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HomeMy WebLinkAbout2004-02-24 Water Board MinutesMINUTES DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII WATER BOARD MEETING February 24, 2004 KING KAMEHAMEHA' S KONA BEACH HOTEL MEMBERS PRESENT: Mr. Earl T. Nakashima, Chairman Mr. Ivan Mochida, Vice - Chairman Mr. Loren Heck Mr. Raymond Kawamata Ms. Sandra Scarr Mr. George Wilkins Mr. Milton D. Pavao, Manager (ex- officio member) Mr. Bruce McClure, Director, Department of Public Works (ex- officio member) ABSENT: Ms. Pamela Hons, Water Board Member Mr. Leonard Tanaka, 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. Sherman Hee Mr. Bennett Mark, Planning Department (Kona) Mr. Glenn Johansen Ms. Brenda Ford Mr. Pat Ryan Ms. Paula Earl Dr. Aaron C. Lorshbough Mr. Larry Ford Department of Water Supply Staff: Mr. Quirino Antonio, Deputy Manager Mr. Glenn Ahuna, Engineering Division Head Mr. Daryl Ikeda, representing Mr. Dennis Lee, Chief of Operations Mr. Richard Tsunoda, Waterworks Controller Mr. Richard Sumada, Assistant Waterworks Controller Mr. Ronald Ueoka, Water Microbiologist Mr. Robert Ravenscraft, Water Service District Supervisor (Kona) Mr. Clyde Young, Mechanical Engineer Mr. and Mrs. Michael Omija Ms. Darlene Gouveia Page 1 of 15 Minutes February 24, 2004, Water Board Meeting. doe CALL TO ORDER: Chairman Nakashima called the meeting to order at 10:05 a.m. STATEMENTS FROM THE PUBLIC: 1. Ms. Brenda Ford Currently living in Captain Cook, but lived in the Pines Subdivision when she and her husband moved to Hawai'i nine years ago. Ms. Ford explained that she has a medical problem; is highly sensitive to salt; and, therefore, retains water. When she first moved here, she was having a serious problem with it. It can cause high blood pressure and potential heart failure. Although she was relatively young at the time, she experienced swelling in her fingers where she could not get her ring on an off. She contacted the Department of Water Supply (DWS) and was told that everything was fine with the water. About nine months into their residency here (mid 1996), she was handling ice cubes in her kitchen. After licking her fingers, she tasted extreme salt. Upon looking at an ice cube, she noticed on the bottom - -maybe 1/16 to 1/8 of an inch was a cloudy white layer. This layer tasted of pure salt. Since then, articles have been coming out in newspapers about the salt content in the well; but her body knew about it 8 -9 years ago. The situation was so severe for her that she went and bought distilled water, which is not a recommended method of purging ones body of salt, and began drinking it for several days until she flushed her system. Previous to that, she had been drinking up to 3 quarts of water a day trying to get the salt out of her system - -not understanding that she was making it worse. After a few days of distilled water, she has been paying for bottled water to rid herself of her medical problem. After reading the results that for seven years, this water has had a much higher saline content than it should have, it got her upset because she is not the only person who has problems with water retention or potential high blood pressure. They have a retirement community in West Hawai'i that could be medically and negatively impacted by the quality of the water, and it is very distressing. For eight years, she has been warning members of the Kona Orchid Society to be very careful and check the salt content of their water because it may be killing off their orchids. She requested that this Board do something very quickly about the water quality as there is a lot of development going on; and this development will need the appropriate infrastructure to support it. It is unacceptable that this water is being distributed for the citizens to drink that is causing medical problems. 2. Mr. Glenn Johansen Mr. Johansen also spoke on the water quality issue from a sustainability aspect. He made it clear that he was present as a resident on County water - -not as an employee of his company and would appreciate people leaving his company out of it. He mentioned a call he received this morning from his boss, which prompted him to think he should be talking with Corporation Counsel with his attorney, rather than with the Board; however, that was another matter. After asking the Board if it knew what the sustainable yield is of the Keauhou aquifer, which supplies water from Keauhou to Keahole Point, Ms. Garson reminded him he is here to give a statement. He continued that he has a chart from the State that indicates it is 38 million gallons per day- - Hilo has 10 times more, but he is not here to complain about that, but rather to point out the sustainability problem in Kona. He is also perturbed by the traffic problem, and that is just one part of the problem. The drinking water supply is being stretched. You can pump all the water you want out of the basal aquifer and it will keep coming. It is a big ocean out there - -salt water lies right underneath. His calculations tell him it is approximately, at times, 1% sea water coming out of the taps- -not only at his residence in Kona Heights, but at his son's place in downtown [Kailua- Kona]. When he started the family on bottled water about five months ago, Page 2 