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HomeMy WebLinkAbout2005-04-26 Water Board MinutesMINUTES DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII WATER BOARD MEETING April 26, 2005 DWS HILO OPERATIONS CENTER CONFERENCE ROOM MEMBERS PRESENT: Mr. Ivan Mochida, Chairman Mr. Loren Heck, Vice - Chairman Mr. Thomas Goya Ms. Paula Helfrich Ms. Millie Kim Mr. Bernard Konanui Ms. Sandra Scarr Mr. Riley Smith Mr. George Wilkins Mr. Milton D. Pavao, Manager (ex- officio member) ABSENT: Mr. Christopher Yuen, Director, Planning Department (ex- officio member) Mr. Bruce McClure, Director, Department of Public Works (ex- officio member) OTHERS PRESENT: Ms. Amy Self, Deputy Corporation Counsel Ms. Katherine Garson, Deputy Corporation Counsel (11:10 a.m.) Ms. Diane Robertson, R. W. Beck, Inc. Mr. Dave Jochim, R. W. Beck, Inc. Mr. Eric Hirano, Department of Land and Natural Resources Department of Water Supply Staff: Mr. Quirino Antonio, Jr., Deputy Manager Mr. Glenn Ahuna, Engineering Division Head Mr. Daryl Ikeda, Acting Chief of Operations Mr. Richard Tsunoda, Waterworks Controller Mr. Richard Sumada, Assistant Waterworks Controller Mr. Lawrence Beck, Water Resources & Planning Branch Mr. Keith Okamoto, Water Quality Assurance & Control Branch Mr. Clyde Young, Mechanical Engineer, Operations Div. (10:40 a.m.) CALL TO ORDER - Chairman Mochida called the meeting to order at 10:00 a.m. He welcomed the three new Board Members, Mss. Paula Helfrich, Millie Kim, and Mr. Riley Smith. Page 1 of 20 4- 26 -05Min STATEMENTS FROM THE PUBLIC None. APPROVAL OF MINUTES: ACTION: Mr. Goya moved for approval of the Minutes of the March 22, 2005, Water Board Meeting; seconded by Ms. Scarr and carried unanimously by voice vote. APPROVAL OF ADDENDUM AND /OR SUPPLEMENTAL AGENDA: ACTION: Ms. Scarr moved to add to the Agenda, Addendum Items 8(D), PROFESSIONAL SERVICES AGREEMENT, No. 4, Grant of Easement, Honokohau Properties — Water Meter Revisions, and 8(J), VEHICLE AND EQUIPMENT BID NO. 2004 -08, contract time extension request; seconded by Mr. Goya and carried unanimously by roll call vote (Ayes: 9 - Mss. Scarr, Kim, and Helfrich, and Messrs. Goya, Heck, Konanui, Mochida, Smith, and Wilkins). There being no objections, the Board took the following item out of order: HAMAKUA: A. JOB NO. 48 -HW -E, HONOKAA WELL DEVELOPMENT: Reference was made to a letter dated April 6, 2005, from Mr. Eric T. Hirano, Chief Engineer, Department of Land and Natural Resources (DLNR), State of Hawaii. (Mr. Hirano was present at the meeting.) This Honokaa Well Development project has had an unfortunate sequence of delays that has spanned over ten years. Completion of the well, although not comparable in capacity to the Haina well, will increase our reliability of service to the Department's consumers in the area. It will provide some degree of back -up supply for the area. Financial assistance in the amount of $185,000.00 will ensure that the project finally gets completed and that the current State allocation will not lapse. If financial assistance is approved, funds in the amount of $185,000.00 will be available from our Water Commitment Deposit Fund. The Manager recommended that the Water Board approve providing financial assistance to the State in the amount of $185,000.00, to be used to provide needed funds for the completion of Job No. 48 -HW -E, Honokaa Well Development. MOTION: Mr. Goya moved for approval of the Manager's recommendation; seconded by Mr. Wilkins. Mr. Wilkins asked what the State has paid out to date for this well and if this does not get approved, would it be putting the well in jeopardy. Page 2 of 20 4- 26 -05Min Mr. Hirano explained that after joining the DLNR as Chief Engineer a couple of years ago, he found this well to be the "skeleton in the closet." It is so close to completion, but with the State's lack of funds, it would not get done. He, therefore, asked for the Board's consideration in this request. In response to Ms. Scarr's question if there would be a possibility of repayment from the State, Mr. Hirano stated that this year's Legislative Session did not approve any capital improvement projects. He will bring that up with the chairperson (of their Board) for the next session. In response to Mr. Wilkins' request for some background on the State's development of wells on this island, the Manager stated that prior to 12 years ago, the State was actively involved in exploratory wells on this island. After development of the source by the State, the Department of Water Supply would take it from there and turn it into a production well. Honokaa Well is a remnant of that era. He explained about the geology of the area and how it may be the reason why this well was not as successful as expected. He added that $185,000.00 is a very small price to pay to get a new well. Mr. Wilkins stated, for the record, that in all fairness, he hopes this means cooperation between the County and the DLNR on the subject of water for this island. Mr. Heck felt that decisions made way back should enable the transfer of funds from the State. He asked about the plan review and if it was because of the geology. He also asked if 300 gpm is worthwhile putting money up front for. The Manager explained that years ago, back when he was in the Engineering Division, he reviewed the original set of plans for this well. Over the years, the Standards have changed —for example, a SCADA system (data acquisition) is now required. The geology also has a lot to do with it. It is thought that this is an "intersection" of two different lava flows. He also felt that 300 gpm is worthwhile. Chairman Mochida asked if there would be a time limit on completion of the well, if the Board approves these funds. Mr. Hirano replied that the contractor (Keauhou Kona Construction Corporation) is ready to go. Assuming funds are approved, they will go ahead and should complete within 9 to 10 months. The contract total cost is $1.4 million. