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Put a ring on it Gemkell goes exclusive with luxury brand

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CM Beep, beep! MY Vehicles, population rise on CY Never too late?

CMY Agencies lag with Volume 16 No. 21 www.mbjguam.com February 18, 2019 - March 3, 2019 K payments t INDEX To the victor the spoils BY JOHN I. BORJA PLAIN ENGLISH...... 2 Federal contracts rolling out Journal staff JAPAN...... 4 MARSHALL ISLANDS...... 5 BY MAUREEN N. MARATITA such as an architectural and/or engi- At the turn of PALAU...... 6, 13 the new year, gov- Journal staff neering firm, or set aside, for example EDITORIAL...... 8 for small businesses. ernment of Guam agencies accrued OPINION...... 8 According to Journal expert Major contract awards for Guam receivables of ap- COMMENTARY...... 9 are in the present cycle of requests for columnist Boris Hertslet, prime con- tracts on Guam have been averaging proximately $6.93 EDITORIAL CARTOONS...... 8, 9 interest and requests for proposals. million in power A number of these contracts are about $650 million annually, with at QUOTABLE...... 9 bills and $2.29 mil- multiple award construction con- least $150 million of that due to go LEGISLATIVE REVIEW...... 11 to small businesses. However, given lion in water bills. tracts, awarded to more than one Many GovGuam BRIEFCASE...... 19 company or joint venture — with the rate at which solicitations are ap- pearing, Guam will likely pass those agencies typically FOCUS...... 20, 21 a base year and four option years, meet deadlines on Perez whether their source is Department of numbers this year. MILITARY...... 23 their power bills Defense fiscal year funds, or special Most recently a number of the DATABANK...... 25, 26, 27 contracts have been pre-solicita- within a month of their billing date, funds such as the Japanese mamizu but some agencies are struggling with funding for the Guam buildup. tions to gauge interest — in line with contracting policy — though the paying for their water bills. Others are sole-sourced — de- The Guam Power Authority and signed for one specialist company SEE SPOILS ON PAGE 12 Guam Waterworks Authority each month disclose their financial re- Weekend at Bernie’s ports with the Guam Consolidated Commission on Utilities. The most re-

PERMIT NO. 76 PERMIT NO. cent reports were discussed on Jan. 22. U.S. POSTAGE PAID POSTAGE U.S. USPS MARKETING MAIL USPS MARKETING

BARRIGADA, GUAM 96921 GUAM BARRIGADA, According to GPA spokesman Artemio Perez, a majority of the GovGuam agencies are consistent in making a payment each month. Like any other power service customer, the agencies are able to keep an open line with GPA in order to make sure payments are met in a timely manner. Photo by Justin Green “All customers receive the same level of care and attention,” Perez said. “Each payment extension request is considered based on account con- LABEL ditions, past payment performance SUBSCRIBE Bernadette N. Valencia, vice president and general manger for Micronesia and Okinawa at Matson Navigation and other factors.” He added that if an Co. celebrates her award of the Guam Business Magazine 2018 Executive of the Year. The award was announced agency fails to make a payment with- at the EOY gala on Feb. 2 at the Hyatt Regency Guam. (Back row, from left) Meghan Hickey, business editor, Glimpses Media; Milton K. Morinaga, vice president, director and managing director of P.H.R. Ken Micronesia Inc.; in an agreed deadline, a late payment

PUT YOUR NAME HERE — HERE NAME YOUR PUT Lee H. Vensel, country managing partner, Deliotte & Touche LLP, Guam and Micronesia; Richard W. Hart, owner, charge is applied. principal franchisee and president, Apple Pacific Restaurant Group; Monte D.M. Mesa, general manager, Guam Premier Outlets and Tumon Sands Plaza; Michael B. Makio, president and principal architect, Taniguchi Ruth GPA’s financial report showed Makio Architects; Gerard A. Cruz, president and CEO, Community First Guam Federal Credit Union, all 2018 EOY nominees; and (front row, from left) Maureen N. Maratita, publisher, Glimpses Media; Valencia; and Gov. Lourdes SEE LAG ON PAGE 12 A. Leon Guerrero. 2 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal Jon Anderson, diacritical accents and all things in between

I was very sad to hear of the question was, As Jon knew, pronunciation is a quired (you had to be there). passing of Jon Anderson. or took the challenge. But if you are a broad- Thanks also go to Shooting Star When I first arrived on Guam in trouble to caster these days you don’t have and Red Dragon Production, spon- the early 90s and was considering check. to understand the pronunciation sors Circle K and 76, Coca-Cola and how I would spend my time (and Jon under- symbols or the diacritical marks. Foremost Foods, Bank of Guam, earn a crust) somebody suggested stood those There are a number of online “talk- Hyatt Regency Guam, Island Girl, I go and meet Jon. mysterious ing” pronunciation guides that Philippine Airlines, The Guam I asked him whether my English symbols adja- will give the correct pronuncia- Daily Post, Titan Imports and accent would exclude me from a cent to words tion you seek — from American to of course to those of you who career in broadcasting, specifically in the dic- English pronunciation and varia- showed up and filled the ballroom radio, or whether with CNN’s grip- tionary (the PLAIN tions in between — whether Welsh to capacity. A special mention goes ping coverage during the Gulf War, pronunciation ENGLISH or Australian. All you have to do is to Kentos for welcoming us for the Guam listeners would be familiar key) diacritical click on the word or an icon. … After Party. … enough with the accent, since CNN marks (such Maureen N. Maratita had (and has) a number of British as the acute If you have to handle recog- Since I am naming names, reporters and anchors. and grave ac- nitions at an event, as I do for thumbs up goes to the Dusit Thani (He thought audiences would cents in French) and certainly used example at our galas, that doesn’t Guam Resort for producing the not only accept me, but that my them correctly in his many years as help you with the variety of names best scrambled eggs I have eaten accent would be my trademark.) … pronouncer at the annual regional in our island communities, but (outside of our home) possibly Spelling Bee. … it never hurts to ask people for ever on-island, but certainly in re- Life did not lead me to broad- help. Nobody has yet called me cent memory. It is difficult enough casting as a career path, but Jon It was while we were having an idiot because I checked how to to produce scrambled eggs just on was generous with his time, and I breakfast prior to one of those pronounce their name… the verge of runniness (as they learned a lot about Guam, media Spelling Bees (I was a frequent should be), but to do that for 200 and well, all things in between. … judge of the Spelling Bee at that Which brings me to this year’s people at a breakfast function is time) that he shared that he had Feb. 2 Guam Business Magazine admirable. … I will always remember Jon for been diagnosed with Parkinson’s Executive of the Year “EOY’s Got his mastery of pronunciation. disease. … Talent” themed gala. Thanks are due — Maureen N. Maratita is the publisher at He had either visited a coun- And later one time at lunch we to Emcee Cliff Guzman, Judges Patti Glimpses Media. Publications at Glimpses Media try in our region or elsewhere, discussed how Jon could deal with Arroyo, Phill Leon Guerrero and include the Marianas Business Journal, MBJ Life, knew how to pronounce a name, his failing voice, a tragic effect of a Karen Gayle. It takes a real judge to The Real Estate Journal, Guam Business Magazine, or a place, or whatever the word in disease that he dealt with head-on. … put on a plastic raincoat when re- Beach Road Magazine, Buenas and Drive Guam.

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Share your #experience with us @dusitthaniguamresort Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 3 Gemkell signs Number of vehicles on Guam rises with population exclusive deal with BY JOHN I. BORJA Kenzo Journal staff BY JOHN I. BORJA Guam’s growing population is Journal staff accompanied with an increasing number of vehicles that maneu- Luxury brand ver the island’s roads — a trend Kenzo is set to that can heighten the risk of traffic have its own accidents, according to data from space at The Plaza multiple local and federal agencies. Shopping Center Data from the Guam Department after Gemkell of Revenue and Taxation indicated Corp. signed an that by the end of fiscal 2018, there exclusive five- were 119,481 registered vehicles on Guam. With a population of year agreement Source: Guam Department of Revenue and Taxation to sell its cloth- at least 165,000, this equates to a ing, shoes and 1:1.4 car-to-person ratio. fiscal 2018 amount, 79,974 were include bus, handicapped, mo- accessories. Hawes The recent count is a nearly categorized as automobiles and torcycle, special equipment, taxi, Kenzo is a 15% increase in registered vehicles 26,820 were cargo vehicles. They trailer, veteran-designated, dealer, French-based brand founded by compared to 10 years ago, where represented the biggest types of reg- Japanese designer Kenzo Takada. the number was 104,278. Of the istered vehicles. Other categories SEE VEHICLES ON PAGE 6 The luxury brand is a culmination of high-end European fashion with Japanese elements incorporat- ed in the design. It was acquired by LVMH Moët Hennessy Louis Vuitton SE, which owns Louis Vuitton, Sephora, Christian Dior and other similar brands. The brand’s products are currently sold at T Galleria by DFS, Guam, but once Gemkell’s exclusive deal kicks in, Kenzo will move across the street to the Plaza. “The exclusivity will take ef- fect Aug. 1, but we’ll be open as soon as June or July,” according to Richard Hawes, managing director of Gemkell. A Saipan store will also be set up at the Arc in Garapan, possibly in March, he added. Hawes said he had been in talks with Kenzo management for the past five years and after careful analysis of the market, the parties agreed it was time to launch the brand in a bou- tique environment. Because of its contemporary, ready-to-wear fashion, Hawes said Kenzo is consistently popular with the tourists that come to both islands — especially with Chinese visitors. Since China is Saipan’s dominant vis- itor market, Hawes said it was ideal for its store to be bigger. The Guam location will have 500 square feet of Phillip Santos space while the Saipan location will be twice its size. POSITION: Account Executive Kenzo’s price range is typically be- LOCATION: Asan, Guam tween $200 and $500, so it’s not on DATE HIRED: December 16, 1995 tier with popular brands like Gucci or Chloé. However, Hawes said it was im- NOTES: Keen ability to connect with clients. Passionate portant that he diversifies the brands golfer. Makes time to give back, whether serving on the he manages in order to include a board of organizations like USO and Make-A-Wish or broader customer demographic. serving barbecued chicken kelaguen from behind the grill. “We don’t just go for high-end luxury brands. We’re also looking for contemporary brands that appeal to both men and women. Our tour- ists are fashion-conscious and they appreciate modern, contemporary styles, which is why Kenzo will be a great addition,” he said. Matson’s people are more than Guam shipping experts. They are Gemkell currently represents part of what makes our community unique. Visit Matson.com Marc Jacobs, Longchamp, LeSportsac and Balenciaga at the Plaza. mbj

MATS-34153 MBJ Guam-Phillip Santos-v1-MECH.indd 1 8/13/18 11:27 AM Job Name: MATS-34153 MBJ Guam-Phillip Santos-v1-MECH Size/color: 1/2 page upright: 6.875x9” / 4C Publication: Mariana Business Journal Pub Dates: 8/20, 9/3, 10/1, 10/29, 12/10 - 2018 4 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal Trump confirms second summit with North Korea Guam Killer

BY JULIAN RYALL ballistic mis- a major war with North Korea, with footage released Japan Correspondent siles — which potentially millions of people killed,” Pyongyang was he said. “Much work remains to be BY JULIAN RYALL threatening to done, but my relationship with Kim Japan Correspondent TOKYO — President Donald fire at Guam only Jong-un is a good one.” Trump used his State of the Union 19 months ago. The two leaders will meet on Feb. speech on Feb. 5 to confirm that he “As part of 27 and Feb. 28, although the exact T O K Y O will travel to Vietnam at the end a bold new di- venue for their summit has not been — China has of the month for a second summit plomacy, we announced. released new with Kim Jong-un, the North continue our The choice of Vietnam for the footage of an Korean dictator. historic push summit is heavy with symbolism, in Yin-hay upgraded ver- Vietnam has long been rumor- for peace on large part because Hanoi was at war sion of its potent ed to be the preferred venue for the the Korean with the United States only a few Dongfeng-26 follow-up meeting to the two lead- Peninsula,” the president said. “Our decades ago. ballistic missile ers’ first face-to-face discussions in hostages have come home, nuclear “Hanoi and Washington nor- — a nuclear-ca- Singapore in June of last year, with testing has stopped and there has not malized their relations in 1995 and pable weapon the president using the address to been a missile launch in 15 months. have since moved on to build trust that has been Richardson Congress to congratulate himself for “If I had not been elected and transform their relationship dubbed the progress in ridding North Korea of President of the United States, we SEE SUMMIT ON PAGE 5 “Guam Killer” its nuclear weapons and long-range would right now, in my opinion, be in — in an apparent shot across Washington’s bow in the region. State-run CCTV has broadcast footage of mobile launcher units of the People’s Liberation Army Rocket Force operating on a range. Analysts told Reuters that the images show fin-like control surfaces that have been added to the nose of the weap- on to give it improved stability and guidance in flight. The Chinese defense ministry confirmed in April that the DF-26 had been put into operational ser- vice. The DF-26 has a range of up to 3,400 miles, putting Guam within range of coastal regions of China, and can carry a conventional or nuclear warhead. It can also be de- ployed as an anti-shipping weapon, specifically against U.S. aircraft carri- ers operation in the Western Pacific. Beijing released the footage a little more than one week after U.S. Adm. John Richardson, head of U.S. naval operations, said in a press con- ference in Tokyo that the U.S. Navy has not ruled out sending an aircraft carrier, and its accompanying battle group, through the Taiwan Strait. That option remains, he said, as the waters between mainland China and an island that Beijing still considers to be a rogue province remain inter- national waters. U.S. warships transited the Taiwan Strait on three occasions last year, but an aircraft carrier group has not entered the strategic waterway for more than a decade. “We don’t really see any kind of limitation on whatever type of ship could pass through those waters,” Richardson said in response to a question about whether the new weapons that China can bring to bear in the region posed too great a risk. Beijing would almost certainly consider any such move a serious provocation and deployment of the DF-26 provides it with a credible threat against any U.S. vessels oper- ating in the region. mbj Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 5