of 15 Minutes February 24, 2004, Water Board Meeting. doe after reading the story in the newspaper, his son said since drinking bottled water, he is not thirsty anymore. As for himself, he has seen his blood pressure getting higher and higher each year since living here for 8'/2 years and had to start taking blood pressure medication. He is on his third different medication right now, but thinks it is under control because he started drinking bottled water about four months ago. He bought a reverse osmosis unit, and soon it will be installed under his kitchen sink. He sent a letter to an engineer at the Safe Drinking Water Branch (Department of Health) back in October, expressing his concerns, but did not hear back from them. His concern at the time was that the general public that are on salt- restricted diets should know about this and that the 3% or so of the population that are in need of salt - restricted diets should also be aware of this. He was alarmed last November when he went to his doctor at the Kaizer Kona Clinic that after asking the doctor if he was aware of the sodium content in the water here, he was not aware of it at all. There is a State regulation that requires water systems to test for sodium and report those test results on the surface supply once every year; and groundwater, once every three years to the public health community. For some reason, that information was not getting down to the physicians that are treating hypertension patients. At 165 to 166 mg of sodium per liter, it is definitely in a range where the physicians in this community should know about it. (Ms. Scarr asked Mr. Johansen to leave a copy of his charts with the Board.) Mr. Wilkins commented that the map submitted by Mr. Johansen is dated 1995 and is probably out of date since many of the perched high - altitude wells were drilled thereafter. Mr. Johansen also pointed out that it is based on rainfall - -not perched water. 3. Mr. Pat Ryan Member of the Kona Hills Estates Board of Directors, and has three other members present to answer questions. His request was made through Ms. Scarr. She suggested their thoughts be brought to the Water Board on what they have been trying to accomplish. They have been trying to get dedication of their water system made sooner than later. Has files dating back to 1996 where requests were made to the Board [then "Water Commission "] to accept the water system. At that time, because it happened to be a gated subdivision, it did not meet the criteria. They proceeded to gain a response in 1997 from Mr. Pavao, who said there was a possibility they might be able to circumvent the problem with the gated subdivision. In 2001, he joined the Kona Hills Estates Board and took it upon himself to suggest that a special committee be developed to pursue this thoroughly. He made contact with a number of agencies and hired an agent to handle their submissions to the committee requirements. Made contact with Mr. Bruce McClure while he was with DWS and they developed a rapport they thought was going forward to the final acceptance of the system. However, it seemed every time they went forward one step, they were brought down two steps because of additional requirements and information not known. Has documentation from most of the leaders of the DWS staff, and particularly, inside information from Mr. McClure to his directed officers in the working staff that accomplishments, such as their water study, was done, they did their testing, had their walk - through with plans in hand, and had listings of meters (6 or 7) that had to be relocated (minimal distances like 4 to 5 inches to 1 foot). Still, they were not getting the response they felt was necessary to obtain quotes from contractors to do the work in order to meet the requirements. They then hired an attorney, Mr. Ben Tsukazaki, to be able to assist in directing, more forcefully, a presentation and requirement of documentation necessary for them to review and work on. That was done in mid 2002. He had his problems because around that time, they Page 3 of 15 Minutes February 24, 2004, Water Board Meeting. doe found that promotions were made from within the DWS; and those who were put in charge brought them back to square one. They want to know what they can do to get that system turned over to the Board. They feel it is a public utility requirement. It is best for subdivisions like their size. They have 72 lots. Almost half are either being built on or have been already. This subdivision is under TMK (3) 7 -3 -050 (1st increment) built about 15 years ago and (3) 7 -3 -055 (2nd increment) built about six years ago - -now under construction, about five or six homes. 