BOARD OF WATER SUPPLY of the COUNTY OF KAUA‘I

REGULAR MEETING Second Floor, Microbiology Lab Bldg Kaua‘i County Department of Water 4398 Pua Loke Street, Līhu‘e, Kaua‘i, Hawai‘i 96766

THURSDAY, MAY 21, 2015

10:00 a.m.

Or soon thereafter

A. CALL TO ORDER

B. ROLL CALL

C. ACCEPTANCE OF AGENDA

D. MEETING MINUTES Review and approval: Regular Board Meeting – March 19, 2015 Regular Board Meeting – April 23, 2015

Review and approval of Executive Session: Executive Session – April 23, 2015

E. CORRESPONDENCE/ANNOUNCEMENTS 1. Correspondence from Mr. Eddie Doi, Acting Chief of Water Resources and Planning, regarding HB500, SD1 Relating to the State Budget to Appropriate Funds for the Operating and Capital Improvement Budget of the Executive Branch for Fiscal Years 2015, 2016 and 2017

F. BOARD COMMITTEE REPORTS

G. OLD BUSINESS 1. Draft Budget for Fiscal Year 2015-2016 a. Fiscal Year 2015 – 2016 Draft Operating Budget b. Fiscal Year 2015 – 2016 Draft Capital Outlay Budget

H. NEW BUSINESS 1. Manager’s Report No. 15 – 37 - Discussion and Possible Action for the Seventh Amendment to Contract No. 427 and Transfer of Funds For Job No. 02-14, Kapaʻa Homesteads 0.5 Million

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NOTE: If you need an ASL Interpreter, materials in an alternate format, or other auxiliary aid support, please contact Edie at 245-5406 or email: [email protected] at least seven (7) calendar days before the meeting.

Page 1 BOARD OF WATER SUPPLY REGULAR MEETING May 21, 2015

H. NEW BUSINESS cont’d Gallon Storage Tank and Kapahi 1.0 Million Gallon Storage Tank and Connecting Pipelines Wailua-Kapaʻa Water System, Kapaʻa, Kauaʻi, Hawaiʻi 2. Manager’s Report No. 15 – 38 - Discussion and Possible Action on the Right of Entry Agreement for S-2009-21, Puakea Subdivision Phase II, Affecting the Following Landowners in Lihue, Kauai, Hawai'i 1. Grove Farm Properties, Inc. of TMK: (4) 3-3-003:041, Lihue, Kauai, Hawaii 3. Manager’s Report No. 15 – 39 - Discussion and Possible Action on Job No. 13-05, Water Plan 2020 Project WKK-09, Kolo Road Main Replacement, Kilauea, Kaua‘i, Hawai‘i 4. Manager’s Report No. 15 – 40 - Discussion and Possible Action on Water Plan 2020 Project PLH-39, Lihue Base Yard Improvements for the Department of Water, Lihue Water System, Lihue Kauai, Hawai'i 5. Manager’s Report No. 15 – 41 - Discussion and Possible Action to approve Utility Agreement No. 2217 for the Nawiliwili Road Improvements, Vicinity of Kaumuali‘i Highway to Kanani Road, Project No. NH-058-1 (006) 6. Manager’s Report No. 15-42 - Discussion and Possible Action on Board Policy 17, Payment of Communication Devices

I. STAFF REPORTS MONTHLY 1. Discussion and Receipt of the Kaua‘i County Water Department’s Statement of Revenues and Expenditures a. April Monthly Summary Budget 2. Discussion and Receipt of the Report by the Public Relations Specialist on Public Relations Activities 3. Discussion and Receipt of the Chief of Operation’s Summary Report on Operational Activities 4. Discussion and Receipt of the Manager and Chief Engineer’s Monthly Update Regarding Activities of Note of the DOW a. Report of the BAB pay down as of April 2015

J. EXECUTIVE SESSION Pursuant to H.R.S. §92-7(a), the Board may, when deemed necessary, hold an executive session on any agenda item without written public notice if the executive session was not anticipated in advance. Any such executive session shall be held pursuant to H.R.S. §92-4 and shall be limited to those items described in H.R.S. §92-5(a).

K. TOPICS FOR NEXT WATER BOARD MEETING (June 2015) 1. Manager’s Report No. 14-16 – Part 4 Fixing Rates for Water Service, Section VII Facilities Reserve Charge (FRC) Update (4) 2. Discussion and Possible Action relating to providing water service outside of the water zone 3. Discussion and Possible Action for the Board of Water Supply (Board) to enter into a Use and Occupancy Agreement No. 237 (UOA) and a Memorandum of Agreement (MOA) with the State of Hawaii for Job No. 11-10, Water Plan 2020 No. K-18, 8-inch Water Main Replacement along Halewili Road (Kaumuali‘i Highway to Haku Hale Street) Kalāheo, Kaua'i, Hawai'i Page 2 of 3 NOTE: If you need an ASL Interpreter, materials in an alternate format, or other auxiliary aid support, please contact Edie at 245-5406 or email [email protected] at least seven (7) calendars day before the meeting. Page 2 BOARD OF WATER SUPPLY REGULAR MEETING May 21, 2015

L. TOPICS FOR FUTURE WATER BOARD MEETINGS 1. Manager’s Report No. 11-28 – Discussion and Possible Action regarding Part 5 of the Rules, Facilities Reserve Charge – Proposed New Rule, SBRRB Results (awaiting Part 4 Section VII, Facilities Reserve Charge to be submitted together) 2. Manager’s Report No. 14-24 – Discussion and Possible Action regarding Part 4 Section I of the Rules, General Use Rates Proposed Amendments, SBRRB Results (awaiting Part 4 Section VII, Facilities Reserve Charge to be submitted together) 3. Discussion and Possible Action of Proposed Delegation of a Meter Restriction Board Policy No. 30 4. Budget Resolution No. 16-1 (07/15), Budget for Fiscal Year 2015-16 (July) 5. Board AWWA National Conference Reports (July)

M. UPCOMING EVENTS 1. AWWA Annual Conference, Anaheim, CA (June 7-10, 2015) 2. DOW Make a Splash Water Festival (September 24, 2015) 3. HWWA Hawaii Section, Honolulu, HI (October 14-16, 2015)

N. NEXT WATER BOARD MEETING 1. Thursday, June 18, 2015, 10:00 a.m. 2. Thursday, July 23, 2015, 10:00 a.m. 3. Thursday, August 20, 2015, 10:00 a.m. 4. Thursday, September 17, 2015, 10:00 a.m.

O. ADJOURNMENT

Page 3 of 3 NOTE: If you need an ASL Interpreter, materials in an alternate format, or other auxiliary aid support, please contact Edie at 245-5406 or email [email protected] at least seven (7) calendars day before the meeting. Page 3

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MEETING MINUTES BOARD OF WATER SUPPLY Thursday, March 19, 2015

The Board of Water Supply, County of Kaua‘i, met in regular meeting at the Board Conference Room in Līhu'e on Thursday, March 19, 2015. Chair Shiraishi called the meeting to order at 10:10 a.m. The following Board members were present:

BOARD: Mr. Sherman Shiraishi, Chair Mr. Clyde Nakaya, Vice Chair Ms. Laurie Ho Mr. Hugh Strom Mr. Raymond McCormick Mr. Larry Dill

EXCUSED: Mr. Michael Dahilig

Quorum was achieved with 6 members present at the time of roll call.

STAFF: Mr. Kirk Saiki Mr. Ryan Smith Ms. Marites Yano Mr. Dustin Moises Mr. Keith Aoki Mr. Joel Bautista Ms. Kim Tamaoka Ms. Sandi Nadatani- Mendez Ms. Mary-jane Akuna Deputy County Attorney, Andrea Suzuki

GUESTS: Ms. Melissa Fisher, Kaua`i Watershed Alliance/The Nature Conservancy Mr. Trae Menard, Kaua`i Watershed Alliance/The Nature Conservancy Mr. Allan Rietow, Kaua`i Watershed Alliance/The Nature Conservancy Mr. Chipper Wichman, National Tropical Botanical Gardens & Kaua`i Watershed Alliance member Mr. Galen Kawakami, DLNR~DOFAW, Kaua`i District Forester & Chair of the Kaua`i Watershed Alliance

ACCEPTANCE OF AGENDA Mr. Dill moved to approve the agenda as circulated; seconded by Mr. Nakaya; with no objections, motion carried with 6 ayes.

MEETING MINUTES Review and approval: Regular Board Meeting – February 19, 2015

Mr. Nakaya moved to approve the Regular Meeting Minutes of February 19, 2015; seconded by Ms. Ho; with no objections, motion was carried with 6 ayes.

Regular Meeting: Thursday, March 19, 2015 - Page 1 of 9

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Review and approval of Executive Session: Executive Minutes – February 19, 2015

Mr. Nakaya moved to approve the Executive Session Minutes of February 19, 2015; seconded by Mr. McCormick; with no objections, motion was carried with 6 ayes.

E. CORRESPONDENCE/ANNOUNCEMENTS 1. Correspondence from Mr. Allan Rietow, The Nature Conservancy, Kaua'i Program regarding the Kaua'i Watershed Alliance – Mauka Watershed Protection Project, dated February 3, 2015

Chair Shiraishi was pleased to welcome the members and staff from the Kaua`i Watershed Alliance (KWA) and The Nature Conservancy (TNC). The Department of Water (DOW) supports and partially funds the KWA.

Ms. Melissa Fisher and Mr. Allen Rietow presented the KWA Management Plan Update (Detailed Operational Plan) dated April 2012

Ms. Fisher, Deputy Director of the Kaua`i Program and Mr. Rietow, Field Representative for the Field Program acknowledged the funding support from the DOW the past four (4) years which enabled them to complete their work. Ms. Fisher introduced the following guests: Mr. Galen Kawakami, Chair of the Kaua`i Watershed Alliance and District Manager of DLNR-DOFAW; Mr. Chipper Wichman, President, and CEO of the National Tropical Botanical Garden & member of the Kaua`i Watershed Alliance; and Mr. Trae Menard, Director of Forest Conservation & Kaua`i Program Director for The Nature Conservancy.

Ms. Fisher presented slides of their work and some of the Board members were provided an opportunity by helicopter to see their work with Mr. Rietow.

BACKGROUND: KWA was formed in 2003 to protect the watershed and source of water for Kaua`i. In 2003 – 2005 after KWA was formed, The Nature Conservancy was asked to write a resource management plan initially written by Mr. Rietow and Mr. Menard. KWA has worked on the goals of the plan that was updated in 2012. The main focus of the plan is to construct fences to remove invasive animals, to remove non- native plants, remove invasive weeds and to maintain those watershed areas.

Alliance members and large landowner members encompasses the priority of watershed areas the State wants to protect; the native forest. Goats and pigs were removed in a fenced enclosure in Waihina. The state is constructing green fences in the Halehaha area which will be built in a year.

The 10-year time line includes Kamehameha Schools land in Lumaha`i. KWA is working with them to write the management plan to potentially build fences. Kamehameha Schools has already started weed control.

Ms. Fisher mentioned that contracted work is done by hand by the Kokee Resource Conservation Program to remove Strawberry guava and the Himalayan Ginger. Resource mapping was contracted to take photos and identify the Australian Tree Fern in Waihina Valley which is also difficult to treat. About 900 pigs have been taken out of Wainiha Valley.

Mr. Menard provided climate change statistics prepared by the University of Hawai`i and found that the west side of the islands will be getting drier during the next 50 to 100 years during the normal wet Regular Meeting: Thursday, March 19, 2015 - Page 2 of 9

Page 6 season. The statistics projected there would be a 25% to 50% reduction of rainfall. The protection of the forest is important to capture and retain the water. A copy of the “Statistical downscaling of rainfall changes in Hawai`i based on the CMIPS global model projections” was provided to the Board.

DISCUSSION: Mr. Strom asked how were the modeling perimeters determined? Mr. Menard looked at the rainfall gauges across the state during the past 100 years and combined it with the larger scale global climate models. Researchers took the 100 years rainfall from each station and compared it to conditions that were projected for the next 100 years. The larger scale perimeters, pressure systems and pressure bands in the atmosphere were used. The researchers found fewer large scale counter systems coming through. In the larger scale models, the shifting of the jet stream will be looked at.

Ms. Fisher thanked the DOW for their funding gift to assist with KWA’s work which has been beneficial.

Mr. Chipper Wichman and Mr. Galen Kawakami provided comments on the KWA presentation

Mr. Wichman shared the importance of the state’s involvement with KWA in land base and state funding. The DOW provided the core support and the $150,000 a year was invaluable.

One issue to consider is how to convert rain into aquifer yield and to protect the rain forest and the plants that make up the forest. When there are problems with invasive species the diversity is lost and you end up with a system with more run off that affects the streams. It reduces the percolation into the aquifer and the modeling in the future will be different. The system should be made as efficient as possible to capture rain into aquifer.

In a recent presentation Mr. Wichman mentioned that polar vortex causes the jet stream to come down. The vortex will become less stable.

Mr. Kawakami thanked the DOW for their continued support which covers the funding gaps. By having TCN manage is a big step in consolidating all the members for producing water for everyone. He also mentioned that since there have been fewer Kona storms, it will help determine what to plant in previous burnt out areas.

Mr. Wichman also thanked the DOW for the funding support.

DISCUSSION: Mr. Dill commented that DOW has supported TNC & KWA the last four years. Ms. Fisher had a slide on a broad illustration of how effective the removal of invasive species from the watershed.

KWA has been discussing ways the aquifer is recharging could be measured and documented which United States Geological Survey (USGS) should be doing.

Mr. Strom has seen salt water intrusion due to lack of natural forces vs. what is being pumped out of the ground. As data is gathered by KWA, he suggested it would be good to partner with other departments with reuse or use recycled water.

Mr. Wichman mentioned more educational programs could be done that ties in reduce, reused, recycle that is related to water and how do we create water friendly landscapes to educate the community? Regular Meeting: Thursday, March 19, 2015 - Page 3 of 9

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Ms. Ho expressed her thanks to the KWA and TNC for providing photos in the presentation.

Chair Shiraishi also thanked the KWA and TNC’s reinforcement of how important the watershed is.

Mr. Dill moved to receive the correspondence and presentation report from Mr. Allan Rietow, The Nature Conservancy, Kaua'i Program regarding the Kaua'i Watershed Alliance – Mauka Watershed Protection Project, dated February 3, 2015; seconded by Mr. Nakaya, with no objections, motion carried with 6 ayes.

2. Correspondence from Mr. W. Roy Hardy, Acting Deputy Director, Department of Land and Natural Resources, Commission on Water Resource Management regarding Hawai'i Water Workshops (Kaua'i, March 19th), dated February 19, 2015

Chair Shiraishi and Manager Saiki plan to attend the Hawai'i Water Workshop which is free to the public.

Ms. Ho moved to receive the correspondence announcement from Mr. W. Roy Hardy, Acting Deputy Director, Department of Land and Natural Resources, Commission on Water Resource Management regarding Hawai'i Water Workshops (Kaua'i, March 19th), dated February 19, 2015; seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

F. BOARD COMMITTEE REPORT None.

G. OLD BUSINESS 1. Manager’s Report No. 14-16 - Part 4 Fixing Rates for Water Service, Section VII Facilities Reserve Charge (FRC) Update (3)

BACKGROUND: Manager Saiki stated the Department met with the County Attorney and developed a draft on the new FRC rules. The consultant is currently reviewing the draft and the Department the Finance Committee will meet in early April to review the FRC draft.

The Department will provide an updated Manager’s Report No. 14-16 and time line for the April Board meeting. Copies of the time line from the February 19th Board meeting will be sent to the Board members.

Ms. Ho moved to receive Manager’s Report No. 14-16 - Part 4 Fixing Rates for Water Service, Section VII Facilities Reserve Charge (FRC) Update (3); seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

2. Manager’s Report No. 15-23 – Discussion and Possible Action on the Board’s Requests for background comments and recommendations from the Department regarding Class IV Zoning Permit Application Z-IV-2015-1, Use Permit U-2015-1, Group Child Care Center, TMK:4-2 9:18, Ke Kula Pono, LLC (Malia Finazzo-Krueger, Owner) Update (2)

BACKGROUND: Manager Saiki gave an updated regarding the Board’s request to meet with Ms. Malia Finazzo-Krueger, Owner Ke Kula Pono, LLC. Civil Engineer, Eddie Doi and Ms. Finazzo-Krueger discussed twice on the Regular Meeting: Thursday, March 19, 2015 - Page 4 of 9

Page 8 phone the alternative method which she understood. Ms. Finazzo-Krueger will check qualifications of the company she currently is using to see if they qualify; if not, she will look for a licensed engineer.

In a recent email from Ms. Finazzo-Krueger, she indicated the company she is currently using is a fire sprinkler company and is not certified but has contacted S.S. Dannaway.

Mr. Dill moved to receive Manager’s Report No. 15-23 – Discussion and Possible Action on the Board’s Requests for background comments and recommendations from the Department regarding Class IV Zoning Permit Application Z-IV-2015-1, Use Permit U-2015-1, Group Child Care Center, TMK:4-2 9:18, Ke Kula Pono, LLC (Malia Finazzo-Krueger, Owner) Update (2); seconded by Ms. Ho; with no objections, motion carried with 6 ayes.

H. NEW BUSINESS 1. Manager’s Report No. 15 – 28 – Discussion and Possible Action Request for the Board Chair to sign documents related to separate ownership of the lots created by Subdivision application S-2013-18 including a deed restriction that limits the development of the subdivision to not more than 10 dwelling units, Kalaheo, Kaua'i

BACKGROUND: Manager Saiki commented that the Department is recommending that the Board Chair sign all related documents required to separate ownership of the lots created by S-2013-18; including any related deeds and tax conveyance forms.

DISCUSSION: Civil Engineer, Keith Aoki explained that the Department purchased a parcel of land in Kalāheo for a proposed tank and well site. The Planning Department determined that it was not a separate lot of record. The Department is tied into a lot as joint owners by the Department and Mr. Marty Hoffman. The Department is in the process of completing a subdivision to officially have the lot boundary moved to the correct location.

Final Subdivision was received from the Planning Commission in December 2014 subject to recording the final subdivision map. The Quit Claim Deeds are required to separate ownership. Deputy County Attorney, Andrea Suzuki stated she has both drafts of the Quit Claim Deeds but is checking the TMK’s.

Chair Shiraishi had no problem signing the documents but indicated he did not see the Conveyance document from Mr. Hoffman to the Department in the Board packet. Chair Shiraishi’s concern was that the Department was giving up title to one of the lots, but not getting corresponding title to the lot we were entitled to.

The history of the lots were clarified by Deputy County Attorney, Andrea Suzuki. The Department bought the lot when defacto subdivisions … (inaudible) …. were recognized by the county; when the lot was purchased it was a separate lot. In previous court cases, the county was not going to recognize defacto subdivisions.

Mr. Dill moved to receive Manager’s Report No. 15 – 28 Action Request for the Board Chair to sign documents related to separate ownership of the lots created by Subdivision application S-2013-18 including a deed restriction that limits the development of the subdivision to not more than 10 dwelling units, Kalaheo, Kaua'i and approve subject to review and approval of the Conveyance document from Mr. Hoffman to the Department; seconded by Ms. Ho; with no objections, motion carried with 6 ayes. Regular Meeting: Thursday, March 19, 2015 - Page 5 of 9

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I. STAFF REPORTS MONTHLY 1. Discussion and Receipt of the Kaua‘i County Water Department’s Statement of Revenues and Expenditures a. January Monthly Summary Budget b. February Monthly Summary Budget

BACKGROUND: Waterworks Controller, Marites Yano referenced the February Monthly Summary Highlights (page 44) - YTD Revenues, Operating Expenses, Net Operating Income Capital Budget, Water Consumption Comparative Chart, Other Fiscal Ongoing Activities/ Initiative (page 45).

Today, the Department met with the Finance Committee which was productive. The next Finance Committee meeting is scheduled for Wednesday, March 25th.

Fiscal is working on reviewing and evaluating Statement of Qualifications (SOQ) received by DOW to engage consultants to 1) undertake a new Water Rate Study which is expected to start next year and 2) the procurement of a new billing system.

DISCUSSION: Chair Shiraishi questioned the YTD Actual Expenses is 29% less than the YTD Budget and ask if it will even out through the end of the fiscal year so that it increases? Will expenses be lower at the end of the fiscal year? (page 44)

Ms. Yano responded saying that it is more likely that it will be the same for normal expenditures such as Salaries and Wages as the trend would be the same pattern throughout the end of the year. The Professional Services budget is different such that expenses are not regular because invoices are generated as services are rendered.

Mr. Nakaya questioned if the expenses may go higher. Ms. Yano stated that Professional Services may not be used up completely before the end of this fiscal year although expenses for this item may still go up. The 29% Variance for total operating expenses is an indication of savings from budgeted operating expenses and not what has been spent.

Chair Shiraishi asked if the consultant’s fees were less and are tied to a few capital projects not going out? Ms. Yano responded by saying that these are Professional Services not related to capital projects such as the Water Use and Development plan.

Mr. Dill asked if Professional Services General shows a variance of $1.3M and would it be for the Water Use and Development plan (page 46). Ms. Yano explained that Professional Services spent $473,000 (73% savings). Under Contracts & Services line item, one is 9% - ahead of budget, but more of them are 70% to 90%. Mr. Dill asked why are we so far off? Are line items over budget? Manager Saiki commented that supplies are budgeted throughout the year.

Ms. Yano mentioned the major items under Professional Services which are the following: under Water Resources and Planning; it has a budget of $735,000. The Kaua'i Watershed Alliance has a one-time expense of $150,000; $500,000 for the Hydraulic Model update (for next year) and $45,000 for USGS. Under the Operations Division, large purchases are for Repair Maintenance.

Regular Meeting: Thursday, March 19, 2015 - Page 6 of 9

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Mr. Nakaya moved to receive the Receipt of the Kaua‘i County Water Department’s Statement of Revenues and Expenditures for January and February Monthly Summary Budget; seconded by Ms. Ho; with no objections, motion carried with 6 ayes.

2. Discussion and Receipt of the Report by the Public Relations Specialist on Public Relations Activities a. January Public Relations Activities b. February Public Relations Activities

BACKGROUND: Public Relations Specialist, Kim Tamaoka highlighted the need for water education in the schools that was mentioned earlier. She has been working on a grant with the Department of Health (DOH), Safe Drinking Water Branch to develop and implement a Source Water Protection education statewide program. Ms. Tamaoka traveled to Hilo and participated in the first Project Wet Make a Splash Mini Festival which was well received by the teachers. This summer, Ms. Tamaoka will continue to do training workshops to fund more resources in education for the schools around the state.

DISCUSSION: Chair Shiraishi requested to see if Ms. Tamaoka could incorporate and utilize the services of the KWA. The KWA was short staffed last year and will be invited to assist this year for Project Wet.

Ms. Ho moved to receive the Report by the Public Relations Specialist on Public Relations Activities for January and February; seconded by Mr. Nakaya; with no objections, motion carried with 6 ayes.

3. Discussion and Receipt of the Chief of Operation’s Summary Report on Operational Activities a. January Operation’s Summary Report on Operations Activities b. February Operation’s Summary Report on Operations Activities

BACKGROUND: Assistant Chief of Operations, Ryan Smith was available to answer questions from the Board in place of Chief of Operations, Val Reyna who was excused.

DISCUSSION: Mr. Dill was glad to see the Unbilled Water at the end of the Operations report. He requested to get an update on the water system. Manager Saiki stated the water system report has not been started yet and indicated there is a difference on how the Department bills for each service area.

Mr. Smith added that Operations is working on the billing side of the water system. Because Anahola had only one zip code, Operations was able to report unbilled water quickly.

Chair Shiraishi understood that the new billing system will track unbilled water more closely. Also, 11% unbilled water industry wide is a good figure.

Ms. Ho moved to receive the Receipt of the Chief of Operation’s Summary Report on Operational Activities for January and February; seconded by Mr. Nakaya; with no objections, motion carried with 6 ayes.

Regular Meeting: Thursday, March 19, 2015 - Page 7 of 9

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4. Discussion and Receipt of the Manager and Chief Engineer’s Monthly Update Regarding Activities of Note of the DOW

Mr. Nakaya moved to Receive for the Record, revised Page 1 of the Manager’s Update; seconded by Ms. Ho; with no objections, motion carried with 6 ayes. (Note: Only the yellow highlight numbers had changes for Contract No. 596 awarded to Valley Isle Motors, LTD. The Department was not asking for more money.)

BACKGROUND: Manager Saiki highlighted the following: 1. Personnel Matters – Update Customer Service Rep I – Filled this week CE V for Design – Selected (Note: The vacancy was due to a resignation.) Chief of Water Resources & Planning - Interviews to begin soon.

Open positions: Project Managers in CM CSR I in Billing Accountant I in Accounting

Deputy Manager – The Board discussed a succession plan to hire a Deputy Manager and to not budget for only six (6) months. The Department will begin the process to advertise and post and hire for a Deputy Manager which the Board felt was a critical position. The Board requested an update in the Manager’s Update report for April.

Mr. Dill requested a copy of the meter restrictions from Water Resources & Planning. Private Secretary, Mj Akuna stated the meter restrictions were reported from the last Quarterly Report. The next Quarterly Report will be in the April agenda packet.

Chair Shiraishi requested if Standard Operating Procedures (SOP) were completed on the checks and balances. Ms. Yano stated the SOP was submitted and received by the Board.

Ms. Ho moved to receive the Receipt of the Manager and Chief Engineer’s Monthly Update Regarding Activities of Note of the DOW as revised; seconded by Mr. Strom; with no objections, motion carried with 6 ayes.

a. Report of the BAB pay down as of February 2015

Ms. Ho moved to receive the Report of the BAB pay down as of February 2015; seconded by Mr. Strom; with no objections, motion carried with 6 ayes.

J. EXECUTIVE SESSION 1. Pursuant to Hawai'i Revised Statutes (HRS) Section 92-4, 92-5(a)(4), the purpose of this executive session is to review executive session minutes dated February 19, 2015. This consultation involves the consideration of the powers, duties, privileges, immunities, and/or liabilities of the Board and the Department as they relate to this agenda item. [Approved in open session]

2. Pursuant to Hawai'i Revised Statutes Sections 92-4 and 92-5(a)(4), the purpose of this executive session is for the Office of the County Attorney to provide the Board with a briefing regarding liabilities involved policies relating to providing water service outside of the water zone. This briefing and consultation involves the consideration of the powers, duties, privileges, immunities and/or liabilities of the Board and the Department as they relate to this agenda item. [Not entertained] *** This item will be included in the April Board Meeting.

Regular Meeting: Thursday, March 19, 2015 - Page 8 of 9

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K. TOPICS FOR NEXT WATER BOARD MEETING (May 2015) 1. Finance Committee Report – Update on Draft Budget

L. TOPICS FOR FUTURE WATER BOARD MEETINGS 1. Manager’s Report No. 11-28 – Discussion and Possible Action regarding Part 5 of the Rules, Facilities Reserve Charge – Proposed New Rule, SBRRB Results (awaiting Part 4 Section VII, Facilities Reserve Charge to be submitted together 2. Manager’s Report No. 14-24 – Discussion and Possible Action regarding Part 4 Section I of the Rules, General Use Rates Proposed Amendments, SBRRB Results (awaiting Part 4 Section VII, Facilities Reserve Charge to be submitted together) 3. Discussion and Possible Action of Proposed Delegation of a Meter Restriction Board Policy No. 30

M. UPCOMING EVENTS 1. AWWA Annual Conference, Anaheim, CA (June 7-10, 2015) 2. DOW Make a Splash Water Festival (September 24, 2015) 3. HWWA Hawaii Section, Honolulu, HI (October 14-16, 2015)

N. NEXT WATER BOARD MEETING 1. Thursday, May 21, 2015, 10:00 a.m. 2. Thursday, June 18, 2015, 10:00 a.m. 3. Thursday, July 23, 2015, 10:00 a.m. 4. Thursday, August 20, 2015, 10:00 a.m.

O. ADJOURNMENT

Mr. Dill moved to adjourn the Regular Meeting at 11:38 a.m.; seconded by Ms. Ho; with no objections, motion carried with 6 ayes.

Respectfully submitted, Approved,

Edie Ignacio Neumiller Laurie Ho Commission Support Clerk Secretary – Board of Water Supply

Regular Meeting: Thursday, March 19, 2015 - Page 9 of 9

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MEETING MINUTES BOARD OF WATER SUPPLY Thursday, April 23, 2015

The Board of Water Supply, County of Kaua‘i, met in regular meeting at the Board Conference Room in Līhu'e on Thursday, April 23, 2015. Vice Chair Clyde Nakaya called the meeting to order at 10:15 a.m. The following Board members were present:

BOARD: Mr. Clyde Nakaya, Vice Chair Ms. Laurie Ho Mr. Hugh Strom Mr. Raymond McCormick Mr. Larry Dill (entered @ 10:16 a.m.) Mr. Sherman Shiraishi, Chair (entered @ 10:19 a.m.)

EXCUSED: Mr. Michael Dahilig

Quorum was achieved with 4 members present at the time of roll call.

STAFF: Mr. Kirk Saiki Mr. Dustin Moises Mr. Keith Aoki Ms. Kim Tamaoka Mr. Jeff Mendez Ms. Sandi Nadatani-Mendez Mr. Val Reyna Mr. Carl Arume Mr. Eddie Doi Mr. Chris Nakamura Mr. Virgil Kapanui Ms. Ann Parrott Ms. Fay Tateishi Ms. Christine Erorita Deputy County Attorney, Andrea Suzuki

GUESTS: Mr. Galen Nakamura, Attorney for Hokulei Village Mr. Clifford Mukai, CE, Warren S. Unemori Engineering, Inc. (WSUE) Mr. David Ristau, Vice President Construction, Terramar Retail Centers Mr. Hall Parrott, Private Citizen

ACCEPTANCE OF AGENDA Ms. Ho moved to reorder the Agenda to move up New Business Manager’s Report Nos. 15-29, 15-30 and 15-31 prior to the Item D Meeting Minutes as ordered by Vice Chair, Clyde Nakaya; seconded by Mr. McCormick; with no objections; motion carried with 4 ayes.

Mr. Dill entered meeting at 10:16 am.

Chair Shiraishi entered meeting at 10:19 am.

Regular Meeting: Thursday, April 23, 2015 - Page 1 of 18

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H. NEW BUSINESS 1. Manager’s Report No. 15-29 – Resolution No. 15-07 Department of Water’s 2014 Employee of the Year, Chris “Naka” Nakamura, Water Service Supervisor III (East Side) and Virgil Kapanui, Water Service Supervisor III (West Side)

BACKGROUND: Manager Saiki read Resolution 15-07 Department of Water’s 2014 Employee of the Year, Chris “Naka” Nakamura, Water Service Supervisor III (East Side) and Virgil Kapanui, Water Service Supervisor III (West Side). The Board and staff congratulated Chris Nakamura and Virgil Kapanui. A photo was taken with the Board members.

Mr. Nakaya moved to receive Manager’s Report No. 15-29 - Resolution 15-07 Department of Water’s 2014 Employee of the Year, Chris “Naka” Nakamura, Water Service Supervisor III (East Side) and Virgil Kapanui, Water Service Supervisor III (West Side); seconded by Ms. Ho; with no objections, motion carried with 6 ayes.

2. Manager’s Report No. 15-30 – Resolution No. 15-08 Department of Water’s 2014 Employee of the Year, Kim Tamaoka, Departmental Public Relations Specialist

BACKGROUND: Manager Saiki read Resolution No. 15-08 Department of Water’s 2014 Employee of the Year, Kim Tamaoka, Departmental Public Relations Specialist. The Board and staff congratulated Kim Tamoaka. A photo was taken with the Board members.

Mr. Nakaya moved to receive Manager’s Report No. 15-30 - Resolution No. 15-08 Department of Water’s 2014 Employee of the Year, Kim Tamaoka, Departmental Public Relations Specialist; seconded by Ms. Ho; with no objections, motion carried with 6 ayes.

3. Manager’s Report No. 15-31 – Resolution No. 15-09 Mahalo and Aloha Board Member, Raymond “Ray” McCormick

BACKGROUND: Chair Shiraishi read Resolution No. 15-09 Mahalo and Aloha Board Member, Raymond “Ray” McCormick. The Board and staff congratulated Mr. McCormick with a photo taken with the Board members. This was Mr. McCormick’s last Board meeting because he accepted the Highways Administrator position with O‘ahu’s Department of Transportation.

Mr. Nakaya moved to receive the Manager’s Report No. 15-31 – Resolution No. 15-09 Mahalo and Aloha Board Member, Raymond “Ray” McCormick; seconded by Ms. Ho; with no objections; motion carried with 6 ayes.

DISCUSSION: Chair Shiraishi thanked the Employees of the Year told them to keep up the good work and good luck to Mr. McCormick on his new endeavors.

Mr. Kapanui thanked the Board and staff and could not do the work by himself; it takes the whole company to work together and looked forward to a better future.

D. MEETING MINUTES None Regular Meeting: Thursday, April 23, 2015 - Page 2 of 18

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E. CORRESPONDENCE/ANNOUNCEMENTS None

F. BOARD COMMITTEE REPORT Report of the Finance Committee of the Kaua'i County Board of Water Supply 1. Draft Budget for Fiscal Year 2015-2016 a. Fiscal Year 2015 – 2016 Draft Operating Budget b. Fiscal Year 2015 – 2016 Draft Capital Outlay Budget

BACKGROUND: Finance Chair, Mr. Dill reported that the Finance Committee met March 19th, March 25th, April 1st and April 7th. The Finance Committee finalized both the proposed draft of the Operating budget and draft Capital Outlay budget for FY 2015-2016. The draft budget was before the Board for consideration or approval.

Ms. Ho moved to receive the Report from the Finance Committee of the Kaua'i County Board of Water Supply regarding the Draft Budget for Fiscal Year 2015-2016; Operating Budget and Capital Outlay Budget; seconded by Mr. Nakaya; with no objections, motion carried with 6 ayes.

DISCUSSION: Chair Shiraishi thanked and acknowledged the hard work of the Finance Committee.

G. OLD BUSINESS 1. Draft Budget for Fiscal Year 2015-2016 a. Fiscal Year 2015 – 2016 Draft Operating Budget b. Fiscal Year 2015 – 2016 Draft Capital Outlay Budget

Mr. Dill moved to Receive for the Record the draft report of the Proposed Budget for FY 2015-2016; seconded by Mr. Strom; with no objections; motion carried with 6 ayes.

At 10:40 a.m., Chair Shiraishi called for a recess to review the Draft Report of the Proposed Budget.

At 10:47 a.m., Chair Shiraishi reconvened the Regular Board Meeting.

BACKGROUND: Manager Saiki reported for Waterworks Controller, Ms. Marites Yano (excused) and presented the summary of the proposed draft budget as follows:

 Estimated Fund Balance is $19.3M  Estimated Operating Revenues is $31.2M.  Water sales was lower than last year down to $26.5M  Operating Expenses are projected at $27.9M  New Capital Outlay Funds – Water Utility (WU) is $5.7M  Facilities Reserve Charge (FRC) is $1.15M  Build America Bond (BAB) is $13.7M

DISCUSSION: Admin. Budget - is higher this year by 22%; $306,000. The budget dropped except for Professional Services, Insurance and Travel & Per Diem.

Regular Meeting: Thursday, April 23, 2015 - Page 3 of 18

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Insurance and Bonds, (Page 8 of 19) – went from $360,000 to $710,000 and increased the budget to $500,000 to match the deductible from insurance.

Professional Services, Special Counsel, (Page 2 of 19) - went up from $75,000 to $100,000.

 Manager Saiki will research the reason of the increase.

Performance Audit, (Page 2 of 19) – increased by $40,000.

Admin. Conferences, (Page 15 of 19) – decreased from $6,500 to $5,000.

Professional Services – General (Page 4 of 17) – is the summary of all divisions.

Mr. Dill thanked the Department for getting the WU … inaudible… and WU deficit … inaudible … are fully funded.

IT Budget – includes Maintenance, Support Services and Comm. Equipment and three (3) IT initiatives: Document … inaudible …, Project Management, Replacement of Maintenance Prevention Evaluation Technology (MPET) and Geographic Information System (GIS) capacities for workers in the field.

FIS Hosting (Great Plans & Paramount Hosing), (Page 5 of 11) – will not be funded because it used to be hosted in the Cloud but was stopped to continue the service. This is done in-house with cost savings of more than $20,000 according to Waterworks Info. Tech. Officer, Jeff Mendez.

MPET’s cost – last year was $40,000; this year it is $36,000.

Development for Capabilities for Asset Based Work Order System, (Page 10 of 11) - $95,000 for the replacement system and protective costs for next year. $20,000 will be used the remaining year. The total cost of $317,005 which would include maintenance for MPET will be used until the end of the fiscal year. Other amounts will be for replacement and to start whatever system IT is chosen for implementation. Once the system is in place, Mr. Mendez said the annual cost was unknown at this time.

Mr. Mendez commented that last year the AMI budget to replace the AMR Transponder system was determined not to be done; last year it was $1,274,000; this year is zero, (Page 10 of 11).

Water Quality Budget Professional Services, (Page 1 of 8) - went up from $85,000 to $95,000.

Water sample testing services, (Page 2 of 8) – UCMR3 will be required. This year there will be an EPA Phase II Phase V testing requirements of sources for chemical contaminants (which is done every three (3) years). The next two years, the cost will be approximately $25,000. Testing is done professionally.

There were some cuts with Operating Supplies. – streamlined by $2K. The bulk of the supplies are from the Microbiologist side – estimated at $10K

A new requirement when shipping samples is to use regular ice to keep samples at the right temperature.

New Request Column, (Page 3 of 8) - “No (was in Admin. Budget)” – Ms. Ho questioned if this was meant to be moved to Water Quality.

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Engineering Budget Operating Budget – There was an increase of approximately $300,000 because of a carryover from last year’s new accounting system. The Preliminary Engineering Reports (PER) and Environmental Assessment Cost for projects were transferred to the operating budgets this year. PER will be done for each of the projects.

Capital Budget – decreased from the previous year approximately $800,000. The new capital projects being proposed were determined based on these criteria: 1) Whether projects generated potential FRC; 2) Operational needs; 3) Working within the available budget $1.00 funded items that were originally proposed were due to budget limitations. If funds are available during the year, Engineering will come back to the Board to do more projects.

Professional Services, (Page 1 of 10) – increase to about $300,000. Civil Engineer, Keith Aoki further explained that in previous years, Professional Services were included in the Capital Budget. The costs were identified as Operating Expenses which are not in the Capital Budget.

Water Utility (WU) Fund - Capital Projects, (Page 1 of 10) – Mr. Nakaya noted that FY 2014-2015 increased from $253,714 to $926,001. Mr. Aoki indicated that $926,001 for FY 2015-2016 was an incorrect amount shown. The correct amount should be $926,001 for FY 2014-2015 and $786,927 for FY 2015-2016.

 Mr. Aoki will work with Waterworks Controller, Marites Yano to check discrepancies on the Excel spreadsheet.  Mr. Dill requested the Department verify all formulas.

New Capital Outlay Summary / WU Fund (Capital Projects – Rehabilitation & Replacement-Design), (Page 13 of 17) – was pointed out by Ms. Ho that $786,927 is in the correct column for Proposed Budget FY 2015-2016.

Anticipated Notice to Proceed Column (Page 8 of 10) – Kīlauea 1.0 MG tank – is for additional funding for 2015-2016 at $15.000. 'Anini waterline – is for additional funding for 2015-2016 at $10.920.

 Mr. Dill and Mr. Nakaya both agreed the Department needs to provide the Board with additional explanation or narrative to explain if additional funding is required for next year’s budget.

Construction Management (CM) Operating Budget / Training – went up $375.00.

Professional Services / Construction Management, (Page 2 of 14) – Construction Project Management Officer, Dustin Moises explained this is an As-Needed Construction Management two-year contract. No money was encumbered in this fiscal year’s budget but Mr. Moises is budgeting $290K for FY 15- 16.

CM is short staffed and in anticipation of new projects starting by next year the Department may need to utilize this CM contract. “As-Needed CM did not occur this fiscal year but will change next fiscal year if I can’t hire competent staff,” Mr. Moises stated. Only three (3) out of the four (4) Inspector positions

Regular Meeting: Thursday, April 23, 2015 - Page 5 of 18

Page 18 are filled while none of the Project Engineer/Project Manager positions are filled. Mr. Moises is the only engineer in the CM Division and he has zero staff and currently manages all construction and the Division. Mr. Moises has been much more involved with design review than he is required to be as well, as it is a goal to help the design team get projects out. His goal is to spend down the bond and encumber the last $13M in construction with appropriate staffing. The Department owes it to our customers to do the projects we raised rates for so even if CM is short staffed, Mr. Moises is willing to work 6-7 days a week if that is what it takes to finally get projects out the door.

Having competent project managers is critical to prevent litigation, the contractor costs could increase if they are delayed on answers and leads to change orders. Being knowledgeable and able to respond back to the contractor quickly is important. As a result, there needs to be adequate project management staff. Construction Management of a project is daily unlike periodic Engineering Design reviews. If Mr. Moises does not get permanent support, he would like to get the As-Needed CM this fiscal year. He commented that it is good that the Department is looking at a Performance Audit which would be a benefit on how the Department manages its projects in both Design and Construction. This could lead to making changes necessary for the entire department, not just project related staff.

Project Management – Money increased (in the IT budget) which is the new Project Management software. After the Project Management software is implemented, it will support design and construction projects. Once the Project Management software is complete in conjunction with the Performance Audit, the Department can look at staffing issues. CM is implementing a pilot inspection process that is being integrated into the Project Management software. One issue is the Inspectors are in the field with Mobile Wi-Fi (MIFI) but don’t have the staff to update the Share Point software. CM may need a Construction Clerk to keep the new Project Management software updated daily as it is only as good as the information uploaded in real time.

Mr. Strom asked if anyone has looked into projection management and resources to do a five (5) year financial analysis on staffing.

Mr. Moises provided some background on the Department’s reorganization of Divisions in Construction Management, Engineering, Water Resources and Operations in 2012. The Department has a comprehensive 20 year plan in WP 2020. Annual Projections are done internally (there is nothing written like DPW 6 year plan) in the planning of Design to Construction where we reprioritize projects necessary. When a project gets a design contract, it is predicted that within the next 2-3 years, these designs will go into construction. If pre final and final are done this year, construction will be started next fiscal year. Projects that were $1 funded for 2017 will happened in two years. Although the Department does not have the written plan as Mr. Strom might envision with a narrative, the DOW has projections and are well aware of the Project horizons.

At 11:35 a.m., Mr. Nakaya exited the meeting.

Mr. Moises commented that there has to be a succession plan to train someone to do the projects. The Project Manager position needs to be filled in-house to work on the next projects. In-house staff is always better than an As-Needed CM consultant who comes and goes.

At 11:36 a.m., Mr. Nakaya re-entered the meeting.

Mr. Moises has been working with Human Resources (HR) for the past two years and expects a response back by the end of this week on the CM positions.

Regular Meeting: Thursday, April 23, 2015 - Page 6 of 18

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Mr. Strom would like to see a data stream to justify additional priority positions to be filled. Mr. Moises pointed out in the CM Project Narrative, (Page 1 of 4), the list of staffing needs has been in the budget the last three (3) years.

Chair Shiraishi commented the Board agrees the Divisions are understaffed. He added the Department needs to stress to HR how the positions affect operations.

Water Resources and Planning Overall budget - decreased.

Professional Services, (Page 2 of 5) – decreased in the Hydraulic Model Update from $500,000 to $300,000.

United States Geographical Survey (USGS) Stream Study, (Page 2 of 5) – was added because the USGS would like to obtain funding partners for FY 2015-2016 at $50,000.

Mr. Doi explained the USGS Stream Study relates to the mission of the DOW by getting more data when the Department needs existing flows to streams, sources, how it affects service water for the treatment plant. The USGS would benefit from understanding available or existing streams or baseline stream flow.

Manager Saiki said this would be the first step to developing minimum stream flow standards. If surface water treatment is increased, some of the wells could affect ground water; then it affects location and sustainable yields for sources. USGS is starting small before they do an island wide study to obtain minimum stream flows.

Training and Development (Page 5 of 5) – increased for the new CE to be trained in Hydraulic Modeling.

Fiscal Budget Manager Saiki reported the budget did not change much from this fiscal year to next fiscal year.

New Billing System, Implementation of a New Customer Information System (CIS for Billing & Collection), (Page 9 of 9) – This is a new request for FY 2015-2016 for $1,000,000.

Project Management / New Billing Software (Page 2 of 9) – Accountant, Ms. Fay Tateishi explained that $1M is for implementation of the billing system for FY 2015-2016; $100,000 is contingency; and $100,000 is for support if there are any problems. One part is Capital and the other part is for Services.

Mr. Strom said there should be an explanation on the separation of line items. The Department could come back to the Board if there is a contingency. Mr. Dill agreed to take out the contingency amount.

 The Department will delete the $100,000 Contingency. Ms. Tateishi agreed the contingency ($100,000) should not be listed as a line item because there is no contract yet.

Operations Budget Operating Expenses / Capital Budget (Page 1 of 20) – is $565,000 lower for this fiscal year (6.5% lower).

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Capital Outlay – had the most reduction at $250,000. Operating Expenses – is $50,000 lower. Professional Services – increased to $160,000 more than the current fiscal year which is related to electro mechanical design services to assist with the Engineering Division due to the lack of staff. The Kīlauea Maintenance Control Center (MCC) needed to be prioritized to get done.

Reduce electrical consumption – $90,000 was added for a Variable Frequency Drive (VFD) installation pilot project to explore the reduction of speed of pumps and motors by a 5% savings. There are plans to install one (1) or two (2) VFD and a supplier has been contacted.

Mr. Strom made several suggestions if an electrical engineer could do a study instead of a supplier or to consider Harmonics or line conditioning to save money.

Manager Saiki added the Department will explore engineering costs and not just a supplier. This depends if the demand charges could be lowered.

Pump Replacement Program, (Page 9 of 20) – went from $125,000 to $425,000. Mr. Dill questioned if the $425,000 was derived for pumps that need replacement or was it part of a contingency fund for pumps to be replaced if they fail?

Mr. Reyna pointed out that when the budget for FY 2014-2015 for $125,000 was approved, three (3) well sites pumps failed. The average well refurbishment expenses were between $100,000 - $125,000. The projection is to refurbish well pumps three (3) to four (4) times a year for preventive measures and to include emergency failures.

Easement 5-1-5:23, (Page 8 of 20) – Mr. Reyna explained that at the Wailapa booster pump station, the owner of the property didn’t want to donate the easement, therefore they are requiring the DOW to pay $1,000 once a year.

At 12:09 a.m., Ms. Ho exited the meeting.

At 12:10 a.m., Ms. Ho re-entered the meeting.

Operating Expense Summary / Professional Services – General – (Page 4 of 17) – FY 2014-2015 budget is $1.5M, the prior FY 2013-2014 was $889,116 but FY 2015-2016 is up to $2.4M. Mr. Nakaya mentioned if this was analyzed on the 9 month actual, it comes to $270,000.

Operating Supplies – (Page 4 of 17) – was budgeted $1.4 in FY 2014-2015, spent $483,117 as of 3/31/15 and budgeted for FY 2015-2016 at $996,830. At times, operating supplies are bought at the end of the year.

Mr. Dill moved to defer the Draft Budget for FY 2015-2016 with budget changes to be addressed and reviewed by the Department at the May Board meeting for further deliberation; seconded by Mr. Strom; with no objections, motion carried with 6 ayes.

2. Manager’s Report No. 15 – 28 – Discussion and Possible Action Request for the Board Chair to sign documents related to separate ownership of the lots created by Subdivision application S-2013-18 including a deed restriction that limits the development of the subdivision to not more than 10 dwelling units, Kalaheo, Kaua'i Update (1)

Regular Meeting: Thursday, April 23, 2015 - Page 8 of 18

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BACKGROUND: Mr. Aoki explained the Board conditionally approved Manager’s Report No. 15-28 (Update 1) from the March 19th Board meeting subject to review and approval of the Conveyance (Quit Claim Deed) document from Mr. Hoffman to the Department. Deputy County Attorney, Andrea Suzuki reviewed the Quit Claim Deed which is acceptable with a few revisions. The Quit Claim Deed’s final subdivision map was recorded.

Mr. Dill moved to approve Manager’s Report No. 15 – 28 and to authorize the Board Chair to sign the Quit Claim Deed related to separate ownership of the lots created by Subdivision application S-2013-18 including a deed restriction that limits the development of the subdivision to not more than 10 dwelling units, Kalaheo, Kaua'i Update (1); seconded by Ms. Ho; with no objections; motion carried with 6 ayes.

H. NEW BUSINESS 4. Manager’s Report No. 15-32 – Discussion and Possible Action for additional funding for design services for Contract No. 520, Job No. 10-01, WP2020 #ANI-01, Pipeline Replacement from Kīlauea to Anini

BACKGROUND: Mr. Aoki recommended the Board approve the transfer of funds in the amount of $50,000 from Account No. 30-20-00-605-140 Bond Fund (Kōloa Well F Land Acquisition) to Account No. 30-20-00-604-101 Bond Fund for additional design services for Job No. 10-01, WP2020 #ANI-01, Pipeline Replacement from Kīlauea to 'Anini, Contract No. 520 with Fukunaga and Associates, Inc.

An existing waterline is across 'Anini Road because of the condition of the bridges. The Department of Public Works did not want the Department to replace the pipeline. After the consultant spoke to the County, the County agreed to the pipeline replacement if the DOW fixed the bridges. There is need for additional design services. The County will be replacing another bridge to redesign a pipe on the beam.

Mr. McCormick mentioned the state allows attachments.

Mr. Dill moved to approve Manager’s Report No. 15-32 – Discussion and Possible Action for additional funding for design services for Contract No. 520, Job No. 10-01, WP2020 #ANI-01, Pipeline Replacement from Kīlauea to 'Anini; seconded by Mr. McCormick; with no objections, motion carried with 6 ayes.

5. Manager’s Report No.15-33 – Discussion and Approval to enter negotiation discussions with Grove Farm Company, Inc. or affiliates regarding Water Plan 2020 Project No. PLH-35b Kapaia Cane Haul Road 18-inch Main for the Puhi/Līhu'e/Hanamā'ulu Water System

BACKGROUND: Manager Saiki requested the Board allow the Department to enter into negotiation discussions with Grove Farm Company, Inc. or affiliates regarding Water Plan 2020 Project No. PLH-35b Kapaia Cane Haul Road 18-inch Main for the Puhi/Līhu'e/Hanamā'ulu Water System on how to pay for the rest of the project.

The water line is part of the existing agreement on the Surface Water Treatment Plant (SWTP) regarding the cane haul road route; 2/3 cost split is by the Board and 1/3 is by Grove Farm. The DOW was not part of the design when Grove Farm designed the Cane Haul Road and the procurement process with the engineer.

Regular Meeting: Thursday, April 23, 2015 - Page 9 of 18

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DISCUSSION: Mr. Nakaya questioned the $90,000 on the project (refer to Budget Page 14 of 17). Manager Saiki was unsure on what was going to happen with the agreement or if there was a possibility DOW would be directed to pay a portion of the design cost based on the Water Purchase Agreement. Mr. Aoki added the $90,000 is 2/3 cost of the design but the agreement stated that DOW would not pay for the design cost which would go away. The $90,000 was never spent last year. Construction has not been determined yet but the initial cost estimate was $3M. Mr. Aoki commented the cost could be $3.5M for the total cost.

Mr. Dill mentioned that Grove Farm may have obligations with the purchaser of Kohea Loa which could be why Grove Farm is proceeding on its own schedule depending on what the Department does.

Mr. Strom said the existing agreement is silent and Deputy County Attorney, Andrea Suzuki should look at the cost sharing. Mr. Aoki clarified that Deputy County Attorney, Andrea Suzuki mentioned a separate agreement would need to be made on the cost sharing.

Chair Shiraishi questioned Option 2: Do not negotiate an agreement. This would not allow DOW to cost share the waterline as called out in the Water Purchase Agreement, there would be consequences if DOW would be required to pay 2/3; the Deputy County Attorney would need to examine this.

Mr. Dill wanted to know if the signed agreement committed the DOW to cost sharing. Manager Saiki explained that DOW was not involved with the consultant in designing the 18 inch line and that DOW cannot participate in paying. If DOW agrees not to build, then DOW would probably get sued for lack of performance.

The negotiation was brought up by the County Attorney. Mr. Moises referred to Item V., Page 5 of the agreement which states: “… the pipeline improvement shall be borne 66.67% by Board of Water Supply…” but does not state Grove Farm’s time line and that both parties need to mutually agree on the cost.

Ms. Ho moved to defer to the May Board meeting Manager’s Report No.15-33 – Discussion and Approval to enter negotiation discussions with Grove Farm Company, Inc. or affiliates regarding Water Plan 2020 Project No. PLH-35b Kapaia Cane Haul Road 18-inch Main for the Puhi/Līhu'e/Hanamā'ulu Water System; seconded by Mr. McCormick; with no objections, motion carried with 4 ayes, 2 recused (CN & HS).

(Note: More discussions continued on Manager’s Report No. 15-33 at the end of the meeting which is being inserted here):

Chair Shiraishi inquired if Grove Farm puts in the 18-inch main, is the Department obligated to put in the 2/3 cost share. Deputy County Attorney, Andrea Suzuki commented the Board would have to agree on the cost sharing. When the Department spends money on a project, a procurement process is done. Since the Department would be controlling the majority of the fund process, the Department and the Board should go through the procurement process to ensure the fairest bid comes in and to make sure the Department has authority over the change orders.

Manager Saiki agreed the Department is contractually responsible for the 2/3 cost of the design but the Department was not a part of selecting the design consultant nor negotiating the design costs, therefore, per the contract, the Department should not be obligated to pay a part of the design costs. The Department would like to negotiate with Grove Farm on the cost for bidding and constructing the project.

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Mr. Dill added the Department may save money to procure privately by participating in the cost vs. procuring it publicly.

Deputy County Attorney, Andrea Suzuki clarified the Department needs to mutually agree on the cost sharing. She also mentioned that Grove Farm agreed to cover all design.

Updated Motion at the end of the meeting: Mr. Dill moved to approve Manager’s Report No. 15-33 authorizing the Manager and staff to negotiate an agreement with Grove Farm on the 18 inch waterline; seconded by Mr. Strom; with no objections, motion carried with 6 ayes.

6. Manager’s Report No. 15-34 – Discussion and Possible Action on the Conveyance of Water Facility from Hokulei Village, LLC, for the Hokulei Village Onsite Improvements for Phase I, TMK: (4) 3-3-003:046 (por.), Lihue, Kauai, Hawai'i

BACKGROUND: The Department recommended the Conveyance of Water Facility document be approved; whereby Hokulei Village, LLC transfers to the Board of Water Supply, County of Kauai, all of its right, title and interest. Mr. Moises commented the associated cost for the facilities to be conveyed is $854,150.00. (Refer to the Manager’s Update for the offsite Conveyance.)

DISCUSSION: Mr. Dill questioned the location of Grant of Easement (GOE) for the offsite conveyance on Nuhou Street for the facilities. Mr. Moises explained the offsite plans had a 12 inch waterline running onsite. During the design, the Department allowed the owner of the meters to be onsite in front of the building and had to convey the meters to the Department to Nuhou Road.

Mr. Dill inquired about the DOW offsite facilities on the public side of the meter. Mr. Moises explained that on the offsite plans, there were waterlines on the onsite property boundary. Mr. Galen Nakamura, Attorney was requested to split the plans up for future reference; the 12 inch waterline onsite plans would be shown.

Another comment from Mr. Dill was that it would have been better to require this project be master metered which Manager Saiki agreed. Based on the previous administration no policy was developed.

 Mr. Dill recommended the Department draft a policy regarding master meters for the Board to consider.