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. (Mr. Hirano thanked the Board and left the meeting at 10:18 a.m.) SOUTH HILO: A. JOB NO. 2002 -804, CONSTRUCTION OF THE KAIEIE MAUKA PRODUCTION WELL AND SUPPORTING FACILITIES: Bids for this project were received and opened on April 7, 2005, at 2:00 p.m.; and following are the bid results: Page 3 of 20 4- 26 -05Min Bidder Amount Isemoto Contracting Co., Ltd. $1,571,270.00* Jas. W. Glover, Ltd. $2,197,000.00 Primatech Construction, Inc. $2,221,685.00 Project Scope: This project consists of the construction of a production well, 0.10 -MG reservoir and supporting facilities. Project Cost: 1) Low Bidder (Isemoto Contracting Co., Ltd.) 2) Construction Contingency (10 %) Total Construction Cost: $1,571,261.94* 157,126.06 L 728 - 388.00 * Isemoto Contracting Co., Ltd., made an error in their extensions for unit price items and has agreed to the lower amount. Funding for this project will be from the Drinking Water State Revolving Fund (DWSRF). The contractor will have 360 calendar days from the date of Notice to Proceed to complete this project. The Manager recommended that the Board award the contract for JOB NO. 2002 -804, CONSTRUCTION OF THE KAIEIE MAUKA PRODUCTION WELL AND SUPPORTING FACILITIES, to the lowest responsible bidder, Isemoto Contracting Co., Ltd., for their bid amount of $1,571,261.94 plus $157,126.06 in construction contingency for a total contract amount of $1,728,388.00, subject to review as to form and legality of the contract by Corporation Counsel. MOTION: Mr. Goya moved for approval of the Manager's recommendation; seconded by Ms. Scarr. Ms. Scarr questioned why the Department is spending $1.5 million to serve such a small amount of people (approximately 50 residences). The Manager stressed that this is necessary because of EPA regulations, which force the Department to either treat a surface source or develop a new well. It is less expensive to develop a well than to treat the water. He understood Ms. Scarr's concerns, but these are customers of the Department, and it has an obligation to them. In response to Ms. Scarr's question of whether they could be connected to another system instead, he explained that they are too far away. Ms. Scarr stated that every time the Board approves one of these, it means other things are not being done such as areas of unserved people. Spending $1.7 million on this means some other things that could be on the C.I.P. budget are not getting on there. There are plenty other projects that need attention. The Manager stressed that there is no alternative in this situation because if not done, it would result in no service. Page 4 of 20 4- 26 -05Min Mr. Smith mentioned the Mission Statement, which contains something to the effect of maintaining potable water to customers (and assisting others in developing water). He would tend to agree with the Department's proposal in this case, which is to maintain the water to these existing customers. As mentioned, there is no alternative because of EPA regulations. Mr. Wilkins asked for more information on these types of agenda items to enable him to make an informed decision. He asked about EPA regulations, with respect to drilling back into a spring source - -if it would satisfy their rule about surface water. He also asked what the elevation is, how deep the well is, etc. The Manager gave some information on the spring source and stated that he would include more information on the agenda in the future. Mr. Heck added that knowing the population, geology, and history of a source would help the Board and avoid repetitive questions. Mr. Goya reminded the Board that this item has been part of the 2002 -2003 budget and, therefore, has been on the project list, or agenda, since that time but was only now put out for bids. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. B. JOB NO. 2005 -861, JANITORIAL SERVICES AT THE WAIAKEA OFFICE PLAZA (2005- 2006): Bids for this project were received and opened on April 14, 2005, at 2:00 p.m.; and following are the bid results: Bidder Amount The ARC of Hilo $5,283.76/mo. Michael P. Cale, dba Mike's Maintenance $5,450.00/mo. Carl Caria a dba Hui Ke Omega $6,800.00 /mo. Funds are available from the DWS Operating Budget. The contract period is from July 1, 2005, to June 30, 2006, for a total of 12 months. The Manager recommended that the Board award the contract for JOB NO. 2005 -861, JANITORIAL SERVICES AT THE WAIAKEA OFFICE PLAZA (2005- 2006), to the lowest responsible bidder, The ARC of Hilo, for the contract bid amount of $5,283.76/mo., or a total annual contract amount of $63,405.12, 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. ACTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Goya and carried unanimously by voice vote. Page 5 of 20 4- 26 -05Min C. MATERIAL BID NO. 2005 -03, FURNISHING AND DELIVERING WATER METERS, BRASS GOODS, FIRE HYDRANTS, VALVES, CHLORINATORS, PUMPS, PIPES, FITTINGS, SCADA, MOTORS, AND MISCELLANEOUS ITEMS FOR THE DEPARTMENT OF WATER SUPPLY STOCK: Bids were opened on April 14, 2005 (summary sheet was attached to the Agenda). The contract period for all parts is one year, from July 1, 2005, to June 30, 2006. All parts are to establish price agreements for materials on an "As- Needed Basis." The apparent low bidders, as shown on the bid summary sheet, did not necessarily receive the staff's recommendation because it did not meet the specifications as required in the bid documents. The Manager recommended that the Board award the contracts to the following bidders for MATERIAL BID NO. 2005 -03, FURNISHING AND DELIVERING WATER METERS, BRASS GOODS, FIRE HYDRANTS, VALVES, CHLORINATORS, PUMPS, PIPES, FITTINGS, SCADA, MOTORS, AND MISCELLANEOUS ITEMS FOR THE DEPARTMENT OF WATER SUPPLY STOCK, on an as- needed basis, as listed below, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to review as to form and legality of the contracts by Corporation Counsel. The contract period shall be from July 1, 2005, to June 30, 2006. PART NO. DESCRIPTION BIDDER AMOUNT I DUCTILE IRON PIPES Ferguson Enterprises, Inc. $170,511.00 II DUCTILE IRON FITTINGS Ferguson Enterprises, Inc. $350,806.70 III COPPER TUBINGS Ferguson Enterprises, Inc. $69,110.32 IV COPPER FITTINGS Ferguson Enterprises, Inc. $32,121.58 V GALVANIZED PIPES T & C Ferguson Enterprises, Inc. $48,528.09 VI GALVANIZED FITTINGS Ferguson Enterprises, Inc. $64,836.88 VII BRASS FITTINGS Ferguson Enterprises, Inc. $28,623.56 VIII 5/8" WATER METERS Ferguson Enterprises, Inc. $43,308.00 X METER BOXES AND COVERS Ferguson Enterprises, Inc. $44,967.00 