HomeMy WebLinkAbout2007-05-22 Water Board MinutesMINUTES
DEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAII
WATER BOARD MEETING
May 22, 2007
Hilo Operations Center
MEMBERS PRESENT: Mr. Thomas Goya, Chairman
Mr. Riley Smith, Vice - Chairman
Mr. Loren Heck
Ms. Paula Helfrich
Mr. Bernard Konanui
Mr. Dwayne Mukai
Mr. Milton D. Pavao, Manager, Department of Water Supply
(ex- officio member)
ABSENT: Ms. Millie Kim, Water Board Member
Mr. George Harai, Water Board Member
Mr. Bruce McClure, Director, Department of Public Works
(ex- officio member)
OTHERS PRESENT: Ms. Katherine Garson, Deputy Corporation Counsel
Mr. Daryn Arai, representing Mr. Christopher Yuen, Director,
Planning Department (ex- officio member)
Mr. Ralph Kanetoku, Partner, KPMG LLP
Mr. David Gaynes
Mr. Bruce Hirano (11:07 a.m.)
Department of Water Supply Staff
Mr. Quirino Antonio, Jr., Deputy Manager
Mr. Keith Okamoto, Engineering Division
Mr. Clyde Young, Operations Division
Mr. Richard Tsunoda, Waterworks Controller
Mr. Richard Sumada, Assistant Waterworks Controller
Ms. Bettina Arrigoni, DWS Kona Office
Ms. Dee Degele, Administration Division (11:07 a.m.)
CALL TO ORDER - Chairman Goya called the meeting to order at 10:10 a.m.
Page 1 of 19 5- 22- 07- Minutes.doc
STATEMENTS FROM THE PUBLIC
None.
APPROVAL OF MINUTES
ACTION: Mr. Smith moved for approval of the Minutes of the April 24, 2007, Water Board
Meeting; seconded by Mr. Heck and carried unanimously by voice vote.
ADDITION OF SUPPLEMENTAL AGENDA
ACTION: Mr. Smith moved to add the Supplemental Agenda to the Agenda; seconded by
Mr. Heck and carried unanimously by voice vote.
PRESENTATION OF AUDITED FINANCIAL STATEMENTS — JUNE 30,2006:
Copies of the Department's audited Financial Statements for the fiscal year ended June 30, 2006, were
distributed to Board Members last month. Mr. Ralph Kanetoku was present from KPMG, the
Department's independent auditors from Honolulu, to report on their management letter and answer
any questions. Mr. Kanetoku stated that there was one recommendation that the Department develop
a comprehensive capital asset ledger that accounts for all of the capital assets of the Department to
assist in its accountability over those assets and also to facilitate the calculation of depreciation
expenses for financial statement purposes. He understands that Management has taken some action in
response to that comment.
Mr. Sumada stated that the Board should have received a letter of April 9, 2007, from him addressing
the comments from the auditors.
Chairman Goya had a question regarding the public improvement bond of $25 million. It has really
impacted the financial statements when the auditors do their comparison. He asked Mr. Kanetoku to
explain more to the Board Members what they should be looking for regarding any increase in the
kinds of monies (bond funding versus funding internally).
Mr. Kanetoku commented on the issuance in 2006 for a $25 million bond as it relates to the
Department of Water Supply. He stated that there needs to be assurance that the repayment of the
debt service be accounted for and also in compliance with any types of debt covenants that go along
with the bond issuances.
Chairman Goya asked how thoroughly they looked at cash management.
Mr. Kanetoku replied that they look at the internal controls over cash receipts, cash disbursements,
taking a look at the processes of financial reporting as well as the revenue recognition at billings and
collections. As far as how much it is looked at, they do take a look at the controls over the inflows
and outflows of cash, the reconciliation process, how the billings are done as well as recorded the
recognition of those revenues, and look at the receivables, making sure that there is an adequate
allowance for doubtful receivables if collection is collectible.
Page 2 of 19 5- 22- 07- Minutes.doc
The Manager felt that the Chairman's question relates more to cash management efficiency; and if so,
it is beyond their scope of work. Maybe at some point of time, it would be a good idea to hire a
consultant to look at that area.
Chairman Goya mentioned some receivables, or accounts that have been carried for awhile, and some
assumption that they may have to be written off; and that will affect reserve on collectibles as well.
He wanted the Board to keep in mind that it is their fiduciary responsibility that it needs to take into
account the regular and routine basis in the monthly meetings.
(Mr. Kanetoku left the meeting at 10:15 a.m.)
SOUTH HILO:
A. JOB NO. 2006-893, CONSTRUCTION OF WAIAKEA OFFICE PLAZA
COVERED WALKWAY:
Bids for this project were opened on May 18, 2007, at 2:00 p.m.; and following are the bid results:
Bidder
Amount
Heartwood Pacific, LLC
$166,000.00
Site Engineering, Inc.
$169,514.00
Central Construction, Inc.
$182,162.00
Isemoto Contracting Co., Ltd.
$206,950.00
Complete Construction Services
$245,000.00
Project Scope: This project consists of the construction of a new covered structure over the
existing entrance walkway and a portion of the looped driveway and a new shed structure as the
designated employee smoking area in accordance with the plans and specifications, complete and
ready for operation.
Project Cost:
1) Low Bidder (Heartwood Pacific, LLC) $ 166,000.00
2) Construction Contingency ( -8 %) $ 14,000.00
Total Construction Cost: $ 180,000.00
Funding for this project will be from the Department's C.I.P. Budget. The engineering estimate
for this project is $125,000.00. The contractor will have 120 calendar days to complete this
project.
