Monthly Archives: September 2011

Unanswered questions remain about governor’s emergency declarations

There are still unanswered questions concerning the governor’s recent emergency proclamations that suspended various state laws for several different purposes. The one involving clearing of unexploded military munitions caught my attention because of the amount of money flowing to private contractors.

Public relations materials distributed by the governor’s office painted a bleak, no-options picture of the situation. Former military use of public lands has left an unknown number of unexploded and potentially dangerous munitions, but requirements to produce environmental impact assessments or even full environmental studies supposedly left the governor no choice other than to declare an emergency and suspend the applicable laws.

For example, here’s an excerpt from a set of frequently asked questions posted on the governor’s web site.

The Army Corps of Engineers was charged to remove unexploded munitions, but state laws were holding up their ability to enter state land to search for and dispose of munitions. If a solution wasn’t found, Hawaii was at risk of losing millions of federal dollars designated for the clean-up and the work would not be completed.

The Abercrombie Administration sought a solution that was within the law and that got the job done with the necessary expediency. An emergency proclamation was the best solution.

The question before the Abercrombie Administration was whether to maintain the status quo approach that was about to end this munitions clean-up effort on state land, or to find a lawful solution that would secure the public’s safety.

A recent example of the effectiveness of the state’s action occurred at Hapuna Beach State Recreation Area. On Sept. 6, 2011, the Army Corps of Engineers began a sweep at Hapuna Beach. Since then, they found and disposed of two hand grenades and high explosive mortar. These munitions were safely destroyed in place. Without the emergency proclamation, it is likely that the grenade would still be on the beach today.

Scary stuff.

But last December, just as Gov. Abercrombie took over from the departing Lingle administration, it appeared the problem had been solved by outgoing DLNR director and land board chair, Laura Thielen.

The Board of Land and Natural Resources was scheduled to vote during its December 9, 2010 meeting on a plan to authorize the chairperson of DLNR to issue right-of-entry permits to the federal government “to conduct environmental investigations, remediation, and response activities” involving unexploded or discarded military munitions.

A background report prepared by DLNR staff explained the background of the issue and details of the recommendation.

According to the staff submittal, the Office of Environmental Quality Control had already agreed that actions responding to and mitigating hazardous conditions from unexploded ordnance are exempt from preparing an environmental assessment “because they will involve operations, repairs or maintenance of existing facilities and topographical features, which include the mitigation of existing hazards, that involve negligible or no expansion or change of use byond that previously existing.”

The state had already been routinely granting right-of-entry for these activites since the late 1990’s, the report noted. Delays in processing permits for these activities had already resulted in a loss of available federal funds in one instance, although those funds were later restored, so the current proposal was to streamline the approval process, no invent a whole new process.

DLNR had been working closely with the Army Corps of Engineers, the Army, the Department of Health, and other agencies to facilitate the explosives removal work.

In an October 10, 2010 memo, Katherine Kealoha, director of the Office of Environmental Quality Control, which administers the requirements for environmental impact statemnets, agreed that activities to mitigate dangers of unexploded munitions fall under authorized exemptions to Chapter 343 requirements for environmental review.

“Furthermore,” Kealoha wrote, “the necessity of these actions clearly rise to the level of health, safety and welfare requirements for the safety and well-being of the general public.”

Kealoha said her decision came after consultations with the Attorney General’s office, “extensive research and further inter-departmental discussions….”

It appeared everything was settled and ready for approval by the land board.

But at the December 9, 2010 meeting, the land board deferred action on the recommendation of incoming land board chairman, Bill Aila, who was attending his first meeting, minutes show. Although Aila said at the time that the matter would be taken up at the next meeting, that didn’t happen. It doesn’t appear to have been considered again by the board before the governor made his emergency declaration.

When the Sierra Club and other environmental organizations wrote to the governor and asked him to withdraw the emergency proclamations, the response came jsut two days later from Attorney General David Louie. I expected Louie’s letter to address the proposed solution presented to the land board in December, and at least explain in detail why it was taken off the table. Instead, it is never mentioned.

