Hawaii Business Magazine September 2024

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JASON CHANG ’S GOAL S , CHALLENGES AND HOPES F O R H AWA I ‘ I ’ S LARGEST H E A LT H C A R E SYSTEM

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AT CEO QUEEN’S HE ‘ E IA FI SHPOND NE ARS MAJOR MILESTONE P. 44

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SEPTEMBER 2024

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S U S TA I N A B I L I T Y

A S P EC I A L S ECT I O N BY T H E H AWA I ‘ I L E A D E R S H I P FO R U M

Inspiring Leadership.

Catalyzing Change.

For master navigator Nainoa Thompson, true leadership means inspiring the next generation to answer the questions that we cannot. Polynesian Voyaging Society’s (PVS) latest voyage, Moananuiākea, seeks to address our planet’s climate challenges by engaging Pacific communities, developing young leaders and inspiring collective action. “Voyaging is about leadership and allowing young people to find their way,” said Thompson. “It’s our time to turn the canoe to the only island that we have. And that’s the Earth.”

As an apprentice navigator, Lehua Kamalu became the first woman to captain and lead navigate a long-distance ocean voyage when she sailed Hikianalia from Hawai‘i to California. Today, Lehua serves as PVS Partnership Director.

Watch Way of the Navigator on YouTube to learn more about Hōkūle‘a’s Moananuiākea journey and how Hawai‘i is leading the way for the rest of the planet.

Nainoa Thompson, CEO of Polynesian Voyaging Society (left), with AJ Halagao, president of Hawai‘i Leadership Forum (right), aboard Hōkūle‘a.

Photo by Maui Tauotaha

Video produced by Kathy Muneno

Photo by Kerry Lezy

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H AWA I I L E A D E R S H I P F O R U M . O R G

Leaders in Sustainability

Photo by Ashley Smith

Omidyar Fellows, a program of the Hawai‘i Leadership Forum (HLF), has cultivated a network of changemakers committed to a better future for Hawai‘i. Fellows are leading impact projects and initiatives that address some of the state’s most pressing issues, including environmental sustainability.

Noelani Kalipi develops numerous utility-scale renewable energy projects across the islands. Jeff Mikulina, former executive director of Blue Planet Foundation, now leads Climate Hawai‘i. Nicole Velasco helps NORESCO’s clients leverage technology to mitigate the impacts of climate change and achieve resiliency. Danielle Bass coordinates the sustainability and climate change policies and practices for the State of Hawai‘i, in the Office of Planning and Sustainable Development. Jack Kittinger leads sustainable development initiatives for the Center for Sustainable Lands and Waters at Conservation International.

UH Law professor Maxine Burkett served as US Deputy Assistant Secretary of State for Oceans, Fisheries and Polar Affairs. She now serves as Assistant Director for Climate, Oceans and Equity at the White House.

Emergency and disaster physician Dr. Darragh O’Carroll is featured in a 2024 documentary film, Infected Earth, addressing how climate change is negatively impacting human health.

Former Honolulu Chief Resilience Officer Josh Stanbro established a Washington, DC office for Hawai‘i-based Elemental Excelerator, helping secure federal funds for the organization’s climate equity work nationwide.

Photo by IISD/ENB | Diego Noguera H AWA I I B U S I N ES S

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FEATURES

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Papahānaumokuākea Marine Debris Project has removed 786,287 pounds of derelict fishing nets and other debris from the Northwestern Hawaiian Islands.

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Condo Insurance Crisis Is Now Hurting Sales Biggest drops in sales in June were in Waikīkī and Makiki-Mō‘ili‘ili – two areas with lots of underinsured, older condo buildings.

Hawai‘i’s Legal World Continues to Evolve Senior attorneys from four top firms discuss new laws affecting their clients, workplace changes sought by younger lawyers and more.

Jason Chang focused on Queen’s mission New CEO at Hawai‘i’s largest health care system prioritizes financial stability, supporting the staff and serving more patients statewide.

Wastewater Re-Use Plan Gets Initial Funds Maui pilot project would use treated wastewater to create a green belt to protect Mā‘alaea, an area often threatened by wildfires.

Local AI Experts Discuss Present & Future of Work So much will change in the future, but you don’t have to wait: AI and automation can support your life, work and team now.

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CONTENTS

PHOTO: ADAM TAYLOR PHOTOGRAPHY

79 The Best of Local Architecture and Design

See the winners of the annual awards from the Honolulu chapter of AIA, the American Institute of Architects.

Work at He‘eia Fishpond Nears a Major Milestone A nonprofit has spent decades removing invasive mangroves and rebuilding the fishpond wall. It’s now close to sustainable fish production.

44 Ranking Hawai‘i’s Most Profitable Companies We ranked 67 locally based companies. The No. 1 company earned $297 million in profit last year; the last place company lost almost as much.

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We Explore If Companies Should Outsource or Not It’s no longer just cost savings driving local companies to depend on Hawai‘i-based outsourcing companies.

74 Re-Creating Fragrances of Carefree Local Childhoods Maliana Hamada of Ha‘a & Co. offers the scents of tropical florals in her perfume oil blends, room and linen sprays, diffusers and hand sanitizers.

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5 Steps to Build a Social Responsibility Program Corporate social responsibility has evolved into a strategic imperative that aligns social impact with sustainability and profitability.

101 How Should We Deal With Isles’ Declining Population?

We also asked questions about quality of life, financial disclosures and more in the latest edition of the BOSS Survey and 808 Poll.

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SPECI A L A DV ERTI SI N G SECTI ON S Emerging Legal Stars Profiles of up-and-coming attorneys from Hawai‘i’s top law firms.

21 West O‘ahu Magazine Interesting developments across this dynamic area.

47 AIA’s 2024 Awards A 21-page report honoring excellence in local architectural design.

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M I N D

The AI-Enabled Version of Hacking is Uber-Scary

I

’M FINDING AI USEFUL AS AN IDEA GENERATOR – SOMETIMES A STARTING POINT AND SOMETIMES A SUPPLEMENT TO MY OWN THINKING – AND I’M GOING TO CONTINUE EXPERIMENTING. If you

want to explore the ways you can use AI now at your company or in your life, I recommend reading highlights from a session at our AI Hawai‘i Summit on page 61.

But if you want to understand how to avoid some of AI’s newest cybersecurity threats to your organization and your family, keep reading here.

The moderator of the cybersecurity session, Kelly Ueoka, president of local IT provider Pacxa, described scary new ways that AI was used in a $25 million fraud case that was first reported in February.

A Hong Kong employee of a multinational design and engineering company called Arup was duped by deepfake voices and images on a video call that were so realistic that he thought he was seeing and talking to his CFO and other colleagues.

CREATE YOUR “SAFE WORD”

Another panelist at our cybersecurity session, Natalie Kim, senior counsel at OpenAI, said a “safe word” can offer another layer of protection against these sophisticated, AI-enabled fraudsters.

“People should have a safe word with their family so that if they’re ever in a situation like that, they can use the safe word and confirm who it is,” she said.

Safe words can be used in organizations, too, though they would have to change when people leave the organization. In any case, be prepared. “It doesn’t matter the size of your business, doesn’t matter how sophisticated you are, everyone can be a target,” Kim said.

Panelist Summer Rankin, AI solution architect at Booz Allen Hamilton, said the Hong Kong scam was “light-years” ahead of the cyberattacks we had been used to. So keeping up to date with what AI is capable of doing, she said, gives people and companies a better idea of what the next cutting-edge cyberfraud attack might look like.

Also understand the rules governing the software and platforms you use. “If I’m using a free version, it’s likely that what I put into it is not private. If it’s free, your data is their product. In fact, that may be the case even when you are paying for something,” Rankin said.

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“So if you have a safe word with your family, don’t email it to each other,” she added. That got a lot of laughter from the audience, but dumb things like that can happen when we aren’t thinking about how easily much of our private lives can end up as public information.

HOW TO PROTECT YOUR DATA

Ueoka asked Matthew Joseff, global director for security, fraud and compliance at Splunk, a digital security company acquired this year by Cisco, how companies can prevent their data from leaking out.

Joseff provided a step-by-step guide. “Number one, define what you’re protecting. Data could be credit card numbers, Social Security numbers, 92% of global currency is data. So banks are data companies, not just money companies,” he said.

“Next, where is that data? For smaller businesses, it’s easier to take an asset inventory than for larger businesses. How do you make data secure if you don’t know where it is?”

And if data is your most valuable product, you need to start acting with the right mindset to protect it, he said. He makes the point by describing the elaborate security in some companies’ lobbies: guests require government-issued ID, need badges; there are guards, cameras, maybe metal detectors.

But if I’m a hacker, “I don’t need to go to your office,” he said. So spend the money necessary to provide security for your data.

The final thought comes from Ueoka, but it’s not something he said at the AI Summit. It’s something he told Staff Writer Shelby Mattos for her outsourcing story on page 74.

“I think that within the next 12-24 months, we might see an influx of companies having to adopt AI because they will be getting attacked by AI,” he warned.

STEVE PETRANIK EDITOR AND EXECUTIVE PUBLISHER

HB EVENTS CO N N E C T W I T H H AWA I I B U S I N E S S M AGA Z I N E

L O C A L LY OW N E D , L O C A L LY C O M M I T T E D SINCE 1955.

Our goal is to strengthen the local economy and help our communities thrive.

Editor & Executive Publisher STEVE PETRANIK stevep@hawaiibusiness.com • (808) 534-7584 Editorial Managing Editor CYNTHIA WESSENDORF cynthiaw@hawaiibusiness.com • (808) 224-7943 Staff Writer RYANN COULES ryannc@hawaiibusiness.com Staff Writer SHELBY MATTOS shelbym@hawaiibusiness.com Editorial Intern DEREK KAMAKANAALOHA SOONG Copy Editor ELROY GARCIA Design & Photography Creative Director JEFF SANNER jeffs@hawaiibusiness.com Staff Photographer AARON YOSHINO Digital Digital Director RANDALL LIBRAMONTE randalll@hawaiibusiness.com • (808) 534-7531 Digital Media Specialist MICHELLE TAN michellet@hawaiibusiness.com Sales & Marketing Co-Publisher KENT COULES kentc@hawaiibusiness.com • (808) 364-5869 Account Executive PAM SAITO pamelas@hawaiibusiness.com • (808) 364-5897 Account Executive YONGCHAE SONG yongchaes@hawaiibusiness.com • (808) 228-5078 Senior Account Coordinator REBECCA BROOKING rebeccab@hawaiibusiness.com • (808) 534-7560 Events Manager MADELENE MARTINBIANCO madelenem@hawaiibusiness.com • (808) 534-7578 Events Coordinator OLIVIA DE SENA oliviad@hawaiibusiness.com Circulation circulation@pacificbasin.net Connect with us on social media: HawaiiBusiness HawaiiBusinessmagazine Hawaii Business is published by

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WEDNESDAY, SEPT. 25 – REGISTRATION AT 8:45 A.M. YWCA Laniākea | Elizabeth Fuller Hall Join our Best Places to Work industry experts, for a conversation on their top tips for attracting and keeping top talent.

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BY JA NIS MAGI N M E I E RDI E RCK S

H

ONOLULU’S CONDOMINIUM MARKET IS STARTING TO SHOW THE EFFECTS OF SKYROCKETING INSURANCE RATES FOR HOMEOWNERS ASSOCIATIONS: The

number of condo sales in June was down nearly 25% from June 2023, even though more units were for sale than at any time in the last three years.

Disasters like hurricanes and wildfires in the U.S. and around the world – including the Maui fires a year ago – have driven up home insurance rates here and elsewhere.

As a result, many Hawai‘i condominium associations have seen the prices of their master insurance policies increase 300% or more in one year, and some have seen an extraordinary 900% to 1,300% increase.

An estimated 400 condo associations on O‘ahu have elected to carry less than 100% replacement coverage on their master insurance policies, which means they won’t have enough money to rebuild if their properties are damaged or destroyed in a hurricane or other disaster. Some associations have secured insurance coverage on the pricey secondary market, but that means condo owners must deal with higher maintenance fees or assessments to pay for it, in addition to the premiums on their individual homeowners insurance known as HO6 policies.

Local banks, in most cases, won’t take the risk to lend on units in underinsured buildings. That makes it difficult, if not impossible, for buyers without access to large amounts of cash to buy condos in those buildings and puts sellers in a similar pickle.

Some buyers have canceled sales after going into escrow because they weren’t able to secure their mortgages.

“My intuition is we’re going to definitely see this reflected in the market in the next six months,” says Fran Gendrano, president of the Honolulu Board of Realtors.

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Condo Insurance Crisis Now Affecting Sales The biggest impacts are in Waikīkī and Makiki-Mō‘ili‘ili, where sales in June are down 48% and 38%, respectively, from June 2023. Both areas are home to lots of underinsured, older condo buildings.

ORIGINAL PHOTO COURTESY:MARIYA OLIYNYK UNSPLASH.COM

MAKIKI-MŌ‘ILI‘ILI AND WAIKĪKĪ SALES

The impact is already starting to show in the board’s monthly reports. The O‘ahu condo market, while battered by rising interest rates over the past two years, had shown some recovery in four of the first five months of 2024.

But then condo sales on O‘ahu dropped 24.5% in June, compared to the same month in 2023, and were down 25.7% from May. Larger drops occurred in neighborhoods with the largest concentrations of condo buildings on the island and many older buildings. In Waikīkī and Makiki-Mō‘ili‘ili, sales plunged 48% and 38%, respectively.

Islandwide in June, the decline in the number of condos that sold was largest among condos that sold for less than $700,000, according to Honolulu Board of Realtors statistics.

That month, the number of units sold for $500,000 to $599,999 fell 37% compared with June 2023, while the number sold for $600,000 to $699,999 dropped 48%.

Even sales of units that sold for less than the median price of $530,000 fell. The number of units that sold for $300,000 to $399,999 dropped 31.6% in June, and the number that sold for $400,000 to $499,999 declined by 24.4%.

TAKING LONGER TO SELL

At the same time, the number of condos on the market is rising, and those units are taking longer to sell.

The active inventory of condos for sale in June totaled 1,729; that’s 49.2% more than in June 2023 and the most condos on the market on O‘ahu since September 2020.

The average number of days on the market – from listing to contract – rose to 29 days in the first six months of 2024, up from 22 days in the same period last year.

It took less time to sell single-family homes on O‘ahu. For those, the average number of days on the market was 20 days in the first six months of 2024, down from 25 days in the first six months of 2023.

Some local credit unions are still providing some first mortgages and home equity lines of credit, or HELOCs, for condos that don’t carry 100% replacement coverage. But that’s on a case-by-case basis and comes at a premium. Big banks are not.

“We do not extend loans on condo buildings that fail to meet the standard of 100% replacement cost coverage,” Alan Fentriss, senior VP and director of home loans at American Savings Bank, said in an emailed statement. “We’ve got many prequalified buyers looking to buy condos, but it’s unsafe for them to do so if the buildings aren’t adequately insured.”

Gendrano, who is also principal broker at KFG Properties Inc., says some mainland lenders still write mortgages here – but that may not be the case for much longer.

that they might not have considered otherwise, Takesue says.

“One thing I am seeing is in areas where there are new projects, they’re fully insured,” he says, citing units in the newly built condo Ililani in Kaka‘ako. (Locations is the exclusive project broker for those units.)

“We’re seeing some migration from resales to the new projects.”

Takesue advises sellers or their agents to order their condo documents before listing condos for sale, so they can inspect the insurance summaries and know up front about any problems for potential buyers seeking mortgages. Those documents are typically ordered for buyers after units are in escrow.

While experienced agents already look for red flags ahead of listing, the insurance issue adds another layer to the due diligence, he says.

DEFERRED MAINTENANCE ALSO AN ISSUE

SEEKING GOVERNMENT’S HELP

Chad Takesue, chief sales officer at Honolulu real estate firm Locations, says deferred maintenance on older buildings is compounding the problem. Buildings that have put off such projects as replacing aging pipes or drain lines are seeing their insurance premiums skyrocket as well.

“Some condos have done a good job of budgeting for that,” Takesue says. “Part of it is they may have budgeted but with inflationary costs, if they’re not reevaluating their budgets to the new cost structure, they’re short.”

Hawai‘i’s salt-air environment can play havoc with concrete spalling and cause pipes to rust before their estimated useful lifespans, which can accelerate the need for a project before an association has budgeted for it, he says.

“You see good condos implement annual inspections and plumbing inspections for each unit, (to see) if there are any leaky faucets,” he says. “Some condos have found ways to implement measures to minimize that.”

All of this is prompting some buyers to look at newer condo buildings

Gendrano notes that the condo insurance problem is not unique to Hawai‘i. Condo communities in Florida, Maryland and California have also been hit with skyrocketing premiums.

She says the government needs to do something because affordability is being wiped out by the higher insurance premiums and limited access to mortgages. Differing bills that addressed the issue (House Bill 2686 and Senate Bill 3234) passed in their chambers this year, but a conference committee in the final days of the legislative session failed to find a compromise.

House Speaker Scott Saiki didn’t rule out a special session to reconsider the issue, but at this point there seems to be little momentum to call lawmakers back before January.

“We have to solve the problem. It’s not about just moving the property,” Gendrano says. “There’s a big looming issue. I don’t want the new buyer or the new owner to inherit this issue without anything in place, any sign that it is going to improve.”

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HAWAI‘I Senior attorneys from four top firms discuss important changes in law that affect their clients, the impact of AI and other technologies, and the workplace changes demanded by a new generation of lawyers.

IMPACT OF NEW LAWS AND REGULATIONS Q: WHAT ARE THE BIGGEST RECENT CHANGES IN LOCAL REGULATIONS AND LAWS THAT AFFECT YOU AND YOUR BUSINESS CLIENTS? WAGNILD: One is the federal Corporate Transparency Act

that went into effect at the beginning of this year. Congress explained that the law’s aim is to prevent money laundering and the financing of terrorism. Disclosures made pursuant to the Act are not made public. Almost all of our clients – we do a lot of real estate, business, and construction work – are acting through some entity, even if it’s a single member LLC. Most of these entities are required under the Corporate Transparency Act to disclose information to the federal government about their ownership

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THIS CONVERSATION HAS BEEN EDITED FOR LENGTH AND CLARITY.

PARTICIPANTS IN THIS ROUNDTABLE DISCUSSION:

CHRISTINE KUBOTA, DAMON KEY LEONG KUPCHAK HASTERT

CRAIG WAGNILD, LUNG ROSE VOSS & WAGNILD

JOEL KAM, MCCORRISTON MILLER MUKAI MACKINNON

JOSEPH STEWART, KOBAYASHI SUGITA & GODA

MODERATOR: STEVE PETRANIK, HAWAII BUSINESS MAGAZINE

LAW EVOLVES and their beneficial ownership. In the past, you could set up a company and no one would know who owns it.

It’s not a difficult process, but a lot of people are not aware of the Corporate Transparency Act or its requirements. Companies that were formed before this year have until Dec. 31 to make that filing. For those entities formed this year, the owners have 90 days after they’re formed to submit a filing. And for those entities formed after this year, they must submit their filings within 30 days of formation.

We are also gearing up to address noncompete clauses as they are becoming unenforceable in many cases. We expect that is going to affect many of our clients’ agreements.

projects were developed and approved when interest rates were lower. The selling price of the affordable units are set by the government. And because of higher interest rates, it’s very difficult for individuals who meet the income qualifications to afford the affordable units at those prices.

They’re too expensive now because interest rates have gone up. It’s unclear how it’s going to work out.

KAM: One continuing transformational effect in real

Q: OTHER CHANGES IN REGULATIONS AND LAWS?

estate – especially in the Ala Moana-to-Kapi‘olani corridor – is rail. Because of the area’s proximity to rail, regulations allow developers to realize higher FARs (floor area ratios) – build bigger and higher buildings with more floor area than was previously available. This continues to have a profound impact on what exists along the Ala Moana-to-Kapi‘olani corridor and what will be done in the future.

And when these projects are built, they’re required to add to the affordable housing inventory. We’ve helped clients acquire these affordable housing units and these units can be in areas previously unavailable to the clients. But now we are seeing kind of a weird dynamic: Some of these

Q: ARE PEOPLE PAUSING THEIR PROJECTS HOPING THAT INTEREST RATES WILL GO DOWN? KAM: There’s hesitation but we see optimism that interest

rates are on the verge of dropping. And the development timeline in Honolulu is so long that there’s little benefit to pausing. Our clients have not gone full stop, although there are projects along Kapi‘olani Boulevard that appear to have gone full stop. I’m not sure what’s going on with those.

KUBOTA: I’ve noticed a massive delay in government

responses. Permits have always been slow, but now IRS filings are so slow and getting an EIN number (employer identification number), for example for foreigners, takes so long it is difficult to open bank accounts. The IRS bigwigs tell us they’re so sorry but they are short of employees. Of course, a lot of employers have trouble finding people.

STEWART: From a litigation standpoint, I’m most interested

to see the effects of the Chevron deference ruling from the U.S. Supreme Court. (In the past, courts generally deferred to government agencies that interpreted ambiguous laws;

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but the Supreme Court ruled that judicial deference to agency rulemaking was incompatible with the courts’ fundamental duty to interpret the law.) Will that ruling mean, for example, that developer clients will challenge regulations more? That’s still up in the air, but I’m really curious about that.

In another issue, Hawai‘i courts overall have redefined in a number of cases – not just environmental cases but overall – the concept of standing, meaning who can bring a lawsuit. It’s been broadened so now it doesn’t take a whole lot to be able to bring a lawsuit to try to stop a development or enforce an environmental regulation or whatever.

Something else: In litigation, our firm is more often on the defense side and they want quick resolutions if they feel unjustly sued. Our state courts have been historically hesitant about granting any kind of summary disposition, meaning to rule early; they tend instead toward saying, “Let the case go to trial.” What made judges even more hesitant about granting anything in the early stages of a case was the Hawai‘i Supreme Court’s decision in 2023 that partly overturned a trial court’s $800 million judgment in the Plavix case. (Plavix is a blood-thinning drug.)

So we’re seeing an even greater tendency for things to end up in alternative dispute resolution, because getting an early summary judgment is harder.

Q: SO THERE’S A TREND TOWARD MORE MEDIATION AND ARBITRATION? STEWART: At this point, you almost have to assume medi-

ation. The only time mediation might not make sense is if it’s a pure binary decision like a project gets developed or not. But in any commercial context where it’s two business parties – anything like that – mediation is almost inevitable, and the decision is simply: Do we set earlier or set it later? It’s a routine part of the litigation steps.

KUBOTA: Probate Court and Family Court are both very

busy and take more time.

KAM: And Land Court has been slow for decades but is

getting slower. It used to be we could process a subdivision through Land Court within about six months, and now it takes longer than a year for a simple subdivision. A few years ago, a lot of landowners who were interested in development were deregistering their property from the Land Court system. It used to be that you could do that in about six weeks, maybe two months. Now it’s taking longer. It’s turned into a big problem.

STEWART: From a litigation standpoint, the trial courts

are getting back on track. Trials essentially shut down for 2020, and that pushed all the 2020 trials into 2021 and the 2021 trials into 2022. We’re still feeling the effects, but they’re getting back on track from a trial date standpoint.

You can get an initial trial date, usually in 18 months, which is not atypical pre-pandemic. But to some extent that backlog has been pushed up to the appellate courts. I just had an Intermediate Court of Appeals decision that took seven years.

AI AND NEW TECHNOLOGIES Q: HOW ARE AI AND OTHER NEW TECHNOLOGIES TRANSFORMING THE LEGAL PROFESSION IN HAWAI‘I? KUBOTA: I don’t think lawyers will ever rely on it. It’s great

to use as a base, but it’ll never replace human thinking. I see the associates using it a lot but I’m old school and never used it. I still use books.

KAM: “Transforming” suggests a foundational shift in the

way lawyers practice and I don’t think we’re seeing that yet. Maybe one day, but definitely not yet.

AI is being incorporated into the tools lawyers use to provide service like legal research. AI can help lawyers perform research better, faster, more efficiently.

I have noticed some clients trying to use AI to supplement legal services from licensed attorneys – and less informed clients sometimes think that AI can substitute for CRAIG WAGNILD, LUNG ROSE VOSS & WAGNILD

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CHRISTINE KUBOTA, DAMON KEY LEONG KUPCHAK HASTERT

those services. We don’t think that’s a good idea. I have reviewed things some of our clients have sent us that are generated by AI and for complex legal analysis, it’s not there. It’s not even close.

Maybe one day it’ll be sophisticated enough to provide reliable advice – I have my doubts – but we’re definitely years if not decades away from that.

STEWART: We use AI while reviewing documents – pre-

dictive coding, things that are evolutions of what we’d already been doing, like search terms. The technology improvements have made our practice much more efficient; this will continue to do that. It’s valuable because that ultimately results in cost savings to the clients.

However, when we’ve tested it for things like drafting substantive things, the quotes sometimes aren’t accurate.

Some things are just flat-out made up. At this point, I wouldn’t put it even close to the level of summer law clerk, who I also wouldn’t rely on.

Sometimes clients think it might be a substitute for simple things like form documents, but what happens is that it works out fine when it works out. And when it doesn’t work out, you wish you’d spent a little bit of money to have a professional lawyer look at it the first time. All the time, people come to me and say, “I signed this thing and it says this, and I wish it said something else.”

WAGNILD: AI is already built into the legal research plat-

forms from Westlaw and Lexis. When starting research into a new area, it’s a tool that can be used effectively. The danger is relying on it, because there’s no discretion in what it pulls in and how it applies that information. It is also nondiscriminatory in weight of emphasis, jurisdiction and many other things attorneys consider as we decide how the law should be applied to a particular set of facts.

AI is not equipped to do that and I don’t think it will for some time.

You also mentioned other technologies. The pandemic brought videoconferencing into the mainstream for all kinds of meetings, including court hearings. That’s a huge step forward in time and cost savings because attorneys from Honolulu previously had to fly to the Neighbor Islands for hearings.