Mr. Dill moved to approve Manager’s Report No. 15-34 – Discussion and Possible Action on the Conveyance of Water Facility from Hokulei Village, LLC, for the Hokulei Village Onsite Improvements for Phase I, TMK: (4) 3-3-003:046 (por.), Lihue, Kauai, Hawai'i; seconded by Ms. Ho; with no objections, motions carried with 6 ayes.

7. Manager’s Report No. 15-35 – Discussion and Possible Action on the Grant of Easement for Offsite Roadway Improvements for Hokulei Village: Phase I and Phase II, Lihue, Kaua'i, Affecting the Following Landowner: a. Hokulei Village, LLC affecting TMK(s): (4) 3-3-003:046 (por.)

BACKGROUND: The Department recommended the Board approve the Grant of Easement document; whereby, the above landowners, grant to the Board of Water Supply, County of Kaua'i, easement “W-1” on, over and under that certain parcel of land located TMK: 3-3-003:046 (por.) as specified above in Lihue, Kaua'i, Hawai'i. Regular Meeting: Thursday, April 23, 2015 - Page 11 of 18

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Mr. Dill moved to approve Manager’s Report No. 15-35 – Discussion and Possible Action on the Grant of Easement for Offsite Roadway Improvements for Hokulei Village: Phase I and Phase II, Lihue, Kaua'i, Affecting the Following Landowner: a) Hokulei Village, LLC affecting TMK(s): (4) 3-3-003:046 (por.); seconded by Ms. Ho; with no objections, motion carried with 6 ayes.

8. Manager’s Report No. 15-36 – Discussion and Possible Action on the Grant of Easement for Hokulei Village Onsite Improvements for Phase I, Lihue, Kaua'i, Affecting the Following Landowner: a. Hokulei Village, LLC affecting TMK(s): (4) 3-3-003:046 (por.)

BACKGROUND: The Department recommended the Board approve the Grant of Easement document; whereby, the above landowners, grant to the Board of Water Supply, County of Kaua'i, easements “Phase I” and “W-2” on, over and under that certain parcel of land located TMK: 3-3-003:046 (por.) as specified above in Lihue, Kaua'i, Hawai'i.

DISCUSSION: Mr. Moises referred to Paragraph No. 1, Page 3 of 7 of the GOE relating to the onsite improvements. Because the owners were allowed to install the waterlines on their property and if there are leaks of the pipeline which was conveyed to the Department, the Department would not be liable for any damages. The Department could cold patch but would not be required to put in the Americans with Disabilities Act access (ADA) and they would have to come back to fix the remainder of the damage. This was added in to protect the Department.

Mr. Strom inquired why does the Department have to put an easement in control of the pipes vs. the right of access to read the meter and have the landlord be responsible. Manager Saiki commented the individual stores own the land they are on (not the development). The development will be subdivided by one developer. Mr. Moises added the future is to require a master meter.

Also another comment form Mr. Strom was if a line blows up, the developer could come back to the Department due to workmanship. It would be better to have a master meter for the owner to have right of access because this is on a public site. Mr. Moises commented the cleanest way is to not have the Right of Entry.

Mr. Doi clarified the developer for Phase II is required to do a master meter based on the previous administration’s decision.

Mr. Dill requested in the policy, the Department would not have facilities within privately owned property.

 Mr. Doi commented the rules could be explored and if the master meter are not allowed, the Department could entertain a policy as Mr. Dill recommended.

For the schools, the Department could check private hydrants on a site and sort out the details. Domestic meters could be checked on private properties.

Mr. Strom expressed opposition to the GOE because nothing is signed. The Department signed the construction plans which were understood in the agreement with both parties as Mr. Dill and Mr. Doi concurred. The Department honored the past administration and based on previous discussions, the attorney agreed to cover the Department (which was not the standard language).

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Mr. Moises recommended not to approve the Conveyance of Facilities if the Board is not going to approve the GOE. The Department should not own anything if it does not have any access to the property.

Mr. Strom proposed to have the Department revisit the agreement with the developer to get the GOE access, to be able to read the meters and the location of the meters on Phase I. This would minimize the Department’s liability.

Mr. Doi commented that previously the attorneys and developers met to revert back to the master meter.

At 12:26 p.m., Chair Shiraishi suspended the rules and requested that Attorney, Galen Nakamura be called back into the meeting to address Mr. Strom’s concerns.

Chair Shiraishi continued the meeting with the Staff Reports.

I. STAFF REPORTS MONTHLY 1. Discussion and Receipt of the Kaua‘i County Water Department’s Statement of Revenues and Expenditures a. March Monthly Summary Budget

BACKGROUND: Ms. Ann Parrott reported the Revenue shortfall is not an issue because they are falling within the grants and it is stable. The Facilities Reserve Charge (FRC) is down and the rest of the budget is under budget.

DISCUSSION: Chair Shiraishi referred to the Revenue in the proposed budget FY 2015-2016 which is less than the current fiscal year. The Billed Revenue Comparative Chart showed an increase of prior years.

 Ms. Yano will be asked to check on Chair Shiraishi’s inquiry regarding Revenue in the proposed budget FY 2015-2016 which will be less than the current fiscal year; but in the Billed Revenue Comparative Chart it showed an increase of prior years.

Mr. Nakaya moved to receive the Kaua‘i County Water Department’s Statement of Revenues and Expenditures; a) March Monthly Summary Budget; seconded by Mr. Dill; with no objections; motion carried with 6 ayes.

2. Discussion and Receipt of the Report by the Public Relations Specialist on Public Relations Activities

BACKGROUND: Ms. Tamaoka highlighted the Fix a Leak Week – March 16 - March 20th and gave away 200 household free leak detection kits. Project Wet grant workshops will begin in June.

Chair Shiraishi acknowledged Ms. Tamaoka’s good work as Employee of the Year.

Mr. Nakaya moved to receive the Report by the Public Relations Specialist on Public Relations Activities; seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

3. Discussion and Receipt of the Chief of Operation’s Summary Report on Operational Activities

BACKGROUND: Mr. Reyna called attention to the Billed and Unbilled Water percentages. In March, the Non-Billed Water Calculations jumped to 16.17%. The Department’s Standard of Operating Procedures (SOP) Regular Meeting: Thursday, April 23, 2015 - Page 13 of 18

Page 26 requires The Department check on until unbilled water at 15%. Some of the reasons for the 16.17% were from several brush fires in Anahola and a fire in Po'ipū/Kōloa. The level transmitter/Supervisory Control & Data Acquisition (SCADA) failed and lost 400,000 gallons due to overflow from the Ornellas Tank in Kapahi because the Air Release Valve (ARV) was defective. As a result, some customers in Kapahi did not have water and the crew had to flush out the line. Other reasons for the high percentage of unbilled water were from unknown leaks and illegal connections.

DISCUSSION:  Mr. Dill requested Mr. Reyna to provide a graph for Unbilled Water showing percentage for each month.

Mr. Dill moved to approve the Chief of Operation’s Summary Report on Operational Activities; seconded by Mr. Nakaya; with no objections, motion carried with 6 ayes.

b. Discussion and Receipt of the Manager and Chief Engineer’s Monthly Update Regarding Activities of Note of the DOW

BACKGROUND: Manager Saiki highlighted the following: 1. Personnel Matters – Update Automotive Mechanic I – An offer will be made soon. Customer Service Rep. – Offer was made but candidate declined. CE V – Offer was made. Chief of Water Resources & Planning – Interviews are being scheduled. Deputy Manager – Posted position.

Legislative Update – Recently Manager Saiki and Mr. Doi went to the Legislature to discuss the Department’s Capital Improvement Projects (CIP) money. As of April 22nd the Hanapēpē/Eleele $4.45M is still in HB500.

DISCUSSION: Mr. Strom mentioned $3.5M is available for the Moloa`a Farm Bill water system with a potable component to develop a new well for a private system. Manager Saiki has already spoken to the State Representatives about the funding which the DOW could get.

Conveyance of Water Facilities: Hokulei Village, LLC, Offsite, TMK: 3-3-003:046 (por.), $119,320.00 - The Board discussed deferring this conveyance on the approval of this portion on the Manager’s Update until the concerns on Manager’s Reports Nos. 15-34, 15-35 and 15-36 were addressed.

Hokulei Village, LLC (Tank Demo) $10,000 – has a water facility which does not have an easement and cannot be conveyed because it is in the Nuhou Street Right of Way.

 Correction the location of Hokulei Village, LLC: should be Līhu'e (not Kapa‘a).

Mr. Strom moved to receive with the exception of the Conveyance of the Water Facility, Hokulei Village, LLC; $119,320.00 to be deleted and to correct location as Līhu'e (not Kapa‘a); seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

Note: The Board ended up accepting the Manager’s Update in full, so Hokulei was not deleted (it was deferred until the end of the meeting then accepted).

Regular Meeting: Thursday, April 23, 2015 - Page 14 of 18

Page 27

Updated Motion at the end of the meeting: Mr. Dill moved to receive the Conveyance of the Water Facilities as reported in the Manager’s Update; seconded by Mr. Nakaya; with no objections; motion carried with 6 ayes.

a. Report of the BAB pay down as of March 2015

Mr. Strom moved to receive the BAB pay down as of March 2015; seconded by Mr. Nakaya; with no objections, motion carried with 6 ayes.

QUARTERLY (January – March 2015) 1. Discussion and Receipt of the DOW’s Quarterly Project Status Update a. Construction Management Division Status

BACKGROUND: Mr. Moises provided the following highlights:  The new building slab went in yesterday.  Maka Ridge is closed out.  New Section: “Upcoming Water Plan 2020 Construction Projects” – active in design review.  Upcoming Water Plan 2020 CM Design /Request for Proposal (RFP) Reviews.  Final Design Review include: -Weke, Anae, & Hee Roads 6” & 8” Main Replacement (bid in May). -Kolo Road Main Replacement (Kīlauea School) (procured was last Monday, opens May 14th). -8” Main Replacement along Halewili Road (bid in June).  Eight (8) projects will be active the next 12 months; most projects are BAB funds.  Kōlo Road is not BAB but will be using a $1.3 state grant. Need to encumber the funds early June. A Special Board meeting will be requested for Chair Shiraishi to sign the contract.

DISCUSSION: Mr. Dill advised that if the contract can be signed as long as it is within budget which could be on the May Board agenda.

Mr. Nakaya moved to receive the Quarterly Project Status Update for Construction Management Division; seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

b. Engineering division Design Status

BACKGROUND: Mr. Aoki provided the following highlights:  Design projects are being completed for construction.  Interviewed the CE V who accepted the initial offer. Pending status of the candidate’s move to Kaua'i in a few months.  Per HR, currently there is only one (1) CE V applicant on the list; will wait for more candidates to apply.

Mr. Nakaya moved to receive the Quarterly Project Status Update for the Engineering Division; seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

Regular Meeting: Thursday, April 23, 2015 - Page 15 of 18

Page 28

c. Water Resources & Planning Division Status

Mr. Nakaya moved to receive the Quarterly Project Status Update for the Water Resources & Planning Division; seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

H. NEW BUSINESS (continued) 6. Manager’s Report No. 15-34 – Discussion and Possible Action on the Conveyance of Water Facility from Hokulei Village, LLC, for the Hokulei Village Onsite Improvements for Phase I, TMK: (4) 3-3-003:046 (por.), Lihue, Kauai, Hawai'i 7. Manager’s Report No. 15-35 – Discussion and Possible Action on the Grant of Easement for Offsite Roadway Improvements for Hokulei Village: Phase I and Phase II, Lihue, Kaua'i, Affecting the Following Landowner: a. Hokulei Village, LLC affecting TMK(s): (4) 3-3-003:046 (por.) 8. Manager’s Report No. 15-36 – Discussion and Possible Action on the Grant of Easement for Hokulei Village Onsite Improvements for Phase I, Lihue, Kaua'i, Affecting the Following Landowner: a. Hokulei Village, LLC affecting TMK(s): (4) 3-3-003:046 (por.)

At 1:26 p.m., Mr. Galen Nakamura re-entered the meeting.

Mr. Galen Nakamura, Attorney for Hokulei Village and Mr. Clifford Mukai, Civil Engineer, WSUE addressed Mr. Strom’s concerns.

Chair Shiraishi requested Mr. Nakamura to address the issues of water facilities on private property.

Mr. Strom suggested the developer look to granting the access in Phase I onsite for the purposes of reading and maintaining the revenue meters and the assets to remain with the developer onsite. The assets in the ground of the development site are to remain in ownership by the DOW.

Mr. Nakamura explained the water infrastructure to be dedicated and conveyance of facilities are meant to be owned and maintained up to and including the meter by the DOW by the current documents. Previous discussions were held with the previous manager (Mr. David Craddick) who wanted the system to be owned by the Department and not privately.

Mr. Mukai commented the system was initially designed in accordance similar with what Mr. Strom envisioned. Various options were considered but was re-directed to re-design the onsite improvements so that contiguous extension of the county system through Kolopa Street would come into the project, loop around the project of the main driveway of the project and go back out Nuhou Street. The individual water service meters and backflow preventers and the RPDA’s for fire service would be between the contiguous extension of the county’s system and respective major buildings. Since the change in administration, there were meetings to explain what was upheld, it was the understanding that in May 2014 the plans represented was approved by the Department.

Mr. Mukai clarified that Phase II has service stubs out for fire protection on both corners of Hokulei Village West and the northwest corner abutting Nuhou Street.

Mr. Strom questioned if the developer is opposed to the project as a private system, there may be an isolation valve. No isolation valve was clarified by Mr. Moises at the property line which is the offsite and onsite. The main is 8 inch & 12 inch at the property line and a valve would have to be cut in.

Regular Meeting: Thursday, April 23, 2015 - Page 16 of 18

Page 29

Mr. Shiraishi asked if the developer is willing to consider these waterworks facilities as private instead of conveying to the county.

Mr. Nakamura requested a recess and informed the Board that the project needs water.

At 1:38 p.m., Mr. Dill moved to go into an Executive Session before making a decision and to consult with the Deputy County Attorney; seconded by Mr. Nakaya; with no objections, motion carried with 6 ayes (SS, LH, HS, RM, CN, LD)

Deputy County Attorney, Andrea Suzuki read the following Executive Session language:

J. EXECUTIVE SESSION Pursuant to H.R.S. §92-7(a), the Board finds it necessary to hold an executive session on the agenda items on Hokulei Village because the executive session was not anticipated in advance. Any such executive session shall be held pursuant to H.R.S. §92-4 and shall be limited to those items described in H.R.S. §92-5(a).

At 2:04 p.m., Chair Shiraishi called the Regular Board meeting back to order.

Mr. Dill moved to approve Manager’s Report No. 15-34 – Discussion and Possible Action on the Conveyance of Water Facility from Hokulei Village, LLC, for the Hokulei Village Onsite Improvements for Phase I, TMK: (4) 3-3-003:046 (por.), Lihue, Kauai, Hawai'i; Manager’s Report No. 15-35 – Discussion and Possible Action on the Grant of Easement for Offsite Roadway Improvements for Hokulei Village: Phase I and Phase II, Lihue, Kaua'i, Affecting the Following Landowner: a) Hokulei Village, LLC affecting TMK(s): (4) 3-3-003:046 (por.) and Manager’s Report No. 15-36 – Discussion and Possible Action on the Grant of Easement for Hokulei Village Onsite Improvements for Phase I, Lihue, Kaua'i, Affecting the Following Landowner: a) Hokulei Village, LLC affecting TMK(s): (4) 3-3- 003:046 (por.); seconded by Ms. Ho; with no objections, motion carried with 6 ayes.

At 2:07 p.m., Mr. Strom recused himself from the Executive Session and exited the meeting.

At 2:07 p.m., Mr. Dill moved to go into Executive Session; seconded by Mr. Nakaya; with no objections; motion carried with 5 ayes. (LH, RM, CN, LD, SS) (HS/Recused)

Deputy County Attorney, Andrea Suzuki read the following Executive Session language:

J. EXECUTIVE SESSION cont’d: 1. Pursuant to Hawaii Revised Statues Sections 92-4 and 92-5(a)(3), the purpose of this executive session is for the Board to deliberate concerning the authority of persons designated by the Board to conduct negotiations for the acquisition of public property as it relates to land necessary for existing Board of Water infrastructure

At 2:13 p.m., Mr. Strom re-entered the Regular Board meeting.

At 2:13 p.m., Chair Shiraishi called the Regular Board meeting back to order.

K. TOPICS FOR NEXT WATER BOARD MEETING (May 2015) 1. Draft Budget for Fiscal Year 2015-2016 a. Fiscal Year 2015 – 2016 Draft Operating Budget b. Fiscal Year 2015 – 2016 Draft Capital Outlay Budget

Regular Meeting: Thursday, April 23, 2015 - Page 17 of 18

Page 30

2. Discussion and Possible Action and Approval on the Use and Occupancy Agreement (UOA) No. 237 with the Memorandum of Agreement (MOA) from the State and to Request for Use and Occupancy for Water Line Transmittal for Document Execution regarding the 8” Main Replacement on Kaumuali‘i Highway at Halewili Road, Project No. 50C-02-87 for TMK: (4) 2- 2-02: Rd at Wahiawa, Kōloa, Kaua'i, Hawai'i 3. Discussion and Possible Action on Board Policy 17, Payment of Communication Devices 4. Discussion and Possible Action relating to providing water service outside of the water zone

L. TOPICS FOR FUTURE WATER BOARD MEETINGS 1. Manager’s Report No. 11-28 – Discussion and Possible Action regarding Part 5 of the Rules, Facilities Reserve Charge – Proposed New Rule, SBRRB Results (awaiting Part 4 Section VII, Facilities Reserve Charge to be submitted together 2. Manager’s Report No. 14-24 – Discussion and Possible Action regarding Part 4 Section I of the Rules, General Use Rates Proposed Amendments, SBRRB Results (awaiting Part 4 Section VII, Facilities Reserve Charge to be submitted together) 3. Discussion and Possible Action of Proposed Delegation of a Meter Restriction Board Policy No. 30

M. UPCOMING EVENTS 1. AWWA Annual Conference, Anaheim, CA (June 7-10, 2015) 2. DOW Make a Splash Water Festival (September 24, 2015) 3. HWWA Hawaii Section, Honolulu, HI (October 14-16, 2015)

N. NEXT WATER BOARD MEETING 1. Thursday, May 21, 2015, 10:00 a.m. 2. Thursday, June 18, 2015, 10:00 a.m. 3. Thursday, July 23, 2015, 10:00 a.m. 4. Thursday, August 20, 2015, 10:00 a.m.

O. ADJOURNMENT

Mr. McCormick moved to adjourn the Regular Meeting at 2:26 p.m.; seconded by Mr. Dill; with no objections, motion carried with 6 ayes.

Respectfully submitted, Approved,

Edie Ignacio Neumiller Laurie Ho Commission Support Clerk Secretary – Board of Water Supply

Regular Meeting: Thursday, April 23, 2015 - Page 18 of 18

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Page 32 Page 33

Page 34 DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

May 21, 2015

Re: Proposed Budget for FY 2015-2016

RECOMMENDATION: Board to review and approval of the Proposed FY 2015-2016 Annual Operating and Capital Outlay Budgets.

BACKGROUND: The proposed FY 2015-2016 Budget is comprised of the Operating Budget, the New Capital Outlay and the Open Contracts and Projects.

The Department of Water (“DOW”) is managing four (4) different funds namely: Water Utility Fund (“WUF”), Facilities Reserve Charge (“FRC”) Fund, Build America Bond (“BAB”) and State Revolving Fund (“SRF”).

I. THE OPERATING BUDGET - Water Utility Fund.

The Water Utility Fund is the general operating account of the Department of Water. The main source of revenue is generated from the operation of 13 different water systems island wide. The Department established the current water rates using the latest water rate study conducted in FY 2010 by an independent consultant hired by the DOW. As a result, water rate increases were approved by the Board as recommended and the four yearly water rate increases were implemented on January 1, 2012 and every July 1st thereafter for fiscal years 2013, 2014 and 2015. There is no scheduled rate increase for service and usage charges for FY 2016 which is the last of the five (5) years in the water rate study. The power cost adjustment which is determined based on several factors such as “projection”, “budget” and “actual” water consumption and pumping costs will also remain the same after analyzing these pertinent data as of the end of March, 2015.

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 35 Draft Budget for Fiscal Year 2015 -2016 May 21, 2015 Page 2 of 8

A. RESOURCES:

1. Beginning Fund Balance $19.4M (estimated).

2. Operating Revenues $31.2M (projected)

2.1 Water Sales - $26.5M. The Department of Water (DOW) is a self-supporting entity of the County of Kauai. As an enterprise fund, DOW generates revenues from the operation of various water systems island wide through water sales. Revenues from water sales including revenue from public fire protection account for 83% of our projected revenues and receipts. Projected Water Sales in FY 2016 is $2.8 million (M) less than FY 2015. This is in anticipation of decreasing water consumption. The last 18 months showed a steady decline of water usage. This declining trend is nationwide as published from known organizations’ various articles and Kauai is not an exception.

2.2 Revenue from Public Fire Protection - $1.989M. This is non-cash revenue that we bill the County of Kauai for 2,778 units of public fire hydrants that DOW maintains island wide. The County doesn’t pay the department for this bill but in exchange, DOW benefits from the county wide services that they provide to the staff. A contra-expenditure account offsets this revenue.

Page 36 Draft Budget for Fiscal Year 2015 -2016 May 21, 2015 Page 3 of 8

2.3 Grants - $2.2M. These are estimated rollovers from FY 2015 for $200K from the State Department of Health for Project WET and $1.3M from the State approved appropriation allotment. The release of funds of these grants is contingent upon actual disbursements paid by the department for the specific project to which the grant was approved for. A $688K or 70% of $983K of BAB Subsidy is also budgeted under WUF, the remaining 30% or $295K is allocated to FRC fund.

2.4 Other Revenues of $152K. These account for other water revenues such as installations, jobbing and late charges, interest income and gain or loss from the disposal of capital assets.

3. Non-Revenue Cash Inflow. The Department of Water is anticipating receiving SRF Loan Proceeds of $2M to fund a portion of the DOW Lihue Baseyard. Proceeds will be transferred to SRF fund.

4. Transfers - In, WUF- $1.225. FRC Receipts are projected @ $500K plus (30%) allocation of BAB subsidy or $295K with an estimated FRC beginning balance of $1.5M; $1.225 will be recorded as “Transfers - In” WUF to partially reimburse related FRC debt service.

5. Transfers - (Out), WUF - ($2. M) (projected). Projected receipts of $2M in loan proceeds will be recorded as a “Transfers – Out” from WUF and “Transfers – In” to SRF fund.

Page 37 Draft Budget for Fiscal Year 2015 -2016 May 21, 2015 Page 4 of 8

B. USE OF RESOURCES:

Water Utility "Uses"‐ Budget for FY 2015‐2016

Reserve Transfers, Transfers ‐ (Out) 1.2 M 2.0 M

Debt Service 4.5 M

Capital Outlays 5.7 M

Operating Expenses 27.9 M

1. Operating Expenses - $27.9M

The operating expenses are grouped by major expenditure item/s or similar category for this reporting purpose. An Operating Expense Summary and Operating Expense Detail are attached for your further review. 1.1 Salaries and Wages for FY 15-16 are budgeted at $6.242M; an increase in budget by $87 thousand (K). This is equivalent to 1.4% increase in budget from FY 2015 but below the average percentage of scheduled salary increases. The negotiated pay increases approved for implementation in FY 2016 varies for each bargaining unit and these run from 2% to 3.5% or higher for a few who are entitled to step movements. A department wide salary budget was cut down across each division by funding some vacant positions by $1.00 and partially funding other vacancies; an aggressive approach to minimize the impact on the overall budget.

1.2 Employee benefits increased by $161K or 5.7% to cover FICA taxes, Employee Retirement benefits and Health Premiums; FICA taxes and retirement benefits were based on a fixed percentage of total salaries while health premiums were fixed amounts based on plan subscriptions. Other Post-Employment Benefit (“OPEB”) costs were estimated @ $914K. This is to fully fund the Annual Required Contribution (ARC) of DOW. This estimate is based on the Actuarial Valuation Report for DOW Retiree Health Care Plan draft report as of July 1, 2013 by GRS Consultants and Actuaries.

Page 38 Draft Budget for Fiscal Year 2015 -2016 May 21, 2015 Page 5 of 8

1.3 Services which include Professional Services, Accounting & Auditing, Other General Services, Public Relations and Miscellaneous Services totaled $4.22M, an increase of $852K as compared with FY 2015 budget. Major projected expenditures under Services category are:

1.3.1 Professional Services – General; this budget line item was increased by $851K. The net increase are from the following: Engineering’s budget; $490K higher to fund preliminary engineering services, feasibility studies and environmental assessments intended for additional projects; Construction Management budget increased by $240K in anticipation of more construction activities. Fiscal - billing was also increased by $75K for the implementation of new billing software or new Customer Information System (CIS); Administration increased by $66K for board requested as needed independent performance audit and Operations by $160K for design services of generator and Kilauea MCC replacement. Water Resources & Planning budget was decreased by $190K.

1.3.2 Accounting and auditing budget was decreased by $5K.

1.3.3 Other services – is a net decrease of $81.4K for FY 2016. The CC&B investment cost recovery allocation has been deleted since HBWS doesn’t start charging this cost till the end of FY 2017. In addition, the planned request for CC&B report enhancements were deferred in anticipation of a new billing system.

1.3.4 Public Relations’ budget at $273K was decreased by $46K; due to reduction of the safe drinking water budget to $200K, the estimated unexpended amount from the State Drinking Water State Revolving Fund (“SDW SRF”) grant revenue.

1.3.5 Miscellaneous services such as Communications, Freight & Postage, Rentals & Leases and Insurance account for $1.035M in the budget; an increase of $336K from FY 2015. Budget increases are as follows: Insurance was increased by $300K from $200K to and a new budget line item for $50K was added for Board approved claims outside the County Attorney’s discretion.

1.4 County Service Charge at $1.989M is a non-cash expenditure where revenues from public fire hydrants are billed to the County of Kauai and the same amount is charged as a contra- expenditure for services rendered by the County to DOW.

1.5 Utility Services budget at$3.7M was slightly decreased by $3K as compared to FY 2015.

1.6 Repairs & Supplies which includes Repairs & Maintenance for water systems, Repairs & Maintenance – Other than water systems, Office & Operating Supplies, Fuel and Bulk Water Purchase has a total budget of $4.372M, a decrease of $293K. Fuel budget remained the same as last year while Bulk Water Purchase was increased slightly by $25K. Repairs and supplies budgets were decreased by $317K.

1.7 Human Resources budget includes Books, Publications & Memberships, Training & Development, Travel & Per diem and Meeting expenses for both staff and board members. This category was decreased by $44K from $289K in FY 2015 to $246K in FY 2016.

1.8 Interest Expense- total annual interest expense for FY 16 is $4.1M, a slight increase of $21K.

Page 39 Draft Budget for Fiscal Year 2015 -2016 May 21, 2015 Page 6 of 8

2. New Capital Outlay - $5.7M New Capital Outlay – Water Utility Fund will be presented separately below.

3. Debt Service – Principal - $4.483 M

Annual Debt Service Requirements (DSR) equals $8.58M; $4.483M is for debt principal. Total DSR for FY 2016 is increased by $97K because of the anticipated $2M loan from SRF.

4. Reserve Transfer - $1.2M.

Debt Service Reserve (DSR) transfer requires only a $0.1M budget and another $1.1 M in Emergency Reserve Fund (ERF) transfer to meet each board policy on reserves. These are not expenditure items but merely a transfer of funds from our water utility general fund. DSR is restricted to debt service payments and ERF is restricted for emergency uses. The DSR is in its 3rd year of funding while ERF is in its fifth year (5th). This will bring the DSR total to $4.3M and ERF to $5.9M. These transfers will allow DOW to fully fund the reserves as approved in Board Policy nos. 26 and 27.

In addition to the operating expenses, debt service and reserve transfers, there is a substantial capital outlay budget. For this presentation, we will be discussing the New Capital Outlay.

Page 40 Draft Budget for Fiscal Year 2015 -2016 May 21, 2015 Page 7 of 8

II. New Capital Outlay – All Funds

Department of Water (DOW) Capital Outlays are categorized as Expansion or Rehabilitation & Replacement (R&R). Each project is categorized before identifying the fund sources. Fund Source will be selected from one or more of the following based on available resources and purposes of the fund: 1.1 Water Utility Fund (WUF) 1.2 Facility Reserve Charge (FRC) Fund 1.3 Bond Fund 1.4 State Revolving Fund (SRF)

Capital Outlay budget are categorized and funded below as follows: 1. Capital Purchases - New - Rehabilitation and Replacements (“R&R”) 2. Capital Projects – R&R - Design - Construction 3. Capital Projects – Expansion - Design - Construction

Capital Outlay / Water Utility Fund: $5.7M

Capital Purchases - $2.M - Replacements. $555K. This includes an IT budget of $445K, $95K is a new budget for asset based work order system and $266K for document imaging system & project management which is a continuation of the IT Plan implementation. In addition, Operations vehicle management program has budgeted $100K replacement costs to purchase two (2) 4 x 4 pick up with lift gate to replace aging vehicles. - New. $1.42M. This includes an IT carry over request from FY 2015 budget for GIS Map viewer and mapping layers for $190K, Operations’ vehicle and equipment budget for $120K and Fiscal’s new budget of $1.1M for Customer Information System (CIS) billing implementation.

Capital Projects – R&R - $3.726 - Design – R&R Projects has fifteen (14) proposed projects for $776K; seven (7) of which are dollar funded. - Construction – R&R has 5 proposed projects with a proposed budget of $2.95M, one (1) project is dollar funded.

Capital Projects – Expansion – None - Design budget – None - Construction budget – None

Capital Outlay/ FRC Fund – $1.144M. Proposed capital projects for expansion total is $1.144M. To date, FRC fund is not in a position to wholly fund these proposed projects. An Inter-fund loan from Water Utility Fund to FRC fund will be initiated if these proposed projects will go out for bid. This will be done thru a Manager’s Report to the Board of Water Supply for approval.

Page 41 Draft Budget for Fiscal Year 2015 -2016 May 21, 2015 Page 8 of 8

Capital Projects – Expansion - $1.144M - Design budget – There are 26 proposed expansion design projects with a total budget of $1.144M, seventeen (18) of which are dollar funded each. - Construction budget – Yamada Tank, clear well & connecting pipeline is identified as 56% expansion; with a dollar ($1) budget.

Capital Outlay / BAB Fund - $13.7M

Capital Projects – R&R - $4.63M - Design budget - none - Construction budget – $4.63M. There are 8 proposed projects, one is funded @ $1.00.

Capital Projects – Expansion - $9M - Design budget – There are two (2) proposed projects; one (1) of which is dollar funded. - Construction budget – There are eight (8) proposed projects for $9.M, three (3) are funded @ $1.00.

- III. OPEN CONTRACTS & Other Encumbrances These are contracts and other obligations of the department which are already encumbered in fiscal year 2015 that may not be completed at the end of FY 2015. Actual expenditures will be posted as of June 30, 2015 and any unexpended amounts will be carried over in the next Fiscal Year.

Thank you for your attention to this matter and we look forward to working with you to refine the proposed budget.

Respectfully submitted,

Kirk Saiki, P.E. Manager and Chief Engineer

MY:ein

Mgrrp/May 2015/ Proposed Budget for FY 2015-2016 (5-21-15):ein

Page 42 Fund Balance Projections

Fund Balance Projections Water Utility **Facility State Water Utility Water Utility Emergency Reserve Bond Fund Revolving TOTAL General Fund Debt Reserve Reserve Charge Fund Fund

Estimated Beginning Balance $19,433,410 $4,800,000 $4,200,000 $1,553,317 $14,410,197 $0 $44,396,924 Unexpended Prior Year Encumbrances $1,566,590 $0 $0 $186,651 $8,384,502 $0 $10,137,743 Revenues $30,879,174 $0 $0 $794,803 $130,000 $0 $31,803,977 Non- Revenue Cash - Inflow $2,000,000 $2,000,000 Transfers In $1,225,185 $0 $0 $0 $2,000,000 $3,225,185 Transfers (Out) -$2,000,000 $0 $0 -$1,225,185 $0 -$3,225,185 Adjusted Balance $53,104,359 $4,800,000 $4,200,000 $1,309,586 $22,924,699 $2,000,000 $88,338,644 Operating Expenses $27,871,247 $0 $0 $0 $0 $0 $27,871,247 Debt Principal Repayment $4,483,163 $0 $0 $0 $0 $0 $4,483,163 New Capital Outlay - Capital Purchases $1,975,178 $0 $0 $1,975,178 New Capital Outlay - Capital Projects $3,726,008 $1,144,017 $13,717,622 $2,000,000 $20,587,647 Reserve Transfers $1,200,000 -$1,100,000 -$100,000 $0 $0 $0 $0 Unexpended Prior Year Encumbrances $1,566,590 $0 $0 $186,651 $8,384,502 $0 $10,137,743 Supplemental Budget # 1 $0 Ending Balance $12,282,172 $5,900,000 $4,300,000 -$21,082 $822,575 $0 $23,283,665 ** FRC Negative balance of $21,082 will be funded through an Interfund Transfer from Water Utility Fund as needed.

Calculation of DOW Reserves: current budget required balance budget required FY 2016

EMERGENCY Reserve = 25% of Operating Expenses net of Depreciation/Amortization & Interest Expense 23,774,878.18 $5,943,720 $1,100,000 DSR = 50% of annual DSR budget 8,579,532.42 $4,289,766 $100,000 $1,200,000

FY 2015- 2016 budget Fund Balance Projections 2015-16 Budget Summary Final 5/15/2015 1 of 17 Page 43 Budget Comparison

Water Utility Fund

FY 2014-2015 YTD FY 2013-14 FY 2014-2015 FY 2015-2016 INCREASE % INC/ Actuals (As of (Actual) Approved Budget Proposed Budget (DECREASE) (DEC) 4/30/15) Budgeted Revenue from Operations $33,334,711 $34,990,516 $26,023,264 $30,879,174 -$4,111,342 -12% Water Sales $25,839,818 $29,349,767 $24,301,806 $26,549,659 -$2,800,108 -10% Public Fire Hydrants, Investment Income & Misc $2,622,438 $2,109,642 $295,743 $2,141,642 $32,000 2% Revenues Grants $4,872,455 $3,531,107 $1,425,714 $2,187,873 -$1,343,234 -38% Budgeted Operating Expenses $18,418,588 $27,279,823 $15,820,842 $27,871,247 $591,424 2% Salaries (Regular & Special Wages) $4,495,126 $6,155,891 $4,174,758 $6,242,396 $86,506 1% Other Operating Expenses $13,923,462 $21,123,933 $11,646,084 $21,628,851 $504,919 2% Debt Service $2,783,379 $4,407,049 $4,390,954 $4,483,163 $76,114 2% Debt Service - Principal $2,783,379 $4,407,049 $4,390,954 $4,483,163 $76,114 2% Other Sources/ (Uses) $12,132,745 $3,303,644 $5,811,468 -$1,475,237 -$4,778,880 -145% Capital Outlay - Vehicles, Equipments & Misc. $3,678,449 $2,621,800 $313,231 $1,975,178 -$646,622 -25% Expenditures Net Operations (Fund Balance Transfer) $8,454,296 $681,844 $5,498,237 -$3,450,415 -$4,132,258 -606%

FY 2015- 2016 budget Budget Comparison 2015-16 Budget Summary Final 5/15/2015 2 of 17 Page 44 Revenue Summary

Actual Gross Approved Budget - FYTD Actual Receipts - Proposed Budget - Receipts - FY 2013- FY 2014-2015 As of 4/30/15 FY 2015-2016 2014 REVENUES Water Utility Fund $33,334,711 $34,990,516 $26,023,264 $30,879,174 10-00-00-400-000 Water Sales $25,839,818 $29,349,767 $24,301,806 $26,549,659 10-00-00-405-000 Revenue from Public Fire Protection $1,511,190 $1,989,642 $1,989,642 10-00-00-410-000 Other Water Revenue $653,811 $65,000 $208,808 $120,000 10-00-00-430-000 Federal Grants $400,548 $700,775 $327,879 $687,873 10-00-00-432-000 State Grants $1,530,000 $103,045 $1,500,000 10-00-00-440-000 Capital Contributions $715,616 $1,300,332 $994,791 10-00-00-453-000 Net Increase / Decrease in Fair Value of Investments $0 $0 $0 10-00-00-461-000 Investment Income $56,889 $50,000 $76,835 $30,000 10-00-00-470-000 Gain or Loss on Disposal of Capital Assets $0 $5,000 -$4,860 $2,000 10-00-00-480-000 Gain or Loss from the Retirement of Debt $0 $0 $0 10-00-00-490-000 Miscellaneous Revenues $4,156,839 $0 $14,960 $0 Water Utility Fund Bond and Loan Proceeds $5,911,752 $2,000,000 $225,381 $2,000,000 10-00-00-498-300 WU Bond Proceeds $0 10-00-00-499-600 WU/ Loan Proceeds - SRF Loan $5,911,752 $2,000,000 $225,381 $2,000,000 FRC Fund $1,790,253 $1,300,332 $289,315 $794,803 20-00-00-424-000 Facility Reserve Charge $1,500,000 $1,000,000 $277,000 $500,000 20-00-00-430-000 Federal Grants $278,253 $300,332 $294,803 20-00-00-453-000 Net Increase / Decrease in Fair Value of Investments $0 $0 20-00-00-461-000 Investment Income $12,000 $12,315 $0 Bond Fund $100,000 $150,000 $132,520 $130,000 30-00-00-453-000 Net Increase / Decrease in Fair Value of Investments $0 $0 30-00-00-461-000 Investment Income $100,000 $150,000 $132,520 $130,000 SRF Fund $1,750,000 $2,000,000 $0 60-00-00-430-000 SRF - Federal Grants $1,750,000 $2,000,000 $0 60-00-00-453-000 Net Increase / Decrease in Fair Value of Investments $0 $0

FY 2015- 2016 budget Revenue Summary 2015-16 Budget Summary Final 5/15/2015 3 of 17 Page 45 Operating Expense Summary

Actual Expenses - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016

OPERATING EXPENSES Water Utility Fund $20,840,508 $27,279,823 $15,820,842 $27,871,247 510-010 Salaries and Wages $4,568,460 $5,215,355 $3,474,423 $5,358,857 510-020 Temporary Assignment $92,000 $72,136 $60,044 510-030 Overtime $542,000 $490,624 $542,000 510-040 Special Pay $206,536 $137,576 $181,495 520-010 Compensated Annual Leave $782 $90,000 $0 $90,000 520-020 Compensated Sick Leave $0 $0 $0 520-030 Compensated Compensatory Time $10,000 $0 $10,000 530-010 FICA Taxes $345,855 $470,926 $292,065 $476,370 530-020 Retirement Contributions $744,684 $954,163 $661,182 $1,029,995 530-030 Life and Health Insurance $374,400 $518,074 $341,828 $567,885 530-040 Workers Compensation $116,471 $0 $0 $0 530-050 Unemployment Compensation $15,000 $0 $15,000 530-060 Post Employment Benefits (OPEB) $878,182 $884,000 $746,749 $914,000 540-010 Professional Services - General $889,116 $1,776,501 $513,683 $2,437,257 540-020 Professional Services - Accounting and Auditing $78,000 $105,000 $71,000 $100,000 541-010 Other Services - General $43,282 $164,030 $37,350 $82,636 541-020 Other Services - Billing Costs $191,024 $495,360 $124,072 $292,380 542-010 Public Relations - General $34,244 $318,500 $56,546 $272,850 542-020 Procurement Advertising $10,000 $2,933 $4,700 543-000 Communication Services $126,060 $90,556 $118,512 544-000 Freight and Postage Services $107,440 $24,500 $3,257 $14,250 545-000 Rentals and Leases $179,000 $97,254 $187,880 546-000 Insurance $233,410 $360,000 $5,738 $710,000 547-000 County Service Charge $1,989,642 $1,989,642 $0 $1,989,642 551-000 Utility Services $3,330,887 $3,704,000 $2,553,599 $3,701,000 560-000 Repairs and Maintenance - Water System $114,911 $665,000 $423,861 $591,000 561-000 Repairs and Maintenance - Other than Water System $248,981 $549,220 $202,698 $431,720 562-000 Office Supplies $46,000 $18,077 $45,000 563-000 Operating Supplies $648,461 $1,121,451 $528,554 $996,830 564-000 Fuel $137,764 $208,550 $96,372 $208,550

FY 2015- 2016 budget Operating Expense Summary 2015-16 Budget Summary Final 5/15/2015 4 of 17 Page 46 Operating Expense Summary

Actual Expenses - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016

OPERATING EXPENSES 565-000 Bulk Water Purchase $1,505,326 $2,074,326 $1,323,422 $2,099,326 570-010 Books, Publications, Subscriptions, and Memberships $329 $36,385 $14,258 $30,949 570-020 Books, Publications, Subscriptions, and Memberships - Board $1,200 $296 $1,025 571-010 Training and Development $82,355 $101,735 $48,418 $104,824 572-010 Travel and Per Diem $31,233 $63,440 $7,964 $64,325 572-020 Travel and Per Diem - Board $20,690 $2,017 $17,175 573-010 Meeting Expense $63,645 $44,900 $32,382 $16,150 573-020 Meeting Expense - Board $6,342 $21,000 $4,545 $11,250 580-000 Depreciation $0 $0 $0 581-000 Amortization $0 $0 $0 582-000 Interest Expense $4,075,280 $4,075,280 $3,345,407 $4,096,369 Water Utility Fund Bond and Loan Proceeds and Repayment $4,407,049 $4,407,049 $4,390,954 $4,483,163 682-000 Debt Principal Repayment $4,407,049 $4,407,049 $4,390,954 $4,483,163

Items 601, 602 and 682 are balance sheet items that are tracked as revenues and expenses for convenience during the year.

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Actual Expenses - Approved Budget - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2012-2013 FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016 OPERATING EXPENSES (Detail) Water Utility Fund Operating Expenses $18,418,588 $23,079,089 $27,279,823 $15,820,842 $27,871,247 Salaries and Wages (YTD Actual expenses includes compensated annual leaves 510-010 $4,472,433 $4,879,063 $5,215,355 $3,474,423 $5,358,857 and comp time.) 10-01-10-510-010 WU - Admin - Admin - Salaries and Wages $776,778 $804,553 $643,057 $398,271 $741,245 10-02-10-510-010 WU - IT - Admin - Salaries and Wages $0 $0 $186,372 $160,159 $189,779 10-10-40-510-010 WU - Qual - Purification - Salaries and Wages $164,645 $169,355 $198,600 $166,673 $203,418 10-20-10-510-010 WU - Eng - Admin - Salaries and Wages $160,169 $242,998 $296,603 $115,460 $253,399 10-21-10-510-010 WU - Const - Admin - Salaries and Wages $265,620 $378,104 $374,247 $206,433 $346,466 10-22-10-510-010 WU - Plan - Admin - Salaries and Wages $368,860 $421,212 $432,780 $250,954 $462,271 10-30-20-510-010 WU - Bill - Collection - Salaries and Wages $813,086 $884,466 $443,100 $358,368 $438,527 10-31-10-510-010 WU - Acctg - Admin - Salaries and Wages $0 $0 $422,356 $291,335 $412,135 10-40-30-510-010 WU - Ops - Source - Salaries and Wages $0 $0 $155,271 $155,271 $216,495 10-40-40-510-010 WU - Ops - Purification - Salaries and Wages $0 $0 $140,764 $140,764 $255,711 10-40-50-510-010 WU - Ops - PowerAndPump - Salaries and Wages $0 $0 $125,812 $125,812 $174,074 10-40-60-510-010 WU - Ops - TandD - Salaries and Wages $1,923,275 $1,978,375 $1,796,393 $1,104,923 $1,665,338 510-020 Temporary Assignment $0 $36,000 $92,000 $72,136 $60,044 10-01-10-510-020 WU - Admin - Admin - Temporary Assignment $0 $36,000 $2,000 $1,207 $1,000 10-02-10-510-020 WU - IT - Admin - Temporary Assignment $0 $0 $2,000 $205 $500 10-10-40-510-020 WU - Qual - Purification - Temporary Assignment $0 $0 $1,000 $1,423 $1,500 10-20-10-510-020 WU - Eng - Admin - Temporary Assignment $0 $0 $6,000 $9,114 $6,000 10-21-10-510-020 WU - Const - Admin - Temporary Assignment $0 $0 $9,000 $0 $5,000 10-22-10-510-020 WU - Plan - Admin - Temporary Assignment $0 $0 $7,000 $31,159 $10,000 10-30-20-510-020 WU - Bill - Collection - Temporary Assignment $0 $0 $5,000 $2,446 $5,000 10-31-10-510-020 WU - Acctg - Admin - temporary Assignment $0 $0 $10,000 $11,241 $12,000 10-40-30-510-020 WU - Ops - Source - Temporary Assignment $0 $0 $685 $685 $544 10-40-40-510-020 WU - Ops - Purification - Temporary Assignment $0 $0 $338 $338 $500 10-40-50-510-020 WU - Ops - PowerAndPump - Temporary Assignment $0 $0 $2,033 $2,033 $3,000 10-40-60-510-020 WU - Ops - TandD -Temporary Assignment $0 $0 $46,945 $12,285 $15,000 510-030 Overtime $0 $379,000 $542,000 $490,624 $542,000 10-01-10-510-030 WU - Admin - Admin - Overtime $0 $23,000 $15,000 $14,197 $20,000 10-02-10-510-030 WU - IT - Admin - Overtime $0 $0 $30,000 $44,722 $50,000 10-10-40-510-030 WU - Qual - Purification - Overtime $0 $2,000 $3,000 $3,401 $4,000 10-20-10-510-030 WU - Eng - Admin - Overtime $0 $10,000 $30,000 $22,034 $26,000 10-21-10-510-030 WU - Const - Admin - Overtime $0 $30,000 $30,000 $5,448 $25,000 10-22-10-510-030 WU - Plan - Admin - Overtime $0 $12,000 $20,000 $27,752 $30,000 10-30-20-510-030 WU - Bill - Collection - Overtime $0 $52,000 $35,000 $68,817 $60,000 10-31-10-510-030 WU - Acctg - Admin - Overtime $0 $0 $70,000 $71,945 $70,000 10-40-30-510-030 WU - Ops - Source - Overtime $0 $0 $3,729 $3,729 $6,000 10-40-40-510-030 WU - Ops - Purification - Overtime $0 $0 $37,700 $37,700 $50,000 10-40-50-510-030 WU - Ops - PowerAndPump - Overtime $0 $0 $887 $887 $1,000 10-40-60-510-030 WU - Ops - TandD - Overtime $0 $250,000 $266,684 $189,993 $200,000 510-040 Standby Pay $0 $261,700 $206,536 $137,576 $181,495 10-01-10-510-040 WU - Admin - Admin - Standby Pay $0 $3,000 $0 $0 $0 10-02-10-510-040 WU - IT - Admin - Standby Pay $0 $0 $0 $0 $0 10-10-40-510-040 WU - Qual - Purification - Standby Pay $0 $1,200 $0 $0 $0

FY 2015- 2016 budget Operating Expense Detail 2015-16 Budget Summary Final 5/15/2015 6 of 17 Page 48 Operating Expense Detail

Actual Expenses - Approved Budget - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2012-2013 FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016 OPERATING EXPENSES (Detail) 10-20-10-510-040 WU - Eng - Admin - Standby Pay $0 $6,500 $0 $0 $0 10-21-10-510-040 WU - Const - Admin - Standby Pay $0 $10,500 $0 $0 $0 10-22-10-510-040 WU - Plan - Admin - Standby Pay $0 $4,000 $0 $0 $0 10-30-20-510-040 WU - Bill - Collection - Standby Pay $0 $21,000 $0 $0 $0 10-31-10-510-040 WU - Acctg - Admin - Standby Pay $0 $0 $0 $0 $0 10-40-30-510-040 WU - Ops - Source - Standby Pay $0 $0 $0 $0 $0 10-40-40-510-040 WU - Ops - Purification - Standby Pay $0 $0 $9,636 $9,636 $11,495 10-40-50-510-040 WU - Ops - PowerAndPump - Standby Pay $0 $0 $0 $0 $0 10-40-60-510-040 WU - Ops - TandD - Standby Pay $0 $215,500 $196,900 $127,939 $170,000 Compensated Annual Leave (CAL) (*YTD Actual Expenses - CAL were added to 520-010 $12,693 $90,000 $90,000 $90,000 YTD Actual Expenses - Salaries & Wages) 10-01-10-520-010 WU - Admin - Admin - Compensated Annual Leave $12,693 $90,000 $90,000 $43,740 $90,000 10-02-10-520-010 WU - IT - Admin - Compensated Annual Leave $0 $0 $0 $12,425 $0 10-10-40-520-010 WU - Qual - Purification - Compensated Annual Leave $0 $0 $0 $17,828 $0 10-20-10-520-010 WU - Eng - Admin - Compensated Annual Leave $0 $0 $0 $12,205 $0 10-21-10-520-010 WU - Const - Admin - Compensated Annual Leave $0 $0 $0 $31,949 $0 10-22-10-520-010 WU - Plan - Admin - Compensated Annual Leave $0 $0 $0 $31,843 $0 10-30-20-520-010 WU - Bill - Collection - Compensated Annual Leave $0 $0 $0 $72,428 $0 10-31-10-520-010 WU - Acctg - Admin - Compensated Annual Leave $0 $0 $0 $28,425 $0 10-40-30-520-010 WU - Ops - Source - Compensated Annual Leave $0 $0 $0 $26,590 $0 10-40-40-520-010 WU - Ops - Purification - Compensated Annual Leave $0 $0 $0 $18,959 $0 10-40-50-520-010 WU - Ops - PowerAndPump - Compensated Annual Leave $0 $0 $0 $18,264 $0 10-40-60-520-010 WU - Ops - TandD - Compensated Annual Leave $0 $0 $0 $158,135 $0 520-020 Compensated Sick Leave $0 $0 $0 $0 10-01-10-520-020 WU - Admin - Admin - Compensated Sick Leave $0 $0 $0 10-02-10-520-020 WU - IT - Admin - Compensated Sick Leave $0 $0 $0 10-10-40-520-020 WU - Qual - Purification - Compensated Sick Leave $0 $0 $0 10-20-10-520-020 WU - Eng - Admin - Compensated Sick Leave $0 $0 $0 10-21-10-520-020 WU - Const - Admin - Compensated Sick Leave $0 $0 $0 10-22-10-520-020 WU - Plan - Admin - Compensated Sick Leave $0 $0 $0 10-30-20-520-020 WU - Bill - Collection - Compensated Sick Leave $0 $0 $0 10-31-10-520-020 WU - Acctg - Admin - Compensated Sick Leave $0 $0 $0 10-40-30-520-020 WU - Ops - Source - Compensated Sick Leave $0 $0 $0 10-40-40-520-020 WU - Ops - Purification - Compensated Sick Leave $0 $0 $0 10-40-50-520-020 WU - Ops - PowerAndPump - Compensated Sick Leave $0 $0 $0 10-40-60-520-020 WU - Ops - TandD - Compensated Sick Leave $0 $0 $0 Compensated Compensatory Time (CCT) (*YTD Actual Expenses - CCT were added 520-030 $10,000 $10,000 $10,000 $10,000 to YTD Actual Expenses - Salaries & Wages) 10-01-10-520-030 WU - Admin - Admin - Compensated Compensatory Time $10,000 $10,000 $10,000 $2,896 $10,000 10-02-10-520-030 WU - IT - Admin - Compensated Compensatory Time $0 $0 $0 $7,326 10-10-40-520-030 WU - Qual - Purification - Compensated Compensatory Time $0 $0 $0 $765 10-20-10-520-030 WU - Eng - Admin - Compensated Compensatory Time $0 $0 $0 $166 10-21-10-520-030 WU - Const - Admin - Compensated Compensatory Time $0 $0 $0 $6,183 10-22-10-520-030 WU - Plan - Admin - Compensated Compensatory Time $0 $0 $0 $744 10-30-20-520-030 WU - Bill - Collection - Compensated Compensatory Time $0 $0 $0 $2,387

FY 2015- 2016 budget Operating Expense Detail 2015-16 Budget Summary Final 5/15/2015 7 of 17 Page 49 Operating Expense Detail

Actual Expenses - Approved Budget - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2012-2013 FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016 OPERATING EXPENSES (Detail) 10-31-10-520-030 WU - Acctg - Admin - Compensated Compensatory Time $0 $0 $0 $9,789 10-40-30-520-030 WU - Ops - Source - Compensated Compensatory Time $0 $0 $0 $2,312 10-40-40-520-030 WU - Ops - Purification - Compensated Compensatory Time $0 $0 $0 $5,063 10-40-50-520-030 WU - Ops - PowerAndPump - Compensated Compensatory Time $0 $0 $0 $9,065 10-40-60-520-030 WU - Ops - TandD - Compensated Compensatory Time $0 $0 $0 $31,751 530-010 FICA Taxes $337,860 $425,016 $470,926 $292,065 $476,370 10-01-10-530-010 WU - Admin - Admin - FICA $59,424 $66,291 $58,144 $27,786 $65,962 10-02-10-530-010 WU - IT - Admin - FICA $0 $0 $16,705 $14,900 $18,381 10-10-40-530-010 WU - Qual - Purification - FICA $12,595 $13,200 $15,499 $12,463 $15,982 10-20-10-530-010 WU - Eng - Admin - FICA $12,253 $19,852 $25,444 $10,309 $21,833 10-21-10-530-010 WU - Const - Admin - FICA $20,320 $32,023 $31,613 $15,051 $28,800 10-22-10-530-010 WU - Plan - Admin - FICA $23,936 $33,447 $35,173 $21,852 $38,424 10-30-20-530-010 WU - Bill - Collection - FICA $62,201 $73,246 $36,957 $30,480 $38,520 10-31-10-530-010 WU - Acctg - Admin - FICA $0 $0 $38,430 $26,367 $37,801 10-40-30-530-010 WU - Ops - Source - FICA $0 $0 $9,978 $9,978 $17,062 10-40-40-530-010 WU - Ops - Purification - FICA $0 $0 $13,835 $13,835 $24,305 10-40-50-530-010 WU - Ops - PowerAndPump - FICA $0 $0 $8,291 $8,291 $12,450 10-40-60-530-010 WU - Ops - TandD - FICA $147,131 $186,956 $180,854.82 $100,753 $156,851 530-020 Retirement Contributions $693,227 $862,255 $954,163 $661,182 $1,029,995 10-01-10-530-020 WU - Admin - Admin - Retirement Contributions $120,401 $134,489 $117,809 $71,310 $142,270 10-02-10-530-020 WU - IT - Admin - Retirement Contributions $0 $0 $33,848 $33,254 $39,646 10-10-40-530-020 WU - Qual - Purification - Retirement Contributions $25,520 $26,781 $31,403 $28,431 $34,471 10-20-10-530-020 WU - Eng - Admin - Retirement Contributions $24,826 $40,274 $51,553 $19,547 $47,091 10-21-10-530-020 WU - Const - Admin - Retirement Contributions $41,171 $64,967 $64,053 $35,231 $62,117 10-22-10-530-020 WU - Plan - Admin - Retirement Contributions $57,173 $67,855 $71,266 $51,677 $82,875 10-30-20-530-020 WU - Bill - Collection - Retirement Contributions $126,028 $148,599 $74,881 $64,757 $83,082 10-31-10-530-020 WU - Acctg - Admin - Retirement Contributions $0 $0 $77,865 $59,292 $81,532 10-40-30-530-020 WU - Ops - Source - Retirement Contributions $0 $0 $24,751 $26,234 $36,801 10-40-40-530-020 WU - Ops - Purification - Retirement Contributions $0 $0 $29,208 $30,904 $52,422 10-40-50-530-020 WU - Ops - PowerAndPump - Retirement Contributions $0 $0 $19,953 $21,169 $29,382 10-40-60-530-020 WU - Ops - TandD - Retirement Contributions $298,108 $379,290 $357,573 $219,378 $338,306 530-030 Life and Health Insurance $342,551 $531,052 $518,074 $341,828 $567,885 10-01-10-530-030 WU - Admin - Admin - Life and Health Insurance $342,551 $531,052 $39,259 $27,620 $55,670 10-02-10-530-030 WU - IT - Admin - Life and Health Insurance $0 $0 $17,965 $12,541 $14,467 10-10-40-530-030 WU - Qual - Purification - Life and Health Insurance $0 $0 $10,558 $9,504 $11,480 10-20-10-530-030 WU - Eng - Admin - Life and Health Insurance $0 $0 $28,632 $14,322 $25,069 10-21-10-530-030 WU - Const - Admin - Life and Health Insurance $0 $0 $34,915 $12,603 $27,144 10-22-10-530-030 WU - Plan - Admin - Life and Health Insurance $0 $0 $36,888 $28,261 $45,478 10-30-20-530-030 WU - Bill - Collection - Life and Health Insurance $0 $0 $52,133 $31,760 $44,424 10-31-10-530-030 WU - Acctg - Admin - Life and Health Insurance $0 $0 $47,920 $31,515 $49,237 10-40-30-530-030 WU - Ops - Source - Life and Health Insurance $0 $0 $0 $27,751 $33,274 10-40-40-530-030 WU - Ops - Purification - Life and Health Insurance $0 $0 $0 $7,775 $14,762 10-40-50-530-030 WU - Ops - PowerAndPump - Life and Health Insurance $0 $0 $0 $17,720 $29,093 10-40-60-530-030 WU - Ops - TandD - Life and Health Insurance $0 $0 $249,804 $120,457 $217,787 530-040 Workers Compensation $47,415 $0 $0 $0 $0

