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_ Gyle ......' �°��" DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII
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- P. O. BOX 1820 • HILO, HAWAII 96720 • 25 AUPUNI STREET
January 17, 1979
TO: Mr. Kimiaki. Sakata, Chairman
Charter Commission, County of Hawaii
FROM: Akira Fujimoto, Manager
SUBJECT: SUPPLEMENT TO DEPARTMENT OF WATER SUPPLY'S TESTIMONY TO THE
CHARTER COMMISSION
As discussed at the Charter Commission hearing on January 16, 1979, we
submit for your consideration the following recommendations:
Section 8-2. Water Commission.
The Charter provides that the Commission membership be representative
of the community and of the county geographical areas of Puna, Ka'u,
Kona, Kohala, Hamakua, and Hilo.
There is no specific number requirement for each geographical area.
RECOMMENDATION: That a specific number, requirement be set for each
geographical area.
Section 8-2(b)
Section 13-7. Rules and Regulations states ". . .all rules and
regulations having the force and effect of law adopted by any
board, commission or administrative head of a department shall
be approved by the council and the mayor before going into .
effect. . ."
Because public hearings are required in accordance with the
Charter and the approval of the Water Commission is required
and because Section 91-3(c) of the Hawaii Revised Statutes
states that the county boards, of water supply are not required _
to obtain approval from the council or the mayor, an amendment
to Section 8-2(b) should be made.
RECOMMENDATION: That the words "without the approval of the
council or the mayor" be added after the last word "county"
in Section 8-2(b) .
.•. ater 6rins3 progreoa...
il r t
410
• Mr. Kimiaki Sakata, Chairman
Charter Commission, County of Hawaii
Page 2
January 17, 1979
Section 8-3. Manager and Deputy.
To clearly define the responsibility and authority of the
manager and the commission, amend Section 8-3. Manager
and Deputy, as follows:
Section 8-3. Manager and Deputy. The manager of the department
shall be appointed by the water commission and may be removed by
the water commission. The manager shall be a registered engineer.
(a) The deputy shall be appointed by the manager with the
confirmation of the water commission and may be removed
with the approval of the water commission.
(b) The manager shall appoint the necessary staff for which
appropriations have been made by the water commission.
(c) The manager shall take all personnel actions including
the assignment or reassignment of duties to employees
within the salary ordinance; provided that if such`assign-
ment or reassignment of duties shall affect the compensation
of the employees, approval must be first obtained from the
water commission.
(d) The manager shall supervise the performance of duties of
all employees.
(e) Except as otherwise provided b this Charter and subject to
the approval of the water commission, the manager shall
prescribe such rules as are necessary for the organization
and internal administration of the department.
Underscoring is new material to be added to this section.
kira Fujimoto
J /
Manager
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.. •p"At DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWS
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1 A�' + • + P. 0. BOX 1820 HILO, HAWAII 96720
• 25 AUPUNI ST F'..:
January 16,. 1979
DEPARTMENT OF WATER SUPPLY
COUNTY OF HAWAII
•
The first separate water agency called the Board of Water Supply
of the County of Hawaii was created by the Territorial Legislature in
1949 as a semiautonomous board to manage the waterworks of the County
of Hawaii . Prior to 1949, the water supply was under the Public Works
Department as a bureau of waterworks. On January 1 , 1950, all of the
properties and functions of, the bureau, including its staff, were
transferred to the new Board of Water Supply. In January 1969, the
first County Charter was adopted and the Board of Water Supply was
rl
renamed the Department of Water Supply of the County of Hawaii . The
semiautonomous status was retained and a few administrative changes
were made.
The Department of Water Supply operates as a semiautonomous
body under the Water Commission which consists of nine members
representative of the community and the geographical areas of the
Big Island. The manager, the planning director, and the chief engineer
are ex-officio members of the Water Commission without voting powers.
The Water Commission is entrusted with the powers to manage, control ,
and operate the waterworks of the county and all property thereof;
acquire by eminent domain, purchase, lease or otherwise, and to sell ,
lease, or otherwise convey real property in the name of the Water
4111* UVater bring3
' Depar•tment of Water Supply -2-. January 16, 1979
County of Hawaii•
•
Commission; issue revenue bonds under its own name; adopt its own
annual operating and capital budget; adopt rules and regulations having
the force and effect of law relating to management, control , operation,
preservation and protection of the waterworks. Regular monthly meetings
are held for the purposes of conducting businesses relating to its
affairs. Authorization for projects, policy matters, execution of
contracts and agreements, creation of positions, budget discussions,
and other such matters are taken up at the Commission meetings.
