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SERVICES
Volume 59 Number 11 MARCH 2013 Visit B.I. online at www.buildingindustryhawaii.com
The winners of the Hawaii Water Engineers Association’s (HWEA) second annual photography contest, page 54
FEATURES ‘HUNGRY’ SITEWORK CONTRACTORS 14 Site preparation companies believe the industry will experience a solid upturn in business, especially during the second half of 2013 and going into 2014.
GENERATIONS OF DEVELOPERS 28 Who are the developers that shaped Hawaii’s history and are charting the course for tomorrow? What are their contributions, present projects and future plans? What about the newer breed? See our in-depth report.
GUAM GOES GREEN 44 The trend toward more sustainable building projects is gaining momentum on the island. Here’s an overview of “green” projects and practices and Guam’s new energy code.
NEWS BEAT Sause Bros. eyes Columbia launch Maui teams up with prefab home builder Sakamoto honored as Union Builder of the Year Core Tech begins housing project Diocese opts for solar system NAVFAC picks leadership trainees BIA show attracts record turnout Fairall chosen 2012 CGP Professional Kauai contractors name officers CRW completes Honolulu Tower Roof
DEPARTMENTS Editor’s Corner Spotlight On Success: Foodland Kapolei Contracts Awarded / Low Bids Concept To Completion: Maui Business Park Q&A with rail chief Dan Grabauskas Best Practices HWEA In Photos Tribute to Herb Muraoka Newsmakers New Products
ON THE COVER Two of Hawaii’s iconic developers, Duncan MacNaughton, left, and Bert Kobayashi at Hokua, their first joint venture project together as MK Development LLC Cover design by Susan Whitney
55 55 56 56 57 57 58 58 59 59
4 6 8 10 12 53 54 60 61 62
COMING IN APRIL Who has the money for development and construction and how can you get it, while minimizing the risks for a profitable project? Our April cover story on Finance, Bonding and Insurance focuses on this and other money issues. Also in April, we detail work planned for Airports & Harbors and update you on what’s new with Lumber & Wood. And we take you inside the Subcontractors Association of Hawaii.
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Building Industry Magazine SweepSTEAKS! to enter, go to www.buildingindustryhawaii.com
DATEBOOK
EDITOR’S CORNER
EVENTS April 4 – AIA Honolulu Hawaii Public Radio Pledge Drive 6 a.m. to 9 a.m. AIA Honolulu office Call HRP at 955-8821
Rail’s the Ticket to the Future In five short years, the rail from East Kapolei to Aloha Stadium will be completed. By 2019 the 20-mile line will be in all the way to Ala Moana Center. And that comes from Dan Grabauskas, CEO of the Honolulu Authority for Rapid Transportation (HART), in a Q&A for this issue of Building Industry. Grabauskas, hired last March to head Oahu’s rail transit project, is no newcomer to building and operating rail lines. He previously was general manager of the Massachusetts Bay Transportation Authority (MBTA), which operated in 175 municipalities throughout eastern Massachusetts and Rhode Island. He also headed up an 18-mile commuter rail line expansion there. When rail construction in Hawaii cranks up to full force, expect more contracts and jobs for local companies. As Grabauskas says, “It simply makes more sense for contractors to hire local construction workers, engineers and architects who are qualified for the job, rather than pay for extra travel and housing costs to bring in the workers from the Mainland.” He also says building a rail equates to “building a better future for Oahu.” Be sure to read the rest of what he has to say about rail on page 12. Bringing us up to speed on another vital topic in this issue is Associate Editor Lee Schaller’s report on developers and their current projects. The story also looks at how some of Hawaii’s iconic developers have diversified into other sectors. Turn to page 28. And we offer an overview of Guam’s “green” projects and practices, starting on page 44. Aloha!
March 13 - 14 Hawaii Buildings, Facilities & Property Management Expo The expo is Hawaii’s largest annual trade event offering one-stop shopping access to products, services and equipment for the maintenance, operations, renovation and sustainability needs of Hawaii’s existing buildings and facilities. A variety of free educational seminars also will be presented, along with opportunities for all attendees to win prizes that include trips to Las Vegas and the Neighbor Islands. The event is presented by Douglas Trade Shows at the Neal Blaisdell Center. Admission is free. For more information on the expo, reserving exhibit space or registering as an attendee, please contact exposition director Ken Kanter at 261-3400, kanter@lava.net.
March 20 – BIA Hawaii 2013 General Membership Legislative Night & Stew Challenge 5:30 p.m. to 8 p.m., St. Andrew’s Priory, Ylang-Ylang Courtyard Members $15; guests $20
TRAINING/CERTIFICATION March 12 – BIA Hawaii CTC - CAPS I Marketing & Communication Strategies for Aging & Accessibility 8 a.m. to 5 p.m., Construction Training Center of the Pacific ETF $185; members $270; nonmembers $370 March 12 - BIA Hawaii CTC - Construction Quality Management (CQM) Noon to 4 p.m., Construction Training Center of the Pacific Members $95; nonmembers $125 March 14 – BIA Hawaii CFSEI/HSA/SEAOH - Progressive Collapse & Blast Resistant Design of Cold Form Steel Mid-Rise Building 7:30 a.m. to 1:15 p.m., Pagoda Hotel A limited number of table top exhibit spaces are available. For more information, please visit www.biahawaii.org or email Dean Doi at ddoi@satoandassociates.com.
March 14 – BIA Hawaii CTC - CAPS II Design/Build Solutions for Aging & Accessibility CTC-Pacific 8 a.m. to 5 p.m., Construction Training Center of the Pacific ETF $185; members $270; nonmembers $370 March 25 to 28 – BIA Hawaii OSHA 5410 – Maritime Standards 8 a.m. to 4:30 p.m. (three days), Construction Training Center of the Pacific Cost: $925 March 15 – GCA Hawaii First Aid/CPR Class 7:30 a.m. to 11:30 a.m., GCA Conference Room (1065 Ahua St.) Members $60; nonmembers $90
‘Sweepsteaks’ winner Kimberly Calpo of Kapolei won Building Industry magazine’s February “Sweepsteaks” and a $100 gift certificate to Hy’s Steak House. The contest continues in the March issue of Building Industry. To enter, go to buildingindustryhawaii.com
March 2, 9, 16, & 23 – GCA Hawaii Construction Safety Hazard Awareness Training for the Contractors Course 7:30 a.m. to 4 p.m., GCA Conference Room (1065 Ahua St.) Members $500; nonmembers $750
4 | BUILDING INDUSTRY | MARCH 2013
The Construction Magazine of Hawaii
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Associate Editor Lee Schaller lee@tradepublishing.com
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SpotlightOnSuccess
Foodland Kapolei
KAIMAAINA GROCER OPENS IN THE ‘SECOND CITY’ Above: Foodland’s produce and florist departments. Left: The new 36,320-square-foot Foodland Kapolei, built by Ralph S. Inouye Co., Ltd., opened in October.
S
eafood, meats, a deli and a bakery, fresh-brewed coffee and tea, locally grown produce and a floral department and a full selection of wines, even a pharmacy coming in early 2013. Welcome to the new Foodland Kapolei. “The people of Kapolei were so thrilled to finally have Foodland in their community. The grand opening was a huge success,” says Michael Inouye, project engineer for the general contractor, Ralph S. Inouye Co., Ltd. (RSI). “The store has a poke bar, kim chee bar and a Coffee Bean & Tea Leaf. Future buildings for shops and other restaurants are being completed as well as planned in 2013 to complete the center.” Leading up to the grand opening
in October, Foodland officials also were happy to be up and running in Oahu’s “Second City.” Foodland Super Market, Ltd. is Hawaii’s largest locally owned and operated grocery retailer. The Kapolei store is located at 4850 Kapolei Parkway. “The store will be one that celebrates the coming together of food, family and friends for which Foodland is so well known,” said Jenai S. Wall, Foodland chairman and CEO. “And we have designed it to be not only a great place to shop, but also a place that makes the Kapolei community feel proud.” Foodland employs more than 2,500 people at its 32 Foodland, Sack N Save and Foodland Farms stores on four islands. 6 | BUILDING INDUSTRY |MARCH 2013
“Foodland presented the project team with a very aggressive completion schedule,” Inouye says, “but was willing to do its part to assist us in making the project a success.” Careful planning was key, he adds.
Man of Food and Vision Maurice J. “Sully” Sullivan, an immigrant from Ireland, along with See Goo Lau, founded Foodland Super Markets in Honolulu in 1948. “Sully” also brought McDonald’s and Dunkin’ Donuts to the Islands.
“Weekly OAC (owner, architect, contractor) meetings helped to improve communication, foster teamwork and address issues in a timely manner that proved invaluable. The project schedule was updated weekly, and when there was slippage, the construction team looked at evening shift work, overtime and increased crew sizes to make a recover schedule.” Inouye noted that Foodland even “revised delivery dates for owner-furnished and owner-installed material” to help RSI stay on the schedule.
Congratulations & Mahalo to Ralph S. Inouye Company Ltd.
We are proud to be a part of your team!
Hawaii’s Preferred Mechanical Contractor Keeping Hawaii Cool Specializing in Sheet Metal Ventilation & Air Conditioning Tenant Improvements Retail Medical Restaurant Hospitality
Mahalo
Building Industry magazine would like to thank Jayar Construction and Preferred Mechanical for supporting this Spotlight On Success.
“When the entire project team works together, with the project success being the focal point, each stakeholder can achieve their own goals and be profitable. Inouye explains that the Foodland Kapolei, constructed of CMU walls with EFS exterior finish, has a tile mansard roof with built-up roofing in the interior and panelized structural wood framing making up the roof support structure. The interior build out was started in May 2012 and the store opened in October. Inouye adds that interior finishes include a stained and polished concrete flooring and an open glulam ceiling. Workers also installed the air conditioning, lighting, and fire alarm and fire sprinkler systems. “The project was a huge success for RSI. We are extremely proud of the entire project team,” says Inouye with a nod to his crew as well as to the subcontractors on the project. “We are happy for the community of Kapolei and Foodland for the success of the store. RSI gained valuable experience in managing aggressively scheduled projects and strengthened relationships with its subcontractors, suppliers and Foodland.” BI
P R EFER R ED MECH A NICA L, LL C Office: 808.595.4321 Fax: 808.595.4322
Congratulations Ralph S. Inouye Co., Ltd. on a wonderful project.
SITE WORK SPECIALISTS! Servicing Oahu and Maui
Workers focus on the front of the new Foodland in Kapolei as construction draws closer to completion.
1176 Sand Island Parkway Honolulu, HI 96819-4346 Phone: (808) 843-0500 Fax: (808) 843-0067 Lic. # ABC-14156
www.buildingindustryhawaii.com | 7
ContractsAwarded
Agency Awards Give 2013 Strong Start Contracts awarded by the Department of Transportation ($41.9 million) and the Department of Education ($22.4 million) got the new year started off on a solid note. Overall, more than $87.4 million in contracts were awarded in January by nine state agencies. By comparison, the contracts awarded this January easily exceeded the $18 million for the same month of 2012. The biggest winner for January was Hawaiian Dredging Construction Co., with $29.3 million in contracts. T. Iida Contracting, Ltd. was next with contracts worth more than $10.9 million. Contech Engineering, Inc., and Designer Built Systems, Inc. landed jobs totaling $6.6 million and $6.2 million, respectively.
