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HomeMy WebLinkAbout2003-12-16 Water Board MinutesMINUTES DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII WATER BOARD MEETING December 16, 2003 HILO OPERATIONS CENTER CONFERENCE ROOM MEMBERS PRESENT: Mr. John Tolmie, Jr., Chairman Mr. Earl Nakashima, Vice - Chairman Ms. Pamela Hons Mr. Ivan Mochida Ms. Sandra Scarr Mr. Leonard Tanaka Mr. George Wilkins Mr. Milton D. Pavao, Manager (ex- officio member) Mr. Bruce McClure, Director, Department of Public Works (ex- officio member) ABSENT: Mr. Loren Heck, Water Board Member Mr. Raymond Kawamata, Water Board Member OTHERS PRESENT: Mr. Darin Arai, representing Mr. Christopher Yuen, Director, Planning Department (ex- officio member) Ms. Katherine Garson, Deputy Corporation Counsel Mr. Sidney Ayabe, Carlsmith Ball, LLP Mr. Steven Lim, Carlsmith Ball, LLP Mr. Bill Brooks, Westpro Development Department of Water Supply Staff: Mr. Quirino Antonio, Deputy Manager Mr. Glenn Ahuna, Engineering Division Head Mr. Dennis Lee, Chief of Operations Mr. Lawrence Beck, Engineering Division Mr. Keith Okamoto, Engineering Division Mr. Richard Sumada, Assistant Waterworks Controller Ms. Crestita Hudman, Customer Service Supervisor CALL TO ORDER: Chairman Tolmie called the meeting to order at 10:05 a.m. STATEMENTS FROM THE PUBLIC: Mr. Sidney Ayabe spoke on Agenda Item 7(K) Westpro Development, Inc., vs. International Development Projects, Ltd., Et Al., Civil No. 03- 1- 0133K. Page 1 of 11 Minutes December 16, 2003, Water Board Meeting S. AYABE: Good morning. I'm here to give a brief comment on what you have on your agenda as Item K, that's the Westpro Development, Inc., vs. International Development Projects, Ltd., Et Al., Civil No. 03- 1- 0133K. Basically we're here to see whether we can have the matter resolved. It was a mistake regarding the number of rights to water commitments and the matter involves Westpro, International Development, the Carlsmith firm and the County. There was a mediation involved to try and resolve it. There was a mediation agreement resolved between, well entered between the Carlsmith firm, Westpro and International. And of course it's subject to the County's approval of that mediation. The County becomes an integral part and I think what this does is seeking to obtain additional rights to water commitments in this case, International granting us enough a number of water units, there's consideration being offered by the Carlsmith firm and the amount of water rights to water commitments or this project will remain for this particular parcel. Previously the matter of, the amount of rights to water commitments arose as a result of their request to transfer some of the rights to water commitments to other parcels and the agreement that has been entered into is subject to, of course, getting participation from the part of the County would have all of the rights to water commitments to remain on the subject parcel. So we believe this is something that we request the County to consider. It would resolve an outstanding litigation that the County is party to, so that's basically the presentation I wish to make. I will of course have the opportunity to answer any questions. CHAIRPERSON TOLMIE: We're going to go through the agenda and go into Executive Session. S. AYABE: Okay. Thank you. CHAIRPERSON TOLMIE: Thanks. APPROVAL OF MINUTES ACTION: Ms. Scarr moved for approval of the Minutes of the November 25, 2003, Water Board Meeting; seconded by Ms. Hons and carried unanimously by voice vote. MISCELLANEOUS: A. DEDICATION OF WATER SYSTEMS: There being no objections, this item was taken up early. 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 For Waterline Purposes (15 -feet wide) Grantor: Diane S. Holschuh Trust TMK: (3) 4 -6 -010: Por. 004 2) BILL OF SALE Page 2 of 11 Minutes December 16, 2003, Water Board Meeting "Kona Sea Villas" EWO NO.: 2004 -023 Seller: Sunstone Kona, LLC TMK: (3) 7 -5- 019:001 Facilities Charge: $5, 000.00 Final Inspection Date: 12/05/2003 Water System Cost: $188,345.00 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. MOTION: Mr. Nakashima moved for approval of the Manager's recommendation; seconded by Ms. Scarr. Ms. Scarr questioned why the facilities charge for Item No. 2 was only $5,000.00. Mr. Ahuna explained that it was the prevailing rate at the time the Ali'i Drive Agreement was entered into (1976), and that rate still stands. Discussion followed with the suggestion from Ms. Scarr that the facilities charge reflect current charges and not be "grandfathered." This is a policy issue that should be discussed by the Board at a future meeting. Chairperson Tolmie suggested that this item be placed on an Agenda for a future meeting to be discussed by the Board. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. REFERRAL FOR EXECUTIVE SESSION: Taken out of order. 1) Westpro Development, Inc., vs. International Development Projects, Ltd., et al., Civil No. 03- 1 -0133K — The purpose of the Executive Session is to consult with the Corporation Counsel relating to matters involving Water Board liability, as authorized by Sections 92 -4 and 92 -5, Hawaii Revised Statutes. ACTION: Ms. Scarr moved to enter into Executive Session; seconded by Mr. Tanaka and carried unanimously. The Executive Session began at 10:15 a.m. and adjourned at 10:43 a.m. K. WESTPRO DEVELOPMENT, INC., VS. INTERNATIONAL DEVELOPMENT PROJECTS, LTD., ET AL., CIVIL NO. 03- 1- 0133K: Settlement negotiations took place on November 24, 2003. Board to discuss and take action on possible settlement offer. Page 3 of 11 Minutes December 16, 2003, Water Board Meeting Chairman Tolmie entertained a Motion to approve the mediated Settlement Agreement and agreement upon consideration from the Carlsmith Ball LLP lawfirm and subject to the parties, or any one of them, indemnifying the Department of Water Supply and the Water Board of the County of Hawaii against any further liability, and the final agreement will be subject to Corporation Counsel approval as to form of agreement, and this Motion gives authority to either the Chairman or the Vice - Chairman to sign the final Settlement Agreement. ACTION: Ms. Hons so moved; seconded by Mr. Tanaka and carried unanimously by voice vote. SOUTH HILO: A. JOB NO. 98 -721, KAWAILANI NEW 1.0 MG CONCRETE TANK & REMOVAL OF EXISTING 0.5 MG STEEL TANK: The contractor, Jas. W. Glover, Ltd. (Glover), has requested for a contract time extension of 70 calendar days due to delivery of a faulty product. The asphalt that was shipped in barrels were opened for use on September 25, 2003, when it was discovered that although the labels indicated that it was the correct product, the shipment received was a faulty batch. The contractor informed the supplier and ordered a second batch that was supposed to arrive in early November. There was some miscommunication between the supplier and manufacturer of the product that caused a delay in the reordering of the product. The second shipment was then confirmed to arrive in Hilo around December 4, 2003. Until this product is installed, the contractor is unable to continue with the remaining work in the reservoir. This would be the second time extension for the contract. Engineering staff has reviewed the request and finds that the 70 calendar days are justified to complete the project. The Manager recommended that the Board grant this extension of contract time for JOB NO. 98 -721, KAWAILANI NEW 1.0 MG CONCRETE TANK TANK AND REMOVAL OF EXISTING 0.5 MG STEEL TANK, of 70 calendar days to Jas. W. Glover, Ltd. If approved, the contract completion date will be extended from December 29, 2003, to March 8, 2004. ACTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Ms. Hons and carried unanimously by voice vote. NORTH KONA: A. JOB NO. 99 -754 PUAPUAA 2.0 MG CONCRETE RESERVOIR: The Contractor, Willocks Construction Corporation (WCC), has submitted a request for a time extension of 91 calendar days due to a required noise variance permit that has not been approved to date. WCC submitted the permit application to the Department of Health on October 31, 2003; and according to the authorities, it is expected to be approved by the end of December, 2003. WCC was required to obtain the permit due to a connection that is to be done during night hours. The nighttime work is per our Department's request to minimize the impact on our customers. Page 4 of 11 Minutes December 16, 2003, Water Board Meeting This would be the first time extension to the contract. Engineering staff has reviewed the request and finds that the 91 calendar days are justified to complete the project. The Manager recommended that the Board grant this extension of contract time for JOB NO. 99 -754, PUAPUAA 2.0 MG CONCRETE RESERVOIR, of 91 calendar days to Willocks Construction Corporation. If approved, the contract completion date will be extended from December 30, 2003, to March 30, 2004. MOTION: Mr. Mochida moved for approval of the Manager's recommendation; seconded by Mr. Tanaka. Questions were asked about the work needing to be done at night and why the contractor waited until the middle of the project to apply for the noise permit. Staff explained that the Department requested the work to be done at night because it would be less detrimental to the system. It will only take one night to complete that portion. Also, the contractor was not aware of community sensitivity in the area. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. B. PLAN APPROVAL FOR MOTOR CONTROL (MCC) BUILDING - PUAPUAA RESERVOIR SITE: Schuler Homes, as part of their water system improvements is required to install a MCC building on our Puapuaa 2.0 mg Reservoir site (TMK 7 -5- 017:036). The Plan Approval from the Building Department is a pre- requisite to obtaining a building permit for the construction of the MCC. Further, in order for Schuler Homes, to construct the MCC, the Board will need to grant them a Construction Right of Entry. The Manager recommended that the Board approve the Plan Approval and grant a Construction Right of Entry, 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 Mr. Mochida and carried unanimously by voice vote. C. ASSIGNMENT OF UNITS THROUGH SUNRA KONA COFFEE - WESTPRO DEVELOPMENT, INC.: Ms. Garson stated that the item was being removed from the agenda because the request was no longer needed. Chairperson Tolmie stated that the Board would be skipping over this item per advice of Corporation Counsel. Page 5 of 11 Minutes December 16, 2003, Water Board Meeting D. ASSIGNMENT OF UNITS THROUGH HAWAI ` I AGRIBUSINESS - WESTPRO DEVELOPMENT, INC.: Hawaii Agribusiness, LLC, owner of eighty -eight (88) units acquired through the Haseko Agreement, and seventy -seven (77) units acquired through the North Kona Booster Project; all of which are assigned to TMK 7 -3- 010:027; desires to assign these units to WESTPRO Development, Inc., to be used on one or more of the following parcels, TMK 7 -3- 010:003, 047 & 048. The Manager recommended that the Board approve this consent, subject to whatever water system improvements required by DWS, and also subject to the approval of the Corporation Counsel, and that either the Chairman or the Vice - Chairman be authorized to sign the document. Ms. Garson stated that the request, at this point, is only for the first part, Hawai'i Agribusiness, LLC, and it is for 105 units —not 88. The 77 units acquired through the North Kona Booster Project, are not requested at this time. The assignment of 105 units acquired through the Haseko Agreement, which are currently assigned to the TMK 7 -3- 010:027, will be assigned to WESTPRO Development, Inc., to be used on one or more of the following contiguous parcels, TMK 7 -3- 010:003, 047 & 048. MOTION: Mr. Tanaka moved for approval of the Manager's recommendation; seconded by Mr. Mochida. Ms. Hons stated that the Department and the Board make sure that all the digits, TMKs are correct since there were changes made to the agenda. Ms. Garson stated to add a subject verification to make sure that the numbers and parcels are all correct. Ms. Hons asked for assurance that the numbers, tax map keys, and all information be correct and suggested an amendment to that effect. AMENDMENT TO MOTION: Ms. Hons moved for amendment of the recommendation to include subject to verification of all numbers, tax map keys, and correctness of information, including the units owned; seconded by Ms. Scarr. Mr. Wilkins commented that this is another example why the Board needs maps of the TMK's so they can see where they are located. For example, he asked if :027 is also contiguous to the other three contiguous parcels or if it was a completely separate parcel. Although they are in the same general TMK, he did not know if all four are contiguous. Secondly, by looking at this, it looks like the Department is assigning commitments that were originally intended for agricultural use to development use. He asked if that was a correct assumption. Mr. Ahuna replied that was just the name of the company [not meaning agricultural use]. As far as the parcels, they are right next to each other; but there is one road between one lot and the other three. Mr. Tanaka questioned what happened to the 77 units acquired that are there for the North Kona Booster Project. Page 6 of 11 Minutes December 16, 2003, Water Board Meeting Mr. Ahuna stated that those units were from awhile back and the Department is looking for verification of how it happened. The Manager added that they also had to verify that it could be assigned. Ms. Scarr asked how the 88 units became 105. Mr. Ahuna replied that the 105 were from Hawaii Agribusiness, but then they realized there were 17 more. The Deputy Manager added that they originally had 127, and they assigned 105 and are retaining the others. ACTION ON AMENDMENT TO MOTION: A vote was taken on the amendment to the motion. Motion was carried unanimously by voice vote. ACTION ON AMENDED MOTION: A vote was taken on the motion, as amended. Motion was carried unanimously by voice vote. MISCELLANEOUS: A. DEDICATION OF WATER SYSTEMS: Taken up earlier. B. 