But there are cons as well. I was a litigator in a former life and in my experience, a lot of the important stuff that comes from those hearings happens before and after the actual proceeding with the judge in court. It’s the discussions between attorneys – planning and agreeing and starting to work things out. That does not happen when you’re attending a hearing via videoconference.

Another technology is text messages. Some clients want to text you, and we really don’t have a way of capturing and retaining that dialogue. I tell clients: Don’t use text or social media as a means of communicating with me.

CHALLENGES FOR YOUNG ATTORNEYS Q: HAS THE MOVE TO REMOTE WORK AND COMMUNICATIONS HURT YOUNG ATTORNEYS’ DEVELOPMENT? KAM: Remote work technology like Zoom and Microsoft

Teams has made us more responsive and efficient. The flip side, which is not unique to the legal profession, is balancing that with the need for in-person contact. For junior lawyers in their first five years or so, the mentoring and in-person contact with senior lawyers are especially important to their development. It’s important to be able to walk down the hall and bounce ideas off someone. It’s helpful in learning how to analyze things in the right way.

That’s difficult to do remotely.

So we brought everyone back to the office. There was resistance and we’re still experiencing residual effects of bringing everyone back. It’s an ongoing challenge and we’re constantly seeking the right balance.

WAGNILD: We saw a huge impact on our junior attorneys

during the beginning month or two of Covid and decided early on that we would bring people back as soon as we could. It was only after we had everyone back in the office that we learned other firms and businesses were having a hybrid conversation. While we generally want everyone in the office working together, if someone needs to be home, we accommodate that.

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A lot of the young people don’t know how to talk; they’ve texted all their lives, they even text to their parents.

You have to teach them how to talk. You have to sense people’s emotions and you can’t do that unless you’re talking to them. Lawyering is a service, and you have to know the other person.

Q: WE HAVE A SIMILAR PROBLEM IN THE NEWS BUSINESS. ON OCCASION, A SOURCE WILL INSIST ON AN EMAIL INTERVIEW AND NUANCE THEIR ANSWERS SO MUCH THAT THEY’RE LESS USEFUL. THAT’S WHY I DISCOURAGE EMAIL INTERVIEWS; THE NECESSARY INTERACTION BETWEEN INTERVIEWER AND INTERVIEWEE IS ABSENT. STEWART: That’s an exact issue in litigation. There’s a

JOEL KAM, MCCORRISTON MILLER MUKAI MACKINNON

But for the most part, we want everybody back for the very reason Joel articulated: the importance of being able to talk face to face and that interaction.

Videoconferencing isn’t the same. As senior attorneys, we can’t evaluate how associates are doing in the same way. We have an open-door policy in our office: Associates know they can just walk down the hall and stick their head in and talk to us. And there are lunchroom discussions. These kinds of things are, I believe, the key to the community we want to develop here – and frankly, I think, also to helping maintain the mental health of our employees.

Q: CHRISTINE, YOU WORK WITH A LOT OF FOREIGN CLIENTS. HAS YOUR COMMUNICATION WITH THEM CHANGED? KUBOTA: Well, they don’t come here anymore because of

the yen exchange rate (laughter) but I do talk to them a lot now over the phone. That part hasn’t really changed.

Our firm is like Joel’s and Craig’s: I want everybody in the office, though people can work from home two days a month. When I was an associate, I had lunch with somebody every day. We don’t do that anymore. It’s so important that we talk with each other and check in on each other. If I can see you, I can see stress. That’s so important.

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SEPTEMBER 2024

process called interrogatory when you can send written questions, and inevitably you get something back written by their lawyer that’s wordsmithed down to the precise thing. But you set a deposition with somebody and they’re right across the table, and you get their answers and ask follow-up questions. That’s where the real stuff comes up.

For those of us who already have client relationships formed, remote work doesn’t have as much of an impact, but it does on the next generation. Bert Kobayashi would drag me to meetings where I got to know the other younger person across the table, and we would form relationships. I think that is also lost in Zoom meetings, because you don’t get to know your contemporaries as much. You talk business on Zoom and then don’t really sit there and chat for 10 minutes, unless you already know that person.

In one example, I was talking to a client and after business was done, we were chatting, asking, “How are you doing?” and they said, “I’ve got all this work I have to process through Land Court. I wish I knew somebody who knew something about Land Court.”

And I said, “I don’t know anything about Land Court.

But I do have people in my office who do.” It ended up being a big chunk of business. That doesn’t happen unless you make time to chat.

The bottom line is that having a personal connection with your client makes it more likely that they’re going to advocate for you to other potential clients and advocate to use you again.

Q: FROM WHAT I HEAR, EVERY PROFESSION HAS THAT ISSUE. STEWART: It’s a generational thing. We didn’t have those

means of communication when we were young. And I understand it’s easier to text somebody because you don’t have to deal with follow-up questions. I get the safety of it. But sometimes you have to put yourself out there. You

have to risk somebody asking you a question that you don’t know the answer to right away. That’s part of the process.

Trying to figure out how to train our next generation, to develop those skills, is a real priority we’re working on.

I’m saying to the associate, “Did you call that person?” and they’ll say, “I emailed them.” I’ll respond, “I know, but did you call them?” We’ve all had that conversation, I’m sure.

ATTORNEYS’ WORK-LIFE BALANCE Q: ANY OTHER ISSUES ON YOUR MIND? KUBOTA: A lot fewer people are going into private law

firms, I think because they are looking for a different balance of life and work. We’re looking for lawyers all the time. So firms have to adjust. Maybe we need to hire part-timers or adjust this work environment.

Q: IF THEY’RE NOT GOING INTO PRIVATE LAW PRACTICES, WHERE DO ALL THE LAW SCHOOL GRADUATES GO? KUBOTA: To the banks, in-house at companies, to Google,

Amazon, government.

STEWART: This latest generation of associates has done a

much better job than we did of demanding their vacations and time off, which is probably healthier in the long run.

We’ve hired seven associates in the last 12 months, with the idea that they’re probably not all going to work as many hours as an associate might have worked 20 years ago, but they each can provide tremendous value.

We focus on what is being done as opposed to what’s not being done. We’ve changed our requirements, like reduced the billable hours required by our associates. We also give them 50 hours of credit a year they can use toward their billable hours for things like professional development or mental health or things like that, and they’ve told us they appreciated that.

We pay for health club/gym memberships for our associates. We listened to our associates. And it’s been pretty good. We haven’t lost an associate to another firm in a while.

We needed to evolve and work with the next generation, because people are leaving the profession.

And that’s shown in the HSBA stats. (Hawaii State Bar Association statistics for 2023 show 876 active attorneys in Hawai‘i age 60 to 69 and only 614 age 30 to 39.) It’s seriously reduced. And we’re not going to get a huge influx of mainland lawyers, because the salaries they’re getting paid are ridiculously high.

WAGNILD: This is a very challenging time for private

law practices in Hawai‘i. We see fewer law school graduates interested in pursuing traditional private practice as a career. Law firm practice has historically been defined by long hours, late nights, high stress, and an unforgiving and unsupportive workplace where associates compete for a limited number of partnership opportunities. For many of us, that was the world we had to navigate.

But much has changed as all of our firms try to better address the needs of young attorneys and attract them to private practice. Hawai‘i needs good attorneys – attorneys who are critical thinkers, who have strong interpersonal communication skills, who can unravel and understand complex issues and problems, and who can help people come together and resolve disputes.

Good attorneys are problem solvers, and the key to solving problems is communication. This is a profession and a calling that I am proud to be a part of, and those of us practicing in law firms here in Hawai‘i want to see a bright future for the next generation of lawyers.

JOSEPH STEWART, KOBAYASHI SUGITA & GODA

H AWA I I B U S I N ES S

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N E WS M A K E RS D E S E RV E C R E D I T W H E R E C R E D I T I S D U E

COMME MOR ATE YOUR

HAWAII BUSINESS

ACHIEVEMENTS PRESERVE YOUR STORY WITH OUR MODERN AND MEMORABLE KEEPSAKES. W W W. N E W S K E E P S A K E . C O M / PA G E S / H AWA I I - B U S I N E S S

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SPECIAL ADVERTISING SECTION

PŌHAI NU‘UHIWA CAMPBELL

P

ōhai is a trust/ estates attorney at Cades Schutte LLP, focusing on estate planning, probate and trust administration, and estate disputes. Pōhai is a leader in the Hawaii State Bar Association, where she completed the Leadership Institute, and serves on boards for the Probate and Estate Planning and Elder Law sections. Pōhai prioritizes her community by volunteering with the Hawaii Estate Planning Council, Hawaii Women Lawyers and Hawaii Nature Center, as well as providing pro bono work for Pu‘uhonua O Wai‘anae. Pōhai has been recognized by the Empowering Oiwi Leadership Award, Best Lawyers Ones to Watch and PBN’s 40 Under 40.

Associate|7Years CADES SCHUTTE LLP

E M E RG I N G L E G A L

S T A R S

JARRETT A. DEMPSEY

J

arrett is a litigator focusing on healthcare law at Cades Schutte LLP. His recent representations include winning $2.3 million in forgery/employee dishonesty coverage for a non-profit servicing the adult disability community. Jarrett is currently O‘ahu Director of the Hawaii State Bar Association (HSBA) Young Lawyer’s Division. In this role, Jarrett led the expansion of the HSBA’s Legal Lines as volunteer legal hotlines for victims of the August 2023 Maui wildfires a week after they occurred, addressing document replacement, insurance, and landlord-tenant issues. He is listed in The Best Lawyers in America®’s Ones to Watch list and was a Fellow in the HSBA 2022 Leadership Institute.

Associate|7Years CADES SCHUTTE LLP H HAWA AWAIIII BBUUSSIIN NES ESSS

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SPECIAL ADVERTISING SECTION

EMERGI NG LEGA L STA RS |

JAI NATHAN C. YANG

O

ne of Cades Schutte LLP’s youngest partners, Nate has advised on over $1 billion worth of commercial finance transactions, including Hawaii’s largest Low-Income Housing Tax Credit (LIHTC) projects. Nate has provided pro bono assistance to the Business Law Corps, Legal Lines, Volunteer Legal Services Hawaii, and Pu‘uhonua O Wai‘anae. He speaks at events and mentors for the Center for Tomorrow's Leaders and Honolulu Police Community Foundation. Nate participates in industry groups Urban Land Institute and NAIOP Commercial Real Estate Development Organization and Iolani School and Duke University alumni initiatives. Nate is recognized by The Best Lawyers in America® and Super Lawyers® Rising Stars.

KEEP-BARNES

J

ai Keep-Barnes is an accomplished litigator at LRVW, excelling in complex construction, real estate, and land use cases.

His versatility spans jury and bench trials, class actions, personal injury suits, contract drafting and negotiation, and even appearing before the Hawaii Supreme Court. Keep-Barnes has successfully navigated multi-million-dollar litigation for his clients.

He nurtures legal talent through LRVW's hiring committee and jointly heads the summer associate program, in collaboration with Richardson School of Law, where he is an alumnus. Community is also important to Keep-Barnes, where he volunteers with the American Heart Association and Read to Me International alongside his wife.

Associate|7Years LUNG ROSE VOSS WAGNILD

Partner|8Years CADES SCHUTTE LLP

DAVID IMANAKA

D

avid Imanaka is an associate at LRVW, where he has proven to be a tremendous asset, representing clients in large, multi-million-dollar real estate and construction cases. His practice focuses on complex commercial litigation involving sophisticated parties, including landowners, developers, and general contractors, among others. He has successfully navigated several large-scale construction cases to resolution, and is a proactive mentor of the firm’s younger associates.

A proud alumnus of Iolani, USC, and Richardson School of Law, David actively gives back through Hawaii Youth Symphony board leadership, volunteer efforts with Ho'oulu Aina and FORxCHANGE, and contributions to ‘Io Society, BIA, and ULI.

Associate|7Years LUNG ROSE VOSS WAGNILD

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CAITLIN M. MOON

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riginally from West Maui, Caitlin is a Trusts & Estates attorney at Cades Schutte’s Honolulu office. She is a leader in the legal community, having served as Chair of the Elder Law Section of the Hawaii State Bar Association (HSBA) and participating in the HSBA Leadership Institute in 2023. Caitlin is dedicated to community service, serving on the boards of Aloha Tree Alliance and Hawaii Nature Center. She assists with pro bono estate plans and guardianships for Volunteer Legal Services Hawaii (VLSH), earning VLSH’s 2022 Outstanding Pro Bono Attorney award and will be honored at its 2024 Taste of Justice.

Associate|5Years CADES SCHUTTE LLP

SPECIAL ADVERTISING SECTION

KARI K. NOBORIKAWA

M

s. Noborikawa focuses her practice in commercial litigation. She currently serves as a delegate for the Young Lawyers Division of the Federal Bar Association. Ms. Noborikawa has been selected to the Hawaii Super Lawyers® “Rising Star” list in 2024, in the practice area of business litigation.

Ms. Noborikawa instills confidence in clients, judges, jurors and colleagues. She is fiercely intelligent, yet humble, her analysis is focused, and her presentation of complicated issues simple and clear. Ms. Noborikawa already performs at a level beyond her years, and she will be one of Hawaii’s leading practitioners.

Associate|6Years STARN O'TOOLE MARCUS & FISHER

SARA S.T. STRONA

LISA M. YANG

L

isa Yang is truly a rising star handling several civil trials as lead attorney.

She has taken on a number of leadership roles in the legal community and was the 2023 President of the Young Lawyers Division of the HSBA. Lisa is generous with her time as a mentor as well as helping non-profit organizations. Lisa has a diverse educational background graduating in the first class of Kamehameha Schools Hawaii in Keaau before going to Stanford University. She is also proud alum of the William S. Richardson School of Law and the Shidler College of Business.

M

s. Strona focuses her practice on commercial real estate transactions, leasing, business sales and acquisitions, and corporate law. “She is truly an expert in business and real estate law and demonstrates high integrity, collaborative skill, conscientiousness and dedication.” (Best Law Firms Client Comment).

Ms. Strona previously served as President of the ‘Iolani Alumni Association's Board of Directors and currently serves on the ‘Io Society Leadership Committee. She is a Founding Director of Commercial Real Estate Women of Hawaii (CREW Hawaii) and volunteers with Business Law Corps to provide pro bono legal advice to individuals and small businesses in the community.

Partner|9Years STARN O'TOOLE MARCUS & FISHER

Partner|9Years WATANABE ING LLP

H AWA I I B U S I N ES S

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SPECIAL ADVERTISING SECTION

NATHAN C. YANG

A

EMERGI NG LEGA L STA RS |

s a commercial and project finance attorney, what Nate enjoys most about practicing law is collaborating with clients: “Working side by side with clients to help them accomplish their goals, whether it be building their businesses or affordable housing, is exciting!”

Nate’s interest in business transactions began at ‘Iolani School where his favorite courses were Economics and Personal Finance. In high school, Nate and his teammates guided ‘Iolani to the finals of The National Economics Challenge. Nate went on to study economics at Pepperdine University.

Spending a summer in the International Finance Corporation’s Legal Department through Duke University School of Law cemented Nate’s passion for project finance. After completing his J.D. and LL.M. degrees, Nate knew he wanted to build a practice at the intersection of business, law, and the community.

Today, Nate is one of the few attorneys in Hawai‘i with legal expertise in financing and developing affordable housing projects, including those utilizing Low-Income Housing Tax Credits. As a legal advisor to developers, lenders, borrowers, investors, and property managers, Nate is grateful to have found a niche that allows him to participate in improving the quality of life for many Hawai‘i residents by increasing and strengthening the inventory of safe, stable and affordable housing.

Nate’s family was not surprised that he decided to attend law school.

He remembers, “My parents really cultivated my curiosity about understanding how things work while I was growing up.” This love of business and learning helps Nate identify creative solutions to facilitate smooth and successful transactions that help both clients and the community.

Partner|8 Years of practice CADES SCHUTTE LLP

CAITLIN M. MOON

D

espite her demanding career as a trusts and estates attorney and serving on two volunteer organization boards, Caitlin still finds time to give back to the community, providing guardianships for incapacitated adults and estate plans on a pro bono basis to those who might not otherwise be able to afford an attorney.

Caitlin will be honored at Volunteer Legal Service Hawai‘i’s 8th Annual Taste of Justice event, her second time being recognized by the association. “Volunteering in my community has always been extremely important to me, and using my skills as an attorney to help folks navigate confusing legal systems or concepts is so rewarding,” says Caitlin.

Caitlin strives to provide thought leadership to the public through frequent presentations and her former position as Chair of the Hawaii State Bar Association Elder Law Section.

“I am always impressed by Caitlin’s willingness to take action and guide clients through the estate planning process and trust administration,” said Rhonda L. Griswold, Chair of Cades Schutte’s Trusts & Estates Department. “Her positive demeanor always brings so much energy to our team and clients, and I am thankful to be able to call her one of my colleagues.”

Because Caitlin has a personal connection to the restaurant industry through her father's work in that space, she also has made a point to reach out to teach people in this industry and others, such as the Hawai‘i State Teachers Association, about trusts and estates. “I really enjoy educating people about the benefits of having an estate plan, especially because it is an area rife with misunderstandings.”

Associate|5Years of practice CADES SCHUTTE LLP 24

SEPTEMBER 2024

SPECIAL ADVERTISING SECTION

PŌHAI NU‘UHIWA CAMPBELL

P

ōhai never planned to become an attorney. Both of her parents were lifelong educators, so naturally, she set out to become a teacher too. After earning her B.S. in Early Childhood Education, Pōhai taught at Kamehameha Schools. While teaching, Pōhai observed her sister-inlaw attorney provide counsel at a Native Hawaiian organization, ultimately inspiring her to attend law school at the William S. Richardson School of Law. After law school and two clerkships, Pōhai began private practice at Cades Schutte LLP in the area of trust and estates law, through estate planning and trust administration. “Pōhai is a critical part of our team.

She has developed expertise on trust real estate matters and fiduciary issues, which she handles efficiently and with grace and aloha,” comments Trusts & Estates Department Chair Rhonda L. Griswold.

Pōhai also devotes time to pro bono work, and brought client Pu‘uhonua O Wai‘anae (POW) to the firm. POW consists of a community of 200 people living unhoused on the leeward-side of O‘ahu, who raised funds to purchase land and are now building a permanent home.

In her personal life, Pōhai is an accomplished hula practitioner and dedicates her free time to her family. Committed to environmental issues, she also co-founded a small business, Kaleimamo Hawai‘i, which sells cloth diapers and eco-friendly products. “I’ve connected with many wonderful people through Hawai‘i’s small business community, many of whom have turned into clients. Learning about entrepreneurship has strengthened my practice, increased my empathy for others, and helped me gain insight into managing a successful business. I’m grateful for it all.”

Associate|7Years of practice CADES SCHUTTE LLP

JARRETT A. DEMPSEY

“T

o the frustration of my friends and family, I always saw the gray areas and not just black and white,” Jarrett says when asked why he decided to become a lawyer.

Jarrett practices in the area of health care law litigation, ranging from medical malpractice to insurance reimbursement. He also advises health care clients on non-litigation matters including the formation of nonprofit entities and compliance with electronic record retention laws.

Outside the office, Jarrett is the Hawaii State Bar Association Young Lawyers Division (YLD) O‘ahu Director and Chair of its Legal Lines Committee.

Through his leadership role in the YLD, Jarrett, who was born and raised on Maui, recognized that the legal community needed to act in the wake of the Lahaina wildfires. He helped expand the Legal Lines program, an existing weekly information hotline, to provide a free Disaster Legal Hotline.

As a reward for his efforts in contributing over 100 hours of pro bono volunteer work, Jarrett was able to recruit 274 volunteers during August and September 2023.

Jarrett notes that he initially went to law school because he thought it was a “personality fit.” However, it has evolved into something much more profound, leading to meaningful connections with his law school peers and immense pride within his family. He recalls with a smile how his mother loves to share with everyone that her son is an attorney. As he continues broadening his career and advocating for access to justice, Jarrett’s dedication to understanding and bridging differences to create solutions remains a defining aspect of his practice.

Associate|7Years of practice CADES SCHUTTE LLP H AWA I I B U S I N ES S

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Fierce Warriors • Innovative Deal Makers • Strategic Wisdom

Our Firm Proudly Congratulates Our

Sara S. T. STrona Director

Sara Tsukamoto Strona is a Director with Starn O’Toole Marcus & Fisher.

She focuses her practice in the areas of commercial real estate transactions, leasing, business sales and acquisitions, and corporate law.

Ms. Strona has been selected to the Hawaii Super Lawyers,® “Rising Star” list in the practice area of Real Estate Law since 2020 and to The Best Lawyers in America,® Ones to Watch list in the practice areas of Business Organizations (Including LLCs and Partnerships), Corporate Law, and Real Estate Law since 2022. She also holds Martindale-Hubbell’s® highest possible rating of AV Preeminent®, given by her legal peers based on their knowledge of her work, knowledge, and integrity.

Ms. Strona previously served as President of the ‘Iolani Alumni Association’s Board of Directors and currently serves on the ‘Io Society Leadership Committee. She is a Founding Director of CREW Hawaii, an active member of NAIOP, and a regular volunteer with Business Law Corps, providing pro bono legal advice to individuals and small businesses in the community.

Clients shared the following about Ms. Strona: “She is truly an expert in business and real estate law and demonstrates high integrity, collaborative skill, conscientiousness and dedication. She responded quickly and with precision. We do not believe the sale of our business would have gone through without her because the buyer's counsel was missing in action. Sara was truly the glue. She met and far exceeded our expectations!”

“Our company has worked with many attorneys over the years but no one was as efficient, competent, on time, ahead of the game, caring as Sara Tsukamoto Strona. I greatly recommend her. I have never felt an attorney have my best interest in the way that she attended to us. If you want the best professional attorney on your side — hire Sara Tsukamoto Strona”.

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SEPTEMBER 2024

A L Aw CorporAtion

Exceptional Results • Creative Solutions & Robust Litigation

2024 Emerging Legal Star Recipients

Kari K. noboriKawa Litigation Associate

Kari K. Noborikawa is a Litigation Associate with Starn O’Toole Marcus & Fisher. She focuses her practice on complex commercial litigation, helping clients tackle legal challenges from pretrial all the way through trial. She has experience assisting clients in a wide variety of matters, including contractual disputes, partnership disputes, real property disputes, and disputes that touch on nuanced areas of Hawaii law, such as eminent domain law, state environmental law, and state condominium law.

She is admitted to the Hawaii Bar and the United States District Court for the District of Hawaii.

Ms. Noborikawa earned her Juris Doctor from the George Washington University Law School, graduating with honors. Prior to joining the firm, she spent several years as a litigation associate at an Am Law 10 firm in Washington, D.C., where she worked on a variety of complex commercial cases in federal and state courts across the United States, as well as government investigations and matters involving congressional oversight.

Ms. Noborikawa has been selected to the Hawaii Super Lawyers,® “Rising Star” list in 2024, in the practice area of business litigation.

Ms. Noborikawa currently serves as the Younger Lawyers Chair for the Federal Bar Association’s Hawaii Chapter, and she was a Hawaii State Bar Association Leadership Institute Fellow in 2023. She also volunteers at the Honolulu Access to Justice Room to provide pro bono legal advice to those in need.

The firm shared the following about Ms. Noborikawa: “Ms. Noborikawa instills confidence in clients, judges, jurors and colleagues. She is fiercely intelligent, yet humble, her analysis is focused, and her presentation of complicated issues simple and clear. Ms. Noborikawa already performs at a level beyond her years, and she will be one of Hawaii’s leading practitioners”.

REAL ESTATE & BUSINESS LAW • COMMERCIAL LITIGATION PACIFIC GUARDIAN CENTER, MAKAI TOWER | 733 BISHOP STREET, SUITE 1900 HONOLULU, HAWAII | 808.537.6100 | WWW.STARNLAW.COM

H AWA I I B U S I N ES S

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BY ST E V E P E T RAN IK | P H OTO AAR ON YOSH IN O PHOTO COURTESY: THE QUEEN’S HEALTH SYSTEMS

The longtime health system executive says financial sustainability is essential because Queen Emma’s mission can’t be fulfilled without money.

QUEEN’S

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NEWCEO JASONCHANG

Supporting employees is also crucial, and one way to reduce their stress is by adding ER capacity, which is happening at the Downtown and West O‘ahu hospitals.

The best part of his day: “Walking the halls and talking to people.”

J

ASON CHANG SERVED FOR NINE YEARS AS CHIEF OPERATING OFFICER, EXECUTIVE VP AND THEN PRESIDENT AT THE QUEEN’S HEALTH SYSTEMS.

Then on July 12, Jenai Wall, chair of the system’s board of trustees, announced that Chang would take over as CEO. Immediately.

Jill Hoggard Green, hired as CEO in 2019, was out and Chang was in.

“The board extends its heartfelt mahalo to Jill for her dedicated service and leadership over the last five years,” Wall said in a written message to the Queen’s leadership team that did not explain the abrupt transition.

In the weeks after Chang’s responsibilities changed overnight, he had few openings on his calendar and twice had to reschedule my interview. But he smiled frequently and showed no signs of stress when I eventually sat with him in his old office (he had not yet moved into the CEO’s office), a room lined on one side with pictures of his wife and three children and on another with a large picture of a beautiful Kaua‘i waterfall.

Though he was born in Fresno and spent his early career in California and Texas, Hawai‘i is now home for him and his family. “We fell in love with Hawai‘i. God willing, I want to retire here,” he says.

Following is a condensed, lightly edited version of my exclusive 40-minute interview with him.

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Q: WHAT ARE YOUR SHORT-TERM AND LONG-TERM GOALS FOR THE QUEEN’S HEALTH SYSTEMS? LET’S START WITH SHORT TERM.

I think the most immediate thing is we need to stabilize our financials. Not just here, but health care around the nation. The last two years have been really challenging.

Costs have gone up with inflation.

There’s wage increases among our regular staff and our physician staff. I can’t just raise prices. It’s basically fixed pricing.

So you have to figure out how you can be more creative within.

