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XIX. DEPARTMENT OF WATER SUPPLY

Milton D. Pavao, Manager, was born and raised in Keaau (formerly known as Olaa).  He attended Keaau Elementary & Intermediate School, Hilo High School, and the University of Hawaii, Hilo and Manoa Campuses, where he received his Bachelor of Science degree in Civil Engineering in 1972.   Mr. Pavao began his career with the Department of Water Supply in July of 1972 and he worked for the Department of Water Supply as a summer student for four years prior to that.  He was the Engineering Section head prior to being appointed Manager on January 3, 1995.  Mr. Pavao is a member of the Hawaii Water Works Association and the American Water Works Association.  He and his son, Anthony, reside on Pohaku Circle, Keaau.

Quirino Antonio, Jr., Deputy Manager, is a Big Island native.  He grew up in Pepeekeo and attended Pepeekeo Elementary and Kalanianaole Intermediate schools.  After graduating from Hilo High School in 1969, Mr. Antonio attended the University of Hawaii at Hilo.  He went on to the University of Hawaii at Manoa and received a Bachelor of Science degree in Civil Engineering in 1974.   During the summers in his college years, Mr. Antonio worked for the County's Planning and Water departments.  Official government service began in 1974 with the Planning Department as a Planner-Engineer.  Shortly after that, he transferred to the Department of Water Supply in the Water Resources and Planning Branch of the Engineering Division.  He headed that branch as a Civil Engineer V for 12 years until the end of 1994.  Upon selection by newly appointed Manager, Milton D. Pavao, and confirmation by the Water Commission, Mr. Antonio began serving as Deputy Manager in January 1995.   Quirino and his wife, Audrie, have three sons and two grandchildren.  They reside in Hilo.

ROLE AND DUTIES

The Department of Water Supply of the County of Hawaii is a semi-autonomous agency charged with the responsibility of operating and maintaining its public water systems. The department's primary purpose is to provide potable water in adequate quantities and safe quality to its customers.

The duties of the Manager are to serve as the chief advisor to the Water Commission and as the top administrator for the department. Among other things, the Manager directs the staff of the department in activities in fulfilling its primary purpose.

The Operations Division has the responsibility of providing high-quality drinking water on a 24-hour basis through the operation and maintenance of water sources, transmission and distribution waterlines, reservoirs, pumping stations, treatment facilities, and communications equipment.

The Engineering Division is responsible for the planning and construction of the public water systems, compliance with State and Federal drinking water requirements, and land surveys.

The Finance Division is charged with the responsibility of customer services, accounting and financial reporting, and data processing.

STAFF

The department has a staff of 126 employees operating from several locations around the island. In addition to its main office in the County Building and the Operations Center in Hilo, the department maintains district offices and baseyards in Ahualoa, Waimea, Kapaau, Keauhou, and Waiohinu. Other than its administrative personnel, the department is organized into three major divisions.

The Operations Division is headed by Kenneth Ikemori who was born and raised on Maui. After graduating from the University of Washington in Seattle with a bachelor's degree in mechanical engineering, Mr. Ikemori has worked with McDonnell-Douglas Astronautics and the Hilo Gas Company - BHP. His career with the department began in 1975 and he has headed the

division since January 1995. Mr. Ikemori is a member of the American Waterworks Association, National Society of Professional Engineers, and the American Society of Mechanical Engineers. He and his wife, Joanne, have a daughter and a son.

The Engineering Division is headed by Gary S. Kawasaka who was born and raised in Hilo. Mr. Kawasaka received his bachelor's degree in civil engineering from the University of Hawaii at Manoa. His career with the department began in 1967 and has headed the division since 1980. He and his wife, Wilma, are parents of a son and a daughter.

The Finance Division is headed by Richard S. Tsunoda who was born in Hilo and raised in Papaikou and Paukaa. Mr. Tsunoda graduated from Hilo High School in 1969 and earned a BBA degree in accounting from the University of Hawaii at Manoa in 1974. Prior to joining the department in 1985, Mr. Tsunoda worked at the Hilo Coast Processing Company. He is a member of the Hawaii Waterworks Association, the American Waterworks Association, and the Government Finance Officers Association of the United States and Canada. He and his wife, Linda, have two daughters.

The Finance Division head is assisted by Richard M. Sumada who was born on Kauai and raised in Hilo. Mr. Sumada holds a bachelor's degree in accounting from Washington State University and an MBA degree from the University of Hawaii at Manoa. Prior to joining the department, Mr. Sumada worked for the Legislative Auditor's Office of the County Council and prior to that, for the accounting firm of Deloitte & Touche. Mr. Sumada is a Certified Public Accountant. He and his wife, Carolyn, reside in Hilo.

Role and Functions

The Water Commission consists of nine members who are appointed by the Mayor and confirmed by the County Council. Members serve five-year staggered terms and are representative of the nine political districts of the island. The Commission elects its Chairperson and Vice-Chairperson at the beginning of each calendar year. In accordance with the County Charter, the charge of the Water Commission is to manage, control, and operate the waterworks of the county.

