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ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
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BUILDING INDUSTRY HAWAII’S
ANNUAL FORECASTS
Federal • State • Public • Private
Development • Military • County
ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
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ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
CONSTRUCTION
PREVIEW 2020
                                                     Positive Forecast for 2020
                                                     I
                                                           t could be said that as Hawaii’s                         of building permits issued and their
EDITOR                                                     construction goes, so goes Hawai’s                       valuation in fiscal year 2019, Kathy
DAVID PUTNAM                                               economy. The outlook for the                             Sokugawa of the state Department of
RESEARCH EDITOR                                            industry in 2020, according to                           Planning and Permitting notes that “the
LORRAINE CABANERO                                    experts in this issue of Construction                          outlook for the construction industry
ADVERTISING DIRECTOR                                 Preview, is positive. The rail is nearing the                  looks very positive for the foreseeable
BARRY REDMAYNE                                       finish line, infrastructure projects are solid,                future.”
                                                     residential projects (including affordable                         In fiscal year 2019, the DPP issued
ADVERTISING MANAGERS
                                                     homes) are continuing across the Islands                       15,127 permits with a valuation of $3.49
CHARLENE GRAY
DAVID KANYUCK                                        and commercial jobs remain steady.                             billion, compared to 14,763 permits
JENNIFER DORMAN                                          Gov. David Ige points out that                             valued at $2.45 billion in FY 2018.
                                                     “construction has been one of the steady                           Mayor Kirk Caldwell is optimistic for
ART DIRECTORS                                        contributors to job growth in Hawaii                           the construction sector for 2020.
JONATHAN TANJI
                                                     over the past few years.”                                          “Although Honolulu faces many
JEFFREY BONSATO
                                                         The forecasts for the building                             challenges like any other large city,”
LEAD ART DIRECTOR                                    sector through 2020 is heavily due to                          he writes in Construction Preview, “our
URSULA SILVA                                         the state budgeting $2.3 billion for                           construction industry remains vibrant
PRODUCTION MANAGER                                   capital improvement projects. “CIP                             and strong in the year ahead, and will
ABE POPA                                             spending not only provides needed                              continue to play a critical role in the
OPERATIONS MANAGER                                   infrastructure for residents and visitors,                     strength of the local economy.”
PIILANI KAALEKAHI                                    it helps minimize the fluctuations in the
                                                     economic cycle,” Ige writes.
ADMINISTRATIVE ASSISTANT                                 Based on the increase in the number
MAPUANA MACDONALD
                                                                                                                    David Putnam, Editor
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ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
CONTENTS | CONSTRUCTION PREVIEW 2020
                 A Comprehensive Look at Hawaii’s PUBLIC and PRIVATE Construction Markets in 2020
PREVIEW                                                 Department of Environmental Management 28               Hawaii Asphalt Paving Industry (HAPI)             48
STATE AGENCIES                                          Eric Nakagawa, Director                                 Jon M. Young, Executive Director
State of Hawaii                                  6      $28.5M Budgeted for Construction Projects on            Is Balanced Mix Design In Our Future?
David Ige, Governor                                     Maui in 2020
State Budgets $2.3B in CIP Spending                     Department of Public Works, County of Maui 29           DEVELOPERS
Department of Business, Economic,                       Rowena Dagdag-Andaya, Director                          Gentry Homes                                     49
Development & Tourism (DBEDT)                8          Infrastructure Projects in the Works for 2020           Rick Hobson, VP of Sales & Marketing
Eugene Tian, Economic Research Administrator                                                                    Building with Affordability, Functionality and Design
More Additions and Alterations Projects                 U.S. MILITARY                                           Avalon Group                                  50
Coming in 2020                                          Naval Facilities Engineering Command                    Steve Kothenbeutel, Chief Development Officer
Department of Accounting & General Services 10          Hawaii (NAVFAC Hawaii)                           30     Residential Leads the Way in Construction Growth
Curt Otaguro, Comptroller                               Capt. Marc R. Delao, Commanding Officer
                                                                                                                Lendlease Hawaii                                  50
DAGS Plans 80 Projects in 2020                          Hitting ‘Mission Need Dates’ Vital in Era
                                                                                                                By Rob Smith, General Manager
                                                        of Great Power Competition
Department of Transportation                    12                                                              Lendlease to Focus on Renovations in 2020
Jade Butay, Director                                    U.S. Army Corps of Engineers                   32
                                                                                                                The Howard Hughes Corporation                 51
KCT Phase 2 Among HDOT Projects in 2020                 By Lt. Col. Kathryn P. Sanborn, Commander,
                                                                                                                Scott Timcoe, Senior Vice President, Design &
                                                        Honolulu District
Department of Hawaiian Home Lands          14                                                                   Construction Management
                                                        Workload Building in 2020 for Honolulu District
William Aila Jr. , Interim Director                                                                             Howard Hughes Readies for Robust Development
DHHL Continues Plans for Home Construction                                                                      The Economic Research Organization at the
Hawaii Housing Finance & Development Corp. 15           ASSOCIATIONS                                            University of Hawaii (UHERO)                  51
Craig Hirai, Executive Director                         Associated Builders & Contractors (ABC)     34          Peter Fuleky, Economist and Associate Professor
HHFDC Continues to Assist in Building                   Jonathan Young, President                               of Economics
Affordable Housing                                      Where is Honolulu Construction Headed in 2020?          Planned Projects Support Healthy Construction
                                                                                                                Outlook
                                                        American Council of Engineering Companies
COUNTY AGENCIES                                         Of Hawaii (ACECH)                         36
City And County of Honolulu                     18      Ken Kawahara, President                                 UTILITIES
Kirk Caldwell, Mayor                                    Business Climate Remains Strong for 2020                Hawaii Gas                                      52
Many Major Projects on Tap Across Oahu                                                                          Aaron Kirk, Vice President, Marketing and Business
                                                        American Institute of Architects
                                                                                                                Development
Department of Planning And Permitting (DPP) 19          (AIA) Honolulu Chapter                      37
                                                                                                                Reduce Energy Costs with Hawaii Gas
Kathy Sokugawa, Acting Director                         Purnima Mccutcheon, President
Rail, Education and Housing Pace Construction in 2020   Environment, Housing Top AIA Honolulu’s Agenda

