HomeMy WebLinkAbout2009-02-24 Water Board MinutesMttiUTES
DEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAPI
WATER BOARD MEETING
February 24, 2009
Royal Kona Resort, Resolution Room, Kailua -Mona
MEMBERS PRESENT: Mr. Riley Smith, Chairperson
Mr. Dwayne Mukai, Vice- Chairperson
Mr. George Harai
Mr. Francis Kuailani
Mr. Bryan Lindsey
Mr. Robert Meierdiereks
Mr. Art'raniguchi
Mr. Milton Pavao, Manager,
(ex- officio member)
Department of Water Supply
ABSENT: Ms. Millie Kim, Water Board Member
Mr. Bernard Konanui. Water .Board Member
Mr. Daryn Arai, Acting Director, Planning Department (ex- officio
member)
Mr. Warren Lee, Director, Department of Public Works (ex- officio
member)
OTHERS PRESENT: Ms. Katherine Garson, Assistant Corporation Counsel
Department of Water Supply Staff
Mr. Quirino Antonio, Jr., Deputy .Manager
Mr. Kurt Inaba, Engineering Division Head
Mr. Lawrence Beck, Engineering Division
Mr. Richard Sumada, Waterworks Controller
Mr. Daryl Ikeda, Chief of Operations
Ms. Kanani Aton, Public Information and Education Specialist
Ms. Julie Myhre, Energy Management Analyst, Operations Division
CALL TO ORDER - Chairperson Smith called the meeting to order at 10.00 a.m.
STATEMENTS FROM THE PUBLIC.
Chairperson Smith read the first paragraph of a memorandum distributed to the Board from
excused Board Member Millie Kiln regarding the Chairperson's proposed travel policy for
Board members.
Passe 1 of 24 Water Board Minutes - 2 -24 -09 Mating
Ms. Kim wrote: "Below are some very minor stvle changes to the proposed BWS travel
police. New material is underlined and deleted material is bracketed.
In my opinion, this change is more than appropriate as a change in WN'S travel both in state
and out of state. I believe in the past the manager had no choice but to take a more open -
ended practice because there was no official travel policy, otherwise he would be put into the
position of deciding which board members would attend or not attend conferences. The
current economic situation and the board's position on being more attuned to public
perception, provide an opportunity to provide more structure and rationale for BWS members'
conference travel." (See attached memorandum from Ms. Kim.)
Chairperson Smith said the Board would be discussing the proposed travel policy further, later
in the meeting Linder Item 8 (.I) CHAIRPERSON'S REPORY
APPROVAL OF MINUTES:
ACTION: Chairperson Smith entertained a Motion to approve the Minutes of the January 27,
2049 Water Board Meeting. Mr. Mei.erdiereks so moved, seconded by Mr. Lindsey and
carried unanimously by voice vote.
APPROVAL OF ADDENDUM AND/OR SUPPLEMENTAL AGENDA:
Chairperson Smith entertained a Motion to approve the addition of Supplemental Agenda Item
No. 8 (B), regarding VEHICLE BCD NO. 20081 1, FURNISILING AND DELIVERING
VE.fIICLES TO TIME DEPARTMENT OF WATER SUPPLY, and Supplemental Agenda Item
No. 8 (I), to add to MANAGER'S RI -PORT a report on the LIawai'i County Green Team.
ACT I,ON: Mr. lIara.i so mop =ed. seconded by Mr. Meierdiereks and carried unanimously by
voice vote.
NORTII KOHA.LA:
A. CONSTRUCTION RIGHT -OF -ENTRY AGREEMENT FOR THE HALA`ULA
EXPLORATORY WELL SITE:
(Note: This Item was deferred from the 1127108 Water Board Meeting.)
The Department of eater Supply (DWS) is seeking to construct an exploratory well in the
1-lala'ula area of the North Kohala district. DWS intends to develop and test the well Prior to
acquisition of the property. If the well proves to be productive in terms of quantity and quality
of water, then D'AVS will acquire the site to fully develop the well and to Ioc,ate a storage
reservoir at the site. In order to enter the site to construct and test the exploratory wrell, DWS
has arranged to enter into a Construction Right- of -Entry Agreement with the current
landowner, Surety Kohala Corporation. Surety Kohala Corporation has approved the
Agreement and signed it on their behalf. Corporation Counsel has reviewed the document.
Page 1. «t 24 water Roard Minme+ - 4-09 19eeiing
The well is to be located at the upper end of Hala`ula Road at approximately the 785 -foot
elevation. The reservoir overflow elevation will be at the 810 -foot elevation to match the
Hawn Tank. Once constructed, the new Hala`ula well and 810 -foot reservoir may be
connected to the Hawn water system such that either system can provide backup for the other
system. The additional. water from the new well will allow increased water availability in the
area. Current water policy al.lows only one equivalent unit of water per pre - existing Lot of
record.
The Manager recommended that the Water Board approve the execution of the Construction
Right -of -Entry Agreement, and further that either the Chairperson or the `ice- Chairperson be
authorized to execute the Agreement.
MOTION: Chairperson Smith entertained a Motion to approve the recommendation. Mr.
Meierdiercks so moved, seconded by Mr. Kuailani.
Ms. Garson pointed out that under this agreement, the Department is requesting Right -of-
Entry. She noted that the agreement is atypical in that it stipulates that DWS will install a
cattle barrier fence, and contains an obligation for DWS to restore the property after the work
is completed (such as paying for trees that will have had to be cut down during the
construction.). She also noted an indemnification clause whereby if anything happens and the
grantor of the Right -of -Entry is sued, DWS will have to defend the grantor and pay any
damages that result from DWS actions. Such damages would include reasonable attorney
fees. Ms. Garson said.
Ms. Garson noted that under the circumstances, time was of the essence and the Department
needed the Right -of- Entry.
The Manager explained that DWS had been trying to secure the site in question for the last
couple of years, and by doing so, DWS is now able to put in a third well in North Kohala and
open up water availability so that people can do family partitions or small subdivisions. For
the past eight or nine years or even longer, DWS could only allow existing lots of record to get
water service there. He noted that DWS' existing wells are above Hawi town. The Hala`ula
site is toward the east, so this well will mean that DWS wriIl have wells on both ends of the
town, and allow for greater flexibility — thus strengthening the system. Right now, DWS is
flowing Haw! water all the way to Hala`ula. With the new well., together with the two existing
wells, DWS can serve customers in both directions, he noted.
Mr. Beek displayed area maps on the overhead to show the wells' locations.
The Manager noted that the Department has worked for years to get an additional well in
North Kohala. I-Ie said that DWS also has a stand -alone system in �4akapala U5kea, that has
its own well. He noted that a future well which will be located at Kokoiki will further
strengthen the North Kohala system significantly.
Regarding the purchase of the site, Mr. I larai asked if the appraisal will van, before and after
the fact.
Faye 3 oT 24 water Houd Minutes - 2 -24 -09 Meeting
The Manager said lie was not sure. if it would make much of a difference bccause DWS will be
drilling the well and it will belong to DWS. In other words, the well will be DWS', although
it will be on Surety's land. fie said he did not know if the well would affect the appraisal.