JANUARY 2013 CONTRACTS
Oahu
DOTMA
Kauai
DOFHO DPWHI DAGSMA
Maui UH DOTHI Hawaii
Oahu
DOTHNL DAGSHNL
Awards by Area Oahu........................ $45,778,624 Hawaii........................ 31,512,553 Maui............................. 7,201,948 Kauai............................ 2,955,700 TOTAL.................$87,448,825
DOE
Awards by Agency DOTHI .....................$29,324,000 DOE............................22,405,747 DAGSHNL ................. 11,143,440 DOTHNL ................... 10,342,015 UH ................................ 9,696,114 DOTMA ........................2,244,557 DOFHO........................ 1,122,522 DPWHI ........................... 790,553 DAGSMA......................... 379,877 TOTAL ............... $87,448,825
(Awards are rounded up to the nearest dollars)
T. Iida Contracting, Ltd.............10,943,800
Pave-Tech, Inc............................ 2,770,895
C & C Electrical Contractor, Inc..... 465,200
Stevenson Middle School – Multi-Purpose Educational Facilities
Runway Friction Maintenance, Statewide
Kaiulani Elementary School - Electrical System Upgrade
Contech Engineering, Inc............ 6,689,818
Wasa Electrical Services, Inc......... 908,082
Triton Marine Construction Corp.... 460,822
Kailua High School - Natural Science Lab Building
Castle High School - Fire Alarm Upgrade
Rehabilitation of Nuuanu Avenue Bridge - Bridge No. 251
Designer Built Systems, Inc........ 6,251,950
Molina Engineering, Ltd................ 578,000
Robert M. Kaya Builders, Inc........ 367,631
Sakamaki Hall, First and Second Floor Renovation - University of Hawaii-Manoa
Renovation of McCoy Pavilion Roofing at Ala Moana Regional Park
Kahuku High & Intermediate School, Building W - Renovate Science Lab, Phase 1
Kaikor Construction Assoc., Inc. 4,766,000
Paul’s Electrical Contracting, LLC 547,700
State Capitol Building - 5th Floor Roof/Deck Replacement and Exterior Repairs
Kahuku Elementary School - Electrical System Upgrade
International Roofing & Building Construction............................... 350,000
Grace Pacific Corporation........... 4,153,510
Honowai Elementary School - Classroom Renovation with A/C
Kaneohe Bay Drive Rehabilitation - Kamehameha Highway to Nanamoana Street
Prometheus Construction..........2,969,442 Slope Improvements for Erosion Control at Various Site, Phase 5, Wahiawa, Ewa, Koolaupoko
Robert M. Kaya Builders, Inc........ 522,680 IPR, Inc. dba Innovative Playground & Recreation/IPR Hawaii................ 467,253 Construction of Sand Volleyball Courts - Univ. of Hawaii-Manoa
King Intermediate School, Building K - Reroof and Carpentry Repairs
Island Pacific Installers LLC.......... 341,050 Improvements to Campus Lock System - Windward Community College
Circuit Builders, Inc..................... 337,320 Campbell High School Campus - Electrical Upgrade (Phase II)
JANUARY’S TOP 10 CONTRACTORS 1) Hawaiian Dredging Construction Co......................$29,324,000 2) T. Iida Contracting, Ltd.................................................10,943,800 3) Contech Engineering, Inc. ..........................................6,689,818 4) Designer Built Systems, Inc. ........................................6,251,950 5) Kaikor Construction Associates, Inc................................4,766,000 6) Grace Pacific Corporation ...........................................4,153,510 7) Paul’s Electrical Contracting, LLC ................................3,509,400 8) Prometheus Construction ...........................................2,969,442 9) Pave-Tech, Inc. ...........................................................2,770,895 10) Commercial Electric, Inc.................................................2,332,000 Information is summarized from the Contracts Awarded section of BIDService Weekly compiled by research editor Alfonso R. Rivera. 8 | BUILDING INDUSTRY | MARCH 2013
Moriyama Construction, Inc........... 294,650 Momilani Elementary School - Building B Reroof
Color Dynamics, Inc....................... 258,750 Repair/Repaint Exterior Building 8814, Hon. Com. College
Imua Landscaping Co..................... 228,000 Maintenance of Landscaped Areas - Halawa Interchange
GP Roadway Solutions, Inc............ 220,168 Furnishing and Maintaining Traffic Control - Lunalilo St. On-Ramp to H-1 Frwy.; Kamehameha Hwy. to Pali Hwy. Honolulu Bound & Vineyard Blvd. to Punchbowl St., East Bound Right Turn Lane
JJS Construction, Inc.................... 211,197 Repair/Replace Irrigation System, Campus Wide - Leeward Community College
MRC Roofing, LLC....................... 175,884 Aliamanu Intermediate School, Bldg G - Reroof Dining Room
Ohana Control Systems Inc.......... 168,818
Paul’s Electrical Contracting, LLC... 1,847,000
Waikele Elem. School Campus - Rewire Fire Alarm System
Hawaii State Civil Defense - Disaster Warning & Communication Syst. Devices Statewide, County of Maui Primary Contract
International Roofing & Building Construction............................... 122,390
Certified Construction, Inc............ 398,514
Kawika’s Painting & Waterproofing, Inc. . ..............................................................276,439 Civic Auditorium Repainting Improvements, South Hilo
Isemoto Contracting Co., Ltd......... 263,600
Pearl Harbor Elem. School - Bldg. K Reroof, Bldg. L Reroof
Maui High School - Building E Reroof, Kahului
Paul’s Electrical Contracting, LLC... 83,700
Certified Construction, Inc............ 348,158
To Repair/Replace Windows & Window Frames, Doors & Door Frames, Campus Wide - Hawaii Community College, Hilo
Neal Blaisdell Center - Walkway Lighting System Improvements
Hana Community School Library - Reroof And Replace A/C
Stan’s Contracting, Inc.................. 69,300
Ted’s Wiring Service, Ltd................ 79,954
Maui Master Builders, Inc................ 31,719
School of Architecture, Dean Hall, and Building 171 Complex - Transformer Replacement, University of Hawaii-Manoa
Kaunakakai Civic Center - Old Judiciary Building Demolition, Molokai
Laupahoehoe High & Elementary School - Portable P1 & P2 Reroof Covered Walkway
Elcco Inc....................................... 43,960
Hawaii
Haiku Elementary School - Bldg. C & E: Electrical Upgrade, Bldg. E: Upgrade Electrical , Campus: Add Night Lights
Hawaiian Dredging Const. Co......29,324,000
Maui
Hawaii Belt Rd. - Rehabilitation of Umauma Stream Bridge, North Hilo
Commercial Electric, Inc............2,332,000
Central Construction Inc.............1,065,100
Hawaii State Civil Defense - Disaster Warning & Communication System Devices Statewide, County of Maui Secondary Contract
Athletic Repairs and Improvements, Phase 1 - University of Hawaii-Hilo
Sita Information Networking Computing USA Inc....................................2,244,557
Hoolulu Complex Butler Buildings - Reroofing and Re-Siding Improvements, South Hilo
Stan’s Contracting, Inc................ 458,700
New Passenger Information Systems Phase II at Kahului Airport
Kawika’s Painting & Waterproofing, Inc. . ...............................................................55,414 Aunty Sally’s Luau Hale & Piilani Complex - Repainting Improvements, South Hilo
Kauai R. Electric, Inc...........................1,167,440 HI State Civil Defense - Disaster Warning & Communication Syst. Devices Statewide, County of Kauai Secondary Contract
Paul’s Electrical Cont., LLC..........1,031,000 HI State Civil Defense - Disaster Warning & Communication System Devices Statewide, County of Kauai Primary Contract
Society Contracting, LLC.............. 757,260 Reroof Buildings 4463b (Welding) & 4465 (Campus Center) – Kauai Community College, Lihue
LowBids The companies below submitted the low bids in January for the work detailed. Submitting the lowest bid is not a guarantee of being awarded the job. However, it is a strong indication of future work, and subcontractors can plan accordingly.
Oahu Grace Pacific Corporation........ 13,724,699
808 Underground Utilities Inc....... 152,146
Rehabilitation of Localized Streets, Phase 10a - Kailua Town, Kalaheo Hillside, Waimanalo and Waimanalo Beach
California Avenue Improvements - Wahiawa Baseyard
Constructors Hawaii, Inc........... 2,861,000
Festoon Trolley and Electrical Cable System for Various Fire Stations - Phase II
Aliiolani Hale - Exterior Alterations and Improvements
A’s Mechanical & Builders, Inc. 1,125,000
Circuit Builders, Inc..................... 149,220
Farrington High School, Bldg. B Library - Replace Air Conditioning
C C Engineering & Construction, Inc. .................................................. 112,852
JBL Hawaii Ltd............................. 587,753
Enchanted Lake Elem. School, Bldg. D - Renovate Restroom
Improvements to Campus Lock System - Hon. Com. College
Hako Construction, Inc................... 90,550
IC Construction, Inc..................... 482,000
Kalihi Uka Elementary School, Building A - Renovate Restrooms
Kamaile Academy Public Charter School - Campus Expansion
Maui
International Roofing & Building Construction........................... 285,500 Moanalua Intermediate School -Building C Reroof and Building J Reroof
Color Dynamics, Inc..................... 258,200 Repainting of Makiki 705, Hawaii Loa Ridge 800 and Mariner’s Ridge 500 Reservoirs
International Roofing & Building Construction............................... 250,000
Henry’s Equipment Rental & Sales, Inc. .....................................................125,789 Pahoa High & Intermediate School Campus - Improve Drainage (Baseball Field), Pahoa
Central Construction Inc............... 104,736 Keaau Middle School, Bldg. F - Repair Gym Floor and Resurface Playcourt
Kawika’s Painting & Waterproofing, Inc. .......................................................55,414 Aunty Sally’s Luau Hale & Pi’ilani Complex - Repainting Improvements, South Hilo
Society Contracting, LLC................ 52,373
Commercial Roofing & Waterproofing HI, Inc. ................ 529,965
Keaau Elementary School, Bldg. F - Repaint Exterior
Lihikai Elementary Reroof Buildings A & C, Building I, Kahului
Pahoa Elementary School - Bldg. C and Walkway Reroof,
Rapanot Construction LLC.............191,600 Kilohana Elementary School, Building H - Replace Gutters and Repair Siding, Molokai
Site Engineering Inc..................... 181,032
Ultimate Roofing Inc...................... 33,191 Society Contracting, LLC................ 19,200 Pahoa High & Intermed. School - Bldg. H, Replace Whiteboards
Kauai
Kahului Community Park - Playground Replacement
Grace Pacific Corporation......... 1,798,500
Waipahu High School - Building B Reroof and Building F Reroof
Hawaii
Pavement Repair at Various Locations
International Roofing & Building Construction............................... 184,455
Stan’s Contracting, Inc................ 458,700
Maintenance ff Landscaped Areas - Kapule Highway and Ahukini Road, Lihue
Waianae High School, Bldg. AA - Reroof Dining Room & Kitchen
Circuit Builders, Inc..................... 167,000 Benjamin Parker Elem. School - Campus Fire Alarm Upgrade
Hoolulu Complex Butler Buildings - Reroofing and Re-Siding Improvements, South Hilo
Kawika’s Painting & Waterproofing, Inc. .....................................................276,439 Civic Auditorium Repainting Improvements, South Hilo www.buildingindustryhawaii.com | 9
Love’s Landscaping Co. Inc.......... 217,840
Pacific Blue Construction, LLC.......147,791 Kapaa Elem. School, Bldg. A - Repair Termite Damaged Wall
Concept
Completion
Maui Business Park
Making Space for Commerce Hawaiian Dredging used the Trimble system GPS for grading operations at the Maui Business Park, phase II, north project area. The operator is able to look at a screen to determine the positioning of the cutting blade.
T
he north project area of the Maui Business Park phase II is ready for occupants with Hawaiian Dredging Construction Co., Ltd., recently wrapping up infrastructure work on the light industrial subdivision in Kahului. “I’m kind of excited to see what sort of businesses open up there,” says Hawaiian Dredging project engineer Jay Fujimoto. Hawaiian Dredging was chosen by A&B Properties, Inc. to do the 38-acre north portion of the 179acre park, which is located near The Home Depot and Walmart.