FY 2015- 2016 budget Operating Expense Detail 2015-16 Budget Summary Final 5/15/2015 8 of 17 Page 50 Operating Expense Detail

Actual Expenses - Approved Budget - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2012-2013 FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016 OPERATING EXPENSES (Detail) 10-01-10-530-040 WU - Admin - Admin - Workers Compensation $47,415 $0 $0 10-02-10-530-040 WU - IT - Admin - Workers Compensation $0 $0 $0 10-10-40-530-040 WU - Qual - Purification - Workers Compensation $0 $0 $0 10-20-10-530-040 WU - Eng - Admin - Workers Compensation $0 $0 $0 10-21-10-530-040 WU - Const - Admin - Workers Compensation $0 $0 $0 10-22-10-530-040 WU - Plan - Admin - Workers Compensation $0 $0 $0 10-30-20-530-040 WU - Bill - Collection - Workers Compensation $0 $0 $0 10-31-10-530-040 WU - Acctg - Admin - Workers Compensation $0 $0 $0 10-40-30-530-040 WU - Ops - Source - Workers Compensation $0 $0 $0 10-40-40-530-040 WU - Ops - Purification - Workers Compensation $0 $0 $0 10-40-50-530-040 WU - Ops - PowerAndPump - Workers Compensation $0 $0 $0 10-40-60-530-040 WU - Ops - TandD - Workers Compensation $0 $0 $0 530-050 Unemployment Compensation $0 $0 $15,000 $0 $15,000 10-01-10-530-050 WU - Admin - Admin - Unemployment Compensation $0 $0 $15,000 $15,000 10-02-10-530-050 WU - IT - Admin - Unemployment Compensation $0 $0 $0 10-10-40-530-050 WU - Qual - Purification - Unemployment Compensation $0 $0 $0 10-20-10-530-050 WU - Eng - Admin - Unemployment Compensation $0 $0 $0 10-21-10-530-050 WU - Const - Admin - Unemployment Compensation $0 $0 $0 10-22-10-530-050 WU - Plan - Admin - Unemployment Compensation $0 $0 $0 10-30-20-530-050 WU - Bill - Collection - Unemployment Compensation $0 $0 $0 10-31-10-530-050 WU - Acctg - Admin - Unemployment Compensation $0 $0 $0 10-40-30-530-050 WU - Ops - Source - Unemployment Compensation $0 $0 $0 10-40-40-530-050 WU - Ops - Purification - Unemployment Compensation $0 $0 $0 10-40-50-530-050 WU - Ops - PowerAndPump - Unemployment Compensation $0 $0 $0 10-40-60-530-050 WU - Ops - TandD - Unemployment Compensation $0 $0 $0 530-060 Post-Employment Benefits (OPEB) $870,115 $879,000 $884,000 $746,749 $914,000 10-01-10-530-060 WU - Admin - Admin - Post Employment Benefits (OPEB) $870,115 $879,000 $884,000 $746,749 $914,000 540-010 Professional Services - General $257,344 $545,824 $1,776,501 $513,683 $2,437,257 10-01-10-540-010 WU - Admin - Admin - Professional Services - General $12,327 $99,824 $197,500 $1,996 $263,250 10-02-10-540-010 WU - IT - Admin - Professional Services - General $163,475 10-10-40-540-010 WU - Qual - Purification - Professional Services - General $51,574 $70,000 $85,000 $58,176 $95,000 10-20-10-540-010 WU - Eng - Admin - Professional Services - General $0 $368,000 $147,190 $668,006 10-21-10-540-010 WU - Const - Admin - Professional Services - General $0 $50,000 $0 $290,000 10-22-10-540-010 WU - Plan - Admin - Professional Services - General $100,801 $320,000 $775,000 $142,614 $585,000 10-30-20-540-010 WU - Bill - Collection - Professional Services - General $0 $30,001 $232 $105,001 10-31-10-540-010 WU - Acctg - Admin - Professional Services - General $53,377 $56,000 $171,000 $0 $171,000 10-40-60-540-010 WU - Ops - TandD - Professional Services - General $39,265 $0 $100,000 $260,000 540-020 Professional Services - Accounting and Auditing $54,000 $80,000 $105,000 $71,000 $100,000 10-31-10-540-020 WU - Acctg - Admin - Professional Services - Accounting and Auditing $54,000 $80,000 $105,000 $71,000 $100,000 541-010 Other Services $0 $78,000 $164,030 $37,350 $82,636 10-01-10-541-010 WU - Admin - Admin - Other Services $23,000 $23,230 $7,407 $21,836 10-30-20-541-010 WU - Bill - Collection - Other Services $13,000 $110,000 $8,031 $30,000 10-31-10-541-010 WU - Acctg - Admin - Other Services $20,000 $28,800 $21,585 $28,800 10-40-60-541-010 WU - Ops - TandD - Other Services $22,000 $2,000 $326 $2,000 541-020 Billing Costs $0 $260,000 $495,360 $124,072 $292,380

FY 2015- 2016 budget Operating Expense Detail 2015-16 Budget Summary Final 5/15/2015 9 of 17 Page 51 Operating Expense Detail

Actual Expenses - Approved Budget - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2012-2013 FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016 OPERATING EXPENSES (Detail) 10-30-20-541-020 WU - Bill - Collection - Billing Costs $260,000 $495,360 $124,072 $292,380 542-010 Public Relations - General $21,083 $86,500 $318,500 $56,546 $272,850 10-01-10-542-010 WU - Admin - Admin - Public Relations - General $21,083 $86,500 $318,500 $56,546 $272,850 542-020 Procurement Advertising $0 $0 $10,000 $2,933 $4,700 10-01-10-542-020 WU - Admin - Admin - Procurement Advertising $0 $0 $10,000 $2,933 $4,700 543-000 Communication Services $78,581 $142,420 $126,060 $90,556 $118,512 10-02-10-543-000 WU - IT - Admin - Communication Services $94,820 $78,460 $57,915 $80,632 10-40-50-543-000 WU - Ops - PowerAndPump - Communication Services $78,581 $47,600 $47,600 $32,641 $37,880 544-000 Freight and Postage $0 $7,000 $24,500 $3,257 $14,250 10-01-10-544-000 WU - Admin - Admin - Freight and Postage $7,000 $13,000 $1,812 $8,460 10-02-10-544-000 WU - IT - Admin - Freight and Postage $0 $9,000 $0 $3,290 10-10-40-544-000 WU - Qual - Purification - Freight and Postage $0 $2,500 $1,445 $2,500 545-000 Rentals and Leases $0 $109,000 $179,000 $97,254 $187,880 10-01-10-545-000 WU - Admin - Admin - Rentals and Leases $22,000 $22,000 $16,667 $22,000 10-02-10-545-000 WU - IT - Admin - Rentals and Leases $87,000 $87,000 $44,257 $95,880 10-40-60-545-000 WU - Ops - TandD - Rentals and Leases $0 $70,000 $36,331 $70,000 546-000 Insurance $41,948 $360,000 $360,000 $5,738 $710,000 10-01-10-546-000 WU - Admin - Admin - Insurance $41,948 $360,000 $360,000 $5,738 $710,000 547-000 County Service Charge $1,511,190 $1,630,230 $1,989,642 $0 $1,989,642 10-00-00-547-000 WU - County Service Charge $1,511,190 $1,630,230 $1,989,642 $1,989,642 551-000 Utility Services $3,360,498 $3,689,720 $3,704,000 $2,553,599 $3,701,000 10-01-10-551-000 WU - Admin - Admin - Utility Services $198,928 $198,720 $213,000 $118,537 $210,000 10-40-50-551-000 WU - Ops - PowerAndPump - Utility Services $3,161,570 $3,491,000 $3,491,000 $2,435,062 $3,491,000 560-000 Repairs and Maintenance - Water System $0 $135,000 $665,000 $423,861 $591,000 10-40-50-501-000 W/U - Ops - Powerand Pump - Emergency Repairs $349,346 10-40-30-560-000 WU - Ops - Source - Repairs and Maintenance - Water System $0 $0 $500,000 $67,720 $425,000 10-40-60-560-000 WU - Ops - TandD - Repairs and Maintenance - Water System $135,000 $165,000 $6,795 $166,000 561-000 Repairs and Maintenance - Other than Water System $390,074 $119,000 $549,220 $202,698 $431,720 10-01-10-561-000 WU - Admin - Admin - Repairs and Maintenance - Other than Water System $21,500 $21,500 $9,872 $21,000 10-02-10-561-000 WU - IT - Admin - Repairs and Maintenance - Other than Water System $70,698 $95,500 $221,220 $96,279 $173,370 10-10-40-561-000 WU - Qual - Purification - Repairs and Maintenance - Other than Water System $2,000 $1,500 $1,883 $2,350 10-40-60-561-000 WU - Ops - TandD - Repairs and Maintenance - Other than Water System $319,376 $0 $305,000 $94,664 $235,000 562-000 Office Supplies $6,997 $46,000 $46,000 $18,077 $45,000 10-31-10-562-000 WU - Accounting - Admin - Office Supplies $6,997 $46,000 $46,000 $18,077 $45,000 563-000 Operating Supplies $720,905 $806,500 $1,121,451 $528,554 $996,830 10-01-10-563-000 WU - Admin - Admin - Operating Supplies $21,711 $20,000 $20,000 $20 $18,000 10-02-10-563-000 WU - IT - Admin - Operating Supplies $55,658 $62,500 $82,500 $39,052 $77,500 10-10-40-563-000 WU - Qual - Purification - Operating Supplies $13,112 $20,000 $30,000 $9,669 $16,000 10-20-10-563-000 WU - Eng - Admin - Operating Supplies $0 $0 $1,150 $4 $1,080 10-21-10-563-000 WU - Const - Admin - Operating Supplies $0 $0 $2,000 $1,374 $2,500 10-22-10-563-000 WU - Plan - Admin - Operating Supplies $0 $0 $3,500 $73 $3,250 10-30-20-563-000 WU - Bill - Collection - Operating Supplies $16,000 $5,000 $3,000 $1,630 $2,800 10-31-10-563-000 WU - Acctg - Admin - Operating Supplies $35,000 $9,700 $10,000 $1,261 $4,700 10-40-30-563-000 WU - Ops - Source - Operating Supplies $0 $0 $150,000 $108,879 $115,000 10-40-40-563-000 WU - Ops - Purification - Operating Supplies $73,000 $77,500 $27,340 $78,000

FY 2015- 2016 budget Operating Expense Detail 2015-16 Budget Summary Final 5/15/2015 10 of 17 Page 52 Operating Expense Detail

Actual Expenses - Approved Budget - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2012-2013 FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016 OPERATING EXPENSES (Detail) 10-40-50-563-000 WU - Ops - PowerAndPump - Operating Supplies $43,896 $41,000 $41,000 $37,888 $131,000 10-40-60-563-000 WU - Ops - TandD - Operating Supplies $535,528 $575,300 $700,801 $301,364 $547,000 564-000 Fuel $140,409 $208,550 $208,550 $96,372 $208,550 10-40-60-564-000 WU - Ops - TandD - Fuel $140,409 $208,550 $208,550 $96,372 $208,550 565-000 Bulk Water Purchase $1,583,082 $2,074,326 $2,074,326 $1,323,422 $2,099,326 10-40-60-565-000 WU - Ops - TandD - Bulk Water Purchase $1,583,082 $2,074,326 $2,074,326 $1,323,422 $2,099,326 570-010 Books, Publications, Subscriptions, and Memberships $0 $24,900 $36,385 $14,258 $30,949 10-01-10-570-010 WU - Admin - Admin - Books, Publications, Subscriptions, and Memberships $23,600 $30,360 $12,653 $25,289 10-02-10-570-010 WU - IT - Admin - Books, Publications, Subscriptions, and Memberships $0 $0 $1,000 $0 $500 10-10-40-570-010 WU - Qual - Purification - Books, Publications, Subscriptions, and Memberships $0 $0 $150 $0 $200 10-20-10-570-010 WU - Eng - Admin - Books, Publications, Subscriptions, and Memberships $0 $0 $100 $0 $200 10-21-10-570-010 WU - Const - Admin - Books, Publications, Subscriptions, and Memberships $600 $2,775 $1,405 $2,850 10-30-20-570-010 WU - Bill - Collection - Books, Publications, Subscriptions, and Memberships $0 $0 $500 $0 $500 10-31-10-570-010 WU - Acctg - Admin - Books, Publications, Subscriptions, and Memberships $700 $1,500 $200 $1,410 570-020 Books, Publications, Subscriptions, and Memberships - Board $0 $1,200 $1,200 $296 $1,025 10-01-10-570-020 WU - Admin - Admin - Books, Publications, Subscriptions, and Memberships - Board $1,200 $1,200 $296 $1,025 571-010 Training and Development $50,215 $65,690 $101,735 $48,418 $104,824 10-01-10-571-010 WU - Admin - Admin - Training and Development $50,215 $50,690 $21,860 $9,845 $22,799 10-02-10-571-010 WU - IT - Admin - Training and Development $0 $15,000 $15,650 $8,142 $18,650 10-10-40-571-010 WU - Qual - Purification - Training and Development $0 $0 $1,200 $229 $2,820 10-20-10-571-010 WU - Eng - Admin - Training and Development $0 $0 $1,200 $809 $1,130 10-21-10-571-010 WU - Const - Admin - Training and Development $0 $0 $1,700 $1,300 $2,500 10-22-10-571-010 WU - Plan - Admin - Training and Development $0 $0 $1,500 $6,415 $10,800 10-30-20-571-010 WU - Bill - Collection - Training and Development $0 $0 $15,650 $868 $5,650 10-31-10-571-010 WU - Acctg - Admin - Training and Development $0 $0 $2,975 $2,034 $2,975 10-40-60-571-010 WU - Ops - TandD - Training and Development $0 $0 $40,000 $18,776 $37,500 572-010 Travel and Per Diem $29,092 $43,820 $63,440 $7,964 $64,325 10-01-10-572-010 WU - Admin - Admin - Travel and Per Diem $29,092 $43,820 $43,540 $3,503 $41,515 10-02-10-572-010 WU - IT - Admin - Travel and Per Diem $0 $0 $0 $2,273 $0 10-20-10-572-010 WU - Eng - Admin - Travel and Per Diem $0 $0 $4,000 $478 $3,760 10-21-10-572-010 WU - Const - Admin - Travel and Per Diem $0 $0 $8,000 $1,537 $8,000 10-31-10-572-010 WU - Acc - Admin - Travel and Per Diem $0 $0 $2,900 $0 $6,050 10-40-40-572-010 WU - Ops - Purification - Travel and Per Diem $0 $0 $2 10-40-50-572-010 WU - Ops - PowerAndPump - Travel and Per Diem $0 $0 $24 10-40-60-572-010 WU - Ops - TandD - Travel and Per Diem $0 $0 $5,000 $147 $5,000 572-020 Travel and Per Diem - Board $8,377 $25,188 $20,690 $2,017 $17,175 10-01-10-572-020 WU - Admin - Admin - Travel and Per Diem - Board $8,377 $25,188 $20,690 $2,017 $17,175 573-010 Meeting Expense $0 $27,558 $44,900 $32,382 $16,150 10-01-10-573-010 WU - Admin - Admin - Meeting Expense $0 $17,043 $28,800 $27,973 $1,000 10-20-10-573-010 WU - Eng - Admin - Meeting Expense $0 $0 $500 $0 $450 10-21-10-573-010 WU - Const - Admin - Meeting Expense $0 $0 $7,000 $2,285 $6,000 10-31-10-573-010 WU - Acctg - Admin - Meeting Expense $0 $2,515 $600 $0 $1,200 10-40-60-573-010 WU - Ops - TandD - Meeting Expense $0 $8,000 $8,000 $2,125 $7,500 573-020 Meeting Expense - Board $0 $14,007 $21,000 $4,545 $11,250 10-01-10-573-020 WU - Admin - Admin - Meeting Expense - Board $0 $14,007 $21,000 $4,545 $11,250

FY 2015- 2016 budget Operating Expense Detail 2015-16 Budget Summary Final 5/15/2015 11 of 17 Page 53 Operating Expense Detail

Actual Expenses - Approved Budget - Approved Budget - FYTD Actual Exp. - Proposed Budget - FY 2012-2013 FY 2013-2014 FY 2014-2015 As of 4/30/15 FY 2015-2016 OPERATING EXPENSES (Detail) 580-000 Depreciation $0 $0 $0 $0 $0 10-00-90-580-000 WU - Depreciation - Depreciation $0 $0 $0 581-000 Amortization $0 $0 $0 $0 $0 10-00-90-581-000 WU - Depreciation - Amortization $0 $0 $0 582-000 Interest Expense $3,378,498 $4,145,570 $4,075,280 $3,345,407 $4,096,369 10-00-00-582-000 WU - Interest Expense $3,378,498 $4,145,570 $4,075,280 $3,345,407 $4,096,369 Water Utility Fund Bond and Loan Repayment $2,783,379 $4,034,944 $4,407,049 $4,390,954 $4,483,163 682-000 Debt Principal Repayment $2,783,379 $4,034,944 $4,407,049 $4,390,954 $4,483,163 10-00-00-682-000 WU - Debt Principal Repayment $2,783,379 $4,034,944 $4,407,049 $4,390,954 $4,483,163

FY 2015- 2016 budget Operating Expense Detail 2015-16 Budget Summary Final 5/15/2015 12 of 17 Page 54 New Capital Outlay

Anticipated Approved Budget FY Proposed Budget FY NTPs 2014- 2015 2015- 2016 CAPITAL Outlay (New Appropriations) $2,621,800 $1,975,178 Water Utility Fund (Misc. Capital Purchases - Replacement) $2,323,300 $555,175 10-02-00-604-999 WU-IT-RandR Capital Purchases $1,658,300 $445,175 10-21-10-604-999 WU-Const/Admin/Capital Purchases $0 $10,000 10-30-00-604-999 WU-Fiscal-RandR Capital Purchases $25,000 $0 10-40-00-604-999 WU-Ops-RandR Capital Purchases $640,000 $100,000 Water Utility Fund (Misc. Capital Purchases - New) $298,500 $1,420,003 10-01-00-605-999 WU-Admin-RandR Capital Purchases $0 10-02-00-605-999 WU-IT-Expansion Capital Purchases $199,500 $190,000 10-10-00-605-999 WU-Qual-Expansion Capital Purchases $4,000 $0 10-21-10-605-999 WU-Const/Admin/Capital Purchases $0 $10,000 10-30-00-605-999 WU-Fiscal-RandR Capital Purchases $1,100,000 10-40-00-605-999 WU-Ops-Expansion Capital Purchases $95,000 $120,003 CAPITAL PROJECTS (New Appropriations) $36,557,214 $20,587,647 Water Utility Fund (Capital Projects - Rehabilitation & Replacement- Design) $926,001 $776,007 10-20-00-604-001 WU-Eng-ALLR-KW-07 Paua Valley Tank Repair Jan-16 $150,000 $150,000 10-20-00-604-005 WU-Eng-ALLR-Gate Valves-Hydrant Laterals, Poipu Rd Sep-15 $50,000 $50,000 10-20-00-604-006 WU-Eng-34%R-PLH-28 Hanamaulu Main (Hoohana Street) $51,000 $1 10-20-00-604-007 WU-Eng-ALLR-WK-11a Upper Wailua Houselots Main Rpl $250,000 $1 10-20-00-604-009 WU-Eng-ALLR-Hanapepe Stream Crossing $225,000 $0 10-20-00-604-011 WU-Eng-ALLR-Jelly Factory BP Station Rehab Jul-15 $200,000 $200,000 10-20-00-604-013 WU-Eng-ALLR-PLH-32 Rice St Kapule Intersection $1 $1 10-20-00-604-xxx WU-Eng-Rehabilitate Puupilo Steel tank Nov-15 $0 $250,000 10-20-00-604-xxx WU-Eng-Kuhio Hwy (Hardy-Oxford) 16" Main replacement (R&R 56% of $100K) Feb-16 $0 $84,000 10-20-00-604-xxx WU-Eng-Kilauea 1.0 MG tank (RR 10%) NTP issued $0 $15,000 10-20-00-604-xxx WU-Eng-Anini waterline ph b (RR 21%) NTP issued $0 $0 10-20-00-604-xxx WU-Eng-Hanapepe-Eleele Connecting Pipeline HE-1 and HE-10 (RR 12%) July-15 $0 $27,000 10-20-00-604-xxx WU-Eng-Kuhio Hwy (N. Papaloa to Waikaea Canal) Main Replacement (RR 56%) $1 10-20-00-604-xxx WU-Eng-Makanui and Kuai Road Main Replacement (RR 37%) $1 10-20-00-604-xxx WU-Eng-0Wailani Road and Waihohonou Road main replacement (RR 28%) $1 10-20-00-604-xxx WU-Eng-Hoona, Hoone, Pane Road main replacement (RR 37%) $1

FY 2015- 2016 budget New Capital Outlay 2015-16 Budget Summary Final 5/15/2015 13 of 17 Page 55 New Capital Outlay

Anticipated Approved Budget FY Proposed Budget FY NTPs 2014- 2015 2015- 2016 CAPITAL Outlay (New Appropriations) $2,621,800 $1,975,178 Water Utility Fund (Capital Projects - R&R - Construction) $4,850,001 $2,950,001 10-21-00-604-102 WU-Cns-44%R-10-01 Ani-01b-Anini Rd WL DOW-Princvl Jul-16 $1,000,000 $1,000,000 10-21-00-604-029 WU/Const/Capital Outlay/09-01, Yamada Tank, Clearwell & connecting PL Mar-17 $2,200,000 $1 10-21-00-604-032 WU-Cns-ALLR-13-05 Kolo Road Main (Kilauea School) Jul-15 $1,300,000 $1,300,000 10-21-00-604-033 WU-Cns-ALLR-13-07, Koloa Well D Repairs (s/b 20, per Dustin) Jan-16 $1 $300,000 10-21-00-604-035 WU-Cns-ALLR-XX-YY, HE-14, Eleele Booster Rehab Nov-16 $350,000 $350,000 FRC Fund (Capital Projects - Expansion - Design ) $1,599,003 $1,144,016 20-20-00-605-006 FRC-Eng-66%E-PLH-28 Hanamaulu Main (Hoohana Street) $99,000 $1 20-20-00-605-010 FRC-Eng-ALLE-Wailua Homesteads 538 1.0 MG Tank $500,000 $1 20-20-00-605-012 FRC-Eng-ALLE-Hanapepe-Eleele Connecting Pipeline $1 $0 20-20-00-605-014 FRC-Eng-ALLE-Purchase Water System 1 $1 $1 20-20-00-605-015 FRC-Eng-ALLE-Purchase Water System 2 $1 $1 20-20-00-605-016 FRC-Eng-ALLE-Poipu 1 MG Storage Tank $500,000 $1 20-20-00-605-017 FRC-Eng-ALLE-18IN Cane Haul Road Main FY 2016 $90,000 $90,000 20-20-00-605-018 FRC-Eng-ALLE-H-08 Hanalei Well 2 NTP Issued $60,000 $75,000 20-20-00-605-019 FRC-Eng-E-Kapaia SWTP Expansion $350,000 $1 20-20-00-605-xxx FRC-Eng-Kuhio Hwy (Hardy-Oxford) 16" Main replacement (EXP 44% of $150K) Feb-16 $66,000 20-20-00-605-xxx FRC-Eng-Kilauea 1.0 MG tank (EXP 90%) NTP Issued $135,000 20-20-00-605-xxx FRC-Eng-Wainiha Well #4 (EXP) NTP Issued $80,000 20-20-00-605-xxx FRC-Eng-Anini waterline ph b (EXP 79%) NTP Issued $0 20-20-00-605-xxx FRC-Eng-Hanapepe-Eleele Connecting Pipeline HE-1 and HE-10 (EXP 88%) Jul-15 $198,000 20-20-00-605-xxx FRC-Eng-land acquisition for Kilauea Well #3 $1 20-20-00-605-xxx FRC-England aqcuisition for jelly factory booster pump $1 20-20-00-605-xxx FRC-Eng-land aqcuisition for Wailua Homesteads tank $1 20-20-00-605-xxx FRC-Eng-land aqcuisition for Poipu tank $1 20-20-00-605-xxx FRC-Eng-land acquisition for Haena 0.2 MG tank $1 20-20-00-605-xxx FRC-Eng-land acquisition for SWTP expansion $1 20-20-00-605-xxx FRC-Eng-Haena 0.2 MG tank (EXP) Aug-15 $200,000 20-20-00-605-xxx FRC-Eng-Drill and Test Kilauea Well #3 (EXP) NTP Issued $300,000 20-20-00-605-xxx FRC-Eng-Kuhio Hwy (N. Papaloa to Waikaea Canal) Main Replacement (EXP 44%) $1 20-20-00-605-xxx FRC-Eng-Makanui and Kuai Road Main Replacement (EXP 63%) $1 20-20-00-605-xxx FRC-Eng-Wailani Road and Waihohonou Road main replacement (EXP 72%) $1 20-20-00-605-xxx FRC-Eng-Hoona, Hoone, Pane Road main replacement (EXP 63%) $1

FY 2015- 2016 budget New Capital Outlay 2015-16 Budget Summary Final 5/15/2015 14 of 17 Page 56 New Capital Outlay

Anticipated Approved Budget FY Proposed Budget FY NTPs 2014- 2015 2015- 2016 CAPITAL Outlay (New Appropriations) $2,621,800 $1,975,178 FRC Fund (Capital Projects - Expansion - Construction) $2,800,001 $1 20-21-00-605-017 FRC-Eng-ALLE-18IN Cane Haul Road Main $1 $0 20-21-00-605-029 FRC-Cns-56%E-11-10 Yamada Tank Clearwell, Conn Pip Mar-17 $2,800,000 $1 Bond Fund (Capital Projects - R&R - Construction) $11,140,108 $4,630,848 30-21-00-604-101 BAB-Cns-ALLR-10-01 Ani01a-Anini Kalihiwai 6IN Main $1 $1 30-21-00-604-102 BAB-Cns-44%R-10-01 Ani-01b-Anini Rd WL DOW-Princvl Jul-16 $452,000 $452,000 30-21-00-604-107 BAB-Cns-ALLR-XX-YY KP-09-MCC Chlor KoloaWell16-A,E February-16 $1,400,000 $1,600,000 30-21-00-604-109 BAB-Cns-19%R-XX-YYLO-08LO-10-Koloa Al.-Piko, Lawai Jul-16 $266,000 $563,847 30-21-00-604-112 BAB-Cns-40%R-11-02 PLH-01a Grove Farm Tanks 1 - 2 June-16 $800,000 $800,000 30-21-00-604-114 BAB-Cns-ALLR-XX-YY PLH-39a-Lihue Baseyard Imprvmt $7,007,107 $0 30-21-00-604-120 BAB-Cns-10%R-0206WKK15-Kilauea 466 Tnk Puu Pane W3 June-16 $250,000 $250,000 30-21-00-604-129 BAB-Cns-ALLR-11-10 8IN WL Halewili, Kaum to HHale Sep-15 $800,000 $800,000 30-21-00-604-136 BAB-Cns-11%R-XX-YY H-05 Weke Anae Hee 6-8IN Mains August-15 $165,000 $165,000 Bond Fund (Capital Projects - Expansion - Design) $165,000 $50,001 30-20-00-605-139 BAB-Eng-ALLE-Moloaa Tank Site Acquisition $115,000 $1 30-20-00-605-140 BAB-Eng-ALLE-Koloa Well F Land Acquisition $50,000 $50,000 Bond Fund (Capital Projects - Expansion - Construction) $11,077,100 $9,036,773 30-21-00-605-102 BAB-Cns-56%E-10-01 Ani-01b-Anini Rd WL DOW-Princvl July-16 $1,848,000 $1,848,000 30-21-00-605-106 BAB-Cns-50%E-03-04 K05a-Kalaheo Tank 0.5MG 886FT $1 $1 30-21-00-605-109 BAB-Cns-81%E-XX-YYLO-08LO-10-Koloa Al.-Piko, Lawai July-16 $1,134,000 $2,403,770 30-21-00-605-110 BAB-Cns-ALLE-WK-08-Kapaa Homestead Tank (Ornellas) $2,810,099 $1 30-21-00-605-112 BAB-Cns-60%E-11-02 PLH-01a Grove Farm Tanks 1 - 2 June-16 $1,200,000 $1,200,000 30-21-00-605-118 BAB-Cns-ALLE-WK-39-Kapaa Homestead Well No. 4 Feb-17 $500,000 $1 30-21-00-605-120 BAB-Cns-90%E-0206WKK15-Kilauea 466 Tnk Puu Pane W3 June-16 $2,250,000 $2,250,000 30-21-00-605-136 BAB-Cns-89%E-XX-YY H-05 Weke Anae Hee 6-8IN Mains Aug-15 $1,335,000 $1,335,000 SRF Fund (Capital Projects - R&R - Construction) $4,000,000 $2,000,000 60-21-00-604-114 SRF-Cns-ALLR-X-YY PLH-39a-Lihue Baseyard Imprvmts $4,000,000 $2,000,000

FY 2015- 2016 budget New Capital Outlay 2015-16 Budget Summary Final 5/15/2015 15 of 17 Page 57 Open Contracts and Projects

Prior Prior Appropriation or Appropriation or FY 2014-2015 YTD 2015-2016 Roll to GL Code Encumbrance (FY Encumbrance (FY Actual Exp. Rollover 2013- 2014 2013- 2014

Prior Encumbrances and Special Appropriations $15,529,398 $9,033,000 $2,944,504 $10,137,743 Water Utility Fund (Non-capital) $1,976,926 $1,284,582 $655,435 $834,147 10-02-10-540-010 IT Review & Assessment $591,500 $184,975 $163,475 $21,500 10-22-10-540-010 FRC Study for DOW $1,205 $1,205 $1,205 10-20-10-540-010 As Needed Engineering Services $10,000 10-22-10-540-010 Kauai Water Use & Development Plan Update $515,460 $457,606 $457,606 10-22-10-540-010 UH Rainfall Study $113,507 $51,707 $42,924 $8,783 10-22-10-540-010 USGS $24,690 $20,310 10-22-10-540-010 Kauai Water Shed Alliance $75,000 $75,000 10-31-10-540-020 Job 98-17, Financial Accounting $12,246 $12,246 $0 $12,246 10-40-50-501-001 Con 581 - Kalaheo Deepwell No.1 $270,093 $113,266 $113,266 $0 10-40-50-501-001 Con 585 - Cushnie Construction $88,458 $9,500 $9,500 $0 10-40-50-501-001 Emergency Repairs - Kalaheo (uncommitted portion of the $650k special appropriation) $376,449 $254,875 $116,193 $138,682 10-40-50-501-002 Con - Oasis $0 $121,574 $110,387 $11,187 10-00-00-582-000 Debt Interest and Loan Fees (Latest Analysis of Amortization Schedules) $19,941 $19,941 10-00-00-682-000 Other Debt Principal Repayment (Latest Analysis of Amortization Schedules) $57,687 $57,687 Water Utility Fund Capital Purchases $305,067 $293,055 $313,231 $122,885 10-02-00-604-999 WU-IT-RandR Capital Purchases $8,455 22187.36 10-40-00-604-999 64,000 GVR Truck $192,357 $192,357 $183,197 $0 10-40-00-604-999 WU-Ops-RandR Capital Purchases $0 $0 $121,578 0 10-40-30-563-000 Con 582 - Various water pipe repair & fittings $75,432 $63,420 $63,420 10-40-00-604-999 Con 583 - Supercab Md Pick up truck w/ accessories $37,278 $37,278 $37,278 Water Utility Fund (Capital Projects - R&R - Design) $1,095,642 $849,777 $156,384 $173,540 10-20-00-604-033 Con 580 - Job 13-07, Koloa Well D repairs $59,088 $30,582 $16,378 $14,204 10-20-00-604-108 06-01, KW-28 - Renovate Kekaha Shaft (5842-02) and 12 Inch D.I. $540,236 $527,637 $17,094 $0 10-20-00-604-121 02-17, H-01 - Maka Ridge Tank to Kuhio Hwy Road Improvement $12,309 $9,309 $0 10-20-00-604-129 11-10, 8"WL along Halewili Rd (Kaumualii Hwy to Haka Hale St) $33,370 $11,000 $7,343 $3,657 10-20-00-604-132 13-05, Kolo Road Main Replacement $20,475 $12,528 $12,528 10-20-00-604-135 12-04, HE-14, Eleele Booster Rehab $92,000 $92,000 $45,773 $46,227 10-20-00-604-136 XX-YY, H-05, Weke, Anae, and He'e Roads 6" and 8" Main Replacement $115,567 $60,354 $60,354 10-20-00-604-138 11-07, HE-03, Hanapepe & Koloa Well MCC Imprvements $165,129 $106,367 $69,796 $36,571 Water Utility Fund (Capital Projects - R&R - Construction) $2,273,390 $200,725 $0 $200,725 10-21-00-604-126 02-19, Waipouli Main Replacement $904,723 $200,725 $200,725

FY 2015- 2016 budget Open Contracts and Projects 2015-16 Budget Summary Final 5/15/2015 16 of 17 Page 58 Open Contracts and Projects

Prior Prior Appropriation or Appropriation or FY 2014-2015 YTD 2015-2016 Roll to GL Code Encumbrance (FY Encumbrance (FY Actual Exp. Rollover 2013- 2014 2013- 2014

Prior Encumbrances and Special Appropriations $15,529,398 $9,033,000 $2,944,504 $10,137,743 Water Utility Fund (Capital Projects - Expansion - Design) $261,274 $235,293 $0 $235,293 10-20-00-605-137 11-11, K-17 Kalaheo Surface Water Treatment Facility, 0.5 MG $56,214 $30,233 $30,233 10-20-00-605-142 99-08, LO-07, Drill & Develop Omao Well $79,860 $79,860 $79,860 10-20-00-605-139 02-11, M-02 100K Gal Tank & Pipeline Moloaa $125,200 $125,200 $0 $125,200 FRC Fund (Capital Projects - Expansion - Design) $268,880 $186,651 $0 $186,651 20-20-00-605-104 05-02, HW-12 - Drill and Develop Wainiha - Haena Well 100 GPM $116,505 $47,869 $0 $47,869 20-20-00-605-117 12-02, WK-23 - U of H Experimentation - Storage Tank, 605 Ft, .025MG $40,425 $26,832 $0 $26,832 20-20-00-605-118 04-08, WK-39 - Drill and Develop Kapaa Homesteads Well No. 4, 500 GPM $111,950 $111,950 $0 $111,950 Bond Fund (Capital Projects - R&R - Design) $964,670 $843,678 $45,146 $798,532 30-20-00-604-101 10-01, Ani-01a- Anini and Kalihiwai Road 6 Inch Main (9,156 Ft) $241,960 $166,600 $0 $166,600 30-20-00-604-105 09-01, K-01 - Kalaheo 1111 Ft and 1222 Ft Water System Improvements (8 Inch Main, Well and 0.5$412,149 MG Tank) $412,149 $0 $412,149 30-20-00-604-110 11-04, LO-10 - Lawai 6 Inch and 8 Inch Main Replacement (6,400 Ft) $29,655 $29,655 $5,967 $23,688 30-20-00-604-112 11-02, PLH-01a - Replace Grove Farm Tanks 1 and 2 $198,023 $153,858 $39,179 $114,679 30-20-00-604-114 XX-YY, PLH-39a - Lihue Baseyard Complex Improvements - Phase 1 $1,543 $76 $0 $76 30-20-00-604-115 11-06, WK-01 - Rehabilitate Moelepe Tunnel and Improve Access Road $81,340 $81,340 $0 $81,340 Bond Fund (Capital Projects - R&R - Construction) $2,389,137 $561,403 $132,799 $7,158,134 30-21-00-604-121 02-17, H-01 - Maka Ridge Tank to Kuhio Hwy Road Improvement $686,705 $410,376 $132,799 $0 30-21-00-604-127 03-02, Wainiha Booster Pump Renovation, Haena Steel Tank Reno, Anahola 0.15 MG Tank Reno,$924,290 Kekaha Shaft Reno $0 $0 30-21-00-604-131 13-03, Lihue Mill Bridge Widening $754,347 $151,027 $151,027 30-21-00-604-114 BAB-Cns-ALLR-XX-YY PLH-39a-Lihue Baseyard Imprvmt $0 $0 $0 $7,007,107 Bond Fund (Capital Projects - Expansion - Design) $459,073 $415,791 $0 $415,791 30-20-00-605-104 05-02, HW-12 - Drill and Develop Wainiha - Haena Well 100 GPM $32,430 $32,430 $0 $32,430 30-20-00-605-125 02-01, Kukuiolono Tank $202,767 $182,775 $0 $182,775 30-20-00-605-138 11-03, M-03, Land Acquisition Moloaa & Waimea Wells $75,615 $52,325 $0 $52,325 30-20-00-605-139 02-11, M-02 100K Gal Tank & Pipeline Moloaa $94,222 $94,222 $0 $94,222 30-20-00-605-116 02-14, WK-08 - Kapaa Homesteads Tank 1.0MG $54,039 $54,039 $0 $54,039 Bond Fund (Capital Projects - Expansion - Construction) $86,040 $12,045 $0 $12,045 30-21-00-605-120 02-06, WKK-15 - Construct Kilauea 466 Tank, 1.0MG, Puu Pane Well 3 $86,040 $12,045 $0 $12,045 SRF Fund (Capital Projects - R&R - Construction) $3,899,861 $4,000,000 $1,641,508 $0 60-21-00-604-124 02-15, WK-28 - Wailua Houselots 8 Inch Main Rehabilitation (11,004 Ft) $77,425 $0 $0 60-21-00-604-124 02-15, WK-28 - Wailua Houselots 8 Inch Main Rehabilitation (11,004 Ft) $3,822,436 $0 $0 60-21-00-604-114 XX-YY, PLH-39a - Lihue Baseyard Complex Improvements - Phase 1 $4,000,000 $1,641,508

FY 2015- 2016 budget Open Contracts and Projects 2015-16 Budget Summary Final 5/15/2015 17 of 17 Page 59 REVENUES 2014-2015 Total Budget Account Description Budget for FY15-16 Water Utility Fund $ 34,990,516 $ 30,879,174 10-00-00-400-000 WU/Water Sales $ 29,349,767 $ 26,549,659 10-00-00-405-000 WU/Revenue from Public Fire Protection $ 1,989,642 $ 1,989,642 10-00-00-410-000 WU/Other Water Revenue $ 65,000 $ 120,000 10-00-00-430-000 WU/Federal Grants $ 700,775 $ 687,873 10-00-00-432-000 WU/State Grants $ 1,530,000 $ 1,500,000 10-00-00-440-000 WU/Capital Contributions $ 1,300,332 10-00-00-453-000 WU/Net Increase in Fair Value of Investments 10-00-00-461-000 WU/Investment Income $ 50,000 $ 30,000 10-00-00-470-000 WU/Gain or Loss on Disposal of Capital Assets $ 5,000 $ 2,000 10-00-00-480-000 WU/Gain or Loss from the Retirement of Debt $ - $ - 10-00-00-490-000 WU/Miscellaneous Revenues $ - $ - Non-Revenue Cash Inflow $ 2,000,000 $ 2,000,000 10-00-00-498-300 WU/Bond Proceeds - BAB $ - $ - 10-00-00-499-600 WU/Loan Proceeds - SRF Loan $ 2,000,000 $ 2,000,000 FRC Fund $ 1,300,332 $ 794,803 20-00-00-424-000 FRC/Facility Reserve Charge $ 1,000,000 $ 500,000 20-00-00-430-000 FRC/Federal Grants $ 300,332 $ 294,803 20-00-00-453-000 FRC/Net Increase in Fair Value of Investments $ - $ - 20-00-00-461-000 FRC/Investment Income $ - BAB Fund $ 150,000 $ 130,000 30-00-00-453-000 BAB/Net Increase in Fair Value of Investments $ - $ - 30-00-00-461-000 BAB/Investment Income $ 150,000 $ 130,000 SRF Fund $ 2,000,000 $ - 60-00-00-430-000 SRF/Federal Grants $ 2,000,000 60-00-00-453-000 SRF/Net Increase in Fair Value of Investments $ - $ -

FY 2015-2016 budget Revenues 00 - Revenues Final 5/15/2015 1 of 2 Page 60 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2015 - 2016 REVENUES WATER UTILITY FUND 1. WATER SALES & SERVICE CHARGE

A. WATER SALES REVENUES

Forecast of consumption excluding agricultural demand. Projected Increase due to Rate Change Rates Effective Projected Consumption Rates Effective

July 1, 2015 (000 gallons) July 1, 2015 Base Charge $3.80 364,210 1,383,998 First Block $4.85 2,045,213 9,919,283 Second Block $5.65 829,019 4,683,957 Third Block $9.50 233,342 2,216,747 Fourth Block $10.00 233,342 2,333,418 3,705,126 20,537,404

B. AGRICULTURAL SALES $2.20 121,334 $266,935

C. SERVICE CHARGE 5,462,545 Forecast of service charge based on projected 20,500 consumers at various charges per size of meters

TOTAL CALCULATED WATER SALES 3,826,460 26,266,884 Leak Adjustments (45,000) ($171,000) Adjustment factor of -3.0% (Based on historical difference versus actual)

TOTAL PROJECTED WATER SALES: 3,781,460 26,095,884

D. COST OF POWER ADJUSTMENT Projected Consumption for FY 15-16 of 3,781,460 gallons @ Cost of Power adjustment rate of $0.12 per 1,000 gallons 453,775

TOTAL PROJECTED REVENUES 26,549,659

FY 2015-2016 budget rev details 00 - Revenues Final 5/15/2015 2 of 2 Page 61 General Expenses - Admin

2014-2015 2015-2016 Account Description Budget Budget Water Utility Fund 10-01-10-540-010 WU/Admin/Admin/Professional Services - General $ 197,500 $ 263,250 10-01-10-541-010 WU/Admin/Admin/Other Services - General $ 23,230 $ 21,836 10-01-10-542-010 WU/Admin/Admin/Public Relations $ 318,500 $ 272,850 10-01-10-542-020 WU/Admin/Admin/Procurement Advertising $ 10,000 $ 4,700 10-01-10-544-000 WU/Admin/Admin/Freight and Postage Services $ 13,000 $ 8,460 10-01-10-545-000 WU/Admin/Admin/Rentals and Leases $ 22,000 $ 22,000 10-01-10-546-000 WU/Admin/Admin/Insurance $ 360,000 $ 710,000 10-01-10-551-000 WU/Admin/Admin/Utility Services $ 213,000 $ 210,000 10-01-10-561-000 WU/Admin/Admin/Repairs and Maintenance - Other than Water System $ 21,500 $ 21,000 10-01-10-562-000 WU/Admin/Admin/Office Supplies $ - $ - 10-01-10-563-000 WU/Admin/Admin/Operating Supplies $ 20,000 $ 18,000 10-01-10-570-010 WU/Admin/Admin/Books, Publications, Subscriptions, and Memberships $ 30,360 $ 25,289 10-01-10-570-020 WU/Admin/Admin/Books, Publications, Subscriptions, and Memberships - Board $ 1,200 $ 1,025 10-01-10-571-010 WU/Admin/Admin/Training and Development $ 21,860 $ 22,799 10-01-10-572-010 WU/Admin/Admin/Travel and Per Diem $ 43,540 $ 41,515 10-01-10-572-020 WU/Admin/Admin/Travel and Per Diem - Board $ 20,690 $ 17,175 10-01-10-573-010 WU/Admin/Admin/Meeting Expense $ 28,800 $ 1,000 10-01-10-573-020 WU/Admin/Admin/Meeting Expense - Board $ 21,000 $ 11,250 10-01-00-604-999 WU/Admin/Capital Outlay - Rehabilitation and Replacement/Equipment $ - $ - 10-01-00-605-999 WU/Admin/Capital Outlay - Expansion/Equipment $ - $ -

SUMMARY OF OPERATING EXPENSES $ 1,366,180 $ 1,672,149 SUMMARY OF CAPITAL PURCHASES $ - OPERATING EXPENSES PLUS CAPITAL OUTLAY $ 1,366,180 $ 1,672,149

FY 2015 - 2016 budget Admin Expenses 01- Admin - Admin (R) Final 5/14/2015 1 of 19 Page 62 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Professional Services - General $197,500 $263,250

Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 Special Counsel No $75,000 $100,000 Legislative Liaison No $10,000 $10,000 Professional Facilitator No for Public meetings $2,000 $2,000 Cultural Services No Blessing, Info, etc. $500 $500 Other Services - Board No Performance Audit $110,000 $150,000 Drug and Alcohol Testing Yes Pre-Employement and Reasonable Suspicion $0 $750 Contingency No Miscellaneous budget under Fixed Charges $0 $0

FY 2015 - 2016 budget 10-01-10-540-010 01- Admin - Admin (R) Final 5/14/2015 2 of 19 Page 63 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Other Services - General $23,230 $21,836 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 Fire and Burglar Alarm Service No $8,000 $8,000 Solid Waste Disposal Services No $5,000 $5,000 Miscellaneous Contractual Service No $10,000 $8,606 subject to Board Policy #3 Allowance for unmappable prior year No $0 $0 expenses contingency No $230 $230

FY 2015 - 2016 budget 10-01-10-541-010 01- Admin - Admin (R) Final 5/14/2015 3 of 19 Page 64 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Public Relations $318,500 $272,850 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Advertising; Promotional & Education Materials (logo items, giveaways, Public Relations Programs No $35,000 $25,350 publications, brochures, meeting supplies, presentation supplies, displays, etc.)

Water Conservation Program No HBWS Summer Conservation Program; DOW Water Conservation Plan $24,000 $20,000

Water Conservation District No Grant $7,500 $7,500 (EWSWD) Project WET No Make-A-Splash, Project WET Conference $20,000 $20,000

Yes (Grant Safe Drinking Water - SRF (DOH Grant - source protection education program) SDW-SRF $230,000 $200,000 Funded) ($230K was under misc. capital expenditures)

4 projects @ $500, for adds and notices - newspaper/radio, etc. for public adds/notices for Engineering projects No $2,000 $0 meetings

FY 2015 - 2016 budget 10-01-10-542-010 01- Admin - Admin (R) Final 5/14/2015 4 of 19 Page 65 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Procurement Advertising $10,000 $4,700 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Legal Ads for Solicitation, Public Notices for Projects, Proposals for all Divisions Publications Y $10,000 $4,700 (excluding Board publications, see Board Meeting Expense GL 573-020)

FY 2015 - 2016 budget 10-01-10-542-020 01- Admin - Admin (R) Final 5/14/2015 5 of 19 Page 66 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Freight and Postage Services $13,000 $8,460

Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 Office communication not Including Water Bills; Includes Governmental Departmental Postage No $13,000 $8,460 Records, Water System Standards, etc

FY 2015 - 2016 budget 10-01-10-544-000 01- Admin - Admin (R) Final 5/14/2015 6 of 19 Page 67 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Rentals and Leases $22,000 $22,000 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Lease Agreement with UH Puhi Well 3 No $1,000 $1,000

Lease Agreement Kilauea Booster No $1,000 $1,000 Pump License Fee Agreement McBryde No $20,000 $20,000 Trust

FY 2015 - 2016 budget 10-01-10-545-000 01- Admin - Admin (R) Final 5/14/2015 7 of 19 Page 68 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Insurance $360,000 $710,000 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

General, Excess, Liability/Property Insurance and Provision **A provision of $100,000 each is procvided annually to cover both premium and reserves for General Liability and Property Insurance; the Department of Water in Insurance and Bonds No $200,000 $500,000 conjunction with the County of Kauai is self-insured for liability and automobile insurance. Excess coverage after a certain limit is obtained. Increase budget to $500K to match deductible from Insurance.

Small Claims fund per Board Policy #25 authorizing the County Attorney to Small Claims No investigate, settle and pay all claims filed against the Board of Water Supply $10,000 $10,000 where such claims amount to $10,000 Board Approved Claims Yes Claims outside of the County Attorney's discretion. $50,000 Deductibles No General Liability, Workers Comp, etc $150,000 $150,000

FY 2015 - 2016 budget 10-01-10-546-000 01- Admin - Admin (R) Final 5/14/2015 8 of 19 Page 69 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Utility Services $213,000 $210,000 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Electricity - Office & Shop No 27000kwh x $0.50 x 12 months $162,000 $160,000

Electricity - Microbiology Lab No 8500 kwh $0.50 x 12 months $51,000 $50,000

FY 2015 - 2016 budget 10-01-10-551-000 01- Admin - Admin (R) Final 5/14/2015 9 of 19 Page 70 General Expenses - Admin

WU/Admin/Admin/Repairs and Maintenance - TOTAL: $0 Other than Water System $21,500 $21,000 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 Air Conditioning No $16,000 $16,000 Elevator No $3,000 $3,000 Kauai Fire Protection No $2,000 $2,000 Fax Machine - Admin No $500 $0

FY 2015 - 2016 budget 10-01-10-561-000 01- Admin - Admin (R) Final 5/14/2015 10 of 19 Page 71 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Office Supplies $0 $0 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Copy Paper No $0

Office Supplies No Pens, Pencils, Writing Pads, Binders, Storage Boxes, Folders, Note Pads, Etc $0

Freight (Office Supplies) No $0

Office and Desk Accessories No $0

Miscellaneous Forms No Letterheads, envelopes, booklet covers $0

Janitorial Supplies No $0 contingency $0 Yes $0

Zee Medical Front Office $0

moved budget from Admin to Fiscal

FY 2015 - 2016 budget 10-01-10-562-000 01- Admin - Admin (R) Final 5/14/2015 11 of 19 Page 72 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Operating Supplies $20,000 $18,000 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Reserve provision for extraordinary cost items in relation to Operating Miscellaneous Expense No $20,000 $18,000 Expenditures

FY 2015 - 2016 budget 10-01-10-563-000 01- Admin - Admin (R) Final 5/14/2015 12 of 19 Page 73 General Expenses - Admin

WU/Admin/Admin/Books, Publications, TOTAL: $0 Subscriptions, and Memberships $30,360 $25,289 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 Operations Certification No $5,000 $0 AWWA Membership No Annual Membership Dues (01/01/16 - 12/31/16) for DOW $3,100 $3,100 Books and Subscriptions No Administration Personnel $2,500 $2,500 AWWA - Research Foundation No Membership Dues $10,800 $10,800 Hawaii State Bar Association No Annual Association Dues $600 $600 Westlaw No 130 * 12 (months) $1,560 $1,200 Hawaii Rural Water No Membership Dues $6,600 $6,600 AWWA Membership dues n Manager & Deputy $150 AEE Yes Association of Energy Engineers Membership Dues for the Manager $200 $0 SHRM Yes Society for for Human Resource Management Membership Dues $0 $190 IPMA-HR Yes International Public Management Association for HR Membership Dues $0 $149

** Operations Certification - budget was moved from Admin to Operations

FY 2015 - 2016 budget 10-01-10-570-010 01- Admin - Admin (R) Final 5/14/2015 13 of 19 Page 74 General Expenses - Admin

WU/Admin/Admin/Books, Publications, TOTAL: $0 Subscriptions, and Memberships - Board $1,200 $1,025 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 American Water Works Association AWWA No $1,200 $525 Annual memberships ($75 X 7 Board Members) Books and Subscriptions Yes $0 $500

FY 2015 - 2016 budget 10-01-10-570-020 01- Admin - Admin (R) Final 5/14/2015 14 of 19 Page 75 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Training and Development $21,860 $22,799 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Administrative Conference No Administrative Professionals Course (Registration/Lodging/Training Materials) $6,500 $5,000

Registration for administration personnel workshops and technical conferences Seminars & Workshops No and other educational workshops, including human resources (see travel & per $5,000 $3,000 diem if required travel GL 572-010) Recognition Program No Retirees, Water Bucks, Recognition Awards $8,560 $2,600 Mindfulness Training No Administration Personnel ($600 X 3) $1,800 $1,800 AWWA National Conference No Registration & Course Materials X 3 (Chicago, IL) ($950 X 3) $2,850 AWWA Hawaii HWEA Conference No Registration & Course Materials X 4 (Honolulu, HI) ($500 X 4) $2,000 HWWA Hawai'i Section Conference No Registration & Course Materials X 7 (Honolulu, HI) ($400 X 4) $2,800 IPMA Professional Development Yes Administration - HR $999 Certificate HR SES Seminar Yes HR Training CEU $350 HR NBI Seminar Yes HR Training CEU $350 HR Law Seminar Yes HR Training CEU $350

AWWA Utility Manager's Confrerence Registration and Course Materials $700

FY 2015 - 2016 budget 10-01-10-571-010 01- Admin - Admin (R) Final 5/14/2015 15 of 19 Page 76 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Travel and Per Diem $43,540 $41,515 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Legislature No Per diem and airfare for the Manager & Chief Engineer $5,000 $3,500

Per diem and airfare for administration personnel workshops and technical Seminars & Workshops No conferences and other educational workshops, including human resources (see $18,000 $6,000 GL 571-010 for registration fees) AWWA (Chicago, IL) x 3 (airfare $1300, Per Diem $725 & Lodging $1250 for 2 AWWA National Conference No $7,100 $7,325 rooms) AWWA (Honolulu) x 4 (airfare $200, Per Diem $350 & Lodging $1800 for 3 AWWA Hawaii HWEA Conference No $2,500 $4,000 rooms) AWWA (Honolulu) x 7 (airfare $200, Per Diem $350 & Lodging $1800 for 3 HWWA Hawai'i Section Conference $0 $5,650 rooms) AWWA National Membership No Per diem and airfare for the Manager & Chief Engineer $4,740 $4,740 Committee Meeting AWWA, HWWA Board and No Per diem and airfare for the Manager & Chief Engineer $3,200 $3,200 Committee Meetings

AWWA Utility Manager's Confrerence Per Diem and airfare $1,700

Administrative Conference No Airfare and Per Diem $3,400

Ground Transportation No Car Rental, Shuttle Services $2,000 Contingencies $3,000

FY 2015 - 2016 budget 10-01-10-572-010 01- Admin - Admin (R) Final 5/14/2015 16 of 19 Page 77 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Travel and Per Diem - Board $20,690 $17,175

Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016

Per diem and airfare for Board workshops and technical conferences and other Seminars & Workshops No $5,500 $0 educational workshops (see GL 573-020:Meeting Expense for registration fees)

AWWA (Chicago, IL) x 3 (airfare $1300, Per Diem $1015 & lodging @ $1250 for AWWA National Conference No $12,090 $7,325 2 rooms) AWWA (Honolulu) x 4 (airfare $200, Per Diem $350 & Lodging $1800 for 3 AWWA Hawaii HWEA Conference No $1,600 $4,000 rooms)) HWWA (Honolulu) x 3 (airfare $200, Per Diem $350, Lodging $1200 for 2 HWWA Hawai'i Section Conference No $0 $2,850 rooms) Mileage No $300 $300 Ground Transportation $0 No Car Rental, Shuttle Services $1,200 $1,200 Contingency Yes Contingency for board training & development - travel $0 $1,500

FY 2015 - 2016 budget 10-01-10-572-020 01- Admin - Admin (R) Final 5/14/2015 17 of 19 Page 78 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Meeting Expense $28,800 $1,000 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 Seminars & Workshops $0 $0

AWWA National (3) No $3,600 $0

AWWA Hawaii Section (4) No $1,700 $0

HWWA Section Conference Yes Conference on Kauai; Registration; Speakers; Misc items $20,000 $0

Annual meeting No Supplies $3,500 $1,000

STOP -- Correct Sum at top if there are more than 29 line items

FY 2015 - 2016 budget 10-01-10-573-010 01- Admin - Admin (R) Final 5/14/2015 18 of 19 Page 79 General Expenses - Admin

TOTAL: $0 WU/Admin/Admin/Meeting Expense - Board $21,000 $11,250 Line Item Dollar Amount New Request? Notes FY 2014-2015 FY 2015-2016 Registration for Board workshops and technical conferences and other Seminars & Workshops Yes educational workshops (see GL 572-020:Travel & Per Diem/Board for Travel & $0 $0.00 Per Diem) AWWA National Conference No Registration & Course Materials X 3 (Chicago, IL) ($950 X 3) $7,200 $2,850 AWWA Hawaii HWEA Conference No Registration & Course Materials X 4 (Honolulu, HI) ($500 X 4) $1,300 $2,000 HWWA Hawai'i Section Conference No Registration & Course Materials X 3 (Honolulu, HI) ($400 X 3) $1,500 $1,200 Meals No Board Meetings $1,000 $1,200 Drinks and supplies No Board Meetings $1,000 $1,000 Publications No Advertising, Public Notices $6,000 $1,500 Miscellaneous No Contingency for Board trainings $3,000 $1,500

STOP -- Correct Sum at top if there are more than 34 line items

FY 2015 - 2016 budget 10-01-10-573-020 01- Admin - Admin (R) Final 5/14/2015 19 of 19 Page 80 General Expenses - I.T.