Feline Friday: All Annie

Annie is often the cat that goes missing when the camera comes out. It’s usually because she’s out hunting. You can see the good hunting grounds in the background. Lots of places for cats to track prey, and she is definitely a hunter. When I caught up with her this week, I decided it was time to let her be the star. So today it’s all Annie!

Click on this photo to see all of today’s feline photos. Enjoy!

Annie

Spouses of top Inouye, Abercrombie aides employed by major contributor & government contractor

The spouses of top staff to both U.S. Senator Dan Inouye and Hawaii Governor Neil Abercrombie are employed by companies owned by politically-active local businessman, major campaign contributor, and government contractor, Joseph G. Pickard.

John Sabas, who is married to Inouye’s chief of staff, Jennifer Goto Sabas, has been a consultant to Commuity Planning and Engineering, Inc., since 2008, according to personal financial disclosures filed with the U.S. Senate by his wife. Senate rules do not require reporting of the amount he is paid, only that it is more than $1,000. Personal financial disclosures of congressional staff are available for public inspection via Legistorm.com.

Joe Pickard is the sole officer of Community Planning & Engineering, according to the company’s business registration filed with the State of Hawaii.

Charles Asselbaye, married to Gov. Abercrombie’s chief of staff, Amy Asselbaye, is an entry-level environmental scientist for Environet, Inc., a sister company of Community Planning also controlled by Pickard, according to her personal financial disclosure filed in January 2011.

Environet Inc., which has received tens of millions in federal contracts for locating and clearing old military explosives on public land, would be among the main beneficiaries of the governor’s recent emergency declaration suspending dozens of environmental, administrative, and land management laws, allowing for streamlining the process of surveying and clearing. The company and its federal contracts were profiled here yesterday.

Community Planning & Engineering has landed at least 15 nonbid contracts with state agencies worth over $10 millions since July 2008, all awarded during the Lingle administration.

John Sabas said he does not believe there is a conflict.

Never once did Jennifer, Joe or I talk about the emergency order, before it was issued or after. Only info I get is what I read or hear from the media.

Being fully aware of my wife’s position, we are both very sensitive to issues of conflict. So is Joe.

Sabas, director of Public and Governmental Affairs for the law firm of Carlsmith Ball LLP, then described his consulting work.

My contract is with Community Planning and Engineering. I started with them soon after Molokai Ranch closed. I am not involved with Environet.

I report directly to Joe and provide advice on an as-need-be basis. Some of the things I work with him involve Molokai (i.e. CPE has a contract with Molokai Ranch for water-related issues) and the Kuhio Park Terrace Park project. CPE has a subcontract for some of the engineering work.

Amy Asselbaye acknowledged that her husband was hired by Environet in August 2010 at a beginning salary of about $36,000 after completing a UH degree in environmental studies. She also confirmed he was previously assigned some work on the munitions clearing project.

“His employment has absolutely no influence on any work I do for the State of Hawaii, including what little involvement I had in this emergency proclamation,” Asselbaye said in her emailed response.

Both state and federal ethics laws and rules prohibit government employees from taking official action affecting a business in which they or their spouse have a financial interest, including an employment interest.

However, Asselbaye no conflict of interest is created by her husband’s employment.

The Attorney General’s office worked with the Army Corps and DLNR and recommended the emergency proclamation as the best available course of action. Neither I nor anyone else in the Governor’s office was involved in their problem solving efforts. When the Attorney General’s office came forward with the emergency proclamation, the Governor agreed. In this particular case, I offered no opinions, suggested no courses of action, and made no decisions with regard to the emergency proclamation.

The Army Corps of Engineers has a contract with Environet to do its munitions removal work in Hawaii. The State and the Governor had no part in that company’s selection or contracting. The contractual relationship between the Army Corps and Environet existed before the emergency proclamation was issued. I do not know how the Army Corps’ contracting process works or will unfold for future munitions removal.