Construction on phase II of the $39 million project got under way last January. Along with site preparation and earthwork, Hawaiian Dredging did utility installations including storm drainage, sanitary sewer, potable and nonpotable water systems, roadway improvements, underground electrical system and landscaping improvements. The site was laid out in 32 lots, ranging from a half-acre to 3.3 acres. “It’s been an interesting project for me because it was my first subdivision job,” says Fujimoto. 10 | BUILDING INDUSTRY |MARCH 2013
A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc., said in July that Maui Business Park phase II is designated for warehouse, distribution, light manufacturing, retail and office use. “There hasn’t been an infusion of business space in quite a while,” Grant Chun, vice president of A&B Properties on Maui, told Building Industry magazine in November. “And with the down economy, businesses were reluctant to expand. Now they’re more confident about growth or buying their own space.” Phase II work on the site entailed
Mahalo
Building Industry magazine would like to thank Lite Electric for supporting this Concept To Completion.
unique challenges. Hawaiian Dredging listed “geology” among them, noting that “considerable quantities of hard rock were encountered during mass excavation and utility installation.” Says Fujimoto, “Yes, there was a lot of solid rock we had to go through, more rock than we anticipated.” Other challenges, according to Hawaiian Dredging, included dust control—“additional water trucks were required to control dust due to high winds through the central valley”—and the project schedule due to an “aggressive schedule to turn over Phase 1 for Costco expansion improvements.”
Top: Hawaiian Dredging completed tons of earthwork at the Maui Business Park. Bottom: Hawaiian Dredging had to excavate “a lot of solid rock” at the site.
Technology The project afforded Hawaiian Dredging the opportunity to make full use of new GPS technology in preparing the site. “The Trimble system incorporates a 3D model of the project and utilizes GPS to guide machines for grading operations and provides site positioning for our gradesetter for stakeout/quality control,” says Hawaiian Dredging, adding that the system allowed the machine operator to “look at a screen to determine the positioning of the cutting blade on the grader or dozer, versus the conventional method of installing pins and pulling string lines.” Another benefit of the Trimble system, says Hawaiian Dredging, was that the job of “staking out points can now be done by one person versus the standard total station that requires two people to operate.” Infrastrucure work on the 141-acre south portion of the Maui Business Park is a project of Goodfellow Bros. BI
Garrett J. Sullivan, President Are You Ready to Take Your Company to the Next Level in 2013? We Can Help-Guaranteed!
ph: 808.478.2564 e-mail: GSullivan@SullivanHI.com
www.SullivanHI.com
Congratulations
Hawaiian Dredging Construction Co. on the completion of the Maui Business Park, Phase 2 project
Lite Electric
Serving the iSlandS Since 1986 Industrial Residential Commercial 275 Manea Place • Wailuku, HI 96793 • Ph: 808.244-7975 Supervisor Lic. #ES-05065 • Contr. Lic. #C-22323
www.buildingindustryhawaii.com | 11
Inc.
Q& A with Grabauskas Building Rail is ‘Building a Better Future for Oahu’
Dan Grabauskas
The 20-mile rail system from Kapolei to Ala Moana Center has begun to take shape, with some site preparation and an archeological survey recently completed. For this Q&A with Building Industry magazine, Dan Grabauskas, CEO of the Honolulu Authority for Rapid Transportation (HART), recently offered some of his thoughts on the current status of the $5.16 billion project.
Q: Construction is important to our readers. What contracts have been finalized to date, and how much construction and site preparation do you expect to see in 2013? Detail the phases of the project that are currently under way or that will begin soon. A: So far, HART has awarded contracts to construct the first half of the rail guideway from East Kapolei to Aloha Stadium. We’ve also awarded a contract to build a maintenance and storage facility that will house and maintain the trains and system control center, as well as some design contracts. Prior to the recent state court ruling that put a temporary hold on construction, work on the columns for the guideway was under way in West Oahu and some site preparation work had also been done at the maintenance and storage facility in Waipahu. We have completed our trenching work and are preparing our report so that we can get things moving again and resume our construction work this fall. In the meantime, we are continuing with our design work on portions of the guideway and for some of our rail stations. We also have other contractors on board to oversee the work and provide the necessary support staff. Q: Elaborate on any preference being given to awarding contracts to local construction companies for the various aspects of the project.
A: Because of procurement laws, we cannot give preference in selecting contractors based on whether their business is locallybased or out-of-state. Some work may require specific rail expertise that may not be available here. But for the most part, contractors as well as many of the subcontractors are locally-based and hire local workers. It simply makes more sense for contractors to hire local construction workers, engineers and architects who are qualified for the job, rather than pay for extra travel and housing costs to bring in the workers from the Mainland. Q: Are there any expected changes in the cost of the project and how it will be maintained? A. The project’s cost has not increased—in fact our current financial plan shows a cost that is slightly lower than our original estimate. The project’s cost is $5.16 billion, which includes a contingency fund of about $644 million and an ending cash surplus of about $100 million after the project is completed. In addition, we just signed an agreement with the Federal Transit Administration (FTA) for $1.55 billion in federal funds. We’re in good financial shape; one of my top priorities is to bring this project in on time and on budget. Even with the funds available to cover delays costs we are also finding ways to reduce costs along the way, so the project’s price tag has not changed.
12 | BUILDING INDUSTRY |MARCH 2013
Q: Explain the key legal issues still pending? What effect are current court cases having on the project’s progress? A. There are two legal rulings that we are currently working on. We are completing our work to comply with the Hawaii Supreme Court ruling. In that case, we had received approval from the state to conduct our archaeological survey work in four phases. We had completed the first two phases and were cleared for construction in those areas when the court ruled that the survey work for the entire alignment had to be done before we could proceed. The good news is that we have completed the field survey work and are in the process of compiling the report for state approval. We estimate that we will be back in construction on the west side some time around September. In the federal case, the plaintiffs filed more than 50 claims and we prevailed on all but three. The judge has allowed us to continue with design work and with work along the first three phases of the route from East Kapolei to Kalihi while we complete the remaining studies that we were asked to do. We were not scheduled to begin construction in the fourth phase until the summer of 2014 and we’re confident those studies will be finished well in advance of that, so we’re in good shape.
Q: What could rail’s single greatest impact be—good or bad—on Oahu’s business climate and economy? A: Rail is the largest public works project in Hawaii’s history and will also be the biggest job creator for our construction industry on the economic horizon. There are thousands of construction jobs being created—not only the contractors and subcontractors building the system, but suppliers and other support staff. Then you have the indirect jobs when the construction workers spend their paychecks in the community, and that stimulates the local economy. In the long run, there will also be transit-oriented development (TOD) focused around each rail station. There’s the possibility of mixed development that includes housing, commercial centers, parks and other activity centers in each community. That will mean more revenue invested in the local economy long after construction of the rail system is completed. Another economic benefit is that rail will reduce the time wasted being stuck in traffic. Traffic congestion means loss
Workers in the West Oahu portion of the alignment remove the casing from one of the rail system’s columns last year. HART has a temporary hold on construction while it completes its Archaeological Inventory Survey work. Construction is expected to resume later this year.
of potential revenue for businesses and affects employee productivity. Rail will help companies get their employees to and from work in a reasonable time so they spend less time in traffic and more time with family.
not support this project or who are skeptical. We need listen to their concerns and suggestions, and work with our new mayor who is also committed to building rail better— and that’s what we plan to do.
Q: What are HART’s greatest concerns in keeping momentum going for this project?
Q: What is your confidence level that the rail will come to complete fruition by 2019?
A: We’re grateful to our supporters, and if the recent election was a referendum on rail then we’re pleased with the outcome. But we also have an obligation to work closely with those who may
A: I’m very confident. Despite the temporary construction delay, we’re still on schedule to open the full 20-mile line in 2019. We plan to open the first 10-mile portion from East Kapolei to Aloha Stadium in 2017. Since my arrival I’ve pledged to keep this project on time and on budget. I plan to keep that promise. Q: Anything else our readers should know about the current status of the rail project?
HART recently completed its trenching work for its archaeological survey work. Workers carefully examine one of the more than 400 trenches surveyed along the project’s route.
www.buildingindustryhawaii.com | 13
A: I have always said that we’re not just building a rail system, we are building a better future for Oahu. Providing our community with a reliable, safe and efficient public transit system will enhance our quality of life and improve our environment by taking 40,000 cars of our congested roads daily. One two-car car train holds more passengers than five city buses. Rail will be an essential part of our public transportation system. BI
SITEWORK:
Contractors ‘Hungry’ BY DAVID PUTNAM
Earthworks Pacific performs site grading at its “green” project at the Hawaii Biomass Power plant near Koloa, mauka of Kaumualii Highway, between Maluhia Road and Kahili Road.
14 | BUILDING INDUSTRY |MARCH 2013
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Going into 2013, Hawaii’s sitework contractors anticipate some growth over the previous year, and some are optimistic that the latter half of 2013 will even see a significant uptick in getting projects under way. “The industry is showing signs of improvement and is looking up, as evidenced by more work out to bid and more projects in the planning stages,” says Len Dempsey, vice president of Hawaiian Dredging, Inc.’s Heavy Division. Ben Prock, Hawaii Area Manager for Kiewit Infrastructure West Co., agrees. “The number and volume of construction bids in the private and public sector appear to be gradually gaining momentum with a relatively competitive number of bidders,” he says. Rodney Nohara, president of Jayar Construction, Inc., also sees more projects coming up in the private sector. “Probably because developers and private owners are feeling more confident in the economy, and the price of construction is affordable,” he says. “A lot of contractors are still hungry and are discounting their prices.” The sitework industry will get even busier later in the year, says Jeff Fisher, president of Earthworks Pacific, Inc. “I think it’s going to be a better second half,” he says. “The first half is going to be status quo, as it has been the last few years. “I do believe the second half of 2013 should see a pick-up in sitework projects here on Kauai, where the bulk of our work is,” he adds, noting that “we do have a little bit of a backlog of projects from 2012.”
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‘More Balanced’ The public sector will continue to be the major source of sitework projects, the contractors say, but private sector projects appear to be on the rise. “Yes, but volume-wise these public projects are relatively small,” Prock says. “We understand that public officials are dealing with funding concerns while attempting to maintain, address and prioritize the state’s infrastructure. This holds especially true of the state’s aging water, highway, transit and airport infrastructure. “The private sector is starting to make some gains,” he adds. “Financial credit and consumer confidence is picking up.” Dempsey also sees growth in private sector jobs. “The upcoming work is still more public agency work, however, there is more activity from the private market, so it is becoming more balanced,” he says. “With the restarting of the rail contracts, more ‘consent decree’ work
WORDS OF WISDOM “There have been a lot of people who have left the construction world, and many of those people will not come back. Once we get going and growing again, we’re going to have a hard time finding people. We need to get people involved; we need to get youth involved and wanting to join the construction industry. We’ve had this mass exodus of people, once you start putting work back in, trying to find people to do it will be challenging.” —Ray Skelton, Goodfellow Bros., Inc., in Building Industry, March 2012
A Solid Beginning on our sewer system, significant work to repair our airport pavement at our major airports and work on every island’s transportation problems, there will be an increase in the heavy construction market in 2013,” Dempsey adds. “Our private market is expected to improve in 2013, but there is still uncertainty with the start dates on some projects.”