Ms. Garson explained that what happens with an appraisal is that you can deduct the benefit to
the land of the improvement. Once DWS does the infrastructure, the appraised value will
greatly improve and that benefit would actually be deducted from the cost of the land. In the
past, the Department has purchased the land and then drilled an exploratory well. However,
the fear in this case was that the well may not be good, so the Department has decided to drill
first and consider purchase based on results.
Chairperson Smith commented that if the Department knew that the well site was going to be
productive, the Department would buy the site now.
The Manager concurred.
Chairperson Smith noted that when the Department tests the well and gets positive results, the
site will definitely be more valuable. He said that the site is going to come in higher, but the
risk is gone and the value .should be higher, and DWS should pay the higher value. Otherwise,
DWS would buy it now if the Department knew there was absolutely no risk. Summing up,
Chairperson Smith said that the site will be assessed higher.
Mr. I1arai asked if DWS could not have put pre - conditions on the purchase.
Ms. Garson said the Department tried to put pre- eonditions on before, but in a separate case
the negotiations ended up getting complicated when the landowner asked for a certain amount
of water, and the deal fell through. She believed that the current arrangement with Surety was
more expeditious, although the Department will end up negotiating at the back end..
Giving historical background, the Manager said the Department was confident that DWS will
get good. water at the site because the old plantation nearby had a well where the water
quantity was great but the water quality was bad due to contamination by the Hala`ula
Subdivision. For that reason, DWS decided not to buy the well years ago. The Department
knows there is water there, and is drilling the well above the plantation camp to eliminate the
possibility of contamination.
Mr. Mukai asked 'if the Agreement, drafted by Surety, contained any sore points.
Ms. Carson said that there were no glaring sore points, although agreeing to the
indemnification clause carried an unknown financial obligation and made it an open -ended
thing which required the Board to make a conscious, informed decision.
Regarding liability, Mr. Mukai asked if the site was a remote location that was inaccessible to
trespassers or the like.
Page 4 aF24 W'arer Board A'Gnute:s - 2 -24 -G9 �ieeting
Mr. Beck, showing photos of the site, said it was high Lip the mountain in an orchard area on a
dirt road, and that the Location was fairly remote.
'The Manager noted that realistically speaking, there are bound to be curiosity- seekers once the
presence of a derrick becomes known.
Mr. Beck noted that the site will be fenced off to keep cows out.
At this point, Chairperson Smith apologized for not having introduced and welcomed the
Board's newest member, Nir, Taniguchi, making his Board debut.
Chairperson Smith then asked about the cost of the exploration of the well,
The Manager said the cost would be about $1 million.
Chairperson Smith noted that the terms of the agreement provide a Right-of-Entry that would
allow DVS to access the site and have the Department's contractor dig a well. He noted that
while there was no specific term where the agreement ends, he assumed that the agreement
ends when the scope of the work is completed, at which time the well will be capped.
Assuming that the well is productive, the Department would then enter into negotiations with
Surety to purchase the site and fully develop it into a permanent well station.
The Manager said that the Department has been in discussions with Surety for years now, and
DWS has gotten assurances that Surety would sell the site to the Department, lle noted that
Surety has been trying to sell off all of their lands to generate cash. Surety does not have any
properties in the area that they are looking to develop, he noted.
Chairperson Smith noted that a lot of people in the area who would benefit from this well are
former Kohala Sugar Company employees and their families. Surety, by virtue of being the
former Kohala Sugar Company, would have a vested interest in helping their former
employees, he said.
The Manager said that the added capacity that this well would provide would allow For family
partitioning and small subdivisions that people in the area wanted to do for a long time, but up
to now could not do,
ACTION: The Motion carried unanimously by voice vote.
SOUTH KOHALA:
A. JOB NO. 2007 -919, EARTHQUAKE DANIAGED TANK REPAIRS, GROUP #2 (N.
KO AIS. KOHALA), COUNTY OF HAWAII, STATE OF HAWAI`I, FEMA -1664-
DR -1-1I, FIPS NO.001- UVKJ8 -00.
Three bids for this project were received and opened on January 22, 2009, at 2:00 p.m.. and
the following are the bid results:
Page -) of 24 Wutcr Board Minutes - 2 -74 -09 Mceting
Bidder Amount
lsemoto Contracting Co., Ltd. $2,385,615.00
Bolton, lnc. Non- Responsive
Abhe & Svoboda, Inc. Non - Responsive
Project Scope: This project consists of the repair and seismic retrofit of six (6) reinforced
concrete tanks in N. Kona (2 ea.) and S. Kohala (4 ca.) districts that were damaged in the
October 15, 2006 Kiholo flay Earthquake.
Project Cost:
1) lsemoto Contracting Co., Ltd. $2,385,615.00
2) Construction Contingency (10 %) $23 9, 5 6 1,5 0
Total Construction Cost: $2,624,176.50
Contractor Qualifications:
As part of the project plans and specifications, each bidder was required show that they meet
specific qualifications for repair work involving the retrofit of tanks for Seismic lone 4. Of
the three (3) bidding contractors, only lsemoto Contracting Co., Ltd. met the qualifications.
Funding for this project will initially be from DWS C.I.P. budget; however, DWS will be
pursuing reimbursement from the Federal Emergency Management Agency (FEMA) for up to
75% of the actual construction costs.
The Manager recommended that the Board award the contract for .JOB NO, 2007 -91.9,
EARTHQUAKE DANIAGED TANK REPAIRS, GROUP 42 (N. KONA/ S. KOHALA),
COUNTY OF HAWAII, STATE OF HAWAII, STATE OF I-IAWAI`l, FEMA - 1664- DR -I-II,
FIPS NO. 001- UVK.18 -00, to lsemoto Contracting Co., Ltd., for their bid amount of
$2,385,615.00 plus $238,561.50 for construction contingency for a total contract amount of
$2,624,176.50, subject to review as to form and legality of the contract by Corporation
Counsel.
Ms. Garson asked the Board to defer this item until the March 24, 2009 Board meeting,
because a protest had been filed on this procurement. She explained that under the law,
whenever there is a protest, everything gets stayed until the protest is resolved. Ms Garson
said it was safer not to award until the protest is resolved. She asked the Board to defer the
item to the March Board meeting, when the protest will have been resolved, and the
Department by that time will be able to make a recommendation.
Chairperson Smith asked about the process of resolving a protest.
Ms. Garson said that a letter of protest is filed, and it first goes to the Chief Procurement
Officer, who makes a determination as to the protest. The protest may or may not be resolved .
at that point. The Chief Procurement Officer then goes back to the bidder with his findings.
`I`he bidder may or may not appeal the findings. The appeal would then go to the Department
of Commerce and Consumer Affairs, and a full -blown hearing w=ould ensue. Ms. Garson
reiterated that once a protest is filed, everything is stayed. The only way to unswv is if the
Page 6 of 24 Wato.r Boa(d k inuws - 2- 24 -(;9 Mcv ing
Chief Procurement Officer decides that it is in the best interests of the Department to go ahead
with the award. Ms. Garson expressed concern that going ahead with an award in this case
would mean that the Department has an obligation with one party to do something but actually
the Department should have made the award to another party. She said there could potentially
be damages on both ends if the Department. were to proceed with the contract, where the
Department should have awarded to someone else.