Board of Water Supply (BWS)                   20        Building Industry Association of Hawaii (BIA) 38        PUBLIC PROJECTS
Ernest Y.W. Lau, Manager And Chief Engineer             By Gladys Quinto Marrone, CEO                           State Agencies
BWS Eyes Challenges of an Aging Infrastruture           Affordable Housing, Code Reforms Among Key              Department of Accounting & General Services       54
                                                        Issues for 2020                                         Department of Transportation                      56
County of Hawaii                             21
                                                                                                                Department of Hawaiian Home Lands                 63
Harry Kim, Mayor                                        Cement And Concrete Products
                                                                                                                Hawaii Housing Finance Development Corp.          63
New Opportunities Ahead for Island of Hawaii            Industry of Hawaii (CCPI)                        40
                                                                                                                Department of Education                           64
                                                        Kirk Hashimoto, Executive Director
Department of Water Supply                      22                                                              UH Office of Project Delivery                     73
                                                        Concrete Industry Offers Sustainability in Building
Keith Okamoto, Manager And Chief Engineer                                                                       UHCC Facilities & Environmental Health Office     74
HDWS Launches $37M in CIP Projects                      Construction Industry of Maui (CIM)              42     UHWO Office of Planning, Facilities, CIP & Land   75
                                                        Joshua Berlien, Board Chair
County of Kauai                                 23                                                              City & County of Honolulu
                                                        Maui Construction Requires a Streamlined
Derek Kawakami, Mayor                                                                                           Department of Design & Construction               75
                                                        Permit Process
New Opportunities Rise on Kauai                                                                                 Department of Environmental Services              77
                                                        General Contractors Association                         Department of Parks & Recreation                  78
Department of Public Works                      23
                                                        of Hawaii (GCA)                                  43     Board of Water Supply                             79
Lyle Tabata, County Engineer
                                                        Leslie Isemoto, President
Valuation of Construction Permits on Kauai                                                                      County of Hawaii
                                                        Hawaii’s Builders Face Obstacles in 2020
Dipped in 2019                                                                                                  Department of Water Supply                        79
                                                        Hawaii Island Contractors Association (HICA) 44
Department of Water                             24                                                              County of Kauai
                                                        Eleot Kaipo, President
Bryan Wienand, Manager And Chief Engineer                                                                       Department of Public Works                        80
                                                        It’s Time to Work Together to Sustain Industry Growth
KDOW Readies to Reinforce Water System’s                                                                        Department of Parks & Recreation                  81
Capabilities                                            Hawaii Lumber Products Association (HLPA) 44            Department of Water                               82
                                                        John Heideman, President
County of Maui                                 25                                                               County of Maui
                                                        Construction in Hawaii to Continue Trend of Modest
Michael Victorino, Mayor                                                                                        Department of Public Works                        82
                                                        Growth
Maui Housing Crisis Fuels Need for Residential                                                                  Department of Environmental Management            83
Construction                                            Hawaii Steel Alliance (HSA)                      45     Department of Water Supply                        83
                                                        Alan Labbe, President
Department of Planning                          26                                                              Federal Agencies – Statewide & Outer Pacific
                                                        Shiny Construction Forecast for 2020
Michele McLean, AICP Director                                                                                   NAVFAC Pacific                              84
Multiple Construction Projects in Maui’s Pipeline       Pacific Resource Partnership (PRP)               46     U.S. Army Corps of Engineers                85
                                                        Michael Formby, Executive Director
                                                        Optimism Prevails for Construction in 2020
4   CONSTRUCTION PREVIEW 2020
ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
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ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
STATE AGENCIES

                                                                                  PHOTO COURTESY HAWAII DEPARTMENT OF TRANSPORTATION - HAWAII.GOV

                                       State Budgets $2.3B in CIP Spending
                                       By David Y. Ige, Governor
                                       State of Hawaii
                     Government investment in high-             2019 was the third highest since 1995 for    the biggest share of CIP spending in the
                 quality infrastructure is essential to the     the six-month period.                        FY2019 budget at $1.14 billion, or 49.5
                 economic vitality and quality of life for         For fiscal year 2020, the state has       percent. That was followed by spending
                 our residents and visitors. This investment    budgeted $2.3 billion for CIP spending.      for higher and general education totaling
                 also creates jobs and sustains our             CIP spending not only provides needed        $818.8 million, or 35.6 percent.
                 construction industry.                         infrastructure for residents and visitors,      Some of the large state government
                     In fact, construction has been one of                                                   contracts awarded during the first three
                 the steady contributors to job growth in
                 Hawaii over the past few years. In the first
                                                                       Construction                          quarters of CY2019 include:
                                                                                                                • Hawai‘i State Hospital, $88.4 million
                 half of 2019, the construction sector added           has been one                             • Solomon Elementary School,
                 700 jobs for an increase of 2 percent over                                                       $77.3 million
                 the same period the previous year.                    of the steady                            • East Kapolei Middle School,
                     In addition, the state has improved its
                 bond ratings to the highest level, allowing
                                                                      contributors to                             $59.8 million
                                                                                                                • University of Hawaii at Mānoa,
                 the state to borrow at the lowest interest            job growth in                              $54.7 million
                 rates and therefore lowest cost to our                                                         • Campbell High School, $34 million
                 residents. Investing in infrastructure when          Hawaii over the                           • Honolulu Community College,
                 interest rates are low is the best way to
                 help accelerate and expand our economy.
                                                                      past few years.                             $31.3 million
                                                                                                                • Ewa Makai Middle School,
                     While state spending on capital                                                              $23.7 million
                 improvement program (CIP) projects             it helps minimize the fluctuations in the       • Kauai High School, $19.8 million
                 eased slightly during the first half of        economic cycle. During the previous             • Honowai Elementary School,
                 2019 compared to the same period a             economic expansion, capital spending              $12.2 million
                 year earlier, spending was still robust by     averaged $776.2 million per year. During        • Hawaii Public Housing Authority
                 historical standards.                          the great recession and the slow expansion        Punchbowl Homes, $11.3 million
                     The $721 million spent from January        that followed, CIP spending averaged            The state intends to continue moving
                 through June on public infrastructure          $1.23 billion a year. In calendar year       forward with a strong capital planning
                 represented a 15.6 percent decrease            2018, state CIP spending accounted for       and budgeting process that will assist us in
                 from the same six months in 2018 when          17.3 percent of all construction spending    making smart investments in infrastructure
                 spending was at record levels. Despite         across Hawaii.                               that will serve our future generations.
                 the decrease, spending for the first half of       Transportation projects accounted for

                 6   CONSTRUCTION PREVIEW 2020
ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
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ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
STATE AGENCIES

                                       More Additions and Alterations
                                       Projects Coming in 2020
                                       By Eugene Tian, Economic Research Administrator, Research and Economic Analysis Division
                                       Department of Business, Economic Development & Tourism (DBEDT), State of Hawaii