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A snapshot of some of the projects begun this year, as well as some that were carried over from 2012, offers reason for contractors to be optimistic. • K iewit Infrastructure West Co.: Kiewit began work in February to widen Kaumuali Highway from two to four lanes. The project includes rehabilitating and widening of Lihue Mill Bridge to Rice Street
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www.buildingindustryhawaii.com | 19
Hawaiian Dredging installed anchored wire mesh for slope protection along Hana Highway.
nd construction of a new bridge a structure spanning Nawiliwhil Stream. The project, which also entails realignment of Hoomana Road, is scheduled for completion in March 2015. “Public safety is always a concern when you’re a sitework contractor. So is protecting the environment,” says Prock. “Through our successful completion of the first phase of the Kaumualii Highway widening project we feel like we’re in an excellent position. We have worked with the community to ensure that the historic qualities of the existing Lihue Mill Bridge are preserved. We will apply these [historic] characteristics and attributes to the new lane bridge. And working over the Nawiliwili Stream is an environmental concern; we will be very careful to not disturb the stream.” • Earthworks Pacific, Inc.: Fisher says Earthworks Pacific’s projects include the Hanalei Slope stabilization along Kuhio Highway,
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which was slated for completion in February. Earthworks Pacific installed more than 1,060 anchor bolts and 35,000 square feet of mesh—but adding to the job’s difficulty was soil that ranged from hard rock to loose dirt. “Installing the anchor bolts has been real challenging because of the traffic, and the various drilling conditions,” Fisher says. Another Earthworks Pacific
project is the Lydgate Park to Kapaa bike/pedestrian path (Phase B) from near the Safeway to the end of the current bike path at Lihi Park. This phase is expected to be completed by the end of April. When complete the entire path will cover 23.8 miles and cost $53.25 million. Fisher notes that along with concerns over safety due to traffic, “we lost some time because of
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utility line relocation” by KUIC and cable provider Oceanic. • Jayar Construction, Inc.: Nohara says Jayar Construction is “doing several projects with Actus Lend Lease, LLC. These include Helemano Military Reservation and Red Hill makai neighborhoods. We are also working with Albert C. Kobayashi, Inc. on the Senior Residence at Iwilei and Auahi Shops in Kakaako.” Nohara says Jayar also did a sitework job at Brigham Young University-Hawaii, where new dormitories are being built, and is a subcontractor to Mitsunaga Construction on the Hale Mohalu Senior Living facility. Jayar is working on projects with Hawaiian Dredging on Halekawila Place and the Waianae Cost Comprehensive Health Center, he says, adding that Jayar is working with Ralph S. Inouye Co. to construct new classroom buildings at Hawaii Baptist Academy and with Maryl Construction on the new Maui Lani Shopping Center.
Hawaiian Dredging cleared out rock wall material that had been washed out by flash flooding on Maui as part of the emergency repairs done to Uakea Road.
Banking on Rail
Old Issues
When construction of Oahu’s 20-mile rail system cranks up in earnest—and barring further delays from legal challenges—local sitework companies expect to land some contracts. The Honolulu Authority for Rapid Transportation (HART) says it expects the first half of the line to be done by 2017, with the full line complete in 2019. Along with local jobs created from constructing the tracks, development of business and residential areas near the rail hubs will mean more sitework contracts and lead to more jobs. “This would have a positive effect, with not only that work progressing, but spurring the transit-oriented developments,” says Dempsey of Hawaiian Dredging. “The rail project will definitely help the site preparation industry,” agrees Nohara. “Even it it’s only a few large contractors that will getting the work. These contractors will keep local workers employed for years.”
Most sitework contractors would likely agree with Earthworks Pacific’s Fisher, who says they are “at the mercy” of state agencies. “It’s the same issues of holding projects from getting started, getting plans approved and signed off,” Fisher says. “We had a Department of Hawaiian Homelands job that we anticipated starting by late fall, and we still don’t have permits. It’s real difficult getting projects started.” One environmental hurdle, contractors say, is the NPDES (National Pollutant Discharge Elimination System) permit application process. “Overall,” says Dempsey, “it’s the same for all contractors in getting projects started. To start projects it seems to be increasingly difficult, and each project has its issues that will make it take longer to launch, such as plan approvals, archeological concerns, financing or permits, such as encountered by the NPDES permit application backlog.”
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Sitework contractors often face more particular environmental challenges. “The majority of our work involves heavy civil operations, sometimes over bodies of water,” says Kiewit’s Prock, “so the biggest challenges we face stem from environmental matters, especially as they relate to storm water runoff. Kiewit’s Kaumualii Highway widening project, he adds, “involved mass grading. As with every project we undertake we work diligently to make sure our storm water management program is routinely self-assessed to prevent any negative impacts to the environment.” Alec Wong of the Hawaii Department of Health’s Clean Water Branch, which processes NPDES permits, says that most applications are cleared in 45-60 days. The wait
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time is extended, he points out, if the permit applications have to be returned to the contractor (or the contractor’s representative) for any reason and to be re-submitted. More traditional challenges for site preparation companies, says Jayar’s Nohara, may involve “unmarked utilities, ground water, buried structures, underground storage tanks, cesspools, rock and hard coral formations, soft unstable soil conditions, Hawaiian artifacts and human bones.” Says Nohara, “The biggest challenges for sitework contractors are the uncertainties that we encounter upon excavating the ground.” But looking forward, Fisher says he is “cautiously optimistic.” “The private market has virtually
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been nonexistent the last few years,” he says. “But there seems to be more talk about getting new projects going. But at best we’re talking about late 2013 and early 2014.” And, as contractors have said, growth in 2013 could very well hinge on getting sitework projects launched on schedule. “As projects take longer to
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On the Kaumualii Highway widening project, Kiewit backfills a portion of the 2.25 lineal miles of new storm drainage. launch the net result is that even more pressure is placed on the site preparation contractor to maintain the original schedule, therefore accelerating that scope significantly,” Dempsey says. “The industry should understand that projects are more efficient if the site preparation can be completed without significant interference.” BI www.buildingindustryhawaii.com | 27
DEVELOPERS:
Charting Hawaii’s Course— Yesterday, Today and Tomorrow BY LEE SCHALLER
There are many developers in Hawaii today, some homegrown, others enticed here by what they consider “the last outpost” of development and potential profit. But “keiki o ka aina” or “malihini”, what do we know about their development history, their contributions to Hawaii’s unique lifestyle, economy and people? What do they point to with pride? What are their short and long-term plans? And perhaps most important of all, are we all on the same course?
28 | BUILDING INDUSTRY |MARCH 2013
Remembering Where We Came From In the beginning—at least for Hawaii’s early economic history— during the islands’ whaling days and burgeoning era when “sugar was king,” a small group of companies grew into a powerful force that oversaw and designed Hawaii’s development. Most of them had descended from missionary families and several of them shared not only corporate thinking, but also boards of directors, officers
and managers, which reinforced their combined strength and ensured their indelible stamp on Hawaii’s history. There were five companies in this power group, hence the name “Big Five”. They were:
Castle & Cooke, Alexander & Baldwin, C. Brewer, Amfac (originally Hackfield & Company) and Theo H. Davis. Their unparalleled influence on the economic and development scene lasted from the mid 1800s to the 1940s, although their impact was felt well beyond that time. What ultimately weakened their dominance was the organization of labor unions in the islands. That game-changing maneuver plus the devastating sugar strike in the mid 1940s followed by a reduction in the price of sugar, also played a part. And since the Big Five companies historically enjoyed a close alliance with Hawaii’s Republican Party, the unexpected ascent of Hawaii’s Democratic Party eventually lessened their clout. There is no “Big Five” in Hawaii today as a powerful conglomerate of companies and sometime partners, but their legend lives on in physical and economic reminders of their influence and contribution to our history and growth.
Hawaiian Dredging has begun construction on Stanford Carr Development’s Halekauwila Place. www.buildingindustryhawaii.com | 29
And Where We Are Today Two of the original “Big Five” companies still are very much in existence, albeit in an evolved and diversified form. Alexander & Baldwin (A&B) was created in 1870 by Samuel Thomas Alexander, a young man from Kauai and Henry Perrine Baldwin from Maui, who planted 539 acres of sugar on land they bought between Paia and Makawao on Maui. Today, A&B, in effect, still grows sugar cane on Maui and coffee on Kauai but also, through its subsidiary A&B Properties, Inc. is engaged in land stewardship, planning, entitlement, development and management of commercial properties and real estate development in Hawaii. The current portfolio includes nearly 8 million square feet of retail, office and industrial space comprising 45 properties in Hawaii and on the mainland as well as more than 88,000 acres of land, primarily on the islands of Maui and
A&B Properties’ Waihonua at Kewalu
Kauai. Much of the Maui acreage is farmed by Hawaiian Commercial & Sugar Company (HC&S) and on Kauai, McBryde Resources, Inc. leases a 4,000-acre coffee plantation to an international, vertically integrated coffee company. A&B takes its responsibilities as a land steward very seriously. Stanley Kuriyama, chairman and CEO of Alexander & Baldwin, Inc., says, “With respect to our landholdings, we are committed to ensuring that they are employed in the highest and best use, aligned with Hawaii’s long-term interests. Hawaii has been the home of A&B since 1870. The decisions we make today are guided by our long history and the belief that we will be here for generations to come.” Currently, A&B Properties is developing Waihonua at Kewalo, a 43-story, 341-unit fee simple residential high-rise estimated for completion in 2014-2015. Castle & Cooke is the only other member of the original group of developers who helped shape Hawaii’s early history that is still a major part of the current development scene. It was founded in Hawaii in 1851, when Samuel Northrup Castle and Amos Starr Cooke began their partnership by opening a general store in Hawaii. Harry Saunders, president and CEO of the iconic company, says, “Castle & Cooke Hawaii’s commitment to the Hawaiian Islands began more than 160 years ago. Over the decades, we Harry Saunders have diversified our business to include residential development, commercial real estate, renewable energy initiatives, visitor attractions and aviation. In 1968, we embarked on providing much-needed homes for Hawaii residents through our first residential community, Mililani. We have since expanded and built new communities including The Villages of Kapolei and Wai Kaloi in Makakilo. We believe there continues to be a great need for housing for our residents, not just today, but for our future generations—our children and grandchildren. The goal of our newest project, Koa Ridge, is to create a masterplanned community that will meet the future needs of our community, which includes creating new job opportunities though a commercial development and a medical center. As we continue with the city zoning process for Koa Ridge, it is our responsibility as a Hawaii builder to ensure that we incorporate the needs and values of our residents. We are not only building homes, we are building communities that will help shape the futures of our Hawaii families.” Updating us on the progress of Koa Ridge, Bruce Barrett, executive vice president-residential operations for Castle & Cooke, says, “In June 2012, we again received Urban District approval from the Land Use Commission (LUC) for Koa Ridge’s 3,500-unit master-planned community. This new petition was submitted due to appeals filed in the 2010 LUC approval. In December 2012, Castle & Cooke submitted its rezoning application to the city Department of Planning and Permitting. The application now goes before the Planning Commission and finally to the City Council.
30 | BUILDING INDUSTRY | MARCH 2013
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QUICK FACT On June 29, 2012, A&B completed its previously announced plan to separate its land and transportation businesses into two stand-alone, publicly traded companies, Alexander & Baldwin, Inc. and Matson, Inc., explaining that the increased size, capabilities and financial strength of both the land and transportation companies currently enables the operations to independently execute their strategies to maximize shareholder value.
“We anticipate rezoning approval in the third quarter of this year (2013) with infrastructure construction beginning in 2014 and first home deliveries in 2015.” Castle & Cooke also is working on several new residential projects in West Oahu and Honolulu’s urban core. (Editor’s note: Watch for more details on this and other housing projects in Building Industry magazine’s June residential cover story.)
From a Legacy to a Legend Established by the will of Bernice Pauahi Bishop, last surviving heir of the Kamehameha dynasty, Kamehameha Schools began with the construction in 1887 of
the School for Boys on what are now the grounds of Honolulu’s Bishop Museum. The first buildings consisted of “the principal’s house, dining hall, dormitories one and two, kitchen, waterworks, laundry, bathhouse, storehouse, stable, water-closet and shop.” The cost? $37,722.68. The Kamehameha Preparatory Department for 6- to 12-year-old boys opened a year later in adjacent facilities and the School for Girls opened in 1894 on its own campus nearby. Eventually, the three schools moved to the present location at Kapalama and in 1965, the schools became co-ed. A year later Maui and Big island campuses were added. Today, Kamehameha Schools (KS) is Hawaii’s largest private landowner, with a total of 363,000 acres in its local portfolio. School properties include 31 preschool sites statewide, two neighbor island campuses and the Kapalama campus, which currently is in the midst of the Kamehameha Schools Kapalama Strategic Redevelopment Project. Nordic PCL Construction has completed three of the five projects under the $118.5 million contract with the remaining two phases slated for completion in 2014. As a landowner and major developer, KS currently has several active, recently completed and planned projects.
