HomeMy WebLinkAbout2026-04-28 Water Board Meeting Minutes MINUTES
DEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAI`I
WATER BOARD MEETING
April 28, 2026
Department of Water Supply, Hilo Operations Base Yard, 889 Leilam Street, Hilo,Hawaii
MEMBERS PRESENT: Mr.Michael Kekela Jr., Chairperson, Dist.4
Mr. Keith Unger, Vice-Chairperson, Dist. 6 (via videoconference)
Mr. Colin Miura, Water Board Member, Dist. I
Mr. James Lee, Water Board Member, Dist. 2
Mr. Guy Alameda, Water Board Member, Dist. 3
Ms. Emily Taaroa, Water Board Member, Dist. 5
Mr. Stephen Lopez, Water Board Member, Dist. 8 (via videoconference)
Mr.Philip Aiona,Water Board Member, Dist. 9(via videoconference)
Mr. Keith K. Okamoto,Manager-Chief Engineer,
Department of Water Supply(ex-officio member)
ABSENT: Director,Planning Department(ex-officio member)
Director, Department of Public Works (ex-officio member)
OTHERS PRESENT: Ms. Diana Mellon-Lacey,Deputy Corporation Counsel
Dr. Jeff Zimpfer,NPS, guest
Ms. Ann Hajnosz, Harris &Associates (via videoconference)
Mr. Dean Nakano, Brown& Caldwell (via videoconference)
Ms. Jennifer Myers, Brown& Caldwell(via videoconference)
Ms. Audrey Cabrera, Brown & Caldwell(via videoconference)
Ms. Mary Economy, Brown & Caldwell(via videoconference)
Ms. Lauren Armstrong, Brown & Caldwell
Ms. Michelle Sorensen, Brown & Caldwell
Ms. Beverly Medeiros
DEPARTMENT OF WATER SUPPLY STAFF:
Mr. Kawika Uyehara, Deputy
Mr. Gregory Goodale, Chief of Operations
Mr. Alvin Inouye, Water Operations Superintendent
Mr. Eric Takamoto, Mechanical Engineer III
Ms. Shari Uyeno, Assistant Engineering Division Head
Ms. Candace Gray,Waterworks Controller
Mr.Warren Ching, Civil Engineer IV
Ms. Maraea Keamo, Senior Clerk Stenographer
Ms. Lindsey Tabandera, Information Systems Analyst IV
1) CALL TO ORDER—Chair Kekela called the meeting to order at 10:00 a.m. Board Members who were
present: Ms. Taaroa and Messrs. Miura, Lee, Alameda,Unger, Lopez, Aiona, and Chair Kekela.
2) STATEMENTS FROM THE PUBLIC—Pursuant to HRS §92-3, oral testimony may be provided entirely at
the beginning of the meeting or immediately preceding the agenda item. There were no statements from the
public at this time.
3) APPROVAL OF MINUTES:
Minutes of March 24, 2026, Water Board Meeting:
ACTION: Mr. Lee moved for approval of the Minutes of the March 24, 2026, Water Board
meeting; seconded by Ms. Taaroa and carried unanimously by voice vote (Ayes: 8 —Board Members Miura,
Lee, Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
4) APPROVAL OF ADDENDUM AND/OR SUPPLEMENTAL AGENDA—None.
5) STRATEGIC AND BUSINESS PLAN UPDATE BY BROWN AND CALDWELL:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the agenda
item.
MS. ARMSTRONG: Thank you for having us back today to give an update on the Strategic and Business
Plans.We are approaching the end of the first phase of work,which is setting the framework with Effective
Utility Management, so using that toolkit as our guiding principles. What we want to do today,if we can go
to the agenda slide,is take a quick minute to review some of the key takeaways from the EUM assessment
that the Board and staff have participated in since October of last year.
I want to also share some high-level themes from interviews that were conducted in April with our leadership
team. We used those interviews to really refine the EUM assessment from the survey. Then I want to talk
about the next steps that are outlined in our framework for the Strategic and Business Plan update.
Just as aproject overview,in this first phase,we've been focused on assessing where the Department stands
relative to the EUM framework. We've also gotten strategic direction from you at the Board, and we've been
refining a path forward for the plan update. Last fall, last November,the Board participated in a survey to
rank the ten EUM attributes from most to least important, and then staff were also surveyed on the
importance of the attributes as well as how the Department is achieving in each of them. The survey results
were combined, analyzed, and presented to the Board in February, and that helps us identify priority areas to
focus on,where we want to really move the needle for the Department. Since then,we've been working with
leaders and staff to discuss the results and get additional input to inform our direction and activities in Phases
Two and Three,which are coming up for actually creating the Strategic and Business Plans.
Just to recap from February, some takeaways from the Board and staff Effective Utility Management surveys,
again, all of the attributes are important and will be addressed in some manner through the plan,but this
colored chart,this is one of the EUM tools,this helps us prioritize which attributes to focus on. The orange
area includes the important and lower-achieving attributes. These were Water Resource Sustainability,
Operational Optimization, Infrastructure Strategy and Performance, and I want to note that Workforce
Development also came up as apriority for strategy development, so these four came up to the top. You'll see
that there are others, Regulatory and Reliability Performance, Financial Viability,that are already performing
well, and that we can really build on success in those areas.
How we're using the EUM survey results to guide the update,we've grouped the attributes into buckets. The
Priority Attributes will be the key focus areas for strategies and specific goals. Build on Strengths,those are
the areas I mentioned where the Department is already performing well, that we can kind of leverage to move
forward. The column for Align Expectations, this is a chance to build our internal understanding around what
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success looks like in areas like Enterprise Resiliency, Stakeholder Support, and Community Sustainability.
So, like I said,we are going to explore all of these attributes through the plan,but these are the lenses we're
suggesting.
Next, I want to share some of the leadership team interview results. The purpose of the interviews was to take
a deeper dive into the assessment and really talk with the leadership team members about values,vision,
strengths, and challenges for each division, as well as the Department as a whole. These were really valuable,
I think,just getting a sense of where different people are focused and their priorities right now, and thinking
about how we can effectively come together in the Strategic Plan. Some of the key themes that I'm going to
share today are guiding the framework for how we put the plan together.
First, I want to share some thoughts around vision and mission. So, the vision and mission still resonate and
are used daily within the Department. It's used for onboarding; several people had it posted on their wall for
clear reference, and in talking with different staff, they're all rooted in shared values to serve the community
with safe drinking water. Feels like that's a very strong sense of purpose for staff here. It does seem like
there's an opportunity to further discuss in a group setting to refine the vision and mission and draw out little
catch phrases,ways that it can be even more present in daily work for staff.
To highlight some of the strengths, across the divisions, many people noted the semi-autonomous structure as
a major plus for strong and continuous leadership, and generally good alignment between the Board and the
Department to be able to efficiently carry out its functions and serve the community. Many people also
mentioned teamwork and camaraderie among staff and unity around a shared purpose. Another strength of
the Department is its responsiveness and ability to maintain continuity of service, so responding quickly to
incidents. Fiscal responsibility is also a pillar of Department culture that has contributed to its success. There
are probably many other strengths,but those were kind of the ones that rose to the top.
Next, I want to talk about some of the challenges that were discussed. They're not just challenges,they're
opportunities. We know around workforce development and staffing,recruiting,hiring, and training, staff,
keeping them motivated, especially through changes in what they are expected to do in their job,it requires
effort, and it's not a bad thing; it's a natural part of an organization. There was general acknowledgement that
yes, this is something that we need to work on together. Then, succession planning, with the number of key
folks nearing retirement, succession planning is critical, and I know it's on people's minds. Technology
adoption for modern workflows is, I think, for many agencies a continual challenge. Also looking at changing
regulatory requirements and uncertainty around external funding, that could impact the Department's focus
and needs moving forward. So,keeping an eye on those areas.
Next, I want to talk about opportunities. So,on the flip side of the challenge of technology adoption,it's
worth it because when you do these upgrades to cloud-based applications,potentially new finance software,
it's really an opportunity to optimize operations, and that was one of the top attributes, the priorities for the
Department, so,really supporting new workflows. Communication came up as an important topic that could
be expanded to reach more people in new ways. Asset management is evolving to try to centralize the
infrastructure data, do real-time condition tracking, and really inform a proactive maintenance schedule. I
think planning for water use and development, long-term capital needs, all of that can be accomplished with
the Board and the community. Another opportunity I wanted to highlight is continuing the coordination
across divisions, so this idea of updating the financial system as a kind of a catalyst and organizing principle
for other upgrades throughout the Department,that's something that we can explore with the leadership team
and with the Board. An interesting note that came up was the opportunity to coordinate with county
departments, like environmental management and public works, on projects involving varied infrastructure,
maybe identifying opportunities for shared work and avoiding redundancy. Lots of great opportunities for the
Department.
