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HomeMy WebLinkAbout2005-08-23 Water Board MinutesMEMBERS PRESENT: MINUTES DEPARTMENT OF WATER SUPPLY COUNTY OF HAWAII WATER BOARD MEETING August 23, 2005 HILO OPERATIONS CONFERENCE ROOM Mr. Ivan Mochida, Chairman Mr. Loren Heck, Vice - Chairman Mr. Thomas Goya Ms. Paula Helfrich (10:07 a.m.) Ms. Millie Kim (10:08 a.m.) Ms. Sandra Scarr Mr. Riley Smith Mr. George Wilkins ABSENT: Mr. Bernard Konanui, Water Board Member Mr. Milton D. Pavao, Manager (ex- officio member) Mr. Bruce McClure, Director, Department of Public Works (ex- officio member) Mr. Christopher Yuen, Director, Planning Department (ex- officio member) OTHERS PRESENT: Ms. Katherine Garson, Deputy Corporation Counsel Ms. Amy Self, Deputy Corporation Counsel Mr. Bill Brooks, Westpro Development Mr. Stephen Bowles, Waimea Water Services Mr. Melvin Kam, State of Hawaii, Department of Health, Safe Drinking Water Branch Department of Water Supply Staff: Mr. Quirino Antonio, Jr., Deputy Manager Mr. Glenn Ahuna, Engineering Division Head Mr. Daryl Ikeda, Chief of Operations Mr. Richard Tsunoda, Waterworks Controller Mr. Richard Sumada, Assistant Waterworks Controller Mr. Calvin Uemura, Customer Service Section Mr. David Mellom, Customer Service Section Mr. Lawrence Beck, Engineering Division Mr. Keith Okamoto, Water Quality Assurance and Control Branch CALL TO ORDER - Chairman Mochida called the meeting to order at 10:00 a.m. STATEMENTS FROM THE PUBLIC None Page 1 of 22 8 -23 -05 Minutes APPROVAL OF MINUTES MOTION: Ms. Scarr moved for approval of the Minutes of the July 26, 2005, Water Board Meeting; seconded by Mr. Goya. The Deputy Manager reported that both Mr. Tsunoda and Ms. Hudman wished to have clarifications made to statements by R. W. Beck, Inc., during their presentation last month. On Page 9, the statement was made, "There is no systematic process for teaching them their job other than having them tag along with somebody." The clarification needed is that when Customer Service hires someone, there is a training process they go through before going out in the field with other staff members. After discussion on the best way to have the clarification made, for the record, it was noted that the approval of the Minutes at this meeting shows the change or clarification to the July Minutes. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. APPROVAL OF ADDENDUM TO AGENDA ACTION: Mr. Heck moved to add Addenda Items NORTH KONA (C) JOB NO. 2001 -785, extension of contract time, and MISCELLANEOUS (Q) WRITE -OFF COLLECTIBLE ACCOUNT; seconded by Ms. Scarr and carried by roll call vote (Ayes: 6 - Chairman Mochida, Messrs. Heck, Goya, Smith, and Wilkins and Ms. Scarr; Nays: 0; Absent: 3 - Mss. Kim and Helfrich and Mr. Konanui). (Mss. Helfrich and Kim joined the meeting at 10:07 a.m. and 10:08 a.m., respectively.) ACTION TO MOVE AGENDA ITEM UP There being no objections, the following items were taken up early. MISCELLANEOUS: Q. WRITE -OFF UNCOLLECTIBLE ACCOUNT - KA OHANA O KALAE: The Board considered the Department's request for approval to write off $45,667.96 for the above - referenced account. The service is located on Hawaiian Homes land makai of the .5- million gallon reservoir in South Point. There is a residence on the property and an office used as an information center for tourists. A history of the account was provided to the Board. MOTION: Mr. Goya moved that the Board approve the write -off of the Ka Ohana O Kalae account's delinquent balance of $45,667.96; seconded by Mr. Smith. Discussion ensued regarding the history of the account. It was deemed to have occurred during the dispute over water issues from some residents on Hawaiian Home Lands. Page 2 of 22 8 -23 -05 Minutes In response to Ms. Scarr's question if there were any recourse that could be taken to collect something, Ms. Self explained that her office had reviewed this case, and all avenues have been exhausted. In response to Mr. Wilkins' concern if this write -off may be setting a precedent, Ms. Self replied that she has been working with the Department to start beefing up its collection efforts. One item discussed was requiring more information on application forms, such as a street address and not just a post office box, for example. Chairman Mochida suggested that nonpayment issues be handled more stringently before coming to this point. The Deputy Manager mentioned the Department's recent hiring of a Collections Clerk, Mr. David Mellom, and introduced him to the Board. He has been working diligently on collections. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. N. REVIEW OF MONTHLY FINANCIAL STATEMENTS: Mr. Goya appreciated the listing of vacant, funded positions, which Mr. Sumada had added, at the request of the Board. It is helpful to the Board in understanding that although the Department has a full employment budget, there are a number of vacancies; and it shows that in 2005, the Department actively filled many of the positions that were vacant. Out of the 25 positions, 12 were filled already; one is a temporary hire; and there are 12 vacancies. NORTH KONA: A. JOB NO. 2001 -790, CONSTRUCTION OF KONA COASTVIEW/WONDER VIEW SUBDIVISION WATER SYSTEM IMPROVEMENTS: Attached to the Agenda was Change Order No. 2 in the amount of $331,012.00, dated August 11, 2005, requesting for an extension of contract time by the contractor, Isemoto Contracting Co., Ltd. The additional calendar days (92) are caused by a change order to overexcavate and place additional structural backfill for the lava tubes encountered at Reservoir Sites No. 1 and No. 2, in addition to the collapse and backfill of a lava tube in Ahikawa Street. The additional funding is covered under the contract contingency, and the remaining balance after Change Order No. 2 is $137,205.00. This is the first time extension request. Staff has reviewed the request and finds that the 92 calendar days are justifiable. The Deputy Manager recommended that the Board grant Isemoto Contracting Co., Ltd., this extension of contract time for JOB NO. 2001 -790, CONSTRUCTION OF KONA COASTVIEW/WONDER VIEW SUBDIVISION WATER SYSTEM IMPROVEMENTS, from March 29, 2006, to June 29, 2006. MOTION: Mr. Heck moved for approval of the recommendation; seconded by Ms. Helfrich. Page 3 of 22 8 -23 -05 Minutes Mr. Ahuna made a correction to the amount on the Change Order. It is $331,494.00. It was also noted that the Board action today was on a time extension and not a dollar amount. The contingency is built into the contract. In response to Ms. Scarr's question if there needs to be something placed in the newspaper about the delays, Mr. Ahuna replied that the updates to the project are posted on the Department's web site. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. B. JOB NO. 2003 -02, REPAIR AND MAINTENANCE OF KAHALU`U SHAFT HIL- A- VATOR: The contractor, Kone, Inc., is presently involved in the repair of the control panels at the Kahalu`u Shaft Hil -A- Vator. They sent the modules that need to be repaired to the factory for refurbishing. It is unfeasible to hire another contractor to perform the maintenance of the Hil- A -Vator at this time. Staff is recommending that the present contractor, Kone, Inc., be granted a 3 -month contract time extension to September 30, 2005, to complete the repairs on the control panels and to continue maintenance on the Hil -A- Vator. The cost for the extended maintenance will be at the present unit price of $1,700.00 /month. The funding for this extension will be from the Operations Division's Contractual Services budget. The Deputy Manager recommended that the Board approve a contract time extension of 92 calendar days at the present unit cost of $1,700.00 /month to Kone, Inc., from July 1, 2005, to September 30, 2005, for JOB NO. 2003 -02, REPAIR AND MAINTENANCE OF KAHALU`U SHAFT HIL- A- VATOR. MOTION: Mr. Goya moved for approval of the recommendation; seconded by Ms. Kim. Mr. Smith asked for clarification if the Department is asking for a total of $5,100.00 extra (the total of three months at the monthly rate shown in the recommendation. Mr. Ikeda replied that is correct. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. C. JOB NO. 2001 -785, CONSTRUCTION OF THE WAIAHA PRODUCTION WELL AND 2.0 -MG RESERVOIR: The Board considered a request from the contractor, Isemoto Contracting Company, Ltd., for a 52- calendar day extension of contract time to compensate for the additional work necessary to verify the conditions inside the well casing. Video logging and re- verification of proper clearances between the well pump and the inside walls of the casing are necessary to ensure proper Page 4 of 22 8 -23 -05 Minutes conditions for the pump installation. This second time extension request was evaluated by staff and found to be justified. The Deputy Manager recommended that the Board grant Isemoto Contracting Company, Ltd., a 52- calendar day extension for JOB NO. 2001 -785, CONSTRUCTION OF THE WAIAHA PRODUCTION WELL AND 2.0 -MG RESERVOIR, from September 11, 2005, to November 2, 2005. MOTION: Ms. Kim moved for approval of the recommendation; seconded by Mr. Goya. Mr. Smith did not see a cost associated with this extra work and asked if the contractor is not asking for additional funds. Mr. Ahuna replied that they are only asking for additional time right now because they do not know what the remedy is until the conditions are verified. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. KAU: A. JOB NO. 95 -634, CONSTRUCTION OF THE PAHALA DEEP WELL #2 EXPLORATORY WELL DRILLING: Due to unforeseen problems, completion of this project will require additional time and money. During drilling operations, water was found to be at an approximate depth of 784' below ground (ground elev. 1,113'). However, prior to commencing the pump test, the water level had dropped. The open hole was partially backfilled and the water level rose. However, when an attempt to pump was made, the well offered no yield (water did not make it to the surface). Based on discussion with the consultant and driller, the plan is to perforate the installed casing using a perforator. The contractor, Wai`ele Drilling & Development, has already experienced delays as well as additional work estimated at $23,000.00. Additional work to perform the perforating is estimated at $26,000.00 for a total of $49,000.00. Contingency for this project is $32,258.00. Therefore, it is requested that the total contingency amount be increased by $20,000.00 to $52,258.00. Contract completion date is August 14, 2005. The Deputy Manager recommended that the Board approve an increase in the contingency amount of $20,000.00 for Wai`ele Drilling & Development for JOB NO. 95 -634, PAHALA DEEP WELL #2 EXPLORATORY WELL DRILLING, to allow the additional work as well as a time extension of 60 calendar days to account for shipping of the perforator and work time required for perforator as well as other work items that still need to be done per contract such as pump testing, plumbness and alignment, and demobilization. This would extend the contract completion date to October 13, 2005. MOTION: Mr. Goya moved for approval of the recommendation; seconded by Ms. Kim. Upon Ms. Scarr's request for more information, Mr. Steve Bowles, of Waimea Water Services, explained that this well is very unusual. There was a well drilled by the County a short distance Page 5 of 22 8 -23 -05 Minutes from this site and may have been originally drilled by the State. It has been a fine producing well and running for years. An attempt was made when a second well was to be drilled for this Department, but it failed because of the construction ability of the contractor. This third attempt by Wai`ele Drilling & Development to drill a new hole 30 to 40 feet away from the first one found the water level where it was supposed to be. The casing was set; however, when the hole was deepened, as planned, the water level fell away. The conditions were not known until after a pump was set in the well because it was a slow falling away. While the pump was being set in the well, the water level was dropping. When the pump was turned on, no water came out. They pulled the pump out and placed a video camera down the hole and found the water level to be below where the pump was. As a corrective action, they brought the bottom of the well back up to recover the water level and got almost to where it was originally. After turning the pump back on, it completely dewatered the well, and they did not get any to the surface. It was then that they realized there is something geologically going on that they have never seen before. All of the rock appears to be either a fault or a cliff where all the rock within it has been totally cemented in place naturally. There is no water moving through the rocks. It is seeping, but not rapidly moving. It is a condition that he has never seen in all his years of working. The only solution they have been able to figure out is to go back in with a special tool, which they have had made on the mainland, and are bringing in to perforate the steel casing and get the water to come in from a higher level. They believe it will work, but there is no guarantee. The only other answer is to drill the well deep and go for a much lower water level, and that has not been something they have wanted to do. The Board asked some questions about how this special tool will perforate the steel casing, and also about the depth of the well. Mr. Bowles explained that because the nearby well is producing from a higher elevation, that is why they are going back up to try and get through to that higher elevation and attempt to bring that water in. All other attempts have been exhausted, and this is the way they feel they can do it. It has caused a significant delay in construction and will add cost to the well. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. (Mr. Bowles left the meeting at 10:40 a.m.) 