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. Tanaka moved for approval of the Manager's recommendation; seconded by Mr. Mochida. Page 7 of 11 Minutes December 16, 2003, Water Board Meeting Much of November's meeting discussion on this topic was reiterated as follows: • Ms. Scarr opposes because the County Charter states that the Water Board has the responsibility to oversee and manage the Water Department, and this action would take that away. • Mr. Wilkins wants construction and consulting projects to come before the Board, with the exception of material contracts (nuts, bolts, supplies, and services). He wants to know of things coming down the pipeline because some items are really surprising to him by the time they are brought to the Board's attention. • Mr. Tanaka feels that the Board can provide its input on scope of work through quarterly planning committee meetings. From that point, after the low bidder is determined and all Procurement guidelines are followed, the only input from the Board is to accept or reject award. • Mr. Mochida had mixed feelings. The Board is trying to watch the money, but also wants the projects out in a timely manner. Since the Department works with firms on the consulting contracts, it should be able to continue to make the decisions to save time. • Chairman Tolmie commented that although the C.I.P. plan is for five years, the Board can change the priorities within that timeframe. After much discussion, the Board decided to defer this once again. Mr. Tanaka withdrew his Motion; Mr. Mochida withdrew his second. MOTION TO DEFER: Mr. Wilkins moved to defer Resolution No. 03 -04; seconded by Ms. Scarr and carried unanimously by voice vote. C. MONTHLY PROGRESS REPORT: No comments. D. MONTHLY FINANCIAL REPORT: No comments. E FINANCIAL MANAGEMENT SYSTEM: Ms. Cris Hudman, Customer Service Supervisor, did a presentation to the Board on the Harris Computer System Program that the Department acquired two and a half years ago. Although the system was fairly easy to learn, there was not a week that went by without some problem. Some of the problems are: rates changing from one billing to another, no changes to account; however when calculations came through, the rates changed. Some customers were billed twice, while some accounts were missing. Deposit refunds were not always given or were given twice. Some delinquent letters go out and others do not. The billing system was down for seven weeks because of files being corrupted. Reconstruction was done every day to find out what happened to accounts. Three weeks went by with no results. There was no guidance or help from Harris Computers. Finally, Mr. Rick Sumada wrote to the Project Manager; and the billing went out. The system corrupted on October 15, 2003, and billing got out on November 28, 2003. Harris Computers is based in Ottawa, Canada; and the five to six hour time difference makes communication difficult. It is a high Page 8 of 11 Minutes December 16, 2003, Water Board Meeting maintenance system. Information does not automatically carry over from one menu to the next, and that is where errors can occur. Mr. Tolmie questioned what the Department recommended on this situation. The Manager wanted the Board's approval to have the Department be able to look at other computer systems that would be beneficial to the Department. The Manager then mentioned that he had Mr. Rick Sumada go look at another system the Department could acquire with the County. Also stated that because the County went through with the procurement process and requested proposals, that the DWS would not have to go through that. It is called sole source procurement. Mr. Wilkins asked if the Harris company would be willing to come to Hawaii and assist the Department with their problems. Ms. Hudman stated that they would be willing to come but for about $1,500.00 a day. Mr. Tolmie questioned on how much the Department had spent on the Harris Program to date, and was told $600,000.00. Ms. Scarr then mentioned that the Board should give the Department the authorization to proceed with finding another system because the Customer Service division needs to work and does not need to spend any more money on this system. F. ELECTION OF CHAIRMAN AND VICE - CHAIRMAN FOR 2004: Chairman Tolmie entertained a Motion for nominations. MOTION FOR CHAIRMAN: Mr. Wilkins moved to nominate Mr. Earl Nakashima for Chairman; seconded by Mr. Tanaka. ACTION: There being no further nominations for Chairman, a vote was taken on the motion. Motion was carried unanimously by voice vote. MOTIONS FOR VICE - CHAIRMAN: Ms. Scarr moved to nominate Mr. Loren Heck for Vice - Chairman; seconded by Mr. Wilkins. Mr. Tanaka moved to nominate Mr. Ivan Mochida for Vice - Chairman, seconded by Mr. Nakashima. Nominations were then closed. Ballots were then handed out for Vice - Chairman. The results were: Ivan Mochida — 4, Loren Heck — 3. ACTION: Ms. Scarr moved for approval of the elections of Mr. Nakashima for Chairman