4. Ms. Paula Earl Also with Kona Hills Association, Ms. Earl added that the original developer that developed the Association - -the water was being taken care of by the DWS; but then he went and put the gate up. At that time, Mr. Pavao told him that as long as they had the gate, they would not accept the system. So all the systems have been dedicated to the DWS and all the assessments on the upper increment have been paid. They have found out there other associations that were gated and were getting their water taken care of, so they felt like they were discriminated against and started the process again. They got as far as having DWS come in and look at their Association and tell them what things were needed done to get it taken over. But then when they switched heads of the department, they said they had to decide what the standard is and were not sure they would accept what he had done previously. So they never know whom they are dealing with. On a separate issue of their water bill, they get billed at a single -user rate, so it is the highest possible rate there is, and yet they have 72 lots in the Association. If they were an individual any other place, their water bill would be a lot cheaper, plus they pay the master meter. Then they have the issue of an occasional break in one of the homes and the water goes crazy and is very expensive. They do not feel like the Association should pass their "once every two years" on to the homeowners in case they had a major break in the water system. So in that sense, they feel they are a bit discriminated against because they pay the higher bills and yet they have 72 lots. 5. Dr. Aaron Lorschbough Lives in Holualoa. Concern is about a loss of water (leak) that cost him a lot of money. The details of the case: In the prior six months to the event, his average water use for his home and a few cattle averaged $52 per 2 -month period. There is a master meter that is submetered beyond that and is read in conjunction with the DWS' every- other -month reading. In early September 2003, he was notified that he had a water bill over $1,000. This came as quite a shock, and they immediately shut off their water. They hauled water for two months while they tried to rectify the situation. They determined there were multiple leaks in their waterline running from their submeter to the house, and the line was replaced. However, from the time they were notified there was a leak problem to the time of the next reading, there was another $2,600 charge. So now you are talking about a water loss of $3,600. His repair costs added another $2,500 to the problem. He understood that if you were able to deal directly with the DWS, you would be eligible for reimbursement for part of the damages; but because they are submetered, they are not eligible, except one request every three years. The other problem he has is that his water use is very low on a normal basis, and the residents around him use a lot of water. Their monthly bill (about 20 residences) will be approximately $4,000 to $6,000. So as you look at the overall water use, from the DWS' perspective, it would look like there was very little change; and in effect, the Page 4 of 15 Minutes February 24, 2004, Water Board Meeting. doe loss he suffered was pretty much absorbed by the overall averages of the area. The other issue is that he contacted the DWS before putting in the waterline to see if he could, instead, get a separate line since he lives right along the highway, so he could deal directly with DWS in the future. He was denied that request because of the Department's rules. His request is that the Board consider -- number one, 50% reimbursement of his water loss; and number two, that the Board address this problem for the future to protect residents in private water systems from catastrophic losses. 6 Mr. Larry Ford Mr. Ford stated that he knows Dr. Aaron Lorschbough. He spoke about his experiences with lost water. He is on the neighborhood watch. At night, one time, they found gushing water coming from a meter. They immediately called for a repair person and used spotlights to illuminate the area so that it could be fixed as soon as possible. He knows a lot of water was lost because as they came up the street, there was just a river of water flowing across the street. Also, in his spare time, he farms two acres, and is totally dependent on County water. He had sprung a leak one time and managed to hear the sound before it got too bad. He turned the water off and fixed it over the next couple of days. But if he had not noticed it, it could have been $1,000 or more like Dr. Lorschbough had experienced. He also found two other leaks in his neighbor's water systems because their lines run down the side of his property, and one of them was on vacation. He turned water off and possibly saved them a lot of money. The question is, who is to blame on something like that because when it comes to repairs, nothing lasts forever. His system was only two years old (put in by a licensed plumber), when it sprung the leak, just where the pipe connected to one of the fittings. Accidents do happen, and small farmers and homeowners are at tremendous risk. If he had the loss like Dr. Lorschbough, he would not make any money off his farm for the entire year because that is his margin. He knows the Board has provisions for making adjustments and asked that Mr. Lorschbough's adjustment be given. APPROVAL OF MINUTES ACTION: Ms. Scarr moved for approval of the Minutes of the January 27, 2004, Water Board Meeting and the November 13 and 14, 2003, Special Water Board Meeting; seconded by Mr. Wilkins and carried unanimously by voice vote. APPROVAL OF ADDENDUM: ACTION: Ms. Scarr moved to add Items 5(J) Referral For Executive Session Pualani Estates Subdivision; 5(L) Grant of Easement and Bill of Sale, Pualani Estates Subdivision, Phase 1, and 5(M) Professional Services Agreement (1 through 3); seconded by Mr. Kawamata and carried by roll call (Ayes: 6 — Ms. Scarr; Messrs. Kawamata, Mochida, Tanaka, Wilkins, and Chairman Nakashima; Nays: 0; Absent: 2 — Mr. Tanaka and Ms. Hons). Board took some items out of order for the benefit of those present. 