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. CANCELLATION AND SURRENDER OF GRANT OF EASEMENT PUAKO WATER SYSTEM (Old system) Grantor: Mauna Kea Development Corp., et al. Grantee: State of Hawaii, Department of Land and Natural Resources TMK: (3) 6 -2- 013:002, 004, 005, 007, 013, 014, 017 & 026 Page 6 of 22 8 -23 -05 Minutes 2. GRANT OF EASEMENT KIKIAO STREET 6" WATERLINE Subdivision Application No. 2000 -153 Grantor: Vacationland Hawaii Community Association E.W.O.: 2005 -041 TMK: (3) 1 -4- 072:035 Lots: 1 Existing plus 6 Additional Zoning: A -la Facilities Charge: $34,190.00 Paid: June 21, 2004 Final Inspection Date: February 16, 2005 BILL OF SALE - KIKIAO STREET 6" WATERLINE Seller: Ms. Benjamas Seungsiri Water System Cost: $56,000.00 GRANT OF EASEMENT AND BILL OF SALE HUA `AINA SUBDIVISION Subdivision Application No. 2004 -107 Grantor: Charles P. & Gina Y. Whitney and Yu -Shang Wiebers E.W.O.: 2005 -081 TMK: (3) 7 -9- 004:032 Lots: 5 plus 1 roadway lot Zoning: A -la Facilities Charge: $23,190.00 Paid: August 12, 2005 Water System Cost: $74,715.00 Final Inspection Date: August 9, 2005 4. GRANT OF EASEMENT AND BILL OF SALE KONA HILLS SUBDIVISION — UNITS I & II Subdivision Application No. 73 -106 & 90 -134 Grantor: The Kona Hills Estates Community Association E.W.O.: Unit I — #80 -10 TMK: (3) 7 -3- 050:037 (Unit I) and 7 -3- 055:037 (Unit 11) Lots: Unit I - 36 and Unit II - 35 Zoning: A -la Water commitment: Unit I - to be provided Paid: December 17, 1974 Facilities charge: Unit 11 - $64,800.00 Paid: December 20, 1990 Water System Cost: To be provided Final Inspection Date: Unit I — July 14, 1981, and Unit 11 — January 9, 1997 IRRIGATION AGREEMENT - Kona Hills Subdivision Master Landscape Water Meter INDEMNIFICATION AGREEMENT - Kona Hills Subdivision Locked gate at entrance The Deputy 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. Helfrich moved for approval of the recommendation; seconded by Mr. Goya. Mr. Ahuna noted some changes to Item #4, Kona Hills Subdivision. Instead of "Water commitment," it should be "Storage Fee" and is $5,400.00. Under "Water System Cost," the cost for Unit I is $159,643.44, and Unit II is $135,000.00. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. Page 7 of 22 8 -23 -05 Minutes B. RESOLUTION NO. 05 -02, DRINKING WATER STATE REVOLVING FUND: Attached to the Agenda was Resolution No. 05 -02, amending Resolution No. 2001 -02 to approve an increase in the receipt and expenditure of monies for Kaieie Mauka Exploratory Well of which we have submitted a request for a loan under the Drinking Water State Revolving Fund. As part of the requirements, a Resolution is required by the Water Board. The documents have been prepared by Corporation Counsel's office. The Deputy Manager recommended that the Water Board adopt Resolution No. 05 -02. ACTION: Mr. Heck moved for approval of the recommendation; seconded by Mr. Goya and carried unanimously by roll call vote (Ayes: 8 - Mss. Helfrich, Kim, and Scarr, Messrs. Goya, Heck, Smith, Konanui, and Chairman Mochida; Nays: 0; Absent: 1 - Mr. Konanui.) RECESS: The Board took a break from 10:41 a.m. to 10:54 a.m. to sign documents. Before recess, Ms. Helfrich indicated that she had to leave the meeting due to a personal matter. C. SUPPLEMENTAL AGREEMENT NO. I MODIFYING AN AGREEMENT WITH THE WATER BOARD, COUNTY OF HAWAII, FOR STATE REVOLVING FUND LOAN - KAIEIE MAUKA EXPLORATORY WELL: Attached to the Agenda was a Supplemental Agreement addressing the actual contract amount from the Kaieie Mauka Exploratory Well (Job No. 98 -711). The Deputy Manager recommended that the Board approve the Agreement and that either the Chairman or the Vice - Chairman be authorized to sign the document. ACTION: Mr. Goya moved for approval of the recommendation; seconded by Mr. Wilkins and carried unanimously by voice vote. D. MEMORANDUM OF UNDERSTANDING WITH STATE OF HAWAII RESOLUTION NO. 05 -03: Attached to the Agenda was Resolution No. 05 -03 authorizing the Manager to enter into a memorandum of understanding with the State of Hawaii, Department of Finance, to coordinate the application to the U.S. Department of Health and Human Services' Center for Medicare & Medicaid Services (CMS) to receive the Medicare Part D Retiree Drug Subsidies (RDS). As part of the requirements, a Resolution is required by the Water Board. The documents have been prepared by our Corporation Counsel's office. The Deputy Manager recommended that the Water Board adopt Resolution No. 05 -03. MOTION: Mr. Smith moved for approval of the recommendation; seconded by Mr. Wilkins. In response to Ms. Scarr's request for more information, Mr. Tsunoda explained that as part of the Federal Medicare program, this Part D offers enhanced prescription drug benefits to the retirees and elderly. The Federal government anticipates spending billions of dollars to administer this new plan. The State of Hawaii, County of Hawaii, and the DWS pay for 100% of its retirees Page 8 of 22 8 -23 -05 Minutes medical and prescription plan costs. The Federal government is encouraging plan sponsors, like the DWS, to continue providing these coverages to reduce their costs. As part of the incentive, they are offering plan sponsors an annual subsidy of 28% of incurred allowable drug costs. What this Department needs to do to receive this annual subsidy is to apply with the Federal government by next month. The State of Hawaii offered its assistance in allowing this Department to join with them in the application for these annual subsidies. A Resolution is required to allow this. In response to the Deputy Manager's question if Mr. Tsunoda had any idea what the subsidy might amount to, he replied that it is approximately $20,000.00 on an annual basis. There will be some administrative costs or fees charged to the Department by the Hawaii Employee Union Benefit Trust Fund because they collect enrollment information on employees /retirees' medical prescription drug plans. This Department will rely on them to provide a lot of information to be submitted, along with the application and annual reporting requirements to receive the subsidies. In response to Ms. Kim's request for clarification on the recipient of the subsidies, Mr. Tsunoda explained that because this Department pays 100% of the premiums and is the plan sponsor, the subsidies will come directly to this Department. The benefit is that the Department will continue to offer the retirees this plan. ACTION: A roll call vote was taken on the Motion. Motion was carried unanimously by Ayes: 7 - Mss. Kim, and Scarr, Messrs. Goya, Heck, Smith, Konanui, and Chairman Mochida; Nays: 0; Absent: 2 - Mr. Konanui and Ms. Helfrich. E. SUPPLEMENTAL LOAN AGREEMENT NO. 1 MODIFYING AN AGREEMENT WITH THE WATER BOARD, COUNTY OF HAWAII, FOR STATE REVOLVING FUND LOAN - MAKAPALA WELL: Attached to the Agenda was a Supplemental Loan Agreement that addresses the actual contract amount from the recently awarded Makapala Production Well and Supporting Facilities project (Job No. 2002 -805). The previous agreement used an estimate. The Deputy Manager recommended that the Board approve the Agreement and that either the Chairman or the Vice - Chairman be authorized to sign the document. ACTION: Ms. Scarr moved for approval of the recommendation; seconded by Mr. Heck and carried unanimously by voice vote. F. ENGINEERING DIVISION, ELECTRICAL ENGINEERING BRANCH: To date, the design /review of plans and the inspection for the installation of electrical components for both our projects and private developments has been relegated to our civil /mechanical engineers and waterworks inspectors in both our Engineering and Operations divisions. Inasmuch as their educational background and experience do not provide for this expertise, they have relied on assistance from the electrical mechanical plant operators within the Operations Division. More critically, at times, the electricians and mechanics have been requested to actually work on the electrical design with consultants for private developers. Page 9 of 22 8 -23 -05 Minutes Further, with the advent of the Department becoming Supervisory Control and Data Acquisition (SCADA) compliant, our engineers, inspectors, and electricians are also being asked to review plans and inspect construction for these components. These duties again require a special knowledge of electrical and electronic components. All this has created an untenable and uncomfortable responsibility for our civil /mechanical engineers, inspectors, as well as our Operations personnel. They are working beyond their duties as provided for in their