And the needs for access to care for the most vulnerable patients,

JASON CHANG PHOTOGRAPHED ON THE HELIPAD OF THE QUEEN’S MEDICAL CENTER ON PUNCHBOWL STREET (INSET), WHERE SOME PATIENTS NEEDING URGENT CARE ARE FLOWN IN.

mission, when they saw 70% of the native-born population dying over their lifetime because of disease. And so they went door to door to raise funds, founded a hospital right here on this campus, the Manamana property.

And that’s why there’s this aura when you walk across this campus – that legacy is now our job.

Q: WHAT ABOUT LONG-TERM GOALS, MAYBE FIVE, 10 YEARS FROM NOW?

I think that there’s a lot of opportunity for Queen’s to expand our reach. We have hospitals on O‘ahu, a hospital on Moloka‘i and a hospital on the Big Island. And now we have a medical group that’s dispersed around, but mostly in the same places.

We’re not on Kaua‘i or Maui, we don’t have a presence over all the Big Island. There are rural communities where people are not getting care, preventive care, cancer care, cardiac care.

Long term, I think we can use technology, we can expand our footprint, we can build culturally sensitive care that communities around the state embrace, so we become the true health care system for the entire state of Hawai‘i.

patients with behavioral issues or homelessness issues – that’s not slowing down. In fact, it’s actually increasing.

So how do you take care of patients that need us the most, yet still be financially sustainable?

There’s a very fine balance and that margin that used to be there, it’s gotten tighter.

Sustainability is the first thing.

Got to take care of our people, that’s the second-most important thing.

Our staff. We have really loyal people here. If you’ve ever walked through the hallways and talked to any one of them, you’ll feel that aura of living and working for the queen. The values are aligned.

That’s special. I’ve worked in California and Texas and you don’t get that same feeling. People are here to take care of their community, people are here because of the mission. So we have to make sure they feel valued and know there’s a future for them at Queen’s.

We just celebrated 165 years this year and largely our mission hasn’t changed. Our job is to fulfill the intent of Queen Emma and King Kamehameha IV: to provide in perpetuity, quality health care services to improve the well-being of Native Hawaiians and all the people of Hawai‘i.

One hundred and sixty-five years ago, that’s what they set out as the

Q: ONE PROJECT YOU RECENTLY LAUNCHED WAS THE AUKAHI CENTER, WHICH COLLECTS DATA TO HELP MANAGE PATIENTS THROUGHOUT THE QUEEN’S HEALTH SYSTEMS.

That is a special project to me. The name Aukahi is fitting because it means water rolling down a mountainside, converging and flowing into a larger stream. I feel the data that’s flowing through this command center is exactly that. Information about patients in our hospitals, patients that need to be transferred, wanting to see a doctor or get an MRI. Aukahi is like an air traffic control center. We can oversee things that we’ve never been able to see in real time before.

Say a patient needs an MRI, a cardiac consult and physical therapy before they can go home that day; we H AWA I I B U S I N ES S

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PHOTOS COURTESY: THE QUEEN’S HEALTH SYSTEMS

can see that and assign a cardiologist, then get that patient into an MRI, and then get that physical therapist there so the patient doesn’t languish in the hospital longer than they need to. It helps move people through the system.

We can do other things like remote patient monitoring. We can see if a patient’s diabetes is becoming uncontrolled, call them and say, “You need to see your doctor,” before they end up in the emergency department. Aukahi is the first of its kind in Hawai‘i.

I think the piece that will add to it is the ability to dispatch the state’s helicopter system – getting patients from a Neighbor Island to a destination they need as expeditiously as possible.

Q: QUEEN’S IS TAKING OVER THE DISPATCH FUNCTION OF MEDEVAC HELICOPTERS ON MAUI THIS SEPTEMBER, BUT QUEEN’S IS NOT ON MAUI. WHY TAKE ON THAT CONTRACT?

It’s us dipping our toe into dispatching the helicopter. There’s one helicopter now and we will learn how to dispatch this helicopter safely – getting a patient from Maui to the next destination they need. It could be within the Queen’s Systems, it could be to a different system. Essentially, we’re doing something good for everybody.

There will be more helicopters in the future, but let’s start with one, and then it’ll grow to three, and then we’ll go to five and seven. That’s the way we’re partnering with EMS to get patients to and from places as quickly as possible.

Now, if you get into a car accident on the Big Island, the ambulance picks you up, takes you to the nearest hospital, they stabilize you, put you back in the ambulance, drive you to the airport, fly you to O‘ahu. You get picked up by the ambulance, they drive you here to The Queen’s Medical Center. What if the heli-

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THE MAIN BUILDING OF THE HOSPITAL AROUND 1898. BELOW, KING KAMEHAMEHA IV AND QUEEN EMMA WENT DOOR TO DOOR TO RAISE FUNDS FOR THE ORIGINAL HOSPITAL.

copter picks you up at the crash site and flies you here? Then you’ve cut three, four hours.

For patients that have heart attacks, strokes, trauma, this could be the difference between life and death or not having quality of life.

Q: LET’S TALK ABOUT ONE OF YOUR BIGGEST CHALLENGES: STAFFING. IT’S ALWAYS BEEN HARD FOR HEALTH CARE TO FULLY STAFF, THEN THE PANDEMIC AND THE RETIREMENT OF BABY BOOMERS MADE IT HARDER.

One of our biggest challenges over the last three, four years has been recruitment. And it’s not just nursing. But we’re trying to partner better with universities, community colleges, high schools, get people interested in health care, show them that you don’t just have doctors and nurses in a hospital. There are hundreds of different jobs we need.

What we haven’t done in the past is hire them without any experience. In the past, if you are clinical especially, we wanted you to get three years of experience.

The risk is that, nurses in particular, go to the mainland and never come back. So let’s give them a job. Provide protected time for them to train, get oriented, be safe, and then let them fly and give them career opportunities to grow.

If you want to be a cardiac nurse or ICU nurse or surgical nurse, they can see the path within the organization. We’ll take that journey together.

Security is another area having challenges finding qualified people. But you come in with us, get a few years under your belt and there’s a career ladder for you to step up and get more competency.

Maybe your aspiration is HPD or with Honolulu Fire. This could be that career ladder to you, maybe not just within the organization, but helping provide the security we need today.

Q: WHAT ARE YOUR OTHER CHALLENGES?

Access. What we’re living through today, we didn’t anticipate. We knew there was going to be more patients, more need for diagnostic imaging and doctors, but the pandemic accelerated it. Now we are seeing our hospital census in the range of 102 to 105% of capacity. And the patients are sicker.

We need to figure out ways we can use technology to be really smart about how to get a patient through the acute part of the health care system so they can transition to post-acute. We have partners in the community that they can move to, because as the quaternary facility (where patients receive the most advanced and specialized level of medicine), we need to be ready for the sickest patients.

Our community hospitals are also running full. Queen’s Medical Center-West O‘ahu is now seeing nearly 185, 186 patients a day in the emergency department. It’s just a hair behind the Queen’s Medical Center-Manamana (the original Punchbowl Street facility), which is the trauma level-one emergency department.

It’s a big challenge. Our teams have been fantastic. You walk in, you would never know that they were under such stress. But we know they are. So how can we help alleviate the working environment challenges?

Step number one includes building more facilities. West is going to add 48 beds to their emergency department. We’re expanding the emergency department here at Manamana. That helps relieve some of that pressure.

Making sure everybody on the team knows the path we’re on. Make sure they know, “This is the plan and we’re going to walk this plan arm in arm.” Then give people an opportunity to have a voice. We’re not talking about unilateral decisions; we want open-door policies where people can come in and talk about the things they think should happen.

I’ve always believed that the best guidance comes from the people working on the front line; they know what’s happening, they can tell the temperature of the organization. And if they feel safe enough to tell it to you, all I have to do is listen. So you’ve got to have a great relationship with the people doing the work. The best part of my day is walking the halls and talking to people.

Q: WHEN YOU LOOK BACK AT YOUR CAREER, WHAT EXPERIENCES ESPECIALLY HELPED YOU PREPARE FOR THIS JOB AS CEO OF QUEEN’S?

I’ve had great mentors over my career, people who took time to help me grow and learn how to succeed in the hospital industry.

One amazing piece of advice early in my career was that I needed to get experience in the for-profit world. So I went from a Catholic

hospital to a for-profit, publicly traded health system in Texas and worked there for several years before I came to Queen’s.

It’s very different than the notfor-profit health care world. It’s predicated on making a margin.

You have shareholders, calls every quarter. I learned to advocate for the things that are important to that health system, to that hospital you’re running, which is an asset of the corporation. And if you sacrifice patient experience, patient access, trust in the community, then you diminish the value of that asset for that corporation. In that for-profit world, you learn to balance advocating for the services the community needs yet have enough margin for the parent corporation. It’s a very challenging environment – pressure cooker every day.

Coming to Queen’s allows me to use that business acumen and to be a good steward of resources, but at the same time, embrace the mission that Queen’s has been leading for 165 years. It gives me personal fulfillment, being able to do things for the community, plant roots and be here for the rest of my career, God willing.

Q: WHAT’S ONE OTHER THING HAPPENING AT QUEEN’S?

We’re looking at populations that are very vulnerable and seeking creative ways to care for them. Behavioral health is a good example. And we’ve learned we can’t do that by ourselves. Building partnerships with like-minded organizations has been tremendously fruitful.

Q: WHO ARE SOME OF THOSE PARTNERS?

CHANG AT THE AUKAHI CENTER, WHICH WAS ONE OF THE PROJECTS HE HELPED LAUNCH BEFORE BECOMING CEO. IT IS DESIGNED TO HELP MANAGE PATIENTS MORE EFFECTIVELY BY USING DATA COLLECTED THROUGHOUT THE QUEEN’S HEALTH SYSTEMS.

Kamehameha Schools, Lili‘uokalani Trust, IHS (the Institute for Human Services), St. Francis Healthcare System. There are so many out there.

And the more we partner, I think the better health care is going to be.

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S U S TA I N A B I L I T Y H E R O E S

S PEC I A L PRO M OTI O N A L S ECTI O N

Letter from President and CEO Alicia Moy COM M EM OR ATI N G ITS 120TH AN N IVERSARY TH IS YEAR , HAWAI ‘ I GAS HAS TH E D ISTI N CTION OF B EI N G ON E OF TH E OLD EST COM PAN I ES STI LL OPER ATI N G I N TH E IS L AN DS TODAY. We’ve always been defined by innovation: as a critical infrastructure

utility in the middle of the Pacific, our predecessors pioneered the use of new technologies to deliver clean, reliable energy to homes and businesses in Hawai‘i. Decades later, climate change is upon us—the challenge of our lifetimes. At Hawai‘i Gas, our employees are ready to meet that challenge head-on, joining many others charting a course focused on sustainability and resiliency for our island communities.

Hawai‘i Gas has led the nation in its use of hydrogen blended into the utility fuel mix on O‘ahu since 1974—decades before it became a favored clean energy solution. In 2016, Hawai‘i Gas diversified into utility scale solar with the launch of Waihonu Solar Farm, and in 2018, the company partnered with the City & County of Honolulu to operate the state’s first Renewable Natural Gas (RNG) facility at the Honouliuli Wastewater Treatment plant.

Our journey toward increasing production of locally produced, renewable energy continues.

This year, we announced two more renewable energy projects on the horizon: a renewable green hydrogen project and an RNG project using non-invasive bana grass, both of which mark significant forward movement on our path to decarbonization.

As climate change raises the stakes immeasurably for all of us, we stand with those in our community taking bold action, driving innovative solutions, and advancing the state’s climate goals. Our future depends on it.

Alicia Moy President and CEO

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S U S TA I N A B I L I T Y H E R O E S

▲ 2024 marks the 50th anniversary of Hawaiʻi Gas’ Synthetic Natural Gas Plant, a 24/7 operation built to serve greater Honolulu with a fuel mix that includes up to 15% hydrogen–the highest of any utility in the country.

For 120 years, Hawaiʻi Gas has been delivering good energy to the state of Hawaiʻi. As we look to the future, we’re committed to accelerating our clean energy transformation and advancing diversified renewable energy solutions—our kuleana as stewards of the environment and our island communities. Hawaiigas.com ▲ In 2016, the Waihonu Solar Farm opened as an expansion of Hawaiʻi Gas’ clean energy portfolio. It produces a combined 6.5 megawatts of electricity, enough to power approximately 1,000 homes.

⊳ In 2018, Hawaiʻi Gas began producing Renewable Natural Gas (RNG) through a partnership with the City and County of Honolulu’s Honouliuli Wastewater Treatment Plant on O‘ahu, the first of its kind in the state, with the potential to slash emissions equal to 400 cars yearly.

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BY STUA RT CO LE M AN COLEMAN SERVES AS THE EXECUTIVE DIRECTOR OF THE NONPROFIT WAI, WAICLEANWATER.ORG.

RECLAIMING LAND AND WATER A combination of traditional Hawaiian values and new technology could help protect communities from wildfires and restore water quality along our coasts

TREATED WASTEWATER FROM THE MAUI TOWN OF MĀ‘ALAEA IS CURRENTLY INJECTED INTO THE GROUND. BUT LOCAL LEADERS HAVE PROPOSED A FACILITY THAT WOULD MORE HIGHLY TREAT THE WASTEWATER AND THEN USE IT TO IRRIGATE A GREEN BELT OF TREES THAT WOULD CREATE A FIRE BREAK AND REDUCE RUNOFF INTO THE BAY.

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PHOTO: GETTY IMAGES

PHOTO: HAWAII TOURISM AUTHORITY (HTA) / TOMMY LUNDBERG, COURTESY: MAUI OCEAN CENTER

A

fter last year’s deadly wildfires in Lahaina, Archie Kalepa returned to the smoldering ruins of his hometown and immediately set up an emergency center at his home. Since then, the legendary waterman has dedicated himself to the recovery of Lahaina and its people.

He has also been thinking about what’s needed for long-term recovery.

In his view, it’s all about rethinking how we use our natural resources.

“Twenty years ago, the most precious thing in Hawai‘i was land,” he says.

“Today, the most precious thing on our islands is water.”

Kalepa’s family has lived in West Maui for nine generations and once presided over large taro patches that helped feed Lahaina when it was the capital of the Hawaiian kingdom. Water had been the essence of Lahaina, and there were so many canals and wetlands that it was once known as the “Venice of the Pacific.”

But that landscape was transformed over time.

Kalepa sees the increasing threats of wildfire caused by droughts, climate change and poor land management, and he believes that two solutions are needed: one based on indigenous wisdom and the other on modern technology.

The first involves bringing back the wise use of water that his Hawaiian ancestors practiced, which will help create local farms and restore the life of the land.

The second option involves the innovative reuse of treated wastewater. Millions of gallons of highly treated effluent are currently pumped into the ground via injection wells on Maui, without beneficial purposes. But a local lawsuit based in Lahaina that went to the U.S. Supreme Court is forcing counties to find more beneficial uses, such as fire suppression.

Together, traditional water management and modern wastewater reuse could help restore Lahaina and

HEALTHY CORALS CAN BE SEEN AT THE MAUI OCEAN CENTER IN MĀ‘ALAEA, BUT MOST OF THE CORAL IN THE NEARBY BAY HAS DIED.

protect all of Hawai‘i, Kalepa says.

But to understand why, he says, it’s important to understand how water resources were radically changed over the last two centuries and how treated effluent could help transform all of Hawai‘i’s future.

RISE AND FALL OF “KING CANE”

The Pioneer Mill Co. was created in Lahaina in 1860, and the sugar plantation became one of the most successful and longest running in Hawai‘i (finally closing in 1999). Sugarcane was profitable, and plantations sprung up all over the islands.

With the rise of what author John Vandercook called “King Cane,” a network of sugar barons would transform Hawai‘i’s economy, landscape and culture, and lead to the overthrow of the Hawaiian kingdom in 1893. During that time, plantation owners used thousands of immigrant workers to build a massive network of dikes and canals to divert streams across the state to their plantations to feed their water-hungry crops.

The redirected flow of water caused many perennial streams to dry up, leading to the decline of traditional taro farming and the livelihood of many Native Hawaiians like Kalepa’s ancestors.

The gradual decline of sugarcane production during the late 20th

century motivated many plantation companies to shift their focus to real estate development. Though no longer producing crops, they still retained the water rights. Streams that once fed taro farms were now irrigating golf courses, hotels and housing. Much of what was undeveloped was left as dry, fallow fields.

THREAT OF UNMANAGED GRASSLAND

Invasive grasses took over the fallow fields and became fuel for an increasing number of wildfires. According to Clay Trauernicht, a plant science and wildfire expert at UH Mānoa, wildfires across the state burned an average of about 5,000 acres a year for most of the 20th century. But in the last 20 years, that figure shot up to 15,000-20,000 acres per year and is still rising.

Nani Barretto, co-executive director of the Hawai‘i Wildfire Management Organization, has seen the damage that wildfires have done. She says most housing developments in Hawai‘i were neither designed nor built with fire prevention in mind.

“We did not have fires like we do now back when most of our subdivisions were built,” Barretto says.

Developers, architects and contractors in Hawai‘i weren’t focused on using fire-resistant building materials, landscaping or evacuation routes to reduce the risk of wildfires.

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She says we need to retrofit old developments and design new ones to counter the increasing threat of fires, which costs the state more money than hurricanes, flooding and tsunamis combined.

Hawai‘i must also better manage the fallow lands that fuel wildfires. “Until we rethink what we’re going to do with them,” Barretto warns, “the risk is going to return.”

The state’s largest private landowner, Kamehameha Schools, recently announced plans to expand agriculture and forestry operations on roughly 960 acres above Lahaina. KS also committed to creating new residential, commercial and recreational developments on about 190 acres, parts of which border neighborhoods destroyed by the fires.

“Our vision is to see Lahaina flourish again as a place of abundance,” said CEO Jack Wong in announcing the plans.

THE REBIRTH OF A STREAM

Before the advent of sugar cane plantations and large ranches, there were many perennial streams, native forests and wetlands that kept land in Hawai‘i fertile and moist. To illustrate the effects of modern development, Kalepa shares a story about his ancestral farmlands near Lahaina.

“We have some family land in Lahaina, and the stream was dry for 130 years during this Westernized time,” he says. It turned out that Kahoma Stream was managed

by Kamehameha Schools, and a coalition of community members approached the trust about restoring the stream. Kalepa advocated for restoring the water rights because he wanted to resume growing taro on his family’s lo‘i kalo.

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FAMED WATERMAN ARCHIE KALEPA, WHO HAS HELPED LEAD RECOVERY EFFORTS IN LAHAINA, SAYS HE IS ALSO COMMITTED TO FINDING WAYS TO REUSE WASTEWATER THAT WILL BENEFIT THE LAND, OCEAN AND COMMUNITY.

WILDFIRE DANGER ZONES ON MAUI FIVE YEARS BEFORE WILDFIRES DESTROYED MOST OF LAHAINA, A COLLABORATIVE PLANNING WORKSHOP LISTED THESE AREAS OF WILDFIRE HAZARD CONCERN. DARK PURPLE SHOWS THE AREAS OF HIGHEST CONCERN: LAHAINA AND MĀ‘ALAEA. BENEFIT THE LAND, OCEAN AND COMMUNITY.

SOURCE: HAWAI‘I WILDFIRE MANAGEMENT ASSOCIATION REPORT

After six years of negotiations, the community won the rights to restore the stream and, after much hard work preparing the land, it began flowing once again from mauka to makai for the first time in more than a century.

“Veins of the earth that are fertile with water, allow our earth to heal,” Kalepa said at a celebration with the community and Kamehameha Schools in 2017.

“That stream was dry for 130 years, but watching the transformation in the last six years blew me away,” Kalepa says now. What once seemed dead is now full of new life. He saw native fish come back and witnessed the coral reefs blooming again offshore.

“When you see the change come back from what was almost extinct, it really changed my perception,” he says. “I began to pay really close attention to the healthiness of the streams and the reefs.”

Restoring stream flows and water rights to local farms could transform the landscape and culture of Hawai‘i, Kalepa says. Along with reducing the amount of natural fuels for wildfires, he says, we also need to reimagine the ways we reuse our wastewater resources.

LAHAINA INJECTION WELLS CASE

While working with his community to restore Kahoma Stream, Kalepa also became involved with a local water quality lawsuit. Environmental groups had formed a coalition to stop Maui County from injecting treated sewage into deep injection wells at its Lahaina Wastewater Reclamation Facility.

The group formed the DIRE Coalition – standing for Don’t Inject, REdirect – to get the County to stop injecting treated sewage into the ground but instead to use the treated wastewater for more beneficial uses like irrigation or fire prevention.

After Maui County rejected their requests, Earthjustice filed a lawsuit on behalf of four nonprofits: Hawai‘i Wildlife Fund, Sierra Club-Maui Group, the Surfrider Foundation and the West Maui Preservation Association. (The writer worked for The Surfrider Foundation at the time.) The groups said the treated wastewater was polluting the near-shore ecosystem and seriously threatening water quality at Kahekili Beach.

Kalepa supported the cause and joined a separate complaint against Maui’s mayor to settle the case. “What’s killing our reef is these injection wells,” Kalepa says. “This is about our future … about us having healthy reefs, a healthy community, a healthy environment.” The county was pumping 3 million to 5 million gallons of treated waste into underground injection wells each day at the Lahaina facility. They tried to argue that the effluent wasn’t affecting the near-shore ecology; and even if it was, they weren’t directly responsible because the pipes weren’t connected to the ocean.

The lawsuit gained national attention and would eventually go to the U.S. Supreme Court.

TAPANI VUORI, PRESIDENT OF THE MAUI OCEAN CENTER, IS ONE OF THE LEADERS OF A PROPOSAL TO IRRIGATE A GREEN BELT OF TREES USING HIGHLY TREATED WASTEWATER. THE CENTER CAN BE SEEN AMONG OTHER BUILDINGS IN THE TOWN OF MĀ‘ALAEA AT UPPER LEFT IN THE PHOTO BELOW.

Earthjustice lawyer David Henkin argued the case in November 2019 and said the county’s logic was absurd.

“According to Maui County, a polluter can avoid the law by taking a pipeline that discharges waste directly into the ocean and cutting it 10 feet short of the shoreline,” Henkin said.

In spring 2020, the Supreme Court ruled in favor of Earthjustice and the environmental plaintiffs.

PHOTO: GETTY IMAGES

“Because the county forced us to go to the Supreme Court,” Henkin says, “we ended up getting a ruling that applies broadly across the country and makes it clear that polluters cannot avoid the Clean Water Act by using things like injection wells that then use groundwater as a sewer to transport pollution into the ocean.”

The Maui County Council has since committed to upgrading its wastewater infrastructure to a higher level of treatment and to reuse the treated wastewater for golf courses, agriculture and landscaping. The council also worked with the new Mayor Richard Bissen to pass Bill 52, which requires that all of the county’s wastewater be disinfected to meet Hawai‘i State R-1 reuse water standards by Jan. 1, 2039.

Earthjustice recently won a similar lawsuit against Hawai‘i County, saying their Kealakehe Wastewater Treatment Plant in Kona was polluting nearshore waters in Honokohau Harbor.

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THINKING OUTSIDE THE BOX

The reuse of treated wastewater for fire prevention is a relatively new concept, but it’s gaining ground. A promising new pilot project is being developed in Mā‘alaea, the second most vulnerable area for wildfires on Maui after Lahaina, according to a 2019 report by the Hawaii Wildfire Management Organization.

The harbor community, bordered by fallow lands that once grew sugarcane, has been repeatedly threatened by wildfires over the last 20 years.

Mā‘alaea has ten condo buildings, a few small businesses, a marina and the Maui Ocean Center. For decades, these buildings have been pumping millions of gallons of partially treated sewage waste into eleven injection wells along the coast. During that time, the water quality of Mā‘alaea Bay has deteriorated rapidly, and the EPA has listed it as an impaired body of water – one of hundreds across Hawai‘i.

The once thriving reefs off Mā‘alaea have declined from 78% coral coverage a few decades ago to a low of 8% currently. To visualize this decline, visitors can check out the Maui Ocean Center, which has the largest living tropical reef aquarium in the Western Hemisphere, to see what healthy colorful reefs look like. Then, a quick snorkeling excursion in Mā‘alaea Bay will reveal the gray rubblescape that remains. Without remediation, the area will continue to decline.

Motivated by the Lahaina Injection Wells case, community leaders at the Mā‘alaea Village Association (MVA) proposed replacing the injection wells with a decentralized wastewater treatment facility. The new facility would then use the highly treated wastewater to irrigate a green belt of trees around the community. The green belt would also create a fire break, wind break and a way to reduce erosion and runoff into the bay.

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ON BEHALF OF FOUR ENVIRONMENTAL NONPROFITS, EARTHJUSTICE SUED MAUI COUNTY, ALLEGING THAT ITS WASTEWATER TREATMENT SYSTEM WAS POLLUTING THE NEAR-SHORE ECOSYSTEM. LAWYER DAVID HENKIN ARGUED THE CASE BEFORE THE U.S. SUPREME COURT, WHICH RULED IN FAVOR OF THE ENVIRONMENTAL GROUPS IN 2020.

Momentum and support for the project are growing under the leadership of MVA board members Peter Cannon, a longtime resident and businessman, and Tapani Vuori, the president and general manager of the Maui Ocean Center. Applying on behalf of the community, the MVA group has received state and federal funding to do engineering and site planning for the green belt design, which would be a buffer zone between the community and the fallow cane fields.

“This could be a model for the rest of the state when we look at the cesspool situation for decentralized solutions,” says Vuori.

“It’s probably four or five times less expensive than centralized treatment facilities. We feel this is a much more cost-effective solution.”

As an example, the nearby subdivision of Maui Meadows has more than 700 cesspools that are discharging over 440,000 gallons of untreated waste into their groundwater each day. Instead of homeowners paying $30,000 to $50,000 each to convert their cesspools, the community could work with the Maui County Council

to create a more affordable, efficient and environmentally friendly solution.

Currently, local advocates John Laney and Caleb Harper, who live in the area, are working to create a sewer improvement district that could be financed by monthly payments. They are exploring decentralized wastewater treatment options, as well as a green belt to protect their community from future fires.