XI COMPOUND WATER METERS Ferguson Enterprises, Inc. $8,535.01 XIII DETECTOR CHECK METERS Ferguson Enterprises, Inc. $5,436.57 XIV FIRE SERVICE METERS Ferguson Enterprises, Inc. $26,463.03 XV FIRE HYDRANTS AND EXTENSION KITS Ferguson Enterprises, Inc. $39,795.86 XVI AMERICAN DARLING FIRE HYDRANT EXTENSION KIT Ferguson Enterprises, Inc. $3,627.70 XVIII M & H FIRE HYDRANT EXTENSION KIT Ferguson Enterprises, Inc. $11,945.95 XX BALL VALVES Ferguson Enterprises, Inc. $60,352.50 XXI BALL VALVE, PACK JOINT X METER COUPLING Ferguson Enterprises, Inc. $14,568.29 XXII CORPORATION AND CURB STOPS - Ball Type Ferguson Enterprises, Inc. $37,077.57 XXIII STRAIGHT METER COUPLING & METER FLANGES Ferguson Enterprises, Inc. $10,002.87 XXIV LOK -PAK METER COUPLING Ferguson Enterprises, Inc. $2,980.51 XXV PACK JOINT COUPLING Ferguson Enterprises, Inc. $11,975.26 XXVI TRANSITION COUPLINGS Ferguson Enter rises, Inc. $4,810.50 XXVII FULL CIRCLE CLAMPS Ferguson Enterprises, Inc. $12,614.22 XXVIII HOSE BIBBS Ferguson Enterprises, Inc. $320.21 XXIX INVERTED MARKING PAINT Ferguson Enterprises, Inc. $5,401.00 XXXI GATE VALVES 3" & LARGER 250 #class Ferguson Enterprises, Inc. $58,094.59 XXXII GATE VALVES —2'/z" AND SMALLER Ferguson Enterprises, Inc. $5,777.47 XXXV CHECKERED STEEL PLATES Ferguson Enterprises, Inc. $30,307.00 Page 6 of 20 4- 26 -05Min PART NO. DESCRIPTION BIDDER AMOUNT XLVI BOOSTER AND DEEPWELL PUMP CONTROL BALL VALVES Ferguson Enterprises, Inc. $377,114.63 XLVII AUTOMATIC CONTROL VALVES Ferguson Enterprises, Inc. $450,515.41 IX 1" —2" WATER METERS Badger Meter, Inc. $9,368.75 XII TURBINE METERS AND STRAINERS Badger Meter, Inc. $8,380.00 XLI MAG METERS Badger Meter, Inc. $32,475.00 XIX NUTS, BOLTS, AND THREADED RODS A. P. Water Supply dba HIW- Hawaii $16,928.44 XXX GATE VALVES — 3" AND LARGER 125# class A. P. Water Supply dba HIW- Hawaii $24,080.00 XXXIII BUTTERFLY VALVES 125# class A. P. Water Supply dba HIW- Hawaii $44,340.00 XXXIV BUTTERFLY VALVES 250# class A. P. Water Supply dba HIW- Hawaii $86,710.00 XXXVIII TABLET CHLORINATORS Phoenix V LLC dba BEI Hawaii $4,156.08 XL CHLORINATORS Phoenix V LLC dba BEI Hawaii $15,027.78 XXXVII PUMP SEALS D & M Industrial Repair Services $80,773.00 XXXIX CHLORINE RESIDUAL ANALYZER TK Process Hawaii, LLC $2,705.19 XLIV SURGE ARRESTORS TK Process Hawaii, LLC $21,306.40 LIV COMMUNICATIONS HARDWARE TK Process Hawaii, LLC $22,751.74 LV VARIABLE FREQUENCY DRIVES TK Process Hawaii, LLC $4,225,190.50 LVI LOW HORSEPOWER VFD (U4 HP -15 HP) TK Process Hawaii, LLC $12,442.00 LVII SOLID STATE REDUCED VOLTAGE SOFT STARTER - LOW VOLTAGE TK Process Hawaii, LLC $328,209.10 LVIII SOLID STATE REDUCED VOLTAGE SOFT STARTER - MEDIUM VOLTAGE TK Process Hawaii, LLC $103,790.00 XLIX POWER MONITORING EQUIPMENT Total Control Solutions, Inc. $33,099.00 L SCADA SYSTEM Total Control Solutions, Inc. $31,951.00 XLV MOTORS Water Resources International, Inc. $691,186.00 LI SUBMERSIBLE MOTORS (new only) Water Resources International, Inc. $1,237,268.00 LII SUBMERSIBLE MOTORS (refurbished and rewind only) Water Resources International, Inc. $998,859.00 XVII KENNEDY SAFETOP FIRE HYDRANT EXTENSION KIT No bid XXXVI MECHANICAL SEALS No bid XLII TRANSIT -TIME FLOW METERS No bid XLIII HORIZONTAL END SUCTION PUMPS No bid LIII CENTRILIFT VARIABLE SPEED DRIVE PARTS No bid XLVIII ANTI - CAVITATION VALVE No bid For the Parts where no bids were received, staff shall obtain quotations in the best interest of the Department and in accordance with procurement procedures. ACTION: Mr. Goya moved for approval of the Manager's recommendation; seconded by Mr. Wilkins and carried unanimously by voice vote. Page 7 of 20 4- 26 -05Min HAMAKUA: A. JOB NO. 48 -HW -E, HONOKAA WELL DEVELOPMENT: Taken up earlier. NORTH KONA: A. JOB NO. 2003 -821, CONSTRUCTION OF KUAKINI HIGHWAY 16 -INCH WATERLINE IMPROVEMENTS: The Manager reported that bids for this project were opened on April 21, 2005; however, the prices exceeded estimates a great deal. The reason may be that the Department was trying to compress the construction time because of the Ironman Triathlon. It is hoped that putting the project out to bid once again with a realistic timeframe may realize better prices. The bid will include a timeframe in which construction must halt while the Ironman Triathlon is going on. Mr. Smith recommended that staff check with Ironman Triathlon coordinators because there is a window of time prior to the event where some highways cannot be used because of training for the event. MISCELLANEOUS: A. DEDICATION OF WATER SYSTEMS: The Department received the following documents for action by the Water Board. The water systems have been constructed in accordance with the Department's standards and are in acceptable condition for dedication. 1. GRANT OF EASEMENT WATER METER PURPOSES (Papaikou) Grantor: Shropshire Group, LLC TMK: (3) 2 -7- 004:025 2. GRANT OF EASEMENT AND /OR BILL OF SALE * added by amendment KUKUINUI SUBDIVISION, INCREMENT I Subdivision Application No. 98 -070 Grantor: RS 10 KALAOA, LLC E.W.O.: 2004 -070 TMK: 7 -3- 010:037 Lots: 21 — (4 Road Lots) = 25 Total Facilities Charge: $25,04 $110,000.00 (corrected by G. Ahuna) Paid: June 8, 2004 Capital Assessment Fee: $1,000.00 Paid: June 8, 2004 Final Inspection Date: April 1, 2005 Water System Cost: $129,529.00 Page 8 of 20 4- 26 -05Min 3. GRANT OF EASEMENT OOKALA WATER SYSTEM ACCESS AND UTILITY EASEMENTS Grantor: William F. and Elisa G. Hewetson TMK: 3 -9- 001:037 4. GRANT OF EASEMENT HONOKOHAU PROPERTIES — WATER METER REVISIONS Subdivision Application No. 2000 -172 Grantor: McClean Honokohau Properties E.W.O.: 2002 -091 TMK: 7 -4- 008:026 & 049 Water System Cost: $10,599.00 Final Acceptance Date: July 23, 2003 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. (Mr. Ahuna noted in Item No. 2, the Facilities Charge should be $110,000.00.) Ms. Self noted that on Item No. 2, Grant of Easement and Bill of Sale for Kukuinui Subdivision, her understanding was that the road has already been conveyed to the County, but the deed has not been recorded yet. It is ready for recordation. If the Deed is recorded prior to this coming to Corporation Counsel's Office, there will be no need for the Grant of Easement because it would be County property. ACTION: Ms. Scarr moved to