They include: • 680 Ala Moana—this recently completed “adaptive reuse project” involved the conversion of a former office tower into 54 studio and one-bedroom rental apartments. Allied Builders System was general contractor. • 660 Ala Moana—the site of the “Our Kakaako” Information Center is expected to open this month. • SALT—groundbreaking for this 80,000-square-foot Kakaako retail village is expected in January 2014. “ In addition to these development projects,” says Erin Kinney, integrated strategies manager/community relations and communications for KS, “our efforts in Kakaako have been focused on curating young, local businesses whose owners are seeking a creative and collaborative community. Many of these new businesses are located on the future SALT block on Auahi Street between Coral and Keawe Streets. Kamehameha Schools also has teamed up with ‘Eat the Street’ organizer Poni Askew of Streetgrindz to host the monthly Honolulu Night Market, a food, fashion, art and music event.” • Haleiwa Store Lots—groundbreaking is expected in summer of 2013, with Matsumoto Shave Ice remaining open during construction. The four-acre, $12.6 million
Rendering of Kamehameha Schools’ (KS) Haleiwa commercial redevelopment 32 | BUILDING INDUSTRY |MARCH 2013
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The MK Development team, from left: Patrick Kobayashi, KG; Alana Kobayashi Pakkala, KG; Jeff Dinsmore, TMG; Ian MacNaughton, TMG and Blacksand Capital; Bert A. (B.J.) Kobayashi, Jr., KG and Blacksand Capital; Kathy Inouye, KG; Eric Tema, TMG; and Jeff Arce, TMG.
Icons and Partnerships roject is estimated for completion by p July 2014. “KS received unanimous approval of its zone change applications for Haleiwa in October 2012,” Kinney tells us. “KS is committed to redeveloping this important property in a manner that is consistent with the community’s vision to preserve and enhance Haleiwa’s historic rural character, while revitalizing a highly visible and valued community asset which supports Kamehameha’s educational mission. The improvements are needed to strengthen aging infrastructure and increase pedestrian safety by moving customer queues away from Kamehameha Highway. The redevelopment also will include new landscaping that will separate pedestrians from vehicles, add 104 parking stalls and provide additional retail space. KS is concluding negotiations with several local businesses in categories including apparel, dining, gifts, convenience and coffee.” • Kapalama Shopping Center— Pankow is general contractor on the recently begun renovations that Kinney tells us “will give the center a refreshed and inviting look, including new exterior fascia and walkways. The layout of the buildings remains the same and the center is open during renovations.”
Two major developers in Hawaii have formed a unique working partnership that has resulted in several noteworthy high-rise residential condos and commercial developments. The MacNaughton Group (TMG) and Kobayashi Group (KG) each have corporate roots that go back a long while and encompass many significant developments. TMG’s founding partner and chairman, Duncan MacNaughton’s professional and family background reads like a history book on Hawaii’s development. For example, his father, Boyd MacNaughton, was president of Dole Pineapple in the late 1930s and then became president of C. Brewer and Company. Duncan began his career as a trainee for the Dillingham Corporation, which had just finished phase one of Ala Moana Center. His association with the company provided the inspiration that led him to “explore different roles” and eventually to “finding my way to property development.” A 10-year partnership with developer Dick Cushman ended in 1985 but the professional relationship continued through the creation of Waikele Shopping Center, the success of which convinced him there was a growing demand for affordable retail— and led to the founding in 1989 of 34 | BUILDING INDUSTRY |MARCH 2013
The MacNaughton Group. TMG’s first accomplishment was bringing Costco to Hawaii. That first Costco was located on the Salt Lake Boulevard site now housing a Target store. Also introduced to the Hawaii market by TMG were retail giants Kmart, Office Max, Sports Authority, Pier 1 Imports and eventually Jamba Juice and Starbucks. In 2001, TMG and longtime Hawaii developer Kobayashi Group formed a joint venture called MK Development LLC. The partnership’s first project, in 2006, was Hokua, an upscale residential condominium that sold out in a single day and is still considered by many as the luxury high-rise condo by which all others are measured. “The background in this,” says Jeff Arce, partner and chief financial officer of TMG, “is that Mitch D’Olier (currently president and CEO of Kaneohe Ranch Co.) who was running Victoria Ward at the time, introduced us to the Kobayashi Group and asked us to work together to deliver a special residential experience for Ward. This turned out to be Hokua and our ‘arranged marriage’ with KG has proven to be very special and highly successful.” Hokua was followed by Capitol
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tion in June 2013 and be completed by the fall of 2014. What has been the most significant and impactful project to date? In the commercial area, Waikele Shopping Center, Duncan MacNaughton’s joint venture with Dick Gushman, and in the residential sector, Hokua, says Arce. “These projects set a new standard for real estate development.” What type of project not yet part of the portfolio, would TMG like to develop? “A senior living center.” Kobayashi Group, in its own right, has played a major role in Hawaii’s development and economic growth. Bert Kobayashi began his industry career at Albert C. Kobayashi (ACK) in 1962 when he left the University of Hawaii where he was a student, to run the company after his father became ill. After 31 years of increased success, he and other company shareholders sold ACK to the company’s employees and Kobayashi Development Group, (subsequently changed to Kobayashi Group) was founded. KG’s first project was Kakuhihewa, the Kapolei State Office Building. Other projects in KG’s multibillion-dollar Hawaii portfolio include the Kukio Golf and Beach Club, a private resort community on the Big Island; the ANdAZ Resort and Residences in Wailea, Maui, and project management of the University of Hawaii Cancer Research Center. KG also is a partner in the planning and redevelopment of Four Seasons Hualalai and Kona Village Resort. As previously mentioned, KG teamed up with TMG to develop the Hokua and Capitol Place highrise condos and create Kona and Kapolei Commons, both housing a Target store. Currently, KG is working with TMG
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Rendering of SCD’s Kahoma Village in Lahaina on The Outlets at Kapolei Commons and is a joint venture partner with TMG and Howard Hughes Corporation in the ONE Ala Moana condo development. When Kathy Inouye, partner and chief operating officer of KG is asked if there is a specific future development the company would like to do, her answer is, “The Obama Library in Hawaii. We would be honored as a community if a decision is made to have one in Hawaii and we would consider it an ultimate privilege if we were
The branches grow because of the trunk.
to be selected to do the development.” As to KG founder Bert Kobayashi, he is now retired, but his guiding presence is undeniably felt as a senior adviser to the company and its “next generation” owners.
“
Hand in Hand A commitment to “doing the right thing and a concern for Hawaii’s people and their future is one of the driving factors of Stanford Carr Development (SCD)
BEYOND MANAGEMENT When it comes to Hawaii, our roots run deep. 2013 marks our 40th year of serving Hawaii. We’ve recommitted ourselves through new leadership, a reinvigorated management vision and team, and an unwavering integrity that defines all that we do. To mark this change, we’re changing our name from Certified Hawaii to Associa Hawaii. While our name is different, our people and our commitment to serve Hawaii remains beyond what you’ll find anywhere else.
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2/4/13 10:10 AM
D.R. HortonSchuler Division’s Seacountry sales team surprised students at Maili Elementary School with much-needed supplies, a donation by the company through the Communities Helping Schools (CHS) program.
We know Hawai‘i. We build for Hawai‘i.
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38 | BUILDING INDUSTRY |MARCH 2013
since its founding in 1990. In many conversations and interviews with Carr, it always comes down to the same point, “If we don’t do it, who will?” Explaining what he means by this, Carr, a Maui boy who learned farming at an early age, says, “We in Hawaii need to help each other as the generations before us have done, making sacrifices and persevering to make Hawaii a better place in which to live, with more opportunities for the future. As one of the most isolated islands in the world and being a relatively small market in comparison with many others, we are further challenged by bearing the costs to import most of what is necessary for our needs. This also increases the challenges of controlling costs and obtaining financing for rental housing. For example, we would not have been able to realize the construction of Halekauwila Place if not for HCDA and HFDC providing us with financial assistance in collaboration with PNC Bank and American Savings Bank in structuring the financing.” Halekauwila Place, a 19-story, 204-unit high-rise priced for families earning between $42,000 and $60,000 per year, recently broke ground and is under construction with Hawaiian Dredging as general contractor. In other projects, SCD ‘s Kehalani Village Center in Maui Lani is growing, with Arisumi Brothers beginning construction on a new Foodland store. And plans are progressing for Kahoma Village in Lahaina, a development of 204 single-family homes and multifamily condominiums. “We completed our EA and have submitted our 210-H application to the County for processing,” says Carr. “We hope to have approvals by the end of the year and commence construction.” When asked what he considers his most significant or fulfilling project, Carr says, “The Peninsula was a great project. I tried to buy the property (in Hawaii Kai) for five years and finally got the opportunity to purchase in August 2000 for $40 million
2/4/13 1:06 PM
from KSBE (then Kamehameha Schools Bishop Estate) when Home Depot decided not to buy the site for a store. We broke ground in April 2001 and completed the last sale in June 2006, finishing 630 units on 43 acres. Designing and developing the Maili transitional housing project also was very special and gratifying. But the biggest accomplishment was Halekauwila Place. It’s the first time in 35 years that there has been a low income workforce rental project developed and financed with LIHTC and a HUD 221 d 4 loan for a highrise rental project in Honolulu’s urban core.” What would he like to develop that he has not already done? “A super block mixed-use project including a transit station.”