The Manager recommended that the Board award the contract for JOB NO. 2006 -893,
CONSTRUCTION OF WAIAKEA OFFICE PLAZA COVERED WALKWAY, to the lowest
responsible bidder, Heartwood Pacific, LLC, for their bid amount of $166,000.00 plus $14,000.00
in construction contingency for a total contract amount of $180,000.00, and that either the
Chairman or the Vice - Chairman be authorized to sign the contract, subject to review as to form
and legality of the contract by Corporation Counsel.
ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by
Mr. Smith and carried unanimously by voice vote.
Page 3 of 19 5- 22- 07- Minutes.doc
NORTH KONA:
A. MAINTENANCE BID NO. 2007-03, REPAIR AND MAINTENANCE OF KAHALU`U
SHAFT HIL- A- VATOR, KONA:
One bid was received and opened on May 9, 2007. KONE, Inc., bid $1,750.00 /month to perform
the repair and maintenance on the hil -a -vator for two years with a call-out cost of $238.71/hour.
1. Cost of contract for two years ($1,750.00 x 24 months) $42,000.00
2. Contingency 8,000.00
TOTAL $50,000.00
The last contract price was for $2,000.00 /month with a call-out cost of $250.00/hour.
The Manager recommended that the Board award the contract for MAINTENANCE BID
NO. 2007 -03, REPAIR AND MAINTENANCE OF KAHALU`U SHAFT HIL- A- VATOR,
KONA, to KONE, Inc., for their bid amount of $42,000.00, plus $8,000.00 in contingency, for a
total contract price of $50,000.00, and that either the Chairman or the Vice - Chairman be
authorized to sign the contract, subject to review as to form and legality of the contract by
Corporation Counsel. The contract period shall be from July 1, 2007, to June 30, 2009.
ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by
Mr. Smith and carried unanimously by voice vote.
B. KALOKO TANK #2 HYDROELECTRIC GENERATION PROJECT
(JOB NO. 2006-898):
This project involves the installation of a 40 kW hydroelectric generation unit at the Kaloko Tank
#2 location on Hina Lani Street in North Kona. The project consists of modifying the existing
piping configuration of the boosters to allow the insertion of a 40 kW hydroelectric generation
unit. The new system will parallel the existing system and allow operation of the system as it is
now. The hydro unit will be electrically inter -tied to Hawaii Electric Light Company, Inc.
(HELLO), service connection located on the control building. The electricity produced by the
hydro unit will be sold back to HELCO based on the wholesale rate established in the HELCO's
Schedule Q rate schedule.
The purpose of HELCO's Schedule Q contract is to allow DWS to sell the electricity produced by
the hydro -unit at Kaloko Tank #2 back to the utility at an agreed upon wholesale rate.
The Manager recommended that the Board approve the HELCO Schedule Q contract and that
either the Chairman or the Vice - Chairman be authorized to execute the agreement subject to
review and approval by Corporation Counsel.
MOTION: Mr. Smith moved for approval of the Manager's recommendation; seconded by
Mr. Heck.
Mr. Smith indicated that he had contacted the Manager; and he is going to have staff follow up on
some questions having to do with payback, cost of hydro, and reimbursement from HELCO for
power generated, so it can be discussed further when the Board gets that information. He is in
favor of this contract.
Page 4 of 19 5- 22- 07- Minutes.doc
Chairman Goya agreed with Mr. Smith. It would be nice to do a general write -up so that people
understand what the contract is about and the difference between using the energy internally
versus selling it directly to HELLO.
The Manager stated that Ms. Bettina Arrigoni, the Department's Energy Analyst, was here today.
If it is okay with Ms. Arrigoni, maybe she could have a workshop at the next Water Board
Meeting to let the Board know about the kinds of things she is working on and how it saves
money for the Department. (The Board indicated it would like a workshop.)
Ms. Garson commented on an indemnification provision that is in this contract where both parties
agree to indemnify each other should their negligence of action cause damage to the other
person's property or employees, etc. By passing this today, the Board is consenting to that
indemnification. There is an insurance provision in there that the Department is required to have,
and Mr. Sumada has indicated that there would be insurance for this contract.
Chairman Goya stated that he looks forward to Ms. Arrigoni's presentation somewhere down the
road. As a former employee of HELCO, he encouraged this type of program.
In response to Mr. Mukai's question if Mr. Smith's comments were critical to the approval of this
item today, Mr. Smith replied they were not. He had just asked to see what the payback period
would be.
ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote.
C. JOB NO. 2003-834 (REVISED), CONSTRUCTION OF THE KONA BASEYARD
FACILITY IMPROVEMENTS:
The Board considered a request from the contractor, Central Construction, Inc., for an extension
of contract time due to the building permit not being issued in a timely manner.
This is the contractor's first time extension request. Staff has evaluated this request and finds that
the 64- calendar day extension is justified.
The Manager recommended that the Board grant Central Construction, Inc., a 64- calendar day
extension for JOB NO. 2003 -834 (REVISED), CONSTRUCTION OF THE KONA BASEYARD
FACILITY IMPROVEMENTS, from May 11, 2007, to July 14, 2007.
MOTION: Ms. Helfrich moved for approval of the Manager's recommendation; seconded by
Mr. Smith.
Mr. Smith noted that he had emailed the Manager and asked if the hold -up with the building
permit had to do with the design consultant, but was informed that it had to do with the Building
Division's delays in processing the permit, not deficiencies in the plans and specifications.
ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote.
Page 5 of 19 5- 22- 07- Minutes.doc
KA `U:
A. JOB NO. 2000-758, CONSTRUCTION OF THE WAIOHINU WELL
DEVELOPMENT - PHASE 1:
Bids were opened on May 10, 2007, at 2:00 p.m.; and following are the bid results:
Bidder Total Bid
Water Resources International, Inc. $777,040.00
Beylik Drilling & Pump Service, Inc. $836,700.00
Project Scope:
This project consists of performing the drilling, casing, and pump testing the proposed 14 -inch
cased well at elevation 1620 feet in Waiohinu Homesteads, Ka`u.