5(a), 5(c) and 5(d). Page 5 of 15 Minutes February 24, 2004, Water Board Meeting. doe MISCELLANEOUS: A. DEDICATION OF WATER SYSTEMS: 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. QUITCLAIM DEED Proposed Ho`okena Standpipe Site (Ho`okena Courthouse Lot) Grantor: Water Board of the County of Hawaii Grantee: County of Hawaii Tax Map Key: (3) 8 -6- 009:011 Note: This parcel of land was given to the Water Commission "aka" Water Board of the County of Hawaii by the County of Hawaii free of charge for the purpose of a new Ho`okena Standpipe Site. This project was cancelled due to some environmental and land ownership issues. 2. DEDICATION DEED Well and Tank Site (Makalei Estates) Grantor: Hiluhilu Development, LLC Tax Map Key: (3) 7 -2- 015:083, Lot 43 (Well Site) (3) 7 -2- 015:084, Lot 44 (Tank Site) 3. GRANT OF EASEMENT AND BILL OF SALE Ahiahi Street Waterline Extension E.W.O. NO.: 2002 -087 Grantor /Seller: Thomas C. Blackburn and Katherine M. Bell TMK: (3) 7 -3- 005:004 Lots: 3 Facilities Charge: $ 11,000.00 CAF: $1,000.00 Final Inspection Date: 11/17/2003 Water System Cost: $13,635.00 4. LICENSE EASEMENT NO. 595 Pressure Breaker Tank Site (Non- Benefit/Non- Exclusive Right) Licensor: Department of Hawaiian Home Lands Tax Map Key: (3) 6 -4 -030: Portion 016 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: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Wilkins. Page 6 of 15 Minutes February 24, 2004, Water Board Meeting. doe Ms. Scarr stated that one question for the Department is what kind of criteria does it use for accepting these water systems. This brings up the Kona Hills issue - -what standards are applying—it is a very important policy issue for this Board. The Manager noted a correction - -Item 1, Quitclaim Deed, is not a dedication and should have been a separate item. Back to other dedications, plans come for review, they are checked for standards, inspected for construction, tested, chlorinated, certificate obtained, it then comes to the Board for acceptance, but not until the Department feels it is in dedicable condition. Ms. Scarr pointed out that the Board changed a very important rule in December 2002 on water service to gated communities. The Rule now reads that "execution, recordation, need indemnification agreement between the Board and the homeowners association and installation of a locking device for the gate in compliance with the Department's standards," which she believed are the same as the Fire and Police departments. Also, "that the distribution system and its appurtenances within the gated community must comply with the Department's Rules and Regulations, its Standards, and all applicable County, State, and Federal regulations before being accepted by the Department." There are a lot of these gated communities around, so the question will be how to implement this rule change - -what standards are going to apply. The Manager stated there are more gated communities asking for dedication after the fact that they were private systems. The Department has developed criteria on what needs to be done prior to acceptance. As testimony indicated earlier, moving a meter four inches may seem trivial, but there are reasons why they occur. DWS insists the system be tested for leaks, is chlorinated (bacteria free), and is up to standards. Engineering staff is working on the criteria list relative to taking over systems. Their main concern is what standards to apply -- whether it be the standards in existence at the time of dedication, or apply today's standards -- realizing that today's standards may be very costly. Ms. Scarr felt that Board should have an opinion about this as well. It is a policy issue of whether or not it is acceptable to have these systems come in as they were approved back then- - they were built to DWS standards when they were built. Mr. Wilkins thought it was clear in the cases where some of these water systems were installed 20, 30, 40 years ago. In any system, if you delay its acceptance by the County long enough, it is going to become obsolete and is going to break down. Either we find a way to accommodate them at prices the homeowners can accept, or maybe create a new classification, archaeological system. He worried because what they hear time and time again is that people get turned down after years of trying to come to a compromise with the DWS or the Department of Public Works (DPW) or whoever is involved and do not make progress toward getting acceptance. An attitude is needed in the Department to work with them to find a solution - -not to put obstacles in their path. The Manager stated that staff has been working with Kona Hills Subdivision, and admitted that it was one that fell through along the way because, as mentioned earlier, Mr. McClure was very instrumental in handling their application. When he left the DWS to take the Director's position at DPW, the mistake was made of not having someone follow up as soon as possible. However, on a comment made earlier