Tuesday, August 21, 2012

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 TUESDAY, AUGUST 21, 2012

2:00 p.m.

Or soon thereafter

A. CALL TO ORDER

B. ROLL CALL

C. ACCEPTANCE OF AGENDA

D. MEETING TRANSCRIPTS: Review and approval of: Regular Board Meeting – July 20, 2012 Recessed Regular Board Meeting – July 23, 2012

Review & Approval of Executive Session Transcript: Executive Session – a. July 20, 2012 i. Session 1 ii. Session 2 b. July 23, 2012

E. CORRESPONDENCE/ANNOUNCEMENTS

F. BOARD COMMITTEE REPORTS

G. OLD BUSINESS 1. Manager’s Report No. 13 – 1- (revised) Points of disagreement with the Kapa`a Highlands Proposal

H. NEW BUSINESS 1. Manager’s Report No. 13 – 2- Budget Resolution No. 13-1 (12/13), Budget for Fiscal Year 2012-13

2. Manager’s Report No. 13 – 3- Conditional Approval of Grant of Easement from the County of Kaua’i, a political subdivision of the State of Hawaii, and Paanau Village Partners LP, a Hawai’i limited partnership for the Water Meter Plans for Lot 4-B Pa’anau Village; TMK (4) 2-6-15:020, Koloa, Kauai, Hawaii Page 1 of 3

NOTE: Special Accommodations for persons with disabilities are available upon request five (5) days prior to the meeting date. Please call the Department of Water, County of Kaua‘i, at 245-5408 or drop by at 4398 Pua Loke Street, Līhu‘e, Kauai. Our mailing address is P. O. Box 1706, Līhu‘e, HI 96766 BOARD OF WATER SUPPLY REGULAR MEETING August 21, 2012

H. NEW BUSINESS cont’d 3. Manager’s Report No. 13 – 4- Request Board approval for revising Part 2 Section XXIV Resale of Water Rule

4. Manager’s Report No. 13 – 5- 2012 Goals for the Manager / Employee Morale

I. STAFF REPORTS MONTHLY 1. Statement of Kaua‘i County Water Department’s Revenues and Expenditures 2. Report by the Public Relations Specialist on Public Relations Activities 3. Chief of Operation’s Summary Report on Monthly Operational 4. Water Resources and Planning Subdivision Report 5. Manager’s Monthly Update Regarding Activities of Note of the Kaua`i County Water Department a. Report of the BAB Bond pay down as of July 2012

QUARTERLY 1. Project Status Update (revised from July 20, 2012 Report)

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 1. Public Hearing Results-Request Board Approval of the Part 2 Section IX Rules 2. Public Hearing Results-Request Board Approval of the Part 3 Section XII Rules 3. Tentative 2013 Board Meeting Dates 4. Manager’s Report No. 12-86 (revised) – Qualifications for Agriculture Charges and Rates in Part 4 Section III of the Rules Draft

L. TOPICS FOR FUTURE WATER BOARD MEETINGS 1. Annual Extension (11-18-12 to 11-17-13) of Volunteer Agreement with Mike Fernandes for Grounds Maintenance of our Nonou 0.2 MG Tank site located in Wailua Houselots (October 2012) 2. Quarterly Update on Project Status (October 2012) 3. Quarterly Update on Affordable Housing (October 2012)

M. UPCOMING EVENTS 1. Project Wet-Make a Splash – September 27, 2012 2. HWWA Conference – October 17-19, 2012, Ala Moana Hotel, Honolulu

Page 2 of 3 NOTE: Special Accommodations for persons with disabilities are available upon request five (5) days prior to the meeting date. Please call the Department of Water, County of Kaua‘i, at 245-5408 or drop by at 4398 Pua Loke Street, Līhu‘e, Kauai. Our mailing address is P. O. Box 1706, Līhu‘e, HI 96766 BOARD OF WATER SUPPLY REGULAR MEETING August 21, 2012

N. NEXT WATER BOARD MEETING 1. Thursday, September 20, 2012, 10:00 a.m. 2. Thursday, October 25, 2012, 10:00 a.m. 3. Thursday, November 29, 2012, 10:00 a.m. 4. Thursday, December 27, 2012, 10:00 a.m.

O. ADJOURNMENT

Page 3 of 3 NOTE: Special Accommodations for persons with disabilities are available upon request five (5) days prior to the meeting date. Please call the Department of Water, County of Kaua‘i, at 245-5408 or drop by at 4398 Pua Loke Street, Līhu‘e, Kauai. Our mailing address is P. O. Box 1706, Līhu‘e, HI 96766

REGULAR MEETING MINUTES BOARD OF WATER SUPPLY Friday, July 20, 2012

The Board of Water Supply, County ofKaua'i, met in regular meeting at the Board Conference Room in Uhu'e on Friday, July 20, 2012. Chairperson Daryl Kaneshiro called the meeting to order at 10:20 a.m. On roll call, the following answered present:

BOARD: Mr. Daryl Kaneshiro, Chairperson Mr. Randall Nishimura Mr. Raymond McConnick Mr. Clyde Nakaya Mr. Michael Dahilig Mr. Larry Dill

ABSENT/EXCUSED: Mr. Roy Oyama

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

STAFF: Mr. David Craddick Mr. William Eddy Mr. Val Reyna Ms. Fay Tateishi Mr. Aaron Zambo Ms. Joy Buccal Mr. Gregg Fujikawa Ms. Sandi Nadatani-Mendez Deputy County Attomey Andrea Suzuki

GUESTS: Mr. Greg Allen, Kapa' a Highlands Mr. Max Graham, Kapa 'a Highlands, Allen Family LLC Ms. Joanne Allen, Kapa'a Highlands Mr. Barry Simmons, Oasis Water Systems

ACCEPTANCE OF AGENDA: Mr. Nishimura moved to accept the agenda as circulated, seconded by Mr. Dahilig. Mr. Nishimura moved to amend the agenda date from, "Thursday," to "Friday, July 20, 20 12," seconded by Mr. Dill. With no objections to this amendment, motion was canied with 6 ayes.

Chair Kaneshiro and Deputy County Attorney Andrea Suzuki called for a roll call.

Board Member, Mr. Nishimura Board Member, Mr. McCormick Board Member, Mr. Nakaya Board Member, Mr. Dahilig Board Member, Mr. Dill

Regular Meeting: Friday, July 20, 2012- Page 1 of 10 Chair, Mr. Kaneshiro

At this time, 6 board members answered present to roll call.

MINUTES: Review and approval of: Regular Board Meeting- June 28, 2012 ·~ Acting Private Secretary Mary-jane Garasi noted for Board Chair, Kaneshiro to amend the minutes to reflect correction on page 12 No.2 to state, "Part 4 Section III."

Mr Nishimura moved to approve Regular Board Meeting minutes dated June 28, 2012 as amended, seconded by Mr. McCmmick, with no objections; motion was carried with 6 ayes.

Review & Receive Executive Session Transcript: Executive Session- a. December 8, 2011 b. December 15,2011 c. December 22,2011 i. Session 1 ii. Session 2 d. January 5, 2012 e. January 23, 2012 f. January 26, 2012 g. March 22, 2012 i. Session 1 ii. Session 2 m. Session 4 h. May 24.2012 1vlr. Nishimura moved to receive Executive Session transcripts dated for December 8, 15, 22, ·' Sessions 1 and 2 2011; January 5, 23, 26, 2012; March 22 Session 1, 2, 4, and May 24, 2012, along with the voice recordings, seconded by Mr. Nakaya, with no objections motion was carried with 6 ayes.

CORRESPONDENCE/ANNOUNCEMENTS No correspondence was presented at this meeting.

Chair Kaneshiro announced the Kaua'i Board of Water Supply will be holding a Public Hearing on Tuesday, August 21, 2012 at 6 p.m.

BOARD COMMITTEE REPORTS Report of the Rules Committee of the Kaua'i County Board of Water Supply a. Impact Fees and FRC Proposed Rule

Regular Meeting: Friday, July 20, 2012- Page 2 of 10 Rules Committee Chair Dahilig reported that the rules committee was scheduled to meet on Tuesday, July 17,2012, but cancelled. A report will be appropriately disseminated when a date can be further scheduled.

Mr. Nishimura moved to approve the report of the Rules Committee, seconded by Mr. Dill; by a unanimous vote, motion was carried with 6 ayes.

OLD BUSINESS Re: Manager's Report No. 12-71(revised/- Revision of Board Policy No. 22 concerning change order threshold update Manager Craddick explained that No. 6 and No. 7 has been dropped and the minimum threshold amount decreased from $25,000 to $20,000.

DISCUSSION: Mr. Nishimura pointed out two issues. The current policy is not being followed. The 5% contingency that is on the total contract amount should mean that the budget for that particular project be reduced once the contract is signed and that subsequent change order be subject to that 5% contingency. It is recommended that the stafflooks at the overall policy to come up with revisions that are accurately reflecting what is being done, whereas the I 0% that is being created should be approached in a different manner.

Mr. Nishimura moved to defer indefinitely. Manager's Report No. 12-71(revised)- Revision of Board Policy No. 22 concerning change order threshold update, seconded by Mr. McCormick; with no objections, motion was carried with 6 ayes.

NEW BUSINESS Re: Manager's Report No. 13 -1-Manager's recommendation regarding correspondence from Kapa 'a Highlands Subdivision Planning Commission Subdivision No. S-99-45 Chair Kaneshiro recused himself from this agenda item and turned over the meeting to Vice Chair, Mr. Nakaya.

Mr. Nishimura moved to receive Manager's Report No. 13-1- Manager's recommendation regarding correspondence from Kapaa Highlands Subdivision Planning Commission Subdivision No. S-99-45 for the record, seconded by Mr. Dahilig, with no objections; motion was carried with 5 ayes.

DISCUSSION: Manager Craddick gave the board a little background on the proposal and his recommendation.

BACKGROUND: This project was presented to the Board a few months back and approved with the understanding there would be additional Affordable Housing provided that made this project unique. The Mayor's office and housing were also consulted and felt that the affordable

Regular Meeting: Friday, July 20,2012- Page 3 of 10 housing aspect was something the County had in its community plans and would be approved when the time came.

Subsequent to that approval the developer was unable to get state rezoning for reasons we are unaware of. Manager Craddick believes this project is not meeting the spirit of the original Board approval and could not accept the revised proposal without Board concurrence.

The developer has asked for changes from the original proposal which was to provide excess source for storage on a dollar for dollar basis and given priority treatment based on the prospect of providing what we believed was affordable housing above the minimum affordable housing required of every other developer. The developer also wants approval for an agricultural subdivision that they plan to CPR whether the affordable housing moves forward or not. If it does move forward, they do not want to provide any more affordable housing than what is required by the county ordinance.

The developer also wants to provide source and pay the DOW pro-rata cost for existing storage and proposed storage subject to the DOW completing its storage project.

There are a number of projects waiting for the additional source and storage. The project before you has the ability to use most of the available storage by providing source only. In approving this we would in essence be setting aside most of the available and proposed storage for a developer that is being allowed to jump ahead of other developers that have the same requirements we have given this developer.

Should the Board decide the project is approvable on some basis it should not be allowed on a pro rata cost basis as existing and future storage involves land costs and a lengthy pipeline not included in the existing and proposed tank cost to bring the water into the system.

These additional cost factors result from land costs associated with the extra storage that is not on DOW land. Any new storage project would have a mile long transmission pipeline to connect to the system. Both these land matters will require condemnation of the land. These costs are not part of the current project cost that they are requesting to pay a pro-rata share of. Any pro-rata costs should include replacement land costs and pipeline to connect this tank to the system in the cost factor.

Mr. Graham testified to the board to represent the applicant Principal Greg Allen for the Allen Family LLC.

This started out as an agricultural subdivision with 12 ag lots and a couple of road way and remnant lots. The lots located in the area which covers lots 6-12 are also part of the general plan urban center land classification under the Kaua 'i County's general plan. As a result, with the encouragement of the County, the applicant is proceeding with the plan to develop that area as a residential project. In order to do that, Greg Allen needs to have the State Land Use Commission district change from the agriculture district to the urban district. This is in the process now and when that is approved, he would have to obtain the planning commission to review and the

Regular Meeting: Friday, July 20, 2012- Page 4 of 10 County Councils' approval of the zoning change to residential. The state land use commission has not abandoned their attempt to get the LUC approval.

Mr. Allen explained about the status of the land use application. He stated that the draft EA is completed which have taken two years of revision from the staff and was submitted this week by Peter Young to the new administrator and staff at the LUC. An e-mail was sent to Mr. Allen stating the LUC was pleased with the progress that has been made and they recommended that the DEA "Draft Environmental Assessment" be sent to 8 agencies. Peter Young's meeting with the Executive Director and the staff at the LUC was held yesterday and Mr. Allen explained that his staff is following up on LUC's direction to provide copies of the draft EA to state and county agencies prior from draft going to OEQC for a formal submission. The LUC executive director and planner were appreciative and positive about the steps that have been taken. Steps that has been taken were a traffic study which Mr. McCormick was given, an agricultural sustainability historic SHPD, and all the different studies to get to an EIS. The statement that was given about the developer being "unable" to get state rezoning is absolutely wrong, but in fact happy about the progress that is being made.

Mr. Graham noted that there is a time pressure which is driving this request. The proposal essentially is to provide a new well at no cost to the department which will provide a new source of Wilter for the Kapa 'a system at the applicant's expense. If the residential project eventually gets approved that would provide the required 30% affordable housing. It's a moderate income housing project that meets the housing requirements ofKaua 'i residents. The pluses accepting the agreement would be that the county would get a new well water source and promote the chances that this moderate income housing would be completed. The downside for the County if that if the ag subdivision is approved and if the well didn't function as it should, there would be no water immediately available and pursuant to the agreement as long as there is no water available there will be no development. It would be an ag subdivision with no development.

Mr. Allen explained that the department has two tanks that support this project. One is a 214 and the other is a 313 foot tank. 95% of the project including all the urban housing area will work off the existing 214 foot tank. The only area that would require pressure off the 313 foot tank is 5 agriculture lots which have been previously tentatively approved. The 214 foot tank storage number was at 2 million and Stables is I million. The 2008 use was 2.4 million gallons and pending uses of coco palms for 159,000 gallons. The max figure balance in the 214 Tank is 344,000 gallons. The 214 tank has not been more than half full which at the last meeting; it has been told that it was full, but staff has said it has not been full. In 10 years, when the project is completely built out, it would use around 480,000 gallons which in the max capacity would not work. This proposal would come up with -150,000 gallons out of the 214 Tank, but 313 Tank would only provide 5% of the water needed. If the Ornellas IMG Tank and the Kukuiolono .25MG Tank is included in the next 10 years, the department ends up with a positive 872,000 gallons on a max day. The 872,000 minus the -150,000 gallons would leave the department with a positive number. The bottom line is 69% of the water for the project is available right now just off the 214 Tank. The project is on track and the department needs the source. When the water flowing out of the low income tank is pumping hard, the chlorides go through the roof. The test of this new development of this well is expected perform during this first 5 ag lots, if it fails, the agreement voids and no development of urban housing will be done.

Regular Meeting: Friday, July 20, 2012- Page 5 of 10 A year ago, there was a dollar for dollar recommendation from staff, which resulted to an 8 to 1 ratio from source to the department's storage. The Ornellas Tank provides 5% of the water for the subdivision. In the end, this proposal was changed. Everything that has been done in the last 5-6 years is on the line on this deal. Water is an important aspect that Allen LLC and department's staff are trying to work with and this proposal should be approved for the goodness of the people ofKaua'i.

Mr. Nishimura questioned to why Mr. Allen cannot live with the standard requirements that the department currently has. Mr. Allen explained there is not a convenient place to get the additional storage and the additional storage facilities are already on the department's side of the equation. The well that was dug was a lucky deal which has come to a decision to trade. It wouldn't make sense to build another tank to put another pipe down the road.

Mr. Allen explained to Mr. Nishimura that the hold up on the water department has been up for over four years. Mr. Graham also explained that the proposed modification with the department to trade for a well site to satisfy the source and storage requirements needed to be put into an agreement. The staff has not been able to come to an agreement.

Manager Craddick clarified that in this case the department has always asked for the client to provide source and storage and it is taking a large percentage of the available storage and to be built storage. The proposal to be agreed on is that they are not providing any more affordable housing that what is required so there is nothing really unique for this project. This raises the question to give others the option. This is mainly a timing issue, but regarding the department's liability should the department proceed?

Mr. Dill was concerned about the other projects that are in line for developed storage. Mr. Dill questioned Manager Craddick if the depattment has known of anyone else who is moving forward. Manager Craddick explained that the department has always asked for source and storage so there would be no reason to contact prior proposals. If the board decides to change those requirements, would there be liability issues for the department?

Mr. Dahilig stated that general obligation as board members are to provide and preserve and maintain the integrity of the public water system and motioned to move to executive session with invitations to Manager Craddick and the Chief of Water Resources & Planning, Mr. Fujikawa to assist the Deputy County Attorney Andrea Suzuki to render legal advice as it pertains to this item, seconded by Mr. Nishimura; with no objections, motion was carried with 5 ayes.

Vice Chair, Mr. Nakaya requested for a roll call vote.

Board Member, Mr. Nishimura Board Member, Mr. McCormick Board Member, Mr. Dahilig Board Member, Mr. Dill Vice Chair, Mr. Nakaya

Regular Meeting: Friday, July 20, 2012- Page 6 of 10 At this time, 5 board members answered Aye to the roll call vote.

At 10:55 a.m. Vice Chair, Nakaya has called the Regular Meeting into a recess, while the Board convened into an executive session.

Pursuant to Hawaii Revised Statutes Sections 92-4 and 92-5(a)(4), the pmpose of this executive session is to provide the Board with a briefing regarding a County Attorney opinion. 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

At 11:41, Vice Chair, Nakaya reconvened the Regular Meeting back into session.

Mr. Dahilig moved to defer Manager's Report No. 13 -1 -Manager's recommendation regarding correspondence from Kapa 'a Highlands Subdivision Planning Commission Subdivision No. S-99-45 to the end of the agenda and for the board to set a date to reconvene within four business days from today, seconded by Mr. Dill; by a unanimous vote, motion was carried with 5 ayes.

At 11:45, Chair Kaneshiro reconvened the Regular Meeting.

STAFF REPORTS Re: Statement ofKaua'i County Water Department's Revenues and Expenditures Mr. Dahilig moved to receive the Statement ofKaua'i County Water Department's Revenues and Expenditures, seconded by Mr. Nishimura; by a unanimous vote, motion was carried with 6 ayes.

Re: Report by the Public Relations Specialist on Public Relations Activities Ms. Buccal announced that tomorrow will be the DOW Omao Ranch Day at the Kaneshiro Ranch. All board members and families are welcome to join. Everyone will be bringing their own lunch.

Ms. Buccal also announced that the 9'" Annual Make a Splash Event is being held on Thursday, September 27,2012. Mr. Dill encouraged all board members to volunteer. Mr. Nishimura offered ice to the department for the Annual Make a Splash Event.

Mr. Nakaya moved to receive the Report by the Public Relations Specialist on Public Relations Activities, seconded by Mr. Dill; by a unanimous vote, motion was carried with 6 ayes.

Re: Chief of Operation's Summary Report on Monthly Operational Maintenance Mr. Reyna announced that the highlight for this report is the vehicle replacement report. This fiscal year there is one vehicle up for replacement. Next fiscal year, there will be four vehicles scheduled for replacement.

Regular Meeting: Friday, July 20, 2012- Page 7 of 10 Mr. Nishimura questioned Mr. Reyna on the source & storage points regarding the sanitary survey on the on-going corrective actions. Mr. Reyna explained that these are regular inspections performed by the Department of Health and the EPA. They inspect the remote sights and are scheduled to inspect one subsystem per visit and would last one or two days depending on the remote sites in the subsystem to ensure that the department are up to standards and that the water that is distributed to our consumers are safe for consumption.

Mr. Reyna explained to Mr. Dill that the past practice the department has followed regarding the life of a car is either 7 years or over 100,000 miles either or depending on the usage of the vehicle. Vehicles that are over 7 years and over 100,000 miles that are still running don't necessarily get replaced, these vehicles are kept for the department to continue to use until a maintenance issue arises.

Mr. Nishimura moved to receive the Chief of Operation's Summary Report on Monthly Operational Maintenance, seconded by Mr. Dahilig; by a unanimous vote, motion was carried with 6 ayes.

Re: Water Resources and Planning Subdivision Report Mr. Dahilig moved to receive the Water Resources and Planning Subdivision Report, seconded by Mr. Nishimura; by a unanimous vote, motion was carried with 6 ayes.

Re: Manager's Monthly Update Regarding Activities of Note of the Kana 'i County Water Department The board has requested the Manger to report the Goals for the Manager on the next month's board meeting.

Mr. Nishimura moved to receive the Manager's Monthly Update Regarding Activities of Note of the Kaua'i County Water Department seconded by Mr. McCormick; by a unanimous vote, motion was carried with 6 ayes.

BOARD MEMBER REPORTS on AWW A training: 1. Randall Nishimura Mr. Nishimura pointed out that a report was given to all board members and staff. Sandi Nadatani-Mendez made a good comment about the presentation of the food network as opposed to running a water utility company which is an excellent educational presentation for all the division heads, staff, and everyone to view. It was informative and entertaining and Mr. Nishimura recommended Manager Craddick to set aside some time for his staff to view the power point presentation.

2. Larry Dill Mr. Dill gave a verbal report on his training in Dallas and thanked both the board and the staff in attending this training, Mr. Dill attended numerous workshops like rate making, scada systems, the latest technologies, and keeping up with infrastructure needs. Mr. Dill expressed his appreciation that Mayor Carvalho was able to attend and enhance his familiarity and understanding with the challenges the depatiment is facing.

Regular Meeting: Friday, July 20, 2012- Page 8 of 10 Mr. Dahilig moved to receive both Mr. Nishimura and Mr. Dill's report on the A WWA training, seconded by Mr. Mr. Nakaya; by a unanimous vote, motion was carried with 6 ayes.

Mr. Dahilig leaves at 11:59 a.m.

QUARTERLY 1. Project Status Update 2. Affordable Housing Update

Deputy Manager Bill Eddy explained the graph presented to the board. The current rate the department spent about $28M and the department has $32M to spend. The department's encumbrance of showing contracted funds shows approximately $18M remained and encumbered about $42M this time. The department is well on the way to meet the required encumbered. Two tanks are nearly ready to be put out to bid, so all of the encumbered BAB funds will be encumbered by the end of this year.

Mr. Nishimura requested for Mr. Moises to double check the Project Status Update. There should have been a few projects that should have been completed.

Mr. Nishimura moved to receive the Affordable Housing Quarterly Update and for the staff to resubmit the Project Status Quarterly Update and defer to the next month's meeting, seconded by Mr. Nakaya, by a unanimous vote; motion was carried with 5 ayes.

Chair Kaneshiro requested for the board to rearrange the agenda and to move the Agenda Item J. Executive Session to the end ofthe Regular Board Meeting.

TOPICS FOR NEXT WATER BOARD MEETING l. Resolution No. 13-1 -Budget for 2013 (August 2012) 2. Draft Rule Change for Qualifications for Agriculture charges and rates in Part 4 Section III of the Rules (August 2012) 3. Public Hearing for Part II Rule- Leak Rebate Cancellation (August 2012) 4. Public Hearing for Part III Rule- Establishing Standards for Subdivision Water Systems (August 2012) 5. Manager's Goals 6. Amend BAB Project List 7. Employee Morale

TOPICS FOR FUTURE WATER BOARD MEETINGS 1. Job Performance Evaluation for Manager and Chief Engineer 2. Amend Budget (12113) $40K to contract consultant for FRC payments received

UPCOMING EVENTS 1. Project Wet- Make a Splash- September 27, 2012, Department of Water 2. HWWA Conference- October 17-19, 2012, Ala Moana Hotel, Honolulu

Regular Meeting: Friday, July 20,2012- Page 9 of 10 Big Island Board of Water suggested one Kaua 'i board member to attend

NEXT WATER BOARD MEETING 1. Thursday, August 23, 2012, 10:00 a.m. 2. Thursday, September 20, 2012, 10:00 a.m. 3. Thursday, October 25, 2012, 10:00 a.m. 4. Wednesday, November 21,2012, 10:00 a.m. 5. Thursday, December 27,2012, 10:00 a.m.

The changes to the Waterboard Meetings have been updated as follows: 1. Tuesday, August 21, 2012,2:00 p.m. 2. Thursday, September 20,2012, 10:00 a.m. 3. Thursday, October 25,2012, 10:00 a.m. 4. Thursday, November 29, 2012, 10:00 a.m. 5. Thursday, December 27, 2012, 10:00 a.m.

At 12:20 p.m. Chair Kaneshiro called for the Regular Meeting to recess while the Board convened into an executive session.

EXECUTIVE SESSION Pursuant to H.R.S. §92-7(a), the Board may, when deemed necess(l}y, 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-S(a).

I. Pursuant to Haw. Rev. Stat §§92-4 aml92-5(a)(2), the purpose of this e:recutive session is to receive and review correspondence from the Department of Water's Manager and Chief Engineer as requested by the Board. This deliberation involl•es matters affecting the privctcy of the Manager and Chief Engineer. If the individual concemed requests an open meeting, an open meeting shall be held.

At 12:25 Chair Kaneshiro movedfor the Regular Meeting back into session.

RECESS Mr. Nishimura moved to recess the Regular Board Meeting to Monday, July 23, 2012 at 4 p.m., at the Department of Water Board Conference Room,seconded by Mr. McCormick, with a unanimous vote; motion was carried with 5 ayes.

Respectfully Submitted, Approved,

Mary-jane Garasi Randall Nishimura Acting Private Secretary Secretary-· Board of Water Supply

. Regular Meeting: Friday, July 20, 2012- Page 10 of 10 REGULAR MEETING MINUTES BOARD OF WATER SUPPLY Monday, July 23, 2012

The Board of Water Supply, County ofKaua'i, met in regular meeting at the Board Conference Room in Lihu'e on Monday, July 23,2012. Vice Chairperson Clyde Nakaya reconvened the Board of Water Suppy Regular Meeting back to order at 4: I 0 p.m. On roll call, the following answered present:

BOARD: Vice Chair Person, Mr. Clyde Nakaya Mr. Michael Dahilig Ooined via teleconference) Mr. Randall Nishimura Mr. Raymond McCormick

ABSENT/EXCUSED: Mr. Daryl Kaneshiro, Chairperson Mr. Roy Oyama Mr. Lawrence Dill

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

STAFF: Mr. David Craddick Mr. William Eddy Mr. Gregg Fujikawa Deputy County Attorney Andrea Suzuki Ms. Joy Buccat

GUESTS: Mr. Greg Allen, Kapa 'a Highlands Mr. Max Graham, Kapa 'a Highlands, Allen Family LLC Ms. Joanne Allen, Kapa 'a Highlands

NEW BUSINESS Re: Manager's Report No. 13 -1- Manager's recommendation regarding correspondence from Kapa'a Highlands Subdivision Planning Commission Subdivision No. S-99-45

Mr. Nishimura moved for the board to enter into an executive session, with no objections; motion was carried.

Pursuant to Hawaii Revised Statutes Sections 92-4 am/92-S(a) (4), the purpose of this executive session is to provide the Board with a briefing regarding a County Attomey opinion. This briefing am/ consultation involves the consideration of the powers, duties, privileges, immunities and/or liabilities of the Board and the Depal'tment as they relate to this agenda item

Vice Chair Nakaya requested a roll call.

Regular Meeting: Monday, July 23,2012- Page 1 of3 Vice Chair Person, Mr. Clyde Nakaya Mr. Michael Dahilig (joined via teleconference) Mr. Randall Nishimura Mr. Raymond McCormick

At this time, 4 board members answered present to roll call.

At 4:13p.m. Vice Chair Nakaya moved for the Regular Meeting into recess and the board into executive session.

At 4:36p.m. Vice Chair Nakaya moved for the Regular Meeting back into session.

Re: Manager's Report No. 13 -1- Manager's recommendation regarding correspondence from Kapa 'a Highlands Subdivision Planning Commission Subdivision No. S-99-45 DISCUSSION: Mr. Nishimura expressed his concern that there is enough disagreement in the applicant and the department that what really needs to be established is:

I. What is the affordable housing component that is part of this development in units/percentage? 2. The cost of the affordable housing

Affordable housing was the reason why the board had some agreement on going forward to deviate from the standards. With the supposed changes in possible numbers, the board does not know what they are looking at. If there is no numbers increased for the affordable housing units in a significant manner. It almost eliminates this special case that allows the board to deviate from the standards.

The department has recommended for the board to defer any action on this, and that the applicants shall be given some kind of closure to this item.

a. Understanding the affordable housing component of the application in terms of number of units/percentage. b. The items that the department does not agree with the applicants and the reasons where they do not agree and concurrence from the applicant that they agree that these are the disagreements. c. Concurrence fi·om the applicant on the items there is disagreement.

DISCUSSION: Mr. Allen explained that the choice was between an ag subdivision which was 50 units and an urban subdivision which included affordable housing. The County wanted housing residences

Regular Meeting: Monday, July 23,2012- Page 2 of3 that middle income people can afford. The 800 units that were proposed and by the nature of the design they will be affordable. The units will probably be below the affordable market compared to the County's standard market rate which is based on the median income and on Kauai it is $66,000. This doesn't really achieve the affordable residence any way even though it fits Ordinance 860 so by the market. The goal is for the 600 townhouse units to be the most affordable housing to live in Kapa 'a. The bottleneck to this agreement has been with the Department of Water for over four years. Since the source is available and the department has the storage, the question now is how to differentiate between what they are worth.

Mr. Allen clarified to Mr. Nishimura that the equivalence of the water given for the 5 ag lots and the 600 townhomes will be given to the DOW upfront.

The understanding from Manager Craddick's recommendation to defer this item is to gather information on other clients whose projects are possible ahead of this one. This would give them a fair chance to proceed without having projects jump in front of another. The time line than can be given to them would be 30 days.

Board Members, Mr. McCormick, Mr. Dahilig, and Mr. Nishimura expressed concerns that issues of an agreeable proposal has not been presented to the board. Issues have to be ironed out before coming to the board level.

Mr. Nishimura moved to defer Manager's Report No. 13- 1 -Manager's recommendation regarding correspondence from Kapa 'a Highlands Subdivision Planning Commission Subdivision No. S-99-45 for 30 days and given a report on the reasons previously stated with the amendment and seconded by Mr. McCormick to add that in the event that the DOW staff and Kapa 'a Highlands can come to agreeable terms before the 30 days, a special board meeting will be held.

Vice Chair Nakaya request for board members to do a verbal vote. Board Member Nishimura-Aye Board Member McCormick-Aye Board Member Dahilig-Aye Vice Chairman Nakaya-Aye

By a unanimous vote, motion was carried with 4 ayes.

ADJOURNMENT Vice Chair Nakaya moved to adjoum the Regular Board Meeting at 4:55p.m.; with no objections, motion was carried.

Respectfully Submitted, Approved,

Mary-jane Garasi Randall Nishimura Acting Private Secretary Secretary- Board of Water Supply

Regular Meeting: Monday, July 23,2012- Page 3 of3

DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute~ Conserve It!"

MANAGER'S REPORT No. 13-1 (l·evised):

August 21, 2012

Re: Points of disagreement with Kapa' a Highlands proposal

UPDATE: 8114112- After a meeting with DOW Staff and Max W. J. Graham, Jr. a resolution to this proposal may preside between 8/14/12 and 8/21/12. Should a proposed agreement be drafted before the meeting, a hard copy will be provided for the Board. Although the Board asked for concurrence, we are still trying to arrive at mutually agreeable terms.

BACKGROUND: On the July 23'd recessed Regular Board meeting, the board has requested to clarity:

a. Understanding the affordable housing component of the application in terms of number of units/percentage. b. The items that the department does not agree with the applicants and the reasons where they do not agree and concurrence from the applicant that they agree that these are the disagreements c. Concurrence from the applicant on the items there is disagreement.

1. We are unsure of the amount of affordable housing to be provided above and beyond the requirements of the County's Housing Ordinance. Kapa 'a Highlands is saying they will provide the minimum required by County ordinance.

2. DOW has never given an allocation of resources or committed water before a project has zoning. Kapa'a Highlands is requesting an allocation of resources before getting zoning for its project.

3. We are asking for a Master plan revision to reflect the revised plan.

Kapa 'a Highlands does not want to provide a revised master plan. The third MOU submitted on or about June 15,2012 by Max Graham's office states that they want the Department to agree to provide water meters together with all of the their potable, agricultural and fire protection needs for phase I, the "residential project" and Phase II if the applicant has bonded the FRC. The FRC should be paid (in full) prior to DOW building permit approval and DOW water meter approval. Bonding for FRC should not be allowed as a substitute for fhll payment for building permit and water meter service. The Rules/ Subdivision Ordinance only allow the FRC to be bonded for Final Subdivision map approval by the Planning Commission. The Rule further says that the FRC must be paid and necessary (bonded) water system improvements must be completed and accepted prior to water meter approval.

4. DOW is restricting where storage resources will come so all resources which were installed to meet county affordable housing requirements are not used by a single developer until zoning is approved.

---4398 Pua lake Street, llhu'e, Kaua'i, Hawal'i or P. 0. 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 Manager's Report No. 13-l Points of Disagreement with the Kapaa Highlands Proposal August 21,2012 Page 2 of2 Kapa 'a Highlands does not agree with DOW and wants all available resources at a certain elevation.

5. DOW wants payment as storage is constructed and if already constructed payment immediatly.

Developer wants to pay as meters are taken. The third MOU states that the Department agrees to provide water meters together with all of their potable, agriculture and fire protection needs if the applicant bonds the construction of the water improvements. The Rules/Subdivision Ordinance only allows the posting of a bond for the construction and completion of necessary water facilities for Final Subdivision map approval. The necessary water facilities and improvements (on-site and off-site) for the "residential project" should be constructed, completed and accepted prior to building pennit and/or water meter approval.

6. DOW standards require well site to be conveyed fee simple. Kapa 'a Highlands latest proposal is to convey a site easement and not fee simple.