Chairperson Smith asked if the Department could make a contingent approval based on
settling the protest, so that the Department does not have to wait for the next Board meeting to
go forward if it were resolved prior to the next Board meeting.
The Manager said the Department could do that., but the price may be different.
Chairperson Smith said the Board could only approve what is known today, and therefore
could only approve the current price. He suggested that the Board could approve a
contingency. and if the Chief Procurement Officer resolves the protest next week, the
Department could go ahead and not wait for another Board meeting.
The Manager said that would work.
Chairperson Smith said that would address the ;Manager's concerns because the Board would
not be approving anything until the protest is resolved.
Ms Garson said her only concern was that the Flawai`i Administrative Rules say "staying all
action," so a contingent approval could be a violation of a stay in all action.
Chairperson Smith asked when the 60 -day period to make an award will expire in this case.
Mr, Inaba said it would expire one week prior to the next Board meeting.
Chairperson Smith said he was trying to figure out how important it was to take some action
today so the Department could move forward.
Mr. Mukai asked whether in the ease of a stay in action, the 60 -day clock on making an award
stops ticking.
The Manager noted that the contract provisions say that the bidder is required to hold his price
for 60 days, and that was a separate issue. In other words, the 60 -day period would remain,
regardless of the outcome of the protest.
Chairperson Smith. noting that the earthquake took place in ?006 and now it is 2009, said that
the Waimea community was asking why it was taking so long for the reservoir to be repaired.
He expressed hopes that the Department could take minimal risk while going forward with the
repairs.
The Manager said while he thought the contingency award was a great idea, he was not sure if
that was Corporation Counsel's recommendation.
Page 7 of 24 Water Board Minmes - 2- X4,143 Meeting
Chairperson Smith asked who was filing the protest.
Mr. Mcierdiercks asked if the Board had the right to know.
Ms. Garson said she did not know the answer to that question.
Chairperson Smith noted that the bidder was filing the protest because they had to be qualified
to do this kind of work and yet did not subunit their qualifications. He believed the matter was
black and white: if a bidder is required to subunit something and does not submit it, then the
bidder's bid cannot be considered.
The Manager concurred with Chairperson Smith, but reiterated that the Department must
follow the law.
Chairperson Smith said the Board has to follow Ms. Garson's interpretation of the law.
Ms. Garson said that all she could say is the law says a stay of all action, and that her
interpretation is that even a contingent approval would violate such a stay because it would
mean taking an action.
Chairperson Smith said that the risk would be that the Board would have to redo everything at
the March Board meeting.
Mr. Mukai said he did not see a problem: if the Board voted today on a contingent approval
and the Board were in violation then the approval would just be null and void, and the Board
would have to come back to the matter anyway.
The Manager said it went deeper than that, the ramifications would be that the Department of
Water ,Supply violated the law.
Mr. Harai asked if the protest only involved the bidder's qualifications. He asked that if that
were the case, would it not be black and white.
Ms. Garson said that she did not want to comment on the contents of the protest.
The Manager said that his concern was with the reputation of the Department, and whatever
the terms of the protest, he believed that there was a process to resolve it. He therefore
believed that it was in the Department's best interests to follow the law.
Chairperson Smith asked Ms. Garson whether the Board could make a contingent approval,
providing that Ms. Garson did not tell the Board to stop. If a problem arose, the Board could
revisit the matter at the March Board rn.eeting and approve the award again. He asked if that
were an option.
Pay -e � of 24 Water Hoard Minutes - 2 -24 -09 Meetina
Ms. Garson said that while she had not told the Board not to do a contingent approval, she was
clear that the law said to stay until the Chief Procurement Officer finds that it was in the best
interests of the Department to proceed.
The Manager said that he wanted to follow the law.
Ms. Garson said that her recommendation was to defer because a protest has been filed, and
there is a stay in place.
The Manager said that lie was pretty confident that the Contractor would be willing to hold. his
price beyond the 60 days, and that all it would take is a letter to the Contractor asking if he
were willing to hold his price longer than the 60 days. The Contractor would respond
affirmatively and the Board can award him at. the next Board meeting.
Chairperson Smith said this would be the�-,laiiager's intuition.
The Manager said it had happened before, where one or two weeks extra did not make a
difference, especially in the current difficult economic times. He said it was in the
Department's best interests to Follow the law and do what the Department is supposed to do
instead of taking the risk of a violation.
Nis. Garson again recommended that the Board defer.
MOTION: Mr. Kuailani moved to defer action until the March 24, 2009 Board meeting;
seconded by Mr. Mcierdiercks and carried unanimously by voice vote.
NORTH KONA:
A. JOB NO. 2003-834 ((REVISED1, CONSTRUCTION OF THE KONA BASEYARD
FACILITY IMPROVEMENTS.
Attached to the Agenda was a copy of a letter dated February 5, 2009, From Central
Construction, Incorporated, requesting an extension of contract time.
This is the contractor's sixth time extension request to allow the Department of eater Supply
additional time to secure the necessary building permit for the project. Additional time is
needed to fulfill, the Disability and Communication Access Board's requirement to provide a
readily accessible path of travel to the existing open garage building; which will be converted
to office and workshop spaces under- the scope of this project. Staff has evaluated this request
and finds that the 90-- -calendar day extension is justified.
Previously approved time extensions by the Water Board:
• First time extension 64- calendar days (May 11, 2007 to July 14, 2007)
• Second time extension 60- calendar days (July 14, 2007 to September 12, 2007)
• Third time extension 60- calendar days (September 12, 2007 to November 11, 2007)
• fourth time extension 65- calendar days (November 11, 2007 to January 15, 2008)
Page 9 of 24 Water Board !vfinutes - _1-24 -N hleetin.-
• Fifth time extension 417 - calendar days (January 15, 2008 to March 2, 2009) with
$22,348.60 contract price escalation to compensate for the time delay.
The following is the time extension recommended for Water Board approval:
• Sixth time extension 90- calendar days (March 2, 2009 to May 31, 2009) with no
contract price increase.
The Manager recommended that the Board grant Central Construction, incorporated, a 9V
calendar day extension to the contract completion date from March 2, 2009 to May 31, 2009,
for JOB NO. 2003 -834 (REVISED), CONSTRUCTION OF THE KON A BASEYARD
FACILITY IMPROVEMENTS.
MOTION: Mr. Kuailani moved to approve the recommendation; seconded by Mr.:vlukai.
The Manager lamented the hurdles posed by the Building Division of the Department of
Public Works regarding the Kona Baseyard work.
Mr. Inaba noted that each of the previous delays were related to getting a building permit. In
each instance, the Department satisfied the conditions, and Public Works signed off on the
construction plans, but later came back with additional questions. He expressed hopes that
this would be the last extension.
Nlr. Inaba said that many things were brought up by the inspector assigned to the project or
the issuer of the building permit, prior to handing over the building permit to the Contractor.