SUMMIT up all his nuclear weapons. FSM claim against Lyon raises CONTINUED FROM PAGE 4 “I think everybody now realizes that North Korea is not interested in additional questions into one based on friendship,” said fully dismantling its nuclear weapons Ahn Yin-hay, a professor of interna- and missile capabilities, so the most BY GIFF JOHNSON ditional lift station for the system tional relations at Korea University we can hope for at this summit will Marshall Islands Correspondent which committed Chuuk Public in Seoul. “That can be a lesson for be some small improvements in the Utilities Corporation and its rate North Korea.” relationship between Washington payers to substantial additional op- A number of senior North and Pyongyang,” she said. MAJURO, Marshall Islands — A erational and maintenances costs Korean officials have visited Hanoi “Maybe that will be an increase 2014 Federated States of Micronesia for the entire life of the facility,” in recent months, she said, and in exchanges or the opening of a li- government claim against Lyon said the FSM government’s claim Pyongyang seems keen to learn aison office in Pyongyang, which Associates Inc. for over $4.6 million against Lyon. how Vietnam has remained a so- could be followed by permitting for “errors and omissions” in the de- Prior to starting work in cialist republic while at the same inspectors from the [International signs for a road and sewer project September 2009, PII questioned time developing a thriving market Atomic Energy Agency] access to the in Chuuk State raises additional “the failure of the design plans to economy and establishing trade Yongbyon nuclear site, followed by questions about the company’s in- identify customer connections and diplomatic ties with its neigh- its dismantling,” she said. volvement in the FSM in the wake to the new sewer lines.” The FSM bors and former enemies. “Reciprocally, the U.S. could give of its President, James “Jim” Lyon, Project Management Unit was Yet Ahn told the Journal that there the green light for the reopening of pleading guilty last month to brib- blunt in its statement to Lyon in is a growing feeling in the South that the Kaesong industrial park, but we ing officials in the FSM government August 2009 about this omission, Kim has maneuvered himself into a are really at the very earliest stages at and the state of Hawaii to gain mul- position of strength over the presi- the moment,” she said. mbj ti-million dollar contracts. SEE FSM ON PAGE 7 dent and has no intention of giving Lyon pleaded guilty in Honolulu federal court in late January to one felony count of “Conspiracy to Violate the Foreign Corrupt Practices Act and to Pay a Bribe to an Agent of an Organization Receiving Federal Funds.” On April 26, 2014, the FSM government issued formal notice to Lyon of its claim against his en- gineering company for over $4.6 million in damages because of what it said were design problems that caused numerous delays and required costly change orders. The FSM also notified Lyon that it was initiating the “alternative dispute resolution process” to engage in mediation over the claim. At the time the road and sew- er project was awarded to Pacific International Inc. of Majuro in early 2009, the $25.9 million price tag made it the biggest-ever U.S.- funded infrastructure project in the FSM. In late 2013, the FSM terminated PII’s contract with an estimated 90% of the work com- plete. A costly legal battle between PII and the FSM government has ensued that is now moving into ar- bitration. Lyon Associates Inc. was orig- inally hired in 2009 to prepare design and construction plans and provide construction management services for the Chuuk road, drain- age and utilities upgrade. The 11-page notice to Lyon is- sued by FSM Project Management Unit Contracting Officer Bruce E. Howell in 2014 details 18 instances of “errors and omissions” that the FSM government claims cost it at least $4.6 million. Before PII even began construction work in late 2009, its surveyors discovered the elevation in the existing sewer line linking to the treatment plant was five feet higher than shown in the Lyon design plans. Although Lyon denied responsibility for this prob- lem, several re-designs ensued to address the situation. Lyon’s “final design solution … required an ad- 6 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal

VEHICLES injuries or death. In that same time Traffic accidents from 2011 to 2015 CONTINUED FROM PAGE 3 period, the number of registered ve- hicles had increased from 109,842 Year Registered vehicles Crashes Serious injuries Fatalities to 116,291. (See table, “Traffic acci- 2011 109,842 6,699 906 15 dents from 2011 to 2015.”) personalized and government. 2012 111,091 7,031 1,180 16 The increasing number of ve- Though total crashes have not hicles on the road are correlated been made official for the following 2013 112,450 6,548 1,121 18 with the rise in traffic incidents, as years, the Guam Police Department 2014 117,002 6,473 848 19 recorded by the Guam Department has recorded 13 traffic fatalities in of Public Works. The department 2016, 17 in 2017 and 24 in 2018, in- 2015 116,291 7,206 941 9 sends annual statistics to the dicating an upward pattern. Source: On-line System Crash Analysis Reporting, Guam Police Department’s Planning Research and Development Section and the Guam Department of Revenue and Taxation National Highway Traffic Safety DPW receives federal Administration, detailing overall funding for maintenance and im- performance of the department’s provements on Guam’s main roads, goals to reduce traffic issues. but the agency has said secondary U.S. Census, Guam’s population was on the military buildup estimated The fiscal 2017 report to the and tertiary roads are in dire need at 133,152 in 1990, 154,805 in 2000 that by the time the relocation is National Highway Traffic Safety of repair. The most recent road im- and 159,358 in 2010. Nearing the completed, Guam’s population is Administration — the most recent provements master plan estimates next census in 2020, Guam’s current expected to reach approximately report available — showed that from nearly $1 billion is needed to get population exceeds 165,000 and is 187,000. The relocation projects 2011 to 2015, there were between these roads up to standard. expected to rise considerably once include infrastructural improve- 6,500 and 7,500 car crashes each More vehicles are expected to military relocation projects are com- ments to roads, although they are year. Of that range, between 850 grace Guam’s roads as the island pop- pleted within the next five years. mostly focused on the northern and 1,120 of them led to serious ulation increases. According to the Environmental impact studies part of the island. mbj

New charter airline from HK, Macau begins service to Palau

BY BERNADETTE H. CARRION Palau Correspondent

KOROR, Palau — Global Development Group, the firm also behind the planned luxurious Wyndham Resort in Palau, on Jan. 31 spearheaded the maiden flight of Palau Asia Pacific Air. The airline will be servicing the route between Palau and Hongkong three times a week, while the Palau and Macau flights will be three times every two weeks. The first flight to Palau brought 142 tourists via its 180-seater Airbus A320. PAPA, under the name Palau Pacific Airways, used to conduct charter flights to Palau but ceased operating in 2018, blaming a lack of Chinese tourists. The Global Development Group bought the name to revive the service to Palau. PAPA Chairman and Global Development Group President Selina Zhong said that there are plans to expand routes to Palau from other cities in the world. Zhong during the inaugural ceremony on Feb. 2 said that it aims to aid in Palau’s economic growth. “We hope by doing that we can inject more into the economy growth of Palau,” Zhong said through a translator. Palau Visitors Authority Chairman of the Board Ngiraibelas Tmetuchl welcomed the new airline, adding that it should consider operating regular flights and work with the government to “develop

SEE AIRLINE ON PAGE 15 Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 7

FSM “The FSM National Government Homelessness becomes growing CONTINUED FROM PAGE 5 has officially requested the sup- port and cooperation of the United tourism problem saying that building a new sewer States Government in the form of line with no customers connected any amplifying information and “is not only pointless, but may ren- details that may be shared or pro- der the system unusable.” vided to the FSM Department of While there has been no re- Justice, particularly as it pertains sult from FSM government’s to the alleged FSM involvement,” claim against Lyon Associates the FSM President’s Office said in issued nearly five years ago, a statement issued in late January the President’s Office Public in response to the bribery charge Information Officer Richard Clark against Lyon in Honolulu federal said, “The claim against Lyon was court.

Photo by Wayne Chargualaf mbj pursued, where it remains an ac- tive and ongoing case.” The U.S. federal bribery charge FOR ADVERTISING that Lyon pled guilty to in late AND SPACE RESERVATION January included bribery of two (671) 649-0883 high-level FSM officials between email: 2006 and 2016 so Lyon could gain Homeless people have been hiding in the Park caves and are said to harass tourists. [email protected] $7.8 million in U.S.-funded engi- neering contracts in the FSM. BY WAYNE CHARGUALAF Journal staff

Homeless people have been hiding in the caves at Latte Stone Park in Hagåtña and harassing tourists, often jumping out to scare them, according to Speaker Tina Muña-Barnes Muña-Barnes. Those inci- dents are of particular concern to Muña-Barnes, who helps clean the caves with a group of volunteers every year and has also spent much of her career working on the home- less issue. “It’s incumbent upon us as a gov- ernment that provides for the basic services of health, safety and the general welfare of our community to step up to the plate and report those bad incidents that are happening to our tourists,” she said. “We have to be proactive and continue to volun- teer and work with our non-profit organizations and other agencies to help those who need services, even including those that don’t want help. We need to find a way to turn them around and help them be- come contributing members of the community.” Muña-Barnes said the incidents were reported to the Department of Parks and Recreation, under whose purview Latte Stone Park falls. A representative from DPR was un- able to provide a comment as of press time. Homeless people harassing tour- ists in Latte Stone Park is just part of a larger issue of how the home- lessness issue on Guam clashes with the tourism industry’s mission to protect and promote the Guam brand as a family-friendly island

SEE PROBLEM ON PAGE 12 8 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal Editorial Opinion The responsibility Defining education and effective business application of government BY THOMAS D. SHARTS academic valuable for effectively operating learning, along any business because expert Guam’s Gov. Lourdes Leon with amassing knowledge is needed in relation Guerrero acted quickly on Feb. 14 to Being educated often is mistakenly general to a vast number of vital areas dispel rumors and deliver a message believed to be primarily defined knowledge in such as product design, customer to the residents of Guma Trankilidat within the parameter of holding any other courses service communications; marketing, — manamko, or senior citizens, who specific college degree; however, the that support hiring and supervising employees, live at the Tumon Section 8 property truth is actually far broader than this a specific performing a given job-related task managed by the Guam Housing and limited definition. Let’s examine how academic inventory assessment, etc. Urban Renewal Authority. being “educated” is most accurately major area of Secondly, being educated means “We’re not going to sell it; we’re defined and how that applies to knowledge. having the ability to be a creative not going to lease it,” she said at the effectively operating a business. However, an Sharts thinker — which can be realized press conference, after meeting and Firstly, in many cases, holding individual can with or without a college degree. speaking directly with residents. a college degree underscores the hold expert In truth, it might be one’s ability to Any changes, she said at the press relevance of what a person may knowledge without possessing implement creative thinking toward conference, would be to improve the have legitimately learned from a a college degree as a result of a number of business challenges situation of residents. knowledge standpoint and that an apprenticeship relationship (as cited above) that will determine Indeed, to any elderly or aged and certainly is pertinent for operating a with an expert, or by being self- whether a business develops, infirm person who is settled in a business in an effective manner. In taught. Moreover, he/she can maintains, evolves or closes. property where neighbors, staff and most cases, a college degree holder also hold general knowledge as a Thirdly, another way to correctly surroundings are familiar, the worst has been specifically trained as result of diverse life experiences. define what being educated means thing you can do is raise the specter an expert knowledge holder by Nevertheless then, one aspect of is incorporating the ability to think that their home and the ground on accruing information in courses being educated is defined as holding which it sits will be taken from them. with an identified major area of expert knowledge, and that fact is SEE DEFINING ON PAGE 10 General manager of GHURA Ray Topasna clarified on Feb. 14 that leasing the property would only occur as part of a step process of approval To “gig” or not to “gig” — that is the question. that involved the GHURA board, the Guam legislature and the governor. Topasna’s idea that Guma BY VINCE C. CAMACHO and services, workers have the status of employ- Trankilidat be leased to raise funds for instance, ees or independent contractors. The to benefit GHURA is a businesslike operators of va- issue of employee classification is approach, but one that met the barriers cation rentals. critical because the classification A “gig” is a job that lasts a certain of local cultural and moral acceptance. The companies determines the rights and bene- period or lasts long as the company Guam’s agencies that deal with advertise for fits of workers under the United has a specific need. Most of us asso- land have not always historically been the products States and Guam employment law. ciate a gig with musicians. Many of the best stewards of property. and services Workers deemed employees trig- us sought out a “job” that provides Nevertheless, it is the responsibility and link the ger rights such as minimum wage, income, benefits and in most cases of government to look at the best and consumers protection from discrimination, a secured future. Today, more and most efficient use of all its inventory with the sellers. workers’ compensation, etc. more workers are looking for gigs Camacho of properties. For GHURA’s 3,900 The gig Current law classifies workers rather than to work full time. Gig waiting list, Leon Guerrero said economy as an employee or an independent workers engage in freelancing, con- aside from federal grants and VA benefits all. contractor by applying some mul- tract work, consulting, temporary opportunities, the unused public Giggers benefit by maintaining ti-factored tests that depend on assignments or on-call work each property has potential. “We can look control of their work environment. the facts of the relationship. The week for income, opportunity and at an opportunity zone for developers Consumers benefit from the acces- “control” test focuses on a princi- satisfaction. to come in, develop it, finance it and sibility of services that fit into their pal’s right to control the worker. The “gig economy” can help im- lease it out.” busy lifestyles. Employers benefit Courts focus on the following fac- prove work-life balance. More and It is hard to make the same cultural because they have a more flexible tors to determine the status of a more workers are determined to and moral case as was made Feb. workforce. Companies can save re- worker, whether the employer may control where, when and how they 14 for properties such as the John sources in terms of benefits, office direct how the work is performed, work. Today there are two groups of F. Kennedy High School on Marine space and training. determine the hours involved “giggers.” The first group of workers Corps Drive. Are there any legal issues em- and provide the employee with generally provide personal services That land has was also subject to ployers should consider before direction. Alternatively, factors like driving, caregiving, personal community discussion on best use diving further into the gig econ- that lean more towards the inde- training and handyman services. of its property for a cash-strapped omy? The reality is that the legal pendent contractor classification Companies advertise for these ser- government and whether the site status and right of giggers have be- include, high-skilled work, workers vices and link the workers with the is appropriate, but past emotional come the subject of litigation. The consumers. The second group of arguments prevailed. crucial question is whether the gig SEE GIG ON PAGE 13 workers generally provide goods Moving forward, as the governor said at the press conference, it is appropriate “to look at all the properties we have in our island; those properties that are not being used let’s take [them] and put them into use.” While she was talking in relation to GHURA, it is certainly time to review past decisions on all land use and make better ones. mbj Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 9 Commentary

Quotable “It is our anticipation to be able to take a lot of the overhead systems in Garapan — and this is a direction, I haven’t gotten any approval on yet, but it is a direction we’re moving in — to try to put the overhead system [in that area] underground. It is a discussion we’re having and we’re preparing a package to do so. ... What we plan on doing inevitably is having a large transformer in certain areas and tie underground theatres out to the residents. ... As we always say, water, waste water is life sustaining and power is economy building.”