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Going Forward— and Giving Back •A rmstrong Development, founded in 2007, is more than three decades old. Well, not really. But it is a related company of Armstrong Builders, which has been doing construction and development projects in Hawaii for 35 years, all under the overall umbrella of the Armstrong Companies, which specialize in residential, commercial and green developments. The corporate mission is, “To improve the quality of peoples’ lives through our projects and philanthropy. We take pride in our commitment to work with integrity and support, nurture and serve each other, our loyal customers and partners.” Armstrong Development’s current projects include several sustainable subdivisions on Maui, built in partnership with the Department of Hawaiian Home Lands (DHHL). The Armstrong Foundation, created in1993 as the charitable arm of the Armstrong Companies, gives grants and donations to the communities in which the company does business. • D.R. Horton-Schuler division is a kamaaina company with deep roots in Hawaii. The company has
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been developing communities and building homes in Hawaii since 1972 as Schuler Homes, founded by long-time Hawaii resident Jim Schuler, with Papakea in Kaanapali as the first development. In 2002, the company merged with Texasbased D.R. Horton, “combining Schuler’s local experience with D.R Horton’s national resources.” A major proponent of giving back, the company, together with the Schuler Family Foundation, each year gives generous charitable donations to local nonprofit organizations. As to current and future developments, “Our primary focus continues to be West Oahu,” says Mary Flood, vice president of sales and marketing, “with the master-planned communities of Seacountry at Maili, Mehana at Kapolei and our upcoming Hoopili development, which will be a major component in the completion of the ‘second city.’ ” • Seven years after establishing itself in the islands, Haseko developed the Kaanapali Shores resort condominium resort on Maui, followed by the Kauai Hilton. In 1997, ground was broken for the master-planned community of Ocean Point. Currently, development continues at the company’s premier neighborhood, Ka Makana at Hoakalei. “We continue to be optimistic about the future,” says Richard Dunn, executive vice president of Haseko, “especially as it relates to West Oahu.” An active community stewardship program provides millions of dollars for Ewa Beach infrastructure improvements as well as financial support for community organizations. • Gentry Homes has been creating residential communities, commercial and industrial developments in Hawaii for almost half a century. Established in 1968 by Tom Gentry, its developments outside of the residential area for which it is so well known, include Koko Marina, Gentry Waipio Business Park and Gentry Pacific Design Center. A leader in green, sustainable building,
The key To creaTing successful developmenTs is To sTarT wiTh a sTrong foundaTion. A-1 Construction • Accessibility Planning & Consulting • Air Central, Inc. • Alakai Mechanical Corp. • Albert C. Kobayashi, Inc. • Albert Chong Assoc. Inc. • Alii Glass & Metal, Inc. • All Pool and Spa • Allied Builders System • American Savings Bank • Bank of Hawaii • Beachside Roofing, LLC • Belt Collins • Benjamin Woo Architects • Bennett Engineers, Inc. • Brett Hill, Inc. • Brownie & Lee • Central Pacific Bank • Commercial Dock & Door • Commercial Plumbing • Commercial Shelfing • Consolidated Painting • ControlPoint Surveying, Inc. • Cultural Surveys Hawaii, Inc. • Custom Drywall, Inc. • D.L. • Adams Associates • Delta Construction * D.Y. Mikami Construction • DEP/Revolusun • Eagle Interiors, Inc. • Electricans, Inc. • Elevations, Inc. • First Hawaiian Bank • Fluid Design • Foresight Construction • Gary Edward Handel & Assoc. • Gateside, Inc. • Geolabs Hawaii • GP Roadway Solutions, Inc. • Grace Pacific Corporation • Griffith Construction • Heidi & Cook, Ltd. • Heyer & Associates, LLC • Horizon Pest Management • In Line Flooring, LLC • Industrial Group • Isemoto Contracting • Island Demo, Inc. • Jack Endo Electric, Inc. • JD Painting & Decorating • JJS Construction, Inc. • Joyce Timpson & Associates • Kai Hawaii, Inc. • KD Construction, Inc. • Koga Engineering • L. M. Nishida Weatherproofing • La’au Structures Inc. • La’au Structures, Inc. • Lawrence W. Jackson & Assoc., Inc. • Leeward Roofing & G.C. • Magnusson Klemencic Associates • Maryl Group • MC Architects Incorporated • Mid Pacific Testing & Inspection • Moss Engineering • Nick Kaars Associates, Inc. • Nordic PCL Construction, Inc. • Notkin Hawaii, Inc. • Ono Construction, LLC • P3 Management • Pacific Pro Inc. • Palekana • Paradise Erectors, Inc. • ParEN Inc. • Paul Sheriff Incorporated • PBR Hawaii & Associates, Inc. • Philpotts & Associates Inc. • Reflections Glass • Rent A Fence • Resort Management Group • Rider Levett Bucknall • Rigg Mosaics • Robert E. Freeburg, AIA • Ronald N.S. Ho & Associates • RTV Designs • Sato and Associates • Sidney Fuke • Simmons Steel Corp • Simplex Grinnell • Sonitrol Patron • South Pacific Steel Corp. • SunTech Hawaii • T&T Electric • The Mechler Corporation • WE Painting, Inc. • Westside Glaziers • Wilson Okamoto Corporation • Wiss, Janney, Elstner Associates, Inc. • Wulbur Smith Associates
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GUAM’S GREEN REVO 10 years in the making BY MAR-VIC CAGURANGAN
The Learning Resource Center at Guam Community College in Mangilao was one of the island’s first buildings to be LEED certified.
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LUTION: T
he Learning Resource Center at Guam Community College in Mangilao and the Coast360 in Maite have achieved iconic status in Guam’s building industry, not only for their architectural designs but more so as the first civilian edifices on island to have been LEED certified. The two buildings, which both opened in 2010, have since set a trend toward the emergence of more sustainable building projects on island. “We have three more green projects in the works,” says Michael Makio, managing Michael Makio principal at Taniguchi Ruth Makio Architects, which created the architectural designs for the Learning Resource Center (LRC) and the Coast360 buildings. Embarking on a project designed to be energy-efficient is not an easy task on Guam considering the island’s isolation and shipping impediments that limit the availability of some products and construction supplies. “The accessibility of materials that are taken for granted in the states can be difficult to acquire on Guam,” he says. But apparently, it’s doable. Achieving sustainability, Makio says, can be a matter of going back to the basics by adopting sensible practices such as recycling construction debris and adding a few windows to a building to reduce reliance on electrical light.
www.buildingindustryhawaii.com | 45
The Coast360 facility in Maite is one of the first LEED-certified buildings on Guam.
Most of the “concrete boxes” commonly seen on Guam were built during the 1980s and the 1990s, the period when people “were so fixated on reducing the heat coming through the window,” Makio says. The elements of an energyefficient project are a combination of 60 percent advanced technology products and 40 percent “old practices that are now being revised,” he adds. The Coast360 building, for example, brings together many innovative technologies such as a roof garden that prevents reflection glare and reduces heat from the sun. The rooftop of Coast360, formerly known as the Federal Credit Union Bank, is built with a cistern that collects rainwater for irrigation and other appropriate uses for recycled water.
The $5.2 million Learning Resource Center is equipped with energy-efficient computers, LED lighting, furniture made from recycled materials and a parking lot paved with recycled asphalt. “We use a building management system in which the computer controls the air conditioning system. The system also tells you if there are power surges that can affect the light fixtures,” Makio says. The new learning center at Guam Community College (GCC) was one of the government projects funded through the American Rehabilitation and Reinvestment Act (ARRA) grant received by the Guam Energy Office (GEO). “It is the first and only Gold LEED-certified government building on Guam,” says Lorilee Crisostomo, former GEO director.
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“It is really hard to turn an existing building into a LEEDcertified facility because a lot of it involves architectural planning,” says Crisostomo. “You still can work on existing buildings but it’ll require a lot of money. You have to break down some walls and redo them.” The best th at GEO could do to upgrade existing public facilities was to replace old equipment with energy-efficient systems to keep their power consumption in check. “Our mission was to promote energy efficiency. When we received the ARRA money we started doing real projects. But since it’s federal money, we have to stick to public buildings,” Crisostomo says.
Newcomer, New Building Alakai Pacific Inc. Guam’s newly completed facility at the Harmon Industrial Park in Dededo is the latest addition to the current boom in green building construction on Guam. “The 18,000-square-foot facility was engineered and designed with environmental considerations,” says Ricky Guerrero, vice president of Alakai Pacific, a subsidiary of Ricky Guerrero Hawaii’s Alakai Mechanical Corp. The new building, which had its grand opening on Nov. 7, is equipped with systems designed to cool the Alakai Pacific Inc. Guam’s newly completed facility at the Harmon Industrial Park in Dededo is the latest addition to the current boom in green building construction on Guam.
48 | BUILDING INDUSTRY |MARCH 2013
Going Green entire facility using less power. It features a thermal insulation and vapor barrier consisting of prefabricated panels for the entire building envelope. “This reduces the heat gain and humidity intrusion while conserving energy,” Guerrero says. Installed at the large door opening is an air curtain system. “This reduces the outside air infiltration when the door is open and therefore the space conditions are maintained,” Guerrero says. High-velocity jet diffusers installed on the supply-air ducts spot cool the working stations. “This eliminates cooling of the facility’s large space volume and reduces energy consumption while maintaining reasonable comfort for the working people,” Guerrero says.
LEED—Leadership in Energy & Environmental Design—has set the international standards for sustainable buildings for which most builders aim. “A lot of private developers have decided to go with LEEDcertification because it enhances the value of their facility and they know it will have a benefit in terms of maintenance and operational costs,” says Brent Wiese, principal at RIM Architects Brent Wiese and a member of the Guam Building Code Council. RIM Pacific designed the Camacho Landmark Center, a three-building multipurpose commercial complex project, currently
under construction in Tamuning. According to its project design, the buildings will feature energyefficient glazing and shading devices. A pedestrian courtyard between the buildings will provide a cool and shaded meeting place. “All the new buildings will be designed to meet U.S. Green Building Council LEED requirements for certification,” according to RIM Architects’ project description submitted to the Guam Land Use Commission. “The buildings will be insulated and have the most efficient mechanical equipment available for low energy demand and long life cycles.” For the most part, green corporate principles have been adopted by a number of companies on Guam. For example, Hawaiian Rock Products, which manufactures construction materials for Guam, uses recycled fuel
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in running its plant, according to the company’s president, Jerrold Johnson. The company says it will soon begin offering ecofriendly materials.
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“We are working on a mix (asphalt) design with Parsons Brinckerhoff and the Department of Public Works to save and recycle some of the asphalts that we take out of the roads,” Johnson says. “This is done everywhere else in the U.S. We haven’t implemented it here on Guam, but we will be doing that in the near future.” The Mark Condominiums The Mark Condominiums, LLC
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50 | BUILDING INDUSTRY |MARCH 2013
For the most part, the spiraling power rate charged by the Guam Power Authority (GPA) has triggered Guam developers’ inclination toward building sustainable facilities. “People are sensitive to the power bill and they know that if they spend a little more money upfront, they can make that money back in the first five to 10 years by reducing their power consumption,” Wiese says. Along with the private sector’s initiatives to go green, the trend toward sustainability on Guam has been supported by the government’s desire to lessen the island’s dependence on fossil fuel. GPA, which spends more than $300 million a year on fuel purchase, has set a goal to cut fossil fuel consumption by 20 percent over the next 10 years. Last year it approved the renewable energy contracts to Quantum Guam and the Pacific Green Resources to supply a combined total of 15 megawatts of solar power. “If the market expands and we have more growth, new buildings
tasked to develop a model tropical energy code specifically tailored for Guam. Last year, the council approved a draft code, which will eventually be submitted to the Legislature for approval. “So we have been fine-tuning that document, which is really a
hybrid of the IBC and energy conservation code,” Wiese says. “So there has been a push from that end and it is critical that Guam has energy code so that any new construction will have less impact on power consumption.” BI
Under construction in Tamuning are the Camacho Commercial Center buildings, which are designed to meet LEED requirements, according to RIM Architects. Photo by Mar-Vic Cagurangan
and more housing, at some point GPA will have to increase their supply of power. That will be very expensive,” says Wiese. While setting its foot toward the renewable energy route, the government has created the Guam Energy Task Force that looks at expanding sustainable footprint on island by reducing the demand by energy savings. Although the trend is fast emerging, sustainable development is currently optional on Guam due to a lack of code that officially mandates energy-efficiency policy on constructions. In 2010, the Guam Legislature approved the 2009 International Building Code (IBC), with amendments that make the code applicable and practical for Guam’s built environment. “That code is originally set up in a different region,” Wiese says. “The code ties a lot to heating, fire places and other things that are not common here.” The Legislature has thus created the Guam Building Code Council
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The Port Authority of Guam (PAG) held a ground-breaking ceremony on Jan. 31, marking the commencement of Phase 1 of the long-awaited harbor improvement project. The project, which included the renovation of the container freight station building, modification of the break bulk yard and port facility expansion, is a component of the 2007 Port Modernization Plan developed by Parsons Brinckerhoff International Inc. The master plan was designed to address future PAG expansion and development based on typical commercial growth, as well as the impending military buildup. The harbor improvements are being funded by a $50 million grant from the Department of Defense, under the 2009 National Defense Authorization Act. “We know what Congresswoman Madeleine Z. Bordallo, our mandate is and center, joined other it’s to make sure Guam officials for a that this port is ground-breaking cerbuilt up properly to emony in late January ensure that there’s for the first phase no chokepoint of the Port Authority’s here,” said Dan harbor improvement. Tydingco, chairman of the PAG’s board of directors. Congresswoman Madeleine Z. Bordallo said the ground-breaking ceremony was the “first tangible sign of improving infrastructure here on Guam to support and sustain the realignment of military forces.” BI
BestPractices
ACCOUNTABILITY Means Action BY GARRETT J. SULLIVAN
A
GLOSSARY OF FAILURE TERMS TO AVOID
re you a CEO who others view as “you say what you mean and • Soon mean what you say?” Can you be counted on • As soon as possible 100 percent to fulfill • Right away your promises, or do you sometimes slide? • Later If you are the owner or CEO of a privately held • Try construction company, • Best you are accountable to • By the next time we meet very few people. Most owners of construction companies believe this is a good thing, but that’s a serious mistake. sense. Many believe it’s squelching Very often, CEOs will tell me or even intimidating; however, the in the same breath that they enjoy opposite is true. When accountthe lack of accountability, but are ability is a major focus in a company, unhappy with the way their comresults happen on time and with panies are performing. Oftentimes, predictability. Employee performance I point out to them that their increases, job satisfaction improves employees are simply mirroring the and relationships are strengthened. lack of strict accountability they see It is a formula for success. from the top. This occurs across the It starts from the top; if you need operations and various departments. help in this area, find an accountTurning around this culture is not ability partner. This is a person who easy. The only place to start is with will tell you the truth and challenge you, the CEO. As Ghandi said, Be the you to remember your commitments. change you wish to see in the world. It should be someone within your Never underestimate how closely company with whom you have excelyour employees watch and mimic lent rapport. This person should be you. If you are unaccountable to proactive in asking you questions others, they notice. such as, “I know you are working on The dictionary defines accountthe XYZ project. Have you gotten ability as the state of being liable and back to Jim on the change order you answerable for one’s actions. It’s typical promised him?” for people—and especially leaders—to Encourage your team to speak think of accountability in a negative with clarity regarding expectations
www.buildingindustryhawaii.com | 53
and completion dates. This means being specific about details and not asking others to “do a good job” or “get right on it.” Instead, be clear about what a “good job” entails. Below is the Glossary of Failure. Avoid these terms at all costs: • Soon • As soon as possible • Right away • Later • Try • Best • By the next time we meet Accountability is for fearless individuals who are not content with the status quo; it is for individuals who want to be true change agents. With accountability, you and your company will be more productive, reach higher levels of performance potential as well as achieve richer personal and professional relationships. True accountability begins with integrity with your language and actions. Accountability activates action. Why not make today the day that you begin to choose your words carefully? Why not speak intentionally in order to influence the kind of change you wish to see in your company and build a high performing culture of accountability? BI Garrett Sullivan is president of Sullivan & Associates, Inc., a management consultancy focused on the construction industry. Connect with him at GSullivan@SullivanHi.com, www.SullivanHi.com or 808.478.2564.