The latest questions involve access to the improvement site.
Chairperson Smith asked who the project consultant was.
Mr. Inaba said it was architect Jerry Watanabe.
Chairperson Smith asked what the original cost bid was, provided 756 days ago.
Mr. Inaba said the original cost bid was $ 192, 513.40; with an additional $22,348.60 in
contract price escalation to compensate for the time delay.
Chairperson Smith said that meant that the cost rose about 10 percent in 2 f� years.
ACTION: The Motion carried unanimously by voice vote.
At this point Chairperson Smith called for a brief recess, from 10:40 to 10:47 a.m.
Pa vg- 10 of 24 water Board Minutes - 24 -09 Meeting.
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.
(Note: Item 41 below was withdrawn at 12 -16 -08 meeting).
1. PURSUANT TO THE TRI -PARTY AGREEMENT BETWEEN MAUNA LANI
SERVICES, INC, (MES), MAUNA KEA PROPERTIES (MKP), AND
DEPARTMENT OF WATER SUPPLY. APPROVED 13Y THE WATER BOARD
AT ITS MEETING ON FEBRUARY 28, 2006. THE FOLLOWING DOCUMENTS
ARE HEREBY PRESENTED FOR ACTION BY THE WATER BOARD.
A. GRANT OF EASEMENT
Grantor: Waikoloa Village Association
TMK: (3) 6- 8- 002:019
B. ASSIGNMENT OF EASEMENT
Grantor Mauna Lani Service, Inc.
TMK: (3) 6- 8- 001:001
C. BILL OF SALE
Seller: 'Mauna Lani Service, Inc.
TMK: (3) 6 -8 -001. and (3) 6 -8 -002
Final Inspection Date: Pending
Water System Cost: Pending
D. DEED (Well Site 5 and Well Site 8)
Grantor: Mauna Lani Service, Inc.
TMK: (3) 6 -8 -001: 044 and 047
The Manager recommended that the Water Board. accept these documents subject to the
approval of the Corporation Counsel and that either the Chairperson or the Vice- Chairperson
be authorized. to sign the documents.
NLs. Garson asked that this [tern be deferred. She explained that with this project, Mauna Lani
needed to cross the state highway; and at the time they were given a Right- of -Entry to do so.
One of the state's requirements is that the party that. crosses the highway has to sign a Use and
Occupancy Agreement.. The Depariment of Transportation does not give easements to cross
the highway; instead there is a Use and Occupancy Agreement that allows you to be there and
have a water line there. Currently, Mauna Lani Services is having issues with DOI' on the Use
and Occupancy Agreement. When Mauna Lani dedicates the system to DWS, Mauna Lani
will assign that Use and Occupancy Agreement to DWS. The Department had worked on this
Page l I or 24 Water Board Nloustec . 2 -24 -09 klcetin�_,
assignment about a year ago. DOT is currently in the process of negotiation with Mauna Lani
on the terms and the amount of the payment that Mauna Lani Services, the developer, needs to
make to DOT in order to occupy that portion of the highway. Mauna Lani is still working on
it, and the Department cannot accept the assignment now because DWS would be missing the
right to be in the highway if we took the dedication now. Ms. Garson suggested allowing
Mauna Lani the time to work that out with DOT. She noted that Mauna Lani is pushing for
March to get everything approved, and meanwhile they are at the mercy of DOrI'. Ms. Garson
said that she has been talking weekly with Mauna Lani's attorneys to figure out a way to help
Mauna Lani, but she does not want the Department to take the assignment now and be stuck
having to negotiate with DOT and possibly- have to pay to have the right to be in the highway.
Therefore, she asked the Board to defer the matter to the March Board meeting. She added
that if she and Mauna Lani come up with a different solution for trying to assist Mauna Lani, it
would also be on the Agenda for the March Board meeting.
Chairperson Smith said that part of the reason that DOT is taking this stance is because when
highways are constructed using federal highway fund participation, there is an enhancement
clause that says if the property values of adjacent property owners increase because of
something that goes through a state highway, the property owner needs to pay a proportionate
share of the increase in value to the DOT and federal highways for the 80 percent federal
funding that constructed the road. Ile said that DOT was consistently doing this with anybody
whose property is adjacent to a state highway that crosses infrastructure, highway access or
multi -lane interchange kind of improvements. DOT's view is that if an owner did not have the
access of this road, the property would not be so valuable. Even though the easement may be
20 feet wide on Queen Ka`ahumanu Ilighway, DOT is saying that because Mauna Lani Resort
increased in value by $20 million, DOT wants 5 percent of the $20 million increase.
Nis. Garson concurred, noting that what Mauna Lani is waiting for is for DOT to do their
appraisal so they know what their property value is.
Chairperson Smith noted that this provision was always in the federal highway statutes, but it
had never been imposed.
The Manager said it tip► {as only imposed recently.
Chairperson Smith cited the case of Waikele subdivision on Oahu, where two interchanges
were done that connected to Waikele. DOT in that case said that if Waikele did not have those
interchanges, the value of the property would be a lot less, saying they (DOT) spent $100
million on this road, so Waikele should give something back.
The Manager noted that this issue was a deal - breaker for Surety because they had to pay a
fortune to State Highways because Surety was going to run a well line on the state highway.
ACTION: Mr. Taniguchi moved to defer the Item, seconded by Mr. Kuailani and passed
unanimously by voice vote.
Page 12 of24 Water Hoard Minutes - 27-a9 Meetina
F3. VEHICLE BID NO. 2008 -114 FURNISIIING AND DELIVERING VEHICLES TO THE
DEPAWI' MENT OF RATER SUPPLY:
Bids were opened on February 18, 2009; and following are the bid results:
Part "B ", %2 ton compact pickup with extended cab, will be re -bid because there were
discrepancies in each of the bids submitted.
The Manager recommended that the Board award VEHICLE BID NO. 2008 -11,
FURNISHING AND DELIVERING VEHICLES TO THE. DEPARTMENT OF WATER
SUPPLY, to Inter Pacific Motors, Inc. dba Orchid Isle Auto Center, for Part A at a cost of
$51,250.00 and that either the Chairperson or the Vice- Chairperson be authorized to sign the
contract subject to approval of the contracts as to form and legality by Corporation Counsel.
MOTION. Mr. Mukai moved to approve, seconded by Mr. Lindsey.
Mr. Ikeda said that every year, the Department seeks bids on at least 10 to 12 vehicles that
DWS wants to replace due to high mileage. Amid the current economic situation, the
Department has cut back dramatically on the number of vehicles it is looking to buy. The only
vehicles put to bid this year were two meter reading vans, one each for Hilo and Kona, and
one compact pick -up truck to replace one in Ka`u. The vans now in use have high mileage
and make lots of stops, and arc subject to breakdowns. The pickup truck in Ka'u has very
high mileage and is very beat -up, and the Kau crew needs it on a daily basis. Mr. Ikeda said
that the delivery time varies widely among the bidders, but he noted that in the Department's
specifications. D11dS does not reward. bidders for early delivery. Instead, for comparison
purposes, the Department does add $25 a day for delivery time that exceeds 180 days. This
$25 a day does not affect the price, and is for comparison purposes only. He said that the
Department recommended awarding to Orchid Isle Auto Center for $51.250.00. Turning to
Part 13 of the bidding, one of the specifications called for the compact truck to have an
automatic shift on the floor. Orchid. Isle did not have a vehicle with automatic shift on the
floor, and only had a compact truck with a column shift on the floor. Cutter Dodge did not
have a rontpac°t truck with automatic, and instead bid. on a bigger truck than the Department
wanted. Summing up, Mr. Ikeda said that the Department now needs to redo the
specifications and put it out to bid again, because the bidders were bidding on two completely
different things.