— Gary Camacho, executive director of the Commonwealth Utilities Commission at the Saipan Chamber of Commerce general membership meeting on Feb. 6 at the Kanoa Resort Seaside Hall. The underground system is just one of various long-term recovery plans for Saipan power and water utilities he updated members on.

chairman of the board for the Guam it does on Guam? What are the Q: Why did you choose Guam as Visitors Bureau, as well as chairman pros and cons? your next locale after spending the of the Japan Marketing Committee for beginning of your career mainly in GVB and vice chairman of the board A: Hospitality is generally the Hawaii? Q & A for the County of Hawaii Commissioner same worldwide. We welcome for Kailua-Kona Village Design guests who expect a safe, friend- A: I was looking for a challenge Commission. He is a member of the ly and comfortable place to stay, in a new market but wanted to stay Guam Hotel & Restaurant Association whether for business or vacation. close to Asia. Guam was the perfect Editor’s and the Guam Chamber of Commerce Japanese hospitality tends to be fit and has become my home. note: Milton K. and is a member of the Guam FBI more formal, with a philosophy Morinaga is Citizen’s Academy Alumni Association sometimes described as omotenashi Q: With an absolute reliance on vice president, as well as an Honorary Deputy Chief — loosely translated as to serve tourism, what has been the most director and of Police. from the bottom of your heart; to important aspect of keeping your managing Morinaga holds a 1979 bachelor’s in offer the best service you possibly businesses profitable as tourism director of P.H. R. sociology from the University of Hawaii can, with no expectation of a re- ebbs and flows? Ken Micronesia at Manoa and is a designated Certified ward; and to anticipate the needs of Inc., a position Hotel Administrator by the American your guests. A: Being innovative and creative he has held since Hotel & Lodging Educational Institute Guam hospitality tends to be less with our hospitality is absolutely 2007. as of 1981. He is also a licensed realtor formal, perhaps more relaxed and crucial. We must give unique and Morinaga Morinaga in Hawaii. laid back. I think omotenashi can memorable experiences to first time has worked in also describe Guam too. We are still visitors and give different experienc- hospitality since Q: You’ve known that you want- dedicated to the customer with all es to those that have come back for a 1974, when ed to be in hospitality your whole that we are … just in a different way. second look. he served as acting general manager life — what is it about the industry for Kobayashi Travel Service Ltd. in that originally attracted you, and Q: You experienced and stayed Q: How have you balanced vari- Honolulu. He also served as assistant what is it now that still drives you? with a project as it went through a ous international/corporate chains hotel manager at the Imperial Hawaii company acquisition. Tell us about and demands with the impor- Hotel, assistant front office manager A: I’ve always been taught to en- experiencing an acquisition, and tance to the culture of remaining at Hawaiian Monarch Hotel and night sure that when a guest comes to what do you recommend to those local in employment, design and manager/assistant manager at Hyatt your home, you should make the who are or may experience one to manufacturing? Regency, all in Waikikki. He then served visit as comfortable and enjoyable be successful? as rooms division manager at the Hyatt as possible. In the beginning, hospi- A: Each chain has its own brand Regency in Saipan before working tality was just a job, but as I gained A: The company should be as standards that make each hotel as senior executive manager/director, more experience in the field, I met transparent to employees as is pos- look and feel like others of its brand general manager/executive director new people from different countries sible; share information as early around the world. It is truly the staff and general manager and executive and cultures and welcomed a differ- as possible too. No doubt, the em- that make the property unique to officer and director for Southern Pacific ent challenge every day of the week. ployees will be worried about their Guam. For example, our hotels work Hawaii Corp. in Waikoloa. He served I have personally found no other livelihoods. very hard to maintain the Hyatt, as the hospitality project construction industry where I can lead and work My experience with the company Hilton and Sheraton Global Brand manager for WB Kukio Resorts LLC in with a vibrant group of people to col- acquisition, thankfully, went fairly Standards, but work just as hard to Hawaii and as owner representative/ lectively ensure that — while people smooth as I was made aware at all ensure our guests experience the executive officer and director for are visiting our home — that their times and all parties involved were best of Guam’s Hafa Adai Spirit. Marianas Hospitality Corp. and visit is as comfortable and enjoyable duly diligent. International trading network. as possible. This is what brings me My recommendation for anyone Q: You previously noted being He is vice chairman of the Guam to work every day. who may experience a company ac- an FBI Citizens Academy Program Economic Advisory and sits on the quisition is to embrace the process; alumni and Honorary Guam Governor’s Council of Economic Q: How does the hospitality stay focused and communicate with SEE ON PAGE 13 Advisors. He previously served as industry in Japan differ than your employer. Q&A 10 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal

DEFINING Investment executive to fly in for conference CONTINUED FROM PAGE 8 BY MAUREEN N. MARATITA John joined Fidelity’s Council of Mumbai in India and a 1984 master’s Journal staff Advisors in November, according of business administration from critically with knowledge already to Journal files. The council meets Cornell University’s S.C. Johnson held or as disseminated from other twice a year. Graduate School of Management in sources in order to effectively operate Regional attendees at the 2019 Headquartered in Boston, Mass., Ithaca, New York. a business. A key aspect of critical ASC Trust Raymond James Annual Fidelity Clearing is responsible for Fidelity Investments does thinking relates to those essential 401(k) and Investment Conference Fidelity’s more than $2.1 trillion business worldwide and offers a facts associated with managing can expect to hear the president of custody and clearing business variety of financial service products. business success, such as current of Fidelity Clearing & Custody and services more than 3,800 ASC manages about $700 analysis of facts, analyzing the Solutions at Fidelity Investments clients in banking, broker-dealing, million in retirement assets for projection of trends, understanding share the latest thinking and trends insurance, and investment and 30,000 participants and 500 the interrelationships of defined in wealth management in his advisory services. retirement plans in the Micronesia divisions of labor, developing keynote presentation. Mirchandani has held various region and beyond and began doing visions for the future of realizing Sanjiv Mirchandani, who has positions in the Fidelity Investments business in 1990. profitability, etc. been president of Fidelity Clearing & group since he joined it in 1994. The Asia Pacific Group of Fourth, being educated means that Custody since 2015, is flying to Guam Prior appointments include those at Raymond James began doing an individual has the ability to apply to speak at the March 7 conference American Express and Citi. business in Guam and the Pacific knowledge held or disseminated at the Hyatt Regency Guam at the He holds a 1982 bachelor’s of in 2015. Its lead executives have knowledge in order to identify invitation of David J. John, president commerce from Sydenham College problems and develop solutions of ASC Trust LLC. of Economics and Commerce in SEE INVESTMENT ON PAGE 15 with that knowledge. Likewise, he/ she has the ability to do this on a consistent basis in relation to any areas that can be problematic for a business such as marketing; employee productivity or relations; warehousing, distribution and/ or shipping; new product design; improving customer services; etc. Fifth, social intelligence also is a significant part of the definition of being educated and elicits forth many effective outcomes associated with operating a profitable business. Specifically, having the ability to relate to diverse cultures and ethnic groups, along with comprehending the nuances and norms of vis-à- vis social interactions applicable to employee/managerial relations, customer services, developing tailored products for specific social groups, comprehending social trends, etc. Sixth, being educated also means having the ability to organize and prioritize information or tasks and doing this on a steady basis to accurately communicate what needs to be done in order to manage and grow the business, along with having the capability to teach others whatever applicable knowledge needs to be apprehended at any given point in time. For any business to develop, maintain and evolve, it certainly needs educated persons to be a part of its division of labor. However, in the final analysis, being educated is primarily defined by how expert knowledge held or disseminated is energized into something behaviorally profitable that produces effective results. Yet in truth, that sometimes has nothing to do with holding a college degree because effective results can certainly be realized by those without college degrees or those who are college degree holders. mbj

—Thomas D. Sharts is a professor of sociology at Northern Marianas College. He may be reached at [email protected]. Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 11 Project director returns to growing munitions industry on Guam Legislative BY WAYNE CHARGUALAF U.S. Navy surface This move Review Journal staff warfare, would send eventually Thompson to moving to the Guam again, Introduced in the 35th Guam A long career in both military Civil Engineering this time with Legislature and civilian engineering brought Corps. Among the Guam office Robert T. Thompson to Guam and his assignments of Hawaii-based Bill No. 21-35 by Sen. Telo T. Taitague would eventually bring him back. in this field was construction Prohibits senators from receiving “My time with my previous resident officer firm DCK. After retirement benefits from the gov- employer was coming to an end and in charge for the Sep. 11, 2001, ernment of Guam in excess of what I had come from Guam, so I had kept 36th Engineering Thompson’s is already indicated in Guam law. Thompson Harper in touch with what was going on,” Squadron at reserve unit was Thompson said. “I knew there was a Andersen Air mobilized. After Bill No. 22-35 by Sen. James C. lot of work on the horizon for Guam Force Base, the first assignment his mobilization, Thompson took Moylan and I thought it would be a good which would bring him to Guam in on the role as regional engineer Amends a previous law that only time to come back.” 1992. His subsequent assignment for Commander Naval Forces granted legal protections to elec- A project director with would take him to San Diego, after Marianas, where he stood up a tronic signage. The bill includes Guam-based firm International which he transferred from active construction office to support a static signage developments that Consolidated19-FHB-BusinessChecking_Jan-Feb_MBJ_7.5"X10"FC.pdf Contracting LLC, duty to the 1 Navy 1/19/19 Reserve 10:48 andAM entered were granted a variance or no- Thompson began his career with the civilian construction industry. SEE PROJECT ON PAGE 15 tice of action by the Guam Land Use Commission on or before May 15, 2017.

Bill No. 29-35 by Senators James C. Moylan, Jose “Pedo” Terlaje, Joe S. San Agustin and William M. Castro Authorizes the Mayors’ Council of Guam to come up with rules and regulations for games of chance at the Guam Island Fair, Carnival and other fairs and ac- tivities on the island.

Bill No. 30-35 by Speaker Tina Rose Muña Barnes Requires any company looking to provide healthcare insurance to the to also have contracts for private hospitals to pro- vide services to their subscribers.

Bill No. 31-35 by Sen. James C. Moylan Establishes a permanent, one-stop business license and permit center operated by the Guam Department of Revenue and Taxation.

Bill No. 32-35 by Senators Clynton E. Ridgell, Tina Rose Muña Barnes, Joe S. San Agustin, Régine Biscoe Lee, Telo T. Taitague and Jose “Pedo” Terlaje Declassifies marijuana as a Schedule I controlled substances and allows the use, production, sale and taxation of marijuana.

Bill No. 34-35 by Sen. Clynton E. Ridgell Amends the law to allow Guam res- idents of at least one year to fit the criteria of at least 51% ownership of a licensed marijuana business. The bill also exempts this this require- ment to applicants for a cannabis testing laboratory.