job descriptions. Based on this, there is an immediate need to recruit an electrical engineer to fill this critical shortage of technical ability. In support of this, the draft "Staffing Recommendations" within the "Personnel Needs Assessment" done by R.W. Beck, Inc., proposed an electrical engineer. These recommendations, if realized, would allow the Department to effectively implement its Strategic and Business Plan and the 20 -year Water Master Plan. Therefore, it is proposed to create an Electrical Engineering series consisting of an Electrical Engineer I (SR -18), Electrical Engineer II (SR -20), Electrical Engineer III (SR -22) and Electrical Engineer IV (SR -24) within the Engineering Division. Although these positions will be under the direct supervision of the Engineering Division Head (see attached revised Table of Organization), they will provide any needed electrical assistance to the Operations Division also. Initially, if this is approved, the intent is to fill the Electrical Engineer IV position in Fiscal Year 2007. The Deputy Manager recommended that the Water Board approve the creation of an Electrical Engineering series within a new Electrical Engineering Branch of the Engineering Division as depicted in the corresponding Table of Organization. MOTION: Mr. Goya moved for approval of the recommendation; seconded by Mr. Wilkins. In response to Mr. Smith's question if all in the series need to be Professional Engineers, the Deputy Manager replied that only the Electrical Engineer IV need be. Mr. Heck mentioned that R. W. Beck, Inc., proposed an electrical engineer. This looks like it is four engineers - -one licensed and three not. The Deputy Manager stated that although R. W. Beck, Inc., recommended one electrical engineer, the Department's intent was to create a series so it could hire at the lower rating and promote them to higher positions as they are trained. Otherwise, it would be difficult to get additional personnel when they are really needed. Ms. Scarr asked if the Department hired an Electrical Engineer I or II only, if that person could be supervised by other people in the Department. The Deputy Manager replied that the intent is to actually hire the licensed engineer, Electrical Engineer IV, first to let them get to know the Department and later on, hire the lower positions. He added that the write -up states that it is not funded for this fiscal year and is intended to fund the Page 10 of 22 8 -23 -05 Minutes position for the next fiscal year (2006- 2007). If, for some reason, funds are found in this current fiscal year, the Department may want to hire in this fiscal year. The Board will be informed if that does happen. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. G. WATER DEVELOPMENT AGREEMENT — SEASCAPE DEVELOPMENT, LLC: Seascape Development, LLC (Seascape), is the fee simple owner of, and is desirous of developing, that certain parcel of real property situate at O`oma, District of North Kona, Island and County of Hawaii, State of Hawaii, commonly known as a portion of Lot 13 -A of the "Kalaoa -O`oma Homesteads," Tax Map Key Number (3) 7- 3- 010:portion of 003, and containing an area of approximately ten (10) acres (the "Land "). The DWS' existing system, including the Kalaoa Well outfitted with a 300 -gpm pump, transmission lines and related facilities are in the vicinity of the Land, but do not have the capacity to satisfy the requirements of the proposed development of the Land by Seascape. Seascape is desirous of entering into an Agreement with the Water Board to provide additional capacity to the existing water system so that it may develop the land pursuant to Ordinance 04 -106 and obtain final plan approval or final subdivision approval of Seascape's proposed development of the Land. In order to facilitate the development of the Land as proposed by Seascape, Seascape is willing, upon the terms and conditions set forth in this Agreement, to design, construct, replace, and otherwise create and establish additional capacity within DWS' existing water system which would provide water service to the Land, and to construct and install the transmission, storage and distribution facilities required in connection with such increased capacity. Upon the execution of this Agreement and submittal of the bonds described herein, including bonds for the completion of Wainani's Improvements, the DWS shall forward the appropriate letter to the Planning Department, necessary for Seascape to obtain Final Plan Approval or Final Subdivision Approval to proceed with the design and construction of the 108 -unit "Seascape Condominium Project" ( "Project ") on the Land, it being acknowledged and agreed by Seascape that further and final approval of any residential structures or water meters and water service for any structures or for irrigation shall not be issued until the 700 -gpm pump and motor with controls (throttled back to 500 gpm) is fully operational, and all of Wainani's Improvements have been constructed and accepted for dedication by the Water Board. The installation of the 700 -gpm water pump and motor with controls will provide only the allocation of Equivalent Units for the first 108 residential units and their appurtenant common elements for the Project on the Land, as well as 17 units for Phase V of the Lokahi Makai Project. The Deputy Manager recommended that the Water Board accept the terms and conditions of the Agreement and authorize either the Chairman or the Vice - Chairman to execute the Agreement subject to review and acceptance by the Office of the Corporation Counsel as to form and legality. MOTION: Mr. Smith moved for approval of the recommendation; seconded by Mr. Goya. Ms. Garson stated that Seascape's attorney called her just prior to this meeting and wanted a small change as follows: Page 7, Item No. 2, about the fourth line from the bottom of the paragraph, it Page 11 of 22 8 -23 -05 Minutes says "the installation of the 700 -gpm water pump." They want to add a comma there and say "or the 500 -gpm pump as provided in Paragraph 1(c) ". She added that basically, there was some reason why they could not operate the 700 -gpm pump and controls, and they were going to replace it with a 500. In response to Mr. Wilkins' question if the Kalaoa Well is the one, which is not operating at the moment, the Deputy Manager replied that was correct. Mr. Wilkins also asked what the timetable is to have it restored to service. The Deputy Manager replied that once this agreement is signed, it is the intent of Seascape to pursue the installation of the new pump as soon as possible. In response to Ms. Scarr's question as to why the Department did not just go ahead and repair that well, the Deputy Manager replied that as soon as the well went down, the Department's thought was whether or not it should upgrade the well to a higher gpm pump; and that kind of delayed it. There were some concerns about the current capacity of the well (200 -gpm). The pump test, in the exploratory stage, showed that it may be upgraded to a 500- or 700 -gpm pump. While this was being contemplated, Seascape was going on with their development and proposed to upgrade it with the idea that they could get some commitments for their project. If this does not go through, the Department will go ahead and fix the well. In response to Mr. Smith's question of who Wainani is, the Deputy Manager replied that the project initially started out as "Haseko" then changed hands and became Wainani, and further went to