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.

The Department has a staff of 136 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 Waimea, Keauhou, and Waiohinu. Other than its administrative personnel, the Department is organized into three major divisions.

Operations Division Head

Mr. Kenneth Ikemori, born and raised on Maui, heads the Operations Division. 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.

Engineering Division Head

Mr. Owen Nishioka, born and raised in Hilo, currently heads the Engineering Division on temporary assignment. Mr. Nishioka received his bachelor’s degree in civil engineering from the University of Hawaii at Manoa. Normally, Mr. Nishioka is the Section Head for the Engineering Design and Construction Section of the Division. He and his wife, Jan, have a daughter and a son.

Waterworks Controller

Mr. Richard S. Tsunoda, born in Hilo and raised in Papaikou and Paukaa, heads the Finance Division. Mr. Tsunoda graduated from the University of Hawaii at Manoa with a BBA degree in accounting. Mr. Tsunoda joined the Department in 1985 after working for Hilo Coast Processing Company. He is a member of the Hawaii Works 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.

Assistant Waterworks Controller

Mr. Richard Sumada, born on Kauai and raised in Hilo, assists the Waterworks Controller. Mr. Sumada graduated from Washington State University with a bachelor’s degree in accounting and from the University of Hawaii at Manoa with a MBA degree. Prior to joining the Department, Mr. Sumada was employed by the Legislative Auditor’s Office of the County Council and by the accounting firm of Deloitte & Touche. Mr. Sumada is Certified Public Accountant. He and his wife, Carolyn, reside in Hilo.

HIGHLIGHTS/ACTIVITIES

The following highlights the Department’s activities for the fiscal year 1998-1999.

Engineering Division

The following major capital improvement projects were under construction, were in various stages of contract award, or, were in the planning and design phases during the fiscal year.

Puna:

Olaa Station No. 5 to No. 6 Water System Improvements Part 1, 0.3-MG Reservoir, Booster Pump Station, and Removal of Existing Facilities - The existing steel water tank and booster pump station facilities will be replaced by a larger capacity concrete reservoir and higher capacity booster pumps at the Olaa Station No. 5 reservoir and booster pump site. The work includes the demolition of the existing facilities on the site.

Estimated Cost: $500,000

Olaa Station No. 5 to No. 6 Water System Improvements Part 2, 12-inch and 6-inch Waterline – New ductile iron waterlines will be installed along the Volcano Highway and its vicinity between the Olaa Station No. 5 and the Olaa Station No. 6 sites to replace older distribution and transmission waterlines. The Department will benefit from operation and maintenance cost savings after the new waterlines are put into service.

Estimated Cost: $500,000

Happy Homes Subdivision Pipeline Replacement – A new 6-inch waterline will replace leaking, aged, galvanized iron waterlines from along the Huina Road area leading into the Happy Homes subdivision. The water system improvements will enhance flow capacity of the water mains leading into the subdivision.

Estimated Cost: $900,000

Keonepoko Iki Production Well - The "outfitting" (installation of the pump and pump motor controls) phase of the well’s construction will provide an additional source of potable water for the State’s Pahoa Agricultural Subdivision, the Pahoa area and portions of Pohoiki and Kapoho. This phase of the well construction is intended to follow the construction of the exploratory well drilling phase.

Estimated Cost: $700,000

South Hilo:

Department of Water Supply Office Space Design – The Department of Water Supply’s Administration, Finance, and Engineering Divisions proposed move to the former J.C. Penney building will require an office space design. The proposed office area within the building will relieve crowded conditions and provide for future expansion of the office areas. The final design will be based on the best use of the area allocated to the Department by the County of Hawaii.

Estimated Cost: $35,000

Hardening of Pepeekeo Radio Relay Station – The existing radio relay station will be replaced with an earthquake and hurricane-proof building to ensure the Police, Water and Fire Departments’ radio systems are operative during these natural disasters. The design and construction of the project, which also includes the construction of a radio tower, is funded by the Federal Emergency Management Agency and the Department of Water Supply.

Estimated Cost: $85,000

UH- Hilo University Park Infrastructure Improvements, Phase 2B 1.0-MG Reservoir – The State Department of Accounting and General Services plans to construct a million gallon reservoir, transmission waterlines, and access roads to the facilities. The purpose o f the project is to provide necessary storage capacity for the proposed developments of the University of Hawaii at Hilo. The Department of Water Supply is participating in the project by providing water system design review services and by providing funding for a portion of the project’s overall cost. The 1.0-MG reservoir will be utilized to supplement the storage capacity of South Hilo water system. When completed, the State will dedicate the water system facilities to the Department of Water Supply for operation and maintenance.