                     As expected, the construction              in 2020 since government contracts are       percent). In Maui County, the largest
                 industry performed well during the             usually large projects and take a few        construction permit value category was
                 first 10 months of 2019. Construction          years to complete. In 2018, government       residential construction at 49.8 percent
                 payroll jobs grew by 2.5 percent during        awarded $1.9 billion worth of contracts,     during the first 10 months of 2019.
                 this period, the highest job growth rate       the highest level since 1990, and some           Building permit data for Kauai
                 among all the industries in the state. State   of those projects will last until 2020 or    County are available for residential
                 total payroll job growth was 0.5 percent       beyond.                                      construction only and the value of
                 during the first 10 months of 2019. As a                                                    permits decreased by 15.9 percent during
                 measure of construction completed, the         Oahu will be busiest county                  the first 10 months of 2019.
                 contracting tax base increased 5.5 percent         During the first 10 months of 2019,          In all the counties except Kauai (Kauai
                 during the first half of 2019.                 value of building permits on Oahu            data available for residential construction
                     As a leading indicator for the             increased 4.7 percent. The increase on       only at this time), value of building
                 construction industry, the value of private    Oahu was mainly due to the increase          permits for additions and alterations
                 building permits issued during the first 10    in value of permits for additions            increased during the first 10 months of
                 months of 2019 decreased by 1.7 percent        and alterations at 18.2 percent while        2019, indicating that the activities in
                 as compared with the same period a year        residential and commercial permit values     this category will be busier than the year
                 ago. Value for commercial and industrial       were decreased by 12.8 percent and 13.3      before.
                 building permits decreased by 31.1             percent, respectively. On Oahu, the
                 percent, and value of residential building     permit value for additions and alterations   Real estate market conditions
                 permits decreased by 14.5 percent.             accounted for 64 percent of the total           Construction is largely related to
                                                                                                             the demand in the real estate sector.
                     The good news is that the value of permits for                                          Hawaii’s real estate market performance
                                                                                                             during the first 10 months of 2019 was
                     additions and alterations increased by 20.9                                             mixed. Single family sales increased on
                                                                                                             Oahu (1.9 percent) and the Big Island
                     percent during the first 10 months of 2019.                                             (2.3 percent) but decreased in Maui
                                                                                                             (-2.1 percent) and Kauai (-3.7 percent)
                     The good news is that the value of         permit value.                                counties. Median sale prices for single
                 permits for additions and alterations              The value of building permits for        family homes increased in Maui County
                 increased by 20.9 percent during the           Hawaii County decreased 1.5 percent.         (5.7 percent) and Hawaii County (5.6
                 first 10 months of 2019. This indicates        The decreased was caused by the decrease     percent) but decreased in Honolulu
                 that the construction activities in 2020       in residential construction permits at       County (-0.6 percent), and Kauai County
                 will be more focused on additions and          20.4 percent while values for commercial     (-7.2 percent).
                 alterations. The value of building permits     and industrial permits and permits for          Sales for condominium homes
                 for additions and alterations accounted        additions and alterations increased by 9     decreased in all the counties except
                 for more than half of the total building       percent and 38 percent, respectively. On     Hawaii County; however, median sale
                 permit value at 51.8 percent during the        the Big Island, the value of residential     prices for condo homes increased in all
                 first 10 months of 2019. The additions         construction was the largest category and    the counties.
                 and alterations projects include residential   accounted for 49.5 percent of the total         During the first three quarters of
                 and commercial. For example, the               permit value during the first 10 months      2019, homes purchased by local residents
                 renovations of Ala Moana Shopping              of 2019.                                     increased by 5.9 percent, while homes
                 Center and the International Market                Total building permit value decreased    purchased by mainlanders and foreigners
                 Place were in the additions and alterations    by 20.3 percent during the first 10          decreased by 5.5 percent and 41.8
                 category.                                      months of 2019 in Maui County.               percent, respectively. Overall, residential
                     Although the government contracts          Though the value for additions and           home sales increased by 1.4 percent
                 awarded decreased by 70.4 percent during       alterations increased by 27.3 percent,       during the first three quarters of 2019.
                 the first nine months of 2019, it does         it could not offset the decrease in value    Residential home sales were flat in 2017
                 not necessarily mean that government           of residential permits (-11 percent)         and 2018 with an average annual sale of
                 construction is going to be decreased          and commercial and industrial (-56.6         20,442 units during the two years.

                 8   CONSTRUCTION PREVIEW 2020
ANNUAL FORECASTS BUILDING INDUSTRY HAWAII'S - Trade Publishing
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STATE AGENCIES

                                     DAGS Plans 80 Projects in 2020
                                     By Curt Otaguro, State Comptroller
                                     Department of Accounting and General Services (DAGS), State of Hawaii

                    For 2020, the Department of                 • Download and print copies of bid    on important changes to laws,
                 Accounting and General Services             documents, plans and specifications;     procedures, and bidding and contracting
                 anticipates starting construction on 80        • Register to receive email           requirements; and
                 projects statewide with a total estimated   notifications of addendums or bid            • View photos and descriptions of
                 construction value of $250 million to       clarifications;                          recently completed projects.
                 $340 million. This list could expand as        • View names of plan holders for          Bidders may also visit the DAGS
                 funding becomes available for the capital   DAGS bids;                               offices at 1151 Punchbowl St., Room
                 improvement programs for DAGS and              • View State Payments on              422, in Honolulu or our District
                 other agencies who look to DAGS to          Contractors, Bid Results, Construction   Offices on the Neighbor Islands at 1680
                 implement their priorities.                 Contract Awards and Completed            Haleukana St., Lihue, Kauai; 755 Mua
                    All our current solicitations for        Construction Projects;                   St., Kahului, Maui; and 75 Aupuni St.,
                 construction bids and proposals are            • Qualify your design and planning    Hilo, Hawaii, to pick up bid documents
                 advertised on the State Procurement         firm to plan and prepare bid documents   on compact discs.
                 Office website (hands.ehawaii.gov/hands/    for our projects;
                 opportunities). Our bid documents are
                 available on the DAGS web page at pwd.
                                                                • Download forms, specifications
                                                             masters, and DAGS General Conditions
                                                                                                          DAGS has refocused
                 hawaii.gov. You will also find links to     for Construction;                            its attention to
                 other helpful information and be able to:      • Read up-to-date information
                                                                                                          customer service
                                                                                                          and delivering a
                                                                                                          better experience
                                                                                                          through a stronger
                                                                                                          focus on culture and
                                                                                                          core values.

                                                                                                         Throughout the 2019 fiscal year,
                                                                                                      DAGS was actively leading several major
                                                                                                      projects for the state of Hawaii. One of
                                                                                                      the more prominent projects was the new
                                                                                                      Kona Judiciary Complex on the Island
                                                                                                      of Hawaii, which opened its doors in
                                                                                                      September 2019. Another is a new state-
                                                                                                      of-the-art Patient Facility for the Hawaii
                                                                                                      State Hospital in Kaneohe. This 144-bed
                                                                                                      secure forensic facility is utilizing the
                                                                                                      design-build method of project delivery
                                                                                                      with an expected completion date of
                                                                                                      January 2021.
                                                                                                         Planning for relocation of the Oahu
                                                                                                      Community Correctional Center
                                                                                                      (OCCC) continued during 2019 with
                                                                                                      acceptance of the final environmental
                                                                                                      impact statement, which identified the
                                                                                                      Animal Quarantine Station in Halawa as
                                                                                                      the preferred site. Furthermore, efforts