“We’ve got to think outside the box,” Kalepa says about the rebuilding of Lahaina. Along with restoring streams and converting old sugarcane fields into fertile farmland, he is also committed to “finding better ways to utilize our wastewater resources.”

Reusing treated effluent for irrigation of green belts could be a key component in preventing wildfires.

Kalepa says Lahaina and the state need to come up with a new plan to guide us into the future.

He believes that plan needs to be inclusive of all people but based on traditional Hawaiian values. “We live in a modern time, but we can still have these values that can keep our islands healthy and alive for the next 10 generations.”

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Nonprofit Protects the Northwestern Hawaiian Islands The Papahānaumokuākea Marine Debris Project saves critically endangered species by removing derelict fishing gear and plastic from the marine national monument

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PHOTOS COURTESY: ANDREW SULLIVAN-HASKINS

THE BIGGEST NET FOUND BY THE PAPAHĀNAUMOKUĀKEA MARINE DEBRIS PROJECT WEIGHED 11 TONS. THEIR TEAM MUST CUT THE HEAVY NETS INTO PIECES BEFORE LOADING THEM ONTO THEIR BOATS.

14 MILLION SEABIRDS BREED AND NEST ON THE LOW-LYING ISLANDS IN THE MONUMENT. OUT OF THE 22 SEABIRD SPECIES, 4 ARE ENDEMIC.

MARINE DEBRIS MAYHEM

T

HE HAWAIIAN ARCHIPELAGO EXTENDS FAR BEYOND ITS EIGHT MAIN ISLANDS TO INCLUDE 137 ISLANDS, ATOLLS AND SHOALS STRETCHING 1,591 MILES, from Kure Atoll in the northwest to Hawai‘i Island in

the southeast.

The Papahānaumokuākea Marine National Monument is a vast and remote area that encompasses the low-lying Northwestern Hawaiian Islands, atolls and surrounding sea.

“Most people don’t really know it’s even a part of Hawai‘i, let alone 75% of the length of the Hawaiian archipelago,” says Kevin O’Brien, founder and president of the nonprofit Papahānaumokuākea Marine Debris Project.

PMDP and its field team of 12 people are dedicated to the stewardship of Papahānaumokuākea, including removing marine debris and spreading awareness of the region’s importance.

Papahānaumokuākea became a marine national monument in 2006 and was designated a UNESCO World Heritage Site in 2010 for both its natural and cultural significance, making it the only “mixed” World Heritage Site in the U.S. “It’s very integral to so many Native Hawaiian narratives, like the realms of ao and pō and the birth of the Hawaiian people in the Hawaiian Islands,” O’Brien says, calling the region “as close to an intact ecosystem, I think, as you can probably find on Earth.”

More than 7,000 species live in the area, a quarter of which are found nowhere else in the world except there and adjacent areas. Of those species, 23 are listed by the U.S. as endangered, including the Hawaiian monk seal, humpback whale, green sea turtle and Laysan duck.

Though humans rarely set foot there, their impact can be found all over, with “enormous amounts of derelict fishing gear, specifically nets, all along the reefs within the monument and shorelines,” says Mark Manuel, who serves as the Pacific Islands regional coordinator for NOAA’s Marine Debris Program.

James Morioka, PMDP’s executive director, says commercial fishing is prohibited within the monument but that “doesn’t mean that people aren’t fishing right outside the boundaries.”

“These ghost nets, whether they’re abandoned from a commercial vessel or just kind of left adrift, they’ll continue to drift through the water column, and then they’ll land in Papa hānaumokuākea. … Animals will try to swim through and then they’ll get caught.”

Derelict nets also kill coral by snagging or smothering it.

Morioka says over time, these nets accumulate algae and other organisms. As a net gets heavier, it sinks and cements itself to the reef, which “prevents the coral from getting sunlight, or the nutrients they need from the water.”

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OVER 90% OF HAWAIIAN GREEN SEA TURTLES NEST AT FRENCH FRIGATE SHOALS IN PAPAHĀNAUMOKUĀKEA. PAPAHĀNAUMOKUĀKEA MARINE DEBRIS PROJECT DISENTANGLED NINE SEA TURTLES LAST YEAR, BUT PRESIDENT KEVIN O’BRIEN SAYS FAR MORE DIE BEFORE THEY CAN BE RESCUED.

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PHOTOS COURTESY: ANDREW SULLIVAN-HASKINS

MAP: U.S. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION, COURTESY WIKIMEDIA COMMONS

NOAA led large-scale debris removal from 1996 to 2021, Manuel says, during which it removed “about 2 million pounds of derelict fishing gear.” O’Brien and Morioka, who were both working for NOAA at that time, realized the removal work was probably going to end because “funding had dropped away to almost nothing,” says O’Brien. So they left NOAA and started PMDP in 2020.

“Now, pretty much all removal efforts in the monument are led by PMDP,” says Manuel.

The nonprofit has acquired its own boats, gear and facility. “We run it independently of our old group at NOAA, but it’s funded partially by them,” says O’Brien.

The most recent support was in the form of a $1.4 million NOAA Sea Grant award for innovation; other money comes from donations, which can be made at pmdphawaii.org.

A major PMDP project the Sea Grant is being used towards is developing a tool made specifically for cutting through ghost nets, says O’Brien. Existing tools can take an hour or two to cut through the nets; the goal is a tool that will do it in a

few minutes. It’s a project that’s so crucial, some members of the team work on it nearly full time.

“It’s going to be pretty amazing globally for helping with the issue,” O’Brien says.

PMDP is also working to develop sensors that, when mounted on drones, can detect nets in water faster than the current method, which involves people swimming miles a day to survey the reefs.

THE PLASTIC PROBLEM

About 90% of the marine debris they collect is nets, which are primarily made of plastic. But they also find and remove all other kinds of plastic. “Any kind of consumer product, plastic products, like plastic water bottles, shampoo bottles, anything you name, if it’s made of plastic and it floats, we pretty much probably found it,” says O’Brien.

Plastic is particularly alarming because it never fully decomposes.

“They say that plastic doesn’t break down, it just breaks up into smaller and smaller pieces,” says Morioka.

Plastic pollution poses a huge hazard to wildlife. As an example, Morioka points to seabirds that eat microplastics in the open ocean and then fly back to the islands where they feed their chicks.

“They’ll regurgitate the food plus the plastics into the chicks’ mouths. The chicks will then starve because they won’t be able to process the plastic in their stomach.”

The most recent PMDP mission spanned 19 days from mid-April to early May along the shores of Kuaihelani, aka Midway. The team gathered 70,080 pounds of marine debris from the area, which was taken to the H-Power plant on O‘ahu where it was incinerated to help generate power.

Over four years and eight missions, PMDP has collected 786,287 pounds of marine debris from the Papahānaumokuākea Marine National Monument.

“One of our goals is to really highlight this place, because it’s incredibly special and more people need to know that it exists. Hopefully, we can build a grassroots stewardship community around caring for this place,” says O’Brien.

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Kāne‘ohe Bay < Heʻeia Fishpond

Restoration of

He‘eia Fishpond Nears a Major Milestone

Paepae o He‘eia and its volunteers have spent decades removing invasive mangroves and rebuilding the fishpond wall. Now the nonprofit is getting closer to sustainable fish production while serving as a model for fishponds large and small statewide.

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SLATTED GATES LIKE THESE ALLOW YOUNG FISH TO ENTER THE POND FROM KĀNE‘OHE BAY, BUT AFTER THE FISH GROW, THE GATE KEEPS THEM INSIDE THE POND.

“We’re catching things like barracuda, pāpio and ulua that are predating on the more desirable fish that fishponds were built to grow, like mullet,” says Kawelo.

“We don’t sell those. It’s sort of just for staff (to eat) and we have fishing days that are open to the public, once a month, April through September.” The dates of their Lā Holoholo (family fishing days) and lottery sign-up are posted on their Instagram page, @paepaeoheeia.

ABOUT 2,000 VOLUNTEERS A YEAR

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PIONEER AND LEADER IN THE RESTORATION OF HAWAI‘I’S FISHPONDS – PAEPAE O HE‘EIA – IS GETTING CLOSER TO THE ULTIMATE GOAL OF SUSTAINABLE FISH HARVESTING.

The nonprofit founded in 2001 is dedicated to restoring He‘eia Fishpond at the edge of Kāne‘ohe Bay, says Executive Director Hi‘ilei Kawelo. Before 20th-century development, she says, there were about 30 fishponds in Kāne‘ohe Bay, “but many of them got filled in to make way for residential.”

He‘eia Fishpond escaped that fate; instead, it fell into disuse and disrepair after a 1965 flood destroyed parts of the wall and mangroves and other invasive species took over.

In the beginning, Kawelo says, the nonprofit was 100% focused on removing the mangroves because “you couldn’t see the horizon. You couldn’t see the fishpond wall, couldn’t see the water’s edge. It was just a wall of mangrove all the way around the pond.”

Staff and volunteers later started rebuilding the fishpond

wall, whose skeleton was still there. “All of the wall has been restored. … We’re almost done with the mangrove. We’re not done with the other weeds or the invasive jellyfish or the invasive seaweeds,” says Kawelo. They are also working to reduce the carnivorous fish that live in the pond and eat the more desirable fish.

“One to two more years of restoration and then we’re done, and the focus has to shift to food production,” she says.

“One day, we’re going to feed people from the pond. I don’t know how many people. I don’t think we’re going to be feeding 6,000 people, like this pond fed historically. But … during Covid we were able to feed our volunteers meals that were 100% sourced from the fishpond.” Feeding those participants would be a good start, Kawelo says.

They are already harvesting Samoan crab, an invasive species that they sell for $10 a pound about once a month via phone orders. Occasionally, the crab is a special at some restaurants.

Paepae o He‘eia has eight staffers, seven interns in the summer and volunteers year-round. Kawelo estimates the nonprofit gets “maybe 2,000 volunteers” a year; most come from school groups, but it also gets help from individuals, families and companies.

“If you come to volunteer at a fishpond, it’s not going to be easy.

But I think that people like that.

They leave feeling good about their contribution, even if it was the muddiest thing they’ve ever done in their life.”

From 1200 to 1600, Native Hawaiians built and maintained hundreds of fishponds (loko i‘a) across the Islands. But colonialism, cultural suppression, urbanization, natural disasters and invasive species led to their destruction or deterioration.

“Fishponds had a pretty simple purpose and function, and that was to cultivate fish and supply our people with protein,” says Kawelo. In its heyday, the 88-acre He‘eia Fishpond “could supplementally feed a population of about 6,000.”

And it was sustainable. “Hawaiian fishponds are Indigenous aquaculture systems. Indigenous aquaculture systems are designed using ‘ecomimicry’ principles, which means that they enhance

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the existing environment, rather than detract from it as commercial aquaculture systems often do,” says Kawika Winter, director of the He‘eia National Estuarine Research Reserve.

He‘eia NERR co-manages the He‘eia Fishpond alongside its partners, including NOAA, UH’s Hawai‘i Institute of Marine Biology and Paepae o He‘eia. He‘eia NERR’s research helps to identify and remedy fishpond problems.

“What is clear from a scientific perspective is that it takes more than removing invasive mangroves to make a fishpond as productive as it was in ancient times. Fishponds need certain environmental parameters to exist in the larger system to function properly. These include things like freshwater inputs, water quality and fishery health,” says Winter.

BUILT WHERE STREAMS AND OCEAN MEET

Hawaiian fishponds are strategically located where freshwater streams meet the ocean, creating brackish water environments.

“The idea is that fresh water mixing with salt water creates the (right) habitat for the phytoplankton, which feeds the fish,” says Kawelo. This eliminates the need for people to feed the fish, a common practice at most commercial fish farms.

He‘eia Fishpond’s 1.3-mile wall is made of volcanic rock and coral and is 11 feet wide at the top.

Interspersed along the wall are slatted gates, which allow small, young fish to enter the pond; those fish eventually grow so large they become trapped. The walls and gates also help maintain the right ratio of fresh water to salt water.

“It’s kind of like a recipe, right?

More fresh than salt (water), I’d say. You’re trying to cultivate the kinds of phytoplankton that the fish you want eat,” says Kawelo.

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THE POND WALL IS MADE OF VOLCANIC ROCK AND CORAL AND IS 11 FEET WIDE AT THE TOP.

She says fishponds were built “to cultivate primarily Hawaiian striped mullet,” commonly called ‘ama‘ama in Hawai‘i, “but it’s a “super diverse ecosystem.”

“You have the phytoplankton, but then you have all the little critters like the crabs and shrimp that keep things clean on the bottom.

You have filter feeders, like oysters and clams. You have macroalgae that other fish eat, like ‘awa, which is another fishpond fish. And then there’s other kinds of herbivores and other kinds of seaweed. And then you have omnivorous fish that eat shrimp” and other things.

THE BIGGER PICTURE

Paepae o He‘eia is part of a network of fishpond caretakers across the Islands called Hui Mālama Loko I‘a. Its coordinator, Brenda Asuncion, says it formed “out of this idea that people working to steward and restore fishponds could learn from and support each other.”

The network covers about 60 sites, including nonprofits, family-owned fishponds, and private properties such as resorts that have staff members who take care of fishponds.

“Some of the sites that are in the network have just identified that they have a loko i‘a and they want to be a part of a network where they can

meet and learn from other people.

And then some sites have dedicated staff or have community efforts that work on them,” says Asuncion.

Paepae o He‘eia is seen “as a leader in the network. More and more are growing and starting to do amazing things, too. But everyone still looks at them as a kind of pioneer organization, for sure.”

Asuncion emphasizes that fishpond restoration is not only about reinstating a sustainable food source: “When people talk about the function of fishponds, it really was to increase the abundance and ability to get food, but at the same time, there’s this whole rich understanding of how loko i‘a feed us in non-physical ways.

“They’re opportunities for us as people and community members and Hawaiians to connect to our lands and waters and have relationships with places that are meaningful to our lives.”

Winter shares a similar sentiment: “Restoring fishponds is not only for Native Hawaiians, and it is not only about holding on to the legacy of our ancestral past. Restoring fishponds is about reviving a way of thinking and being in Hawai‘i that allows us to thrive together with our environment, rather than at the expense of it. Many of our kūpuna have said that Hawai‘i can heal the world. This is a part of what they were talking about.”

S PEC I A L PRO M OTI O N A L S ECTI O N

WEST O‘AHU As the Leeward side grows and evolves, so too do the investments being made in workforce development and in health care. Meet some of the people and organizations driving positive change within the communities of West O‘ahu.

UH West O‘ahu New Tech PG.50

HDS gives Something to Smile About PG.54

Queen’s Medical Center-West O‘ahu Expands PG.56

Bend and Flex with Hawai‘i Pacific Health PG.59

Western Pacific Crane & Equipment PG.60

P R O U D LY P R E S E N T E D B Y H AWA I I B U S I N E S S M A G A Z I N E

S PEC I A L PRO M OTI O N A L S ECTI O N

Letter from the Chancellor of UH West O‘ahu TH E U N IVERS ITY O F HAWAI ‘ I–WEST O‘AH U welcomes you to join in our commitment of collaborative connectivity to further the West O‘ahu region and engage in community-building to strengthen our collective goals.

This year, we hosted the Onizuka Day of Exploration and the 13th Festival of Pacific Arts & Culture (FestPAC), and numerous other events to bring hundreds from the community together. We look forward to hosting even more to give our students the chance to broaden their knowledge base. We encourage this spirit of togetherness as part of the thoughtful and meaningful exchange of ideas, culture, and traditions that are so important to personal and professional development.

The extension of our campus and its endeavors in the community, along with the service, practicums, and projects that they perform as part of their scholarship, provide our students with diverse perspectives that are gained through such gatherings. This, in combination with traditional academic programs and specialized programs in emerging fields, demonstrate our commitment to addressing community needs and fostering industry professionals.

Community in the university. University in the community.

We welcome you to learn more about UH West O‘ahu and join us on our journey to elevate our community and those around us!

E mālama pono!

Dr. Maenette K.P. Benham Chancellor, UH West O‘ahu

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TECHNOLOGY PATHWAYS Increased engagement, access and equity are helping students move toward jobs in in-demand and emerging fields.

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Students collect data on native plants near a fishpond, with automated sondes in the background measuring air and water conditions. The students will use computational skills to analyze and utilize the data.

PHOTO: AES HAWAI‘I

BY KATHRYN DRURY WAGNER

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his year, the University of Hawai‘i-West O‘ahu (UHWO) has made several new partnerships that will help students master the skills essential in today’s digitally intensive, modern workforce.

For example, UHWO recently received an $800,000 National Science Foundation grant to explore a model for Native Hawaiian and other Indigenous-serving institutions to better prepare students and faculty to work with technological advances such as generative artificial intelligence (AI).

The project, rooted in pilina (relationship) and aloha ‘āina (love of the land), centers around the development of computational thinking within college courses.

“Engaging Indigenous communities in the conversation about and in the education of new emerging technologies is really important,” says Esther Widiasih, Ph.D., one of the project’s principal investigators and also the chair of the Mathematics, Natural and Health Sciences Division at UHWO. Digital literacy, mathematical skills and computational thinking skills can provide a pathway for Native Hawaiian students to higher paying STEM jobs.

“It’s not just about making sure everyone can use the latest tools like AI, but also about including their perspectives in decisions about how these technologies are used,” Widiasih says. “By listening to Indigenous voices, we can make better choices about the future of technology that respects their rights and values.” The project kicked off in August 2024.

In April, UHWO and AES Hawai‘i celebrated the launch of the company’s West O‘ahu solarplus-storage project in Kapolei. The project site is situated on 66 acres of UHWO’s mauka lands

WEST O‘AHU

COMPREHENSIVE CANCER CARE RIGHT IN YOUR NEIGHBORHOOD

The Queen’s Medical Center – West O‘ahu is committed to providing compassionate care for cancer patients in a healing environment that’s closer to home. Our nationally-recognized cancer care includes a broad spectrum of treatments and survivorship programs in a state-of-the-art facility.

From patient navigation to immunotherapy and more, we’re at your side every step of the way.

CALL 808-691-3035 TO LEARN MORE

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adjacent to Makakilo. It is AES Hawai‘i’s first facility to combine solar generation and battery energy storage on O‘ahu, and is expected to produce enough energy to reduce O‘ahu’s use of fossil fuels by 750,000 barrels of oil over the project’s lifetime.

The new project supports the university’s 2035 net-zero energy goals, provides a revenue stream to support higher education and emphasizes the importance for students to embrace a clean energy future.

Additionally, UHWO has been selected by Amazon as one of its local education partners for the company’s Career Choice program. Career Choice is an education benefit for Amazon employees that supports them in achieving higher education opportunities. Amazon was slated to open its new delivery station on Sand Island in early August.

Through Career Choice, employees can study at their own pace while earning credits toward an

associate’s degree, bachelor’s degree or academic certificate. Amazon pre-pays tuition to UHWO, which then provides the education and training designed to lead to in-demand jobs, especially in fields such as health care, transportation and technology. Amazon also reimburses employees for books and fees.

More than 160,000 Amazon employees globally have participated in Career Choice so far, and the company is investing $1.2 billion in the U.S. to upskill more than 300,000 employees by 2025.

“We’re thrilled to join Amazon as an educational partner and offer relevant degrees or certificates to Amazon employees looking to expand their knowledge base,” says UHWO’s chancellor, Maenette Benham. “Our combination of traditional academic programs and specialized, place-based offerings, both available online and/ or in person, prepare professionals for emerging workforce trends.”

An aerial shot shows the West O’ahu solar-plus-storage project in Kapolei.

PHOTO: AES HAWAI‘I

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PHOTOS COURTESY: HAWAII DENTAL SERVICE FOUNDATION

S PEC I A L PRO M OTI O N A L S ECTI O N

BY KATHRYN DRURY WAGNER

SOMETHING TO SMILE ABOUT With research showing the many links between oral health and overall physical wellbeing, community dental outreach is more important than ever.

The HDS Foundation was established in 1986 to improve oral health in the communities where Hawaii Dental Service (HDS) operates, including Hawai‘i, Guam and Saipan. Shere Saneishi-Kim joined HDS in 2004 and has been its HDS Foundation director since 2017, overseeing philanthropic grant-making to support nonprofit community organizations, including community dental clinics, govern-

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he mouth is linked to whole-body health, and poor dental health is associated with an increased risk of cardiovascular conditions, strokes, and even pregnancy complications.

That’s why the Hawaii Dental Service Foundation (HDS Foundation) promotes oral health education and improves access to dental care for underserved populations.

For example, the HDS Foundation recently gave a $436,000 grant to Wai‘anae Coast Comprehensive Health Center to obtain a dental van. It will be used primarily for outreach to area schools, reports Shere

ment agencies, and educational institutions.

In 2023, the HDS Foundation distributed over $2.5 million across various initiatives, including grants to community nonprofits, scholarships for dental and dental hygiene students, loan repayment programs for dentists, and other community programs. These funds are dedicated to promoting oral health education, preventing oral disease, advancing workforce development, and improving access to dental care for underserved populations.

In addition to providing grants for deserving nonprofit organizations, the HDS Foundation also provides scholarships for local students majoring in dentistry or dental hygiene. The HDS Foundation awarded a

total of $110,000 in scholarships to Hawai‘i students for the 2023-2024 school year. Ten dental hygiene students at the University of Hawai‘i at Mānoa Nancy Atmospera-Walch School of Nursing, Dental Hygiene Program, each received $3,000 awards and eight dental students from Hawai‘i attending dental schools across the US mainland received $10,000 scholarships.

The HDS Foundation also conducts outreach in underserved communities across Hawai‘i, and its oral health initiatives include Dentist by One, Seal Away Decay, and Kūpuna Smiles. To learn more about the HDS Foundation and its work, visit HDSFoundation.gives.

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Saneishi-Kim, director of the HDS Foundation. With two dental chairs, lighting and an array of equipment, the van will allow dental professionals to do exams, cleanings, X-rays, fluoride treatments and more for the students. Because most of the state’s water is not treated with fluoride, children in Hawai‘i struggle more with their oral health than in other places, notes Saneishi-Kim. Another West Side initiative for keiki is Sealants in Schools, mainly done in the Waipahu area. “It’s for second graders as a preventive measure to avoid cavities,” she says. “Between second and third grades, their adult molars are erupting. These are permanent teeth, so we want to help keep these teeth healthy forever,” explains Saneishi-Kim. Along with nonprofit organization Ke Ola Mamo, the HDS Foundation participated with Kaiser Permanente at a healthrelated baby shower at Kaiser’s West O‘ahu Medical Office in Kapolei. “They invited expectant moms and moms who had just had babies,” says Saneishi-Kim.

“One of our dentists shared what they can expect with their babies’ teeth, and about the importance of taking children to a dentist before their first birthday. We gave out oral health gifts for the moms and their babies. It was a fun event; we hope to be back there again.”

HDS also helps elders in the community with its Kūpuna Smiles program.

This training initiative brings a team of dental hygienists to long-term care facilities, such as Pu‘uwai O Makaha Rehab and Nursing, to help educate staff on how to best take care of their residents’ oral hygiene needs.

“We provide tips and tools like threesided toothbrushes, and foam bite sticks to help residents keep their mouths open.

This makes the care team’s jobs a little easier, and they can do a better job of cleaning the teeth of kūpuna, too. Many residents have dentures, so the hygienists also talk with the nursing staff about how to care for and clean dentures.”

HDS is also involved with workforce development, helping dental profession-

als to attend school career fairs, like Campbell High School’s Health Academy fair held in March. At Ewa Makai Middle School, a $25,000 grant from the HDS Foundation created a mock dental clinic for the school’s health academy students.

HDS also supports student scholarships. For example, a Waipahu High School graduate attended UH Mānoa and HDS provided financial support for her to attend the dental hygiene program. After graduating in May, she’s now back in Waipahu working for a dentist in the community. SaneishiKim says it’s exactly the kind of outcome the HDS Foundation hopes for.

“In total, we gave more than $2.5 million last year in grants to community nonprofits, our scholarships, loan repayment for dentists, and our other community programs,” says Saneishi-Kim. “It’s an investment in our community to make sure we can continue to improve oral health throughout our islands.”

AD WEST O‘AHU

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LOOKING BACK, LOOKING AHEAD PHOTOS COURTESY: THE QUEEN’S HEALTH SYSTEMS

Continued expansion aims to meet the health care demands of a growing area.

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t was a banner year for The Queen’s Medical Center-West O‘ahu.

In May, it celebrated 10 years of providing care to those living in West O‘ahu. The hospital had opened on May 20, 2014, sharing a birth date and month with Prince Albert (born May 20, 1858), the only heir to Queen Emma and King Kamehameha IV, founders of The Queen’s Hospital.

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In celebration of the 10-year anniversary, there was a week of activities at Queen’s-West including a lei-making event, keiki movie night, Mākeke Market, cultural discussions and a staff appreciation meal.

The following month, in June 2024, Queen’s-West had another reason to celebrate: the opening of its new Same Day Surgery space. The 8,500-square-foot

space has 21 bays for pre- and post-operative patients. The Center serves as a hub for conducting more common procedures such as colonoscopies, esophagogastroduodenoscopies, orthopedics, and pain procedures, which had been previously performed in the operating room. Having these procedures done in the new Center helps to free up space in the operating room for more complicated cases.

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PHOTO COURTESY: THE QUEEN’S HEALTH SYSTEMS

S PEC I A L PRO M OTI O N A L S ECTI O N

BY KATHRYN DRURY WAGNER “As always, Queen’s-West is committed to providing patients with high quality, compassionate care in a safe environment,” says Robin Kalohelani, RN, MSN/Ed, CCM, FACHE, vice president of regional operations Central and West O‘ahu and associate chief nursing officer. In fact, in the fall of 2023, Queen’s-West received a Leapfrog Hospital Safety Grade of A, a national distinction that recognizes the hospital’s achievements in protecting patients from harm and error.