HWEA Picks Photo Contest Winners
The Hawaii Water Engineers Association (HWEA) held its second annual photography contest for its 400 members. The contest was developed as a way to increase membership participation at our annual conference and to help us recognize that, while wastewater is not the most glamorous job, there are aesthetic elements. Dozens of entries were pared down to 12 finalists, and the top three were selected by a panel of judges. Trade Publishing Editorial Director Aimee Harris and Building Industry magazine Editor David Putnam assisted in the judging. The entries were displayed at the HWEA’s meeting in February. The winning photographs:
1st Place
Reflections of Sustainability
Sand Island Wastewater Treatment Plant By Athan Adachi, Division Chief, City and County of Honolulu – Wastewater Treatment and Disposal The city is committed to a sustainable program for its treatment plants. The most viable part of the solids handling at the Sand Island Wastewater Treatment Plant is the egg-shaped digester, which is reflected upon the water, a valuable resource, in the primary clarifier. The Sand Island Wastewater Treatment Plant solids handling facility produces fertilizer pellets, which reduces the impact on our sanitary landfill thereby extending its life. The fertilizer pellets reduces the need to import 4,000 tons of fertilizer, reducing the cost to residents.
2nd Place
In the Belly of the Snake
Beachwalk to Ala Moana Sewer Tunnel By Michael Hong, Civil/Environmental Engineer, R.M. Towill Corporation
This photo is a snapshot of wastewater history. The new permanent 72-inch diameter Beachwalk force main is the first curved drive constructed in Hawaii (2nd in the nation). This 5,800 LF force main will convey wastewater from Waikiki and parts of Moilili below the Ala Wai Canal from the Beachwalk Wastewater Pump Station to the Diamond Head-end of Ala Moana Park. The straight portions of the force main are constructed with centrifugally cast fiberglass reinforced polymer mortar pipe. The S-curve portion is constructed with polymer concrete pipe.
3rd Place Night Fire
Sand Island Wastewater Treatment Plant By Chuck Donathan, Operator 4 at Sand Island Wastewater Treatment Plant, City and County of Honolulu – Environmental Section This is a photo of the digester gas flare. Solids from the wastewater are collected and placed in anaerobic digesters. The digesters provide an environment for wastewater microorganisms to metabolize organic materials and produce methane. Some of the methane is used to heat the digesters. The remaining methane is burned at this flare. Ideally, the extra methane could be used to generate electricity and offset the city’s energy demand. This photo serves as a reminder of our need to fully utilize all of the resources from the wastewater treatment process.
54 | BUILDING INDUSTRY | MARCH 2013
NewsBeat Sause Bros. Nearing Columbia Launch
The hull section of the barge Columbia is being assembled in Oregon for Sause Bros. for service between Hawaii and the mainland. Sause Bros. plans to outfit its newest barge Columbia this spring and have it operational this fall. Work on the barge began last March at
Gunderson Marine, Inc. in Portland, Ore., and the vessel is designed to service the Hawaii market. The Columbia will be larger
than its predecessor, the Nestucca, and “will join our latest barge Kamakani,” says Jeff Browning, general manager for Columbia River Service of Sause Bros. “With two modern barges, we will now be able to provide sailings twice a month between the Northwest and Hawaii.” Sause Bros. provides a common carrier service from its inland terminal on the Columbia River in Rainier, Ore., to its terminal in Kapolei. The company is also in the process of rebuilding its tug fleet.
Maui Company Partners with Prefab Builder Maui contractor Cutting Edge Development has partnered with Blu Homes to deliver and install its prefab “green” homes in Hawaii. Built in the company’s 250,000-square-foot factory in Vallejo, Calif., the homes have structural steel framing and are folded for quick and cost-effective transportation and setting up on site. Once delivered, the homes typically are completed in four to six weeks. “When it comes to building in Hawaii, choices are limited and it’s expensive,” said Lars Wernars of Cutting Edge Development. “My team and I have been building green homes in Hawaii for many years and I’m excited to be partnering with Blu Homes to give Hawaii customers more options for beautiful, modern green homes that can be constructed in a short timeframe with limited impact on the environment.”
Maui-based Cutting Edge Development has teamed with Blu Homes out of California to install prefab homes. From single-level studios and cottages to two-story, four-bedroom homes, each of Blu Homes’ eight home models includes open floor www.buildingindustryhawaii.com | 55
plans, up to 16-foot ceilings and expansive windowed walls. For more information, go to bluhomes.com/Hawaii.
NewsBeat Sakamoto Honored as Union Builder of the Year The Hawaii Regional Council of Carpenters honored Gerard Sakamoto, president of S&M Sakamoto, Inc., with the 2013 Outstanding Union Builder of the Year Award at a reception hosted by Pacific Resource Partnership in January. The award is given annually to a contractor who has made exceptional contributions to the construction industry and the community, taken a cooperative approach to labor-management relations and demonstrated strong support of union construction. “Gerard has been involved in the construction of many of the most familiar commercial, institutional, retail and government facilities in the Islands. You won’t find a stronger, more pro-union contractor than this industry leader, who values the training and quality of his field workers,” said Ron Taketa, financial secretary and business representative for the Regional Council of Carpenters. “We are incredibly honored to be in the company of the past winners,” Sakamoto said. Previous winners of the award include Vincent
Gerard Sakamoto, center, was chosen Outstanding Union Builder of the Year by the Hawaii Regional Council of Carpenters. With Sakamoto are Ron Taketa, left, of the Regional Council of Carpenters and John White, Pacific Resource Partnership executive director.
Nihipali Sr. of V&C Drywall Contractors, Inc.; Glen Kaneshige of Nordic PCL Construction, Inc.; and Lance Wilhelm of Kiewit Building and Kiewit Pacific Co. S&M Sakamoto was founded in 1940.
Core Tech’s Housing Project Kicks Off
The ground-breaking was held in late January for the 72-unit Summer Green Residences in Guam. The Guam Housing and Urban Renewal Authority (GHURA) broke ground on Jan. 29 to mark the start of construction on the Summer Green Residences, a $28 million project in Tamuning. Core Tech International Corp. is handling the project
under the Low Income Housing Tax Credit program. The four-building complex on Marine Corps Drive will consist of 72 housing units for low-income residents. The project, formerly known as Tower 70, is expected to be completed by December 2014, says Michael Duenas, executive director of GHURA. “We requested GHURA to change this project name from Tower 70 to Summer Green Residences since there will be no tower,” says Juno Eun, CEO of Core Tech. “Instead, we will have a beautiful building with three wings and four stories that are safer and convenient for the tenants, and we added two more units for a total of 72 units.” Eun says the project will add to the government’s target to build 3,000 affordable homes in five years. “This is a joyous occasion, especially for the many of us here who have been personally involved in conceptualizing and planning to build 3,000 affordable homes for Guam,” Eun says.
56 | BUILDING INDUSTRY | MARCH 2013
Diocese of Honolulu to Install Solar System
Attending a ceremony in December to launch the solar project were, front row, from left: Lisa Sakamoto, Diocesan Finance Office; Very Reverend Gary L. Secor, Vicar General, Diocese of Honolulu; Craig Hunt, chairman of Sunforce Solutions International (SFSI); Most Reverend Clarence Silva, Bishop, Diocese of Honolulu; Vince Canino, vice president of renewable energy at Trane; Philipp Herzog, CEO of SFSI. Back row from left: Eric Bauer, strategic solutions account executive at Trane; Bruce Graham, Diocesan attorney; Mike Ketcham, director, design and engineering, CoGen at Trane; Vito Galati, Cades Schutte LLP legal consultant for the Diocese of Hawaii; Don Mitchell, director of strategic solutions at Trane; Dr. David Rezachek, engineering consultant for the Diocese of Hawaii from Rezachek & Associates; Monica Kelsey, executive assistant, HNU Energy; Jared Libby, project manager at HNU Energy and Vince Vernay, facilities services manager at the Diocese of Honolulu. The Catholic Diocese of Honolulu has completed plans to install solar roof system totaling more than 1.15 megawatts in nine parishes on Oahu and Maui. The Diocese is partnering with Trane, which offers indoor comfort solutions and services and is a brand of Ingersoll Rand, and Sunforce
Solutions International, which specializes in turnkey solar power solutions, on the project. Diocese leaders anticipate that the alternative energy solutions will meet 80 percent of future electrical needs, significantly reducing energy costs. Improvements were needed to replace aging infrastructure and
lower energy costs for the parishes. The parishes to be updated are Co-Cathedral of St. Theresa, Honolulu; St. Joseph, Waipahu; Star of the Sea, Kahala; St. Anthony, Kailua; St. John the Baptist, Kalihi; Maria Lanakila, Lahaina; Christ the King, Kahului; St. Theresa, Kihei, and St. Anthony, Wailuku.
NAVFAC Selects Future Leaders Naval Facilities Engineering Command (NAVFAC) Pacific has selected eight employees for the 2013 Leadership Development Program (LDP) within the Pacific Area of Responsibility (AOR). Richard Tanaka, Michael Langer and Jeremy Mitchell of NAVFAC Hawaii were among those chosen to represent the NAVFAC Pacific AOR. They will begin the program on Jan. 1 and must complete it by Dec. 31, 2014. The LDP was created by NAVFAC to provide developmental opportunities for its future civilian senior leaders. The program includes education, training and rotational assignments.