by Mr. Wilkins, he clarified that, when you say it is obsolete and we Page 7 of 15 Minutes February 24, 2004, Water Board Meeting. doe should do something - -he cautioned the Board - -the Board's duty is to protect the Department. It should not accept systems that are detrimental to the Department. Mr. Wilkins disagreed with that and stated the Board's duty is to the public. Chairman Nakashima stated that the Board accepts statements from the public and does serve the public, but its main goal is to the Department. Ms. Scarr mentioned that the Department's current system is made up of a series of old water systems that happened to have been built by plantations. And the fact that some of these gated communities were built 10 to 15 years ago - -that would be old. Most of these are that age or newer. Should address the issue as a functional system "as is." In response to Chairman Nakashima's question if the Kona Hills Estates system is pending approval, the Manager replied that what needs to be done is for staff to meet with Mr. Ryan and Ms. Earl to solve the issue. He would be happy to meet with them, either in Hilo or he could meet with them in Kona. Mr. Wilkins commented that this is a good example of why it would be good to have some assigned to the Kona office with the level of authority that Hilo has, thus eliminating the need for staff to come back and forth. Mr. Wilkins had questions on the Quitclaim Deed, Proposed Ho`okena Standpipe (Ho`okena Courthouse Lot). If he understand correctly, this was to be a standpipe facility and is now being turned back over to the County. The Manager replied that the DWS got the land from the County. They thought they had clear ownership, but when DWS started design, there was contested ownership and archaeological concerns. It is not in our best interests to continue. DWS is looking for an alternate site. ACTION: A vote was taken on the Motion. Motion carried unanimously by voice vote. B. WATER BILL ADJUSTMENT – LEAKS IN PRIVATE WATER SYSTEMS: Ms. Scarr stated that her subdivision has a 6 -inch master meter that is read by the Department. A private employee reads the individual meters. Their management company sends out the bills, which must sum up to the DWS' bill. They have good data. The issue is there are no provisions in the Board's Rules for adjustment of leaks for people within private water systems. She read from Page 22 of the Rules and Regulations, which addresses water leak adjustments due to acts of nature. She mentioned her area gets several earthquakes —one that cracked her bathroom floor, and assumed it may also have been the cause of Dr. Lorshbough's pipe breaking. Mr. Kawamata thought it should be spread out over the master meter bill. Ms. Scarr stated the problem with that adjustment is that if the water use is, example, $6,000 bi- monthly, his adjustment over and above that average would be very small. In other words, Page 8 of 15 Minutes February 24, 2004, Water Board Meeting. doe an adjustment for the aggregate is small when it is only based on one individual's catastrophic loss. Mr. Mochida mentioned that the Department is doing something where it can take over the system. Then there would be individual customers. The solution is to get DWS to take over their water system ASAP. Mr. Wilkins commented that does not always work. He was going to plea that the Board ask the Department set up a "rational system " - -not one simply based on one application every three years because for some people, disaster happens more often than three years. He mentioned the Matsumoto water system where people went for long periods with leaks that they did not even know about. When they applied for relief, the leakage was beyond their control. This rational system means taking a look at each application case -by -case, rather than just blindly reverting to relief only being applied for once every three years. It does not always work. The Manager stated that if the Department were to give adjustments in those situations, then it would be acknowledging that people could be totally irresponsible and use any kind of pipe they want and they would get an adjustment. He stressed that people need to be responsible for themselves. The classic case with Matsumoto is substandard plastic pipe—it is brittle. Mr. Heck stated that it seems like there is no staff to check the validity of act of nature claims. The Manager gave an example where an applicant said their leak was caused by an act of nature. DWS was not sure, but was not able to send personnel to the site, so the applicant was asked to provide a notarized statement of the incident. The applicant was given the adjustment after that was provided to the Department. Ms. Scarr agreed with Mr. Mochida that the solution someday will be the dedication of these water systems; however, in the meantime, the DWS will be faced with more of this. She wondered if the Board might consider a rule that, based on records that the subdivision could supply, that it consider an adjustment within a private water system. But it should be based on good records, and it should be a system that is potentially acceptable, which she thinks theirs is, and probably Kona Hills is. Mr. Kawamata asked if, in the meantime, it would be possible to grant a waiver