The Queen’s Cancer Center at The Queen’s Medical Center - West O‘ahu, opened in 2022, “continues to provide critical and much needed outpatient comprehensive cancer care to those living in West O‘ahu,” says Kalohelani. The array of services includes medical oncology, chemotherapy, radiation oncol-

ogy, nurse navigation, social work and nutritional support, as well as travel, transportation and lodging assistance. “We understand how frustrating it can be for patients to have to travel to various places to receive treatment, especially for cancer patients who are already dealing with a myriad of challenges related to their diagnosis,” Kalohelani says. Having everything under one roof can help ease some of the stress for patients.

Looking ahead, she says 2024 will continue to be a year of growth for Queen’s West-O‘ahu. The goal is “to provide comprehensive services to meet the health care demands of those living and working in West O‘ahu,” she says. “Queen’s realizes the need to ensure access to care to all, as well making it available close to home.”

Queen’s Medical Center West O‘ahu FROM CANCER CARE TO EMERGENCY CARE, TO A WIDE RANGE OF SPECIALTY SERVICES , The Queen’s

Medical Center - West O‘ahu in ‘Ewa Beach provides families with access to high quality health care conveniently located in their neighborhood. We remain committed to ensuring that we are delivering on our commitment of ensuring access to care by honoring the legacy of our founders, Queen Emma and King Kamehameha IV. Queen’s-West offers an array of services including gastroenterology, cardiology, neurology, orthopedics, ear, nose & throat (ENT), sports medicine, rehabilitation, women’s health, cancer care, and much more.

Queen’s also offers other health care options to those living in the ‘Ewa/Kapolei region. At EmPower Health, located at the corner of Kapolei Parkway and Keoneula Boulevard, we focus on a multidisciplinary approach to health care where patients are cared for by their core health care team. With our comprehensive primary care services for families, convenient location, on-site parking, as well as the added services of Diagnostic Laboratory Services and Queen’s Island Urgent Care, our patient population has grown in part through word of mouth and trusted communication throughout the community.

The Queen’s Health Systems is proud to have a dedicated team of caregivers who continue to provide compassionate care every day as part of our ongoing commitment to delivering high quality care to all of our patients.

(808) 691-3000 WWW.QUEENS.ORG/WESTOAHU

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Get quality BONE and JOINT care for your FAMILY.

Discover a personalized approach to a healthier you at Hawai‘i Pacific Health Bone & Joint Centers in Central and West O‘ahu. With adult and pediatric sports medicine, orthopedic surgery, joint preservation and replacement and more, we’re focused on restoring your mobility and quality of life.

HawaiiPacificHealth.org/BoneAndJointCenters

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PHOTO3: COURTESY OF HAWAI‘I PACIFIC HEALTH

S PEC I A L PRO M OTI O N A L S ECTI O N

Pali Momi and Straub Benioff Medical Centers

BEND AND FLEX

BY KATHRYN DRURY WAGNER

Bone and joint services on the West Side are helping people return to their desired activity levels.

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n orthopedics, much of what the in with other tech-related health woes, physician does is about what the too, such as thumb tendonitis from patient wants to achieve in life. cellphone use – it’s also called “gamer’s Explains Timothy Fei, M.D., “My thumb” within the video game indusapproach is to educate patients try. He’s also had patients with tennis as much as I can, and then guide elbow, but says, “It’s a misnomer. I’ve them to make a tailored never seen a tennis player decision based on what their with tennis elbow. It’s often goals are. A professional from people gripping laptops athlete’s goal is very different or even their luggage.” from a 75-year-old grandma Along with these whose goal is to be able to technology-induced, repetiknit again.” tive movements, aging is an Fei is a hand and upper exadditional risk factor for orTimothy Fei, MD tremity surgeon at the Hawai‘i thopedic concerns, he says.

Orthopedic Surgery, Pacific Health Bone & Joint Just like cars, humans University of Hawai‘i Center at Pali Momi Medical are elegant machines. Fei Center, where he specialexplains, “Parts do wear izes in carpal tunnel, trigger out. That being said, you finger, hand arthritis, peripheral nerve can take care of yourself. Be mindful of repair and transfers, upper extremity your ergonomics. Take breaks between fracture fixation, shoulder arthroscopy, work sessions; instead of sitting for four and elbow and shoulder arthroplasty hours straight, get up and move around, (replacement). He also practices at talk to your colleagues, change your Straub Medical Center – Kapolei Clinic posture.” & Urgent Care.

Fei has worked in large health care The No. 1 medical concern he treats institutions in Cleveland and New York, is, surprisingly, business related. It’s carand says the team at Hawai‘i Pacific pal tunnel syndrome, a condition caused Health fully measures up. “I’m very by compression of the nerve in the happy with the care we provide. The wrist and often triggered by keyboard best part of my job is the people; the use. Fei frequently sees patients come world-class nurses, medical assistants

WEST O‘AHU

PALI MOMI MEDICAL CENTER RECENTLY CELEBRATED ITS 35TH ANNIVERSARY OF SERVING WEST AND CENTRAL O‘AHU. Opened on

July 31, 1989, the medical center was founded by Dr. Joseph Nishimoto, known by many as simply “Dr. Joe.” Raised on a rural Waialua plantation camp, he envisioned a place where patients in underserved communities could be treated closer to home.

Since its founding, Pali Momi has strived to uphold that vision.

One of Pali Momi’s most important services for the community is its Emergency Department (ED). The ED recently added a new space called Laulima, which is designed so medical teams can quickly assess and treat patients who have less serious conditions. This helps decrease the time patients spend in the ED while improving their overall experience.

Like Pali Momi, Straub Benioff Medical Center was also founded by a physician — Dr. George F. Straub. This year, the medical center was renamed to recognize longtime Hawai‘i philanthropists Marc and Lynne Benioff, who donated $100 million toward a major redevelopment project to transform the facility into the health care campus of the future.

Straub also offers a network of neighborhood clinics, including Straub Medical Center - Kapolei Clinic & Urgent Care. This clinic provides a wide range of general and specialty services to adults and children, including primary care, imaging and orthopedics.

Pali Momi and Straub Benioff medical centers, along with Kapi‘olani Medical Center for Women & Children and Wilcox Medical Center, are part of Hawai‘i Pacific Health. To learn more, visit HawaiiPacificHealth.org.

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and so many others. They make the practice go around. I’m an important part but so are they. When I get high marks for patient satisfaction, that’s a reflection of the whole team.”

But Hawai‘i offers something he hadn’t encountered much during his time spent in residencies and fellowships on the continent: lots of marinerelated injuries, including working with patients who are crewmembers on international fishing vessels.

“That is challenging because they can’t stay here on land, so it’s a lot of time educating them on care for their injury, and then when they are ready to go back on the ship into international waters, we give them the health care supplies or help them know where to get the supplies they’ll need,” he says.

“We do our best to coordinate a time for follow-up care. These are interesting scenarios. I’ve never had to deal with that anywhere else in the U.S.”

Western Pacific Crane & Equipment WESTERN PACIFIC CRANE & EQUIPMENT, an affiliate of the

Lanco Group of Companies, is a crane and heavy equipment distributor to the Western Pacific region, from San Diego to Alaska and Guam.

Western Pacific Crane & Equipment sells and services Manitowoc cranes, Grove cranes, National Crane boom trucks, Manitou forklifts, Broderson Cranes and carries the full line of parts for the equipment. Western Pacific Crane & Equipment also carries parts and accessories for other cranes and equipment at competitive prices. Outstanding parts and product support, coupled with experienced and factory trained technicians, allows Western Pacific Crane & Equipment to provide superior service to the region.

Christopher Sanchez Branch Manager (602) 489-9944 csanchez@wpcrane.com

WEST O‘AHU

PHOTO COURTESY: WESTERN PACIFIC CRANE & EQUIPMENT

S PEC I A L PRO M OTI O N A L S ECTI O N

THE SUMMIT, HELD JUNE 4 AT MID-PACIFIC INSTITUTE, INCLUDED A SESSION CALLED “THE FUTURE OF WORK.” PARTICIPANTS IN THE SESSION WERE: BRENT GRIMES,

FOUNDER AND CEO, REEF.AI

MEGAN HALL,

FOUNDER OF SEGMENT X

YOLANDA LAU,

FOUNDING BOARD MEMBER, HAWAII CENTER FOR AI

GAVIN STEELE,

DIRECTOR OF PRODUCT MANAGEMENT, ALTRES MODERATOR:

IAN KITAJIMA,

HOW AND AUTOMATION CAN SUPPORT YOUR LIFE, WORK AND TEAM Local experts discuss the present and future of work in a session from Hawaii Business Magazine’s AI Summit

PRESIDENT, PICHTR (PACIFIC INTERNATIONAL CENTER FOR HIGH TECHNOLOGY RESEARCH) THIS TRANSCRIPT OF THE SESSION HAS BEEN EDITED FOR CLARITY AND BREVITY BY STEVE PETRANIK.

YOLANDA LAU: “AI WILL BE INCORPORATED INTO EVERYTHING AND THAT WILL ACCELERATE THE RATE OF CHANGE.”

KITAJIMA: These panelists have been using AI, building applications and launching businesses. I think it will be fascinating to hear from folks on the front line, implementing AI, finding the opportunities and challenges that you will also face as you go forward in this rapidly changing future. My first question: What is the future of AI? GRIMES: In the medium to long term, it’s going to be very

difficult to imagine what life was like before. AI will be a default assumption: We’re going to operate kind of seamlessly around AI. In the short term, it’s going to be much more uneven. Think about an analogy: In the late 1990s and early 2000s, the internet was becoming popular, there were a lot of businesses building on the internet. But there were also lots of existing businesses dependent on old ways of doing business.

The first wave of the internet was establishing the businesses and adapting to capabilities, but preserving what was known and realistic. That’s an analogy for AI in the short term. There’s going to be things that seem like magic appearing regularly. And it’s going to move very fast.

But the way that it works its way into our lives, it’s going to be much harder. A great example is automated home technology. You can already tell Alexa to turn your lights on or off. AI will be able to work with your home automation, but somebody has to build the scaffolding between the AI and the home systems to get them to work well. In the future, there’s going to be some company that’s invented from the ground up to create AI-enabled home automation that works very differently than adapting to today’s world. So I think there’s going to be a series of incremental changes that will add to a very different way of living 10 years from now.

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HALL: I already have a hard time remembering what life

was like just two years ago – before everything changed with ChatGPT. And I think that one of the big wow moments is AI allows computers to act more like a human and allows humans to act like a computer. People may say, “I’m not good with computers, so I’m not going to like AI.” But now computers are adapting to those people, and they might learn to love computers. And I think there will be a lot less clunky software in the future, because AI will make it easier for people to interact with software.

STEELE: I think we’ll see a hyper-personalization of every-

thing from education to work. As a parent, I want my child to have an education that suits her particular needs and strengths. I think schools can use AI to provide that personalized touch, whether it’s lesson planning or assessing students’ work.

It can get candidates in front of jobs that match their skill set and what they want to achieve and then personalize their tools so they can have a more meaningful impact at work.

LAU: AI will be incorporated into everything and that will

accelerate the rate of change. AI will enable computer vision, enable robotics, hopefully solve climate change faster, improve synthetic biology and quantum computing.

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ARE WE CREATING A GREATER DIGITAL DIVIDE? KITAJIMA: What about equity? This group is probably the

1% really involved with artificial intelligence. You’re making the investment. Are we creating a greater digital divide?

HALL: ChatGPT and other AI tools are free, but if you are

not aware they exist, you will not benefit from them. So there needs to be that awareness.

LAU: That’s why we started the Hawaii Center for AI – to

increase the responsible, ethical, beneficial use of AI in our state. Not just to lift up individual people but to lift up the entire community. Hopefully the state economy becomes less reliant on tourism and diversifies. (Gesturing to Grimes and Hall) It brings me joy to see you’ve started tech companies in Hawai‘i.

STEELE: At Altres, we provide services to 3,000 customers

with 15,000 employees in Hawai‘i. So as we integrate AI into our tools and features, we are doing the research and asking questions across all departments so that all those businesses and employees can take advantage of these new tools.

GRIMES: When thinking about equity, think about

information access 20 years ago. We’re in a much better place now – it’s more available to most of the world.

And a large percentage of the world’s population now has access at least to a mobile phone, which unlocks content and learning that was never available before.

But just because somebody has access to a phone doesn’t mean they have the time or support to invest in skill development and really participate in this shift to AI. So I think it’s important for organizations like yours (gesturing to Lau) and Purple Mai‘a to do great things locally, to help people reskill and adapt to the opportunities. These things are happening on a small scale, so I think it’s important for government to invest in making AI more accessible, so it’s not 1% participation in AI, but benefits the entire population.

I think a lot about what is the right skill set to succeed in the next 20 years. Traditionally, skill development has been about developing a deep set of skills around a certain problem. I think a lot of specific skill development will be replaced by being very adaptable, being a lateral thinker and adapting to a quickly changing world.

Change is scary, especially rapid change. But it also presents a lot of opportunities. The people who take advantage of those opportunities are those people who are proactive, intellectually curious and embrace the idea of “I may not know everything but I’m willing to dive in, learn and get out of my comfort zone and out of the thing I’ve been doing for 15 years.” Those people will create a lot of opportunity for themselves. And that’s a skill set employers are looking for.

AI ON THE JOB KITAJIMA: How are you bringing AI to the workplace?

STEELE: At Altres, we’re taking a slow approach.

We invested early in this small AI team that looked at policy and research, then asked, “Where can we test this?” We started by testing Microsoft 365 with Copilot, asking employees about mundane tasks that frustrate them or take all their time, asking the engineering team to figure out the best tools for generating code and running test cases.

For our customers it’s, “How do we augment existing services rather than taking bigger swings at new technology?” We looked at our job description generator. If you’re hiring for a new position and you’ve never hired for that kind of position before, you’re wondering, “How do I write this job description?” So the first tool implemented was a position generator that allows you to have variable information to generate a job description. It gets you that first draft that you can edit to your organization’s needs and get posted sooner than in the past, or refresh existing posts that didn’t attract talent.

GRIMES: Reef.ai is a startup based locally and we’ve

you don’t need a course on how to Google something or use Microsoft Word. You need to just try it. My theory of AI adoption is start by creating something that’s fun, whether it be music or a fun email.

Then incorporate it into your day-to-day job, like writing emails, then maybe a customer presentation.

Then you can start experimenting with ChatGPT plugins and keep advancing. Just start by being curious, try it and have fun.

been around for about three years. We’re building AI to make information more accessible for our customers. Using their own customer data that lives in different places, we help them better understand how they should allocate resources to drive more revenue with those customers. We make it possible for them to use an AI interface and their own corporate data to ask open-ended questions about their customer base.

They have a history with these customers. They know when they bought certain products, but they really want to understand which customers that bought Product X should be targeted to buy Product Y? These questions are very difficult historically to answer. That would take an analyst or data scientist weeks or months to answer. Our goal is to put the power of all of this data at the fingertips of day-to-day workers so they can do their jobs without them having to learn new skills around data science or machine learning.

STEELE: I think there’s a natural progression from

LAU: What you’re talking about is essentially how

HALL: You don’t need to take a course to learn AI, just like

asking ChatGPT a question, then progressing to telling it exactly what you want, whether it’s to generate code or a new process or another system to bring into the workplace. Once you get to that point, you really want systems in place internally that allow employees to bring results back into their work in a way that isn’t just copying and pasting. And younger employees will expect that some aspect of their work (will) be handled

by AI, and if you use those tools in your workplace, that will be a competitive advantage in attracting them to your organization.

Amazon grew their business. What I love about what you’re doing is enabling any company to have that data-first mindset to scale. I was on a Zoom meeting yesterday with some Stanford researchers and they presented research on how AI is being used to improve businesses. One of the most high-impact use cases is operations, including customer experiences, so I think you’ve got a great company.

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HALL: I think AI will lead to a rise in micro entrepreneurs

and micro influencers because young kids are being told, “Start your own brand, music label, clothing brand, blog or channel.” I’m seeing both young and old embracing AI, and a big creative wave is coming.

LAU: I agree that AI is creating massive opportunity for

anyone. Any one of you (gesturing to the audience) can start a business overnight – one that would have probably taken a team of people six months or more to launch, you can do in one weekend. And that’s going to change everything. I frankly wonder if my kids are going to go to college.

WHAT AI IS NOT GOOD AT GRIMES: There’s a lot of things that AI is not good at.

GAVIN STEELE: “THOSE TOOLS ARE CODE FREE. THEY’RE ALL CLICK-AND-DRAG AND JUST CONNECTING THINGS TOGETHER WITH THE TOOLS YOU ALREADY USE.”

The reality is that if you’re looking for precision, generally AI is not fully there. If you use it to give suggestions, it can be very good.

There’s this misnomer that humans are creative, and AI is not. But AI can be very creative. If you ask it to auto generate some image and give it parameters, it’ll be very creative with what it generates. It might not be what you want or need, but you can adjust it. On things where there’s flexibility, the results you get back from AI can be powerful and effective.

If you’re looking for a very specific answer that’s repeatable over and over again, that’s where a lot of development is still needed. If there’s a clear answer, then AI can be pretty good. But if it has to interpret to get something correct, there’s still a long way to go. And it might be solved in six months or it might be 10 years.

HALL: I’m the founder of Segment X and what we do is

help sales reps and marketing people personalize the sales cycle. They’re going after multiple industries and multiple personas making sales presentations and sales proposals.

My company helps sales reps navigate that complexity and personalize all the documents through a sales cycle for each individual customer.

SOFT SKILLS REQUIRED IN THE FUTURE KITAJIMA: Over the last few years, what are the skills you

and your teams have needed? I’ve heard adaptability is pretty core. What else?

GRIMES: Being aware and humble about all the things you

MANY POSSIBILITIES FOR PEOPLE GRIMES: I hope there is an opportunity for Hawai‘i to move

away from being a follower to being an AI leader. I think the good news is it’s a relatively small community so we can get the right people on the same page. There’s interesting examples out there like Malta, with about half the population of Hawai‘i. But they’ve committed to create funding, building support and programs around AI, and they’ve already got a thriving startup ecosystem, and a lot of momentum around becoming a leader in AI. I’d love to see a future where we can embrace AI in a way that is true to the values of Hawai‘i.

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don’t know is a really important skill. The deeper I get into this, the less I feel like I know. A philosophy that’s been helpful for me in my life is: Even if you can’t see the whole road ahead, if you can figure out that first step and just make the leap, then the road becomes clearer and you can take the next step, and suddenly you’re well down the road. You now have a much clearer vision of what the opportunity is and what it can become. But the first step is the hardest. There’s a lot of uncertainty, fear and self-doubt to overcome to make the leap of faith, whether that’s changing a job, starting something on your own or just doing something dramatically different than what you’re used to.

But if you have this lifetime learner mindset and are willing to embrace a little discomfort at the start, the rest usually sorts itself out.

YOUR NEXT AI STEPS HALL: (To the audience) I’m assuming most of the

people here have already used ChatGPT or Google Bard or something like that. If you’re ready to step up to the next level, there’s a couple things you could do. If you are in Google Sheets – that’s the Excel for Google – you can get a ChatGPT plug-in where, in the same way that you can pull down on Excel and have it run 10 calculations, you can instead have it run 100 requests. Instead of typing one and then another, you can do 100 at once.

I am equally if not more passionate about automation than I am about using large language models.

There is an app called Zapier that you can connect to your email that’s connected to ChatGPT that has your prompts, so when you receive a type of email, it will reply back with the answer you want. You can actually make your own mini employees with Zapier and connect them into all the other software that you use.

today. Change is happening fast and it’s just going to keep accelerating. That’s the nature of exponential technologies. Humans are terrible at understanding exponential; we are linear. It’s hard to imagine just how quickly life is going to change for us.

So the best thing any one of us can do for ourselves is to be an expert, not just on one thing, but ideally, I’d say, three different things so that if one of those things becomes obsolete, you still have the others to stand on. Besides that, you can be the one expert in the world that is, say, good at dance, therapy and music.

That’s something you can do to prepare yourself.

BRENT GRIMES: “I HOPE THERE IS AN OPPORTUNITY FOR HAWAI‘I TO MOVE AWAY FROM BEING A FOLLOWER TO BEING AN AI LEADER.”

STEELE: Those tools are code free. They’re all click-

and-drag and just connecting things together with the tools you already use. Start playing around with them, testing to see, “Am I getting the results that I would have expected in a normal business year or a normal business project that I might be taking on?”

Then you’ll graduate beyond the basics, maybe invest in AI and make small investments within your organization, whether it’s existing employees getting together or going to the market and hiring people.

LAU: I’m going to admit that I don’t fully trust ChatGPT

to do my charts and stuff for me. (laughter) I’m still having it tell me the Python code or how to do it in Excel and doing it myself. So do what works for you. If you’re not comfortable with something, there’s certainly some other way that you can figure out how to use AI that you are comfortable with.

But to go back to the original question about preparing for this future of work, I couldn’t agree more with everything said about the need for adaptability and lifelong learning. My shorthand for it is the entrepreneurial mindset, because I think that encompasses all the skills that you need to succeed in the future of work.

I just finished the new book by Sal Khan, founder of Khan Academy (“Brave New Words: How AI Will Revolutionize Education (and Why That’s a Good Thing)”), and he agrees that the entrepreneurial mindset is what everyone needs – not a specific version of entrepreneurship. I’m not talking about starting a venture-capital-backed company; that’s not for everyone. I’m just talking about knowing how to take appropriate risks, calculated risks, being comfortable being uncomfortable, (being a) lifelong learner – those are important skills.

Change is the only thing that we can count on

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MEGAN HALL: “THINK ABOUT ONE THING THAT YOU HATE DOING AND HOW YOU COULD TRY TO AUTOMATE THAT TASK. I COMBINE AIRTABLE WITH CHATGPT AND ZAPIER.”

IAN KITAJIMA: THE MODERATOR POSED QUESTIONS ABOUT AI IN THE WORKPLACE, USEFUL TOOLS FOR TODAY AND AI’S ROLE IN THE DIGITAL DIVIDE.

STEELE: Invoicing. You mean I have to ask for money

for the service that I provided all week? That seems like a rotten plan. With things like Zapier, you could automate sending your invoices; plus ChatGPT could generate and send the thank-you notes in the same tone that you want to say it.

LAU: I also love Zapier. I’ve used it for years and years.

GRIMES: My favorite pastime for AI now is a

CHECK OUT THESE TOOLS KITAJIMA: What are some of your favorite tools you

could share with people, like, “Hey, check this out”? (See the August issue and visit hawaiibusiness.com for suggestions on apps and tools you can use now, from another panel at the AI Summit.)

LAU: I think the most fun way to use AI is making music.

It’s lighthearted but also super educational. You could use it to make a fun jingle about, I don’t know, physics – it could be folksy or a blues song, rap or reggae.

HALL: Think about one thing that you hate doing and

how you could try to automate that task. I combine Airtable with ChatGPT and Zapier. There’s a lot of things you can automate in your company or your life that you don’t want to do so you can free up time for the things that you actually enjoy.

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WhatsApp image generator that auto generates dad jokes and images that I can send to my daughters and embarrass them.

One tool that’s been really effective in my life is video recording software. If you’re on Zoom, Hangouts or Teams, it’ll not only record and give you the transcript, but it does AI summaries that allow you to quickly kind of remember what you did in your call and what the takeaways were. They can even do things like generate follow-up emails with action items.

HALL: I use Otter for the same thing. The reason I like

Otter is you can have it do that live on your phone.

LAU: I also use Otter, but a study I read said overreli-

ance on these things can make you less invested in the meeting, so it’s important to keep a human in the loop.

Don’t just automate things and let it go. If it’s important to you, you need to pay attention – though still spend less time on it for sure.

FRIDAY, FRIDAY, 27, FRIDAY OCTOBER OCTOBER 2023 11,27, OCTOBER 2023 2O24

20 24

PRESENTED BY PRP E SREENST E D N TB YE D B Y

FEATURED BREAKOUT SESSIONS

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67

IN PARTNERSHIP WITH

PRESENT

J U LY 1 9, 2 0 2 4

The 11th Annual Leadership Conference was an inspiring and informative day filled with thought-provoking conversations and opportunities to learn, grow, and connect. We would like to extend a huge mahalo to keynote speaker Dr. John Scott from MasterClass and the over 40 amazing local speakers.

The annual conference brings together Hawai‘i’s business community with the intent to develop and strengthen relationships and leadership skills that will move Hawai‘i forward.

“First Hawaiian Bank is proud to continue our partnership with Hawaii Business Magazine in hosting the Leadership Conference. Participating in the panel discussion and experiencing the energy and engagement from industry leaders was inspiring. This conference demonstrates the power of open dialogue and shared insights to drive meaningful progress for our state.”

— GINA ANONUEVO, EXECUTIVE VICE PRESIDENT AND CHIEF HUMAN RESOURCES OFFICER , FIRST HAWAIIAN BANK

The Leadership Conference would not be possible without the generous support of presenting sponsor First Hawaiian Bank and our supporting sponsors and partners.

We are looking forward to Leadership Conference 2025!

MAHALO TO OUR SPONSORS & PARTNERS PRESENTED BY:

GOLD SPONSORS:

“Mahalo and congratulations to Hawaii Business for another successful Leadership Conference. We’re dedicated to providing development opportunities for our employees and Hawai‘i’s emerging leaders, which is why we are proud to support this inspiring event every year.”

SPECIAL PARTNER:

HOTEL SPONSOR:

PRINT PARTNER:

NONPROFIT PARTNERS:

A LO H A U N I T E D WAY 2 1 1 / B B B G R E AT W E ST & PAC I F I C / BLUE STARTUPS / CENTER FOR TOMORROW’S LEADERS / CHAMBER OF COMMERCE HAWAII YP / CLIMBHI / CREATIVEMORNINGS HONOLULU / HAWAII EMPLOYERS COUNCIL / MANA UP / PACIFIC ISLANDERS IN COMMUNICATIONS / PATSY T. MINK CENTER FOR BUSINESS & LEADERSHIP / READ TO ME INTERNATIONAL FOUNDATION

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— DANIEL CHUN , REGIONAL VICE PRESIDENT – HAWAI ‘ I , AL ASK A AIRLINES

“Each year, we leave the Leadership Conference enlightened, rejuvenated, and further connected with our vibrant business community. Mahalo to Hawaii Business, and all the panelists, sponsors and attendees for another empowering conference. It’s an honor to support this event that inspires and cultivates transformative leadership in Hawai‘i.”