Seascape. With all these developers involved, there were certain water improvements that needed to be done. Ms. Scarr stated that this development is in an area that is in accord with the General Plan for urban development to move northward from Kailua -Kona toward the airport. That is not an objection. The objection of the community at quite a few meetings, and in front of County Council, etc., is that they have infrastructure problems in the Kailua -Kona area - -most notably, traffic; and to add a 400 -unit development at this time is not continent with serving the community. The first thing needed is to get Queen Kaahumanu Highway widened. At the last Department of Transportation meeting that she attended, the plan for that is probably not coming through until about 2010 or 2012 to widen the highway from Costco road all the way out to the airport; and that is where this development is. The community feels very strongly and turns out in hundreds to tell you not to approve this because the water is the thing that will keep them from going. The County Council turned it down once and later went ahead and approved it; but the understanding that it did not all have to be done "tomorrow." If this Department gives them water, it could be done tomorrow. She urged the Board to postpone this and not let it happen now. Mr. Wilkins described the traffic they encountered in the Hina Lani area on their way to the meeting here today. That type of traffic problem did not exist four or five years ago, and he did not know how bad it is going to get before they get relief. He felt the same way as Ms. Scarr about adding another 400 units to a highway, which is badly overcrowded twice a day now. He did not think the Board should support this kind of extension, especially since there has been difficulty getting water to the people who live there now because of shortages. Page 12 of 22 8 -23 -05 Minutes The Deputy Manager stated that Mr. Bill Brooks was here today, representing Seascape, if the Board had questions. He added that this agreement with Seascape includes an initial phase with 108 units, plus 17 units for affordable housing, which the Mayor has publicly supported. What happens after the 125 units -- whether or not Seascape still needs to go to County Council for approval, he was not sure but asked if Mr. Brooks could explain that. Mr. Brooks stated that the project is at the bottom of Palisades to the south side. There is a 50 -acre parcel, and 10 acres of that parcel have been rezoned to facilitate this first project of 108 affordable units. The reason they are getting so much support from the Mayor and the Planning Department, Public Works, etc., is that they were looking at this -- asking people about how to help relieve 1) affordable housing crisis, and 2) help address the traffic issue. One of the things they were told was that one of the problems is a significant number of people who are working in the South Kohala and North Kona resort district are coming from South Kona because they cannot afford to live in the Kailua -Kona or South Kohala resort areas. Their thought, when analyzing this project, was that those people may be wanting to get closer to their source of work - -the idea being to create a makai exit from that project that goes down and connects with what was once called "mid -level road" that is going to run below Palisades, below that existing fire station. They will be building out a portion of that, and it has to be done as a condition of this project; in other words, that connector to the bottom of Kaiminani down below that project. Traffic studies show that people in that lower area are going down to Q ueen Kaahumanu Highway. That was the reasoning behind the choice of that location. The 108 units is a 100% affordable project. Ms. Scarr asked for clarification of what Board approval was being sought today - -if it was not asking for approval of all of the units, but just these affordable housing units. Mr. Brooks replied that this phase, this well improvement, will basically water that project (affordable housing), and it gives 17 units of water for their Phase V of Lokahi Makai, which was also the first project in 15 years in Kona where the developer actually chose to build out the affordable housing component - -10% requirement at that time. Therefore, they had a shortfall there of 17 units, so that will help resolve that issue as well. The 400 -plus units would, ideally, in the long run, be for the balance of that parcel. The reason they are getting support from the County is because of Mr. John Steven's commitment to do a minimum of 65% of anything that he does in there as affordable housing. Mr. Stevens is basically, Westpro Development, Westpro Holdings, Seascape, and creator of Aloha Aina Homes. This Aloha Aina Homes manufacturing plant was created for the purpose of getting the cost of housing down to help address the affordable housing project. He pointed out that one of the reasons they are pushing so assertively with this and have created the plant is for the purpose of this Seascape condominium project, which will be the affordable housing project there. Ms. Scarr stated that she did not object to the affordable housing component of this, but thought that part of this was to build a 1- million gallon reservoir, and thought that was more than what was needed for 108 units and 17 to finish up the Lokahi development. Her question was why build a reservoir of that size if that was the sole purpose. The Deputy Manager stated that as part of the upgrading of the Kalaoa Well, the existing reservoir does not have sufficient capacity to accommodate the upgraded well, so this Department is requiring Seascape to provide a 1- million gallon reservoir, and this Department is also paying for Page 13 of 22 8 -23 -05 Minutes some oversizing on the reservoir. They could have built a smaller one, but the Department would like to see a larger reservoir. In response to Ms. Scarr's question as to where that was shown in this Agreement being considered today, the Deputy Manager replied that this Agreement is basically just to take care of the well upgrade. The Department is still in discussions regarding the reservoir improvements and additional improvements along Mamalahoa Highway where additional pipeline upgrade needs to be done. The reason for coming to the Board with this first part is just for the well upgrade because timing -wise, it takes more time to do the well upgrades. Subsequent to this, the Department will come back to the Board for the improvements for the reservoir and pipeline. Mr. Heck asked for reassurance that this approval today is only for 125 units, and the remaining 300 or so units planned have not been approved by the County Council, and the 1- million gallon reservoir has not been approved - -that would potentially be for the other 300 units and whatever is left over for other households. Mr. Brooks replied that was correct. Mr. Smith commented that he was in favor of this recommendation for two reasons - -one is that it benefits our system and is not requiring money out of the Department's pocket, and the other is from the point of view of the developer, there are many unknowns when they develop projects- - mostly having to do with time and cost; and for us to impose zoning conditions at the water development stage is inappropriate. If a developer has gone through zoning and one of the conditions is to work with the Department of Water Supply to meet their water system regulations, the