Pane 13 of 24 water Board Minutes - 2 -24 -09 1Y1ecting
Cutter Dodge
Inter Pacific Motors,
Chrysler Jeep of
Big Island Toyota
Inc., dha Orchid Isle
Pearl City
Auto Center
Part "A"
Two (2) only 2008 or later,
Midi -cargo or Passenger Van
2 -wheel drive
Total deliver rice
$54,751.73
$52,971.58
$51,250.00
Delivery time (calendar days
180
30
L 150
Part "B ", %2 ton compact pickup with extended cab, will be re -bid because there were
discrepancies in each of the bids submitted.
The Manager recommended that the Board award VEHICLE BID NO. 2008 -11,
FURNISHING AND DELIVERING VEHICLES TO THE. DEPARTMENT OF WATER
SUPPLY, to Inter Pacific Motors, Inc. dba Orchid Isle Auto Center, for Part A at a cost of
$51,250.00 and that either the Chairperson or the Vice- Chairperson be authorized to sign the
contract subject to approval of the contracts as to form and legality by Corporation Counsel.
MOTION. Mr. Mukai moved to approve, seconded by Mr. Lindsey.
Mr. Ikeda said that every year, the Department seeks bids on at least 10 to 12 vehicles that
DWS wants to replace due to high mileage. Amid the current economic situation, the
Department has cut back dramatically on the number of vehicles it is looking to buy. The only
vehicles put to bid this year were two meter reading vans, one each for Hilo and Kona, and
one compact pick -up truck to replace one in Ka`u. The vans now in use have high mileage
and make lots of stops, and arc subject to breakdowns. The pickup truck in Ka'u has very
high mileage and is very beat -up, and the Kau crew needs it on a daily basis. Mr. Ikeda said
that the delivery time varies widely among the bidders, but he noted that in the Department's
specifications. D11dS does not reward. bidders for early delivery. Instead, for comparison
purposes, the Department does add $25 a day for delivery time that exceeds 180 days. This
$25 a day does not affect the price, and is for comparison purposes only. He said that the
Department recommended awarding to Orchid Isle Auto Center for $51.250.00. Turning to
Part 13 of the bidding, one of the specifications called for the compact truck to have an
automatic shift on the floor. Orchid. Isle did not have a vehicle with automatic shift on the
floor, and only had a compact truck with a column shift on the floor. Cutter Dodge did not
have a rontpac°t truck with automatic, and instead bid. on a bigger truck than the Department
wanted. Summing up, Mr. Ikeda said that the Department now needs to redo the
specifications and put it out to bid again, because the bidders were bidding on two completely
different things.
Pane 13 of 24 water Board Minutes - 2 -24 -09 1Y1ecting
Mr. Mukai asked why the specifications were for automatic shift.
Mr. Ikeda said it was due to the preference of the employee using the truck..
Mr. Mukai asked why spend money on automatic, and asked if A.DA considerations were
involved. He said the Department should seek the most affordable vehicle possible.
Mr. Ikeda said the Department was trying to accommodate the employee, little knowing that
doing so would cause such a problem.
The Manager assured that the Department would not do that again.
Mr. "Taniguchi asked for an explanation of the S25 a day added for delivery times exceeding
180 days.
The Manager said that the Department does not give consideration for early delivery, but gives
a penalty for late delivery.
Mr. Ikeda gave as an example one company that can deliver in 180 days, and another that can
deliver in 200 days. .lest for comparison purposes, the extra 20 days is multiplied by 25, that
is, $500 which is added to the bid price of the company that bid 200 days' delivery time. He
noted that the bid amount is still the bid amount, and the $25 a day is for comparison purposes
only.
Chairperson Smith said that the Department evaluates based on the liquidated damages for
delivering the vehicle after the maximum 180 days.
Mr. Taniguchi asked if the Department was going statewide for vehicle bids.
The Manager noted that DWS had been criticized many times in the past for only getting
vehicle bids from Hilo, and had encouraged vendors on other islands to bid. He noted that this
was the first time Cutter Dodge had bid with DWS, and indeed the first time an off - island
dealer had bid with DWS.
Mr. Ikeda said it was also the first time that Big Island Toyota bid with DWS.
Chairperson Smith said that as a government entity, DWS is subject to state procurement laws,
and must open up bidding to all vendors. He suggested stipulating faster delivery_ time or
negotiating on maintenance, etc.
\IT. Ikeda said that bidders know about the 1.80 day cutoff, and many vendors routinely bid
180 days to play it safe, knowing there is no penalty up to 180 days.
Mr. Taniguchi asked how immediate DWS' needs were for the vehicles.
'1r. Ikeda said the sooner the better.
Page I of 24 water Board Minutes - 2 -24 -N Meeting
ACTION: The Motion carried unanimously by voice vote.
C. WAIAKEA OFFICE PLAZA LEASE AGREEMENT -- DCCAA
The Department of Commerce & Consumer Affairs (DCCA), is a tenant at the Waiakea Office
Plaza leasing 546 square feet of office space in the upper level of the Kapoho Wing. DCCA's
lease expired December 31, 2008. This lease agreement extends the term of their lease
through December 31, 2009. Lcase rent Is being increased from $3.00 to $3.54 per square foot
as follows:
January 1. 2009 to December 31, 2009 $1,932.84 per month
Common area maintenance comprises $ 1.79 of the square foot rate with office rent making up
the remaining $1.75.
The Manager recommended approving Department of Accounting & General Services Lease
Agreement No. 91-30-0011, subject to the approval of Corporation Counsel, and authorizes
the Chairman or Vice - Chairman to sign the lease amendment.
MOTION: Mr. Mukai moved to approve, seconded by Mr. flarai.
Mr. Sumada explained that the lease agreement extends the lease to one of the current tenants
at a higher monthly rent.
The Manager said the tenant, DCCA, has said it plans to move out when the other state agency
tenants move out, but DCCA has not found a new space yet. DCCA plans to move soon after
the Judiciary leaves.
Mr. Sumada noted that the new lease is a month -to -month lease.
Chairperson Smith said the new rent is an 18 percent increase, and asked how this compares
with the rest of the Milo market.
Mr. Sumada said the increase is due to the power cost, and that it is an increase in the common
area maintenance cost, not an increase in the rental portion of the lease.