approve the recommendation, with the change to the title in Item No. 2 to Grant of Easement and /or Bill of Sale and correction of the facilities charge in No. 2 to $110,000.00; seconded by Mr. Goya and carried unanimously by voice vote. B. MATERIAL BID NO. 2005 -04, FURNISH BASE COURSE, SAND, COLD MIX, PORTLAND CEMENT, QUIKRETE, AND NO. 3F ROCK TO THE DEPARTMENT OF WATER SUPPLY: Bids were opened on April 13, 2005; and following are the bid results: Page 9 of 20 4- 26 -05Min Yamada & Sons, Inc. Jas. W. Glover, Ltd. Grace Pacific Corp. DISTRICT I: A. 3/4 -Inch Base Course (Cost per ton) $10.94 $13.00 No Bid B. I'' /z -Inch Base Course (Cost per ton) $9.90 $10.00 rr C. No. 3F Rock (Cost per ton) $11.98 $13.50 rr D. 44 Sand (Cost per ton) $16.14 $14.75 rr E. Mortar Sand - ASTM C144 (Cost per ton) No Bid $33.50 rr F. Portland Cement 94 lb. bags (Cost per bag) No Bid $11.00 rr G. Quikrete - 60 -1b. bags (Cost per bag) No Bid No Bid rr Page 9 of 20 4- 26 -05Min The Manager recommended that the Board award the contract for MATERIAL BID NO. 2005 -04, FURNISH BASE COURSE, SAND, COLD MIX, PORTLAND CEMENT, QUIKRETE, AND NO. 3F ROCK TO THE DEPARTMENT OF WATER SUPPLY, by Parts to the following for the amounts shown above, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel. District I - Parts A, B, C, H, I, and J to Yamada and Sons, Inc. Parts D, E, and F to Jas. W. Glover, Ltd. District II - Part H to Grace Pacific Corporation District III - Parts H and I to Grace Pacific Corporation For the Parts where no bids were received, staff shall obtain quotations in the best interest of the Department and in accordance with procurement procedures. The contract period shall be from July 1, 2005, to June 30, 2006. MOTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by Ms. Scarr. Page 10 of 20 4- 26 -05Min Yamada & Sons, Inc. Jas. W. Glover, Ltd. Grace Pacific Corp. H. Cold Mix- ASTM D4215 -87 (Cost per ton) $62.50 $67.30 rr L Blended Material (Cost per ton) $17.19 $17.50 rr J. Hot Mix — County Mix IV $66.25 $183.80 rr DISTRICT II: A. 3/4 -Inch Base Course (Cost per ton) No Bid No Bid No Bid B. I'' /z -Inch Base Course (Cost per ton) rr rr rr C. No. 3F Rock (Cost per ton) rr rr rr D. 44 Sand (Cost per ton) rr rr rr E. Mortar Sand - ASTM C144 (Cost per ton) rr rr rr F. Portland Cement 94 lb. bags (Cost per bag) rr rr rr G. Quikrete - 60 -1b. bags (Cost per bag) rr rr rr H. Cold Mix- ASTM D4215 -87 (Cost per ton) rr rr $97.50 DISTRICT III: A. 3/4 -Inch Base Course (Cost per ton) rr rr rr B. I'' /z -Inch Base Course (Cost per ton) rr rr rr C. No. 3F Rock (Cost per ton) rr rr rr D. 44 Sand (Cost per ton) rr rr rr E. Mortar Sand - ASTM C144 (Cost per ton) rr rr rr F. Portland Cement 94 lb. bags (Cost per bag) rr rr rr G. Quikrete - 60 -1b. bags (Cost per bag) rr rr rr H. Cold Mix —ASTM D4215 -87 (Cost per ton) rr rr $92.00 L Hot Mix — County Mix IV rr rr $77.00 The Manager recommended that the Board award the contract for MATERIAL BID NO. 2005 -04, FURNISH BASE COURSE, SAND, COLD MIX, PORTLAND CEMENT, QUIKRETE, AND NO. 3F ROCK TO THE DEPARTMENT OF WATER SUPPLY, by Parts to the following for the amounts shown above, and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel. District I - Parts A, B, C, H, I, and J to Yamada and Sons, Inc. Parts D, E, and F to Jas. W. Glover, Ltd. District II - Part H to Grace Pacific Corporation District III - Parts H and I to Grace Pacific Corporation For the Parts where no bids were received, staff shall obtain quotations in the best interest of the Department and in accordance with procurement procedures. The contract period shall be from July 1, 2005, to June 30, 2006. MOTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by Ms. Scarr. Page 10 of 20 4- 26 -05Min Some questions followed regarding the procurement process. Chairman Mochida suggested a summary of the process be prepared to help the new Board Members. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. C. MONTHLY PROGRESS REPORT: Ms. Scarr mentioned that last month, the size of the Waiaha storage was going to be updated in the report; but she did not see a change on this report. The Manager stated that Mr. Ahuna was working on it as part of the C.I.P. to be presented. D. PROFESSIONAL SERVICES AGREEMENT: Professional Services Agreement contracts for the following Department of Water Supply projects are currently being processed. However, the projects are not listed on the Department's current 5 -year Capital Improvement Projects list. 1) Waiakea Office Plaza Air Conditioning System (consists of air quality study, A/E design services for new air conditioning, and fire alarm system). The project is needed to replace a nearly 35- year -old air conditioning system that is unreliable and prone to major breakdowns. Useful life is typically 20 years. A significant portion of the costs will be going into replacing the air handling system (ducting and air handling units), a new mechanical room and equipment (chilled water compressor and pumps), cooling tower, and building a more reliable A/C system with backup. Expected energy cost savings will be significant and is projected to be at about 40 %, or $4,400.00, on an average month billing of $11,000.00. Fee: $340,000.00 (estimate, subject to negotiation) Construction cost estimate: $3,000,000.00 Funding would be from CIP reserves. 2) Structural Assessment of Existing DWS Tanks. This project will involve an assessment by a licensed structural engineer of twenty -five (25) existing tanks that have been identified by the Operations Division as severely compromised. Assessment report will recommend either replacement or repair of the tanks, estimate of remaining functional life, prioritization of remedial action, and the cost. Fee: $30,000.00 (for the study, estimate, subject to negotiation). 3) Laupahoehoe (Manowaiopae) 0.5 -MG Reservoir. This project is to replace the existing severely deteriorated 0.1 -MG concrete reservoir which is structurally compromised. Tank walls exhibit horizontal cracks and leaking from the slab flooring. Project will require an Environmental Assessment and design for the demolition of the existing and construction of a new tank. Fee: $180,000.00 (estimate, subject to negotiation) Construction cost estimate: $1,800,000.00 Page 11 of 20 4- 26 -05Min 4) Halaula Well Development - Phase I (by addendum) Job No. 2005 -867 Project Scope: The scope of services for this contract includes: 1) The preparation of the Environmental Assessment (in accordance with the Office of Environmental Quality Control). 