on the master meter. The Manager replied that the Department does have the authority, with respect to the master meter, but not on the individual's meter. Ms. Garson stated that in order to amend the rules, the Board needs to propose a change, place it on the Agenda, and then go to public hearing. The Board cannot address Dr. Lorschbough's request under its current rules. However, there is nothing preventing the Board from suggesting a rule for the future. With respect to Mr. Wilkins' question of why Dr. Lorschbough was denied an individual meter, the Manager stated that he would have to meet with him to see the specifics of his situation. Page 9 of 15 Minutes February 24, 2004, Water Board Meeting. doe Ms. Scarr asked if the Board could ask the Department to consider a leak adjustment on his bill, based on good records of individual use. Ms. Garson replied that the Board has no authority to order the Department to do something contrary to what is in its Rules. Chairman Nakashima recapped that an additional rule will be placed on the agenda, but that it does not remedy Dr. Lorschbough's situation. As Ms. Garson had stated earlier, even if a new rule were to come into effect, it cannot be made retroactive. C. KONA WATER SYSTEM QUALITY: The Manager stated that the Department does realize that some areas in Kona have water with high chlorides. It is concentrated to water coming from the Kahaluu shaft and Holualoa well. He asked three members of staff make separate presentations. Mr. Ronald Ueoka, Microbiologist, made a presentation on water quality. Mr. Robert Ravenscraft, DWS Kona District Supervisor, reviewed how they operate the water system, and Mr. Glenn Ahuna made a presentation on what is being done to rectify the situation. Ms. Scarr suggested this would be a good opportunity to have a subcommittee of the Board to be concerned with moving ahead on the water quality issues in Kona and someone work with the Department, perhaps have a private attorney to help negotiate to move this ahead. Ms. Garson reviewed the process for establishing a subcommittee of the Board. It is a 3- meeting process. The first step is to clearly define what the subcommittee is tasked to do, then the subcommittee has to come back and report to the Board. Then the Board may vote on any recommendations the subcommittee may have. MOTION: Ms. Scarr moved that the Board appoint a subcommittee of members of the Board to work with Mr. Hee to move ahead to facilitate the development of the Kona water systems to improve their quality; seconded by Mr. Heck. Chairman Nakashima asked for some clarification. Ms. Scarr replied this will be a subcommittee on how to improve Kona's water quality; and the reason they need Mr. Hee is if they need to move ahead with negotiations. Mr. Wilkins, Ms. Scarr, and Mr. Heck volunteered to serve on this Planning and Development Subcommittee for the Board. Mr. Wilkins added the purpose of the subcommittee is to gather information and to make recommendations to the DWS. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. Chairman Nakashima added that this would work well with the quarterly strategic planning meetings of the Board. Page 10 of 15 Minutes February 24, 2004, Water Board Meeting. doe Before closing this discussion, the Manager wanted to stress that the water is safe to drink. It does have a high chloride, and he realizes there are concerns about it; but it is safe. Mr. Wilkins suggested that the Manager to have a press release from the Department, announcing to the public of Kona, the various levels (parts per million) at which additional dangers or hazards come into play. Mr. Ueoka added that in the next water quality reports, due July 1, 2004, the sodium content would be shown. These reports are mailed to all Department customers. Ms. Scarr stated that it is important to call the newspapers and ask them to write a story about this or to place some sort of public notice just so that people are informed. Chairman Nakashima asked Ms. Scarr if she could take that up with her subcommittee. B. 2003 TABLE OF ORGANIZATION CHANGE — ADMINISTRATIVE DIVISION, PERSONNEL BRANCH: The Board considered the request to amend the Table of Organization for the Administration Division, Personnel Branch by creating 15 each Student Helper Positions. The positions will be in the Personnel Branch but will be assigned to each Division as needed. The creation of these positions means the Department will no longer need to execute Personal Services Contracts every year to hire the Summer Students. The Department has been averaging 12 student hires per summer: two for Administration, two for Finance, two for Engineering, two for the Micro -Lab and four for Operations. This will cut down on the paperwork required and save on time and effort. Additionally, these positions can be used to hire year -round student helpers who are able to work up to 19 hours per week and not more than 90 full -time days during their breaks. Dennis Lee, Chief of Operations, and Patsy Takeguchi, Secretary - Administrative Assistant, have requested year -round student helpers to perform routine clerical work such as typing, filing, data entry, etc. Depending on the student hired and the type of work they will be performing, the cost would either be $6.25 per