Chairperson Smith noted that DWS is the landlord, and when the Board approves the lease,
they normally get a comparison of the local office rental market. Ile noted that the market is
depressed right now, but to increase the common area maintenance portion is appropriate. In
the future, he would like to see a comparison of the rental market. Because in our case a
government entity is the landlord, it is important to get market rates.
Mr. Sumada said that Hilo rents ran from $1.50 to $2.50 per square foot a year ago, while our
tenants in DWS' building have $1.75 per square foot as the rental portion, and on top of that is
the common area maintenance portion.
Page 15 o9'24 'Water Board Minutes - 2 -24 -09 Meeting
Chairperson Smith commended the Department for what it is getting in the agreement, adding
that the Board needs the market information on the record so that the entire Board has the
same data and so that the Board is covered in the Minutes,
The Manager said that when we do a lease agreement the next time, it will include that
information, noting that the next time will be when the Judiciary moves out and the
Department looks for a tenant for downstairs. The Department wants to occupy the entire
upstairs of the building.
Mr. Taniguchi noted that on Page Two, Article Two, of the Lease Agreement there is a typo in
the Bank of FIawai`i's street address, where the address should be "Kekuanao`a" instead of
"Kehuanaoa ".
ACTION: The Motion was carried unanimously by voice vote.
D. MONTHLY PROGRESS REPORT:
The Manager said that as always, the Board is welcome to call the Department with any
questions they may have regarding the Monthly Progress Report.
F;. ISSUANCE OF GENERAL OBLIGATION BONDS:
The Department anticipates obligating approximately $32 million during the remainder of
FY09 on construction projects. The Department further anticipates needing $37 million for
construction projects in FY10. This brings total construction funding requirements over the
next year and a half to $69 million. Currently, DWS has approximately $19 million available
for construction leaving a shortfall of $50 million that the Department would like to raise via
General Obligation Bond issue as provided for in the Department's July 2007 Rate Study
prepared by RW Beck.
Interest payments totaling $1,250,000 for these new General Obligation Bonds have been
included in the proposed FYI budget.
The County of hlawai`i cannot say exactly when their next General Obligation Bond issue will
be but has indicated that Water Board approval is required in order for DWS to be included.
The Manager recommended that the Water Board approve a request to the Connty of Hawaii
to be included in the County's next General Obligation Bond issue for $50 million; that DWS
reimburse the County of Hawaii for DWS' sl.iare of debt service and costs of issuance; and
that the Manager be authorized to execute the t>ecessary documents to complete the issuance.
MOTION: Mr. Mukai moved to approve, seconded by Mr. Kuadani.
The Manager said it is the Department's intention to ask the County for G.O. Bonds to finance
some of our CIP projects. In the current economic situation, the Department is not generating
enough revenues to put the customary 15 percent reserves back into CIP. DWS revenues are
Page 16 o 24 Rater Board Minutes - 7.24 -09 Meelimi
covering the Department's expenses, with very little left over to put into CIP. G.O. Bonds are
a way to generate CIP funds, so that we can put out the Department's CIP projects. The
Department has cliecked with the County and it is not a problem. As the Manager mentioned
during the last Board meeting, the Department has the ability to float revenue bonds, but the
rates for revenue bonds are higher than for G.O. Bonds. Therefore it is to the Department's
advantage to piggy -back with the County on the County's G.O. Bond float.
Chairperson Smith noted that the recommendation is that the Department be included in the
County's G.O. Bond application and that the Department's request is for $50 million, and that
the County's request would be for something significantly more, and the Department would
pay a pro rata share of the counseling and other setup fees.
The Manager confirmed that this is how the Department always does G.O. Bond floats with
the County.
Chairperson Smith noted that if the Board approves, all it means is that the Board agrees to ask
the County that DWS be included in the County's bond float. Ile asked when the commitment
would ensue.
The Manager said the commitment would be when the Department brings the projects to the
Board.
Chairperson Smith noted that the Board is just saying that it approves the Department to ask
the County to be included in the bond float, and that there is no commitment on the Board's
part at this point; that it is only an authorization from the Board to proceed.
The Manager confirmed that it would just be an authorization from the Board to go ahead to
see if DWS can borrow the $50 million, and that there is no commitment whatsoever.
AC'hION: The motion carried unanimously by voice vote.
F. DEPARTMENT OF WATER SUPPLY PROPOSED OPERATING AND CAPITAL
IMPROVEMENT BUDGETS FOR FISCAL YEAR 201:0:
The Department distributed copies of a Public Notice to announce the March 24, 2009 Public
Hearing on the Department's Operating and CIP Budgets for Fiscal 2009 -2010, The Public
Notice must be submitted to the newspapers by no later than March 9, 2009.
Chairperson Smith asked that the Public. Hearing be set for 9:30 a.m. at the Waimea
Community Center, with the regular grater Board IN- ieeting following at 9:40 a.m., to give the
Board flexibility in casee no one shores up at the Public Hearing. He asked the Board to review
the Public Notice and bring any questions or concerns to the Department before the Public
l Iearing.
Page 17 of 24 water Board Minutes - 2 -24 -09 Meeting
The Manager said the Department was prepared to answer the Board's questions regarding the
Operating and C1P Budgets.
Regarding the $39.7 million under Receipts: Sale of Water Services, Chairperson Smith asked
how- it compared with the past 12 months' experience on water service sales, specifically,
whether it reflected a change in water consumption.
Mr. Sumada said he was forecasting slightly less consumption in Fiscal Year 2009 -2010
because consumption has been decreasing over the past three years, fie saw a continuation of
this declining trend.
Chairperson Smith asked to what Mr. Sumada attributed the consumption decline.
Mr. Sumada said there was no obvious reason for the decline, but noted overall consumption
islandwide amid increased rainfall.
Chairperson Smith asked if the leak detection program was a factor in the decline.
The Manager said leak detection does not come into play; leak detection instead reflects the
Department's electrical cost. He noted that Hilo area water consumption is pretty steady,
thanks to high levels of rainfall. Meanwhile, Kona has had a lot of rain in the past two
months, and that has translated into falling water consumption because Kona normally uses
lots of water for irrigation. He noted that when there is a reduction in irrigation, there is a
reduction in revenues for the Department as well. He believes that the decline in consumption
is coming from the West side of the island, while East side consumption has held steady. Last
year, the decline in water consumption in West Hawaii marked a definite trend.
Chairperson Smith said that while in Waimea there had been a prolonged drought, the past two
months have seen dramatically more rain.
'The Manager noted that since the earthquake damaged the Waimea reservoirs, the operators of
the Waimea treatment plant issue daily reports on both storage and consumption.
Consumption has definitely declined with the higher rainfall, he said.
Turning back to the Public Notice, the Chairperson asked Hoard members to email any
questions to the Board Secretary.
The Manager said that any changes, including corrections of typos, must be made early, before
the March 9 deadline for submission to the newspapers.
Chairperson Smith asked whether the Department was projecting any change in personnel
count.
Mr. Sumada said the personnel count was rising slightly, although not as much as before. He
noted that the Department did not budget for union pay increases, after consulting with the
County which does not plan to budget for pay increases. Ile said that with the union contracts
expiring on June 30, 2009, there is nothing beyond that to indicate any pay increases.
