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HomeMy WebLinkAbout2004-06-22 Water Board MinutesMINUTES DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII WATER BOARD MEETING June 22, 2004 HILO OPERATIONS CENTER CONFERENCE ROOM MEMBERS PRESENT: Mr. Ivan Mochida, Vice - Chairman Mr. Loren Heck Ms. Pamela Hons Mr. Bernard Konanui Mr. Leonard Tanaka Mr. George Wilkins Mr. Bruce McClure, Director, Department of Public Works (ex- officio member) ABSENT: Mr. Earl T. Nakashima, Chairman Mr. Thomas Goya, Water Board Member Ms. Sandra Scarr, Water Board Member Mr. Milton D. Pavao, Manager (ex- officio member) OTHERS PRESENT: Mr. Darin Arai, representing Mr. Christopher J. Yuen, Planning Director (ex- officio member) Ms. Diane Noda, Deputy Corporation Counsel Mr. Sherman Hee Mr. Glenn Santos, Business Insurance Services Mr. Mark Rodrigues, Business Insurance Services Mr. Dave Jochim, R. W. Beck, Inc. Mr. Tom Cutting, R. W. Beck, Inc. Department of Water Supply Staff: Mr. Quirino Antonio, 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 Mr. Clyde Young, Operations Division (from 10:18 a.m. to 10:25 a.m.) and from 11:10 a.m. to 1:04 p.m. CALL TO ORDER: Vice - Chairman Mochida called the meeting to order at 10:00 a.m. STATEMENTS FROM THE PUBLIC: None. APPROVAL OF MINUTES: Page 1 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc ACTION: Mr. Wilkins moved for approval of the Minutes of the May 25, 2004, Water Board Meeting; seconded by Ms. Hons and carried unanimously. APPROVAL OF ADDENDUM AND SUPPLEMENTAL AGENDA: None. SOUTH HILO: A. RISK MANAGEMENT — GENERAL LIABILITY COVERAGE: At the request of the Water Board at its May 25, 2004, meeting, Business Insurance Services, Inc., has provided 2 additional general liability coverage options for the Board's consideration. A summary of all options available along with corresponding annual premiums are as follows: For Board discussion and/or action. Mr. Rodrigues stated that there was an amendment to Option 1 and Option 2. Option 1 should read $3,000,000.00 and Option 2 should read $5,000,000.00. After a discussion about the pros and cons of obtaining more insurance coverage, the Board decided that they would stand by their decision made at the May 25, 2004, Water Board meeting. B. JOB NO. 2004-843, JANITORIAL SERVICES AT THE WAIAKEA OFFICE PLAZA: Bids for this project were opened on June 8, 2004, at 2:00 p.m.; and following are the bid results: BIDDER Approved The Arc of Hilo $4,453.46 /month Pacific Facility Services, Inc. May 25, 2004 Option 1 Option 2 Limit $1,000,000.00 $2,000,000.00 $4,000,000.00 Retained Limit $150,000.00 $150,000.00 $150,000.00 Premium* $123,103.68 $213,103.68 $259,103.68 *Adjustment Factor per $1,000 of payroll $21.28 $16.29 $24.62 For Board discussion and/or action. Mr. Rodrigues stated that there was an amendment to Option 1 and Option 2. Option 1 should read $3,000,000.00 and Option 2 should read $5,000,000.00. After a discussion about the pros and cons of obtaining more insurance coverage, the Board decided that they would stand by their decision made at the May 25, 2004, Water Board meeting. B. JOB NO. 2004-843, JANITORIAL SERVICES AT THE WAIAKEA OFFICE PLAZA: Bids for this project were opened on June 8, 2004, at 2:00 p.m.; and following are the bid results: BIDDER BID AMOUNT The Arc of Hilo $4,453.46 /month Pacific Facility Services, Inc. $4,666.80 /month C. W. Maintenance $4,714.12 /month Funds are available from our DWS Operating Budget. The contract period is from July 1, 2004, to June 30, 2005, for a total of 12 months. RECOMMENDATION: It is recommended that the Board award the contract for JOB NO. 2004- 843, JANITORIAL SERVICES AT THE WAIAKEA OFFICE PLAZA, to the lowest responsible bidder, The Arc of Hilo, for the contract bid amount of $53,441.52, and that either the Chairman Page 2 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc or the Vice - Chairman be authorized to sign the contract, subject to review as to form and legality by Corporation Counsel. MOTION: Mr. Heck moved for approval of the recommendation; seconded by Mr. Tanaka. Mr. Wilkins commented on the bids being very close and he believed that the bidders were given a very specific scope of service, and told to bid on that basis. The Deputy stated that the bidders were given a scope of work and all of the bidders had evaluated the amount of work that needed to be done and based on that came up with their amounts. The Deputy also mentioned that by law the Department is forced to award to the lowest responsible bidder. Ms. Hons questioned if the Department had any way of getting out of a contract if it felt that the bidder was not performing as expected. The Deputy stated that there are termination clauses in the contract. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. NORTH KONA: A. IRRIGATION AGREEMENT, D.R. HORTON - SCHULER HOMES, LLC: D.R. Horton - Schuler Homes, LLC, submitted an Irrigation Agreement to irrigate the park site within the Pualani Estates Subdivision, Tax Map Key 7 -5- 041:052. The park site will eventually be dedicated to the County. The Agreement specifies the terms and conditions for a Master Landscape Water Meter. RECOMMENDATION: It is recommended that the Board approve this Agreement, subject to the approval of the Corporation Counsel and that either the Chairman or the Vice - Chairman be authorized to sign the document. MOTION: Mr. Heck moved for approval of the recommendation; seconded by Ms. Hons. There was no discussion. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. KA `U: A. JOB NO. 95-634, CONSTRUCTION OF THE PAHALA DEEP WELL #2 EXPLORATORY WELL DRILLING (WELL NO. 1229 -02): Bids for this project were opened on May 27, 2004, at 2:00 p.m.; and following are the bid results: Bidder Amount Wai`eli Drilling & Development $460,242.00 Water Resources International, Inc. $473,700.00 Beylik Drilling, Inc. $672,000.00 Page 3 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc Project Scope: This project consists of the redrilling of an exploratory well in Pahala. Project Cost: 1) Low Bidder (Wai`eli Drilling & Development) $460,242.00 2) Construction Contingency (7 %) $ 32,258.00 Total Construction Cost: $492,500.00 Funding for this project will be from the Facilities Charge fund. The contractor will have 270 calendar days to complete this project. RECOMMENDATION: It is recommended that the Board award the contract for JOB NO. 95- 634, CONSTRUCTION OF THE PAHALA DEEPWELL NO. 2 EXPLORATORY WELL DRILLING, to the lowest responsible bidder, Wai`eli Drilling & Development, for their bid amount of $460,242.00 plus $32,258.00 in construction contingency for a total contract amount of $492,500.00, and that either the Chairman or the Vice - Chairman be authorized to sign the contract, subject to review as to form and legality by Corporation Counsel. MOTION: Mr. Wilkins moved for approval of the recommendation; seconded by Mr. Tanaka. Mr. Heck questioned if the other well was at a 1,000 feet also, how much was the Department getting out of that. The Deputy stated about 500 gpm, a little over half a million gallons a day. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. PUNA: A. JOB NO. 2003-820, CONSTRUCTION OF OLAA NO.7 & 8 BOOSTER STATION IMPROVEMENTS: The contractor, Isemoto Contracting Company, Ltd., has requested for a contract time extension of 120 calendar days due to material delays beyond their control. See attached letter for details. This would be the first time extension to the contract. Staff has reviewed the request and finds that the 90 calendar days are justified. Thirty (30) days are needed to get the parts, and sixty (60) days to complete the project. RECOMMENDATION: It is recommended that the Board grant this extension of contract time of 90 calendar days to Isemoto Contracting Company, Ltd., for JOB NO. 2003 -820, CONSTRUCTION OF OLAA NO. 7 & 8 BOOSTER STATION IMPROVEMENTS. If approved, the contract completion date will be extended from June 26, 2004, to September 25, 2004. MOTION: Mr. Wilkins moved for approval of the recommendation; seconded by Mr. Tanaka. Mr. Wilkins had serious questions about certain critical components of the pipeline that were not available, and with an unknown time of when it would be ready. Page 4 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc Mr. Tanaka questioned on how long the contractor had been on- going. Mr. Young stated that it started in September. Mr. Lee stated that the contract is with the prime contractor not the subcontractor because they are not legally bound to the Department. The Department tries to get a commitment but the only relationship is with the general contractor. Even if they tell us they'll get it in 30 days, we cannot hold them liable, we can only hold the general contractor liable. The general contractor is saying it is beyond their control. The extension is being requested because of that fact. The Deputy stated that the Department can put something in the contract so that the contractors know what is being expected and that the Department has some kind of control over the time schedule of the contractor. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. MISCELLANEOUS: A. DEDICATION OF WATER SYSTEMS: We 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) Grantors: Robert Kelshaw Greenwell TMK: (3) 7 -4 -008: Portion 047 The Deputy requested that Item 1, be removed from the agenda because the landowner is no longer the grantor. The Department will have to work with a different landowner. MOTION: Mr. Tanaka moved for the Deputy's request to remove Item 1 from the agenda; seconded by Mr. Wilkins. Mr. Wilkins asked if this was the first step toward the gaining of the easement that would allow water to get to the Kahaluu Well. The Deputy stated that this easement was long planned. It is located on the Hina Lani Road from Mamalahoa down to Queen K. That water system was planned a long time ago and it's just that a couple of reservoirs were omitted from the original contract from the improvement district and this was one of them, the pipeline easement from the proposed reservoir site from the top of Hina Lani. 2. BILL OF SALE Ka Palani Kula Subdivision E.W.O. NO.: 2001 -052 Grantor: Frank DeLuz, III TMK: (3) 2 -3 -037 Lots: 13 Zoning: RS -7.5 Page 5 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc Facilities Charge: $37,125.00 Final Inspection Date: 01/31/2002 Water System Cost: $56,695.00 RECOMMENDATION: It is 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 that Item 1 be removed from the agenda and that Item 2 be approved; seconded by Ms. Hons and carried unanimously. B. MAINTENANCE BID NO. 2004-06, MAINTENANCE OF RESERVOIR SITES AND PUMP STATIONS SITES IN THE DISTRICTS OF PUNA, NORTH AND SOUTH HILO, NORTH AND SOUTH KONA, AND NORTH KOHALA FOR THE DEPARTMENT OF WATER SUPPLY: For Part F (North and South Kona) of the award made by the Board at its meeting on May 25, 2004, there was a mathematical error that was previously overlooked. The unit price per month is $1,480.00 instead of the previously calculated price of $1,430.00. The new contract amount is $35,520.00 instead of $34,320.00, which was approved at the May 2004 meeting. RECOMMENDATION: It is recommended that the Board approve Part F, North and South Kona, of MAINTENANCE BID NO. 2004 -06, MAINTENANCE OF RESERVOIR SITES AND PUMP STATIONS SITES IN THE DISTRICTS OF PUNA, NORTH AND SOUTH HILO, NORTH AND SOUTH KONA, AND NORTH KOHALA FOR THE DEPARTMENT OF WATER SUPPLY, to Frank Mizoshiri for the contract price of $35,520.00 and that either the Chairman or the Vice - Chairman be authorized to sign the contract, subject to review as to form and legality of the contract by Corporation Counsel. MOTION: Mr. Tanaka moved for approval of the recommendation; seconded by Mr. Heck. There was no discussion. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. C. PROPOSED AMENDMENT TO RULES AND REGULATIONS: Comments from the Board and Special Counsel, Sherman Hee, at the May 25, 2004, meeting on the proposed Draft New Rule, "Section 4 -13, Acceptance of Existing Private Water Systems," have been incorporated; and public hearings, for consideration, will be scheduled in Hilo on July 27, 2004, and in Kona on August 24, 2004. No discussion. D. MONTHLY PROGRESS REPORT: Review of progress report of projects. Page 6 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc Mr. Heck stated that the progress report should be posted on the website. E. REVIEW OF MONTHLY FINANCIAL STATEMENTS: Review of financial statements and information. Mr. Sumada stated that the audited financial statements for fiscal year 2003 would be presented in July and representatives from KPMG would be available for any questions. Mr. Mochida asked how the billing system was doing. Mr. Sumada stated that the billing is only a week behind and hopefully by the end of the year things would be caught up. Mr. Heck wanted to know if the Department was looking for a new company and if we had a consultant to help us. Mr. Sumada stated that we did not have a consultant. The Department is still talking with the existing software company about resolving the problems that still exist. Mr. Tanaka questioned the repair and maintenance expenses. He wanted to know why it was so high, repair and maintenance was $638,000 but the budget for the year was $250,000.00. Mr. Sumada stated that this year Queen Liliuokalani Trust Deepwell repair was $154,000.00 and it was charged to that account. Mr. Lee stated the majority of these repairs relate to the plant section of Operations. They are trying to catch up with all the backlog work that's been put aside for a number of years. He stated that the booster stations need a lot of work, electrical, electronic controls also need a lot of work. So they are targeting these jobs and doing it. They are 255% of the existing budget, which is way over what was budgeted for the year. Mr. Tanaka questioned if they should increase it. Mr. Lee stated that they have increased it for the next fiscal year. It depends on the workload and what is priority. Mr. Heck questioned on the travel account. Mr. Sumada stated that the travel is budgeted for and this year more people travelled. F. DEPARTMENT OF WATER SUPPLY PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2004 -2005: The proposed Operating and Capital Improvement Budgets for Fiscal Year 2004 -2005 were published in the newspapers for presentation at the Public Hearing held on June 22, 2004, at 9:30 a.m. RECOMMENDATION: It is recommended that the Board approve the proposed Operating and Capital Improvement Budgets for the Fiscal Year 2004 -2005. MOTION: Mr. Wilkins moved for approval of the recommendation; seconded by Mr. Tanaka. There was no discussion. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. Page 7 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc G. REFERRAL FOR EXECUTIVE SESSION: The purpose of this Executive Session is to consult with the Board's attorney on questions and issues pertaining to the Board's powers, duties, privileges, immunities, and liabilities pursuant to H.R.S. 92 -4 and 92- 5(a)(4) regarding Harris Computer Systems. Referral was deferred because Counsel had no further information. H. MANAGER'S REPORT: 1. Kona Coastview/Wonderview status 2. USGS Drilling Program 3. C.I.P. Descriptions 4. Special Attorney The Deputy stated that the status of Kona Coastview/Wonderview project is moving forward. A public hearing is scheduled for July 12, 2004 to give information to the homeowners in the area and then subsequent to the public hearing and depending on how it goes, there will be subsequent action by the County Council. The Department approved a loan to help finance the project. Mr. Wilkins stated that they be notified by email in regards to the meeting, when it gets closer to the date. The Deputy stated that email would be no problem. The USGS Drilling Program, still in Kanehoa. C.I.P. Descriptions were passed out earlier with discussion. Any questions please contact the Department. The C.I.P. descriptions will be put on website. Discussion on the Special Attorney was whether or not the Board wanted to keep the special attorney, procurement would need to be set up. If the Board desires an attorney then the Department would ask for resumes from those interested. Mr. Tanaka asked if there was a six month extension for Mr. Hee's contract until the Board can decide what they wanted to do. The Deputy stated that Corporation Counsel would review Mr. Hee's contract and review any procurement procedures that might allow the Department to appoint an attorney under the direction of the Corporation Counsel's office. Mr. Hee stated that his contract is vague that it ends on June 30. But there's a provision that states that he can be given special assignments. Under the procurement process it will probably be five or six months before you are able to issue a new contract to someone because you have to go out for the publication which takes about three months, just to bring in bidders. The question is, how does the Board deal with the interim. RECESS: 11:00 a.m. to 11:10 a.m. (Mr. Clyde Young joined the meeting.) CHAIRMAN'S REPORT: Page 8 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc Vice - Chairman Mochida announced that he would be leaving the meeting; and Mr. Heck moved that Mr. Tanaka be elected Chairman Pro -Tem; seconded by Ms. Hons and carried unanimously by voice vote. Vice - Chairman Mochida left the meeting at 11:11 a.m. J. STRATEGIC PLAN — 2004 - 2009 /ANNUAL BUSINESS PLAN — 2004 -2005: During the months of January through May 2004, the Board and staff of the County of Hawaii, Department of Water Supply (DWS), jointly developed a five -year Strategic Plan and Annual Business Plan. The Strategic Plan identifies issues, strategies, and goals that must be addressed to bring strategic direction, established by the Board, to fruition. The Strategic Plan identifies Key Performance Indicators (KPIs) for use in measuring progress related to solving Issues and accomplishing Goals. The Annual Business Plan (Business Plan) is a companion document to the Strategic Plan. It identifies prioritized activities, or tactics, that must be completed to achieve the goals identified in the Strategic Plan. Status of these activities will be reviewed with the Board on a regular basis, and the Business Plan, itself, will be revised and updated each year. The Business Plan has been organized to present tactical activities that the DWS will complete during the last half of 2004 and first half of 2005. It includes associated budgets, schedules, milestones, and staff responsibilities aligned with each tactic. The Deputy Manager recommended that the Water Board accept the Strategic and Annual Business Plans. MOTION: Mr. Heck moved to accept the Strategic and Annual Business Plans with the reservation that through discussion, there