—ALTRES

“Compassion. Empathy. Inclusivity. Intention.

Adaptability. These were just a handful of words and concepts shared by executives of some of Hawai‘i’s most influential companies at the Hawaii Business Leadership Conference. Each keynote and panel offered powerful insights about the dynamics in today’s workplace, honest conversations about effective leadership, and tangible ways we can all make a more positive impact in our own organizations.

It is easy to leave inspired and I’m already looking forward to attending next year’s event with our Anthology FINN Partners team.”

— NATHAN K AM , SENIOR PARTNER , ANTHOLOGY FINN PARTNERS

“Strong leadership skills are paramount when fostering innovation in any business or community. The Hawaii Business Leadership Conference creates an environment that inspires conversation between current and future leaders to envision what is possible for one’s professional self and organizations in Hawai‘i.”

— K ATIE PICKMAN, GENER AL MANAGER , HAWAII NEWS NOW

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T H E

B O T T O M

L I N E

BY CY NTHI A W E SSE N D OR F

ORIGINAL IMAGE: GETTY IMAGES

Hawai‘i’s Most Profitable Companies 2024 Once again, transportation giants Matson and Hawaiian Airlines bookend the list

FOR THE THIRD YEAR IN A ROW, Matson and Hawaiian Airlines occupy the first and last spots, respectively, on Hawai‘i’s Most Profitable Companies list. The list’s profit/loss figures add important detail to the separate Top 250 Companies list published in August, which ranks organizations by gross revenue.

Hawaiian has been at the bottom of the Most Profitable Companies list for the past four years, though its fortunes could turn with its pending sale to Alaska Airlines. Matson, which dropped from first to fifth place on the Top 250 list – from $4.3 billion gross revenue in 2022 to $3 billion in 2023 – still remains the most profitable company headquartered in Hawai‘i, according to Hawaii Business Magazine’s research.

In 2023, Matson earned $297.1 million in profit, which was considerably less than the $1 billion reported in 2022. In its 2023 annual report, Matson explains its approach to investing current profits for future growth.

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st

t

In 2022, Matson signed a $1 billion contract with a Philadelphia shipbuilder for three new “Aloha-class” container ships for its China-Long Beach line. At the end of 2023, the company “had funded 67% of the new Aloha Class build program through nearly $600 million set aside in our tax-advantaged CCF (capital construction fund),” according to Matson’s annual report.

Hawai‘i’s largest shipping company expanded during the pandemic years, adding transpacific shipping lines and services such as trucking and warehousing.

Matson’s 2023 report states that the company has “built a highly diversified shipping and logistics platform capable of generating sustainable, long-term growth.”

Hawaiian Airlines is also focused on long-term growth and high-quality service, but has experienced downturns in international travel from Japan, as well as schedule changes and cancellations caused by “ongoing struggles with the reliability

and availability” of the engines that power its West Coast fleet, according to its 2023 annual report. The airline reported a nearly $260.5 million loss in 2023, up from the $240 million loss reported in 2022.

In encouraging news, Hawaiian Airlines launched a freighter service for Amazon in 2023, opened service to the Cook Islands and returned to Fukuoka, Japan. More significantly, the company announced in December 2023 that it would merge with Alaska Airlines, giving it access to far more destinations.

“The beloved Hawaiian Airlines brand will live on as a part of the combined company,” states Hawaiian Airlines’ annual report. “Together, we believe we will be able to compete more effectively against the giant airlines … and invest more in sustainability, workforce development, and community.”

At the time of writing, Alaska Airlines was still awaiting approval from the U.S. Department of Justice for its purchase of Hawaiian Airlines.

NONPROFITS ARE HEALTHIER

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th

The top-ranked nonprofit on this year’s list is Honolulu-based Elemental Excelerator, which has funded more than 150 “climate companies” in Hawai‘i and around the globe. Funded projects range from generating water in arid regions of Texas and providing electric shuttle buses in New York City’s “transportation deserts” to producing the world’s first low-methane goat cheese, made by Hawai‘i Island’s Blue Ocean Barns.

Elemental’s previous appearance on this list was in 2022 (reporting 2021 figures). That year, it ranked 186 on the Top 250 list with $17.2 million in gross revenue, and 44 on the Most Profitable list with $1.13 million in profits. This year, Elemental rose to 150 on the Top 250 list with $36.2 million in gross revenue, and No. 9 on the Most Profitable Companies list with $15.6 million in profits.

More traditional nonprofits also reported healthier profits in 2023, giving them strong buffers against future funding drops. Catholic Charities reported $12 million in surpluses after a nearly $2.3 million loss in 2022. Easterseals reported nearly $4.7 million in surpluses in 2023, but only $6,000 the previous year.

The Hawaiian Humane Society, Blood Bank of Hawaii, Waikiki Health, Hale Kipa, Boys & Girls Club of Hawaii and Child & Family Service all reported healthier year-end balance sheets in 2023 compared to the previous year. But Parents And Children Together and the Hawai‘i Foodbank – large organizations serving many tens of thousands of residents – reported deficits.

LOSSES ON MAUI

On the most recent Top 250 Companies list, many small and medium companies with Maui operations reported revenue drops as a direct result of the Lahaina wildfire. They include VIP Foodservice, the Pacific Whale Foundation, JR Doran/Ceramic Tile Plus, Atlantis Submarines and The Art Source.

But only one of them, Maui Clothing Company, also divulged its profit/loss figures. The network of clothing stores reported a $490,361 loss in 2023, compared with a gain of $887,732 in 2022.

The company lost a store on Front Street in Lahaina; 21 of its employees were displaced and five lost their homes.

H AWA I I B U S I N ES S

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T H E

B O T T O M

L I N E

HOW WE COMPILE THE LIST

Each spring, Hawaii Business Magazine surveys companies and nonprofits to gather key information,

such as gross revenue, profits or losses, executives and new acquisitions.

Those organizations that reported their profit/loss figures are included on the Most Profitable Companies

list, which is supplemented with publicly available data. To request surveys for future lists, please email cynthiaw@hawaiibusiness.com.

PROFIT PROFIT RANK THIS RANK ON LIST PREVIOUS LIST

LATEST TOP 250 RANK

COMPANY NAME

FULL-TIME EMPLOYEES (2023)

GROSS ANNUAL SALES (2023)

NET PROFIT/LOSS (2023)

PROFIT/ LOSS AS % OF REVENUE

1

1

5

Matson Inc.

2,326

$3,094,600,000

$297,100,000

9.6%

2

2

12

First Hawaiian Bank

2,114

$1,124,394,000

$234,983,000

20.9%

3

3

3

Hawaiian Electric Industries (HEI)

3,597

$3,682,166,000

$199,238,000

5.4%

4

4

13

Bank of Hawai‘i Corp.1

1,873

$986,984,000

$171,202,000

17.3%

5

6

40

Central Pacific Financial Corp.

737

$256,663,000

$58,669,000

22.9%

6

5

35

American Savings Bank

1,000

$297,396,000

$53,362,000

17.9%

7

7

54

Kawailoa Development LLP

852

$175,658,000

$25,881,000

14.7%

8

64

141

Kāhala Senior Living Community Inc. dba Kāhala Nui

207

$40,643,241

$17,328,964

42.6%

9

--

150

Elemental Excelerator Inc.

49

$36,231,439

$15,621,806

43.1%

10

--

50

The Nakupuna Companies

1,035

$236,479,970

$15,579,255

6.6%

11

61

100

Catholic Charities Hawai‘i

268

$84,228,000

$12,060,000

14.3%

12

--

154

Gather Federal Credit Union

82

$34,813,359

$10,111,528

29%

13

27

82

Hawaii Employers’ Mutual Insurance Co. (HEMIC)

120

$104,766,538

$8,279,726

7.9%

14

8

1

Hawaii Medical Service Association (HMSA)

1,310

$4,136,191,792

$7,452,216

0.2%

15

20

146

Hawaii National Bank

143

$37,547,000

$6,397,000

17%

16

--

106

Group Builders Inc.

289

$75,000,000

$5,370,000

7.2%

17

10

112

Territorial Savings Bank

232

$71,559,000

$5,027,000

7%

18

--

95

I. Kitagawa and Co. Ltd.

185

$88,310,000

$4,910,000

5.6%

19

56

185

Easterseals Hawaii

227

$21,318,000

$4,695,000

22%

20

21

57

Kaua‘i Island Utility Cooperative

143

$170,097,868

$4,260,664

2.5%

21

26

217

Pacific Fleet Submarine Memorial Association

35

$10,990,000

$4,251,000

38.7%

22

34

200

Hawaiian Humane Society

125

$17,088,700

$4,208,629

24.6%

23

9

30

UHA Health Insurance

174

$349,400,000

$3,930,000

1.1%

24

22

191

Blood Bank of Hawaii

123

$19,600,000

$3,894,048

19.9%

25

28

52

Hawaii Medical Assurance Association (HMAA)

3

$211,000,000

$3,700,000

1.8%

26

--

84

Hawaii State Federal Credit Union

369

$100,114,730

$3,633,874

3.6%

27

--

236

Premier Solutions HI LLC

27

$8,369,972

$3,378,513

40.4%

28

23

203

Honolulu Federal Credit Union (HOCU)

58

$16,805,112

$3,000,658

17.9%

29

41

175

Le Jardin Academy

161

$23,900,000

$2,804,000

11.7%

30

--

211

John Mullen & Co. Inc.

83

$13,783,249

$2,633,066

19.1%

31

--

189

Atlantis Submarines Hawaii LLC

104

$20,175,866

$2,444,197

12.1%

32

--

197

Pearl Hawaii Federal Credit Union

73

$17,215,661

$2,267,172

13.2%

33

44

160

Waikiki Health

185

$31,897,171

$1,961,868

6.2%

34

13

127

Aloha Pacific Federal Credit Union

167

$51,690,183

$1,918,938

3.7%

35

43

205

Express Employment Professionals

23

$16,699,950

$1,908,059

11.4%

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PROFIT PROFIT RANK THIS RANK ON LIST PREVIOUS LIST

LATEST TOP 250 RANK

COMPANY NAME

FULL-TIME EMPLOYEES (2023)

GROSS ANNUAL SALES (2023)

NET PROFIT/LOSS (2023)

PROFIT/ LOSS AS % OF REVENUE

36

58

222

Hale Kipa Inc.

80

$10,025,740

$1,879,902

18.8%

37

--

220

St. Andrew’s Schools

75

$10,690,000

$1,590,000

14.9%

38

15

208

Maui County Federal Credit Union

58

$14,864,822

$1,498,669

10.1%

39

39

225

JR Doran Inc. / Ceramic Tile Plus and Exclusively Yours

33

$9,871,581

$1,377,140

14%

40

--

247

Big Island Federal Credit Union

31

$6,832,008

$1,360,954

19.9%

41

60

196

Video Warehouse Inc.

60

$17,437,686

$916,964

5.3%

42

47

233

Life Cycle Engineering

74

$9,000,000

$855,000

9.5%

43

46

212

Hawaiian Islands Freight Association

--

$13,526,154

$754,768

5.6%

44

54

243

Boys & Girls Club of Hawaii

41

$7,168,806

$695,252

9.7%

45

57

221

ATN Construction

25

$10,059,700

$583,300

5.8%

46

62

156

Child & Family Service

313

$33,560,000

$520,000

1.5%

47

51

213

Wave Inc. and Subsidary 2

90

$12,496,783

$471,496

3.8%

48

33

165

YMCA of Honolulu

178

$27,951,610

$398,258

1.4%

49

30

20

AlohaCare

280

$463,955,701

$397,423

0.1%

50

53

235

Integrated Facility Services Hawaii

--

$8,652,083

$291,401

3.4%

51

--

207

Hawai‘i Health & Harm Reduction Center

90

$16,107,156

$163,167

1%

52

--

167

The Institute for Human Services Inc.

189

$27,338,496

$152,945

0.6%

53

52

224

Bishop & Company Inc.

10

$9,950,141

$116,330

1.2%

54

24

163

Parents And Children Together

343

$28,977,048

-$98,702

-0.3%

55

31

173

Hickam Federal Credit Union

110

$25,693,613

-$17,4426

-0.7%

56

49

180

Honolulu Community Action Program Inc.

319

$22,390,887

-$189,515

-0.8%

57

42

226

Maui Clothing Co. Inc.

38

$9,775,650

-$490,361

-5%

58

14

174

Barnwell Industries Inc.

36

$25,269,000

-$961,000

-3.8%

59

59

137

Hawaii Foodbank Inc.

69

$43,061,000

-$963,000

-2.2%

60

40

216

Hawaii Central Federal Credit Union

43

$11,972,430

-$1,788,070

-14.9%

61

11

37

First Insurance Company of Hawaii Ltd.

231

$285,900,000

-$2,100,000

-0.7%

62

--

239

Kaua‘i Federal Credit Union

41

$7,626,239

-$2,228,524

-29.2%

63

63

121

Shioi Construction Inc. dba Creative Partition Systems

205

$59,310,365

-$2,785,765

-4.7%

64

32

218

Maui Land & Pineapple Co. Inc.

9

$10,915,000

-$3,080,000

-28.2%

65

29

176

Cyanotech Corporation3

--

$23,178,000

-$3,440,000

-14.8%

66

--

31

Hawaiian Telcom

1,200

$347,800,000

-$72,555,500

-20.9%

67

65

6

Hawaiian Airlines

7,362

$2,716,284,000

-$260,494,000

-9.6%

4

Net profit/loss per annual report. 2 Net profit/loss figure is estimated. 3 Net profit/loss per annual report. 4 Net loss for 2023 was primarily due to significant depreciation and amortization expense of $127.2 million related to the increased value of property, plant and equipment and intangibles as a result of recording amounts at fair value as of the Macquarie acquisition date.

1

H AWA I I B U S I N ES S

73

BY SHELBY MATTO S

It’s no longer just cost savings driving local companies to depend on Hawai‘i-based outsourcing companies

To Outsource or Not?

74

D

ELOITTE’S 2022 GLOBAL OUTSOURCING SURVEY CALLED ON 500 BUSINESS AND TECHNOLOGY LEADERS FOR INSIGHTS INTO WHY THE OUTSOURCING INDUSTRY CONTINUES TO GROW. Cost savings remain

a major driver of why companies depend on outsourcing, but an increasing reason is companies’ inability to find the employees they need to keep some functions in-house.

According to the companies that Deloitte surveyed, the top areas of outsourcing are cybersecurity (81% outsourced those functions), IT (77%), legal (64%), taxes (61%) and HR (57%).

To know if outsourcing is the best fit for your company, the first step is to understand what it would look like.

Ben Godsey, CEO of ProService Hawaii, says some people have a misconception of what HR outsourcing really is.

74

SEPTEMBER 2024

“Once they know and understand it, they oftentimes adopt it because they say, ‘Gosh, I’m trying to do these things. It’s taking up my time, it’s taking up my key managers’ time. We don’t understand all the rules, the rules keep changing. It’s getting more complex every year. We make mistakes, our employees are unhappy,’” Godsey says.

He says ProService has experts in all areas of HR and can also help with specific needs while remaining cost effective.

Another major local outsourcing business is Altres – parent company of Altres Staffing and SimplicityHR. Debbie Padello, Altres’ director of operations, says SimplicityHR helps business owners focus on their core businesses – whatever those businesses are.

“Say you’re a doctor. You go to school all these years and you become a doctor. You didn’t go to school to become an employer,” Padello says. “There’s so many requirements, from legal compliance, HR laws, taxes, payroll.”

ORIGINAL IMAGE: GETTY IMAGES

“It’s more simple to have an expert like us do the employment administration, and then they can run their business.”

Some companies replace their entire departments with outsourcing; others use it to supplement their in-house teams.

CONNECTING TO TECH LEADERS

Another benefit of outsourcing is having a connection to experts in rapidly changing fields like IT and cybersecurity – so it’s not surprising that those were the two most outsourced functions in the Deloitte survey. Pacxa helps its clients in business, nonprofits and government maintain and modernize their technology infrastructures and reduce cybersecurity risks.

President Kelly J. Ueoka says Pacxa has formed partnerships with major tech companies like Oracle, Microsoft, Hewlett Packard Enterprise and SonicWall to provide hardware and software solutions for its clients.

“It’s really about providing the expertise to pull a myriad of these leading-edge technology vendors together to help (clients) modernize IT infrastructure, reduce overall cyber risk, increase productivity and efficiency,” Ueoka says.

The latest service that clients want from their IT experts is help learning and dealing with the challenges and benefits of using AI. That need will almost certainly increase.

“I think that within the next 12-24 months, we might see an influx of companies having to adopt AI because they will be getting attacked by AI,” Ueoka says.

There are so many cybersecurity aspects to oversee that once AI is used for cyber-attacks, it may be more than what humans can handle, he says. That’s a challenge that Pacxa and its partners are gearing up to face.

IT’S HARD TO FIND TALENT

Chamber of Commerce Hawaii CEO Sherry Menor-McNamara says outsourcing is one solution to a huge challenge faced by local businesses: finding the right workers to fill positions.

The chamber has outsourced most of its accounting and HR needs since 2000, which Menor-McNamara says frees up resources to help local businesses, continue advocacy efforts and engage in activities that support the chamber’s mission.

And for companies that retain their own HR departments, Altres can serve as a “toolbox” for their specific needs, Padello says. “We customize our service to our clients.”

After decades of low inflation, Godsey says, Hawai‘i has seen price increases in the past three or four years that many people haven’t faced in their professional lifetimes.

“Employers have to work to be more efficient to stretch their resources to be able to deliver at a price point that their customers can afford,” Godsey says. Outsourcing can help reduce those costs.

“Before Covid, the prevailing view for local employers was, ‘Why would I outsource HR?’ Now, it has turned into, ‘Why wouldn’t I outsource?’ Before Covid, everyone wanted their HR team in the office,” he says. Now, “we are our clients’ HR department. We just don’t happen to be in their office. … And now it’s much more like, ‘Of course that makes sense.’ ”

CONTACT CENTER, NOT CALL CENTER

company. But instead of a call center, his company operates a “contact center” because it covers all forms of communication, including telephone, online chatting, email and SMS texts.

His clients include businesses from all sorts of industries in Hawai‘i and on the mainland.

“In this day and age, if you are calling Hawaiian Airlines, they’re in the Philippines,” he says. “I think our big differentiator here is being local. That’s our biggest value proposition.”

Godsey cautions against hiring a mainland or international outsourcing company because it may not know Hawai‘i’s unique state and county requirements. “If you trust a mainland company, they’re probably going to have you out of compliance with local rules and regs.”

On top of local knowledge and expertise, he says, there’s ProService’s “care and commitment and desire to do right. I don’t think you get that, even if you have all the expertise, if you’re just handling things from the Philippines.”

Both Godsey and Padello stress that building trust with their clients is essential.

“People need to be able to trust us,” Padello says. “And that all falls back on our people and the culture in our company, and being able to make sure that we take care of our people so that they can take care of our clients and that they’ll stay.”

Godsey says: “At the end of the day, trust is simple to talk about but it takes a lot of hard work to earn.

I’ve run the business for 20 years. In the early days, we didn’t have a great reputation for consistently doing what we said we were going to do but we built that over time.”

Outsourcing is not limited to HR and tech.

“When you talk about call centers, normally you’re talking about telephone,” says Max Tsai, owner and president of TC Kokua, a Maui-based customer support H AWA I I B U S I N ES S

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M Y

J O B

BY DE RE K K AM AK ANAALO HA SOON G

PHOTO COURTESY: GIANA ALYSSA ROPITA

My Job is Re-Creating the Fragrances of Carefree Childhoods in Hawai‘i Kaua‘i resident MALIANA HAMADA offers the fragrances of tropical florals in her perfume oil blends, room and linen sprays, diffusers and hand sanitizers.

“I wanted to have my mom guys remember their childhood and their youth,” she says, referring to her mother and aunties. “We all get so caught up in the day-to-day life and you forget your youth and how happy you were. I wanted our fragrances to help with that.”

INSPIRATION: The idea behind Ha‘a &

NAME: MALIANA HAMADA JOB: PARFUMIER AND OWNER COMPANY: HA‘A & CO.

Co. came to Hamada before Mother’s Day in 2020, during the pandemic. Kaua‘i had a 9 p.m. curfew and restaurants were closed, so she joined weekly Friday dinners at an auntie’s house, where her mother and aunties would often talk about what it was like growing up as Japanese girls in rural Kaua‘i.

Their memories of the scents of lush greenery and flowers inspired Hamada to craft a collection of linen and room sprays as a gift for her mother.

She was also inspired by her own experiences as a child and mother.

“I spend a lot of time with my keiki making leis and just spending time outside. When you step outside, take a breather and actually stop and smell, it brings so much calmness and joy. I feel like that’s what keiki days were: It was our youth and no-worries time.”

CRAFTING: She spent months testing

mixtures of essential and fragrance oils to perfect the scents she first envisioned for her mother, then added more scents as her business 76

SEPTEMBER 2024

PHOTO COURTESY: KIANA KEALI’IHOLOKAHIKI BOURNE

expanded. The roll-on pīkake oil (Arabian jasmine) is her favorite because of its sentimental value and elegant aroma; she wears it on her wrists and often carries it in her car. Her other popular fragrances include kupaloke (tuberose), pua melia (plumeria), kiele (gardenia) and tiare (Tahitian gardenia).

Hamada also honors her Samoan and Tongan heritage with her products by including scents of plants found in those archipelagos, such as ‘awapuhi (ginger) and aloalo (hibiscus).

COMPANY’S NAME: Hamada says

Ha‘a is her daughter’s name and refers to the basic hula stance in which dancers’ knees are bent, signaling they’re ready to begin dancing. She hopes this symbol of

preparedness inspires others to pursue their passions while staying connected to home.

“I want people to know that I’m a local girl. And I want our products to show that but also show that we can be in that level up there with those bigger brands, as luxurious as those bigger brands.”

OPERATIONS: Her participation in

the Hawai‘i FoundHer business accelerator program, which began in March, has provided networking opportunities and taught her new techniques for packaging and web design. “I feel like that was probably the best thing that has ever happened to me as a business owner, and they have also pushed me forward so much and taught me so much.”

MEMORIES OF THE SCENTS OF LUSH GREENERY AND FLOWERS INSPIRED HAMADA TO CRAFT A COLLECTION OF LINEN AND ROOM SPRAYS AS A GIFT FOR HER MOTHER. She’s also helped start a Kaua‘i group of female business owners who support and learn from each other.

PLANS: She operates the business

at her Wailua home, with help from her sister and niece. Most revenue comes from wholesaling to stores and female-owned businesses throughout Hawai‘i, though she hopes to improve her direct-to-consumers website and eventually open a physical store for her products and those of other local artisans.

“I don’t want it to be too big because I don’t want it to lose its essence, which is Kaua‘i local style.

Keep it old school and authentic.”

THIS INTERVIEW HAS BEEN LIGHTLY EDITED FOR BREVITY.

H AWA I I B U S I N ES S

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IS YOUR COMPANY ONE OF THE

BEST PLACES TOIN HAWAI‘I? WORK O U R P R O G R A M I D E N T I F I E S T H O S E E M P L OY E R S W H O D O T H I N G S R I G H T BY C R E AT I N G W O R K P L A C E C U LT U R E S T H AT R E C R U I T E M P L OY E E S A N D M A K E T H E M WA N T TO S TAY. W E G I V E R ECO G N I T I O N W H E R E I T ’S D U E A N D P ROV I D E E M P L OY E R S W I T H H O N E S T A N D U S E F U L F E E D B A C K F R O M T H E I R E M P L OY E E S .

R E G I S T E R YO U R B U S I N E S S AT

W W W. B E S T P L A C E S TO W O R K H AWA I I . C O M T H E D E A D L I N E TO R E G I S T E R I S O C T O B E R 1 8 T H

AN

L DESI

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G

AW A R D S

2O24

UA

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N

A S PEC I A L PU B L I CAT I O N O F A I A H O N O LU LU

TH

DESIGN AWARDS

THE AMERICAN INSTITUTE OF ARCHITECTS, HONOLULU CHAPTER PRESENTS

Shaping Communities Through Design Excellence

Juried Awards Community Impact Award People’s Choice Awards Mayor’s Choice Award Hawai‘i Energy Award USGBC Hawai'i Sustainability Award Hawaii Home + Remodeling Editor’s Choice Award Student Design Awards Distinguished Entrants H AWA I I B U S I N ES S

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TABLE OF CONTENTS PRESIDENT 'S MESSAGE

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PRESIDENT’S MESSAGE

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MAHALO TO OUR SPONSORS

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Aloha,

84

MEET THE JURORS

85

AIA FRAMEWORK FOR DESIGN EXCELLENCE

86-95

JURIED AWARDS: AWARDS OF EXCELLENCE AWARDS OF MERIT HONORABLE MENTIONS

96

COLLABORATION AWARDS

97

STUDENT DESIGN AWARDS

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Table of Contents

AWARD LEVELS AND PROJECT CATEGORIES

AIA Honolulu celebrates the exceptional design accomplishments of our chapter members every year. Since 1958, we have been recognizing outstanding projects, and we continue to do so with our 66th Annual Design Awards. Our aim is to acknowledge and promote design excellence within our community, highlighting the significance of good design.

The judging process carefully evaluates how each project aligns with The American Institute of Architect’s (AIA) Framework for Design Excellence, which outlines 10 fundamental design principles focused on advancing towards a zero-carbon, healthy, just, resilient, and equitable built environment. By prioritizing these principles, architects actively contribute to the progression of the Hawai‘i Clean Energy Initiative, with the ultimate goal of achieving 100% clean energy by 2045, and the federal government’s strategy to achieve net-zero emissions from the buildings sector by 2050.