2014-2015 Budget Total Budget for Account Description (Approved) FY15-16 Water Utility Fund 10-02-10-543-000 WU/IT/Admin/Communication Services $ 78,460 $ 80,632 10-02-10-544-000 WU/IT/Admin/Freight and Postage Services $ 9,000 $ 3,290 10-02-10-545-000 WU/IT/Admin/Rentals and Leases $ 87,000 $ 95,880 10-02-10-561-000 WU/IT/Admin/Repairs and Maintenance - Other than Water System $ 221,220 $ 173,370 10-02-10-563-000 WU/IT/Admin/Operating Supplies $ 82,500 $ 77,500 10-02-10-570-010 WU/IT/Admin/Books, Publications, Subscriptions, and Memberships $ 1,000 $ 500 10-02-10-571-010 WU/IT/Admin/Training and Development $ 15,650 $ 18,650 10-02-10-572-010 WU/IT/Admin/Travel and Per Diem $ - $ - 10-02-00-604-999 WU/IT/Capital Outlay - Rehablitation and Replacement/Capital Purchases $ 1,658,300 $ 445,175 10-02-00-605-999 WU/IT/Capital Outlay - Expansion/Capital Purchases $ 199,500 $ 190,000

SUMMARY OF OPERATING EXPENSES $ 494,830 $ 449,822 SUMMARY OF CAPITAL PURCHASES $ 1,857,800 $ 635,175 OPERATING EXPENSES PLUS CAPITAL OUTLAY $ 2,352,630 $ 1,084,997

FY 2015 - 2016 budget IT Expenses (Jeff) 02 - IT Budget Detail Final 5/14/2015 1 of 11 Page 81 General Expenses - I.T.

TOTAL: WU/IT/Admin/Communication Services $78,460 $80,632 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Internet Connection No Monthly charge of 350 x 12 (RR) $4,200 $4,200 Lavanet No Monthly charge of 260 x 12 $3,120 $3,120 Bandwidth No Monthly charge of 2500 x 12 $27,600 $30,000 Frame Relay (128K) No Monthly charge of 220 x 12 $2,640 $2,640 Frame Relay (56K) No Monthly charge of 110 x 12 $1,320 $1,320 Frame Relay (AS400) No Monthly charge of 110 x 12 $1,320 $1,320 Main Telephone Lines No Monthly charge of 410 x 12 $4,920 $4,920 Fax for Administration No Monthly 45 x 12 months $540 $540 Fax for Main Office No Monthly 45 x 12 months $540 $540 Long Distance Charges No Monthly 100 x 12 months $1,200 $1,200 Microlab Elevator Phone No Monthly 45 x 12 months $540 $540 Microlab Fire Alarm No Monthly 125 x 12 months $1,500 $1,500 Office Alarm Circuit No Monthly 85 x 12 months $1,020 $1,020

Cellular Phone (Office, includes 15 cell phones, 11 Ipads (1 has been cancelled, so Monthly 1750 x 12 months - This cost is only for monthly services. Any there is 10 Ipads with Service), 7 (1 has No replacement/new equipment and/or accessories will come from each Division's $18,000 $21,000 been cancelled so total is 6) Mobile Hot Operating Budget. Spots; Telemetrey for SCADA)

DOW hotspot Yes Monthly 100 X 12 ( HOTSPOT For Employees to connect their personal devices to) $0 $2,200

contingency Yes $10,000 $4,572

FY 2015 - 2016 budget 10-02-10-543-000 02 - IT Budget Detail Final 5/14/2015 2 of 11 Page 82 General Expenses - I.T.

TOTAL: WU/IT/Admin/Freight and Postage Services $9,000 $3,290 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Shipping Leased Computers No $ 8,000 $ 2,290 Shipping of hardware for fixing No $ 1,000 $ 1,000

FY 2015 - 2016 budget 10-02-10-544-000 02 - IT Budget Detail Final 5/14/2015 3 of 11 Page 83 General Expenses - I.T.

TOTAL: WU/IT/Admin/Rentals and Leases $87,000 $95,880 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Computer Leases No Recurring Leases and New leases for Computers, Laptops, Servers, etc $50,000 $53,880 Copier Leases No $32,000 $32,000 Postage Machine/Scale Feeder No $5,000 $5,000 Contingencies $0 $5,000

FY 2015 - 2016 budget 10-02-10-545-000 02 - IT Budget Detail Final 5/14/2015 4 of 11 Page 84 General Expenses - I.T.

WU/IT/Admin/Repairs and Maintenance - Other TOTAL: than Water System $221,220 $173,370

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Local Network No $ 6,500 $ - OCE Printer/Scanner No $ 5,000 $ 5,000 HP Printers No $ 3,500 $ 3,500 Firewall No $ 5,000 $ 5,000 Canon Scanner No $ 1,500 $ 1,500 Dell Kace No $ 2,500 $ 2,500 AMR Software No $ 6,000 $ 6,000 Trimble Handhelds (Badger) No Handhelds for Meter Readers $ 210 $ 210 Ascent Capture No $ 2,000 $ 2,000 Anti-Virus No $ 7,000 $ 7,000 ESRI No $ 2,500 $ 2,500 Great Plains No Maintenance & Support $ 11,000 $ 11,000 Citrix (Go to Assist/Meeting) No $ 2,000 $ 2,000 XC2 No $ 1,200 $ 1,200 MPET/MMIS No $ 40,000 $ 36,000 Maintenance/Troubleshooting No $ 50,000 $ 35,000 Water CAD No $ 6,800 $ 6,800 AutoCAD No $ 3,500 $ 3,700 Go Exchange No $ 3,500 $ 3,500 IP Switch No $ 1,000 $ 1,000 Busch Consulting - Hours No firewall block of hours $ 12,000 $ 12,000 VoIP Phone No $ 12,000 $ 12,000 Team No $ 500 $ 500 Office Watch - Metropolis No $ 500 $ 650 SSL Certifcate No $ 810 $ 810 Stellent No $ 700 $ 3,000 Paramount No Maintenance & Support $ 3,000 $ 3,000 Websense No $ 4,000 $ 4,000 Terrago No $ 500 $ 500 FIS Hosting No March - June 30, 2015 (Great Plains & Paramount Hosting) $ 20,000 $ - Fire Suppression System No Fenwall FM-200 Fire Suppression System $ 1,500 $ 1,500 Copier Maintenance No $ 5,000 $ -

FY 2015 - 2016 budget 10-02-10-561-000 02 - IT Budget Detail Final 5/14/2015 5 of 11 Page 85 General Expenses - I.T.

TOTAL: WU/IT/Admin/Operating Supplies $82,500 $77,500 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Computer Supplies No Software, storage devices, toner, etc $ 50,000 $ 45,000 Computer Hardware No Printers, external hard drives, etc $ 20,000 $ 20,000 Paper for Oce & Large Format Printers No $ 12,500 $ 12,500

FY 2015 - 2016 budget 10-02-10-563-000 02 - IT Budget Detail Final 5/14/2015 6 of 11 Page 86 General Expenses - I.T.

TOTAL: WU/IT/Admin/Books, Publications, Subscriptions, and Memberships $1,000 $500 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Books/Magazines/Subscriptions Yes Computer Books and Magazines $1,000 $500

FY 2015 - 2016 budget 10-02-10-570-010 02 - IT Budget Detail Final 5/14/2015 7 of 11 Page 87 General Expenses - I.T.

TOTAL: WU/IT/Admin/Training and Development $15,650 $18,650 New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Training for IT Personnel (I.T. responsible for several new applications and requesting for formal training to better support staff, including and not limited to: Great Plains, SQL IT Training No $15,000 $18,000 Server, and SharePoint.) Each Training cost is approximately $5000.00, which includes, Registration, All Travel Costs, PerDiem, etc.

Mindfullness Training No Registration for Training for 2 Personnel ($325 x 2) $650 $650

FY 2015 - 2016 budget 10-02-10-571-010 02 - IT Budget Detail Final 5/14/2015 8 of 11 Page 88 General Expenses - I.T.

TOTAL: WU/IT/Admin/Travel and Per Diem $0 $0 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Per Diem is part of Training & Development

FY 2015 - 2016 budget 10-02-10-572-010 02 - IT Budget Detail Final 5/14/2015 9 of 11 Page 89 General Expenses - I.T.

WU/IT/Capital Outlay - Rehablitation and Replacement/Capital TOTAL: Purchases $1,658,300 $445,175

New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Implementation of New Document Imaging Yes IT Strategic Plan $266,000 $266,000 System & Project Management

Kofax Capture Upgrade Yes $10,000 $10,000 Microfilm to Image Conversion Yes $20,000 $20,000 AMR Laptop/Case Software Yes Additional Laptop (Spare) & Maintenance $20,000 $0 Replacement of AMR Transpondents rough Nos. 70.0 per endpoint and $1.00 per month per meter for 15,000 to 20,000 meters $1,274,000 $0 Develop capabilities for Asset based Work Yes Partial budget for this fiscal year (total cost -$ 317,500) $0 $95,000 Order System Upgrade Network Cableling Yes Switch/telephone configuration for new building $55,000 $25,000 Contingencies Contigencies Approved for IT Strategic Plan (13,300 for PM; 15,875 MMIS) $13,300 $29,175

FY 2015 - 2016 budget 10-02-00-604-999 02 - IT Budget Detail Final 5/14/2015 10 of 11 Page 90 General Expenses - I.T.

TOTAL: WU/IT/Capital Outlay - Expansion/Capital Purchases $199,500 $190,000 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Develop Web based GIS viewer and Yes IT Strategic Plan - Continuous Developing layers in-house $190,000 $190,000 mapping layers

Contigencies Contigencies Approved for IT Strategic Plan (13,300 for PM; 15,875 MMIS) $9,500 $0

FY 2015 - 2016 budget 10-02-00-605-999 02 - IT Budget Detail Final 5/14/2015 11 of 11 Page 91 Water Quality Division

Program Budget - FY 2015 – 2016

Water Quality Division: The Water Quality Division oversees all the activities relating to meeting the requirements of the Environmental Protection Agency’s Safe Drinking Water Act (SDWA). This includes both the microbial and chemical aspects of the regulation. The division also provides support to other divisions to insure the water is safe to drink. Also, the Water Quality Lab provides customer service in relation to water quality issues.

Program Description: The Water Quality Division is responsible for all the activities that help insure that the water that The Kauai Department of Water (KDOW) provides to its customers meets all the requirements of the SDWA. The Water Quality Lab also monitors source water quality which is also helpful to operations. The Water Quality Lab handles water quality complaints Special studies to support the development of projects like the surface water treatment plant are also the division’s responsibility.

Program Projects:

1. Phase 2-5 Chemical sampling every three years (last round in 2012). We will be starting sampling for the 2013-2015 period.in July 2015 and end in December 2015. Estimate cost at $80,000.

2. Make up sampling for repaired wells offline during 2012 phase 2-5 sampling period will be schedule for this year (2015). Estimate cost at $5000.

3. Disinfection Byproduct sampling is continuous.

4. Nitrate sampling is continuous.

10 WaterQualityProgramBudget2015-2016 Page 1of 3

Page 92 5. Total Coliform Rule microbiological sampling is continuous.

6. Maintaining State certification to perform microbiological analysis in house is continuous.

7. Weekly monitoring of surface water zone of mixing is continuous.

8. Microbiological Monitoring of sources going on line after extended periods. As needed.

9. Sampling and analysis to determine baseline physical water quality of sources continuous.

10. Worked with SDWB to get Safe Drinking Water Information System (SDWIS) operational. It allows our Lab to share data and plan sampling schedules.

11. Worked with SDWB to launch the Sample Reservation and Collection System (SCRS) which will allow the Lab to schedule sampling with the State Laboratory and follow sample processing.

12. Unregulated Contaminant Monitoring Rule #3 will have a few make up samples and the Surface Water Treatment Plant quarterly sample.

FY FY FY Program Measures 2013-2014 2014-2015 2015-2016 (actual) (estimate) (estimate)

Microbiological Samples 1200 1200 1300

Lead and Copper Samples 72 122 122

Water Quality Complaints 70 75 75

10 WaterQualityProgramBudget2015-2016 Page 2of 3

Page 93 Phase 2-5 Testing for 2014-2016 Completed Partial To be completed

UCMR3 System 434 SE1 System 400 SE1 Make up samples and SE2 50% and SE2 complete as wells come complete back online LT2 Crytosporidium monitoring System 400 Pending

10 WaterQualityProgramBudget2015-2016 Page 3of 3

Page 94 General Expenses - Water Quality

Approved Budget Proposed Budget Account Description for FY14-15 for FY15-16 Water Utility Fund 10-10-40-540-010 WU/Qual/Purification/Professional Services - General $ 85,000 $ 95,000 10-10-40-544-000 WU/Qual/Purification/Freight and Postage Services $ 2,500 $ 2,500 10-10-40-561-000 WU/Qual/Purification/Repairs and Maintenance - Other than Water System $ 1,500 $ 2,350 10-10-40-563-000 WU/Qual/Purification/Operating Supplies $ 30,000 $ 16,000 10-10-40-570-100 WU/Qual/Purification/Books, Publications, Subscriptions, and Memberships $ 150 $ 200 10-10-40-571-010 WU/Qual/Purification/Training and Development $ 1,200 $ 2,820 10-10-40-604-999 WU/Qual/Purification/Capital Outlay - Replacement $ - $ - 10-10-40-605-999 WU/Qual/Purification/Capital Outlay - Expansion/Equipment $ 4,000 $ -

SUMMARY OF OPERATING EXPENSES $ 120,350 $ 118,870 SUMMARY OF CAPITAL PURCHASES $ 4,000 $ - OPERATING EXPENSES PLUS CAPITAL OUTLAY $ 124,350 $ 118,870

FY 2015- 2016 budget WQ Expenses (Carl) 10- Admin - Water Quality Final 5/14/2015 1 of 8 Page 95 General Expenses - Water Quality

TOTAL: WU/Qual/Purification/Professional Services - General $85,000 $95,000

New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Water sample testing services EPA-mandated UCMR3 testing for Lihue Kapaa System; budget increase due to increased No $65,000 $85,000 (Contract Lab Services) number of samples being taken (covering larger area than last year's contract)

Misc Testing - Phase 2/5 No EPA-mandated compliance monitoring $20,000 $10,000

FY 2015- 2016 budget 10-10-40-540-010 10- Admin - Water Quality Final 5/14/2015 2 of 8 Page 96 General Expenses - Water Quality

TOTAL: WU/Qual/Purification/Freight and Postage Services $2,500 $2,500

New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

No (was Shipping samples an Admin 24 shipments of $100 each (shipping samples to contract lab) $2,400 $2,400 budget)

No (was Shipping equipment for calibration an Admin One shipment per year $100 $100 budget)

FY 2015- 2016 budget 10-10-40-544-000 10- Admin - Water Quality Final 5/14/2015 3 of 8 Page 97 General Expenses - Water Quality

WU/Qual/Purification/Repairs and Maintenance - Other than TOTAL: Water System $1,500 $2,350

New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Autoclave maintenance and repairs No Annual inspection and contingency for possible repair (lower than last year because Autoclave is new) $1,500 $2,350

FY 2015- 2016 budget 10-10-40-561-000 10- Admin - Water Quality Final 5/14/2015 4 of 8 Page 98 General Expenses - Water Quality

TOTAL: WU/Qual/Purification/Operating Supplies $30,000 $16,000

New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Lab supplies No Sample bottles, reagents, media $20,000 $14,000

Water Quality Reports No Preparation & Mailing of Annual Water Quality Reports Notices $10,000 $2,000 (CCR's)

FY 2015- 2016 budget 10-10-40-563-000 10- Admin - Water Quality Final 5/14/2015 5 of 8 Page 99 General Expenses - Water Quality

WU/Qual/Purification/Books, Publications, Subscriptions, TOTAL: and Memberships $150 $200

New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Standard Methods Book Yes Need to update; the current book is out of date $150 $200

FY 2015- 2016 budget 10-10-40-570-010 10- Admin - Water Quality Final 5/14/2015 6 of 8 Page 100 General Expenses - Water Quality

TOTAL: WU/Qual/Purification/Training and Development $1,200 $2,820

New FY 2014- FY 2015- Line Item Notes Request? 2015 2016

Training classes Yes SDOH & EPA rules and regulations and lab data management $1,200 $2,820

FY 2015- 2016 budget 10-10-40-571-010 10- Admin - Water Quality Final 5/14/2015 7 of 8 Page 101 General Expenses - Water Quality

TOTAL: WU/Qual/Purification/Capital Outlay - Expansion/Equipment $4,000 $0

New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Contract lab is requiring us to ship samples with ice packs because samples have been coming in too warm to Ice Machine Yes $4,000 $0 be suitable for testing. Planning a 60 pound per day machine (smallest size made)

FY 2015- 2016 budget 10-10-40-605-999 10- Admin - Water Quality Final 5/14/2015 8 of 8 Page 102

Engineering Division

Program Budget - FY 2015- 2016

Engineering Division:

The Engineering Division is responsible for the design of water projects such as reservoirs, pumping facilities and pipelines by planning, contracting for design and conducting design review for water system improvements funded by the Department as outlined in Water Plan 2020. The Engineering Division is also responsible for the design review and approval of water facilities by private parties for dedication to the Department.

There are five permanent positions budgeted for the Engineering division for FY 2014 – 2015. As of February 2015, Of the five positions, two positions are filled. Two CE V and a CE II position are currently vacant. The CE II position is in the process of being changed to a CE I position. It is anticipated that a CE I position may be filled sooner than a CE II position.

The Special Projects and the Engineering Design & Construction divisions of the Department were reorganized in late 2012, into the Engineering Division and the Construction Management Division. The Engineering Division duties were changed to no longer oversee the construction and construction inspection of new projects.

Program Description:

The Engineering Division administers the majority of the Capital Improvement Projects (CIP) and Rehabilitation and Replacement Projects (R&R) and provides engineering services to the Operations Division during emergencies.

The Engineering Division administers engineering consultant contracts; evaluates the feasibility of pipeline alignments and sites for water facilities; prepares plans and specifications and bid documents for new water facilities. The Division performs all necessary construction plan review for Water Plan 2020 projects.

The Engineering Division maintains the Water System Standards, provides service to private developers who design and build water system improvements that will be dedicated to the County by performing construction plan review for water facilities that are being dedicated to the County.

20 EngineeringProgramBudget2015-2016 Page 1 of 3

Page 103

Program Objectives:

1. Improve the water facilities infrastructure by providing new well sources, storage tanks and waterlines through its CIP Program as assigned.

2. Maintain and upgrade existing water facilities through the Rehabilitation and Replacement (R&R) Program as assigned.

3. Oversee the design and integration of privately constructed water system improvements, as assigned, that are dedicated into the Department's system

4. Provide engineering services to ensure the design of the water facilities are done in accordance with the Water System Standards of the Department.

Program Highlights:

1. During fiscal year 2014-2015, the Engineering Division initiated the design of new CIP and R&R projects as part of our overall effort to address capacity deficiencies and aging infrastructure issues in our water systems. In addition, progress has been made on projects from previous years.

Planning and/or Design is proceeding and/or continues for the Anini and Kalihiwai Pipeline Improvements, Kilauea 1.0 MG Tank, 1.0 MG Kapahi Tank, Kapaa Homesteads Well #4, Moloaa 0.1 MG Tank, Kalaheo Water System Improvements (Yamada Tank, Nursery Tank and connecting pipeline), Kokolau Tunnel/Akulikuli Tunnel/Kalaheo Surface Water Improvements feasibility study, Koloa Well MCC Improvements, Kalaheo 886’ 0.5 MG Tank, 8” Waterline along Halewili Road, Replacement of Grove Farm Tanks 1 and 2, and Rehabilitate Moalepe Tunnel and Access Road Improvements, Lawai-Omao Waterline Replacements, the Weke, Anai Mahimahi and Heʻe Roads Main Replacements, Hanapepe-Ele'ele Booster Pump Rehabilitation, Koloa Well “D” Retaining Wall and site Repairs, Kolo Road Main Replacement, and the Kukuiolono 0.5 MG Tank. A portion of these projects are expected to have the designs completed before fiscal year 2015-2016. The design for the Hanalei Well No. 2 is planned to be continued.

In addition, consultants were selected and fee negotiations were initiated for the Hanapepe Stream Crossing. The consultant selection process was started for the design of the Hanapepe-Eleele Connecting Pipeline, and Haena 0.2 MG Storage tank.

20 EngineeringProgramBudget2015-2016 Page 2 of 3

Page 104

FY FY FY PROGRAM MEASURES 2013-2014 2014-2015 2015-2016 (estimate) (estimate) (estimate) 1. Number of DOW Projects (in design only) 24 22 22

Approximate Design Cost: $8,000,000 $9,000,000 $6,000,000

2. Private Developer Water Projects (design only) 82 72 50

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Page 105 General Expenses - Engineering

Approved Budget Proposed Budget Account Description FY 2014-2015 FY 2015-2016 Water Utility Fund - Operating Expenses $ 374,950 $ 674,626 10-20-10-540-010 WU/Eng/Admin/Professional Services $ 368,000 $ 668,006 10-20-10-563-000 WU/Eng/Admin/Operating Supplies $ 1,150 $ 1,080 WU/Eng/Admin/Books, Publications, Subscriptions, and 10-20-10-570-010 $ 100 $ 200 Memberships 10-20-10-571-010 WU/Eng/Admin/Training and Development $ 1,200 $ 1,130 10-20-10-572-010 WU/Eng/Admin/Travel and Per Diem $ 4,000 $ 3,760 10-20-10-573-010 WU/Eng/Admin/Meeting Expense $ 500 $ 450 Water Utility Fund - Capital Projects $ 926,001 $ 776,007 WU/Eng/AdminCapital Outlay - Rehablitation and 10-20-10-604-000 $ 926,001 $ 776,007 Replacement/Capital Purchases

10-20-00-605-000 $ - $ - WU/Eng/Admin/Capital Outlay - Expansion/Capital Purchases FRC Fund - Capital Projects $ 1,599,003 $ 1,144,016

20-20-00-605-000 $ 1,599,003 $ 1,144,016 FRC/Eng/Admin/Capital Outlay - Expansion/Capital Purchases BAB Fund - Capital Projects $ 165,000 $ 50,001

30-20-00-605-000 $ 165,000 $ 50,001 BAB/Eng/Admin/Capital Outlay - Expansion/Capital Purchases

SUMMARY OF OPERATING EXPENSES $ 374,950 $ 674,626 SUMMARY OF CAPITAL PURCHASES SUMMARY OF CAPITAL PROJECTS: Water Utility Fund $ 926,001 $ 776,007 FRC Fund $ 1,599,003 $ 1,144,016 BAB Fund $ 165,000 $ 50,001 OPERATING EXPENSES PLUS CAPITAL OUTLAY $ 3,064,954 $ 2,644,650

FY 2015 - 2016 Eng Expenses (Keith) 20-Engineering Final 5/14/2015 1 of 10 Page 106 General Expenses - Engineering

TOTAL: WU/Eng/Admin/Professional Services $368,000 $668,006 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Title searches No title searches, as needed $8,000 $8,000 Site assessment for hazardous materials, demolition of tank; this is a precondition of the land Kukuiolono Tank Site exchange No $50,000 $50,000 swap needed for ongoing capital project to design a new tank PER, site location, hydraulic analysis, No Construct Haena 0.2 MG Storage Tank $90,000 $90,000 feasibility, EA Preliminary Engineering Report, EA No Hanapepe-Eleele Connecting Pipeline $100,000 $100,000 Preliminary Engineering Report, EA Yes Drill and Develop Kilauea Well #3 $70,000 Preliminary Engineering Report Yes Rehabilitate Puupilo Steel Tank $60,000 Preliminary Engineering Report Yes Kuhio Highway (Hardy to Oxford) Main Replacement $60,000 Preliminary Engineering Report Yes Moloaa System Study $40,000 Preliminary Engineering Report Rehabiltate Jelly Factory BP station (3-250 gpm) $60,000 Preliminary Engineering Report Yes hanapepe stream crossing * $0 PER, Soil investigation, EA Yes UH Experiment Station Tank $130,000 PER, site location, hydraulic analysis, No Poipu Tank 1.0 MG tank $60,000 $1 feasibility, EA PER; site location, hydraulic analysis, No Wailua Homesteads 538 1.0 MG Tank $60,000 $1 feasibility, EA Preliminary Engineering Report Yes Island wide study for suitable well sites $1 Preliminary Engineering Report, EA Yes PLH-36 SWTP expansion $1 Preliminary Engineering Report, EA Yes Makanui and Kuai Road Main Replacement $1 Preliminary Engineering Report, EA Yes Hoona, Hoone, Pane Road Main Replacement $1

*hanapepe stream crossing was eliminated and replaced with the Jelly Factory BP station rehab.

FY 2015 - 2016 10-20-10-540-010 20-Engineering Final 5/14/2015 2 of 10 Page 107 General Expenses - Engineering

TOTAL: WU/Eng/Admin/Operating Supplies $1,150 $1,080 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

furniture and misc supplies (eng & safety No furniture- if able to fill vacant positions will need more furniture $1,000 $1,000

misc supplies No general misc. items $150 $80

STOP -- Correct Sum at top if there are more than 40 line items

FY 2015 - 2016 10-20-10-563-000 20-Engineering Final 5/14/2015 3 of 10 Page 108 General Expenses - Engineering

TOTAL: WU/Eng/Admin/Books, Publications, Subscriptions, and Memberships $100 $200 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? books/publications No General amount if a need is determined during the fiscal year. $100 $200

STOP -- Correct Sum at top if there are more than 40 line items

FY 2015 - 2016 10-20-10-570-010 20-Engineering Final 5/14/2015 4 of 10 Page 109 General Expenses - Engineering

TOTAL: WU/Eng/Admin/Training and Development $1,200 $1,130 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

Misc training costs No various training opportunites come up during the year that have costs associated with them. $1,200 $1,130

STOP -- Correct Sum at top if there are more than 40 line items

FY 2015 - 2016 10-20-10-571-010 20-Engineering Final 5/14/2015 5 of 10 Page 110 General Expenses - Engineering

TOTAL: WU/Eng/Admin/Travel and Per Diem $4,000 $3,760 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Conference Travel and Per Diem (Non No as needed; previously budgeted by Admin $4,000 $3,760 AWWA/HWWA)

STOP -- Correct Sum at top if there are more than 40 line items

FY 2015 - 2016 10-20-10-572-010 20-Engineering Final 5/14/2015 6 of 10 Page 111 General Expenses - Engineering

TOTAL: WU/Eng/Admin/Meeting Expense $500 $450 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Meeting supplies No was previously budgeted by Admin $500 $450

STOP -- Correct Sum at top if there are more than 40 line items

FY 2015 - 2016 10-20-10-573-010 20-Engineering Final 5/14/2015 7 of 10 Page 112 General Expenses - Engineering

TOTAL: WU/Eng/AdminCapital Outlay - Rehablitation and Replacement/Capital Purchases $926,001 $776,007 New Line Item Notes ANTICIPATED NTP FY 2014- 2015 FY 2015 - 2016 Request? 10-20-00-604-001 No KW-07 Paua Valley Tank Repair Jan-16 $ 150,000 $ 150,000 10-20-00-604-005 No Install gate valves- hydrant laterals along Poipu Road Sep-15 $ 50,000 $ 50,000 10-20-00-604-006 No PLH-28 Hanamaulu Main Replacement (Hoohana Street) $ 51,000 $ 1 10-20-00-604-007 No WK-11a Upper Wailua Houselots Main Replacement $ 250,000 $ 1 10-20-00-604-009 No Hanapepe Stream Crossing, design phase $ 225,000 $ - 10-20-00-604-011 No Rehabilitiate Jelly Factory BP station (3-250 gpm) Jul-15 $ 200,000 $ 200,000 10-20-00-604-013 No PLH-32 Rice Street/Kapule Intersection Improvements $ 1 $ 1 10-20-00-604-xxx Yes Rehabilitate Puupilo Steel tank Nov-15 $ 250,000 10-20-00-604-xxx Yes Kuhio Hwy (Hardy-Oxford) 16" Main replacement (R&R 56% of $100K) Feb-16 $ 84,000 10-20-00-604-xxx Yes Kilauea 1.0 MG tank (RR 10%) NTP issued* $ 15,000 10-20-00-604-xxx Yes Anini waterline ph b (RR 21%) NTP issued** $ - 10-20-00-604-xxx Yes Hanapepe-Eleele Connecting Pipeline HE-1 and HE-10 (RR 12%) Jul-15 $ 27,000 10-20-00-604-xxx Yes Kuhio Hwy (N. Papaloa to Waikaea Canal) Main Replacement (RR 56%) $ 1 10-20-00-604-xxx Yes Makanui and Kuai Road Main Replacement (RR 37%) $ 1 10-20-00-604-xxx Yes Wailani Road and Waihohonou Road main replacement (RR 28%) $ 1 10-20-00-604-xxx Yes Hoona, Hoone, Pane Road main replacement (RR 37%) $ 1

* Estimated additional funds required for proposed design change. ** Requred funding approved by board at April 23, 2015 board meeting

FY 2015 - 2016 10-20-00-604-000 20-Engineering Final 5/14/2015 8 of 10 Page 113 General Expenses - Engineering

TOTAL: FRC/Eng/Admin/Capital Outlay - Expansion/Capital Purchases ANTICIPATED NTP $1,599,003 $1,144,016 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? 20-20-00-605-006 PLH-28 Hanamaulu main replacement $ 99,000 $ 1 20-20-00-605-010 Wailua Homesteads 538 1.0 MG Storage Tank $ 500,000 $ 1 20-20-00-605-012 Hanapepe-Eleele Connecting Pipeline $ 1 20-20-00-605-014 Purchase Water System 1 $ 1 $ 1 20-20-00-605-015 Purchase Water System 2 $ 1 $ 1 20-20-00-605-016 Poipu 1 MG Storage Tank $ 500,000 $ 1 20-20-00-605-017 18" Cane Haul Road Main FY 2016 $ 90,000 $ 90,000 20-20-00-605-018 Hanalei Well no, 2 NTP issued* $ 60,000 $ 75,000 20-20-00-605-019 Kapaia SWTP expansion $ 350,000 $ 1 20-20-00-605-xxx Kuhio Hwy (Hardy-Oxford) 16" Main replacement (EXP 44% of $150K) Feb-16 $ 66,000 20-20-00-605-xxx Kilauea 1.0 MG tank (EXP 90%) NTP issued* $ 135,000 20-20-00-605-xxx Wainiha Well #4 (EXP) NTP issued* $ 80,000 20-20-00-605-xxx Anini waterline ph b (EXP 79%) NTP issued** $ - 20-20-00-605-012 Hanapepe-Eleele Connecting Pipeline HE-1 and HE-10 (EXP 88%) Jul-15 $ 198,000 20-20-00-605-xxx land acquisition for Kilauea Well #3 $ 1 20-20-00-605-xxx land aqcuisition for jelly factory booster pump $ 1 20-20-00-605-xxx land aqcuisition for Wailua Homesteads tank $ 1 20-20-00-605-xxx land aqcuisition for Poipu tank $ 1 20-20-00-605-xxx land acquisition for Haena 0.2 MG tank $ 1 20-20-00-605-xxx land acquisition for SWTP expansion $ 1 20-20-00-605-xxx Haena 0.2 MG tank (EXP) Aug-15 $ 200,000 20-20-00-605-xxx Drill and Test Kilauea Well #3 (EXP) NTP issued*** $ 300,000 20-20-00-605-xxx Kuhio Hwy (N. Papaloa to Waikaea Canal) Main Replacement (EXP 44%) $ 1 20-20-00-605-xxx Makanui and Kuai Road Main Replacement (EXP 63%) $ 1 20-20-00-605-xxx Wailani Road and Waihohonou Road main replacement (EXP 72%) $ 1 20-20-00-605-xxx Hoona, Hoone, Pane Road main replacement (EXP 63%) $ 1

*Estimated additional funds required for proposed design change. ** Required funding approved by board at the April 23, 2015 board meeting. land acquisition for Kilauea Well #3, land aqcuisition for jelly factory booster pump,land acquisition for Haena 0.2 MG tank; funding will be requested when needed. *** New site requested - requires new design.

FY 2015 - 2016 FRC 20-20-00-605-000 20-Engineering Final 5/14/2015 9 of 10 Page 114 General Expenses - Engineering

TOTAL: BAB/Eng/Admin/Capital Outlay - Expansion/Capital Purchases ANTICIPATED NTP $165,000 $50,001 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

30-20-00-605-139 No Moloaa Tank site acquisition $ 115,000 $ 1 30-20-00-605-140 No Koloa Well F land acquisition $ 50,000 $ 50,000

Moloaa Tank site acquisition - funding will be requested when needed.

FY 2015 - 2016 BAB 30-20-00-605-000 20-Engineering Final 5/14/2015 10 of 10 Page 115 Construction Management Division

Program Budget - FY 2015- 2016

Construction Management Division:

The former Engineering Division which was comprised of the Special Projects Division and the Design and Construction Division was reorganized into the Construction Management and Engineering Division in August 2012. The Construction Management Division which is the former Special Project Division was responsible for the design, construction and inspection of water projects such as reservoirs, pumping facilities and pipelines by planning, contracting for design and conducting design review, preparing construction bid documents and subsequent construction management, and inspecting water system improvements funded by the Department as outlined in Water Plan 2020. The Design and Construction Division was responsible for the design review and construction inspection of water facilities by private parties for dedication to the Department. The former Engineering division was also responsible for the administration of the Department’s laboratory and performing the water quality monitoring for our water systems.

The current Construction Management Division oversees the construction management and inspection of water projects such as reservoirs, pumping and treatment facilities, and pipelines by reviewing designs for constructability, preparing construction RFP documents, subsequent construction management, and inspecting water system improvements funded by the Department and those funded by private parties for dedication to the Department. The Construction Management Division also continues to oversee Department funded design contracts such as the DOW Baseyard Facility Renovations.

There were seven (7) permanent positions for the Construction Management Division for FY 2013 – 2014. Of the seven positions, three positions are within the Project Management Series and four positions are within the Inspector Series. There are (2) two vacancies remaining in Project Management and (1) one in the Inspection section. These vacant positions are being reclassified with DPS (newly formed HR Department). In early February 2015, HR approved the SR 22 Project Manager Position as submitted by DOW but the proposed SR-26 Principal Waterworks Project Manager position was not approved while the Waterworks Inspector Supervisor was approved as an SR-23 while proposed as an SR-24. The DOW intends to utilize the administrative review process for the SR-26 and SR-24 creations if necessary which will have an effect on the FY 15-16 budget. The FY 15-16 budget as well as the previous fiscal year approved budgets accounted for the SR-26 and SR-24 ratings. The Division is also in need of a Construction Management clerk with the Engineering Program Assistant contract having expired in 2013. This is a position that the CM Division

21 Construction Management Program Budget 2015-2016 Page 1 of 4

Page 116 head would like to create in the future when possible to accommodate the current workload and future Project Management Software document management requirements. The DOW Construction Management division has had an extremely difficult time attracting and retaining qualified staff and continues to implement a plan to deal with the problem. Project Managers are difficult to attract and retain in the same sense as engineers since it is nearly the same requirement. The FY 2015-2016 budget requests reflect the efforts of the Construction Management Project Officer to lead a successful division. It will be vital that the Department have support in this process to attract and recruit staff in a timely manner.

Program Description:

The Construction Management Division administers all of the construction for Capital Improvement Projects (CIP) and Capital Rehabilitation and Replacement Projects (CRP/CRPL) and provides engineering and inspectional services to the Operations Division during emergencies.

The Construction Management Division administers construction contracts; evaluates the constructability of pipeline alignments and sites for water facilities; prepares plans and specifications and bid/RFP documents for new water facilities and implements and inspects Department’s standards and policies. The Division performs all necessary construction plan review and construction inspection for Water Plan 2020 projects.

The Construction Management Division provides construction management to private developers who design and build water system improvements that will be dedicated to the County by performing construction inspection and reviewing and approving post- construction documents for water facilities that are being dedicated to the County.

Program Objectives:

1. Improve the water facilities infrastructure by constructing new well sources, storage tanks and waterlines through its Water Plan 2020 CIP Program as assigned.

2. Maintain and upgrade existing water facilities through the Water Plan 2020 CRP/CRPL Program as assigned.

3. Coordinate construction and integration of privately constructed water system improvements, as assigned, that are dedicated into the Department's system.

4. Provide construction management and inspectional services to ensure the assigned construction of water facilities adhere to plans

21 Construction Management Program Budget 2015-2016 Page 2 of 4

Page 117 and specifications and the standards and policies of the Department.

5. Provide engineering design review for all Water Plan 2020 Projects.

Program Highlights:

1. The Construction Management Division revised the template and successfully awarded “construction only” contracts via the Request for Proposal Process.

2. During fiscal year 2014-2015, the Construction Management Division initiated the design and construction of several major capital improvements and rehabilitation projects as part of our overall effort to address capacity deficiencies and aging infrastructure issues in our water systems.

Final inspection was issued for the Maka Ridge and Princeville Interconnection Renovations

After CM Division completed the design of the new administration building and secured funding which included a $2M grant from the Department of Health, construction began in January 2015 and continues on the Lihue Baseyard Improvements for the Department of Water.

The Department funded Design and Construction Contracts managed by the Construction Management Division totaled approximately $14 million in FY 14-15.

The Construction Management Division selected contractor via Request for Proposal process and awarded construction on the DOW Baseyard Improvements. There may be a few new projects that are advertised for construction within FY 14-15. To date the Request for Proposal process has been a success and all future construction projects are intended to be procured by this method and not necessarily the lowest offeror will be chosen for construction. Further, based on current CM Division design reviews, it is anticipated that several water plan 2020 projects will be ready for construction in FY 15-16.

3. The Construction Management Division managed and inspected construction of various private developer water projects. There were several major subdivision projects that occurred while less time being spent on individual laterals. The private sector development has increased since last fiscal year with the completion of projects in Kukuiula (Ala Kukuiula Phase 2A and Large Lot 32), Anahola DHHL subdivision, Eleele Habitat for Humanity, Hokulei Village, Kapaa Longs, Rice Camp

21 Construction Management Program Budget 2015-2016 Page 3 of 4

Page 118 Senior Housing complex and others. Private projects are in design and are expected to increase during the next fiscal year in Kukuiula and Grove Farm Properties.

4. In addition to various County wide trainings, the Construction Management Division staff completed various trainings throughout the fiscal year to stay updated, evolve and progress with the ever changing requirements related to water utility construction such as:

 National Pollutant Discharge Elimination System (NPDES) workshop by all staff  Trench Excavation workshop by all staff  Construction Best Management Practices workshop by all staff.  Construction Management Division Head created a Water System Standards training process which all staff completed the final sections in December 2014.

6. After a successful pilot implementation of the electronic inspection journal process, the Construction Management Division fully integrated electronic journaling to all projects currently managed. All Water Plan 2020 and private construction projects are now documented electronically and available via the SharePoint CM Portal created by DOW IT Division. The Construction Management Division continues to evolve with the paperless process and has started the transition to a more comprehensive construction management software in the coming year to include contract management, funding, procurement, and other aspects of project management (Design and Construction) with the IT strategic plan that is based on this initial electronic implementation. The DOW IT Division has been working the CM Division to select a software provider with major implementation happening in FY 15-16. In the near future, it would be beneficial to create a Construction Clerk position as stated above to maintain the software document uploads if current staff is insufficient as being current with project information is critical for project management.

21 Construction Management Program Budget 2015-2016 Page 4 of 4

Page 119 General Expenses - Construction Management Approved Budget Proposed Budget Account Description for FY14-15 FY 2015-2016 Water Utility Fund - Operating Expenses 10-21-10-540-010 WU/Const/Admin/Professional Services - General $ 50,000 $ 290,000 10-21-10-563-000 WU/Const/Admin/Operating Supplies $ 2,000 $ 2,500 10-21-10-570-010 WU/Const/Admin/Books, Publications, Subscriptions, and Memberships $ 2,775 $ 2,850 10-21-10-571-010 WU/Const/Admin/Training and Development $ 1,700 $ 2,500 10-21-10-572-010 WU/Const/Admin/Travel and Per Diem $ 8,000 $ 8,000 10-21-10-573-010 WU/Const/Admin/Meeting Expense $ 7,000 $ 6,000 SUMMARY OF OPERATING EXPENSES $71,475 $311,850

10-21-10-604-999 $ - $ 10,000 WU/Const/Admin/Capital Outlay - Rehablitation and Replacement/Capital Purchases 10-21-10-605-999 WU/Const/Admin/Capital Outlay - Expansion/Capital Purchases $ - $ 10,000

SUMMARY OF CAPITAL PURCHASES $0 $20,000

10-21-10-604-000 WU/Capital Outlay - R&R/Capital Projects - CM $4,850,001 $2,950,001

20-21-00-605-000 FRC/Capital Outlay - Expansion/Capital Projects - CM $2,800,001 $1 30-21-00-604-000 BAB/Capital Outlay - R&R/Capital Projects - CM $11,140,108 $4,630,848 30-21-00-605-000 BAB/Capital Outlay - Expansion/Capital Projects - CM $11,077,100 $9,036,773 60-21-00-605-000 SRF/Capital Outlay - R&R/Capital Projects - CM $4,000,000 $2,000,000

OPERATING EXPENSES PLUS CAPITAL OUTLAY $ 33,938,685 $ 18,969,473

FY 2015 - 2016 budget CM Summary (Dustin) 21- CM division Final 5/15/2015 1 of 14 Page 120 General Expenses - Construction Management TOTAL: WU/Const/Admin/Professional Services - General $50,000 $290,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

No - 2 Years on Contract expired, need to re-procure. This is an AS-NEEDED contract we Recurring utilize should inspection help be needed. In the past we've used it for required night Construction Management $50,000 $290,000 every 2 work over an extended period of time to avoid losing staff to one project but there may years be other areas where the contract could be utilized.

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-540-010 21- CM division Final 5/15/2015 2 of 14 Page 121 General Expenses - Construction Management TOTAL: WU/Const/Admin/Operating Supplies $2,000 $2,500 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? No - Annual replacement of steel toe boots, hard hats, safety vests, ear protection, office Safety Equipment $1,000 $1,000 Recurring workstation ergonomics, etc. No - Field Equipment As Needed Field Equipment (e.g. misc tools) $1,000 $1,500 Recurring

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-563-000 21- CM division Final 5/15/2015 3 of 14 Page 122 General Expenses - Construction Management WU/Const/Admin/Books, Publications, Subscriptions, TOTAL: and Memberships $2,775 $2,850

New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? No - Annually purchase reference materials as needed such as ACI manuals, Project Reference Materials $2,000 $2,025 Recurring Management manuals/literature, etc. Contractors Association of Kauai No - We have been a member since 2012. This is an annual fee. $600 $650 (DOW - Dustin is representative) Recurring American Waterworks Association No - AWWA membership. $175 $175 (Dustin) Recurring

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-570-010 21- CM division Final 5/15/2015 4 of 14 Page 123 General Expenses - Construction Management TOTAL: WU/Const/Admin/Training and Development $1,700 $2,500 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? No - CM staff annually attend on-island NPDES and Trench Excavation workshops through CAK Workshops for CM Staff $1,200 $1,200 Recurring Contractors Assocication of Kauai. No - Annually attend on-island workshops through various agencies as they come up Misc. Workshops for CM Staff $500 $1,300 Recurring throughout year. This includes mindfullness training

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-571-010 21- CM division Final 5/15/2015 5 of 14 Page 124 General Expenses - Construction Management TOTAL: WU/Const/Admin/Travel and Per Diem $8,000 $8,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

Conference Travel and Per Diem No - Would like to send CM Staff to water related construction project $8,000 $8,000 (Non AWWA/HWWA) recurring management/inspection trainings off-island should beneficial conferences be available.

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-572-010 21- CM division Final 5/15/2015 6 of 14 Page 125 General Expenses - Construction Management TOTAL: WU/Const/Admin/Meeting Expense $7,000 $6,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Would like to send CM Staff to water related construction project Conference fees and registrations No - management/inspection trainings off-island should beneficial conferences or webinars $7,000 $6,000 (non AWWA/HWWA) recurring be available.

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-573-010 21- CM division Final 5/15/2015 7 of 14 Page 126 General Expenses - Construction Management WU/Const/Admin/Capital Outlay - Rehablitation and TOTAL: Replacement/Capital Purchases $0 $10,000

New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

Miscellaneous Yes Initial building permit fees, ground breakings, other related project start-up fees $10,000

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-604-999 21- CM division Final 5/15/2015 8 of 14 Page 127 General Expenses - Construction Management WU/Const/Admin/Capital Outlay - Expansion/Capital TOTAL: Purchases $0 $10,000

New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

Miscellaneous Yes Initial building permit fees, ground breakings, other related project start-up fees $0 $10,000

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-10-605-999 21- CM division Final 5/15/2015 9 of 14 Page 128 General Expenses - Construction Management TOTAL: WU/Capital Outlay - R&R/Capital Projects - CM $4,850,001 $2,950,001 New Anticipated Line Item Reques Notes FY 2014- 2015 FY 2015 - 2016 NTP t? 10-21-00-604-102 WU/Const/Capital Outlay/10-01 Ani-01b anini Rd. WL DOW -Princevl Jul-16 $1,000,000 $1,000,000 WU/Const/Capital Outlay/09-01, Yamada Tank, Clearwell and connecting 10-21-00-604-029 Mar-17 $2,200,000 $1 pipelines WU/Const/Capital Outlay/13-05, Kolo Road Main Replacement (Kilauea 10-21-00-604-032 Jul-15 $1,300,000 $1,300,000 School) 10-21-00-604-033 Yes WU/Const/Capital Outlay/13-07, Koloa Well D Repairs Jan-16 $1 $300,000 10-21-00-604-035 WU/Const/Capital Outlay/XX-YY, HE-14, Eleele Booster Rehab Nov-16 $350,000 $350,000

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 10-21-00-604-000 21- CM division Final 5/15/2015 10 of 14 Page 129 General Expenses - Construction Management

TOTAL: FRC/Capital Outlay - Expansion/Capital Projects - CM $2,800,001 $1

New Anticipated Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? NTP 20-21-00-605-017 FRC/Eng/Capital Outlay/18In Cane Haul Main $1 $0 FRC/Const/Capital Outlay/11-10, Yamada Tank, Clearwell & connexting PL 20-21-00-605-029 Mar-17 $2,800,000 $1 (Ex - 56% of $5M)

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 20-21-00-605-000 21- CM division Final 5/15/2015 11 of 14 Page 130 General Expenses - Construction Management TOTAL: BAB/Capital Outlay - R&R/Capital Projects - CM $11,140,108 $4,630,848 New Anticipated Line Item Request Notes FY 2014- 2015 FY 2015 - 2016 NTP ? Bond/Const/Capital Outlay/10-01, Ani-01a- Anini and Kalihiwai Road 6 Inch Main 30-21-00-604-101 $ 1 $ 1 (9,156 Ft) Bond/Const/Capital Outlay/10-01, Ani-01b- Pipline Replacement along Anini Road 30-21-00-604-102 Jul-16 $ 452,000 $ 452,000 from DOW - Princeville Master Meter (R&R- 44%) Bond/Const/Capital Outlay/XX-YY, KP-09 - MCC, Chlorination Facilities, Koloa Well 30-21-00-604-107 Feb-16 $ 1,400,000 $ 1,600,000 16-A and E and 16-B Site and Bldg Improvements (100%) Bond/Const/Capital Outlay/XX-YY, LO-08, LO-10 - Koloa Rd (Alaloke Pl. - Piko Rd) 8 30-21-00-604-109 Inch Main Replacement (1,700 Ft)Lawai 6 Inch and 8 Inch Main Replacement (6,400 Jul-16 $ 266,000 $ 563,847 Ft) (R&R - 19% of $1.4M) Bond/Const/Capital Outlay/11-02, PLH-01a - Replace Grove Farm Tanks 1 and 2 30-21-00-604-112 Jun-16 $ 800,000 $ 800,000 (R&R - 40% of $2M) Bond/Const/Capital Outlay/XX-YY, PLH-39a - Lihue Baseyard Improvements for 30-21-00-604-114 $ 7,007,107 $ - Department of Water Bond/Const/Capital Outlay/02-06, WKK-15 - Construct Kilauea 466 Tank, 1.0MG, 30-21-00-604-120 Jun-16 $ 250,000 $ 250,000 Puu Pane Well 3 (R&R - 10% of 2.5M) Bond/Const/Capital Outlay/11-10, 8"WL along Halewili Rd (Kaumualii Hwy to Haka 30-21-00-604-129 Sep-15 $ 800,000 $ 800,000 Hale St) (R&R - 100%) Bond/Const/Capital Outlay/XX-YY, H-05, Weke, Anae, and He'e Roads 6" and 8" 30-21-00-604-136 Aug-15 $ 165,000 $ 165,000 Main Replacement (R&R - 11% of $1.5M)

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 30-21-00-604-000 21- CM division Final 5/15/2015 12 of 14 Page 131 General Expenses - Construction Management TOTAL: BAB/Capital Outlay - Expansion/Capital Projects - CM $11,077,100 $9,036,773 New Anticipated Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? NTP Bond/Const/Capital Outlay/10-01, Ani-01b- Pipline Replacement along Anini Road 30-21-00-604-102 Jul-16 $ 1,848,000 $ 1,848,000 from DOW - Princeville Master Meter (Expansion - 56% of $3.3M) Bond/Const/Capital Outlay/03-04, K-05a - Kalaheo New Tank, 0.5 MG, 886 Ft 30-21-00-605-106 $ 1 $ 1 (Expansion - 50%) Bond/Const/Capital Outlay/XX-YY, LO-08, LO-10 - Koloa Rd (Alaloke Pl. - Piko Rd) 8 30-21-00-604-109 Inch Main Replacement (1,700 Ft)Lawai 6 Inch and 8 Inch Main Replacement (6,400 Jul-16 $ 1,134,000 $ 2,403,770 Ft) (Expansion - 81%) Bond/Const/Capital Outlay/WK-08-Kapaa Homestead 313' 1.0 MG Tank (Ornellas) 30-21-00-605-110 $ 2,810,099 $ 1 (100%) Bond/Const/Capital Outlay/11-02, PLH-01a - Replace Grove Farm Tanks 1 and 2 30-21-00-604-112 Jun-16 $ 1,200,000 $ 1,200,000 (Expansion - 60%) 30-21-00-605-118 Bond/Const/Capital Outlay/WK-39-Kapaa Homestead Well No. 4 (100%) Feb-17 $ 500,000 $ 1 Bond/Const/Capital Outlay/02-06, WKK-15 - Construct Kilauea 466 Tank, 1.0MG, 30-21-00-605-120 Jun-16 $ 2,250,000 $ 2,250,000 Puu Pane Well 3 (Expansion - 90%) Bond/Const/Capital Outlay/XX-YY, H-05, Weke, Anae, and He'e Roads 6" and 8" 30-21-00-604-136 Aug-15 $ 1,335,000 $ 1,335,000 Main Replacement (Expansion - 89%)

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 30-21-00-605-000 21- CM division Final 5/15/2015 13 of 14 Page 132 General Expenses - Construction Management TOTAL: SRF/Capital Outlay - R&R/Capital Projects - CM $4,000,000 $2,000,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? SRF/Const/Capital Outlay/XX-YY, PLH-39a - Lihue Baseyard Improvements for 60-21-00-604-114 $ 4,000,000 $ 2,000,000 Department of Water

STOP -- Correct Sum at top if there are more than 400 line items

FY 2015 - 2016 budget 60-21-00-604-000 21- CM division Final 5/15/2015 14 of 14 Page 133

WATER RESOURCES AND PLANNING DIVISION

Program Budget – FY 2015-2016

Program Description

The Water Resources and Planning Division is responsible for the review and planning of water systems of proposed developments to assure compatibility with the Department's water general plan. The program provides long-range planning and research and conducts analytical studies to meet the water needs of Kauai; maintains the engineering records; and provide mapping/drafting services for the Department.

Program Objectives:

1. To conduct the review and planning of water systems of proposed developments to assure compatibility with the Department's water general plan including the review of subdivision, zoning, land use and general plan amendments, building permit and water service requests. 2. To conduct investigations to obtain and analyze data to determine capabilities of existing water sources. 3. To conduct long-range planning and research and make analytical studies of water consumption and maximum demand to meet the water needs of Kauai. 4. To determine hydraulic criteria for reservoirs, pumping stations and water mains, and evaluate and develop water network requirements, 5. Prepare population projections and estimates for future water use. 6. Conduct investigation for the development of potential sources. 7. Conduct and/or administer studies relating to the protection of water sheds and water resources. 8. Maintain maps and records of all water facilities.

22 WRPProgramBudgetFY2015-2016 Page 1 of 4

Page 134 Program Highlights

For fiscal year 2014-2015 the division reviewed and processed applications for subdivisions zoning, use permits, additional dwellings (ADUs), building permits and requests for water services. During FY14-15 the division assisted the consultant in the preparation and review of water master plans for several large developments located in east , south and west Kaua‘i. The division assisted the Public Relations section with incidents that occurred, public questions and other things, as necessary. The division assisted with the Department’s Project WET program which included teacher education activities and the Department’s annual Make A Splash Festival that invites students and teachers to the all-day event to learn about water through fun, hands-on activities.