2) Preparation and filing of the Well Drilling Report with the Commission on Water Resource Management (Department of Land and Natural Resources). 3) Preparation and filing of the Source Engineering Report (Department of Health). 4) Preparation of the Preliminary Engineering Report. 5) Preparation of plans, specifications, cost estimate, and bidding documents: a. Plans shall include site master plan layout and grading. 6) Conduct well aquifer test. Consultant: To be procured Consultant Fee: Approximately $100,000.00 Construction Cost Estimate: $600,000.00 The Manager recommended that the Board approve the new projects, the professional services contracts, subject to results of the procurement process and that either the Chairman or the Vice - Chairman be authorized to sign the documents, subject to approval of our Corporation Counsel. Mr. Wilkins asked about Item No. 1, Waiakea Office Plaza Air Conditioning System, and the impact it will have on employees -- whether work will be going on during work hours. The Manager explained that work on the ducts will be carried out on weekends. Work on the cooling tower and areas not close to employees may be done on weekdays. In response to Ms. Scarr's questions about cost and if the condition of the system was known when the building was purchased, it was explained that the system was known to be the original one from when the building was constructed (approximately 30 years ago). It was noted that the building's purchase price of $3.6 million for approximately 30,000 square feet would be hard to find in today's market. The Manager commented that the $3 million cost may come in higher or lower once the Department sees the plans. Mr. Goya mentioned the possibility of adjusting rent to cover some of the costs. ACTION: There being no further questions, a vote was taken on the Motion. Motion was carried unanimously by voice vote. There being no objections, the following was taken up early: VEHICLE AND EQUIPMENT BID NO. 2004 -08 FURNISHING AND DELIVERING VEHICLES AND EQUIPMENT TO THE DEPARTMENT OF WATER SUPPLY: The Board considered a request from the contractor, Clark Automotive Group, Inc., dba Island Chevrolet, for an extension of contract time of 31 calendar days for Part "C," and 62 calendar days for Parts "E" and "G." Page 12 of 20 4- 26 -05Min Staff has reviewed their request and finds that the contract time extensions are justified. The Manager recommended that the Board approve a contract time extension to Clark Automotive Group, Inc., dba Island Chevrolet, of 31 calendar days for Part C from April 24, 2005, to May 25, 2005, and 62 calendar days for Parts E and G, from April 24, 2005, to June 25, 2005, for VEHICLE AND EQUIPMENT BID NO. 2004 -08 FURNISHING AND DELIVERING VEHICLES AND EQUIPMENT TO THE DEPARTMENT OF WATER SUPPLY. ACTION: Ms. Scarr moved for approval of the Manager's recommendation; seconded by Mr. Goya and carried unanimously by voice vote. RECESS: The Board took a short recess from 11:00 a.m. to 11:10 a.m. E. DEPARTMENT OF WATER SUPPLY PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2005 -2006: Ms. Scarr's comments on the Capital Budget revolved around what the Department and the Board should be doing, with regard to the Mission Statement, to satisfy the needs of Hawaii County." She saw most of this budget as "catch -up" and wondered if something could be put toward moving forward. The Manager stated that this initially came out to over $30 million, but staff had to prioritize because of various concerns within the system. These are things that absolutely have to get done. He mentioned the Mission Statement's clause, "to assist others in water systems," and clarified that the Department is always available to help if someone comes forward. He realized there is nothing in the budget that expands the system, except Waiohinu or possibly the Ahualoa well development. The remaining projects take care of current deficiencies. He added that he had directed staff to take a good look at Honokaa, Kona, and Kohala because they are areas where development is being stifled by the Department's limited source. Mr. Heck asked about staff's process in setting priorities; for example, what makes a project a higher priority than another. The Manager suggested dedicating another meeting to this subject and perhaps have staff explain why things are prioritized the way they are. A short example is Ahualoa Well Development. In Honokaa, the Department will not allow any subdivisions because of lack of capacity. There is a tremendous shortage of housing, and the Mayor has approached the Department on these concerns. The same goes with North Kohala, where the Mayor had mentioned Police recruits having a hard time finding housing when they are stationed there. That kind of drives the priorities. Discussion followed on the limitations not only being funds but also the Department's ability to put projects out with its current staffing. The Manager reiterated prior discussions about the large percentage of staff s time spent on regulatory work such as reviewing plans from the Planning Department. Page 13 of 20 4- 26 -05Min In response to Mr. Smith's suggestion of possibly hiring a consultant manager to oversee projects, the Manager replied that it was considered but found to be outrageously expensive. Ms. Scarr asked if this budget includes a possible rate increase. The Manager replied that it includes only a power cost increase. Ms. Scarr stated that one of the ways, previously discussed, as a way to add capital to the budget was to increase the rates. At some point in this calendar year, the Board will be discussing water rates. That is another possible input to this budget. What the Board is looking at today does not take any of that into consideration, so these figures may be revised based on the Board's discussion on rate increases. Mr. Goya noticed that a major increase in the budget is salary and benefits. The Department is also looking at adding a substantial amount of