can be additions or variations to the plans; seconded by Mr. Wilkins and carried unanimously by voice vote. Mr. Jochim continued that the plan with three tabs, or sections, handed out today cover five years. However, every year, we tack another year to the period. It is a rolling document. The business plan is a companion document to the strategic plan. It lists the tactics staff will undertake, starting July 1, 2004, through this coming fiscal year. Every year, it will be necessary to update and renew this annual business plan. Page 9 shows a series of tables - -each item with tactics that will be undertaken during FY 2004/2005. Next to the tactics listed are staff personnel, or "champions," tasked with getting them done. They all lead up to the strategic direction set back in March of this year. Mr. Heck commented that the "road map" along the way has changed, in that the Mission Statement, as developed at the Water Board's Strategic Planning Retreat held November of 2003, is the only thing that has changed. That Mission Statement, "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." It seems to have been omitted. He would like to see the term "assist and facilitate development of water systems in areas not currently served" added. Mr. Cutting clarified the difference between Vision and Mission statements. The Vision Statement contained in the strategic and business plans is where the Department wants to arrive in five years. The Mission Statement means what we do in our day -to -day basis. That is not a vision. Page 9 of 15 C:ADOCUME- 1 \RKAUHANE \LOCALS -1 \Temp \6- 22- 04minutes.doc Mr. Heck did not see "satisfy the water needs of the County" as being specific enough and requested to have the Mission Statement included. Example, add after the word "County," "including assisting and facilitating development of water systems in areas not currently served." This does not necessarily mean the Department will have to pay for it; but rather, to assist, as was discussed during the Strategic Planning Retreat in November. Mr. Wilkins agreed. It seemed like from one draft of the strategic plan to the next, the Mission Statement seemed to be fading more and more. It could be added onto the same page as the Vision Statement, and expand it to include the Mission Statement. Mr. Lee thought that the statement, "satisfy the water needs of the County," is saying the same thing; but Mr. Tanaka also agreed it is a little more vague. Mr. Heck also suggested he would like to see each "Champion" give a brief discussion of what is written, which is very good, but needs clarification for the Board, such as "who, what, when, where, why." Mr. Ahuna felt that the Vision Statement is a general and all- encompassing statement and is fine as is. In the tactics in the Business Plan, the Department addresses extending water systems. Mr. Cutting explained that staff and the Board put a tremendous effort into the contents of this over the past five months. Everything in there is choreographed to come together in one document. It is difficult to make a change in one place without obscuring impacts in another place. It is never cast in concrete. His suggestion is that the Board and staff consider making this a monthly activity — meaning the Board can look at staff's activity by looking at the tactics and measuring them. He also suggested in the monthly Agenda, an item be added called "Strategic Planning," to allow discussion about these very things. He turned the focus to the three plans (Strategic Plan, Business Plan, and Governance Policies) —what he referred to as a "3- legged stool." The four components to the Governance Plan are: Governance Process; Board/Manager Linkage; Manager's Limitations; and Strategic Direction. He focused on Strategic Direction first, and that is what they drew from the Board at its March 2004 meeting. In the past two weeks, staff has drafted policies around those strategic directions. His vision, as this goes forward, is if the Board had an item on the Agenda, it could ask staff to report on the KPI metrics. It could look at strategic direction and modify as necessary and develop or create policy as it relates to the strategic direction. There is nothing wrong with having change to any of these three documents, but to do it arbitrarily without the proper amount of discussion may alter something elsewhere in the document. Mr. Wilkins asked if, without any conscious effort on the part of the Board, anyone else could see that the Mission Statement is disappearing. His beliefs are the same as Mr. Heck and Ms. Scarr (who was not present but has spoken before on this issue) in that it should be put back into the document in an area where you cannot