                 10   CONSTRUCTION PREVIEW 2020
to expand the community correctional         during 2019 included entering into            constrained ability to pursue new
centers on Kauai and Maui advanced, as       a unique opportunity to participate           construction and facility improvement
did those for the Women’s Community          in a seawater-cooled air conditioning         projects.
Correctional Center on Oahu.                 alternative for up to eight state buildings       These initiatives spanned the entire
    DAGS also continued its ongoing          in the Capitol District area. This project    delivery process from project inception
efforts to maintain existing buildings       is pending private company meeting its        through final construction completion
statewide, including the completion of       financing and construction obligations.       to help ensure that quality projects are
health and safety improvements for Aloha     DAGS also continued to support the            delivered on time and within budget.
Stadium.                                     incorporation of Leadership in Energy             Looking to the future, DAGS will
    Major new projects initiated during      and Environmental Design (LEED)               continue to explore ways to improve
2019 included a proposed new Hawaii          building elements in new and renovated        operations through the continuous
State Veterans Home in Kapolei, Oahu,        public facilities and buildings, when         evaluation of our current processes
which was expected to bid later in the       feasible.                                     and procedures. These performance-
year.                                            As part of DAGS’ commitment to            improvement efforts are driven by our
    Planning for the New Aloha Stadium       achieve optimal value for our clients         goal of delivering the best support to
Entertainment District achieved new          and taxpayers, process improvement            our clients so that they can achieve their
milestones as DAGS and its team              initiatives were incorporated into our        missions to service Hawaii’s communities.
progressed through site selection,           overall project execution. Year-round         DAGS has refocused its attention to
publication of the EIS Preparation           formal training was provided to keep          customer service and delivering a better
Notice, community and stakeholder            our staff up to date in key areas such as     experience through a stronger focus on
outreach, master planning and related        risk identification and management, and       culture and core values.
due diligence studies and analysis. This     project and construction management.              The construction industry is a key
multi-year project will be delivered over    Staff have also pursued a variety of          participant in this process, and it remains
multiple phases through a Public Private     educational opportunities and research        a DAGS priority to strengthen our
Partnership initiative, which has received   into Public Private Partnership types of      effective working relationships with key
considerable industry interest.              innovative project deliveries, which can      strategic construction- and development-
    DAGS’ energy-related endeavors           be used to augment the state’s resource-      related partners.

                                                                                                    CONSTRUCTION PREVIEW 2020       11
STATE AGENCIES

                                       KCT Phase 2 Among HDOT
                                       Projects in 2020
                                       By Jade Butay, Director
                                       Department of Transportation (DOT), State of Hawaii

                     At the Hawaii Department                   are estimated at $300 million. When           photovoltaic panels on the roofs of the
                 of Transportation (HDOT) we                    complete, the combined KCT phases             Terminal 1 and 2 parking lots at HNL.
                 are responsible for operating and              will make transfer of cargo bound for the         Our Highways Division is currently
                 maintaining the state’s 11 commercial          Neighbor Islands more efficient and will      testing conversion of its fleet to electric
                 service, four general aviation airports, 10    reduce truck trips on Nimitz Highway by       vehicles through a service contract, and
                 commercial harbors and approximately           approximately 50,000 annually.                put out a request for proposals for EVs
                 2,500 lane miles of highway and 741                Improving efficiencies on our systems     and charging stations in November. We
                 bridges. We are also responsible for           is one of our big goals for 2020. This is     are looking forward to continuing to
                 planning improvements of these facilities      reflected in our continuing energy savings    champion sustainable transportation
                 as resources allow.                            efforts within our Airports and Highways      through initiatives like this and through
                     To start off calendar year 2020, we        Divisions.                                    innovation in building materials.
                 are anticipating advertisement of the              The state’s busiest airport, the Daniel
                 Kapalama Container Terminal (KCT)
                 Phase 2, which will make improvements
                                                                K. Inouye International Airport (HNL),
                                                                recently received a Level 2 Airport                Improving
                 such as wharves, bulkheads and berths          Carbon Accreditation in recognition of             efficiencies on
                 to complement the 84-acre cargo yard           our achievements in carbon reduction.
                 currently in construction in Phase 1.          This reduction was achieved in part                our systems is
                     Construction costs for this project        by the installation of more than 7,180
                                                                                                                   one of our big
                                                                                                                   goals for 2020.

                                                                                                                  We have added product
                                                                                                              specifications for carbon-injected
                                                                                                              concrete for flat work on our highways.
                                                                                                              The specifications were determined
                                                                                                              through testing that culminated in a
                                                                                                              demonstration pour for a section of an
                                                                                                              access road for the Kapolei Interchange
                                                                                                              Phase 2 project.
                                                                                                                  The material performed well
                                                                                                              and saved 1,500 pounds of carbon
                                                                                                              dioxide from being released into
                                                                                                              the environment. The testing and
                                                                                                              development of the specifications
                                                                                                              for carbon-injected concrete would
                                                                                                              not have been possible without the
                                                                                                              cooperation and support of the
                                                                                                              Elemental Accelerator, CarbonCure,
                          When your projects call for con-         products, count on us. For new             Island Ready-Mix and HC&D.
                          crete admixtures, concrete color         construction & restoration proj-               For 2020 and beyond, HDOT will
                          hardeners, liquid bonding adhe-          ects, our large inventory and fifty        continue to look toward innovative
                          sives, water-proofing systems                   years of experience in this
                          and sealants or fire / safety                   industry are ready to help.         materials, designs and partnerships
                                                                                                              to maintain and improve Hawaii’s
                                                                                                              transportation systems. We look
                                                                                                              forward to more successful projects and
                                           BONDED MATERIALS COMPANY                                           partnerships in 2020.
                        Kailua Kona (808) 326-2477 / Honolulu (808) 832-1155 / www.BondedMaterials.net

                 12   CONSTRUCTION PREVIEW 2020
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STATE AGENCIES

                                       DHHL Continues Plans
                                       for Home Construction
                                       By William Aila Jr., Interim Director
                                       Department of Hawaiian Home Lands (DHHL)