new personnel. He hoped the consultants can address this as the Board explores what the best way is to have rates detract the increasing cost of salaries and benefits, and also setting aside some money for projects. He noticed that the additional personnel are included for the full 12 months of the fiscal year, so there is already some flexibility in the budget. F. REVIEW OF MONTHLY FINANCIAL STATEMENTS: Mr. Wilkins asked for some clarification on the water commitment deposit fund. He understood that it increases as more commitments are given out; however, he was not sure how it decreases. The Manager explained that when the projects are implemented, a transfer is made from that fund into the facility charge fund to credit the facilities charge owed. Ms. Scarr asked about balance sheet versus C.I.P. budget and how to find out what pockets of money are projected to be used and for what purposes. There are a number of sources on the balance sheet (such as customer deposits payable from restricted assets -- 11,503,000.00). She asked if some of that is included in the $15 million talked about in the budget. Mr. Tsunoda replied that funds available for construction are classified as restricted assets (he referred to Page 5). To tie in that $41 million of restricted cash, investments on the balance sheet, it is under Restricted Assets. Ms. Scarr noted that the FC is $6 million, water commitment deposit (WCD) is $8 million. Mr. Tsunoda stated that they are included in the $41 million on the balance sheet. Ms. Scarr asked if it meant that of the $41 million, if about $14 million was uncommitted, or put in a reserve of some sort. The Manager clarified that facility charges are what ultimately get transferred to C.I.P., plus a portion of the revenues. Page 14 of 20 4- 26 -05Min Mr. Sumada added that the C.I.P. reserve fund, the facility charge, and the water commitment deposit funds all potentially go to funding future projects. Ms. Scarr asked if that meant that the Department already has $22.6 million committed and this is an additional $15 million out of the $41 million. She also asked if the $22.6 million would be reflected in the projects that are already on the list (ongoing). Mr. Tsunoda replied in the affirmative. G. PRESENTATION BY R. W. BECK INC.: R. W. Beck, Inc., provided the Board with an update of the Water Master Plan status. Mr. Dave Jochim and Ms. Diane Robertson were present. Mr. Jochim, project manager for the master plan project, briefed the Board on work started about one year ago and what more is needed. They will need to determine what the usage characteristics demands are and project future water demands, working with the Planning Department and other sources. They want to look at where the water will come from (existing and future sources of supply). Need to look at existing infrastructure and future requirements to deliver this water. That gets into some operating issues as well. Finally, they need to look at how all this is paid for (financial plan will be prepared). He introduced Ms. Diane Robertson, who would be updating the Board on progress in terms of demands, infrastructure, and delivery of water. Ms. Robertson reported on: • Demand Projections - now complete, demands will be fed into the system analysis (models); they will look at each water system and if they can supply demands and fire -flow requirements. Results from that will be compared to DWS' level of service criteria. The summary of demand projections, by district, shows the existing estimates for 2005 and projected demands for 2025, and an average percent yearly increase. She noted that these projection numbers include unaccounted for water (water loss). For North and South Hilo, they show a negative percent; and the reason is the high water loss in these systems (40% to 50% estimated). Even though population is expected to grow, they are expecting the water loss to decrease because of personnel now dedicated to leak detection. In response to Mr. Smith's question if demand is done in relation to the Planning Department, Ms. Robertson stated that they made an effort to be consistent with the Planning Department and the General Plan. They included zoning and land use and also looked at water commitments, both on the DWS' side as well as planned developments that the Planning Department already knows about. They have also provided information and coordinated with Fukunaga & Associates, Inc., who are working on the source of supply analysis for DWS. • Growth Projections - largest amounts of growth expected in Puna, Kona, and North and South Kohala (average 1.8% per year). • Demand Projections relationship to the Strategic Plan - ties in with Issue No. 5 of the Plan where it talks about water system facilities must be improved to meet standards and regulations and provide for future needs. It also ties in with the Board's strategic directions that were developed about a year ago to implement a proactive C.I.P. that achieves strategic direction, accelerates development of source water and distribution facilities, stays ahead of Page 15 of 20 4- 26 -05Min EPA/DOH regulations to reduce impacts on staff, and explores strategies to supply existing agricultural customers currently using potable water. Level of Service Criteria — they are considering things like system pressures, velocity in the pipes, sizing of storage facilities, sizing and redundancy of pump stations, fire -flow requirements, and peak factors for demand. In some cases, they are just getting started with analysis, but in some instances, they are finding some systems do not quite meet standards already in place. They will feed that into the C.I.P. and how it is prioritized. To give a picture of how the level of service criteria fits into the plan, they compared DWS' criteria with other industry standards and are moving forward with the system analysis by looking at each water system. Based on these results, they will recommend necessary improvements, which will feed into the C.I.P. Capital Improvement Program Prioritization -this is just an introduction and will be providing greater detail in a couple of months when they meet with the Board again. Initial considerations look at level of service criteria, standards, condition of existing