Others chosen were Daron Lau (NAVFAC Pacific), Linus Coballes (NAVFAC Pacific), Christine Manglona (NAVFAC Marianas), Delphine Lee (NAVFAC Far East) and Bruce McLean (NAVFAC Far East.) “The remarkable achievements and significant contributions of the eight chosen cadre members from the NAVFAC Pacific AOR deserve special recognition as this year’s competition was particularly challenging,” said NAVFAC Pacific Vice Commander Capt. Pete Lynch. “Each individual exemplified a high degree of professionalism and potential to become great future leaders for NAVFAC, the U.S. Navy and our nation.” www.buildingindustryhawaii.com | 57
Top: Michael Langer Middle: Richard Tanaka Bottom: Jeremy Mitchell
NewsBeat
BIA Show Attracts Record Crowd The BIA-Hawaii’s 19th Home Building & Remodeling Show was attended by more than 26,600 people. The 19th Building Industry Association (BIA) of Hawaii Home Building & Remodeling Show at the Neal Blaisdell Exhibition Hall on Jan. 25-27 attracted a record 26,645 attendees, a 16.4 percent increase in attendance over 2012. “I think that our record-breaking
attendance is a sure sign that confidence is back,” says Karen Nakamura, CEO of BIA-Hawaii. “People are ready to make home improvements, invest in energy saving technologies and improve their lifestyles.” The expo featured many of Hawaii’s top contractors, suppliers,
building industry experts and associates. The exhibitors included 21 companies offering solar technology, windows, kitchen and bathroom renovation contractors and sustainable materials that offered low maintenance and energy savings to homeowners.
Kailua Builder Honored as 2012 CGP Professional who best showcases the importance Michael Fairall, CGB, CGP, Master of the educational desCGP, founder of Mokula ignation and promotes High Performance Builder professionalism. Fairall, a in Kailua, has been named member of NAHB Green the 2012 Certified Green Building and Energy Professional™(CGP) of Subcommittee, has held the Year by the National the CGP designation Association of Home since 2009. He received Builders (NAHB). He was the award in January for recognized in January at the his longtime advocacy Designation Achievement on green and sustainable Reception at the 2013 Michael Fairall design and construction International Builders’ Show issues and his focus on in Las Vegas. increased energy efficiency, improved The CGP Designee of the Year is indoor air quality and occupancy awarded to the industry professional 58 | BUILDING INDUSTRY |MARCH 2013
health, appropriate allocation of resources and consumer education. “Mike Fairall understands that it’s every member’s responsibility to promote professionalism in the industry, and that one of the best ways to demonstrate that professionalism is to stay on top of educational opportunities, understand best practices and pay attention to design trends,” said Kimberly Chambers, chair of the Green Building Designations Board of Governors and a builder from Montana. “I congratulate Mike on this welldeserved honor.”
The Contractors Association of Kauai 2013 officers and board of directors are (seated, from left) Tom Arnott, Curtis Law, Bryan Davidson, (standing, from left) James Abeshima, Lanell Miyamoto, David Hinazumi, Laurie Cushnie, Travis Horka, Fred Pascual, Dirk Apao, Jesse Akagi, Jerry Nishek and Trinette Kaui. Not shown are Ray Ellis and Maile Bryan. Photo courtesy of Shelly Paik Jerry Nishek, general manager of Kauai Nursery and Landscaping, was installed as the 55th president of the Contractors Association of Kauai (CAK), while the Kauai Island Utility Cooperative (KIUC) received Member of the Year honors during the CAK’s meeting in November at the Kauai Marriott Resort and Beach Club. Other officers for 2013 are Travis Horka of Custom Landscaping, first vice-president; Trinette Kaui of A&B Properties, second vice-president; Jesse Akagi of Hawaii Gas, secretary; and Dirk Apao of Finance Factors, trea-
surer. Maile Bryan of Martin A. Bryan, Inc. is immediate past president. New 2013 board members are James Abeshima of Shioi Construction, Curtis Law of Curtis E. Law, Inc. and Raynard Ellis of HPM/Kauai Lumber. Current board members include Thomas Arnott of Jas. W. Glover Ltd., Laura Cushnie of Cushnie Construction, David Hinazumi of Grove Farm, Lanell Miyamoto of Kalei’s Steelworks, Bryan Davidson of Earthworks Pacific and Fred Pascual of KIUC. The association also presented
Nishek To Head CAK; KIUC Honored Service Awards to acknowledge member companies for their contributions to the CAK as well as the construction industry and community. The award winners: • Hideo Tanaka Subcontractor of the Year: Ralph and Laura Cushnie of Cushnie Construction • Wayne E. Ellis Associated Member of the Year: Simpson Strong Ties and Hawaii Gas • Robert Rask Community Service award: Jeff Fisher, Earthworks Pacific • Tetsuro “Rosy” Maeda Member of the Year: KIUC
CRW Wraps Up Honolulu Tower Project Commmercial Roofing & Waterproofing Hawaii (CRW) recently completed renovations to the roof of Honolulu Tower, the 41-story condominium on Beretania Street. The design work was done by Allana Buick & Bers (ABB). The original roof, built in 1982, included a Neogard system on the roof’s penthouse and lanai decks. The work entailed pressure washing and repair of the 13,600-squarefoot roof and walls, drainage bowl replacements and the application of a low-odor Neogard Pedestrian system. “This was a challenging project as we worked with other subcontractors and the timing of helicopter lifts
to deliver new exhaust vents that needed to be installed due to aging and deterioration,” says Larry Young, CRW vice president. “We also worked Commmercial Roofing & Waterproofing Hawaii recently renoaround condovated the roof of the 41-story Honolulu Tower. minium owners who had storage and AC units on The new Neogard Pedestrian their lanai that needed to be tempoSystem is a durable monolithic rarily moved during the renovation. membrane that incorporates organic In addition, we were careful to work quartz aggregate for added slip resisaround the numerous waterpipes and tance, Young says, and is designed electrical conduits.” for pedestrian traffic use and years of trouble-free waterproofing. www.buildingindustryhawaii.com | 59
InTribute
Herb Muraoka 1929-2013
Muraoka Helped Shape Building Codes
Photo courtesy of Douglas Oshiro; City and County of Honolulu
On Jan. 10, Herb Muraoka, a former city building director, died in a traffic accident on the Pali Highway. The following pays homage to his decades of work to improve Honolulu’s building codes. Herbert K. “Herb” Muraoka, P.E., S.E., Hon. AIA, was one of the most humble, yet foremost design professionals in Hawaii who made longstanding incremental contributions to the progressive development of our statewide construction industry as well as our economy for the betterment of community environments in Hawaii nei. He and his smiling “akamai” responses to difficult technical questions, will be sorely missed.
How many citizens retire after 34 years of government service at age 65 as Honolulu Chief Building Official (CBO), and are honored [BI July 2008] 14 years later at age 79 for their continuing voluntary professional codes and design standards contributions to the City and County of Honolulu, Hawaii Association of County Building Officials (HACBO), International Codes Conference (ICC), World Organization of Building Officials (WOBO), International Conference of Building Officials (ICBO), Structural Engineers Association of Hawaii (SEAOH) and AIA Honolulu? Muraoka joined the city as a structural engineer in 1960 shortly after the charter was adopted with Hawaii becoming the 50th U.S. state, and headed the Building Department divisions of Building Safety and Building Research prior to serving as CBO until 1994. In his continuing role as “bridge-builder,” he founded HACBO in 1970 and nurtured and guided it to include both building and fire officials as well as ICBO and ICC members at annual rotating conferences in each of our four counties. At a 1991 HACBO Honolulu conference, AIA Honolulu president Glenn Mason, AIA, presented Muraoka with a chapter commendation certificate which stated: “We commend you for your scholarship and leadership in addressing difficult applications and interpretations of existing and proposed code regulations.” One of Muraoka’s greatest professional legacies is his continual unofficial mentoring of his CBO successors including Randy Fujiki, FAIA who initiated the “one-stop permitting shop” with Art Challacombe and Acting CBO Timothy “Tim” Hiu, as well as AIA, BIA and GCA Hawaii Codes Committee chairs and members—especially during the extensive and intensive preparations for amended international building and residential codes (2003 and 2006 editions of IBC and IRC) adopted by the Honolulu City Council as the Honolulu Building Code (HBC).
— Andrew Charles Yanoviak, AIA, APA, CSI
60 | BUILDING INDUSTRY | MARCH 2013
NewsMakers Johnson Controls Tabs Peck
6 Join dck pacific Team
Former Hawaii state energy administrator Ted Peck was named energy solutions general manager by Johnson Controls and will head its building efficiency business in Hawaii, Guam and the Ted Peck South Pacific. Peck will lead the company’s effort “to help public and private sector organizations combat rising utility costs, improve operations and limit environmental impact.” He joins Johnson Controls with more than 25 years in energy management, including development of the Hawaii Clean Energy Initiative as the state’s energy administrator. In January 2011 he became president of Kuoka Inc. “Ted is a seasoned expert in energy management and understands the unique challenges of Hawaii’s energy landscape and the value that efficiency and renewable energy brings to the islands he calls home,” said Michael Crowe, vice president and general manager of Johnson Controls, which has operated in Hawaii since 1961. Peck, a retired Navy nuclear submarine officer, was named a “Forty Under 40” by Pacific Business News and in 2006 became a Pacific Century Fellow. He was selected among “20 Leaders For the Next 20 Years” by Hawaii Business Magazine in 2010.
dck pacific construction, LLC has added six new members to the staff of the general contractor/ design-build contractor’s Honolulu office. They are Bruce Hosek, superintendent; Timothy Schoder, senior estimator; and project engineers George Rodriguez, Delicia Barber, Steven Baqui III and Scott Wilson. “With our current workload and projects on the horizon, these
additions to our team will help us to continue to provide our clients with the excellence they expect on their projects,” said Eric Tessem, dck pacific senior vice president and general manager. “We are committed to providing innovative building solutions, and each one of these new hires bring the skill, knowledge and expertise that the dck pacific team is known for.” BI
Lower HeaLtH Care Costs Means a HeaLtHier BottoM Line.
Hawthorne Cat Promotes Giannaris Chris Giannaris has been promoted to sales operations and marketing manager at Hawthorne Cat. Since 2007, he was sales and operations manager for Chris Giannaris Hawthorne Cat’s Pacific division. He will be overseeing marketing for the company’s five Hawaii locations, in addition to operations, sales and equipment logistics and forecasting.
Lower Your HeaLtH Care Costs witHout saCrifiCing Your Benefits. At ProService, our exclusive HMSA health care plans, along with our Kaiser offering, help clients lower their overall costs while providing some of the richest benefits available in Hawaii. Talk to us today about how you can join the 1,000+ Hawaii businesses now achieving a healthier bottom line!
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www.buildingindustryhawaii.com | 61
NewProducts
Ground Control
Newpark’s Dura-Base mats got a real test during Space Shuttle Endeavour’s journey to its new home at the California Science Center. The mats, which can bear loads in excess of 600 pounds per square inch, proved up to the task by stabilizing and distributing the massive weight of the retired orbiter, and protecting he ground beneath. www.newpark.com
Hands-free Light Need your hands free and at the same time keep a bright light on the project? Coast’s industrial-grade HL8 headlamp, boasting a pure beam focusing optic system, delivers more than 300 lumens of power. It features an easyto-grip, hinged bezel, a rubber-sealed battery pack with an extended cord and helmet clips. www.coastportland.com
3-Way LED Bulb Crack Isolator Merkrete Fracture Guard 7000, from Parex USA, Inc., is the first liquid applied membrane to provide crack isolation up to 3/8inch. It offers maximum protection for tile and stone installation by inhibiting the transfer of cracks from the substrate to the ceramic, porcelain or stone tile. It installs quickly, cures in 4-6 hours and can be applied with brush, roller or trowel. www.merkrete.com
The Switch 3-Way, the first 25/50/75 wattequivalent LED bulb for use in three-way lighting fixtures, was recently unveiled by Switch Lighting Co. The bulb uses up to 80 per-cent less energy than standard three-way bulbs. www.switchlightingco.com
Propane Power Powering electric tools on the job site? Generac Power Systems has rolled out its LP3250 model, a propane-fueled 3.25 kW portable generator with a tank that’s integrated into the frame and is mounted on wheels. A 20-pound propane tank provides 9-hour runtime, comparable to the same size portable gasoline generator. www.generac.com 62 | BUILDING INDUSTRY |MARCH 2013
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