The Commission meets regularly on the fourth Tuesday of each month when it conducts the business affairs of the department. In addition to these meetings, the Commission conducts a public hearing annually on the department's operating and CIP budgets. The Commission may also conduct public hearings periodically on the department's water rates and rules and regulations.

Commission Activities

Currently, Fred T. Yamashiro of South Kohala and John R. Souza of Hamakua, respectively, serve as Chairman and Vice-Chairman of the Commission. Glenn Santos of Hilo, whose term expired in December 1996, was the previous Chairman.

Tom Poy of North Hilo left on an expired term in December 1996. Debbie Makaweo of Puna resigned in early 1997 to reside in New Zealand. Yukio Takeya of Hilo was selected in 1997 to replace the vacancy left by Glenn Santos. At the end of the fiscal year, two positions remain vacant.

The following is a current list of members and term expiration:

Anna Cariaga George A. Harai Edmund W. Hohu John R. Souza Yukio Takeya Thomas P. Whittemore Fred T. Yamashiro

12/31/97 12/31/00 12/31/99 12/31/99 12/31/01 12/31/98 12/31/98

1996-1997 BUDGET

HIGHLIGHTS

The following highlights for the fiscal year 1995-1996 were prepared by the respective division heads as noted.

ENGINEERING DIVISION - Gary S. Kawasaka, Division Head

The following major capital improvement projects were under construction; were in various stages of contract award; or, were in the planning and design phases by the Department of Water Supply for the 1996-97 fiscal year.

PUNA:

NANAWALE PIPELINE IMPROVEMENTS - This project will extend an 8-inch waterline about 400 feet down Nanawale Boulevard.
Estimated cost: $50,000

SOUTH HILO:

MOHOULI STREET EXTENSION 12-INCH WATERLINE - Water service will be expanded along the Mohouli Street extension with the installation of a new 12-inch water main from Kaumana Drive to Komohana Street.
Estimated cost: $2,000,000

KAWAILANI STEEL TANK PAINTING/REFURBISHING - This tank will be given a facelift. It will be repainted, and structural design changes to the tank roof will be constructed.
Estimated cost: $100,000

NAAUAO STREET G.I. PIPE REPLACEMENT - A new 6-inch waterline will replace a leaky, old galvanized iron line in the Chong Man subdivision. This project will be ready to be advertised once the easement issue has been resolved.
Estimated cost: $170,000

KAUMANA DRIVE PIPELINE REPLACEMENT - Approximately 8,500 feet of old galvanized pipeline along Kaumana Drive will be replaced by a new 8-inch, 6-inch, and 4-inch ductile iron pipeline.
Estimated cost: $700,000

SADDLE ROAD WELL "A" EXPLORATORY DRILLING - In response to the Safe Drinking Water Act, the Department would like to find a 2,100 GPM ground water source for Kaumana, an area currently serviced by the Olaa Flume spring source.
Estimated cost: $1,200,000

KAAPOKO HOMESTEADS PIPELINE REPLACEMENT - This project replaces about 400 feet of existing 3-inch galvanized iron pipe with new 6-inch ductile iron pipeline. The project is located in Papaikou.
Construction cost: $45,000

NORTH HILO:

WAIPUNALEI 6-INCH WATERLINE INSTALLATION - The water system will be brought up to standards by replacing about 1,400 feet of existing 1-inch PVC pipe within Stevens Road with 6-inch ductile iron pipe.
Estimated cost: $95,000

HAMAKUA:

CONSTRUCTION OF THE HONOKAA "HOSPITAL", DE SILVA, AND SAWMILL BOOSTER ADDITIONS - New booster pumps will be installed at the Honokaa "Hospital", De Silva and Sawmill stations. This will increase pumping capacity from the Haina Well to service the Ahualoa area.
Construction cost: $281,000

COSTA-HAGIWARA PIPELINE REPLACEMENT - This project will involve the replacement of about 4,300 feet of existing 4-inch G.I. pipeline with 8-inch, 6-inch, and 4-inch D.I. waterlines. In addition, a new inlet control, pressure relief valve unit and renovations to the existing Hagiwara storage reservoir will be constructed.
Estimated cost: $400,000

NORTH/SOUTH KOHALA:

NORTH KOHALA BOOSTER IMPROVEMENTS - One additional booster pump each will be installed at the Kaauhuhu Reservoir Nos. 2 & 3 sited to increase pumping capacity from the Hawi Deepwell No. 2 site to the upper Kaauhuhu Homesteads area.
Construction cost: $617,000

KOHAKOHAU DIVERSION STRUCTURE REPAIR - The Kohakohau Diversion Structure diverts water into Waimea's 50-MG Reservoir No. 2. This project fixes leaks along the base of this dam.
Construction cost: $108,000

KYNNERSLEY ROAD PIPELINE IMPROVEMENTS - This project replaces 342 feet of 4-inch transite main with 6-inch ductile iron pipe.
Construction cost: $91,300