This year, we have seen a significant increase in the number of award submissions in the Unbuilt category, surpassing volumes from previous years. This trend clearly indicates the growing pride of our design community in their work and their eagerness to share their achievements with their colleagues.

Mahalo to all of our members and students who submitted projects for consideration. Special thanks to this year’s jury for taking on the challenging task of selecting the best of the best to receive awards. And finally, congratulations to the award recipients.

DISTINGUISHED ENTRANTS

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STUDENT DISTINGUISHED ENTRANTS

D E S I G N AWA R D S COMMITTEE CHAIRS

Ryan Sullivan, AIA Stephanie Ing, Assoc. AIA Juliann Chen, Assoc. AIA Kristoffer Jugueta, Assoc. AIA

A I A H O N O L U L U S TA F F

Julia Fink, EVP Camilla Nicholas, Assistant Director Skylyn Woodward, Admin & Events

Wayne Goo, AIA 2024 AIA HONOLULU PRESIDENT

D E S I G N AWAR DS CO M M IT TE E

Calvin Bulan, Assoc. AIA John Fullmer, AIA Lisa van den Heuvel, Allied Member Katalina Kim, Assoc. AIA Liana Takamine, AIA Lorena Yamamoto, AIA

E DITO R & EXECUTIVE PUBLISHER

Steve Petranik CO - PUBLISHER

Kent Coules C R E AT I V E DI R ECTO R

Jeff Sanner

S E N I O R AC C O U N T C O O R D I N AT O R

Rebecca Brooking AC C O U N T EXECUTIVES

Pam Saito YongChae Song

AIA Design Awards 2024 is published

by Hawaii Business Magazine, in partnership with AIA Honolulu, September 2024 ©2024 by aio Media Group, 1088 Bishop St., Suite LL2, Honolulu, HI 96813.

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MAHALO T O O U R 2 0 24 A I A H O N O L U L U D E S I G N AWA R D S P O N S O R S !

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PROJ E C T CATEG O R I E S

AWARD OF EXCELLENCE

Projects are submitted and judged in one of our seven categories. The number of projects awarded in each category and the award level (Excellence, Merit, Honorable Mention) shall be determined by the jury.

Requires unanimous vote of the jury that a project excels in all aspects. Reserved for those projects which stand out from all of the meritorious award winners. This highest honor recognizes projects which are deemed to exemplify excellence of architectural design on all levels of analysis, and exemplify the highest standards to which AIA members aspire.

AWARD OF MERIT

Requires consensus from the jury that a project is deserving for a high quality of work overall.

Granted to projects which display a high standard of architectural quality and design.

HONORABLE MENTION

Responds to notable achievements in one or more particular project aspects; area(s) that stood out, as agreed through consensus by the jury.

RESIDENTIAL

Completed projects including single-family residential, multi-family residential, residential housing community planning, and residential renovations, additions and historic preservation. Residential projects of various sizes and scope are welcome as long as the project involved substantial exterior alterations.

COMMERCIAL/INDUSTRIAL

Completed projects including public and private developments of a commercial nature comprising retail, industrial, manufacturing and hospitality.

Commercial renovations, historic preservation, adaptive reuse as well as new construction projects are eligible.

UNBUILT

Completed projects including public and private developments of an institutional nature: K-12 and higher education, recreational facilities/parks, hospitals and medical facilities, and utilities.

Unbuilt entries may include any project that is commissioned (client sponsored) or intended for construction, purely theoretical work not intended for construction, submitted individually (by AIA or Assoc. AIA), as a team. The jury will review and select entries in this category based on creativity, originality, power and potential of the ideas presented.

INTERIOR ARCHITECTURE

COMMUNITY IMPACT AWARD

Completed projects involving substantial interior and minimal exterior alterations. Examples of projects in this category include, but are not limited to, tenant improvements and new tenant spaces within an existing (or by others and/or previously completed) exterior shell/space.

Also includes residential interior renovations with minimal exterior improvement.

Recognizes projects that are designed to remove barriers and burdens, physical or abstract, empowering and enabling people to gather, connect, live and function to their highest potential, ultimately bringing a community together. This award is unique in that it relies on the experiences of end users.

Entries must demonstrate significant social impact.

INSTITUTIONAL

A I A H O N O L U L U D E S I G N AWA R D S 2 024

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M E ET TH E J U RO R S | PRO F E SS I O NAL CATEG O R I E S

Meet the Jurors

LAURA AYERS, AIA, LEED AP (AIA HONOLULU) PRINCIPAL & CO-OWNER, WHITESPACE ARCHITECTS

APRIL HUGHES, AIA, NCARB, LEED AP BD+C (AIA CHICAGO) PRESIDENT, HPZS

BRIAN MASUDA, AIA, LEED AP, WELL AP (AIA NEW YORK) DESIGN PRINCIPAL, ENNEAD ARCHITECTS

WhiteSpace Architects is a woman-owned architectural firm with offices on Oahu and the Big Island. Laura received a Bachelor degree from Georgia Tech and a Master's in Architecture from the University of Michigan. She moved to Hawai‘i and joined Philip White Architects in 2001 and became licensed in Hawai‘i in 2006. She earned an ownership role in 2016 when she and Pip White became partners and re-branded the firm as WhiteSpace Architects.

With over two decades of experience in architecture, she has led many of the firm's most notable and award-winning commercial, educational, and residential projects.

Laura spearheads two quarterly events for the local industry: a luncheon for female architects to encourage mentorship and a Small Firm Roundtable discussion. She is also on the AIA Board of Directors for 2024-25.

April is the President at HPZS. Since graduating from the University of Kansas, she has received recognitions like the 2014 AIA Chicago Dubin Family Young Architect of the Year and the AIA Illinois John Wellborn Root Award in 2013. She is dedicated to the firm's mission as a woman-owned enterprise, and she advocates for a net-zero future, all while championing opportunities for women, ensuring their voices are heard and valued.

She brings vast experience in sustainable design, with a track record of delivering platinum-rated LEED projects and pioneering net-zero energy designs.

She served on AIA Wisconsin Design Excellence and was named a DuPont Emerging Leader at the Design Futures Council Sustainability Summit. She served as Board President of AIA Chicago in 2020, highlighting her emphasis on community enrichment and driving positive change within and beyond the industry.

Brian is a Design Principal at Ennead Architects and an alum of the University of Hawai'i School of Architecture. With a portfolio including award-winning projects in higher education, visual and performing arts, commercial mixed-use, retail, research laboratories, and healthcare across the United States and Asia, he brings diverse experience and perspective to his collaborative design process. As a co-leader of Ennead's Cultural and Performing Arts Center of Excellence, he serves as an office resource focused on performing arts and cultural project metrics, trends, and innovations. Additionally, he has contributed his expertise as an educator, teaching integrated design at Cornell and Columbia Universities. Brian recently served as a distinguished member of the Urban Land Institute New York 2023 awards for Excellence in Development Jury.

YASUSHI ISHIDA, AIA (AIA HONOLULU) ARCHITECT & ASSISTANT PROFESSOR, UNIVERSITY OF HAWAI'I AT MĀNOA SCHOOL OF ARCHITECTURE

Yasushi Ishida is a licensed architect and an Assistant Professor at University of Hawai'i at Mānoa School of Architecture. He received his MArch from the Southern California Institute of Architecture in 2004. He has over 15 years of professional experience, working for firms such as Atelier Hitoshi Abe, Gensler, Morphosis, and Michael Maltzan Architecture, serving a significant role in projects such as The Broad Museum (Los Angeles), Emerson College (Los Angeles) and Phare Tower (Paris, France). Previously, Ishida has been a visiting assistant professor at Woodbury School of Architecture from 2015 to 2018 and has taught at Cal Poly Pomona.

LORRIN MATSUNAGA, AIA, LEED AP (AIA HONOLULU) FOUNDING PARTNER, URBAN WORKS

Lorrin is a partner at Urban Works in Honolulu, which has focused on the design of educational, housing and community-related projects since its founding in 1984. Lorrin maintains active involvement on projects to provide design leadership and to foster dialogue between the client, stakeholders, and design team. After receiving his Bachelor of Arts in Environmental Design and Master of Architecture degrees from the University of Washington, Lorrin worked in smaller firms in Seattle, where he learned about the joy of creative design, mentorship and appropriate placemaking. He believes in the importance of reading, drawing and travel to help formulate ideas and intentions, and to experience architecture first-hand.

M E ET TH E J U RO R S | STU D E NT CATEG O R I E S

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J A S O N DAV I S , AIA, LEED AP (AIA HONOLULU) PRINCIPAL ARCHITECT, RIM | A GHD COMPANY

H A Z E L G O , AIA (AIA HONOLULU) ASSOCIATE AND PROJECT ARCHITECT, WCIT ARCHITECTURE

As Principal, Jason is a leader and mentor to a new generation of young architects while serving as the company’s “go-to” creative designer and project manager.

He is a tireless innovator who always pushes to adopt new technologies. He is inspired by Hawai‘i’s natural beauty, and strives to incorporate local history, culture, and art in his designs. He has 27 years of experience in architectural design and project management, and has spent more than eight years with RIM over two stints with the company.

Specializing in creative and culturally inspired hospitality projects, he has worked on some of RIM’s most daring and recognizable projects including the Honolulu Design Center, UH Cancer Center, high-profile hotels and shopping centers across O‘ahu. He believes that having a complete understanding of a place – culture, climate, and community – is the key to a successful design.

A graduate of Carnegie Mellon University, Hazel is an architect with design and architectural expertise gained from working on local, national, and international projects in New York City, Washington, D.C. and now in Honolulu with WCIT Architecture. Her experience working on a broad range of project typologies and scales over the last 18 years has contributed to her attention to detail, efficiency, forward thinking and flexible management style, and a design process grounded in the outdoor environment, the human experience of place, and story-telling; while her love of nature animals, plants, and the ocean - provides a constant source of inspiration.

SEPTEMBER 2024

H A L E TA K A Z AWA , AIA (AIA HONOLULU) SENIOR PROJECT ARCHITECT AND RESEARCHER, FERRARO CHOI & ASSOCIATES, LTD.

Driven by extreme climate design, Hale champions net-positive, resilient buildings and communities both in urban and remote areas. He delves into the critical intersections of place, energy, water, equity, culture, infrastructure, climate change, and local vulnerabilities, empowering green design with the goal of building and community self-sufficiency. At Ferraro Choi, Hale leads preplanning, vulnerability studies, green and regenerative design processes while spearheading FCA Research with a mission of innovation and sharing.

A S PEC I A L PU B L I CAT I O N O F A I A H O N O LU LU

INTEGRATION Good design elevates any project, no matter how small, with a thoughtful process that delivers both beauty and function in balance. It is the element that binds all the principles together with a big idea.

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What is the concept or purpose behind this project, and how will the priorities within the nine other principles inform the unique approach to this project?

How will the project engage the senses and connect people to place?

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What makes the project one that people will fight to preserve?

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What design strategies can provide multiple benefits across the triple bottom line of social, economic, and environmental value?

Design for

EQUITABLE COMMUNITIES Design solutions affect more than the client and current occupants.

Good design positively impacts future occupants and the larger community.

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What is the project’s greater reach?

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How could this project contribute to creating a diverse, accessible, walkable, just, human-scaled community?

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Who might this project be forgetting?

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How can the design process and outcome remove barriers and promote inclusion and social equity, particularly with respect to vulnerable communities?

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Design for

WATER

Good design conserves and improves the quality of water as a precious resource.

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How does the project use water wisely, addressing efficiency and consumption while matching water quality to appropriate use?

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How can the project’s water systems maintain function during emergencies or disruptions?

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How does the project handle rainfall and stormwater responsibly?

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How does the project contribute to a healthy regional watershed?

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How are materials and products selected and designed to reduce embodied carbon and environmental impacts while enhancing building performance?

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How can material selection reduce hazards and support equitable labor practices in the supply chain?

ECONOMY

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How does the project promote zero waste throughout its life cycle?

Good design adds value for owners, occupants, community, and planet, regardless of project size and budget.

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How does the project celebrate local materials and craft?

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How long will the project last, and how does that affect your material?

Design for

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How do we design robust projects that enhance economic, natural, intellectual, and experiential resources?

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How will the design choices balance cost with long-term value?

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How can the performance of this project be improved in ways that are cost and design neutral?

Design for

ENERGY Good design reduces energy use and eliminates dependence on fossil fuels while improving building performance, function, comfort, and enjoyment.

What opportunities exist in this project to include, engage, and promote human connection?

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How can the design support health and resilience for the community during times of need or during emergencies?

How can the project exceed building code efficiency standards to approach net zero energy and net zero carbon?

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Can the project be powered by clean, renewable energy sources?

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How can the project provide for continuous performance improvements over its lifetime?

Good design mutually benefits human and nonhuman inhabitants. What we design has a direct impact to the ecosystems in and around the site. Understanding the site dynamics will allow us to be more conscious of our impacts.

Good design depends on informed material selection, balancing priorities to achieve durable, safe, and healthy projects with an equitable, sustainable supply chain to minimize possible negative impacts to the planet.

What factors (priorities) will be considered in making material selection decisions?

How can passive design strategies contribute to the project’s performance and form?

ECOSYSTEMS

RESOURCES

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Design for

Design for

Design for

CHANGE Adaptability, resilience, and reuse are essential to good design, which seeks to enhance usability, functionality, and value over time.

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How does the project address future risks and vulnerabilities from social, economic, and environmental change?

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How is the project designed for adaptation to anticipate future uses or changing markets?

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How does the project address passive survivability and/or livability?

Design for

Good design supports health and well-being for all people, considering physical, mental, and emotional effects on building occupants and wider surrounding community.

Every project presents a unique opportunity to apply lessons learned from previous projects and gather information to refine the design and construction process.

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How can the design support the ecological health of its place over time?

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How can the design encourage a healthy lifestyle?

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How can the design help users become more aware and connected with the project’s place and regional ecosystem?

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How can the project provide greater occupant comfort?

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How can the project be welcoming and inclusive for all?

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How can the project support regional habitat restoration?

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How can the project connect people with place and nature?

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How can the project support equitable access to nature?

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How can material selection reduce hazards to occupants and communities throughout the supply chain?

AIA Framework for Design Excellence The world today is facing broad and complex challenges that threaten every aspect of our lives. The architect’s call to protect the health, safety, and welfare of the public has a new and broader meaning amid challenges such as increasing climate extremes and social inequity.

Every project can be used as a platform for addressing big problems and providing creative solutions. Every line drawn should be a source of good in the world.

The Framework for Design Excellence represents the defining principles of good design in the 21st century.

Comprised of 10 principles and accompanied by searching questions, the Framework

seeks to inform progress toward a zero-carbon, equitable, resilient, and healthy built environment.

Design for

WELL-BEING

AIA Framework

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A I A H O N O L U L U D E S I G N AWA R D S 2 024

Design for

DISCOVERY

How can the design process foster a long-term relationship between designers, users, and operators to ensure design intentions are realized and the building project performance can improve over time?

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How are performance data and experiential stories shared, even if the findings fall short of the vision?

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What strategies promote a sense of discovery and delight?

These are to be thoughtfully considered by designer and client at the initiation of every project and incorporated into the work as appropriate to the project scope. The Framework is intended to be accessible and relevant for every architect, every client, and every project, regardless of size, typology, or aspiration.

The Framework for Design Excellence challenges architects with a vision the profession strives to achieve.

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AWARD OF EXCELLENCE HAWAI‘ I ENERGY AWARD FOR EXCELLENCE IN ENERGY- EFFICIENT DESIGN TH E MAYOR'S CHOICE AWARD INSTITUTIONAL FIRM G70 CLIENT State of Hawai‘i

Department of Education

CONTR ACTOR Nordic PCL

Construction, Inc.

LOCATION Kihei, Maui, Hawai‘i PHOTOS: OLIVIER KONING; TRAVIS ROWAN PHOTOGRAPHY ABOUT THE HAWAI‘I ENERGY AWARD FOR ENERGY-EFFICIENT DESIGN The Hawai‘i

Energy Award recognizes buildings that help Hawai‘i toward our 100% clean energy goals by incorporating energy efficiency as a foundational value.

ABOUT THE MAYOR'S CHOICE AWARD

The Mayor's Choice Award was selected by the Honolulu Mayor Rick Blangiardi among all the entries.

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SEPTEMBER 2024

Kūlanihāko‘i High School

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U I LD I N G S CAN HAVE AN I M PAC T O N OU R CO N SCI OU S N E S S , WH ETH E R WE R EALIZE IT O R N OT.

With that in mind, Kūlanihāko‘i High School, in Kihei, was designed with “forward thinking,” says Charles Kaneshiro, AIA, President, G70 Design, in Honolulu. “We wanted to build something special for the students.”

The result is a LEED certified building, pursuing a Living Building Futures - Net Zero Building certification. “It’s like LEED on steroids.”

Kaneshiro says.

The 50-acre campus operates completely off-grid, with net-zero energy. It is integrated into the surrounding environment from the landscaping to the aluminum trellises over 2-story classroom buildings to reduce temperatures.

It’s even designed with awareness to where the sun rises and sets, and to provide shade from the warm Kihei sun, to naturally reduce heat in the buildings.

“You’ll notice a 10-degree drop in temperature,” Kaneshiro says.

“You’ll see the students hanging outdoors, because it’s quite comfortable, like being under the shade of a tree.”

Other features of the campus include a stormwater retention system that prevents the school from flooding by using a large retention basin.

A S PEC I A L PU B L I CAT I O N O F A I A H O N O LU LU A I A H O N O L U L U D E S I G N AWA R D S 2 024

“This project stands out for its thoughtful and thorough approach, evident in its decade-long development. The comprehensive sustainability strategy, from building design to site planning, demonstrates a deep understanding of local context and commitment to sustainability.” — JU ROR’S COM M E N T

Award of Excellence

The state-of-the-art, multi-million-dollar campus opened in 2023 and currently has about 800 students. The master plan allows for double that, with each classroom building able to accommodate about 400 students.

Though it may look expensive, the campus was not designed beyond any other high

school Department of Education budgets, says Kaneshiro.

“That was the mantra. We have to do it within a standard high school design budget. (The DOE) didn’t spend any more money (on this campus) than if they built any standard concrete block school.”

“At the campus level, the positioning of the library and cafeteria centrally as the 'heart' of the campus is very effective. These spaces, along with their large covered-exterior communal area, act as a hub or mixing chamber, enhancing the campus's social dynamics.” — J U RO R’S CO M M EN T

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AWARD OF EXCELLENCE RESIDENTIAL

FIRM Walker Warner ADDITIONAL DESIGN FIRMS Philpotts

Interiors (Interior Design); David Y. Tamura Associates (Landscape Design)

CLIENT Withheld per owners' request CONTR ACTOR Metzler Contracting

Co. LLC.

LOCATION Kailua-Kona, Hawai‘i

Island, Hawai‘i

PHOTOS: MATTHEW MILLMAN PHOTOGRAPHY

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SEPTEMBER 2024

Hale Kiawe

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I M PLI CIT Y I S AT TH E E S S E N CE O F HALE KIAWE .

Liv ing sy mbiotically w ith island culture and env ironment was the inspiration behind desig ning this residential project, and the result embodies that intention.

When creating the property within the Kūki‘o Resort on the Kona Coast, special attention was given to organizing the entire space, thinking pretty much about “what we can do without,” says Gregory Warner, AIA, architect, founder & partner at Walker Warner, the architectural firm behind the design.

The residence sits above a forest of Kiawe trees, hence the name. It reflects a minimalist approach, in keeping with values of quietness and simplicity.

The inspiration for the residence stems from the owners’ point of view: what’s needed, and also what is not needed, keeping the design as simple as possible, based on their environmental and cultural values.

A S PEC I A L PU B L I CAT I O N O F A I A H O N O LU LU A I A H O N O L U L U D E S I G N AWA R D S 2 024 Award of Excellence

The site was developed with attention to “what the land wants,” and the design firm worked closely with the landscape architects to create an idyllic living space in accordance with the island’s environment, Warner says.

The residence is also reflective of local, agricultural designs, in keeping with where the residence is located within the islands. There is a “pico,” or center, of the project, around which other buildings reside. The architecture is practical, simple, with light coming in from two sides, with cross-ventilation.

This design reflects something new in residential resort design, Warner says.

“The Hale Kiawe residence is exemplary and satisfying on many different levels - as a response to site circumstance – approach, views, privacy vs. openness, etc. – and to formal architectural expression, materials and informed detailing. The parallel pavilions and their shifting within the landscape provide separation/privacy and singular views.”

— JU ROR’S CO M M EN T

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AWARD OF M ERIT COM M U N ITY IM PACT AWARD RESIDENTIAL FIRM G70 CLIENT City and County of

Honolulu, Department of Land Management

CONTR ACTOR Allied Builders System LOCATION Honolulu, O‘ahu, Hawai‘i PHOTOS: HAWKINS BIGGINS; OLIVIER KONING

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SEPTEMBER 2024

806 Iwilei Affordable Housing & Resource Center

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H I S A DA P T I V E R E U S E A F F O R DA B L E H O U S I N G P R O J E C T S H OW C A S E S A BLEND OF DESIGN SENSIBILITY AND

S U S TA I N A B I L I T Y. The four-story mixed-use building integrates 27 apartments with essential community services and resources. Notable features such as natural ventilation, solar tube skylights, and biofilter planters highlight the project's responsible and thoughtful approach to sustainability.

“A thoughtful adaptive reuse project.

The modification and addition to the existing structure reinforced programmatic clarity while resulting in an overall massing that responds nicely to the surrounding context.

The project is the result of responding to immediate needs within a community while communicating a sense of hope through design and art.” — JUROR’S COMMENT

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Beachfront Sea Level Rise Adaptation AWARD OF M ERIT UNBUILT FIRMS University of Hawai‘i at

Mānoa School of Architecture, Sea Grant, and School of Ocean and Earth Science and Technology

LOCATION Waikīkī, O‘ahu, Hawai‘i RENDERINGS: ERIC TEEPLES, DARCH, ASSOC. AIA; GERMAN FAILANO, MA, MLA; DESIREE MALABED; GEORGINA CASEY; CHRIS LOMBOY, DARCH; JOSEPHINE BRIONES, DARCH, ASSOC. AIA; WENDY MEGURO, AIA, LEED FELLOW; CHIP FLETCHER, PHD

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HIS DESIGN RESEARCH PROJECT IS A N E XC E L L E N T E X A M P L E O F H OW A R C H I T E C T S C A N P L AY A C R U C I A L

R O L E in informing and influencing the public in making key decisions for the future. By providing site-specific architectural renderings of the impact of sea level rise on Waikīkī and illustrating potential adaptation strategies, the team successfully prompted input from the community and influenced government-led adaptation planning.

“The project should be lauded as its impact was felt immediately in its ability to communicate what could have been trapped in academia to the public at large the impending changes due to the climate emergency. Future development and human behavior may have already been positively modified, meaning the reach of this exercise may be felt for years to come.” — JUROR’S COMMENT

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AWARD OF M ERIT COMMERCIAL/INDUSTRIAL FIRM G70 CLIENT Withheld per owner's

request

CONTR ACTOR Nordic PCL

Construction, Inc.

LOCATION Honolulu,

O‘ahu, Hawai‘i

PHOTO: ADAM TAYLOR PHOTOGRAPHY

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SEPTEMBER 2024

Civil Beat Plaza

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OCATED IN THE WALKABLE COMMUNITY OF KAIMUKĪ ,

this build incorporates retail, restaurant, and office spaces as well as ample parking, a shaded plaza, and safe loading zones for vehicular circulation.

“The Civil Beat Plaza is a commendable urban infill for the Kaimukī Business District. Because it is a new building encompassing an entire block within a district comprised of older existing buildings, its location and design response were important. The project maintains/contributes to the character and scale of the Kaimukī business corridor through architectural forms that utilize varying building setbacks, materials and color. The project continues the pedestrian sidewalk experience by locating the parking underground and service/drop off operations at the rear.” — JUROR’S COMMENT

A S PEC I A L PU B L I CAT I O N O F A I A H O N O LU LU A I A H O N O L U L U D E S I G N AWA R D S 2 024 Award of Merit

AWARD OF M ERIT RESIDENTIAL FIRMS Solomon Cordwell Buenz

(SCB); Benjamin Woo Architects (Architect of Record)

ADDITIONAL DESIGN FIRM

Jules Wilson Design Studio (Interior Design) CLIENT Brookfield Properties;

OliverMcMillan

CONTR ACTOR Nordic PCL

Construction, Inc.

LOCATION Honolulu, O‘ahu, Hawai‘i

Līlia Waikīkī

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Ī L I A WA I K Ī K Ī R E D E V E LO P E D 2 . 5 AC R E S O F A L I ‘ I T R U S T L A N D I N T H E H E A R T O F WA I K Ī K Ī into a commercial

mixed-use rental project including the only full-service grocer in the area. The 28-story tower, which includes 91 affordable housing units, is part of the revitalization of the Kūhiō Avenue Corridor.

The preservation of heritage trees and iwi kūpuna demonstrates a deep respect for local culture and natural heritage.

“The social, wellness and community project drivers are commendable.

Beyond the non-mandated incorporation of affordable rental units, and being Hawai‘i’s first Fitwel certified project, the project’s tripleheight urban lanai offers a unique and welcoming addition to the Waikīkī pedestrian experience.”

— JUROR’S COMMENT

PHOTO: ADAM TAYLOR PHOTOGRAPHY

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AWARD OF M ERIT UNBUILT FIRM AMA A/E ADDITIONAL DESIGN FIRM Sasaki CLIENT College of Tropical Agriculture

and Human Resources, University of Hawai‘i at Mānoa

LOCATION Honolulu, O‘ahu, Hawai‘i RENDERING: EPIC INSPIRED

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SEPTEMBER 2024

The Mānoa Agricultural Innovation & Learning Exchange Project

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H E M Ā N OA AG R I C U LT U R A L I N N OVAT I O N A N D L E A R N I N G E XC H A N G E P R O J E C T ( M A I L E ) is

a conceptual design for the University of Hawai‘i at Mānoa College of Tropical Agriculture and Human Resources (CTAHR). The design proposes an integrated relationship between agricultural landscape, institutional research, and community to illustrate the principles of sustainable agriculture employed centuries prior in this valley neighborhood, creating a meaningful whole of both past and present.