                    The Department of Hawaiian Home              animals. Farm plans are not required, and       repair. The department’s older homestead
                 Lands’ ability to fulfill its mission           the construction of a house and residence       communities have reached an age and
                 and invest in construction and capital          on the lot is optional. Subsistence             condition where major maintenance and
                 improvement projects on Hawaiian home           agricultural subdivisions are being             repairs are becoming necessary.
                 lands primarily depends on what the             designed in Honomu on Hawaii Island                 On Molokai, the department is
                 DHHL can afford.                                and Waimanalo on Oahu.                          responding to the critical need for
                    For fiscal year 2020, the Hawaii State           The newly approved Administrative           maintenance and improvements to the
                 Legislature allocated $26 million to            Rules for multi-family housing expand           Hoolehua Water System. This water
                 DHHL for capital improvement projects,          residential lease offerings to include          system provides safe and clean drinking
                 which will be used to directly support lot      townhouses and apartments. They also            water to homesteads located in the
                 development programs and services for           allow rental units, rent with option            Hoolehua-Palaau and Kalamaula areas.
                 beneficiaries statewide.                        to purchase and kupuna housing                  The improvements include replacing aging
                    One of the largest residential projects      programs on Hawaiian home lands.                asbestos water piping, pressure relief valves,
                 the department is actively working              Future multi-family and rental projects         gate valves, flow controls, well booster
                 on is the Kauluokahai subdivision in            include rent with option to purchase            pumps and motors; installing fire hydrants
                 Kapolei. Gentry Kapolei Development             single-family houses in Villages of Lai         in some areas; installing a photovoltaic
                 LLC completed the construction of 100           Opua in Kealakehe on Hawaii Island;             solar field to reduce DHHL’s electrical
                 turnkey homes in the 160-lot subdivision.       re-development of the former Stadium            operating costs; and replacing over three
                                                                                                                 miles of new roadway in order to gain
                         The department continuously strives                                                     access to most of the water facilities in
                                                                                                                 order to maintain the system, etc.
                           to maintain as well as create new                                                         The design and construction cost is
                       partnerships to meet the changing wants                                                   preliminarily estimated at $25 million,
                                                                                                                 with construction slated to start in the first
                            and needs of our beneficiaries.                                                      quarter of 2020 for Phase 1 and Phase 2,
                                                                                                                 which is the bulk of the work. For Phase
                 Some of the remaining 60 lots will be           Bowl-O-Drome site at 820 Isenberg St.           3, the photovoltaic system estimated start
                 offered to beneficiaries as self-help or        in Honolulu; and Kauluokahai transit-           time will be in the third quarter of 2020.
                 owner-builder home construction, which          oriented development in East Kapolei.           Phase 4 involves the new maintenance
                 is great news for smaller contractors               DHHL is investing funding into the          equipment for the DHHL Molokai base
                 looking at securing new job opportunities       planning, design and construction into its      yard so that maintenance crews will be
                 as we head into 2020. Additional turnkey        West Maui properties in Honokowai and           able to maintain the Hoolehua water
                 homes are also in the works.                    Villages of Leialii. The Honokowai Water        system after the improvements have been
                     A second increment of 130 lots at           System is currently under design and            made. Work will also start in third quarter
                 Kauluokahai is currently under design. An       will provide potable water for affordable       of 2020. All work is anticipated to be
                 invitation for bids for the infrastructure      housing in the Villages of Leialii area         completed before August 2021.
                 work is scheduled to be issued in early 2020,   and in future Honokowai homesteads.                 Another water system in need of
                 with construction to start by the summer.       Invitation for bids are tentatively             major improvements is the Anahola
                     Recent changes to DHHL’s                    scheduled for early 2020.                       Farm Lots Water System on Kauai. These
                 Administrative Rules will allow the                 In upcountry Maui, the department           improvements have been separated into
                 development of new types of products,           plans to construct drainage improvements        two phases with Request for Proposals
                 including subsistence agricultural lots         in the Keokea-Waiohuli area to mitigate         slated for 2020. Phase 1 construction
                 and multi-family residential units. The         drainage flows affecting existing residential   is set to begin in late 2020 and Phase 2
                 subsistence agricultural homestead lease        and agricultural homesteads. Invitations        construction is anticipated to start in 2021.
                 is for smaller agricultural lots, not to        for bids went out in late 2019.                     Phase 1 improvements include new
                 exceed three acres.                                 Although DHHL’s primary mission             waterlines which replace outdated
                     The Administrative Rules require            since 1921 has been to develop homestead        asbestos concrete pipes, mitigating high
                 subsistence agricultural homestead lessees      lots, with any type of development also         and low pressures, improving fire flow,
                 to cultivate their lots with plants and/or      comes the responsibility of maintenance and     and providing new water meters and

                 14   CONSTRUCTION PREVIEW 2020
STATE AGENCIES
backflow preventers. Phase 2 will involve    bid process late next year are road and      the process of initializing, DHHL
the demolition of a 500,000-gallon steel     drainage improvements in Kula on Maui        continuously strives to maintain, as
tank, construction of a new concrete water   and in the Honomu area of Hawaii Island.     well as create, new partnerships to meet
tank, construction of control building       Over $3 million has already been allocated   the changing wants and needs of our
and equipment enhancements and               to these projects, and DHHL is hopeful       beneficiaries. What this translates into
redundancy, site security improvements       to get construction underway prior to the    for the construction and trade industries
and a Supervisory Control and Data           start of 2020.                               is a broader range of job opportunities
Acquisition System.                              While these are some of the larger       from the largest construction firm to the
   Additional projects slated for the        projects that the department is in           smallest contractor.

                     HHFDC Continues to Assist in
                     Building Affordable Housing
                     By Craig K. Hirai, Executive Director
                     Hawaii Housing Finance and Development Corp. (HHFDC)

    The Hawaii Housing Finance and           and working collaboratively with public      under the Tax Reform Act of 1986.
Development Corporation (HHFDC)              and private sectors to seek long-term            The state has a matching LIHTC
was created in 2006 to focus on the          sustainable solutions that will benefit      program equal to 50 percent of the
financing and development of workforce/      future generations in Hawaii.                Federal LIHTC amount. Eligible
affordable housing and is administratively                                                taxpayers may claim LIHTC on their
attached to the Department of Business,      FINANCING TOOLS                              federal tax returns as a dollar-for-dollar
Economic Development and Tourism.            Rental Housing Revolving Fund                offset on their tax liability for 10 years.
    The HHFDC offers a toolbox of            (aka Rental Housing Trust Fund)              Act 129, SLH 2016 shortened the State
resources to facilitate the development          The Rental Housing Revolving Fund        LIHTC period from 10 years to five
of affordable rental or for-sale housing     (RHRF) provides equity gap low-interest      years.
including financing, expedited land use      loans or grants to qualified owners              Generally, affordable housing project
approvals under Chapter 201H, Hawaii         and developers for the development,          owners that qualify for LIHTC find
Revised Statutes, exemptions from            pre-development, construction,               investors for these tax credits through
general excise taxes, and real property.     acquisition or preservation of affordable    Syndicators to generate project equity
    Since its inception, the HHFDC has       rental housing.                              financing for their projects.
assisted in the development of 10,140            Preference is given to projects that         There are two types of LIHTC:
workforce and affordable units statewide     meet certain statutory criteria. Included        • Volume Cap (or 9 percent) LIHTC:
and has a production plan in place to add    is a preference for projects that provide    Tax credits that the IRS allows the state
approximately 8,133 more units over the      at least 5 percent of the total number       to issue for affordable housing purposes
next five years.                             of units for persons and families with       based on an annual per capita factor and
    In the immediate future, the HHFDC       incomes at or below 30 percent of the        the state’s population. The annual per
is concentrating on projects already in      median family income.                        capita limit for 2019 is $2.75, translating
the planning and production pipeline             Another preference is projects that      to $3,915,228 in LIHTC that the state
to accelerate the delivery of homes that     provide the maximum number of units          can allocate.
people can afford. At the same time,         for persons or families with incomes at or       • Non-Volume Cap (or 4 percent)
we are working with other state and          below 80 percent of the median family        LIHTC: LIHTC exempt from the
county agencies to identify lands for        income.                                      volume cap limitation. These credits
development opportunities.                                                                must be accompanied by tax-exempt
    As we move forward, the HHFDC            Low Income Housing Tax                       financing under the state’s bond volume
remains focused on strengthening             Credits (LIHTC)                              cap. The limit under the non-volume cap
financing tools, streamlining procedures,       The LIHTC program is a major              LIHTC is based on the amount of State
                                             financing tool for non-profit and            bond volume cap used for affordable
                                             for-profit developers to construct or        multi-family housing.
   For more information, visit               rehabilitate affordable rental housing.
   the HHFDC website at dbedt.               Under the program, HHFDC is the              Hula Mae Multi-Family
   hawaii.gov/hhfdc                          designated state housing credit agency       Revenue Bond Program
                                             that may allocate LIHTC established             The Hula Mae Multi-Family program