The division administers the Department’s security program. The division participated in the preparation of the on-going Department Needs Assessment and Facilities Reserve Charge study. The division is assisting the Department in the preparation of amendments to the Rules & Regulations to address proposed changes in the Facilities Reserve Charge and water service and subdivision approval process. The division continued to assist other divisions regarding CIP implementation of Water Plan 2020 Projects. The Division assisted in the lobbying efforts for funds for the Department’s “Capital Improvement Projects (CIP), Request for State Aid 2015 Legislative Session” with Kauai State Legislators. The division also coordinated and assisted the USGS with various joint funded projects that included ground water data collection for Lihue, Kauai. The division continued to administer the two-year University of Hawaii “Projecting Future Rainfall Variations for Kauai” study that was started during FY 11-12.

The division started the process to update the Department hydraulic system models. Digital scanning of maps and other records onto the Department’s intranet computer system was conducted by WR/P staff.

The Kauai Water Use and Development Plan Update was assigned to the division. The contract start was issued in FY 11-12. Division continued to administer the project during FY 14-15.

The division developed several Standard Operating Procedures and policies regarding water meter restrictions, additional dwelling unit meter installation, private well water system development, boundary adjustment and fire protection issues.

During FY 14-15, the division participated in outside programs that included the Kauai Watershed Alliance, the Kauai Energy Utility Council, the Kauai Drought Committee and several community watershed councils. The division administered the Department of Water Grant to the Kauai Watershed Alliance through its coordinator, The Nature Conservancy during FY14-15. The division participated in the County Planning Department’s Kauai General Plan, Lihue community Plan, East Kauai Community Plan and South Kauai Community Plan. The division assisted in conducting various briefings and presentations to the Kaua‘i County Council, and other public groups. The division continues to participate on the implementation of new County “ePlan” building permit application 22 WRPProgramBudgetFY2015-2016 Page 2 of 4

Page 135 program (paperless review) and will be working with the County Information Technology division and the Building Division during the implementation phase.

The division represents the Department at the County’s Affordable Housing Task Force (AHTF) meetings that are conducted on a monthly basis or as necessary. The AHTF continues to facilitate the development and approval of the affordable housing projects on the island.

During FY14-15 the division continued to expand the Department’s cross connection and backflow prevention program. The division continues to review and approve backflow device plans and conducts the annual field testing program.

The filling of the vacated Chief of Water Resources and Planning position is a primary division objective during FY 15-16.

22 WRPProgramBudgetFY2015-2016 Page 3 of 4

Page 136 FY 2013- FY 2014- FY 2015- PROGRAM MEASURES 2014 2015 2016 (actual) (estimate) (estimated) 1. Processed subdivision applications, zoning/use permits, land use/general 110 85 85 plan amendment, ADU clearance applications 2. Processed water service inquires, meter requests 351 250 250

3. Processed building permits 939 965 965 4. Reviewed Backflow Device Plans 56 40 40 5. Back Flow Inspection Program – No. of Devices 1480 1545 1545 6. Hydraulic Model Update Project on-going on-going on-going 7. Water system study - UH Rainfall Study on-going on-going on-going 8. USGS Groundwater Monitoring Program on-going on-going on-going

9. Kauai Water Use and Development Plan Update on-going on-going on-going

Summary Notes: Annual Operating and Capital Improvement Budget, Fiscal Year 2015-2016, Water Resources and Planning

22 WRPProgramBudgetFY2015-2016 Page 4 of 4

Page 137 Approved Budget Proposed Budget Account Description FY 2014-2015 FY 2015-2016 Water Utility Fund 780,000 $599,050 10-22-10-540-010 WU/Plan/Admin/Professional Services $775,000 $585,000 10-22-10-563-000 WU/Plan/Admin/Operating Supplies $3,500 $3,250 10-22-10-570-010 WU/Plan/Admin/Books, Publications, Subscriptions, and Memberships $0 $0 10-22-10-571-010 WU/Plan/Admin/Training and Development $1,500 $10,800 WU/Plan/Capital Outlay - Rehablitation and 10-22-00-604-999 $0 $0 Replacement/Capital Purchases

10-22-00-605-999 $0 $0 WU/Plan/Capital Outlay - Expansion/Capital Purchases

FY 2015- 2016 budget (22) WRP 22- WRP division Final 5/14/2015 1 of 5 Page 138 TOTAL: WU/Plan/Admin/Professional Services $775,000 $585,000 Line Item New Request? Notes FY 2014 - 2015 FY 2015-2016 Kauai Watershed Alliance No Renewal of Annual Request $150,000 $150,000 Renewal - Joint Funding Agreement (KDOW - USGS) Ground- USGS Ground Monitoring Program No $45,000 $45,000 Monitoring Program Job WRP 01, Contract 535, Contract Amount: $514,000.00 Water Use and Development Plan Update No $0 $0 (Encumbured) Hydraulic Model Update No Updating and Calibrating the existing hydraulic model $500,000 $300,000 Rate Study No to complete existing FRC study $40,000 $40,000 Stream Flow yes KDOW- USGS stream flow study $50,000 FRC list & location map meter update (supplemental) $40,000

FY 2015- 2016 budget 10-22-10-540-010 22- WRP division Final 5/14/2015 2 of 5 Page 139 TOTAL: WU/Plan/Admin/Operating Supplies $3,500 $3,250 Line Item New Request? Notes FY 2014 - 2015 FY 2015-2016 For E-plan Review (Building Permits), AutoCad, WaterGems-Hydraulic Model, Dual Monitors No $3,500 $0 Reports Fire Hydrant Testing Kit Yes Perform Fire Hydrant Flow Testing; Used to Calibrate Hydraulic Model $3,000

Work equipment (shoes, traffic cones, etc.) Yes Used for Safety of Personnel out in the field $250

FY 2015- 2016 budget 10-22-10-563-000 22- WRP division Final 5/14/2015 3 of 5 Page 140 WU/Plan/Admin/Books, Publications, Subscriptions, and TOTAL: Memberships $0 $0 Line Item New Request? Notes FY 2014 - 2015 FY 2015-2016

FY 2015- 2016 budget 10-22-10-570-010 22- WRP division Final 5/14/2015 4 of 5 Page 141 TOTAL: WU/Plan/Admin/Training and Development $1,500 $10,800 Line Item New Request? Notes FY 2014 - 2015 FY 2015-2016 Bentley LEARN Passport Renewal No Hydraulic Model (Bentley-WaterGEMS) Training Subscription $1,500 $3,000 GIS, AutoCAD, Microsoft, FH Testing (needed for Hydraulic Modeling Update), travel (workshop, Miscellaneous Trainings Yes $7,800 conferences, etc.)

FY 2015- 2016 budget 10-22-10-571-010 22- WRP division Final 5/14/2015 5 of 5 Page 142 PROGRAM BUDGET – FY 2015-2016

Program Description

The Fiscal Division is involved in planning and directing the financial activities of the Department of Water and is responsible for administering the fiscal programs and customer activities of the Department including but not limited to: cash management, cost accounting, payroll, leave records, accounts payable, utility plant accounting, meter reading, consumer billing and accounting and; preparation of financial and statistical reports; conduct internal audits and financial and statistical studies of the Department for reports and rate making; prepare the financial statements for yearly audit and assists the Manager in the development of the annual budget.

Program Objectives:

Administration

1. To preserve the financial integrity of the Department through internal control and annual financial audits. 2. To oversee all fiscal activities, fiscal recording and reporting, the preparation of the financial statements and annual budgets. 3. To develop accounting policies and standard operating procedures. 4. To supervise accounting and billing staff, and monitor proper implementation of generally accepted accounting principles. 5. To generate a return of investments and to insure deposits with financial institutions are fully collateralized. 6. To manage the department’s budget and ensuring the availability of funds to meet cash flow requirements.

Accounting

1. To provide accurate, complete, and timely recording and reporting of the financial transactions and activities of the Department. 2. To process the Department’s payroll in a timely manner. 3. To process accounts payable and issue payments in a timely and efficient manner. 4. To ensure accountability of the Utility Plant Assets and Property.

30 FiscalProgramBudget FYE2015-2016 Page 1 of 4 Page 143 Consumer Service

1. To provide timely billing, collection, accounting and depositing of water bills and jobbing invoices. 2. Process meter applications and new services. 3. Service customers through inquires on billing, payment and collection matters. 4. Maintain records of accounts receivable.

Program Highlights

FY 2014 FY 2015 FY 2016 Programs Measures (actual) (estimate) (estimate)

1. Annual Financial Audit Yes Yes Yes 2. Return on Investments .75% .60% .60% 3. Water billings (No. of bills issued) 230,836 232,140 235,200 4. New Meter applications 296 240 258 5. Accounts payable transaction 5,115 4500 4600 6. Payroll checks 1937 1937 1961 7. Payroll processed in work days 6 6 6

The Department has implemented the fourth of its four annual water rate increases on July 1, 2014. This FY 2015- 2016 ends the five (5) year water rate study conducted by a Professional Consultant. The current water rates will remain the same in FY 2015- 2016 as part of the rate study where there’s no scheduled water rate increase on the fifth year except for power cost adjustment which is assessed and adjusted every year based on the difference of “actual and budgeted” water consumption and power usage.

The water industry experienced a decline in water demand nationwide. The trend is expected to continue with the increased use of high efficiency and/or low flow water appliances. The campaigns for water conservation through consumer education, Project WET, Detect a Leak

30 FiscalProgramBudget FYE2015-2016 Page 2 of 4 Page 144 programs are some of the department sponsored programs that are gaining awareness and popularity. As a steward of our water customers’, we advocate these efforts because they are the right thing to do.

Because the declining water trend is likely to continue, we must consider the financial implications of reduced consumption. To address the situation, the Department is initiating another water rate study for the next five (5) years.

The Department continues to work on finalizing the ongoing Facilities Reserve Charge (FRC) Study. The FRC is intended to recover a proportional share of the cost of facilities necessary to provide water system capacity to new developments. The last update to the FRC rates was in 2004.

Accounting System;

 Accounting uses Great Plains Financial System to process and maintain the general ledger. The Department recently re-implemented the use of Great Plains by re-description of the existing chart of accounts and implementing a new program for “Requisitions” fully integrated with the existing “Purchase Order” system in Great Plains.  Monthly financial closing and financial reporting was enabled to allow timely reporting to the board. Manual worksheets and reporting was automated after Great Plains Financial Accounting System’s re-implementation.  A new budget format was introduced where each Division Head is now designated as budget managers of their own division’s budget. Each has access to an Encumbrance Report where they can monitor their year to date budget status.  Payroll is processed twice a month through the County’s AS 400 payroll system. We adhere to the County’s payroll deadline to meet their closing requirements.  The Department uses Maintenance Productivity Enhancement Tool (MPET) to process Operations’ timesheet for payroll. In addition, MPET is used to maintain Materials and Meters Inventory as well as keeping track of Work Orders for billable and non-billable charges.  Fiscal Reorganization to re-align some existing positions with current job descriptions was submitted and approved by the board; awaiting approval from the County’s Human Resources department.  Continues to recruit for vacant position; Accountant I in Accounting. This has been ongoing; the department made the selection two times and twice, the selectees declined.  The Department will be soliciting for Professional Consultants to conduct a new five (5) year water rate study.

30 FiscalProgramBudget FYE2015-2016 Page 3 of 4 Page 145 Consumer Service:

 DOW water bills are generated through the Honolulu Board of Water Supply (HBWS).  The use of CC&B now allows the department to bill monthly so meters are also read monthly. This created additional workload to billing section. Options are being considered such as below;  Request for lock box implementation was submitted to HBWS for their consideration.  E-bill presentment is an option available to customers that supports “GO Green” initiative.  The use of credit card as payments for water bills is on the table for consideration. Procurement process may start before the end of fiscal year 2015.  The Department will be soliciting Request for Proposals (RFP) for a new Customer Information System (CIS). Currently, the department’s billing and collection is processed through Honolulu Board of Water Supply (HBWS) Customer Care & Billing system.  Billing Re-organization was approved by County Human Resources with the addition of one (1) New Accountant Position to accommodate increased workload from the bi-monthly to monthly conversion and the implementation of a new Billing Standard Operating Procedure.  Continues to recruit for vacant position; Customer Service Representative I in Billing.

30 FiscalProgramBudget FYE2015-2016 Page 4 of 4 Page 146 General Expenses - Billing

Approved Budget Proposed Budget Account Description FY 2014-2015 FY 2015-2016 Water Utility Fund $ 654,511 $ 436,331 10-30-20-540-010 WU/Bill/Collection/Professional Services - General $ 30,001 $ 105,001 10-30-20-541-010 WU/Bill/Collection/Other Services $ 110,000 $ 30,000 10-30-20-541-020 WU/Bill/Collection/Billing Costs $ 495,360 $ 292,380 10-30-20-563-000 WU/Bill/Collection/Operating Supplies $ 3,000 $ 2,800 10-30-20-570-010 WU/Bill/Collection/Books, Publications, Subscriptions, and Memberships $ 500 $ 500 10-30-20-571-010 WU/Bill/Collection/Training and Development $ 15,650 $ 5,650

Capital Purchases $25,000 $1,100,000 10-30-00-604-999 WU/Bill/Collection/Capital Outlay - Rehabilitation and Replacement/Equipment $ 25,000 $ - 10-30-00-605-999 WU/Bill/Collection/Capital Outlay - Expansion $0 $ 1,100,000

SUMMARY OF OPERATING EXPENSES $ 654,511 $ 436,331 SUMMARY OF CAPITAL PURCHASES $ 25,000 $ 1,100,000 OPERATING EXPENSES PLUS CAPITAL OUTLAY $ 679,511 $ 1,536,331

FY 2015- 2016 budget General Expenses (Billing) 30- Fiscal - billing Final 5/14/2015 1 of 9 Page 147 General Expenses - Billing

TOTAL: WU/Bill/Collection/Professional Services - General $30,001 $105,001

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Feasibility study for alternative payment Yes Investigate costs and benefits of accepting credit card payments and other payment options $1 $1 options CC&B Support and Change Requests No Request for change (RFC) orders $30,000 $5,000 Project Management Yes New Billing Software $0 $100,000

In anticipation of the new CIS implementation project, a new line item for Project Management is hereby requested to allow DOW to engage additional support services if during the course of the project, the current staffing is not sufficiently covered to keep up with the current operations and the new demands from the project. Current staffing are functioning at the optimal level and we may need some support services to allow staff scheduling for training and testing times.

FY 2015- 2016 budget 10-30-20-540-010 30- Fiscal - billing Final 5/14/2015 2 of 9 Page 148 General Expenses - Billing

TOTAL: WU/Bill/Collection/Other Services $110,000 $30,000

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Armored Car Service No Deposit pick up from DOW to Bank institution $10,000 $10,000

CHANGE ORDER ALLOWANCE: TO Modify system to accommodate AMR upgrade, Billing Field Activity Billing System Enhancements No $100,000 $20,000 (F/A) Integration into MPET, Lockbox services, IVR, e-Bill services, and custom reports

As needed Change Order Requests: Field Activity Integration to MPET Work Order Lockbox Service Credit Card Payment Option IVR & E-bill services Custom Reports Contingency Printing - Miscellaneous forms $0 $0

FY 2015- 2016 budget 10-30-20-541-010 30- Fiscal - billing Final 5/14/2015 3 of 9 Page 149 General Expenses - Billing

TOTAL: WU/Bill/Collection/Billing Costs $495,360 $292,380

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? 37 cents per bill for processing and printing each bill (charged by HBWS) -- plus 2 cent contingency for Bill Processing Fees No $102,960 $97,680 possible increase. Assume 22,000 accounts Postage for Water Bills No 12 bills per year. Assume 22,000 accounts. Assume bulk rate per piece of 35 cents. $92,400 $92,400 Lock box service No PO Box rental $1,600 Lock box service Bank fees 30000 $20,000 Charges from Honolulu for billing system software hosting (annual software maintenance and prorated Billing System No $260,000 $70,700 implementation recovery) E-bill services $10,000 $10,000 Contingency No Contingency for Higher Postage Rates and Additional Mailing $0 $0

FY 2015- 2016 budget 10-30-20-541-020 30- Fiscal - billing Final 5/14/2015 4 of 9 Page 150 General Expenses - Billing

TOTAL: WU/Bill/Collection/Operating Supplies $3,000 $2,800

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Miscellaneous supplies No Binders, receipt paper, and other supplies not covered in the office supply budget $3,000 $2,800

FY 2015- 2016 budget 10-30-20-563-000 30- Fiscal - billing Final 5/14/2015 5 of 9 Page 151 General Expenses - Billing

WU/Bill/Collection/Books, Publications, Subscriptions, and TOTAL: Memberships $500 $500

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? GFOA Y Membership for one employee (to secure lower rates on conference fees) $500 $500

FY 2015- 2016 budget 10-30-20-570-010 30- Fiscal - billing Final 5/14/2015 6 of 9 Page 152 General Expenses - Billing

TOTAL: WU/Bill/Collection/Training and Development $15,650 $5,650

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Staff Miscellaneous Training Y HR Development Training and Training for New Personnel $15,000 $5,000 Mindfullness Training Yes 325 * 2 $650 $650

FY 2015- 2016 budget 10-30-20-571-010 30- Fiscal - billing Final 5/14/2015 7 of 9 Page 153 General Expenses - Billing

WU/Bill/Collection/Capital Outlay - Rehabilitation and TOTAL: Replacement/Equipment $25,000 $0

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? 2W pick up truck Yes Replace CK 1911 for Meter Reader. Year and mileage - 2006, 154,000 miles. $25,000 $0

FY 2015- 2016 budget 10-30-20-604-999 30- Fiscal - billing Final 5/14/2015 8 of 9 Page 154 General Expenses - Billing

TOTAL: WU/Bill/Collection/Capital Outlay - Expansion $0 $1,100,000

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? New Billing System Yes Implementation of a New Customer Information System (CIS) for Billing & Collection. $0 $1,100,000 Contingency $0

DOW is actively working on a new CIS procurement. The budget amount represents the staff's best estimate of the project's implemetation cost which includes hardware, software, data conversion, required software maintenance and installation, training, testing and other related services necessary for DOW to implement a go live CIS project. If the project cost is within the above budget amount as approved, DOW will proceed with the project. If it goes over the budget amount, DOW will come back to the Board for another recommendation.

FY 2015- 2016 budget 10-30-20-605-999 30- Fiscal - billing Final 5/14/2015 9 of 9 Page 155 General Expenses - Accounting

Approved Budget Proposed Budget Account Description FY 2014-2015 FY15-16 Water Utility Fund 10-31-10-540-010 WU/Acctg/Admin/Professional Services - General $171,000 $171,000 10-31-10-540-020 WU/Acctg/Admin/Accounting and Auditing $105,000 $100,000 10-31-10-541-010 WU/Acctg/Admin/Other Services - General $28,800 $28,800 10-31-10-562-000 WU/Acctg/Admin/Office Supplies $46,000 $45,000 10-31-10-563-000 WU/Acctg/Admin/Operating Supplies $10,000 $4,700 10-31-10-570-010 WU/Acctg/Admin/Books, Publications, Subscriptions, and Memberships $1,500 $1,410 10-31-10-571-010 WU/Acctg/Admin/Training and Development $2,975 $2,975 10-31-10-572-010 WU/Acctg/Admin/Travel & Per Diem $2,900 $6,050 10-31-10-573-010 WU/Acctg/Admin/Meeting Expense $600 $1,200

SUMMARY OF OPERATING EXPENSES $ 368,775 $ 361,135 SUMMARY OF CAPITAL PURCHASES $ - $ - OPERATING EXPENSES PLUS CAPITAL OUTLAY $ 368,775 $ 361,135

FY 2015 - 2016 budget Accounting (Tess) 31- Fiscal - accounting Final 5/14/2015 1 of 10 Page 156 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Professional Services - General $171,000 $171,000 Line Item New Request? Notes FY 2014-2015 FY 2015-2016 Bond Counsel No County's allocation to DOW. County makes all decisions regarding isssuing and refunding bonds. $15,000 $15,000 OPEB Valuation and other Actuarial OPEB - Other Post Employment Benefits - County's allocation to DOW. County makes all decisions regarding No $15,000 $15,000 Services procurement and use of these services.

Workers Comp Actuarial Valuation No County's allocation to DOW. County makes all decisions regarding procurement and use of these services. $6,000 $6,000

New Water Rate Study for FY 2017-2022 Yes Financial Planning & Rate analysis $135,000 $135,000

FY 2015 - 2016 budget 10-31-10-540-010 31- Fiscal - accounting Final 5/14/2015 2 of 10 Page 157 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Accounting and Auditing $105,000 $100,000 Line Item New Request? Notes FY 2014-2015 FY 2015-2016 Auditor No Annual financial audit. $85,000 $80,000 Consultant No. Consulting services as needed. $20,000 $20,000

FY 2015 - 2016 budget 10-31-10-540-020 31- Fiscal - accounting Final 5/14/2015 3 of 10 Page 158 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Other Services - General $28,800 $28,800 Line Item New Request? Notes FY 2014-2015 FY 2015-2016 Bank Service Fees No $2400 per month $28,800 $28,800 Contingency Yes Printing - Miscellaneous forms $0 $0

FY 2015 - 2016 budget 10-31-10-541-010 31- Fiscal - accounting Final 5/14/2015 4 of 10 Page 159 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Other Services - General $46,000 $45,000 Line Item New Request? Notes FY 2014-2015 FY 2015-2016

Copy Paper No $9,000 $9,000

Office Supplies No Pens, Pencils, Writing Pads, Binders, Storage Boxes, Folders, Note Pads, Etc $16,000 $16,000

Freight (Office Supplies) No $1,000 $1,000

Miscellaneous Forms No Letterheads, envelopes, booklet covers $4,000 $4,000

Janitorial Supplies No $6,000 $6,000

Zee Medical Front Office $5,000

Office and Desk Accessories No $10,000 $4,000

FY 2015 - 2016 budget 10-31-10-562-000 31- Fiscal - accounting Final 5/14/2015 5 of 10 Page 160 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Operating Supplies $10,000 $4,700 Line Item New Request? Notes FY 2014-2015 FY 2015-2016 Miscellaneous supplies No Binders and other specialty items not included in the Admin office supply budget $5,000 $4,700 New Desk & accessories No New Office Desk and accessories ( Procurement specialist) $5,000 $0

FY 2015 - 2016 budget 10-31-10-563-000 31- Fiscal - accounting Final 5/14/2015 6 of 10 Page 161 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Books, Publications, Subscriptions, and Memberships $1,500 $1,410

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? GFOA No Membership for controller plus one other (to secure lower rates on conference fees) $1,000 $1,000 Subscriptions No GFOA subscriptions $500 $410

FY 2015 - 2016 budget 10-31-10-570-010 31- Fiscal - accounting Final 5/14/2015 7 of 10 Page 162 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Training and Development $2,975 $2,975 Line Item New Request? Notes FY 2014-2015 FY 2015-2016 Trainings Y Miscellaneous trainings for staff $2,000 $2,000 Mindfullness Training Yes 325 * 3 $975 $975

FY 2015 - 2016 budget 10-31-10-571-010 31- Fiscal - accounting Final 5/14/2015 8 of 10 Page 163 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Travel & Per Diem $2,900 $6,050 Line Item New Request? Notes FY 2014-2015 FY 2015-2016 Travel & Per Diem NO GFOA annual conference (split from Training & Development) $2,900 $4,850 Airfare ($1,200 *2) $ 2,400 Per Diem ($145*5 x 2) $1,450 Hotel ( $ 200 8 5) $1,000 Interisland meetings Interisland travels (240 * 5) $1,200

FY 2015 - 2016 budget 10-31-10-572-010 31- Fiscal - accounting Final 5/14/2015 9 of 10 Page 164 General Expenses - Accounting

TOTAL: WU/Acctg/Admin/Meeting Expense $600 $1,200 Line Item New Request? Notes FY 2014-2015 FY 2015-2016 GFOA Conference No GFOA registration $600 $1,200 GFOA sponsored trainings and conferences to keep up to date with new GASB statements

FY 2015 - 2016 budget 10-31-10-573-010 31- Fiscal - accounting Final 5/14/2015 10 of 10 Page 165 Approved Budget Proposed Budget Account Description 2014-2015 FY 2015-2016 Water Utility Fund 21,956,303 27,232,346 10-01-10-530-060 WU/Admin/Admin/Post-Employment Benefits (OPEB) $884,000 $914,000 10-00-00-547-000 WU/Acctg/Admin/County Service Charge $1,989,642 $1,989,642 10-00-90-580-000 WU/Depreciation/Depreciation** $0 $7,323,987 10-00-90-581-000 WU/Depreciation/Amortization** $0 $0 10-00-00-582-000 WU/Interest Expense $4,075,280 $4,096,369 10-00-00-590-000 WU/Transfers to Other Funds $4,000,000 $2,000,000 10-00-00-590-001 WU/Transfers to Other Funds (DSR) $2,100,000 $100,000 10-00-00-590-002 WU/Transfers to Other Funds (ER) $1,200,000 $1,100,000 10-00-00-601-000 WU/Bond Proceeds $0 $0 10-00-00-602-000 WU/Loan Proceeds $2,000,000 $2,000,000 10-00-00-682-000 WU/Debt Principal Expense $4,407,049 $4,483,163 20-00-00-590-000 FRC/Transfers to Other Funds $1,300,332 $1,225,185 30-00-00-590-000 Bond/Transfers to Other Funds $0 $0 60-00-00-590-000 SRF/Transfers to Other Funds -$2,000,000 $0 60-00-00-602-000 SRF/Loan Proceeds $2,000,000 $2,000,000

**Depreciation/Amortization - non cash expenditure, and not included in budget summary of expenses.

FY 2015 - 2016 budget General Expenses (Fiscal) 32 - Fiscal - others Final 5/15/2015 1 of 16 Page 166 TOTAL: WU/Admin/Admin/Post-Employment Benefits (OPEB) $884,000 $914,000 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? ARC based on average % of payroll Amount is estimated and is subject to change. New valuation is coming out around end of No $884,000 $914,000 for 3 yrs April

FY 2015 - 2016 budget 10-01-10-530-060 32 - Fiscal - others Final 5/15/2015 2 of 16 Page 167 TOTAL: WU/Acctg/Admin/County Service Charge $1,989,642 $1,989,642

New Line Item Notes FY 2014-2015 FY 2015-2016 Request? 2408 - 6" @ $804 = $1,936,032; 40 - 4" Hydrant @ $276.00 = $11,040 ; 330 - County Service Charge $1,989,642 $1,989,642 Standpipes @ $129.00 = $42,570

FY 2015 - 2016 budget 10-00-00-547-000 32 - Fiscal - others Final 5/15/2015 3 of 16 Page 168 TOTAL: WU/Depreciation/Depreciation** $0 $7,323,987 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Depreciation Yes Depreciation based on FY 2014 financials $0 $7,323,987

FY 2015 - 2016 budget 10-00-90-580-000 32 - Fiscal - others Final 5/15/2015 4 of 16 Page 169 TOTAL: WU/Depreciation/Amortization** $0 $0 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Amortization Yes Amortization based on FY 2014 financials $0 $0

FY 2015 - 2016 budget 10-00-90-581-000 32 - Fiscal - others Final 5/15/2015 5 of 16 Page 170 TOTAL: WU/Interest Expense $4,075,280 $4,096,369 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? 01-00-00-582-01 1980 FmHA (93) $900 $900 01-00-00-582-02 Kauai GOB 2011 A Series (97.1) $148,600 $148,600 01-00-00-582-03 2005A Water Bonds (86) $4,994 $4,994 01-00-00-582-04 2012A Water Bonds -Refunded Part of 2005A (97.3) $114,188 $114,188 01-00-00-582-05 2010A Series -BAB (92) $2,860,306 $2,860,306 01-00-00-582-06 2005A Water Bonds, Partial Refunding of 2001 Series A (87) $104,444 $104,444 01-00-00-582-07 SRF Loan Hanapepe River Crossing (80) $26,271 $26,271 01-00-00-582-08 SRF Loan Hanapepe 27" Pipeline (81) $14,642 $14,642 01-00-00-582-09 SRF Loan Wailua Homesteads Well No. 3 (82) $7,961 $7,961 01-00-00-582-10 SRF Loan Lihue Steel Tanks 1 & 2 (83) $26,787 $26,787 01-00-00-582-11 SRF Loan Ornellas 0.2 MG Tank (84) $17,795 $17,795 01-00-00-582-12 SRF Loan 16" Waterline Kuhio Hwy Wailua (85) $48,914 $48,914 01-00-00-582-13 SRF Loan - Poipu Rd 16 inch main (88) $115,849 $115,849 01-00-00-582-14 SRF Loan - Stable 1.0 MG Tank (89) $198,466 $198,466 01-00-00-582-15 SRF Loan - Kaumualii Hwy 12 inch Main Repl Elepaio (90) $112,461 $112,461 01-00-00-582-16 SRF Loan - Waha, Wawae & Niho (91) $54,786 $54,786 01-00-00-582-17 SRF Loan - Kapilimao 0.5 MG Tank (94) $112,376 $112,376 01-00-00-582-18 SRF Loan- Kokolau (98) $31,098 $31,098 01-00-00-582-19 SRF Loan- Kapilimao Well (99) $16,464 $16,464 01-00-00-582-20 SRF Loan - Wailua Houselots Main Repl $33,758 $49,506 01-00-00-582-21 SRF Loan - Plh 39a, Lihue Baseyard $24,221 $29,562

FY 2015 - 2016 budget 10-00-00-582-00 32 - Fiscal - others Final 5/15/2015 6 of 16 Page 171 TOTAL: WU/Transfers to Other Funds $4,000,000 $2,000,000 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Transfer SRF Loan forgiveness Transfer estimated proceeds from SRF loan forgiveness to SRF fund $2,000,000 $0 Transfer SRF Loan Proceeds Transfer estimated proceeds from SRF loan to SRF fund $2,000,000 $2,000,000

FY 2015 - 2016 budget 10-00-00-590-00 32 - Fiscal - others Final 5/15/2015 7 of 16 Page 172 TOTAL: WU/Transfers to Other Funds $2,100,000 $100,000 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Debt Service Reserve (50% of annual debt service, $2.1M transferred) $2,100,000 $100,000

FY 2015 - 2016 budget 10-00-00-590-01 32 - Fiscal - others Final 5/15/2015 8 of 16 Page 173 TOTAL: WU/Transfers to Other Funds $1,200,000 $1,100,000 New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

25% of $25.8M less $3.6M transferred Emergency Reserve (25% of Operating Revenues, $3.6M transferred) $1,200,000 $1,100,000

FY 2015 - 2016 budget 10-00-00-590-02 32 - Fiscal - others Final 5/15/2015 9 of 16 Page 174 TOTAL: WU/Bond Proceeds $0 $0 New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

FY 2015 - 2016 budget 10-00-00-601-00 32 - Fiscal - others Final 5/15/2015 10 of 16 Page 175 TOTAL: WU/Loan Proceeds $2,000,000 $2,000,000 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? SRF Loan Proceeds SRF Loan Proceeds $2,000,000 $2,000,000

FY 2015 - 2016 budget 10-00-00-602-00 32 - Fiscal - others Final 5/15/2015 11 of 16 Page 176 TOTAL: WU/Debt Principal Expense $4,407,049 $4,483,163 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? 01-00-00-682-01 1980 FmHA (93) $18,000 $18,000 01-00-00-682-02 Kauai GOB 2011 A Series (97.1) $290,000 $290,000 01-00-00-682-03 2005A Water Bonds (86) $75,000 $75,000 01-00-00-682-04 2012A Water Bonds -Refunded Part of 2005A (97.3) $0 $0 01-00-00-682-05 2010A Series -BAB (92) $1,915,000 $1,915,000 01-00-00-682-06 2005A Water Bonds, Partial Refunding of 2001 Series A (87) $295,000 $295,000 01-00-00-682-07 SRF Loan Hanapepe River Crossing (80) $64,138 $64,138 01-00-00-682-08 SRF Loan Hanapepe 27" Pipeline (81) $35,743 $35,743 01-00-00-682-09 SRF Loan Wailua Homesteads Well No. 3 (82) $21,015 $21,015 01-00-00-682-10 SRF Loan Lihue Steel Tanks 1 & 2 (83) $65,565 $65,565 01-00-00-682-11 SRF Loan Ornellas 0.2 MG Tank (84) $41,958 $41,958 01-00-00-682-12 SRF Loan 16" Waterline Kuhio Hwy Wailua (85) $120,992 $120,992 01-00-00-682-13 SRF Loan - Poipu Rd 16 inch main (88) $263,872 $263,872 01-00-00-682-14 SRF Loan - Stable 1.0 MG Tank (89) $376,329 $376,329 01-00-00-682-15 SRF Loan - Kaumualii Hwy 12 inch Main Repl Elepaio (90) $201,749 $201,749 01-00-00-682-16 SRF Loan - Waha, Wawae & Niho (91) $98,277 $98,277 01-00-00-682-17 SRF Loan - Kapilimao 0.5 MG Tank (94) $193,286 $193,286 01-00-00-682-18 SRF Loan- Kokolau (98) $88,633 $88,633 01-00-00-682-19 SRF Loan- Kapilimao Well (99) $48,067 $48,067 01-00-00-682-20 SRF Loan - Wailua Houselots Main Repl $114,689 $172,942 01-00-00-682-21 SRF Loan - Plh 39a, Lihue Baseyard $79,736 $97,597

FY 2015 - 2016 budget 10-00-00-682-00 32 - Fiscal - others Final 5/15/2015 12 of 16 Page 177 TOTAL: FRC/Transfers to Other Funds $1,300,332 $1,225,185 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? Transfer to W/U No Proportionate FRC Debt Service $1,300,332 $1,225,185 (FY 2015 = 2,525,517) less (FY 2015 transfer $1,300,332)

FY 2015 - 2016 budget 20-00-00-590-00 32 - Fiscal - others Final 5/15/2015 13 of 16 Page 178 TOTAL: Bond/Transfers to Other Funds $0 $0 New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

FY 2015 - 2016 budget 30-00-00-590-00 32 - Fiscal - others Final 5/15/2015 14 of 16 Page 179 TOTAL: SRF/Transfers to Other Funds -$2,000,000 $0 New Line Item Notes FY 2014-2015 FY 2015-2016 Request?

Transfer SRF Loan Proceeds from W/U Proceeds from SRF loan forgiveness -$2,000,000 $0

* reimbursement of capital outlay which is shown as negative expense account (590)

FY 2015 - 2016 budget 60-00-00-590-00 32 - Fiscal - others Final 5/15/2015 15 of 16 Page 180 TOTAL: SRF/Loan Proceeds $2,000,000 $2,000,000 New Line Item Notes FY 2014-2015 FY 2015-2016 Request? SRF Loan Proceeds Estimated Proceeds from SRF Loan for Lihue DOW baseyard $2,000,000 $2,000,000

FY 2015 - 2016 budget 60-00-00-602-00 32 - Fiscal - others Final 5/15/2015 16 of 16 Page 181 Operations Division

Program Budget – FY2015 - 2016

PROGRAM DESCRIPTION

The Operations Division is responsible for maintaining and operating the Department’s water distribution network, water storage facilities and water producing sources. This infrastructure provides potable water to approximately 21,000 metered services in sufficient quantities, at adequate pressures, with minimum interruptions and of a quality safe and suitable for human consumption as mandated by the United States Environmental Protection Agency (USEPA) and the Safe Drinking Water Act (SDWA).

As water is an essential commodity, emergency repairs and trouble calls are provided round-the-clock on an as-needed basis. In order to accomplish its mission, the Operations’ Division maintains and stocks a complete inventory of materials and supplies for assurances that repairs are completed in a timely manner. This Division handles the smaller construction projects and participates in large pipeline installation projects. It also initiates field engineering to ensure efficient operations. Along with the responsibilities of providing potable water, it provides the Department’s fleet management functions and is responsible with the maintenance, repairs and replacement of vehicles and equipment.

Under the direction of the Chief of Operations, the Division consists of the Plant Operations Section and the Field Operations Section. There are 48 permanent positions and 1 temporary as needed position for the Division.

PROGRAM OBJECTIVES

Our daily activities are centered along the following:

1. Operating, monitoring, and maintaining 53 deep well pumping stations, 19 booster pumping stations along with its associated electrical motor control centers and chlorination disinfection equipment, 4 tunnel sources, 62 storage tanks, 75 control valve stations, 2. Maintaining, repairing, and replacing mechanical and electrical malfunctioning components, equipment and infrastructure to maintain water service.

40 Operations Program Budget 2015-2016 Page 1 of 5 Page 182

3. Maintaining and repairing the Department’s 46 vehicles, 1 electric car, 1 mini-excavator, 2 backhoes, 4 skid steer loaders along with their various attachments, 1 portable air compressor, 11 trailers, 12 trailer-mounted generators ranging is sizes from 70 KW to 400 KW, 2 light towers, 2 directional arrow boards and numerous motorized hand-operated construction equipment.

4. Operating, monitoring, repairing and maintaining 400+ miles of pipelines and approximately 21,000+ consumer water service connections and meters, 4,000+ valves, 2,645+ fire hydrants and standpipes.

5. Installing new service connections and meters including the replacement of defective meters and those in service for 20 years. Providing temporary water services through hydrant meter connections for construction activities like dust control and landscaping.

In addition to our daily activities, some of the major occurrences and tasks performed by the Operations Division during FY 2014- 2015 were:

Personnel

 The following positions were filled in FY 2014-2015: one (1) Plant Electrician Helper, one (1) Assistant Water Plant Operator, two (2) Pipefitter Fitter Helpers, one (1) Equipment Operator II, one (1) Clerk Dispatcher II (vacated due to retirement).  Kauai Community College students recently completed shadowing program where students were allowed to shadow DOW Water Plant Operators one-on-one to our remote facilities.  One (1) Operations Division personnel took and passed the Distribution System Operator (DSO) I exam.  Vacant Heavy Vehicle and Equipment Mechanic I is on continuous recruitment.  Vacant Waterworks Electronics/Plant Electrical Tradesperson I is on continuous recruitment.  Vacant Water Plants Superintendent is on continuous recruitment.  Vacant Water Plant Operator is on continuous recruitment.  Vacant Welder and Auto Mechanic I positions are posted for recruitment.  Human Resources Department recently assigned position numbers to newly created and approved positions: Senior Account Clerk, Equipment Operator II, and Groundskeeper. Requests to post recruitment announcement have been submitted to HR.

40 Operations Program Budget 2015-2016 Page 2 of 5 Page 183 Source and Storage

 This Fiscal Year, no remote site was converted from Chlorine gas to Sodium Hypochlorite.  Sanitary Surveys were conducted by the Department of Health in the Anini Water System and the Puhi-Lihue-Hanamaulu- Wailua-Kapaa Water System. Immediate repairs were made to sites that were inspected where significant deficiencies were noted.  Per order from the Federal government and in support of the effort to save the shearwater birds, we turned off all exterior lights at Department facilities islandwide and shielded lights within the Lihue base yard area.  Emergency pump and appurtenances replacement for Kalaheo Deep Wells 1 & 2, contract 581 were completed.  Emergency pump and appurtenances replacement for Kilauea Deep Well 1, contract 587 was completed.  Lawai Well #1 repair, Job 15-1, bid documents forwarded for posting at State Procurement Office website.  Piwai Well #3 repair, Job 15-3, bid documents forwarded for posting at State Procurement Office website.  Kilohana Well B repair, Job 15-2, bid documents forwarded for posting at State Procurement Office website.  Operations Division is in contact with KIUC for installation of Variable Frequency Drives to further reduce electrical consumption.  In-house construction of concrete access road and driveway for Kilauea site was completed. Distribution

 The Operations Division east crews are currently in the process of replacing approximately 1800 feet of 2” diameter distribution line along Hehi in Hanamaulu and have replaced 1470 feet as of February, 2015.  West crews replaced approximately 400 feet of 3” PVC mainline along Lokokai Road.  West crews are currently replacing approximately 1000 feet of 3” PVC mainline along Lele Road.  For the past year, distribution system operators responded to 460 emergency calls reporting pipeline and hydrant leaks.  Operations Division personnel responded to 305 Hawaii One Call Center requests from contractors and developers for water line location markings.  Crews replaced 70 meter boxes and installed 110 meters.  Opearations Division personnel responded to 661 requests to check and/or replace defective meters. 77 meters were replaced.  A total of 44 live taps were performed.  A total of 21 service laterals were installed or relocated.  Hydrant crew responded to 15 calls due to hydrant hit by vehicle.

40 Operations Program Budget 2015-2016 Page 3 of 5 Page 184  A total of 5 temporary hydrant meter applications were processed and installed. Ops Inventory, Warehouse and Baseyard Area

 Old vehicles and equipment were auctioned.  Baseyard security camera was upgraded.  Job 15-6 Bid Documents for additional baseyard security cameras forwarded for posting at State Procurement Office website.  Job 15-4 Replace Baseyard Rain Gutters was posted and bid opening is on March 2015.  GS 2015-4 for purchase of Backhoe and Trailer was forwarded for posting at State Procurement Office website.  New dump truck for the field crew was purchased and delivered.  New utility truck for field crew was purchased and delivered.  Design professional for the baseyard covered parking with photo-voltaic panels design are currently being evaluated.  SCADA support and maintenance contract with Glenmount Global Services was executed.  MPET support and maintenance contract with Four Winds Group was executed.  Keys and locks replacement contract with LBS was executed. Entire keys and locks system of DOW will be replacement with Cyberlocks and Cyberkeys to increase security in both the baseyard and all remote facilities. New locks and keys were delivered and received. GOALS FOR THE 2015-2016 FISCAL YEAR

1. Continue with the progress and momentum of the Operations reorganization effort. Recruit to fill vacant positions that were approved in the reorg plan. Priority will be placed on recruiting for the Heavy Vehicle and Equipment Mechanic and Telecom Technician. 2. Continue with progress made in converting from paper to electronic timesheets and have all Ops personnel on electronic timesheets by the end of the fiscal year. Continue to work with our CMMS consultant and DOW Information Technology Section to institute “timesheets on the fly” that will enable employees to enter timesheet data in the field on mobile computers and link directly into an MPET data base in the “cloud.” 3. Continue with the progress made in reminding employees to follow chain of command. 4. Continue with the progress made in reducing early morning inefficiencies in preparing timesheets and dispatching job assignments. Get the crews on the road without delay.

5. Continue and speed targeted pipeline and service lateral replacements.

40 Operations Program Budget 2015-2016 Page 4 of 5 Page 185 6. Continue converting disinfection from gas chlorination systems to sodium hypochlorite. 7. Review and update the Department’s Safety Program. Implement in daily operations. 8. Continue with the upgrade of the SCADA system. 9. Continue in-house projects of replacing transmission and main lines that are prone to breakage. 10. Continue in-house construction projects related to repair and maintenance of structures and infrastructure located within Department of Water remote sites. 11. Continue with the progress made in quickly responding to trouble and/or emergency calls. 12. Continue with the progress of having a weeklong standby crew that improved response time to leak reports received after regular office hours and on weekends and holidays. 13. Continue with the progress of reducing electric consumption. 14. Continue with the progress of reducing water loss and unbilled water.

40 Operations Program Budget 2015-2016 Page 5 of 5 Page 186 General Expenses - Operations

Approved Budget Proposed Budget Account Description FY 2014-2015 FY 2015-2016 Operating Expenses $7,985,777 $7,915,756 10-40-60-540-010 WU/Ops/TandD/Professional Services - General $100,000 $260,000 10-40-60-541-010 WU/Ops/TandD/Other Services $2,000 $2,000 10-40-60-564-000 WU/Ops/TandD/Fuel $208,550 $208,550 10-40-50-543-000 WU/Ops/Power/Pump/Communication Services $47,600 $37,880 10-40-50-551-000 WU/Ops/Power/Pump/Utility Services $3,491,000 $3,491,000 10-40-60-545-000 WU/Ops/TandD/Rentals and Leases $70,000 $70,000 10-40-60-560-000 WU/Ops/TandD/Repairs and Maintenance - Water System $165,000 $166,000 10-40-30-560-000 WU/Ops/Source/Repairs and Maintenance - Water System $500,000 $425,000 10-40-60-561-000 WU/Ops/TandD/Repairs and Maintenance - Other than Water System $305,000 $235,000 10-40-60-563-000 WU/Ops/TandD/Operating Supplies $700,801 $547,000 10-40-30-563-000 WU/Ops/Source/Operating Supplies $150,000 $115,000 10-40-40-563-000 WU/Ops/Purification/Operating Supplies $77,500 $78,000 10-40-50-563-000 WU/Ops/PandP/Operating Supplies $41,000 $131,000 10-40-60-571-010 WU/Ops/TandD/Training & Development $40,000 $37,500 10-40-60-572-010 WU/Ops/TandD/Travel & Per Diem $5,000 $5,000 10-40-60-573-010 WU/Ops/TandD/Meeting Expense $8,000 $7,500 10-40-60-565-000 WU/Ops/TandD/Bulk Water Purchase $2,074,326 $2,099,326 Capital Purchases $735,000 $220,003 10-40-00-604-999 WU/Ops/Capital Outlay - Rehabilitation and Replacement/Equipment $640,000 $100,000 10-40-00-605-999 WU/Ops/Capital Outlay - Expansion/Equipment $95,000 $120,003

SUMMARY OF OPERATING EXPENSES $7,985,777 $7,915,756 SUMMARY OF CAPITAL PURCHASES $735,000 $220,003 OPERATING EXPENSES PLUS CAPITAL OUTLAY $8,720,777 $8,135,759

FY 2015 - 2016 budget Operations (Val) 40 - Ops Budget Final 5/14/2015 1 of 20 Page 187 General Expenses - Operations

TOTAL: WU/Ops/TandD/Professional Services - General $100,000 $260,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Design services for emergency Engineering design for structures at remote sites to protect portable emergency generators; generators housing structures at remote No $100,000 $50,000 emergency generator evaluation for SWTP -P.E.R. only Phase I sites Phase II of generator shelter design Yes Actual design services for remote site emergency generator and shelters $100,000 Design services for Kilauea MCC Yes $110,000 replacement

FY 2015 - 2016 budget 10-40-60-540-010 40 - Ops Budget Final 5/14/2015 2 of 20 Page 188 General Expenses - Operations

TOTAL: WU/Ops/TandD/Other Services $2,000 $2,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? MMIS MPET - additional services $20,000 $0 $0 One Call No One Call Center $2,000 $2,000

FY 2015 - 2016 budget 10-40-60-541-010 40 - Ops Budget Final 5/14/2015 3 of 20 Page 189 General Expenses - Operations

TOTAL: WU/Ops/TandD/Fuel $208,550 $208,550 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? diesel for utility fleet No 17,500 gallons at $4.85 per gallon; includes increase due to generator use $84,875 $84,875 gasoline for utility fleet No 25,500 gallons at $4.85 per gallon; includes increase due to new vehicles $123,675 $123,675

FY 2015 - 2016 budget 10-40-60-564-000 40 - Ops Budget Final 5/14/2015 4 of 20 Page 190 General Expenses - Operations

TOTAL: WU/Ops/Power/Pump/Communication Services $47,600 $37,880 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Phone service for alarm circuits No 24 circuits $21,700 $21,700 Cell phones for standby personnel No 26 phones ( 23 personnel, 3 for alarm surges) $22,000 $15,400 DSL Service for employee to access No 1 DSL Services $3,900 $780 SCADA from home

FY 2015 - 2016 budget 10-40-50-543-000 40 - Ops Budget Final 5/14/2015 5 of 20 Page 191 General Expenses - Operations

TOTAL: WU/Ops/Power/Pump/Utility Services $3,491,000 $3,491,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Pumping facility electricity No 63 accounts $3,445,000 $3,445,000

Tank sites and Garage Building electricity No 25 Tank sites and one garage building. $46,000 $46,000

FY 2015 - 2016 budget 10-40-50-551-000 40 - Ops Budget Final 5/14/2015 6 of 20 Page 192 General Expenses - Operations

TOTAL: WU/Ops/TandD/Rentals and Leases $70,000 $70,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Construction equipment rentals. No Equipment rental. (e.g. excavator, roller, loader, scissor lift, boom lift, etc.) $70,000 $70,000

FY 2015 - 2016 budget 10-40-60-545-000 40 - Ops Budget Final 5/14/2015 7 of 20 Page 193 General Expenses - Operations

TOTAL: WU/Ops/TandD/Repairs and Maintenance - Water System $165,000 $166,000

New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Includes waste management, maintaining and repairing plant facilities, maintenance of facilities, Outside contractual services No $15,000 $15,000 maintenance of tunnel sources, alarm circuits. SCADA System Integrator Consulting and No Labor for radio replacement and site maitnenance. $150,000 $150,000 Maintenance Contract (Annually) Easement 5-1-5:23 Easement for booster pump station on Wailapa $1,000

FY 2015 - 2016 budget 10-40-60-560-000 40 - Ops Budget Final 5/14/2015 8 of 20 Page 194 General Expenses - Operations

TOTAL: WU/Ops/TandD/Repairs and Maintenance - Water System $500,000 $425,000

New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Pump replacement program No Including emergency pump replacementand repairs, ongoing program. $125,000 $425,000 Contractual cost to operate SWTP No Currently owned by Grove Farm and operated by Aqua Engineers $0 Contingency No $0 Supplemental budget $375,000

FY 2015 - 2016 budget 10-40-30-560-000 40 - Ops Budget Final 5/14/2015 9 of 20 Page 195 General Expenses - Operations

WU/Ops/TandD/Repairs and Maintenance - Other than Water TOTAL: System $305,000 $235,000

New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Rehab and Restoration Services No Roadway rehab and repairs $175,000 $100,000 Baseyard Parking Lot No Baseyard Parking Lot $25,000 $25,000 Vehicle maintenance and service No Outside repair services and maintenance. $105,000 $105,000 Debris disposal at landfill yes $0 $5,000

FY 2015 - 2016 budget 10-40-60-561-000 40 - Ops Budget Final 5/14/2015 10 of 20 Page 196 General Expenses - Operations

TOTAL: WU/Ops/TandD/Operating Supplies $700,801 $547,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Meter Parts No Repair parts and field testing equipment $8,300 $10,000 Small pipeline and service line replacement No Pipe and valves $50,000 $37,000 parts Road repair supplies No Cold mix and other roadway patching materials $50,000 $50,000 Large inventory items No Large diameter pipe, valves, and other items in inventory $1 $14,000 Traffic Safety Signs and Equipment No New safety and traffic control signs. $10,000 $5,000 New & Replacement- 5/8" meters No 300 ea @ $200 $92,500 $60,000 Replacement meters, all other sizes No 65 others @ $600 $39,000 $39,000 Replacement meter boxes No 200 ea @ $40 $8,000 $8,000 Replacement meter covers No 200 ea @ $15 $3,000 $3,000 Hydrant replacement No Ongoing hydrant replacement program, as needed. $60,000 $60,000 Stock Inventory Items No Warehouse inventory parts and materials. ($150K budget under 102) $150,000 $125,000

Cost od safety shoes, safety glasses, PUC exams, respiratory exams, uniform shirts, safety Safety Equipment No clothin, replacement tools, equipment as mandated and required by OSHA, and collective $30,000 $30,000 bargaining agreements. Purchase one AED ($1,500 each)for each Field/Plant crew

Cost of public notices, Garden Island advertisements, damages to property, and expenditures Miscellaneous expenditures No $5,000 $5,000 not classified elsewhere. SCADA Replacement Parts Inventory No Inventory parts and includes replacement of MDS 9810 radios $75,000 $50,000 Repair and maintenance materials for plant buildings and structures, equipment parts, pest and Operational materials, supplies, and No weed control, small tool purchases and replacements, trench patching and road repairs. ($50K $50,000 $22,000 accessories. budget under 102)

Cost of repair and maintenance of motor vehicles and power operated equipment, parts, Vehicle parts and materials No $50,000 $25,000 accessories, tires, tire repairs, safety checks, batteries, and oil. ($50K budget under 102)

Operational Equipment less than $5,000 No Furnitures & Fixtures <$5,000. $10,000 $2,000 per Board Policy No. 3, Item No. 4

Operational Equipment less than $5,000 No Tools and Equipment <$5,000. $10,000 $2,000 per Board Policy No. 3, Item No. 4

FY 2015 - 2016 budget 10-40-60-563-000 40 - Ops Budget Final 5/14/2015 11 of 20 Page 197 General Expenses - Operations

TOTAL: WU/Ops/Source/Operating Supplies $150,000 $115,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Miscellaneous Rehab Projects No In-house construction, maintenance and rehabilitation projects. $150,000 $115,000

FY 2015 - 2016 budget 10-40-30-563-000 40 - Ops Budget Final 5/14/2015 12 of 20 Page 198 General Expenses - Operations

TOTAL: WU/Ops/Purification/Operating Supplies $77,500 $78,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

Sodium Hypochlorite and Chlorine Gas No Chemical supplies for disinfection. $75,000 $75,000

Soda Ash No pH control for source water. $2,500 $3,000

FY 2015 - 2016 budget 10-40-40-563-000 40 - Ops Budget Final 5/14/2015 13 of 20 Page 199 General Expenses - Operations

TOTAL: WU/Ops/PandP/Operating Supplies $41,000 $131,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Repair parts for plant electricians to maintain, repair, and operate electrical pumping plants, Electrical parts and materials No $41,000 $41,000 booster stations, buildings, and structures. VFD Yes Pilot project for installation of Variable Frequency Drives $0 $90,000

FY 2015 - 2016 budget 10-40-50-563-000 40 - Ops Budget Final 5/14/2015 14 of 20 Page 200 General Expenses - Operations

TOTAL: WU/Ops/TandD/Training & Development $40,000 $37,500 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Certification classes and No Training & Development $40,000 $37,500 trainings/workshops/conferences Travel and Per Diem No Moved to GL acct. 572-010

FY 2015 - 2016 budget 10-40-60-571-010 40 - Ops Budget Final 5/14/2015 15 of 20 Page 201 General Expenses - Operations

TOTAL: WU/Ops/TandD/Travel & Per Diem $5,000 $5,000 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Operations Certification No No Travel & Per Diem (was under training & development) $5,000 $5,000

FY 2015 - 2016 budget 10-40-60-572-010 40 - Ops Budget Final 5/14/2015 16 of 20 Page 202 General Expenses - Operations

TOTAL: WU/Ops/TandD/Meeting Expense $8,000 $7,500 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request?