Project Cost:
1) Low Bidder (Water Resources International, Inc.) $777,040.00
2) Construction Contingency (8 %) $ 62,160.00
Total Construction Cost: _ $839,200.00
Funding for this project will be from the Department of Water Supply Capital Improvement
Project (C.LP.) Budget. Engineers estimated cost - $1,000,000.00.
The contractor will have 240 calendar days to complete this project.
The Manager recommended that the Board award the contract for JOB NO. 2000 -758,
CONSTRUCTION OF THE WAIOHINU WELL DEVELOPMENT — PHASE 1, to the lowest
responsible bidder, Water Resources International, Inc., for their bid amount of $777,040.00 plus
$62,160.00 in construction contingency for a total contract amount of $839,200.00, subject to
review as to form and legality of the contract by Corporation Counsel.
ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by
Mr. Smith and carried unanimously by voice vote.
MISCELLANEOUS:
A. DEDICATION OF WATER SYSTEMS:
The Department has 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 AND BILL OF SALE
INDEMNIFICATION AGREEMENT
DEED (for 3 -Tank Sites)
BILL OF SALE (for 3 -Tank Sites)
Hokuli`a, Phase 1, Package 1
Page 6 of 19 5- 22- 07- Minutes.doc
Subdivision Application No. 98 -124
Grantor: 1250 Oceanside Partners
TMK: (3) 8- 1- 004:Portion 003
E.W.O.: 2001 -049
Lots: 284 Zoning: A -IA
Facilities Charge: $952,876.00 Date Paid: 9/17/99
Final Inspection Date: Recommend defer
Water System Cost: $3,721,569.00
2. GRANT OF EASEMENT AND BILL OF SALE
Grantor /Seller: John D. Heide and Janice B. Heide
TMK: (3) 7 -9- 005:060
E.W.O.: 2006 -029
Lots: 7 Zoning: A -IA
Facilities Charge: $32,100.00 Date Paid: 3/12/07
Final Inspection Date: 5/10/2007
Water System Cost: $316,171.00
3. GRANT OF EASEMENT AND BILL OF SALE
Lokahi Makai, Phase 5
Grantor /Seller: Sonny Ventures, LLC
TMK: (3) 7 -3- 061:051
E.W.O.: 2007 -031
Lots: 22, 1- Existing Zoning: RS -10
Facilities Charge: $121,000.00 Date Paid: 11/20/2006
CAF: $3,500.00
Final Inspection Date: 5/08/2007
Water System Cost: $134,683.00
Chairman Goya noted that there was a request from the Department to defer Item No. 1 relating to
Hokulia. He entertained a Motion to defer No. 1 and approve No. 2 (Grant of Easement and Bill
of Sale, Grantor /Seller: John and Janice Heide) and No. 3 (Grant of Easement and Bill of Sale,
Lokahi Makai, Phase 5, Grantor /Seller: Sonny Ventures, LLC).
MOTION: Mr. Heck so moved; seconded by Mr. Smith.
Mr. Heck asked why Item No. 1 was being recommended for deferral.
Ms. Garson stated that there were some revisions to the Department's standard documents for
Grant of Easement, Bill of Sale, and Deed that Hokulia requested. There is an issue with an
encumbrance. The final documents and whether or not the Board is going to accept it with an
encumbrance are at issue. She asked that it be deferred to the next meeting; and hopefully, those
issues will be resolved at that time.
ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote.
Page 7 of 19 5- 22- 07- Minutes.doc
B. VEHICLE BID NO. 2007-05, FURNISHING AND DELIVERING VEHICLES TO
THE DEPARTMENT OF WATER SUPPLY:
Bids were opened on May 9, 2007, at 2:00 p.m.; and following are the bid results:
The Manager recommended that the Board award VEHICLE BID NO. 2007-05, FURNISHING
AND DELIVERING VEHICLES TO THE DEPARTMENT OF WATER SUPPLY, to Clark
Automotive Group, Inc., dba Island Chevrolet, for Parts "A" and `B" at a cost of $43,300.00, and
to Orchid Isle Auto Center for Part "C" at a cost of $20,725.00 and that either the Chairman or the
Vice - Chairman be authorized to sign the contracts subject to approval of the contracts as to form
and legality by Corporation Counsel.
The total amount for the vehicles is $64,025.00.
MOTION: Mr. Smith moved for approval of the Manager's recommendation; seconded by
Ms. Helfrich.
Mr. Smith noted the descriptions in Parts A, B, and C were almost exactly the same; however, the
prices are different.
Mr. Young explained that the difference in price is due to one of the vehicles having a
requirement for bucket seats. The reason for this request was to accommodate the operator for
this vehicle, who has a medical issue. The other vehicle has a bench seat. Part C is a vehicle for a
supervisor. In that case, there is an extended cab. He noted that the bid documents indicate
"regular or extended cab." That is because Dodge only provides an extended cab on their
vehicles, and the Department did not want to exclude them from bidding.
ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote.
Page 8 of 19 5- 22- 07- Minutes.doc
Clark Automotive Group, Inc., dba Island
Chevrolet Buick. Cadillac Pontiac GMC
Orchid Isle Auto Center
Part "A"
1.
2007 or later 1/2-ton compact
pickup with lift gate, regular
or extended cab, 4WD
$21,470.54
$23,850.00
2.
Applicable Taxes and Fees
+894.46
Included
3.
Total deliver rice
$22,365.00
$23,850.00
4.
Deliver time (calendar days)
180
210
Part `B"
1.
2007 or later 1/2-ton compact
pickup with lift gate, regular
or extended cab, 4WD
$20,097.73
$23,700.00
2.
Applicable taxes and fees
+837.27
Included
3.
Total delivery price
$20,935.00
$23,700.00
4.
Delivery time (calendar days)
180
210
Part "C"
1.