Bill No. 37-35 by Senators Telo T. Taitague, Clynton E. Ridgell and Tina Rose Muña Barnes Establishes a new residential rate schedule for condominiums, apartments and other residential multifamily accommodations. mbj 12 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal

LAG Top 5 outstanding balances for GovGuam agencies’ utility bills PROBLEM CONTINUED FROM PAGE 1 CONTINUED FROM PAGE 7 Power Water three agencies are behind in pay- Department of Education: $3.4 million Department of Parks and Recreation: paradise for vacationers. ments as of Jan. 14: the Guam $1.06 million Guam Visitors Bureau outgo- Department of Education exceed- Guam Waterworks Authority: $876,247 Guam International Airport Authority: ing president and CEO Nathan P. ed 60 days past its deadline while $349,263 Denight said that although GVB the Guam Department of Mental Guam International Airport Authority: Department of Education: $343,055 doesn’t have statistics or studies on Health and Substance Abuse and $537,455 the effects of the homeless popula- tion on the tourism industry, it has the net-metered accounts of Guam Department of Public Works: $529,126 Port Authority of Guam: $189,010 Memorial Hospital exceeded 30 days. been attempting to mitigate any ef- : $376,749 Department of Public Health & Social Guam DOE has the highest fects on the industry with the Visitor Services: $110,529 receivables of almost $3.4 million. Safety Officer program. Source: Guam Power Authority as of Jan. 14, Guam Waterworks Authority as of Dec. 31 Next in line is GWA with $876,247.86 Funded by Tourist Attraction Funds, the VSO program was and the Guam International Airport launched in 2014 to augment the Authority with $300,256.51. ment deadline by more than 120 by between 30 and 120 days. Guam Police Department presence Overall, the government of days: GIAA, GPA, the Guam Housing Parks and Recreations current- in Tumon. VSOs are easily identified Guam has accrued receivables of and Urban Renewal Authority, the ly has the highest outstanding by their bright yellow uniform shirts approximately $6.93 million. Partial Department of Parks and Recreation, amount on its water bill, amounting and provide both security and con- payments can be made to meet a bill the Department of Public Health to $1.06 million, followed by GIAA cierge services to the public. deadline upon agreement with GPA, and Social Services, the Mayors’ with $349,263 and the Department Denight said VSOs have removed so it’s common for agencies to have Council of Guam, the Department of of Education with $343,055. several homeless camps in Tumon remaining balances. Public Works, the Guam Economic Government agencies overall have and have also helped homeless in- GWA did not provide a response Development Authority and the accrued receivables of approximate- dividuals reenter the workforce. He to inquiries as of press time, but its Department of Youth Affairs. Ten ly $2.29 million. mbj said GVB had plans to expand the report as of Dec. 31 indicated nine other agencies missed their deadline VSO plan into Hagåtña but no fund- agencies exceeded their bill pay- ing was provided. “VSOs have gone out of their way to try to get many homeless SPOILS August 2017 award to the Granite- September 2019, as well as a num- individuals back into the workforce and help improve their quality of CONTINUED FROM PAGE 1 Obayashi joint venture for design ber of architectural and engineering and construction of utilities for IDIQ contracts expiring between life. However, some these individu- date of the request for proposals the cantonment; and a September July 2020 and September 2021, var- als fall back into addictions and bad habits,” Denight said. “We’ve encour- and relevant site visit information 2018 $80.23 million award for a ying between $10 million and $20 aged business establishments to is also given. maintenance facility and hanger at million per award. refuse the sale of alcohol to known Awards in support of the mili- to Black. Other facility support contracts in- individuals that are homeless.” tary buildup that have already been Other awards include indefi- clude galley services, solid waste and Denight said that GVB is work- awarded include the $78 million nite quantity, indefinite delivery pavement clearances and safety ser- ing with partner agencies such as Andersen Air Force Base Live Fire contracts, such as the $90 million vices, expiring between September DPR and the Department of Public Training Range Complex contract to airfield paving contract awarded 2019 and September 2022. Health and Social Services to ad- Black Construction Corp. in August August 2018 to Hawaiian Rock Adding to the region’s attraction dress the issue and identify services 2017; the $44 million Rte. 3 widen- Products Corp.; a joint base-wide is the prospect of federally-funded that can help the homeless. ing project leading to the Marine $75 million paving contract award- recovery projects for the Northern The 2018 Point-In-Time Count — cantonment in Finegayan — also ed to Granite Construction Co. in Mariana Islands post-Super an annual count of the number of awarded to Black; a $164.89 million September 2014 — due to expire in Typhoon Yutu. mbj homeless people on Guam — found 854 people are without a home, in- UPCOMING AND RECENT MILITARY OPPORTUNITIES cluding children. The PIT Count is Estimated amount conducted by the Guam Housing Contract Status in $ millions and Urban Renewal Authority and Guam Homeless Coalition in MACC CONTRACTS partnership with other agencies, or- Guam DB MACC $990 Cancelled in 2016; re-solicited; selection proceeding from Phase I ganizations and donors. Although to Phase II from 1/19 GHURA is mandated by the United Small Business MACC $240 5 awards 7/18 for 5 years States Department of Housing and HubZone DB MACC $245 7 awards; expires 9/20; RFP pending Urban Development to conduct a PIT Count every odd year to contin- 8(a) MACC $75 11 awards; expires 8/20; bids due 2/12/19 ue receiving funding, GHURA and SDVOSB/Veteran MACC $30 5 awards; expires 7/21 GHC continue to conduct the PIT SUPPORT AND MAINTENANCE CONTRACTS Count annually to better understand homelessness trends on the island. JRM BOS Contract $495 Pending RFP, under bridge contract to 2/19; pending next one Based on her years of experience year bridge contract working on the homeless issue on JRM Housing Maintenance $131 Pending award; under bridge contract to 4/19 Guam, Muña-Barnes said there is no MILITARY CONSTRUCTION one cause of homelessness on the FISCAL 2019 FUNDS island. There are issues of addiction, Family housing AAFB $100 to $250 RFP due 3/19+/-; responses due 5/19; includes fiscal 2018 and mental health, education, abuse, fiscal 2017 finding family disconnect — everyone has their own story and their own com- Enlisted housing AAFB $25 to $50 RFP due 2/20+/- bination of factors that led to them AAFB ACE gym and dining facility $27.9* becoming homeless and it is the Earth covered magazines $52.3* government’s responsibility provide them with assistance. Ordnance operations $22* “It is the government of Guam’s Machine gun range $141.28* basic responsibility to provide for *Requested appropriation the basic services of health, edu- MAMIZU JAPAN FUNDING cation and safety to every resident who lives here on the island on Training area AAFB $149 Awarded to Core Tech/Hawaiian Dredging Construction Co./ Guam,” she said. Kajima Corp. 1/19 mbj Sources: Naval Facilities Engineering Command Pacific, Naval Facilities Engineering Command Marianas, U.S. Department of Defense, Marianas Business Journal Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 13 Cable corporation GIG for any benefit plans offered by the Q&A CONTINUED FROM PAGE 8 company. CONTINUED FROM PAGE 9 gets innovation Companies should also pay providing their own equipment, contractors on a lump sum pro- Deputy Chief of Police of two of award workers setting their own sched- ject-based basis from which the your greatest accomplishments. ules and workers getting paid per contractors pay their own expenses. Why do you belief these to be so project, not per hour. The “eco- This pay policy reduces incidents important? BY BERNADETTE H. CARRION nomic realities” test determines of control and increases economic Palau Correspondent whether the worker is involved in independence. Companies should A: I am proud to serve these two entrepreneurial activity or whether also eliminate or loosen restrictions agencies, which help to keep the the worker is financially dependent on the contractors having their citizens and visitors of Guam safe. own employees or subcontractors. KOROR, Palau — The Pacific upon the employer. The label put Law enforcement is key to positive on the relationship is a factor in For example, some companies put change and benefits everyone. Telecommunications Council restrictions on how a contractor on Jan. 22 recognized Belau the final classification, but it is not dispositive. can hire or manage the contrac- Q: As the former chairman of Submarine Cable Corp. with the tor’s employees or subcontractors. Innovation Award for Best Quality So what are companies to do? the board for the Guam Visitors Until such time that the laws pro- Having these restrictions is indic- Bureau, what do you believe the of Life Improvement. ative of “control,” which could be The conference held in vide for specific factors, companies Guam tourism industry has in should take a common-sense ap- evidence of an employer-employee store, and what do you recom- Honolulu, Hawaii brings together relationship instead of an inde- all the major telecommunications proach, improve independent mend to businesses to prepare for contractor agreements, revisit how pendent contractor arrangement. the next four years? carriers and suppliers from around Alternatively, companies may only the world. PTC initiated Innovation contractors are paid and review benefit plans. work with contractors that are A: Guam has so much poten- Awards to highlight achievements incorporated and have multiple cli- in a range of different aspects of Companies should identify cur- tial that has yet to be uncovered. rent contractors and determine if ents. If a contractor is incorporated However, the island needs to contin- the telecommunications business and has multiple clients, these facts and in related education and they are appropriately classified. ually invest in its product and plant. For smaller companies, this pro- are indicative of a contractor being We should never take for granted research arenas. independent from the employer — BSCC is a state-owned cess can be relatively easy, but for that tourists will keep coming to those companies with multiple so, a policy that a company should Guam — we need to stay ahead of enterprise that owns the cable and only hire contractors that are incor- wholesales its broadband capacity. divisions and departments, it is our competition. Our main markets crucial to identify who these con- porated or have multiple clients can — the tourists from Japan, Korea, On Dec. 7, 2017, Palau’s indicate an independent contractor business and social environment tractors are and then ask why these China, etc. — have so many choices workers are treated as contractors arrangement rather than an em- of different destinations. Many are changed after the island nation ployer-employee relationship. officially connected via fiber optic. and not employees. Next, assess closer and cheaper than Guam. the work the contractors are per- Finally, companies should re- Keeping the island safe, the envi- The fiber optic technology view their benefit plans to ensure provides for five 100 gigabits per forming and review how the work ronment clean and welcoming our relates to the business. If need be, that the plans clearly define the tourists, are areas where we should second wavelengths to Guam, workers that are entitled to ben- more than 1,000 times the capacity reclassify workers accordingly and continue to focus. communicate the reasons and ben- efits and defer to the company’s available in Palau prior to the classification of a worker for ben- connectivity. efits effectively. Q: Is there anything about your Companies should review their efits purposes. company or work we didn’t ask The connectivity also provided As the gig economy continues customers with lower internet current contracts and update them about that you feel would interest as needed. Contracts should in- to grow, companies should take the the business community? service price and much better time to mitigate risks by correctly quality. clude at a minimum, the parties’ expectations of a contractor (not classifying workers and keeping A: Ken Corp. is proud to invest in Before the fiber optic, Palau had up to date with the Department been relying entirely on satellite employment) relationship, confirm the island of Guam. Every day, we the specialized skills offered by the of Labor’s guidance on classifying strive to make our community a bet- links for internet connectivity. The workers. mbj high cost and limited bandwidth contractor and that the contractor ter place to live and visit. We vow will bear their own expenses and to continue our efforts to develop restrict internet penetration. In — Vince C. Camacho is the vice president Palau, the internet is accessed by make clear the limited control over and promote safe, comfortable and the contractor if any at all. The con- of Legislative Affairs for the Society for Human enjoyable environment for foreign only 25% of the population, while Resource Management, Guam Chapter, and the 90% have access to mobile phones. tractor should also acknowledge visitors and island residents alike. that the contractor is not eligible Managing Principal for the law firm Camacho Calvo For the businesses that we’ve estab- The Palau fiber optic cable is Law Group. funded with a $25 million loan lished here … it’s our home too. mbj agreement through the Asian Development Bank’s North Pacific Regional Connectivity Investment Project signed in March 2016. For the PTC award, BSCC Director Keobel Sakuma in his acceptance speech paid tribute to the efforts of the team responsible for Palau’s new link to the world at large. “The high-quality network we have deployed could not have been delivered months ahead of schedule and significantly under budget without the support of our highly capable main suppliers: NEC of Japan for the network, Flexenclosure of Sweden for the modular cable landing station and Surangel and Sons Construction of Palau for the civil works. Project

SEE CABLE ON PAGE 17 14 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 15 PROJECT to dig a hole you dug a hole. As I was Contractor aims for regional contracts CONTINUED FROM PAGE 11 talking to Don about coming back he mentioned that a big portion of the and local partners, labor force joint special operations task force business was MEC clearance.” MEC clearance became a concern that was fighting terrorist activity the project was due to the military buildup since a BY MAUREEN N. MARATITA in the southern Philippines. not among the lot of construction would take place Journal staff After a subsequent stint as chief group’s four or in areas that had been undisturbed engineer for the Naval Facilities A new presence in the construc- five core compe- for decades. Engineering Command in tion market is looking to Guam and tencies, it would “Prior to [the buildup], most of Bangkok, Thompson retired from the region to be part of its increase partner, he said. our work was in pre-disturbed areas the Navy Reserve in 2010. in work. Leichtweis where somebody else had dug or “They liked me so much they Christopher P. Leichtweis, presi- said feder- somebody else had built, so there hired me as a civilian to do the same dent and CEO of North Wind Group, al contracting wasn’t a lot of concern,” Harper said. job as when I was on active duty,” told the Journal, “We’re on a ma- comprises about “Guam, of course, was hit with a lot Leichtweis Thompson said. “I did that for a year jor growth initiative.” Referencing 95% of group of bombs during the war, so they then I ran into one of my old bosses the group’s $400 million in annual work or about put in place what they called the who was running a commercial revenue, he said, “We’ve been very $375 million a year. Such work ESS which was a full work plan for development in the Philippines successful in delivering.” includes a $300 million contract MEC. For the safety of everybody on and he gave me one of those offers I Leichtweis and other executives with the Department of Energy in the island, wherever there was raw couldn’t refuse.” met with the paper on Feb. 7, be- Moab in Utah for a uranium mill jungle they wanted to make sure That job took him back to the fore the official opening of Silver tailing project, moving contami- they implemented all the safety Philippines until May 2018 when Mountain Construction LLC — one nated soil resulting from uranium measures they could.” he took a job with ICC, the owner of of 11 subsidiaries of the group (see ore processing. Although ICC has plenty of which — Donald J. Harper — he had “Focus” on Page 21). “We touch about 40 different work on its plate thanks to the met during his time on Guam. Silver Mountain will be bid- agencies and sub agencies across the buildup, Harper isn’t concerned “That project [in the Philippines] ding on contracts in Guam and the U.S. and its territories,” Leichtweis for the future of his company after came to an end and I was looking for Northern Mariana Islands, includ- said. “One of our key business lines the buildup is complete and the the next thing, so I gave Don a call,” ing Multiple Award Construction is airport management, because of Marines finally arrive. he said. Contracts or MACCs, include the our BOS [base operating support] “MEC has only been around on ICC is a contractor that focuses 8(a) MACC and HubZone MACC (see work and experience.” North Guam for five or six years, but we’ve on civil and structural work that Front Page story), which offer a long Wind has worked on a variety of been a strong company long before includes underground utilities, term presence. projects for Department of Defense and we’ll stay a strong company,” demolition, earthwork and No project is too big or too small airports and also was involved in Harper said. “We’re a local company, structural work such as installing Leichtweis said. “We have a billion the 2011 redesign of the air traffic one hundred percent.” concrete foundations and slabs. dollar balance sheet. This is a very control tower at the A.B. Won Pat Thompson said he’s glad to The company has contracted with strong small business, with large International Airport, Guam and be helping contribute to the U.S. the military to assist on a number business qualifications — financ- military presence in the region. of projects in support of the ing and bonding and cash flow.” If SEE CONTRACTOR ON PAGE 17 military buildup. “When you think of things in the Although the company has bigger picture, what we’re doing for operated on Guam for more than the buildup really strikes a chord 30 years, a recent addition to its with me having spent the better part services is munitions and explosives of the last 10 years in other countries of concern — or MEC — clearance. in the Asia region, seeing the massive MEC is what’s commonly amount of influence previously held known in the military as UXO, or by the U.S. being chipped away in Bringing energy solutions to you! unexploded ordnance — bombs, big chunks by our competitors in shells and other munitions and the region,” he said. “It’s a bit scary explosives leftover from combat and I feel like what we’re doing or training that have not been here in Guam with the buildup detonated but retain the ability and what this company is doing is to do so. specifically contributing to trying to “When I was working on Guam hold that back. [Our competitors] are before, there was no such thing as not holding back so we need to be MEC,” Thompson said. “If you needed pushing ahead on this.” mbj JRN Air Conditioning The Light & Refrigeration, Inc.

