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Guam Contractors’ Association

NEWS BULLETIN

Vol.54 Issue 1 JANUARY 2013

Road Map to Success


Smart, Safe and Secure Ad


CONTENTJANUARY

6

S.A.M.E.

10

COMMITTEE UPDATE

14

YOUR ENVIRONMENT

16

FEATURE STORY

22

PHOTO HIGHLIGHTS

26

TRADES NEWS

28

AROUND THE BENCH

30

MEMBER BENEFITS

32

NEW MEMBERS

14

Your Environment

16

Feature Story

The Chamorro word for “Mark; to mark a place such as where something is to be planted or attached” is:

siñåla

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your vision our reality At Hawaiian Rock Products, we are always ready to meet your construction needs. We have a fleet of over 200 construction vehicles and a workforce of over 300 employees. We operate state of the art facilities, strategically located throughout the island with the capacity to fulfill any project size requirements. Our vast fleet of equipment continues to expand along with the growing needs of the industry. We are here to provide you with the quality products and services you need, when you need them. 2008 Business Laureate

Building The Marianas Since 1958

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13-HRP-007 GCA “Your Vision�


THEDIRECTORS PRESIDENT James A. Martinez, GCA PAST CHAIRMAN William “Bill” Beery, Tutujan Hill Group CHAIRMAN Robert Salas, Landscape Management Systems VICE CHAIRMAN Tom Anderson, Black Construction SECRETARY/TREASURER Art Chan, Hawaiian Rock CONTRACTORS DIRECTORS: Tom Nielsen, Maeda Pacific Corporation Juno Eun, Core Tech International Mike Venezia, Hensel Phelps John Robertson, AmOrient Louis De Maria, dck pacific guam LLC ASSOCIATE DIRECTORS: Patty Lizama, Individual Assurance Company Paul Calvo, Calvo’s Insurance Carlo Leon Guerrero, M80 Office Systems Inc. Ray Yanger, Matson Navigation

THEEDITORIALS Guam Contractor’s Association (GCA) in conjunction with AdzTech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA. While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, staff, GCA members, GCA Board of Directors and advertisers. For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net. Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive, Suite 203, East West Business Center, Upper Tumon, Guam. To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: gca@teleguam.net. www.guamcontractors.org Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

THETEAM PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Tom Mendiola June Maratita PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland Tanya Robinson PHOTOGRAPHERS: Marty Leon Guerrero EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson David F. Macaluso Tammy Jo Anderson Taft Marty Leon Guerrero

Dr.Noel Silan DPM, ABMSP P.C.

GCA STAFF: Francine Arceo Desiree Lizama COVER: Profit Mastery, creating jobs, more money, staying positive on the road to success.


S.A.M.E.UPDATE

Guam SAME presents:

2012 IBC Fundamental Structural Provisions for Engineers, Architects and Builders February 20, 2013 Featuring Dr. S. K. Ghosh from

The Guam Post of the Society of American Military Engineers is pleased to be the Marquee Sponsor of the 20th February workshop intended to bring our region designers and builders up to date with current code requirements. We are fortunate to have an engineer of the caliber of Dr. Ghosh to conduct this workshop for us.

Why we need to know.... Guam recently moved from the 1994 edition of the Uniform Building Code (UBC) to the 2009 edition of the International Building Code (IBC) in part as the basis of the Building Code for Guam. For the users of the Building Code of Guam, this involves a steep transition, because the following model code editions were skipped: the 1997 UBC, the 2000 IBC, the 2003 IBC, and the 2006 IBC. Since the 2012 IBC will be implemented on Guam within the next 12 months, it will be the focus of this workshop.

This seminar is designed to help Guam engineers with the transition and move toward implementation of the new 2012 IBC. Design parameters for two natural hazards that are important in Guam, wind and earthquakes, have changed beyond recognition and thus, much of the workshop will be devoted to those two topics. Utmost efforts will be made to bring attendees up-to-date with the seismic and wind design requirements of the 2012 IBC and ASCE 7-10. Another area of important change is the relationship between the model code and its referenced standards. The IBC is increasingly reliant on its referenced standards. Starting with the 2006 IBC, structural provisions (with the exception of Chapter 17 Inspection and Testing and Chapter 18 Foundations and Soils) have largely been taken out of the model code. Chapter 16 provisions, which deal with design loads including seismic design provisions, are now largely by reference to ASCE 7-Minimum Deign Loads for Buildings and Other Structures. Code changes from ASCE 7-05 to ASCE 7-10 are substantial and will be discussed. The materials chapters (19 through 23) are largely by reference to the materials standards.Back in the days of the 1994 UBC, things were totally different. Adopted provisions of the referenced standards were reproduced in the UBC with modifications, which were made rather frequently, shown in italics. ASCE 7-88 was the latest available edition of ASCE 7; only Chapter 6 on wind of that document was referenced. Precast concrete construction is popular and important in Guam. There have been important developments in the ACI 318 standard and in our model codes in recent years. A brief overview of these developments will be presented. Precast/Prestressed Concrete Institute (PCI) Manual MNL-140-12, Seismic Design of Precast/Prestressed Concrete Structure, Second Edition, by Ned Cleland and S. K. Ghosh will be introduced, and its contents briefly discussed.