miss it and not change any other page. The Deputy Manager addressed Messrs. Heck's and Wilkins' concerns. One of the definitions Mr. Cutting had given in coming up with the Vision Statement was that it needs to be in one breath. Staff worked at cutting it back to what is shown in the Vision Statement today. He stressed that the term, "County of Hawaii," is not only the areas that have water systems. It includes the "whole" island, meaning places with and without water. Page 10 of 15 C:ADOCUME- 1 \RKAUHANE\LOCALS -1 \Temp \6- 22- 04minutes.doc Mr. Heck still felt the need to get those words in to make it clear to all citizens of the County of Hawaii. It will make more of an impact. Ms. Hons found it interesting that it seemed to be two -sided (pointing in the direction of the Board and then in the direction of staff). She added that the Mission Statement is important to the Board because it had gone through the two -day process back in November to come up with that one Mission Statement. Mr. Tanaka added that the Strategic Planning Retreat had been conducted by a different facilitator at that time (Mr. David Tarnas); however, representatives from R. W. Beck, Inc., were also present. Now we have R. W. Beck, Inc., as the consultant, coming in from a different angle, and the Mission Statement discussion has fallen through the bottom. Mr. Lee's suggestion of two paragraphs instead of the one Vision Statement was agreed to by the Board, with Mr. Cutting's addition of definitions for them; and a formal motion is as follows: Mr. Heck amended the motion to simply add the Mission Statement to the same page at the beginning of both the Strategic and Business plans where the Vision Statement is shown, with the addendum of a definition of what a Mission Statement and what a Vision Statement mean; seconded by Ms. Hons. Mr. Tanaka picked up on Mr. Heck's earlier suggestion of having staff "Champions" come to Board Meetings for further discussion of what is in the documents handed out today to allow for a "recording mechanism" for the Board. Mr. Cutting recalled the Board's meeting last month in Kona where some comments were made about this not being aggressive enough. He had given the answer that this "3- legged stool" will have a huge impact on the Department from the top to the bottom workers within the organization. He referred to it as "change management." If you apply this, it will create the environment or culture that the Board and the Department are seeking. He had referred to this process last month as "training wheels" in that the first six months are critical. Staff has never undertaken anything like this before; and now we are talking about the Board's expectations of staff to deliver. He cautioned being careful not to run too fast and to pick up the pace when staff becomes more familiar with this. Mr. Heck mentioned that the Board cannot have reasonable expectations without understanding and hoped to see, starting next meeting, possibly three Champions present to review their tactics. (Mr. Wilkins suggested making this a formal request of the Department.) It was agreed that up to 1/2 hour be spent with three "Champions" each meeting, possibly starting with the first three on the list —Ms. Kapahu, Mr. Okamoto, and Mr. Ikeda, if they are available. The Deputy Manager noted that he could check to see who is available. It may not have to be in the order listed. ACTION: A vote was taken on the amendment by Mr. Heck as stated above. Motion carried unanimously by voice vote. Page 11 of 15 C:ADOCUME- 1 \RKAUHANE\LOCALS -1 \Temp \6- 22- 04minutes.doc RECESS: Mr. Heck moved for a short recess; seconded by Mr. Wilkins and carried unanimously by voice vote. Recess was from 11:58 a.m. to 12:17 p.m. K. WATER BOARD GOVERNANCE POLICIES: A draft set of Water Board policies was presented to the Water Board for review and discussion. The draft policies covered four policy areas: 1. Governance Process - Water Board Governance Policies - Governing Style - Water Board Job Description - Agenda Planning - Chairperson's Role - Water Board Members' Code of Conduct - Values Statement - Water Board Committee Principles - Water Board Committees - Cost of Governance - Equal Employment Opportunity 2. Water Board — Manager Linkage - Global Governance - Unity of Control - Accountability of the Manager - Delegation to the Manager - Monitoring Manager Performance 3. Manager Limitations - Manager Constraint - Treatment of Consumers - Treatment of Staff - Financial PlanningB udgeting - Financial Condition and Activities - Emergency Manager Succession - Asset Protection - Compensation and Benefits - Communication and Support to the Board - Equal Employment Opportunity 4. Strategic Direction - Water Board Direction to the Manager - Staff Core Competencies - Funding Sources/ Management of Financial Resources - Implementation of CIP - Utilization of Human Resources - Development of Source Water and Facilities - Water System Regulations - Non - Potable Water Strategies Mr. Cutting mentioned that as the Board had never been governed by policies, it may questioned why have policies. He pointed out that the policies will make the Department move forward faster. Before when he had asked the Board if it has a set of policies, the only answer was the Hawaii County Charter, so his sense was that the Board did not have a set of policies. Page 12 of 15 C:ADOCUME- MRKAUHANEALOCALS -1 \Temp \6- 22- 04minutes.doc This draft is based on Orange County and Santa Clara County, but designed for this County, worked on by staff. The Board will probably spend two or three months absorbing this set of policies. Mr. Wilkins asked what role the counsel plays in defining these policies. Mr. Cutting replied that as many people as appropriate could look at and comment on these policies. Mr. Wilkins worried about the dispute between governance and guidelines. Mr. Cutting replied this is a decision the Board needs to make, but would think they are more like guidelines. They guide behavior at the Board and staff level. If adjustments are needed, they should be adjusted. This draft is a product of staff. There are just as many policies that apply to staff as to the Board. He mentioned this is a quantum leap from where the Board/Department has been operating. For those Board Members who may prefer to operate individually, all he would suggest is that they try this because they may find their jobs easier and may find time to devote to what they have a passion for. Mr. Heck commented that this set of policies is a good thing, and he is looking for guidance. He asked how to proceed in refining this document — whether it be devoting another 15 minutes to the items already suggested be placed on the monthly Agenda or everyone commenting on the whole thing or sectioning it off. Mr. Hee noted the need for input from Corporation Counsel on whether they need adoption or not by the Board. Some things highlighted by Mr. Cutting and commented on by the Board followed: • Page 6 – Code of Conduct; Section 6.5 – Mr. Heck asked what is meant by the Board shall be properly prepared [for meetings]. Mr. Cutting replied it meant the Board shall review all materials provided prior to meetings. He added that if more detail is needed, it can be added. Mr. Wilkins commented on the statement that the Board's loyalty is to the Department of Water Supply. He added there is a higher loyalty, and that is to the people of Hawaii. The two should run hand in hand and asked how that is resolved. Mr. Cutting replied you could put both in there if that is the consensus. Mr. Wilkins stated he may do that because of his feelings of loyalty. Mr. Cutting mentioned applying the "20/80" rule here. It is no secret that these Plans are only 80% correct. It may take another five months to perfect them. • Page 14 – Accountability of the Manager – Mr. Cutting mentioned that the Manager is the Board's only link to the Department. That means the Board can only hold the Manager accountable. By knowing the Manager must follow the four sections of the "pie" shown earlier, there will be more time for the Board to focus on important issues. • Page 21 – if the Board thinks there is anything more they do not want the Manager to do, now is the time to add it. • Page 28 – the Water Board direction to the Manager is in the first paragraph, the "Mission Statement." • Pages 29 -35 – these are not in the Orange County and Santa Clara Water District Policies because they are specific to this Department. Examples are, Page 29 - Page 13 of 15 C:ADOCUME- 1 \RKAUHANE\LOCALS -1 \Temp \6- 22- 04minutes.doc "achievement of organizational efficiency and a high level of services requires adding in or increasing staffiboard competency," and Page 30 "enhancement of financial skills." Mr. Cutting added that the greater value the Board can provide to the citizens of this County and staff is to focus on the "pie." If he were staff, he would be hungry to hear from the Board as to where we are going to get to that direction. It should invite people in to educate itself. They are also urging the Board to consider if there is a different way to free up time to focus. He mentioned the "consent agenda" which is essentially putting everything in there that the Board would accept because it has done the homework on them. That Agenda lists those things that could be dealt with by a mere rap of the gavel and moving on. There would also be opportunity to