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The next piece I wanted to share are some insights on the survey results themselves. Many folks commented
that all of the attributes are important;it's tough to rank one over the other. Water Resource Sustainability
does deserve attention;it's important to protect the water resources that the Department relies on. Workforce
Development is certainly important;it's fundamental to achieving the other aspects of the work. Operational
Optimization and Infrastructure Performance also felt like good priorities when looking at the survey results.
One of the last questions in the interviews was how can the Strategic Plan help you? We want to make this
effort relevant to people working in various functions in the Department. Folks felt like the plan can be
helpful to really define common goals. What are the priorities and direction for the Department? How do we
incorporate these into our everyday actions and make it relevant to staff? Along those lines,we thought it
would be good to include staff input from throughout the organization and think about ways to build and
sustain their engagement in creating and implementing the plan. The plan can also help support those
leadership transitions with succession planning. Then, finally,people felt that the Strategic Plan and the
Business Plans are a great way to track progress. So,how are we doing on our progress towards reaching the
goals and really being able to communicate the results to the Board and the public, and make adjustments as
needed. Any questions on the interview results or the topics there?
MR. LOPEZ: Did I hear you say that the strategic vision and the mission statement are going to deserve some
further tuning?Did I hear that?
MS. ARMSTRONG: Yes, I think they do merit a little further discussion in a group setting to see if there are
certain elements that we could draw out as sort of shorter catchphrases that the Department can use in
different settings or if there are any elements of the mission that could be refined further.
MR. LOPEZ: Just to draw a stake in the ground for myself, the strategic vision, and this is just for a note,it
doesn't need a discussion now, on the last phrase "satisfy the water needs of the County of Hawaii", I don't
see that we're doingI know we'd like to do that,but there are a lot of instances where water needs are not
being met for very good reasons, financial, there's a lot of constraints,but I think that phrase needs to be
looked at in a better light. That's all, I just wanted to comment before we got too far.
MS. ARMSTRONG: Thank you.Now, I'll just wrap up by talking about some next steps for the plan
development. This graphic here talks about the steps to create the Strategic and Business Plans. We are
currently in the framework step, those first two in the beginning.We're getting grounded in the vision, the
priority attributes, and core issues for the Department.Next, to develop the Strategic Plan,we'll work
through strengths,weaknesses, opportunities, and challenges in more detail and define goals, objectives, and
actions. I want to note on the time horizon, the first five years of the plan will focus on priority actions,but
will also document long-term strategies for more of a 20-year-plus horizon. Finally, the Business Plan will
identify who,how, and when the actions will be initiated and measured for tracking progress. So, throughout
this whole process, change management and communication are very important, so we will be continually
working with staff and the Board to maintain alignment as we go through the process.
MS. MEDEIROS: I'm Beverly Medeiros,owner of JB Water Hauling.My question is,under this developed
Strategic Plan,you have these opportunities and challenges,your focus groups,is it only within the
Department that you're asking, or are you asking the community?
MR. OKAMOTO: Good question. For now, the Department,but there will be opportunities, I think,for
community engagement throughout this process as well. One of the ten attributes is Community
Sustainability, and although it hasn't floated to the top as one of our priorities that we're going to focus on
this effort,but as you know, this is a public forum, and the community is welcome to participate every month
at our Water Board meetings. Any time we do a rule change, adjustment to rates, or any charges that the
Department and the Board implement are opportunities for community engagement also. At any time,
Beverly,you know us,you have a concern, send it in, and we'll definitely take it because we've worked with
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you for I don't know how long already. You're a well-established customer of ours,well respected, and you
don't have to wait for an official—look at Mr. Zimpfr,he participates at almost every Board meeting. We
welcome that at any time.
MS. MEDEIROS: Thank you.
MR. LEE: Before we move on, under Develop Business Plan,you have reevaluate. So, that allows—because
this allows some evolution of the plan, like, for new Board members too,because by 5/27 we're going to
have new Board members, so they're going to be allowed to make their input into this document? I know we
need a milestone and 5/27 is the milestone,but
MS. ARMSTRONG: I think the idea with this continual improvement is that a part of it is the Business Plan
is annual, so that's a chance to give input on what should be the specific priorities for that year,but it's
guided by the broader strategic vision,which you might revisit on a five to ten-year basis.
MR. OKAMOTO: Good question.
MS. ARMSTRONG: So,just a draft schedule for continuing this work, I just wanted to note that the schedule
and outputs from the Strategic and Business Plans will tie into financial planning for the Department.We'll
be drawing on key findings to inform the budget priorities and potential rates. That portion of the planning
will be wrapped up by calendar year`26,but we'll continue the Business Plan in 2027 to really dial in those
specific roles and responsibilities implementation. The Board will be engaged at various points in the process,
including presentations on the Strategic Plan and the Business Plan, so you can see those key milestones, the
steps that I talked about to get us to the Strategic and Business Plans. We are excited to continue this work.
I just have one last note on engagement methods. We have planned to do surveys,focus group sessions,
workshops, and Board meetings as a continued venue for discussion around the Strategic Plan. I'm happy to
take any questions,but I know you have a lot to cover. Thank you for having me.
6) POWER COST CHARGE:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the agenda
item.
Departmental power costs recovered had increased since the last Power Cost Charge rate was determined.
The Department proposes to decrease the Power Cost Charge from $2.84 to $2.53 per thousand gallons as a
result of this increase.Power cost charges over the past year were as follows:
Effective PCC
March 1, 2026 $2.84
November 1,2025 $2.98
June 1,2025 $2.08
February 1, 2025 $2.32
Before the Power Cost Charge is changed, a Public Hearing shall be scheduled to accept public testimony.
RECOMMENDATION: It is recommended that the Board approve holding a Public Hearing on May 26,
2026, at 9:45 a.m., to receive testimony on decreasing the Power Cost Charge from $2.84 to $2.53, effective
June 1,2026.
MOTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr. Lee.
MS. TAAROA: I'm curious, are you guys planning for some major power increases with the cost of gas, or
not too sure?
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MR. OKAMOTO: Yes,we're anticipating.
MS. TAAROA: There's a delay, though?
MR. OKAMOTO: Yes.It's a delayed evaluation on prior,how many months?
MR.UYEHARA: Four.
MR. OKAMOTO: Four. So,we'll see what happens after the next evaluation.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee, Alameda,
Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
7) 14AMAKUA:
A. JOB NO. 2023-1219, HAINA BOOSTERS A, B & C REPAIR:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
This project generally consists of furnishing all labor, materials, tools and equipment necessary to remove
the existing booster assemblies;install Contractor furnished multistage inline booster pumps, motors with
motor stands, and all appurtenant materials; seal off the existing suction can and install pump mounting
stand,inclusive of concrete work; complete an efficiency and vibration test; daily clean-up of the job site
at the conclusion of each work day; and perform all incidental work necessary to complete repair in
accordance with the specifications.
Bids for this project were opened on April 9,2026, at 2:30 p.m., and the following are the bid results:
Bidder Bid Amount
Alpha Inc. $585,690.00
Derrick's Well Drilling &Pump Services $370,866.00
Hawaii Drilling &Pump Service, LLC $348,600.00
Jas W. Glover NO BID RECEIVED
Project Costs:
1) Low Bidder(Hawaii Drilling &Pump Service, LLC) $ 348,600.00
2) Contingencies(10.0%) $ 34,860.00
Total Cost: S 383,460.00
Funding for this project will be from DWS's CIP Budget under Deepwell Pump Replacement. The
contractor will have 180 calendar days to complete this project. The Engineering estimate for this project
was $260,000.00.
Booster History:
Haina Booster A:
Original Installation: Pre-1980
Haina Booster B:
Original Installation: Pre-1980
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Haina Booster C:
Original Installation: August, 1983
RECOMMENDATION: It is recommended that the Board award the contract for JOB NO. 2023-1219,
HAINA BOOSTERS A, B & C REPAIR, to the lowest responsible bidder, Hawaii Drilling&Pump
Service, LLC, for their bid amount of$348,600.00,plus $34,860.00 for contingencies, for a total contract
amount of$383,460.00. It is further recommended that either the Chairperson or the Vice-Chairperson be
authorized to sign the contract, subject to review as to form and legality by Corporation Counsel.
MOTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr.Miura.
MR. OKAMOTO: As you can see from the booster history, they've lasted quite a while.We don't
anticipate that kind of life span nowadays,but it's very impressive.If you have any technical questions,
Mr. Takamoto is available.
MS. TAAROA: I'm pleased to see three bidders;you don't usually see that. It gives a better picture.
MR. LEE: Derrick's is usually closer,but they came in kind of high.
MR. OKAMOTO: It was close. Alpha was a little high,but we were encouraged by their participation.
MS. TAAROA: That's the one from Maui?
MR. OKAMOTO: Yes.
CHR. KEKELA: Can you explain the difference between the Department's engineering estimate and
what was bid?
MR. OKAMOTO: I will try, and Eric or Greg can chime in. I think we did have some challenges trying
to anticipate the cost. Again, still with the fluctuating prices that we've been seeing recently, and the fact
that these boosters were almost as old as I am. Other than that, I think now we'll have better numbers to
refine future estimates.