Tapping Team Expenses No Travel, material, supplies and conference registration for AWWA tapping contest (Men/Women) $8,000 $7,500

FY 2015 - 2016 budget 10-40-60-573-010 40 - Ops Budget Final 5/14/2015 17 of 20 Page 203 General Expenses - Operations

TOTAL: WU/Ops/TandD/Bulk Water Purchase $2,074,326 $2,099,326 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? Princeville Utilities for Anini No 20MG per Year x $2.40 per thousand gallons plus $148 per month standby charge $49,776 $49,776

Princeville Tract Subdivision No 0.7 MG per year X $2.00 per thousand gallons plus $6.11 per month for standby charge $1,900 $1,900

Princeville Tank No 1 MG per year X $2.00 per thousand gallons plus $230 per month standby charge $4,800 $4,800

Plantation Road Tank No 0.7 MG per year X $2.00 per thousand gallons plus $70 per month for standby charge $2,250 $2,250

Grove Farm Water Purchase Agreement No 2.75MGD @ 365 days @ $2.00 per thousand gallons $2,007,500 $2,007,500

Moloaa No 0.7MG at $1.44 per thousand gallons $1,000 $1,000

Kalihiwai Bay Estate Water Association No 1 mG @ $5 per thousand gallons $5,000 $5,000

Anahola Emergency Interconnection No Annual fee for interconnectoin $2,100 $2,100 Contingency Yes 5% increase in cost $0 $25,000

FY 2015 - 2016 budget 10-40-60-565-000 40 - Ops Budget Final 5/14/2015 18 of 20 Page 204 General Expenses - Operations

WU/Ops/Capital Outlay - Rehabilitation and TOTAL: Replacement/Equipment $640,000 $100,000

New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? F450 pickup with utility body No Replacing 2007 CK2048 due to age and mileage. $110,000 $0 F450 pickup with utility body No Replacing 2007 CK2049 due to age and mileage. $110,000 $0 Backhoe and Trailer No Replacing 2002 Komatsu Backhoe due to age and hours of service. $230,000 $0 2- pickup w/ lift gate No Replacing 2007 CK 1958 and CK1973 due to age and mileage. $45,000 Bid for the solication to replace locks and keys was over the budget and we were unable to Replace locks and keys No $145,000 $0 encumber the funds from previous Fiscal Year. 2- 4x4 pick-up with lift gate Yes Replacing 2007 CK 1958 and 2007 CK 1973 due to age and mileage $100,000

FY 2015 - 2016 budget 10-40-00-604-999 40 - Ops Budget Final 5/14/2015 19 of 20 Page 205 General Expenses - Operations

TOTAL: WU/Ops/Capital Outlay - Expansion/Equipment $95,000 $120,003 New Line Item Notes FY 2014- 2015 FY 2015 - 2016 Request? F150 pickup with utility body No Water Service Leak Investigtor needs vehicle $45,000 Leak Detection Equipment No Updated equipment for leak detection. $35,000 Building Security Equipment No Phase II of baseyard security cameras and equipment. $15,000 Load Bank Yes Emergency generator testing equipment $0 4x4 P/U truck Yes service vehicle for Assistant Chief of Operations $45,000 1-dump trucks 18,000 lbs GVWR Yes mini-dump trucks to supplement for hauling of materials $75,000 mini-excavator Yes excavator for new equipment operator position $1

tanker truck Yes potable water tanker truck to supplement water delivery and road cleaning after repairs $1

asphalt pavement recycler Yes 85 K - outright purchase or lease option available $1

FY 2015 - 2016 budget 10-40-00-605-999 40 - Ops Budget Final 5/14/2015 20 of 20 Page 206

Page 207

DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

MANAGER’S REPORT No. 15-37

May 21, 2015

Re: Discussion and Possible Action for the Seventh Amendment to Contract No. 427 and Transfer of Funds for Job No. 02-14, Kapaʻa Homesteads 0.5 Million Gallon Storage Tank and Kapahi 1.0 Million Gallon Storage Tank and Connecting Pipelines Wailua-Kapaʻa Water System, Kapaʻa, Kauaʻi, Hawaiʻi

RECOMMENDATION: It is recommended that the Board approves the Seventh Amendment to Contract No. 427 for additional engineering services with Belt Collins Hawaiʻi, LLC. It is further recommended that the Board approve the transfer of funds in the amount of $18,100.00 from the BAB Fund Balance to BAB Fund Account No. 30-20-00-605-116 (Contract no. 427).

FUNDING: Current Contract No. 427 Amount $759,628.00 Seventh Contract Amendment – Additional funds being requested from BAB fund balance $18,100.00 New Contract Amount (contract no. 427) $777,728.00

Unencumbered BAB Fund Balance $15,805,999.41 Transfer from BAB fund for the 7th contract amendment <$18,100.00> Remaining unencumbered BAB Fund Balance $15,787,899.41

BACKGROUND: The Department has requested that the consultant make design changes that require additional design services. These changes include: changes to the site and water line piping layout, access to the top of the storage tank, and drainage system design. The drainage system design will also address water discharge/drainage from the proposed Kapa’a Homesteads Well #4 being located on the same site. The changes to the access to the tank and waterline piping are to provide better safety for our Operations personnel and to provide the Department with more operational options if the need arises.

The Department has also requested that the consultant change previously submitted contract bid and specifications document format to the current Request for Proposal (RFP) format. This will require additional review and update of the contract documents.

A plan review fee is now required by the Disability and Communication Access Board (DCAB) to review the plans. DCAB started charging a plan review fee on January 1, 2013. The DCAB plan review fee was not included with the original scope of work. In addition, a title search will also be done by the consultant for a proposed drainage easement and will be included in the change of scope for the seventh contract amendment. These additional design services will require additional funds. ‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 208 Manager’s Report No. 15-37 May 21, 2015 Page 2 of 2

We reviewed the proposal of Belt Collins Hawaii, LLC for additional engineering services of $18,100.00. We find this acceptable and therefore recommend approval.

Funds for these changes can be obtained from BAB fund account no. 30-20-00-605-139 (Moloa'a tank site acquisition) and transferred to BAB fund Account No. 30-20-00-605-116 (Contract no. 427). Funds for the Moloa'a tank site acquisition will be requested from the Board when needed.

OPTIONS: Pros: 1. Approving the contract amendment and the transfer of funds will allow the DOW to finish the design of the project. Cons: 1. Not approving the contract amendment and the transfer of funds will delay the resolution of the drainage issues for the tanks and well and delay the completion of the project.

Respectfully submitted, Funding reviewed:

Keith Aoki, Civil Engineer VI Marites Yano Engineering Division Water Works Controller

CONCURRED:

Kirk Saiki, P.E. Manager and Chief Engineer

KA/ein

Mgrrp/May 2015/15-37/Discussion and Possible Action for the Seventh Amendment to Contract No. 427 and Transfer of Funds for Job No. 02-14, Kapaʻa Homesteads 0.5 Million Gallon Storage Tank and Kapahi 1.0 Million Gallon Storage Tank and Connecting Pipelines Wailua-Kapaʻa Water System, Kapaʻa, Kauaʻi, Hawaiʻi (5-21-15):ein

Page 209 DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

MANAGER’S REPORT No. 15-38

May 21, 2015

Re: Discussion and Possible Action on the Right of Entry Agreement for S-2009-21, Puakea Subdivision Phase II, Affecting the Following Landowners in Lihue, Kauai, Hawaii

1. Grove Farm Properties, Inc. of TMK: (4) 3-3-003:041, Lihue, Kauai, Hawaii

RECOMMENDATION: It is recommended that the Board approve the Right of Entry document; whereby, the above landowners, grant to the Board of Water Supply, County of Kauai, a Right of Entry, on, over and under that certain parcel of land located as specified above in Lihue, Kauai, Hawaii, for the following work:

1. The OWNER does hereby grant the BOARD, its officers, agents and employees, a Right-of-Entry over and across the SUBJECT PROPERTY for the purposes of conducting all necessary inspections for and on behalf of the BOARD, and, if appropriate, for constructing, maintaining, conducting water meter readings on, and repairing any and all facilities and improvements for the conveyance of potable water to the lots which will result from the said Subdivision Application No. S-2009-21, Puakea Subdivision Phase II.

Further, Board approval is specifically requested of the indemnification provision in this agreement; wherein, the Board agrees to indemnify and hold harmless the Grantor from property damage and injuries to person (including death), when such damages and injuries are caused by the Department’s negligence while using the area.

2. The BOARD shall indemnify and hold the OWNER harmless against loss or damage to the SUBJECT PROPERTY and the lots which will result from the said Subdivision Application No. S-2009-21, Puakea Subdivision Phase II, or the property of others, and from liability for injury or death to any person, when such loss, damage, injury or death is caused by the negligent act of the BOARD, or its officers, agents and/or employees, in exercising the rights under this Agreement.

FUNDING: Not applicable.

BACKGROUND: Grove Farm Companies anticipates starting construction of Puakea Phase II Subdivision in the near future. The Right of Entry will allow the Department of Water to access the site during construction until the water facilities are conveyed to the Department of Water.

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 210 Manager’s Report No. 15-38 May 21, 2015 Page 2 of 2

Respectfully submitted,

Dustin Moises. P.E. Construction Project Management Officer

CONCURRED:

Kirk Saiki, P.E. Manager and Chief Engineer

DM:ein

Attachment: Right of Entry Agreement for Puakea Subdivision Phase II, TMK: (4) 3-3-003:041

Mgrrp/May 2015/15-38/Discussion and Possible Action on the Right of Entry Agreement for S-2009-21, Puakea Subdivision Phase II, Affecting the Following Landowners in Lihue, Kauai, Hawai'i, 1) Grove Farm Properties, Inc. of TMK: (4) 3-3-003:041, Lihue, Kauai, Hawai'i (5-21-15):ein

Page 211 Page 212 Page 213 Page 214 Page 215 Page 216 Page 217 Page 218 Page 219 Page 220 Page 221 DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

MANAGER’S REPORT No. 15-39

May 21, 2015

Re: Discussion and Possible Action on Job No. 13-05, Water Plan 2020 Project WKK-09, Kolo Road Main Replacement, Kilauea, Kaua‘i, Hawai‘i

RECOMMENDATION: The Department of Water (DOW) staff recommends the Board of Water (Board) allow the DOW to award the construction contract and authorize the Board Chair or Board Vice Chair to sign the construction contract provided the final proposal cost is within the approved FY 14-15 budget of $1.3M. The DOW also recommends authorizing Manager, the Board Chair or Board Vice Chair to sign any documents necessary to have the funds released by the State.

STATUS OF PROJECT: The design documents were completed on April 10, 2015 and the RFP for construction was advertised on April 13, 2015. The project activity schedule below is what was provided in the RFP. The construction selection committee will finalize their proposal evaluations shortly in order to then post the selection and comply with the procurement timeline requirements. Once that is done and provided no problems such as protests, the DOW would then award the construction contract to the selected contractor. This project was approved for a $1.3M appropriation from the State and must be encumbered by June 30, 2015 to avoid losing the funding. Therefore, we would need to fully execute the construction contract with the contractor by the end of June. Waiting until the June 18, 2015 Board meeting as we typically would, may not provide enough time to execute the contract by June 30th.

Activity Scheduled Date RFP Issued April 13, 2015 Pre-Proposal Conference April 16, 2015, 2015 Closing Date for Receipt of Questions / Comments / April 23, 2015 Material Substitution Notice of Intent to Propose May 4, 2015, 2015 DOW’s Response to Proposer’s Questions May 4, 2015 Proposal Due Date [Must list all subcontractors] May 14, 2015* Selection / Award Notification May-June 2015 Contract Execution Period May-June 2015 Contract Tentative Notice to Proceed Date (NTP) July-August 2015

BACKGROUND: This project will provide better fire protection for the Kilauea Elementary School complex. It has been appropriated $1.3M in State funding for the construction of the project. This project consists of furnishing and installing materials for the installation of approximately 1,181 linear feet of 12-inch, 58 linear feet of 8-inch, and 54 linear feet of 6-inch ductile iron pipe; appurtenances including new valves, new hydrants, new service laterals and meter boxes, air

‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 222 Manager’s Report No. 15-39 May 21, 2015 Page 2 of 3

valves, permanent cleanouts, valves and valve boxes, connections to existing waterlines, removal and salvage of abandoned appurtenances, transfer of service, and restoration and repaving work, all in accordance with the plans and specifications.

The construction estimate based on final design approval prior to advertising the project in April 2015 was approximately $800,000. The current construction environment is much busier than a few years ago where contractors on Kauai and throughout the state have a lot of work to bid on. This has correlated to higher prices on recent DOW projects and Kauai projects in general. However, this project would have to come in over 50% higher than the estimate to be over the $1.3M appropriation. For this reason, I believe it is safe to approve the recommendation made in this report. Once proposals are submitted and evaluated, we will do a thorough review and provide a report to manager that will be reflected in the June 2015 Manager’s Monthly Update.

FUNDING:

Account No. 10-21-00-604-032, WU/Const/Capital Outlay/13- 05, Kolo Road Main Replacement (Kilauea School) $ 1,300,000.00 Total Funds Available $ 1,300,000.00

Contractor: TBD $ TBD Contingency, approximately 5% $ TBD Total Funds Required $ TBD ($ TBD)

Total Funds Remaining, Account No. 10-21-00-604-032, WU/Const/Capital Outlay/13-05, Kolo Road Main Replacement (Kilauea School) $ TBD

OPTIONS:

Option 1: Not approve recommendation.

Pros: 1) Follows typical construction contract award procedure at next available monthly meeting.

2) Board would see contractor’s price before authorizing Board Chair to sign contract.

Cons: 1) The DOW would have little time to fully execute final construction contract.

2) The DOW could lose the $1.3M appropriation.

Page 223 Manager’s Report No. 15-39 May 21, 2015 Page 3 of 3

Respectfully submitted, Funding reviewed:

Dustin Moises, P.E. Marites Yano Construction Project Management Officer Waterworks Controller

CONCURRED:

Kirk Saiki, P.E Manager and Chief Engineer

DM:ein

Mgrrp/May 2015/15-39/Discussion and Possible Action on Job No. 13-05, Water Plan 2020 Project WKK-09, Kolo Road Main Replacement, Kilauea, Kaua‘i, Hawai‘i (5-21-15):ein

Page 224 DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

MANAGER’S REPORT No. 15-40

May 21, 2015

Re: Discussion and Possible Action on Water Plan 2020 Project PLH-39, Lihue Base Yard Improvements for the Department of Water, Lihue Water System, Lihue Kauai, Hawaii

RECOMMENDATION: It is recommended that the Board authorize the Manager and Chief Engineer to submit the Schedule Q Modified Agreement and Small Generator Interconnection Request to Kauai Island Utilities Cooperative (KIUC) for the future Photovoltaic System (PV).

Further, the Schedule Q Modified Agreement has the following in section 8:

SECTION 8. INDEMNIFICATION

Each party as indemnitor shall hold harmless and indemnify the other party and the directors, officers, authorized agents, and employees of such other party against and from any and all loss and liability for injuries to persons including employees and authorized agents of either party, and damages, including property of either party, resulting from or arising out of the engineering, design, construction, maintenance, or operation of, or the making of replacements, additions, or betterments to the indemnitor’ s facilities which are required for the interconnection and parallel operation of the Eligible Customer-Generator facility with KIUC’s electric system and the generation of energy by the Eligible Customer-Generator. Neither party shall be indemnified for liability or loss resulting from its sole negligence or willful misconduct. Nothing in this agreement shall create any duty to, any standard of care with reference to, or any liability to any person not a party to it.

In addition, once KIUC officially approved our Small Generator Interconnection request, we will have to execute an Interconnection Agreement. A copy of the anticipated KIUC Interconnection Agreement template has been attained and provided in this report. The Agreement states the following in section

7.3 Indemnity 7.3.1 This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in article 7.2.

7.3.2 The Parties shall at all times indemnify, defend, and hold the other Party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party.

7.3.3 If an indemnified person is entitled to indemnification under this article as a result of a claim by a third party, and the indemnifying Party fails, after notice and reasonable

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 225 Manager’s Report No. 15-40 May 21, 2015 Page 2 of 3

opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim.

7.3.4 If an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery.

7.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party.

FUNDING: No additional funding approval is needed at this time.

BACKGROUND: The DOW is currently in the construction phase of the subject project. Although the contract end date is in early 2017, our current completion is anticipated for Summer-Fall 2016. The building design incorporates an approximately 28 KW PV system with 26KW as the maximum export possible based on inverter capacity. In order to install and connect a system of this size, the DOW as the owner must submit the Generator Interconnection Request and Schedule Q Modified Agreement. Once the Interconnection Request is approved by KIUC, they will provide a Generator Interconnection Agreement for execution.

The Deputy County Attorney assigned to DOW has reviewed the documents and provided additional comments for my review. On April 28, 2015, I met with Thad Fuji of KIUC to discuss the DOW comments as follows:

Interconnection Agreement:  Section 6.3 Financial Security Arrangements: According to KIUC, this section will not be an issue for a PV system of DOW’s size as KIUC will not be required to upgrade infrastructure to accommodate our system.  Section 8.1 Insurance: The DOW is self-insured. According to KIUC, the self-insurance is acceptable.  Related to Insurance – I confirmed with KIUC that only systems greater than 30 KW require the interconnection customer to add KIUC as additionally insured. Our system is less than the 30 KW threshold.

OPTIONS: Option 1: Not authorize Manager to make request and enter into agreement with KIUC:

Pros: Reduce overall liability.

Cons: The building would have a higher electricity costs once operational. The DOW received a $2M green energy grant from DOH which could be in jeopardy if we changed this major part of the scope.

Page 226 Manager’s Report No. 15-40 May 21, 2015 Page 3 of 3

Option 2: Downsize the system to less than 10 KW:

Pros: Reduce liability as systems less than 10 KW are not required to enter into an interconnection agreement. [Per section 4 of Schedule Q Modified Agreement].

Cons: The building would have a higher electricity costs once operational. The DOW received a $2M green energy grant from DOH which could be in jeopardy if we changed this major part of the scope. The DOW would have to redesign the PV system to be smaller and possibly the electrical design to accommodate the smaller system properly. The DOW construction schedule would be altered and possibly delayed while the design changes are made.

Respectfully submitted,

Dustin Moises, P.E. Construction Project Management Officer

CONCURRED:

Kirk Saiki, P.E. Manager and Chief Engineer

DM/ein

Attachments: KIUC Interconnection Agreement (Template) Small Generator Interconnection Request (Attachment 2) KIUC Schedule G Modified Agreement

Mgrrp/May 2015/15-40/Discussion and Possible Action on Water Plan 2020 Project PLH-39, Lihue Base Yard Improvements for the Department of Water, Lihue Water System, Lihue Kauai, Hawai'i (5-21-15):ein

Page 227

KAUAI ISLAND UTILITY COOPERATIVE INTERCONNECTION AGREEMENT

«CUSTOMERNAME» «ACCOUNTNUMBER» «STREETNAME» «CITY», «STATE» «ZIP» PHOTOVOLTAIC SYSTEM «INVERTERCAPACITY»KW

(For Distributed Generation Facilities No Larger Than 20 MW)

Page 228

TABLE OF CONTENTS Page No.

INTERCONNECTION AGREEMENT ...... - 1 -

Article 1. Scope and Limitations of Agreement ...... - 1 -

1.1 ...... - 1 - 1.2 ...... - 2 - 1.3 ...... - 2 - 1.4 ...... - 2 - 1.5 Responsibilities of the Parties...... - 2 - 1.6 Parallel Operation Obligation ...... - 3 - 1.7 Metering ...... - 4 - 1.8 Reactive Power ...... - 4 - 1.9 ...... - 4 -

Article 2. Inspection, Testing, Authorization and Right of Access ...... - 4 -

2.1 Equipment Testing and Inspection...... - 4 - 2.2 Authorization Required Prior to Parallel Operation ...... - 5 - 2.3 Right of Access ...... - 5 -

Article 3. Effective Date, Term, Termination, and Disconnection ...... - 6 -

3.1 Effective Date ...... - 6 - 3.2 Term of Agreement ...... - 6 - 3.3 Termination ...... - 6 - 3.4 Temporary Disconnection ...... - 7 - 3.4.1 Emergency Conditions ...... - 7 - 3.4.2 Routine Maintenance, Construction, and Repair ...... - 8 - 3.4.3 Forced Outages ...... - 8 - 3.4.4 Adverse Operating Effects ...... - 9 - 3.4.5 Modification of the Small Generating Facility ...... - 9 - 3.4.6 Reconnection ...... - 9 -

- i - Page 229

Article 4. Cost Responsibility for Interconnection Facilities and Distribution Upgrades ...... - 10 -

4.1 Interconnection Facilities ...... - 10 - 4.2 Distribution Upgrades ...... - 10 - 4.3 Queue Position ...... - 11 -

Article 5. Cost Responsibility for Network Upgrades ...... - 11 -

5.1 Applicability ...... - 11 - 5.2 Network Upgrades ...... - 11 -

Article 6. Billing, Payment, Milestones, and Financial Security ...... - 11 -

6.1 Billing and Payment Procedures and Final Accounting ...... - 11 - 6.2 Milestones...... - 12 - 6.3 Financial Security Arrangements...... - 12 -

Article 7. Assignment, Liability, Indemnity, Force Majeure, Consequential Damages, and Default ...... - 13 -

7.1 Assignment ...... - 13 - 7.2 Limitation of Liability ...... - 14 - 7.3 Indemnity ...... - 14 - 7.4 Consequential Damages ...... - 15 - 7.5 Force Majeure ...... - 15 - 7.6 Default ...... - 16 -

Article 8. Insurance ...... - 17 -

8.1 ...... - 17 - 8.2 ...... - 17 - 8.3 ...... - 18 -

Article 9. Confidentiality ...... - 18 -

9.1 ...... - 18 - 9.2 ...... - 18 -

- ii - Page 230

Article 10. Disputes ...... - 19 -

10.1 ...... - 19 - 10.2 ...... - 19 - 10.3 ...... - 19 - 10.4 ...... - 19 - 10.5 ...... - 19 - 10.6 ...... - 19 -

Article 11. Taxes ...... - 20 -

11.1 ...... - 20 - 11.2 ...... - 20 -

Article 12. Miscellaneous ...... - 20 -

12.1 Governing Law, Regulatory Authority, and Rules ...... - 20 - 12.2 Amendment ...... - 20 - 12.3 No Third-Party Beneficiaries...... - 20 - 12.4 Waiver ...... - 20 - 12.5 Entire Agreement ...... - 21 - 12.6 Multiple Counterparts ...... - 21 - 12.7 No Partnership ...... - 21 - 12.8 Severability ...... - 21 - 12.9 Security Arrangements ...... - 22 - 12.10 Environmental Releases ...... - 22 - 12.11 Subcontractors ...... - 22 -

Article 13. Notices ...... - 23 -

13.1 General ...... - 23 - 13.2 Billing and Payment ...... - 24 - 13.3 Alternative Forms of Notice ...... - 24 - 13.4 Designated Operating Representative ...... - 25 - 13.5 Changes to the Notice Information ...... - 25 -

Article 14. Signatures ...... - 26 -

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Exhibit 1 – Glossary of Terms Exhibit 2 – Description and Costs of the Small Generating Facility, Interconnection Facilities, and Metering Equipment Exhibit 3 – One-line Diagram Depicting the Small Generating Facility, Interconnection Facilities, Metering Equipment, and Upgrades Exhibit 4 – Milestones Exhibit 5 – Additional Operating Requirements for the Cooperative's Transmission and/or Distribution System Needed to Support the Interconnection Customer’s Needs Exhibit 6 – Cooperative's Description of its Upgrades and Best Estimate of Upgrade Costs

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This INTERCONNECTION AGREEMENT ("Agreement") is made and entered into this ______day of ______, 20__, by and between KAUAI ISLAND UTILITY COOPERATIVE ("Cooperative"), and ______("Interconnection Customer"), each hereinafter sometimes referred to individually as "Party" or both referred to collectively as the "Parties."

Cooperative Information

Cooperative: Kauai Island Utility Cooperative Attention: _President & CEO and Chief Engineer______Address: 4463 Pahe’e Street, Suite 1 City: Lihue State: Hawai’i Zip: 96766-2032 Phone: _____808-246-4300______Fax: ______

Interconnection Customer Information

Interconnection Customer: Attention: Address: City: State: Zip: Phone: ______Fax: ______

Interconnection Customer Application No: ______(Cooperative to Fill Out)

In consideration of the mutual covenants set forth herein, the Parties agree as follows:

Article 1. Scope and Limitations of Agreement

1.1 This Agreement shall be used for all Interconnection Requests submitted under the Cooperative’s Small Generator Interconnection Policies and Procedures (For Distributed Generation Facilities No Larger Than 20 MW) (“Policies and Procedures”), except for those submitted under the 10 kW Inverter Process contained in Attachment 5 of the Policies and Procedures.

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1.2 This Agreement governs the terms and conditions under which the Interconnection Customer’s Small Generating Facility will interconnect with, and operate in parallel with, the Cooperative's Transmission and/or Distribution System.

1.3 This Agreement does not constitute an agreement to purchase or deliver the Interconnection Customer's power. The purchase or delivery of power and other services that the Interconnection Customer may require will be covered under separate Purchase Power Agreements or Tariff provisions, as applicable.

1.4 Nothing in this Agreement is intended to affect any other agreement between the Cooperative and the Interconnection Customer.

1.5 Responsibilities of the Parties

1.5.1 The Parties shall perform all obligations of this Agreement in accordance with all Applicable Laws and Regulations, Operating Requirements, and Good Utility Practice or Good Distributed Generation Practice (as applicable).

1.5.2 The Interconnection Customer shall construct, interconnect, operate and maintain its Small Generating Facility and construct, operate, and maintain its Interconnection Facilities in accordance with the applicable manufacturer's recommended maintenance schedule, and in accordance with this Agreement, Good Utility Practice or Good Distributed Generation Practice (as applicable), and any other requirements imposed by the Cooperative.

1.5.3 The Cooperative shall construct, operate, and maintain its Transmission and Distribution System and Interconnection Facilities in accordance with this Agreement, and with Good Utility Practice.

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1.5.4 The Interconnection Customer agrees to construct and operate its facilities or systems in accordance with Good Distributed Generation Practice, including but not limited to applicable specifications that meet or exceed those provided by the National Electrical Safety Code, the American National Standards Institute, IEEE, Underwriter's Laboratory, and Operating Requirements and other applicable national and state codes and standards. Without limiting the foregoing, the Interconnection Customer agrees to design, install, maintain, and operate its Small Generating Facility so as to minimize the likelihood of a disturbance adversely affecting or impairing the system or equipment of the Cooperative.

1.5.5 Each Party shall operate, maintain, repair, and inspect, and shall be fully responsible for the facilities that it now or subsequently may own unless otherwise specified in the Exhibits to this Agreement. Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and appurtenances on their respective sides of the point of change of ownership. The Cooperative and the Interconnection Customer, as appropriate, shall provide Interconnection Facilities that adequately protect the Cooperative's Transmission and/or Distribution System, personnel, and other persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance and ownership of Interconnection Facilities shall be delineated in the Exhibits to this Agreement.

1.6 Parallel Operation Obligations Once the Small Generating Facility has been authorized to commence parallel operation, the Interconnection Customer shall abide by all rules and procedures pertaining to the parallel operation of the Small Generating Facility in the applicable control area, including, but not limited to: 1) the rules and procedures concerning the operation or generation set forth in the Tariff or Purchase Power Agreement for the Cooperative's Transmission and/or Distribution System; 2) the Operating Requirements set forth in Exhibit 5 of this Agreement; and 3) Good Distributed Generation Practice.

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1.7 Metering The Interconnection Customer shall be responsible for the Cooperative's costs incurred for the purchase, installation, operation, maintenance, testing, repair, and replacement of metering and data acquisition equipment specified in Exhibits 2 and 3 of this Agreement. The Interconnection Customer's metering (and data acquisition, as required) equipment shall conform to applicable industry rules and Operating Requirements.

1.8 Reactive Power

1.8.1 The Interconnection Customer shall design its Small Generating Facility to maintain a composite power delivery at continuous rated power output at the Point of Interconnection at a power factor within the range specified in Exhibit 5 of this agreement.

1.9 Capitalized terms used herein shall have the meanings specified in the Glossary of Terms in Exhibit 1 or the body of this Agreement.

Article 2. Inspection, Testing, Authorization, and Right of Access

2.1 Equipment Testing and Inspection

2.1.1 The Interconnection Customer shall test and inspect its Small Generating Facility and Interconnection Facilities prior to interconnection. The Interconnection Customer shall notify the Cooperative of such activities no fewer than five Business Days (or as may be otherwise agreed to by the Parties in writing) prior to such testing and inspection. Testing and inspection shall occur on a Business Day. The Cooperative may, at its own expense, send qualified personnel to the Small Generating Facility site to inspect the interconnection and observe the testing. The Interconnection Customer shall provide to the Cooperative a written test report when such testing and inspection is completed.

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2.1.2 The Cooperative shall provide to the Interconnection Customer written acknowledgment that it has received the Interconnection Customer's written test report. Such written acknowledgment shall not be deemed to be or construed as any representation, assurance, guarantee, or warranty by the Cooperative of the safety, durability, suitability, or reliability of the Small Generating Facility or any associated control, protective, and safety devices owned or controlled by the Interconnection Customer or the quality of power produced by the Small Generating Facility.

2.2 Authorization Required Prior to Parallel Operation

2.2.1 The Cooperative shall use Reasonable Efforts to list applicable parallel operation requirements and operational test criteria in Exhibit 5 of this Agreement. Additionally, the Cooperative shall notify the Interconnection Customer of any changes to these requirements as soon as they are known. The Cooperative shall make Reasonable Efforts to cooperate with the Interconnection Customer in meeting requirements necessary for the Interconnection Customer to commence parallel operations by the in-service date.

2.2.2 The Interconnection Customer shall not operate its Small Generating Facility in parallel with the Cooperative's Transmission System without prior written authorization of the Cooperative. The Cooperative will provide such authorization once the Cooperative receives notification that the Interconnection Customer has complied with all applicable parallel operation requirements to ensure that said operation will be consistent with safety, reliability and power quality standards. Such authorization shall not be unreasonably withheld, conditioned, or delayed.

2.3 Right of Access

2.3.1 Upon reasonable notice, the Cooperative may send a qualified person to the premises of the Interconnection Customer at or immediately before the time the Small Generating Facility first produces energy to inspect the interconnection, and observe the commissioning of the Small Generating Facility (including any required testing), startup, and operation for a period of up to three Business Days after initial start-up of the unit. In addition, the Interconnection Customer shall notify the Cooperative at least five Business Days prior to conducting any on-site verification testing of the Small Generating Facility.

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2.3.2 Following the initial inspection process described above, at reasonable hours, and upon reasonable notice, or at any time without notice in the event of an emergency or potentially hazardous condition, the Cooperative shall have access to the Interconnection Customer's premises for any reasonable purpose in connection with the performance of the obligations imposed on it by this Agreement or if the Cooperative otherwise believes it necessary to meet its legal obligation to provide service to its customers.

2.3.3 Each Party shall be responsible for its own costs associated with following this article.

Article 3. Effective Date, Term, Termination, and Disconnection

3.1 Effective Date This Agreement shall become effective upon execution by the Parties. The Cooperative shall promptly file this Agreement with the Hawaii Public Utilities Commission (“Commission”) upon execution, if required.

3.2 Term of Agreement This Agreement shall become effective on the Effective Date and shall remain in effect for a period of 20 years from the Effective Date, and shall thereafter be automatically renewed for each successive one-year period thereafter, unless terminated earlier in accordance with article 3.3 of this Agreement.

3.3 Termination No termination shall become effective until the Parties have complied with all Applicable Laws and Regulations applicable to such termination.

3.3.1 The Interconnection Customer may terminate this Agreement at any time by giving the Cooperative 20 Business Days written notice.

3.3.2 Either Party may terminate this Agreement after Default pursuant to article 7.6.

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3.3.3 Either Party may terminate this Agreement at the end of the then existing term by providing at least thirty (30) days written notice to the other before the commencement of the subsequent one-year renewal period.

3.3.4 Upon termination of this Agreement, the Small Generating Facility will be disconnected from the Cooperative's Transmission and/or Distribution System, as applicable. All costs required to effectuate such disconnection shall be borne by the terminating Party, unless such termination resulted from the non-terminating Party’s Default of this Agreement or such non-terminating Party otherwise is responsible for these costs under this Agreement.

3.3.5 The termination of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination.

3.3.6 The provisions of this article shall survive termination or expiration of this Agreement.

3.4 Temporary Disconnection Temporary disconnection shall continue only for so long as reasonably necessary under Good Utility Practice.

3.4.1 Emergency Conditions -- "Emergency Condition" shall mean a condition or situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (2) that, in the case of the Cooperative, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to the Transmission or Distribution System, the Cooperative's Interconnection Facilities; or (3) that, in the case of the Interconnection Customer, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to, the Small Generating Facility or the Interconnection Customer's Interconnection Facilities. Under Emergency Conditions, the Cooperative may

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immediately suspend interconnection service and temporarily disconnect the Small Generating Facility. The Cooperative shall notify the Interconnection Customer promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Interconnection Customer's operation of the Small Generating Facility. The Interconnection Customer shall notify the Cooperative promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Cooperative's Transmission and/or Distribution System. To the extent information is known, the notification shall describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action.

3.4.2 Routine Maintenance, Construction, and Repair The Cooperative may interrupt interconnection service or curtail the output of the Small Generating Facility and temporarily disconnect the Small Generating Facility from the Cooperative's Transmission or Distribution System when necessary for routine maintenance, construction, and repairs on the Cooperative's Transmission or Distribution System. The Cooperative shall provide the Interconnection Customer with five Business Days notice prior to such interruption. The Cooperative shall use Reasonable Efforts to coordinate such reduction or temporary disconnection with the Interconnection Customer.

3.4.3 Forced Outages During any forced outage on the Cooperative’s system, the Cooperative may suspend interconnection service to effect immediate repairs on the Cooperative's Transmission and/or Distribution System. The Cooperative shall use Reasonable Efforts to provide the Interconnection Customer with prior notice. If prior notice is not given, the Cooperative shall, upon request, provide the Interconnection Customer written documentation after the fact explaining the circumstances of the disconnection.

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3.4.4 Adverse Operating Effects The Cooperative shall notify the Interconnection Customer as soon as practicable if, based on Good Utility Practice, operation of the Small Generating Facility may cause disruption or deterioration of service to other customers served from the electric system, or if operating the Small Generating Facility could cause damage to the Cooperative's Transmission and/or Distribution System. Supporting documentation used to reach the decision to disconnect or Derate shall be provided to the Interconnection Customer upon request. If, after notice, the Interconnection Customer fails to remedy the adverse operating effect within a reasonable time, the Cooperative may disconnect or Derate the Small Generating Facility and, at its option, terminate this Agreement. The Cooperative shall provide the Interconnection Customer with five Business Day notice of such disconnection, Deration and/or termination, unless the provisions of article 3.4.1 apply.

3.4.5 Modification of the Small Generating Facility The Interconnection Customer must receive written authorization from the Cooperative before making any change to the Small Generating Facility that may have a material impact on the safety or reliability of the Transmission and/or Distribution System. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Distributed Generation Practice. If the Interconnection Customer makes such modification without the Cooperative's prior written authorization, the latter shall have the right to temporarily or permanently disconnect the Small Generating Facility and/or terminate this Agreement.

3.4.6 Reconnection The Parties shall cooperate with each other to restore the Small Generating Facility, Interconnection Facilities, and the Cooperative's Transmission and/or Distribution System (as applicable) to their normal operating state as soon as reasonably practicable following a temporary disconnection.

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Article 4. Cost Responsibility for Interconnection Facilities and Distribution Upgrades

4.1 Interconnection Facilities

4.1.1 The Interconnection Customer shall pay for the cost of the Interconnection Facilities itemized in Exhibit 2 of this Agreement. The Cooperative shall provide a best estimate cost, including overheads, for the purchase and construction of its Interconnection Facilities and provide a detailed itemization of such costs. Costs associated with Interconnection Facilities may be shared with other entities that may benefit from such facilities by agreement of the Interconnection Customer, such other entities, and the Cooperative. In the event the Interconnection Customer sufficiently demonstrates to the Cooperative’s satisfaction that there are benefits to the Cooperative’s system resulting from the system and/or Network Upgrades, the Interconnection Customer shall be entitled to a credit, or reduction, in the Interconnection Customer’s share of the cost of the Interconnection Facilities; provided, however, that the amount of said credit or reduction agreed upon between the Interconnection Customer and the Cooperative shall be subject to the receipt of prior Commission approval. The amount of this credit or reduction in the Interconnection Customer’s share of the cost of the Interconnection Facilities shall be set forth in Exhibit 2 of this Agreement.

4.1.2 The Interconnection Customer shall be responsible for its share of all reasonable expenses, including overheads, associated with (1) owning, operating, maintaining, repairing, and replacing its own Interconnection Facilities, and (2) operating, maintaining, repairing, and replacing the Cooperative's Interconnection Facilities.

4.1 Distribution Upgrades The Cooperative shall design, procure, construct, install, and own the Distribution Upgrades described in Exhibit 6 of this Agreement. If the Cooperative and the Interconnection Customer agree, the Interconnection Customer may construct Distribution Upgrades that are located on land owned by the Interconnection Customer. The actual cost of the Distribution Upgrades, including overheads, shall be directly assigned to the Interconnection Customer.

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4.3 Queue Position As provided in the Policies and Procedures, the Cooperative shall assign a Queue Position based upon the date- and time-stamp of the Interconnection Request. The Queue Position of each Interconnection Request will be used to determine the cost responsibility for the Upgrades necessary to accommodate the interconnection. The Cooperative shall maintain a single queue per geographic region. At the Cooperative’s option, Interconnection Requests may be studied serially or in clusters for the purpose of the system impact study.

Article 5. Cost Responsibility for Network Upgrades

5.1 Applicability No portion of this article 5 shall apply unless the interconnection of the Small Generating Facility requires Network Upgrades.

5.2 Network Upgrades The Cooperative shall design, procure, construct, install, and own the Network Upgrades described in Exhibit 6 of this Agreement. If the Cooperative and the Interconnection Customer agree, the Interconnection Customer may construct Network Upgrades that are located on land owned by the Interconnection Customer. Unless the Cooperative elects at its discretion to pay for Network Upgrades, the actual cost of the Network Upgrades, including overheads, shall be borne initially by the Interconnection Customer.

Article 6. Billing, Payment, Milestones, and Financial Security

6.1 Billing and Payment Procedures and Final Accounting

6.1.1 The Cooperative shall bill the Interconnection Customer for the design, engineering, construction, and procurement costs of Interconnection Facilities and Upgrades contemplated by this Agreement on a monthly basis, or as otherwise agreed by the Parties in writing. The Interconnection Customer shall pay each bill within 30 calendar days of receipt, or as otherwise agreed to by the Parties in writing.

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6.1.2 Within three months of completing the construction and installation of the Cooperative's Interconnection Facilities and/or Upgrades described in the Exhibits to this Agreement, the Cooperative shall provide the Interconnection Customer with a final accounting report of any difference between (1) the Interconnection Customer's cost responsibility for the actual cost of such facilities or Upgrades, and (2) the Interconnection Customer's previous aggregate payments to the Cooperative for such facilities or Upgrades. If the Interconnection Customer's cost responsibility exceeds its previous aggregate payments, the Cooperative shall invoice the Interconnection Customer for the amount due and the Interconnection Customer shall make payment to the Cooperative within 30 calendar days. If the Interconnection Customer's previous aggregate payments exceed its cost responsibility under this Agreement, the Cooperative shall refund to the Interconnection Customer an amount equal to the difference within 30 calendar days of the final accounting report.

6.2 Milestones The Parties shall agree on milestones for which each Party is responsible and list them in Exhibit 4 of this Agreement. A Party's obligations under this provision may be extended by written agreement. If a Party anticipates that it will be unable to meet a milestone for any reason other than a Force Majeure Event, it shall immediately notify the other Party of the reason(s) for not meeting the milestone and (1) propose the earliest reasonable alternate date by which it can attain this and future milestones, and (2) requesting appropriate amendments to Exhibit 4. The Party affected by the failure to meet a milestone shall not unreasonably withhold agreement to such an amendment unless (1) it will suffer material uncompensated economic or operational harm from the delay, or (2) it has reason to believe that the delay in meeting the milestone is intentional or unwarranted notwithstanding the circumstances explained by the Party proposing the amendment.

6.3 Financial Security Arrangements At least 20 Business Days prior to the commencement of the design, procurement, installation, or construction of any discrete portion of the Cooperative's Interconnection Facilities and Upgrades, the Interconnection Customer shall provide the Cooperative, at

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the Interconnection Customer's option, either a guarantee, a surety bond or a letter of credit. Such security for payment shall be in an amount sufficient to cover the costs for constructing, designing, procuring, and installing the applicable portion of the Cooperative's Interconnection Facilities and Upgrades and shall be reduced on a dollar- for-dollar basis for payments made to the Cooperative under this Agreement during its term. In addition:

6.3.1 The guarantee must be made by an entity that meets the creditworthiness requirements of the Cooperative, and contain terms and conditions that guarantee payment of any amount that may be due from the Interconnection Customer, up to an agreed-to maximum amount.

6.3.2 The letter of credit or surety bond must be issued by a financial institution or insurer reasonably acceptable to the Cooperative and must specify a reasonable expiration date.

Article 7. Assignment, Liability, Indemnity, Force Majeure, Consequential Damages, and Default

7.1 Assignment This Agreement may be assigned by either Party upon 15 Business Days prior written notice and opportunity to object by the other Party; provided that:

7.1.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement, provided that the Interconnection Customer promptly notifies the Cooperative of any such assignment;

7.1.2 The Interconnection Customer shall have the right to assign this Agreement, without the consent of the Cooperative, for collateral security purposes to aid in providing financing for the Small Generating Facility, provided that the Interconnection Customer will promptly notify the Cooperative of any such assignment.

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7.1.3 Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Interconnection Customer. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed.

7.2 Limitation of Liability Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from any act or omission in its performance of this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special, consequential, or punitive damages, except as authorized by this Agreement.

7.3 Indemnity 7.3.1 This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in article 7.2.

7.3.2 The Parties shall at all times indemnify, defend, and hold the other Party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party.

7.3.3 If an indemnified person is entitled to indemnification under this article as a result of a claim by a third party, and the indemnifying Party fails, after notice and reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim.

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7.3.4 If an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery.

7.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party.

7.4 Consequential Damages Other than as expressly provided for in this Agreement, neither Party shall be liable under any provision of this Agreement for any losses, damages, costs or expenses for any special, indirect, incidental, consequential, or punitive damages, including but not limited to loss of profit or revenue, loss of the use of equipment, cost of capital, cost of temporary equipment or services, whether based in whole or in part in contract, in tort, including negligence, strict liability, or any other theory of liability; provided, however, that damages for which a Party may be liable to the other Party under another agreement will not be considered to be special, indirect, incidental, or consequential damages hereunder.

7.5 Force Majeure

7.5.1 As used in this article, a Force Majeure Event shall mean "any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment, any order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or intentional wrongdoing."

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7.5.2 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (Affected Party) shall promptly notify the other Party, either in writing or via the telephone, of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be mitigated by the use of Reasonable Efforts. The Affected Party will use Reasonable Efforts to resume its performance as soon as possible.

7.6 Default

7.6.1 No Default shall exist where such failure to discharge an obligation (other than the payment of money) is the result of a Force Majeure Event as defined in this Agreement or the result of an act or omission of the other Party. Upon a Default, the non-defaulting Party shall give written notice of such Default to the defaulting Party. Except as provided below, the defaulting Party shall have 60 calendar days from receipt of the Default notice within which to cure such Default; provided however, if such Default is not capable of cure within 60 calendar days, the defaulting Party shall commence such cure within 20 calendar days after notice and continuously and diligently complete such cure within six months from receipt of the Default notice; and, if cured within such time, the Default specified in such notice shall cease to exist.

7.6.2 If a Default is not cured as provided in this article, or if a Default is not capable of being cured within the period provided for herein, the non-defaulting Party shall have the right to terminate this Agreement by written notice at any time until cure occurs, and be relieved of any further obligation hereunder and, whether or not that Party terminates this Agreement, to recover from the defaulting Party all amounts due hereunder, plus all other damages and remedies to which it is entitled at law or in equity. The provisions of this article will survive termination of this Agreement.

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7.6.3 Notwithstanding anything in this Agreement to the contrary, in the event of any Default by the Interconnection Customer that the Cooperative believes may have a material impact on the safety or reliability of the Transmission and/or Distribution System or that may otherwise cause an Emergency Condition or endanger life or property, the Cooperative shall have the immediate right to terminate this Agreement. In that case, the Cooperative shall have the right to recover from the defaulting Party all amounts due hereunder, plus all other damages and remedies to which it is entitled at law or in equity. The provisions of this article will survive termination of this Agreement.

Article 8. Insurance

8.1 The Interconnection Customer shall, at its own expense, maintain in force general liability insurance without any exclusion for liabilities related to the interconnection undertaken pursuant to this Agreement. The amount of such insurance shall be sufficient to insure against all reasonably foreseeable direct liabilities given the size and nature of the generating equipment being interconnected, the interconnection itself, and the characteristics of the system to which the interconnection is made. The Interconnection Customer shall obtain additional insurance only if necessary as a function of owning and operating a generating facility. Such insurance shall be obtained from an insurance provider authorized to do business in the State where the interconnection is located. Certification that such insurance is in effect shall be provided upon request of the Cooperative, except that the Interconnection Customer shall show proof of insurance to the Cooperative no later than ten Business Days prior to the anticipated commercial operation date. An Interconnection Customer of sufficient credit-worthiness may propose to self-insure for such liabilities, and such a proposal shall not be unreasonably rejected.

8.2 The Cooperative agrees to maintain general liability insurance or self-insurance consistent with the Cooperative’s commercial practice. Such insurance or self-insurance shall not exclude coverage for the Cooperative's liabilities undertaken pursuant to this Agreement.

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8.3 The Parties further agree to notify each other whenever an accident or incident occurs resulting in any injuries or damages that are included within the scope of coverage of such insurance, whether or not such coverage is sought.

Article 9. Confidentiality

9.1 Confidential Information shall mean any confidential and/or proprietary information provided by one Party to the other Party that the Party claiming confidentiality believes, in good faith contains trade secrets or other confidential research, development, commercial, customer usage, financial, vendor or bid information, the unpermitted disclosure or misuse of which could reasonably cause cognizable harm to the Party claiming confidentiality (“Confidential Information”). In providing the Confidential Information, the Party claiming confidentiality shall clearly mark or otherwise designate the information as "Confidential." Notwithstanding the above, all design, system or operating specifications, and metering data provided by or to the Interconnection Customer shall be deemed Confidential Information regardless of whether it is clearly marked or otherwise designated as such. In addition, as a condition to providing the Confidential Information, the Party claiming confidentiality may require the other Party to execute a confidentiality or protective agreement on terms mutually acceptable to the Parties setting forth the terms and conditions of the confidentiality arrangement.

9.2 Notwithstanding the above, Confidential Information does not include information in the public domain, required to be publicly submitted or divulged by Governmental Authorities (after notice to the other Party and after exhausting any opportunity to oppose such publication or release), or necessary to be divulged in an action to enforce this Agreement. Each Party receiving Confidential Information shall hold such information in confidence and shall not disclose it to any third party nor to the public without the prior written authorization from the Party providing that information, except to fulfill obligations under this Agreement, or to fulfill legal or regulatory requirements.

9.2.1 Each Party shall employ at least the same standard of care to protect Confidential Information obtained from the other Party as it employs to protect its own Confidential Information.

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9.2.2 Each Party is entitled to equitable relief, by injunction or otherwise, to enforce its rights under this provision to prevent the release of Confidential Information without bond or proof of damages, and may seek other remedies available at law or in equity for breach of this provision.

Article 10. Disputes

10.1 The Parties agree to attempt to resolve all disputes arising out of this Agreement according to the provisions of this Article 10.

10.2 In the event of a dispute, either Party shall provide the other Party with a written Notice of Dispute. Such Notice shall describe in detail the nature of the dispute.

10.3 If the dispute has not been resolved within 10 Business Days after receipt of the Notice, either Party shall have the right to request that the Commission serve as an arbiter of last resort. In such an event, the Commission will use an informal expedited process to resolve the dispute within 30 days of the date of the request. In doing so, the Commission shall have the right to authorize its Chairman, or his/her designee (which designee may be another Commissioner, a member of the Commission staff, a Commission hearings officer, or a Commission hired consultant) to take any such action on behalf of the Commission, in consultation with other Commissioners and Commission staff. There shall be no right to hearing or appeal from this informal expedited dispute resolution process.

10.4 Notwithstanding the above, each Party also has the option of availing itself of formal relief with the Commission, pursuant to the Commission’s applicable Rules of Practice and Procedure, Hawaii Administrative Rules, Chapter 6-61.

10.5 Each Party agrees to conduct all negotiations in good faith and will be responsible for one-half each of any costs paid to neutral third parties.

10.6 If neither Party elects to seek assistance from the Commission, or if the attempted dispute resolution fails, then either Party may exercise whatever rights and remedies it may have in equity or law consistent with the terms of the Cooperative’s Distributed Generation Interconnection Policies and Procedures.

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Article 11. Taxes

11.1 The Parties agree to follow all applicable local state and federal tax laws and regulations, consistent with Internal Revenue Service requirements.

11.2 Each Party shall cooperate with the other to maintain the other Party's tax status. Nothing in this Agreement is intended to adversely affect the Cooperative's tax-exempt status with respect to the issuance of bonds including, but not limited to, local furnishing bonds.

Article 12. Miscellaneous

12.1 Governing Law, Regulatory Authority, and Rules The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Hawaii (i.e., where the Point of Interconnection is located), without regard to its conflicts of law principles. This Agreement is subject to all Applicable Laws and Regulations. Each Party expressly reserves the right to seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a Governmental Authority.

12.2 Amendment The Parties may amend this Agreement by a written instrument duly executed by both Parties.

12.3 No Third-Party Beneficiaries This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, their successors in interest and where permitted, their assigns.

12.4 Waiver

12.4.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party.

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12.4.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, duty of this Agreement. Termination or default of this Agreement for any reason by Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Cooperative. Any waiver of this Agreement shall, if requested, be provided in writing.

12.5 Entire Agreement This Agreement, including all Exhibits, constitutes the entire agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Agreement. There are no other agreements, representations, warranties, or covenants which constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

12.6 Multiple Counterparts This Agreement may be executed in two or more counterparts, each of which is deemed an original but all of which shall constitute one and the same instrument.

12.7 No Partnership This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.

12.8 Severability If any provision or portion of this Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other Governmental Authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of this Agreement shall remain in full force and effect.

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12.9 Security Arrangements Infrastructure security of electric system equipment and operations and control hardware and software is essential to ensure day-to-day reliability and operational security. In recognition of this, the Parties agree to comply with the recommendations offered by the President's Critical Infrastructure Protection Board and, eventually, best practice recommendations from the electric reliability authority.

12.10 Environmental Releases Each Party shall notify the other Party, first orally and then in writing, of the release of any hazardous substances, any asbestos or lead abatement activities, or any type of remediation activities related to the Small Generating Facility or the Interconnection Facilities, each of which may reasonably be expected to affect the other Party. The notifying Party shall (1) provide the notice as soon as practicable, provided such Party makes a good faith effort to provide the notice no later than 24 hours after such Party becomes aware of the occurrence, and (2) promptly furnish to the other Party copies of any publicly available reports filed with any governmental authorities addressing such events.

12.11 Subcontractors Nothing in this Agreement shall prevent a Party from utilizing the services of any subcontractor as it deems appropriate to perform its obligations under this Agreement; provided, however, that each Party shall require its subcontractors to comply with all applicable terms and conditions of this Agreement in providing such services and each Party shall remain primarily liable to the other Party for the performance of such subcontractor.

12.11.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made; provided, however, that in no event shall the Cooperative be liable for the actions or inactions of the Interconnection Customer or its subcontractors with respect to obligations of the Interconnection Customer under this Agreement. Any applicable obligation imposed by this Agreement upon the

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hiring Party shall be equally binding upon, and shall be construed as having application to, any subcontractor of such Party.

12.11.2 The obligations under this article will not be limited in any way by any limitation of subcontractor’s insurance.

Article 13. Notices

13.1 General Unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement ("Notice") shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by certified first class mail, postage prepaid return receipt requested, to the person specified below:

If to the Interconnection Customer: Interconnection Customer: Attention: Address: City: State: Zip: Phone: Fax:

If to the Cooperative: Cooperative: Kauai Island Utility Cooperative Attention: Address: 4463 Pahe’e Street, Suite 1 City: Lihue State: Hawaii Zip: 96766-2032 Phone: 808-246-4300 Fax:

Notwithstanding the above, all notices, demands and other communications which are required or which may be given under or in connection with this Agreement shall be in writing and shall be deemed to have been duly given and received when delivered in person or, if mailed, three (3) Business Days after being deposited in the United States mail and postmarked, certified or registered mail, postage prepaid, or, if by facsimile, the Business Day following the facsimile.

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13.2 Billing and Payment Billings and payments shall be sent to the addresses set out below:

Interconnection Customer: Attention: Address: City: State: Zip:

Cooperative: Kauai Island Utility Cooperative Attention: Accounting Address: 4463 Pahe’e Street, Suite 1 City: Lihue State: Hawaii Zip: 96766-2032 Phone: 808-246-4300 Fax:

13.3 Alternative Forms of Notice Any notice or request required or permitted to be given by either Party to the other and not required by this Agreement to be given in writing may be so given by telephone, facsimile or e-mail to the telephone numbers and e-mail addresses set out below:

If to the Interconnection Customer: Interconnection Customer: Attention: Address: City: State: Zip: Phone: Fax:

If to the Cooperative: Cooperative: Kauai Island Utility Cooperative Attention: Address: 4463 Pahe’e Street, Suite 1 City: Lihue State: Hawaii Zip: 96766-2032 Phone: 808-246-4300 Fax:

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13.4 Designated Operating Representative The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the administration of this Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party’s facilities.

Interconnection Customer’s Operating Representative:

Interconnection Customer: Attention: Address: City: State: Zip: Phone: Fax:

Cooperative’s Operating Representative:

Name: Address: 4463 Pahe’e Street, Suite 1 City: Lihue State: Hawaii Zip: 96766-2032 Phone: 808-246-4300 Fax:

13.5 Changes to the Notice Information Either Party may change this information by giving five Business Days written notice prior to the effective date of the change.

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Article 14. Signatures

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives.

For the Cooperative: KAUAI ISLAND UTILITY COOPERATIVE

Signature:

Name: Michael V. Yamane , P.E

Title: Chief of Operations

Date:

For the Interconnection Customer

Signature:

Name:

Title:

Date:

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Exhibit 1

GLOSSARY OF TERMS

Allowed Net Capacity - The maximum electrical output of the Interconnection Customer’s Small Generating Facility in Megawatts (MW), which is used by the Cooperative for establishing a maximum instantaneous MW output from the Interconnection Customer’s Small Generating Facility for planning and operating the Cooperative’s system.

Applicable Laws and Regulations – All duly promulgated applicable federal, state and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any Governmental Authority.

Business Day – Monday through Friday, excluding Federal and State Holidays.

Commission – the Hawai’i Public Utilities Commission.

Cooperative – Kauai Island Utility Cooperative, which is the member-owned electric cooperative serving the island of Kauai.

Default – The failure of a breaching Party to perform or comply with any provisions in the Small Generator Interconnection Agreement.

Derate/Deration – Reduction of Allowed Net Capacity.

Distribution System – The Cooperative's facilities and equipment used to transmit electricity to ultimate usage points such as homes and industries directly from nearby generators or from interchanges with higher voltage transmission networks which transport bulk power over longer distances. The voltage levels at which Distribution Systems operate differ among areas.

Distribution Upgrades – The additions, modifications, and upgrades to the Cooperative's Distribution System at or beyond the Point of Interconnection to facilitate interconnection of the Small Generating Facility and render the transmission service necessary to effect the Interconnection Customer's wholesale sale of electricity in intrastate commerce. Distribution Upgrades do not include Interconnection Facilities.

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Good Distributed Generation Practice – Any of the practices, methods and acts engaged in or approved by a significant portion of the distributed generation industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Distributed Generation Practices is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Without limiting the generality of the above, Good Distributed Generation Practices shall at all times means actions in compliance with Applicable Laws and Regulations, the National Electric Safety Code, the American National Standards Institute, IEEE, Underwriter’s Laboratory, and Operating Requirements and other applicable national and state codes, standards and requirements, as well as to utilize reasonably best efforts to minimize the likelihood of any disturbance or other impact adversely affecting or impairing the system or equipment of KIUC from a safety, reliability and/or power quality standpoint.

Good Utility Practice – Any of the practices, methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region.

Governmental Authority – Any federal, state, local or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include the Interconnection Customer, the Cooperative, or any Affiliate thereof.

Page 260

Interconnection Customer – Any entity that proposes to interconnect its Small Generating Facility with the Cooperative's Transmission and/or Distribution System.

Interconnection Facilities – The Cooperative's Interconnection Facilities and the Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities include all facilities and equipment between the Small Generating Facility and the Point of Interconnection, including any modification, additions or upgrades that are necessary to physically and electrically interconnect the Small Generating Facility to the Cooperative's Transmission and/or Distribution System. Interconnection Facilities are sole use facilities and shall not include Distribution Upgrades or Network Upgrades.

Interconnection Request – The Interconnection Customer's request, in accordance with the Policies and Procedures, to interconnect a new Small Generating Facility, or to increase the capacity of, or make a Material Modification to the operating characteristics of, an existing Small Generating Facility that is interconnected with the Cooperative’s Transmission and/or Distribution System.