7. DOW rules require construction and conveyance of water system facilities (distribution, transmission, source and storage) prior to issuance of water service. Kapa' a Highlands latest proposal is that water service for Phase I not be dependent on actual construction of water system facilities.

8. DOW has offered to explore the possibility of bonding and cost sharing of the Kapahi 325' Tanks that are currently in design to satisfy the storage requirements for the current 13 lot subdivision that has tentative subdivision approval. Cost sharing for the existing Stable 214' Tanks is not acceptable as there is not enough excess capacity in this system. Cost share of the Kapahi 325' Tank for the residential project may be a possibility once the property is zoned for the residential project and at the time of subdivision. Kapa' a Highlands latest proposal to provide project storage capacity for the Residential and Phase II states the Applicant will pay the " ... proportionate share of the total constmction costs for existing or new water tanks owned by the Department. .. "

Re.peot~m;:/)J-

David R. Craddick P.E., C.E.M. Manager and Chief Engineer

Mgnp!/August 2012/13-1 (revised) Points of disagreement with Kapa'a Highlands proposal (8-21-12) mjg

: : : : : : : : : : : : : : : : : : LAND COURT SYSTEM REGULAR SYSTEM After Recordation, Return by: Mail ( X ) Pickup ( ) BELLES GRAHAM PROUDFOOT WILSON & CHUN, LLP (mwg) 4334 RICE STREET SUITE 202 LIHUE KAUAI HI 96766 PHONE: (808) 246-6962 This document contains ______pages.

TYPE OF DOCUMENT:

KAPAA HIGHLANDS WATER AGREEMENT

PARTIES TO DOCUMENT:

APPLICANT: ALLEN FAMILY, LLC, an Arizona limited liability company; MOLOA'A BAY VENTURES, LLC, a Hawaii limited liability company; and THE THREE STOOGES LLC, a Hawaii limited liability company 161 Wailua Road Kapaa, Kauai, Hawaii96746

DEPARTMENT OF WATER: DEPARTMENT OF WATER, COUNTY OF KAUAI P. O. Box 1706 Lihue, Kauai, Hawaii96766

TAX MAP KEY FOR PROPERTY:

(4) 4-3-003:001

{W:\DOCS\26800\1\W0124809.DOC} -1-

KAPAA HIGHLANDS WATER AGREEMENT

THIS KAPAA HIGHLANDS WATER AGREEMENT ("Agreement") is entered into by and between ALLEN FAMILY, LLC, an Arizona limited liability company, MOLOA'A BAY VENTURES, LLC, a Hawaii limited liability company, and THE THREE STOOGES LLC, a Hawaii limited liability company, all of whose mailing address is 161 Wailua Road, Kapaa, Kauai, Hawaii 96746 (collectively, the "Applicant"), and the DEPARTMENT OF WATER, COUNTY OF KAUAI, whose mailing address is P. O. Box 1706, Lihue, Kauai, Hawaii 96766 ("Department").

1. RECITALS

1.1 Kapaa Highlands. The Applicant is the developer and owner of that certain real property known as the Kapaa Highlands located in Kapaa, Kauai, Hawaii, identified by Kauai Tax Map Key No. (4) 4-3-003:001 ("Property").

1.2 Subdivision. The Applicant has filed an application with the Planning Commission of the County of Kauai (hereinafter called the "Planning Commission") under Planning Commission Subdivision No. S-99-45 for the subdivision of the Property into Lots 1 to 18 ("Subdivision Lots"), inclusive, of the Kapaa Highlands Subdivision (hereinafter called the "Subdivision"). The Subdivision Lots are described as: 12 Agricultural Lots (with a maximum density of 50 farm dwelling units); 1 Road Lot; 1 Sidewalk Lot; and 4 Remnant Lots.

1.3 Subdivision Requirements. Condition 3.b. of the Conditions of Tentative Approval for the Subdivision as set forth in that certain letter dated April 1, 2001, from the Planning Director, County of Kauai, and as amended by a Revised Subdivision Report dated October 9, 2007 from the Department (jointly, the "Department's Initial Subdivision Report"), require the Applicant to make improvements to the Department's public water system in the Kapaa Area, including source, storage and transmission facilities, as a condition of obtaining final approval of the Subdivision. In addition, the Department's Initial Subdivision Report requires the Applicant to prepare a "Water Master Plan" detailing water demand calculations and proposed water infrastructure improvements for any development beyond the Subdivision as approved by the Department.

1.4 Residential Project. The Applicant is presently applying for necessary land use approvals to develop an approximately 97 acre portion of the Property (which includes Subdivision Lots 6 through 12) into an approximately 816 unit residential planned community development known as the Kapaa Highlands Residential Project containing: single-family detached and attached dwelling units; multi-family dwelling units; and affordable housing units (collectively, the "Residential Project").

{W:\DOCS\26800\1\W0124809.DOC} -2-

1.5 Applicant's Proposed Development Schedule. The Applicant proposes to develop the Property as follows:

a. Subdivision Phase I. Phase I of the Subdivision will consist of: Agricultural Lots 1 through 5 (containing a maximum of 16 farm dwelling units); Road Lot 13 (Kapaa Bypass Road); Sidewalk Lot 14; and Remnant Lots 15 through 18 (collectively, the "Phase I Lots").

b. Subdivision Phase II. Phase II of the Subdivision will consist of Agricultural Lots 6 through 12 (containing a maximum of 34 farm dwelling units) ("Phase II Lots").

c. Residential Project. If the Applicant is able to obtain the necessary land use approvals for the land encompassed by Subdivision Lots 6 through 12 ("Residential Project Area"), then the Applicant intends to develop the Residential Project on the Residential Project Area. Such land use approvals include: the redistricting of the Residential Project Area by the State Land Use Commission ("SLUC") into the Urban District; and the rezoning of the Residential Project Area by the Council of the County of Kauai ("County Council") into the Residential District (jointly, the "Land Use Approvals"). The Residential Project will consist of approximately 769 single family and multiple family dwelling units. Up to thirty percent (30%) of the units will be offered at the rental and/or sales prices for Workforce Housing contained in the Housing Policy of the County of Kauai (Ord. No. 860). The remainder will be offered at prices affordable to moderate income families with the primary focus being Kauai residents.

1.6 Department Tanks. The Department owns and operates water tank storage sitestanks ("Department Tanks") including a water tank known as the "Stable Tank" which havehas the potential of storing and providing water for some or all of the water service requirements of the Subdivision and of the Residential Project. However, no. The Department is also considering the development of a new water tank known as the "Ornellas Tank" which, if constructed, could provide water storage capacity from existing Department storage tanks is currently allocated for the proposed Subdivision and Residential Project.

1.7 Well System. The Applicant has the ability to develop a new well and related facilities ("Well System") on the Property which could produce potable water at the rate of at least 500 gallons per minute (gpm). The Applicant is willing to develop this Well System and convey it to the Department (at no cost) in exchange for the Department's agreement to provide water storage in the Stable Tank (for the Subdivision) and in the Ornellas Tank (for the Residential Project), provided that the Applicant pays its pro-rata share of the Construction Costs (as defined herein) for such storage capacity.

1.8 Modification of Requirements. Pursuant to the provisions of Part 3, Section XII of the Department's Rules and Regulations ("Department Rules"), the Department has agreed to revise certain of the requirements contained in the Department's Initial Subdivision Report (including those relating to source and storage) in exchange for water source capacity to

{W:\DOCS\26800\1\W0124809.DOC} -3- be provided by the Applicant to the Department. The new, revised requirements shall be contained in a new Subdivision Report which shall be in the form shown on Exhibit "A", attached hereto and incorporated herein ("Department's New Subdivision Report").

1.81.9 Water Service. In consideration of the Applicant's performance of its duties under the terms and conditions of this Agreement, the Department will specifically provide water storage system capacity for potable uses, agricultural uses and fire protection as required for Phase I and for Phase II, and potable uses and fire protection for the Residential Project, as provided herein. The agricultural water demands for Phase I ("and Phase I Water Demand"), Phase II ("Phase II Water Demand"), and the Residential Project ("Residential Project Water Demand")II shall be based on the Goat Project described in the Kapaa Highlands Agricultural Master Plan (6/1/07) filed by the Applicant with the Planning Commission in the Subdivision matter (which will involve 356 goats). The water requirement for each goat is deemed to be ten (10) gallons per goat per day. The water demand for the Residential Project shall be determined at the time the Department approves the installation of the water meters, and shall be based on standard water consumption standards as contained in the Department Rules, and. These water demands are further described as follows:

a. Phase I Water Demand. Sixteen (16) farm dwelling units and up to 50 acres of agricultural lands. (Lots 1-5).

(i) Potable Water

16 units x 750 gpd = 12,000 gpd

(ii) Ag Water (Goats)

130 goats (50.853 ac.) = 1,300 gpd

(iii) Total Water Service = 13,300 gpd

b. Phase II Water Demand. Thirty-four (34) farm dwelling units and up to 85 acres of agricultural lands (Lots 6-12).

(i) Potable Water

34 units x 750 gpd = 25,500 gpd

(ii) Ag Water (Irrigation)

226 Goats (88.642 ac.) = 2,260 gpd

(iii) Total Water Service = 27,760 gpd

{W:\DOCS\26800\1\W0124809.DOC} -4-

c. Residential Project Water Demand. Eight hundred sixteen (816) single family and multi-family dwelling units.

(i) Single family residential = 86 units

(ii) Multiple family residential = 683 units

Total = 769 units

(iii) Other

Parks = 3.1 ac. Church = 0.8 ac. Gen. Commercial = 0.4 ac. Roads = 9.4 ac. Open Space = 14.3 ac.

(iv) Water Service

Maximum Day = 448,275 gpd

1.92.0 Housing Policy. In further consideration of this Agreement, the Applicant agrees to satisfy all of the requirements of the Housing Policy of the County of Kauai (Ordinance No. 860) applicable to Phase I, Phase II, and the Residential Project.

2. APPLICANT'S DUTIES

In order to fulfill its duties and obligations under this Agreement, the Applicant agrees to do the following (collectively, the "Applicant's Duties"): 2. WELL SYSTEM

2.1 Well Facilities. The Applicant shall develop and construct a well with a minimum diameter of twelve (12) inches ("Well"), pump facilities (including two pumps), electrical and electronic facilities, an emergency generator, and related structures and facilities (collectively the "Well Facilities") on the Property in an area designated as the "Well Site" in accordance with Department standards. The Well Facilities shall be tested per Department standards to determine the sustainable yield.

2.2 Transmission Line. The Applicant shall develop and construct a water transmission line ("Transmission Line") connecting the Well Facilities to the Department’s existing 16” diameter waterline on Olohena Road ("Olohena Waterline"). The Transmission Line shall be sized per the DOW approved Water Master Plan.

{W:\DOCS\26800\1\W0124809.DOC} -5-

2.3 Electrical Transmission Facilities. The Applicant shall develop and construct electrical and electronic transmission lines, poles, conduit and related facilities ("Electrical Transmission Facilities") necessary to provide the Well Facilities with all required electrical power and phone and electronic communications services. The Applicant will grant the Kauai Island Utility Cooperative ("KIUC") such easements over the Property as may be required by KIUC for the Electrical Transmission Facilities. The Electrical Transmission Facilities shall be constructed in accordance with KIUC standards pursuant to construction and engineering plans approved by KIUC. Provided, however, that the Electrical Transmission Facilities shall not include any SCADA equipment, communication facilities, or data transmission devices.

2.4 Well Site. The Applicant shall convey to the Board of Water the Well Site as an exclusive, perpetual easement ("Well Site Easement"). The location of the Well Site shall not be determined until the Applicant has constructed a Well that meets the requirements of this Agreement. The Applicant shall convey the Well Site Easement before receiving Certificate of Completion from the Department. The Well Site Easement shall provide that the Department has the right to further subdivide the Well Site from the Property, and that Applicant will cooperate in any such subdivision and will convey fee simple title to the Well Site lot to the Board of Water.

2.5 Easements. The Applicant shall convey the following perpetual grants of easements ("Easements") to the Board of Water:

a. The Well Site Easement, which shall be a perpetual, exclusive easement for the Well Site;

b. A perpetual, nonexclusive easement for the portions of the Transmission Line located on the Property;

c. A perpetual, nonexclusive easement for the portions of the Electrical Transmission Facilities located on the Property; and

d. Perpetual, nonexclusive easements for vehicular and pedestrian access to the Well Site, Transmission Line, and Electrical Transmission Facilities. Any access road to the Well Site shall be a gravel roadway.

2.6 Well System. The Well, Well Facilities, Transmission Line, Electrical Transmission Facilities, Well Site, and Easements shall be referred to collectively as the "Well System".

2.7 Department Standards. The Applicant shall construct the Well System in accordance with the Water System Standards and pursuant to construction and engineering plans approved by Department and prepared by an engineer licensed in Hawaii. Furthermore, the Well System shall be constructed in accordance with the standards of the State of Hawaii, Department

{W:\DOCS\26800\1\W0124809.DOC} -6-

of Health and Commission on Water Resource Management. The said constructed Well System shall have water quality equal or better than existing Department wells in the Wailua-Kapaa area.

2.8 Final Subdivision Requirements. Prior to final approval of the Subdivision by the Planning Commission, the Applicant shall: either complete the requirements contained in the Department's New Subdivision Report and receive a Certificate of Completion for required water improvements; or (in order to secure final approval prior to construction of the required water improvements) enter into a construction agreement and bond pursuant to the Department Rules, Part III, Section XII. If a bond is filed to secure final Subdivision approval, the Applicant shall clearly letter the following on the approved construction plans, final subdivision map and deeds:

"Domestic water service will not be available until the required construction improvements for this subdivision are completed and accepted by the Department of Water, County of Kauai."

The deed restriction shall be recorded with the Bureau of Conveyances within (90) days of final subdivision approval by the Planning Department. The Applicant shall complete any and all other Department subdivision conditions for the subdivision.

2.9 Booster Pumps. The Applicant shall be solely responsible for installing booster pumps, pressure tanks, backflow preventers and/or other related facilities for all water meters servicing dwelling units on the Property which are located at elevations such that the water pressure will be less than that required by Department standards. Each parcel with the potential for substandard water pressure as determined by the Department shall have an "Elevation Agreement" pursuant to the Department Rules, Part II, Section IV and Part III, Section IX. Lot owners shall complete an "Elevation Agreement" with the Department of Water, County of Kauai. The agreement shall be completed prior to building permit or water meter approvals. A deed restriction describing the elevation agreement condition shall be recorded with the Bureau of Conveyances within (90) days final subdivision approval by the Planning Department and clearly lettered on the final subdivision map.

2.10 Water Master Plan. The Applicant has prepared and submitted to the Department a final Water Master Plan dated May 2009 (Revised June 2012) that describes all of the water facilities required for the subject Subdivision and Residential Project. The Department agrees to accept this Water Master Plan (as revised) as complying with the Department's requirements for final subdivision approval.

2.11 Storage.

a. The Department will allow the Applicant will pay its pro-rata share of the costs of constructing ("Construction Costs") any water tanks owned by the Department ("Department Tanks") which are used by the Applicant to meet the water storage requirements for ("Water Storage Requirements") Phase I, Phase II and/or the Residential Project. Such

{W:\DOCS\26800\1\W0124809.DOC} -7-

Construction Costs shall include any and all costs reasonably incurred by the Department in constructing such Department Tanks, including but not limited to: engineering, architectural, legal and other professional fees; site preparation; contractor's fees; labor and material costs; and any other associated fees and costs.

3. DEPARTMENT'S DUTIES b. The Applicant will have the right to pay its pro-rata share of the Construction Costs for storage only if the Applicant participates in the construction of the Department Tanks as provided in this Agreement. If the Applicant does not pay the Construction Costs at the time the new Department Tank is being constructed (including the Ornellas Tank), then no storage in the new Department Tank will be allocated to enter Phase II (Lots 6-12) or the Residential Project. In such case, the Applicant's right to use the then existing storage (if any) available in the Department's public water system or any future storage will be subject to the standard rules and requirements of the Department.

In order to fulfill its duties and responsibilities under this Agreement, and pursuant to its powers as set forth in Part 3, Section XII of the Department Rules, the Department agrees to do the following (collectively the "Department's Duties"): 3. SUBDIVISION/WATER METERS

3.1 Department Subdivision Requirements. The Department agrees to submit to the Planning Commission with regards to the Subdivision the Department's New Subdivision Report in the form attached hereto and incorporated herein as Exhibit "A"., which contains the following requirements:

a. The Applicant will pay the applicable Facility Reserve Charges ("FRC") (Transmission) for 8 additional meters for Lots 1-12. The parties understand and agree that there are already 4 meters at the Property.

b. The Applicant will construct or bond:

(i) Main off-site Extensions along Olohena Road (8" diameter) to appropriate connection point.

(ii) Fire Service connections.

(iii) On-site water improvements.

(iv) Well System.

c. The Applicant and the Department will enter into this Agreement.

d. The Applicant will pay for its pro-rata share of the Construction Costs for storage requirements for 7 meters in the Stable Tank.

{W:\DOCS\26800\1\W0124809.DOC} -8-

e. The Department will allow the Applicant to provide agricultural water needs for the Subdivision from the Department's water system based on the Goat Project. The Goat Project water needs are 10 gpd for each of the 356 goats for a total of 3,560 gpd.

3.2 Phase I Water Meters. The Department agrees to provide 1612 additional water meters within Lots 1 through 5 (in addition to the 4 meters already on these lots) for the 16 farm dwelling units proposed thereon, together with all of their potable, agricultural and fire protection needs ("Phase I Water Service") subject to the following conditions:

a. The Applicant has paid or bonded the Facilities Reserve Charge ("FRC") applicable to the Department's transmission facilities in effect at the time of payment for 16pays the applicable FRC for the 12 additional water meters.

b. The Applicant completes the Well System; the Applicant dedicates the Easements, Well Site, Well Facilities and Transmission Line to the Department; the Department accepts the dedication of the Easements, Well Site, Well Facilities and Transmission Line; and the Department has issued a Certificate of Completion for the Well System.

c. The Applicant either constructs the water improvements for the Subdivision as set forth in the Department's New Subdivision Report or bonds the construction of such facilities pursuant to the Subdivision Ordinance.

d. The Applicant agrees that no water meters for Additional Dwelling Units ("ADUs") will be allowed.

e. The Applicant agrees that there will be no water use on the 97 acre area that will be developed in Phase II unless the requirements set forth in Paragraphs 3.3 or 3.4 are fulfilled.

f. The Applicant agrees that the County of Kauai ("County") shall not be required to approve or issue any water meters or building permits for dwelling units or other improvements in Phase I which require water service until Applicant fulfills the requirements of this Paragraph 3.2.

g. The Applicant pays or bonds its pro-rata share of the Construction Costs of existing Department Tanksthe Stable Tank to meet the Phase I Water Storage Requirements, as determined by the Department.

h. To the extent that the Well Capacity is sufficient to meet the Phase I Water Service Requirements, the Applicant shall not be required to construct or bond additional source facilities. If the Well System does not produce sufficient water for the Phase I Water Service Requirements, then Applicant agrees that it will be required to construct

{W:\DOCS\26800\1\W0124809.DOC} -9-

additional source facilities or bond the cost of constructing additional source facilities before the Department will be obligated to provide Phase I Water Service.

3.3 Phase II Water Meters. The Department agrees to provide 34 water meters within Lots 6 through 12 for the 34 farm dwelling units proposed thereon, together with all of their potable, agricultural and fire protection needs ("Phase II Water Service") subject to the following conditions:

a. The Applicant has paid the FRCs in effect (at the time of payment) for 34 water meters.

c. The Applicant has completed the construction of the water improvements for the Subdivision as set forth in the Department's New Subdivision Report.

d. The Applicant agrees that no water meters for ADUs will be allowed.

e. The Applicant has: either paid or bonded the Applicant's pro-rata share of the Construction Costs for existing or new Department Tanks (including the Ornellas Tank) which may be necessary to meet the Phase II Water Storage Requirements, as determined by the Department; or has constructed such additional storage and related facilities as required by the Department. In either case, the Applicant shall not be entitled to Phase II Water Service until such storage facilities have been constructed and are in operation. Although the Applicant shall have the right to participate in the development of new Department Tanks (including the Ornellas Tank) as provided herein, the Department shall have the absolute discretion to determine when (if ever) and where to construct such new Department Tanks.

f. Applicant agrees that the County shall not be required to approve or issue any water meters or building permits for dwelling units or other improvements in Phase II which require water service until Applicant fulfills the requirements of this paragraph.

g. To the extent that the Well Capacity is sufficient to meet the Phase I and Phase II Water Service Requirements, the Applicant shall not be required to construct or bond additional source facilities. If the Well System does not produce sufficient water for the Phase I and Phase II Water Service Requirements, then Applicant agrees that it will be required to construct additional source facilities or bond the cost of constructing additional source facilities before the Department will be obligated to provide Phase II Water Service.

{W:\DOCS\26800\1\W0124809.DOC} -10-

3.4 Water Service for Residential Project. The Department will provide the Residential Project with all of its potable and fire protection needs ("Residential Water Service") subject to the following conditions:

a. The Applicant has paid the FRCs in effect (at the time of payment) for the water meters for dwelling units for which Residential Water Service is being sought.

c. The Applicant has obtained the Land Use Approvals, subdivision approvals, and discretionary governmental permits (if any) necessary to develop the Residential Project ("Project Permits").

d. The Applicant complies with any and all other Department requirements and conditions for the water facilities required by the Department for the Residential Project ("Project Water Facilities") which are necessary for the construction of the dwelling unit or facility for which Water Service is requested.

e. The Applicant either constructs or, where applicable, bonds the construction of the necessary Project Water Facilities.

f. The Water Service will be limited to not more than eightseven hundred sixteen (816sixty-nine (769) dwelling units, and water demand from other project developments such as parks, commercial, church, landscaping shall be deducted from this amount.

g. If the Applicant has not obtained the Project Permits within five (5) years of the date of this Agreement, then the Department shall have no obligation to provide Residential Water Service as described herein.

h. The Applicant either has paid or bonded the Applicant's pro-rata share of the Construction Costs for existing or new Department Tanks (including the Ornellas Tank) which may be necessary to meet the Residential Water Storage Requirements, as determined by the Department, or has constructed such additional storage and related facilities as required by the Department. In either case, the Applicant shall not be entitled to Residential Water Service until such storage facilities have been constructed and are in operation. Although the Applicant shall have the right to participate in the development of new Department Tanks (including the Ornellas Tank) as provided herein, the Department shall have the absolute discretion to determine when (if ever) and where to construct such new Department Tanks.

{W:\DOCS\26800\1\W0124809.DOC} -11-

i. The Department agrees to creditallow the Residential Project withto use all Phase II Water Storage capacity which the Applicant has paid for or bonded pursuant to Section 3.3.e.

j. The Department agrees to credit the Residential Project with: the amount of source from the Well System allocated to the Phase II Water Service Requirements; and any additional source facilities constructed or bonded by Applicant for the Phase II Water Service Requirements.

kj. The Applicant agrees that the County shall not be required to approve or issue any building permits or water meters for dwelling units or other improvements in the Residential Project which require water service until Applicant fulfills the requirements of this Paragraph 3.3.

lk. The provisions of this Agreement shall not apply to any unbuilt dwelling units in the Residential Project unless building permit and zoning permit approvals for such dwelling units have been issued by the County within twenty (20) years of the date of this Agreement.

4. WELL CONTINGENCYSYSTEM CONTINGENCIES

4.1 Well Capacity. This Agreement is contingent on the proposed Well being capable of producing a minimum of five hundred (500) gallons per minute ("Well Capacity"). The Applicant shall have the duty of providing the Department with test results and technical data necessary to satisfy the Department that the Well will meet the Well Capacity. If the Department has not waived this contingency by approving the Well Capacity within two (2) years of the date of this Agreement, then either party shall have the right to cancel this Agreement by providing written notice of such cancellation to the other party.

4.2 Well System Reservation.

a. The Applicant shall be entitled to receive the water from the Well System necessary to satisfy the Applicant's source requirements for Phase I (Lots 1-5), Phase II (Lots 6-12), and/or the Residential Project ("Source Reservation").

b. The Department shall have the absolute right to use any water from the Well System in excess of the Source Reservation. In addition, the Department shall have the right to use on a temporary basis any water from the Well System that is not currently being used by the Applicant to satisfy its then current needs for Phase I, Phase II, and/or the Residential Project.

c. The Source Reservation shall end twenty (20) years after the dedication of the Well System to the Department. Thereafter, the Department shall be entitled to

{W:\DOCS\26800\1\W0124809.DOC} -12- use all water from the Well System other than that already allocated to water meters that have been issued to Phase I (Lots 1-5), Phase II (Lots 6-12), and/or the Residential Project.

5. FRC OFFSET

The Applicant shall be eligible for an FRC Offset as allowed in the Department Rules, Part IV, Section VII, Paragraph 4, for the following:

1.a. The source component of FRCs for Phase I and Phase II to the extent that the Phase I and Phase II source needs are met by the Well System or by other source facilities constructed by the Applicant.

2.b. The storage component of FRCs for Phase I, Phase II and the Residential Project to the extent that Applicant has paid the Construction Costs of constructing the necessary storage facilities.

6. INDEMNIFICATION/RELEASE

6.1 Indemnification. The Applicant agrees to indemnify, defend, and hold the Department and the County harmless against all claims, suits and actions by whomsoever brought on account of injuries or damages to persons or property resulting from: the Department's and the County's approval of the Subdivision; or the terms of this Agreement (jointly referred to as the "Claim Events").

6.2 Release Of Claims. The Applicant hereby releases the Department and the County and the Department's and County's successors and assigns, from any and all liability, losses and damages arising out of or related to the Claim Events.

6.3 Claim Exceptions. The Applicant's indemnification under Paragraph 3 and release under Paragraph 4 (collectively, the "Claim Duties") shall be subject to the following restrictions and limitations:

a. The Applicant shall have no Claim Duties for any injuries or damages caused by the intentional acts of the Department and the County or any person acting on behalf of the Department and the County, including but not limited to, the Department's and the County's agents, employees, officers, contractors or elected officials (collectively, the "Department/County Agents").

b. In any case where the Claim Event arises out of the joint negligence of the Applicant or the Applicant's Agents ("Applicant Negligence") and the Department and the County or the Department/County Agents ("Department/County Negligence"), then, the Applicant shall only be responsible for its share of damages based on the relative degree of the Applicant's Negligence as compared to the Department/County Negligence.

{W:\DOCS\26800\1\W0124809.DOC} -13-

7. MISCELLANEOUS

7.1 Consents and Approvals. No consent or approval required hereunder shall be unreasonably withheld, conditioned or delayed, and any consent or approval required hereunder shall be deemed to have been given if the party from whom such consent or approval has been requested in writing shall not have responded with a statement of specific objections to such request within fifteen (15) business days after receipt of such request.

7.2 Partial Invalidity. If any provision hereof or the application thereof to any person or circumstance shall to any extent be invalid or enforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby.

7.3 Governing Law. This Agreement shall be construed, interpreted and applied in accordance with the internal laws of the State of Hawaii without giving effect to doctrines relating to conflicts of laws.

7.4 Costs of Enforcement. In the event any party to this Agreement brings any suit or other proceeding with respect to the subject matter or enforcement of this Agreement, the prevailing party (as determined by the court, agency or other authority before which such suit or proceeding is commenced) shall, in addition to such other relief as may be awarded, be entitled to recover reasonable attorneys’ fees, expenses and costs of investigation as actually incurred.

7.5 Authority. Each person signing this Agreement warrants and represents that he or she has authority to sign on behalf of himself or herself or of the entity he or she represents and that this Agreement has been validly authorized and constitutes a legally binding and enforceable obligation.

7.6 No Third Party Beneficiaries. No term or provision of this Agreement is intended to be, or shall it be, for the benefit of any person, firm, organization or corporation not a party hereto, and no such other person, firm, organization or corporation shall have any right or cause of action hereunder.

7.7 Attachments/Schedules/Exhibits. All attachments, schedules, exhibits and riders attached hereto and referred to herein are by this reference incorporated into this Agreement. If the provisions of any attachment, schedule, exhibit or rider to this Agreement are inconsistent with the provisions of this Agreement, the provisions of such attachment, schedule, exhibit or rider shall prevail.

7.8 Interpretation of Terms. As used in this Agreement, the masculine shall include the feminine and neuter, the singular shall include the plural and the plural shall include the singular, as the context may require. In any case where this Agreement is executed by more than one person as a party, the obligations hereunder shall be joint and several.

{W:\DOCS\26800\1\W0124809.DOC} -14-

7.9 Titles, Captions and Headings. The titles, captions and headings of the articles, sections or subsections of this Agreement are for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.

7.10 Modifications. This Agreement may not be modified except by a written agreement signed by all parties.

7.11 Binding on and Inuring to Benefit of Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of the parties, and their respective successors and assigns.

7.12 Notices. All notices and other communications in connection with this Agreement shall be in writing and shall be deemed to have been received by a party (a) when actually received in the case of hand delivery or delivery by internationally recognized courier service, or (b) three (3) business days after being sent by United States mail, and shall be delivered or sent to the address of the Applicant or the Department as set forth below (or to such other address as may be specified by the Applicant or the Department by notice to the other parties) as the case may be. Any refusal to accept delivery of a written notice delivered or mailed to the addresses set forth below shall be deemed to be receipt of such notice for the purposes of this Agreement.

Applicant: Allen Family, LLC Moloa'a Bay Ventures, LLC The Three Stooges LLC c/o Mr. Greg Allen, Jr. 161 Wailua Road Kapaa, Kauai, Hawaii 96746

with a copy to: Max W. J. Graham, Jr., Esq. Belles Graham Proudfoot Wilson & Chun, LLP 4334 Rice Street, Suite 202 Lihue, Kauai, Hawaii 96766

Department: Department of Water P. O. Box 1706 Lihue, Kauai, Hawaii 96766 Attention: Mr. David Craddick, P.E. Manager & Chief Engineer

with a copy to: County of Kauai Office of the County Attorney Mo'ikeha Building 4444 Rice Street, Suite 220

{W:\DOCS\26800\1\W0124809.DOC} -15-

Lihue, Kauai, Hawaii 96766 Attention: Alfred Castillo, Esq. County Attorney

7.13 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signature pages from separate signed copies may be attached to a single copy for purposes of recording.

7.14 Terms. All defined terms (such as "Applicant", "Water Board", "Department", "party", etc.), as and when used herein, or any pronouns used in place thereof, shall mean and include the masculine or feminine, the singular or plural number, individuals or corporation and their and each of their respective successors, heirs, personal representatives and assigns, according to the context thereof.

7.15 Rule Against Perpetuities. If any of the covenants, conditions, agreements, restrictions, limitations or other provisions of this Agreement shall at any time be interpreted or construed as unlawful, void or unenforceable for violation of the rule against perpetuities, then and in such case such covenant, condition, agreement, restriction, limitation or provision shall be construed and interpreted to continue only until the ninetieth (90th) anniversary of the effective date of this Agreement.

IN WITNESS WHEREOF, the Applicant and the Department have entered into this Kapaa Highlands Water Agreement this ______day of ______, 20____.

APPLICANT:

ALLEN FAMILY, LLC, an Arizona limited liability company

Its

{W:\DOCS\26800\1\W0124809.DOC} -16-

STATE OF HAWAII ) ) SS: COUNTY OF KAUAI )

On this ______day of ______, 20______, before me appeared ______, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing KAPAA HIGHLANDS WATER AGREEMENT dated ______, 20____, which document consists of ______page(s), as the free act and deed of such person, and if applicable, in the capacity shown, having been duly authorized to execute such instrument in such capacity.

Name of Notary: Notary Public, Fifth Judicial Circuit, State of Hawaii.

My commission expires:

{W:\DOCS\26800\1\W0124809.DOC} -17-

APPLICANT:

MOLOA'A BAY VENTURES, LLC, a Hawaii limited liability company

Its

STATE OF HAWAII ) ) SS: COUNTY OF KAUAI )

On this ______day of ______, 20____, before me appeared ______, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing KAPAA HIGHLANDS WATER AGREEMENT dated ______, 20____, which document consists of ______page(s), as the free act and deed of such person, and if applicable, in the capacity shown, having been duly authorized to execute such instrument in such capacity.

Name of Notary: Notary Public, Fifth Judicial Circuit, State of Hawaii.

My commission expires:

{W:\DOCS\26800\1\W0124809.DOC} -18-

APPLICANT:

THE THREE STOOGES LLC, a Hawaii limited liability company

Its

STATE OF HAWAII ) ) SS: COUNTY OF KAUAI )

Name of Notary: Notary Public, Fifth Judicial Circuit, State of Hawaii.

My commission expires:

{W:\DOCS\26800\1\W0124809.DOC} -19-

DEPARTMENT:

DEPARTMENTOF WATER, COUNTY OF KAUAI

Its Manager and Chief Engineer

APPROVED AS TO FORM AND LEGALITY:

County Attorney, County of Kauai

{W:\DOCS\26800\1\W0124809.DOC} -20-

STATE OF HAWAII ) ) SS. COUNTY OF KAUAI )

On this ______day of ______, 20___, before me appeared ______, to me personally known, who, being by me duly sworn, did say that he is the Manager and Chief Engineer of the DEPARTMENTOF WATER, COUNTY OF KAUAI, and that he executed the foregoing KAPAA HIGHLANDS WATER AGREEMENT dated ______, 20____, which document consists of ______page(s), on behalf of said Department of authority of said Department, and said officer acknowledged said instrument to be the free act and deed of said Department, and that said Department has no corporate seal.

Name of Notary: Notary Public, Fifth Judicial Circuit, State of Hawaii.

My commission expires:

{W:\DOCS\26800\1\W0124809.DOC} -21- EXHIBIT "A"

REVISED SUBDIVISION REPORT

TO: PLANNING DEPARTMENT FROM: DEPARTMENT OF WATER

REVISED TMK: 4-3-03:001 NAME: SILAGI FAMILY TRUST SURVEYOR: R. Wagner REPORT NO. S-99-45

1. Domestic water is adequate. Tentative approval is recommended. T

2. All requirements have been fully met and, therefore, Final Approval is recommended. £

3. Before final approval can be recommended, the subdivider must:

A. Pay the Department of Water (DOW) the following charges in effect at the time of T receipt. At the present time, these charges include:

1) Five (5) units on Lots 1-5 will be served by 5 existing meters = $ 0.00

2) Eleven (11) units on Lots 1-5 will pay Facility Reserve Charges (FRCs) for Transmission only = $ the applicable Facility Reserve Charges ("FRC") for 12 meters (for Lots 1-12).