Estimated Cost: $400,000 (Department of Water Supply funds)

Waiakea Mill Pond Sewer and Water System Improvements – The existing galvanized iron waterlines will be replaced with 6-inch ductile iron waterlines and copper service laterals, including fire hydrants to provide improved water service and fire protection to the immediate area. The water system improvements will be done in conjunction with the Department of Public Works’ drainage and roadway improvements. The Department of Water Supply is participating in the project by providing funding for the design and construction of the water system improvement portion of the project.

Estimated Cost: $90, 000

Piihonua-Kukuau 1.0-MG Reservoir and Transmission Line – A new million gallon reservoir and a 16-inch transmission waterline will improve the storage and flow capacities of the Piihonua- Kukuau water system . This system serves portions of Kaumana, the entire Sunrise Estates subdivision, the University of Hawaii –Hilo, and portions of the Waiakea Homesteads areas in South Hilo.

Estimated Cost: $3,000,000

Kaieie Mauka Exploratory Well – A well will be constructed at elevation 1140 to provide a source of potable water to replace the surface water source which is presently servicing the Kaieie Mauka water system. The well, once developed into a production well, will be a

reliable source of water during periods of low rainfall which often results in diminished flows from the present surface water source.

Estimated Cost: $800,000

Honomu Exploratory Well – A well will be constructed at elevation 525 to provide a source of potable water to replace the present surface water source. Once fully developed into a production well, the well will be the source of potable water for the Honomu Water System.

Estimated Cost: $1,300,000

Saddle Road Well "A" Exploratory Drilling – A well will be constructed at elevation 1906 feet. The well is being drilled to provide a source of potable water to replace the present surface water source.

Estimated Cost: $1,200,000

North Hilo:

inole Exploratory Well - A well will be constructed in the Ninole area to replace the present surface water source. The well, once fully developed into a production well, will be the source of potable water for the Ninole Water System.

Estimated Cost: $500,000

Hamakua:

Kukuihaele Exploratory Well – A well will be constructed at elevation 960 to serve as a possible potable water source to supplement the Kukuihaele Spring water source.

Estimated Cost: $800,000

Pohakea Water System Improvements Phases 1 and 2 – Two new booster pump stations, two new 100,000-gallon concrete reservoirs, and transmission waterlines to replace the existing water system facilities in the area which are outdated.

Estimated Cost: $1,400,000

North Kohala:

Makapala-Keokea Exploratory Well – A well will be constructed at elevation 400 feet. Should the well drilling and testing be successful, the well will be outfitted on a later phase of construction to make it a production well. The well then serve as a potable water source for the Makapala-Keokea area.

Estimated Cost: $400,000

South Kohala:

Puukapu-Nienie Booster Pump Replacement – New booster pumps, pump control equipment, control buildings, and pump site improvements will be constructed to improve the reliability and overall capacity of the water system servicing the Puukapu-Nienie area.

Estimated Cost: $500,000

Waimea Baseyard Improvements – The improvements include the construction of a new operations center building to house the Waimea Baseyard’s personnel and equipment. The building will provide expanded space for equipment storage, personnel offices and conference rooms, and a customer service facility. Another baseyard improvement is a fuel filling station for the Department’s use.

Estimated Cost: $750,000

North Kona:

New Waiaha Exploratory Well – A 1,700- foot deep well will be drilled at the Department’s Waiaha Baseyard site. The well, once developed into a production well, will help to supplement the Department’s water resources in the North Kona area.

Estimated Cost: $850,000

Kahului-Hienaloli Road Pipeline – New reservoir controls and a connecting 8-inch transmission waterline will be constructed. Water from more than one source will be utilized and transmitted to the Kona Heights reservoir via the transmission waterline, thus improving the reliability of the water system servicing the Kona Heights area.

Estimated Cost: $350,000

South Kona:

Waipunaula 1.0MG Reservoir and Transmission Line – A new million gallon concrete reservoir will replace the existing steel tank. Acquisition of land from properties adjacent to the reservoir site will allow adequate area to construct the new reservoir. A 12-inch diameter transmission waterline from the reservoir site to the Hawaii Belt Road will be constructed to make use of the increased storage capacity for future developments in the Captain Cook area.

Estimated Cost: $1,200,000

Ka’u:

Waiohinu Exploratory Well – An exploratory well will be drilled and tested to determine the feasibility of using it as a supplementary source of drinking water for the Waiohinu and the Naalehu areas.