Board's decision is to either approve the water agreement or not approve it and not get into whether other County and State agencies are appropriately handling their impact fees and other things imposed upon developers. Ms. Garson clarified earlier mention of compensation. There is a credit that will be given to them against the facilities charge so it does come back in the form of partial credit. Ms. Scarr noted on Page 5, Item K, it says "Seascape's intent to design," so that is no commitment at all. Ms. Garson stated that there is no agreement as to that second part. What is being dealt with right now, in this Agreement, is basically the 125 units and the pump. This is saying that in order for them to get further commitments, they would have to come up with another agreement. Ms. Scarr asked if that meant that for supplying a bigger pump for the existing well, they are going to get 125 water units. Ms. Garson replied that was correct, for this Agreement. Mr. Brooks clarified that they are not getting 125 water units. They are getting the privilege of paying more than they would normally pay for a facility charge (FC) in addition to having put all the capital up front. They do not already have the water commitments but will be getting the ability to obtain water units at the tune of having to pay the FC, plus the capital output for creating Page 14 of 22 8 -23 -05 Minutes the improvements. Combine those, even with the credits, the cost of the water to them will actually be greater than the $5,500.00 in FC that one normally pays. Mr. Wilkins asked about the Kalaoa pump, which was operated about 300 gpm. When increased to 700 gpm in previous tests, it drew the water level down in the perched water reservoir by a couple hundred feet. He asked what the sustainable value is where you pump as much as flows in and no matter how long you pump, the water level remains the same. He asked if the plan to increase the capacity of this pump to 700 gpm will cause a drawdown. If they continue to drawdown, they will reach a point where the bottom of the well goes dry. Mr. Brooks responded that their original tests were done at 1,000 gpm. They had Mr. Steve Bowles go in and analyze the situation and all the previous data. He reported back that he felt confident that the pump would sustain 700 gpm. In response to Mr. Wilkins comment about the interim future (2 to 3 years) pumping at 500 gpm, the Deputy Manager stated that it will be pumped at 500 at this time because the Department has a permit approval for a 500 -gpm pump. In order to do a 700 -gpm pump, it would require going through an environmental assessment to obtain that permit for a 700 -gpm pump. Mr. Wilkins stated that he felt a responsibility to his district that if the development of low cost housing is down at the bottom of the hill, it will not directly affect the Mamalahoa Highway and if the Department establishes a basis for trusting that there will be no drawdown before taking the next step to higher capacity, then he would withdraw any concerns he had at the beginning. The Deputy Manager stated that if for any reason sustainable yield cannot be maintained at 500 or 700, there are provisions to cut back to a lower rate. Ms. Scarr asked what the contingency is if it is found that it can only be pumped at 300 gpm and if it would mean there is not enough water there for these 125 units, or if there is enough water there. The Deputy Manager replied that the Department has good assurance that it can pump at 500 and can sustain the 125 units. Comments were made by both Ms. Scarr and Mr. Wilkins that a tax map key would have been very helpful in determining where this development is located. It was not clearly determined from the information that was provided. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. (Mr. Brooks left the meeting at 11:35 a.m.) H. AUTOMATIC METER READING PROGRAM: The Department has been investigating the radio -read technology for meter reading for several years. We have found it to be extremely beneficial for areas with meters that are hard to get to and areas with meters along high- traffic routes. Approximately 2,200 meters have been identified that fall into the categories above. The estimated cost to retrofit 2,200 services so they can be read via Page 15 of 22 8 -23 -05 Minutes radio waves, including two drive -by receivers and necessary training, is $750,000.00. These 2,200 services represent approximately 6% of our entire accounts. It is the Department's intent to eventually retrofit all of our meters to utilize the radio -read technology. Since this proposed expenditure is not listed on our C.I.P., Water Board approval is necessary. Proposed funding is from our Water Commitment Deposit Fund. The Deputy Manager recommended that the Water Board approve this proposed project to retrofit approximately 2,200 accounts so that the radio -read technology can be utilized, for an approximate project cost of $750,000.00. MOTION: Mr. Wilkins moved for approval of the recommendation; seconded by Mr. Heck. Mr. Wilkins asked what the estimated payback time would be- -money saved versus start-up cost (the Deputy Manager indicated that he would have to get that information at a later time). Ms. Scarr supported this item but thought it would also be good in the future to get into the high- density areas like Hilo and Kailua -Kona so that meter reading may be done quickly. There may be a worthwhile payback on that. The Board also asked about labor issues - -would any jobs be affected. The Deputy Manager explained that there are no lay -offs intended. This equipment makes their jobs more efficient. Mr. Smith mentioned that while attending the AWWA national conference, there was a lot of talk about products and the services provided. Service has a lot to do with the brand of equipment purchased. He asked that it be kept in mind, and he would not mind knowing what the outcome is with what the Department purchases. The Deputy Manager stated that another consideration in the purchase of the equipment is that it is compatible with the water meters in use already by the Department, in order to avoid changing what is already there. In response to Mr. Wilkins' question of whether the equipment could detect a faulty reply or a no reply, should the equipment become damaged, the Deputy Manager stated that the device will be located within the meter box; and he was sure the software would provide for such situations, if they occur. Mr. Goya applauded the Department in this effort to move forward with technology. ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote. USGS DRILL RIG PROGRAM, REIMBURSEMENT REQUEST FROM MAUI: Letter from Mr. George Y. Tengan, Director, Department of Water Supply, County of Maui, was reviewed. The initial request for reimbursement, dated May 23, 2005, was denied by this Department's letter dated June 6, 2005. Page 16 of 22 8 -23 -05 Minutes Chairman Mochida stated that he had discussed this with the Manager, and the Manager indicated that he would leave it up to the Board because he had already responded to the letter. The Chairman indicated that he agrees that the Department should not pay because it is the fault of the USGS drill rig breaking down and causing all these delays. Mr. Wilkins agreed. Mr. Heck mentioned that Maui had agreed to let the drill rig stay on this island in order to drill the well at HOVE. MOTION: Ms. Scarr moved that the Board deny the request by the Maui Department of Water Supply and reiterate statements made in the letter sent by Mr. Pavao to Mr. Tengan of June 6, 2005; seconded by Mr. Wilkins. Ms. Kim mentioned that she had spoken with Senator Russell Kokubun on this issue. He suggested that the Board send a letter to the Congressional Delegation as an inquiry and to express the Board's concern about the performance of USGS and how it has Statewide ramifications because it is a Statewide agreement that they have with three counties. Senator Kokubun felt that it may help, at least for the record. Chairman Mochida asked Counsel if she could prepare the letter from the Board to Mr. Tengan. Also, send copies to those shown on Mr. Tengan's letter. Ms. Self stated that the agreement is with the Maui, Hawaii, and Kauai water departments. The repair bills are supposed to be split. She did not know why they think they are entitled to the $30,000.00 back. In speaking with the Deputy Manager, she found out that they also had the rig on their island. Just because the rig broke down here - -the expenses to repair, according to the agreement, are supposed to be shared. The Deputy Manager stated that if the rig had broken down on Maui or Kauai, this Department would have paid the share too. Chairman Mochida stated that they had mentioned in their letter that they are no longer going to participate in the program, and this Department is not going to participate already because the depth of the test wells will be too shallow. ACTION: A vote was taken on the Motion to deny the request for reimbursement. Motion was carried unanimously by voice vote. On the matter of sending a letter to the Congressional Delegation, Ms. Kim made a motion as follows: MOTION: Ms. Kim moved that a letter be sent to the Congressional Delegation, with copies to the State Legislators and the State Water Commission, explaining the concern with the agreement with the USGS and their performance to date, might even reference the money issue but leaves that up to staff, and authorize the Chairman to sign the letter; seconded by Ms. Scarr. Page 17 of 22 8 -23 -05 Minutes Ms. Scarr stated that she would like the letter to include a request that for the program continued because we need this program; and for the program to be successful, they need to supply a new drill rig. The Deputy Manager stated that the letter to the Congressional Delegation would probably be for a request to continue the program, whether it be with a new drill rig that we can look at or USGS can provide, or something that continues the drilling that gives us information that we need. Ms. Kim offered her help on the wording. The Deputy Manager will work with Ms. Self in drafting the letter. ACTION: A vote was taken on the Motion to prepare a letter to the Congressional Delegation. Motion was carried unanimously by voice vote. REQUEST BY COMMISSION ON WATER RESOURCE MANAGEMENT FOR FUNDING ASSISTANCE: Letter of April 1, 2005, from Mr. Dean A. Nakano, Acting Deputy Director, State of Hawaii, Department of Land and Natural Resources, Commission on Water Resource Management, was attached to the Agenda. Request is for assistance in funding the collection of groundwater data for wells owned by DWS or on County property, in the amount of $13,204.00. This amount represents 55% of the total cost. The remaining 45% of the total cost is paid for by USGS. The data collected is valuable in making informed decisions regarding resource infrastructure and also benefits all the citizens of Hawaii by providing invaluable information of our island's aquifers. The Deputy Manager recommended that the Water Board approve the request by the Commission on Water Resource Management for funding assistance in the amount of $13,204.00 and that either the Chairman or the Vice - Chairman be authorized to execute a Memorandum of Agreement subject to review by our Corporation Council as to form and legality. ACTION: Mr. Goya moved for approval of the recommendation; seconded by Ms. Scarr and carried unanimously by voice vote. K. RIGHT -OF -ENTRY AGREEMENT - STANFORD CARR DEVELOPMENT, LLC: Stanford Carr Development, LLC, owner and developer of approximately 1,500 residential units within Tax Map Key 7 -3- 009:019, is required to constructed certain water system improvements, including a 1.0 -MG reservoir (1,200' OF elevation) and related transmission waterline. When constructed, these improvements will be dedicated to the Water Board for operation and maintenance by the Department. The Board had previously negotiated and procured a suitable 1.0 -acre site for this reservoir, specifically Tax Map Key 7 -4- 008:067, and an easement over a portion of Tax Map Key 7 -4- 008:046 for access purposes, such that this reservoir could be constructed by the developer. Page 18 of 22 8 -23 -05 Minutes As such, Stanford Carr, LLC, is desirous of obtaining a right -of -entry into this site for the limited purposes of clearing, grubbing, conducting soils investigations, and constructing a 1.0 -MG reservoir and related improvements. The Deputy Manager recommended that the Water Board accept this document subject to the approval of the Corporation Counsel and the either the Chairman or the Vice - Chairman be authorized to sign the document. MOTION: Mr. Wilkins moved for approval of the recommendation; seconded by Ms. Scarr. Mr. Smith stated that typically, the developer has to provide the zoned site; but in this instance, DWS had a site that is being provided. He asked if compensation has been adjusted. The Deputy Manager explained that this area is on Hina Lani Drive (Costco road). There was an Improvement District done to do a water system going up Hina Lani Drive, and part of that included several reservoirs- -one at the bottom, one at the 360' elevation, one at 900', and one at 1,200'. The requirement for this developer is to do the reservoir at elevation 1,200'. The Department has a consultant designing the 900' elevation reservoir so that the two reservoirs will close the gap along Hina Lani Drive. In response to Mr. Goya's question if a 2 -MG tank was considered, Mr. Ahuna stated that the service area did not warrant a tank of that size. Possibly one at the bottom may be appropriate, if anything. Ms. Scarr asked if they could be interchanged - -put a 2 -MG reservoir at the top. Mr. Ahuna replied that the reservoir is supposed to service the service area 300 feet below it. In that area, there is not that much demand right now or in the foreseeable future for a 2 -MG reservoir. Mr. Wilkins mentioned that the 1,500 units are part of that potential avalanche of 10,000 water commitments in District 7. Mr. Ahuna stated that not the entire 1,500 units will be serviced from this tank. There are two tanks they are talking about. Ms. Scarr added that this is all going to feed into the current roads in the area and will only add to the traffic horror they face. Mr. Ahuna clarified that these are approved already, and the reservoir and the transmission are a benefit to this Department. Ms. Scarr stated that they are not quite approved because if the Board does not approve this request today, they cannot have the water. Chairman Mochida directed the discussion back to the issue. The Council and other departments will handle the traffic problems - -not this Department. Page 19 of 22 8 -23 -05 Minutes Mr. Wilkins mentioned meeting with people with farms at the bottom of Kaiminani who depend on Kalaoa water, which was insufficient to allow them to irrigate. They had the problem of areas up on the high road where potential development was