Public hearings as required by the Charter are held prior to
adoption of the annual budget, water rate increases, and amendments
to the Rules and Regulations of the, Department of Water Supply.
The Manager, assisted by the Deputy Manager, is responsible
for the administration and management of the Department. The Manager
is appointed by the Water Commission.
The operations and functions of the everyday activities of
the Department are handled by three major divisions: fiscal ,
operations, and engineering. There are twenty-two separate water
systems throughout the nine districts under the jurisdiction of
the Department. In 1949, when the Board of Water Supply was created,
1
there were 5,294 customers. Today, we have 20,40, an increase of
287 percent. The total plant investment is $45,472,294 today as
compared to $1 ,105,560
thirt ears ago. This tremendousgrowth has
pYY 9
occurred because of the long-range planning of the Department. Water
systems were constructed in areas where there were no water systems.
This gave the residents of these areas potable water for the first
time.
• • 1
Department of Water Supply January 16, 1979
County of Hawaii'
The operations division, headed by a division head who is a
professional engineer, operates base yards with personnel staffed
in Hilo, Ka'u, Kona, Kohala and Hamakua Districts. There are 52 employees
in the operations division with a payroll of approximately $628,400 a year.
These employees are charged with the everyday activities in operating
and maintaining the systems in their districts. This includes operation
and maintenance of approximately 22 separate water systems with a total
of 21 deep wells, 4 surface water sources, 13 springs and tunnels,
41 booster pump stations, and many concrete tanks and reservoirs ranging
in capacities from 50,000 to 60,000,000 gallons. The most recent addition
to the Department's facilities is the Kahaluu shaft water source in
North Kona with a capability of initially producing 6.0 million gallons
a day. In addition, delinquent account collections, applications
for water service, and receiving and following up on complaints are
handled by these district employees. Because the Commission has
permitted its customers to pay their bills at the various banks
available within these districts, our personnel have been able to
spend more time where they are most. effective; and that is, in the
maintenance and operation of the water systems.
The engineering division, located in the main office in Hilo, is
headed by a professional engineer and has 13 employees with an annual
• payroll of approximately $211 ,190. This division is responsible for
the design, construction, inspection, contracting of all the Depart-
ments's. projects, planning long-range capital improvement projects
conforming to our Water Master Plan, and reviewing private developments
' Department of Water Supply -4- January 16, 1979
County of Hawaii
that connect to the Department's water systems. Projects costing
$50,000 to over $1 ,000,000 have been handled by the division.
Because the Safe Drinking Water Act recently enacted by Congress
has rigid requirements for potable water, more emphasis has been
. placed on the development of groundwater sources. The water from
these sources meet all requirements of this Act because of its
excellent quality. In addition, the dependability of such sources,
especially during the drier period, is one of the major reasons we
are actively seeking more groundwater sources. Where water from
surface sources is of poor quality, we have constructed treatment
plants to meet the Safe Drinking Water requirements. For your
information, failure to comply with these requirements may cause the
operating agency to be fined by the Federal Government.
Use of new construction materials which assure long life at an
economical cost has become a part of our Standards for Water System
to assure the public of long, continuous water service, minimize
shutdown time, and minimize replacement cost.
The fiscal division is charged with the responsibility of
the expenditures and the direction of the finances of the Department.
This division is headed by a fiscal officer who is a professional
accountant. The division is divided into three sections. These
• include management accounting, customer services and revenue .
accounting, and the computer service sections. The division has
a total of 18 employees with an annual payroll of approximately
$225,500.
' Department of Water Supply -5- January 16, 1979
County of Hawaii .
•
The functions of the fiscal division are generally to:
1 . Provide supervision and direction over the finances of the
Department including the timing of investments.
2. Provide long-range financial studies including the effect
of the rate structure on overall revenue.
3. Plan and administer a bonded debt program.
4. Provide for budget preparation and expenditure controls.
5. Provide for all accounting operations including data
processing.
Financing of Operations:
The Department pays for its operating expenditures through the
sales of water. Some Federal aid is provided through the CETA program .
Operating revenues for the year ended June 30, 1968 amounted to
$905 thousand while operating expenses excluding depreciation charges
of $279 thousand amounted to $635 thousand. For the year just ended.
June 30, 1978, operating revenues increased 272 percent to $3.4 million
while operating expenses, excluding depreciation of $1 .09 million,
increased 294 percent to $2.5 million.