facilities, public health and safety, development and growth needs, coordination with other utilities (roads, sewer), and cost of service and rate impacts. As part of the water plan, they will take all of these and have somewhat of a ranking based criteria and feed into the C.I.P. Next Steps - meet with Engineering staff to coordinate for the C.I.P. update that will be done as part of the water plan. Also get input on physical and safety considerations from Operations staff, as well as the tank assessment to be done soon. Also include consideration of the results from the analysis based on the level of service criteria and how existing facilities can meet or where they do not meet existing level of service. Mr. Smith asked if, in the scope of work, it includes a game plan schedule to get off surface water sources. Ms. Robertson replied there is no specific item to look at that. They are looking at some of the cost impacts for energy in terms of development of new sources and water quality. Ms. Scarr understood the strategy used to evaluate what is existing and what needs to be done to improve the existing systems, which seems to be the focus of the water master plan. She felt that the water master plan should also be doing something to assess areas not served by the County, who have no level of service. Ms. Robertson responded that they are including planned future developments, even if they are in a new service area. Particularly in the Kona area, there are a number of developments going on and are being considered in their analysis. When they do their analysis, they are looking 20 years out when there will be all these new developments. In response to Ms. Scarr's question about non - served areas, she stated that there is a separate piece of work they are doing to look at unserved areas. That has not gone away. It is included in the master plan. This is just one piece of the work they are doing. In response to Ms. Helfrich's question about water usage in dry versus wet areas and if that is factored in, Ms. Robertson replied that their baseline for demands are based on consumption. They obtained the last few years' water usage from the Department's Finance Division by district Page 16 of 20 4- 26 -05Min and then each district is broken up by zones. Their future demand projections account for the differences between the east and west sides of the island. Mr. Wilkins commented that the changing nature of home ownership, example, in Kona, may have impact on the average home consumption. Example, in the past, people lived on lots of three acres of more and did their own irrigation /agriculture; and now you have many going into condominiums or townhouses where the property manager is the one taking care of the irrigation. Ms. Robertson stated that they did not quite have enough details to break it up into those different categories, but those demands are accounted for as best as the Planning Department could account for in its zoning. If a certain zone is known for potential heavy redevelopment, that zone would have been weighted more heavily with demands. In response to Mr. Goya's question if they have a high and a low scenario, Ms. Robertson replied that for planning purposes, looking at facilities and how to meet customer needs, they took the more conservative approach of assuming higher demands. Ms. Helfrich asked if they would be portraying different scenarios or if it would be one. Ms. Robertson replied that the results from the system analysis will be just from the higher range, but their demand projections show that potential range of difference. When you look one or two years out, they are just estimates so there is not a lot of certainty; and these are projections or a range of what is likely or probable. That information is presented, and the actual analysis is looking at the high side of that. Ms. Helfrich asked if limited population per available water resources is factored in only at the Planning Department level or at the State level, or if there is any discussion in this master plan study. Ms. Robertson replied that some of that will come out in the analysis they are doing because their projections are based on information obtained from the Planning Department. They have indicated how much growth they plan for in a given area; and when they go looking for available water sources, what they may find is that they are actually not able to meet the amount of growth that the Planning Department has planned for. Ms. Scarr asked if their raw data would be available to the Board because she felt that some of the Board Members would really like to take a look at what the Planning Department is saying about zoning and development. Ms. Robertson replied that they have a couple of draft memos in process, and they could make them available to the Board in the next few weeks. (Ms. Scarr indicated that would be very useful.) R. W. Beck, Inc., will be making some more interim presentations to the Board, and will be providing a draft of the plan before final. Page 17 of 20 4- 26 -05Min H. MANAGER'S REPORT: 1) Employee of the Quarter - Ms. Doreen Shirota, Secretary, was presented with the Employee of the Quarter award for first quarter of 2005. 2) Hawi Well No. 2 Repair Emergency Contract - the Manager reported that he evoked his emergency authority; and the Department procured an emergency consultant, Beylik Drilling, Inc. ( Beylik), due to the well breakdown. The contract will need execution by Chairman Mochida; however, Beylik is already working on the well. 3) Kona Coastview/Wonderview status -no historical issues with the project; work to proceed. Mr. Smith suggested that the Department check with the Department of Public Works regarding the permit to fill some lava tubes. In the past, lava tubes have served as drainage; and he would like to see if they approve of the filling. The Manager stated he would check. 