Page 18 of24 Water Board Minutes - 2 -24 -09 Meeting
The Manager said that the Department was adhering to the Mayor's lead on the hiring freeze,
The only positions that the Department will add are positions involving the Department's core
Function; that is, the Department's ability to serve its customers. The positions in question
would be customer service, operations personnel in the field and information technology
personnel to improve the Department's communications with the public. Aside from those
positions, the Department is in a hiring freeze.
Chairperson Smith said he approved the Department's conservative fiscal stance in the current
economic circumstances.
Mr. Taniguchi asked about the Department's projected annual salary expenses.
Mr. Sumada said that last year they were budgeted at $9.1 million, whereas this year they are
at $8.7 million and next year at $4.2 million.
Mr. Taniguchi asked for clarification of the term "hiring freeze."
The Manager said it meant new hires. In some cases, the Department is not replacing people
who have left or transferred. If the position is not part of the Department's core function, the
Department will not fill the position until the hiring freeze is lifted and the economy improves.
tf the position does involve the Department's core function, DWS is hiring to replace staff but
is not hiring anybody new. As an example, the Department is not filling an electrician's
position recently requested by Operations. 1lowever, the Department is watching the County
to see if they hire for a similar position and if so, the Department will follow suit. The
Manager said the Department is basically following the Mayor's lead.
Mr. Sumada said that there are some positions that the Department is budgeting for, but the
positions are frozen. Ilse Department will not fill those positions until the hiring freeze is
lifted,
The Manager said that budgeting for these positions provides the Department with a cushion,
so that when the economy improves, the Department will not be stuck in a position of not
being able to fill vacancies.
vis. Garson noted that the County Council last year or so had an issue over whether to fund
vacant positions, which would entail, taking money in the budget from something else to fund
the positions. She believed the County Council was looking selectively at that issue.
Mr. Mukai asked the Department, for information purposes, to add up all of the positions that
are currently frozen, together with salaries and benefits. Doing so would give the Board an
idea of hove much those positions figure in the budget; these funds would be ones that the
Department does not anticipate using.
The Manager said the Department could do such a tally. He noted that it was good to have
funding for vacant positions because as a water utility the Department often needs to increase
staff such as Microlab personnel, to comply with reporting requirements by the Environmental
Pa e 1�) of 24 Wawr Board Minutes - 2 -24 -�9 Meeting
Protection Agency. He noted that Microlab staff has grown dramatically in the last few years
because there is so much reporting that needs to be done.
Chairperson Smith it would help to know how many positions are frozen out of the $13.7
million the Board will be asked to approve on Personnel Services, to see how much leeway the
Department has in case the economic situation gets even worse.
Mr. Kuailani asked whether the Department had ever laid off staff.
The Manager said he never heard of the Department laying off staff, and that it was the last
thing he would ever want to do. He noted that the Department's Table of Organization
contains many positions which are not filled, and that the Table of Organization reflects an
ideal situation for DWS, where there are enough engineers to devote to projects, for example.
G. REVIEW OF MONTHLY FINANCIAL STATEMENTS.
Mr. `Taniguchi asked about the Department's procedure on lapsed warrants and whether the
Department must keep them forever.
Mr. Sumada said the Department sets aside those uncashed checks, putting them into a
separate account for about three years. Efforts are made to contact the payees and if
successful the Department issues a new check. If no contact is made, the Department
eventually turns over the uncashed checks to the State.
Mr. Taniguchi asked about the Department's property and where it appears on the balance
sheet.
Mr. Sumada said it appears under the Fixed Asserts category, under Plants in Service. This
includes land, building; wells, trucks and other assets.
The Manager noted that it also includes easements granted to the Department, dedicated water
systems and other assets.
Fl. WATER RATE, STUDY:
Discussion was held on the new water rate study that the Department wants to conduct, to
address the shortage of fiends being generated from water sales.
The Manager recommended that the Department do a new water rate study. lie said the
primary reason for doing so is that, amid the current economic situation, the Department does
not have enough monies to do construction projects. While the Department is allowed 15
percent to do C1P pro iects, the Fiscal Year 2009 -2010 budget has no money going into CiP.
The Department wants to go through the procurement process to select a consultant to do a
water rate study. A new water rate study would look at the entire economic situation and what
the Department has done in the past: such a study would give the Department an idea of where
Paa— 20 of 24 Wa[ei Hoard ti4inutes - 2- 24 -019 Ufeeung
the Department should be five years hence, and what rates need to be adjusted during that
time. He noted that the last water rate study that affected rates was done in 2001. The most
recent water rate study, done in 2007, did not recommend any change in rates.
Chairperson Smith said that a rate study would clarify for the Board whether consumption
rates cover operating expenses to provide the water, versus to recover CIP. He noted that
some strategies future involve the Facilities Charges paying for current and CIP
improvements, and the monthly bill just pays for the water — not to provide a reserve that the
Water Department would use to build more infrastructure for future customers.
The Manager noted that if the Facilities Charge was the sole vehicle for CIP, it would be
outrageously high. At $5,500 for the amount of lots that are coming in, that is not going to
support a CIP program. He said that a water rate study would take a look. at the balance
between rates and the Facilities Charge. As with previous studies, the consultant would keep
the Board very comprehensively informed on what they do, how they do it and the
assumptions they make.
Mr. Su.mada said this is a good time for a new water rate study because so much has changed
since the 2007 study, which predicted 2 percent growth and did not anticipate the spike in fuel
prices that subsequently occurred.
Chairperson Smith said he agreed that the Department should do a new rate study at this time.
Mr. Lindsey noted that while the Department normally has 15 percent for CIP in the budget,
this budget has no money going into CIP.
Chairperson Smith said that if developer wants to improve their lands, the Department
requires that landowners provide infrastructure that DWS accepts for maintenanee. 'Typically,
DWS does not build infrastructure; instead the Department's primary focus is to provide water
to existing customers. Typically, the Department's CIP needs are minimal, unless DWS needs
to replace something that is outdated or similar problems arise.
The Manager noted that a Iot of CIP money is used to keep DWS in conformance with EPA
regulations, as in the case of remedial action to a spring. Rarely does the Department expand
the system, and this is very controversial because a Iot of people want DWS to expand the
system. The Department rarely puts in new transmission lines to pick up new customers, and
instead DWS Iets developers do that kind of infrastructure, he noted.
Mr. I -lanai asked if the Department has CIP projects budgeted but which DWS cannot do
because of the cost.
The Manager said that the Department has a lot of projects that have not been bidded out yet
because DWS does not have the money, and some projects that the Department intends to bid
out for which there are funds in reserve. He cited the example of the $15 million Palani
project in Dona, for which the money has been reserved as part of a previous bond float with
the County.
Page 21 of 24 Water Board Minutes - 2 -24 -09 Meeting
I. MANAGER'S REPORT
The Manager provided a report on the following:
1. ation —The situation is status Quo;
KIC is still in discussions with their master developers and they have not contacted DWS yet.