                                                                                                   CONSTRUCTION PREVIEW 2020          15
STATE AGENCIES
                 provides low interest rate financing          Development Program, including              to the Counties of Hawaii, Kauai and
                 through the issuance of tax-exempt            administrative expenses.                    Maui.
                 revenue bonds for the construction and/
                 or acquisition and rehabilitation of rental   FEDERAL FUNDS                               DEVELOPMENT TOOLS
                 housing projects.                             HOME Investment Partnerships                Land
                    Developers can secure 4 percent            Program (HOME)                                 A portfolio of real property acquired
                 non-competitive low-income housing tax            The HHFDC administers the federal       by negotiation, exchange, or purchase, is
                 credits in conjunction with the Hula Mae      HOME program which is intended              made available to developers through the
                 multi-family financing. The HHFDC,            to expand the supply of decent, safe,       Request for Proposals (RFP) process.
                 with the approval of the governor, is         affordable and sanitary housing. HOME
                 authorized to issue up to $1.5 billion in     funds may be used for a variety of          Chapter 201H Expedited
                 revenue bonds.                                activities including tenant-based rental    Processing
                                                               assistance, down payment loans for             Pursuant to Chapter 201H, Hawaii
                 Dwelling Unit Revolving Fund                  first-time homebuyers, rehabilitation       Revised Statutes, the HHFDC may
                 (DURF)                                        loans for existing homeowners,              develop, on behalf of the state or with
                    DURF was established pursuant to           property acquisition, new construction,     an eligible developer, or may assist under
                 Act 105, SLH 1970, which authorized           reconstruction, moderate or substantial     a government assistance program in
                 the issuance of $125 million of general       rehabilitation, site improvements,          the development of housing projects
                 obligation bonds to carry out the             demolition, relocation expenses,            which are exempt from all statutes,
                 purposes of the Housing Development           loan guarantees and other reasonable        ordinances, charter provisions and rules
                 Program. Funds may be used for the            and necessary expenses related to           of any governmental agency relating
                 acquisition of real property; development     development of affordable housing.          to planning, zoning, construction
                 and construction of residential,                  The HHFDC receives approximately        standards for subdivisions, development
                 commercial and industrial properties;         $3 million in HOME funds from the           and improvement of land, and the
                 interim and permanent loans to                U.S. Department of Housing and Urban        construction of units thereon.
                 developers; and all things necessary to       Development (HUD) each year. Funds             These Chapter 201H exemptions
                 carry out the purposes of the Housing         are allocated on an annual rotating basis   provide for greater flexibility in the
                                                                                                           design of housing projects. The
                                                                                                           appropriate county councils must
                                                                                                           approve, approve with modifications,
                                                                                                           or disapprove projects within 45 days.
                                                                                                           All 201H projects must comply with
                                                                                                           the County building permit process,
                                                                                                           HRS Chapter 104 (Wages and Hours of
                                                                                                           Employees on Public Works), and HRS
                                                                                                           Chapter 343 (Environmental Impact
                                                                                                           Statements).
                                                                                                              Developers are encouraged to begin
                                                                                                           the 201H process by first contacting
                                                                                                           the appropriate county. If the county
                                                                                                           government does not accept the
                                                                                                           developer’s 201H application, the
                                                                                                           HHFDC will consider the developer’s
                                                                                                           application. The HHFDC requires that
                                                                                                           the developer conduct at least one public
                                                                                                           meeting to solicit community input on
                                                                                                           the proposed project.

                                                                                                           Exemptions from
                                                                                                           General Excise Taxes
                                                                                                               The HHFDC may approve and
                                                                                                           certify for exemption from GET any
                                                                                                           qualified person or firm involved with
                                                                                                           a newly constructed or moderately or
                                                                                                           substantially rehabilitated project meeting
                                                                                                           specific income limit and eligibility
                                                                                                           criteria.

                 16   CONSTRUCTION PREVIEW 2020
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Many Major Projects on Tap
                                        Across Oahu
                                        By Kirk Caldwell, Mayor
                                        City and County of Honolulu
COUNTY AGENCIES

                      When my administration began in            under the agreement with the EPA, and         island residents by making our city more
                  January 2013, the mandate to cabinet           this includes upgrading the Honouliuli        sustainable and resilient. These projects are
                  members was to improve Oahu’s                  and Sand Island wastewater treatment          just a portion of the city’s total CIP budget
                  infrastructure, which unfortunately had        plants to full secondary treatment. The       of $1.16 billion for fiscal year 2020.
                  been neglected for years. After all, every     $267 million contract for Honouliuli was          Elsewhere, the city continues to invest
                  world-class city needs good infrastructure     awarded in late 2018, and the contract        in affordable housing and Housing First
                  to operate efficiently and provide its         for the initial phase of the Sand Island      units through the Department of Land
                  residents a good quality of life. With a       upgrade is expected to be awarded soon.       Management, resulting in expenditures
                  year left in my second term, I’m happy to         This will lead to more construction        of $28.3 million in 2019, and additional
                  report many of our projects and initiatives    jobs in the coming years, which helps         expenditures in 2020. Since 2017, when
                  have been completed to the benefit of the      sustain Oahu’s economy and keeps              I announced the goal of creating at least
                  Island’s nearly one million residents, but     our unemployment rate among the               800 affordable housing units every year,
                  many other projects remain on tap.             lowest in the nation. In fact, the            I’m happy to report that with help from
                                                                                                               the private sector, we’ve exceeded that goal
                        Although Honolulu faces many                                                           with the creation 2,401 units across Oahu.
                                                                                                               Meanwhile, projects like the Punawai Rest
                        challenges like any other large city, our                                              Stop and the Punawai Clinic and Hale
                                                                                                               Punawai initiatives in Iwilei are providing
                        construction industry remains vibrant                                                  hope to those who are homeless, while also
                        and strong in the year ahead, and will                                                 helping to bolster construction.
                                                                                                                   Of course, our city’s elevated rail line
                        continue to play a critical role in the                                                continues its march toward the critical