MR. TAKAMOTO: It also involved something that we normally don't do,which is converting from an
in-can booster to an above-the-ground booster,which we don't have good numbers for.Normally,we
have a booster that's called in the can. Think of it as a pipe that's blocked off on the bottom that's in the
ground; the pump sits inside of that. What we are going to do is convert it,block off the can, and the new
pump is going to be sitting above the ground now.
MR. OKAMOTO: The old layout was vertical; the pump is standing upright, the pump bowls, and then
the motor on the top,but it goes through the can.
MR. TAKAMOTO: Yes.Water comes in,it goes through the can, gets sucked up the pump, then goes
out the other side of the booster.Now, the pump is going to be above ground, so it's just going to go
straight across,no can.
CHR. KEKELA: Is there a reason for changing the technology?
MR. TAKAMOTO: Yes. The boosters are more easily accessible, and they are more off-the-shelf type of
equipment. The booster station is not used as often, so that type of equipment is more suitable for that
application.
CHR. KEKELA: I know boosters and well motors are different,but is this an attempt to standardize
booster technology for the Department?
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MR. TAKAMOTO: This particular booster is more standard and more off-the-shelf, so we'll be able to
do repairs more quickly.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
8) NORTH KONA:
A. MAINTENANCE BID NO. 2026-11, REPAIR&MAINTENANCE OF KAHALU`U SHAFT
INCLINED LIFT:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
This project consists of furnishing all transportation, labor, equipment,tools, and consumable materials
necessary to provide quarterly maintenance and repair services to the inclined lift system and its related
appurtenances at the Department of Water Supply's Kahalu`u Shaft facility for a period beginning July 1,
2026, through June 30, 2030.
Bids for this project were opened on April 16, 2026, at 1:30 p.m., and no bids were received.
NO BIDS DWS Engineering
RECEIVED Estimate
Item 1 —(16 Qtr.) The rate of performance for this
contract shall be per quarter(every 3 months). Such rate
shall include all applicable taxes,per diem expenses,
transportation expenses, and all other related expenses
that are necessary in the execution of the full NO BIDS $40,000.00
performance of the services as specified in this
specifications, complete and operable.
Based on this quarterly rate, the full 48-month contract
amount shall beequal to (Quarterly Rate x 16 trs .
Item 2—(500 Hr., As-Needed Basis) Emergency call-out
repair service with response on-site within thirty(30)
hours of the service call at the request of the Department
of Water Supply for services beyond the quarterly
scheduled services performed per hour(minimum crew)
which shall include all applicable taxes,per diem
expenses,transportation expenses, and all other related
expenses that are necessary in the execution of the full NO BIDS $270,000.00
performance of the emergency service call.Materials and
machining services necessary shall be paid separately
from materials and machining allowance below.
It shall be understood that should there be any overtime
work, only the mechanics hourly rate shall be multiplied
by one and one-half(P/z) times and applicable taxes to
the new overtime rate.
Item 3 —(Lump Sum) Materials and machining
allowance for parts expenses associated with Item 92 NO BIDS $100,000.00
above,upon review and approval by the Proect
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Engineer. Allowance shall be set at$100,000.00.
Payment shall be conducted by force account.
RECOMMENDATION: It is recommended that this bid go out for Alternate Procurement pursuant to
HAR 3-122-35, as no responsive bids were received, and it would not be advantageous to the Department
to issue a new solicitation.
MOTION: Mr.Miura moved for approval of the recommendation; seconded by Ms. Taaroa.
MR. OKAMOTO: This does require maintenance on a regular basis, and it has been maintained. The
current contract is with a company, Kone. This is an unusual one.I think we encountered no bids on the
last one as well.
MR. TAKAMOTO: Yes.
MR. OKAMOTO: I think we'll go through the alternate procurement process. I just want to assure the
Board that we are confident that we'll have a contractor that we can work with to do the work; it's just
that, for whatever reason,we didn't receive an official bid from anyone.
MR. MIURA: Can you tell me more about what an alternate procurement is?
MR. OKAMOTO: I'll try, and maybe Diana can fill in any gaps. We're governed by state law on how we
purchase goods,materials, and labor. There are different forms of procurement that we employ,
competitive sealed bidding,which is when we put out something like this,then we get sealed bids,open
them at a certain time, and award it to the lowest bidder at a Board meeting. There are also requests for
proposals where the scope is a little harder to figure out; that's a different process, and it's more of a
qualitative process,where it's not just the lowest bid gets awarded,you have different criteria. Cost is
always one of the factors. Then there's small purchase, sole source,professional services, all governed by
state statute. When we go through a bid process that's authorized, like this one was a competitive sealed
bid and nobody bids,but we still have to get the work done, at least the law allows us to proceed by
giving us an option of alternate procurement,which I believe comes in several forms. We can do direct
negotiation, or we can do an informal negotiation by reaching out to vendors we know can do that work
and seeing if they are willing to abide by the terms of the contract. We still have a contract that they'll
sign off on,it's just—
MS. MELLON-LACEY: I think in the normal course,the Department isn't allowed to reach out to
specific vendors because then, that can lead to people picking their favorites or their friends, and also the
idea is to try and make it as broad as possible so that anybody that does this kind of work has the chance
to bid and get a chance to do it. So, this really changes the game, as it lets the Department reach out
directly. Sometimes there are people who don't bid on stuff like this; they don't have the capacity to
maybe deal with paperwork, or it's just not something they do,but they're capable of providing the
service. It still has to be procured at what's considered a fair and reasonable price, so the Department still
has to do its due diligence to make sure it's not overpaying,it's not favoring some particular person,but
it just kind of opens the door and lets the Department take a more proactive stance than they are normally
allowed to do.
MR. OKAMOTO: Just like Diana said, I think a lot of these procurement laws came about because
maybe there was some fishy stuff happening prior,where people would just give government contracts to
people they may have known. I believe the laws and regulations came out to make sure it's fair,
equitable, and no favoritism,but we still have to get the work done, so at least they were wise enough to
allow this alternative should conditions like this come up.
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MS. MELLON-LACEY: You also have to have good documentation on why you did it.In this case,we
have a procurement file to show that we put this thing out and how we tried to get people,but couldn't.
We can't just say we're going to do alternate procurement.
MR. LEE: If you increased the budget amount,would that make a difference?It's based on your
engineering cost, right, the budget?
MR. OKAMOTO: Our estimate is based on the work that we need to get done;it's our best guess.I think
for this type of work, I think Diana might have mentioned, some companies aren't used to looking for
these advertisements for bids, so they may have missed the deadline. That's just a guess. Some of them
are just busy doing what they are doing already,but they are willing to do this work if we reach out to
them.
MR. MIURA: Your engineering scope of work, or estimate, that's mostly internal?
MR. OKAMOTO: Yes.
MR. MIURA: It's not open,where they can see what your estimate is?
MR. OKAMOTO:No,we reveal what our engineering estimate is. What we really try to do is lay out the
scope as best as we can so that they know what they're bidding on. With this one,we're fairly confident
in the estimate because we have an existing contract with the company that is doing the work already,
unless they decide to really change some of their prices. Hopefully,we're fairly close on this one.
MR. ALAMEDA: Aside from what you're talking about now,I just want to say that I had a great
experience there, at the Shaft. Thank you guys very much for planning all of that and ensuring that we
were safe in the area and using the incline to get down there and come back up. For the Department as a
whole, from my point of view,what I saw there with the workforce and you guys, and going back to the
Strategic and Business Plan update prioritization and framework, a point to teamwork, good morale
amongst the workers. Also, leadership, the whole experience aside from the Shaft itself and everything
we saw down there,the pump, the well, and everything,it was a good tour for me. I was amazed,
impressed; thank you very much for that. Continue the good work relationship and teamwork.
MR. OKAMOTO: Thank you for that, Guy.I think part of keeping our workers willing and able to do it
happily is making sure everything works properly. As you probably know,it's frustrating when there are
things to do, and the equipment isn't working like it's supposed to. You've seen how big the pumps and
motors down there are; a human can't bring that down. A credit to the staff for continuing to stay on top
of these kinds of maintenance requirements.
CHR. KEKELA: How often would you see a call for maintenance throughout the four years? I'm
assuming the last contract was for four years.
MR. TAKAMOTO: Yes.We're doing it by quarters, so 16.
MR. OKAMOTO: This is scheduled maintenance,but if something goes down,we have provisions for
that too.
MR. TAKAMOTO: We have it for emergency services and allowance for any parts that may be required.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
Page 10 April 28,2026,Water Board Minutes
9) MISCELLANEOUS:
A. DEDICATION OF WATER SYSTEMS:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
The Department received the following documents for action by the Water Board. The water systems
have been constructed in accordance with the Department's standards and are in acceptable condition for
dedication.
1. Grant of Easement and Bill of Sale
PL-SUB-2023-000143
Grantor/Seller: Clinton Hinchcliff Jr.
