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 mission is to provide a continuous supply and adequate quantities of safe drinking water to its customer at a reasonable cost.

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 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 - July 1, 1999 to May 31, 2000

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.

Operations Division Head (Acting) – June 1, 2000 to June 30, 2000

Mr. Dennis K. W. Lee, born and raised in Hilo, currently heads the Operations Division. Mr. Lee received his bachelor’s degree in civil engineering from the University of Hawaii at Manoa. Normally, Mr. Lee is Section Head for the Water Quality Assurance and Control Section of the Engineering Division.

Prior to his employment with the Department in 1990, Mr. Lee was the Area Engineer with the U.S. Department of Defense on the Big Island and before that Engineer in charge of the County of Hawaii Solid Waste Disposal program. He and his wife, Thelma, have 4 sons.

Engineering Division Head

Mr. Gary S. Kawasaka who was born and raised in Hilo heads the Engineering Division. 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.

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.

HIGHLIGHTS/ACTIVITIES

The following highlights the Department’s activities for the fiscal year 1999-2000.

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:

Keaau-Pahoa Phases II and III 12-inch trunkline. A new 12-inch trunkline will be installed in conjunction with the State of Hawaii Department of Transportation Highway improvement project. The completion of this water improvement project will interconnect the Keaau system with the Pahoa water system.

Estimated Cost: $1,700,000

Paradise Drive Fire Line. With available funds from the County of Hawaii, a new water main will be installed along Paradise Drive down to the volunteer fire station. The completion of this project will provide some means of fire protection services for the volunteer fire station in addition to providing for fire hydrants and residential water metered service along Paradise Drive.

Estimated Cost: $1,000,000

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 construction of the well 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 construction of the well is intended to follow the construction of the exploratory well drilling phase.

Estimated Cost: $700,000

South Hilo:

Department of Water Supply new office space. Bids were opened for the renovation work at the existing Waiakea Office Plaza. This renovation work consists of demolition work of the interior and installing new partition work in place complete to create new office space for Administration, Fiscal and Engineering Division of the Department.

Estimated Cost: $810,000

Kaumana Drive Pipeline Replacement, Phase 2. The pipeline replacement is along Kaumana Drive from Hokulani Street to Ainako Avenue. This project will replace an older 5-inch galvanized iron waterline with new 8-inch ductile iron pipeline. The completion of this project will also provide for improved flow and fire protection.

Estimated Cost: $884,000

Mohouli Street Extension 12-inch waterline. This water improvement project will be done in conjunction with the County of Hawaii road extension project. The completion of this project will provide the department with system flexibility in transmitting water to parts of our Hilo City Water System.

Estimated Cost: $800,000

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 the 1140-foot elevation 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

Saddle Road Well "A" Production Well. The existing well at the 1906-foot elevation will be outfitted with a deepwell pumping unit and appurtenances. The completion of this project will provide a source of potable water to replace the present surface water source.

Estimated Cost: $1,200,000

North Hilo:

Ninole 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:

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:

North Kohala Water System Improvements. A contract was awarded for the replacement of older pipelines within various areas of our North Kohala Water System. The completion of this project will improve flow and pressure conditions in addition to providing for fire protection.

Estimated Cost: $1,800,000

South Kohala:

Kawaihae Road Waterline Replacement Project. This project consists of the replacement of an older section of 6-inch pipeline with new 12-inch waterline. The completion of this project will improve flows for domestic and fire needs.

Estimated Cost: $1,400,000

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 is being 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: $1,100,000

Holualoa 0.5-MG Concrete Reservoir Construction. A contract was awarded for the construction of a new concrete reservoir at our Holualoa site. This reservoir will replace an existing steel reservoir at that site and will provide for much needed storage for our Kona Water System.

Estimated Cost: $1,100,000

South Kona:

Waipunaula 1.0-MG 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:

Pahala Exploratory Well No. 2. Planning, design, land acquisition and permitting requirements were in progress for this fiscal year. This exploratory drilling is the first phase. Subsequent phase if for the outfitting of this well into a production source. The completion of both phases will provide for a backup source for our Pahala Water System.

Estimated Cost: $1,000,000

Finance Division

(Unaudited Financial Operating Results for FYE 06/30/00):

REVENUES AND CUSTOMER SERVICES – Operating revenues totaled $20,964,517 compared to $20,476,091 the previous year, an increase of $488,426 or 2.4%. This modest increase is due to the increase in number of water services for the year. The number of services increased by 830 or 2.4%, from 34,254 to 35,084 customers. Water consumption increased from 8.173 billion gallons or 22.4 million gallons per day last year, to 8.352 billion gallons or 22.8 million gallons per day this year.

OPERATING EXPENSES – Operating expenses, including depreciation, increased by $1.7 million or 7.7%, from $22.2 million last year to $23.9 million this year. Purchased power costs, accounting for 32.0% of total operating expenses increased 17.7% from last year to $7.7 million this year. Depreciation expense increased by 5.9% to $7.6 million, and labor costs increased 19.2% to $5.7 million, accounting for 31.8% and 23.8% of total operating expenses respectively.

NET INCOME AND RETAINED EARNINGS – Net loss for the year was $2.8 million. The adjustment for depreciation on contributed utility plant amounted to $5.3 million resulting in an increase in retained earnings of $2.5 million. This compares to a net loss of $1.3 million and increase in retained earnings of $3.8 million the year before. Other income increased $308 thousand from miscellaneous revenues. Other deductions increased $586 thousand due to "book" losses from the retirement of utility plant assets and office rental expenses.

Operations Division

Lalamilo, Waimea Treatment Plant and Mauna Kea Uplands scada systems were put online.

Deep well pump production was 9.16 billion gallons as compared to last year’s 9.56 billion gallons, a 4.2% decrease. Power costs increased from $6,364,000 to $7,370,246, a 15.8% increase, attributable to HELCO fuel oil rate increases.

1. Construction of a new meter room at the Hilo Operations Center.
2. Restoration of Kurtistown #1 and #2 Tanks and also Haihai Tank.
3. Holualoa Deep Well Repair
4. Piihonua Well A Repair
5. Panaewa Deep Well No. 1 Repair
6. Haina D/W Repair
7. Laupahoehoe Deep Well No. 2 Repair
8. Keei Well A Repair

1. Installation of continuous water quality-monitoring equipment for Alili Tunnel Spring.
2. Installation of a 200 gpm filter treatment system for emergency use at Haina and Kukuihaele Water Systems.
3. Renovation of the existing electrical/electronic control room at Hakalau School Well.
4. Provide temporary office space for GIS function including installing telecommunication systems.
5. Improvements to pump and tank sites to comply with Department of Health standards.
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.
11. Installation of backup pump for Waimea Treatment Plant backwash pump.
12. Installation of soft-start motor control center at Kahaluu Well D.
13. Installation of Pohakea Booster B Pump

OPERATIONS DIVISION WORK SUMMARY

July 1, 1999 to June 30, 2000

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 2000, John W. Clark and John S. Tolmie, Jr., respectively, serve as Chairman and Vice-Chairman of the Commission.

Both John R. Souza and Edmund W. Hohu left on expired terms in December 1999. Also, Earl Nakashima replaced John R. Souza and Pamela H. Hons replaced Edmund W. Hohu.

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