Total FRC required: = $

B. Prepare and receive Department of Water's approval of construction drawings for the T necessary water system facilities and either construct said facilities or post a performance bond for construction. These facilities shall also include:

1) Main extensions along Olohena Road, west of Kaapuni/Olohena Road intersection shall be a minimum of 8-inches in diameter. Main extensions shall be connected to appropriate connection points.

2) The fire service connections.

3) The Well System as described in the Kapaa Highlands Water Agreement.

C. Prepare and convey to the Department of Water a right-of-entry and temporary grant of T easement for the purpose of construction, repair, maintenance, and operation of the subdivision water system improvements installed in other than County-owned property, if applicable.

D. If a bond is filed, to secure final subdivision approval, the subdivider shall clearly letter T the following on the approved construction plans, final subdivision map, and deeds:

"Domestic water service will not be available until the required construction improvements for this subdivision are completed and accepted by the Department of Water, County of Kauai."

{W:\DOCS\26800\1\W0124809.DOC}

REVISED TMK: 4-3-03:001 NAME: SILAGI FAMILY TRUST SURVEYOR: R. Wagner REPORT NO. S-99-45

This deed restriction shall be recorded with the Bureau of Conveyances within ninety (90) days of final subdivision approval by the Planning Department.

4. Other (or remarks): T

A. For lots with service connections below 40 psi (minimum of 35 psi), lot owners shall complete an "Elevation Agreement" with the Department of Water, County of Kauai. This shall be done prior to any building permit or water meter approvals. This deed restriction shall be recorded with the Bureau of Conveyances within ninety (90) days of final subdivision approval by the Planning Department. The affected lots shall be clearly identified on the approved construction drawings and final subdivision map.

B. Lots 13, 16, 17, and Lot 18 are for roadway purposes and will not require water service from the Department of Water, County of Kauai (DOW).

C. Lot 14 is for AC Walk purposes for the Kapaa Middle School and will not require water service from the DOW.

D. The Subdivider shall execute that certain Kapaa Highlands Water Agreement ("Water Agreement") between the Subdivider and the Department of Water, County of Kauai, and submit an executed original to the Department of Water prior to final subdivision approval by the Planning Commission. The Water Agreement shall be recorded in the Bureau of Conveyances, State of Hawaii, within forty-five (45) days of final subdivision approval.

E. Prior to installation of the eleven (11) additional water meters on Lots 1-5, the Applicant shall:

1) Dedicate the Well System to the Department.

2) Prepare and receive Department of Water's approval of construction drawings for the necessary source facilities (if additional source is required) and either construct said facilities or post a performance bond for construction.

3) Pay or bond its pro-rata share of the Construction Costs of existingthe Department Tanks's Stable Tank to meet the Phase I (Lots 1-5) Water Storage Requirements, as determined by the Department

F. Prior to installation of the thirty-four (34) water meters on Lots 6-12, the Applicant shall:

1) Dedicate the Well System to the Department.

3) Pay or bond its pro-rata share of the Construction Costs for existing or new Department Tanks (including the Ornellas Tank) which may be necessary to meet the Phase II (Lots 6-12) Water Storage Requirements, as determined by the Department. The Applicant shall not be entitled to Phase II Water Service until

{W:\DOCS\26800\1\W0124809.DOC} -2-

REVISED TMK: 4-3-03:001 NAME: SILAGI FAMILY TRUST SURVEYOR: R. Wagner REPORT NO. S-99-45

such storage facilities have been constructed and are in operation. Although the Applicant shall have the right to participate in the development of new Department Tanks as provided herein, the Department shall have the absolute discretion to determine when (if ever) and where to construct such new Department Tanks.

4) As an alternative to Paragraph F.2), the Applicant shall prepare and receive Department of Water's approval of construction drawings for the necessary water storage facilities and either construct said facilities or post a performance bond for construction.

G. The Department will allow the Applicant to provide for the agricultural needs of the Subdivision from the Department's water system based on the Applicant's Goat Project (which shall be limited to 3,560 gpd).

REVISED SUBDIVISION REPORT NO. 99-45 Gregg Fujikawa Date Chief of Water Resources and Planning

{W:\DOCS\26800\1\W0124809.DOC} -3-

Document comparison done by DeltaView on Friday, August 17, 2012 3:06:02 PM Input: Document 1 WORLDOX://W:\DOCS\26800\1\W0124632.DOC Document 2 WORLDOX://W:\DOCS\26800\1\W0124790.DOC Rendering set Standard

Legend: Insertion Deletion Moved from Moved to Style change Format change Moved deletion Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell

Statistics: Count Insertions 89 Deletions 65 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 154

{W:\DOCS\26800\1\W0124809.DOC}

NeW Business DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute- Conserve It!"

MANAGER'S REPORT NO. 13-2

August 21, 2012

Re: Resolution No. 13-1 (12/13), Budget for Fiscal Year 2012-13

RECOMMENDATION: It is recommended that the Board approve Resolution No. 13-1 (12/13), and FY 2012-2013 Budget Summary as attached.

BACKGROUND: The board approved the 2013 final budget during the regular board meeting on June 28, 2012. The Budget Summary as attached is updated with the actual Fund Balances and Encumbrances as ofJune 30, 2012 including 3 revisions;

1. Reduction of Estimated Revenues by $700,000. The FY 2013 water consumption report showed a decline in billed consumption. This decline started in FY 2009 and still continued till fiscal year ending 20 12. It is in this regard that budgeted revenue were re evaluated and estimated to a more achievable result.

2. Additions of $40,000 in Contracted Capital Expenditures & Other Encumbrances to hire a Consultant to re-establish FRC open accounts.

3. Decrease in Normal Operating Expenditure by $782,614 due to reduction ofOPEB Cost.

Respectfully submitted, sbz~,J W~terworks Controller

CONCURRED: /) J!t.l , C,),... D. (jc.J!f [0\ (C ~J'-~ L;

David R. Craddick, P.E., C.E.M. Manager and Chief Engineer

Attached: Budget Resolution 13-1 Budget Summary Fiscal Year 2012-13

Mgrrp/August 201VI3-2 Res. No. 13-1, Budget,2012-13 (08-2l-12):mjg

---4398 Pua Lake Street, Llhu'e, Kaua'i, Hawai'i or P. 0. Box 1706, Uhu'e, HI 96766-5706--- Phone No. {808) 245-5400- Administration FAX No. {808) 246-8628- Engineering/Fiscal/Shop FAX No. (808) 245-5813 i I I I I I I I I I I I I 1 1 ! 1 1 1

County of l

BUDGET SUM RESOLUTION N0.13-1 --

BE IT RESOLVED by the Board of Water Supply ofthe Department of Water, County ofKauai, State of Hawaii, that the following sums or so much thereof as may be necessary respectively are hereby appropriated for the objects and purposes hereinafter specified for the period beginning July 1, 2012 and ending June 30, 2013, out of moneys available and received by the Treasury of the County ofKauai for the several funds hereinafter mentioned.

INTRODUCEDBY: ~~~~~~~~~~------ Daryl Kaneshiro, Chairperson

DATE: --~A~1~Ig~u~st~2~1~·~2~0~12~------

- _... _---·----·----·----·----·----·----·--- _....__-- -·----·----·-- CERTIFICATION

I hereby certifY that the foregoing Resolution No. 13-1 was adopted by the Board of Water Supply, County ofKauai at the Regular Meeting held on June 28 2012

For Adoption: 6 (Dmyl Kaneshiro, Chair; Randall Nishimura, Raymond McCormick, Larry Dill, Michael Dahilig, Roy Oyama)

Against Adoption: 0

Absent: 1 (Clyde Nakaya)

Total: 7

Randall Nishimura Secretary Board of Water Supply DEPARTMENT OF WATER BUDGET 2012-2013 RESOLUTION NO. 13-1

I. WATER UTILITY FUND

Beginning Balance $ 19,170,870

CASH RECEIPTS

Water Sales & Service Charge $ 23,437,595 Other $ 10,676,015 TOTAL RESOURCES: $ 53,284,480

EXPENDITURES

Salaries, Depatiment of Water $ 5,542,045 Normal Expenditures $ 12,580,054 Debt Service " $ 6,546,192 Equipment $ 803,900 Miscellaneous Capital Expenditures, Others $ 3,163,714 Emergency Reserve $ 2,400,000 CIP- Replacement $ 21,314,673 CIP - Rehabilitation $ 933,902 TOTAL EXPENDITURES: $ 53,284,480

FY 2013 RESOLUTIONS-WU FRC BOND SUMM

_.. ,_ .__. __ c__ I

II. FACILITIES i

Beginning Balance $ 3,224,354 Facilities Reserve Charge $ 1,000,000 Interest Earned $ 43,750 BABSubsidy $ 306,692 TOTAL RESOURCES: $ 4,574,796

EXPENDITURES

Capital Improvement Projects $ 2,606,523 Debt Service $ 1,968,273 TOTAL EXPENDITURES: $ 4,574,796

III. W ATERWORK BUILD AMERICA PROJECT FUND

Beginning Balance $ 32,677,749 Bond Proceeds $ Interest Income <' $ 210,000

TOTAL RESOURCES: $ 32,887,749

EXPENDITURES

Capital Improvement Projects $ 21,970,679 Contracted CIP Projects $ 10,917,069

TOTAL EXPENDITURES: $ 32,887,749

FY 2013 RESOLUTIONS-WU FRC BOND SUMM Water Sales (BILLION GALLONS)

5,000

4,500 4,000

~ 0 0 3,500 0 ~ fll 3,000 s:: .2 (ij 2,500 (!) 2,000 1,500

1,000

4,131,411

01 Pro Bud Summary2004-2005 Operating Fund Expenditures

I I

2012- 2013 BUDGET REVISIONS TO PROPOSED BUDGET

- . . --

WATER UTILITY FUND

2012-13 REVISED ACCOUNT TITLE INCREASE DECREASE BUDGET AMOUNT DETAIL Water Utility Fund $ 16,823,329.00 $ 2,347,541.00 $ 19,170,870.00 INCREASE: Net Increase from Operations. Water Sales and DECREASE estimated revenues due to declining water 1. $ 24,137,595.00 $ 700,000.00 $ 23,437,595.00 Service Charge consumption. See attached chart for the past 5 years. Helath & Dental - DECREASE. Adjust Annual OPEB Cost per AON 67 $ 1,632,614.00 $ 782,614.00 $ 850,000.00 Retirees & OPEB Valuation summary. DECREASE (Net) Added $40,000 as approved on June 28,2012 board meeting to hire Consultant to re-establish open FRC accounts. Contracted Capital Encumbered AP Accruals: $200,626 for: ( 61) - Worker's Tab Expenditures: $ 2,272,935.00 $ 240,626.00 $ 453,847.00 $ 2,059,714.00 Comp Insurance,$ 2,988.64, (62)- Retirement System, 11 Various $ 79655.83, (63) -FICA Taxes -Employer's, Encumbrances $39,207.38, (64)- Health Life & Dental,$ 44,520.88, (67)- $20,114.50 •' DECREASE. FY 2012 Actual Payments posted increased by $453,847. CIP Replacement ~ DECREASE. Encumbrance of Actual balances as of 101 Projects: Contracted $ 3,153,962.00 $ 208,862.00 $ 2,945,100.00 June 30, 2012. CIP Projects Capital INCREASE: Job 11-07 WP 2020 HE-03 Hanapepe & I 0 I b Rehabilitation $ 270,939.00 $ 199,592.00 $ 470,531.00 Koloa Well -add back $199,592listed as contracted in Projects FY 2012. I 06b CIP Reserve $ 788,900.00 $ 2,652,916.00 $ 3,441,816.00 Actual CIP Reserve balance.

Budget Revisions 2012~ 2013 WU Revisions 1 2012- 2013 BUDGET REVISIONS TO PROPOSED BUDGET

FRCFUND 2012-13 REVISED ACCOUNT TITLE INCREASE DECREASE BUDGET AMOUNT DETAIL Actual FRC CIP balance. FY 2012 Ending Balance increased by the same 301b. FRC CIP Reserve $ 1,793,558 $137,998 $1,931,556.00 amount due to increase in Estimated FRC Collections.

BABFUND 2012-13 REVISED ACCOUNT TITLE INCREASE DECREASE BUDGET AMOUNT DETAIL 201b. BAB- CIP Reserve $ 21,682,418 $288,261 $21,970,679 Actual FRC CIP balance Encumbrance of actual contract ,, ' balances as of June 30, 2012. Contracted CIP Projects $11,349,072.00 $432,003.00 $10,917,069.00 Decrease due to additional Contract Payments.

Budget Revisions 2012-2013 FRC & Bond Revisions 1 DEPARTMENT OF WATER BUDGET 2012 - 2013 RESOLUTION NO. 13-1

I. WATER UTILITY FUND

Beginning Balance $ 19,170,870

CASH RECEIPTS

Water Sales & Setvice Charge $ 23,437,595 Other $ 10,676,015 TOTAL RESOURCES: $ 53,284,480

EXPENDITURES

' Salaries, Department of Water $ 5,542,045 Normal Expenditures $ 12,580,054 Debt Service $ 6,546,192 Equipment $ 803,900 Miscellaneous Capital Expenditures, Others $ 3,163,714 Emergency Reserve $ 2,400,000 CIP- Replacement $ 21,314,673 CIP - Rehabilitation $ 933,902 TOTAL EXPENDITURES: $ 53,284,480

FY 2013 RESOLUTJONS-WU FRC BOND Page 1 DEPARTMENTOFWATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 RESOURCES AND EXPENDITURES ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

FUND BALANCES $14,362,450 $16,914,046 $16,914,046 General Fund Balance $15,623,329 $17,970,870 Emergency Reserve Fund $1,200,000 $1,200,000 SUB-TOTAL $14,362,450 $16,914,046 $16,914,046 $16,823,329 $19,170,870

RESOURCES

Water Sales and Service Charge (p.2) $18,515,648 $20,714,175 $20,000,000 $24,137,595 $23,437,595 Others (p. 2) $5,945,145 $5,654,926 $5,306,426 $10,676,015 $10,676,015 SUB-TOTAL $24,460,793 $26,369,101 $25,306,426 $34,813,610 $34,113,610

TOTAL RESOURCES: $38,823,243 $43,283,147 $42,220,472 $51,636,939 $53,284,480

EXPENDITURES/RESERVE Salaries (pJ n Tab 4 pl) $4,182,835 $5,426,518 $5,116,629 $5,542,045 $5,542,045 Normal Expenditures (plO n tab 4 p4) $9,368,119 $13,667,344 $11,397,212 $13,362,668 $12,580,054 Debt Service (p17 n tab 4 pl9) $5,739,944 $6,649,861 $6,280,942 $6,546,192 $6,546,192 Equipment (p. 18, tab 4 pS) $151,771 $949,701 $383,613 $803,900 $803,900 Miscellaneous, Capital Expenditures, Others (piS n t~b 4 pS) $845,322 $1,522,246 $578,742 $3,376,935 $3,163,714 Emergency Reserve (p. 18) $1,200,000 $2,400,000 $2,400,000 TOTAL OPERATING EXPENDITURES & RESERVE: $20,287,990 $29,415,670 $23,757,138 $32,031,740 $31,035,905

Capital Replacement Program (p. 19) $1,377,162 $9,978,463 $1,061,703 $18,870,619 $21,314,673 Capital Rehabilitation Program (p. 19) $244,044 $3,889,014 $578,302 $734,580 $933,902 TOTAL CAPITAL PROJECTS: $1,621,206 $13,867,477 $1,640,005 $19,605,199 $22,248,575

TOTAL EXPENDITURES & RESERVE: $21,909,196 $43,283,147 $25,397,143 $51,636,939 $53,284,480

FUND BALANCE, $16,914,046 $0 $16,823,329 $0 $0

2012-2013 02Budget Summary FYE 2013 budget resolution Page 1 I DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 WATER UTILITY FUND 2010-2011 2011- 2012 2012- 2013 2012-2013 RESOURCES AND EXPENDITURES ACTUAL BUDGETED ESTIMATED PROPOSED Al'PROVED FUND BALANCES $14,362,450 $16,914,046 $16,914,046 General Fund Balance $7,145,333 Emergency Reserve Fund $1,200,000 Prior Year Encumbrances (PO's, contracted cap& otherexpd) $8,477,996 SUB-TOTAL~~$~14~,3~6~2~,4~5~0~--~$1~6~,9~1~4~,0~4~6~~$~16~,9~1~4~,0~4~6~~$~16~,=82~3~,3~2~9~------~ RESOURCES Water Sales and Service Charge $18,515,648 $20,714,175 $20,000,000 $24,137,595 Others $5,945,145 $5,654,926 $5,306,426 $10,676,015 SUB-TOTAL $24,460,793 $26,369,101 $25,306,426 $34,813,610 $0 TOTAL RESOURCES: l=~$~38~,8~2~3=,2~4~3t==~$4~3=,2~8~3=,1=4~71=~$4~2=,2~2~0=,4~7~21=~$~51:,~63~6=,9~3~9t=====$d0 EXPENDITURES/RESERVE Salaries (p3 n Tab4 pi) $4,182,835 $5,426,518 $5,116,629 $5,542,045 Normal Expenditmes (p!O. 132) $9,368,119 $13,667,345 $11,397,212 $13,362,668 Debt Service (p.l7) $5,739,944 $6,649,861 $6,280,942 $6,546,192 Equipment(p.l8,!ab4p5) $151,771 $949,701 $383,613 $803,900 Miscellaneous, Capital Expenditures, Others (p.18) $845,322 $1,522,246 $578,742 $1,677,220 Contracted Cap. E,p., Others- 20/2 Encumbrance (tab// p2-f64) $1,699, 715 Emergency Reserve $0 $1,200,000 $0 $2,400,000 TOTAL OPERATING EXPENDITURES & RESERVE: $20,287,990 $29,415,671 $23,757,138 $32,031,740 $0 F=~~~~==~~~~~~~9F~~~~======~9 Capital Replacement Program (p.19) $1,377,162 $9,978,463 $1,061,703 $12,562,869 CRPL, 2012 Encumbrance (Tab/2p4) $6,307,750 Capital Rehabilitation Program (p.19) $244,044 $3,889,014 $578,302 $264,049 CRP, 2012 Encumbrance (tab 13 p3) $470,531 TOTAL CAPITAL PROJECTS: l==,;;$;;1~,6;;2,;,11;;,2;;;0;;,61===;;,$1;;3;f,8;;,6;,;7.;,,4;;7;,;7f==.;$;,;1,;;,6;,;4;;;0o;,0;;;0;;5j=.,;$;,;1,;,9~,6;;;0;;5,o;;1,;,9;,91======;;,$09 TOTAL EXPENDITURES & RESERVE: $21,909,196 $43,283,147 $25,397,143 $51,636,939 $0

FUND BALANCE, $16,914,046 $0 $16,823,329 $0 $0

$16,914,046 $43,283,147

02Budgel Summary FYE 2013 budget resolution Page1.1 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 REVENUES ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

I. WATER SALES AND SERVICE CHARGE $18,515,648 $20,714,175 $20,000,000 $24,137,595 $23,437,595

2. MISCELLANEOUS RECEIPTS $12,672 $112,000 $60,000 $60,000 $60,000

3. INTEREST INCOME $80,668 $355,000 $60,000 $235,000 $235,000

4. COUNTY SERVICE CHARGE $943,901 $925,133 $925,133 $1,467,126 $1,467,126

5. OTHER- SRF I State Allotment $3,934,704 $1,431,562 $1,431,562 $5,000,000 $5,000,000

Sa. OTHER RECEIPTS $101,216 $1,000,000 $1,000,000

5b. OTHER- BAB SUBSIDY $871,984 $715,616 $715,616 $715,616 $715,616

5c. FRC DEBT SERVICE PAYBACK $1,989,115 $1,989,115 $1,968,273 $1,968,273

5d. GRANT, DROUGHT MITIGATION $126,500 $125,000 $230,000 $230,000

TOTAL REVENUES: $24,460,793 $26,369,101 $25,306,426 $34,813,610 $34,113,610

$34,343,610

2012- 2013 02Budget Summary FYE 2013 budget resolullon Page2 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 XPENDITURE CLASSIFICATI ACTUAL BUDGET ESTIMATED PROPOSED API'ROVED

15. Salaries-Dept. of Water (No. of Positions):..,_ (81) (103) (91) (105) ~ t Administration (16) (12) $:75,889 (15) .. $859,534 (12) $716,144 (t6) $833,839 $833,839 Engineering Division (15) (14) $758,478 (15) $933,048 (15) $882,000 (15) $892,551 $892,551 Water Resource & Planning Division (6) (5) $347,417 (6) $425,252 (5) $400,000 (6) $410,996 $410,996 Fiscal Division (19) (17) $733,098 (19) $865,876 (17) $815,000 (19) $905,578 $905,578 Operations Division (49) (33) $1,667,952 (48) $2,242,808 (42) $2,203,485 (49) $2,399,081 $2,399,081

TOTAL SALARIES: $4,182,835 $5,326,518 $5,016,629 $5,442,045 $5,442,045

16. Provision for Accrued Vacation

Salaries $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000

TOTAL SALARIES AND PROVISION FOR ACCRUED $4,182,835 $5,426,518 $5,116,629 $5,542,045 $5,542,045

2012- 2013 02Budget Summary FYE 2013 budget resolution Page3 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGET ESTIMATED PROPOSED APPROVED

19. COUNTY SERVICE CHARGE

Departmental Fixed Charges $ 943,901 $925,133 $925,133 $1,467,126 1,467,126 (Miscellaneous)

2012- 2013 02Budget Summary FYE 2013 budget resolution Page4

I __ DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGET ESTIMATED PROPOSED APPROVED

MATERIALS, SUPPLIES & SERVICE

21. UTILITIES

Departmental Fixed Charges $184,592 $210,228 $210,228 $247,380 $247,380 22. POSTAGE AND PRINTING . Departmental Fixed Charges $47,942 $40,000 $40,000 $16,000 $16,000 Fiscal Division $59,081 $152,000 $75,000 $125,000 $125,000 TOTAL POSTAGE AND PRINTING: $107,023 $192,000 $115,000 $141,000 $141,000

24. OFFICE EQUIPMENT MAINTENANCE Encumbrance: Contract# 461, Four Winds Group (moved to C $47,000 $77,710 Departmental Fixed Charges $42,283 $147,300 $147,300 $161,100 $161,100 TOTAL OFFICE EQUIPMENT MAINT. $89,283 $225,010 $147,300 $161,100 $161,100 27. CONTRACTUAL SERVICES Departmental Fixed Charges $48,428 $72,000 $72,000 $69,200 $69,200 Administration $12,457 $110,000 $20,000 $120,000 $120,000 Engineering Division Water Resources & Planning Division $390,000 $325,000 $325,000 Fiscal Division $73,276 $327,100 $85,000 $163,000 $163,000 Encumbrance: Con 535, Fukunaga & Assoc., (moved) $514,000 Contract# 521, R.W. Beck (moved) $77,992 $2,008 Contract # , R. W. Beck (moved) $16,540 $23,570

TOTAL CONTRACTUAL SERVICES: $228,693 $1,438,678 $177,000 $677,200 $677,200

2012-2013 02Budget Summary FYE 2013 budget resolution Page5 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGET ESTIMATED PROPOSED APPROVED

28. TRAVEL & INCIDENTALS- BOARD

Administra !ion $13,694 $19,768 $19,768 $19,798 $19,798

29. TRAVEL & INCIDENTALS- STAFF ' Administration $39,036 $37,780 $37,780 $42,050 $42,050

30. COLLECTOR'S COMMISSIONS

Fiscal Division

31. MISCELLANEOUS

Administration $9,289 $16,000 $16,000 $18,500 $18,500

32. AUDITING FEES '

Fiscal Division $66,000 $76,000 $66,000 $76,000 $76,000

33. IN-SERVICE TRAINING

Administra !ion $47,561 $59,600 $59,600 $90,600 $90,600

2012- 2013 02Budget Summary FYE 2013 budget resolullon Page6 DEPARTMENT OF WATER ANNUAL OI'ERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGET ESTIMATED PROPOSED APPROVED

34. SUPPLIES -OFFICE & ENGINEERING

Departmental Fixed Charges $31,913 $32,000 $32,000 $35,000 $35,000 Fiscal Division $7,643 $6,000 $6,000 $10,000 $10,000 TOTAL SUPPLIES-OFFICE & ENGINEERING: $ 39,555 $38,000 $38,000 $45,000 $45,000

35 OPERATING RESERVE FUND

Administration $20,000 $20,000 $20,000 $20,000

36. PUBLIC RELATIONS Encumbrance: The Nature Company (moved to Tab II) $75,000 $75,000 Limtiaco Co., Con 531 (moved to Tab II) $49,733 $59,586 Administration $48,402 $86,773 $187,092 $86,500 $86,500 $173,136 $221,359 $187,092 $86,500 $86,500

37. COMPUTER SUPPORT & SUPPLIES

Administration $29,864 $84,500 $70,000 $97,000 $97,000

2012- 2013 02Budget Summary FYE 2013 budget resolution Page 7 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGET ESTIMATED PROPOSED APPROVED

38. MICROLAB MATERIALS AND SUPPLIES

Engineering Division $12,619 $20,000 $20,000 $20,000 $20,000

59 SAFE DRINKING WATER ACT PROGRAM

Engineering Division $47,599 $50,000 ' $10,000 $50,000 $50,000.00

TOTAL ADMINISTRATIVE, OFFICE AND ENGINEERING EXPENDITURES: $1,087,944 $2,708,923 $1,193,768' $1,792,128 $1,792,128

2012-2013 02Budget Summary FYE 2013 budget resolullon PageS DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010- 2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

OPERATIONS AND MAINTENANCE

40. Vehicle-Material & Service $125,158 $107,600 $107,600 $145,000 $145,000 41. Vehicle- fuel $106,666 $168,000 $168,000 $189,000 $189,000 42. Utilities $69,336 $86,400 $86,400 $91,700 $91,700 43. Meter Parts $9,877 $8,300 $8,300 $8,300 $8,300 43a. Electrical parts $13,229 $20,000 ' $20,000 $34,000 $34,000 44. Miscellaneous $4,295 $5,000 $5,000 $5,000 $5,000 44a. Miscellaneous - Tapping Team $8,000 $8,000 $8,000 44b. Miscellaneous -Drought Mitigation (moved to Tab II) $126,500 45. Contractual Services $23,790 $200,000 $50,000 $200,000 $200,000 47. Materials & Supplies $191,305 $227,000 $227,000 $404,000 $404,000 48. Collective Bargaining Items $17,749 $24,000 $24,000 $30,000 $30,000 51. Pump - Electrical $2,738,567 $3,000,000 $3,000,000 $3,250,000 $3,250,000 55 Purchase of Water $1,513,046 $2,248,700 $2,248,700 $1,891,826 $1,891,826 58. Chemicals $41,192 $60,000 $60,000 $65,000 $65,000 58.1 Chemicals- SWTP

TOTAL OPERATIONS & MAINTENANCE: $4,854,209 $6,289,500 $6,005,000 $6,321,826 $6,321,826

$6,321,826

2012- 2013 02Budget Summary FYE 2013 budget resolution Page9 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED INSURANCE Departmental Fixed Charges 60. Insurance & Bonds $36,080 $200,000 $20,000 $200,000 $200,000 60.1 Small Claims $7,814 $10,000 $3,676 $10,000 $10,000 61. Worker's Compensation Provision $150,000 $50,000 $150,000 $150,000

TOTAL INSURANCE: $43,894 $360,000 $73,676 $360,000 $360,000

RETIREMENT SYSTEM CONTRIBUTIONS- Departmental Fixed Charges 62. Retirement System - Employers' Share $627,362 $826,676 $700,000 $844,605 $844,605 63. FICA Taxes- Employers' Share $311,495 $407,479 $350,000 $416,316 $416,316 TOTAL RETIREMENT SYSTEM CONTRIBUTIONS: $938,858 $1,234,155 $1,050,000 $1,260,922 $1,260,922

EMPLOYEES' HEALTH CONTRIBUTIONS- Departmental Fixed Charges 64. Health, Dental & Group Life $359,872 $493,780 $493,780 $528,052 $528,052

67. Health & Dental - Retirees and OPEB $1,139,442 $1,655,855 $1,655,855 $1,632,614 . ·- -- . $850,000

TOTAL EMPLOYEE'S HEALTH CONTRIBUTIONS: $1,499,314 $2,149,635 $2,149,635 $2,160,666 $1,378,052

TOTAL INSURANCE AND EMPLOYEE BENEFITS: $2,482,066 $3,743,790 $3,273,311 $3,781,588 $2,998,974

TOTAL NORMAL EXPENDITURES: $9,368,119 $13,667,346 $11,397,212 $13,362,668 $12,580,054

2012-2013 02Budget Summary FYE 2.013 budget resolution Page 10

L DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

DEBT SERVICE REQUIREMENTS

93. FmHA $300,000 BOND $ 18,550 $ 18,438 $ 18,825 $ 18,550 $ 18,550

FmHA Public Improvement Bond County Series 1980 Last installment due 2015. Date issued: March, 1980 Original Amount: $300,000.00 Balance at June 30, 2011: $66,500.00

97 DOW BOND, 2001 ISSUE $ 670,575 $ 231,989 $ - $ - $ - General Obligation Bonds, Series 200 lA Series 2005A Refunded a portion of Series 2001A, Orig. Amt: $11,725,000 DEFEASED 7/7/11

95. DOW BOND, 2011A $0 $440,830 $440,830 $440,550 $ 440,550

2011A Refunding Bonds- $5,125,000 ($5.24M Refunded 2001A) Balance at June 30, 2011:

2012- 2013 02Budget Summary FYE 2013 budget resolution Page 11 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

98. State Revolving Fund Loan $ 130,906 $ 128,169 $ 128,169 $ 125,395 $ 125,395

Job No. 97-1 Kokolau Tunnel Last installment due July 2021 Date issued: July 2002 Original Loan Amount: $1,663,201.00 ' Balance of Loan at June 30,2012: $868,942.00

99. State Revolving Fund Loan $ 70,641 $ 69,137 $ 69,137 $ 67,617 $67,617

Kapilimao Well Project Last installment due April 2022 Date issued: April2003 Original Loan Amount: $803,802.00 Balance of Loan atJune 30,2011: $493,169.00

2012- 2013 02Budget Summary FYE 2013 budget resolution Page 12 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED 80. State Revolving Fund Loan $ 98,564 $ 96,556 $ 96,555 $ 94,527 $ 94,527 Job No. 97-5 Hanapepe River Crossing Last Installment Due: July 2023 Date Issued: July 2004 Original Loan Amount: $1,243,977.00 Balance of Loan at 6/30/12: $762,027 ' 81. State Revolving Fund Loan $ 54,929 $ 53,810 $ 53,810 $ 52,680 $ 52,680 Job No. 97-6 Hanapepe 27 inch Steel Pipe Last Installment Due: July 2023 Date Issued: July 3004 Original Loan Amount: $69 I, 134.00 Balance of Loan at 6/30!12: $424,704 82. State Revolving Fund Loan $ 31,675 $ 31,006 $ 31,006 $ 30,334 $ 30,334 WK-21, Job No. 98-33, Wailua Homesteads Well No.3 Last Installment Due: March 2024 Date Issued: March 2005 Original Loan Amount: $397,736.00 Balance of Loan at 6/30112: $256,989 83. State Revolving Fund Loan $100,787 $98,693 $98,693 $96,588 $96,588 PLH-31, Job No. 97-2, Rehabilitate Lihue Steel Tanks I & 2 Last Installment Due: June 2025 Date Issued: January 2006 Original Loan Amount: $1,243,0 I 7.00 Balance of Loan at 6/30!12: $868,641

2012- 2013 02Budget Summary FYE 2013 budget resolution Page 13 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

84. State Revolving Fund Loan $65,138 $63,804 $63,804 $62,462 $62,462 WK-07, Job No. 98-6, Omellas 0.2 MG Tank Refurbish. Last Installment Due: March 2025 Date Issued: March 2006 Loan Amount: $809,398.00 Balance of Loan at 6/30/12: $558,285

85. State Revolving Fund Loan $185,578 $181,670 $181,669 $177,755 $177,755 WK-03, Job No. 97-11, 16-inch Waterline along KuhioHwy Last Installment Due: February 2026 Date Issued: February 2007 Loan Amount: $2,305,093.00 Balance of Loan at 6/30/12: $1,706,073

86 DOW BOND, 2005 Series $ 217,450 $ 214,950 $ 214,950 $ 212,309 $ 212,309 Last Installment Due August 2029 I Date Issued November 2005 Original Amount $3,320,000.00 Balance at 6/30/12: $3,140,000

2012- 2013 02Budget Summary FYE 2013 budget resolullon Page 14 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED API'ROVED

87. DOW BOND, 2005 Series, Partial Refund $ 149,988 $ 149,989 $ 149,989 $ 149,988 $ 149,988 of200l Series A Last Installment Due: August 2021 Date Issued: November 2005 Original Issue Amount: $3,165,000.00 Balance at 6/30/12: $3,165,000.00

88. State Revolving Loan $ 413,900 $ 405,376 $ 405,375 $ 396,838 $ 396,838 KP-07, KP-08, Job 98-2, 16 inch Waterline replacement, Poipu Road Last Installment Due: January 2027 Date Issued: January 2008 Loan Amount: $5,158,886.00 Balance at 6/30/12: $3,989,775

2012- 2013 02Budget Summary FYE 2013 budget resolution Page 15 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012- 2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

89. State Revolving Fund Loan $ 489,999.07 $611,331 $611,332 $599,177 $599,177 Stable Tank 1.0 MG Tank and Connecting Pipeline, WK-42, WK-32, WK-14 Date Issued: March 2009 Loan Amount: $8,082,619.00