2007 or later 1/2-ton compact
pickup with extended cab,
4WD
$20,779.33
$20,725.00
2.
Applicable taxes and fees
+865.67
Included
3.
Total deliver rice
$21,645.00
$20,725.00
4.
Delivery time (calendar days)
180
150
The Manager recommended that the Board award VEHICLE BID NO. 2007-05, FURNISHING
AND DELIVERING VEHICLES TO THE DEPARTMENT OF WATER SUPPLY, to Clark
Automotive Group, Inc., dba Island Chevrolet, for Parts "A" and `B" at a cost of $43,300.00, and
to Orchid Isle Auto Center for Part "C" at a cost of $20,725.00 and that either the Chairman or the
Vice - Chairman be authorized to sign the contracts subject to approval of the contracts as to form
and legality by Corporation Counsel.
The total amount for the vehicles is $64,025.00.
MOTION: Mr. Smith moved for approval of the Manager's recommendation; seconded by
Ms. Helfrich.
Mr. Smith noted the descriptions in Parts A, B, and C were almost exactly the same; however, the
prices are different.
Mr. Young explained that the difference in price is due to one of the vehicles having a
requirement for bucket seats. The reason for this request was to accommodate the operator for
this vehicle, who has a medical issue. The other vehicle has a bench seat. Part C is a vehicle for a
supervisor. In that case, there is an extended cab. He noted that the bid documents indicate
"regular or extended cab." That is because Dodge only provides an extended cab on their
vehicles, and the Department did not want to exclude them from bidding.
ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote.
Page 8 of 19 5- 22- 07- Minutes.doc
C. MATERIAL BID NO. 2007-02, FURNISH BASE COURSE, SAND, COLD MIX,
HOT MIX, PORTLAND CEMENT, AND NO. 3F ROCK TO THE DEPARTMENT
OF WATER SUPPLY:
Bids were opened on May 9, 2007, at 2:30 p.m.; and following are the bid results:
Page 9 of 19 5- 22- 07- Minutes.doc
Yamada &
Grace Pacific
Island
Sons, Inc.
Corporation
Cement
DISTRICT I - Hilo:
A.
3/4 -Inch Base Course (Cost per ton)
$18.25
No Bid
No Bid
B.
11/2 -Inch Base Course (Cost per ton)
$17.75
"
C.
No. 3F Rock (Cost per ton)
$20.30
"
D.
#4 Sand (Cost per ton)
$31.25
"
E
Mortar Sand - ASTM C144 (Cost per
No Bid
"
ton)
F
Portland Cement 94 lb. bags (Cost per
No Bid
$10.34
b
G
Cold - ASTM D4215 -87 (Cost per
$83.33
No Bid
H.
Blended Material (Cost per ton)
$36.45
"
L
Hot Mix
$73.00
"
DISTRICT II - Waimea:
A.
3/4 -Inch Base Course (Cost per ton)
No Bid
No Bid
No Bid
B.
11/2 -Inch Base Course (Cost per ton)
"
C.
No. 3F Rock (Cost per ton)
"
D.
#4 Sand (Cost per ton)
"
E.
Mortar Sand - ASTM C144 (Cost per
«
ton)
F
Portland Cement 94 lb. bags (Cost per
$14.00
bag)
G
Cold ASTM D4215 -87 (Cost per
$120.00
No Bid
DISTRICT III - Kona:
A.
3/4 -Inch Base Course (Cost per ton)
No Bid
No Bid
No Bid
B.
11/2 -Inch Base Course (Cost per ton)
"
C.
No. 3F Rock (Cost per ton)
"
D.
#4 Sand (Cost per ton)
"
E.
Mortar Sand - ASTM C144 (Cost per
«
ton)
F
Portland Cement 94 lb. bags (Cost per
$11.30
bag)
G
Cold D4215 -87 (Cost per
$114.00
No bid
H.
Hot Mix - County Mix IV (Cost per ton)
$104.00
"
Page 9 of 19 5- 22- 07- Minutes.doc
The Manager recommended that the Board award the contract for MATERIAL BID NO. 2007 -02,
FURNISH BASE COURSE, SAND, COLD MIX, HOT MIX, PORTLAND CEMENT, 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 contract(s), subject to review as to form and legality of the contract(s) by Corporation Counsel.
District I — Parts A, B, C, D, G, H, and I to Yamada & Sons, Inc.
Part F to Island Cement
District II — Part F to Island Cement
Part G to Grace Pacific Corporation
District III —Part F to Island Cement
Parts G and H to Grace Pacific Corporation
For the Parts where no bids were received, staff shall obtain quotations in the best interest of the
Department. The contract period shall be from July 1, 2007, to June 30, 2008.
MOTION: Mr. Smith moved for approval of the Manager's recommendation; seconded by
Mr. Heck.
Mr. Mukai asked why there were so many parts with no bids.
The Manager explained that more and more, the Department is seeing no bid on these types of
material bids. He was going to make the suggestion after the next Agenda item (Material Bid
No. 2007 -01) that the Department look into possibly ceasing these material bids and go with
getting three quotes from vendors. He is wondering if the material bids are an advantage to the
Department. His feeling is that vendors do not want to commit to one particular price for a whole
year. The advantage to having a contract is that you can just purchase straight from it rather than
calling three vendors and getting quotations. However, if three quotes were obtained, at any given
time, the Department would probably be getting better prices than it would with these contracts.
Ms. Garson mentioned that if the small purchases add up to more than $25,000.00 over the course
of a year, they do not fall within the small purchase criteria under Procurement Law. If it is found
that these bids are not advantageous, maybe the Department could apply for an exemption.
Ms. Helfrich asked if there was a possibility of piggybacking with the Department of Public
Works for the road work materials.
The Deputy Manager replied it may be possible. This Department purchases diesel fuel from the
Department of Public Works.