Tax Map Key (3) 7-3-024:008
Kaloko,North Kona, Island of Hawaii,Hawaii
Facilities Charge: $36,570.00 Date Paid: 7/31/2025
Final Inspection Date: 7/7/2025
Water System Cost: $216,000.00
2. Grant of Easement and Bill of Sale
PL-SUB-2023-000139
"Hikina Lam Subdivision"
Grantor/Seller: RJL LLC
Tax Map Key (3) 2-4-039:057, 058, 087, and 093
Waiakea, South Hilo, Island of Hawaii,Hawaii
Facilities Charge: $292,560.00 Date Paid: 6/3/2025
Final Inspection Date: 12-23-2025
Water System Cost: $296,996.04
RECOMMENDATION: It is recommended that the Water Board accept these dedications, subject to the
approval of the Corporation Counsel, and that either the Chairman or the Vice-Chairman be authorized to
sign the document.
MOTION: Mr.Lee moved for approval of the recommendation; seconded by Ms. Taaroa.
MR. OKAMOTO: Real quick, I'll cover generally why we go through this process, and then if there are
any specific questions,we have Shari available to answer. Basically,when a developer develops a
subdivision or whatnot,part of the requirements is to put in infrastructure. They put it in, they pay for it,
they install it to our standards,then we go and inspect it and make sure it was installed correctly using the
right material. After it's done and they finish the construction, they have to dedicate it to the Water Board
so that now it's under our operational and maintenance and whatnot. If it's in a public road right-of-way,
we don't need a grant of easement.If it's a private road or maybe it's prior to the official dedication of
the road to the county,we'll need a grant of easement so we can legally go and do work on the
infrastructure if we need to,including dropping meters and whatnot. That's what this action is for. The
construction is done, and they are ready to dedicate it to the Water Board so that the Department can now
operate and maintain the infrastructure to provide the water service to this new development.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8 —Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
Page 11 April 28,2026,Water Board Minutes
B. DEPARTMENT OF WATER SUPPLY PROPOSED OPERATING AND 5-YEAR CAPITAL
IMPROVEMENT PROJECTS (C.LP.) BUDGETS FOR FISCAL YEAR 2027:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
The Department's Fiscal Year 2027 Operating Budget, totaling $83,525,795.00, and 5-Year C.I.P.
Budget for Fiscal Year 2027-2031,totaling $261,500,000.00,have been distributed for the Board's
review. A public hearing was held prior to this meeting to accept testimony. The Board may change
either Budget or adopt them as presented over two readings.
RECOMMENDATION: It is recommended that the Board approve the Department's Fiscal Year 2027
Operating and C.I.P. Budgets on this first of two readings.
MOTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr.Miura.
MR. OKAMOTO: Essentially, for the C.I.P. Budget,it's our best guess for the total amount of projects
that we need to do over the next number of years. It's an estimate.
MS. MEDEIROS: Is there anything in this 5-year project for water haulers,for stand pipes, spigot usage,
anything? Everyone knows there are just two locations for all the water haulers on the island.
MS. MELLON-LACEY: Excuse me, Mr. Chair, this is really off topic.We've had the opportunity for
this to be presented to take comments, and it's now being considered for approval.I think that's not an
appropriate question to entertain, given where we are in the agenda.
MS. MEDEIROS: Okay, sorry.
MR. OKAMOTO: It's alright,we can talk story later.
CHR. KEKELA: These projects are Department priorities,but something like that,please reach out to
Keith or Kawika, and they can work with you.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
C. RENEWAL OF CONTRACT FOR MAINTENANCE AGREEMENT—SOUTH KOHALA,
HAMAKUA,AND LAUPAHOEHOE SITES (BRANTLEY CENTER, INC.):
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
Brantley Center, Inc.,presently has a Maintenance Agreement for site maintenance for the Department's
South Kohala,Hamakua, and Laupahoehoe tank and pump sites. We are requesting to renew this
Agreement from July 1, 2026, to June 30, 2027. The rates would be as follows:
South Kohala - $4,475.68/month x 12 months (23 sites) = $53,708.16
Hamakua - $2,944.16/month x 12 months (15 sites) = $35,329.92
Laupahoehoe - $738.48/month x 12 months (3 sites) = $8,861.76
Total: $97,899.84
The Department has the right to award the contract to Brantley Center,Inc.,without advertising or calling
for bids, according to Subsection 103D-1010 of the Hawaii Public Procurement Code. Brantley Center,
Inc.,has submitted the necessary documents to meet the requirements as a qualified rehabilitation
Page 12 April 28,2026,Water Board Minutes
facility. There is no increase from their proposal for Fiscal Year 2021-2022. Brantley Center's
performance has been satisfactory, and the costs are reasonable. A total of 41 sites are covered by this
agreement.
RECOMMENDATION: It is recommended that the Board award the contract for the RENEWAL OF
CONTRACT FOR MAINTENANCE AGREEMENT—SOUTH KOHALA,HAMAKUA,AND
LAUPAHOEHOE SITES,to Brantley Center, Inc.,for a period from July 1, 2026,to June 30, 2027, at a
total cost of$97,899.84, and that either the Chairperson or the Vice-Chairperson be authorized to sign the
documents, subject to approval by Corporation Counsel.
MOTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr. Miura.
MR. GOODALE: The last increase we had was actually in 2023, and they've been pretty consistent.
They haven't had big jumps or fluctuations in any of their pricing.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
D. MEMORANDUM OF AGREEMENT(MOA) FOR THE EMERGENCY STANDBY GENERATOR
AT KEAHUOLU WELL:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
The Department of Water Supply(DWS)is proposing to enter into a MOA with the Hawaii
Emergency Management Agency to facilitate the allocation of FEMA Hazard Mitigation Grant
Program funds to DWS' Emergency Standby Generator at Keahuolu Well project. This project
involves the design and installation of a generator and supporting infrastructure at Keahuolu Well in
North Kona. The federal share will be 75% of the total project cost,not to exceed$825,000.00. DWS
share will be a 25%match.DWS will be responsible for the procurement of the professional services
and construction.
Federal Share (75%): $ 825,000
DWS Share (25%): $ 275,000
Total Est.Project Cost: $1,100,000
RECOMMENDATION: It is recommended that the Board approve the MOA with the Hawaii
Emergency Management Agency for the Emergency Standby Generator at Keahuolu Well, and that
either the Chairperson or the Vice-Chairperson be authorized to sign the MOA, subject to review as
to form and legality by Corporation Counsel.
MOTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr. Miura.
MR. OKAMOTO: I want to give credit to Warren for really going after this funding. It's our ongoing
effort to provide backup power sources for our critical facilities.As you can see,there's a program,
FEMA Hazard Mitigation Grant Program, that provides funding for projects like this, and the great deal
is that we get it at 75% off. This MOA is needed for us to access the funds.
MS. TAAROA: So,you've already got it approved?
MR. OKAMOTO: Through HIEMA and FEMA.
Page 13 April 28,2026,Water Board Minutes
MR. MIURA: Earlier,you had mentioned portable standby generators. Does FEMA have any funding for
that?
MR. OKAMOTO: They could. This particular example will not be one of those.
MR. CHING: This generator will be stationary since this was identified as a key site for us.
MR. OKAMOTO: They would provide funding for portable-type generators,too,if it qualified for their
program.
MR. MIURA: Hopefully,we can look into that.
MR. OKAMOTO: Yes.Warren is already looking into the two 500kW ones.
MR. CHING: It wasn't through this program,but we have gotten portable generators from FEMA in the
past.
MR. OKAMOTO: I believe Warren has also solicited and was successful at getting transfer switches with
external funding. Was it this same funding?
MR. CHING: Yes. We've gotten transfer switches through this Hazard Mitigation Grant Fund, and for
us, this was a good place to start because that's needed to operate the generator and power up our site.
MR. OKAMOTO: This one will include the work to procure,place the generator, as well as outfit the
control building so that we can plug the generator into the
MR. CHING: Yes. So this scope will be to place the generator on a pad and electrically connect it to our
building so it's ready to go when we need it.
MR. OKAMOTO: Great program.
CHR. KEKELA: Was this site determined because it was a hotspot for outages?
MR. OKAMOTO: It's a key well that has a large service area. It can go north and south, as well as feed a
sizable service area makai.It's one of our key wells in north Kona.
CHR. KEKELA: What region in Kona?
MR. OKAMOTO: You know Palam Junction at the top of Palam Road,where it meets Mdmalahoa
Highway up at the top?Near that junction,maybe just south, about 1,700-foot elevation,just south of that
junction, all the way to town. It can adjust,but that's the general area.
CHR. KEKELA: Are funding opportunities like this limited to one site?
MR. OKAMOTO:No. I think Warren mentioned the transfer switch project was for several sites.
MR. CHING: Yes, and we do currently still have an application that's being considered under the same
program, for transfer switches at multiple sites.