and Mr. Ivan Mochida for Vice - Chairman; seconded by Mr. Tanaka and carried unanimously by voice vote. G. BOARD MEMBER'S SERVICE: Section 134(d) of the County Charter allows a Board Member to serve an additional ninety days or until a successor is appointed and confirmed, whichever comes first. Page 9 of 11 Minutes December 16, 2003, Water Board Meeting Pursuant to Section 13 -4(d) of the County Charter, Board Members John Tolmie, Jr., and Raymond Kawamata will be allowed to serve an additional ninety days or until their successor is appointed and confirmed, whichever comes first. Mr. Tolmie stated that he wanted to remove his name and did not want to serve another 90 days. ACTION: Ms. Hons moved for approval of the Department's recommendation that Mr. Raymond Kawamata serve an additional 90 days or until a successor is appointed and confirmed, pursuant to Section 13 -4(d) of the County Charter and pending Mr. Kawamata's approval; seconded by Mr. Mochida and carried unanimously by voice vote. H. QUARTERLY SPECIAL MEETINGS: Scheduling of quarterly informational special meetings and setting of subjects areas for special meetings was discussed. Mr. Tanaka stated that during the retreat, he liked the suggestion that the Board had about further discussions and communication between the Board and the Department. The emphasis is even stronger after the planning session they had with Mr. David Tarnas that they need to continue and suggested that the Board try having quarterly meetings beginning in January 2004. The purpose is to discuss short term and long term plans of the Department but no decision making. He also suggested that the Board come up with items it wants the Department to address so time is spent efficiently and timely. Chairman Tolmie said that it was the consensus of the Board to have quarterly meetings. Ms. Hons cautioned that discussion is limited to agenda items, and committee meetings did not work before because open discussion was halted by Corporation Counsel. Ms. Scarr stated that the way the agenda is written is crucial. She mentioned that financing, priorities, and Mr. Dennis Lee's Waiohinu presention would be good topics. After the Manager's suggestion that two topics be chosen to keep it minimal, Capital Financing and Operations/Projects were agreed upon for the January 27, 2004, planning session. I. SETTING WATER BOARD MEETING SCHEDULE FOR 2004: January's meeting will be in Hilo with a special session in the afternoon. The February meeting will be in Kailua -Kona (meeting room to be announced later). Everyone was in agreement with Mr. Mochida's suggestion that the Waimea Civic Center is not a good meeting place. Mr. Tolmie suggested that the Board have meetings only East and West Hawaii. Mr. Mochida sugggested an agenda item for an upcoming meeting. Since problems are always occurring with the State Department of Transportation that one of their Department Head's be invited to one of the Hilo meetings to give a report. The Board agreed. J. REFERRAL FOR EXECUTIVE SESSION: Taken up earlier. Page 10 of 11 Minutes December 16, 2003, Water Board Meeting K. WESTPRO DEVELOPMENT, INC., VS. INTERNATIONAL DEVELOPMENT PROJECTS, LTD., ET AL., CIVIL NO. 03- 1- 0133K: Taken up earlier. L. MANAGER'S REPORT: 1) Kona Coastview/Wonderview Status The Manager confirmed that plans are being finalized and advertising of bids will be in February, 2004. 2) American Water Works Association National Conference The National Conference will be in Orlando, Florida, June 13 -17, 2004, and asked Board members to finalize their plans if they are going. 3) Employee of the Quarter presentation for Third Quarter Ms. Charmaine Felipe received the Employee of the Quarter Award for the third quarter, ending September 30, 2003. Mr. Sumada stated that Ms. Felipe is a Computer Operator and has been very helpful in dealing with the problems with the Harris Computer System, and they are very happy to have her. She was noted for being one of the brighter minds in the Department and a problem solver. She has been employed by the Department for only two and a half years but has worked her way up. The Deputy Manager added that Charmaine was a receptionist with the Department before working herself up to Computer Operator. M. CHAIRMAN'S REPORT: Mr. Tolmie stated that he enjoyed serving on the Board. ANNOUNCEMENTS: A. Next Meeting: The next Water Board Meeting will be on January 27, 2004, 10:00 a.m., in the Department of Water Supply, Hilo Operations Center Conference Room, 889 Leilani Street, Hilo, Hawaii. ADJOURNMENT ACTION: Mr. Tanaka moved for adjournment of the meeting; seconded by Ms. Hons and carried unanimously. Meeting adjourned at 12:08 p.m. Clerk- Stenographer Attest Page 11 of 11 Minutes December 16, 2003, Water Board Meeting