                        strength of the local economy.                                                         city center, which we hope can be built in
                                                                                                               collaboration with a private entity through
                                                                                                               a P3 partnership. This future agreement
                                                                 capital improvement program (CIP)             is expected to total approximately $1.5
                      Perhaps no infrastructure is more
                                                                 appropriation for the consent decree totals   billion in construction costs and will
                  critical to our residents than roads, and
                  after an unprecedented effort, the city        more than $136 million in the current         go a long way in stabilizing our local
                  has now repaved more than 2,000 lane           fiscal year, and is being paid for by sewer   economy and delivering this much-needed
                  miles of the 3,517 lane miles under our        fees, as opposed to the city’s general fund   transportation infrastructure.
                  jurisdiction. This represents nearly 60        Likewise, the Board of Water Supply               The finish line for rail is now within
                  percent of all city roads and approximately    (BWS) is engaged in a comprehensive           sight, and it’s up to HART and its board
                  $674 million in contracts. In current fiscal   program to improve our potable water          of directors, in partnership with the
                  year 2020, the Department of Design and        infrastructure and is spending $166.3         administration and the City Council,
                  Construction (DDC) is expected to issue        million in the current fiscal year on CIP     to ensure we deliver this project for the
                  another $50 million in repaving contracts      improvements, and a total of $2 billion       benefit of Oahu’s residents.
                  to improve our roads, especially those in      during the 10-year life of the program.           Although Honolulu faces many
                  the urban core. These are Oahu’s most              However, the city’s effort to improve     challenges like any other large city, our
                  heavily used roads, and improving their        our Island’s infrastructure is multi-         construction industry remains vibrant and
                  condition will go a long way in changing       faceted and a total of 40 projects being      strong in the year ahead, and will continue
                  the perception that Oahu’s roads are not       spearheaded by the DDC in the current         to play a critical role in the strength of
                  on par with other cities.                      fiscal year exceed $5 million. These          the local economy. I look forward to the
                      Meanwhile, Honolulu continues to           projects range from improvements to           support of the BIA, GCA, ABC, NAWIC
                  excel in meeting the mandates of the 2010      parks and erosion control to updating         and other organizations as we modernize
                  federal consent decree to improve sewer        buildings and getting our award-winning       and update our infrastructure to transform
                  and storm water systems by completing          bus system ready for electrification.         Honolulu into a truly world-class city we
                  378 of 421 projects on budget. The city        In short, these CIP projects will have        can all be proud of.
                  has until 2035 to fulfill its obligations      a positive impact on the lives of our

                  18   CONSTRUCTION PREVIEW 2020
Rail, Education and Housing
                     Pace Construction in 2020
                     By Kathy Sokugawa, Acting Director
                     Department of Planning and Permitting (DPP)

                                                                                                                                    COUNTY AGENCIES
    With the number of building permits      construction industry.                     construction will be allowed while
issued and their valuation increasing in         Bill 7 (Ordinance 19-8) created        building permit applications are being
fiscal year 2019, and many major projects    a five-year program to accelerate the      reviewed, under certain conditions.
under way or ready to start, the outlook     construction of affordable rental          This was a common practice for years
for the construction industry looks very     apartments on small parcels (20,000        until a couple of years ago when we
positive for the foreseeable future.         square feet or less) by offering land      determined there was no enabling
    In fiscal year 2019, the Department      owners financial incentives to construct   ordinance or specific requirements.
of Planning and Permitting issued            walk-up apartment projects in              The construction industry asked that
15,127 building permits with a valuation     certain zoning districts. This type of     we reinstate the inspections because of
of $3.49 billion. In fiscal year 2018,       development is ideal for landowners        the time and money they saved, and we
the DPP issued 14,763 permits with a         with smaller lots in the apartment,        responded with the SAI bill, with the
valuation of $2.45 billion, while 2017       apartment mixed-use, or business           support of the City Council.
records show 15,738 permits with an          mixed-use zoning districts who were
accepted value of $2.94 billion.             limited in what they can build.            Online Permitting, Mālama
                                                                                        Mondays
    The DPP continues to encourage people                                                   The DPP continues to encourage
    to utilize our online permitting system to                                          people to utilize our online permitting
                                                                                        system to self-issue 19 types of building
    self-issue 19 types of building permits.                                            permits. As stated above, we issue more
                                                                                        than 15,000 permits annually and we
                                                                                        estimate that about a third are done
   D.R. Horton’s Ho‘opili master-               The incentives include:                 online. Our goal is to increase online
planned community is in full swing and is       • A waiver of certain plan review       permits issued to at least 40 percent as
one of many projects that should provide     and building permit fees, as well as       it saves the applicant and our staff more
much-needed construction jobs for years      wastewater facilities charges.             time to review complex applications.
to come. Other major projects that are          • A 90-day processing for building          A complete list of permit types that
under construction or nearing building       permit applications once it is accepted    can be obtained online is available at
permit issuance include the city’s rail      by the DPP.                                our website at honoluludpp.org.
project, Honolulu Community College’s           • No requirements for off-street            We’re also continuing our Mālama
advanced technology training center, Lilia   parking or elevators.                      Monday program, where we focus
Waikiki, Castle & Cooke’s Koa Ridge and         Also in 2019, Mayor Caldwell            on closing out a backlog of building
several interim planned development-         signed Bill 24 (Ordinance 19-21),          permits. We also take that time to train
transit projects in the Ala Moana area.      which will help expedite the               new employees so we can better serve
                                             construction of certain buildings by       the public. No appointments are taken
Construction Incentives                      allowing special assignment inspections    on Mondays, but people can come to
   In 2019, Mayor Kirk Caldwell              (SAI), more commonly known as              either of our permit centers at the Fasi
signed into law two bills that are           “courtesy inspections.”                    Municipal Building or Kapolei Hale to
intended to boost the commercial                Under Ordinance 19-21,                  pay for and pick up a permit.