90. State Revolving Fund Loan $ 319,592.81 $313,502 ' $333,773 $327,272 $327,272 Kaumuali'l Highway 12-inch Main Replace- ment, Elepaio Road to Hnakai Road, Job No. 05-04, KW-27 Date Issued: August 2009 LoanAmount: $4,933,117.00

91. State Revolving Loan $ 156,868.07 $153,883 $153,882 $150,887 $150,887 Waha, Wawae and Niho Roads Main Replacement, Job No. 05-07, K-7, L0-13. Date Issued: August 2009 Loan Amount: $2,118,618.00

2012-2013 02Budget Summary FYE 2013 budget reso!ul!on Page 16 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

92. DOW BOND, Series 2010A $2,490,862 $2,920,881 $2,920,881 $2,920,881 $2,920,881 Last Installment Due: August 2033 Date Issued: March, 20 I 0 Original Amount: $60,000,000.00 Balance at 6/30/2012: $60,000,000.00

94. State Revolving Fund Loan $ 73,940 $ 145,847 $ ' 308,263 $ 302,382 $ 302,382 Kapilimao 0.5MG Tank Last Installment Due: January, 2030 Date Issued: January, 2011 Original Amount: $1,n9,255, $3,588,912.56 Balance at 6/30/2012:

XX Provision for Additional Debt Service 0 $320,000 $0 $320,000 $320,000 Requirement for SRF Loan submitted for Reimbursement of$ 3,482,000 TOTAL DEBT SERVICE REQUIREMENTS: $5,739,944 $6,649,861 $6,280,942 $6,546,192 $6,546,192

TOTAL SALARIES, NORMAL EXPENDITURES AND DEBT SERVICE: $19,290,898 $25,743,725 $22,794,783 $25,450,905 $24,668,291

$31 ,214,483

2012- 2013 02Budget Summary FYE 2013 budget resolution Page 17 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012- 2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED EQUIPMENT 103. OFFICE & ENGINEERING EQUIPMENT Administration $99,361 $371,700 $200,000 $308,700 $308,700 Engineering Division $20,000 $15,200 $15,200 Water Resources and Planning $1 Fiscal Division $230,000 $268,000 $268,000 TOTAL OFFICE & ENGINEERING EQUIPMENT $99,361 $621,701 $200,000 $591,900 $591,900 106. VEHICLES AND EQUIPMENT Administration Engineering Division $40,004 $35,000 $35,000 Water Resources and Planning Division Fiscal Division $72,000 $35,986 Operation Division $12,405 $221,000 $112,627 $212,000 $212,000 TOTAL VEHICLES AND EQUIPMENT $52,410 $328,000 $183,613 $212,000 $212,000 TOTAL EQUIPMENT $151,771 $949,701 $383,613 $803,900 $803,900 MISCELLANEOUS CAPITAL EXPENDITURES, OTHERS 102. MISCELLANEOUS OTHER CAPITAL EXPENDITURES, OTHERS Operations Division $666,342 $550,000 $300,000 $975,000 $975,000 105. RECORDING METERS Operations Division 107. PURCHASE OF METER AND METER BOXES Operations Division $81,996 $160,000 $50,000 $129,000 $129,000 Contracted Capital Expenditures, Others $96,983 $812,246 $228,742 $2,272,935 . $2,059,715 TOTAL MISCELLANEOUS CAPITAL EXPENDITURES, OTHERS $845,322 $1,522,246 $578,742 $3,376,935 . $3,163,115

EMERGENCY RESERVE $1,200,000 $2,400,000 $2,400,000 TOTAL EXPENDITURES & RESERVE $20,287,990 $29,415,672 $23,757,138 $32,031,740 $31,035,905 2012- 2013 028udget Summary FYE 2013 budget resolutlon Page 18 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED l'ROPOSED APPROVED

CAPITAL PROJECTS

101. CIP REPLACEMENT PROJECTS (tabl2)

Capital Improvement Program (p1) $435,000 $96,077 $14,927,757 $14,927,757 Contracted CIP Projects (p1) $1,902,691 $1,605,035 $965,626 $3,153,962 $2,945,100

106b. CIP RESERVE

Capital Improvement Program (p1) ($525,529) $7,938,428 $788,900 $3,441,816

TOTAL CIP REPLACEMNT PROJECTS $1,377,162 $9,978,463 $1,061,703 $18,870,619 $21,314,673

!Olb. CAPITALREHABlLITATION(Tab 13)

Capital Rehabilitation Prog•·am (p1) ($630,082) $3,216,244 $404,063 $270,939 $470,531 Contracted CRP Projects (p1) $874,126 $672,770 $174,238 $463,641 $463,371 TOTAL CAPITAL REHABILITATION PROGRAM $244,044 $3,889,014 $578,302 $734,580 $933,902

TOTAL CAPITAL PROJECTS: $1,621,206 $13,867,477 $1,640,004 $19,605,199 $22,248,575

2012- 2013 02Budget Summary FYE 2013 budget resolu\!on Page 19 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 DEPARTMENT SUMMARY WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 2012-2013 EXPENDITURE CLASSIFICATION ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

TOTAL SALARIES, NORMAL EXPENDITURES, DEBT SERVICE REQUIREMENTS, AND CAPITAL EXPENDITURES: $21,909,196 $43,283,148 $25,397,143. $51,636,939

2012- 2013 02Budget Summary FYE 2013 budget resotutton Page20

I DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CONTRACTED CAPITAL EXPENDITURES, OTHERS WATER UTILITY FUND Proposed 2011-2012 ADDITIONS (ESTIMATED 2012-2013 CONTRACTS/ ENCUMBRANCES ENCUMBERED ADDITIONS BUDGET (DELETIONS) PAYMENTS) BUDGET (DELETIONS)

2000-2001 CONTRACTS 540. Job 98-I7, Con.# 368, Century Comp. Financial Acctg. Information System $I2,246 $0 $12,246 $12,246 TOTAL 2000-2001 CONTRACTS: $12,246 $0 $0 $12,246 $12,246 2DlD- 2011 CONTRACTS

XXX Install Electrical Savings Device $800,000 ($463,839) $336,161 $336,161 TOTAL 2010-2011 CAPITAL ENCUMBRANCES/CONTRACTS: $800,000 ($463,839) $0 $336,161 $0 $336,161

;Z!ll] - 2QJ ~ CQISIRACTS/ Encumbrances l 06-12 GS 2012-'1, Con 541 (2 Trucks) $55,908 ($55,908) $0 $0 106-12 GS-2012-2 (I Cargo Van) $52,804 $52,&04 $52,804 106-12 GS-2012-3 (2 SUV 4 or All Wheel DR $109,562 ($109,562) $0 $0 24b Four Winds Group $77,710 ($53,500) $24,210 $24,210 Con 521, SA!C, (lka R.W.Beck), Fin 27.1 Mgmt Planning & Rate Analysis $8,008 $8,008 $8,008 Con 506 SA!C, (lka R.W.Beck), FRC 27.2 Study $32,570 ($29,570) $3,000 $3,000 SUB-TOTAL 2011-2012 CAPITAL ENCUMBRANCES/CONTRACTS: $0 $336,562 ($248,540) $88,022 $0 $88,022

11Contract Capital Exp FYE 2013 budget resolution 2012-2013 Page 1 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CONTRACTED CAPITAL EXPENDITURES, OTHERS WATER UTILITY FUND Proposed 2011-2012 ADDITIONS (ESTIMATED 2012-2013 CONTRACTS/ ENCUMBRANCES ENCUMBERED ADDITIONS BUDGET (DELETIONS) PAYMENTS) BUDGET (DELETIONS)

2011 ~ 2012 COI:S:TRACTS/ En~;;utnbl'altces cont. Con 535, Fukunaga & Assoc., Kauai 27.4 Water Use & Devt. Plan update $614,000 ($98,540) $515,460 $515,460 USGS Joint Funding Agrmt. -Water 27.5 Monitoring Program $31,350 $31,350 $31,350 27.6 UH Rainfall Study (2 years 80K & 70K) $80,000 $80,000 $80,000 36.1 Kauai Water Shed Alliance $75,000 (.~75,000) $0 $75,000 $75,000 36.2 Con 531, Limtiaco Co. Inc., PR Srvcs $59,859 ($41 ,140) $18,719 $15,000 $33,719 36:3 Project WET - Source Protection Education $230,000 $230,000 44b Misc. -Drought Mitigation $126,500 ($64,532) $61,968 $61,968 45a Con 540 Fluid IQS, LLC, Scada Maint. $100,000 ($97,322) $2,678 $2,678 102-XX PO 38894, Beylik Drilling $95,000 $95,000 $95,000 103-12X IT Strategic Plan, Study & Implementation $150,000 $150,000 $150,000 l03-12x Phone System Improvements $120,000 ($57,515) $62,485 $62,485 Con 552, Badger Meter Inc., Drive by 706 Acoustic Leak Noise Logging System $45,000 $45,000 $45,000 Consultant- Re-establish "Open FRC 11 XX accounts $40,000 $40,000 XX AP Accruals $200,626 $200,626 $200,626 SUB-TOTAL 2011 -2012 CONTRACTS: $0 $1,697,335 ($434,049 $1,263,286 $360,000 $1,623,286 TOTAL 2011-2012 CONTRACTS: $0 $2,033,897 ($682,589 $1,351,308 $360,000 $1,711,308 TOTAL CONTRACTED CAI'ITAL EXPENDITURES, OTHERS: $812,246 $1,570,058 ($682,589) $1,699,715 $360,000 $2,059,715 $1,699,715 $2,059,715

11Contract Capital Exp FYE 2013 budget resolution 2012-2013 Page2 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 RESOURCES AND EXPENDITURES ACTUAL BUDGETED ESTIMATED BUDGET

101. CIP REPLACEMENT PROJECTS (p2) $ - $435,000 $0 $14,927,757

CONTRACTED CIP- RPL PROJECTS (p3) $ 1,902,691 $1,605,035 $1,165,692 $2,945,100

106b. CIP RESERVE FUND $ (525,529 $7,938 428 $3,441,816

TOTAL CAPITAL IMPROVEMENT PROJECTS: $ 1,377,162 $9,978,463 $1,165,692 $21,314,673

2012-2013 12Cap lmprv Budget FYE 2013 budget resolution Page 1 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND PROPOSED 2011-2012 ADDITIONS 2012-2013 101. CIP REPLACEMENTS (CONTRACTED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS)

WATER SOURCE ACQUISITION

Tank Sites (Koloa, Kilauea, Hanalei) $250,000 ($250,000) $0 $0 Land Acquisition- Koloa F (moved to FRC) $50,000 $50,000 ($50,000) $0 Waiahi SWTP Site (see to Tab 14) $150,000 $150,000 ($150,000) $0 K-01, Yamada Tank (Nursery Tank) & Connecting PL (moved fr Tab 13) $1,002,750 $1,002,750 $3,500,000 $4,502,750 Princeville Water System $1 $1 Waiahi SWTP Purchase $0 $0 $0 TOTAL WATER SOURCE: $250,000 $0 $952,750 $1,202,750 $3,300,001 $4,502,751

STORAGE Kalaheo, Kukuiolono Tank Site Exchange (moved to Tab 14) $30,000 $30,000 ($30,000) $0 Job 11-10, New 8" Waterline along Halewili Road, Kaumualii Highway to Huku Hale St. (fr CRP-75K) $0 ($16,077) $16,077 $0 $0 $0 11-11, K-17, Construct Kalaheo, Kokolau & Akulikuli surface Water Treatment facility $1 $1 TOTAL STORAGE: $30,000 ($16,077) $16,077 $30,000 ($29,999' $1

2012-2013 12Cap lmprv Budget FYE 2013 budget reso!ullon Page 2

I - DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND PROPOSED 2011 - 2012 ADDITIONS 2012-2013 101. CIP REPLACEMENTS (CONTRACTED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS) TRANSMISSION (697)Job 02-15, WK-28, WailuaHslts MLRepl $5,000,000 $5,000,000 $5,000,000 Job 02-19, \VK-12, Waipouli Main Replacement- Kuhio Hwy (est $3M) $2,250,000 $2,250,000 Job 04-03, WK-30, Pipeline Replacement along Waipouli Road and Olohena Road (est $2M) $2,750,000 $2,750,000 12-4, HE-14, Hanapepe-Eleele booster Pump Rehabilitation, Replace Existing booster Pumps $1 $1

12-6, WK-25, Kuhio Hwy. (N. Leho Rd. - Papaloa Rd. main Replacement $250,000 $250,000 12-7, PLH-24, Rice Street (Haleko & Kapule Hwy) 16" Main Replacement (5,160') Rice/Kapule Intersection Improvements $1 $1 Moloaa Well Pipeline Easement (to FRC) $0 $0 $0

Hanalei Tank PL Easement (to FRC) $0 $0 $0 TOTAL TRANSMISSION: $0 $0 $5,000,000 $5,000,000 $5,250,002 $10,250,002

2012-2013 12Cap lmprv Budget FYE 2013 budget resolution Page 3 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND PROPOSED 2011-2012 ADDITIONS 2012-2013 101. CIP REPLACEMENTS (CONTRACTED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS) IMPROVEMENTS

Job 11-01, As Needed Construction Management Services $50,000 ($50,000) $0 $0 $100,000 $100,000 WI' 2020 # M0-02,Moloaa Tank $75,000 $0 $75,000 $75,000 Job 11-05, As Needed Surveying ' Services $30,000 ($30,000) $0 $0 $0 $0 12-3, L0-19, Omao Microturbine $1 $1 12-4, HE-14, Hanapepe-Eleele Booster Pump Rehabilitation, Replace Existing Booster Pumps $1 $1 12-5, lslandwide Deep Well Pump Faciltity Energy Audit and Replacement of Inefficient Facility Components $1 $1

TOTAL IMPROVEMENTS: $155,000 ($80,000) $0 $75,000 $100,003 $175,003

CIP REPLACMENT PROJECTS: $435,000 ($96,077) $5,968,827 $6,307,750 $8,620,007 $14,927,757 $6,307,750 $14,927,757 $0

2012-2013 12Cap lmprv Budget FYE 2013 budget resolution Page4 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND PROPOSED 2011-2012 ADDITIONS 2012-2013 CONTRACT ENCUMBRANCES (ESTIMATED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS)

1993 -1994 CONTRACTS 370. Contract No. 259, Nishimura, Katayama, Ota & Santos, Inc., Job No. 93-1, 250,000 gallon tank- Wailua $53,751 ($600) $53,151 $53,151

TOTAL 1993-1994 CONTRACTS: $53,751 $0 ($600) $53,151 $0 $53,151

1994- 1995 CONTRACTS

401. Job No. 91-13, Contract No. 37348, R.M. Towill Corp., Drill & Test Hanamaulu Well No. I $645 $0 $645 $645

TOTAL 1994 -1995 CONTRACTS: $645 $0 $0 $645 $0 $645

1999-2000 CONTRACTS

519 Job No. 92-4, Contract No. 355, Okahara & Associates. Inc., Koloa Well upu $6,638 $6,638 $6,638

TOTAL CONTRACTS 1999- 2000: $6,638 $0 $0 $6,638 $0 $6,638

2012-2013 12Cap lmprv Budget FYE 2013 budget resolution Page5 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND PROPOSED 2011-2012 ADDITIONS 2012-2013 CONTRACT ENCUMBRANCES (ESTIMATED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS)

2001-2002 CONTRACTS 561. Job No. 99-8, Drill Omao Well No. I, Contract No. 384, Fukunaga & Associates $64,600 $15,260 $79,860 $79,860

TOTAL CONTRACTS 2001 - 2002: $64,600 $15,260 $0 $79,860 $0 $79,860

2002- 2003 CONTRACTS

586. Job No. 94-4, Contract No. 401, Control Mfg. Co., SCAD A $93,517 ($30,449 $63,068 $63,068

TOTAL CONTRACTS 2002-2003: $93,517 $0 ($30,449) $63,068 $0 $63,068

2003 - 2004 CONTRACTS

610. Job No. 02-11, Moloaa 0.1 MG Concrete Tank, Contract No. 429, Esaki Surveying (addt'l $94,222- BAB) $125,200 $125,200 $125,200 TOTAL CONTRACTS 2003- 2004: $125,200 $0 $0 $125,200 $0 $125,200 2004 - 2005 CONTRACTS

618. Job No. 02-05, Contract No. 52243, Earthworks Pacific, Ulaula Road, Eleele/6" main, Lihue $40,058 ($21,049) $19,009 $19,009

TOTAL CONTRACTS 2004- 2005: $40,058 $0 ($21,049) $19,009 $0 $19,009 ZUlZ- ZUlJ 12Cap lmprv Budget FYE 2013 budget resolution Page6 'I I I

DEPARTMENT OF WATER ANNUAL Ol'ERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY !lUND PROPOSED 2011-2012 ADDITIONS 2012-2013 CONTRACT ENCUMBRANCES (ESTIMATED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS)

2005- 2006 CONTRACTS

645. KW-25, Job No. 05-03, Brown & Caldwell, Kapilimao 0.5 MG Tank $5,775 $5,775 $5,775 651 Contract No. 466, Brown & Caldwell, KW-28, Job 06-01; AMFAC Shaft Renovation, Ph !A (fr CRP) $159,946 ($50,973) $108,973 $108,973 TOTAL CONTRACTS 2005- 2006: $165,721 $0 ($50,973) $114,748 $0 $114,748

2007- 2008 CONTRACTS 668. Contract No. 484, Wagner Engineering Services, Kukuiolono Site Exchange ' $5,210 $5,210 $5,210 TOTAL CONTRACTS 2007- 2008: $5,210 $0 $0 $5,210 $0 $5,210

2008- 2009 CONTRACTS 676. Contract No. 497, Kauai Builders, Ltd., KW-25, Job No. 05-03, Kapilimao 0.5 MG Storage Tank $221,268 ($120,586) $100,682 $100,682

TOTAL CONTRACTS 2008- 2009: $221,268 $0 ($120,586\ $100,682 $0 $100,682

2012-2013 12Cap lmprv Budget FYE 2013 budget resolution Page 7 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND PROPOSED 2011-2012 ADDITIONS 2012-2013 -CONTRACT ENCUMBRANCES (ESTIMATED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS)

2009- 2010 CONTRACTS 687 Con 507 Koga Engineering & Canst., Job 02-03, KW-14 12" WL Waimea Canyon Dr. $817,260 ($661,966) $155,294 ($155,294) $0 690 SSFM International, Job No. 05-03, WK- 25, Kapilimao Tank and Job No. 03, Hardening of Generator Shelter $3,515 $716 ($4,232) $0 $0 693 USGS Joint Funding Agreement. Water Monitoring Program $7,650 ($7,650) $0 $0 TOTAL CONTRACTS 2009- 2010: $828,425 $716 ($673,848) $155,294 -$155,294 $0 2010- 2011 CONTRACTS •' 694 Con 538 Esaki Surveying & Mapping, Inc., Job 11-05, As Needed Surveying Services $30,000 $30,000 $30,000

700 K-17, Construct Kalaheo Surface Water Treatment Facility 0.5 MGD $129,471 ($53,235) $76,236 $76,236 TOTAL CONTRACTS 2010-2011: $0 $159,471 -$53,235 $106,236 $0 $106,236

2012-2013 12Cap lmprv Budget FYE 2013 budget resolul!on Page 8

I DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CIP REPLACEMENT BUDGET WATER UTILITY FUND PROPOSED 2011-2012 ADDITIONS 2012-2013 CONTRACT ENCUMBRANCES · (ESTIMATED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET (DELETIONS)

2011 - 2012 CONTRACTS 696 Con 546 SSFM International, Inc. Job 11-01, As Needed Constr Mngnt Services $50,000 $50,000 $50,000 697 Job 02-15, WK-28, Wailua Hslts ML Rep! $0 $0 $0 698 Kauai Habitat for Humanity, Oversizing ML Ext., Eleele Luna Subd. (106b) $118,562 ($107,097) $11,465 $11,465 699 Con 555, Lyon Associates, Job 11-10, K- 18; 8" Main Rep!, Halewili Rd, Kalaheo (moved from Tab 13) $91,077 $91;077 $91,077 701 Con 549, Beylik Drilling & Pump, Job ·11-14, Puhi well #4, Turbine Pump " Assembly $68,000 ($18,075) $49,925 $49,925 702 Con 539, Mears Group, PLH-03, Kahili Directionally Drilled Horizontal Well (106b) $2,000,000 ($71,310) $1,928,690 $1,928,690

707 Con 553, Esaki Surveying & Map Job 12-1 (106b) $157,965 ($18,471) $139,494 $139,494 TOTAL CONTRACTS 2011 - 2012: $0 $2,485,604 ($214,952) $2,270,652 $0 $2,270,652 TOTAL CIP CONTRACT ENCUMBRANCES: $1,605,035 $2,661,051 ($1,165,692) $3,100,394 ($155,294) $2,945,100

2012-2013 12Cap lmprv Budge! FYE 2013 budget resolution Page 9 .

' .• J · .. DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CAPITAL REHABILITATION PROGRAM BUDGET WATER UTILITY FUND 2010-2011 2011-2012 2012-2013 RESOURCES AND EXPENDITURES ACTUAL BUDGETED ESTIMATED BUDGET

101b. CAPITAL REHABILITATION PROJECTS $ (630,082) $3,216,244 $204,471 $470,531

CONTRACTED CRP PROJECTS $ 874,126 $672,770 $174,884 $463,371

TOTAL CAPITAL REHABILITATION PROJECTS: $244,044 $3,889,014 $379,355 $933,902

13Cap!lal Rehab Budget FYE 2013 budget resolution 2012-2013 Page 1 .I. DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEJ\IENT BUDGET FISCAL YEAR 2012" 2013 CAPITAL REHABILITATION PROGRAM BUDGET WATER UTILITY FUND PROPOSED 2011 "2012 ADDITIONS 2012" 2013 101b. CAPITAL REHABILITATION (CONTRACTED) ENCUMBERED ADDITIONS BUDGET PRO.JECTS BUDGET (DELETIONS) (DELETIONS)

Island-Wide, State Hazard Mitigation, Program, Matching Funds for Hardening Essential Facilities (8/15/01 BOD meeting), K\V-24, WK-15, PLH-12 $350,000 ($349,999) $1 $1

HE· I I Hanapepe. Eleele Road to Salt Pond, 6" Main Replacement (5379') $150,000 ($149,999) $1 $1 Kalaheo, Nursery Tank and Clearwell Tank Renovation (move to WIU-CIP) $1,002,750 ($1 ,002,750) $0 $0

Wailua/Kapaa, Nonou Tank, Convert to Storage Area $100,000 ($100,000) $0 $0

Kekaha, Kekaha Shaft (II) Renovation, Phase 2, Job No. 06-01, KW-28 (Encumbrance 12/31/07 BOD Mtg) $538,494 ($538,494) $0 $0

13Cap!\al Rehab Budget FYE 2013 budget resolution 2012-2013 Page 2 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CAPITAL REHABILITATION PROGRAM BUDGET WATER UTILITY FUND PROPOSED 2011-2012 ADDITIONS 2012-2013 lOlb. CAPITAL REHABILITATION (CONTRACTED) ENCUMBERED ADDITIONS BUDGET (DELETIONS) BUDGET PROJECTS fDELETIONSl Job 11-02 WP 2020 #PLH-Ola- Replace Grove Farm Tanks I & 2 $400,000 ($400,000) $0 $0

Job 11-07 WP 2020 HE-03 Hanapepe & ' Koloa Well MCC Improvements (est $1.5M) $ 300,000 $300,000 $300,000 Job 11-10, New 8" Waterline along Halewili Road, Kaumualii Highway to Huku Hale St. (moved to Tab 12) $75,000 ($75,000) $0 $0 K-17, Construct Kalaheo Surface \Vater Treatment Facility 0.5 MGD $300,000 ($129,471) $170,529 $170,529 TOTAL CAPITAL REHABILITATION PROJECTS: $3,216,244 ($204,471) ($2,541 ,242) $470,531 $0 $470,531

13Capltal Rehab Budget FYE 2013 budget resoful!on 2012-2013 Page 3 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CAPITAL REHABILITATION PROGRAM BUDGET WATER UTILITY FUND lOib. CAPITAL REHABILITATION PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 ENCUMBERED ADDITIONS BUDGET (DELETIONS) PAYMENTS BUDGET REHABILITATION PROJECTS (DELETIONS)

CONTRACT ENCUMBRANCES 1997- 1998 CONTRACTS

464. Job No. 97-1, Contract No. 309, SSFM Engineers, repair Kokolau Tunnel $118,382 ($118,381) $1 $0 $1

TOTAL 1997 -1998 CONTRACTS: $118,382 ($1 18,381) $0 $1 $0 $1

1999 - 2000 CONTRACTS

499. Job No. 97-7, Contract No. 346, \Vagner Engineering Service, Repl Lawai 8" \VL $4,900 ($4,899) $1 $1

TOTAL 1999- 2000 CONTRACTS: $4,900 ($4,899) $0 $1 $0 $1

13Cap!la1 Rehab Budget FYE 2013 budget resolullon 2012-2013 Page4 DEl'ART ME NT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 20I2- 20I3 CAPITAL REHABILITATION PROGRAM BUDGET WATER UTILITY FUND 101b. CAPITAL HEHABILITATION PHOPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 ENCUMBERED ADDITIONS BUDGET (DELETIONS) PAYMENTS BUDGET HEHABILITATION PHOJECTS (DELETIONS)

CONTRACT ENCUMBRANCES 2002-2003 CONTRACTS

578. Job No. 02-03, Contract No. 397, PAREN, Inc. 12-inch Waterline along Wairnea Canyon Road $3,150 (3,150.00) $0 $0

587. Job No. 02-15, Contract No. 403, RM Towill Corp., Wailua Hslts Main Replacement $84,337 ($1.700) $82,637 $82,637

588. Job No. 02-18, Contract No. 404, Fukunaga & Assoc., Kapaa Homesteads Pipeline Replacement $51,100 $51,100 $51,100

591. Job No. 02-17, Contract No. 408, \Vagner Engineering, Inc,., Maka Ridge DW, Tank & Pipeline $29,599 ($12.290) $17,309 $17,309

592. Job No. 02-16, Contract No. 409, Esaki Surveying & Mapping, Inc., Ohana, Anolani, & Kuamoo Rds Mainline Replacement (lOOK to tab 15, BAB) $101,425 $0 ($1,425) $100,000 ($100,000) $0

TOTAL 2002 - 2003 CONTRACTS: $269,611 $0 ($18,565) $251,046 J.$100,000\ $151,046

13Capl\al Rehab Budget FYE 2013 budget reso!ut!on 2012-2013 Page 5

L DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CAPITAL REHABILITATION PROGRAM BUDGET WATER UTILITY FUND 101b. CAPITAL REHABILITATION PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 ENCUMBERED ADDITIONS BUDGET (DELETIONS) PAYMENTS BUDGET REHABILITATION PROJECTS (DELETIONS)

CONTRACT ENCUMBRANCES

2003-2004 CONTRACTS ' 60 l. Job No. 02-08, Eleele '1\vin 0.4 MG Tanks, Contract No. 420 Hawaii Pacific Engineers $8,327 $0 $8,327 $8,327 607. Job No. 02-21, Rehabilitate and Deepen Existing Wells, Contract No. 425, Hawaii Pacific Engineering (fr CIP) $3,149 $0 $3,149 $3,149

609. Job No. 03-02, Contract No. 428, Brown & Caldwell, Renovations \Vainiha Booster~ Haena Steel Tank, Anahola 0.15 MG Tank, Kekaha Shaft. $31,461 ($1,874) $29,587 $29,587

.. TOTAL 2003-2004 CONTRACTS $42,937 $0 ($1,874 $41,063 $0 $41,063 2004 - 2005 CONTRACTS 630. \VK-14, Job No. 04-02, Contract No. 447, Fukunaga & Associates~ Pipeline replacement, Vivian Heights and Kanaele Road $5,791 $5,791 $5,791

TOTAL 2004 - 2005 CONTRACTS $5,791 $0 $0 $5,791 $0 $5,791

13Capltal Rehab Budget FYE 2013 budget resolution 2012 "2013 Page 6 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CAPITAL REHABILITATION PRO GRAM BUDGET WATER UTILITY FUND 101b. CAPITAL REHABILITATION PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012- 2013 ENCUMBERED ADDITIONS BUDGET (DELETIONS) PAYMENTS BUDGET REHABILITATION PROJECTS (DELETIONS)

CONTRACT ENCUMBRANCES

2005 - 2006 CONTRACTS

634. WK-30, Job 04-03, Contract No. 450, ParEn Inc., Waipouli-Olohena Rd Pipeline $136,280 ($107,860) $28,420 $28,420

635. KW-16, Job No. 05-01, Contract No. 449, Hawaii Pacific Engineering, Inc., \Vaimea Main Replacement $12,148 ($12, 147) $1 ($!) $0

636. PLH-12, Job No. 05-06, Contract No. 451, BOW Eng. & Dev., Eiwa, Umi, Akahi, Elua, Hardy St. 8" Main Replacement $26,404 ($15,577) $10,827 ($10,827) ($0)

638. PLH-30, Job No. 05-05, Contract No. 453, Belt Collins & Associates, Nawiliwili, Niumalu, Kupolo Main Replacement $24,978 ($5;040) $19,938 $19,938

13Capital Rehab Budget FYE 2013 budget resolution 2012.2013 Page 7

L DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 CAPITAL REHABILITATION PROGRAM BUDGET WATER UTILITY FUND 101b. CAPITAL REHABILITATION PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 ENCUMBERED ADDITIONS llUDGET (DKL!n'IONS) PAYMENTS BUDGET REHABILITATION PROJECTS (DELETIONS)

CONTRACT ENCUMBRANCES 2005 - 2006 CONTRACTS CON'T $0 $0

647. KW-05, KW-20, Job No. 04-06, . Engineering Solutions Inc., Renovate Waimea Well A and Kekaha Well B $30,964 ($13,445) $17,519 $17,519

TOTAL 2005 - 2006 CONTRACTS $230,774 $0 ($154,069) $76,705 ($10,828) $65,877

2009-2010 CONTRACTS

683 Contract No. 503, Goodfellow Bros., Job No. 04-06, KW-05, Kekaha (Waipio) Well "B" Renovations (move to BAB) $375 ($375) ($0) ($0)

TOTAL 2009- 2010 CONTRACTS $375 $0 ($375' ($01 $0 ($0)

2011 - 2012 CONTRACTS $0 $0

XXX Con # 557, Okahara, Job 11-07 WP 2020 HE-03 Hanapepe & Koloa Well MCC Improvements (est $1.5M) $0 $199,592 $199,592 $199,592

TOTAL 2011 - 2012 CONTRACTS $0 $199,592 $0 $199,592 $0 $199,592

TOTAL CRP CONTRACT $672,770 $76,312 ($174,884) $574,199 ($110,828\ $463,371

13Capllal Rehab Budget FYE 2013 budget resolution 2012-2013 Page 8 DEPARTMENT OF WATER BUDGET 2012- 2013 RESOLUTION NO. 13-1

II. FACILITIES RESERVE CHARGE

Beginning Balance $ 3,224,354.00 Facilities Reserve Charge $ 1,000,000.00 Interest Earned $ 43,750.00 BAB Subsidy $ 306,692.00 TOTAL RESOURCES: $ 4,574,796.00

EXPENDITURES

Capital Improvement Projects $ 2,606,523.00 Debt Service $ 1,968,273.00 TOTAL EXPENDITURES: $ 4,574,796.00

FY 2013 RESOLUTIONS·WU FRC BOND Page 2 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012- 2013 FRCFUND

2010-2011 2011-2012 2012-2013 2012-2013 RESOURCES AND EXPENDITURES ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

BEGINNING BALANCE: $ 5,535,243 $ 4,367,932 $ 4,367,932 $ 3,224,354 $ 3,224,354

Projected Resources $1,045,856 $854,442 $888,440 $ 1,350,442 $ 1,350,442

TOTAL RESOURCES: $ 6,581,099 $ 5,222,374 $ 5,256,372 $ 4,574,796 $ 4,574,796 '

FRC Fund Balance $ 1,672,222 $2,170,461 $0 $ 1,931,556 $ 1,931,556

Debt Service $ 284,622 $1,989,115 $1,989,115 $1,968,273 $1,968,273

Capital Improvement Projects $ 1,387,600 $500,000 $0 $380,000 $380,000

Capital Improvement Contracted Projects $ 540,946 $562,797 $42,903 $294,967 $294,967

TOTAL EXPENDITURES: $ 2,213,168 $5,222,374 $ 2,032,018 $4,574,796 $ 4,574,796

ENDING BALANCE: $ 4,367,932 $ (0) $ 3,224,354 $ 0 $ 0

14FRC Fund FYE 2013 budget resolution

2012-2013 Page 1 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012- 2013 FRCFUND

2010- 2011 2011-2012 2012-2013 2012-2013 RESOURCES ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

4A. FACILITIES RESERVE CHARGE $ 1,002,800 $504,000 $547,100 $1,000,000 $1,000,000

5A. INTEREST EARNED $ 43,056 $43,750 $34,648 $43,750 $43,750

5B. BAB Subsidy $ - $306,692 $306,692 $306,692 $306,692

TOTAL RESOURCES: $1,045,856 $854,442 $888,440 $1,350,442 $1,350,442

14FRC Fund FYE 2013 budget resolution

2012-2013 Page2 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012- 2013 FRC FUND- CAPITAL IMPROVEMENT PROJECTS BUDGET

PROI'OSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 CONTRACTED ENCUMBER ADDITIONS 301. FRC- Fund (DELETIONS PAYMENTS BUDGET (DELETIONS BUDGET

Fund Balance

301b FRC Fund Balance $2,170,461 $125,000 ($363,906) $1,931,556 $1,931,556

301b FRC Fund Balance $2,170,461 $0 $125 000 '$1,931,556 $0 $1,931,556

FRC- Debt Service

301c FRC Debt Service $1,989,115 ($1,989,115) $0 $1,968,273 $1,968,273

301c FRC Debt Service $1,989,115 $0 $0 ($1,989,115) $0 $1,968,273 $1,968,273

14FRC Fund FYE 2013 budget resolullon

2012-2013 Page 3

L- DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012- 2013 FRC FUND- CAPITAL IMPROVEMENT PROJECTS BUDGET

PROPOSED 2011-2012 ADDITIONS ESTIMATED ENCUMBRANC 2012-2013 301. FRC CIP CONTRACTED ADDITIONS BUDGET (DELETIONS PAYMENTS E BUDGET (DELETIONS