hour for Student Helper I and $6.75 for Student Helper II. Attached are the existing and proposed tables of organization. The Manager recommended that the Water Board approve this change to the 2003 Table of Organization for the Administration Division. ACTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Wilkins and carried unanimously by voice vote. Chairman Nakashima suggested breaking for lunch. Since that was suggested, Mr. Wilkins asked that, in view of the presentations the Board just received, if there are any members of the audience who might have questions for which they would like short answers, if they may ask them. Upon direction from Corporation Counsel, the Chairman stated that the Board has already passed that Agenda item. The Board decided to continue on and finish its Agenda. Page 11 of 15 Minutes February 24, 2004, Water Board Meeting. doe E. IMPLEMENTATION OF A DWS STRATEGIC INITIATIVES PROGRAM: Staff scheduled meetings for March 2, 15, and 22, April 5, and 19, 2004, with R. W. Beck, Inc. (Beck), and from 3:30 to 5:30 p.m. with the Board p.m. on the 2nd, the 22nd, and again on April 19th at the same time. The Manager will email the schedule to the Board. If the Board is going to be present, this needs to be a Special Meeting. It is too soon for the March 2 meeting to give notice. Therefore, that meeting will be strictly with staff Also mentioned was the travel time for Board Members from other districts. The Manager will check on the suggestion from Mr. Wilkins that R. W. Beck, Inc., meet with staff one day, and then with the Board the following day at a more reasonable time. He felt they might actually do a better job if they meet with the Department first, do their thinking overnight, and then meet with the Board the next day. Also suggested were meeting places other than Hilo (Waimea was suggested by Ms. Scarr as a halfway point for most members, except for Mr. Heck). She suggested a library room in the Parker Ranch Grill, or a private room at Daniel Thibeau's Restaurant; and Mr. Kawamata suggested the Hapuna Prince Hotel. Chairman Nakashima asked the Department to check for places to meet in the Waimea or South Kohala areas. The Manager stated he would check with Beck first and then make the arrangements. F. MONTHLY PROGRESS REPORT: No questions. Ms. Scarr asked for some highlights, and the Manager reviewed the upcoming Waiaha production well and reservoir project. G. MONTHLY FINANCIAL REPORT: Ms. Scarr noticed cash has not improved, even though the billing system went back up last November. Mr. Wilkins suggested staff place footnotes where there are things the Board may be alarmed at. Mr. Sumada assured the Board that if the Department were running out of cash, it would be brought to the Board's attention. That prompted Ms. Scarr to make another recommendation to the Board that it have a Finance subcommittee, one that is interested in our capital investments. The Board tried to address this issue several meetings ago when the County Treasurer was asked to come before the Board, but it was not very informative. The Board needs to have a better look at where our money is, what we are doing with it, and what we have available to do additional capital improvements. She felt that Mr. Tanaka should be on that subcommittee. Ms. Garson mentioned there are two members missing today. It might be a good idea to get their input. Ms. Scarr stated that the Board is tasked with financing alternatives for capital uses within its system and for expanding its system. The Board ought to ask people to look at financing Page 12 of 15 Minutes February 24, 2004, Water Board Meeting. doe alternatives. She had, from Leeward Planning, a set of documents about County facilities for financing various infrastructure improvements; and felt the Board needs somebody—perhaps Mr. Tanaka would be good person to be on that subcommittee of the Board to look hard at financing options and to look at the Department's finances "in- house." She does not think the Board has a good grip on it. A vote was taken on the approval of a Finance subcommittee (Ms. Scarr volunteering to serve) pending acceptance by two more members willing to serve (Mr. Tanaka was nominated by Ms. Scarr). H. EMPLOYEE OF THE QUARTER PRESENTATION – 4' QUARTER 2003: Mr. Ravenscraft announced that Mr. Michael Omija is being presented with this award and works in his district (Kona District III). He is one of their water plant electrician- mechanics. He spent 20 years with Kau Agribusiness and was picked up by this department immediately after they went out of business. He has been with us since September 1995. The skills he brought with him from the plantation days and his background in industrial electrical work fit right in with the Department's needs. Combined with his willingness to learn and attitude that says "give me the job; I can get it done," have made Mr. Omija an important asset - -not just to Kona, but also to the Department as a whole. He is the kind of employee the Department needs more of. Mr. Omija accepted his award and thanked the Board. MANAGER'S REPORT: 1) Kona Coastview/Wonderview - will be advertised March 7, bid opening April 7. As mentioned before, the County has to do some calculations to determine what the individual assessments will