remove any item for more discussion, but the point is to move on. He added that this whole process will make their work on the Water Master Plan that much easier and reminded everyone that the next six to nine months are critical. The plan needs more information, more detail. If all they did were to hold conference calls between himself, Mr. Jochim, and a few members of staff's "Champions," to mentor them through, it might be valuable. When asked by Mr. Heck if that is covered in R. W. Beck, Inc.'s., existing budget, Mr. Jochim replied it is not. Mr. Cutting mentioned that when the Department's public relations person and strategic business plan person are on board, it will be a lot easier; but until that time, the Department may need a little help along the way. He mentioned the theme that had come up time after time during this whole process, and that is the "show me" attitude from staff. There is some skepticism about whether or not the Department is going to follow through. Now is the time to show them that the "3- legged stool" will move forward. When asked by Mr. Tanaka if there are any plans to retain R. W. Beck, Inc., in moving forward, the Deputy Manager replied that R. W. Beck, Inc., will be continuing with the Water Master Plan. It is a good idea to have the mentoring because this is something new to everybody. Nobody would like to see it put on the shelf. There still needs to be a decision on whether to hire two people —one public relations and one strategic business manager —or combine the two. In the Business Plan, it is itemized as one of the first milestones that needs to be decided. Bringing that person on board will require a lot of training. The idea is when the Manager gets back, the decision needs to come forward. With respect to Ms. Hons question of whether these new positions would be "in- house" or not, as discussed by the Board at a previous meeting, the Deputy Manager replied that since this strategic plan came up, the thinking is more toward "in- house." The reason is that somebody from the outside probably would not have the focus or concentration than someone "in- house," and there may be enough issues to warrant having someone on staff. Mr. Tanaka noted it may take a couple of months to implement the plan and asked if the Department needed anything from the Board today. Page 14 of 15 C:ADOCUME- 1 \RKAUHANE\LOCALS -1 \Temp \6- 22- 04minutes.doc The Deputy Manager replied that the Manager had delegated him to take this plan forward. He will be working with the team on their responsibilities. Hopefully, the Department can bring in the new personnel mentioned earlier to take over the work from there. Mr. Tanaka asked if the time needed at future Board Meetings is 15 minutes each for the Strategic Plan, the Business Plan, and the Board Policies as well as having the "Champions" come in, three at a time, for a total of 1/2 hour. That totals 1 hour and 15 minutes. ANNOUNCEMENTS: A. Next Meeting: The next Water Board Meeting will be held on July 27, 2004, at the Hilo Operations Center; 889 Leilani Street; Hilo, Hawaii, as follows: 1. 9:30 a.m. - Public Hearing on the proposed amendment to the Rules and Regulations 2. 10:00 a.m. - Regular Water Board Meeting B. Mr. Bernard Konanui commented that as a new member of the Water Board, he is interested in learning from all the reading material provided to him and looks forward to working with everyone. C. Mr. Wilkins mentioned people in Kona protesting about not enough information on the sodium and chloride levels in the wells. While attending the AWWA National Conference in Orlando, Florida, he visited one of the vendors who offered a small portable device for testing for salinity. He paid for it himself (cost $79.90) and intends to try it to see if it works. It may be a way to quickly and accurately measure for salt content on a daily basis. Mr. Lee suggested when Mr. Wilkins plans to do his sample, to please contact the DWS' Kona Office, Mr. Robert Ravenscraft, to schedule the Department's Microlab personnel to also be present. Mr. Wilkins acknowledged that he would do that. STATEMENTS FROM THE PUBLIC None ADJOURNMENT ACTION: Mr. Wilkins moved for adjournment of the meeting; seconded by Mr. Heck and carried unanimously by voice vote. Meeting adjourned at 1:04 p.m. Clerk- Stenographer Draft of'Miscellaneous Items I and J prepared by Ms. Shirota, Secretary. The Department of Water Supply is an Equal Opportunity provider and employer. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, Room 326 -W, Whitten Building, 14th and Independence Avenue, SW, Washington DC 20250 -9410. Or call (202) 720 -5964 (voice and TDD) Page 15 of 15 C:ADOCUME- MRKAUHANEALOCALS -1 \Temp \6- 22- 04minutes.doc