STORAGE

Lawai-Omao, Construct Omao 0.5 MG Tank $0 $0 Kilauea, Design 1.0 MG Tank, WKK-15 (BAB- Kodani) $0 $0 Job 11-08 WP 2020 KP-05, Construct Poipu 1.0 MG Tank (trnsfr to BAB) $0 $0 Mo1oaa Well Pipeline Easement $25,000 $25,000

Hanalei Tank Pipeline Easement $25,000 $25,000 Kalaheo, Kukuiolono Tank Site Exchange (moved to FRC) $30,000 $30,000

TOTAL STORAGE: $0 $0 $0 $0 $80,000 $80,000

14FRC Fund FYE 2013 budget resolution 2012-2013 Page4 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT DUD GET FISCAL YEAR 2012- 2013 FRC FUND - CAPITAL IMPROVEMENT PROJECTS DUD GET

PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 301. FRC CIP CONTRACTED ENCUMBRANCE ADDITIONS BUDGET (DELETIONS PAYMENTS (DELETIONS BUDGET

WATER SOURCE

Kilauea, Design and drill Well No. 3 or 4, WKK-2 (to BAB) $0 $0 $0

Job 05-02, H-8, H-12, Hanalei & Wainiha Test Wells (to BAB) $0 $0 $0 $0

WK -23, UH Experimental Station (Phase I) $0 $50,000 $50,000

Land Acquisition- Koloa F (fr CRPL) $0 $50,000 $50,000

Waiahi SWTP Site (fr CRPL) $0 $0

TOTALWATERSOURCE $0 $0 $0 $0 $100,000 $100,000

'·

14FRC Fund FYE 2013 budget reso1ulion

2012-2013 Page5 1 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012- 2013 FRC FUND- CAPITAL IMPROVEMENT PROJECTS BUDGET

PROPOSED 2011- 2012 ADDITIONS ESTIMATED 2012-2013 301. FRC CIP CONTRACTED ENCUMBERED ADDITIONS BUDGET (DELETIONS PAYMENTS BUDGET (DELETIONS

WATER SOURCE DEVELOPMENT

$0 $0

TOTALWATERSOURCE ' DEVELOPMENT: $0 $0 $0

FRC OFFSET/ REFUNDS $500,000 $0 ($300,000) $200,000 $200,000

TOTAL $500,000 $0 ($300,000) $200,000 $0 $200,000

TOTAL CAPITAL IMPROVEMENT PROJECTS: $500,000 $0 ($300,000) $0 $200,000 $180,000 $380,000

14FRC Fund FYE 2013 budget resolution 2012-2013 Page6 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012-2013 FRC FUND- CAPITAL IMPROVEMENT PROJECTS BUDGET

. PROPOSED 2011-2012 ESTIMATED 2012-2013 301. FRC CIP ADDITIONS (DELETIONS) ENCUMBERED ADDITIONS PAYMENTS BUDGET (DELETIONS) BUDGET

CONTRACT ENCUMBRANCES

1998- 1999 CONTRACTS

302. Job No. 87-1, Contract No. 322, GMP Assoc., Inc., Poipu Storage Tatlk $2,050 ' $2,050 $2,050 TOTAL CONTRACTS 1998- 1999: $2,050 $0

1999 - 2000 CONTRACTS

304. Job No: 98-33, Contract No. 345, Fukunaga & Assoc., Drill and Test Wailua Well No.3 $10,500 $0 $10,500 $10,500

TOTAL CONTRACTS 1999- 2000: $10,500 $0 $0 $10,500 $10,500

2003 - 2004 CONTRACTS

314. Job No. 02-02, Fukunaga & Assoc., Omao 0.5 MG Tank (to BAB) $0 $0 $0 $0

TOTAL CONTRACTS 2003- 2004: $0 $0 $0.00 $0

14FRC Fund FYE 2013 budget resolution

2012-2013 Page 7

l DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2012 - 2013 FRC FUND- CAPITAL IMPROVEMENT PROJECTS BUDGET

PROPOSED 2011-2012 2012-2013 301. FRCCIP ADDITIONS (DELETIONS) ESTIMATED ENCUMBER ADDITIONS BUDGET (DELETIONS) BUDGET

CONTRACT ENCUMBRANCES

2005- 2006 CONTRACTS 318. H-8, HW-12, Job No. 05-02, Contract No. 457, Kodani & Associates, Inc., Drill and Test Wainiha Well No.4 $285,340 ($125,000) $160,340 $160,340

319. JobNo.A-II,ContractNo.458, Akinaka & Associates, Inc., Anahola Well No.3 $0 $0 $0 $0

TOTAL CONTRACTS 2005-2006 $285,340 $0 $0 $160,340 $160,340

2006- 2007 CONTRACTS 321. WK-23, Job No. 93-1, Contract No. 471, Portech, 250,000 MG UHTank $28,187 ($21,0 I 0) $7,177 $7,177

TOTAL CONTRACTS 2006-2007 $28,187 $0 ($21,010) $7,177 $7,177

TOTAL CONTRACT ENCUMBRANCES: $326,077 $0 $0 ($21,010) $178,017 $0 $178,017

14FRC Fund FYE 2013 budget resolul!on 2012-2013 Page 8 DEPARTMENT OF WATER ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FISCAL YEAR2012- 2013 FRC FUND- CAPITAL IMPROVEMENT PROJECTS BUDGET

PROPOSED 2011-2012 2012-2013 301. FRCCIP ADDITIONS (DELETIONS) ESTIMATED ENCUMBER ADDITIONS BUDGET BUDGET (DELETIONS CONTRACT ENCUMBRANCES 2007 - 2008 CONTRACTS 322. A-11, Contract No. 475, Tomeo Corp. Pump, Controls, Anahola Well No. 3. $72,294 $0 $72,294 ($72,294) $0

323. WK-08, Contract No. 427, Belt Collins, Hawaii, Kapaa Homesteads 0.5 MG Tank and Kapaa 1.0 MG Tank $0 $0 $0 $0

324. WK-39, Contract No. 488, HDR Engineering, Inc., Drill and Test Kapaa Homesteads Well No.4. $138,843 $0 ($21 ,893) $116,950 $116,950 TOTAL CONTRACTS 2007-2008 $2ll,137 $0 ($21,893) $189,244 ($72,294) $116,950

2008-2009 CONTRACTS 325. Contract No. 492 Earthworks Pacific, WK-42, . Phase II Offsite Waterline on Kaapuni Road for Stable Tank $25,583 $0 $25,583 ($25,583) $0

TOTAI, CONTRACTS 2008-2009 $25,583 $0 $0 $25,583 ($25,583) $0

Unlimited Builders, LLC, L0-04, Construct 326 Piwai 0.5 MG Tank $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL CONTRACT ENCUMBRANCES: $562,797 $0 $0 ($42,903) $392,844 ($97,877) $294,967

14FRC Fund FYE 2013 budge! resolullon

2012-2013 Page 9

J DEPARTMENT OF WATER BUDGET 2012 - 2013 RESOLUTION NO. 13-1

III WATERWORK BUILD AMERICA PROJECT FUND

Beginning Balance $ 32,677,749 Bond Proceeds $ Interest Income $ 210,000.00

TOTAL RESOURCES: $ 32,887,749

EXPENDITURES

Capital Improvement Projects $ 21,970,679 Contracted CIP,,. Projects $10,917,069

TOTAL EXPENDITURES: $ 32,887,749

FY 2013 RESOLUTIONSWU FRC BOND Page 3 DEPARTMENT OF WATER WATERWORKS BUILD AMERICA PROJECT FUND CAPITAL IMPROVEMENT PROJECTS FISCAL YEAR 2012-2013

2010-2011 2011-2012 2012-2013 2012-2013 RESOURCES AND EXPENDITURES ACTUAL BUDGETED ESTIMATED PROPOSED APPROVED

BEGINNING BALANCE: $ 58,723,019.84 $ 42,251,093 $ 42,251,093 $ 32,677,749 $ 32,677,749

Projected Resources $ - $ - $ 2,084,422 $ 210,000 $ 210,000

TOTAL RESOURCES: $ 58,723,020 $ 42,251,093 $ 44,335,515 $ 32,887,749 $ 32,887,749

DAB- CIP Fund $ - $ 19,433,619 $ 21,970,679 $ 21,970,679 ,, Contracted CIP Projects $ 16,471,927 $22,817,474 $11,657,766 $ 10,917,069 $ 10,917,069

TOTAL EXPENDITURES: $ 16,471,927 $ 42,251,093 11,657,766 32,887,749 32,887,749

ENDING BALANCE: $ 42,251,093 $ - 32,677,749 0 0

2012-2013 15Waterwork Build America Project Fund FYE 2013 budget resolution Page 1 DEPARTMENT OF WATER WATERWORKS BUILD AMERICA PROJECT FUND CIP ENCUMBRANCES & PROJECT PRIORITY LIST FISCAL YEAR 2012-2013

PROPOSED 2011-2012 ADDITIONS 2012-2013 BAB FUND (CONTRACTED) ENCUMBERED NEW BUDGET (DELETIONS) BUDGET ADDITIONS

201-01: BAB- CAPITAL IMPROVEMENT PROJECTS $ 21,970,679

1. ENCUMBRANCES:

Job 02-11, M-02 Land Acquisition $ ,-, $ 121,000 $ 121,000 $ 121,000

$ -

,$ - TOTAL ENCUMBRANCES $ - $ - $ 121,000 $ - $ 121,000

2012-2013 15Watenvork Build America Project Fund FYE 2013 budget resolution Page2 ,. :.;_ --- ~- .L I

DEPARTMENT OF WATER • J WATERWORKS BUILD AMERICA PROJECT FUND CIP ENCUMBRANCES & PROJECT PRIORITY LIST FISCAL YEAR 2012-2013

PROPOSED 2011-2012 ADDITIONS 2012- 2013 BAB FUND (CONTRACTED) ENCUMBERED NEW BUDGET (DELETIONS) BUDGET ADDITIONS

CIP FUND BALANCE AVAILABLE FOR FY 2013 PROJECT PRIORITY LIST $ 21,849,679

2. PROJECT PRIORITY LIST

Job 02-14, WK-08, Kapahi 1.0 MG Tank(est $8M) $ 1 $ 1

K-01, Yamada Tank (Nursery Tank) and Connecting Pipeline (SRF, CASH, BAB) $ 7,000,000 $ 7,000,000 PLH-J\1, lJUW J:laseyal'CI Improvements Phase I (est $6M). $ 4,000,000 $ 4,000,000 • Job 02-06, WP 2020, WKK-15, Kilauea l.OMG Tank (est 3M) $ 4,000,000 $ 4,000,000

WK 39, Drill & Tess Kapaa Hmstds. Well# 4 $ 750,000 $ 750,000

HW 12, Drill & Test Wainiha Well# 4 $ 750,000 $ 750,000

WK K02, Drill & Test Kilauea Well# 3 $ 750,000 $ 750,000 Job 02-11, M-02, Moloaa 0.1 MG Tank (est $1.5M) (FRC partial) $ 1,000,000 $ 1,000,000 Job 11-01, WP 2020, PLH-OIA, Replace Grove Farm Tanks I & 2 (est $3M) $ 3,000,000 $ 3,000,000

LV IL-L\ "~ 15Waterwork Build America Project Fund FYE 2013 budget resolution Page 3 -- . -~ .. DEPARTMENT OF WATER WATERWORKS BUILD AMERICA PROJECT FUND CIP ENCUMBRANCES & PROJECT PRIORITY LIST FISCAL YEAR 2012-2013

PROPOSED 2011-2012 ADDITIONS 2012-2013 BAB FUND (CONTRACTED) ENCUMBERED NEW BUDGET (DELETIONS) BUDGET ADDITIONS State DOT-highway widening $ 1 $ 1 Job 02-19, WK-12, Waipouli Main Replacement - Kuhio Hwy (est $3M) $ 1 $ 1 Job 04-03, WK-30, Pipeline Replacement along Waipouli Road and Olohena Road (est$2M) $ 1 $ 1 Job 10-01, WP 2020, ANI-01, Anini Pipeline (est $8M) $ 1 $ 1 Job 11-04 WP 2020 #L0-08, L0-10 Omao -Lawai Pipeline (est $2M) $ - $ 1 $ 1 Job 11-06 WP 2020 #WK-01 '' Rehabilitate Moalepe Tunnel and Access Road (est $2M) $ 1 $ 1 - Job 11-07 WP 2020 HE-03 Hanapepe & Koloa Well MCC Imprvmnts (est $1.5M) $ 1 $ 1 Job 06-01, KW-28, AMFAC Well (est $2M) $ 1 $ 1 WK-28, Wailua Houselots Pipe (est 6M) (WU-5M)) $ - $ 1 $ 1 WK-02, Akulikuli Tunnel (est. 5M) $ - $ 1 $ 1 TOTAL CAPITAL IMPROVEMENT PROJECTS: $ - $ - $ - $ - $ 21,250,011 $ 21,250,011 2012-2013 15Waterwork Build America Project Fund FYE 2013 budget resolution Page4

- L - . - _.- DEPARTMENT OF WATER WATERWORKS BUILD AMERICA PROJECT FUND CIP FUND -CONTRACT ENCUMBRANCES FISCAL YEAR 2012-2013

PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012 -2013 BOND FUND ENCUMBERED ADDTIONS BUDGET (DELETIONS) PAYMENTS BUDGET (DELETIONS) 2009- 2010 CONTRACTS 218 Con 513, Jennings Pacific, LLC, Job No. 02-18, WK- 32 Kapaa Homesteads Pipe Replacement $966,252 (966, 195) $57 $57 219 Con 514, Earthworks Pacific, Job No. 04-02, WK -14, Pipeline Replacement for Vivian Heights $615,642 (476,366) $139,276 $139,276 220 Con 516, Unlimited Builders, LLC Job No. 03-02, HW-02, Wainiha Booster Pump Station $2,0U,070 (348,437) $1,662,633 $1,662,633 683 Con 503 (20 1-0 I) Goodfellow Brothers, Inc. Job 04-06, KW-05, Kekaha Well "B" Renovations $ 262,036 $ 46,016 (265,224) $42,829 375 $43,204 684 Con 504, Goodfellow Bros., Inc Job 05-01 KW-16 Waimea Main Replacement $112,544 (112,524) $20 (20) $0

687 Con 507 Koga Engineering & $8,796 Const. Job 02-03, KW 14 12" WL $1,276,268 ($1,276,268) (8,796) $0 $0

TOTAL CONTRACTS 2009-2010: $5,243,812 ($1,221,456) (2,177,541) $1,844,815 $355 $1,845,170

2012- 2013 15Walerwork Build America Project Fund FYE 2013 budget resolution Page 5 . -~ .- PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012 -2013 BOND FUND ENCUMBERED ADDTIONS BUDGET (DELETIONS) PAYMENTS BUDGET (DELETIONS)

2010 - 2011 CONTRACTS 221 Con 520 Fukunaga & Associates Job# 10-01, Ani-01a Pipeline Rep!- Anini Road $665,360 (331,800) $333,560 $333,560 222 Con 519 Park Engineering- Job II 10-02, Upsizing of the Kaumualii Hwy.16' $14,103 $14,103 $14,103 223 Con 523 BCP Construction of Hawaii Job 05-06, PLH 25 Eiwa, Umi, Akahi 8" ML Rep! $2,027,666 $16,970 (1,837,108) $207,527 $207,527 224 Con 524 Koga Engineering & Construction, Inc. Job 02-16, WP 2020 Proj WK 36, Pipeline Rep!

along Wailua, Ohana, Anolani & <' KuamooRds. $1,045,800 $346,900 (495,616) $897,084 $897,084 225 Con 405 3rd n 4th Amm Kodani & .. (frw/u AssocJob02-19 KW -12 589 ) wmpou . I'1 M am . Rep I wat 'I ua - Kapaa (fr w/u 589) $13,540 (6, 170) $7,370 $7,370 227 Con 525 KW - 20 R. Electric Waimea Well A Renovations $529,053 $76,479 (308,235) $297,297 $297,297 326 Con 518 L0-04, Unlimited Builders, LLc Job 02-02, Piiwai 677" 0.5 MG Storage Tank & Connecting Pipeline, Lawai $725,382 (710, 152' $15,230 (15,230' $0 2012-2013 15Waterwork Build America Project Fund FYE 2013 budget resolution Page6 c__ _ .- ~- PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 BOND FUND ENCUMBERED ADDTIONS BUDGET (DELETIONS) PAYMENTS BUDGET (DELETIONS) 2010-2011 CONTRACTS CONT.

230 Con 529 Oceanic Company, Inc. Job 02-08, WP 2020 Proj HE-08, Rehabilitation of Eleele Twin 0.4 MG Steel Tanks, $1,718,185 $175,000 (654,055) $1,239,130 $1,239,130 231 Con 530 Earthworks Pacific, Inc. Job 02-19, WP 2020 Proj WK-12, Waipouli Main Replacement $2,045,000 $ 255,668 (1,628,051) $672,617 $672,617

232 Con 427 Belt Collins Hawaii, Ltd., Job 02-14, Kapaa Homesteads 0.5 MG Tank & Kapahi 1.0 MG Tank & Connecting Pipelines, Wailua- Kapaa $74,966.. (44,328) $30,638 $30,638 233 - Con 533 Job No. K-01, Kalaheo 1111' & 1222' Water System Improvements, Kalaheo, Kauai, HI $971,716 (505,005) $466,710 $466,710 608 Con. No. 427, Belt Collins Hawaii 0.5 MG Tank & Kapahi 1.0 MG Tank (fi· W/U) $33,950 ($8,028) $25,922 .$25,922 621 Con No. 440, Kodani & Associates, Kilauea 1.0 MG Tank & Pipeline, Phase I (ii· W/U) $88,325 $201,500 (52,850) $236,975 (57,625) $179,350

2012-2013 15Waterwork Build America Project Fund FYE 2013 budget resolution Page 7 ·.~ ..

PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 BOND FUND ENCUMBERED ADDTIONS BUDGET (DELETIONS) PAYMENTS BUDGET (DELETIONS) 692 Con No. 512, Architects Hawaii, Ltd., Job No. PLH-39, Lihue Baseyard Improvements for the DOW(frW/U) $796,699 (283,108) $513,591 ($129,603) $383,988 314 Job. No. 02-02, Fukunaga & Associates, Inc. Omao 0. 5 MG Tank ( fi· FRC) $62,996 (22,460) $40,536 (40,536) $0 236 Job 10-02 Lihue, MOA with State of Hawaii for upsizing of the kaumualii Highway 16-inch to 24- inch waterline. $ 151,027 0 $151,027 $151,027 235 Con 534 Goodfellow Bros., Inc. - Job No. 05-05, PLH-30, Nawiliwili, Niumalu, and Kupolo " 6", 8" and 12" Main Rep! (Ph I) $ 3,202,500 (2,460,494) $742,006 $742,006 237 con 536, Esaki Surveying & Mapping, Inc. Job 11-02, PLH-01a Replace grove Farm Tanks #1 & #2 $ 229,658 (31,635) $198,023 $198,023 592 con 409, Esaki Surveying & Mapping, Inc.; Job 02-16, WK-36, P/L replace - Wailua $ 100,000 $ - (34,242) $65,758 $65,758

2010- 2011 CONTRACTS $14,495,925 $1,064,489 (9,405,309' $6,155,106 ($242,994\ $5,912,112

2012-2013 15Waterwork Build America Project Fund FYE 2013 budget resolution Page8

:___ [ __ _ .· _.-

PROPOSED 2011-2012 ADDITIONS ESTIMATE)) 2012-2013 BOND FUND ENCUMBERED AD!JTIONS BUDGET (DELETIONS) PAYMENTS BUDGET (DELETIONS)

2011 - 2012 CONTRACTS 238 Con 544, Honoa Engineering, Job 11-04 (L-08, L-1 0) Water Main Replacement & Service Improvement $ 95,425 (35,025) $ 60,400 $ 60,400 239 Con 542, Mei Corporation, Job 02- 17, H-01, H-02, H-03 Maka Rideg Facilities Rehab & Princeville Interconnection Plan $ 2,500,000 0 $ 2,500,000 $ 2,500,000 240 Con 543, Oceanit Laboratories, ,, Inc, Job 11-03, M-03 Land & Well Acquisition, Moloaa and Waimea $ 165,000 (20,691) $ 144,309 $ 144,309 241 Con 457, Kodani & Associates Inc,, Job 05-02, H-8, HW-12 Drill & Test Hanalei Well #2 & Wainiha Well #4 $ 32,430 0 $ 32,430 $ 32,430 243 Con 550, Honua Engineering, Inc, Job 11-06, WK-01 $ 100,540 (19,200) $ 81,340 $ 81,340

2012- 2013 15Water.vork Build America Project Fund FYE 2013 budget resolution Page 9 PROPOSED 2011-2012 ADDITIONS ESTIMATED 2012-2013 BOND FUND ENCUMBERED ADDTIONS BUDGET '(DELETIONS) PAYMENTS BUDGET (DELETIONS)

610 Con 429, Esaki Surveying & Mapping, Inc., Job 02-11, M-02, lOOK Gat Tnk & Connecitng PL, Moloaa, Kauai. (Initial Con fr\VU) $ - $ 94,222 0 $ 94,222 $ 94,222 244 Con 551, Esaki Surveying & Mapping, Inc., WP 2020, Job# K- 05A, Kukuilono 0.5 MG, 886' Tank $ 247,087 0 $ 247,087 $ 247,087

I '.

TOTAL CONTRACTS 2011-2012: $ - $ 3,234,704 (74,916) $ 3,159,788 $ - $ 3,159,788 TOTAL CONTRACTS ENCUMBRANCES $19,739,737 $3,077,737 (11,657,766) $11,159,708 ($242,639) $10,917,069

2012-2013 15Waterwork Build America Project Fund FYE 2013 budget resolution Page 10

r:· - '------I I

2012- 2013 BUDGET REVISIONS TO PROPOSED BUDGET

WATER UTILITY FUND

2012-13 REVISED ACCOUNT TITLE INCREASE DECREASE BUDGET AMOUNT DETAIL Water Utility Fund $ 16,823,329.00 $ 2,347,541.00 $ 19,170,870.00 INCREASE: Net Increase from Operations. Water Sales and DECREASE estimated revenues due to declining water 1. $ 24,137,595.00 $ 700,000.00 $ 23,437,595.00 Service Charge consumption. See attached chart for the past 5 years. Helath & Dental - DECREASE. Adjust Annual OPEB Cost per AON 67 $ 1,632,614.00 $ 782,614.00 $ 850,000.00 Retirees & OPEB Valuation summary. DECREASE (Net) Added $40,000 as approved on June 28, 2012 board meeting to hire Consultant to re-establish open FRC accounts. Contracted Capital Encumbered AP Accruals: $200,626 for: (61)- Worker's Tab Expenditures: $ 2,272,935.00 $ 240,626.00 $ 453,847.00 $ 2,059,714.00 Cornp Insurance, $ 2,988.64, (62)- Retirement System, 11 Various $ 79655.83, (63)- FICA Taxes- Employer's, Encumbrances $39,207.38, (64)- Health Life & Dental,$ 44,520.88, (67)- $20,114.50 ,. DECREASE. FY 2012 Actual Payments posted increased by $453,847. CIP Replacement DECREASE. Encumbrance of Actual balances as of 101 Projects: Contracted $ 3,153,962.00 $ 208,862.00 $ 2,945,100.00 June 30, 2012. CIP Projects Capital INCREASE: Job 11-07 WP 2020 HE-03 Hanapepe & 101 b Rehabilitation $ 270,939,00 $ 199,592.00 $ 470,531.00 Koloa Well -add back $199,592 listed as contracted in Projects FY 2012. I 06b CIP Reserve $ 788,900.00 $ 2,652,916.00 $ 3,441,816,00 Actual C1P Reserve balance.

Budget Revisions 2012- 2013 WU Revisions 1 2012 - 2013 BUDGET REVISIONS TO PROPOSED BUDGET

BABFUND 2012-13 REVISED ACCOUNT TITLE INCREASE DECREASE BUDGET AMOUNT DETAIL 201b. BAB- CIP Reserve $ 21,682,418 $288,261 $21,970,679 Actual FRC CIP balance Encumbrance of actual contract balances as of June 30, 2012. Contracted CIP Projects $11,349,072.00 " $432,003.00 $10,917,069.00 Decrease due to additional Contract Payments.

Budget Revisions 2012-2013 FRC & Bond Revisions 1 L DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute- Conserve It!"

MANAGER'S REPORT No. 13-3

August 21, 2012

Re: Grant of Easement from the County ofKaua'i, a political subdivision of the State of Hawaii, and Pa'anau Village Partners LP, a Hawai'i limited partnership for the Water Meter Plans for Lot 4-B Pa'anau Village; TMK (4) 2-6-15:020, Koloa, Kauai, Hawaii

RECOMMENDATION: It is recommended that the Board conditionally approve the Grant of Easement document whereby, the County ofKaua'i, a political subdivision of the State of Hawaii, and Pa'anau Village Partners LP, a Hawai'i limited partnership, grant to the Board of Water Supply, County ofKauai, perpetual easement, Easement "W-5", on, over and under that cettain parcels of land located in TMK: ( 4) 2-6-15:020, Koloa, Kauai, Hawaii, for the reading of water meters and for the construction, installation, re-installation, maintenance, repair and removal of a potable water pipelines and related meters, valves, and other associated waterworks facilities improvements and appurtenances, together with the right of ingress and egress at any time to and from the said easement area with or without vehicles or other equipment as the Department of Water shall deem necessary for the proper operation of its water system for the Water Meter Plans for Pa'anau Village; TMK (4) 2-6-15:020, Koloa, Kauai, Hawaii.

Further, Board approval is specifically requested of the indemnification provision in this agreement, wherein the Board agrees to indemnify and hold harmless the Grantee 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.

The conditional approval by the Board will be contingent on the County's execution of the easement document. The County Attorney's office will request that the grant of easement be placed on the County Council's August 22,2012 agenda for approval and execution. The Pa'anau Village project will provide fifty muti-family affordable units on the County owned parcel. The conditional approval by the Board will help to allow the affordable housing project to open sooner.

Respectfully submitted, l4~ Keith Aoki, Engineer Engineering Division

CONf\URRE···.. ~: ~ 10 ... [;\ff/2 .. ~?'-- David R. Craddick, P.E., C.E.M. Manager and Chief Engineer

Attachment: Pa' an au Easement documents

Mgrrpt!August 20JVIJ-3 Grant of Easement Pa'anau {&-21-12}'mjg

---4398 Pua Loke Street, lihu'e, Kaua'i, Hawai'i or P. 0. 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 LAND COURT SYSTEM REGULAR SYSTEM

After Recordation Return By MAIL [XX] Pickup [ ] TO:

DEPARTMENT OF WATER POST OFFICE BOX 1706 LIHUE, KAUAI. HAWAII 96766

CPR-UID #811/T-14140

GRANT OF EASEMENT for TM K: (4) ..L-_§_-__Q_ _1_ _Q__:__Q_ __L __Q_;

THIS INDENTURE made this ____ day of ______, by and between the County of Kauai ("COUNTY"), a political subdivision of the State of Hawaii, whose address is 4444 Rice Street, Suite 280, Lihue, Kauai, Hawaii, 96766 and Paanau Village Partners LP ("PVP"), a Hawaii limited partnership, whose address is 2955 Aukele Street, Suite 203, Lihue, Kauai, Hawaii, 96766 (collectively referred to as ("GRANTOR") and the BOARD OF WATER SUPPLY, COUNTY OF KAUAI, whose mailing address is Post Office Box 1706, Lihue, Kauai, Hawaii, 96766 (hereafter "GRANTEE");

WHEREAS COUNTY entered into a ground lease with PVP, dated December 16, 2010, covering certain lands in TMK (4) 2-6-015:020 which was recorded in the Bureau of Conveyances as Document No. 2010-201653 (the "Ground Lease") and subsequently amended by an Amendment to Ground Lease, dated September 30, 2011, and recorded in the Bureau of Conveyances as Document No. 2011-175290; and

WHEREAS the Ground Lease, as amended, requires the County, as lessor, to join in grants of easement by PVP, as lessee, which are reasonably necessary for the development of the property;

NOW Therefore,

CPR-UID #311-Water Meter for lot 4-8 Paanau Village Partners LP That in consideration of the sum of one dollar ($1.00) paid by the GRANTEE to the GRANTOR, the receipt of which is acknowledged, and the covenants contained in this grant of easement to be performed by the GRANTEE, the GRANTOR does hereby grant, bargain, sell and convey to the GRANTEE an easement in perpetuity on, over, and under that certain parcel of land lying and being at Koloa District, County of Kauai, State of Hawaii, Tax Map Key No. (4) 2-6-015:020, Project Name: Water Meter Plans for Lot 4-B Paanau Village, the said area being more particularly described in Exhibit "A", which is attached and incorporated by reference into this grant of easement (hereafter "easement area"). This easement is granted for the reading of water meters and for the construction, installation, re installation, maintenance, repair, and removal of potable water pipelines and related meters, valves, and other associated waterworks facility improvements and appurtenances. The GRANTEE is further allowed the right of ingress and egress at any time to, from, and through the easement area, with or without vehicles or equipment, as the GRANTEE deems necessary for the proper operation of its water system.

TO HAVE AND TO HOLD the same unto the GRANTEE forever; provided that should the GRANTEE cease to use the easement area for the purposes described for a continuous period of two (2) calendar years, this easement shall terminate and the interest granted shall immediately and without the GRANTOR's re-entry revert to the GRANTOR. In such an event, this easement shall cease to exist by operation of the GRANTEE's non-use, without any necessary action on the GRANTOR's part.

AND IN FURTHER CONSIDERATION of the rights granted to the GRANTEE the benefits accruing to the GRANTOR under this easement, the GRANTOR and GRANTEE further covenant, agree, and promise as follows:

1. That should the GRANTEE disturb in any way the ground which is the subject of the easement area, the

GRANTEE shall at its own expen~e restore the ground to its original condition to the extent that such restoration is reasonable;

2. That the GRANTEE shall indemnify and save the GRANTOR harmless from and against all damage to the GRANTOR's property and all liability for injury to or the death of persons when such damage, injury, or death is caused by the negligence of the GRANTEE, its officers, agents and employees while using the easement area;

3. That the GRANTEE shall not assign its rights under this easement without the prior written consent of the GRANTOR; provided that the GRANTEE may assign its rights to a successor of the GRANTEE duly created by law;

CPR-UID #811-Water Meter for lot 4-B Paanau Village Partners LP 2 4. That should the GRANTOR's development plans require that the easement area and/or waterworks facility improvements within, on, or under the easement area be re-located, the GRANTOR will, at the GRANTOR's own expense and pursuant to the GRANTEE's instructions and specifications, re-locate the affected easement area and waterworks facility improvements and appurtenances without interruption of the GRANTEE's services;

5. That the GRANTOR shall at no time erect any building foundation of any kind below the surface of the land which is the subject of the easement area or any building or structure of any kind (other than roads, sidewalks, curbs or similar appurtenances) on the surface of the land which is the subject of the easement area unless the GRANTOR receives the prior written consent of the GRANTEE.

Only lawn grass shall be planted within three (3) feet of all meter boxes, fire hydrants, and other waterworks facility improvements and appurtenances. No trees with aggressive root systems shall be planted within twenty (20) feet of all meter boxes, fire hydrants, and other waterworks facility improvements and appurtenances.

This Paragraph No. 5, though, shall not prevent the GRANTOR from crossing over, constructing, and maintaining roadways within the easement area or laying, operating, maintaining, repairing, or removing conduits and drains which do not interfere with the exercise of the GRANTEE's rights under this easement; and

6. That the GRANTOR covenants with the GRANTEE that the GRANTOR has good right and title to grant this easement, and that the GRANTOR will warrant and defend the same unto the GRANTEE against the claims and demands of all persons.

When used within this document the term "GRANTOR" shall mean the singular and plural, masculine and feminine, and natural persons, trustees, corporations, partnerships, limited partnerships, sole proprietorships and other forms of business entities. The term shall also mean the GRANTOR's or GRANTORS' estates, heirs, personal representatives, successors, successors-in-trust and assigns.

IT IS FURTHER MUTUALLY AGREED that the terms of this easement shall be binding upon and inure to the benefit of all the parties to this document and that all covenants and obligations undertaken by two or more persons shall be deemed to be joint and several unless a contrary intention is clearly expressed in this document.

This Agreement may be executed in counterparts. Each counterpart shall be executed by one or more parties hereinbefore named and the several counterparts shall constitute one instrument to the same effect as though the signatures of all the parties are upon the same document.

CPR-UID #S11-Water Meter for lot4-B Paanau Village Partners LP 3 OWNER: OWNER: PAANAU VILLAGE PARTNERS, LP COUNTY OF KAUAI a Hawaii Limited Partnership

By its General Partner: KAUAI HOUSING DEVELOPMENT CORPORATION, a Hawai'i Non-Profit Corporation

By: ______By: Wallace G. Rezentes Jr. Its: ------Its: Director of Finance (Please type or stamp name above.)