Dr. Satyendra K. Ghosh heads the seismic and building code consulting firm, S.K. Ghosh Associates, Inc., in Palatine, Illinois and Aliso Viejo, California. He was formerly Director of Engineering Services, Codes and Standards for the Portland Cement Association in Skokie, Illinois and is Adjunct Professor of Civil Engineering at the University of Illinois at Chicago. Dr. Ghosh has influenced seismic design provisions in the United States for many years by serving on or chairing several committees and advisory panels. He played a major role in the development of shear wall design provisions of the 1994 UBC and the precast concrete design provisions of the 1997 UBC. Dr. Ghosh has long been a provider of continuing education related to structural provisions of building codes to the structural engineering profession and the code enforcement community. His books and other publications on earthquake-resistant design are widely used by those in design practice. Read more about Dr. Ghosh at http://skghoshassociates.com/people/skghosh.

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Sponsors will be entitled to advertising/recognition, a corporate sponsorship table set-up in the lobby during the day of the event, . We look forward to your support and attendance at this important workshop. Continuing Education credit hours for attendance will be available.

Endorsement & Support – Private Sector- Table Top provided in Lobby for advertising if requested Current endorsements: SAME Guam Post; Guam Society of Professional Engineers; American Institute of Architects; ASHRAE Guam Chapter; Guam Contractors Association; Guam Chamber of Commerce; Saipan Chamber of Commerce and Tinian Chamber of Commerce.

Endorsement Support – Public Sector- Table Top provided in Lobby for advertising if requested Current endorsements: Board of Professional Licensing; Guam Building Code Council; Guam Department of Public Works; University of Guam Engineering Department and Saipan Department of Public Works

Marquee Sponsor $2,500 –

+

Logo recognition in handout

Platinum Sponsor $2,000 – Includes table top in lobby + 3 admissions + Logo recognition in handout Gold Sponsor $1,500 –

Includes table top in lobby + 3 admissions + Logo recognition in handout

Silver Sponsor $1,000 –

Includes table top in lobby + 3 admissions + Logo recognition in handout

Bronze Sponsor $500 –

Logo recognition in handout

Attendees ± $75 per person (to be determined)– For more information, please contact christine.pascus@hdrinc.com On behalf of the Guam Post of the Society of American Military Engineers, we thank you for your valuable time and appreciate your consideration in sponsoring this educational event. It is a great opportunity for the island and we seek your assistance with this endeavor.

See you at the Workshop!

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S.A.M.E.UPDATE

~How you can support this unique opportunity~


COMMITTEUPDATE

Military, Government and Labor Relations Committee Update – January ‘13

UPDATE ON REALIGNMENT OF FORCES IN THE WESTERN PACIFIC gratulations and our thanks to all those who have contributed to GUASA.

By John M. Robertson

The House and Senate Conference Committee brought reconciliation to the National Defense Authorization Act for FY 2013 (NDAA 13) and it was signed into law by the President earlier this month. The budget includes some projects for Guam. The freeze on spending for the realignment of forces in the western pacific was partially lifted. Not all bad news this time around. In February of 2012, when the Administration sent over the proposed Defense Budget, right out of the box the Senate stated emphatically (section 2208) that there would be no expenditures for projects on Guam. With the start of GUASA the objectives were two fold for this past year. One to ensure the buildup eventually happens; and two, that somehow we break through the restriction and at least get some funding for Guam. The NDAA has funding for a little over $100 million plus another $58 million of approved funds for the Sasa Valley to Andersen AFB pipeline. Not bad – GUASA did not do this by itself of course but when relationships with certain Senators help tone down the rhetoric about Guam from Levin-McCain-Webb and nudge some progress on the SASC; when a close relationship is developed with Adam Smith the minority Chairman of the HASC who really went to bat for Guam, and when certain professional staff become so convinced Guam is the right move that they assisted in the massage of the final language, you know GUASA at least played an important part. We can say with certainty that it would not have happened without the lobbying effort put forward and paid for by GUASA. In the final analysis, some of the Japanese money, which is not specifically tied to the EIS, can now also be used as a funding source. Con-

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In recent weeks Japan transitioned back to a conservative Government with Shinzo Abe as the new Prime Minister. He and his Deputy Prime Minister and Minister of Finance Taro Aso negotiated the initial agreement with the US. They are already saying that they must stick to the agreement and get it done. That is good news for Guam as well. The Navy has broken off negotiations with the current operator of the Guam Ship Yard and has opened the way for new competition. There was only one Offeror the last time around. This appears to mean that they are looking at increased capacity here in the westernmost U.S. territory and less foreign repair. The start of rotation of Marines to Guam for training has begun, using facilities built for construction workers at Ukkudu Village. All of the foregoing signals that lots of things are moving. A senior military officer stated recently that in the Pentagon it seemingly is all about Guam and to "get er done" ‐ we are moving in the right direction. Influencing decisions in business and politics comes in many different forms. GUASA is doing the right things for Guam and our industry and has justified its existence and the support it needs from all of us. SUPPORT FOR GUAM FROM THE PENTAGON In a report titled “DEPARTMENT OF DEFENSE CONCERNS WITH H.R. 4310 AND S. 3254” attached to a 1 December Letter from Secretary of Defense Leon Panetta to Senator Carl Levin, Chairman of the Senate Armed Services Committee (SASC) the following direct quote pertains to Guam: “The Department strongly objects to the limitations imposed by Senate section 2208 on the obligation and expenditure of United States and Government of Japan funds to implement the realignment of