ACTION: A vote was taken on the Motion. Motion was carried unanimously by voice vote.
Page 10 of 19 5 -22-07 -Minutes. doe
D. MATERIAL BID NO. 2007-01, 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 May 17, 2007. The contract period for all Parts is one year, from July 1,
2007, to June 30, 2008. All Parts are to establish price agreements for materials on an
"As- Needed Basis."
The Manager recommended that the Board award the contracts to the following bidders for
MATERIAL BID NO. 2007 -01, FURNISHING AND DELIVERING WATER METERS,
BRASS GOODS, FIRE HYDRANTS, VALVES, CHLORINATORS, PUMPS, PIPES,
FITTINGS, SCADA, 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 contract(s), subject to review as to form and
legality of the contract(s) by Corporation Counsel. The contract period shall be from July 1, 2007,
to June 30, 2008.
SECTION
NO.
DESCRIPTION
BIDDER
AMOUNT
1
DUCTILE IRON PIPE
Ferguson Enterprises, Inc.
$196,631.70
2
DUCTILE IRON FITTINGS
Ferguson Enterprises, Inc.
$421,595.90
3
COPPER TUBING
NO BID
NO BID
4
COPPER FITTINGS
NO BID
NO BID
5
GALVANIZED PIPES T & C
Ferguson Enterprises, Inc.
$55,160.14
6
GALVANIZED FITTINGS
NO BID
NO BID
7
BRASS FITTINGS
NO BID
NO BID
8
5/8" WATER METERS
Ferguson Enterprises, Inc.
$58,122.00
9
1 " -2" WATER METERS
Badger Meter, Inc.
$13,872.50
10
METER BOXES AND COVERS
Ferguson Enterprises, Inc.
$63,269.70
11
COMPOUND WATER METERS
Ferguson Enterprises, Inc.
$14,041.25
12
TURBINE METERS & STRAINERS
Ferguson Enterprises, Inc.
$17,246.23
13
DETECTOR CHECK METERS
Ferguson Enterprises, Inc.
$5,623.50
14
FIRE SERVICE METERS
Ferguson Enterprises, Inc.
$27,502.80
15
FIRE HYDRANTS & EXTENSION KITS
A. P. Water Supply, Inc., dba
HIW- Hawaii
$49,891.00
16
AMERICAN DARLING FIRE HYDRANT
EXTENSION KIT
Ferguson Enterprises, Inc.
$4,203.25
17
KENNEDY SAFETOP FIRE HYDRANT
EXTENSION KIT
NO BID
NO BID
18
M & H FIRE HYDRANT EXTENSION
KIT
NO BID
NO BID
19
NUTS, BOLTS, AND THREADED
RODS
A. P. Water Supply, Inc., dba
HIW- Hawaii
$29,765.96
20
BALL VALVES
Ferguson Enterprises, Inc.
$88,350.00
21
BALL VALVE, PACK JOINT X METER
COUPLING
Ferguson Enterprises, Inc.
$18,903.40
22
CORPORATION AND CURB STOPS ~
BALL TYPE
Ferguson Enterprises, Inc.
$51,507.32
23
STRAIGHT METER COUPLING &
METER FLANGES
Ferguson Enterprises, Inc.
$16,426.30
24
LOK -PAK METER COUPLING
Ferguson Enterprises, Inc.
$4,152.96
25
PACK JOINT COUPLING
Ferguson Enterprises, Inc.
$18,486.10
26
TRANSITION COUPLINGS
NO BID
NO BID
Page 11 of 19 5 -22-07 -Minutes. doc
SECTION
DESCRIPTION
BIDDER
AMOUNT
NO.
27
FULL CIRCLE CLAMPS
NO BID
NO BID
28
HOSE BIBBS
NO BID
NO BID
29
INVERTED MARKING PAINT
NO BID
NO BID
GATE VALVES - 3" AND LARGER,
A. P. Water Supply, Inc., dba
$29,024.00
30
125# CLASS
HIW- Hawaii
GATE VALVES - 3" AND LARGER,
NO BID
NO BID
31
250# CLASS
32
GATE VALVES - 21/2" AND SMALLER
NO BID
NO BID
A. P. Water Supply, Inc., dba
$46,410.00
33
BUTTERFLY VALVES, 125# CLASS
HIW- Hawaii
A. P. Water Supply, Inc., dba
$63,820.00
34
BUTTERFLY VALVES, 250# CLASS
HIW- Hawaii
35
MECHANICAL SEALS
NO BID
NO BID
D & M Industrial Repair
$90,727.00
36
PUMP SEALS
Services Inc.
37
TABLET CHLORINATORS
NO BID
NO BID
38
CHLORINE RESIDUAL ANALYZER
TK Process Hawaii, LLC
$4,358.44
39
CHLORINATORS
NO BID
NO BID
40
MAG METERS
TK Process Hawaii, LLC
$193,191.24
Hawaii Engineering Services,
$112,265.00
41
DIRECT CURRENT MAG METERS
Inc.
42
SURGE ARRESTORS
TK Process Hawaii, LLC
$21,547.48
43
MOTORS
NO BID
NO BID
BOOSTER AND DEEPWELL PUMP
D & M Industrial Repair
$371,153.00
44
CONTROL BALL VALVES
Services Inc.
A. P. Water Supply, Inc., dba
$498,995.00
45
AUTOMATIC CONTROL VALVES
HIW- Hawaii
A. P. Water Supply, Inc., dba
$420,995.00
46
ANTI - CAVITATION VALVE
HIW- Hawaii
47
POWER MONITORING EQUIPMENT
Total Control Solutions, Inc.