OWNER:

By: Ricky Watanabe Its: County Clerk

GRANTOR

APPROVED: APPROVED AS TO FORM AND LEGALITY:

Manager and Chief Engineer Deputy County Attorney Department of Water, County of Kauai

ACCEPTED: BOARD OF WATER SUPPLY, COUNTY OF KAUAI

By: ______

Its: ------

GRANTEE

CPR-UID #811-Water Meter for Lot 4-8 Paanau Village Partners lP 4 ' STATE OF HAWAII ) ) ss. COUNTY OF KAUAI )

On this ____ day of______, before me appeared ______to me known, who, being by me duly sworn, did say that ___

is the ------of _ _jPcca,a21n"'a"'uLV"-i"'ll"'ag,.,e"-"P-"a'-'rt'-'n,.er'-'s'-'L"'P_____ , a Hawaii Limited Partnership and by its General Partner, Kauai Housing Development Corporation , a Hawaii Non- Profit Corporation and that said instrument was signed on behalf of said company and _____ acknowledged said instrument to be the free act and deed of said ___..H"'a'-'w"'a"'i'-'i L"'i'-'m"'it.,e,.d_,_P_,a,_rt"'n"'e"'rs,h.!!.ip"-----

Notary Public, State of Hawaii Name of Notary: ______My Commission expires: ______

CPR-UIO 1ffl11-Water Meter for lot 4-B Paanau V11!age Partners LP 5 STATE OF HAWAII ) ) ss. COUNTY OF KAUAI )

On this ____ day of______, 20_, before me appeared Wallace G. Rezentes Jr. to me personally known, who, being by me duly sworn, did say that said officer is the Director of Finance of the County of Kauai , a political subdivision of the State of Hawaii, and that the foregoing instrument was signed on behalf of the COUNTY OF KAUAI., and said

___W=a,ll 3a,ce"-"'G"-. -'-'R,e,.,z>

Notary Public, State of Hawaii

Name of Notary: ______My Commission expires: ______

CPR-UID #811-Water Meter for lot 4-B Paanau Village Partners LP 6 STATE OF HAWAII ) ) ss. COUNTY OF KAUAI )

On this ____ day of,______, 20 __, before me appeared ___,_,R,ic"'k"-y_,W=a,ta"'n"'a"'b"'e ___ to me personally known, who, being by me duly sworn, did say that said officer is the County Clerk of the County of Kauai , a political subdivision of the State of Hawaii, and that the foregoing instrument was signed on behalf of the COUNTY OF KAUAI, and said _____,R_,i,ck"'yLW,_,_,a,ta"'n""a"'be"----- acknowledged said instrument to be the free act and deed of COUNTY OF KAUAI.

Notary Public, State of Hawaii

Name of Notary: ______My Commission expires: ______

CPR-UID #S11-Water Meter for lot 4-B Paanau Village Partners LP 7 STATE OF HAWAII ) ) ss. COUNTY OF KAUAI )

On this ____ day of,______,, 20 __, before me appeared ______to me personally known, who, being by me duly sworn, did say that said officer is the ______of the BOARD OF WATER SUPPLY, COUNTY OF KAUAI, and that the foregoing instrument was signed on behalf of said Department, and said officer acknowledged said instrument to be the free act and deed of said Department, and that said Department has no corporate seal.

Notary Public, State of Hawaii

Name of Notary: ______My Commission expires: ______

CPR-UID #811-Water Meter for lot4-B Paanau Village Partners LP 8 EASEMENT W-5

LAND SITUATED AT KOLOA, KAUAI, HAWAII

Being Portion of Lot 4-B Being also Portion of R.P. 6714, L.C. Aw. 7714-B, Apana 2 toM. Kekuaiwa

Beginning at the west corner of this parcel of land, on the east side of Ala Kalanikaumaka, the coordinates of said point of beginning referred to Government Survey Triangulation 'WAHIAWA" being 5,127.72 feet South and 19,930.41 feet East, thence running by azimuths measured clockwise from true South:

1. 199° 47' 10.00 feet along the east side of Ala Kalanikaumaka;

2. 289° 47' 12.00 feet along the remainder of Lot 4-B;

3. 19° 47' 10.00 feet along the remainder of Lot 4-B;

4. 109° 47' 12.00 feet along the remainder of Lot 4-B to the point of beginning and containing ari area of 120 Sq. Ft.

DESCRIPTION PREPARED BY: ESAKI SURVEYING & MAPPING, INC.

w~~da1. zJ~ Lihue, Hawaii Licensed Professional Land Surveyor June 2012 Certificate Number 4596

EXHIBIT"A" Page 1 of 2 LOT S-1

R.P.

tOT 20-A

I ·LOT :20--S

LOT 20

KOLOA ESTATES SIJBDJYJSJOll

OESIGNAliON OF EASEMENT W-5 BEiNG PORTION Of LOT +-B BElNG ALSO PORnON OF R.P. 5714, LC. AW. 7714-B, APANA 2 TO M. KEKUAIWA KOlOA. KAVA!, HAWAII . $~.2:1)-0 1\lX: (~) 2-6-15: :20 Propor~ f«: Daporlrnet~t of water ESAKI SVR'>'E'l1NG & WJ>?iNG, mt. EXPUI(S; APRIL 30. 2lll4 Dote:: July Q, 2012

1610 Ho!eukona Street Job Numb8r: 10-18 CH ESAKI SURVEYING & MAPPING, INC. LiOO&. KO'JOI, H

"Water has no Substitute- Conserve It!"

MANAGER'S REPORT No. 13-4

August 21,2012

Re: Request Board approval for revising Part 2 Section XXIV Resale of Water Rule

RECOMMENDATION: It is recommended that the board modify this portion of the rules to allow what is already occurring in hotels and Condos, but only allow resale in systems that are separate from the fire system.

BACKGROUND: A proposed development is proposing to provide water from the DOW system via a master meter. Not that size of the system matters but it would be about the size of the Princeville water system. Part 2 Section XXIV of the DOW rules and regulations prohibit resale of water. This provision is usually put in to prevent premises with discontinued service from getting service from adjoining premises. It can also prevent the Department from allowing large master metered systems.

It is a fairly normal occurrence outside Hawaii for cities or counties to wholesale water outside its jurisdiction. In our case DOW would be bulk selling water within its jurisdiction. The existing water system has not been built with this concept in mind however there may be cases where it is beneficial to the water department to bulk sell water. There are also cases where there could be some liability.

The benefit to the water system is less employees per mg of water delivered. I'm not sure if this would be similar to the county leasing out the concession at a golf course rather than employees operating but a case may be able to be made for this. There was a Hawaii Supreme Court case on this where they found that the county could not concession out the facility without county employees running it. Money flow is also a concern.

The meter if large enough for fire flow would make the minimum read less accurate than a meter correctly sized for the demand. This would in turn reduce income for low flows.

The current Rules on Part 2 Section XXIV states:

SECTION XXIV· RESALE OF WATER Unless specifically agreed upon, the consumer shall not resell any water received by him from the Department.

Recommended changes on Patt 2 Section XXIV as follows:

SECTION XXIV· RESALE OF WATER Unless specifically agreed Hf39flo by the manager, the consumer shall not resell any water received by him from the Department.

---4398 Pua loke Street, lihu'e, Kaua'f, Hawai'i or P. 0. 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 Manager's Report No. 13-4 Request Board approval for revising Part 2 Section XXIV Resale of \Vater Rule Page 2 of2

R~pe~li~

David R. Craddick, P.E., C.E.M. Manager and Chief Engineer

Mgrrp/August 2012/13-4 Request Board approval for revising Part 2 Section XXIV Resale of Water Rule (8-21-12) mjg DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute- Conserve It!"

MANAGER'S REPORT No. 13-5:

August 21,2012

Re: 2012 Goals for the Manager I Employee Morale

BACKGROUND: The Personnel Department clarified there is no deadline for the Manager's Evaluation for this fiscal year, but from herein after, evaluations should be closed and submitted by June 30'h of every fiscal year.

Employee Morale: Surveys were completed by each division of the Department to determine leadership, job satisfaction, accomplishments, and the Organizational Best Practices which is a part of the Performance Indicators that is currently being practiced.

Attached is a survey for the Board to lly and find out what is important for the Managers duties. The position description has not been updated since 1962. The 1962 position description is attached for your review.

Respe~~~'itR-

David R. Craddick, P.E., C.E.M. Manager and Chief Engineer

Attachment: Goal Measures Board Survey Employee morale 2012 Organizational Best Practices Manager and Chief Engineer Position Description (Board only)

Mgrrpt!August 2012113-5 2012 Goals for the Manager/Emp!oyu Morale (S-21-12)'mjg

---4398 Pua Lake Street, lihu'e, Kaua'i, Hawai'i or P. 0. Box 1706, Uhu'e, HI 96766-5706--- Phone No. (808) 245-5400- Administration FAX No. (808) 246-8628- Engineering/Fiscal/Shop FAX No. {808} 245-5813 Board's Goals for DOW Manager for Year 2012-13 (Goals:mjg)

Status Measure

L Encumber $39 million in BAB 1 or 2 2. Encumber $45 million in BAB July 2012 Q=tity vs Quality

2 Personnel and Accounting

Improve employee morale, employee survey Got new survey by division

3 Standards

Source Water Protection Plan Part year services package (Ms. Shiramizu will report a measurable goal by percentage completion at the Oct 27, 2011 Board Meeting) Break down to Quarterly or Half-year

4 Facilities

Inter agency coordination between DOW, Plarming and DPW for Only HoloHolo plan December 2011 & May Report Semi Annually based on web Mayor's Holo Holo 2020 Plan projectwater related is 2012 postings of what projects are synced EleeleAH. with the Mayor's Holo Holo 2020 Plan

N a thing specific going on with that project.

2012 Goals for the Manager/Employee Morale Goal Measures August 21,2012 Page 1 of3 Board's Goals for DOW Manager for Year 2012-13 (Goals:mjg)

Item# Goal Status Deadline Measure

6 . Performance Indicators

I. Organizational Best Practices Established within the Items 2-6 establishment Chart should include a 75% median 2. Customer Service Complaints/Active Account Depar1ment of Water. due 9/30/2011. compared to other utilities in the U.S. 3. Technical Quality Complaints/Active Account and a 25% median compared to other Should also be First report due by the utilities in the U.S. 4. Customer Service Cost per Active Account established with the October 27, 2011 Board and the Board Meeting as of 5. Unaccounted for Water Loss Community. June 30, 2012. 6. Water Trea1ment Cost!MG produced

Goals from Staff

1 Operations

Continue to support and implement the re-organization of the Deputy Manager William June 2012 Filling by Deparnnent' s Personnel to operations division Eddy working on filling: be used as a measure. Include an organizational chart to represent what 1. Telecom Tech/Scada is currently being done and provide in Mgr. the Board Book.

2. Water Plant Operator II (Working Supervisor)

2 Engineering

Provide additional temporary storage space for files (approximately lO'x 3' Done June30, 2011 Completed area) until new permanent facilities (new office building) are built

3 Special Projects . Due to recent and anticipated staff departure and retirement within the Malcolm has said this December 2011 Reorganization Depar1ment, priority to evaluate and reorganize the current is done and we just

2012 Goals for the Manager/Employee Morale Goal Measures August 21, 2012 Page 2 of3 Board's Goals for DOW Manager for Year 2012-13 (Goals:mjg)

engineering activities and staff structure for the future operations haven't been notified December 2011 Approval of reallocations requested by related to the design and construction of projects within the in writing yet. DPS Department of Water, which include Water Plan 2020 as well as Next Fiscal privately funded projects. In doing so, make it a priority to attract and Retain (creation of positions) retain qualified staff during the reorganization process. Item# Goal Status Deadline Measure

4 Water Resources and Planning

5 Fiscal

IT Implementation & to recruit the Procurement Specialist

2012 Goals for the Manager/Employee Morale Goal Measures August 21, 2012 Page 3 of3 2012 Goals for the Manager Board of Water Supply Survey

The purpose of this survey is to seek the preferences of the Board on specific aspects of the job of the Manager & Chief Engineer. The current job description and several key elements of the job of the Manager are identified. In this survey, you will be asked which of these elements you believe are the most important for the Department at this time.

Job Description Serves as the Chief Executive Officer, responsible to the Board for the effective conduct of the affairs of the Department. Recommends and participates in Board formulation of Department mission, goals, and objectives and related policies. Within that framework plans, organizes, coordinates, controls, and directs the staff, programs, and activities of the Department.

Please read the areas covered by the evaluation and rate each area as to their importance.

Name:

Leadership and Integrity Honesty and integrity in handling the affairs of DOW. Meets problems head-on and takes timely, direct and decisive action to resolve them. Takes initiative and gets results. Inspires confidence and respect with the Board. Stimulates, energizes and mobilizes the organization. Works well with federal agencies with whom we have regulations to meet and loans to repay. Responsive in working with other county agencies. The stamina to withstand the pressures of the job and the resilience to persist until the job is completed.

(low (high importance) importance)

r 1 r 2 r 3 r 4 r 5 r 6 r 7 r 8 r 9 ' 10

Planning Provides visionary and anticipatory direction, grasps the "big picture" in identifying contingencies and formulating plans. Establishes specific direction for the directors for clarifying mission, strategic direction and plans to achieve results. Ensure that goals of the Long Range Plan are achieved. Recognizes change and makes the required modifications. Minimizes crises and pressures through careful planning.

(low (high importance) importance) '1 r2r3r4r5r6r7 r 8 r 9 r 10

2012 Goals for the Manager I Employee 1·forale Board Survey August 21,2012 Page 1 of4 2012 Goals for the Manager Board of Water Supply Survey

Organization and Staffing Anticipates future structural and staffing requirements and plans in advance for their implementation. Ensures that DOW is well organized, coordinated and integrated to achieve results in the most cost- effective fashion. Recruits and develops a high performance team.

(low (high importance) importance) (' (~ (' r r 1 r 2 r 3 r 4 5 6 7 r 8 9 r 10

Performance Management Sets challenging goals and maintains high standards that stretch the performance of self and others. Holds others accountable for results and rewards achievements. Delegates authority and responsibility well.

(low (high importance) importance) r1 r2r·3c4r·5r6r7 r s r 9 r 10

Business Results Provides educational programs to advance the professional, technical, and managerial skills of the membership and staff. Maintains an effective lobbying/governmental affairs program to represent the interest of the Department. Manages the finances of the Department, including the adequate preparation and implementation of annual budgets. Assures compliance with all Department contracts. Successful negotiation of contracts with contractors and other activities.

(low (high importance) importance) (' r r· r1 r2c3r·4 5 6 7 r s r 9 r 10

2012 Goals for the Manager I Employee Morale Board Survey August 21,2012 Page 2 of4 2012 Goals for the Manager Board of Water Supply Survey DOW Relations Ensures that a positive and productive relationship exist between county departments and DOW. Responsive to state and county needs. Issues are quickly and professionally handled.

(low (high importance) importance) c (" r· c· (" r 1 r 2 3 4 5 r 6 7 8 (" 9 ,- 10

Board Relations Ensures adherence to board policies, regulations, and laws. Carries out board directives with very little guidance and follow-up. Provides accurate, timely and useful communication to the board. Works toward ensuring efficient and effective utilization of time and expertise of the board members. Provides assistance and support to the board officers and committees.

(low (high importance) importance) c· c· c· (• c 1 r 2 3 4 c 5 6 7 r 8 c 9 c 10

Communications & Relations with External Groups Provides consistent representation of the Department to external organizations and the general public. Seeks and is open to input and advice from employees and customers. Develops and maintains effective working relationships with legislative and governmental entities.

(low (high importance) ,- importance) c 1 r 2 3 r 7 c 8 c 9 r 10

Please rank each of the below in order of importance from 1-18 with 1 being of highest importance and 18 the lowest in importance 1 I 3 r ]the Depa rtrnent. 2 I iJCJernployees as appropriate.

2012 Goals for the Manager I Employee Morale Board Survey August 21,2012 Page 3 of4 20 12 Goals for the Manager Board of Water Supply Survey 3 I iJ[]ensure legal integrity of the Department. 4 I iJ[]consistent with the objectives of the Department. 5 I 3[ ]establishes administrative policies and procedures for Department functions. 6 I :.:J[ ]establishes the organization structure for the Department. 7 I - - - 3[ ]recruits, hires, and trains staff and administers an effective personnel program which includes position descriptions, performance standards, performance appraisals, and a compensation system. 8 I :.:JCJdevelops and supervises an effective program of employee development. 9 I - ::J[-Jdevelops and conducts an education program to advance the professional/ technical/managerial skills of the employees. 10 I ::J[~~]organizes and conducts a conference every four years which includes programs, exhibits, and other events. 11 I 3[]conducts research necessary to the Department and informs the Board, elected officials, and maintains effective internal and external public relations. 12 ::J[Jserves as spokesman for the Department in conjunction with the Board Chair. 13 3[] maintains an effective government affairs program to represent the interests of Department to Congress and government agencies as appropriate. 14 J 3[:] manages the finances of the association, including the preparation of an annual budget and long- range forecasts of needs.

15 iJ[] assists in planning and coordinating meetings of the Board 16 ::J[]provides periodic reports to the Board along with recommendations. 17 3[]monitors and assists committees of the Board.

18 ::::JC:c )develops and maintains an annual report which is responsive to the needs of the community.

2012 Goals for the Manager I Employee Morale Board Survey August 21,2012 Page 4 of4 KDOW EMPLOYEE SATISFACTION SURVEY - Summary

Tally Sheet - August 2012 Number of Responses per Column in Employee Satisfaction Surveys Received Strongly KDOW Leadership Strongly Agree Agree Neither Disagree Disagree 4 12 17 3 4 40 1 I am a leader in DOW. I am strong competitor in key 7 17 12 2 3 41 2 performance areas.

I have a clear vision 6 15 11 4 4 40 3 of the future.

I have made changes which are positive for 6 16 9 5 3 39 4 DOW. KDOW has made changes which are 3 11 12 4 11 41 5 positive for me. Total 26 71 61 18 25 Strongly Your Job Satisfaction Very Satisfied Satisfied Neither Dissatisfied Dissatisfied

That you receive appropriate recognition for your 5 12 5 4 11 37 1 contributions?

That your work gives you a sense of personal 9 12 7 2 7 37 2 accomplishment?

With your direct 12 7 11 1 4 35 3 supervisor?

With your overall job 6 17 5 6 2 36 4 security?

With the company as 5 13 7 4 7 36 5 a place to work? With your job 6 14 7 4 4 35 6 overall? Total 43 75 42 21 35

Same level of Much more Somewhat more satisfaction as last Somewhat less satisfied satisfied year satisfied Much less satisfied

Compared with a year ago, how would you describe your 4 5 13 5 6 33 overall job satisfaction today? Kauai Department of Water's Organizational Best Practices Scoring Fiscal Year 2012-2013

Long Term Financial Risk Optimum Asset Performance Customer Continuous Department Strategic Plan TOTAL Plan Management Management Measures Involvement Improvement Fiscal 4 3 3 4 4 5 5 4 4 4 4 4 4 5 3 4 4 4 3 3 5 4 4 4 4 4 4 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 5 4 4 3 3 3 2 1 1 1 1 1 1 2 3 4 5 0 0 2 3 2 3 3 2 2

Total Emp: 11 23 27 26 29 28 23 26 182/385 Average% Points out of possible 5 2.1% 2.4% 2.4% 2.6% 2.5% 2.1% 2.4% 47% per category

Long Term Financial Risk Optimum Asset Performance Customer Continuous Department Strategic Plan TOTAL Plan Management Management Measures Involvement Improvement

Engineering 5 5 5 5 5 5 5 3 3 3 3 3 3 3 0 0 2 3 2 2 2 2 2 2 2 2 2 2 3 5 3 3 4 5 4 4 4 3 2 4 5 5 4 5 4 5 4 5 4 4 3 3 3 3 2 3 2 4 3 2 4 3

Total Emp: 9 27 31 28 27 29 33 31 206/315 Average% Points out of possible 5 3.0% 3.4% 3.1% 3.0% 3.2% 3.6% 3.4% 65% per category

Organizational Best Practices FY 12-13 Long Term Financial Risk Optimum Asset Performance Customer Continuous Department Strategic Plan TOTAL Plan Management Management Measures Involvement Improvement

Admin/lnterns 4 4 4 4 4 4 4 3 4 5 3 4 4 3 5 5 3 5 3 3 3 3 5 5 5 3 5 3 2 4 2 3 4 3 3 3 3 5 2 4 2 2 5 5 5 5 5 5 5

Total Emp: 7 25 30 29 27 27 26 23 187/245 Average% Points out of possible 5 3.6% 4.3% 4.1% 3.9% 3.9% 3.7% 3.3% 76% per category

Long Term Financial Risk Optimum Asset Performance Customer Continuous Department Strategic Plan TOTAL Plan Management Management Measures Involvement Improvement

Operations 2 2 2 2 2 2 0 4 3 2 2 2 2 2 3 3 3 3 2 4 3 3 3 3 3 3 4 3 3 3 3 3 2 3 2 4 4 4 4 4 5 3 2 2 2 2 2 2 2 2 2 1 2 0 0 2 3 2 2 1 1 0 0 0 0 0 0 0 4 3 2 2 2 3 2 4 4 3 3 2 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Organizational Best Practices FY 12·13 3 2 2 2 2 2 2 1 1 1 1 1 1 1 3 3 3 3 3 3 3 0 0 0 0 0 0 0 1 1 1 1 2 0 0 0 0 0 4 5 4 4 1 0 4 4 4 3 3 4 3 3 2 3 3 3 3 3 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 4 4 5 3 3 4 0 0 0 0 0 0

Total Emp: 32 64 64 58 55 54 54 45 394/1120 Average% Points out of possible 5 2.1% 2.1% 1.8% 1.7% 1.7% 1.7% 1.4% 35% per category

Organizational Best Practices FY 12-13

DEPARTMENT OF WATER Budget Status Summary June 30, 2012

I. WATER UTILITY FUND Current Month Year to Date Beginning Balance 07/1/2011 $ 16,914,045.74

Add: Revenues $ 3,941,358.58 $ 24,448,213.63 $ 24,448,213.63 TOTAL RESOURCES: $ 41,362,259.37

Less: Expenditures $ 2,343,205.29 $ 22,191,388.89 $ 22,191,388.89 TOTAL EXPENDITURES: $ 22,191,388.89 Ending Balance $ 19,170,870.48

II. FACILITIES RESERVE CHARGE

Beginning Balance 07/1/2011 $ 4,367,931.68

Add: Revenues $ 462,170.18 $ 581,748.50 $ 581,748.50 TOTAL RESOURCES: $ 4,949,680.18

Less: Expenditures $ 1,989,115.00 $ 2,032,018.00 $ 2,032,018.00 TOTAL EXPENDITURES: $ 2,032,018.00 Ending Balance $ 2,917,662.18

III. BOND FUND

Beginning Balance 07/1/2011 $ 401,056.43 Add: Revenues $ $ $ TOTAL RESOURCES: $ 401,056.43

Less: Expenditures $ $ 401,056.43 $ 401,056.43 Ending Balance $

IV. W ATERWORK BUILD AMERICA PROJECT FUND

Beginning Balance 07/1/2011 $ 42,251,093.01

Add: Revenues $ 176,056.92 $ 2,084,421.64 $ 2,084,421.64 TOTAL RESOURCES: $ 44,335,514.65

Less: Expenditures $ 1,229,721.47 $ 11,657,765.99 $ 11,657,765.99 Ending Balance $ 32,677,748.66

TOTAL- ALL FUNDS at June 30, 2012 $ 54,766,281.32 STATEMENT OF REVENUES AND EXPENDITURES WATER UTILITY FUND June 30, 2012

REVENUES:

Cash on hand as of July 1, 2011 $ 16,914,045.74

Add: Revenues To Date $ 24,448,213.63

Sub-Total $ 41,362,259.37

EXPENDITURES:

Less: Expenditures to Date $ 22,191 ,388.89

BALANCE AT THE END OF THE MONTH $ 19,170,870.48

SHORT TERM INVESTMENTS- WATER UTILITY FUND

BANK OF HAWAII

CENTRAL PACIFIC BANK

FIRST HAWAIIAN BANK

T3002008137 0.09000% INT. DUE 09/07/12 $ 1,200,000.00

MERRILL-LYNCH

CUSIP# C313378KS9 0.5200% INT. DUE 04/06/15 $ 1,000,000.00 CUSIP# C313384N70 0.1300% INT. DUE 11/08/12 $ 998,707.22 CUSIP# C313397BEO 0.1520% INT. DUE 01/29/13 $ 999,095.83

SUB-TOTAL FOR PAGE A $ 4,197,803.05

6-2012 WU BUDGET STATUS- Revised Page A SUB-TOTAL FROM PAGE A $ 4,197,803.05 10/31/11 SHORT TERM INVESTMENTS ·WATER REVENUES

MULTI-BANK

CUSIP# 85508VAC3 2.70000% INT. DUE 11/18/13 98,000.00 CUSIP# 06610PAR4 4.50000% INT. DUE 07/27/12 98,000.00 CUSIP# 3136FTWX3 1.15000% INT. DUE 12/28/16 1,000,000.00

UBS

CUSIP# C3136FTDUO 1.12500% INT. DUE 10/26/15 1,997,625.00 CUSIP# C3133EAVGO 2.04000% INT. DUE 04/29/13 1 ,000,111.11 CUSIP# 313396A29 0.10100% INT. DUE 07/30/12 $ 999,750.00 $ 5,193,486.11

TOTAL SHORT-TERM INVESTMENTS. WATER UTILITY $ 9,391,289.16

CASH ON HAND WITH TREASURER· COK 06/30/12 $ 4,438,133.24

CASH ON HAND-BOH Savings 06/30/12 $ 5,300,482.93

CASH ON HAND· FHB Savings 06/30/12 $ 25,825.92

LESS: June Claims Payable $ (990,804.98) June Claims $ (860,590.49) Due to WU fr FRC $ 1 ,989,115.00 Due to FRC $ (306,692.00) Due from BAB $ 8,796.00 Voided Checks $ 448.77 Claims paid in June $ 175,301.99 Due to County-Attorney's Office $ (60.00) Due to BAB from WU $ (375.06)

CASH BALANCE AT THE END OF THE MONTH $ 19,170,870.48

•12 WU BUDGET STATUS- Revised Page B DEPARTMENT OF WATER County of Kaual JULY 1, 2011 TO JUNE 30,2012 June 30, 2012

WATER UTILITY FUND % Budget Elapsed _...;1..:.;00;.;.;;.0..:.;0%;;..' _

BALANCE OF TOTAL BUDGET OVER BUDGETED RECEIPTS TO RECEIPTS FOR TOTAL ACTUAL CASH RECEIPTS: RECEIPTS DATE THE %

i CASH RAI .""'" i $

1 Water Sales i $ 20,714,175.00 • $ 19,942,175.92 $ 2,047,203.49 96% $ 771,QQQ OR

12 Net i $ 111.AAA nn $. - $ - 0% $ 111,999.00

13 Interest Income $ ~~~ nnnnn $ ~Q QAQ Od $ A RA<; dR 17% $ ?ac n1n a~<

4 County ~· $ 925i133.00 $ - 0% I$ 925, 13:3,()0

5 State I 1 Fund $ 1 .<~1 em nn $ 1,A'A d?R A< $ ?Od AAA A1 114% I$ (204.RAA.R1)

5a Other $ - $ r?n :

5b U 1 HcK - BAB ""h

l5c FRC Debt Service . $ 1,98~115.00 I$ 1,989,115.oo $ 1 ,989,115.00 j_ -

l5d Grant, i Is 1?A cnn.nn I$ 1?<; ?A~.d7 $ 1,216.53

TOTAL RI',OIIRr.l'" $ "' '"' '"'i.74 $ ?d LIAR, ?1' "' $ 3,941,358.58 $ 18,834,932.11 RAI • .,,.,,OF TOTAL ACTUAL EXPENDITURES BUDGET OVER DISBURSEMENTS: BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL AMOUNT TO DATE MONTH % EXPENDITURES

Oct1994 I Reimbursement 15 i •-DOW $ 5,326~518.00 $ 4,364,275.16 I$ 371,438.70 82% I$ 000 04?.84

Provision for 16 Accrued Vacation $ 1nn nnn nn $ ? ~~R OR (1 131.00) 2% I$ 97,643.94

@TAL <:AI AI:>IES: '$

NORMAl URES

~ COlli'J]'Y • I:E CHRG $ 925,133.00 $ - 0% $ a?<'" nn

AI >I J{A'IIVt: OFFICE and

.2_1_ Utililie~ $ 210,227.00 $ ?OQ ?OQ 01 $ 18,887.42 100% $ 1,017.97

22 'and i $ 192,000.00 $ 93,817.45 $ 6,734.69 49% $ 98,182.55

Office Equipment • $ 24 1$ 147.~nn no Is <;? """·"0 ; $ 1,239.93 36% 94,831.47 05/19106 i24b Con 461 Four Winds Group 53,500.00 $ 13,250.00 69% $ 24,210.00 MMIS •1&11 ~'$ 6-2012 WU BUDGET STATUS - Revised 3 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL ITEM AMOUNT TO DATE MONTH % EXPENDITURES

(6,000.00) $ (9,000.00) $ (31 ,350.00) 27 Contractual Services $ 899,100.00 $ 223,963.76 $ 90,103.29 25% 628,786.24

Con 521 R. W. Beck Inc. . 27a Financial Management Plan~ $ 8,008.00 $ - 0% $ 8,008.00 ning & Rate Analysis

27b Con 506 R. W. Beck Inc. FRC Study for DOW $ 32,570.00 $ 29,570.00 91% $ 3,000.00

Con 535 Fukunaga & Assoc. 27d WRP 01 FY 05-06, Kauai Water $ 514,000.00 $ 98,540.00 19% $ 415,460.00 Use & Developmnt Plan update USGS Joint Funding Agrmt. 27e Water Monitoring Program for $ 31,350.00 $ - 0% $ 31,350.00 the period 10/1/11-9/30/12

Travel and lncident§ils - 28 Board $ 19,768.00 $ 13,664.85 $ 1,528.22 69% $ 6,103.15

Travel and Incidentals - 29 Staff $ 37,780.00 $ 37,780.00 $ - 100% $ -

30 Collector's Commission $ - $ -

$ 5,400.00 31 Miscellaneous $ 16,000.00 $ 21,400.00 $ - 100% $ - $ 10,000.00 32 Auditing Fee $ +S,GGG.QQ $ - 0% $ 10,000.00

32c Annual Audit $ 66,000.00 $ 66,000.00 100% $ - Contract No. 537 KMH, LLP

33 In-Service Training $ 59,600.00 $ 43,131.58 $ 2,159.69 72% $ 16,468.42

34 Supplies - Office & Eng. $ 38,000.00 $ 38,000.00 $ - 100% $ - $ (5,400.00) 35 Operating Reserve Fund $ 20,000.00 $ 14,622.53 $ 4,926.73 100% $ (22.53)

36 Public Relations $ 86,500.00 $ 49,546.48 99.50 57% $ 36,953.52

36.1 Grant: The Nature Conservanc $ 75,000.00 $ 75,000.00 $ - Con 531 Limtiaco Co, Inc. 36.2 Public Relations Services $ 59,858.80 $ 41,140.30 69% $ 18,718.50

36.3 $ - $ - Computer Support and $ - 37 Supplies $ 84,500.00 $ 44,384.16 $ 2,918.74 53% $ 40,115.84 $ - Microlab Materials and $ - 38 Supplies $ 20,000.00 $ 9,113.97 $ 2,698.34 46% $ 10,886.03 $ - $ 2,658,921.80 $ 1,214,852.64 $ 144,546.55 $ 1,444,069.16

6-2012 WU BUDGET STATUS- Revised 4 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL ITEM AMOUNT TO DATE MONTH % EXPENDITURES OPERATIONS AND MAINTENANCE:

40 Vehicle - Materials & Service $ 107,600.00 $ 109,059.52 $ 4,949.40 101% $ (1,459.52)

41 Vehicle - Fuel $ 168,000.00 $ 157,383.57 $ 14,205.85 94% $ 10,616.43

42 Utilities $ 86,400.00 $ 74,070.20 $ 6,187.40 86% $ 12,329.80

43 Meter Parts $ 8,300.00 $ 1,707.94 21% $ 6,592.06

43a Electrical Parts $ 20,000.00 $ 20,000.00 $ - 100% $ -

44 Miscellaneous $ 5,000.00 $ 509.98 10% $ 4,490.02

44a Misc.- TappinQ Team $ 8,000.00 $ - 0% $ 8,000.00 $ (45,000.00) 44b Misc. - Drought Mitigation $ 126,500.00 $ 64,531.58 $ 470.00 51% $ 16,968.42 $ (100,000.00) 45 Contractual Services $ 200,000.00 $ 3,898.87 $ 89.67 2% $ 96,101.13 Con 540, FluidiQS, LLC, 45a SCADA Maintenance $ 100,000.00 $ 97,322.40 97% $ 2,677.60

47 Materials and Supplies $ 227,000.00 $ 189,257.63 $ 19,231.14 83% $ 37,742.37

48 Collective BarQaininQ Items $ 24,000.00 $ 22,973.08 $ 3,509.82 96% $ 1,026.92

51 Pump Electrical $ 3,000,000.00 $ 3,101,296.41 $ 302,421.71 103% $ (101,296.41

55 Purchase of Water $ 2,248,700.00 $ 1,559,279.23 $ 133,328.04 69% $ 689,420.77

58 Chemicals $ 60,000.00 $ 50,606.58 $ 4,396.83 84% $ 9,393.42

Safe Drinking Water 59 Act Program $ 50,000.00 $ 18,393.80 $ 11,964.87 37% $ 31,606.20 Contract No. 496 10/08 59g MWH Laboratories $ - $ - 0% $ -

TOTAL OPERATIONS: $ 6,294,600.00 $ 5,470,290.79 $ 500,764.73 $ 824,209.21 $ 6,294,500.00 $ 5,470,290.79 $ 500,754.73 $ 824,209.21

INSURANCE AND EMPLOYEE BENEFITS:

60 Insurance and Bonds $ 200,000.00 $ 47,879.00 24% $ 152,121.00

60a Small Claims $ 10,000.00 $ 3,676.28 37% $ 6,323.72 Workmen's Compensation 61 Insurance $ 150,000.00 $ 19,145.61 13% $ 130,854.39