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the U.S. Marine Corps units from Okinawa, to which the United States remains steadfastly committed. The provision would unnecessarily restrict the ability and flexibility of the President to execute our foreign and defense policies with our ally, Japan. In April 2012, the United States and Japan announced a new plan to implement the realignment of U.S. forces from Okinawa to Guam. Prohibiting the use of funds could adversely impact the United States' ability to move forward on the new plan. Additionally, the Department has serious concerns over the lack of authorization of appropriations for public infrastructure projects, as well as two military construction projects; essential upgrades to the fuel pipeline from Apra Harbor to Andersen AFB, and a parking apron at the North ramp that would provide theater-wide strategic capability. The reduction of $233 million would impede the implementation of our new defense strategy, which calls for an increased focus on the Asia-Pacific region.” The Senate and the House of Representatives responded favorably to some but not all concerns of the Secretary. FY13 NATIONAL DEFENSE AUTHORIZATION ACT – Highlights of the Conference Report The following is from a report by the Chairman, House Armed Services Committee and does not align in important aspects with positions articulated by the Department of Defense. The National Defense Authorization act (NDAA) for Fiscal Year 2013 as approved on 18 December is the key mechanism to provide necessary authorities and funding for America’s military. This is the fifty-first consecutive NDAA. The bill meets HASC member goals and presumably the SASC goals of providing resources to meet the threats America faces; keeping faith with America’s men and women in uniform; aligning our military posture in a dangerous world, and rebuilding a force after a decade at war. The House version of the bill, H.R. 4310 passed the House in May by a bipartisan vote of 299-120. The Senate

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KEEPING FAITH WITH WARFIGHTERS AND MILITARY FAMILIES: The FY13 NDAA provides war fighters and their families with the care and support they need, deserve, and have earned; while ensuring that proposed drawdown plans do not cut to the heart of the Army and Marine Corps. Vital provisions include: Troop Pay: The FY13 NDAA authorizes a 1.7% pay increase and extends bonuses and special pay for our men and women in uniform. Tricare: The FY13 NDAA restates the firmly held sense of Congress that access to quality health care services during retirement is a benefit earned though prior service to our nation. End Strengths for Active Forces: The Armed Forces are authorized strengths for active duty personnel as of September 30, 2013, as follows: (1) The Army, 552,100. (2) The Navy, 322,700. (3) The Marine Corps, 197,300. (4) The Air Force, 329,460. ALIGNING MILITARY POSTURE IN A DANGEROUS WORLD: The NDAA ensures that America’s military is robust, flexible,

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and capable. The bill will provide our warfighters with the time, resources, and authorities they need to win the war in Afghanistan and continue to prosecute the wider War on Terror. ø Afghanistan: The NDAA addresses the critical transition period between now and 2014. The bill reauthorizes vital authorities for commanders on the ground and key programs to assist the transition, including building Afghan National Security Forces. The NDAA requires presidential notification of any change in force level in Afghanistan and the associated risk of such a change in force level. ø Insider Attacks. Reflecting Conferees’ deep concern on the increasing trend of “green on blue attacks” the NDAA imposes reporting requirements on insider attacks in Afghanistan, as well as a certification on the vetting and professional standards of the Afghan Public Protection Force for the provision of security on installations where U.S. Forces are present. Global Challenges: Requires Combatant Commanders to give their assessment of capability gaps against North Korea, China, and Iran. (Note that two are Guam’s nearby neighbors) ø Space. Provides additional funding for national security space programs, approximately $50 million above the Administration’s request. ø Cyber. Increases oversight of cyber operations and capabilities. ø Science and Technology. Supports several key areas of science and technology investments to ensure the Department meets future defense need. Auditability: Implements recommendations from the HASC Financial Management and Auditability Reform Panel that will improve execution and management of Department of Defense Enterprise Resource Planning systems. Competition and Innovation: The FY13 NDAA introduces bipartisan reforms aimed at the way the Defense Department interacts with the private sector, opening more opportunities for small businesses, increasing competition, and spurring innovation. It also requires the Secretary to develop a national security strategy for the industrial base and eliminates obstacles to small business competition for Defense Department initiatives. Iran: Asserts that the U.S. should be prepared to take all necessary measures, including military action if required, to prevent Iran from threatening the U.S., its

allies, or Iran’s neighbors with a nuclear weapon and reinforces the military option should it prove necessary. Strategic Forces: Modernizes and supports DOD’s nuclear forces, including intercontinental ballistic missiles, nuclear bombers, cruise missiles and the Navy’s strategic submarines and submarinelaunched ballistic missiles. Special Operations Forces: Enables Special Operations Forces to sustain the current fight and rebalance across the globe where appropriate to counter and mitigate threats, and work with partner nations. ø Preserves and institutionalizes other capabilities such as irregular warfare and security force assistance within the services and U.S. Special Operations Command. ø Authorizes an additional $159 million to fulfill a critical unfunded requirement identified by the Commander of U.S. Special Operations Command for high-definition Intelligence, Surveillance, and Reconnaissance capabilities. REBUILDING A MILITARY TESTED BY A DECADE AT WAR: The FY 13 NDAA restores and retains vital systems, platforms, capabilities, and authorities needed to maintain America’s combat power after a decade of war. It also invests in capabilities necessary to meet the challenges of the future. The bill declines to take up Administration requests, such as two rounds of base closure, which could damage vital military infrastructure. Retaining Vital Systems: ø Navy Cruisers. Restores funding for at least three Navy Cruisers that were scheduled for early retirement while they each had at least a decade of service life ahead of them. ø Intra-theater airlift. Based on known capability gaps and shortfalls, preserves intra-theater airlift capabilities crucial to DOD’s ability to support warfighters on the ground with agile combat support by maintaining tactical airlift aircraft proposed for premature divestment. ø Requires DOD to define global mobility requirements for strategic airlift aircraft before proposing retirement of strategic airlift aircraft that may be needed to support the new defense strategic guidance. ø Global Hawk. Retains the Air Force's Global Hawk Block 30 unmanned intelligence, surveillance, and reconnaissance aircraft as they support the deployed warfighter, rather than shifting this asset