4) USGS Drilling Program - Mr. Heck noted that they are down to about 500 feet. It was noted that they will complete the Ocean View Well to a depth of 2,000 feet, which is what they used to drill to. After that, the rig will not be used for wells deeper than 1,000 feet. However, the Department will not be involved in the program after Ocean View. Discussion followed on the Department's experience with USGS. Mr. Heck's concern was with how the lack of production by USGS seems to reflect negatively because people start to associate USGS with the County. He wondered if the Department should have some responsibility to report on what the problems really are. The Manager indicated that his feeling is that the Department will no longer be involved in the program after this, and he would hesitate to create any friction in the working relationship with that agency. Also, it was Senator Inouye's work that got matching funds for the program. In response to questions about pulling out and letting a private contractor finish Ocean View, the Manager did not feel it was in the best interests of the Department to throw more money into it. There is no budget money for anything further. With respect to discussion on whether or not calls to the USGS from the Board Members would help, the Manager indicated he could give them Mr. Tribble's number. However, Chairman Mochida did not feel it would help. He commented that this is how they have worked since being on this island. Perhaps the community could do something with an editorial in the newspaper. He reminded the Board that Ocean View was very happy when the rig went there, so the Board should just let them finish up. 5) Kona Water Quality - the Department received the initial draft on treating water from the Kahaluu Shaft from the consultant, Brown & Caldwell. However, it does not include what would be done with the brine. 6) Personnel Needs - at the next meeting, staff will be providing a reorganization of a technical section. The County's Data Processing has helped in the creation of positions. They will be very similar to the County's positions. This section may be taken out of the Administration Division. Page 18 of 20 4- 26 -05Min CHAIRMAN'S REPORT: 1) Chairman Mochida asked for Corporation Counsel's guidance in regard to next month's meeting. Both he and the Vice - Chairman will be absent, along with Ms. Scarr; and he asked what the procedure is for determining who shall run the meeting. Upon Ms. Garson's advice that Chairman Mochida could appoint someone from the Board, he appointed Mr. Goya as Chairman Pro -Tem for the May 24, 2005, Water Board Meeting. 2) Follow -up to Ms. Scarr's survey Ms. Scarr explained what has transpired so far on this survey. It should help determine what areas the Board should be turning its attention to. Ms. Helfrich thought that because this survey has the Water Board's name on it, it is like inviting "fire." If you do not include costs associated with getting a satisfactory water supply, people are going to jump at the chance. She suggested an outside source for conducting the survey, rather than having the Department or the Board involved. Mr. Smith suggested including some information on cost to find out what people would be willing to pay. He agreed with Ms. Helfrich's earlier comment that people would go for it if only asked what they would like, but cost is another issue. Ms. Scarr indicated that the Department's Mission Statement now means that the Board is mandated to satisfy the water needs of the County. She did not agree that this would raise expectations because nothing is being promised. It means assisting, or trying to look after the people of Hawaii County. She clarified that this is not a Water Board project. Discussion followed on the potential costs for a postage permit (ballpark figure of $28,000.00 given by Mr. Tsunoda). Ms. Scarr did not think this was too high a price to find out the water needs of the County. Also discussed was the matter of who would count the results. Ms. Scarr had earlier indicated she had volunteers in her district; however, this survey is eventually meant to include everyone on the island. Ms. Scarr suggested hiring a firm to sort the return cards. Chairman Mochida stressed that the Board needs to know the costs for all of this. What started out as a survey only in one district is now starting to grow and will cost money and added work to staff. Mr. Heck indicated he showed interest last month to include his district because this definitely needs to get started. Mr. Wilkins felt it is important to find out how people would react. Ms. Scarr was asked to start with District 7 and get costs for postage, who would compile the information (if a firm is hired, how much it would cost), and bring this information to the June meeting (she will not be present in May). Page 19 of 20 4- 26 -05Min Ms. Helfrich asked why that district is being chosen when there is no question of the lack of water delivery in the area. She suggested a smaller area like Kaieie. She added that this is a good idea but was not sure everyone knew where they were going with it. A small sample would be a better way to start out. Mr. Konanui mentioned utilizing subdivision associations, where they put out their own mailings; and perhaps this could be included in their publications. That would eliminate costs for the Department. He suggested getting together with the various associations. Mr. Heck stated that the Ocean View Road Corporation will not allow anything to do with the Department of Water Supply to be included in their newsletter because they do not want to be seen as political. Ms. Kim asked if staff could comment on this. Normally, this type of thing would come from the staff level because they see the day -to -day things. She found it unusual for this initiation to come from the Board level and would not feel comfortable acting on something that is not written up by staff and nothing showing costs and criteria. Chairman Mochida emphasized that the Board needs to know more about cost. VEHICLE AND EQUIPMENT BID NO. 2004 -08 FURNISHING AND DELIVERING VEHICLES AND EQUIPMENT TO THE DEPARTMENT OF WATER SUPPLY: Taken up earlier. ANNOUNCEMENTS: Next Meeting: The next meeting of the Water Board will be held on May 24, 2005, 10:00 a.m., in the Royal Kona Resort, 75 -5852 Ali`i Drive, Kailua -Kona, Hawaii. STATEMENTS FROM THE PUBLIC None. ADJOURNMENT ACTION: Ms. Scarr moved for adjournment of the Meeting; seconded by Mr. Goya and carried unanimously by voice vote. (Meeting adjourned at 12:55 p.m.) 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 20 of 20 4- 26 -05Min