Port Enterprises Snowflake Guam, Inc. Guam Co.

AIRLINE INVESTMENT Sundance Universal Collection Air Supply CONTINUED FROM PAGE 6 CONTINUED FROM PAGE 10 mechanisms online and otherwise decades of experience in investment, for FIT’s or freely independent financial planning and asset travelers to purchase tickets.” management. Eligible Appliances Tmetuchl said access to ASC and the Asia Pacific Group Central AC Ductless “Split” AC Window AC Washers Dryers destination is an important aspect of Raymond James have hosted the Amana ACC Air, AUX LG GE GE of tourism growth. annual invite-only event for clients Coleman Carrier, Chigo Midea Kenmore Kenmore Daikin AC Daikin AC TCL LG LG “We believe that there are three and other executives since 2015. Heil Friedrich, Fujitsu Maytag Maytag A’s which make up the integral Raymond James is the investment Lennox Goodman, GREE Samsung Samsung LG Hisense, LG Whirlpool Whirlpool components of an effective adviser to ASC and its clients, Maytag Midea, Mitsubishi tourist destination: attraction, according to Journal files. Pioneer, Samsung Sharp, Trane accommodation and, most The slate of speakers typically UTL International important, access — in this case air includes those from the U.S. access,” he said. mainland and Guam with significant guampowerauthority.com/gpa_authority/EnergySense/es-home.html For the last four years, the backgrounds in investment and fund www.facebook.com/GuamPowerAuthority gpa_juan_power tourism arrivals on Palau have management. The conference will Contact GPA Customer Service at 647-5787/8/9 been dominated by Chinese also offer networking opportunities tourists. mbj for the estimated 200 attendees. mbj 16 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 17

CONTRACTOR Silver Mountain Construction LLC through sole sourcing, because of CABLE CONTINUED FROM PAGE 15 began doing business in April 2012, their status. We receive about 10% CONTINUED FROM PAGE 13 and is 8(a) certified by the U.S. of our revenue though a sole source some fuel installation at Naval Base Small Business Administration. The — we compete and win 90% of our management and engineering Guam. “Guam is not necessarily Hawaii office opened in 2018. work, whereas most ANCs are the oversight were provided brand new to us,” Leichtweis said. It will join a number of Native inverse of that.” The goal of the by McCann Consulting In addition, the company is aware Alaskan companies that have se- program was in fact to wean and de- International of Australia. Debt of opportunities post-Typhoon Yutu, cured federal contracts on Guam velop companies off of the set sides, finance was through the Asian and is looking to support federal through sole sourcing and their he said to be competitive. Development Bank. Support work in Saipan. small business status. Doyon A. Morato is Silver of the Republic of Palau A Guam labor shortage is a re- Jeffrey Clark, business develop- Mountain’s general manager. Locally government, the Ngeremlengui ality, due to the U.S. government’s ment manager for Alaska and the appointed, one of her tasks is ensur- state government and the recent ruling barring H-2B workers Pacific Rim for North Wind said, ing that the construction company whole Palau community was from the Philippines and an ongoing Guam was similar in terms of logis- fields a local presence among the critical to the success of the lack of visas for Guam, though labor tics to Alaska and Hawaii. Plus, he civic organizations and gives back to project.” for projects on-base — or viewed as said, “The cultures are similar … the the community. The PTC Innovation Awards related is receiving approval. people and the sense of community As to good corporate citizen- recognize the individuals “There’s a labor pool shortage are very similar.” ship, Leichtweis said, “It’s all part and companies transforming across all of the United States, so this However, Leichtweis said, “We of our long-term strategy We have a the information and is something we’re very much used don’t chase our ANC friends; in fact budget. It has to get stretched across communication technologies to,” Leichtweis said. we’re very different from them. A 35 locations.” North Wind commu- industry and the markets PTC He said Silver Mountain can look lot of the ANCs typically do not win nity support, he said is “every year, serves. mbj to its parent company of about 1,400 contracts through competition; it’s all the time.” mbj employees for support. “There’s all kinds of reach back. We have 35 of- fices across the United States,” he said, referencing Hawaii regional- ly and Seattle and Sacramento. “So there’s a number of West Coast offic- es providing resources and oversight and labor if we need it,” he said. Key leadership that comes in would be transferring their knowledge of sys- tems and processes, Leichtweis said. Silver Mountain also aims to source employees and expertise on Guam, he said. “We intend to hire local and key specialty subcontractors as well, partnering with them.” The group specializes in projects in remote lo- cations, Leichtweis said, citing its work in Alaska and the South West United States. Bringing in labor from the U.S. mainland would be expensive, he conceded. As to how North Wind would cover that expense on a fixed price contract, he said, “It’s all about contingency; we have a little bit of overage on a bid, but that’s a slippery slope where you have to be com- petitive as well, so you can’t put too much in there, because there may be some things that just come out of nowhere and you have to cover that.” One of the differences between North Wind and other compa- nies is its employee offerings, Leichtweis said. “Because of our Alaskan Native Corporation ownership, we can enjoy some wonderful federal employee benefits that most contractors do not have,” he said. The group staff retention rate is about 95%, he said. Long term and lasting benefits for staff include skills development. Leichtweis said that ongoing contract protests such as Guam sees are the downside of the federal con- struction industry. “That’s our world; unfortunately it is common.” North Wind has protested twice only in its history. The tendency to protest inevitably causes delays, he said. “It paralyzes progress.” Headquartered in Palmer, Ala., 18 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal

Bankruptcies Debtor’s petitions filed in the U.S. District Court of Guam

Chapter 7 — Debtor turns over all $47,172.74. Total assets: $24,712.25. #19-00020 – Flores, Melissa Marie #19-00015 – Zamora, Debra nonexempt property to a trustee, who (Filed Feb. 1) Ulloa, 280 Chalan Kanton Ladera, Manibusan, 137 As Manibusan pays creditors. Debtor is discharged of Santa Rita, GU 96915. Priority: Road, Pulantat Yona, GU 96915. all debts. #19-00014 – Bibares, Ma. Ester $8,975. Secured: $29,819.96. Priority: $0; Secured: $41,860.93; Briones and Bibares, Ricardo Unsecured: 59,757.58. Total assets: Unsecured: $28,129.80. Total as- #19-00011 – Zip Guam Inc., 1270 Bismonte, 123-1 Kahit St., Mangilao, $26,317. (Filed Feb. 9) sets: $221,712.12. (Filed Feb. 9) N. Marine Corps Dr., # PMB 189, GU 96931. Priority: $0; Secured: $0; Tamuning, GU 96913-4331. Priority: Unsecured: $0. Total assets: $6,303. #19-00021 – Miller, Aprodita #19-00016 – Masnayon, Marie $0; Secured: $0; Unsecured: $100,000. (Filed Feb. 1) Jeresano, 142 N St., Piga Subdivision, Michelle Polk, 142C Niyok St., Total assets: $0. (Filed Jan. 23) Machanao, , GU 96929. Agana Heights, GU 96932. Priority: #19-00017 – Rapolla, Jonathan Priority: $0; Secured: $0; Unsecured: $0; Secured: $0; Unsecured: #19-00012 – Concepcion, Joaquin Camacho and Rapolla, $33,297.90. Total assets: $4,401.97. $76,045.14. Total assets: Enrique Perez, 360 Pale Duenas Theresa Ann Burlaza, 245C (Filed Feb. 9) 100,504.13. (Filed Feb. 9) St., Agat, GU 96928. Priority: $0; Westbrook St., Barrigada, GU 96921. Secured: $28,563.41; Unsecured: Priority: $0; Secured: $12,000; #19-00022 – Gatbonton, Brigida #19-00019 – Urbano, Larry Gabon $26,192.71. Total assets: $3,601. Unsecured: $56,242.44. Total as- Cabanilla, 342 Mabini St., NCS and Urbano, Jessica San Nicolas, (Filed Jan. 31) sets: 28,711.73. (Filed Feb. 9) Dededo, GU 96929. Priority: $0; 343 Nevermind Road, Dededo, Secured: $0; Unsecured: $17,459.85. GU 96929. Priority: $700; Secured: #19-00013 – Sianoya, Dolores #19-00018 – Reyes, Maricar Catunao, Total assets: $3,604.33. (Filed Feb. 9) $3,140; Unsecured: $97,534. Total Delaprovidencia and Sianoya, 177 Mall St. Pacific Towers B306, assets: $62,935. (Filed Feb. 9) Paterno Servana, 720 Battulo Tamuning, GU, 96913. Priority: $0; Chapter 13 — Debtor is allowed to St., Dededo, GU 96929. Priority: Secured: $0; Unsecured: $13,296.80. keep property and pay debts over $0; Secured: $0; Unsecured: Total assets: $3,470. (Filed Feb. 9) time, usually three to five years. Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 19 Briefcase Military officials hold roundtable with media to promote transparency NIMITZ HILL, ASAN, GU — Top officials from Marine Corps Activity Guam, the Navy, Andersen Air Force Base, and Naval Facilities Engineering Command Marianas on Feb. 8 met with Guam media outlets to open what may be a recurring dialogue between the two parties to identi- fy strategies for more transparent communication to the public.

During the roundtable discus- Photo by I. Borja John sion, military officials identified their roles in the ongoing military relocation projects and their com- mitment to abide by laws imposed by both the local and federal gov- ernments. The officials stressed Gov. Lourdes A. Leon Guerrero and Lt. Gov. Joshua F. Tenorio address a room full of hospital doctors, nurses and staff during a tour of that environmental impact is large- the Guam Memorial Hospital on Feb. 11. ly taken into consideration and that $20.1 million has been put into the Governor, lieutenant governor that need to be more appropri- will have a shortened period of projects to ensure environmental tour GMH ately managed. While a $30 usability because of how long it compliance and restoration, care TAMUNING, GU — Gov. million deficit lingers with the takes to get to Guam. The nurses for endangered species, eradication Lourdes A. Leon Guerrero and hospital, Tenorio assured staff pay study was brought up out of of invasive species and recovery Lt. Gov. Joshua F. Tenorio on Feb. that his office has yet to hear fear that nurses are not getting and mitigation of historic proper- 11 visited the Guam Memorial “any complaints on the level of paid on par with the nation- ties. Communication between the Hospital and addressed some quality and service.” al standard, resulting in Guam federal archaeologist and his coun- concerns raised by the only Some concerns raised by the nurses leaving the island for bet- terpart at the Guam State Historic public hospital’s doctors, nurs- hospital included limitations ter opportunities. Preservation Office is also consist- es and staff. caused by Guam’s tough procure- Leon Guerrero said she is ent when surveying potential sites Leon Guerrero told the hos- ment laws and an adequate pay willing to discuss these prob- of interest and/or historic elements, pital team that although her study conducted for nurses. For lems with the responsible they said. administration is prioritizing the procurement laws, the hospi- authorities. She added that her The U.S. Department of Defense the hospital’s funding needs for tal staff told the governor that the administration meets with the has given $704.2 million in con- quality improvement, the hos- process to purchase and receive GMH team at least once a week tracts so far for projects relative to pital should also be responsible medical equipment and supplies to further collaborate and find the military buildup, including for for scrutinizing its operations from off-island is time-consum- ways to rework, reorganize and infrastructural improvements. The and determining critical areas ing and oftentimes, supplies refund hospital programs. buildup is expected to bolster the local economy with the creation of jobs and increased spending from incoming Marines and their fami- lies. It is projected that as many as tain nearly $8 million in airport Commission on Decolonization. the Guam Memorial Hospital 5,000 Marines will relocate from contracts. Lyon was charged in a Mary Therese F. Cruz and John F. Authority’s request for a re- Okinawa to Guam. separate case and pleaded guilty to Reyes Jr. were also appointed to base adjustment, according to a one count of conspiracy to violate the commission. Feb. 7 release. FSM official indicted in contracts the FCPA and to pay a bribe to an Pilar Laguana and Robert The previous rebase amount bribery agent of an organization receiving Alvarez were appointed president of more than $5,100 per hospital A Feb. 12 release from the U.S. federal funds. His sentencing is set and CEO of the Guam Visitors discharge was set in 1998. The Department of Justice has re- for May 13. Authority and vice president, re- new rebase amount is more than vealed the identity and charges to Halbert has a preliminary hear- spectively. $9,500 per discharge and will in- a Micronesian government offi- ing set for Feb. 22. (See “Legal Vincent P. Arriola was appoint- crease annually. GMHA estimates cial allegedly involved in a bribery Briefs” in the Feb. 4 issue of the ed director of the Department of it will receive additional pay- relative to engineering and man- Journal and additional coverage Public Works. ments of more than $6 million agement contracts for airport on Page 5.) Daniel J. Tydingco was appoint- annually and retroactively receive projects in the Federated States of ed to the board of the Guam Solid additional Medicare payments of Micronesia. Leon Guerrero-Tenorio ad- Waste Authority. $6.3 million for fiscal years 2014 According to the Jan. 24 in- ministration announces new Dana A. Gutierrez was appoint- through 2016 and an addition- dictment, which was initially appointments ed to the board of the A.B. Won al reimbursement of more than sealed but later unsealed, Master HAGÅTÑA, Guam — The of- Pat Guam International Airport $4 million for fiscal 2017 and Halbert was charged with one fice of Gov. Lourdes A. Leon Authority. fiscal 2018. count of conspiracy to commit Guerrero announced new ap- All appointments are pend- money laundering. Halbert was an pointments to the Commission ing confirmation by the Guam Benson Guam cited by OSHA for official for FSM’s Department of on Decolonization, Guam Visitors legislature or their respective or- fatality Transportation, Communications Bureau, the Department of ganizations. HAGÅTÑA, Guam — The and Infrastructure and adminis- Public Works, Guam Solid Waste U.S. Department of Labor’s tered the islands’ aviation programs. Authority and the A.B. Won CMS approves GMH rebase Occupational Safety and Health Between 2006 and 2016, Frank Pat Guam International Airport request Administration cited Benson James Lyon of Lyon Associates Authority. HAGÅTÑA, Guam — The Guam Enterprises Inc. for ex- Inc. allegedly bribed Halbert and Melvin Won Pat-Borja was ap- Centers for Medicare and Medicaid another Micronesian official to ob- pointed executive director for the Services on Jan. 12 approved SEE BRIEFCASE ON PAGE 22 20 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal

Focusmbjguam.com Guam Business Magazine’s 2018 Executive of the Year Gala was held on Feb. 2 at the Hyatt Regency Guam. Bernadette N. Valencia, vice president and general manager of Matson Navigation Co. for Micronesia and Okinawa, was named the 2018 Executive of the Year. Other nominees for the distinguished award include Gerard A. Cruz, president and CEO of Community First Guam Federal Credit Union; Richard W. Hart, owner, principal franchisee and president of Apple Pacific Restaurant Group; Michael B. Makio, president and principal architect for Taniguchi Ruth Makio Architects, and manager of M2M Designs LLC; Monte D.M. Mesa, general manager of Guam Premier Outlets and Tumon Sands Plaza; Milton K. Morinaga, vice president, director SEE MILITARY ON PAGE AA and managing director of P.H.R. Ken Micronesia Inc.; and Lee H. Vensel, country managing partner for Deloitte & Touche LLP. Photos by Justin Green

(From left) Joseph “Jerry” Kramer, CEO, Pacific International Inc., and 2004 Executive of the Year; (Standing, from left) Jina Rojas, vice president, Corals Enterprises; Prudence Denight; Camilo Gov. Lourdes A. Leon Guerrero, 2010 Executive of the Year; Valencia; Jose C. “Joe” Ayuyu, president Lorenzo, both account executives; Len Isotoff, vice president of sales – Pacific; Rolando Angeles, and co-owner, JCA Guam LLC and JCA Inc., which do business as McDonald’s of Guam and Saipan, administration and finance manager; and (seated, from left) Valencia; Gloria Perez, executive and 2016 Executive of the Year; Jay R. Shedd, senior director of sales, marketing and customer assistant; Vic Angoco, senior vice president – Pacific; and Catherine San Nicolas, customer service service, IT&E, and 2011 Executive of the Year; and Leonard K. Kaae Sr., senior vice president and representative, all of Matson Navigation Co. general manager of Black Construction Corp., and 2017 Executive of the Year.

(Standing, from left) Leonardo Rapadas, attorney, and former attorney general of Guam; Cynthia (Standing, back row from left) Serjay Urbano, accounting associate; Pamela Pineda, audit senior; Rapadas, regional director, Pacific Historic Parks, and wife of Leonardo; Catherine Cruz Norton, J.C. Daniel, audit senior; Joana Aman, audit senior; Nino Resueno, audit senior; Kayo Ikehata, public affairs officer, Naval Facilities Engineering Command Marianas; Kalani Norton, managing accounting associate; Fierce Catoc, audit assistant manager; Hikaru Homma, audit senior; all partner, NEXUS Environmental Group Guam, and husband of Catherine; and (seated, from left) Cruz; of Deloitte & Touche; Richard Reed, principal architect, RNK Architects; Danica Lagman, audit Letitia S. Lujan, assistant general manager; Deborah Borja, human resource manager, both of DNA associate; and (middle row, from left) Camille Calilung, audit senior; Engelica Ventura, accounting Inc.; and Elaine Pelletier, legal assistant, Dooley Roberts & Fowler LLP. associate, all from Deloitte; Dr. Joan Gill, psychiatrist; Sherri Vensel, teacher, Academy of our Lady of Guam; Harold Aranda, accounting associate; Lerissa Malig, audit senior; Yukari Buccat, audit senior; all of Deloitte & Touche; Elizabeth Reed, teacher, Truman Elementary School; and (seated, from left) Al John Manlucu, audit associate; and Vensel, both of Deloitte.

(Standing, from left) H. Mark Ruth, co-founder and senior management consultant; TRMA Guam; (Standing, from left) Chona Villaruz, team leader for food and beverage, Hyatt Regency Guam; Martha Ruth, former senator, 19th Guam Legislature, and former journalist; Jean Taniguchi, wife Yoshihito Shibahata, assistant general manager, Sheraton Laguna Guam Resort; Jose C. “Joe” of TRMA co-founder Kinya Taniguchi; Victor Reyes, founder and senior president, EMCE Consulting Blas, assistant general manager, Hotel Nikko Guam; Trina Rose Cruz, director of marketing and Engineers; Connie Reyes, wife of Victor; David Okada, chief planning officer/interim chief of staff, public relations, Pacific Islands Club Guam; Vincent B. Cruz, general manager, Sheraton Laguna University of Guam; Melet Santos, vice president, TRMA; and (seated, from left) Sen. Louise Borja Guam Resort; Jeriza Torres, assistant marketing manager, PIC; William Shinoaki, assistant general Muna, 35th Guam Legislature; Ricardo Duenas, chief financial officer; ST Corp.; Makio; and Kim manager, Hilton Guam Resort & Spa; and (seated, from left) Hiro Sugie, general manager, Hotel Okada, daughter of David. Nikko Guam; Morinaga; Mike Sato, president, P.H.R. Ken Micronesia Inc.; and Sheila Baker, director of sales, Hilton Guam Resort & Spa. Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 21

Focusmbjguam.com

(Standing, from left) Mai Perez, marketing manager, Tumon Sands Plaza; Joel Chabanne, general (Standing, from left) Kirby Gabo, vice president of operations, Apple Pacific; Felix “Champ” F. manager, Gemkell Corp.; Shalyn Allen, realtor, Welcome Home Realty; Richard Hawes, managing Camacho, regional general manager, Pieology Pizzeria; Hart; Pia Elise Hart, daughter of Richard; director, Gemkell Corp.; Insook C. Ko, owner, Net Tour; Minjin Han, guest of Insook; and (seated, from Thelma Hart, wife of Richard and mother of Pia; and (seated, from left) Jennifer Lloyd, vice president left) Susan Fryer, shopping center manager, Tumon Sands Plaza; Howard E. “Ed” Davis; Margaret of operations, Apple Pacific; Jerry Tang, partner, Apple Pacific; Maureen Tang, wife of Jerry; Harry Mesa; Monte D.M. Mesa; husband of Margaret; and Nicole Mesa, daughter of Margaret and Monte. Chang, partner, Apple Pacific; and Roxanne Garrido-Chang, owner, TuRe Café, and wife of Harry.

North Wind Group held an open house and ribbon cutting on Feb. 7 at its new office at J&G Commercial Plaza. Photos by Justin Green

(From left) Robert T. Thompson, project director; Donald J. Harper, owner and general manager, (From left) Scott Thompson, vice president and general manager, Coffman Engineers Inc.; Noel both of International Consolidated Contracting LLC; and Christopher A. Rhodes, sole proprietor, M. Enriquez, operations manager, Stanley Consultants; Gregory Cantelo, engineering manager; Health, Safety and Environment Pacific. and Hernan Bonsembiante, vice president of operations, both with J.M. Robertson Inc., which does business as Amorient Engineering.

The Chinese Chamber of Commerce of Guam, United Chinese Association and Guam Chinese Association hosted the Chinese New Year Tri-Gala for the Year of the Pig on Feb. 9 at the Dusit Thani Guam Resort. Photos by Justin Green

(From left) Albert Wu, president, FADA Investment LLC, which does business as FADA Real Estate (From left) Jack Chan, president, Kwong Hwa Furniture and Home Mart, and vice president, Investment, and vice president and membership committee chairman, Chinese Chamber of Chinese Chamber of Commerce of Guam; Fong S. Wu, president, Sunny Wholesale and Sunny Commerce of Guam; Kenneth Q. Lujan, branch manager, U.S. Small Business Administration; Plastic (Guam) Inc; Tamuning-Tumon-Harmon Mayor Louise C. Rivera; and Sen. James C. Moylan, and Hiro Kurashina, emeritus director, University of Guam Richard F. Taitano Micronesian Area 35th Guam Legislature. Research Center. 22 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal

BRIEFCASE miscellaneous support spaces.” CONTINUED FROM PAGE 19 In its pre-solicitation, the Navy JAL reduces seats on Narita-Guam route said the project is estimated at be- TUMON, Guam — Japan Airlines announced in a Feb. 5 release that posing employees to struck-by tween $25 million and $50 million, it will switch from flying its 767-300ER aircraft to the larger 777-200ER, hazards after an employee suffered and that it estimates completion at but reduce its twice-daily flights to once a day based on demand. The fatal injuries when several doors 1,000 days, or under three years. changes will make available 26 business class seats and 286 economy fell on him as he unloaded a ship- The Request for Proposals class seats, resulting in 113 additional seats due to the larger aircraft, ping container, according to a Feb. is due out from Naval Facilities but reduce the number of passengers overall. 6 release. Engineering Command Pacific on Ticketing for the updated service began Jan. 31 and the first flight The company faces more than the Navy’s electronic commerce on the 777-200ER will begin on Sep. 1. JAL will also provide charter $16,500 in penalties for failing to site around Feb. 20, according to flights to Guam for Golden Week between April 28 and May 6 using secure stored materials to prevent the Navy, with a site visit tentative- the 767-300ER. accidental movement or shifting, ly scheduled for March 19. provide a place of employment free Other potential work includes Route Effective Period Aircraft Type Flight Schedule from recognized hazards and con- the $75 million 8(a) multiple award Tokyo (Narita) - April 28, 2019 767-300ER (SS6) JL8943 NRT-GUM duct performance evaluations of construction contract for Guam, Guam April 30, 2019 10:20-15:05 powered industrial truck operators due to be awarded to five bidders, May 3, 2019 JL8944 GUM-NRT at least once every three years. which is due Feb. 12. May 6, 2019 17:40-20:25 Benson has 15 days from receipt The U.S. Navy on Feb. 8 post- *Flight JL8944 unavailable on April 28. Flight JL8943 unavailable on May 6. of the citations and proposed penal- ed yet another pre-solicitation for ties to comply, request an informal construction on Guam, straining Route Effective Period Aircraft Type Flight Schedule conference with OSHA’s area direc- the island’s construction resources Tokyo (Narita) - September 1, 777-200ER (SS6) JL941 NRT-GUM tor or contest the findings. yet further. Guam 2019 – March 28, JL942 GUM-NRT Naval Facilities Engineering 2020 Guam now Real ID compliant Command Pacific is seeking ex- HAGÅTÑA, Guam — The United pressions of interest for the “first States Department of Homeland three phases” of replacement fam- Security has determined that ily housing at the U.S. Air Force’s Guam meets Real ID requirements, Andersen Air Force Base. according to a Feb. 8 release. U.S. The work on one-story duplex islands. I like the people. I like the DHS sent a Feb. 7 letter to Gov. units is estimated at between $100 cultures. I like observing how the Lourdes A. Leon Guerrero noti- million and $250 million, accord- inhabitants of these small places fying her office of their findings. ing to the pre-solicitation, with a cope — what they do to keep their Federal agencies can now accept “completion period of 835 days, or economies going, what happens Guam drivers licenses and state-is- more than two years. with politics.” sued IDs for official purposes. Responses are due May 9, with He left that job after four Starting Oct. 1, 2020, the federal a pre-proposal site visit scheduled years to join the government of government will only accept Real for April 25. This pre-solicitation American Samoa as the director ID-compliant identification. follows a Feb. 5 fiscal 2019 military of television operations. In 1977 construction pre-solicitation for Anderson moved to Guam to GRMC passes CMS inspection unaccompanied housing at Naval work for the KUAM AM/FM DEDEDO, Guam — Guam Base Guam. television station where he Regional Medical City on Jan. 30 Other potential work includes was the general manager and passed an unannounced inspec- the $75 million 8(a) multiple award vice president for four years. In tion by the Centers for Medicare construction contract for Guam, April 1981 he purchased with and Medicaid Services, accord- due to be awarded to five bidders, two partners a standalone radio ing to a Feb. 5 release. Passing which is due Feb. 12. Anderson station – KATB, which broadcast the inspection means the hospi- The federal ban on temporary out of Yona. They launched K57 tal is in full compliance with the foreign skilled workers from the — Guam’s first talk radio show in Emergency Medical Treatment Philippines has not made a direct Guam radio host and January 1984 which Anderson and Labor Act, a federal law that impact on Guam just yet, but em- personality passes away hosted for 20 years. requires emergency departments ployers anticipate the effect will DEDEDO, Guam — Longtime He spent four years working to stabilize and treat all patients likely worsen the island’s ongo- talk show host and media for Bridge Capital LLC and the regardless of insurance status or ing labor crisis. – A version of this personality, Jon A. Anderson last three as editor-in-chief of the ability to pay for treatment. story was sent as a News Flash to passed away Feb. 1 at the Guam Marianas Variety Guam edition Journal subscribers on Feb. 7 and Region Medical City, where he newspaper. Guam military solicitations Feb. 11. See page First Page story for had been hospitalized. He was Anderson said in 2014 he was issued, no sign of labor relief further updates. 76 years old. surprised that he was still living JOINT BASE PEARL HARBOR- Anderson retired on Dec. 15, in Guam. HICKAM, Hawaii — A big NMI Department of Labor to re- 2013 from a 42-year broadcasting “I thought about leaving pre-solicitation for Guam has been quire quarterly workforce reports career in the Marianas, according [Micronesia] on a couple of issued by the U.S. Navy, while GARAPAN, Saipan — The to Journal files. occasions, but I realized this contractors are still faced with a se- Northern Mariana Islands He came to Saipan in 1971 place had begun to grab me on rious labor shortage. Department of Labor announced to work as the bureau chief of an emotional level.” The Navy issued a Feb. 5 fiscal that all businesses must submit the Trust Territory of the Pacific The Anderson Family will 2019 military construction pre-so- quarterly workforce reports, Islands’ Micronesian News be opening a scholarship for licitation for unaccompanied according to a Feb. 7 release. The Service — a daily news file sent journalists with the University of housing at . mandatory reports include a Total globally, including to Washington Guam in Anderson’s name. The pre-solicitation is for en- Workforce Listing and Workforce D.C. Jon Anderson is survived listed sailors housing (pay grades Plan. Any request for a certificate of Anderson told the Journal by his wife, Mahi, his daughter E-1 through E-4) “via conversion good standing, NMI Occupational in 2014, “I travelled extensively Debbie and his sons Keoki, Maka, and alteration” of four buildings Safety and Health Administration throughout Micronesia back Darren and Tony. A memorial on-base. Each building will include certification a job vacancy at the time when the islands service was due to be held Feb. double-occupancy housing units announcement certification will be were divided up into districts 17 from 1 p.m. to 5 p.m. at Jeff’s and common areas, which the denied for any business that fails to as part of the trust territory and Pirates Cove in Ipan. Navy described as “multipurpose submit updated workforce reports I became fascinated with the spaces, shared kitchens, vending areas, shared laundries and other SEE BRIEFCASE ON PAGE 24 Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 23 Military