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COMMITTEUPDATE

passed their version, S.3254 in December 98-0 after almost a full year of debate. Resources for a Dangerous World: The FY 2013 National Defense Authorization Act reflects concern about America’s mounting debt, but also ensures that our Armed Forces have the resources they need to meet an increasingly dangerous world. It also recognizes that the military has absorbed 50% of deficit reduction efforts to date, though it comprises only less than 20% of the federal budget. Authorized Funding Levels: The bill authorizes $552.2 billion for base national defense and $88.5 billion for Overseas Contingencies Operations. This is $1.7 billion above the President’s budget request, and is an incremental step to address the $46 billion decrease when considering where the President proposed National Defense would be for fiscal year 2013 in last year’s budget. Both the President’s budget request and the House-passed budget authorized National Defense above the Budget Control Act; however, in crafting the House budget, the House was careful to identify other non-defense sources to accommodate the needed increase in national security accounts while reducing the overall funding below the BCA cap.


COMMITTEUPDATE

to storage. (Note, a Global Hawk squadron is based at Andersen AFB) ø Heavy Armor. Sustains America's heavy armored production base by maintaining minimum sustained production of Abrams tanks, Bradley fighting vehicles, and Hercules recovery vehicles. Investing in Future Capabilities: ø Airborne Electronic Warfare. The FY13 NDAA maintains the option for additional airborne electronic warfare capabilities by supporting advance procurement for the EA-18G Growler. ø Counter-IED. Supports counter-IED funding for the warfighter. ø Fully funds the Army Ground Combat Vehicle development program. ø Aircraft. Fully funds requests for 50 AH-64 Apaches, 59 UH-60 Blackhawks, and 44 CH-47 Chinooks, 29 F-35 Lightning II aircraft, 26 F-18 E/F Super Hornets, V-22 aircraft, 36 MQ-9 Reaper UAS. ø Resources underfunded critical dual-use equipment requirements for Guard and Reserve forces. ø Submarines. Increases the authorized multi-year procurement from 9, to up to 10 Virginia class submarines. ø Destroyers. Increases the authorized multi-year procurement from 9, to up to 10 DDG-51 Arleigh Burke class destroyers. ø Limits the DOD’s ability to spend FY13 Defense Production Act funds on biofuel refinery construction until they receive matching funds from the Department of Energy and the Department of Agriculture. PRESERVING AIR GUARD AIRCRAFT AND MANPOWER: Conferees held significant reservations with respect to the Air Force’s plans for maintaining and divesting important assets, specifically equipment and assets in the Air National Guard. The FY13 NDAA embraces what the Congress believes is a balanced approach that better accommodates known Air Force requirements, current Air Force readiness and operational tempo, the need to maintain “defense in depth” with National Guard and Air Force Reserve capabilities, emerging mission requirements, and the reality that defense resources are declining across the Department. The FY13 NDAA requires: ø The Air Force will be required to integrate the Army’s Time Sensitive / Mission Critical mission and concept of operations into Air Force doctrine, strategy, modeling and operations by June 1, 2013. ø Stops retirement of 26 C-5A aircraft, holding the strategic airlift total at 301 air-

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craft, until DoD completes a comprehensive study of air mobility requirements. ø Requires the Air Force to maintain an additional 32 C-130 or C-27J tactical airlift aircraft, beyond the Air Force’s new plan, to meet the Army’s requirement of 40 dedicated aircraft to support Time Sensitive / Mission Critical direct support airlift. ø Permits the Air Force to continue with prior FY 13 aircraft divestments, transfers, and retirements. 2013 Outlook: BUDGET CUTS WILL HAMMER DEFENSE INDUSTRY The Defense Department and its contractors, according to writer Sandra I. Erwin, begin 2013 with hope for a March deal that will shield the Pentagon from a 10 percent budget cut. But even if Defense is spared from the sequester, the business climate for Pentagon contractors will be bleaker in 2013, analysts predict. Whereas the defense budget top line peaked in 2010 and has only dipped slightly, projected spending on new equipment already has declined by one‐third since 2008 and is on a path to go down another 10 to 15 percent, says Erich Fischer, a partner at the consulting firm Booz & Company. The reductions in procurement spending have not yet hit home for many companies because the actual outlays of funds lag behind budget projections by two to three years. The budget began to come down in 2008, outlays peaked in 2010 and companies are now starting to feel the effects of a drying funding stream, Fischer says. Another trend that bodes badly for defense firms is that weapon acquisitions budgets continue to be squeezed by rising military personnel, health and operations expenses. “Some businesses are seeing decline up close and personal for the first time,” says Fischer. The reality for industry is likely to be a 40 to 45 percent plunge in procurement spending since 2008, which is consistent with, or even less severe than, the previous defense downturn, Booz analysts estimate. As a result, “2013 is when you will see industry begin to take real action” to cope with a shrinking market, Fischer says.