“The design proposal is an example of didactic architecture.

A structure and landscape that transcends a space for learning by serving as an instrument for resource conservation, resiliency, and agricultural research.”

— JUROR’S COMMENT

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— JUROR’S COMMENT

HONORABLE M ENTION COMMERCIAL/INDUSTRIAL FIRM hi•arch•y llp (Lead Architect /

Architect of Record)

ADDITIONAL DESIGN FIRM ZGF

(Interior Architect)

CLIENT Hawaii State Federal

Honorable Mention

“Another important distinction in sustainable design is the ability to be a careful steward of our physical resources. This project could have replaced what some might throw away as a brutalist building from a time gone by and yet the client and design team saw the promise of a tactful retrofit that gives this project a new life with today's technology.”

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Hawaii State FCU Headquarters

Credit Union

CONTR ACTOR Nordic PCL

Construction, Inc.

LOCATION Honolulu, O‘ahu, Hawai‘i PHOTO: OLIVIER KONING

Lavaflow 8 “The residence is unapologetically simple and understated, with its use of unadorned concrete walls that help to define the spaces and offer a contrast to the generous glass openings. The residence allows the residents to see the surrounding nature, while alternatively revealing itself to its natural surroundings.”

— JUROR’S COMMENT

HONORABLE M ENTION RESIDENTIAL FIRM Craig Steely Architecture CLIENT Françoise Bourzat and

Aharon Grossbard

CONTR ACTOR Hilo Coast

Construction

LOCATION Pāhoa, Hawai‘i Island,

Hawai‘i

PHOTO: DARREN BRADLEY PHOTOGRAPHY

Wailuku Civic Complex Parking Garage “A unique take on a typology that is often banal. A parking garage that strives to be a community space and catalyst achieving activation and a sense of connection through external facing pedestrian circulation typically contained in shafts. Balances a fresh approach with functional efficiency, setting the stage for the future cultural center it will ultimately serve.”

— JUROR’S COMMENT

HONORABLE M ENTION COMMERCIAL/INDUSTRIAL FIRM Ferraro Choi And Associates CLIENT County of Maui CONTR ACTOR Hawaiian Dredging

Construction Company

LOCATION Wailuku, Maui, Hawai‘i PHOTO: ANTON KISSELGOFF / HI MEDIA CREATIVE

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USGBC HAWAII SUSTAINABILITY AWARD

Slice of Paradise

RESIDENTIAL

“Slice of Paradise represents the foundation for LEED-certified green buildings using well thought out deconstruction, design, and construction concepts executed flawlessly.

The meticulous design and planning show through in every detail, both aesthetically and in its environmental benefits.” — USGBC HAWAII

FIRM Peter Vincent Architects ADDITIONAL DESIGN FIRMS Star Pierce

Design (Interior Design) Aloha ‘Āina Landscaping (Landscape Design)

CLIENT Withheld per owner's

Other Awards

request

CONTR ACTOR Mokulua High

Performance Builder

LOCATION Kahuku, O‘ahu, Hawai‘i PHOTO: ADAM TAYLOR PHOTOGRAPHY

HAWAII HOM E+REMODELING EDITOR'S CHOICE AWARD RESIDENTIAL FIRM ADM Architecture + Interiors CLIENT Withheld per owner's

request

Hale Le'ahi “The structure integrates natural light and ventilation seamlessly through clerestory windows that take the breath away. The home feels light and airy and the architecture fits nicely into the neighborhood.”

— EDITOR'S COMMENT

CONTR ACTOR Barker Kappelle

Construction

LOCATION Honolulu, O‘ahu, Hawai‘i PHOTO: ANDREA BRIZZI PHOTOGRAPHY

PEOPLE 'S CHOICE AWARD INTERIOR ARCHITECTURE FIRM HDR, Inc. CLIENT Hawaiian Airlines CONTR ACTOR Hensel Phelps LOCATION Honolulu, O‘ahu, Hawai‘‘i PHOTO: ARNEL DOMINGO ABOUT THE PEOPLE’S CHOICE AWA R D The People’s Choice Award is

selected following a two-week online voting process that is open to AIA members and the public at large.

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Hawaiian Airlines Air Operations Support Space Over 1,000 people voted in the People's Choice contest. The new breakroom, locker and shower rooms, briefing room, workstation area, and management offices leave end users with workplace pride.

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STUDENT DESIGN AWARDS The Student Design Awards honor student achievements in the design studio and provide a forum for student design excellence to be celebrated beyond the academic setting.

AWARD OF EXCELLENCE

Student Design Awards

PEOPLE 'S CHOICE AWARD UNDERGRADUATE

Mauna Kea Residence STUDENT Michael Griffin SCHOOL Honolulu Community College

“An integration of tradition and sustainability, the project stands as a beacon of aesthetic and functional excellence with a commitment to energy efficiency, well being, and ecological harmony.” — JUROR’S COMMENT

AWARD OF EXCELLENCE

HONORABLE M ENTION

GRADUATE

UNDERGRADUATE

CMU Park STUDENTS Siwei Su / Jiaqi Xu SCHOOL University of Hawai‘i at Mānoa School of Architecture

“Innovative use of the nondescript CMU block, elegant weaving of indoor and outdoor spaces, and seamless blurring of the boundary between ground and roof.” — JUROR’S COMMENT

Stacked Housing Complex STUDENT Edwin Sun SCHOOL University of Hawai‘i at Mānoa School of Architecture

“This ingenious design stacks housing units in a way that creates a dynamic and opportunity-filled atrium space. The choice to use the extra space for green and blue roof opportunities give a hyper-local feel of a landscape-driven architectural response. ” — JUROR’S COMMENT

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DISTINGUISHED ENTRANTS

Distinguished Entrants

INSTITUTIONAL

Daniel Kahikina Akaka Veterans Affairs Clinic FIRM Ferraro Choi And Associates UNBUILT

CLIENT Hunt Companies Hawaii CONTR ACTOR Nan Inc. LOCATION Kapolei, O‘ahu, Hawai‘‘i

INSTITUTIONAL

PHOTO: ANTON KISSELGOFF / HI MEDIA CREATIVE

PBS Hawai‘i New Home FIRM G70 CLIENT PBS Hawai‘i CONTR ACTOR Allied Builders System LOCATION Honolulu, O‘ahu, Hawai‘i PHOTO: PBS HAWAI‘I

INTERIOR ARCHITECTURE

Senia

RESIDENTIAL

Kaulana Mahina

FIRM WRNS Studio CLIENT Anthony Rush & Katherine Nomura CONTR ACTOR JBA Construction LOCATION Honolulu, O‘ahu, Hawai‘i PHOTO: OLIVIER KONING

FIRM Ethos Architects LLC CLIENT BIT Wailuku CONTR ACTOR Moss Construction LOCATION Wailuku, Maui, Hawai‘i UNBUILT

PHOTO: DERIK ARAKI FINE ART PHOTOGRAPHY; MOSS CONSTRUCTION

Ala Wai Bridge FIRM HDR, Inc. ADDITIONAL DESIGN FIRMS Yogi Kwong Engi-

neers (Geotechnical Engineer); V+M Structural (Bridge Structural Engineer); KAI Hawaii (Structural Engineer); PBR Hawaii (Landscape Design) CLIENT Department of Transportation Services, City and County of Honolulu LOCATION Honolulu, O‘ahu, Hawai‘i RENDERING: HDR, INC.

INTERIOR ARCHITECTURE UNBUILT

Volcano Residence FIRM Mork-Ulnes Architects CLIENT Withheld per owner's request LOCATION Volcano, Hawai‘i Island, Hawai‘i RENDERING: VER3D

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UNBUILT

American Samoa Specialized Hospital FIRM AHL CLIENT LBJ Tropical Medical Center, American

Samoa Government

LOCATION Tāfuna, American Samoa RENDERING: AHL

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STUDENT DISTINGUISHED ENTRANTS

Student Student Distinguished Awards Entrants

GRADUATE

Lē‘ahi Home & Lapa‘au Park STUDENTS

Beau Nakamori / Hunter Wells SCHOOL University of Hawai‘i at Mānoa School of Architecture

UNDERGRADUATE

Community Nexus STUDENT

Jingsong Zhou SCHOOL University of Hawai‘i at Mānoa School of Architecture

UNDERGRADUATE

Da Crater Spa’t STUDENTS

Katherine Liu / Jazylnne Williamson / Soraya Ortiz SCHOOL Chaminade University of Honolulu

Congratulations To All The Winners!

VI EW I N FO R MATI O N ABOUT ALL SU B M I SSIO N S H E RE HT TPS :// W W W. AIAHONOLULU.ORG/ DESIGN -AWARDS/

UNDERGRADUATE

Hala Learning Center STUDENT

Sophia Abe SCHOOL University of Hawai‘i at Mānoa School of Architecture

UNDERGRADUATE

‘Kaka‘ako Cocoon’ STUDENT

Jennifer Rodriguez Flores SCHOOL University of Hawai‘i at Mānoa School of Architecture

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SEPTEMBER 2024

BY S I A N A H U N T DIRECTOR OF PHILANTHROPY, ALTRES FOUNDATION

5 Steps to a Successful Corporate Social Responsibility Program PHOTO: GETTY IMAGES

CORPORATE SOCIAL RESPONSIBILITY has evolved into a strategic imperative that aligns social impact with sustainability and profitability, transcending its status as a mere side project for businesses. A successful CSR program in Hawai‘i is thoughtfully strategic and embraces the essence of our diverse communities and culture.

Here are five steps to ensure successful CSR. 1. DEFINE YOUR PURPOSE AND VALUES.

Your CSR should be rooted in the collective vision and mission of your organization. Your leadership team should align in this vision, and if needed, take steps to improve internal and external behaviors to set the foundation for your CSR. 2. CONDUCT A SUSTAINABILITY ASSESSMENT.

Engage key stakeholders such as employees and customers through a comprehensive sustainability assessment that evaluates the priorities of your staff and the needs of the community. This assessment should consider the environmental and social impact of your operations and gather insights to make informed decisions.

3. SET SPECIFIC AND MEASURABLE GOALS.

Define measurable CSR goals that align with your purpose and priorities and determine how you’ll assess your progress. Establishing clear metrics is crucial for tracking progress and showcasing the impact of your initiatives. This approach fosters a sense of purpose and accomplishment among your team and ensures alignment with the principles and values of your organization.

4. INTEGRATE CSR INTO YOUR BUSINESS OPERATIONS.

Eventually, your CSR goals need to meet the reality of running your business. An effective CSR framework is integrated throughout the company and among employees, and not as an isolated initiative.

Establish employee-led CSR initia-

tives which can spur your team into action and inspire team engagement and leadership opportunities.

5. COLLABORATE AND COMMUNICATE.

The best CSR strategies are fortified through collaboration with likeminded local organizations. That heightens the strategies’ impact and nurtures broader community engagement.

Effective CSR programs also emphasize transparent internal communication, which means sharing successes, challenges and plans with your employees. This establishes trust within your team and with the people you serve, reinforcing your reputation as a responsible and socially conscious organization.

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PA R T I

BY ST E V E PETR AN IK

TO SEE THE METHODOLOGY FOR BOTH SURVEYS, READ THE ARTICLE ON THE BOSS SURVEY PUBLISHED IN AUGUST IN OUR PRINT MAGAZINE AND ON OUR WEBSITE.

Polls Measure Residents’ Attitudes about Hawai‘i’s Quality of Life and Population Decline TWICE A YEAR, the Anthology Marketing Group conducts two polls on behalf of Hawaii Business Magazine. This spring, the BOSS Survey contacted 407 business owners and executives and the 808 Poll reached 459 members of the general public.

HOW TO DEAL WITH HAWAI‘I’S DECLINING POPULATION

They were asked which of the following four options best mirrored their personal view on the subject.

Respondents in both surveys were presented with the following statement: After decades of growth, Hawai‘i’s population has declined for almost a decade, largely because the high cost of living induces many thousands to move away every year.

In both surveys, the differences on all responses between O‘ahu and Neighbor Island respondents were never more than a few percentage points – all well within the polls’ margins of error.

However, there were bigger differences among different segments of the general public: • Women were more likely than men – 82% to 72% – to agree that a greater effort should be made to lower the cost of living to allow more local people to afford to stay here.

• That same sentiment was shared by 83% of the people born and raised in Hawai‘i, but by only 70% of transplants to the state. Conversely, 16% of transplants favored a smaller state population versus only 7% of those born and raised in Hawai‘i.

Most of the surveys’ responses were published in the August print issue and online at hawaiibusiness.com, but I saved three questions about perennial local issues for this edition. This report also includes the BOSS survey within a survey of the local retail sector.

A greater effort should be made to lower the cost of living so people born and raised here can afford to stay.

8% 9% 10%

A stagnant or lower population is better for Hawai‘i for various reasons, including less strain on our natural resources and less demand for housing.

72%

6%

BUSINESSPEOPLE

6%

11% No strong feelings about whether Hawai‘i’s population increases or decreases.

We should try to gradually increase the population because a shrinking population threatens our future as a vibrant economy and society.

78%

GENERAL PUBLIC Note: Percentages don’t always add to 100 due to rounding.

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THE BOSS SURVEY & 808 POLL

BUSINESSPEOPLE GENERAL PUBLIC Greater support for small businesses and local enterprises HOW TO IMPROVE HAWAI‘I’S QUALITY OF LIFE Each respondent was presented with the following nine options and asked to select up to two that they felt would “improve the quality of life in Hawai‘i and create a more vibrant economy.” (Note: All of the 808 Poll and most of the BOSS Survey were conducted before the state Legislature passed and Gov. Josh Green signed into law a substantial cut in state income taxes.)

42%

27%

More investment in diversifying the economy beyond tourism and government spending

34%

37%

Lower taxes so people have more money to spend

26%

38%

More focus and spending on education and workforce development

23%

28%

Less government regulation, especially on new housing construction

21%

8%

More investment in infrastructure such as roads, bridges and broadband

20%

21%

Greater focus and spending on sustainability, clean energy and preserving the environment

16%

25%

More marketing to draw tourists, especially those from East Asia, who tend to spend more in Hawai‘i than visitors from the mainland U.S.

8%

7%

More efforts on reconciliation between Native Hawaiians and other ethnic groups

7%

6%

Among businesspeople, here are the biggest differences between O‘ahu and the Neighbor Islands:

In the 808 Poll of the general public: • 42% of O‘ahu respondents chose “Lower taxes so people have more money to spend.” On the Neighbor Islands, only 27% picked that option.

• 29% of the businesspeople surveyed on O‘ahu chose “More focus and spending on education and workforce development,” compared with only 12% of Neighbor Island businesspeople.

• Women were more likely to have chosen “More focus and spending on education and workforce development” than men – 33% vs. 22%. Men were more likely to have chosen “More investment in infrastructure” than women – 26% vs. 16%.

• 35% of Neighbor Island businesspeople chose “Less government regulation, especially on new housing construction,” compared with only 15% of O‘ahu respondents.

HOW MUCH INFORMATION SHOULD BE DISCLOSED? Respondents in both surveys were presented with the following statement: When people volunteer to serve without pay on public boards in Hawai‘i, they are often required to file disclosures about their income, investments and other details, and these disclosures are then made public.

Many local leaders, including the heads of several state agencies, say these public disclosures discourage many of the best qualified candidates from serving on public boards. They propose an alternative where the ethics commission searches these disclosures for potential conflicts of interest that might disqualify the candidates from serving, but do not disclose the information to the public. What is your opinion on this issue?

• College graduates were more likely to choose “Diversifying the economy” than those without college degrees – 43% vs. 28%. Meanwhile, 38% of those without college degrees chose “Greater support for small businesses and local enterprises,” compared with 19% of college graduates.

1%

DK/DA*

39%

Disclosure forms should still be required but they should be vetted by the ethics commission without being released to the public.

59%

BUSINESSPEOPLE

Disclosure forms should always be required and made public. *Did not know or did not answer

49%

51%

GENERAL PUBLIC Note: Percentages don’t always add to 100 due to rounding.

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PA R T I I

BY ST E V E PETR AN IK

TO SEE THE METHODOLOGY FOR BOTH SURVEYS, READ THE ARTICLE ON THE BOSS SURVEY PUBLISHED IN AUGUST IN OUR PRINT MAGAZINE AND ON OUR WEBSITE.

What’s Happening at Hawai‘i’s Stores IT ISN’T EASY BEING A LOCAL RETAILER: If you survived the Covid shutdowns, you still have to compete with other stores in your neighborhood and on your island, plus online retailers like Amazon and superstore chains like Walmart and Costco.

To gain insights into their successes and challenges, every two years, we conduct a survey of local retailers – large, medium and small. It’s a survey within the overall

The latest BOSS Survey of 407 local business owners and executives included 71 people whose companies get most of their revenue from retail sales. Here’s what those 71 told us.

BOSS Survey of business owners and executives from across the Hawaiian Islands.

The retailers are asked all of the questions that we ask everyone else, plus specific questions designed to understand what’s happening within the retail industry. Here are highlights of the survey we conducted in April and May of this year.

REVENUE, PROFIT AND STAFFING

On the three main measures of performance – revenue, profit and number of employees – the retailers we surveyed are DECLINES, DECLINES, ALL RETAIL BUSINESSES OTHER LOCAL doing slightly worse overall than the other businesses we ONLY BUSINESSES

surveyed. We asked everyone: What happened on these three measures of performance at your company? Did they go up, GROSS REVENUE hold steady or decline from the year before?

PROFIT BEFORE TAXES

This chart shows the percentage of businesses that said they suffered decreases in these key measures of performance. In each case, a higher percentage of retailers suffered declines than other types of businesses.

NUMBER OF EMPLOYEES

HOLIDAY SEASON SALES

28% 38% 19%

CHANGE IN SALES FROM PREVIOUS HOLIDAY SEASON

For many retailers, the most important time of the year is the holiday season, from around Thanksgiving to New Year’s Day. So every time we survey retailers, we ask about their latest holiday season and compare it to the previous holiday season. Did sales go up, hold steady or go down?

22% 42% 36%

This chart compares what retailers told us in the latest survey and what retailers said the last time we surveyed them. The results were almost identically gloomy. I had to go back to a BOSS Survey conducted in 2009 to find worse results from retailers.

SALES UP

41% 50% 22%

2021

SALES STEADY

24% 41% 34%

SALES DOWN 2023 Note: Percentages don’t always add to 100 due to rounding.

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THE BOSS SURVEY & 808 POLL

CUSTOMERS

ONLINE SALES

We asked the retailers if the overall number of their customers had gone up, held steady or gone down in the past year.

We asked retailers if their company had online sales: 62% said yes. Then we asked those with online sales a few questions.

24% 33%

UP

DOWN

27%

27%

NOT IMPORTANT

MAJOR

PART OF THE BUSINESS

• We learned that overall, the majority of those online sales were to local people – a result consistent with our previous surveys of local retailers.

• To gauge the impact of online sales on their companies, we gave retailers four options to characterize their online sales.

Here is what they chose.

17%

SIGNIFICANT BUT NOT MAJOR

29%

43%

NOT IMPORTANT

STEADY

BUT GROWING

ONLINE SALES IMPORTANCE

NUMBER OF CUSTOMERS ILLUSTRATION: VECTEEZY.COM

RECENT CHANGES

Retailers were asked to select from

ADDED INVENTORY

48%

NO CHANGES

26%

ADDED STAFF

21%

MAJOR CHANGES IN THE PRODUCTS WE CARRY MAJOR IMPROVEMENTS TO BRICK-AND-MORTAR STORE ENHANCED THE “MADE IN HAWAI‘I” ASPECT OF OUR BUSINESS ADDED ONLINE SHOPPING OR MADE MAJOR UPGRADES TO ONLINE SHOPPING

21%

ADDED LOCATIONS

5%

this list of options to characterize changes they have made over the past few years. They could choose as many as were appropriate.

20% 20% 16%

WHAT ARE YOUR CHALLENGES? Retailers were asked which of these challenges their companies face. The percentages reflect how many of the retailers said, “Yes, we face this challenge.”

They could select as many challenges as appropriate.

61%

49%

22%

19%

FINDING GOOD EMPLOYEES

RENT AND OTHER OPERATING EXPENSES

COMPETITION FROM ONLINE RETAILERS

COMPETITION FROM BIGGER STORES

The top challenge for local retailers was, by far, finding good employees. In seven previous surveys of retailers, that challenge was never cited by more than 44% of retailers.

4%

PRESSURE TO REDUCE PRICES

On the other hand, the pressure to reduce prices is at a low ebb. For instance, in 2012, 29% of retailers surveyed said they faced pressure to reduce prices.

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TIME: 3:00 P.M.

S H O T

BY RYAN N N OEL AN I C OUL E S

| LOCATION: OLD WAIALUA SUGAR MILL | PHOTOGRAPHER: AARON YOSHINO

Not Your Father’s Ice Cream Sandwich.

“Uncle” Makes It. “THE ICE CREAM SANDWICH HAS BEEN AROUND FOR 110 YEARS OR SO, AND IT’S PRETTY MUCH BEEN VANILLA, VANILLA, VANILLA. I thought, they

don’t need another vanilla sandwich!” says “Uncle” Paul Logan, who founded Uncle’s Kū Aloha Ice Cream Sandwiches in 2013.

His company’s 14 flavors include honey and peanut butter ice cream with chocolate chip cookies, liliko‘i ice cream with sugar cookies, and dark chocolate ganache ice cream with matching dark chocolate cookies. Three flavors are vegan.

But Logan says people kept asking, “Don’t you have vanilla?”

He listened, putting his own spin on the old standard, coating vanilla ice cream with rainbow sprinkles and sandwiching it between two snickerdoodle cookies.

Last year the company added another facility for baking cookies, across the street from its 1,000-square-foot kitchen in Waialua, which now focuses on producing ice cream.

“What we’re trying to do is (make) a world-class product, and we do that here by concentrating on quality, flavor and variety,” says Logan.

PB

unclesicecream.com

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SPECIAL PROMOTIONAL SECTION

Holistic Mental Health Key to Maui’s Recovery A VA R I E T Y O F T H E R A P I E S C A N H E L P I N D I V I D UA L S I M PAC T E D BY A C O L L E C T I V E T R AU M A R E F L E C T O N A N D I M P R OV E T H E I R M E N TA L H E A LT H .

lei making or lauhala weaving, helps ground participants back into their body so they can start to open up and share their feelings, Tengan observes.

Supporting Ka‘ehu’s work with a Maui Strong Fund grant is part of the Hawai‘i Community Foundation’s culturally grounded and holistic approach to Maui’s mental health response. Embracing the principles of trauma-informed care, it recognizes that a variety of alternative therapies can help individuals impacted by a collective trauma reflect on and improve their mental health.

HCF’s Maui Strong Fund mental health strategy stems from Hawai‘i’s efforts to IT’S COMMONLY SAID THAT EVERYONE become a trauma-informed PROCESSES GRIEF AND TRAUMA DIFFER state. In February 2024, Gov. Josh ENTLY. The corollary is that mental Green declared Hawai‘i trauma-inhealth therapy must be as formed and directed the diverse as the people who “The Maui Strong state Office of Wellness and need it. That’s why it can Resilience (OWR) to impleFund mental be so impactful to redefine health response ment a trauma-informed mental health services care framework throughout through an indigenous lens, was intentionally state departments and with inclusive of both community-based orgaaccording to Keolamau clinical resources nizations. The framework Tengan, executive director of Wailuku nonprofit Ka‘ehu, and community- integrates safety, trust and whose Mālama ‘Ohana transparency, empowercentered program uses a Hawaiian ment, collaboration, peer wellness.” cultural worldview to support, and honoring  KE HAU ME YE R , address mental health. cultural, gender and SENIOR PROGR AM “We offer an ‘āina historical issues.

OFFIC E R FOR HC F’S (land) or kai (ocean) Kehau Meyer, senior M AUI RECOVE RY EFFORT based program to get the program officer for HCF’s body moving and acting Maui Recovery Effort, says in service and connection the Maui Strong Fund to nature. We then combine that with mental health response was intentiondifferent activities based on Hawaiian ally inclusive of both clinical resources art and culture,” says Tengan. and community-centered wellness.

The program offers four to six cultural “We listened to our organizations activity stations at no charge to attendees, doing work on the ground and and, through repetitive activities such as understood that Maui needed certain

I

Volunteers with Wailuku nonprofit Ka‘ehu help out in a lo‘i (taro patch).

resources that were comforting and familiar while also building in a warm handoff to traditional mental health resources,” she says. “The mental health network that formed was helpful in ensuring HCF stayed on track with the collective efforts of experts and practitioners actively responding to the needs.”

HCF’s mental health response is directly informed by OWR’s weekly meetings of mental health providers, clinicians and other partners that discuss mental health needs they’re seeing and hearing from Maui community members. It’s led HCF to fund flexible therapeutic interventions to help impacted individuals cope, group grieving and healing activities, and longer-term therapeutic services for individuals and families to prevent and address Post-Traumatic Stress Disorder.

HCF’s strategy has resulted in better coordination and more diverse therapeutic support options for fi re-affected households. For example, the foundation has contracted nine clinicians and group practices to provide free therapy sessions to affected individuals—up to 10 sessions—and on-site mental health support at community meetings. It’s a short-term solution to reduce barriers to mental health care, such as lack of insurance or when individuals fi nd it too difficult to get therapy sessions approved by their health insurance.

“We really need to understand the needs of Maui and the needs of those serving Maui,” says Michele Navarro Ishiki, director of mental health services at Piha Wellness and Healing, and one of the contracted clinicians providing therapy funded

by HCF’s Maui Strong Fund.

L E A R N M O R E A B O U T T H E M AU I S T R O N G F U N D AT H AWA I I C O M M U N I T Y F O U N D AT I O N . O R G/S T R E N G T H E N I N G/M A U I  S T R O N G  F U N D H AWA I I B U S I N ES S

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