MR. OKAMOTO: HIEMA is Hawaii Emergency Management Agency,that's the State Civil Defense
folks over on Oahu. They are the liaison between us and FEMA,the federal agency. It's great that they
have this Hazard Mitigation Funding Program. It covers other stuff too,not just backup generators or
transfer switches,but that's what we found success in accessing these funds for our purposes. We're also
trying to see if we can utilize that funding for some work to rehabilitate and bring one of our reservoirs
above Waimea town to current dam safety standards.
Page 14 April 28,2026,Water Board Minutes
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
E. JOB NO. 2022-1188, IDENTIFY AND APPLY FOR FEDERAL FUNDING OPPORTUNITIES—
REQUEST FOR ADDITIONAL FUNDS:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
The Department is requesting approval to add an additional $75,000.00 to the consultant's current
contract for the work needed to identify and apply for various federal funding opportunities.
Original Contract Amount: $ 75,000.00 (not to exceed)
Additional funding request: $ 75,000.00 (not to exceed)
Total Revised Contract Amount: $ 150,000.00
RECOMMENDATION: It is recommended that the Board approve an increase in the contract amount to
SR Partners, LLC, for JOB NO. 2022-1188, IDENTIFY AND APPLY FOR FEDERAL FUNDING
OPPORTUNITIES. If approved, the total revised contract amount shall be $150,000.00.
MOTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr. Miura.
MR. OKAMOTO: If there are any questions, Kawika can address some of the detailed questions,but
they've helped us strategize and acquire several million in federal funding over the past several years. I
think bang for the buck, several million for$75,000.00 is a good deal, and we'd like to continue that
effort for future opportunities. Kawika,if you want to add anything.
MR.UYEHARA: It's been a contract we've had with a professional service provider who has experience
from Capitol Hill in the past over the last couple of years, and as Keith mentioned,they've helped us
strategize and apply for particularly congressionally-directed spending "earmarks"that have been coming
back the last several years. Fortunately,through their efforts and working with our Department staff,
we've been fortunate in securing some of the earmarks. It's roughly four million dollars so far from
different federal agencies,whether they're from EPA or NOAA. We would like them to continue to assist
our Department in that, and thus, the request for additional funds. As mentioned,it would be on an as-
needed basis.We have regular meetings with them, and as they're directed to help the Department apply
for these funds,then we'll use this additional funding for that.
MS. TAAROA: How does the payment to them work?Are they getting this contract amount no matter
what, or is it what they produce?
MR.UYEHARA: It's based on time and materials. This is a not-to-exceed amount.
MR. LOPEZ: Is this a new contract? Is this an extension to an existing? Why is there the additional
funding? Aside from the part where these guys are doing a great job and we're getting a lot of benefits,
but we're paying them for it. Why is there an additional funding request?What's justifying that?
MR.UYEHARA: It's an existing contract, and the original contract is for$75,000.00, and we're
approaching expending all the funds in the original contract. The request is to add on to the original
contract that we have now.
MR. LOPEZ: Does the contract have an end date when we should expect a new contract?
MR.UYEHARA: There's no firm—
Page 15 April 28,2026,Water Board Minutes
MR. LOPEZ: Is it just ongoing, and we just keep putting money in the bucket? I'm not clear.
MR.UYEHARA: It's a professional service contract, and there is no established deadline on the contract.
I'd have to double-check that. It is for the Department to help us;we need to apply for these funds.
MR. LOPEZ: I understand that part. Where I have the disconnect is you retain a company under a PSA to
provide a certain amount of work for you at a price. So,if it doesn't have an end date,have we done this
before?Is this not the first time that we've done a funding request? Is it just perpetual? I'm not clear if
this is fixed for a certain amount of time, or hourly, or the number of successes they have. I'm not clear
what the funding is compensating for.
MR. OKAMOTO: Maybe I can assist with that. Technically,in a contract,there probably is a completion
date.I don't know what the specified date is on this one. If this is approved,we will process a contract
change order to add to an existing contract. As Kawika mentioned, the original contract was not to
exceed $75,000.00, and how they bill us is basically time and material. Their hourly rate for whatever
task they worked with us to apply for these funds. After they perform that effort, they'll send us an
invoice for the work they've performed. So,it's a not-to-exceed amount,it's only as-needed.
MR. LOPEZ: I think I'm putting it together. You do have a contract for$75,000.00. Because it's on an
as-needed basis,you have nearly exhausted that allocation.Now you're looking for an additional amount
of money to the existing contract to ask for more work,but you don't know when that contract comes up
for renewal.
MR. OKAMOTO: We'll probably put an end date because, legally,we don't like to have open-ended
contracts with no end date.It's not continual; we won't be doing this again for this particular effort. If
anything,if we do need additional funds down the road,it would be more prudent to do a new
procurement, a professional service procurement.
MS. TAAROA: How long did it take to go through that first$75,000.00?
MR.UYEHARA: I think about three years.
MR.UNGER: In line with all these other questions,why do you need a contract with these people? They
sound like consultants. When you need them,you call them, they do the job, they invoice you, and you
pay them. So,what is the purpose of a contract?
MR. OKAMOTO: They actually help us apply for the funds and strategize what funding fits with what
federal program.We don't have the resources and the technical personnel resources to strategize like that.
We know what projects need to get done,but these folks help us figure out which pockets of funding
would be the best fit strategically because this funding is not competitive. There are federal funds
available all the time through a competitive process,but you're competing against every other potential
applicant in the nation. These leverage funds that are available to our congressional delegation, the four
people that represent us at Congress, actually, for us on the Big Island,there's only three, and they have
access to certain funding amounts. It's really helpful to know who to ask and where to seek the funding.
We really benefit way out of proportion to what we pay.
MR.UNGER:No question, and it sounds like a very beneficial relationship. I was just wondering why
are they requiring a contract to hire them?I'm just wondering why the contract structure.Why don't you
just call them up and say we have another job we want you to search for federal grants, log your time,
and we'll pay you when the job is done?
MR. OKAMOTO: That's basically what we're doing,but we require a contract, and that requires a
procurement per state and law requirements,which is a professional services type procurement.
Page 16 April 28,2026,Water Board Minutes
MR.UNGER: So we have to do that in order to hire a consultant such as this? We have to go into a
contract agreement?
MR. OKAMOTO: Yes.
MR. LOPEZ: I think we're continuing to get mired down in the benefits that they offer,which there is no
question about that. But,when you have an agreement,whether it's a contract or a PSA for a fixed
amount, $75,000.00,it must be tied to some we'll provide you with 100 hours, $750 an hour,maybe,
and when you exhaust that,we need more. What are the details of that agreement,in terms of how we
pay for this?
MR. OKAMOTO: Yes,it's on an hourly basis. They provide their hourly rates to us, and when they
invoice us, they have to substantiate how many hours they worked on a particular effort that we
requested.
MR.UYEHARA: It's on their monthly invoices.
MR. LOPEZ: So you do have a measure of the $75,000.00 over whatever period of time you may choose
to exercise it?
MR. OKAMOTO: Yes.
MR. LOPEZ: And we've exhausted that, or near exhausted, and need to put more money into the pot?
And again,based on their effort, the labor, and whatever rate we've agreed to with them,that's where this
money is, and you have a record of that? You're able to track that?
MR. OKAMOTO: Yes.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
F. SUBCONTRACT SUB-2026-10058 FOR THE ENERGY TECHNOLOGY INNOVATION
PARTNERSHIP PROJECT(ETIPP)—ETIPP COHORT 5 TECHNICAL DEEP DIVE TRACK
COMMUNITY SUPPORT:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
The Department of Water Supply(DWS)is proposing to enter a subcontract with the Alliance for Energy
Innovation, LLC,manager and operator of the National Laboratory of the Rockies (NLR) (U.S.
Department of Energy's primary national laboratory for energy systems), to develop a DWS energy
resilience plan with technical assistance from NLR through the ETIPP program. As part of this
agreement, DWS will receive $50,000.00 for services rendered to support this project.
RECOMMENDATION: It is recommended that the Board approve the subcontract SUB-2026-10058
with Alliance for Energy Innovation, LLC for ETIPP Cohort 5 Technical Deep Dive Track Community
Support, and that either the Chairperson or the Vice-Chairperson be authorized to sign the subcontract,
subject to review as to form and legality by Corporation Counsel.
MOTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr. Lee.
MR. OKAMOTO: I am going to ask Kawika and/or Warren to explain this one.
Page 17 April 28,2026,Water Board Minutes
MR.UYEHARA: We put in an application to the County Research& Development Department.It was a
Department of Energy Grant Program. Once the funding opportunity was published, the Department,
along with County R& D, submitted an application. Fortunately,we were approved to be a part of the
fifth cohort for the Department of Energy. So,that's the Federal Agency Department of Energy, and
we're also working with the State's Hawaii Energy Office kind of like the prime for contract. And also
other research laboratories in the Rockies, and Berkeley Lab. Basically,it was an opportunity we got to
get technical assistance from the Berkeley Lab and the National Lab of the Rockies to help us develop an
energy resilience plan. For more of the specifics of that,we can ask Warren. We have had some scoping
meetings with these groups, and there are benefits that the technical assistance we are anticipating getting
is going to help the Department plan for the future energy-wise,particularly when we look at our wells
and our booster stations,where we need to prioritize getting backup generators in addition to what we
already have.