Asselbaye added:

I became aware of the munitions issue because the Army Corps of Engineers and the Department of Land and Natural Resources were concerned that the munitions clearing work might not proceed as required by their schedules. This put the goal of clearing our lands of unexploded ordnance in jeopardy. Because of the nature of this federal expenditure, if a solution was not found, the Army Corps would have moved its efforts to some venue outside of Hawaii. Given what’s happening in Washington, DC, it also seemed possible that this opportunity might not come back to Hawaii if it were lost.

“Senator Inouye’s office was not involved in this State discussion,” Asselbaye added.

[Revised 9/30/2011]

Millions in explosives-clearing contracts go to politically connected firm

Back to that work clearing unexploded weapons from sites on the Big Island. According to news accounts, the work is being done by a local company, Environet Inc.

It seems that one person’s dangerous unexploded bullets and bombs are another person’s gold mine.

According to the federal government site, www.usaspending.gov, Environet and its joint ventures have been awarded over $59 million in defense contracts since 2000, including $9.9 in FY 2011, $23.7 million in FY 2010 and $14 million in FY 2009, most for ordnance removal activities in Hawaii.

The company is a partner in ALE Environet JV LLC, a joint venture with Alu Like Enterprises, and Dawson Environet JV, a joint venture with Dawson Technical LLC.

According to state business registration records, Dawson Technical is managed by Hawaiian Native Corporation, controlled by the family of Beatrice “Beadie” Dawson.

The companies have benefited from so-called “set-asides” to benefit Native Hawaiian and women-owned companies, and as a result have landed many of the federal contracts that formerly went to mainland corporations.

Environet is owned by Joe Pickard, a familiar name around these parts. Here’s some of this background.

There was a mention here in November 2004 regarding Mufi Hannemann’s transition team.

Transition team member Joe Pickard gave $4,000 to the Hawaii Republican Party, according to a search of FEC records, and $2,000 to the Bush-Cheney campaign (with another $2,000 to Bush-Cheney from his wife). Again, on the other hand, Pickard contributed $500 to Democrat Ed Case, while both Pickard and his wife appear to have given the maximum allowed to Abercrombie this year ($2,000 each for both the primary and general). A $2,300 contribution to Lingle’s 2002 campaign was also recorded from Pickard’s wife.

Here’s something I posted in September 2005:

Thanks to Star-Bulletin reporter Crystal Kua for her story today on the quiet switch that resulted in Community Planning & Engineering being included as a subcontractor under the city contract for a key mass transit study. Kua reports public relations pro Kitty Lagareta, a key ally of Gov. Linda Lingle, is questioning the company’s last minute inclusion in the deal. And well she should.

Kua’s story fails to present enough background or perspective to appreciate why this is an issue. She describes Joe Pickard, president of Community Planning, as “Hannemann’s friend and political supporter.” True enough, but there’s more to the picture.

Pickard first entered the public spotlight a decade ago when he rode a wave of developer support in an unsuccessful attempt to unseat then-City Councilman Steve Holmes, a strong environmentalist who had earned the ire of developers and other corporate interests.

Pickard was mentioned here last year after being picked as a member of Mayor Hannemann’s transition team, reflecting his active campaign support, including contributions to two “independent” political action committees that also backed Hannemann’s candidacy.

Two companies controlled by Pickard, Community Planning and Environet, have also been major contributors to Gov. Linda Lingle with donations of $18,700 since 1998, state campaign records show.

Contributions to Linda Lingle by Pickard companies
1998-2005

Community Planning
5/5/98 $500

6/29/98 $3,000

6/11/02 $3,000

10/3/02 $3,000

6/23/03 $200

Environet Inc
9/5/02 $1,000

9/26/02 $2,000

5/2/03 $6,000

Community Planning was awarded six nonbid contracts worth more than $6.7 million by the Department of Hawaiian Home Lands during 2004. Environnet landed two nonbid contracts from the city this year valued at $800,000.

