[ OUR OPINION ]
Local firms should get boost from Army project
CONGRESSMAN Neil Abercrombie assures that "a torrent of cash" will flow into the state's economy from a $6.9 billion Army housing contract even though it has been awarded to a California company.
THE ISSUE
A California company has been awarded a $6.9 billion contract to build and manage Army housing on Oahu.
Abercrombie maintains that Napa-based Actus Lend Lease intends to subcontract work to Hawaii firms "to the maximum extent possible" and that he will be holding the company to that commitment. Hawaii's voters and business community, in turn, should hold the congressman to that pledge.
That said, it appears that local contractors and building groups may not be fully prepared to bid for the work and jobs that involve construction and renovation of housing units at Schofield Barracks, Helemano and Aliamanu military reservations, Fort Shafter, Wheeler air field and other Oahu sites.
About $1.7 billion will be spent through the first 10 years of the 50-year contract to convert housing for Army personnel and their families from government to private operators. Under the plan -- the largest privatization project undertaken by the Department of Defense -- Actus will build, repair, manage and maintain 7,700 housing units here. An initial $350,000 for planning will be spent this year. Actus says it will seek loans from Hawaii banks to fund the venture, which would be a big boost to local financial institutions.
The huge infusion of money for such an extended period of time and the potential for jobs are welcome news. However, it appears businesses here may not be primed to grab a piece of the pie.
Beth Harbin, the small business advocate at the Chamber of Commerce of Hawaii, told the Star-Bulletin's Gregg Kakesako that she is concerned that local companies aren't "up to speed to get into any position to bid for these jobs." Abercrombie notes that community colleges and trade organizations may have to increase apprenticeship programs to meet the demand for laborers. Indeed, with Hawaii's housing construction booming, carpenters and other workers are in short supply.
Actus says it expects that 90 percent of subcontracting work will go to local companies. "We're going to run this like it's a local operation," said Robert Scott, Actus regional vice president of construction. "We don't plan on importing anybody."
That's reassuring, but if Actus can't get what it needs in Hawaii, the tide of federal dollars won't wash to our shores. State officials and business leaders along with building trade unions should help Actus connect with the companies and enterprises that can fill the bill. Otherwise, Hawaii will miss out on a golden opportunity.
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Hawaii doesn't need
California circus rulesHAWAII voters can watch from a safe distance the political carnival in California with some relief. California is one of only 18 states in which voters can recall their state officials, and Hawaii is not among them. California will maintain its reputation as America's entertainment capital, but it will turn its boast of being on the nation's cutting edge into a horror show. Caution: Don't try this in your home state.
THE ISSUE
California has scheduled an Oct. 7 election aimed at recalling Gov. Gray Davis and choosing his successor.
Hawaii Senate Republican Leader Sam Slom introduced a bill in this year's Legislature that would have authorized initiative, referendum and recall, placing such questions directly in the hands of the people. Twenty-three states have one or more of those procedures. Popular but imprudent propositions in California over the past quarter-century contributed to that state's $38 billion deficit by placing a lid on property taxes and other revenue sources, tying the hands of legislators trying to put together a constitutionally required balanced budget.
Californians instead blame Democratic Gov. Gray Davis for their budget crisis, and he has been unable to generate enough charm to overcome their anger. His recallable offense is losing the popularity that barely got him elected to a second term over an even grayer Republican opponent only nine months ago.
Honolulu City Council members face the potential of being recalled, but voters have used the mechanism sparingly. The City Charter provides that a petition with signatures of 10 percent of a member's district can force a recall election.
In 1985, voters recalled Councilmen Rudy Pacarro, George Akahane and Toraki Matsumoto after they changed parties in midterm from Democratic to Republican. Recall petitions were circulated two years ago against Councilman Andy Mirikitani and last year against Councilwoman Rene Mansho, but their resignations upon being sent to prison eliminated the need to follow through. A recall election would have cost $600,000.
If a majority of California voters favor ousting Davis, they will have scores of candidates from whom to choose his successor. The ridiculously low threshold for obtaining a place on the ballot is 65 signatures and a $3,500 filing fee. The top vote-getter, perhaps with as little as 15 percent of the vote or even less, will be the winner. Arnold Schwarzenegger is assumed to be leading the pack.