is still saddled by huge fixed costs in unneeded facilities. “The headcount reductions we have seen are emotionally difficult but the easiest to address. You’ll see more,” Fischer says. About 40 percent of industry overhead is in facilities, he says. Assuming that procurement spending falls by 40 to 45 percent from its peak, industry still needs to shed $20 billion to $25 billion of fixed overhead, he says. The government could help propel industry efficiency if it offered to share some of the savings, Fischer says. The single largest barrier to internal corporate consolidations is that the downsizing doesn’t give companies an immediate boost to their bottom line, he says. On the government side, the same excess capacity problem exists. Structural costs have been baked in over the past decade of soaring budgets, Fischer says. “It takes two [both industry and government] to make the solution work.” Defense Secretary Leon Panetta has called for new rounds of base closures, but Congress has soundly rejected such proposals. “There is pressure on the Department to retain excess force structure and infrastructure instead of investing in the training and equipment that makes our force agile, flexible and ready,” Panetta says in a Dec. 18 speech. He criticized the House and Senate Fiscal Year 2013 defense authorization bills for “needlessly diverting $74 billion over the next decade into programs, equipment and activities we don’t want or need.” Some defense companies have the skills and equipment to diversify into commercial markets, but Pentagon contractors have a mixed track record in that area. “The jury is still out,” says Fischer. “Fundamentally it’s whether commercial business models can coexist with traditional defense business models.” But he cautions that commercial products increasingly will dominate the defense market.

The largest Pentagon contractors have moved aggressively over the past two years to shed overhead, mostly by eliminating staff. The industry overall, however,

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YOURENVIRONMENT

86 Radon (222)

By: Tammy Jo Anderson Taft - Public Information Officer, Guam EPA Radon is easy to forget about. It doesn’t smell. You can’t see it. It doesn’t cause any changes to buildings or have noticeable impacts on air quality. The biggest problem with Radon is the fact that it causes cancer. It is believed that radon causes approximately 14,000 to 21,000 deaths every year in the U.S. by causing lung cancer.

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Despite it’s deadliness, radon can be easily diverted out of buildings through post-construction alterations or planning for radon throughout the building process.

NATURAL BUT DANGEROUS Radon is natural. It is created when Uranium in the soil breaks down and releases Radium, which then breaks down into radon. You can find radon almost everywhere in the world, the problems only occur when you build a home or office on top of soil releasing radon and do not stop or vent the radon gas as it enters your building. Unlike chemicals or smoke, there is no quick and easy way to detect radon using sight or smell. It’s colorless. It doesn’t smell. The only way to know if you have high levels of radon is by using a test kit available at various hardware stores. Without the immediate triggers of seeing or smelling radon, it’s hard to tell if you are being exposed to this dangerous gas at high levels for long periods of time. This is where problems begin. Individuals breathing in high amounts of radon over a long period of time can develop lung cancer. Radon particles enter the lungs, continue to decay and release energy. This energy damages

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the DNA found in lung tissue and can cause damaged DNA to become cancerous cells. After smoking, radon is the leading cause of lung cancer in the U.S.

PRESSURE AND BUILDUP Radon is a gas. The problem is that wind and rain cause pressures in the soil. That can force gases within the soil to enter a building as it is easier than fighting the wind and the rain. When gas from the soil enters the

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building, it can easily build up over time. Image the cracks or joints at the base of a building. If your building is in an area with high levels of radon in the soil, it is possible those cracks and joints are slowly seeping radon gas into the building without your knowledge. As this radon builds up, it increases in picoCuries per liter(pCi/L) of air. U.S. EPA has identified air with 4 pCi/L or more to be dangerous to human health.

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MITIGATION Houses and buildings that test high for radon can be mitigated. These systems can be passive or use motors to reduce the amount of radon gas in the home and entering the home. No matter what type of mitigation is used it must be effective, quiet, permanent and durable. Mitigation systems also have to have an exhaust system above the highest eve of the house to ensure the radon is not blown back into the building. The most common approach is creating a vacuum beneath the foundation that is stronger than the vacuum in the soil around the house. By making it harder for the gas to seep into the home and easier for the gas to escape through the soil around the home instead, the radon will avoid the foundation area. This type of mitigation is called Active

Soil Depressurization (ASD) and Subslab Depressurization (SSD). These methods typically cost less than $3,000 and consist of a plastic pipe with a fan that discharges radon outdoors. Installing one of these systems typically requires cutting a hole in the slab of the house, digging out a pit, installing PVC and the fan to suck the gas from beneath the slab.

PLANNING AHEAD Communities and those building communities have another option, RadonResistant New Construction (RRNC). Using RRNC techniques ensures the home or building does not have a buildup of radon gas, and helping reduce the buyers’ risk of lung cancer. This type of construction can be important as a selling point for healthconscious home buyers in Guam.

construction mitigation may cost a few thousand. Although Guam building codes don’t require RRNC techniques to be applied as part of the building code, but they may soon to help protect the health of island residents. We can all do our part now, before the building codes change. Incorporate the dangers of radon into the discussion when building or renovating structures. It’s one discussion that can literally save lives and help the occupants breath air that doesn’t contain cancer-causing particles. Mitigating for radon is easy. Dealing with the effects of radon is physically and emotionally difficult. Keeping radon out of buildings is the easy and right thing to do.

The main benefit of using RRNC is that it is much cheaper than postconstruction mitigation methods. Building a house to be radon resistant usually only adds a few hundred dollars to the overall cost. Post-

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The highest radon reading taken in Guam was 350 pCi/L. This much radon is considered harmful and it’s recommended any readings over 4 pCi/L investigate mitigation options.


Road Map To Success by David F. Macaluso

Cause-and-Effect relationships leading to financial distress

Pacific Islands SBDC Network Director Casey Jeszenka


Profit Mastery was formed by Steve LeFever from a Seattle company called Business Resource Services Inc. Profit Mastery was developed and is taught by LeFever, who was a former employee of Seafirst Corporation, a Seattle Bank Holding Company that was formed on November 11, 1929 and was eventually acquired by Bank of America Corp in 1983. While at Seafirst Corporation, LeFever tried to figure out a way to have clients from the bank to be more successful in their businesses so the bank had better clients to lend money to. LeFever designed Profit Mastery to allow people to tailor the concepts for their organization and to provide real tools to help all businesses to survive and thrive.