$41,870.00
Dynatek, Inc. /DYN -NDC
$12,381.00
48
SCADA SYSTEM
Automation LLC
SUBMERSIBLE MOTORS (NEW
Beylik Drilling & Pump
$3,888,755.00
49
ONLY
Services
SUBMERSIBLE MOTORS
Beylik Drilling & Pump
$6,515,205.00
50
REFURBISHED AND REWIND ONLY
Services
CENTRILIFT VARIABLE SPEED
Beylik Drilling & Pump
$31,416.00
51
DRIVE PARTS
Services
52
VARIABLE FREQUENCY DRIVES
TK Process Hawaii, LLC
$6,422,235.30
LOW HORSEPOWER VFD (1/4 HP -
TK Process Hawaii, LLC
$14,696.50
53
15 HP
54
LEAK NOISE DATA LOGGERS
TK Process Hawaii, LLC
$11,601.95
SOLID STATE REDUCED VOLTAGE
TK Process Hawaii, LLC
$303,300.18
55
SOFT STARTER - LOW VOLTAGE
SOLID STATE REDUCED VOLTAGE
SOFT STARTER - MEDIUM
TK Process Hawaii, LLC
$75,540.19
56
VOLTAGE
COMPACT SOLID STATE REDUCED
TK Process Hawaii, LLC
$60,073.19
57
VOLTAGE SOFT STARTER
58
HATCH FRAMES AND COVERS
BK, Inc.
$5,250.00
HYDROELECTRIC TURBINE
Soar Technologies, Inc.
$734,488.92
59
GENERATOR
For the Parts where no bids were received, staff shall obtain quotations in the best interest of the
Department.
ACTION: Mr. Heck moved for approval of the Manager's recommendation; seconded by
Mr. Smith and carried unanimously by voice vote.
Page 12 of 19 5 -22-07 -Minutes. doc
E. JOB NO. 2006-900, EMERGENCY BACKUP POWER FOR CRITICAL SITES:
Bids for this project were opened on May 17, 2007, at 1:30 p.m.; and following are the bid results:
Bidder
Total Sum Bid
Hawthorne Pacific Group
$1,784,410.43
Power Generation Services, Inc
Disqualified
Project Scope: This project consists of the purchase of emergency back up generation for critical
well sites that includes 7 generators varying in size from 1000 kW to 750 kW. The phase of the
project includes the purchase of equipment only. Costs include delivery, taxes, and fees. The bid
amount is considered reasonable for the scope of work.
Funding of up to $2 million for this project will be from the County of Hawaii Civil Defense
Agency. The contractor will have 270 calendar days to complete this project.
DWS will be recommending that the County award the contract for JOB NO. 2006 -900,
EMERGENCY BACKUP POWER FOR CRITICAL SITES, to the lowest responsible bidder,
Hawthorne Pacific Group, for their bid amount of $1,784,410.43.
The Manager added that there is no recommendation in the Agenda because the money is not
with the Water Board, but rather with the County of Hawaii. This is just for information saying
that the Department will be recommending that the County award the bid. Further, the
recommendation to the County will be to accept the seven generators that were offered in the bid
and possibly do a change order to acquire an additional generator to bring it up to the $2 million,
since there is remaining money.
In response to Chairman Goya's question of whether further action is needed from the Board, the
Manager replied none is necessary. It is for the Board's information only.
The Deputy Manager added that there might be further action when the Department does the
installations. If the Board would recall, the Department allotted $500,000.00 for the installation
of these generators, which still needs to be put out to bids.
In response to a question on whether or not these are fixed sites, Ms. Arrigoni replied that there is
one fixed site, and the rest are portable; but the infrastructure has to be set up at those other sites.
The Manager added that the fixed site is at the Halekii Well, which serves Kona Community
Hospital.
In response to Chairman Goya's question of whether the Department is keeping the Kona
Community Hospital apprised of what is happening, the Manager replied that first, the
Department needed assurance that the County is going to award it.
Mr. Smith stated that it might be a good idea to have Ms. Arrigoni report on the progress of this
project, along with her report on the Kaloko Tank #2 Hydroelectric Generation Project, at the
Page 13 of 19 5 -22-07 -Minutes. doe
June 19, 2007, Water Board Meeting. He also asked why Power Generation Services, Inc.'s, bid
was disqualified.
The Manager stated that it was because they did not conform to the bid process; therefore, their
bid was not accepted.
Mr. Smith asked if the generators were coming with stock enclosures that generators usually
come with. (Ms. Arrigoni replied in the affirmative.) Mr. Smith commented that at his
workplace in Waimea, they have a couple of facilities that have generators; and the more you
protect them, the longer they last. Even if you have the stock metal cabinet, it does not control
the noise as well and you get higher corrosion with that cabinet. Depending on the environment,
if you are near the ocean, or in windy areas, you would probably want to have supplemental
coverage and also noise attenuation because the Halekii site is close to houses.
Ms. Arrigoni replied that she has not seen the generators first hand; but the electrician, Wallace
Oki, is very aware of the location and talked about the sound issue, etc.
In response to Mr. Smith's question of whether these were to be used in the type of situation
where power is out at a site, they are taken there and plugged in like a day tank, Ms. Arrigoni
replied in the affirmative.
No further questions.
F. MONTHLY PROGRESS REPORT:
No questions. Chairman Goya thanked Mr. Okamoto for having the report updated to reflect
current projects.
G. DEPARTMENT OF WATER SUPPLY PROPOSED OPERATING AND
CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2007 -2008:
Based on information from Ms. Garson and procedures under the County Charter, the Water
Board held a public hearing on the proposed budgets this morning. The next opportunity for
review of the budgets will be at the regular Water Board meeting on June 19, 2007, at which time
the public will be afforded an opportunity to provide input.