62 Retirement System $ 826,676.00 $ 614,964.60 $ 27,122.45 74% $ 211,711.40

63 FICA Taxes- Employer's $ 407,479.00 $ 293,209.22 $ 12,752.24 72% $ 114,269.78

64 Heallh, Life, & Dental (EUTF) $ 493,780.00 $ 360,864.73 $ 15,145.58 73% $ 132,915.27

12 WU BUDGET STATUS- Revised 5 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL ITEM AMOUNT TO DATE MONTH % EXPENDITURES Health & Life Insurance- 67 Retirees & OPEB $ 1,655,855.00 $ 1,088,885.50 $ 952,752.16 66% $ 566,969.50 41029 EMPLOYEE BENEFITS $ 3,743,790.00 $ 2,428,624.94 $ 1,007,772.43 65% $ 1,315,165.06 TOTAL NORMAL EXPENDITURES: $ 13,622,344.60 $ 9,113,766.37 $ 1,653,073.71 67% $ 4,506,576.43 $ 13,622,344,80 s 9,113,766.37 $ 1,653,073.71 $ 4,508,576.43

DEBT SERVICE REQUIREMENT: SRF Loan Job 97-5 80 Hanapepe River Crossing $ 96,555.50 $ 96,555.50 100% $ - SRF Loan Job 97-6 81 Hanapepe 27" Steel Pipe $ 53,810.09 $ 53,810.09 100% $ - SRF Loan Job 98-33 WK-21 82 Wailua Hmstds Well #3 $ 31,005.96 $ 31,005.96 100% $ - SRF Loan Job 97-2 PLH-31 83 Lihue Steel Tanks 1 & 2 $ 96,692.66 $ 98,692.86 100% $ - SRF Loan Job 98-6 WK-07 84 Ornellas 0.2 MG Tank $ 63,803.49 $ 63,803.49 100% $ - SRF Loan Job 97-11 WK-03 85 16" WIL AlonQ Kuhio Hwv $ 181,669.20 $ 181,669.20 100% $ -

86 DOW Bond 2005 Issue $ 214,950.00 $ 214,950.00 100% $ - DOW Bond 2005 Series, 87 Partial Refund 2001 Series A $ 149,987.50 $ 149,987.50 100% $ - SRF Loan Job 98-2 KP-07 88 KP-0816" W/L on Poipu Rd $ 405,375.85 $ 405,375.85 100% $ - SRF Loan Job WK -42 89 PH I Stable 1.0 MG Tank $ 611,331.29 $ 611,331.29 100% $ - SRF Loan Job KW -27 $ 20,270.97 90 Kaumualii Hwy 12" Main Repl $ 313,502.00 $ 333,772.97 106% $ - SRF Loan Job K -7, L0-13 91 Waha, Wawae & Niho Rds $ 153,883.08 $ 153,883.08 100% $ - DOW Bond 92 Series 2010A $ 2,920,880.64 $ 2,920,880.64 100% $ - FmHa $300,000 @5% 93 20 year Bond $ 18,825.00 $ 18,825.00 100% $ - SRF Loan Job $ 162,415.87 94 Kapilimao 0.5 MG Tank $ 145,847.00 $ 460,186.44 149% $ (151 ,923.57 97.1 DOW2011A 95 Series 2005A(2001A Refnd) $ 440,830.00 $ 440,830.00 $ - DOW Bond 2001A Issue $ (440,830.00) 97 Series 2005A Refunded $ 672,819.00 $ - 0% $ 231,989.00 SRF Loan Job 97-1 98 Kokolau Tunnel Repairs $ 128,168.93 $ 128,168.93 100% $ - SRF Loan Job 96-4 99 Kapilimao Vallev Well $ 69,136.62 $ 69,136.62 100% $ - rounding $ (362.62) Job KW-27 $ (20,270.97) Kapillmao 0.5 MG Tank $ (162,415.67) SRF Loan $ 320,000.00 $ 136,930.34

TOTAL DEBT SERVICE REQ $ 6,649,661.19 $ 6,432,865.42 $ - 97% $ 216,995.77 s 6,649,861.19 $ 6,432,865.42 $ $ 216,995.77 $ - TOTAL SALARIES, NORMAL EXPENDITURES, AND DEBT SERVICE REQUIREMENTS: $ 25,696,723.99 $ 19,913,265.01 $ 2,023,361.41 77% $ 5, 765,456.98 PROOF s 25,698,723.99 $ 19,913,285.01 $ 2,023,361.41 5,785,458.98

6-2012 WU BUDGET STATUS- Revised 6 BALANCE OF TOTAL ACTUAL BUDGET OVER BUDGETED EXPENDITURES EXPENDITURES TOTAL ACTUAL ITEM AMOUNT TO DATE FOR THE MONTH % EXPENDITURES

CAPITAL EXPENDITURES

$ (50,000.00} $ (30,000.00) 101 Capilallmprovemenls $ 435,000.00 $ - 0% 355,000.00

$ (75,000.00) $ (129,471.19) 101b Capital Rehabilitation $ 3,216,244.00 $ - 0% $ 3,011,772.81

Misc. Other Capital $ (68,000.00) 102 Expenditures, OPS $ 550,000.00 $ 354,901.63 $ 49,513.73 74% $ 127,098.37

(Telephone System) $ 110,000.00 103 Office and Engineering $ 621,701.00 $ 180,173.48 $ 6,766.29 29% $ 551,527.52

105 Recordina Meters $ - $ - $ -

$ (109,561.80) $ (55,908.34) $ (52,804.00} $ 128,696.25 106 Vehicles and EQuipment $ 328,000.00 $ 186,027.75 57% $ 52,394.36

$ (2,000,000.00) $ (157,965.00} $ (110,000.00) $ (15,260.00) $ (128,696.25) $ (716.26} $ (16,077.00) $ (118,562.00) $ (5,000,000.00) 106b CIP Reserve Fund $ 7,938,428.20 $ - 0% $ 391,151.69

6-2012 WU BUDGET STATUS- Revised 7 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL TO DATE MONTH % EXPENDITURES

107 Purchase of Meter and $ 160,000.00 $ 50,975.32 $ 3,035.32 32% $ 109,024.68 Meter Boxes

WK-23 Con #259, Job 93-1 Nishimura, Katayama, $ 53,751.00 $ 600.00 $ 53,151.00 I

$ 645.08 $ $ 645.08

$ 118,381.66

$ 4,900.00

KP-01 Con. #355 Okahara $ 6,638.00 $ 0% $ 6,638.00

12,245.67

$ 15,260.00 $ .. · ~4.600.00 $ 79,860.00

Con 397 PAREN, Inc. "FINAL11 KW-14, KW-15 $ 3,150.00 $ Job 02-03 12" WIL Along

Con 401 Control Mfg. Co. Job 94-4 SCADA Systems $ 93,516.54 $ 30,448.51 33% $ 63,068.03

1/14/03 (101b, 106b) Con 403 RM Towill Corp WK-28 Job 02-15 $ 1,700.00 $ 82,637.00 W/L -$$ $ 51' 100.00 ·-·$ 12,290.00 42% $ 17,309.20

12 WU BUDGET STATUS- Revised 8 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL ITEM AMOUNT TO DATE MONTH % "'""' 2112103 _(101b, 106b) 1592 Con 409 Esaki Surveying WK-36 Job 02-16 Ohana $ 1,425.00 1% $ 100,000.00 Anolani & Kuamoo Rds 8 16oo Con:~~ ~~!kiSurvey~~d) .. $ Job 02-26 As-Needed - #DIV/0! $ -

9/03103 (101b) 601 Con 420 Hawaii Pacific Eng, Job 02-08 HE-08 $ - 0% $ 8,326.68 Eleele Twin 0.4 MG Tanks IL

12 WU BUDGET STATUS- Revised 9 RJ 'OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL ITEM AMOUNT TO DATE MONTH % I URES (101b, 106b) 1636 Con 451 Bow Eng & Dev 11 FINAL" PLH-12 Job 05-06 Eiwa, $ 15,577.10 59% $ 10,827.00 Umi, Akahi, Elua, Hardy St. 8" Main 11/16/05 (101b, 106b) ~637 Con 452 Akinaka & Assoc. K-7 Job 05-07 Waha, Niho, $ . I#DIV/01 $ . Wawae Rds Main Repl. 11/16/05 ~101b, 106b) 638 Con 453 Belt Collins HI PLH-30 Job 05-05 Nawili· $ 5,040.00 $ 270.00 20% $ 19,938.00 wili, Niumalu & Kupolo Main (101b) 640 Con 455 Fukunaga & Assoc KW-27 Job 05-04 Kaumualii $ . #DIV/0! $ . Hwy 12" Main Repl, Kekaha 36936 1644 Con 464 Kodani & Assoc. "As-Needed" Eng, Surveying '$ . #DIV/01 $ . & Govt Permit Services 5119/06 (101, 106b) ,645 Con 460 Brown & Caldwell KW-25 Job 05-03 $ 5,775.00 $ - 0% $ 5,775.00 I >0.5 MGTank 06/10/06 (101b) 647 Con 462 Eng Solutions Inc now Kennedy/Jenks Consultant KW-05 KW-20 Job 04-06 $ 13,444.69 $ 780.21 43% $ 17,519.31 Waimea Well A & l«lJ

12 WU BUDGET STATUS· Revised 10 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL ITEM AMOUNT TO DATE MONTH % EXPENDITURES 4/30/2010 693 USGS Joint funding Agrmt. ~t.~lf1~ Water Monitoring Program for the $ 7,650.00 $ 7,650.00 100% $ - Pertod 10/1/09 to 3/31/10 & Y10/1/10-9/30/11 Con 532, Allied Machinery Corp 694 (106) GS-2010-5, One (1) Com- $ - #DIV/0! $ - pact Excavator and Equipment Trailer 3/24/2011 687 Con 507, Koga Engineering & "FINAL" Construction, Job 02-03, KW-14 $ 817,259.94 $ 661,966.00 $ (8,796.00) 81% $ 155,293.94 12" WIL Kaumualll Hwy, Waimea

XXX Install Electrical Saving Device ~~ $ - 0% $ 800,000.00

9/1/2011 Con 538, Esakl Surveying &Map- 694 ping, Inc. Job 11-05, As Needed $ 30,000.00 $ - 0% $ 30,000.00 Surveying Services

695 $ - #DIV/01 $ -

9/22/2011 Con 546, SSFM International, Inc 696 Job 11-01, As Needed Construe- $ 50,000.00 $ - 0% $ 50,000.00 tion Management Services 11/23/11 BOD Con _, 697 Job 02-15, WK-28; Wailua Hse- $ 5,000,000.00 $ - 0% $ 5,000,000.00 Its Main Replacement Con -' Kauai Habitat for Humanity Over 698 Sizing ML Ext-Eleele Luna Subd $ 118,562.00 $ 107,096.65 $ 107,096.65 90% $ 11,465.35

Con 555, Lyon Associates Job 11-10, K-18; 8-lnch Main $ 75,000.00 699 Replacement, Halewi!i Rd, $ 16,077.00 $ - 0% $ 91,077.00 Kalaheo 9/2212011 Con 545, AECOM Techlncal Svc 700 Job 11-11, J-17, PLH-42 $ 129,471.19 $ 53,235.26 $ 8,839.49 41% $ 76,235.93 Water Treatment Facilities Con 549, Beylik Dr1111ng & Pump Job 11-14, Puhl Well #4, Trublne 701 Pump Assembly Replacement $ 68,000.00 $ 18,075.00 27% $ 49,925.00

Con 539, Mears Group, Inc. PLH-03, Kahiti Directionally 702 Drilled Horizontal Well $ 2,000,000.00 $ 71,310.00 4% $ 1,928,690.00

Con 541, Cutter Chrysler Jeep Dodge of PC, 703 (1) 4WD Crew Cab Pickup Truck $ 55,908.34 $ 55,908.34 100% $ - (1) 1/2Ton Ext. Cab Pickup Truck Con 547, Inter Pacific Motors, Inc (1) 4WD Cargo Van 704 $ 52,804.00 $ - 0% $ 52,804.00

Con 552, Badger Meter, Inc.

12 WU BUDGET STATUS- Revised 11 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL ITEM AMOUNT TO DATE MONTH % EXPENDITURES Drive by Accoustlc Leak Noise 706 Logging System $ 45,000.00 $ - 0% $ 45,000.00

Con 553, Esakl Surveying & Map Job 12~1; H-05, Weke, Anae, 707 Mahimahl and Hee Road; $ 157,965.00 $ 18,470.56 $ 18,470.56 12% $ 139.494.44 6n and 8" Ma!n replacement Con 554, Servco Pacific, Inc. (2) 4WD Vehicles and FINAL 708 (2) 2WD SUV Vehicles $ 109,561.80 $ 109,561.80 $ 82,874.47 100% $ -

TOTAL CAPITAL EXPENDITURES: $ 17,584,421.75 $ 2,278,123.88 $ 319,823.88 $ 15,306,297.87 $ 17,584,421.75 $ 2,278,123.88 $ 319,823.88 $ 15,306,297.87 TOTAL SALARIES, NORMAL - EXPENDITURES, DEBT ' ' ' REQUIREMENTS AND CAPITAL EXPENDITURES: $ 43,283,145.74 $ 22,191,388.89 $ 2,343,205.29 51% $ 21,091,756.85

12 WU BUDGET STATUS- Revised 12 DEPARTMENT OF WATER County of Kauai STATE APPROPRIATIONS JULY 1, 2009 TO JUNE 30, 2010 June 30, 2012

% Budget Elapsed 100.00%

BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE ACTUAL ITEM AMOUNT TO DATE MONTH % EXPENDITURES 12/27/02 Contract #50153 "FINAL 11 ->;'"''"~ ,.rq""""'-',, ,,,,.,,,~~~~'200•00' ___ ,--- Kodani & Associates, Inc. $ 4,200.00 $ 4,200.00 ~ >;;'"t'>"~{t"'--1..,..,_=-,l'=.;:;~ 100% $ - Job 02-05 Ulaula Rd (Eleele) 12" W/L; 8" PRV, 400 gpm BP & 6" MIL Lihue Water System $ - $ - $ - - $ - TOTAL: $ 4,200.00 $ 4,200.00 $ 4,200.00 100% $ -

6-2012WU BUDGET STATUS- Revised 13 STATEMENT OF REVENUES AND EXPENDITURES FACILITIES RESERVE CHARGE FUND June 30, 2012

REVENUES:

Cash on hand as of July 1, 2011 $ 4,367,931.68

Add: Revenues To Date $ 581,748.50

Sub-Total $ 4,949,680.18

EXPENDITURES:

Less: Expendilures To Date $ 2,032,018.00

BALANCE AT THE END OF THE MONTH $ 2,917,662.18

SHORT TERM INVESTMENTS·FRC BANK OF HAWAII

CUSIP# $

CENTRAL PACIFIC BANK

CUSIP# $

FIRST HAWAIIAN BANK

CUSIP# T30020174 0.10000% INT. DUE 02/15113 $ 500,000.00 CUSIP#

MERRILL LYNCH

CUSIP# 313384FB7 0.14200% INT. DUE 09/14/12 $ 499,290.28

MULTI-BANK

CUSIP# 402194CU6 2.50000% INT. DUE 12/23113 $ 240,000.00 CUSIP# 70455AAG5 2.30000% INT. DUE 12/31/12 $ 245,000.00 CUSIP# 36160VCH2 5.00000% INT. DUE 08106113 $ 97,000.00 CUSIP# 89214PAJ8 5.00000% INT. DUE 08/13113 $ 97,000.00 CUSIP# 92705SAE3 1.50000% INT. DUE 06107/13 $ 248,000.00 CUSIP# 70153RGT9 1.50000% INT. DUE 09109113 $ 249,000.00 CUSIP# 02004MN74 1.50000% INT. DUE 09/03113 $ 248,000.00

TDI {CSA)

CUSIP#

VINING SPARKS

TOTAL SHORT-TERM INVESTMENTS· FRC $ 2,423,290.28

CASH ON WITH TREASURER· COK 06130/12 $ 178,272.09 Claims Payable Paid CASH ON HAND- FHB Savings (30-288435) 06/30112 $ 2,305,214.81 Due from BAB Bond Fund Less: CLAIMS FOR JUNE 2012 $ (1 ,989, 115.00) $ 494,371.90

CASH BALANCE AT THE END OF THE MONTH $ 2,917,662.18

6-2012 FRC BUDGET STATUS Page A DEPARTMENT OF WATER County of Kauai

JULY 1, 2011 TO JUNE 30, 2012 June 30, 2012

FACILITIES RESERVE CHARGE % Budget Elapsed _ _..;1.;..00;.;..0;;.;0;.;.%'--

BALANCE OF ACTUAL BUDGET OVER BUDGETED RECEIPTS TO RECEIPTS FOR ACTUAL CASH RECEIPTS RECEIPTS DATE THE MONTH % RECEIPTS

BEGINNING CASH BALANCE $ 4,367,931.68 $ - $ . $ 4,367,931.68

(FRC Refunds) $ - 4a Facilities Reserve Charge $ 504,000.00 $ 547,100.00 $ 151,800.00 109% $ (43,1 00.00)

Sa Interest Earned $ 43,750.00 $ 34,648.50 $ 3,678.18 79% $ 9,101.50

5b BABSubsidy $ 306,692.00 $ 306,692.00 0% $ 306,692.00

TOTAL RESOURCES $ 5,222,373.68 $ 581,748.50 $ 462,170.18 11% $ 4,640,625.18

BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL CAPITAL EXPENDITURES AMOUNT TO DATE MONTH % EXPENDITURES

301 FRCCIP $ 500,000.00 $ - $ - 0% $ 500,000.00

$ 125,000.00 301b FRC Fund Balance $ 2,170,461.48 $ - 0% $ 2,295,461.48

301c FRC Debt Service $. 1,989,115.00 $ 1,989,115.00 $ 1,989,115.00 100% $ -

10/12/98 302 Contract #322 $ - GMP Assoc. Inc. Job 87-1 $ 2,050.00 $ . $ - 0% $ 2,050.00 Poipu Storage Tank 08/01/99 304 WK-21 Contract# 345 Fukunaga & Assoc. $ 10,500.00 $ - $ - 0% $ 10,500.00 Job 98-33 Wailua Well 3 6/28/04 (301' 301 b) L0-04 Con #436 Fukunaga 314 & Assoc Inc Job 02-02 $ . $ - Omao 0.5 MG Tank 3/8/06 (301, 301b) 318 Con 457 Kodani & Assoc Inc $ (125,000.00) H-8 HW-12 Job 05-02 Drill & $ 285,340.00 $ - 0% $ 160,340.00 TestWainiha Well No.4

$ . $ -

12 FRC BUDGET STATUS Page 1 BALANCE OF TOTAL ACTUAL BUDGET OVER BUDGETED EXPENDITURES EXPENDITURES TOTAL ACTUAL CAPITAL EXPENDITURES AMOUNT TO DATE FOR THE MONTH % EXPENDITURES 1/17/2007 (301) 321 Con 471 PORTech Eng. "FINAL" WK-23 Job 93-1 Wailua $ 28,187.00 $ 21,009.70 75% $ 7,177.30 250,000 MG Tank Survey 7/19/07 (301, 301b) 322 Con 475 TOMCO Corp ''FINAL" A-11 Pump,Conlrols, Pmp Stn $ 72,294.00 $ - 0% $ 72,294.00 & Pipeline-Anahola Well# 03/31/08 (301, 301b) Con 488 HDR Engineering 324 WK-39 Kapaa Hmstds Well $ 138,843.30 $ 21,893.30 16% $ 116,950.00 No.4 Drill & Test 7/2/2008 ( 301 ) Con 492 Earthworks Pacific 325 Wl<-42 Phase II Offsite "FINAL" Waterline on Kaapuni Road $ 25,582.90 $ - 0% $ 25,582.90 for Stable Tank

$ - $ - $ -

TOTAL EXPENDITURES $ 5,222,373.68 $ 2,032,018.00 $ 1,989,115.00 $ 3,190,355.68

Page 2 6-2012 FRC BUDGET STATUS STATEMENT OF REVENUES AND EXPENDITURES BOND FUND June 30, 2012

REVENUES:

Cash on hand as of July 1, 2011 $ 401,056.43

Add: Revenues To Date $

Sub-Total $ 401,056.43

EXPENDITURES:

Less: Expenditures To Date $ 401,056.43

BALANCE AT THE END OF THE MONTH $

SHORT TERM INVESTMENTS -BOND

BANK OF HAWAII

FIRST HAWAIIAN BANK

CUSIP# $

TOTAL SHORT-TERM INVESTMENTS- BOND $

CASH ON HAND WITH TREASURER- COK $

LESS CLAIMS PAYABLE ON $ $

BALANCE AT THE END OF THE MONTH $

0.00

6-2012 BOND BUDGET STATUS Page A DEPARTMENT OF WATER County of Kaual STATUS OF THE BUDGET JULY 1, 2011 TO JUNE 30, 2012 June 30, 2012

BOND FUND % Budget Elapsed _ _:.10:..:0;:;.0:..:0;.;%:..• _

BALANCE OF TOTAL ACTUAL BUDGET OVER BUDGETED RECEIPTS TO RECEIPTS FOR TOTAL ACTUAL CASH RECEIPTS: RECEIPTS DATE THE MONTH % RECEIPTS

BEGINNING CASH BALANCE $ 401,056.43 $ - $ - $ 401,056.43

$ - $ - $ - 0% $ -

TOTAL RESOURCES $ 401,056.43 $ - $ - 0% $ 401,056.43 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL CAPITAL EXPENDITURES: AMOUNT TO DATE MONTH % EXPENDITURES

201 Bond- CIP $ - $ - $ - $ -

Con 518, Unlimited Builders, LLC Job 02-02, 326 Piwai 677" 0.5 MG Storage Tank & Connect- "FINAL" ing Pipeline, Lawai (part BAB) $ 401,056.43 $ 401,056.43 100% $ -

$ - $ - - 0% $ -

$ - $ - $ - 0% $ -

TOTAL EXPENDITURES $ 401,056.43 $ 401,056.43 $ - 100% $ -

6-2012 BOND BUDGET STATUS Page 1 STATEMENT OF REVENUES AND EXPENDITURES BOND- BAB FUND June 30, 2012

REVENUES:

Cash on hand as of July 1, 2011 $ 42,251,093.01

Add: Revenues To Date $ 2,084,421.64

Sub-Total $ 44,335,514.65

EXPENDITURES:

Less: Expenditures To Date $ 11,657,765.99

BALANCE AT THE END OF THE MONTH $ 32,677,748.66

SHORT TERM INVESTMENTS -BOND

BANK OF HAWAII

FIRST HAWAIIAN BANK

CUSIP# 1062140 1.2860% INT. DUE 10/31/13 $ 30,000,000.00

TOTAL SHORT-TERM INVESTMENTS- BOND $ 30,000,000.00

CASH ON HAND WITH TREASURER- COK 06/30/12 1,037,405.97

BAB Bond Interest Earned with Bond Company 2,084,421.64 Due to W/U - BAB Due to BAB -fr WU 375.06 DuetoWU (8,796.00) Claims paid in JUNE 785,267.46 Claims for June 2012 (188,910.00) LESS CLAIMS FOR JUNE 2012 06/30/12 (1,032,015.47) $ 2,677,748.66

BALANCE AT THE END OF THE MONTH $ 32,677' 7 48.66

6-2012 BAB BUDGET STATUS revised Page A DEPARTMENT OF WATER County of Kaual STATUS OF THE BUDGET JULY1,2011 TOJUNE30,2012 June 30, 2012

BUILD AMERICA BONDS {BAB ' ) . FUND %Bd• u go tEiapsde 100 00%.

BALANCE OF TOTAL ACTUAL BUDGET OVER BUDGETED RECEIPTS TO RECEIPTS FOR TOTAL ACTUAL CASH RECEIPTS: RECEIPTS DATE THE MONTH % RECEIPTS

BEGINNING CASH BALANCE $ 42,251,093.01 $ $ $ 42,251,093.01

Bond Proceeds $ . $ $ . 0% $ . Interest Income $ $ 2,084,421.64 $ 176,056.92 $ (2,084,421.64)

TOTAL RESOURCES $ 42 251 093.01 $ 2 084 421.64 $ 176 056.92 5% $ 40 166 671.37 BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER BUDGETED EXPENDITURES FOR THE TOTAL ACTUAL CAPITAL EXPENDITURES: AMOUNT TO DATE MONTH % EXPENDITURES

(3,472.00) (16,478.72) (3,255.23) (13,498.00) $ (175,000.00) $ (94,222.00) $ (247,087.00) $ (255,667 .97) $ (346,900.00) $ (100,540.00) $ (121,000.00) $ (49,500,00) $ (201 ,500.00) $ (32,430.00) $ (42,760.82) $ (115,500.00) $ (2,500,000.00) $ (60,000.00) $ (8,796.00) $ 1,276,268.06 $ (95,425.00) $ 8,028.00 201-01 BOND- BAS, CJP $ 22,511,355.89 $ 0% $ 19,312,619.21

201-01 BOND- BAS, CJP $ .

5/11/2010 CON 513 218 Jennings Pacific, LLC Job No. 02-18, WK- 32 $ 966,251.51 $ 966,194.51 100% $ 57.00 Kaoaa Hmstds Pine Reo! 5/11110 CON 514 219 Earthworks Pacific Job No. 04-02, WK-14, $ 615,642.01 $ 476,365.60 77% s 139,276.41 Plpellne Reo! for ViVIan hts 6130/10 CON 516 220 Unlimited Bullders, LLC Job No. 03-02, HW-02, $ 2,011,069.79 $ 348,437.12 $ 125,309.82 17% $ 1,662,632.67 Walnlha Booster PumO Stn 8/11109 Con 504 684 Goodfellow Bros., Inc. "FINAL" Job 05-01 KW-16 Waimea $ 112,544.24 $ 112,524.38 100% s 19.86 Main ReoJacement 12/18/09 Con 507 $ 8,796.00 687 Koga Engineering & Cons!. $ (1 ,276,268.06) "FINAL" Job02-D3, KW-1412~WL $ 1,276,268.06 $ 8,796.00 $ 8,796.00 1% $ Waimea Canvon Drive 9130/10 Con 520 (201-01) Fukunaga & Associates 221 Job# 10-01, Anl-Ota $ 665,360.00 $ 331,800.00 50% $ 333,560.00 Pioe!ine RePI ~Anini RD 9130/10 Con 519 (201-01) Park Engineering 222 Job# 10-02, Upslzlng $ 14,102.70 $ 0% $ 14,102.70 of the Kaumual!! HwV: 16D

TOTAL EXPENDITURES $ 23 706,385.46 $ 2,244,117.61 $ 134 105.82 9% $ 21462 267.85

6-2012 BAB BUDGET STATUS revised Page 1 DEPARTMENT OF WATER County of Kauai STATUS OF THE BUDGET JULY 1, 2011 TO JUNE 30,2012 June 30, 2012

BUILD AMERICA BONDS {BASs) ·FUND % Budget Elapsed __1.;.;0;.;;0.;.;.0;.;;0..;.%;.__

BALANCE OF TOTAL ACTUAL EXPENDITURES BUDGET OVER EXPENDITURES FOR THE TOTAL ACTUAL CAPITAL EXPENDITURES: BUDGETED AMOUNT TO DATE MONTH % EXPENDITURES 10/31/10 Con 523 (201-01) $ 3,472.00 223 BCP Constr. Of Hawaii $ 13,498.00 Job 06-06, P:H-25 Eiwa, $ 2,027,665.69 $ 1,837,108.24 91% $ 207,527.45 Uml, Akahi .. 8" ML Repl 10/31/10 Con 524 (201-01) Koga Eng. & Constr., Inc. $ 346,900.00 224 Job 02-16, WP 2020 Proj WK $ 1,045,800.00 $ 495,615.57 $ 245,931.73 47% $ 897,084.43 36, Pipeline Rep! along WaHua Chana, Anolanl & Kuamoo Rds. Con 405 3rd n 4th Amm Kodani & Associates, Inc. 225 Job 02-19, KW-12 $ 13,540.00 $ 6,170.00 46% $ 7,370.00 Waipouli Main Repl Wailua-Kapaa Con 525 KW-20 R. Electric $ 16,478.72 227 Waimea Well A Renovations $ 60,000.00 $ 308,235.45 514% $ 297,296.62 $ 529,053.35

Con# 518 (L0-04) Unlimited Builders, LLC 11 FINAL" 326 Job# 02-02, Piiwai 677" $ 725,382.16 $ 710,152.17 98% $ 15,229.99 0.5MG Storage Tank and Connecting Pipeline • Lawai 6/28/11 Con 409 592 Esaki Surveying & Map- ping, Inc.; Job 02-16, WK- $ 100,000.00 $ 34,242.40 $ 65,757.60 36, P/L replace· Wailua Con 529 (201-01) Oceanic Company, Inc. $ 175,000.00 230 Job 02-08, HE-08 $ 1,718,184.96 $ 654,054.56 $ 16,960.79 38% $ 1 ,239,130.40 Rehabilitation of Eleele Twin 0.4 MG Steel Tanks Con 440 Kodani & Associates, Inc. $ 201,500.00 621 Kilauea 1.0 MG Tank and $ 88,325.00 $ 52,850.00 $ 236,975.00 Pipeline, Ph I (fr W/U)

Con 436 Fukunaga & Associates 314 Job 02-02 (L0-04) $ 62,996.00 $ 22,460.00 $ 40,536.00 Omao 0.5 MG Tank (fr FRC) SUB· TOTAL $ 7,127,795.88 $ 4,120,888.39 $ 262,892.52 $ 3,006,907.49 DEPARTMENT OF WATER County of Kaual STATUS OF THE BUDGET JULY 1, 2011 TO JUNE 30, 2012 June 30, 2012

BUILD AMERICA BONDS (BASs)· FUND % Budget Elapsed _ ___;1..;.0..;.0.;.;.0.:..0';.;.% __

TOTAL BALANCE OF ACTUAL EXPENDITURE BUDGET OVER BUDGETED EXPENDITURE S FOR THE TOTAL ACTUAL CAPITAL EXPENDITURES: AMOUNT STO DATE MONTH % EXPENDITURES Con 530 (201·01) Earthworks Pacific $ 255,667.97 231 Job 02-19, WK-12 $ 2,045,000.00 $ 1,628,050.89 $ 113,775.84 80% $ 672,617.08 Waipouli Main Replacement

Con 427 (201·01) Belt Collins Hawaii, Ltd. 232 Job 02~14, Kapaa Hmstds $ 74,965.54 $ 44,327.74 59% $ 30,637.80 0.5 MG Storage Tank & Kaoahi 1.0 MG Storg Tank Con 427 (201-01) Belt Collins Hawaii, Ltd. 608 Job 02~14, Kapaa Hmstds $ (8,028.00) 0.5 MG Storage Tank & $ 33,950.00 $ . 0% $ 25,922.00 Kapahi 1.0 MG Storg Tank Con 533 (201·01) Belt Collins Hawaii, Ltd. 233 Job K-01, K-12, Kalaheo 1111' $ 971,715.72 $ 505,005.23 $ 60,262.59 52% $ 466,710.49 and 1222' Water System Improvements Con 503 (201-01) Goodfellow Brothers, Inc. $ 3,255.23 683 Job 04-06, KW-05, Kekaha $ 42,760.82 Well nsnu Renovations $ 262,036.12 $ 265,223.57 87% $ 42,828.60

Con 534 (201-01) Goodfellow Brothers, Inc. 235 Job 05-05, PLH-30, Niumalu & $ 3,202,500.00 $ 2,460,494.00 $ 631,302.50 77% $ 742,006.00 Kupolo 6-inch, 8-inch and 12" Main Replacement PH I

Job 10-02, MOA Dept of Trans 236 portation/Kiewit-Kaumualii Hwy $ 151,027.27 $ . 0% $ 151,027.27 widening, Anonui Rd and lihue Mill Bridge. 6/28/2011 (201-01) Con 536, Esaki Surveying & 237 Mapping, Inc., Job 11-02, $ 229,658.00 $ 31,635.00 14% $ 198,023.00 PLH-01 a Replace Grove Farm Tanks #1 & #2 Con 544, HONUA Engineering, Job 11-04 (L-08, L-10) Water 238 Main Replacement & Service $ 95,425.00 $ 35,025.00 37% $ 60,400.00 Improvement 6/28/11 Con 512 -Architects Hawaii, Ltd., Job No. PLH-39; $ 129,603.00 692 Lihue Baseyard Improvements $ 667,096.00 $ 283,107.56 $ 27,382.20 36% $ 513,591.44 for DOW

TOTAL EXPENDITURES $ 38,990,814.01 $11,617,874.99 $ 1,229,721.47 $ 27,372,939.02 DEPARTMENT OF WATER County of Kauai STATUS OF THE BUDGET JULY 1, 2011 TO JUNE 30, 2012 June 30, 2012

BUILD AMERICA BONDS (BABs)- FUND % Budget Elapsed _ ___:1.;:;0;;0-:.:;0;;_0'::;Vo __

TOTAL BALANCE OF ACTUAL EXPENDITURE BUDGET OVER BUDGETED EXPENDITURE S FOR THE TOTAL ACTUAL CAPITAL EXPENDITURES: AMOUNT STO DATE MONTH % EXPENDITURES Con 542, (201-01) MEl Corporation 239 Job 02-17, H-01, H-02, H-03 $ 2,500,000.00 $ - 0% $ 2,500,000.00 Maka Ridge Facilities Rehab & Princeville Interconnection Plan Con 543, (201-01) Oceanit Laboratories, Inc. 240 Job 11-03, M-03 $ 49,500.00 Land & Well Acquisition, $ 115,500.00 $ 20,691.00 18% $ 144,309.00 Moloaa and Waimea, Kauai Con 457, (201-01) Kodani & Associates Inc. Job 05-02, H-8, HW-12 241 Drill & Test Hanalei Well #2 & $ 32,430.00 $ - 0% $ 32,430.00 Wainiha Well #4

$ - 242 Job02-11, M-02Land $ 121,000.00 $ - 0% $ 121,000.00 Acquisition Contract 12-550 (201-01) Honua Engineering, Inc. Job 11-06, WK-01 243 $ 100,540.00 $ 19,200.00 19% $ 81,340.00

Con 551, (201-01) Esaki Surveying & Mapping, Inc Job K-05A, Kukuiolono 0.5 MG $ - $ 247,087.00 244 886'Tank $ 247,087.00

Con 429, Esaki Surveying & Mapping,lnc. Job 02-11, M-02, 100,000 Gal. $ - $ 94,222.00 610 Tank & Pipeline, Moloaa $ 94,222.00

$ - $ -

TOTAL EXPENDITURES $ 42,251,093.01 $11,657,765.99 $ 1,229,721.47 $ 30,593,327.02 AUDIT SCHEDULE OF FINDINGS As of July 31, 2012

STATUS UPDATE- same as last monih.