According to Pacific Islands SBDC Network Director Casey Jeszenka, Profit Mastery is one of the best financial courses he has ever seen. He said its a success because it combines this course with world-renowned speaker LeFever, who explains everything in plain English. Senators from around the region such as Guam, Palau, Marshall Islands, Yap, Chuuk, Kosrae and CNMI have attended the Profit Mastery course.

“You may know you are losing money in your business, but may not know exactly where, this road map helps you identify where the loss is coming from,” said Jeszenka. “I’ve never seen anything like this in all my financial training that teaches you how to improve your business by identifying where your leakages are. This map also has a way to compare your sales, what you need, vendor credit, loans, and equity.”

“The beauty of this program is that you don’t have to be a banker, accountant or financial wizard to understand this course. This course can help a person who has little knowledge in this field but may have an interest in running their own business,”said Jeszenka. “I’ve seen people walk out of the workshops literally with light bulbs turning on over their heads. It’s like the are getting it and understanding how the course is taught. That is why I started bringing profit mastery to Guam.”

Profit Mastery teaches you how to better run your company, make you be able to handle your finances and know the position of your business. A time may come when you need to expand your business, you will have everything in order so when you talk to a loan officer from the bank you will know exactly why you need the money and where the issues are. Most people expand their business, they think that they need to buy a certain piece of equipment that may cost X amount of dollars, but they forget to look at their cash or inventory needs.

Profit Mastery teaches you how all of your financial statements tie in together. The course actually provides you with a road map that teaches and identifies where a business is losing money compared to the industry average.

Jeszenka adds, “In the past I had a lot of financial training, which includes college undergraduate courses to graduate studies, have i seen anything like this. I’m a real strong endorser of this program. As a

SBDC facility at UOG

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JANUARY2013 | 17

FEATURESTORY

For over three decades the Small Business Development Center Network has been aiding clients with services designed to help start, maintain and grow small business on Guam. One way SBDC is helping local businesses is by offering courses to educate small business owners. Profit Mastery is a course that has been well received by local businesses, in fact it has been brought to Guam four times, the last time was this past November (2012).


FEATURESTORY

matter of fact, Bank of Guam President Lou Leon Guerrero attended one of our first sessions and since then she had LeFever come back to Guam twice to talk to her upper management.” Profit Mastery is designed for any kind of business because it compares your business to the industry average to help your company run more efficiently. If the build up ever comes, there is going to be a lot of rapid growth within the island. Usually people may think they are in a good position with rapid growth, but during this time businesses will put a lot of money out, but the receivables may not come in as quick. That’s where businesses may run into cash flow problems causing companies to go broke and out of business. During this time businesses have to be diligent and manage their sales. Experts believe that during a rapid growth for a potential military buildup, there could be a five year boom, but then afterwards there will be a decline, maybe even a recession. If and when this buildup comes, businesses have to be prepared and financially sound. The Pacific Islands Small Business Development Center Network (SBDC) is a technical assistance arm of the U.S. Small Business Administration. It’s located at the University of Guam, as a resource to provide free counseling, expert business advice, and guidance. It also offers a lot of low cost training. SBDC’s purpose is to help start, sustain and grow small businesses. It also provides help with business planning, develops new market strategies, offers training on quickbooks for record keeping, helps small companies with loan packages so they are ready and prepared before they bring it into the banks. In addition, SBDC works with all Federal Deposit Insurance Corporation (FDIC) members on Guam. The most common mistake people make when they come to SBDC is not knowing what kind of business to start. Jeszenka explains, “ People will often ask me which business is a good one start. I will usually tell them, if I knew that answer I would probably be doing it myself and be rich. I will always advise people, whatever business they

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decide to do, to pick a business they have passion for and the skills to do it. You shouldn’t come here (SBDC), sit down and ask what's a good business to be in. If you do that, you don’t have passion for it and you won’t take pride in it. People will just end up throwing their money away and will be out of business because they won’t know how to run their company. Anyone who starts a business should definitely have some kind of knowledge and the drive to do it, because if you don’t, you won't succeed.” Entrepreneurs often leave a good salary job working only 40 hours a week. But if they start thier own company they might end up making half the money and work twice the amount of hours. But those are the sacrifices you may need to do when a business first starts. With the proper drive and determination a person will keep the business going and eventually, if done properly, it will be profitable. According to Jeszenka, the reason why most businesses fail is due to a lack of or improper record keeping. The people may know about their products and services, but they don’t know or keep track of the cash flow. Sometimes there is a lack of business plan, need to develop a market strategy and work on target markets. A business plan should be a living document that’s always changing whenever the market charges.

young man would end up winning the small business person of the year award. “To help someone with a humble beginning, who doesn’t have a business, get them started, seeing them grow and then eventually succeed..... that is so rewarding to me,” said Jeszenka. If anyone needs SBDC’s helps getting a small business started, they can be reached through its website at www.pacificsbdc.com and register online. Counseling is free of charge and training is kept at a low cost. Another Profit Mastery course will come to Guam this February. It will be taugh exactly the same way, but instead of flying LeFever from Seattle to Guam, this time the course will only have a video of LeFever. Jeszenka said, “Presentation is done so well and is compacted with so much information you will forget you are watching a video.” For more information about the upcoming Profit Mastery course coming in February please visit www.pacificsbdc.com