Material Modification – A modification that has a material impact on the cost or timing of any Interconnection Request.

NEM – Net Energy Metering

Network Upgrades – Additions, modifications, and upgrades to the Cooperative's Transmission and/or Distribution System required at or beyond the point at which the Small Generating Facility interconnects with the Cooperative’s Transmission and/or Distribution System to accommodate the interconnection of the Small Generating Facility with the Cooperative’s Transmission and/or Distribution System. Network Upgrades do not include Distribution Upgrades.

Operating Requirements – Any operating and technical requirements that may be applicable due to the control area, or the Cooperative's requirements, including those set forth in Kauai Island Utility Cooperative Small Generator Interconnection Agreement and/or the Policies and Procedures.

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Party or Parties – The Cooperative and the Interconnection Customer, either individually (Party) or together (Parties).

Point of Interconnection – The point where the Interconnection Facilities connect with the Cooperative's Transmission and/or Distribution System.

Policies and Procedures – The document titled Small Generator Interconnection Policies and Procedures (For Distributed Generation Facilities No Larger Than 20 MW).

Queue Position – The order of a valid Interconnection Request, relative to all other pending valid Interconnection Requests, that is established based upon the date and time of receipt of the valid Interconnection Request by the Cooperative.

Reasonable Efforts – With respect to an action required to be attempted or taken by a Party under the Small Generator Interconnection Agreement, efforts that are timely and consistent with Good Utility Practice or Good Distributed Generation Practice (as applicable) and are otherwise substantially equivalent to those a Party would use to protect its own interests.

Small Generating Facility – The Interconnection Customer's device for the production of electricity identified in the Interconnection Request, but shall not include the Interconnection Customer's Interconnection Facilities.

Transmission System – The facilities owned, controlled or operated by the Cooperative and used to transmit bulk power over longer distances at 69 kilovolts between usage points on the Distribution System. The voltage level at which the Transmission System operates is 57 kilovolts nominal.

Upgrades – The required additions and modifications to the Cooperative's Transmission and/or Distribution System at or beyond the Point of Interconnection. Upgrades may be Network Upgrades or Distribution Upgrades. Upgrades do not include Interconnection Facilities.

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Exhibit 2

DESCRIPTION AND COSTS OF THE SMALL GENERATING FACILITY, INTERCONNECTION FACILITIES AND METERING EQUIPMENT

Equipment, including the Small Generating Facility, Interconnection Facilities, and metering equipment shall be itemized and identified as being owned by the Interconnection Customer or the Cooperative. The Cooperative will provide a best estimate itemized cost, including overheads, of its Interconnection Facilities and metering equipment, and a best estimate itemized cost of the annual operation and maintenance expenses associated with its Interconnection Facilities and metering equipment.

Small Generating Facility Equipment and Interconnection Facilities Equipment Owned by the Interconnection Customer:

1. PV Modules («PanelCount») ; 2. Inverter: («InverterCount») «InverterModel»; and 3. AC/DC Disconnect Switch and other panels.

For further details regarding the above Equipment, refer to the plans attached hereto as Exhibit 3.

Cooperative Owned Interconnection Facilities or Metering Equipment: Not applicable. There are no Cooperative Owned Interconnection Facilities or Metering Equipment.

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Exhibit 3

ONE-LINE DIAGRAM DEPICTING THE SMALL GENERATING FACILITY, INTERCONNECTION FACILITIES, METERING EQUIPMENT, AND UPGRADES

System drawings inserted on following pages.

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Exhibit 4

MILESTONES

Parallel operation In-Service Date: ______N/A______

Critical milestones and responsibilities as agreed to by the Parties:

Milestone/Date Responsible Party

(1) ______N/A______

(2) ______

(3) ______

(4) ______

(5) ______

(6) ______

(7) ______

(8) ______

(9) ______

(10) ______

Agreed to by:

KAUAI ISLAND UTILITY COOPERATIVE [Insert name of Interconnection Customer]

By By

Name: Name:

Title: Title:

Date: Date:

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Exhibit 5

ADDITIONAL OPERATING REQUIREMENTS FOR THE COOPERATIVE'S TRANSMISSION AND/OR DISTRIBUTION SYSTEM NEEDED TO SUPPORT THE INTERCONNECTION CUSTOMER'S NEEDS

The Cooperative shall also provide requirements that must be met by the Interconnection Customer prior to initiating parallel operation and operations test criteria after connecting with the Cooperative's Transmission and/or Distribution System.

1. Interconnecting Customer’s standard operating procedures shall be subject to the Cooperative’s review and approval.

2. Interconnecting Customer shall not alter, modify or otherwise change any protective relay or control characteristics of the facility without KIUC approval.

3. Testing of operational criteria before and after parallel operation will be done in accordance with Good Utility Practice.

4. Inverter under frequency set points must be adjustable down to 57.0 Hz, 3 seconds and over frequency set points must be adjustable up to 62.5 Hz, 3 seconds.

5. Inverter overvoltage fast settings must be adjustable to 1.2 pu, 0.16 sec. and the overvoltage slow settings must be adjustable to 1.19 pu, 1.00sec.

6. Inverter undervoltage fast settings must be adjustable to 0.5pu, 0.16 sec. and the undervoltage slow settings must be adjustable to 0.51pu, 2.0 sec.

7. Interconnecting Customer must be willing and able to adjust the inverter trip settings given by KIUC as to preserve grid stability. These inverter requirements will have to be review and approved with KIUC Engineer during the commissioning phase before interconnection to the grid is allowed.

8. Interconnecting Customer shall not alter, modify or otherwise change any inverter settings without KIUC approval.

9. Interconnecting Customer must be willing and able to generate report of inverter activities based on request by KIUC within 30 days of request.

10. System shall not exceed IEEE 519 Standard Practices and Requirements for Harmonic Control in Electric Power Systems.

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Exhibit 6

COOPERATIVE'S DESCRIPTION OF ITS UPGRADES AND BEST ESTIMATE OF UPGRADE COSTS

The Cooperative shall describe Upgrades and provide an itemized best estimate of the cost, including overheads, of the Upgrades and annual operation and maintenance expenses associated with such Upgrades. The Cooperative shall functionalize Upgrade costs and annual expenses as either transmission or distribution related.

Not applicable. No Distribution Upgrades or Network Upgrades will be designed, procured, constructed, installed or owned by the Cooperative.

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Attachment 2

SMALL GENERATOR INTERCONNECTION REQUEST (Application Form)

KAUAI ISLAND UTILITY COOPERATIVE (KIUC):

Designated Contact Person:

Address: 4463 Pahee Street, Suite 1 Lihue, HI 96766

Telephone Number:

Fax:

E-Mail Address:

An Interconnection Request is considered complete when it provides all applicable and correct information required below. Per Section 1.5 of the Policies and Procedures, documentation of site control must be submitted with the Interconnection Request.

Processing Fee or Deposit:

If the Interconnection Request is submitted under the Fast Track Process, the non-refundable processing fee is $100.

If the Interconnection Request is submitted under the Study Process, whether a new submission or an Interconnection Request that did not pass the Fast Track Process, the Interconnection Customer shall submit to KIUC a deposit not to exceed $1,000 towards the cost of the feasibility study.

Interconnection Customer Information

Legal Name of the Interconnection Customer (or, if an individual, individual's name)

Name:

Contact Person:

Mailing Address:

City: State: Zip:

Facility Location (if different from above):

Telephone (Day): Telephone (Evening):

Interconnection Request 1

Page 268

Fax: E-Mail Address: Alternative Contact Information (if different from the Interconnection Customer)

Contact Name:

Title:

Address:

Telephone (Day): Telephone (Evening):

Fax: E-Mail Address:

Application is for: ______New Small Generating Facility ______Capacity addition to Existing Small Generating Facility

If capacity addition to existing facility, please describe:

Will the Small Generating Facility be used for any of the following?

Net Metering? Yes ___ No ___ (If yes, the customer must complete a KIUC Net Energy Metering Agreement) To Supply Power to the Interconnection Customer? Yes ___No ___ To Export Power to KIUC’s Grid? Yes ____ No ____

For installations at locations with existing electric service to which the proposed Small Generating Facility will interconnect, provide:

(Account Name (Existing Account Number*)

Contact Name:

Title:

Address:

Telephone (Day): Telephone (Evening):

Fax: E-Mail Address:

Requested Point of Interconnection:

Interconnection Request 2

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Interconnection Customer's Requested In-Service Date:

Small Generating Facility Information Provide the following information on the Small Generating Facility (not the Interconnection Facilities).

Energy Source: ___ Solar ___ Wind ___ Hydro ___ Hydro Type (e.g. Run-of-River):___ Diesel ___ Gas ___ Fuel Oil ___ Other (state type) ______

Prime Mover: Fuel Cell Recip Engine Gas Turb Steam Turb Microturbine PV Other

Type of Generator: ____Synchronous ____Induction ____ Inverter

Generator Nameplate Rating: ______kW (Typical) Generator Nameplate kVAR: ______

Interconnection Customer or Customer-Site Load: ______kW (if none, so state)

Typical Reactive Load (if known): ______

Maximum Physical Export Capability Requested: ______kW

List components of the Small Generating Facility equipment package that are currently certified:

Equipment Type Certifying Entity 1. 2. 3. 4. 5.

Is the prime mover compatible with the certified protective relay package? ____Yes ____No

Generator (or solar collector) Manufacturer, Model Name & Number: Version Number:

Nameplate Output Power Rating in kW: (Summer) ______(Winter) ______Nameplate Output Power Rating in kVA: (Summer) ______(Winter) ______

Individual Generator Power Factor Rated Power Factor: Leading: ______Lagging: ______

Total Number of Generators in wind farm to be interconnected pursuant to this

Interconnection Request 3

Page 270

Interconnection Request: ______Elevation: ______Single phase ___Three phase

Inverter Manufacturer, Model Name & Number (if used): ______

List of adjustable set points for the protective equipment or software: ______

Note: A completed Power Systems Load Flow data sheet must be supplied with the Interconnection Request.

Small Generating Facility Characteristic Data (for inverter-based machines)

Max design fault contribution current: Instantaneous or RMS?

Harmonics Characteristics:

Start-up requirements:

Small Generating Facility Characteristic Data (for rotating machines)

RPM Frequency: ______(*) Neutral Grounding Resistor (If Applicable): ______

Synchronous Generators:

Direct Axis Synchronous Reactance, Xd: ______P.U. Direct Axis Transient Reactance, X' d: ______P.U. Direct Axis Subtransient Reactance, X" d: ______P.U. Negative Sequence Reactance, X2: ______P.U. Zero Sequence Reactance, X0: ______P.U. KVA Base: ______Field Volts: ______Field Amperes: ______

Induction Generators:

Motoring Power (kW): ______2 I2 t or K (Heating Time Constant): ______Rotor Resistance, Rr: ______Stator Resistance, Rs: ______

Interconnection Request 4

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Stator Reactance, Xs: ______Rotor Reactance, Xr: ______Magnetizing Reactance, Xm: ______Short Circuit Reactance, Xd'': ______Exciting Current: ______Temperature Rise: ______Frame Size: ______Design Letter: ______Reactive Power Required In Vars (No Load): ______Reactive Power Required In Vars (Full Load): ______Total Rotating Inertia, H: ______Per Unit on kVA Base

Note: Please contact KIUC prior to submitting the Interconnection Request to determine if the specified information above is required.

Excitation and Governor System Data for Synchronous Generators Only

Provide appropriate IEEE model block diagram of excitation system, governor system and power system stabilizer (PSS) in accordance with the regional reliability council criteria. A PSS may be determined to be required by applicable studies. A copy of the manufacturer's block diagram may not be substituted.

Interconnection Facilities Information

Will a transformer be used between the generator and the point of common coupling? ___Yes ___No

Will the transformer be provided by the Interconnection Customer? ____Yes ____No

Transformer Data (If Applicable, for Interconnection Customer-Owned Transformer):

Is the transformer: ____single phase _____three phase? Size: ______kVA Transformer Impedance: ______% on ______kVA Base

If Three Phase: Transformer Primary: _____ Volts _____ Delta _____Wye _____ Wye Grounded Transformer Secondary: _____ Volts _____ Delta _____Wye _____ Wye Grounded Transformer Tertiary: _____ Volts _____ Delta _____Wye _____ Wye Grounded

Transformer Fuse Data (If Applicable, for Interconnection Customer-Owned Fuse):

(Attach copy of fuse manufacturer's Minimum Melt and Total Clearing Time-Current Curves)

Manufacturer: ______Type: ______Size: ______Speed: ______

Interconnection Request 5

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Interconnecting Circuit Breaker (if applicable):

Manufacturer: ______Type: ______Load Rating (Amps): ______Interrupting Rating (Amps): ______Trip Speed (Cycles): ______

Interconnection Protective Relays (If Applicable):

If Microprocessor-Controlled:

List of Functions and Adjustable Setpoints for the protective equipment or software:

Setpoint Function Minimum Maximum

1.

2.

3.

4.

5.

6.

If Discrete Components:

(Enclose Copy of any Proposed Time-Overcurrent Coordination Curves)

Manufacturer: Type: Style/Catalog No.: Proposed Setting: Manufacturer: Type: Style/Catalog No.: Proposed Setting: Manufacturer: Type: Style/Catalog No.: Proposed Setting: Manufacturer: Type: Style/Catalog No.: Proposed Setting: Manufacturer: Type: Style/Catalog No.: Proposed Setting:

Current Transformer Data (If Applicable):

(Enclose Copy of Manufacturer's Excitation and Ratio Correction Curves)

Manufacturer: Type: Accuracy Class: Proposed Ratio Connection: ____

Manufacturer: Type: Accuracy Class: Proposed Ratio Connection: ____

Interconnection Request 6

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Potential Transformer Data (If Applicable):

Manufacturer: Type: Accuracy Class: Proposed Ratio Connection: ____

Manufacturer: Type: Accuracy Class: Proposed Ratio Connection: ____

General Information

Enclose copy of site electrical one-line diagram showing the configuration of all Small Generating Facility equipment, current and potential circuits, and protection and control schemes. This one-line diagram must be signed and stamped by a licensed Professional Engineer if the Small Generating Facility is larger than 50 kW. Is One-Line Diagram Enclosed? ____Yes ____No

Enclose copy of any site documentation that indicates the precise physical location of the proposed Small Generating Facility (e.g., USGS topographic map or other diagram or documentation).

Proposed location of protective interface equipment on property (include address if different from the Interconnection Customer's address)

Enclose copy of any site documentation that describes and details the operation of the protection and control schemes. Is Available Documentation Enclosed? ___Yes ____No

Enclose copies of schematic drawings for all protection and control circuits, relay current circuits, relay potential circuits, and alarm/monitoring circuits (if applicable). Are Schematic Drawings Enclosed? ___Yes ____No

Applicant Signature

I hereby certify that, to the best of my knowledge, all the information provided in this Interconnection Request is true and correct.

For Interconnection Customer:

Signature: Date: Name: Title:

Interconnection Request 7

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Attachment 3

Certification Codes and Standards

IEEE1547 Standard for Interconnecting Distributed Resources with Electric Power Systems (including use of IEEE 1547.1 testing protocols to establish conformity)

UL 1741 Inverters, Converters, and Controllers for Use in Independent Power Systems

IEEE Std 929-2000 IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems

NFPA 70 (2002), National Electrical Code

IEEE Std C37.90.1-1989 (R1994), IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems

IEEE Std C37.90.2 (1995), IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers

IEEE Std C37.108-1989 (R2002), IEEE Guide for the Protection of Network Transformers

IEEE Std C57.12.44-2000, IEEE Standard Requirements for Secondary Network Protectors

IEEE Std C62.41.2-2002, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits

IEEE Std C62.45-1992 (R2002), IEEE Recommended Practice on Surge Testing for Equipment Connected to Low-Voltage (1000V and Less) AC Power Circuits

ANSI C84.1-1995 Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)

IEEE Std 100-2000, IEEE Standard Dictionary of Electrical and Electronic Terms NEMA MG 1-1998, Motors and Small Resources, Revision 3

IEEE Std 519-1992, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems

NEMA MG 1-2003 (Rev 2004), Motors and Generators, Revision 1

Certification Codes and Standards 1 Page 275

Attachment 4

Certification of Small Generator Equipment Packages

1.0 Small Generating Facility equipment proposed for use separately or packaged with other equipment in an interconnection system shall be considered certified for interconnected operation if (1) it has been tested in accordance with industry standards for continuous utility interactive operation in compliance with the appropriate codes and standards referenced below by any Nationally Recognized Testing Laboratory (NRTL) recognized by the United States Occupational Safety and Health Administration to test and certify interconnection equipment pursuant to the relevant codes and standards listed in Attachment 3 of the Policies and Procedures, (2) it has been labeled and is publicly listed by such NRTL at the time of the interconnection application, and (3) such NRTL makes readily available for verification all test standards and procedures it utilized in performing such equipment certification, and, with consumer approval, the test data itself. The NRTL may make such information available on its website and by encouraging such information to be included in the manufacturer’s literature accompanying the equipment.

2.0 The Interconnection Customer must verify that the intended use of the equipment falls within the use or uses for which the equipment was tested, labeled, and listed by the NRTL.

3.0 Certified equipment shall not require further type-test review, testing, or additional equipment to meet the requirements of this interconnection procedure; however, nothing herein shall preclude the need for an on-site commissioning test by the parties to the interconnection nor follow-up production testing by the NRTL.

4.0 If the certified equipment package includes only interface components (switchgear, inverters, or other interface devices), then an Interconnection Customer must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and is consistent with the testing and listing specified for this type of interconnection equipment.

5.0 Provided the generator or electric source, when combined with the equipment package, is within the range of capabilities for which it was tested by the NRTL, and does not violate the interface components' labeling and listing performed by the NRTL, no further design review, testing or additional equipment on the customer side of the point of common coupling shall be required to meet the requirements of this interconnection procedure.

Certification Codes and Standards 2 Page 276

6.0 An equipment package does not include equipment provided by the utility.

7.0 Any equipment package approved and listed in a state by that state’s regulatory body for interconnected operation in that state prior to the effective date of the Policies and Procedures shall be considered certified under the Policies and Procedures for use in that state.

Certification Codes and Standards 3 Page 277 Page 278 Page 279 Page 280 Page 281 Page 282 Page 283 Page 284 Page 285 DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

MANAGER’S REPORT No. 15-41

May 21, 2015

Re: Discussion and Possible Action to approve Utility Agreement No. 2217 for the Nawiliwili Road Improvements, Vicinity of Kaumuali’i Highway to Kanani Road, Project No. NH-058-1(006)

RECOMMENDATION: It is recommended the Board approve Utility Agreement No. 2217.

Further, Section 10 states indemnification language:

10. When applicable, at its own expense, the BOARD will be required to remove any of its underground facilities which it constructs, in the event the utility abandons the use of the facilities, unless the STATE consents in writing to allow abandonment in place. Notwithstanding any such consent by the STATE for abandonment in place, the BOARD agrees to be responsible for the removal costs and any costs of clean-up and remediation for any pollution or contamination caused by the facilities, if such action becomes necessary in the future. The BOARD further agrees to indemnify and hold harmless, the STATE, from any and all liabilities which may arise from the BOARD's acts or omissions relating to such pipelines or facilities.

BACKGROUND: The State Department of Transportation (DOT) anticipates starting construction of the subject project in May 2015. Within the construction scope of work to complete the road improvements, the State’s contractor must relocate and existing DOW facilities such as waterlines, blowoff, air release valve and appurtenances.

The DOT has requested the DOW to enter into the utility agreement.

The DOW has reservations with section 9 of the agreement, however, section 6 and 7 would very well apply regardless of the agreement.

Based on Deputy County Attorney review, DOW is comfortable recommending Board approval to assist the DOT with their project.

FUNDING: No funding is required. The State is funding the water facility work as stated in Utility Agreement No. 2217.

OPTIONS:

1) Not approve  Pros: DOW would not be subject to all conditions within the agreement.  Cons: DOT work will be delayed.

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 286 Manager’s Report No. 15-41 May 21, 2015 Page 2 of 2

Respectively submitted, Funding reviewed:

Dustin Moises, P.E. Marites Yano Construction Project Management Officer Waterworks Controller

CONCURRED:

Kirk Saiki, P.E. Manager and Chief Engineer

DM/ein

Attachment: Utility Agreement No. 2217

Mgrrp/May 2015/15-41/Discussion and Possible Action to approve Utility Agreement No. 2217 for the Nawiliwili Road Improvements, Vicinity of Kaumuali’i Highway to Kanani Road, Project No. NH-058-1(006) (5-21-15):ein

Page 287

2217

1st MAY

15 COUNTY OF KAUA'I, BOARD OF WATER

BOARD

NAWILIWILI ROAD IMPROVEMENTS, VICINITY OF KAUMUALII HIGHWAY TO KANANI ROAD, PROJECT NO. NH-058-1(006)

BOARD

BOARD

Page 288 115,216.71 3 2217

115,216.71 115,216.71

1

BOARD

MAY 15 BOARD

BOARD

Page 289 BOARD

BOARD

BOARD

BOARD

BOARD

Page 290 BOARD BOARD

BOARD

BOARD BOARD BOARD BOARD

BOARD

Page 291 COUNTY OF KAUA'I, BOARD OF WATER

County Attorney, County of Kaua'i

Page 292 Board

2. The State will notify the Board'sBoard project engineer _____30 day(s) prior to commencement of the relocation of saidBoard facilities by the State. The State estimates that it will complete its portion of the work within _____30 working days. Board

State after Board final inspection approval.

4. The records and accounts of the State,Board pertaining to the work performed under the terms of this Agreement, shall be retained for a period of not less than three (3) years from the date of the final payment of Federal funds to the State for said project and shall be available for inspection and audit by representatives of the Department of Transportation, State of Hawaii, and the United States Federal Highway Administration at the respective office of the State. Board

, removing, and restoring said facilities. Board

Page 293 EXHIBIT A

Page 294 EXHIBIT A

Page 295 EXHIBIT A

Page 296 EXHIBIT A

Page 297 EXHIBIT A

Page 298 STATE OF HAWAII DOT #-### DEPARTMENT OF TRANSPORTATION (HWY-RL #/##) HIGHWAYS DIVISION

UTILITY COST ESTIMATE FOR UTILITY AGREEMENT NO. 2217

Project: Nawiliwili Road Improvements, Lihue, Kauai______Utility Co.: __Kauai Department of Water______Prepared by: Brian Campbell (Bow Eng.)____ Date:_2-4-2015____ Project No.: _NH-058-1(006)______Checked by: Donald Smith (HWY-K)______Date:_3-4-2015____

UTILITY PAYMENT STANDARDS COMPARISON

STATE STANDARDS FEDERAL STANDARDS (FAPG Sec. 645.117) A. Work/material by Utility Company$ - and/or its Contractor

B. Work/material by State$ 115,216.71 and/or its Contractor

C. Total Cost of Utility Work (A+B)$ 115,216.71 $ 115,216.71 D. Less Deductions: 1. Depreciation$ - $ - 2. Salvage Value$ - $ - 3. Betterments$ - $ -

E. Total Deductions (D1+D2+D3)$ - $ -

F. Net Cost of Relocation (C minus E)$ 115,216.71 $ 115,216.71

G. Less Cost Sharing Arrangements: 1. $10,000 (only if required by$ - $ - H.R.S. Section 264-33, e.g., privately owned facilities within the highway right-of-way) 2. Amount for Extraordinary*$ - $ - Items referred to in Item J 3. Total (G1+G2)$ - $ -

H. Net Amount (F minus G3)$ 115,216.71 $ 115,216.71

I. State Share in Net Amount [ 100% ]$ 115,216.71 $ 115,216.71

J. State's Share for Extraordinary* Items$ - $ - which have been deleted from G2

K. State's Share in Total Cost of$ 115,216.71 $ 115,216.71 Utility Work (I+J) (Amount for Fed Par)

L. Utility's Share in Total Cost of $ - Utility Work (C minus K)

* Extraordinary Items are special improvements in which the State does not participate on the same basis, percentagewise. Attach a description.

ESTIMATED REIMBURSEMENT FEDERAL SHARE

Utility Company to State (B minus K) $ - $ 92,173.37 (K x Fed Par Rate) State to Utility Company (K minus B) $ -

Page 299 Engineer's Preliminary Detail Estimate Federal-Aid Project No. NH-058-1(006) Page 2

TYPE CODE: 43 - UTILITIES (Department of Water) Utility Agreement No. 2217 APPROX UNIT ITEM NO. ITEM UNIT AMOUNT QUANTITY PRICE

Potholing 5 EA $1,100.00 $5,500.00

8" Waterline 66 LF $200.00 $13,200.00

4" Waterline 19 LF $580.00 $11,020.00

4" Gate Valve 2EA $1,700.00 $3,400.00

Blowoff Valve 4EA $1,800.00 $7,200.00

1" ARV 1EA $1,400.00 $1,400.00

Vertical Blocks 6 EA $3,500.00 $21,000.00

Connect to Existing 4EA $4,000.00 $16,000.00

Testing/Chlorination 1 LS $5,200.00 $5,200.00

Remove Waterline 175 LF $27.00 $4,725.00

AC Patch 350 SF $17.00 $5,950.00

Sum of all DOW Items $94,595.00 Contingencies $4,729.75 Sub-total DOW Items $99,324.75

Construction Engineering $14,898.71 Construction Administration $993.25

Total Work/Material by the State and/or its Contractor $115,216.71

Total Work/Material by the Company and/or its Contractor $0.00

Total Cost of Relocation/Replacement $115,216.71

Less Deductions $0.00

Page 300 Engineer's Preliminary Detail Estimate Federal-Aid Project No. NH-058-1(006) Page 3

TYPE CODE: 43 - UTILITIES (Department of Water) Utility Agreement No. 2217 APPROX UNIT ITEM NO. ITEM UNIT AMOUNT QUANTITY PRICE Net Cost of Relocation $115,216.71

Less Cost Sharing Arrangements $0.00 (As Per Section 264-33 HRS)

Net Amount $115,216.71

State Share $115,216.71

Utility Share $0.00

Page 301 DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

MANAGER’S REPORT No. 15-42

May 21, 2015

Re: Proposed Revision of Board Policy No. 17, Payment of Communication Devices

RECOMMENDATION: It is recommended that the Board approve Option 1, the proposed Revisions of Board Policy No. 17

FUNDING: The funding portion is budgeted in two places as presented in the DOW’s proposed FY15-16 budget:

Water Utility/IT/Admin/ GL NO. 10-02-10-543-000 Communication Services Proposed 2015-2016 Budget $21,000 Water Utility/Operations/Pump/ GL NO. 10-40-50-543-000 Power/Pump/Communication Services Proposed 2015-2016 Budget $37,880 Total Expenditures $58,880

BACKGROUND: The Department of Water has found that the attached Board Policy No. 17 pertaining to the payment of telephone charges are obsolete. With the upgrade of new technology and wireless communication, the use of cellular telephones, mobile wifi, and ipads, is an essential part of conducting the business of the Department and should be considered as necessary equipment for those assigned one.

Prior to the FY 15-16 proposed budget process, the DOW with eight two (82) employees had seventy- one (71) Communication Devices. This includes thirty-nine (39) smart and basic cell phones, eleven (11) Ipads, sixteen (16) Mobile Hot Spots and Aircards, a Telemetry Broadband and a wireless router. Upon completion and review of inventory, the DOW has deactivated the following:  One (1) Basic Telephone  One (1) Ipad  Three (3) Mifi Hotspots

Below is a breakdown of the DOW’s current inventory with sixty-six (66) active devices:

Basic Telephones (15) Back Office Smart Telephones (8) 39 Employees Alarm Circuits (3) Raven (1) /MIFI (6) / Aircard (1) Total 34 Devices Basic Telephones (0) Front Office Smart Telephones (15) 43 Employees IPAD, 7 for Board (10) Non‐Branded EVDO (1) MIFI (6) Total 32 Devices

---4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766-5706--- Phone No. (808) 245-5400 – Administration FAX No. (808) 246-8628 – Engineering/Fiscal/Shop FAX No. (808) 245-5813Page 302

Manager’s Report No. 15-42 May 21, 2015 Page 2 of 2

The DOW is revisiting the baseline of the current contracts with the existing carriers as well as reevaluating the current standard operating procedure to ensure that the issuance, use, and any changes are documented.

The DOW’s Standard Operating Procedure (SOP) No. 42 was revised in May of 2003 by former Manager and Chief Engineer, Mr. Edward Tschupp. Along with SOP 42, SOP 54 was introduced by former Manager and Chief Engineer, Mr. David Craddick. The DOW is reexamining the details of the historical data. The DOW has found that the internal SOP is obsolete.

Revisiting the Board’s policy is important to ensure employee performance and detail expectations to address issues concerning the safety, security, and privacy of communication use.

The DOW are aware that both Honolulu Board of Water (BWS) along with Maui Department of Water (DWS) do not have a formal policy on the general procedure regarding the issuance of communication devices but, however; was left up to the discretion of the Manager or Division. With the Kaua'i County Administration, County cell phones alone are provided for the police and fire chiefs.

The amendment to the board policy creates a preliminary baseline for the DOW to incorporate and create a plan and formulize a new, up-to-date assignment and use of these departmental communication devices.

OPTIONS: Option 1 – Approve:

Pros: The DOW will have a set preliminary baseline for issuance of communication devices and to use the most up-to-date technology. The DOW will work to create a more detailed and structured SOP for staff.

Cons: This may leave dissatisfied employees benefiting with the current practice of their invoices paid in full including both business and personal benefit. The DOW employee assigned a communication device such as a cell phone would have to carry two (2).

Option II – Disapprove:

Pros: Status quo. Cons: Obsolete board policy.

Respectfully submitted,

Kirk Saiki, P.E. Manager and Chief Engineer

MJA/ein

Attachments: Proposed Board Policy No. 17

Mgrrp/May 2015/15-42/Proposed Revision of Board Policy No. 17, Payment of Communication Devices (05-21-15):ein

Page 303

BOARD OF WATER SUPPLY POLICY NO. 17

RE: Payment of Communication Telephone Charges Devices

Communication Devices, accessories and connections including, but not limited to cellular telephones, digital wireless phones, digital subscriber line (DSL), wireless routers, radio phones/walkie-talkies, telephone pagers, PDAs (personal digital assistants with wireless communications capabilities) or RIM (research in motion) wireless devices are an essential part of conducting the business of the Department and should be considered necessary equipment for those assigned one and used for business purposes only.

Effective the date of appointment, the Department shall pay communication telephone charges at the current plan rate Private Line Rate but not less than $12.40 for telephones and $10.50 for pagers plan reviewed and set forth by the Manager and Chief Engineer for the following positions or as directed by the Manager’s discretion:

1. Water Plants Overseer Manager and Chief Engineer 2. Water Service Supervisor III Deputy Manager-Engineer 3. District Water Chief of Operations 4. Lead Pipefitter Assistant Chief of Water Operations 5. Plant Electrician Water Service Supervisors 6. Public Relations and Assistant(s) 7. Employees who work out in the field (meter readers, inspectors electricians, operators, pipefitters, standby/after hour crews) 8. Division Heads (Construction Management, Engineering, Water Resources, Water Quality, Waterworks Controller)

APPROVED BY:

______Chairperson, Board of Water Supply Dated: May 21, 2015

Effective date: __ __

Bd. Gen./Bd. Policy No. 17 (05-21-15)

1 of 1 Page 304

Page 305 FISCAL REPORT: APRIL, 2015

MONTHLY BUDGET SUMMARY HIGHLIGHTS:

REVENUES:

 Total Revenue is 10% less than projection. Major revenue items below projection are: o Cumulative water sales revenue as of April is $156 thousand (K) less than projected. o FRC cumulative collections - (67%). o Revenue from Public Fire Protection – revised Year to Date (YTD) budget was adjusted to show revenue receipts at period 12 since this is a year entry. o Federal Grants, (80%). Components of this budget are: BAB subsidy and Proceeds from SRF loan forgiveness. Actual receipts of $327,878 are from BAB subsidy. o State Grants, (92%).

OPERATING EXPENSES:

 YTD Operating Expenses before depreciation and amortization is $15.8 million (M); it remains at 71% burn rate out of $22.3M YTD budget. o Employee Related Expenses –YTD expenses is $6.2M or 83% of YTD budget. o Contracts & Services – YTD expenses is $1.3M or 27% of $4.7M budget. o Exceptional Expenses – YTD expenses is $349K or 70% of $499K budget. This was a carry over budget from FY 2014 for 2 emergency repairs. Both repairs were completed. o Fuel & Utilities – YTD expenses is $2.7M or 81% of YTD budget. o Bulk Water Purchase - YTD expenses is $1.3M or 77% of YTD budget. o Office & Operating Supplies – YTD expenses is $561K or 53% of YTD budget. o Training, Travel & Meeting Expenses – YTD expenses is $95.3K or 44% of YTD budget. o YTD Depreciation & Amortization (non-cash expenses) is $6M.

NET OPERATING INCOME:

 YTD Net Operating Income before depreciation and amortization is $10.6M or $3.5M over projection. The net Operating Income was achieved because YTD actual expenses were 29% less than YTD budget.  YTD Net Operating Income is $4.6M after depreciation & amortization expenses of $6M.  Paid $4.39M YTD out of $4.4M annual Debt Principal Budget.

CAPITAL BUDGET:

 YTD Capital Projects: Water Utility Fund YTD expenses are $471.7K.  YTD Capital Projects: BAB Fund YTD expenses are $178K.  YTD Capital Projects: SRF Loan Fund YTD expenses are $1.91M.  YTD Capital expenses are $2.561M out of $36.062M YTD capital budget.

fiscal report 4/2015 Page 306 WATER CONSUMPTION - 3 YEARS COMPARATIVE CHART:

 April metered consumption posted 52mg higher from last year of the same month.  YTD metered consumption has finally gotten back up from negative 47mg last month to positive 5mg as of April, 2015.

OTHER FISCAL ONGOING ACTIVITIES/INITIATIVES:

 New Financial Accounting System (FAS) was implementation on July 1, 2014. We are on the 10th month of post implementation.  FY 2015 – 2016 Proposed Budget was submitted in April board meeting, deferred for May board meeting.  The department was approved by the Board to proceed with the initial procurement process for a new billing system or Customer Information System (CIS). Drafting RFP is in process. A proposed budget of $1.1M is included in the FY 2015 – 2016 budget for this project.  The department’s 2010 Water Rate Study ends on June 30, 2016. Review & Selection Committee was performed the review and evaluation of Statement of Qualifications (SOQ) received for professional services to conduct water rate study for the next 5 years. Three (3) qualified SOQ’s were ranked and a reference check is being conducted for the highest ranked consultant.  SOP No. 51 – Charges for Restoration of Water Service – Revision is being drafted to update the charges.

fiscal report 4/2015 Page 307 Department of Water, County of Kauai Monthly Budget Summary vs. Actual SUMMARY 4/30/2015

April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % I. OPERATING BUDGET

Revenue Water Sales $2,445,813.91 $2,445,813.91 $2,569,000.98 $123,187.07 $24,458,139.10 $24,301,806.03 ($156,333.07) (1%) Revenue from Public Fire Protection 165,803.50 Other Water Revenue 5,416.67 5,416.67 27,696.66 22,279.99 54,166.70 208,807.95 154,641.25 285% FRC-Facility Reserve Charge 83,333.33 83,333.33 23,000.00 (60,333.33) 833,333.30 277,000.00 (556,333.30) (67%) Federal Grants 250,092.24 166,666.66 (166,666.66) 1,666,666.60 327,878.61 (1,338,787.99) (80%) State Grants 127,500.00 127,500.00 7,970.59 (119,529.41) 1,275,000.00 103,045.17 (1,171,954.83) (92%) Capital Contributions 348,841.42 348,841.42 1,001,107.00 994,790.50 (6,316.50) (1%) Net Increase in Fair Value of Investments Investment Income 16,666.67 16,666.67 13,860.96 (2,805.71) 166,666.70 221,670.84 55,004.14 33% Gain or Loss on Disposal of Capital Assets 416.67 416.67 (416.67) 4,166.70 (4,860.42) (9,027.12) (217%) Gain or Loss from the Retirement of Debt Miscellaneous Revenues 355.08 355.08 14,960.43 14,960.43 Total Revenue 3,095,042.99 2,845,813.91 2,990,725.69 144,911.78 29,459,246.10 26,445,099.11 (3,014,146.99) (10%)

Employee-Related Expenses Salaries and Wages (includes Leaves & CTO) 433,578.56 441,188.56 362,944.10 78,244.46 4,418,452.86 3,474,422.74 944,030.12 21% Temporary Assignment 3,026.00 3,500.01 5,595.11 (2,095.10) 35,000.04 72,135.68 (37,135.64) (106%) Overtime 45,166.65 45,166.65 43,131.96 2,034.69 451,666.50 490,623.96 (38,957.46) (9%) Standby 24,127.99 21,378.00 12,297.00 9,081.00 213,780.00 137,575.55 76,204.45 36% FICA 38,758.56 39,340.76 30,035.18 9,305.58 392,243.28 292,064.57 100,178.71 26% Retirement Contribution 78,530.14 79,709.74 67,936.24 11,773.50 794,739.20 661,182.11 133,557.09 17% Life & Health Insurance 43,172.81 43,172.81 33,671.18 9,501.63 431,728.14 341,828.19 89,899.95 21% Workers Compensation Unemployment Compensation 1,250.00 1,250.00 1,250.00 12,500.00 12,500.00 100% Post Employment Benefits (OPEB) 73,666.67 73,666.67 77,019.43 (3,352.76) 736,666.66 746,748.64 (10,081.98) (1%) Total Employee-Related Expenses 741,277.38 748,373.20 632,630.20 115,743.00 7,486,776.68 6,216,581.44 1,270,195.24 17%

Contracts & Services Professional Services-General 186,832.80 214,832.80 29,848.00 184,984.80 2,197,328.08 513,683.34 1,683,644.74 77% Professional Services-Accounting & Auditing 9,770.50 9,770.50 9,770.50 97,705.00 71,000.00 26,705.00 27% Other Services-General 13,669.16 13,669.16 3,406.17 10,262.99 136,691.60 37,349.98 99,341.62 73% Other Services-Billing Costs 41,280.00 41,280.00 14,064.35 27,215.65 412,800.00 124,071.66 288,728.34 70% Public Relations-General 26,541.67 26,541.67 588.00 25,953.67 265,416.66 56,546.44 208,870.22 79% Procurement Advertising 833.33 833.33 2,769.92 (1,936.59) 8,333.30 2,933.14 5,400.16 65% Communication Services 10,504.99 10,504.99 8,490.59 2,014.40 105,049.90 90,555.55 14,494.35 14% Freight and Postage 2,041.66 2,041.66 280.22 1,761.44 20,416.60 3,257.11 17,159.49 84% Rentals and Leases 14,916.66 14,916.66 14,731.36 185.30 149,166.60 97,254.19 51,912.41 35% Insurance 30,000.00 30,000.00 30,000.00 300,000.00 5,738.41 294,261.59 98% County Service Charge 165,803.50 Repairs and Maintenance-Water System 24,166.66 61,666.66 46,266.32 15,400.34 541,666.60 74,514.77 467,151.83 86% Repairs and Maint-Non Water System 45,768.32 40,768.32 36,933.47 3,834.85 453,683.20 202,698.28 250,984.92 55% Total Contracts & Services 572,129.25 466,825.75 157,378.40 309,447.35 4,688,257.54 1,279,602.87 3,408,654.67 73%

Monthly Budget Summary vs. Actual 1 of 3 Report Format Created by: S. Nadatani 5/12/2015 4:46 PM

Page 308 Department of Water, County of Kauai Monthly Budget Summary vs. Actual SUMMARY 4/30/2015

April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % Exceptional Expenses FY2014 & FY2015 Kalaheo Emergency 499,215.00 238,958.98 260,256.02 52% FY 2015 Kilauea 110,387.28 (110,387.28) Total Exceptional Expenses 499,215.00 349,346.26 149,868.74 30%

Fuel & Utilities Utility Services 308,666.66 308,666.66 238,241.94 70,424.72 3,086,666.60 2,553,598.95 533,067.65 17% Fuel 17,379.16 17,379.16 10,823.32 6,555.84 173,791.60 96,372.43 77,419.17 45% Total Fuel & Utilities 326,045.82 326,045.82 249,065.26 76,980.56 3,260,458.20 2,649,971.38 610,486.82 19%

Bulk Water Purchase Bulk Water Purchase 172,860.50 172,860.50 133,350.18 39,510.32 1,728,605.00 1,323,421.89 405,183.11 23% Total Bulk Water Purchase 172,860.50 172,860.50 133,350.18 39,510.32 1,728,605.00 1,323,421.89 405,183.11 23%

Office & Operating Supplies Office Supplies 3,833.33 3,833.33 1,687.88 2,145.45 38,333.30 18,076.99 20,256.31 53% Operating Supplies 98,739.22 98,739.22 45,437.60 53,301.62 984,392.20 528,554.34 455,837.86 46% Books, Subscriptions and Dues 3,032.07 3,032.07 561.61 2,470.46 30,320.74 14,258.12 16,062.62 53% Books, Subscriptions and Dues - Board 100.00 100.00 100.00 1,000.00 296.00 704.00 70% Total Office & Operating Supplies 105,704.62 105,704.62 47,687.09 58,017.53 1,054,046.24 561,185.45 492,860.79 47%

Training, Travel & Meeting Expenses Training and Development 8,894.55 9,894.55 6,270.42 3,624.13 96,945.50 50,307.77 46,637.73 48% Travel and Per Diem 4,628.32 4,628.32 868.35 3,759.97 46,283.24 7,964.03 38,319.21 83% Travel and Per Diem - Board 1,724.16 1,724.16 32.00 1,692.16 17,241.60 2,016.62 15,224.98 88% Meeting Expense 3,983.31 3,983.31 1,390.00 2,593.31 39,833.10 30,492.40 9,340.70 23% Meeting Expense - Board 1,750.00 1,750.00 368.44 1,381.56 17,500.00 4,545.35 12,954.65 74% Total Training, Travel & Meeting Expenses 20,980.34 21,980.34 8,929.21 13,051.13 217,803.44 95,326.17 122,477.27 56%

Debt Service Interest Expense 341,268.42 341,268.41 365,825.85 (24,557.44) 3,412,684.18 3,345,406.56 67,277.62 2% Total Interest Expense 341,268.42 341,268.41 365,825.85 (24,557.44) 3,412,684.18 3,345,406.56 67,277.62 2%

Total Operating Expenses 2,280,266.33 2,183,058.64 1,594,866.19 588,192.45 22,347,846.28 15,820,842.02 6,527,004.26 29%

Net Operating Income (Loss) Before Depreciation & Amortization $814,776.66 $662,755.27 $1,395,859.50 $733,104.23 $7,111,399.82 $10,624,257.09 $3,512,857.27 49%

Depreciation & Amortization Depreciation 541,165.43 (541,165.43) 5,470,783.48 (5,470,783.48) Amortization 51,476.71 (51,476.71) 541,675.14 (541,675.14) Total Depreciation & Amortization 592,642.14 (592,642.14) 6,012,458.62 (6,012,458.62)

Net Operating Income (Loss) 814,776.66 662,755.27 803,217.36 (140,462.09) 7,111,399.82 4,611,798.47 2,499,601.35 35%

Monthly Budget Summary vs. Actual 2 of 3 Report Format Created by: S. Nadatani 5/12/2015 4:46 PM

Page 309 Department of Water, County of Kauai Monthly Budget Summary vs. Actual SUMMARY 4/30/2015

April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % Non Operating Proceeds 166,666.67 166,666.67 (166,666.67) 1,666,666.70 225,381.00 (1,441,285.70) (86%)

Transfers Out(In) to Other Funds

Debt Principal Payment 372,061.33 116,414.05 (116,414.05) 4,385,024.67 4,390,953.50 (5,928.83)

Net Proceeds (Expenditures) 609,382.00 829,421.94 686,803.31 (142,618.63) 4,393,041.85 446,225.97 (3,946,815.88) (90%)

II. CAPITAL BUDGET Capital Projects (See Attached for Details) 3,347,425.61 3,326,894.15 332,558.01 2,994,336.14 36,062,129.14 2,561,707.26 33,500,421.88 93%

Monthly Budget Summary vs. Actual 3 of 3 Report Format Created by: S. Nadatani 5/12/2015 4:46 PM

Page 310 Department of Water, County of Kauai Monthly Budget Summary vs. Actual SUMMARY 4/30/2015

April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % Capital Projects (See Attached for Details): Water Utility - Capital Projects (See Attached for Details) 789,767.61 746,832.46 61,713.80 685,118.66 8,421,564.44 471,409.43 7,950,155.01 94% FRC Special Trust Fund - Capital Projects (See Attached for Details) 382,137.56 382,137.56 382,137.56 3,821,375.56 3,821,375.56 100% BAB Fund - Capital Projects (See Attached for Details) 1,829,687.11 1,864,590.80 1,864,590.80 20,485,855.84 177,945.53 20,307,910.31 99% SRF Loan Fund - Capital Projects (See Attached for Details) 345,833.33 333,333.33 270,844.21 62,489.12 3,333,333.30 1,912,352.30 1,420,981.00 43%

Total Capital Projects (See Attached for Details) 3,347,425.61 3,326,894.15 332,558.01 2,994,336.14 36,062,129.14 2,561,707.26 33,500,421.88 93%

Monthly Budget Summary vs. Actual 1 of 1 Report Format Created by: S. Nadatani 5/13/2015 9:57 AM

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April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % Capital Projects (See Attached for Details): 10-00-00-604-000 WU-Contra Account to Journalize CIP-RandR 10-02-00-604-999 WU-IT-RandR Capital Purchases-- 138,191.67 138,191.67 138,191.67 1,381,916.70 8,455.16 1,373,461.54 99% 10-02-00-605-999 WU-IT-Expansion Capital Purchases-- 16,625.00 16,625.00 16,625.00 166,250.00 166,250.00 100% 10-10-00-605-999 WU-Qual-Expansion Capital Purchases 333.33 10-10-40-605-999 WU-Qual-Expansion Capital Purchases 6,000.00 6,000.00 100% 10-20-00-604-001 WU-Eng-ALLR-KW-07 Paua Valley Tank Repair 12,500.00 12,500.00 12,500.00 125,000.00 125,000.00 100% 10-20-00-604-005 WU-Eng-ALLR-Gate Valves-Hydrant Laterals, Poipu Rd 4,166.66 4,166.66 4,166.66 41,666.60 41,666.60 100% 10-20-00-604-006 WU-Eng-34%R-PLH-28 Hanamaulu Main (Hoohana Street) 4,250.00 4,250.00 4,250.00 42,500.00 42,500.00 100% 10-20-00-604-007 WU-Eng-ALLR-WK-11a Upper Wailua Houselots Main Rpl 20,833.33 20,833.33 20,833.33 208,333.30 208,333.30 100% 10-20-00-604-009 WU-Eng-ALLR-Hanapepe Stream Crossing 18,750.00 18,750.00 18,750.00 187,500.00 187,500.00 100% 10-20-00-604-011 WU-Eng-ALLR-Jelly Factory BP Station Rehab 16,666.66 16,666.66 16,666.66 166,666.60 166,666.60 100% 10-20-00-604-033 WU-Job 13-07- Koloa D Repairs 2,548.50 2,548.50 2,548.50 25,485.00 16,378.35 9,106.65 36% 10-20-00-604-108 WU-Eng-ALLR-06-01 KW-28 Renovate Kekaha Shaft 43,969.75 7,173.18 7,173.18 513,290.64 17,093.64 496,197.00 97% 10-20-00-604-121 WU-Eng-ALLR-02-17 H-01 Maka Ridge Tank to Kuhio Hw 775.75 10-20-00-604-129 WU-Eng-ALLR-11-10 8IN Halewili, Hwy50 to Haka Hale 916.66 916.66 916.66 9,166.60 7,343.10 1,823.50 20% 10-20-00-604-132 WU-Eng-ALLR-13-05 Kolo Rd Main Replacement 1,044.00 1,044.00 1,044.00 10,440.00 10,440.00 100% 10-20-00-604-135 WU-Eng-ALLR-12-04 HE-14 Eleele Booster Rehab 7,666.66 7,666.66 45,773.00 (38,106.34) 76,666.60 45,773.00 30,893.60 40% 10-20-00-604-136 WU-Eng-ALLR-HO-5 Weke-Anae-Mahimahi-Hee 6IN 8IN 5,029.50 60,354.00 60,354.00 100% 10-20-00-604-138 WU-Eng-69%R-11-07 HE-03 Hanapepe & Koloa Well MCC 8,863.91 8,863.91 15,940.80 (7,076.89) 88,639.10 69,796.30 18,842.80 21% 10-20-00-605-137 WU-Eng-ALLE-11-11 K-17 Kalaheo Surface Water Trtmt 30,233.00 30,233.00 100% 10-20-00-605-139 WU-Eng-ALLE-02-11 M-02 100K Tank & Pipeline Moloaa 125,200.00 125,200.00 100% 10-20-00-605-142 WU-Eng-ALLE-99-08 LO-07 Drill & Develop Omao Well 79,860.00 79,860.00 100% 10-21-00-604-029 WU-Cns-44%R-11-10 Yamada Tank Clearwell, Conn Pipe 183,333.33 183,333.33 183,333.33 1,833,333.30 1,833,333.30 100% 10-21-00-604-032 WU-Cns-ALLR-13-05 Kolo Road Main (Kilauea School) 108,333.33 108,333.33 108,333.33 1,083,333.30 1,083,333.30 100% 10-21-00-604-033 WU-Cns-ALLR-13-07, Koloa Well D Repairs 10-21-00-604-035 WU-Cns-ALLR-XX-YY, HE-14, Eleele Booster Rehab 29,166.67 29,166.67 29,166.67 291,666.70 291,666.70 100% 10-21-00-604-102 WU-Cns-30%R-10-01 Ani-01b Rd WL DOW-Princvl 83,333.33 83,333.33 83,333.33 833,333.30 833,333.30 100% 10-21-00-604-121 WU-Eng-ALLR-02-17 H-01 Maka Ridge Tank to Kuhio Hw 9,309.00 1,794.20 7,514.80 81% 10-21-00-604-126 WU-Cns-ALLR-02-19 Waipouli Main Replacement 200,725.00 200,725.00 100% 10-30-00-604-999 WU-Bill-RandR Capital Purchases 2,083.33 2,083.33 2,083.33 20,833.30 20,833.30 100% 10-40-00-604-999 WU-Ops-RandR Capital Purchases 72,469.58 72,469.58 72,469.58 704,280.76 304,775.68 399,505.08 57% 10-40-00-605-999 WU-Ops-Expansion Capital Purchases 7,916.66 7,916.66 7,916.66 99,581.64 99,581.64 100%

Total Capital Projects (See Attached for Details) 789,767.61 746,832.46 61,713.80 685,118.66 8,421,564.44 471,409.43 7,950,155.01 94%

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April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % Capital Projects (See Attached for Details): 20-20-00-605-006 FRC-Eng-66%E-PLH-28 Hanamaulu Main (Hoohana Street 8,250.00 8,250.00 8,250.00 82,500.00 82,500.00 100% 20-20-00-605-008 FRC-Eng-87%E-WK-13 Kapaa Town 8IN Main Replace 29,166.66 29,166.66 29,166.66 291,666.60 291,666.60 100% 20-20-00-605-010 FRC-Eng-ALLE-Wailua Homesteads 538 1.0 MG Tank 41,666.66 41,666.66 41,666.66 416,666.60 416,666.60 100% 20-20-00-605-016 FRC-Eng-ALLE-Poipu 1 MG Storage Tank 41,666.66 41,666.66 41,666.66 416,666.60 416,666.60 100% 20-20-00-605-017 FRC-Eng-ALLE-18IN Cane Haul Road Main 7,500.00 7,500.00 7,500.00 75,000.00 75,000.00 100% 20-20-00-605-018 FRC-Eng-ALLE--H-08 Hanalei Well 2 5,000.00 5,000.00 5,000.00 50,000.00 50,000.00 100% 20-20-00-605-104 FRC-Eng-ALLE-05-02 HW-12 Drill Wainiha-Haena Well 3,989.08 3,989.08 3,989.08 39,890.80 39,890.80 100% 20-20-00-605-117 FRC-Eng-ALLE-12-02 WK-23 UH Expmntal Storage Tank 2,236.00 2,236.00 2,236.00 22,360.00 22,360.00 100% 20-20-00-605-118 FRC-Eng-ALLE-04-08 WK-39 Drill Kpaa Homest Well 4 9,329.17 9,329.17 9,329.17 93,291.66 93,291.66 100% 20-21-00-605-029 FRC-Cns-56%E-11-10 Yamada Tank Clearwell, Conn Pip 233,333.33 233,333.33 233,333.33 2,333,333.30 2,333,333.30 100%

Total Capital Projects (See Attached for Details) 382,137.56 382,137.56 382,137.56 3,821,375.56 3,821,375.56 100%

Monthly Budget Summary vs. Actual 1 of 1 Report Format Created by: S. Nadatani 5/12/2015 4:49 PM

Page 313 Department of Water, County of Kauai Monthly Budget Summary vs. Actual 30 4/30/2015

April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % Capital Projects (See Attached for Details): 30-20-00-604-101 BAB-Eng-ALLR-10-01 Ani-01a Anini & Kalihiwai Rd 6- 166,600.00 166,600.00 100% 30-20-00-604-105 BAB-Eng-ALLR-09-01 K-01 Kalaheo 1111FT & 1222FT 412,149.00 412,149.00 100% 30-20-00-604-110 BAB-Eng-ALLR-11-04 LO-10 Lawai 6n8inch Main Rplcmn 29,655.00 5,967.45 23,687.55 80% 30-20-00-604-112 BAB-Eng-ALLR-11-02 PLH-01a Grove Farm Tanks 1 & 2 153,858.00 39,179.00 114,679.00 75% 30-20-00-604-114 BAB-Eng-ALLR-PLH-39a Lihue Baseyard Phase 1 30-20-00-604-115 BAB-Eng-ALLR-11-06 WK-01 Rehab Moelepe Tunnel 81,340.00 81,340.00 100% 30-20-00-605-104 BAB-Eng-ALLE-05-02 HW-12 Drill Wainiha-Haena Well 32,430.00 32,430.00 100% 30-20-00-605-116 BAB-Eng-ALLE-02-14 WK-08 Kapaa Homesteads Tank 54,039.00 54,039.00 100% 30-20-00-605-120 BAB-Cns-ALLE-02-06 WKK-15 Kilauea Tnk PuuPane Well 12,045.00 12,045.00 100% 30-20-00-605-125 BAB-Eng-98%E-02-01 Land for Kukuiolono Tank Site 182,775.00 182,775.00 100% 30-20-00-605-138 BAB-Eng-31%E-11-07 HE-03 Hanapepe & Koloa Well MCC 52,325.00 52,325.00 100% 30-20-00-605-139 BAB-Eng-ALLE-02-11 M-02 100K Tnk & Pipeline Moloaa 9,583.33 9,583.33 9,583.33 190,055.30 190,055.30 100% 30-20-00-605-140 BAB-Eng-ALLE-Koloa Well F Land Acquisition 4,166.66 4,166.66 4,166.66 41,666.60 41,666.60 100% 30-21-00-604-102 BAB-Cns-44%R-10-01 Ani-01b-Anini Rd WL DOW-Princvl 3,766.66 37,666.60 37,666.60 376,666.00 376,666.00 100% 30-21-00-604-107 BAB-Cns-ALLR-XX-YY KP-09-MCC Chlor KoloaWell16-A,E 116,666.66 116,666.66 116,666.66 1,166,666.60 1,166,666.60 100% 30-21-00-604-109 BAB-Cns-19%R-XX-YYLO-08LO-10-Koloa Al.-Piko, Lawai 22,166.66 22,166.66 22,166.66 221,666.60 221,666.60 100% 30-21-00-604-112 BAB-Cns-40%R-11-02 PLH-01a Grove Farm Tanks 1 - 2 66,666.66 66,666.66 66,666.66 666,666.60 666,666.60 100% 30-21-00-604-114 BAB-Cns-ALLR-XX-YY PLH-39a-Lihue Baseyard Imprvmt 583,333.00 583,333.00 583,333.00 5,840,436.84 5,840,436.84 100% 30-21-00-604-120 BAB-Cns-10%R-0206WKK15-Kilauea 466 Tnk Puu Pane W3 20,833.00 20,833.00 20,833.00 208,330.00 208,330.00 100% 30-21-00-604-121 BAB-Cns-ALLR-02-17 H-01 Maka Ridge Tank to Kuhio 410,376.00 132,799.08 277,576.92 68% 30-21-00-604-129 BAB-Cns-ALLR-11-10 8IN WL Halewili, Kaum to HHale 66,666.66 66,666.66 66,666.66 666,666.60 666,666.60 100% 30-21-00-604-131 BAB-Cns-ALLR-13-03 Lihue MIll Bridge Widening 151,027.00 151,027.00 100% 30-21-00-604-136 BAB-Cns-11%R-XX-YY H-05 Weke Anae Hee 6-8IN Mains 13,750.00 13,750.00 13,750.00 137,500.00 137,500.00 100% 30-21-00-605-102 BAB-Cns-56%E-10-01 Ani-01b-Anini Rd WL DOW-Princvl 154,000.00 154,000.00 154,000.00 1,540,000.00 1,540,000.00 100% 30-21-00-605-109 BAB-Cns-81%E-XX-YYLO-08LO-10Koloa Al.-Piko, Lawai 94,500.00 94,500.00 94,500.00 945,000.00 945,000.00 100% 30-21-00-605-110 BAB-Cns-ALLE-WK-08-Kapaa Homestead Tank (Ornellas) 234,174.91 234,174.91 234,174.91 2,341,749.10 2,341,749.10 100% 30-21-00-605-112 BAB-Cns-60%E-11-02 PLH-01a Grove Farm Tanks 1 - 2 100,000.00 100,000.00 100,000.00 1,000,000.00 1,000,000.00 100% 30-21-00-605-118 BAB-Cns-ALLE-WK-39-Kapaa Homestead Well No. 4 41,666.66 41,666.66 41,666.66 416,666.60 416,666.60 100% 30-21-00-605-120 BAB-Cns-ALLE-02-06 WKK-15 Kilauea Tnk PuuPane Well 186,496.25 187,500.00 187,500.00 1,875,000.00 1,875,000.00 100% 30-21-00-605-136 BAB-Cns-89%E-XX-YY H-05 Weke Anae Hee 6-8IN Mains 111,250.00 111,250.00 111,250.00 1,112,500.00 1,112,500.00 100%