be. Following that, a public hearing will be held where residents will have to approve it. It they approve it, the contract will be awarded to the low bidder. At that time, the DWS will include its figures for reimbursement of the front monies it had spent on design, survey, etc. 2) USGS Drilling Program - rig still at Kaneoha at 1,450 feet (need to go another couple hundred feet); will get a new compressor this Thursday. Mr. Gordon Tribble plans to move the rig first week in March to Hawaiian Ocean View. 3) AWWA National Conference -reminder to make arrangements. The AWWA website also has information about the conference. REFERRAL FOR EXECUTIVE SESSION: 1) Carl Matsumoto/Matsumoto Water Company The purpose of the Executive Session will be to consult with the Board's attorney on questions and issues pertaining to the Board's powers, duties, privileges, immunities and liabilities as per HRS 92- 5(a)(4) on Matsumoto's overdue water bill. 2) Claim filed by Kulana at Kona The purpose of the Executive Session will be to consult with the Board's attorney on questions and issues pertaining to the Board's powers, duties, privileges, immunities and liabilities as per HRS 92- 5(a)(4). 3) Grant of Easement and Bill of Sale - Pualani Estates Subdivision Page 13 of 15 Minutes February 24, 2004, Water Board Meeting. doe K L ACTION: Mr. Heck moved that the Board enter into Executive Session; seconded by Mr. Wilkins and carried unanimously by voice vote. The Board took a recess at 12:37 p.m. and convened the Executive Session at 12:43. Executive Session ended at 12:55 p.m. CHAIRMAN'S REPORT: None GRANT OF EASEMENT AND BILL OF SALE The Water Board deferred the following at its January 27, 2004, meeting, per Department's advice. The water system has been constructed in accordance with the Department's standards and is in acceptable condition for dedication. GRANT OF EASEMENT AND BILL OF SALE PUALANI ESTATES SUBDIVISION, PHASE 1 (Phased Construction Plans) E.W.O. NO.: 2003 -004 Grantor: D.R. Horton — Schuler Homes, LLC TMK: (3) 7- 5- 017:028 & 029 Lots: 127 Zoning: RS -7.5 Facilities Charge: $543,600.00 302 Units Final Inspection Date: December 8, 2003 Water System Cost: $231,083.00 The Manager recommended that the Board approve this Grant of Easement and Bill of Sale, conditioned upon Corporation Counsel's receipt of a fully executed settlement agreement in the matter of Westpro v. International Development Projects, Ltd., et al., Civil No. 03- 1- 0133K, or an indemnity of the Water Board and DWS in a form acceptable to Corporation Counsel, provided by any or all of the parties to the aforesaid litigation, or if that is unavailable, D.R. Horton - Schuler Homes, LLC, dba Schuler Homes. ACTION: Mr. Wilkins moved for approval of the recommendation; seconded by Mr. Mochida and carried unanimously by voice vote. PROFESSIONAL SERVICES AGREEMENT: Professional Services Agreement contracts for the following Department of Water Supply projects are currently being processed. However, the projects are not officially listed on the Department's current 5 -year Capital Improvement Projects list. 1) Construction of the Kuakini Highway 16 -inch Waterline Improvements DWS Job No. 2003 -821 North Kona, Hawaii 2) Construction of the Palani Road Transmission Waterline (Mamalahoa Highway to Palani 3) No. 2 Reservoir) DWS Job No. 2003 -823 North Kona, Hawaii Construction of the Hina Lani Street 1.0 -M.G. Reservoir and Transmission Waterline Page 14 of 15 Minutes February 24, 2004, Water Board Meeting. doe DWS Job No. 2003 -824 North Kona, Hawai `i Pursuant to Resolution 04 -01, it is recommended that the Water Board approve the Agreement contracts of these three projects. Upon approval, the projects' Agreement contracts may then be fully executed. ACTION: Ms. Scarr moved for approval of the recommendation; seconded by Mr. Wilkins and carried unanimously by voice vote. ANNOUNCEMENTS: A. Next Meeting: The next Water Board Meeting will be held on March 23, 2004, 10:00 a.m., at the Department of Water Supply, Hilo Operations Center conference room, Hilo, Hawaii. B. Change in Meeting Place for April 27, 2004, Water Board Meeting: Ms. Scarr asked that the Board reconsider the yearly schedule of meetings and not short- change the West Hawaii meetings. When the Board has its meetings in Kona, a lot of people show up because there are a lot of issues in that area. Mr. Mochida suggested waiting until the other members are present. Mr. Heck referred to last month's meeting where it was decided to have two "floating," meeting places, should there be a need. He had met with the Ocean View Community Development Corporation, and they said they would be glad to set up the community center so the Board could meet free of charge, and have lunch ready. They had April open, and it would need to be announced at a meeting prior to that. The Board Members agreed with his suggestion. Action: Mr. Heck moved to amend the April meeting place from Hilo to the Ocean View Community Center; seconded by Mr. Wilkins and carried unanimously by voice vote. ADJOURNMENT: ACTION: Mr. Kawamata moved for adjournment of the meeting; seconded by Mr. Heck and carried unanimously by voice vote. Meeting adjourned at 1:04 p.m. Secretary Page 15 of 15 Minutes February 24, 2004, Water Board Meeting. doe