Estimated Cost: $1,000,000

(Unaudited Financial Operating Results for FYE 06/30/99):

REVENUES AND CUSTOMER SERVICES – Operating revenues totaled $20,476,000 compared to $20,365,000 the previous year, an increase of $111,000 or 0.5%. This modest increase is due to the increase in number of water services for the year. The number of services increased by 538 or 1.6%, from 33,716 to 34,254 customers. Water consumption decreased from 8.159 billion gallons or 22.4 million gallons per day last year, to 8.076 billion gallons or 22.1 million gallons per day this year.

OPERATING EXPENSES – Operating expenses, including depreciation, increased by $600 thousand or 3.0 %, from $19.6 million last year to $20.2 million this year. Purchased power costs, accounting for 30.9% of total operating expenses, decreased 4.1% from last year to $6.2 million this year. Depreciation expense increased by 1.9% to $5.3 million, and labor costs increased 4.0% to $4.8 million, accounting for 26.4% and 23.6% of total operating expenses respectively.

NET INCOME AND RETAINED EARNINGS – Net income for the year was $692 thousand. The adjustment for depreciation on contributed utility plant amounted to $3.9 million resulting in an increase in retained earnings of $4.6 million. This compares to a net income of $1.2 million and increase in retained earnings of $5.0 million the year before. Other income increased $47 thousand from miscellaneous revenues. Other deductions increased $99 thousand due to "book" losses from the retirement of utility plant assets and office rental expenses.

Operations Division

This year’s dry conditions occurred in the summer months unlike the past droughts that occurred at the beginning of each year. Fortunately, we will be better able to meet current needs because of last year’s projects such as the temporary booster pumps at Piihonua No. 1 and other projects that are still in place and can be utilized as needed.

Deep well pump production was 9.56 billion gallons as compared to last year’s 8.98 billion gallons, a 7.5% increase. The resulting power costs decreased from $6,583,700 to $6,364,000, a 3.3% reduction, attributable to favorable HELCO power rate schedule selections, HELCO fuel oil rate schedule reductions, off-power pumping and other effective means to keep power costs down.

Noted Division Projects were:

1. Halekii D/W Repair
2. QLT D/W Repair
3. Kahaluu D/W "D" Repair
4. Keei Well "C" Repair
5. Naalehu D/W Repair
6. Haina D/W Repair
7. Papaikou D/W Repair
8. Kalapana D/W Repair
9. Kaauhuhu Reservoir Reroofing

In-House Projects:

1. Replaced earthquake-damaged Pahala No. 3 redwood tank with 4800-gallon corrugated steel tank.
2. Replaced Pahala No. 4-redwood tank with 5000-gallon steel tank, also replaced existing fencing with new.
3. Construction of new Plant Section office and conference room at Hilo Base Yard.
4. Replaced 23 fire hydrants at Waiakea Houselots.
5. Repaired a number of access roads to pump and tank sites such as Kaauhuhu reservoir, Makapala tank, Kukuihaele tank and others.
6. Miscellaneous repairs to pump and tank sites to comply with Dept of Health sanitary surveys.
7. New booster pumps installed at Haaheo Pump Stations No. 2, 3, & 4.
8. Hydro-generator overhaul, backwash and clear-water pump repairs at Waimea Water Treatment Plant.
9. Haina booster, Saw Mill and Palani 575 booster pump repairs.
10. Electrical surge arrestor protection installed at all well sites.

OPERATIONS DIVISION WORK SUMMARY

July 1, 1998 to June 30, 1999

Water Commission

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 Chairman and Vice-Chairman 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 capital improvement projects budgets. The Commission may also conduct public hearings periodically on the Department’s water rates and Rules and Regulations.

Currently and since January 1999, John R. Souza of the Hamakua and Yukio Takeya of At Large, respectively, serve as Chairman and Vice-Chairman of the Commission.

Fred T. Yamashiro of South Kohala and Thomas P. Whittemore of Kona left on expired terms in December 1998. Also at the same time, Glenn Kuwaye At Large replaced Kenneth Sowden on December 7, 1998. Raymond Kawamata filled Kohala District position in 1999, replacing Fred T. Yamashiro on April 20, 1999. John S. Tolmie, Jr., filled an At Large position in 1999, replacing Thomas P. Whittemore on June 7, 1999.

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

John Clark 12/31/02

George W. Harai 12/31/00

Edmund W. Hohu 12/31/99

Raymond Kawamata 12/31/03

Glenn Y. Kuwaye 12/31/01

Robert H. Makuakane 12/31/02

John R. Souza 12/31/99

Yukio Takeya 12/31/01

John S. Tomie, Jr. 12/31/03