Much of the increase in operating expenses is attributed to
increased pumping and power costs which took a sudden rise in the past
two years. In 1968, this expenditure was $279 thousand. In the year
•
ended June 30, 1978, this cost amounted to $1 .1 mill ion or an increase of rearly
300 percent. Although the water rate increase which took effect on
September 1 , 1976 allowed for increases in power costs to 1981 , the
actual increases were much greater than anticipated. But through
t
Department of Water Supply -6- January 16, 1979
County of Hawaii
cutbacks in other areas, the Department has been able to meet this
unanticipated increase.
Financing of C. I . P. :
The Department presently looks to the State of Hawaii to fund
major projects •to •improve and expand its water systems to better serve
the people of this island. In addition to State funds, Federal funds
are also available from time to time to fund certain kinds of projects.
In recent years, the Department has been setting aside 15 percent of
its operating revenues for minor projects or to supplement State or
Federal funds for major projects. At the present time, this 15 percent
reserve amounts to approximately $500 thousand annually.
In 1966, the then Board of Water Supply initiated the use of
electronic data processing for our• billing. Today, the computer service
section has expanded the use of the electronic data equipment to provide
the Department with data necessary to keep abreast of new developments
and increased cost in materials and labor. Data provided by the computer
service section enables management to amend existing practices or policies
or to initiate new ideas and practices for a more efficiently operated
Department. •
The operation of the Department under the existing organization
has been very successful . Since the creation of the old Board of Water
Supply in 1949, continous improvements have been made during the past
years in our operations which have made the Department increased its
efficiency while trimming the operational cost. This can readily be
Department of Water Supply -7- January 16, 1979
County of Hawaii • .
seen by reviewing the Department's growth since 1949. The following
is a statistical comparison of pertinent data since 1949:
AVERAGE
INCREASE
1949 1978 INCREASE PER YEAR
Number of Services 5,294 20,470 287% 9.88%
Water Sales 1 ,000 Gals. 1 ,302,434 4,229,335 225% 7.75%
Utility Plant
a) In Service $ 1 ,105,560 45,472,294 4,013% 138.38%
b) In Progress $ 48,237 736,163 1 ,426% 49.18%
Number of Employees 48 79 65% 2.32%
Services Per Employee 110 260 136% 4.70%
Power Cost $ 14,659 987,769 6,638% 228.91%
Operating Revenues $ 283,662 , 3,409,235 1 ,102% 37.99%.
RECOMMENDATION:
We firmly believe that the present concept of a semiautonomous
department is the most responsive to the water needs of the people of
the County and therefore should be retained as such.
TABLE NO
UPOLU PT. HAW I SYSTEM(Tunnel .
KOKOI K I �— KAPAAU SYSTEM (Ditch) -
SYSTEM „:„..,"01.,..:,./. ...
01.A.' ,
(Tunnel) aw'.., ` KAAUHUHU SYSTEM(Tunnel) —J
;`-. A MEA SYSTEM (Surface Wat r - �J
Mahukona :4'4F;,. •.
"ri"°.” ■• • AA STEM(Surface Water)
••
Waipio
2 N 0 R TH KOHAL Kukuihale AHUALOA-PAAUHAU SYSTEM(Surface Waterl
KUKUI EL t STEM ° •.;i<.,:.•; Honokaa AHUALOA-KAAPAHU-POHAKEA SYSTEM(Surface Water)
'1 ,; .44.,11i� Paauhau
KAWAIHAE SYSTEM Spri N :,\\u\ r:u PAAUILO SYSTEM(Tunnel)
(Sur face Water W I :;,;i1'�:��'�►��� a f Pa. ilo AUPAHOEH_ OE-KIHALANI __
a Ot a �� �1„q,s:, ;� .
lye Kawaihae0,1111.4:4;,:f::$111:•:•,:::':.:.1'.'•1:-;.:•f
"l SYSTEM
,y, �`,;;yi •:,x':rs,:+�'-... (Springs 81-Tunnel &Well
•
Hapuna "4f?i '1si•''' ? amue1a
y„ •OKA • Y -47,110.,:-• ,,• aupahoehoe
•fIC) Puako •...ff.,. PUAKO SYSTEM- Water.& (Well)ell • 'ro,:t .0 •MU E
.;,r,;.. / ::,,,:
DEPARTMENT OF WATER SUPPLY
COMMISSION
' MANAGER
• .
SEC. ADM. ASST
DEPUTY MANAGER CLERK-STENO
�-- SECRETARY --�
ENGINEERING OPERATIONS FISCAL