PUUKAPU-NIENIE BOOSTER PUMP REPLACEMENT - The old Booster Pump Station Nos. 1 and 2 will be replaced by new pumping stations with modern pumping equipment.
Estimated cost: $500,000

WAIMEA BASEYARD IMPROVEMENTS - A new operation center building, including an above ground gasoline tank and paved parking will better accommodate personnel's needs.
Estimated cost: $650,000

NORTH/SOUTH KONA:

HIENALOLI-KAHULUI ROAD PIPELINE - The installation of approximately 3,200 feet of 8-inch D.I. water main from Kahului Road will provide another inlet to the Sugiyama Tank. In addition, the tank inlet controls will be upgraded.
Estimated cost: $350,000

ALII HIGHWAY 16-INCH WATERLINE - A new 16-inch waterline will be connected to existing waterlines within Queen Kaahumanu Highway and Alii Drive that are being serviced by the Kahaluu Shaft and/or the Kahaluu Well. This project will enable the Department to operate a more efficient and reliable water system in the area mauka of Alii Drive from Hillcrest Subdivision to Keauhou.

KONA DISTRICT SCADA SYSTEM - Supervisory Control and Data Acquisition (SCADA) Systems will be installed for 61 proposed and existing deepwell pump and booster pump stations, tank sites, and chlorinator stations in the Kona district. The SCADA system will use computer equipment to assist in monitoring these sites and will enhance efficiency in the operation and maintenance of the water system.
Estimated cost: $500,000

KONA BASEYARD FUEL STATION - The installation of a new 2,000-gallon above ground gas tank will allow refueling of vehicles at the Baseyard.
Estimated cost: $100,000

ALII DRIVE WATERLINE IMPROVEMENTS - The Department will replace about 7,200 feet of 4-inch G.I. pipeline along Alii Drive from White Sands Beach to Keauhou with a new 12-inch D.I. waterline.
Construction cost: $881,000

FINANCE DIVISION - Richard S. Tsunoda, Waterworks Controller

REVENUES AND CUSTOMER SERVICES - Operating revenues totaled $17.8 million compared to $15.9 million the previous year, an increase of $1.9 million or 12.0%. This increase is due to the water rate increase that went into effect at the beginning of the year. The number of services increased by 308 or 0.9%, from 33,094 to 33,402 customers. Water consumption decreased from 8.4 billion gallons or 22.9 million gallons per day last year, to 7.8 billion gallons or 21.4 million gallons per day this year.

OPERATING EXPENSES - Operating expenses, including depreciation, increased by $394 thousand or 2.2%, from $17.8 million last year to $18.2 million this year. Purchased power costs, accounting for 34.1% of total operating expense, increased 4.0% from last year to $6.2 million this year. Depreciation expense increased by 6.4% to $5.0 million, and labor costs increased 4.9% to $4.3 million, accounting for 27.5% and 23.6% of total operating expense, respectively.

NET LOSS AND RETAINED EARNINGS - The Department recorded a net loss of $258 thousand for the year. The adjustment for depreciation on contributed utility plant amounted to $3.7 million resulting in an increase in retained earnings of $3.5 million. This compares to a net loss of $1.6 million and increase in retained earnings of $1.8 million the year before. Other income, primarily interest earnings from investments, decreased $151 thousand as a result of a reduction in the amount of available funds invested. Other deductions increased $19 thousand due to "book" losses from the retirement of utility plant assets not fully depreciated.

OPERATIONS DIVISION - Kenneth Ikemori, Chief of Operations

The Operations Division was faced with the continuing dry conditions of the previous year, and accordingly, Division employees were up to the numerous tasks to continue water service to our customers.

The "privatization issue" (Konno Decision) and the resulting temporary suspension of numerous contracts provided quite a challenge to the Division. It is to the credit and patience of division employees that we were able to pull together in keeping everything going as normal as possible until the crises was over. Affected contracts, just to name a few, were: after-hour answering services, tank and pump site grass-cutting and maintenance, janitorial services, major well repairs, and vehicle maintenance.

Noted Division Projects were: the temporary installation of the Ookala Deep Well when the former plantation shaft source was permanently shutdown, Kahaluu Well D, Holualoa Well, and Lalamilo Well D repairs. Major water main breaks occurred on Kawaihae Road adjacent to Kawaihae Harbor, and Alii Drive adjacent to Kona Inn - Kailua-Kona.

In-house projects were the installation of a steel replacement tank for and adjacent to the Pohakea Redwood in Paauilo, the construction of an in-line booster pump station near Waipio Valley, refurbishment, fencing and repainting of Bond Tank, North Kohala.

Deepwell pump production was 8.85 billion gallons as compared to last year's 9.61 billion gallons, a decrease of 7.9%. Ironically, although as reported earlier of a dry year, the Kona area experienced a wetter than normal year and since that area is supplied solely by well water, hence this decrease. The accompanying power costs was $5,214,000 compared to last year's $5,974,000 or a 4.0% increase which was attributed to HELCO rate increases and other charges such as stand-by power charges.

OPERATIONS DIVISION WORK SUMMARY
JULY 1, 1996 TO JUNE 30, 1997