Chairman Goya was glad the Department's budget is a little more detailed and is closely aligned
to when people are actually filling positions. He thanked the Department for taking the Board's
input into consideration; and hopefully, the C.I.P. budget can be addressed in 2008. He asked how
projects are selected in order of priority and if it is to the satisfaction of everyone in the
Department. The Manager explained the criteria or evaluation points given to each project, which
helps prioritize them in the proper order. The system works well for the Department.
BREAK: At 10:53 a.m., Chairman Goya entertained a Motion for a short break; moved by
Mr. Heck and seconded by Mr. Smith and carried unanimously by voice vote. The Board
reconvened the meeting at 11:07 a.m.
Page 14 of 19 5 -22-07 -Minutes. doe
H. REVIEW OF MONTHLY FINANCIAL STATEMENTS:
No questions.
L WRITE -OFF DELINQUENT ACCOUNT #77030030 -2, KALUA KALAE RANCH:
Back around: Account #77030030 -2, Kalua Kalae Ranch, services a Department of Hawaiian
Home Lands (DHHL) pasture located off Mana Road in the Puukapu - Nienie (Waimea) area. The
account was established in August 1990 by account holder, Lynn Flores. The account was closed
in November 1998 and assigned to the Frank Huff collection agency in October 2001. A total of
$784.01 was collected between January 1998 and November 2002. Frank Huff returned the
account to the Department in February 2007. The account was then referred to Corporation
Counsel for additional collection /investigation. Corporation Counsel determined that the account
holder, Lynn Flores, died in January 1997 and that no further recourse was available to the
Department. Corporation Counsel recommends write -off of the account.
Per recommendation from Deputy Corporation Counsel, Diane Noda, the Department requests
approval to write off Account #77030030 -2, Kalua Kalae Ranch for $10,157.27.
MOTION: Mr. Mukai so moved for approval of the recommendation; seconded by Mr. Konanui.
Mr. Smith noted that this account was delinquent for a long period of time and wondered how
many months of nonpayment it reflects.
Mr. Mellom replied it is hard to determine. The payment history goes back only to January of
1997. At that time, there was an $8,523.00 balance. From his understanding, there was a problem
with a leak, and that is why the balance was so high at the time.
Mr. Smith stated that whatever happened in the past is done with. He wants to make sure that,
going forward, the Department does not allow delinquent accounts to get to this point. He noted
that Mr. Flores had a residential homestead at Kuhio Village as well as this pasture lot so he did
have assets on his residence when he passed away. The Department may have been able to recoup
some of its loss if that had been acted on sooner.
Mr. Mellom agreed that was the time something could have been done. A lot of the times, the
Department may not know when people are deceased because there may be relatives that continue
the payments and years go by before it is found out, like as in this case.
Mr. Smith commented that this is a utility; and like HELLO, when an account is delinquent two or
three months, the power goes off. We need to remember that this is a business; and as much as we
want to avoid cutting off people from essential services, there is a point in time where if you do
not collect from them, everyone else is paying for it.
The Manager stated that since the Department has had Mr. Mellom on staff, he has been on top of
the current accounts and works with customers to get payments.
Page 15 of 19 5 -22-07 -Minutes. doe
Mr. Smith stated that he knows a number of the Department's staff Waimea are homesteaders and
would probably know if a metered customer is no longer living. Mr. Flores was well known in
Waimea and had a lot of agricultural interests.
The Manager asked Mr. Mellom if there would be any other situations like this one.
Mr. Mellom replied that there are still some accounts with Frank Huff Agency, and there is one
that he could think of that may be similar. However, going forward, there should not be any cases
like this.
Mr. Mukai asked if there were many closed accounts $5,000.00 -plus in arrears.
Mr. Mellon replied there may be a handful with high amounts. There are over 2,000 accounts
currently with Frank Huff Agency.
The Manager commented that it is hard to cut off someone's water, especially when they come in
and they have children. The Department makes every effort to help its customers. Through the
Department's Rules and Regulations, people are afforded payment plans and accommodations to
help them make payments. If service needs to be cut off, the Department follows the Rules and
Regulations for proper procedures in doing so.
Chairman Goya understood and sympathizes with the Department. It is a tough job, but it has to
be done; and if it needs to be done, then with the necessary support from the Department and
necessary documentation regarding termination of service for non - payment. It is the Board's
fiduciary responsibility to make sure accounts are collected on in a timely manner and carefully
managed. If they need to be written off, sooner is better than later. That way, it is more
accurately reflected in the Department's income and balance statements.
ACTION: A vote was taken on the Motion to write off Account #77030030 -2, Kalua Kalae
Ranch for $10,157.27. Motion was carried unanimously by voice vote.
J. MANAGER'S REPORT:
1) Status of Palani Road Transmission Waterline project - close to advertising the project. The
delay is an easement from two individual parties; hopefully, it will be resolved soon.
2) Status of the Waimea Clearwater Reservoir Repair - bids for the repair are out, and bids should
be coming back soon.
3) Status of the Hawaiian Ocean View exploratory well - staff met with SSFM International last
week. They think they can make the deadlines discussed last month. They were asked if they
could include Phase 2 in the second part of the project, and they indicated they would. Also,
the Department of Water Supply will be holding a public meeting on May 23, 2007, at the
Hawaiian Ocean View Community Center. Representatives of SSFM will also be there to
discuss the Environmental Assessment process. There is still a question as to use of the park
site. Ms. Garson stated that Mr. Heck provided her with some information prior to the
meeting, and she would follow up on it. The Manager continued that if the park site is
available, the second well will probably be drilled on the initial site the Department wanted.
Page 16 of 19 5 -22-07 -Minutes. doe
Mr. Heck thanked the Manager for the letter sent to Mr. Rell Woodward. It was very
informative. He asked about the condemnation process of the land adjacent to the park.
Ms. Garson stated that it is before the Finance Committee and the County Council. There is
one more Council meeting. The Finance Committee had some questions initially, but none at
the Council meeting. In response to Mr. Heck's question if there is a need for either he or
someone from the community to be at the Council Meeting to support this, she replied that it is
totally within anyone's right to go and give public statement or provide written testimony.