Finding No. 11-01- Billing Changes and Error Determination

Background: July 1, 2010 Implementation of the Amended Private Fire Lines created billing errors.

The errors in billing were carried until the end of Fiscal Year 2011. Accounts with usage In the Private Fire Lines were over billed. This resulted in over statement of our recorded revenues for FY 2011.

Status Update- AFS Rates in CAS Billing corrected,

Finding No. 11-02 Background: The Financial Statements vs. Budget Status Report was relatively high. Finding 11-02 Is also related to Finding 11-01

Status Update-

1. The recorded revenues were overstated due to over-billed Private Fire Line Accounts. The CAS billing configuration for AFS has been corrected. This will eliminate the over-statement of recorded water sales revenue.

2. Perform Analytical Procedures to identify potential issues. -The Budget Status Report is on a cash basis. The following charts are addedto Fiscal reports.

COMPARATIVE REPORTS: 1. Billed Water Sales & Revenue Receipts - FY 2012 2. Water Sales Revenue- FY 2012 & 2011 3. Water Sales Receipts - FY 2012 & 2011 4. Rate Study, Budget Projection & Actual (Billed) Water Sales 5. Water Consumption (In gallons)- FY 2012-2011 (new

Finding 11-03

Too many general ledger accounts; no reports designed for regular financial reporting and significant amount of processing done outside of the system.

Status Update- In process

We have Identified ledger accounts that can be consolidated to shorten our long list of ledger accounts. We will start using the consolidated general ledger accounts in the new fiscal year- FY 2013.

Finding 11-04

Status Update- On going 1. Revenues are recorded and reconciled monthly.

Finding No: 11-05: Inadequate Review of Supporting Documents

Status Update- On going Accountant Ill is on full speed. Accounting schedules are updated. REVENUE COMPARATIVE REPORT AS OF JULY 2012 & 2013

FY 2012 FY 2013 Inc (Dec) July $ 1,724,579 $ 2,346,892 $ 622,313 August $ 3,660,136 September $ 5,753,515 COMPARATIVE REPORT October $ 7,408,261 WATER SALES REVENUE - FY 2013 & 2012 November$22 M $ 9,166,600 December $ 10,693,795 January $20 M $ 12,400,040 February $ 13,853,766 March $18 M $ 15,531,367 April $ 17,074,174 $16 M May $ 18,787,860 June $14 M $ 20,317,787

** AFS error$12 in Mbilling AJE 288,133 FY 2012 $10 M FY 2013 $8 M

$6 M

$4 M

$2 M

$0 M DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute~ Conserve It!"

PR SPECIALIST REPORT

August 21,2012

Press Releases: A radio interview was done with KONG radio on August 7111 to remind our Ha'ena-Wainiha customers to conserve water through the month of August while the department continues rehabilitation work on the exiting tank. Work is expected to be completed by end of August as scheduled.

A press release was sent out on August 2"d announcing the second scheduled rate increase effective July I, 2012.

Project WET/Make a Splash: MAS is scheduled for September 27, 2012. We have received registration forms from some of our elementary school's that want to participate in this year's water festival. Also continue to receive volunteer sign-ups and confirmation. This month's planning includes scheduling of activities, setting up training/workshops for volunteers, and firming up some of the festival details (security, tables/benches, portable toilets, etc).

A quarter-page ad announcing this year's Make a Splash event is featured in the Fall2012 edition (August 15- November 15) of the Kaua'i Family Magazine that is distributed to students island-wide. Copies included in report.

Conservation: A conservation half-page ad has been published in the fall issue (August 15 - November 15) of the Kaua'i Family Magazine. Copies included in report.

In exchange for a donation of department of water promotional items (water bottles & reusable bags) a conservation ad was published in the 7111 Annual FiF Dodgeball Toumament Program book. Roughly 600 amount of participants, friends, and families participated in this community event. Copies included in report.

DOW Activities: The Employee Fitness Program is still under review.

The Fun Committee and Summer Intems planned two very successful events. "A Day at the 1 Ranch" was held on July 21' • A ton of wonderful comments and positive feedback from all who attended. A very special thank you to Mr. Daryl Kaneshiro and his family/staff for opening up his ranch and ranch activities to the department staff & family. Over 50 DOW employees & their families attended the event which included horseback riding, a petting zoo for the kids, ATV tours & rides, a delicious spread of food for lunch and much more! The "End-of-Summer BBQ" was held on August 3'd. A special thanks to the planning team that put this together: Virgil Kapanui, Eddie Doi, Mary Jane Garasi, Karen Delgado and our summer interns- Ty

---4398 Pua Loke Street, lihu'e, Kaua'i, Hawai'i or P. 0. 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 PR Specialist Report August 21,2012 Page 2 of2

Yamashita, Jamie Horikawa, and Tiara Visitacion; all the division heads for their monetary contribution to purchase the food/drinks & prizes for the games; our cooks- Eddie Doi, Keith Konishi, & Cleve Shigematsu; the volunteers that helped with set-up & break-down; all those that provided side dishes/desserts; and anyone else I may have missed at the time of submitting this report.

Internal Customer Communication:

• Request sent to all division heads to submit a draft re~ort of their section for the Mayor's 1 Annual Report 2012. Deadline given was August 17 ' to allow enough time for a complete department report to be compiled for submission by County deadline of August 51 3 I •

Meetings/Trainings/Misc.:

• Attended a Social Media for Disaster Response & Recovery training at the Kaua'i Civil Defense Center on August 3'd. The training was provided by the National Domestic Preparedness Consortium. • Met with David Craddick and Dan Chang from the Department of Health regarding the Wellhead/Source Protection Plan Grant. Will be assisting the DOH in the role of liaison for Kaua'i, with a 1-day conference hosted by the State Water Commission, USGS, Department of Health (and possibly others) planned for Kaua'i on Monday, January 14, 2013. This will be the first of four conferences the group will host throughout the state. • Met with David Craddick & Bill Eddy to address our current customer service practices. Bill will be working with Debra to research some training and/or refresher customer service courses/classes for employees to attend.

Respectfully submitted,

Attachments: FIF Dodgeball 7/27 & 7/28 Event Program (August 15-November 15) Kaua'i Family Magazine

JB/mjg Mgrrp/PR Specialist Report (8-2l-l2):mjg

---4398 Pua lake Street, Uhu'e, Kaua'i, Hawai'i or P. 0. Box 1706, lihu'e, HJ 96766-5706--- Phone No. {808) 245-5400- Administration FAX No. (808) 246-8628- Engineering/Fiscal/Shop FAX No. {808) 245-5813 DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute- Conserve It!"

Operations Division Report for the Month of July 2012

Personnel

• Operations Division personnel attended training class on "Public Relations for Utility Workers". • Operations Division personnel attended training class on "Leak Detection". • Electricians attended a half-day Arc Flash seminar on Oahu. 1 • A total of 8 Operations Division personnel took certification examinations on July 25 h. 5 took the Water Treatment Plant Operator exam and 3 took the Distribution System Operator exam.

Source and Storage

• Corrective actions to address significant deficiencies and recommendations by the sanitary survey inspectors are on-going. • Haena/Wainiha area residents were reminded to conserve water for 2 months until WP2020 contracted tank refurbishment is complete in August. • OPS personnel constructed SCAD A shelter for Kilauea Tanks and Wells cabinets. • OPS personnel mobilized and started clearing, grubbing and preparing the pad for the temporary tank site at the Kalaheo Nursery Tank. Initially, 2- 4,000 gallon temporary tanks from Haena will be installed near the existing tank so demolition of the roof can commence while maintaining water service to customers. Another 4- 4,000 gallon tanks will be installed within the existing concrete tank once the deteriorated roof materials and trusses are demolished and removed from the site.

Distribution

• Operations crews continue to perform leak repair of service laterals and mainlines damaged by contractors of Water Plan 2020. • OPS personnel performed valves shutdown on Kuhio Highway in Kapa'a to allow contractor to connect to existing. • OPS personnel found and repaired 2 undetected underground leaks I 00 yards apart located between the booster pumps and the nursery tank in Kalaheo. The site was overgrown and accessible only by foot. The first leak was initially suspected and found by Plant Section personnel when they noticed from SCAD A that the booster pumps were running longer than usual. Hiking the site, personnel found water flowing to a stream. The second leak was found by personnel assigned to repair the first leak while searching for an isolation valve.

Due to their remote locations and overgrowth of vegetation, these leaks could have gone undetected for many weeks or even months. Please see attached worksheet for estimated water-loss prevented and revenue recovered. • A total of twenty nine (29) new and replacement water meters were installed.

Fleet, Inventory, \Varehouse and Baseyard Area

• We received a total of38 calls from customers reporting leaks on the mainline, service laterals, meters, and fire hydrants including 2 called-in complaints oflow water pressure, 2 complaint for high water pressure and 3 calls for no water as well as I call for large water bill.

---4398 Pua lake Street, lihu'e, Kaua'i, Hawal'lor P. 0. 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 Operations Division Report for the ~·Ionth of July 2012 August 21, 2012 Page 2 of2

• Pacific Wireless Communications transferred 3 Motorola Radios from auctioned vehicles to the newly purchased vehicles. k):bmi"

Val Reyna Chief of Operations

Attachments: Leak Report for July 2012 Chart Year Comparison July 2012 SAVINGS FROM KALAHEO LEAK REPAIR (7/20/12 AND 7/24/12)

Staff Reports/August 2012/0pcrations Division Report for the Month of July 2012/mjg 02-Aug-2012 Work Orders by Job Reason Code for Selected Date Range

07/01/2011 to 07/31/2012

# of W/O's Job Reason Code Description

20 LEAK-BOX Meter Box Leak Repair

24 LEAK-CUST Customer-Side Leak Repair

135 LEAK-MAIN Mainline Leak Repair

150 LEAK-S/L Service Lateral Leak Repair

Work Orders by Job Reason Code

LEAK-BOX 20 LEAK-CUST 24

LEAK-S/L LEAK-BOX 6.1% 150 LEAK-CUST 7.3% LEAK-MAIN 41.0% LEAK-S/L 45.6% Total: 100.0% LEAK-MAIN 135

Number of Leak Repairs per Month

16 LEAK-BOX LEAK-CUST 12 LEAK-MAIN LEAK-S/L 8

Number of Leak Repairs 4

7/2011 8/2011 9/2011 1/2012 2/2012 3/2012 4/2012 5/2012 6/2012 7/2012 10/2011 11/2011 12/2011 Total Hours Worked for the Month Operations: Plant & Field division For the Period: July 2010 to July 2012

6000

5000

4000

3000

2000

1000

0 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12

Regular Hours Worked Overtime Hours TOTAL HOURS WORKED SAVINGS FROM KALAHEO LEAK REPAIR (7/20/12 AND 7/24/12)

Revenue Saved Revenue Saved Water Money Saved Money Saved Cost per Water lost by leak Estimated loss based on based on I 00-0600-0400-6230000-0510 (1000 gals Cost per month from repair from repair 1000 gals (gallons) from leak $3.50/1000 gals $3.50/1000 gals per month) ($/month) ($/year) ($/month) ($/year) 489822512-090 Kalaheo Booster 2,988 $ 100.46 $ 0.03 2,502,720.00 $ 84.13 $ 126.19 $ 1,535.37 $ 13,139.28 $ 159,861.24

27-54800-2-9 1oo"0600-0402--6:i3oooocosi o 489822512-315 "P" Kalaheo Deepwell #I New 16,550 $ 17,900.58 $ 1.08 2,502, 720.00 $ 2,707.04 $ 4,060.56 $ 49,403.46

96-27600-2-3 Total= $ 2,791.17 $ 4,186.75 $ 50,938.82 $ 13,139.28 $ 159,861.24

On 7/5/12 L. Nakata noticed that the Kalaheo Booster Pumps were running longer than usual. These BPs take water from the Kalaheo 0.5 MG Tank and feed it to the Kalaheo Nursery Tank. Suspecting a leak, he walked the line into the forest and found the pipe leaking from inside a concrete footing. Due to the work load of the crews and weather conditions they were not able to check the leak until 7/12/12. The Westside Crews located the leak and, when searching for an upstream isolation valve, W. Rita found a second leak on the same line. The Westside crew returned to the shop and made preparations to repair both leaks. Due to the location of the leak equipment had to be hand carried in, this included a generator and hanuner drill to break the concrete surrounding the pipes. On 7/20/12 the first leak was repaired by W. Rita, A. Iwasaki, R. Chow, R. Watanabe, K. Pongasi, and S. Rita. The crews returned on 7/24/12 to repair the second leak. Following repair of the two leaks the BPs returned to normal operating length. The above calculations represent the amount of money lost from pumping the water out of the ground. The calculations are derived from the leak and estimated out for savings if the leak was not located. DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute- Conserve It!" August 21, 2012

RE: MONTHLY SUBDIVISION SUMMARY July 2012 Updates/Recommendations ...... ' / . : : > ·•.... •••··. \ > (•·· •. ,.," .•. ···' l.p~l ,. ·· .••...•..•.• Resp.,~e. <··?• r,. ···· DO\Y RespoJ:l~e ~& Subdivision·Numoer • TMKNimiher ·. •· .... ·· . · • < • A Iicant ·.. · Ji~~ei~~~ Date · .. • .Subject ; .·· ····•· Planninl!' · ·•·· No S-2006-27 3-3-03:041 por. Grove Farm Properties, Inc. 7/24/2012 7/30/2012 3rd Time Extension Objection/Approve Extension Reauest No S-2008-1 2-6-14:032 Stanley B. Narramore 7/24/2012 7/30/2012 4th Time Extension Objection/Approve Extension Request No S-2009-13 3-3-03:041 por. Grove Farm Properties, Inc. 7/24/2012 7/30/2012 3rd Time Extension Objection/Approve Extension Request No S-2009-14 3-3-03:041 por. Grove Farm Properties, Inc. 7/24/2012 7/30/2012 3rd Time Extension Objection/Approve Extension Request No S-2009-15 3-3-03:041 por. Grove Farm Properties, Inc. 7/24/2012 7/30/2012 3rd Time Extension Objection/Approve Extension Request No S-2009-21 3-3-03:041 por. Grove Farm Properties, Inc. 7/24/2012 7/30/2012 3rd Time Extension Objection/Approve Extension Request Marilyn Planas & Frances Tentative Approval is S-2012-18 2-3-03:018; 2-3-03:019 6/9/2012 7/19/2012 Application Finau Recommended GF!loo WR/P Report (8/I/;!01:2) Mwrp/Monthly Subdivi~ion Summnry Report (S.Zl·l2) mjg

Respectfully submitted, Approved: t!;Jt \.;"-'""'--- Gregg Fujikawa David R. Craddick, P.E., C.E.M. Chief of Water Resources & Planning Manager and Chief Engineer DEPARTMENT OF WATER County ofKaua'i

"Water has no Substitute- Conserve It!"

MANAGER'S UPDATE

August 21, 2012

MANAGER'S UPDATE for JULY 2012 to AUGUST 2012

RE: Contract awarded toR. Electric for Job No. 12-8 Kalepa Back Pressure Valve (BPV) Electrical Replacement in the amount of $20,372 (7-27-2012)

Funding: Account No. 102 ...... $20,372.00 Miscellaneous Other Capital Expenditures-Miscellaneous Rehabilitation Projects

Background: The existing electrical equipment for the control of Kalepa BPV is in poor and deteriorating condition which causes the IMG Hanama'ulu tank to drain into the smaller 0.25MG Kalepa which subsequently overflows.

The subject bids were opened on June 27, 2012 and submittals were reviewed and recommended accepting the bid from R. Electric which was found reasonable and within budget.

RE: Contract awarded to Derrick's Well Drilling and Pump Services, LLC for 1-30HP, 3-50HP, 2-60HP, 3-75HP, 2-100HP, 1-125HP, and 1-350HP motors for Solicitation GS-2012-05, Furnishing and Delivery of Premium Efficient, Hollow Shaft, Vertical Turbine Pumn Motors in the amount of $203 ' 000 (8 -8-12) kW-Hr kW-Hr per year KIUC Estimate Estimated Total per day based on Estimate rate Annual HP Qty Purchase Purchase kW based on 8 Ill's per Annual Location ($/kW Saving Price Price 8 hrs per day 365 Power Cost -Hr.) Using 5% day days per year 30 I $9,818.00 $9,818.00 22.37 I78.97 65,323.32 0.42 $27,435.79 $1,371.79 Puhi#3 11 11 Anahola A , 11 50 3 $9,250.00 $27,750.00 37.29 894.84 326,616.60 0.42 $137,178.97 $6,858.95 "C , Maka Ridge Hanapepe 60 2 $II,260.50 $22,521.00 44.74 715.87 261,293.28 0.42 $I09,743.18 $5,487.16 "A", Kapilimao Hanapepe1'B", 75 3 $I3,114.00 $39,342.00 55.93 I,342.26 489,924.90 0.42 $205,768.46 $10,288.42 Nonou "B"& "Cu Koloa 11 C'\ IOO 2 $I7,207.00 $34,4I4.00 74.57 I,I93.I2 435,488.80 0.42 $182,905.30 $ 9,I45.26 "D", upn Kilauea 1, 2, I25 1 $23,464.00 $23,464.00 93.21 745.70 272,180.50 0.42 $II4,3I5.8I $5,715.79 Puhi 5A 261.0 350 I $45,691.00 $45,691.00 2,087.96 762,I05.40 0.42 $ 320,084.27 $16,004.21 0 Kalaheo I & 2 Total 13 $203,000.00 $1,097,431.78 $54,871.59 MANAGER'S UPDATE Rc; Manager's Update for July 2012 to August 2012 August21,2012 Page2of4

Funding: Account No. I 07 ...... $203,000.00 Other Contracted Capital Expenditures

Background: Upon further review of existing motors, we found that thirteen (13) motors of various sizes needed replacement rather than the twenty two (22) that was initially budgeted. As such, we solicited bids for thirteen (13) motors. The subject bids were opened on June 28, 2012.

Estimated four years to payoff. None of these motors are from the Lihue area that would be feed with high level water if developed.

RE: Contract awarded to Esaki Surveying and Mapping, Inc. for Water Plan 2020 Job No. WK-23, Job No. 12-2, Construct UH Experimental Station, 605' Tank, Kauai, Hawaii in the amount of $38,500 (8-8-12)

Funding: Water Plan 2020 Job No. WK-23, Job No. 12-2, Construct UH Experimental Station 605', Kauai, Hawaii ...... $ 38,500.00 Contingency (-5%) ...... $ 1,925.00 Total Requested from Account 301 FRC-CIP ...... $ 40,425.00

BALANCE REMAINING (prior to subject fund request) Water Plan 2020 Job No. WK-23, Job No. 12-2, Construct UH Experimental Station 605', Kauai, Hawaii ...... $50,000.00 Total Requested from Project Fund Balance ...... <$40,425.00> New Project Fund Balance ...... $9,575.00

Background: The Department of Water is currently in need of a 250,000 gallon tank in the 605' zone in the Wailua Kapaa Water System. This project will serve to alleviate those issues. The project will be a phased project, with this initial funding and phase to secure the land rights and subdivision. A review committee was formed and Esaki Surveying and Mapping, Inc. was selected by the manager based on the review committee's recommendation. We contacted the consultant and the attached scope of work and proposal was negotiated.

We reviewed Esaki Surveying and Mapping, Inc. proposal of$38,500.00 for the work and find it acceptable.

PUMP INSTALLATION PERMITS: None

WAIVER, RELEASE AND INDEMNITY AGREEMENTS SIGNED BY THE MANAGER: None MANAGER'S UPDATE Re: Manager's Update for June 2012 to July 2012 August 21,2012 Page 3 of4

PERSONNEL MATTERS UPDATE:

Update: August 3, 2012

RECRUITMENT AND POSITION CHANGES

Operations Division I. Water Service Investigator II #2486. Pending referred list from Department of Personnel (DPS). 2. Lead Pipefitter #2481. Pending referred list eligibles. 3. Pipefitter Helper #2405 and #2471. Pending referred list eligibles. 4. Power Generator Repairer #2469. DOW updating position description. 5. Utility Worker #2438. DOW updating position description. 6. Electronics Technician, Water Plant Operator II and Water Plant Operator Assistant PDs submitted to DPS in December 2011 for review and approval. Pending response from DPS. 7. Plant Electrician #2457. Updating position description to send to DPS for job posting.

Fiscal Division I. Billing Section position re-descriptions. DPS to review DOW submittal. 2. Accountant II (New)- Billing Section. DPS to review submittal. 3. Procurement Specialist IV (New). DPS to review submittal. 4. Account Clerk #2463 -Accounting Section. Interviews held. Rate sheet compilation in progress.

Engineering Division, Special Projects Division, and Water Resources & Planning Division 1. Construction Management Division, Water Quality Division and Engineering Division Re-m·g. DOW received verbal notice from DPS to proceed with Re-org and to submit the revised PDs. 2. Civil Engineer III #2360- Water Resources and Planning Division. Position vacant. 3. Civil Engineer II #2494- Water Resources and Planning Division. Pending DPS review of reallocation submittal. 4. Civil Engineer III #2468 - Engineering Division. Interviews to be scheduled. 5. Civil Engineer II #2458- Engineering Division. Vacant. 6. Water Inspector II #2483 (Engineering Division) & #2357 (Special Projects Division). Interviews to be scheduled. 7. Project Assistant #2484. Pending referred list from DPS. Updating position description to send to DPS for job posting.

Administration 1. Commission Support Clerk #2493. Position filled effective August I, 2012. Position Re-description pending DPS review. 2. Secretary #2354. Position to be filled August 16,2012. 3. Private Secretary #E-35. Position re-description pending DPS review. MANAGER'S UPDATE Rc: Manager's Update for July 2012 to August 2012 August 21,2012 Page4of4

4. Departmental Public Relations Specialist #2478. Pending referred list of eligibles.

SUMMARY OF WARRANT VOUCHERS PAID - June 30,2012 Warrant vouchers were paid in the amount of $4, 170,529.74. Please see attached Warrant Vouchers Report.

STAFF REPORTS- FY 12:

Conveyance of Water Facility:

Narramore Living Trust 1995 TMK: 2-6-14:032 Koloa $13,450 Falko Patiners, LLC TMK: 5-1-03:009 to 013,017, Eleele $39,038 018, 022 to 029 Total $52,448

CC&B BILLING SYSTEM UPDATE Dress rehearsal for CC&B was scheduled from July 26'" to July 29'". The billing department 1 gathered their data they have done from their work day on Thursday, July 26 " and inputted the transactions manually on CC&B during the dress rehearsal over the weekend. The "Go Live Date" is still scheduled for September 4'", 2012.

AFFORDABLE HOUSING UPDATE: Update will be provided after the next Task Force Meeting is held. CEfu::rrvc David Craddick, P.E., C.E.M. Manager and Chief Engineer

DRC:mjg Mgrrp/Managcr's Update (8-21-12):mjg 2010 Bond Encumbrance and Spend Down Status (Dollars)

60,000

50,000

BAB Balance Remaining to Encumber

40,000

Actual Projected

30,000 Thousands ofDollars Thousands

20,000

10,000

0 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 1·.. · . ·.. ·. • August 21, 2012 BOARD MEETING. ·

DEPARTMENT OF WATER Summary of Warrant Vouchers Paid July 31, 2012

WATER UTILITY FUND Other Expenses, Department of Water Capital Expenditures $ 73,236.69 Other Expenses, Department of Water Normal-Expenditures $ 3.431,889.81 TOTAL WATER UTILITY FUND $ 3,505,126.50 $ 3,505,126.50

BOND FUND

TOTAL BOND FUND $

FRC FUND

FRC REFUNDS $ TOTAL FRC FUND $ $

BOND-BAB UNLIMITED BUILDERS, LLC. $ 61,324.80 KOGA ENGINEERING & CONSTRUCTION, INC $ 351,951.15 OCEANIC COMPANY, INC. $ 80,915.68 EARTHWORKS PACIFIC, INC. $ 44,171.13 BELT COLLINS HAWAII, LTD. $ 12,119.80 OCEANIT LABORATORIES $ 4,104.00 ESAKI SURVEYING & MAPPING, INC. $ 20,245.50 GOODFELLOW BROTHERS, INC. $ 42,828.60 ARCHITECTS HAWAII, LTD. $ 42,517.58 KODANI & ASSOCIATES, INC. $ 5,225.00 TOTAL BAB BOND FUND $ 665,403.24 $ 665,403.24

TOTAL CLAIMS PAYABLE $ 4,170,529.74

WATER UTILITY FUND 7/31/12 AP $ 1,370,118.97 Bank of Hawaii-Wire Transfers $ 2,135,007.53 $ 3,505,126.50 BOND FUND $ F RC FUND $ BOND- BAB! 7/l1112 AP $ 665,403.24 $ 665,403.24

BANK TRANSFER- $ 4,170,529.74

Bank Transfer Adjustments: Due to W/U -Transfer Adjustment

7.12 ClAIMS PAYABLE DEPARTMENT OF WATER WATER UTILITY FUND RECAP OF NORMAL EXPENDITURES July 31,2012

BUDGET CODE AMOUNT REFUND- REVENUES FROM WATER SALES 1 $ 1,437.68 UTILITIES- ADMINSTRATION & OFFICE 21 $ 17,052.34 POSTAGE & PRINTING 22 $ 383.21 OFFICE EQUIPMENT MAINTENANCE 24 $ 3,845.81 CONTRACTUAL SERVICES- ADMINISTRATION & OFFICE 27 $ 4,970.56 TRAVEL & INCIDENTALS- BOARD 28 $ (39.00) TRAVEL & INCIDENTALS 'STAFF 29 $ 1,036.07 MISCELLANEOUS- ADMINISTRATION & OFFICE 31 $ 1,744.53 IN-SERVICE TRAINING 33 $ 6,651.46 SUPPLIES- OFFICE & JANITORIAL 34 $ 3,283.54 PUBLIC RELATIONS 36 $ 7,662.00 PUBLIC RELATIONS- Grants Nature Conservancy 36.1 $ 75,000.00 COMPUTER SUPPORT & SUPPLIES 37 $ 10,965.76 MICROLAB MATERIALS & SUPPLIES 38 $ 800.94 VEHICLE & EQUIPMENT MAINTENANCE 40 $ 1,908.62 VEHICLE- FUEL 41 $ 12,160.69 UTILITIES 42 $ 5,959.78 ELECTRICAL PARTS 43.1 $ 1,433.20 MISC- Leak Detection 44.2 $ 5,680.29 MATERIALS & SUPPLIES- OPERATIONS 47 $ 8,693.68 COLLECTIVE BARGAINING ITEMS 48 $ 1,032.45 PUMP ELECTRICAL 51 $ 274,424.71 WATER PURCHASE 55 $ 131,257.38 CHEMICALS 58 $ 3,425.47 MWH LABORATORIES 59 $ 108.14 SRF-Hanapepe River 80 $ 47,518.51 SRF-Hanapepe 27" Pipeline 81 $ 26,481.94 SRF-Lihue (2) 1.0 MG Tanks 83 $ 48,558.13 SRF -16"WATERLINEALONG KUHIO HWY, LEHO RD. 85 $ 89,366.96 The Bank of New York Mellon-Bond 86 $ 102,315.62 The Bank of New York Mellon-Bond SR 2005A 87 $ 206,440.63 SRF-Poipu 16" Main Replacement 88 $ 199,487.17 SRF-Kekaha-Eiepaio to Huakai Road 90 $ 164,449.80 SRF-Waha, Wawaa and Niho Rds Main replacement 91 $ 75,818.64 The Bank of New York Mellon-BAS 92 $ 1,460,440.34 USDA Rural Development 93 $ 1,275.00 The Bank of New York Mallon- KAUAI 11A 95 $ 359,150.00 The Bank of New York Mellon-Bond SER 2001A 97 $ 6,660.94 SRF-Kokolau Tunnel 98 $ 63,046.82 TOTAL NORMAL EXPENDITURES $ 3,431,889.81

NORMAL EXPENDITURES DEPARTMENT OF WATER WATER UTILITY FUND RECAP OF CAPITAL EXPENDITURES

July 31, 2012 CAPITAL EXPENDITURES: BUDGET CODE AMOUNT

CAPITAL IMPROVEMENT PROJECTS 101 MISCELLANEOUS CAPITAL EXPENDITURES 102 $ 34,222.39 OFFICE & ENGINEERING EQUIPMENT 103 $ 9,826.29 VEHICLES & EQUIPMENT 106 CIPRESERVE 106B PURCHASE OF METER & METER BOXES 107 SUB-TOTAL $ 44,048.68

WATER UTILITY FUND

CON 453 Belt Collins Hawaii Ltd. 638 $ 1,260.00 CON 555 LYON ASSOCIATES, INC. 699 $ 8,630.01 CON 539 MEARS GROUP, INC. 702 ~ 19,298.00 CONTRACT PAYMENTS- WU $ 29,188.01 TOTAL WATER UTILITY -CAPITAL EXPENDITURES $ 73,236.69

BOND

CON CONTRACT PAYMENTS· BOND: $

FRC

Frc Refund- 4a FRC PAYMENTS $

BOND- BAB CON 516 UNLIMITED BUILDERS, LLC. 220 $ 61,324.80 CON 524 KOGA ENGINEERING & CONSTRUCTION, INC 224 $ 351,951.15 CON 529 OCEANIC COMPANY, INC. 230 $ 80,915.68 CON 530 EARTHWORKS PACIFIC, INC. 231 $ 44,171.13 CON 533 BELT COLLINS HAWAII, LTD. 233 $ 12,119.80 CON 543 OCEANIT LABORATORIES 240 $ 4,104.00 CON 409 ESAKI SURVEYING & MAPPING, INC. 592 $ 20,245.50 CON 503 GOODFELLOW BROTHERS, INC. 683 $ 42,828.60 CON 692 ARCHITECTS HAWAII, LTD, 692 $ 42,517.58 CON 440 KODANI &ASSOCIATES INC. 621 $ 5,225.00 CONTRACT PAYMENTS- BAB $ 665403.24

TOTAL CAPITAL EXPENDITURES $ 738,639.93

DEPARTMENT OF WATER County of Kaua'i

"Water has no Substitute- Conserve It!"

MANAGER'S REPORT

August 21, 2012

Re: Quarterly Status of DOW Projects update (l·evisetl)

This repott is a status update and response for the projects commented on by the Board at the July 20, 2012 Board Meeting.

Job No. 06-01, KW-28, Amfac Shaft Renovation: (Consultant: Brown and Caldwell) A. Notice to proceed- 10/6/06 B. Initial projected end date- 6/29/07 C. Current projected end date- 9/30/12

The project encountered problems at the onset due to intrusion of surface water runoff into the shaft. At that time, the DOW worked to seal the shaft to prevent the intrusion and DOW Operations installed a temporary pump in the shaft to allow the micro lab to conduct water quality testing in 20 II. Results were favorable and the final engineering report for this project was submitted to the Department of Health for approval on July 19, 2012.

This project is only to get the source water approved for use by the DOH. Once this is completed the project will then go for design of a pump station and transmission pipeline to deliver water to a storage tank. This will take a year before it is ready for construction. Construction could then take another year.

Job No. 02-14, WK-08, Kapahi 1.0 MG Tank: (Consultant: Belt Collins) A. Notice to proceed- 3/15/04 B. Initial projected end date- 3/l 0/05 C. Current projected end date- 9/30/12

The original contract consisted of two projects. The Kapaa Homesteads 0.5 MG Tank which construction has been completed for and the 1.0 MG Kapahi Tank that is currently in design. There were issues with the existing soil conditions and the typical tank foundation could not be used so piles were designed. We were also waiting for as-builts for the adjacent pipeline recently completed by DOW to be incorporated into the Kapahi Tank plans as well. Due to these hurdles and the regulatory process, we anticipate final tracings to be submitted for DOW's approval by September 30,2012.

Job No. 11-11, WK-02, Rehabilitate Akulilmli Tunnel: A. SSFM Notice to proceed- 9/11107 B. SSFM Initial projected end date- 12/29/09 C. AECOM Notice to proceed- 11/1/11 D. AECOM Current projected end date- 6/30/13

This project was started with SSFM International and later taken over by DOW staff. After staff involvement, it was decided that treatment was the best option. In 2011, the DOW procured a contract with AECOM Technical Services to design a treatment system for the Akulikuli Source. This system will be located at the future 1.0 MG Kapahi Tank site. The final alternatives technical memorandum has been

---4398 Pua lake Street, lfhu'e, Kaua'i, Hawai'l or P. 0. Box 1706, Uhu'e, HI 96766-5706--- Phone No. (808) 245-5400- Administration FAX No. (808) 246-8628- Engineering/Fiscal/Shop FAX No. {808) 245-5813 Quarterly Project Status Update (revised) August 21,2012 Page 2 of2

submitted to DOW for review and the project is scheduled to be completed by June of2013.

Job No. 11-11, PLH-42, Rehabilitate Kokolau Tunnel: A. SSFM Notice to proceed- 6/15/98 B. SSFM Initial projected end date- 1/6/2000 C. AECOM Notice to proceed- 11/1111 D. AECOM Current projected end date- 6/30113

This project was slatted with SSFM International and later taken over by DOW staf£ After staff involvement, it was decided that treatment was the best option. In 2011, the DOW procured a contract with AECOM Technical Services to design a treatment system for the Kokolau Source. This system will be located at the future 0.5 MG Grove Farm Tank site. The final alternatives technical memorandum has been submitted to DOW for review and the project is scheduled to be completed by June of2013.

It should be noted that the DOW has created a contract management system that tracks contract status. It was implemented in 20 I 0 but due to staff departure, the momentum was lost. With the newly hired Deputy Secretary arriving in mid-August, the contract management system will be a priority to allow staff to better manage contracts and adhere to contract end dates.

Respectfully submitted,

CONCURRED: BO.~kj David R. Craddick, P. E., C.E.M. Manager and Chief Engineer

DM:mjg Mgrrp/August2012/Quarterly Status of DOW Projects update (re~'ised) (8-21-12)