Naval Base Guam to require REAL ID for access

Photo by Mass Communication 1st Class Kevin Specialist A. Flinn, of the U.S. Navy courtesy SANTA RITA, Guam — Naval Base Guam will require a REAL ID compliant identification card when applying for access at the Visitor Control Center effective April 10, according to a Jan. 29 release. The requirement will apply to individuals including guests, contractors, vendors, service providers and any other non-De- partment of Defense ID holders. A valid U.S. passport may be used as one alternate identification. The REAL ID requirement was previously scheduled to take ef- fect Feb. 4, but the Department of Homeland Security extended the deadline. Guam state IDs were deter- mined by the U.S. DHS to be REAL Sailors assigned to the “Golden Swordsmen” of Patrol Squadron 47 pose for a group picture following a photo exercise at the com- ID compliant effective Feb. 7. mencement of Exercise Sea Dragon. Naval Base Guam launches base Exercise Sea Dragon concludes shuttle program ANDERSEN AIR FORCE BASE, Guam — Exercise Sea Dragon, a joint U.S. and Royal Australian Air Force SANTA RITA, Guam — U.S. Exercise, concluded on Jan. 22. Naval Base Guam on Jan. 28 Exercise Sea Dragon is an annual multilateral anti-submarine warfare exercise. This year’s exercise was launched an Installation Base conducted out of Andersen Air Force Base and commenced on Jan. 14. Service members from the Korean Shuttle Program, according to a Navy also participated Jan. 25 release. The program provides two shuttles: one for the main base and another for trans- portation between Naval Base Guam, Polaris Point and .

Connecticut-based firm awarded Navy contract WASHINGTON, D.C. — Thomaston, Conn.-based firm Treadwell Corp. was awarded a more than $9 million cost-reim- bursable, indefinite-delivery/ indefinite-quantity contract, ac- cording to a Jan. 31 release. The contract is in support of

Photo courtesy of Joint Region Marianas of Joint Photo courtesy engineering and in-service engi- neering services for submarine air revitalization, air monitoring, oxygen generation and ventila- tion on U.S. naval ships. Work will be performed at various locations world- wide including Guam and is expected to be completed by January 2022. mbj (From left) Rear Adm. Shoshana Chatfield and Gov. Lourdes A. Leon Guerrero.

Guam governor and lieutenant governor meet with JRM officials ASAN, Guam — Newly-elected Guam Gov. Lourdes A. Leon Guerrero and Lt. Gov. Joshua F. Tenorio on Jan. FOR ADVERTISING 24 met with Joint Region Marianas Commander Rear Adm. Shoshana Chatfield at JRM headquarters in Asan, according to a release. AND SPACE RESERVATION During the meeting Leon Guerrero and Tenorio along with their senior staff were briefed on the mission (671) 649-0883 and operations of the command; the military’s economic contribution to the island; defense support for civil email: authorities, progress of the Marine Corps relocation; and partnership opportunities between the military and civilian community on the island. [email protected] 24 February 18, 2019 - March 3, 2019 www.mbjguam.com Marianas Business Journal

BRIEFCASE CONTINUED FROM PAGE 22

for each quarter in 2018 and 2019. A Workforce Plan identifies positions occupied by foreign workers and includes a timetable for replacing non-U.S. workers with qualified U.S. workers. For more information about the reporting requirement or for assistance in filling out the forms, businesses may contact the Division of Employment Services at 664-3190 or 322-0996. Photo courtesy of Pay-LessPhoto courtesy SupermarketS Cartier opens DFS Saipan boutique GARAPAN, Saipan — French luxury brand Cartier opened a boutique in the T Galleria by DFS Saipan on Feb. 2 according to Marian Aldan-Pierce, president of DFS Saipan Ltd. The store carries popular Cartier collections like Ballon Bleu The 2019 Pay-Less Markets Community Foundation Kick the Fat event was held Jan. 26. More than 3,000 runners participated. de Cartier as well as exclusive collections such as the “Panther Pay-Less hosts 2019 Kick the Fat event Collection,” which has a total retail HAGÅTÑA, Guam — The Pay-Less Markets Community Foundation on Jan. 26 held the 2019 Kick the Fat value of $500,000. 5K/10K Run/Walk and Community Fair at Paseo Stadium in Hagatna. More than 3,000 runners participated in the event, the proceeds of which go to the Ayuda Foundation, Farm to Table, Guam Animals in Need, Guam Traditional seafaring Memorial Hospital Volunteers Association, Rigalu Inc., St. Dominic’s Senior Home Care and Victim Advocates organization faces eviction Reaching Out. SUSUPE, Saipan — Traditional sailing, boat-building and swimming organization 500 Sails received notice from the Department of Lands and Natural trolled building, which was Resources to vacate its space at the completed in early February. Guma Sakman effective March 30, according to a Feb. 11 release. The Yap representatives attend Hong Guma Sakman is a traditional ca- Kong dive and resort expo noe house located in Susupe which COLONIA, Yap — was opened by 500 Sails. Representatives from Yap’s diving An online petition to save the and tourism industry attended the Guma Sakman was launched by Hong Kong Diving & Resort Travel the organization with the aim of Expo according to a Jan. 30 release. acquiring 2,500 signatures. By Feb. Ruud Van Baal, general manager

14 more than 1,900 people had of Manta Ray Bay Resort and Yap Guam Kroll of Atkins Photo courtesy signed the petition. Divers joined Jan Mok, public rela- tions representative in Asia for the Extra transportation services of- Yap Visitors Bureau for the event, fered for Hot Pepper Festival which drew about 50,000 visitors. GARAPAN, Saipan — Extra YVB representatives next plan to flights, ferry transportation be- attend the Shanghai and Taiwan tween Saipan and Tinian as well Diving & Resort Travel Expos in as free shuttle service between air- April and May respectively. port, seaport and festival grounds The new 2020 Toyota Corolla were offered for the 15th Tinian United unveils live television, Hot Pepper Festival held Feb. 16 to new app features AK unveils 2020 Toyota Corolla Feb. 17, according to a Feb. 6 report. TAMUNING, Guam — United TAMUNING, Guam — Atkins Kroll Guam on Feb. 9 unveiled the The services were offered Airlines on Jan. 30 announced free 2020 Corolla in their Tamuning showroom, according to a Feb. 7 through a partnership of Star DIRECTV service on more than 200 release. The new Corolla was designed using Toyota New Global Marianas Air, the Marianas Boeing 737 aircraft. United also Architecture, which is Toyota’s new comprehensive design concept. Visitors Authority and the Tinian expanded its personal device en- New features include a redesigned interior to provide a more open at- Mayor’s Office. tertainment services to aircraft that mosphere and quieter cabin and Toyota Safety Sense 2.0 active safety previously only offered DIRECTV, technology, which includes features such as pre-collision detection Artifacts donated to Yap museum providing customers the option to and lane-departure alerts. COLONIA, Yap — Historical ar- use their phones, tablets or laptops tifacts and artwork was donated to access more than 280 compli- to the Yap Living History Museum mentary movies and TV shows. by former Peace Corps Volunteer Options for those with hearing and screen that provides regular up- bers award miles for everyday and teacher Art Mergist, according mobility issues are also offered. dates on the customer’s flight purchases. The app also features to a Jan. 28 release. The collection The airline also introduced status and other useful information the launch of United Visa Rewards, was kept at the Federated States updates to its mobile app to in- when traveling. which offers the opportunity to of Micronesia Consul General’s clude easier access to the most United also relaunched the earn miles when buying from Office on Guam while awaiting popular tools, new personalized United MileagePlus X app, which merchants such as Sam’s Club, construction of a new climate-con- content and functions and a home offers United MileagePlus mem- Wayfair and StubHub. mbj Marianas Business Journal Datawww.mbjguam.com Bank February 18, 2019 - March 3, 2019 25 Information you can use to build your business mbjguam.com

Procurement Appeals Synopsis Procurement Appeals Synopsis Appeal No. OPA-PA-17-001 Purchasing Appellant: Core Tech International Corp. Appeal No. OPA-PA-17-005 Purchasing Appellant: Pacific Data Systems Inc. Agency: Agency: DPW 34th Guam Appeal Relative To: Lease Financing for De- Value: $100 million Legislature sign, Renovation, Rehabilitation, Construc- Appeal Relative To: Telephone System and Value: $75,000 tion and Maintenance of Public Schools Telecommunications Services Procurement Issue: Improper method of Decision: Appeal was UPHELD in part and Procurement Issue: IFB revisions PDS Dismissal: Appellant Withdrew Appeal; solicitation CTI alleged that DENIED in part. OPA determined that asserted that Lack of Jurisdiction ▪ The RFP violates 5 G.C.A., Chapter 58E ▪ CTI’s Appeal was timely filed; ▪ The Guam Legislature violated the Guam because it was issued without a Program ▪ The RFP violates 5GCA §58E104; Procurement Law and Regulations for Study. ▪ The Comprehensive Capital Improvement failing to formally amend the bid to reflect ▪ The RFP improperly included require- Plan fulfills the requirement for a Program revised specifications and requirements ments set forth in 5 G.C.A. Chapter 58E by Study; to conform with the applicable law and combining the solicitation of maintenance ▪ DPW may procure insurance, mainte- regulation. work for the remaining 34 public schools nance, and collateral equipment for the Filed: March 20, 2017 Closed: April Duration: 24 days and the construction of Simon Sanchez remaining thirty-four (34) public schools; 13, 2017 High School. and ▪ DPW may cancel or amend the RFP. Appeal No. OPA-PA-17-006 Purchasing Appellant: American Best Electricmart Inc. Agency: GPA Filed: March 16, 2017 Closed: June Duration: 85 days 9, 2017 Appeal Relative To: LED Luminaire Units Value: $ - and Photo Electric Controls Appeal No. OPA-PA-17-002 Purchasing Appellant: Morrico Equipment LLC Agency: Procurement Issue: Bid cancellation ABE Decision: Appeal was UPHELD in part and GSWA alleged that DENIED in part ▪ The IFB cancellation was not specific and ▪ GPA’s cancellation of the IFB was untime- Appeal Relative To: Refuse Collection Trucks Value: $270,000 did not appear to relate to the LED Street- ly and of no further force and effect. Procurement Issue: Restricted competition Dismissal: Dismissed with Prejudice after light Specifications. ▪ The IFB’s procurement record is incom- Morrico alleged that the Ninth Circuit Court of Appeals denied ▪ Cancelling and rebidding the IFB for issues plete. ▪ The IFB specification restricts competition Morrico’s emergency motion for a stay on unrelated to the technical specifications ▪ GPA may terminate the IFB solicitation to only vendors offering a cab forward the procurement. was unfair. by rejecting all bids or it may proceed to model and violates the Guam Procurement ▪ The IFB cancellation contradicts the timely evaluate and award. Code provisions governing specifications implementation of the installation of the and that the refusal of the GSWA to amend LED streetlights. the specifications to allow vendors to bid ▪ The IFB cancellation delays the IFB’s deliv- a conventional cab model was arbitrary, ery schedule. capricious, and an abuse of discretion. ▪ The IFB cancellation and re-bid was unfair Filed: March 17, 2017 Closed: May Duration: 47 days because the bidders’ prices were made 3, 2017 public. Appeal No. OPA-PA-17-003 Purchasing Appellant: J&B Modern Tech Filed: April 20, 2017 Closed: July Duration: 98 days Agency: GCC 27, 2017 Appeal Relative To: Construction of Gener- Value: $430,000 Appeal No. OPA-PA-17-007 Purchasing Appellant: Mega United Corp. Ltd. ator Building and Installation of a Back-up Agency: Generator System to Service GCC Allied GEDA Health Center and Building A Appeal Relative To: Contract for the Value: $460,000 Procurement Issue: Bid cancellation J&B Decision: DENIED GCC’s rejection of all bids Construction of the Farmers’ Cooperative Modern Tech asserted that and cancellation of the bid was authorized. Association of Guam Facility and Relocation ▪ Shop drawings were not included in the of the Dededo Flea Market requirements for bids. Procurement Issue: Contract dispute Mega Dismissal: Due to untimely appeal. ▪ The bid was improperly cancelled. United alleged ▪ J&B had the lowest bid and should have ▪ Delays caused by GEDA or its representa- been awarded the contract for this matter. tive Program Management Office increased Filed: March 20, 2017 Closed: June Duration: 81 days the contract time by more than 60 days 9, 2017 resulting in damages to Mega United and its attorneys, and GEDA and its attorneys. Appeal No. OPA-PA-17-004 Purchasing Appellant: JMI Edison Agency: Filed: June 15, 2017 Closed: Duration: 47 days GMHA August 1, 2017 Appeal Relative To: Contract Dispute on To- Value: $173,000 tal Amount of Interest on Past Due Invoices Appeal No. OPA-PA-17-008 Purchasing Appellant: Shanghai Electric Power Japan Agency: GPA Co. Ltd. and Terra Energy Inc. Procurement Issue: Contract dispute JMI Dismissal: Appellant withdrew appeal Edison asserted that Appeal Relative To: Renewable Energy Appeal Value: $672 million ▪ GMHA should have issued a final written Resource Phase II decision on the contract controversy as Procurement Issue: Non-conformance to Decision: Appeal was DENIED. requested by JMI asking for resolution of IFB specifications Shanghai Electric Power ▪ GPA’s acceptance of the Hanwha bids did the dispute regarding the total amount of Japan alleged not violate the IFB. interest due to JMI on past due invoices. ▪ GPA’s acceptance of the Hanwha bids ▪ GPA’s award of 120 MW was proper. ▪ GMHA was wrong in calculating interest violated the Invitation for Bids. ▪ The IFB Specifications were not ambigu- due to JMI at 3%. ▪ GPA’s action in doubling the procure- ous and unfair. Filed: March 20, 2017 Closed: Duration: 134 days ment from 60 Megawatts to 120 MW of ▪ SEPJ did not establish that GPA ranked August 1, renewable capacity was improper and the the bids improperly. 2017 procurement must be rebid. ▪ Ratification or affirmation of the award is ▪ A crucial portion of the specifications are in the best interests of the Territory. ambiguous and unfair and the procurement must be rebid. ▪ The SolarCity bid ranked number 6 was not accepted by GPA Filed: August 21, 2017 Closed: Duration: 108 days December 7, 2017