MR. CHING: The national labs we're going to work with—the idea is that they are going to evaluate
some of our sites,most of our sites to see which ones we should look at prioritizing, as far as what
projects to do first,based on their planning to help kind of quantify some of the benefits versus what the
costs are going to be, and come up with a priority list of sites that we should start looking at backup
power for. And that's all in terms of the Strategic Energy Plan. They are going to be providing us with
some technical assistance on that, and also giving us some funding to help support that effort.
MR.UNGER: Do we have a resilience plan now?
MR. CHING: Specific for energy?Not right now,no official document. We have more general resilience
planning,but not specific for energy.
MR.UYEHARA: I think that was one of the exercises when we talked with the groups that are going to
be helping us. Our staff,we have a lot of it just in our heads on how to back up certain areas,but this is
going to be a formal exercise to document that all.What Warren has worked on in the past about putting
generators at strategic locations,this is even going beyond that,to look at areas that would be nice to
have backup to continue water service during an extended power outage. These exercises are anticipated
to help us with that evaluation.
MR.UNGER: At the beginning of the agenda,we talked about earlier,that was part of a resiliency-type
plan,just having that emergency standby generator,but this sounds like more of a formal plan where
you're looking at all of your data and prioritizing and being more formal in your approach,which is
great. I think that it fits with the Strategic Plan also,which we previously just discussed.
MR. CHING: The idea is to have a sort of master plan when it comes to backup power. This document
would also help us when we go for grant funding,that's how we're hoping to pose this report, to help us
with some of the grant funding and to be able to show the benefits of certain projects.
MR.UYEHARA: It will help us to justify future funding applications to implement this resilience plan.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
G. BID NO. 2026-03, FURNISHING LIQUID CHLORINE(ON AN AS-NEEDED BASIS) FOR THE
DEPARTMENT OF WATER SUPPLY:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
Page 18 April 28,2026,Water Board Minutes
This project consists of furnishing all materials, labor,transportation,tools, taxes,machinery, and
equipment necessary for the furnishing and delivery of liquid chlorine in accordance with the
specifications. The bidder will provide services on an as-needed basis,for a period not to exceed two
years.
Bids for this project were opened on April 9,2026, at 1:00 p.m., and the following are the bid results:
JCI Jones Chemicals, DWS Engineering
Inc. Estimate
Item 1 —150 lb. Cylinder $575.00 $600.00
Estimated contract use:
150 lb. Cylinder: $575.00/cylinder x 585 cylinder/year x 2 years = $672,750.00
Total: $672,750.00
RECOMMENDATION: It is recommended the Board award the contract for BID NO. 2026-03,
FURNISHING LIQUID CHLORINE(ON AN AS-NEEDED BASIS) FOR THE DEPARTMENT OF
WATER SUPPLY,to the lowest responsible bidder, JCI Jones Chemicals, Inc.for the unit prices listed
above,for the period from July 1, 2026, through June 30, 2028, and that either the Chairperson or the
Vice-Chairperson be authorized to sign the contract, subject to review as to form and legality by
Corporation Counsel.
ACTION: Ms. Taaroa moved for approval of the recommendation; seconded by Mr. Miura and carried
unanimously by voice vote (Ayes: 8 —Board Members Miura, Lee, Alameda, Taaroa,Unger, Lopez,
Aiona, and Chairperson Kekela).
H. SERVICE BID NO. 2026-04, HAUL& DELIVER CHLORINE CYLINDERS TO VARIOUS
LOCATIONS ISLANDWIDE(ON AN AS-NEEDED BASIS):
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
This project consists of furnishing all materials, labor,transportation, tools, taxes,machinery, and
equipment necessary to collect 20-ft. containers from harbor; offload chlorine gas cylinders from the
container; and deliver chlorine gas cylinders to various locations in accordance with the specifications.
The bidder will provide services on an as-needed basis.
Bids for this project were opened on April 9, 2026, at 2:00 p.m., and the following are the bid results.
NO BIDS DWS
RECEIVED Engineering
Estimate
Item la—Hilo Harbor(14 NO BIDS $8,500.00
Part I—Pick Up From Harbor Ea.)
& Delivery Preparation Item lb—Kawaihae Harbor NO BIDS $3,500.00
(4 Ea.)
Part II—Hourly Rate to Haul Item 2a—Islandwide (350 NO BIDS $46,000.00
& Deliver Ea.)
Item 3a—Hilo Harbor(14 NO BIDS $8,500.00
Ea.)
Page 19 April 28,2026,Water Board Minutes
Part III—Delivery,Preparation Item 3b—Kawaihae Harbor
& Shipment of Empty (4 Ea.) NO BIDS $3,500.00
Cylinders
RECOMMENDATION:No bids were received. Staff will seek alternative procurement pursuant to
HAR 3-122-35 to procure the required services.
MOTION: Mr.Miura moved for approval of the recommendation; seconded by Ms. Taaroa.
MR. OKAMOTO: This is related to the prior agenda item,but this is to actually deliver those cylinders to
where they need to go. Similar to the one with the Kahalu`u Shaft maintenance,we didn't receive bids, so
we are going to utilize the alternate procurement method to obtain these services. Again,we do have
services currently in effect.
MS. TAAROA: This is just trucking?
MR. OKAMOTO: Yes.
ACTION: Motion was carried unanimously by voice vote (Ayes: 8—Board Members Miura, Lee,
Alameda, Taaroa,Unger, Lopez, Aiona, and Chairperson Kekela).
I. UPDATE OF DEPARTMENT OF WATER SUPPLY'S AGRICULTURAL USE RATES:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
For information and discussion purposes.
MR. OKAMOTO: We emailed you both the proposed rule change as well as a copy of our application for
agricultural use rates. This effort,we apologize, this took us a little while. Board Members Lopez and
Unger participated in a meeting we had with Real Property Tax last year,in an effort to standardize and
be more in line with what County Real Property Tax is doing with their Agricultural Exemption on the
tax side of things. Here is where we are at now, and we're open to the Board for further discussion and
input on this process.
MR. MIURA: Can you fill me in on the purpose of this change? Or how is this supposed to work?
MR. OKAMOTO: We had our own rules regarding agricultural use water rates.I don't know when they
were established or what the actual genesis was at that time.I believe it was to support the AG industry.
Basically, our AG rates are a subsidized rate; it's lower than the typical other use rates that our customers
pay. Back over 30 years ago, the Board decided that it was worthwhile to have such a rate. Recently,
there was a question brought up because our requirement was for applicants to renew annually,whereas
Real Property Tax has a different timeframe. The other challenge we had internally was actually vetting
the applicants. We had our own method,but then in the meantime, I know the County Real Property Tax
had gone through a significant effort to refine how they vet on their end on what qualifies for property tax
exemptions or qualifications. I think it was time.I think Board Member Unger initiated that question on
the annual renewal request, so it just makes sense to be in line with what the County Real Property Tax is
doing because,I think, the end result is similar. Basically, a reduced rate for an activity that the County
wants to support.
MR.UNGER: That's a good summary, and again, I think the impetus originally was what Keith was
saying, farmers and ranchers who qualified for this AG rate had to reapply every year.I think that was
the start. It's like,hey,if we qualify, Real Property Tax has a 3-to-5-year dedication, can farmers and
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ranchers jump onto that,because, I mean,it's a lot of admin every year,both for the farmer/rancher and
for the Water Department. So, that was the beginning of the project, and that's how we started,but as you
can see,it's kind of morphed into a larger project,which is fine. I think what's happening is that the
project, to a certain extent,is being overhauled.It's been the same and probably not been paid too much
attention to by the Water Department, so now I think it's kind of two-fold.It's number one, trying to get
a longer dedication process while at the same time maybe updating or upgrading it,reevaluating it, and as
Keith said,it was timely because Real Property Tax, as we know, as real property tax owners, they just
went through a huge upgrade, I guess, or modification to their system.When we met, Board members
with the Water Department,our whole thing was,hey, let's not reinvent the wheel, maybe we can draft
behind Real Property Tax, and they're doing vetting for us. It seems like they've done a very good job in
detailing who's in AG and who is not. So that's the idea, to dedicate to a longer three to 10-year project
and then work with Real Property Tax. If you qualify for a Real Property Tax Exemption, then you would
also qualify for a Water AG Exemption, and that's the road we're heading down.
MR. MIURA: I have another question. Is the goal to try to offer the person using water the lowest rate?If
the AG rate is lower, or if they have a home and they get the homeowner rate, do they have the option to
choose? Or if they're doing AG on the property,but their homeowner exemption rate is lower,would
they qualify for that? Or if they're growing something,would they have to sign up for the AG rate?