“Nothing ever goes as planned, but you may need to make changes, be flexible and adjust to the economy and market. We at SBDC are also encouraging people to step outside of Guam and venture into places like Japan, Hong Kong or the Mainland,” said Jeszenka. Jeszenka has been helping people for over 15 yrs. He recalls helping a client shortly before moving from Montana to Guam. His client was a young man who was a chef at a country club. He had dreams of opening his own deli, but he had terrible credit and no collateral. Jeszenka was creative and found a way to help this young man. He learned that the client had grandparents who owned a home in Massachusetts. Jeszenka eventually found a Montana bank that would take a loan using the out of state property as collateral. A few years later that

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PHOTOHIGHLIGHTS

Special Olympics Guam Golf Event December 15th, 2012 Admiral Nimitz Golf Course

22 | JANUARY2013

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PHOTOHIGHLIGHTS

oration ident of Ian Corp Ian Chong Pres the Catholic of t or pp 00 in su donated $3000. Day Care. Northern Adult Social Services wife and Vice r. Chong is his Pictured with M . JiHyung Corporation Mrs President of Ian Chong olic Social director of Cath And the deputy sse Catahay. Services Mr. Je

GCA’s CAP Launch January 11th, 2013 Malolojo Mayor’s Office

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TRADESNEWS 26 | JANUARY2013

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AROUNDTHEBENCH

Protect the It seems to me that whenever I spend a significant time outside doing yard work on those days that seem to be hotter than Hades, a voice from inside yells out “ Put a towel around your neck so it won’t get burnt”. That’s the sound of a concerned wife trying to prevent a condition we call “Burnt Neck”, common to those of us who enjoy taking advantage of the weather our beautiful island has to offer. Being a tropical paradise, Guam has its days that seem almost unbearably HOT! Even with these days as common as ever, they don’t seem to hamper the progress of our islands construction. Which got me thinking…how do our tough men and women of construction deal with the sun and the heat that it brings? Well, after a little bit of research, I’ve realized that we can be very creative

28 | JANUARY2013

Neck

as far as beating the heat and those intense rays from our sun that seem to be intentionally aimed right at our necks.

From the large sombrero hat that provides shade wherever you are on the job site to the wet towel around the neck to the commercial frozen gel packs designed to be worn around the back of the neck also used for extending the shelf life of that days lunch to over the counter sunblock, we all have our preferred techniques we use to stay as comfortable as possible while getting the job done. We can go on forever touching on all those different and creative ways. Unfortunately I’ve only been allowed one page to offer insight on this subject. The bottom line is, it is important to be comfortable and happy under that hard hat and reflective clothing

CONSTRUCTION NEWS BULLETIN

adorned by our hard working crews around the island. Staying cool and comfortable prevents us from making hasty decisions leading to shoddy work, affecting the safety aspect of the project. These scenarios cost the contractors thousands of dollars in corrections, damage control, lawsuits, and whatever consequences these rushed jobs create. Besides, at the end of a long and successful construction career, who wants a neck that’s the shade of that last steak that you forgot to take off that hot Weber grill, that you try to pass off as “blackened”, and as calloused and as tough as the baseball glove you’ve had since pony league that you recently found in the back of the storage closet stiff and almost brittle from age, that caused you to reminisce about the good old days and forget what the heck were you looking for in the first place.

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MEMBERBENEFITS

The undiagnosed & common condition Numbness to the lower extremities can manifest due to different medical conditions. Herniated disc, spinal stenosis, piriformis syndrome,tightness of the iliotibial band, tarsal tunnel syndrome, vitamin deficiencies, alchoholism, arthridites, tumors, strokes, multiple sclerosis and diabetes all can cause numbness to the legs/feet.

Dr.Noel Silan, DPM ABMSP

The topic discussed today is a condition commonly undiagnosed and even more commonly left untreated. This condition is called Diabetic Neuropathy. Statistically due to the high incidence of Diabetes on Guam its existence may be more prevalent than one thinks. Diabetic neuropaty affects the small arteries of diabetic patients which in turn affects the nerves of the lower extremities. The poor blood flow in the small arteries decreases oxygen, vitamins and nutrients all vital to nerve health and function. With prolonged ischemia to the nerve it affects the myelin sheath which in turn starts the symptoms of diabetic neuropathy.

The symptoms of diabetic neuropathy can be varied. Numbness, tingling, burning, itchiness, ants crawling , imbalance and even fatigue are all symptoms of Diabetic neuropathy. The symptoms can occur at any time, during the day while at work but most especially more pronounced when asleep. When diabetic neuropathy affects the sleeping cycle it leaves the patient without rest, in pain and the pathological cycle repeats itself the following day rendering the body the inability to heal itself. Asides from the neuropathic component diabetic neuropathy is a big risk factor for diabetic infections and amputations. This is why diabetic neuropathy should not be taken lightly and accepted as part of being diabetic. When diabetic patients have decreased sensation they can actually step on a nail or glass without even feeling it. This in turn leads to an infection, unexpected hospitalization and possible amputation. This is the reason why diabetic patients end up in the hospital emergency rooms so frequently. All statistics show bad outcomes in morbidity and mortality once a diabetic has an amputation. This is why prevention is key and treating

Guam Foot Clinic

diabetic neuropathy vital when dealing with diabetic infections. Once on a treatment plan for diabetic neuropathy one will see gains not immediately but after a couple of weeks to months of therapy. Like all successful treatment programs, the important thing is to maintain the treatment plan once you notice the improvements. The symptoms of painful numbness usually takes a couple of weeks for it to start subsiding. Fatigue of legs one to two months. It is always important to employ exercise along with anti-platelet therapy, as studies have shown that collateral blood vessels may form. The treatment plan for diabetic neuropathy can be varied and complicated. From OTC medications, topical analgesics, vitamins, prescription sedatives, pain management, physical therapy, diet, exercise, controlling blood glucose levels, smoking cessation, controlling cholesterol and anticoagulants. The treatment may include pain management, anti-platelet therapy and controlling one’s blood sugar. Whatever the treatment plan is, once diagnosed it is best to design one that best fits your pain with your Endocrinologist and Podiatrist.