Then from January 2008:

You may recall Pickard’s record of contributions to Lingle’s campaigns, mentioned here back on 9/17/2005. I recently ran across his $10,000 contribution last year to the Hawaii Republican Party, which I mentioned in a Honolulu Weekly column.

His firm, Community Planning and Engineering, was the subject of a Jim Dooley investigative piece last year because of its many contracts awarded by the Department of Hawaiian Home Lands under the administration of Micah Kane, who previously served as Republic Party chair. Dooley says Pickard’s family has given $70,000 to the GOP, Lingle, and Lt. Gov. Aiona since 1998. He

Pickard grew up in Kahuku, where his family has played a pretty prominent role. He’s been politically active, was a developer-backed candidate for City Council a decade ago against environmentalist Steve Holmes, has also been a campaign contributor to Congressman Abercrombie, and was a member of Mufi Hannemann’s transition team. He was one of the founders of an effort to turn out Hawaiian voters in 2006.

Then another brief mention at the beginning of the 2010 campaign year.

Over on the Abercrombie side of the ledger, I was surprised to see Joe Pickard, president of Environet Inc and a former Hannemann backer, along with other members of Pickard’s family, give a total of $24,000. There must be an interesting political story there!

Influence Explorer, a data project of the Sunlight Foundation, quickly produced this a profile of Environet, which shows the company contributed more to then-Congressman Neil Abercrombie than to any other candidate. See if this link will work.

During much of the period, Neil was chairman of the Subcommittee on Air & Land Forces, House Committee on Armed Services, a position that could have given Neil some clout.

So can political connections help land federal contracts?

I’m guessing most of these contracts were awarded via the 8(a) program promoting minority-owned businesses.

Here’s a description from the Native Hawaiian Organizations Association.

The opportunity for full participation in our free enterprise system by socially and economically disadvantaged persons is essential if we are to obtain social and economic justice for such persons and improve the functioning of our national economy.

This philosophy expresses the foundation for federal programs encouraging minority business enterprise started in 1969. At that time, federal legislation granted preferential status in federal contracting under section 8(a) of the U.S. Small Business Act to qualified for-profit businesses owned by members of minorities. These so-called “8(a) firms” were allowed to receive federal contracts on a “sole source, non-bid” basis so long as the contracts did not exceed certain “thresholds”. This program still exists. The contract size thresholds today are $5.5 million, in the case of contracts involving manufacturing, or $3.5 million for all other contracts.

In 1990, qualified 8(a) firms in which a controlling interest is owned by a recognized Indian tribal organization or an Alaska Native Corporation (“ANC”) were given a special status. These firms are not restricted by the thresholds but can receive sole source, non-bid contracts of any size. These firms are dubbed “Super 8(a) firms”.

Later, Sen. Daniel K. Inouye (D -Hawai’i) introduced legislation that added firms in which a controlling interest was owned by a Native Hawaiian Organization (“NHO”) to the program. An NHO must be a non-profit organization incorporated in the State of Hawai’i by Native Hawaiians (of no specific blood quantum). The NHO in each case operates as an “umbrella” organization for its for-profit subsidiaries and, as long as it owns a controlling (51%) interest in each of those subsidiaries (i.e., corporations or limited liability companies), the latter can qualify as an 8(a) contractor, receive contract awards on federal jobs, and so forth.

I haven’t yet had a chance to unpack all of this information.

On the one hand, I should be happy that federal contracts are going to Hawaiian businesses supporting programs of social advancement in the Hawaiian community. That’s certainly better than profits leaving the state with mainland contractors.

But something about the campaign contributions, political influence, and public money leaves me with a queasy feeling in my gut. Perhaps it’s just a red flag waving a warning, a situation to watch out for, rather than an immediate issue. Frankly, I’m not sure.