being turned down for lack of water from Kalaoa; and the near emergency when the Kalaoa submersible pump broke down a year ago. He described this 1,500 as an invasion. Ms. Scarr noted that the Department of Water Supply is an essential link in this chain of development. Chairman Mochida reiterated the Department's position - -that the reservoir and the transmission are a benefit to this Department. The Deputy Manager stated that if this developer was not going to construct the 1 -MG reservoir, this Department would be doing the project itself because the transmission system is needed to continue down Hina Lani Drive. Mr. Goya clarified his inquiry. He was looking at if Department could pay for an upgrade to a 2 -MG tank and whether it might be needed in the future. The Deputy Manager stated that as Mr. Ahuna mentioned earlier, based on the current and future demands, it does not warrant a 2 -MG reservoir. ACTION: A show of hands vote was taken on the Motion. Motion carried by Ayes: 5 - Ms. Kim, Messrs. Goya, Heck, Smith, and Chairman Mochida; Nays: 2 - Ms. Scarr and Mr. Wilkins; Absent: 2 - Ms. Helfrich and Mr. Konanui. L. REINFORCED CONCRETE RESERVOIR DESIGN: Chairman Mochida had asked for a brief on this subject at the last meeting. He mentioned that when he attended a conference, he learned of some costs being incurred in redoing their wire -wrap reservoirs. He asked if it was the same type of system that this Department is using or if there have been improvements where the Department will not run into this situation. Mr. Ahuna reviewed two types of construction. The purpose of wire wrapping is to put the concrete into compression rather than tension because concrete in tension will crack and causes leaking. One is pre -load, which was used in Honolulu in the late 50's /early 60's; and that type of construction used gunite, which is a dry mix - -in other words, a mixture of water and cement is shot onto the tank wall. The type of tank specified now (AWWA D10) uses shotcrete, where the mixture is mixed first and then sprayed onto the tank. At that time, on Oahu, it is thought they were using beach sand as a fine aggregate, so what that has is a low pH; and that can cause rusting. The type of tank used now (AWWA D10) uses only manufactured sand that does not have a low pH or acids. Previously, when tanks were done in the 50's and 60's, they put only 3/4" of the depth of the cover from the tank wall, whereas now, they spec 11/2" above the wrapping itself so they have a lot more cover. The other thing they used to do before was they either sprayed it or put it on by hand so there was no consistency as far as the depth of cover, so you could have anywhere from 3/4" thickness to varying thickness. Now they have a machine that goes around the tank that Page 20 of 22 8 -23 -05 Minutes has a gun on it, and the rate of the machine and the speed and rate of application are controlled by a computer so it is a consistent layer. The wrapping material used before was a wire that was extruded through a dye - -in other words, they stuck a thicker wire in ( 192 ") and they extruded that wire and at the same time, pulled or tensioned that wire to reduce the diameter to only .16. There was no consistent tension put on that wire. What that does is puts an additional stress on the wire itself whereas the type of wrapping material being used now consists of seven strands of woven galvanized wire so is a lot stronger and not suspect to rust. Also, the wrapping machine grips the wires so there is a constant tension on the cable. Basically, the problems they were having in Honolulu were caused by some of the construction methods they used before, whereas now, staff feels that the tanks being built now for this Department are a lot more durable and not subject to rusting. As a testament to this, in California, they have built about 750 of these tanks with the new method; and in the last 45 years, none of them have corroded or failed. The Department is really confident about this type of tank, and that is the reason it is included in specifications. M. MONTHLY PROGRESS REPORT: Mr. Smith asked about the negotiations with KIC. Deputy Manager replied it is close, but no formal agreement yet. N. REVIEW OF MONTHLY FINANCIAL STATEMENTS: Discussed earlier. O. MANAGER'S REPORT: 1) Kona Coastview/Wonderview status - no questions 2) USGS Drilling Program - the Deputy Manager reported that the driller is not there because he is out sick. The depth is at 1,000 feet, according to Mr. Tribble. In answer to some of the concerns, Mr. Tribble made contact with a mainland driller who is able to be here in about three weeks, if necessary. Mr. Tribble also had contacted some local drillers in the State on whether or not they are willing to continue the drilling; however, he has had no responses yet. Mr. Tribble understands our concerns and hopefully can bring in the driller from the mainland or get the local driller to continue the drilling at Ocean View. Mr. Heck asked if the driller from the mainland would be to augment or replace the driller who is there. The Deputy Manager replied it is probably to replace the driller. In response to Mr. Wilkins' question of whether this would be a DWS contract or a USGS contract, the Deputy Manager replied it is a USGS contract. 3) Kona Water Quality - no questions 4) Employee of the Quarter - Mr. Calvin Uemura, Customer Service Supervisor, was presented with the award for the second quarter of 2005. 5) Hawaii Water Works Association (HWWA) Conference, October 5 -7, 2005, Hilton Waikoloa Village - Ms. Kim commended staff for coming up with an excellent program, especially the Board session. She would have liked to attend, but her schedule conflicts. The Deputy Manager announced that part of the conference would be paid for through a grant from EPA through the Department of Health. Page 21 of 22 8 -23 -05 Minutes P. CHAIRMAN'S REPORT: Ms. Scarr's Survey - Chairman Mochida reported that Ms. Scarr had indicated to him that the survey was too much work for her since she was the only one involved in it and did not want to continue. She asked that it be held for now or if someone wanted to pick up on it. 2. Mr. Ahuna's Impending Retirement - Mr. Goya mentioned Mr. Ahuna's impending retirement from the Department. His concern is that Mr. Ahuna is a key person for the Department as far as moving forward in this critical time. He should be commended for his efforts. Mr. Ahuna indicated that he needs to do the necessary paperwork; and after that, they could begin the recruitment process. Q. WRITE -OFF UNCOLLECTIBLE ACCOUNT - KA OHANA O KALAE: Discussed earlier. ANNOUNCEMENTS: Next Meeting: The next meeting of the Water Board will be held on September 27, 2005, 10:00 a.m., in the Royal Kona Resort, Discovery Room, 75 -5852 Ali`i Drive, Kailua -Kona, Hawaii. Upon Mr. Smith's suggestion and the Board's concurrence, staff was asked to check into changing the November 22, 2005, meeting from Kona to Waimea, and to schedule an afternoon field trip to the Waimea reservoirs. Suggested meeting places: Tutu's House, Waimea Civic Center, and Waimea Community Center. STATEMENTS FROM THE PUBLIC - None. ADJOURNMENT ACTION: Mr. Goya moved for adjournment of the Meeting; seconded by Ms. Scarr and carried unanimously by voice vote. (Meeting adjourned at 12:15 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, 14t1 and Independence Avenue, SW, Washington DC 20250 -9410. Or call (202) 720 -5964 (voice and TDD) Page 22 of 22 8 -23 -05 Minutes