETING SCHEDULE FOR 2004: Deferred P. DEPARTMENT OF WATER SUPPLY'S MISSION STATEMENT: Proposed Mission Statement is as follows: "Provide customers with an adequate and continuous supply of safe drinking water in a financially responsible manner, comply with all relevant standards and assist and facilitate development of water systems in areas not currently served." In response to Mr. Kawamata's question of what the old Mission Statement sounded like, Ms. Scarr stated there never was one. Mr. Heck added that it was probably right up to the point of where it says, "with all relevant standards." Page 27 of 26 Minutes November 25, 2003, Water Board Meeting.doc Mr. Lee stated that it was not a Mission Statement, per say, but something to that effect was in the Goals and Objectives. ACTION: Ms. Scarr moved for acceptance of the Mission Statement; seconded by Ms. Hons and carried unanimously by voice vote. Q. MANAGER'S REPORT: Waived due to the Manager's absence. R. CHAIRMAN'S REPORT: No report from Vice - Chairman Nakashima. ANNOUNCEMENTS: A. Next Meeting: The next Water Board Meeting will be held on December 16, 2003, 10:00 a.m., in the Department of Water Supply, Hilo Operations Center Conference Room; 889 Leilani Street, Hilo, Hawaii. Please note that the meeting date is changed from the previously set date of December 23, as shown on an earlier yearly schedule. ADJOURNMENT ACTION: Ms. Scarr moved for adjournment of the meeting; seconded by Ms. Hons and carried unanimously by voice vote. Meeting adjourned at 2:05 p.m. Secretary Page 28 of 26 Minutes November 25, 2003, Water Board Meeting.doc