                                                                                                CONSTRUCTION PREVIEW 2020     19
BWS Eyes Challenges
                                        of an Aging Infrastruture
                                        By Ernest Y.W. Lau, Manager and Chief Engineer
                                        Board of Water Supply (BWS)
COUNTY AGENCIES

                      The City and County of Honolulu
                  Board of Water Supply (BWS) is the
                  state’s largest water utility, serving
                  approximately 145 million gallons
                  of water per day (mgd) of potable
                  water, and approximately 10 mgd of
                  non-potable and recycled water, to
                  roughly one million customers on Oahu.
                      One of our greatest challenges, one
                  faced by utilities throughout the nation,
                  is an aging infrastructure. Much of
                  the work ahead involves replacing and
                  maintaining key components of the
                  water system that are critical to delivering
                  water. These include 2,100 miles of pipe,
                  386 source and booster pumps, 212
                  water sources (wells, tunnels, and shafts),
                  and 171 water storage reservoirs.
                      Aging components of the water
                  system are continually identified and
                                                                 Kahaluu, Kailua, Liliha, Makakilo,          Waianae areas.
                  replaced to improve system reliability and
                                                                 North Shore, Nuuanu, Pauoa, Waipio              In fiscal year 2020, $20.5 million is
                  ensure sufficient pressure during periods
                                                                 and Waikele areas.                          budgeted for mechanical and electrical
                  of peak demand.
                                                                     Our facility renewal and replacement    system renovations at various well sites
                      The BWS’ capital improvement
                                                                 program addresses the appurtenant needs     and key booster and pumping stations
                  program budget includes nearly $38.7
                                                                 of water system components to ensure        throughout the Island. These projects are
                  million for the replacement of more than
                                                                 efficient operation. Nearly $11.3 million   set to take place in the Mililani, Waianae
                  eight miles of water mains on Oahu.
                                                                 has been appropriated for improvements      and Waipahu areas.
                  These projects will take place in various
                                                                 at facilities throughout Oahu, including        Approximately $27.3 million is
                  locations around the Island, including
                                                                 projects at the BWS Beretania Complex,      allocated for additional projects that
                  major upgrades of water mains in the
                                                                 and in the Aina Haina, Kapolei and          will improve system reliability across
                                                                                                             Oahu. These projects include $8 million
                                                                                                             to replace roughly 80,000 water meter
                                                                                                             transponder units, and $10.9 million to
                                                                                                             construct a 2 million-gallon reservoir and
                                                                                                             install a 24-inch main along Auwaiolimu
                                                                                                             Street and Pensacola Street to Kinau
                                                                                                             Street.
                                                                                                                 More information about BWS
                                                                                                             programs and projects are available on
                                                                                                             our website, at boardofwatersupply.com.
                                                                                                                 We are all owners and customers of
                                                                                                             the municipal water system and will face
                                                                                                             many challenges in the coming years. We
                                                                                                             must work together to optimize water
                                                                                                             system operations and infrastructure
                                                                                                             integrity to ensure water for life—safe,
                                                                                                             dependable and affordable water, now
                                                                                                             and into the future.

                  20   CONSTRUCTION PREVIEW 2020
New Opportunities Ahead
                       for Island of Hawaii
                       By Harry Kim, Mayor
                       County of Hawaii

                                                                                                                                                   COUNTY AGENCIES
    In 2020, Hawaii County will continue         past to build a better future.                  responsibilities and needs to be replaced.
to focus on making this Island a good               CDBG-DR funds can be used to
place for all.                                   support disaster relief, long-term recovery,    Housing
    We will invest in our communities to         and restoration of infrastructure, housing          Meanwhile, affordable housing
increase resilience, particularly in the face    and economic revitalization. An Action          is a major initiative that the county
of natural disasters, to increase public         Plan will detail how the county will use        is focusing on. Here are some of the
safety and take care of our people, who          the funds.                                      projects that will either commence
make Hawaii Island the most beautiful               Under FEMA’s 428 program, funding            construction or be complete in 2020:
place on Earth.                                  can be used to rebuild infrastructure               • Mohouli Senior Housing III: 92
    The coming year will present                 where it was or for other infrastructure        affordable housing units for low-income
challenges but also many opportunities.          projects. As of October 2019, funding           senior citizens.
                                                 was still pending.                                  • Ka Hui Na Koa O Kāwili Senior
Eruption Recovery                                   With funds from the Federal                  Project: Construction of 75 affordable
    We expect to begin implementing              Highway Administration, the county              units, with preference to veterans and
Recovery Strategic Plan that focuses on          commenced with building a temporary             spouses.
resilient recovery following the 2018            road over inundated portions of                     • Kaiaulu O Kapiolani: 64 multi-
Kīlauea eruption. This is an opportunity         Highway 132. The road was expected to           family units will be built in Hilo in 2020.
to make Puna stronger and learn from past        open in November 2019.                              • Pāpaaloa Elderly Housing
mistakes that increased risk to our residents.      Road crews have worked hard to grade         Renovation Project: The county has
                                                                                                 initiated plans to replace 10 aging units
                                                                                                 with 20 larger units.
   Affordable housing is a major initiative that                                                     • Lai Opua Village 9 Homeless and

   the county is focusing on.
                                                                                                 Affordable Housing Project: This project
                                                                                                 will service homeless populations with
                                                                                                 accommodations, wrap-around services
    Here’s a quick recap of the damage           a path over about three miles of lava rock,     and infrastructure improvements. Phase 2
caused by the eruption: In just a few            including across the main lava channel.         will develop affordable rental housing.
months, 716 structures were destroyed,              In some areas, rock temperatures                 • Kaloko Heights Affordable Housing
about 13 miles of public roads were              reached up to 800 degrees and resulted          Project: 111 rental units will be built in
covered with lava, water lines were              in damage to some grading equipment,            phase two, with Phase 1 construction of
disrupted and a county park was wiped            including breaking of bulldozer shanks.         81 units set to begin in 2020.
out in lower Puna. The eruption altered             The Hawaii County Department of                  • Villages of Lai Opua: Construction
the landscape and forces us to think             Water Supply lost about 14.5 miles of           of 60 units of single-family rental
differently about how we build in high-          pipe as a result of the eruption. Because       homes on DHHL property for Native
hazard areas.                                    of high ground temperatures, the                Hawaiians in Kona.
    With that in mind, the county                department has no plans as of fall 2019             • Kaiaulu O Waikoloa: 60 multi-
continues to assess what should be               to restore the infrastructure.                  family units in Waikoloa.
restored and where.                                                                                  Recently, the county’s Department
    As part of the recovery planning             Public Safety                                   of Public Works renovated the former
process, the county anticipates receiving           I’m pleased to announce that contracts       Memorial Hospital to provide a 50-bed
about $60 million in Community                   will be put out to bid for two important        homeless shelter serving single men,
Development Block Grant – Disaster               facilities: police/fire dispatch center and     known as Kealahou, the Healing Place.
Recovery (CDBG-DR) funds from the                Civil Defense office.                           This will also serve as an assessment
U.S. Department of Housing and Urban                The new dispatch center will be built        center, emergency center and provide
Development, plus money from the                 near Mohouli senior housing and will            supportive housing and support services.
Federal Emergency Management Agency              get our dispatchers out of the tsunami              Combined, these projects will move
to replace lost infrastructure.                  evacuation zone.                                the county forward and continue to make
    When it comes to spending these                 Additionally, the existing Civil             it a good place to live and work.
monies, we continue to learn from the            Defense’s office is too small for its immense

                                                                                                          CONSTRUCTION PREVIEW 2020           21
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