MR. OKAMOTO: That's a good question, and I think that's one we kind of anticipate possibly falling
through the cracks. And again,it's really a Board decision.What should be subsidized? What kind of
activity? Then once we figure out what that is, then we'll need to figure out the mechanism to vet that
activity. As a reminder, this is a subsidized rate, so what is the big picture?We want to support AG,but
we want to support AG at what level? Is it the guy who's just self-sustaining and growing his own food?
Or is it AG where he's actually selling to the public? That's the Board's decision,not a Department of
Water Supply decision. I think once we figure that out,then we'll have to figure out the process to vet
that that does not currently qualify or is revealed via the Real Property Tax process,if that's the question
I'm hearing.
MR. MIURA: I think the Real Property Tax Department has tried to get after those that are,pardon my
example,but maybe having a couple of cows on their property compared to actually doing farming. They
might be a small farmer. I guess whether they are a small farmer or small rancher, I just want to be sure
that this doesn't hurt them and make them feel like down the road they might not want to farm, or they
might want to get out of it because now it's a higher rate that they don't qualify for anymore.I
understand it's not going to be a system that is going to help everyone,but also, I'm sure in Emily's area,
too, and the area that I'm representing,there's a lot of small farmers that they're not major like some of
the farmers in Ldldmilo,but at the same time, they have a couple acres that they are living on and
growing whatever it is or ranching whatever it is and producing and selling.
MR. OKAMOTO: Our current rules require that they provide documentation to show that they're
actually selling their product, and Candace jump in at any time, so we can continue that for those that
maybe fall through the cracks. My recommendation is those guys, I think,we're going to have to make
them annually.
MS. TAAROA: An alternate application process.
MR. OKAMOTO: Right now,if we're relying on Real Property Tax Exemption, they can share with us
GIS data, they can share with us which parcels are getting dedicated AG, and I think we're still working
on the timeframe. I don't know if they have that information.
MS. TAAROA: I was going to ask that. I don't see a timeframe anywhere on this.
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MR. OKAMOTO: We'll need to figure that out,but we think that's a workable solution.I get what
you're saying,but that's the thing, too,I don't think we should provide subsidized AG water rates for
those guys who have one cow on their property. They aren't really producing. There are others that are
like B & B's or short-term rentals that provide opportunities to pick fruit on their property as part of their
guests,but that's not really benefiting the overall community.I wouldn't support AG water rates for
those types of activities either.
MS. TAAROA: I would say I agree with this change, especially because I believe how it used to be is
you put this in and you submit a GE tax license. Honestly, I could have a GE tax license for my little
store in Hilo,but a GE tax number doesn't necessarily mean you're a farmer. You're engaged in some
type of business activity,but just because you have a GE tax license does not make you a farmer, so there
really was no verification there.At least the Real Property Tax is going a little further in actually
verifying the agricultural activity,which I agree with, as I am somebody who is in agriculture.
MR. OKAMOTO: I think Colin was mentioning that there are probably some situations out there where
either they,by choice,have not opted for the Real Property Ag Tax Exemption because the Homeowner
Exemption came out more economical for them,but they're actually really doing real farming. So,how
do we address that? I think that might be the question before us, and I think there are other things out
there like Kamehameha Schools, a lot of land, a lot of people leasing the land.
MS. TAAROA: Actually, I can pipe up a little bit;you could require a Schedule F or something like that.
As opposed to a GE tax number, farmers have to fill out a Schedule F, and that means you're a bona fide
farmer. So if we wanted a better method,I would recommend that.
MR. OKAMOTO: That's something that is pretty consistent?
MS. TAAROA: If they are selling, they're probably doing that.
MR. OKAMOTO: We could add that to the rule. So if they're getting the Real Property Tax Exemption,
do they have to provide that Schedule F also?
MS. TAAROA: I don't think so,but it's a way where you wouldn't have to physically go out to the
property and verify,because Real Property Tax,they probably are. I'm not sure if they actually
physically go.
MS. MELLON-LACEY: There's a whole list of things in Section 19-60 in the Real Property Tax Code,
which I have a copy of if anyone wants to make a copy,but it's also available online; there's a whole
bunch of things that can meet it, like a farm plan is one thing. Section 19 is all about Real Property Tax,
19-60 is specifically for long-term AG, and there's 19-61 for shorter term. That gives you all the things
that RPT looks at, and it's varied. It's not just one thing;it's from a list.
MR. OKAMOTO: We put this on the agenda because it's been a long time coming. We wanted to
provide the Board with at least a draft set of rules so that you guys can review it.We're not saying that
you need to make a decision today; that's why today's agenda item was for discussion purposes only.
What we'd like to do is,if anybody has any ideas, like that Schedule F,is that an IRS form?
MS. TAAROA: Yes,it's when you file your federal taxes. A lot of different programs use that as a
qualification for grants and whatnot,just to prove you're a bona fide farmer.
MR. OKAMOTO: If everybody can take a look at what we have,both as the proposed rule revision and
the application for agricultural use rates, and you can submit your comments to Maraea. We can agendize
this at a subsequent Board meeting,maybe two or three months from now, for further discussion. Then,
at that time, I foresee us,through a Board discussion, actually settling on some draft rules. Once we do
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that,we'll have to have apublic hearing to adopt those rules, and the public will have an opportunity to
come and weigh in and provide their comments before the rules are finalized. If that sounds good,we can
proceed accordingly.
MR. LOPEZ: I like your proposal;I'm onboard with that.My question is,I'm hearing the word
subsidize, subsidy, and I'm not clear how that fits into what the genesis of this effort was. Is it still true,
and is there in your rules or what you're thinking,is there any possible change that the AG rate doesn't
kick in until over 10,000 gallons a month?
MR. OKAMOTO: 15,000 gallons.
MR. LOPEZ: So anything below that is not what we're talking about?
MR. OKAMOTO: Correct.
MR. LOPEZ: Just as a FYI, I'm in the community sustainability agricultural program, and I have an AG
meter allocated,but nowhere am I using 15,000 gallons a month. So,it really becomes a non-issue for me
with respect to the water that I pay for, and that's not in any of this discussion, that structure,right?
MR.UNGER: Yes, from what I understand, the existing rate is the existing rate. It's my understanding
that we're not even talking about adjusting any of the rates.
MR. LOPEZ: When I hear the word subsidize, that's where I'm getting the rate issue from.What are we
subsidizing?
MS. TAAROA: It might be helpful if you provided, like before we have the next discussion,how it
currently works and what the rates look like,what the structure looks like.Just a little cheat sheet of how
it currently works.
MR. OKAMOTO: We'll try to provide an executive summary of the rates, and Kawena is 100% correct,
the first two blocks,really not a subsidy,but that's not where the larger scale farmers are benefiting. On
the regular use rates,the third block is where we start kicking in, actually higher than the cost of service
rates, as more of a disincentive to overuse water.Whereas the AG water users have the opposite of that,
more incentivized to use more water.
MS. TAAROA: If you're using less water,you're actually better off on the homeowners'rate,is that
correct? Say if you apply for AG, that's your rate no matter what you use,right? If you're using the lower
end of that, say less than 5,000 gallons a month,you're probably paying more than the homeowner using
5,000 a month,is that right?
MR. OKAMOTO: It's the same.
MS. TAAROA: The AG rate only kicks in at that level?
MR. OKAMOTO: Yes.
MR.UNGER: If you think about it, that's almost a way of vetting; it's the larger AG guys that are using
more than 15,000 gallons, and the smaller mom and pop, one-horse in a five-acre pasture doesn't quite hit
that threshold. Again,it's a form of vetting that's built into our existing AG rate right now. As far as the
terminology, Kawena, I think it's a little misleading. It's not subsidizing to a certain extent,whatever
Real Property Tax does to large ranchers and farmers to give them a tax rate to encourage them to stay in
agriculture. So, whatever you want to call that,incentive, or I guess you can call it a subsidy, and who's
being subsidized? The farmer or rancher. By who? The general community that's not in ranching and
farming. So, as a rancher, I've always been really appreciative of this, and the same with Real Property
Page 23 April 28,2026,Water Board Minutes
Tax, I'm out there saying thank you to the general community. You always hear verbiage from our
politicians about how they support AG. Let me tell you, there's not a lot of support out there. I will
promise you that. Except for Real Property Tax County of Hawaii and Water Supply,that's where the
rubber hits the road, and that's where we are all very appreciative of that.
MR. OKAMOTO: I didn't want to say subsidy like it's a bad word,it's just below cost of service.
MR. LOPEZ: Yes,that's a good word.
MR. OKAMOTO: I think Mr.Unger is correct. When we came up with the agricultural water use rate, I
think the intent was to help distinguish the larger-scale activities from those potential one-cow on the
property type situations.
MR. MIURA: If I understand you correctly, then anything under that 15,000 per month would still be
under the homeowner exemption rate?
MR. OKAMOTO: Not homeowners' exemption for water rate,just the general use rate.