Total Capital Projects (See Attached for Details) 1,829,687.11 1,864,590.80 1,864,590.80 20,485,855.84 177,945.53 20,307,910.31 99%

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Page 314 Department of Water, County of Kauai Monthly Budget Summary vs. Actual 60 4/30/2015

April FY 2015

Original Budget Revised Budget Actual Variance Revised YTD Budget YTD Actual *Variance Variance % Capital Projects (See Attached for Details): 60-20-00-605-143 SRF-Eng-11-13 PLH-03 DRILL & DEV HORIZONTAL WELLS 12,500.00 60-21-00-604-114 SRF-Cns-ALLR-X-YY PLH-39a-Lihue Baseyard Imprvmts 333,333.33 333,333.33 270,844.21 62,489.12 3,333,333.30 1,912,352.30 1,420,981.00 43%

Total Capital Projects (See Attached for Details) 345,833.33 333,333.33 270,844.21 62,489.12 3,333,333.30 1,912,352.30 1,420,981.00 43%

Monthly Budget Summary vs. Actual 1 of 1 Report Format Created by: S. Nadatani 5/12/2015 4:50 PM

Page 315 BILLED REVENUES COMPARATIVE REPORT As of April, FY 2013, 2014 & 2015

FY 2013 FY 2014 FY 2015 Cum. Inc (Dec) % Inc. (Dec.) July $ 2,346,892 $ 2,389,827 $ 2,509,308 $ 119,481 5.00% August $ 4,399,666 $ 4,846,625 $ 5,260,587 $ 413,962 8.54% September $ 6,828,224 $ 7,600,208 $ 7,985,071 $ 384,863 5.06% October $ 9,056,386 $ 9,747,266 $ 10,346,368 $ 599,102 6.15% November $ 11,423,911 $ 12,304,399 $ 12,776,067 $ 471,668 3.83% December $ 13,338,790 $ 14,213,889 $ 15,232,230 $ 1,018,341 7.16% January $ 16,163,728 $ 16,365,861 $ 17,516,998 $ 1,151,137 7.03% February $ 18,406,878 $ 18,231,858 $ 19,858,103 $ 1,626,245 8.92% March $ 20,193,748 $ 19,989,956 $ 22,109,442 $ 2,119,486 10.60% April $ 22,016,200 $ 21,982,692 $ 24,694,634 $ 2,711,942 12.34% May $ 23,983,717 $ 24,279,609 $ (24,279,609) -100.00% June $ 26,287,935 $ BILLED 26,814,116 REVENUES COMPARATIVE CHART $ (26,814,116) -100.00% As of April, FY 2013, 2014 & 2015 $30 M ** AFS error in$28 billing M AJE 288,133 $26 M $24 M $22 M $20 M $18 M FY 2013 $16 M $14 M FY 2014 $12 M FY 2015 $10 M $8 M $6 M $4 M $2 M $0 M

1 revenue comparison Page 316 CASH RECEIPTS COMPARATIVE REPORT As of April, FY 2013, 2014 & 2015

FY 2013 FY 2014 FY 2015 Cum. Inc (Dec) % of Inc (Dec) July $ 1,964,915 $ 2,594,170 $ 2,288,104 $ (306,066) -12% August $ 4,275,571 $ 5,157,089 $ 4,704,550 $ (452,539) -9% September $ 6,370,743 $ 7,551,676 $ 7,539,105 $ (12,572) 0% October $ 9,006,500 $ 10,458,869 $ 10,008,958 $ (449,911) -4% November $ 11,197,586 $ 12,235,628 $ 11,856,591 $ (379,037) -3% December $ 13,332,029 $ 14,412,589 $ 14,469,704 $ 57,115 0% January $ 15,496,524 $ 16,359,772 $ 16,582,316 $ 222,544 1% February $ 17,978,954 $ 17,959,523 $ 18,764,382 $ 804,860 4% March $ 20,124,259 $ 20,040,053 $ 21,084,947 $ 1,044,893 5% April $ 22,135,604 $ 21,992,934 $ 23,582,827 $ 1,589,894 7% May $ 23,853,871 $ 23,982,830 $ (400,002) -2% June $ 25,268,445Cash Receipts$ 25,887,374Comparative Chart $ (2,592,679) -10% $28 M As of April, FY 2013, 2014 & 2015 $26 M $24 M $22 M $20 M $18 M $16 M $14 M FY 2013 $12 M FY 2014 $10 M $8 M FY 2015 $6 M $4 M $2 M $0 M

2 receipts Page 317 METERED CONSUMPTION (000 GALLONS) MONTHLY COMPARATIVE CHART As of April, FY 2013, 2014 & 2015 (expressed in thousands)

FY 2013 FY 2014 FY 2015 INC (DEC) July 436,238 391,161 343,770 -47,391 August 361,599 383,678 374,728 -8,950 September 415,176 416,687 346,777 -69,910 October 384,934 329,255 322,278 -6,977 November 398,863 345,049 320,209 -24,840 December 305,276 288,665 321,339 32,674 January 453,812 317,509 312,153 -5,356 February 366,974 286,045 325,040 38,995 March 323,359 261,867 306,207 44,340 April 334,995 301,084 353,456 52,372 May 335,320 348,355 -348,355 June MONTHLY388,313 CONSUMPTION COMPARATIVE327,741 CHART -327,741 For FY 2013, 2014 & 2015 ** AFS error in billing AJE 288,133 288,133 600,000 Adjustment 500,000

400,000 FY 2013 300,000 FY 2015 FY 2014 200,000

100,000

0

3 12 mo. consumption comp Page 318 YTD CONSUMPTION (000 GALLONS) COMPARATIVE REPORT As of April, FY 2013, 2014 & 2015 (expressed in thousands)

FY 2013 FY 2014 FY 2015 CUM. INC (DEC) % July 349,500 391,161 343,770 -47,391 -12% August 748,067 774,839 718,498 -56,341 -7% September 1,172,622 1,191,526 1,065,275 -126,251 -11% October 1,507,452 1,520,781 1,387,553 -133,228 -9% November 1,857,997 1,865,830 1,707,762 -158,068 -8% December 2,164,504 2,154,495 2,029,101 -125,394 -6% January 2,505,086 2,472,004 2,341,254 -130,750 -5% February 2,790,363 2,758,049 2,666,294 -91,755 -3% March 3,100,600 3,019,916 2,972,501 -47,415 -2% April 3,381,673 3,321,000 3,325,957 4,957 0% May 3,752,552 3,669,355 -3,669,355 4.500 June 4,084,598WATER CONSUMPTION3,997,096 COMPARATIVE CHART -3,997,096 4.000 As of April, FY 2013, 2014 & 2015 ** Billions AFS error in billing AJE 288,133 288,133 3.500 Adjustment 3.000

2.500

2.000 FY 2013 1.500 FY 2014 1.000 FY 2015

0.500

0.000

4 consumption (000 gallons) Page 319 DEPARTMENT OF WATER County of Kaua‘i “Water has no Substitute – Conserve it!”

PR SPECIALIST REPORT May 21, 2015

Press Releases & Connect CTY notifications There were no press releases sent out in regards to this month’s report. One Connect CTY message was sent on April 20th to notify the Kekaha community of a scheduled water shutdown, from 9 a.m. to 12 p.m., on April 21st. Affected customers were located on Hoomau Street, Elepaio Road, Ulili Road, Koae Road, Kaumualii Highway, Amakihi Road, Akekeke Road and Akiaola Road. A detailed map of the affected area was also posted on the DOW’s website, Facebook and Twitter pages.

Project WET for Source Water Protection Education Grant The Department continued to work on tasks to complete its grant contract with the Department of Health – Safe Drinking Water Branch by June 2015. A contract extension to December 2015 was requested and the Department awaits a response from DOH.

Preparations continued for four training workshops to be held in Hilo, Oahu and Molokai from June 8th to June 12th. Two volunteer Project WET facilitators will assist the PR Specialist in conducting these workshops. At the time of this report there were a total of 62 participants signed up to attend a workshop, with 23 additional participants on a waitlist for the Oahu workshop. The great response from Oahu has prompted a second workshop to be planned for some time in July.

Kim Tamaoka attended a two-day Project WET facilitator and educator workshop training in Lake Tahoe on May 7th and May 8th. The workshops were coordinated by Project WET California. At the completion of the workshops, Kim gained her official certification as a Project WET Facilitator and Project WET Educator, and she is now able to facilitate Hawaii’s own Project WET workshops as more opportunities arise. The Department will continue to expand Hawaii’s Project WET educator and facilitator network through the assistance of the Source Water Protection Education Grant until its contract ends.

The Department continued to plan for another Make a Splash Mini-Festival in the Big Island to be held on June 26th at Na Pua Noeau’s enrichment program.

Koloa Elementary School Career Day Kim Tamaoka and Sandi Nadatani-Mendez attended Koloa Elementary School’s Career Day on April 22nd and shared with three fifth-grade classes about the Department and the importance of water conservation. Water bottles, shower timers and pencils were given to about 60 students and teachers.

Joint Summer Water Conservation Program The Department’s Joint Summer Water Conservation Media Campaign with the Honolulu Board of Water Supply began on May 4th and will continue until September 9th. Water conservation radio advertisements will continue to air on KONG and KJMQ radio stations.

KIFB Spring Food Drive The Department participated in the County’s annual Spring Food Drive for the Kauai Independent Food Bank. The Department brought in a total of 535 pounds of food and $50 in monetary donations, which far exceeded its goal of 400 pounds of food. Overall, the Department came in

Page 320 PR Specialist Report May 21, 2015 Page 2 of 2

sixth place out of the other 16 participating county departments. Mahalo to all employees who donated and showed their support for this food drive. (See attached, “Ending on a high note,” by The Garden Island)

Agriculture and Environmental Awareness Day The Department participated as an exhibit in the Agriculture and Environmental Awareness Day on May 7th, at the Wailua Research Station of the UH-College of Tropical Agriculture and Human Resources. Mahalo to Jonell Kaohelaulii, Carl Arume, Joel Bautista and Andy Canavan for representing the Department at this event. The Department shared with approximately 650 students about Kauai’s two sources of drinking water – ground water and surface water – in addition to why water conservation and protection is so important. (See attached, “Importance of agriculture,” by The Garden Island)

Miscellaneous:  Attended a meeting for the upcoming Mayor-a-Thon event. The Department will be sponsoring drinking water for all participants through the use of its water buffalo in the park and water jugs stationed along the walking path.  Attended the AmpliFund Grant Management training webinar on May 5th.  Attended the Commission on Water Resource Management Kauai Briefing on April 28th and Commission Meeting on April 29th.  The Department’s new Community Relations Clerical Assistant, Jonell Kaohelaulii, began employment on May 1st.

Respectfully submitted,

Kim Tamaoka Public Relations Specialist

KT:ein

Attachments: “Ending on a high note,” by The Garden Island. “Importance of agriculture,” by The Garden Island.

Page 321 http://thegardenisland.com/news/local/ending-on-a-high-note/article_a86a2f91-957b-5e8e-a7ae-a612a648e60e.html

Ending on a high note TheGardenIsland.com

Dennis Fujimoto/The Garden Island

Mayor Bernard Carvalho Jr. and Managing Director Nadine Nakamura react to the announcement of county department winners by Cyndi Ayonon who is joined by KIFB's Leona Perez, Kelvin Moniz and Rizaldy Tolentino, Thursday during the finalization of the County of Kauai's food drive at the Moikeha Building.

LIHUE — Thursday marked the end of the Kauai Independent Food Bank’s Spring Healthy Food and Fund drive, and KIFB Ending on a high note personnel were busy making food pickups around the island.

With a goal of $40,000 and 40,000 pounds of food, a visit by Isabel Gampon, an eighth grade student at the Chiefess Kamakahelei Middle School, and the reigning Miss Junior Teen Hawaii, dropped off a $555 donation under the 2-for-1 donation campaign funded by the Hale Uluwehi program under The Hawaii Community Foundation.

KIFB personnel, including executive director Kelvin Moniz, programs manager Leona Perez, and warehouse supervisor Rizaldy Tolentino, were at the Moikeha Building to accept the results of the County of Kauai’s in-house food drive.

Cyndi Ayonon, the coordinator of the county’s drive, said the unofficial tally from the collection amounted to 3,396 pounds of food and $2,838 in cash contributions.

“Isabel’s always wanted to do something to give back,” said Ray Gampon, Isabel’s mother. “When I read about the 2-for-1 program, Isabel got really excited and started texting everyone.”

On the road leading to the Miss Junior Teen Hawaii crown, Isabel did a service project for KIFB where she contributed food to help needy families during the holidays.

“She never forgot the experience,” Ray said. “She’s been fired up and after being crowned wanted to do something to give back. This was perfect.”

Isabel said when people found out she was collecting money, they gave freely.

“To give this to help feed people who are hungry and for the community is such a good feeling,” Isabel said. “Saturday, I was helping pin sashes to survivors at the Relay for Life, and there was this one lady who was just so happy that I was doing this for her. It made me feel really good that a simple thing like this can make such a difference.”

Ayonon said the county’s food collection was made more exciting by creating competition between the different departments on who could collect the most in either funds or food.“We learn by doing,” Ayonon said. “Last year we did a drive, and this year, it’s a little better. The next one will be even better.”

Perez said KIFB will still make collections for the spring food drive over the next few days.

© 2015 Thegardenisland.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Page 322 Page 1 of 2 May 01, 2015 12:09:28PM MDT http://thegardenisland.com/news/local/ending-on-a-high-note/article_a86a2f91-957b-5e8e-a7ae-a612a648e60e.html

Posted in Local , Education on Friday, May 1, 2015 1:00 am.

Page 323 Page 2 of 2 May 01, 2015 12:09:28PM MDT http://thegardenisland.com/news/local/education/importance-of-agriculture/article_5e5e36e5-d026-59f7-883d-f36e8d04cf9a.html

Importance of agriculture TheGardenIsland.com

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Dennis Fujimoto/The Garden Island

Jonell Kaohelaulii of the Dept. of Water works with Kauai High School Future Farmers of America students Billie Bukoski, Cheyanne Tannery and Sierra Medeiros in answering Blue Planet questions, Thursday during the Ag Awareness Day at the Kauai Agriculture Research Center in Wailua.

Importance of agriculture |

WAILUA — Agriculture is important because everyone in the world benefits from it, said Koloa Elementary School fifth grader Koa Hughes.

“It helps clean the air,” Hughes said. “It also helps keep the water clean.”

Hughes was one of nearly 650 sixth-grade students from Kauai’s public, private, and home schools who converged at the Kauai Agriculture Research Center for the annual Ag Awareness Day Thursday, hosted by the Kauai Farm Bureau and the University of Hawaii College of Tropical Agriculture and Human Resources.

“Everything we eat is from the sun,” said Pili Paa, a student from Kanuikapono Public Charter School. “My favorite thing was playing the wheel at the invasive species tent. We need to control the invasive species so our native plants can grow.”

During the daylong excursion, a variety of exhibits, lectures and hands-on demonstrations were held.

“I learned there are lots of endangered species on our island,” said Lilia Street, a Kanuikapono student. “We need to control the invasives so the endangered species can grow.”

Hughes said the most interesting item for him was how they were extracting DNA from strawberries.

“When you leave today, you will know how to extract DNA from strawberries using items you have at home,” said Sarah Thompson of DOW Agrosciences, who led the hands-on demonstration. “Every one of you will have a vial of strawberry DNA which you can inspect closer at home and show your family.”

The technological side of agriculture also impressed Alan Smith of Syngenta Seeds, who said he kept watching the students become fascinated as they looked through the wide variety of items derived from corn.

Emma Hanchett of Kilauea Elementary School gave away her tomato plant.

“I have too many at home,” Hanchett, who enjoyed the master gardener program on propagation, said. “I like planting, but we have too many plants so I gave mine to Nyla Say.”

Herbert Keamoai, instructor and advisor for the Kauai High School Future Farmers of America, said his group of students were asked to help get the different groups started through the different stations set up at the Wailua agriculture facility. Page 324 Page 1 of 2 May 08, 2015 12:46:14PM MDT http://thegardenisland.com/news/local/education/importance-of-agriculture/article_5e5e36e5-d026-59f7-883d-f36e8d04cf9a.html

“It’s good because kids need to be educated about agriculture,” said Billie Bukoski, an FFA member. “My friends and I took a class in agriculture at school and became interested. Every one of us have lives in agriculture.”

© 2015 Thegardenisland.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Page 325 Page 2 of 2 May 08, 2015 12:46:14PM MDT DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!

Operations Division Report for the Month of April 2015

Personnel

 Senior Account Clerk interviews completed.

Source and Storage

 Maintenance Workers re-striped the parking stalls and performed routine repair and maintenance of front office/admin facilities.  Maintenance Workers continued cleaning of various remote facilities island-wide.  Water Plant Operators performed routine inspection and maintenance at all sites including valve maintenance, piping repair and replacement, chlorination equipment maintenance, and mixing of sodium hypochlorite.  Electrical workers performed routine electrical maintenance at all sites including SCADA radio troubleshooting, electrical wiring for motor controls, lighting repair and replacement.  Contract 594 for Lawai Well No. 1 Repair work commenced March 2, 2015.  Contract 598 for Piwai Well No. 3 Repair was executed. Work commenced April 27, 2015.

Distribution

 Operations Division Field Section crews continue to perform live taps and routine leak repair of service laterals and mainlines.  Field Section personnel responded to and completed 31 leak repair work orders.  For the month of April, there was no progress on Hehi Road main distribution line replacement under work order C131768.  For the month of April, there was no progress on Lokokai Road 3” PVC distribution line replacement under work order C141516.  Field Section personnel replaced approximately 880 feet of 2”GS distribution line along Lele Road. For the month of April, 80 feet of 2” GS pipe was replaced with 2” PVC pipe. C150210.  10 water meters were issued and installed including 3 water meters repaired.  We received a total of 50 calls from customers reporting leaks on the mainline, service laterals, meters, meter boxes and fire hydrants including 20 called-in complaint of no water, 2 complaints of low pressure and 1 call reporting broken meter box cover. Work orders were generated and all calls resolved. Leak after the meter needs to be addressed by the customer. Fleet, Inventory, Warehouse and Baseyard Area

 For the month of April, a total of one hundred eighty four (184) work orders were issued for Operations Division. Works included: electrical repairs and maintenance; automotive repairs and maintenance including power generator maintenance; water meter installation and replacement; service lateral installations; leak repairs; well, tank site and PRV ‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813 Page 326 Operations Division Report May 21, 2015 Page 2 of 2

maintenance; replace damaged meter boxes; replace damaged or leaking hydrant; door- to-door customer notifications for tie-ins of new lines to existing lines as well as notifications regarding scheduled repairs; callouts due to customer complaints/reports; meter replacement requests; contractor’s requests for markings. Of the 184 work orders issued last month, 172 were completed.  For the month of April 2015, thirty four (34) Hawaii One Call requests for markings were received.  Contract 597 – Replace Baseyard Raingutters was executed. Notice To Proceed effective May 6, 2015 was issued.  Contract 600 for the Furnishing and Delivery of Fire Hydrants and Appurtenances was awarded.  Contract 596 for the Furnishing and Delivery of 16,500lbs. GVWR truck.

As requested, the unbilled water report is submitted in the form of a graph. Please note that there are changes in the percentages that were previously submitted.

Respectfully submitted,

Valentino P. Reyna Chief, Operations Division

VPR/ein

Attachments: Overtime Chart Leak Report Chart Monthly Billed/Unbilled Water Chart

Mgrrp/May 2015/Operations Divison Report for the Month of April 2015 (5-21-15):ein

Page 327 County Of Kauai - DEPARTMENT OF WATER Operations Division: Plant & Field Total Hours Worked for the Month For the Period: April 2013 to April 2015

Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15

Regular Hours Worked 4,646 4,257 3,910 4,030 4,165 4,159 4,926 3,927 4,045 4,503 4,320 4,164 4,602 4,083 3,892 4,129 4,087 4,664 4,991 3,131 4,130 4,095 4,624 4,882 4,935 Overtime Hours 460 847 633 736 828 672 579 552 457 482 411 553 498 720 836 612 656 621 627 485 392 775 312 319 347 TOTAL HOURS WORKED 5,106 5,104 4,543 4,765 4,992 4,830 5,505 4,479 4,501 4,985 4,732 4,717 5,099 4,803 4,728 4,741 4,743 5,285 5,618 3,615 4,522 4,869 4,936 5,202 5,282

6,000

5,000

4,000

3,000 Regular Hours Worked

Overtime Hours 2,000 TOTAL HOURS WORKED

1,000

0 Apr-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15

Page 328 11-May-2015 Work Orders by Job Reason Code for Selected Date Range

04/01/2014 to 04/30/2015

# of W/O's Job Reason Code Description

10 LEAK-BOX Meter Box Leak Repair

5 LEAK-CUST Customer-Side Leak Repair

102 LEAK-MAIN Mainline Leak Repair

122 LEAK-S/L Service Lateral Leak Repair

Work Orders by Job Reason Code

LEAK-BOXLEAK-CUST 10 5

LEAK-BOX 4.2% LEAK-CUST 2.1% LEAK-S/L LEAK-MAIN 42.7% 122 LEAK-MAIN LEAK-S/L 51.0% 102 Total: 100.0%

Number of Leak Repairs per Month

20

16

12 LEAK-MAIN LEAK-S/L LEAK-BOX 8 LEAK-CUST

4 Number of Leak Repairs

0

4/2014 5/2014 6/2014 7/2014 8/2014 9/2014 1/2015 2/2015 3/2015 4/2015 10/2014 11/2014 12/2014

Page 329 Monthy Water Produced, Billed and Unbilled For Calendar Year 2015

Jan-15 Feb-15 Mar-15 Apr-15

Produced (Kgals.) 368,399.31 349,162.48 362,196.85 425,527.34 Consumption (Kgals.) 312,153 325,040 306,207 353456 Unbilled (kgals.) 56,246.31 24,122.48 55,989.85 72,071.34 Unbilled % 15.3 6.9 15.5 16.9

Produced (Kgals.) Consumption (Kgals.) Unbilled (kgals.) Unbilled Percentage 425,527.34 368,399.31 362,196.85 349,162.48 353456 325,040 306,207 312,153 VOLUME(KGALS) 72,071.34 56,246.31 55,989.85 24,122.48 6.9 15.3 15.5 16.9

JAN - 15 FEB- 15 MAR - 15 APR - 15 MAY - 15 MONTH PRODUCED/BILLED

Page 330 DEPARTMENT OF WATER County of Kaua‘i

“Water has no Substitute – Conserve It!”

MANAGER’S UPDATE

May 21, 2015

Pursuant to Board Policy No. 3 CONTRACTS AWARDED/EXTENSION/AMENDMENTS:

(1) Re: Contract No. 601 awarded to Wong’s Equipment & Service LLC for Leak Detection Equipment in the amount of $28,716.24

FUNDING: Account No. 10-40-00-605-999 WU/Ops/Capital Outlay – Expansion Equipment Account No. 10-40-00-605-999 Leak Detection Equipment $ 35,000.00 Contract No. 601: Wong’s Equipment & Service LLC $ 28,716.24 Total Funds Certified $ 28,716.24 ($ 28,716.24)

Balance for Leak Detection Equipment #10-40-00-605-999 $ 6,283.76

BACKGROUND: The contractor, Wong’s Equipment & Service LLC, is being selected for this solicitation as they submitted the responsive bid that met specifications.

(2) Re: Contract No. 602 awarded to Allied Machinery, Corp in the amount of $179,207.18 for the Furnishing and Delivery of One (1) Backhoe Loader and One (1) Equipment Trailer

FUNDING: Account No. 10-40-00-604-999 WU/Ops/Capital Outlay – Rehabilitation and Replacement/Equipment Account No. 10-40-00-604-999 Backhoe and Trailer $ 213,374.00 Contract No. 602: Allied Machinery Corp. $ 179,207.18 Total Funds Certified $ 179,207.18 ($ 179,207.18)

Balance for Backhoe and Trailer Acct #10-40-00-604-999 $ 34,166.82

BACKGROUND: Bids for the subject solicitation were opened on April 22, 2015 and the contractor, Allied Machinery Corp., is being selected for this solicitation as they submitted the most responsive bid for this solicitation.

(3) Re: 1st Amendment to Contract No. 520, Fukunaga & Associates, Inc. for Job No. 10-01 #Ani-01, Pipeline Replacement from Kīlauea to 'Anini, Kīlauea, Kaua'i, Hawai'i in the amount of $41,367.00 for additional Consultant Services and Design Documents

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813 Page 331 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 2 of 9

CONTRACTS AWARDED/EXTENSION/AMENDMENTS cont’d:

FUNDING: Account No. 30-20-00-604-101 Bond Fund (Capital Projects-R&R-Design) Contract No. 520: Fukunaga & Associates, Inc. $ 750,760.00 First Amendment $ 475.00 Contingency $ 0.00 Contract Balance $ 750, 285.00

Acct No. 30-20-00-604-101 Bond Fund $ 475.00 Transfer from Acct No. 30-20-00-605-140 Per Manager’s Report No. 15-32, Approved at Board Meeting 4/23/15 $ 50,000.00 Balance for 30-20-00-604-101 Bond Fund $ 50,000.00 $ 50,475.00

Second Amendment: Additional Consultant Services and Design Documents $ 41,367.00 Total for Second Amendment $ 41,367.00 ($ 41,367.00)

Total Balance for Contract 520 791,652.00 Total Balance for Acct 30-20-00-604-101 $ 9,108.00

BACKGROUND: The County Department of Public Works did not approve the submitted design to suspend the new waterline on the existing six (6) ʻAnini bridges. The County specified that the ʻAnini road bridges were not structurally sound to carry the additional loads from the proposed waterline project. The County also commented on the scheduled replacement of existing ʻAnini Bridge #2 (STA. 81 + 29) in 2015. The design of the new waterline crossing at this location should be located two (2) feet away from the new bridge parapet wall, box culvert and/or drainage pipes head wall and should be supported on steel or concrete beam. (Any deviation from the 2 feet distance will be cleared with the County during design.)

The consultant negotiated with the County to repair the bridges. The County will now allow suspending (hanging) the new waterline on all of the bridges except for Bridge #2 which is scheduled to be replaced in the near future. These design changes required by the County will require additional engineering and geotechnical services to design a separate bridge crossing for the new water line along Bridge #2. It will also require additional designs to repair the existing five (5) bridges along ʻAnini Road.

The Department negotiated an additional cost of $41,367.00 to complete the additional design work. The Board approved funds for the additional design services at the April 23, 2015 Board meeting.

WAIVER RELEASE & INDEMNITY APPLICATIONS:

Applicant TMK Location & Building permit Performance Bond Amount Coconut Coast Partners, Kaua'i Shores Hotel TMK (4) 4-3-002:012 $90,000.00 L.P. Building Permit No. 14-1804

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 332 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 3 of 9 STAFF REPORTS - FY 14-15:

PERSONNEL MATTERS UPDATE

May 11, 2015

RECRUITMENT AND POSITION ACTIONS

Operations Division 1. Automotive Mechanic I #2449. As of 5/11/2015, interviews completed and working with Department of Human Resources (DHR) to fill position. 2. Pipefitter Helper #2405. As of 5/11/2015, received referred list of eligibles. Pending interview date. 3. Senior Account Clerk #2602. As of 5/11/2015, completed interviews and working with DHR to fill position. 4. Waterworks Construction & Maintenance Supervisor I #2487. As of 5/11/2015, DHR reviewing re- description request. 5. Waterworks Construction & Maintenance Worker #2401. As of 5/11/2015, DHR reviewing re- description request.

Fiscal Division 1. Customer Service Representative I (Billing) #2305. As of 5/11/2015, working with DHR on referred list of eligibles. 2. Accountant I (Accounting) #2448. As of 5/11/2015, DHR reviewing position re-description. 3. Accountant III (Accounting) #2356. As of 5/11/2015, DHR reviewing position re-description. 4. Accountant IV (Accounting) #2303. As of 5/11/2015, DHR reviewing position re-description. 5. Waterworks Controller #2300. As of 5/11/2015, DHR reviewing position re-description.

Construction Management Division 1. Water Inspector II #2483. As of 5/11/2015, pending Administrative Review response from DHR. 2. Waterworks Project Manager #2351. As of 5/11/2015, pending Admin Review response from DHR. 3. Project Manager #2484. As of 5/11/2015, pending referred list of eligibles from DHR.

Engineering Division 1. Civil Engineer V #2358. As of 5/11/2015, applicant accepted position. Start date of 8/17/15.

Water Resources & Planning Division 1. Chief of Water Resources and Planning #2460. As of 5/11/2015, interviews have been scheduled for early June 2015.

Administration 1. Clerical Assistant #2499. Position filled 5/1/2015. 2. Commission Support Clerk #2493. As of 5/11/2015, DHR reviewing position re-description. 3. Private Secretary #E-35. As of 5/11/2015, DHR reviewing position re-description. 4. Secretary #2354. As of 5/11/2015, DHR reviewing position re-description. 5. Senior Clerk #2474. As of 5/11/2015, DHR reviewing position re-description. 6. Summer Interns. Advertisement posted 4/1/2015. Closes 5/15/2015. 7. Deputy Manager. Advertisement posted 4/12/2015. Closes 6/19/2015.

Pursuant to Board Policy No. 3 SUMMARY OF WARRANT VOUCHERS – April 30, 2015 $1,501,332.18

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 333 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 4 of 9 Pursuant to Board Policy No. 24 CONVEYANCE OF WATER FACILITIES – $36,425.00 Jack R. Hendrickson 5/21/2015 TMK: 2-8-031:185 Koloa $ 9,425.00 Carrie M. Hendrickson Richard Carlson, Trustee of the Richard Carlson Living 5/21/2015 TMK: 5-4-004:032 Hanalei $ 27,000.00 Trust

CC&B BILLING SYSTEM UPDATE:

May 11, 2015, Submitted by Information Tech Specialist, Sandi Nadatani-Mendez

Due to technical matters in making the CAS legacy data available to the users, Honolulu Board of Water Supply (BWS) has postponed the decommissioning of their CAS servers. They will confirm a new target date as they work to resolve these technical matters. In the meantime, CAS will continue to be available.

The DOW is moving forward the process of creating a lock-box collection system for mailed payments and working with both BWS and Bank of Hawai'i (BOH) to move forward with this implementation. The goal is to have it completed and implemented by the beginning of the 2016 fiscal year.

New rate testing started on May 1st. Kauai will not be implementing any new rates or updating the power adjustment charge, however; Information Technology Specialist, Sandi Nadatani-Mendez is spot checking a few accounts here and there as a precaution.

Letters to renew for agricultural (AG) rates were generated on May 1st. The second set of reminder letters are scheduled to generate on June 10, 2015.

On June 14, 2013 the DOW implemented the eBill & eStatement feature. This allows our customers to view their bills online. As of May 11, 2015 we have 1,100 accounts set up with eBill & eStatement, 407 of them have elected to receive their bill electronically.

IT STRATEGIC PLAN UPDATE:

May 13, 2015, Submitted by Waterworks Info. Tech. Officer, Jeffery Mendez

Nothing new to report. Sent out an rfp for comments about 6 weeks ago with the hopes of getting out by end of May.

Project Management: An RFP was drafted for the Project Management System and routed for comments with the hopes of posting the proposal by the end of May.

AFFORDABLE HOUSING UPDATE: No significant affordable housing activities or meetings.

2015 Legislative Session UPDATE: The legislative session for 2015 will be ended on May 7th. The Department is awaiting the appropriation of the Governor’s Act for the funding of the Hanapepe Transmission Line CIP project (HB 500).

Project WET UPDATE: The Department has agreed to bring in two (2) volunteer Project WET facilitators, pursuant to Hawaii Revised Statute Section 90-4, to assist the Public Relations Specialist in the training workshops being held in the Big

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 334 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 5 of 9

Island, Oahu and Molokai during June 8 to 12, 2015. These training workshops are aligned with the Department’s grant contract with the State of Hawaii Department of Health–Safe Drinking Water Branch.

MANAGER’S GOALS UPDATE (est.12/18/14): The Board approved the Manager and Chief Engineer’s goals and responsibilities. The Manager’s goals are as follows:

1. Complete Facilities Reserve Charge (FRC) effective July 1, 2015. Update 05/21/15: The Department has scheduled a Finance Committee meeting for Thursday, May 28th. A Board report will be transmitted during the June 18, 2015 Regular Board Meeting.

Update 04/23/15: The Department met with the Finance Committee Chair on April 16, 2015 to present an update of the FRC rules. The Chair requested several changes to the FRC rules. The Department will make the requested changes and submit them to the Finance Committee Chair.

Update 03/19/15: The DOW has provided an update to Manager’s Report No. 14-16 Part 4 Fixing Rates for Water Service, Section VII Facilities Reserve Charge (FRC) Update No. 3.

Update: The FRC proposed fee structure is being reviewed by the DOW’s County Attorney.

2. Complete and pass the American Water Works Association (AWWA) Distance Learning Certificate Program courses one (1) year from enrollment. Enrollment must be within 30 days from December 18, 2014. a) Management & Supervision Certificate Program b) Infrastructure Management Certificate Program Update 05/21/15: The Manager will now work on the Infrastructure Management Certificate Program upon his return from the AWWA National Conference in June.

Update 04/23/15: The Manager has completed his AWWA Management & Supervision Certificate Program. This included: Introduction to Utility, Basic Supervision, Hiring Employees & Rules, Management Responsibilities, and Management Styles. The Manager will now work on the Infrastructure Management Certificate Program.

Update 03/19/15: The Manager is currently 90 days in ending on April 20, 2015.

Update 02/19/15: The Manager is currently 30 days in. Once completed, the Manager will register for the Infrastructure Management Certificate Program.

Update 01/22/15: The Manager and Chief Engineer has registered for the Management and Supervision Certificate Program on Friday, January 16th and scheduled to complete within ninety (90) days.

3. Complete the Sustainable Management of Rural and Small Systems Workshop sponsored by the United States Geological Survey (USDA), Hawaii Rural Water Association one day workshop on January 20, 2015. Update 01/22/15: Training has been completed.

4. Pending details on how to apply for the State Management Mentoring Grant. Update 03/19/15: This goal has been requested to be deleted by the Board in February.

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 335 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 6 of 9

MANAGER’S GOALS UPDATE cont’d (est.12/18/14):

Update 01/22/15: This goal is pending review by the Board.

5. Provide clear Manager Reports to the Board, providing background, options and recommendations. Update 01/22/15: Ongoing. All Managers’ Reports excluding updates, Grant of Easement includes a background along with options and recommendations for the Board.

6. Provide Manager’s Reports to the Board by the Friday prior to the Agenda meeting with the exception of the financial reports at the time of posting. Update 01/22/15: On-going. The packets were distributed on the Thursday, prior to the scheduled agenda meeting.

7. Respond to grievances within 30 days. Update 05/21/15: No new grievances.

Update 04/23/15: No new grievances.

Update 03/19/15: The UPW Grievance #AD-14-05 Step 2 is concluded. We received the memo from DHR dated 2/25/2015.

Update 02/19/15: Step 2 was held at the Department of Human Resources (DHR) on Friday, February 6, 2015.

Update 01/22/15: UPW Step Grievance #AD-14-05 received on the morning of December 31, 2014. DOW responded to the Step 1 Grievance in the afternoon of December 31, 2014.

8. Establish monthly reports for non-revenue water. Update 05/21/15: On-going. Please refer to Operations Monthly Report.

Update 01/22/15: On-going. Please refer to Operations Monthly Report. The report has been submitted to the board during the December 2014, January, February, and March 2015, Regular Board Meeting.

9. Provide timetable to complete the basic GIS model based upon current funding by May 2015. Update 05/21/15: The IT section is continuing to work on the Wailua-Kapaa Water System and currently surveying/collecting gps points in Kapaa Homesteads.

Update 04/23/15: The IT division is currently working on the Wailua-Kapaa area. The Koloa-Po’ipū area should be completed by the end of the year with only Waimea-Kekaha system remaining.

All systems will be completed by February of next year.

Update 03/19/15: On-going.

Update 01/22/15: Kirk will follow up with the IT section to see where this is at.

10. Obtain Human Resources (HR) / Department of Personnel Services (DPS) approval for current Table of Organization. Minimize changes on the Table of Organization (TO). Update 05/21/15: Table of Organization remains current.

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 336 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 7 of 9

MANAGER’S GOALS UPDATE cont’d (est.12/18/14):

Update 04/23/15: Table of Organization is current.

Update 03/19/15: All current org charts were forwarded to the Kaua'i County’s Department of Human Resources (DHR) as of 3/9/2015. Updates to org charts will occur as position re-descriptions are approved or new positions are assigned position numbers. For example, the new Civil Engineer (CE) I position in Water Resources & Planning (WR&P) has recently been assigned a position number. The Manager and Chair will need to sign the updated WR&P TO. The original will then be forwarded to DHR.

Update 01/22/15: On-going.

11. Recommend top projects by January 22, 2015 Board meeting as listed.

 Department will refer to the Bond and FRC list for discussion first on when the projects could be completed.  Target projects in Design & Construction which will be discussed with the Board on which projects will be prioritized.  Include justification with targets on design and construction. a) 10 Source Projects - Include justification for 10 source projects for generating non-revenue and FRC revenue. b) 5 Storage Projects. c) 10 Transmission Projects. d) 30 Distribution/Replacement Projects. e) Cost Savings/Demand Reduction Projects. Update 05/21/15: We are continuing the review and/or negotiation of extra work/cost for the Kilauea 1 MG (Puu Pane) tank, Kalaheo System Improvements, and Wainiha Well No. 4. The Department is also negotiating additional work/fees for the UH Experiment Station Site and Kukuiolono Tank Site Exchange. The Board approved funding for additional work required for the Anini Waterline and the Department is in the process of having the Contract Amendment executed.

The Kōlo Road Main Replacement has been advertised for bidding. The Weke, Anai, Mahimahi and Hee Road (Hanalei) waterline, and the 8” Main Replacement along Halewili Road designs were completed.

In response to the State DOT recent requirement for the DOW to complete Use and Occupancy Agreements (UOA’s), the DOW has begun to negotiate with our consultants to complete the additional work required to complete the UOA’s. The additional work may require additional funds to be approved and will require existing design contracts to be amended for the affected projects.

Update 04/23/15: The Department is continuing the review and/or negotiation of extra work/cost for the Kilauea 1 MG (Puu Pane) tank, Kalaheo System Improvements, and Wainiha Well No. 4. The Department is also negotiating additional work/fees for the UH Experiment Station Site and Kukuiolono Tank Site Exchange. The Department has recently completed negotiations for the Anini Waterline and has submitted a Manager’s Report requesting additional funding for the additional work and is preparing a Contract Amendment in anticipation of the additional funding being approved.

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 337 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 8 of 9

MANAGER’S GOALS UPDATE cont’d (est.12/18/14):

The Weke, Anai, Mahimahi and Hee Road (Hanalei) waterline, 8” Main Replacement along Halewili Road and the Kōlo Road Main Replacement plans have been approved and are ready for the corresponding Request for Proposal’s (RFP’s) to be completed. The Kōlo Road Main Replacement is expected to be advertised for bidding on 4/13/15. The other two projects are expected to be scheduled for construction bidding after the respective RFP’s are finalized.

The State DOT recently informed the DOW that we will need to complete Use and Occupancy Agreements (UOA’s) for all Department projects that will be installing facilities in the State ROW’s, also including projects that had plans previously approved but not constructed, yet. In addition, a Memorandum of Agreement (MOA) may also be required to be completed if abandoning facilities in the State ROW. The DOW will need to negotiate with our consultants to complete these additional requirements. This may require additional funds to be approved and will require existing design contracts to be amended for the affected projects.

Update 03/19/2015: We are continuing the review and negotiation of the submittal of the extra work/cost by several of our consultants. These involve the Kilauea 1 MG (Puu Pane) tank, Anini waterline, Kalaheo System Improvements, and Wainiha Well No. 4. The Department may need to request additional funds for these projects in the near future, pending the outcome of our review/negotiations.

The State and County approved the changes requested by the State for our Weke, Anai, Mahimahi and Hee Road (Hanalei) waterline plans. The RFP is expected to be completed soon and the project can be scheduled to be bid out for construction sometime after the RFP is finalized.

8” Main Replacement Halewili Road. The DOW received a Use and Occupancy Agreement (UOA) along with a Memorandum of Agreement (MOA) from the State. The State clarified that the MOA must also be completed. The DOW is currently reviewing the UOA and the MOA. Upon agreement with the terms and conditions, the DOW will submit a Manager’s Report recommending the Board approve the UOA and the MOA.

Update 02/19/2015: We are currently reviewing/negotiating submitted extra work/cost by several of our consultants. These involve the Kilauea 1.0 MG (Puu Pane) tank, Anini waterline, Kalaheo System Improvements, and Wainiha Well No. 4. The Department may need to request additional funds for these projects in the near future, pending the outcome of our review/negotiations. The State recertified our Weke, Anai, Mahimahi and He’e Road (Hanalei) waterline plans after requested changes were made. The plans were submitted to PW for review/approval. The RFP is expected to be completed next week (this week relative to the board meeting date). The County has indicated that the MOA must be completed before the County will issue permits for the project. This will allow the DOW to bid out the project before the MOA with the County is actually completed. It is expected that the Department will be able to bid out for construction this month.

8” Main Replacement Halewili Road: The design is basically done except for the completion of the Use and Occupancy agreement (UOA) that the State required to be completed prior to starting construction. The State has informed us that they should be finished drafting the UOA soon. When the draft is done, they will send it to the DOW for review.

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 338 MANAGER’S UPDATE Re: Manager’s Update for April through May 2015 May 21, 2015 Page 9 of 9

MANAGER’S GOALS UPDATE cont’d (est.12/18/14):

Update 01/22/2015: On-going. Exhibit A includes two tables. The first table identifies the six (6) projects that the Department is confident will have designs completed in Fiscal Year 2014-2015. The second table identifies seven (7) design projects that may be completed by the end of the calendar year 2015. It is also noted if the projects will increase system capacity and if they are included on the Build America Bond (BAB) project list.

Exhibit B identifies design projects by five (5) categories and is listed by priority. The categories include: Source; Storage; Transmission; Replacement/Distribution; and Cost Savings or Demand Reducing projects.

The proposed design budget for 2015-2016 includes projects based on priority determined by the DOW. The DOW considered several factors in prioritizing the projects. The factors include: health and safety, increase system capacity, and repair and replacement projects that are needed for the Department to continue providing excellent service to our customers. The factors considered for the projects are noted in the exhibit, along with identifying if they will increase the system capacity and if they are included on the BAB project list.

The projects and priorities are re-evaluated each year in determining the order in which they are planned to be done.

12. Deferred – Complete design of top 10 projects by the end of FY 2014-15. Based on No. 11 Update 01/22/2015: Based on No. 11 above.

Respectfully submitted,

Kirk Saiki, P.E. Manager and Chief Engineer

KS/mja

Mgrrp/Manager’s Update (05-21-15):mja

Attachments: Warrant Vouchers as of April 2015 2010 BAB Spend Down Report as of April 2015 Manager’s Goals No. 11 Exhibit A & Exhibit B

‐‐‐4398 Pua Loke Street, Lihu‘e, Kaua‘i, Hawai‘i or P. O. Box 1706, Lihu‘e, HI 96766‐5706‐‐‐ Phone No. (808) 245‐5400 – Administration FAX No. (808) 246‐8628 – Engineering/Fiscal/Shop FAX No. (808) 245‐5813

Page 339 Page 340 2010 Bond Encumbrance and Spend Down Status (Dollars)

60,000

50,000

BAB Balance Remaining to Encumber

40,000

Actual Projected

30,000 Thousandsof Dollars

20,000

10,000

0 Jul-10 Jul-11 Jan-10 Jan-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Oct-10 Oct-11 Apr-10 Apr-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Page 341 EXHIBIT A Item No. 11, Design Projects

Designs (4) that Engineering is confident to be completed by the end of fiscal year 2014-2015

Increase On BAB % WP 2020 PROJECT System Project Complete No. Capacity List (design) * 1 KOLOA WELL "D" REPAIRS no 85% KOLO ROAD MAIN REPLACEMENT (KILAUEA 2 WKK-9 yes 100% ^ SCHOOL) 8” WATER MAIN REPLACEMENT HALEWILI 3 K-18 no yes 100% ^ ROAD

WEKE, ANAE, MAHIMAHI AND HE'E ROADS 6" 4 H-05 yes yes 100% ^ and 8" MAIN REPLACEMENT (2,760') * relative to plans being approved and RFP for construction bidding ready to be finalized. ^ Does not consider the State's requirement to complete Use and Occupancy Agreements (UOA) or Memorandum of Agreements (MOA) The State DOT has indicated that they will allow construction to start for these projects without completing UOA's or MOA's first.

Designs (9) that may be completed by the end of calendar year 2015

On BAB Increase % WP 2020 PROJECT Project System Complete No. List Capacity (design) (yes/no) 1 WK-08 Construct Kapaa Homestead 313 Tank, 1.0 MG yes yes 90%

2 WK-39 Kapaa Homesteads Well No. 4 yes yes 90% 3 HW-12 Wainiha Well No. 4 yes yes 75%

4 Equipment and Material Bin Roof with PV System ** no 0%

5 WKK-15 Construct Kilauea 466 Tank, 1.0 MG yes yes 60% 6 K-05a Construct Kalaheo Kukuiolono 0.5 MG Tank yes yes 75% 7 PLH-01A Replace Grove Farm Tanks #1 & #2 yes yes 90% Koloa Road 8" (1,700') & Omao 6" (6,200') Main L-08,L-10 yes yes 90% 8 Replacements ^^ Koloa Wells 16A & 16B Well, Site and Building KP-09 no yes 90% Improvements *** ** DOW Operations is taking the lead for this project ^^ Previously one of 6 projects that Engineering was confident would be completed in the current fiscal year. Unexpected design revisions are needed. Review took longer than anticipated. It is expected that the design will be completed by the end of this calendar year.

Manager's Goal's - 6 Months 12/18/14-06/18/15 Item No. 11 Page 342 EXHIBIT A Item No. 11, Design Projects *** KP-09 moved from complete by end of fiscal year to may be compelted by end of calendar year 2015. Unexpected land issues and possible additonal design work will require additional time to finish design.

Manager's Goal's - 6 Months 12/18/14-06/18/15 Item No. 11 Page 343 Legend for Justification of Projects 1 = Health and Safety Reasons/ Operational Need 2 - FRC Generating 3 = Design in Progress

Prioritized by Five(5) Categories 1 Source projects - 10 2 Storage Projects - 5 3 Transmission Projects - 10 4 Replacement/Distribution Projects - 30 5 Cost Savings/Demand Reduction Projects

Increase System Justification BAB Listed Capacity SOURCE PROJECTS - (10) Construct Kokolau Tunnel WTP, 400 gpm (feasibility 1 PLH-42 yes 2, 3 study) 2 PLH-36 Kapaia SWTP Expansion, 1.0 MGD yes 2 3 H-08 Drill & Dev Hanalei Well, 300 gpm no 2, 3 yes 4 WK-39 Kapaa Hmstds well #4 yes 2, 3 yes Drill & Dev New Kilauea Well (No. 3 or No. 4), 700 5 WKK-02 yes 2, 3 gpm 6 HW-12 Drill & Dev Wainiha/Hā'ena Well, 100 gpm yes 2, 3 yes Kalaheo 1111' & 1222' Water System Improvements 7 K-01 yes 2, 3 yes (Well) 8 KP-20 Drill & Dev Koloa Well G yes 2 9 LO-7 Drill & Dev Omao Well yes 2 Renovate Kekaha Shaft (5842-02) & 12" D.I. (Amfac 10 KW-28 yes 2 yes Shaft)

STORAGE PROJECTS (5) 1 PLH-01a Replace Grove Farm Tanks #1 & #2 yes 1,2, 3 yes Kalaheo 1111' & 1222' Water System Improvements 2 K-01 yes 1,2, 3 yes (0.5 MG Tank and pipeline) 3 WK-08 Construct Kapaa Homesteads 313 Tank, 0.9MG yes 2, 3 yes 4 WKK-15 Construct Kilauea 466 Tank, 1.0 MG yes 2, 3 yes 5 K-05a Construct Kalaheo Kukuiolono 0.5 MG Tank yes 2, 3 yes

TRANSMISSION PROJECTS (10) 1 WKK-9 Kolo Road Main Replacement (Kilauea School) yes 1, 2, 3 2 Ani-01b Anini and Kalihiwai Road 6" Main (5300') 1, 3 yes 3 PLH-35b 18" Cane Haul Road Main (Maalo - Ehiku - Kūhi'ō) yes 1, 2 yes 4 HE-10 Hanapepe Road 6" Main Replacement 1, 2 Kūhi'ō Hwy (Hardy - Oxford ) 16" Main Replacement 5 PLH-27 yes 2 (1,680') Kūhi'ō Hwy (N. Papaloa to Waikaea Canal) 16" Main 6 WK-25 yes 2 Replacement

Page 344 Legend for Justification of Projects 1 = Health and Safety Reasons/ Operational Need 2 - FRC Generating 3 = Design in Progress

Prioritized by Five(5) Categories 1 Source projects - 10 2 Storage Projects - 5 3 Transmission Projects - 10 4 Replacement/Distribution Projects - 30 5 Cost Savings/Demand Reduction Projects

Increase System Justification BAB Listed Capacity TRANSMISSION PROJECTS (10) Cont'd Kilauea Tanks 1 & 2 - Pukalani Place, 16"Main 7 WKK-07 no 1 Replacement(8,050') Akea Rd to Hanapepe Well A 8" Main Replacement 8 HE-02 no 1 (11,329') 9 H-11 Kūhi'ō Hwy 6" main Replacement (7,000') 1 10 A-08 Keālia Road 12" Main Replacement (1,940') 1, 2

REPLACEMENT/DISTRIBUTION PROJECTS (30) Weke, Anae, and He'e Roads 6" and 8" Main 1 H-05 yes 1, 2, 3 yes Replacement (2,760) 2 LO-8 &10 Lāwa'i 6" & 8" Main Replacement (6,400') yes 1, 2, 3 yes MCC, Chlorination Facilities, Koloa Well "16-A" & "E", 3 KP-09 1, 3 yes & "16-B" Site and Bldg. Improvements 4 Eleele booster pump rehab no 1, 3 5 K-02 Rehabilitate Jelly Factory B.P. Sta. (3-250 gpm) no 1 6 KW-07 Rehabilitate Paua Valley Tank #1, 0.5 MG Concrete no 1 7 WK-20 Rehabilitate Puupilo Steel Tank, 0.125 MG no 1 8 K-18 8" Water Main Replacement Halewili Road no 1, 3 yes 9 WK-1 Rehabilitate Moelepe Tunnel & Improve Access Road no 1, 3 10 PLH-28 Hanamā'ulu main (Hoohana Street)replacement yes 1, 2 11 Install gate Valves on hydrant Laterals, Po'ipū Road no 1 12 Makanui Road Main Replacement no 1 Koloa 6" & 12" Main Replacement (13,756') (Wailani & 13 KP-14 yes 1, 2 Waihohonou Road) Hoona & Pane Rd 6", Hoonani Rd 12" Main 14 KP-15 yes 1, 2 Replacement Generator shelters and electrical Improvements for 15 no 1 Wells

Page 345 Legend for Justification of Projects 1 = Health and Safety Reasons/ Operational Need 2 - FRC Generating 3 = Design in Progress

Prioritized by Five(5) Categories 1 Source projects - 10 2 Storage Projects - 5 3 Transmission Projects - 10 4 Replacement/Distribution Projects - 30 5 Cost Savings/Demand Reduction Projects

Increase System Justification BAB Listed Capacity REPLACEMENT/DISTRIBUTION PROJECTS (30) Cont'd 16 WK-11a Upper Wailua Houselots Main Replacement no 1 17 HE-03b Hanapepe Well A MCC, Chlorination Facilities no 1 18 HE-03c Hanapepe Well B MCC, Chlorination Facilities no 1 19 HE-6 Hanapepe Wells A and B stream crossing no 1 20 Replace Hanamā'ulu booster pump station no 1 21 WK-13 Kapaa Town 8" main replacement 1, 2 22 PLH-26 Isenberg/Camp A 6" & 8" Main Replacement yes 1, 2 23 Admin building renovations no 1 MCC, Chlorination Facilities, Hā'ena Well 66 & 24 HW-04 no 1 Wainiha Well 67 & 2 MCC, Chlorination Facilities, Replace Paua Valley 25 KW-09b no 1 Well w/ submersible Puuwai, Poohiwi, Wawae Road 8" Main Replacement 26 K-13 yes 1, 2 (5,500') 27 KP-19 Koloa Well C 18" Main Replacement no 1 28 KW-22b MCC, Chlorination Facilities, Waimea Well "2" no 1 MCC, Chlorination Facilities, Lāwa'i Wells No. 1 (22) 29 LO-05a no 1 & No. 2 30 PLH-06 MCC, Chlorination Facilities, Puhi Well 1 (KCC) no 1

COST SAVINGS/DEMAND REDUCING Photo-voltaic system installation on proposed roof over no 1 equipment and materials bins HE-01 Hanapepe-Eleele Connecting Pipeline no 1 Toilet/Washing Machine Retrofit program Island wide. no 1 Subject to WSDF being in place

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