Express Med Pharmacy Bldg138 Kayen Chando St. Dededo, Guam 96929 • (671)633-3668 wk • (671)647-0027 fax Dr.Noel Silan DPM, ABMSP P.C.

D ia be t i c F o o t Prob l ems • Go u t • S por ts/W or k Related Injur ies • Skin Disea s es • Sur ger y 30 | JANUARY2013

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NEWMEMBERS

JANUARY 2013 Contractor: Architectural Painting Services, LLC Alaka’I Pacific, Inc. P.O.Box 24110 Barrigada, GU 96921 GCA Contact: Rick Guerrero Email: rguerrero@alakaipacific.com Ph: 671-637-2800 Description: Duct Fabrication/Mechanical Citi Development & Construction, Inc. 545 Chalan San Antonio, Ste. 310 Tamuning, GU 96913 GCA Contact: Rong Bobby Sachdej Email: bobby@guam.net Ph: 671-647-3368 Fax: 671-646-8906 Description: General Contractor Guam HNC Inc. P.O.Box 6308 Tamuning, GU 96931 GCA Contact: Hyun Chul Jung Email: jhc9936@hnceng.com Ph: 671-969-7931 Fax: 671-969-3206 Description: General Contractor

Vital Energy, Inc. Ste 212 ITC BLDG 590 South Marine Corps Drive Tamuning, GU 96913 GCA Contact: Jonathan Perez Email: jonathan.perez@fsmpc.com Ph: 671-649-3366 Fax: 671-649-3367 Description: Petroleum Company

Associate:

NOVEMBER 2012

Joy’s Restaurant, Inc. 255 Chandiha St. Macheche Dededo, Gu 96929 GCA Contact: Elizabeth San Nicolas Email: joysrestaurant.inc@yahoo.com Ph: 671-633-5699 Description: Food Caterings, Food Service, and Restaurant

Associate: One-Pacific 545 Chalan San Antonio Ste 312 Tamuning, GU 96913 GCA Contact: Tony Tedtaotao Email: gu@one-pac.com Ph: 671-647-1100 Fax: 671-647-1122 Descripton: Drug & Alcohol Testing Services Ripple Industries, LLC P.O. Box 4142 Hagatna, GU 96932 GCA Contact: Aaron Burger Email: rippleguam@gmail.com Ph: 671-686-9040 Description: GIS Mapping

Associate: 1AM Foil Express Awards & Recognition. 288 West Route 8 DHSP Plaza, Ste. 105 Barrigada, GU 96913 GCA Contact: Rachel A. Lizama Email: amfeprinting@gmail.com Ph: 671-734-3645 Fax: 671-734-3646 Description: Retail- Awards, Engraving, Stamps, Printing Isla Logistics P.O.Box 12566, Tamuning, GU 96931 GCA Contact: Michael Mendiola Email: m2k@guam.net Ph: 671-688-6900 Description: Freight Logistics

OCTOBER 2012

Paulsen Productions, Inc. 414 W. Soledad Suite A-12, Hagatna, Gu 96910 GCA Contact: Gerald Paulsen Email: info@paulsenproductionsinc.com Ph: 671-686-5202 Fax: 847-741-6343 Description: Professional Development/Business Consulting The Accounting Solutions 130 Aspinall Ave Ste 1-B Hagatna, GU 96910 GCA Contact: Barry Wilson Email: barry.wilson@tasguam.com Ph: 671-477-0963 Fax: 671-477-0964 Description: Accounting and Tax Services

Contractor: Asian Construction Development P.O.Box 26562 GMF, Guam 96921 GCA Contact: Marcelo Moises Email: moisesguam@yahoo.com Ph: 671-486-7355 Fax: 671-632-2105 Description: General Construction

Martin Apartments P.O.Box 3269 Hagatna, GU 96932 GCA Contact: Maridan Martin Email: jcmartin707@gmail.com Ph: 671-477-0431 Fax: 671-477-0431 Description: House Rental

Protec Kote Technologies 711 W. Amelia Street Orlando, FL 32805 GCA Contact: Roy Johnson Email: info@proteckote.com Ph: 866-597-3296 Fax: 407-398-6580 Description: Special Coatings Manufacturer

Niking Corporation P.O.Box 11229, Tamuning, GU 96931 GCA Contact: Randolph Bryner Email: rbniking@gmail.com Ph: 671-487-5288 Description: SBA General Contractor (DOD Work Only)

Zephyr Cooling Technologies P.O.Box 26635 Barrigada, Gu 96921 GCA Contact: Brandon Chinen Email: Brandon@zephyrcooling.com Ph: 671-483-4688 Fax: 671-632-6855 Description: Special Sole Prorietorship

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Guam Sustainability Solutions LLC P.O.Box 5833 Hagatna, Guam 96932 GCA Contact: Allison Rutter Email: Allison@guamsustainability.com Ph: 671-685-4416 Description: Energy Efficiency Consulting/Leed & Sustainability Work

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GCA Construction News Bulletin January 2013  

Guam Contractors' Assn. Monthly Construction News Bulletin is Guam's official construction news publication.