MS. TAAROA: We only have two rate categories,right? There's general, and then there's AG rate,
right?
MR. MIURA: Another question, and I don't know if this really applies,but what about the ones that are
exempt?For example,if you're going to use RPT's guide,how would DHHL and some of the other areas
that are exempt on RPT apply to your standard?
MS. GRAY: Real Property Tax, they issue a notice of tax assessment every year, and on there would
include the land use classification and any exemptions that the homeowners would qualify for, so we
would actually look at that.
MR. MIURA: So that one would be a case-by-case?
MR. OKAMOTO: I think we worked with their GIS folks to get those who got the Agricultural Use
Exemption. We're not applying it for other exemptions; I don't know how many exemptions there are.
DHHL gets?
MR. MIURA: Yes.
MR. OKAMOTO: But it's not the same as the agricultural exemption?
MR. MIURA: That might be a Lisa question.
MR. OKAMOTO: We'll check that also. Basically, again, the intent was not to reinvent the wheel
because I think that Real Property did a terrific job of trying to figure out how to vet what is legitimate or
not. That's our basis, that's our starting point.
MR. MIURA: Don't get me wrong, I'm not against this. I'm just trying to make sure that if we do come
up with something,we don't find an issue down the road.
MR. OKAMOTO: What we'll try to do is a more proactive outreach when we get to this rule change for
the public hearing. Hopefully,if there are some concerns that the public has with our proposed rule
change,we'll hear about it, and we can use that discussion to plug in any holes we may have at that time.
MR. MIURA: It may not hurt to reach out to RPT prior to that just to make sure
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MR. OKAMOTO: Yes, 100%. We'll notify them of our draft rule change and even our application, too.
J. MONTHLY PROGRESS REPORT:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
Submission of Progress Report of Proj ects by the Department. Department personnel will be available to
respond to questions by the Board regarding the status/progress of any project.
MS.UYENO: I'll start off with the Lalamilo IOMG reservoir. This project is our largest concrete
reservoir that we're constructing. Right now,we're approximately halfway through. We're putting up
walls and columns at the same time, and right now we're attempting to pour a quarter of the roof slab,
which is scheduled for Thursday, April 30'.Just for background, our reservoir is so big that we cannot
enclose everything without installing portions first,which is why it's going up in portions. We're doing
columns,walls, and now the concrete ceiling, the roof pour. That's progressing ahead, like I said,we're
about halfway through with the construction of the concrete reservoir.
Moving on to page two,we have Iki Place Water System Improvements. That is an improvement district
project that is working in conjunction with our County of Hawaii Finance Division.We were on pause
for a while, so now we're getting back on track. We have to do a loan closing with USDA, and that is
scheduled for May 7'. Once that closes,we'll go ahead and issue the contract for the construction
proj e ct.
On page three,just an update on our FEMA project,which is the Pohoiki waterline replacement and
roadway.First off,we worked on the lower portion, 137A,which is Kapoho towards Pohoiki boat ramp.
We're approximately 17,700 linear feet completed out of the 19,000, so we're about 74% complete there
as far as waterline work. I just got word yesterday that the upper and lower Pohoiki portion,which is a
separate contractor,is finally going to start the waterline work in May, so next week. For that one,we'll
be installing about 25,000-plus feet of waterline,which will connect down towards the other portion that
we're installing now. So,water will not be available until the upper and lower Pohoiki Road is
constructed.
K. REVIEW OF MONTHLY FINANCIAL STATEMENTS:
Chair Kekela asked if there was any testimony for this item. There being none, he continued with the
agenda item.
Submission of financial statements and information relating to the financial status of the Department.
Department personnel will be available to respond to questions by the Board relating to the financial
status of the Department.
MS. GRAY: For this month,you're looking at the March 2026 Financial Statements,the end of our third
quarter for Fiscal 2025-26.We have any new explanations on our cover memo. I have on the balance
sheet,which is on page four, our accounts and construction contracts payable,including retainages,
increased $683,014.00 from the prior year. Again, that's due to an increase in pending payments to be
processed in comparison to the prior fiscal year. Based on previous requests at the last Board meeting, I
moved the delinquency section to a separate, one-page report in addition to the financial statements.Prior
to this,in this section,I reported the amount in our greater than 90-day category for our aging
receivables. In this new report, I include all of the aging categories to show the status as well as the
performance in relation to our efforts and improvements in our processes, and so forth.In November,we
implemented a new strategy, and it involved a collective effort between all of our customer service,
collections, and accounting staff to help communicate to customers regarding their delinquency and assist
Page 25 April 28,2026,Water Board Minutes
in avoiding shut-offs, and hopefully prevent their delinquency from going further into the greater than 90-
day category. As you can see, the numbers regarding our overall delinquency from October 2025, total
delinquency was $1,047,000.00. As of March 2026,I'm reporting $880,317.00, so we're looking at an
overall 16%reduction.Any questions?
MS. TAAROA: Do we know what the industry standard is for the percent of total AR delinquencies in
Water or utilities in general? Just curious. I'm sure it's higher than normal because of necessity.
MS. GRAY: We are in the median. Of course, over time and with improved efforts,we are adjusting to
different processes, so I believe over time we will reduce it further.
MS. TAAROA: Well,you're doing a good job, thank you.
MR. LOPEZ: Thank you for this report. You're separating the topic from your financial report in a very
distinctive reporting method, so thank you for doing this. I noticed the column called total,is that the
total AR bill?
MS. GRAY: That's the total outstanding for that month.
MR. LOPEZ: Since July 2025,you've decreased the total outstanding by something like a million and
five, and then the total delinquent you've reduced from a million ninety-nine to $880,000.00; that's
outstanding. Great job in addressing that. A lot of this, maj ority of it, came about by your staff being
more aggressive in making direct contact. Is that still happening?
MS. GRAY: Yes,it is.
MR. LOPEZ: It's showing here. Again,thank you very much.I've been living with this for at least three
years,if not more. Thank you. Good job.
L. MANAGER-CHIEF ENGINEER'S REPORT:
The Manager-Chief Engineer to provide an update on the following:
1. North Kona Wells
MR.UYEHARA: Of the 14 sources in Kona,we have 11 online or available to use. The three that are
offline are the same as last month: Wai`aha,Honok6hau, and H61ualoa Well. Good news with Wai`aha,
pump and spare equipment were installed, and we had a successful start-up of the well,but since the well
has been offline for several years now,we have to get it recertified by the Department of Health for water
quality purposes before we can put it into our system. The samples were collected and shipped off to our
mainland lab.We are anticipating that,hopefully,by the end of May,we can have that well back up and
online. Honok6hau Well,we're still waiting for spare equipment to arrive at the end of May or early
June. Once that equipment is on the island,we can install it. That one we are looking at for return to
service at the end of July. For H61ualoa Well,we still need to put out the bid. Once that contract is
awarded,hopefully,we'll get that one back online by November.
CHR. KEKELA: For the testing,is that something that the Department can do? Like a preliminary?
MR.UYEHARA: We do in-house bacterial microbiological sampling,but this new source test,it has a
whole gamut of chemicals and other things we need to test for and analyze, so we had to ship it out to our
mainland laboratory.
CHR. KEKELA: So,you guys can't anticipate whether they're going to approve it?
Page 26 April 28,2026,Water Board Minutes
MR. OKAMOTO: We have no reason to expect that they won't,it's just that part of the requirement, and
again, the obvious is we can't grab a sample until the pump is working.
CHR. KEKELA: How long would an assessment like that take?
MR.UYEHARA: About two months?
MR. OKAMOTO: Hopefully sooner. It's a full gamut,it's a thorough test. It's like if we drilled a brand
new well, similar type testing. We don't know the reasoning behind some of DOH's requirements.
CHR. KEKELA: How long ago was it now?
MR.UYEHARA: 2016?
MR. OKAMOTO: For our staff,it's not difficult;it's just that if you see it,it's a bunch of different
bottles for different compounds, and they have different hold times. They can grab it all in a short period
of time, then we ship it off to the mainland for them to do all the lab testing.
M. CHAIRPERSON'S REPORT:
1. Chairperson to report on matters of interest to the Board
CHR. KEKELA: I know there's one thing that was pertinent from our last meeting. I did reach out to the
county to get an update on a member for District Seven for the Water Board. I was told the prospective
applicant withdrew his application because of some family stuff. That was closer to our meeting last
time; I haven't followed up prior to this week. Hopefully, they are eyeballing another applicant.I was
told they are going to fill the position by the end of the year.
10) ANNOUNCEMENTS:
• Next Meeting—May 26, 2026, 10:00 a.m.,West Hawaii Civic Center, Building G, 74-5044 Ane
Keohokalole Highway, Kailua-Kona,Hawaii.
11) ADJOURNMENT:
The meeting was adjourned by Chairperson Kekela at 12:07 p.m.
Recording Secretary
APPROVED BY WATER BOARD
(May 26, 2026)
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