Mr. King, who is the owner of the land that is being condemned, attended the first meeting and
gave some testimony. The Council's questions after that testimony have been answered, and
they are okay with the process.
4) Status of the Kona Water Quality - because the Department did not receive bids for the
Kahaluu Shaft Pumps Casing Modification, under Procurement rules, the Department was able
to negotiate for bids and received one quotation. Mr. Young is working with that contractor
on a price. This project will allow the Department to modify how the water is pumped from
the Shaft. There is no doubt that the water quality will improve as a result of that project. As
for the Waiaha System LLC agreement, it is still within the 120 -day period. On the
Kamehameha Investment Corporation (KIC) negotiations, they will submit a proposal to the
Department based on discussions with Mr. Kurt Inaba. There is a possibility that it may
happen where there is a joint effort where this Department pays for the oversizing and KIC
does its part to provide water to their subdivision and their interests. The Department would
benefit from the oversizing and the three wells that they have. In addition, the Department is
working with Hiluhilu, Hinalani, and still in open discussions for the private corridor coming
down by Kona Heights.
5) AWWA Hawaii Section Conference (May 23 to 25, 2007 - Honolulu) — Mr. Mukai and
Chairman Goya will be attending the conference this week. Ms. Helfrich will also be
registered for the conference.
6) AWWA National Conference (June 23 to 28, 2007 - Toronto, Ontario, Canada) - the Secretary
has put packets together for those who are going. Board Members received their today (those
not present will be sent by Certified Mail).
7) Retiree of the Department of Water Supply - The Manager stated that Mr. Bruce Hirano
retired a couple of months ago; but because of scheduling, he was being honored today.
Mr. Okamoto stated that Mr. Hirano started with the Department in 1970; and his effective
retirement was April 1, 2007. He remembered Mr. Hirano as having a very good memory for
things going back 30 years, and he also cared very much about his work. The Manager added
that the Board sees a lot of dedication documents on the Agenda, and Mr. Hirano was behind
that paperwork. He had started out his career in the survey field. The Department is thinking
about bringing him back under contract to train someone else to do the paperwork and
thorough checking of legal documents that is needed. He thanked Mr. Hirano for all the years
he put into his work. Chairman Goya congratulated Mr. Hirano and presented him with the
Department's retirement gift. Mr. Hirano thanked the Department and the Board. He stated
he enjoyed working for the Department and learned a lot about government and how it
operates. He appreciates everything the Department has done for him over the years.
8) Employee of the Quarter Presentation (1" Quarter 2007) - the Manager introduced
Ms. Dolores (Dee) Degele, Contracts Technician, Administration Division. The Deputy
Manager stated that Ms. Degele has been with the Department since 2005. In such a short
time, the accomplishments that she has made are very well appreciated. She does the contracts
Page 17 of 19 5 -22-07 -Minutes. doe
and works very well with the project engineers, Corporation Counsel, and everyone involved
in the process. Both the Deputy Manager and the Manager mentioned how organized and
efficient she is. Chairman Goya congratulated Ms. Degele and presented her with a
certificate.
In response to questions about two issues 1) Air Conditioning System for the Waiakea Office
Plaza, and 2) Hawaiian Homes project (State funding), the Manager reported that for #1, the new
system is in design and should cost approximately $3 million to retrofit. The current AC system is
inefficient. Hopefully, it can be advertised soon. The Department insisted that the employees do
not get relocated while work is being done. Instead, work will probably be done nights and
weekends. Regarding #2, there was an article in the West Hawaii Today where it said this
Department received $14 million (approximately), but that was not a true statement. What the
article did not say was that the funding was restricted, which means the funds are not being
appropriated from C.I.P. but comes from someone's budget. While on paper it looks good, the
reality is this Department is not going to get it. However, Mr. Micah Kane met with the Manager
yesterday; and he indicated he is working with the Governor to help this Department. The
Manager doubts if it will be as much as $14 million but will be a help. The Department is still
working with Hawaiian Homes because they still have initial commitments from this Department
for the Villages of Laiopua project. The Deputy Manager added they will not be served until the
Palani Transmission System is in use. He also mentioned the Keopu - Puuhonua Production Well
and 1.0 MG Reservoir bids will be opened and will be on the Agenda next month. It will provide
additional capacity to the system in the mauka Kona area.
In response to a question about the Public Information and Education Specialist, the Deputy
Manager stated that the physical exam will be scheduled this week. Because the person chosen
had a prior commitment, they will not be available until the second week of July.
Mr. Mukai mentioned that he had visited the Department's main office one day and noticed the
exit from the circle driveway was partially blocked by a Department car parked along the
driveway near the backflow prevention device. The Manager stated that he would have
Operations Division paint a line with "no parking" beyond that point.
K. CHAIRMAN'S REPORT:
None.
ANNOUNCEMENTS:
1. Next Meeting:
The next meeting of the Water Board will be held on June 19, 2007, 10:00 a.m., in the Hilo
Operations Center Conference Room; 889 Leilani Street, Hilo, Hawaii.
The Board chose to hold its July 24 meeting in Hilo and its August 28 meeting in Kona (place to be
determined). Maybe later in the year, the Board will want to consider holding another meeting at
Ocean View.
Page 18 of 19 5 -22-07 -Minutes. doe
STATEMENTS FROM THE PUBLIC
None.
ADJOURNMENT
ACTION: Mr. Konanui moved for adjournment of the Meeting; seconded by Ms. Helfrich and
carried unanimously by voice vote.
(Meeting adjourned at 11:44 a.m.)
Secretary
The Department of Water Supply is an Equal Opportunity employer and provider.
Page 19 of 19 5 -22-07 -Minutes. doe