The Manager raised the subject of the economic stimulus, and expressed disappointment at
what it means for the Department; it does not do the Department much good. The stimulus
money= is going through the State Revolving Fund (SRF), administered by the Department of
Health. The SRF program provides funds to counties to put them into compliance with EPA
regulations. The total stimulus money available is $19 million, for which the four counties
will compete. To obtain this money, DWS would have to comply with SRF requirements, and
only certain projects meet those requirements. Most of the projects that DWS was hoping to
do with stimulus money were -shovel -ready," but they did not qualify under SRF. He noted
that there are monies coming up for competitive projects, but it is not clear what the criteria
will be. DWS plans to apply, to fund projects that would not qualify under SRF. In addition,
DWS also plans to apply for money for alternative energy projects.
The Manager said he was hosting the managers of the three other water departments on
February 25 at his office, to discuss upcoming legislation and plans for the upcoming flawai.`i
Water Works Association conference on the Big Island in October. Regarding the American
Water Works Association conference in San Diego from June 14 through 18, the Manager
urged Board members to make their reservations soon because hotel rooms are going fast. I-Ie
said that DWS was allowing a day for attendees to get acclimated to the city, and so attendees
should travel on Friday, June 12, rest on Saturday, June 13 and be rested by the Sunday, June
14 conference opening. Ile noted that DWS staff had booked the Embassy Suites, but it was
probably booked solid by now, Fie urged Board members to find a hotel with shuttle service
to the conference. The Board Secretary can offer assistance with arrangements, and all
registration for the conference should go through her. On reimbursement, the per diem is $135
a day up front, which includes $85 per night accommodation. The Department will further
reimburse amounts exceeding W per night, reimbursable upon return, with the attendees
submitting the hotel receipt. Ground transport to and from the hotel (but not during the
conference) will be reimbursed. Airfare will also be reimbursed up to a specific amount to be
determined; the Manager noted that airfares are currently running around $680 -700 round. -trip
to San Diego. The Manager said there are two types of registration for the conference: 1) full
conference (including classes) and. 2.) Exhibition Hall only. (The price difference between the
two registration types is sizeable, he noted.)
Chairperson Smith encouraged Board members attend the sessions to get the maximum benefit
from attending. Fle also noted that as part of the proposed travel policy, attendees will be
required to provide a written report on what they learned, due within five clays of return from
the conference.
Page 22 of 24 Water Board Minutes - 2- 24-09 Meeting
2. Rec clin Pro gram —Ms. Myhre reported on the Department's program to boost
recycling and awareness of sustainability issues. ;after introducing the recycling program at
the Hilo Basey:ard last year, Ms. Myhre and Ms. Aton kicked the program off at the Waimea
and Kona Baseyards in February. The Hilo program in February, meanwhile, began weighing
the amount of trash diverted from the landfill. Currently- it runs about 200 pounds of trash a
week, including paper, plastic and metal that are non -H15 recyclables. Once Waimea and
Kona Baseyard personnel get more used to the program, their diverted trash will, also be
weighed. 'The diverted trash goes to the County Mixed Waste Transfer Station in Hilo, and the
County bales the trash and ships it to the Mainland for sorting.
3. Transportation Committee —Due to the spike in fuel prices, DWS staff spontaneously
began reducing their amount of driving DWS vehicles. Ms. Myhre noted that fuel
consumption is running about 19 percent less than the same time last year: at 6,100 gallons of
unleaded gas a month currently versus last year's average of 7,500 gallons a month.
Meanwhile, DWS is looking to purchase higher gas mileage vehicles, including possibly
hybrids or plug -in vehicles.
4. Hawai` i Counter Green Team Report —Ms. Myhre said that in December, the
Department of Environmental Management invited County- departments to discuss recycling
initiatives. It was decided to form a County "Green Team" to focus on energy, transportation,
waste and construction issues, to provide support and recommendations within the County.
The next step is to approach the new Mayor to make sure that he is on board.
J. CHAIRPERSON'S REPORT:
Chairperson Smith introduced the following two items:
A. Discussion and approval of Travel Polic y for Board members Chairperson Smith
worked on a travel policy proposal with Vice - Chairperson Mukai, in an effort to show fiscal
responsibility. (See attachment). For travel to the AWWA conference in San Diego, there will
be a hierarchy of which Board members may attend. The Manager said the Department can
fund 5 (five) Board members. The Chairperson proposed that he and the Vice - Chairperson
should attend, with preference then given to the members with the shortest terms remaining on
the Board. New members Mr. Taniguchi and Mr. Lindsey would be excluded, and Ms. Kim
has said she cannot attend.
Mr. Kuailani asked what format the post - conference reports should follow. Ms. Garson
offered to share samples of post -trip reports she has done. Chairperson Smith said it was
important to show documentation after taking trips on County funds to illustrate the usefulness
of attendance at conferences. fle asked for and received consensus on the Travel Policy.
Chairperson Smith urged Board members who do not attend the San Diego conference to go to
the state convention in Honolulu in May. Because DWS is the host of the HWWA conference
in Waikoloa in October, all Board members should plan to attend. Chairperson Smith also
Page 23 cf 24 Rater Board Minntes - 2 -24 -C9 Meeting
received the Board's concurrence with Nts. Kim's memo item #3 which encourages the
Chairperson and 'ice- Chairperson to attend all three of these events.
B. Discussion on lunch protocol after Board meetings Chairperson Smith expressed
concern that post -Board meeting lunches at restaurants might raise negative comment from the
public. To be a little more fiscally restrictive, he suggested bringing in lunch such as bentos.
He suggested that the year -end Board luncheon could be a restaurant mea[ which the Mayor
might attend. Mr. Harai, noting that. he has difficulty staying for lunch on Board meeting
days, said bringing lunch in was a good idea.
ANNOUNCEMENTS:
1. Next Meeting:
The next meeting of the Water Board will be held on March 24, 2009, at 9:40 a.m., at the
Waimea Community Center (next to the Ball Park); 65 -1260 Kawaihae Road, Kamuela,
Hawaii. This will be preceded at 9 :30 a.m. by a Public Hearing on the Department's proposed
FY2009 -2010 Operating and C [P Budgets. A site visit to the mauka reservoirs and the
Clearwater tank is scheduled to follow a bento lunch after the regular Water Board meeting.
Ms. Garson said a field trip would be considered part of a Board meeting, so Minutes will be
taken to comply with the Sunshine Law. She said she would work on writing the field trip into
the March 24 regular Water Board meeting Agenda. The public can attend the site visit as part
of the Board meeting, she said.
2. Following Meeting:
The Board chose to hold its April 28, 2009 meeting at the Department of Water Supply
Baseyard, Operations Center Conference, 889 Leilani Street, Milo.
ADJOURNMENT:
ACTION: Chairperson Smith called for the meeting to be adjourned. Mr. Harai so moved;
seconded by Mr. Kuail.ani, and carried unanimously by voice vote. Meeting adjourned at 12:22
P.m.
Senior Clerk - Stenographer
Tlic Department oflfater Supply is an Equal Opportunit}° ein.ployer anti provider.
Page 24 ot'7.4 water Board Minme, - 2 -24 -69 Meet.ina