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HomeMy WebLinkAboutCOMM. 011 f -` FWATfq 1, 00�l• •GAp<II'�i • 519: 149; _ Gyle ......' �°��" DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWAII �fHAWA�1•_- - 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 ` o� ,44,,,? lf� . .. � S,rdrw j/Ap 1.1 .. •p"At DEPARTMENT OF WATER SUPPLY • COUNTY OF HAWS H......................`144/1"`. �x..1 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