CONTINUED ON PAGE 26 26 February 18, 2019 - March 3, 2019 Datawww.mbjguam.com Bank Marianas Business Journal Information you can use to build your business mbjguam.com

Procurement Appeals Synopsis Procurement Appeals Synopsis Appeal No. OPA-PA-17-009 Purchasing Appellant: Core Tech International Corp. Appeal No. OPA-PA-17-011 Purchasing Appellant: J&B Modern Tech Agency: Agency: GCC DPW Appeal Relative To: GCC Forensic DNA Lab Value: $4 million Appeal Relative To: Lease Financing for De- Appeal Value: $ - Construction sign, Renovation, Rehabilitation, Construc- Procurement Issue: Non-conformance to Decision: Appeal was UPHELD in part and tion, and Maintenance of Simon Sanchez IFB requirements J&B Modern Tech alleged DENIED in part. High School ▪ J&B is the lowest bidder. ▪ GCC’s proposed award to ProPacific was Procurement Issue: Non-conformance to Stay: Pending Superior Court Decision on ▪ Only J& B is entitled to 15% local procure- in violation of the law. IFB requirements CTI alleged Petition for Writ of Mandamus filed by ment preference. ▪ Pursuant to 5 GCA § 5451, GCC’s pro- ▪ DPW incorrectly and improperly included appellant. ▪ GCC violated the procurement process posed award to Propacific is cancelled and a Notice of Default Regarding Claims for regarding bid requirements for GCLB GCC is to reconsider J&B’s bid. which there has not been final adjudication compliance, insurance and certificate of ▪ ProPacific’s bid was non-responsive. in its interpretation. owner’s attorney. ▪ DPW interpreted “Record of Default” to Filed: October 30, 2017 Closed: Duration: 121 Days include disputed Notice of Default against February 28, CTI in the Route 1/Route 8 Intersection 2018 Improvements and Agana Bridges Replace- ment Project in retaliation against CTI. Appeal No. OPA-PA-17-012 Purchasing Appellant: Mid Pac Far East Agency: Filed: October 16, 2017 Closed: - Duration: 65 days GSA/PAG Appeal No. OPA-PA-17-010 Purchasing Appellant: Core Tech International Corp. Appeal Relative To: 11,000 lbs (5.5 ton) Fork Value: $205,000 Agency: Trucks (New) DPW Procurement Issue: Restricted competition Dismissal: Stipulated agreement by parties. Appeal Relative To: Contract for Improve- Value: $3 million Mid Pac Far East alleged ments to Route 1/Route 8 and to replace ▪ The color specification in GSA/PAG-025-17 Agana Bridges 1 and 2 violates Guam Procurement Law. Procurement Issue: Contract dispute CTI Stay: Pending Superior Court Decision on Filed: November 27, 2017 Closed: Duration: 59 days alleged Petition for Writ of Mandamus filed by January 25, ▪ DPW wrongfully terminated the contract. appellant. 2018 ▪ DPW breached the contract. ▪ Parsons Transportation Group intentional- Source: Office of Public Accountability Annual Report Calendar Year 2017 (most recently available) ly and wrongfully interfered with CTI’s work on the project. ▪ There is no justification for liquidated damages. Filed: October 23, 2017 Closed: - Duration: 129 days

Guam new car registrations for January Cars Light Trucks Vans SUVs Percent of Make Total Previous year Month differential Comp Mid Size Full Coupe / Sport Comp Mid Size Full Size Mini Van Full Comp Mid Size Full overall Acura 0 2 0 0 0 0 0 0 0 2 4 0 8 1.1% 10 -20.0% BMW 1 2 0 1 0 0 0 0 0 6 3 0 13 1.8% 10 +30.0% Buick 0 0 0 0 0 0 0 0 0 3 1 0 4 0.6% 19 -78.9% Cadillac 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% 0 #DIV/0! Chevrolet 0 7 8 3 0 3 4 0 1 0 2 0 28 3.9% 41 -31.7% Chrysler 0 0 0 0 0 0 0 0 0 0 1 0 1 0.1% 0 #DIV/0! Dodge 0 0 0 1 0 0 5 5 0 0 0 0 11 1.5% 24 -54.2% Ford 3 0 0 0 0 0 23 6 0 1 0 0 33 4.6% 48 -31.3% GMC 0 0 0 0 0 19 5 0 1 0 0 4 29 4.1% 83 -65.1% Honda 10 9 0 0 0 4 0 0 0 9 10 0 42 5.9% 91 -53.8% Hyundai 7 0 1 0 0 0 0 0 0 16 1 0 25 3.5% 68 -63.2% Infiniti 0 1 0 0 0 0 0 0 0 2 1 0 4 0.6% 5 -20.0% Jeep 0 0 0 0 0 0 0 0 0 4 8 0 12 1.7% 16 -25.0% Kia 9 0 0 0 0 0 0 34 0 3 0 0 46 6.4% 35 +31.4% Land rover 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% 0 #DIV/0! Lexus 0 4 1 7 0 0 0 0 0 0 21 8 41 5.7% 64 -35.9% Lincoln 0 0 0 0 0 0 0 0 0 0 0 4 4 0.6% 1 +300.0% Mazda 17 4 0 2 0 0 0 0 0 17 4 0 44 6.2% 126 -65.1% Mitsubishi 33 0 0 2 0 0 0 0 0 16 0 0 51 7.1% 69 -26.1% Nissan 49 3 0 0 0 11 0 0 4 7 5 3 82 11.5% 175 -53.1% Scion 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% 0 #DIV/0! Subaru 2 0 0 0 0 0 0 0 0 5 2 0 9 1.3% 2 +350.0% Suzuki 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% 0 #DIV/0! Toyota 54 6 0 1 0 67 1 2 0 53 40 2 226 31.6% 415 -45.5% Mini 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% 0 #DIV/0! Fiat 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% 0 #DIV/0! “OTHER” 2 0.3% 1 +100.0% 185 38 10 17 0 104 38 47 6 144 103 21 715 100.0% 1303 -45.1% Totals 250 142 53 268 26% 5% 1% 2% 0% 15% 5% 7% 1% 20% 14% 3% Source: Guam Department of Revenue and Taxation Marianas Business Journal www.mbjguam.com February 18, 2019 - March 3, 2019 27 Data Bank Information you can use to build your business mbjguam.com

Guam Import Report - June 2018 Country of origin June 2018 United Korea Italy Switzerland Japan China All others Top 25 commodities dollars ($) States imported Motor vehicles for transport 8,730,436 7,299,106 141,248 1,290,082 0 of persons PUBLISHER Other articles of leather 5,909,583 95,114 188,094 2,667,897 1,169,250 231,579 1,557,649 Maureen N. Maratita Vehicles for transport of 2,652,191 140,024 2,512,167 0 goods BUSINESS EDITOR Meghan Hickey Suits, ensembles, jackets for 1,698,561 1,502,240 17,544 178,777 boys REPORTERS Suits, ensembles, blouses, 1,598,810 1,440,823 36,879 121,108 John I. Borja jackets and dresses Wayne Chargualaf Beer made from malt 1,489,159 1,270,448 35,227 183,484 JAPAN CORRESPONDENT Perfumes and toilet waters 1,370,922 474,913 83,703 59,191 29,830 65,806 657,479 Julian Ryall Wrist-watches, pocket 1,143,170 94,588 1,023,712 24,870 watches or other MARSHALL ISLANDS CORRESPONDENT Meat and edible offal of beef 1,046,291 1,043,320 2,971 Giff Johnson Footwear of rubber or 984,289 171,606 399,093 129,447 166,177 117,966 PALAU CORRESPONDENT plastics Bernadette H. Carreon Water, containing sugar 966,660 729,685 14,055 69,264 153,656

CREATIVE CONTENT MANAGER Jewelry articles of precious 934,699 229,636 57,644 121,075 379,678 17,832 128,834 metal Vikki Fong Bread, pastry, cakes and 890,305 656,673 38,185 81,664 113,783 DESIGN & PRODUCTION other bakery products Conrad Calma Paper towels, toilet paper or 812,912 533,619 145,564 64,576 69,153 Luisa Joy Castro napkins

MEDIA SALES MANAGER Chocolate and other foods 801,597 447,272 15,199 20,703 28,228 290,195 Kevin Iwashita containing cocoa Meat and edible offal of 796,344 796,344 0 MEDIA SALES poultry Vince Guerrero Apparel and clothing 758,420 150,515 23,834 183,764 213,172 74,471 112,664 accessories ADMINISTRATION Janice Castro Meat and edible offal of pork 758,052 664,758 93,294 Carmelita McClellan Prepared or preserved meat 527,269 511,452 15,350 467 Jenalyn Aguon or blood Motor vehicle parts 510,971 328,616 37,789 56,904 87,662 DIRECTOR OF GLIMPSES MEDIA Ken Duenas Sauces, mixed condiments, 506,515 353,866 17,528 65,292 69,829 seasoning MANAGING DIRECTOR Ethyl alcohol, undenatured, 475,182 139,487 32,310 303,385 Marcos W. Fong liqueurs and other Other food preparations 462,728 329,987 16,014 49,927 66,800 Petroleum oils and gases 443,663 61,225 268,933 113,505 Prepared or preserved fish, 436,382 129,960 54,914 251,508 caviar and substitutes Marianas Business Journal, Volume 16, Number 21 — February Source: Guam Bureau of Statistics and Plans 18, 2019. Entire contents copyrighted 2019 by Glimpses of Guam Inc. Marianas Business Journal is published biweekly by Glimpses of Guam Inc. 161 US Army Juan C. Fejeran St., Barrigada Heights, Guam Regional Medical Center Guam 96913. (671) 649-0883; Fax (671) 649-8883. POSTMASTER: Cost Reporting Period: 10/1 - 9/30 Send address changes to Marianas Business Journal, P.O. Box 3191, Provider No. 65-0001 Hagåtña, Guam 96932. Send e-mail to glimpses@glimpsesofguam. com. All rights reserved. Subscriptions, 6 months $60 1 year $120. Payment must accompany order. No material may be printed in part FY 2013 or in whole without written permission from the publisher. Printed by Guam Daily Post LLC, on Guam, contact Marianas Business Total Medicare Inpatient Operating Costs Excluding Pass 15,237,352 Journal at Glimpses of Saipan Inc., 2nd Floor Transpac Business Thru and Capital:2013 Audited (W/S D-1 L. 53) Center, Middle Road, Gualo Rai, Saipan, MP 96950, or call (670) Medicare Program Discharges (W/S D-1 L. 54) 1,602 235-7645; Fax (670) 234-1801. Send e-mail to subscriptions@ Revised Cost Per Discharge/Rebased Target Amount: 9,511.46 FFY MB FFY MB FFY MB FFY MB glimpsesofguam.com. Market Basket Update: 1.025 1.029 1.024 1.027 Cost Report Year FY 2014 FY 2015 FY 2016 FY 2017 Updated TEFRA Target Amount Per Discharge: 9,749.24 10,031.97 10,272.74 10,550.10 Source: Noridian Healthcare Solutions LLC via the Government of Guam

SBA disaster loan approvals for Typhoon Mangkhut in Guam as of Feb. 11 Applications Loans Dollars Approved Approved Glimpses Media include Guam Business Magazine, Marianas Business Journal, MBJ Life, Beach Road Magazine, Buenas, The Home 327 $2,184,600 Real Estate Journal and Drive Guam. Business/EIDL 3 $432,500 Glimpses of Guam Inc. Mission Statement: TOTAL 40 $2,617,100 To connect people with information. Source: U.S. Small Business Administration Office of Disaster Assistance, Field Operations Center - West