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SHIP DRYDOCK FOR PEARL HARBOR
ALLEGATIONS OF POLITICAL INTRIGUE - SWEET HEART DEALS
VALID? VENOMOUS?
WHY PLANS FOR A NEW NAVY DRY DOCK LEAVE SHIP REPAIR INDUSTRY DIVIDED
Proponents say a state plan to help a well-connected maritime firm is needed to save hundreds of jobs
By Stewart Yerton. Honolulu Civil Beat. April 30, 2019
<https://www.civilbeat.org/2019/04/why-plans-for-a-new-navy-dry-dock-leave-ship-repair-industry-divided/?utm_source=Civil%20Beat%20Master%20List&utm_campaign=420745a96a-
EMAIL_CAMPAIGN_2019_04_29_08_58&utm_medium=email&utm_term=0_51c2dd3cf3-420745a96a-401774257&mc_cid=420745a96a&mc_eid=6febbff0b1>
__________
The merits and validity of arguments in favor and in opposition the Senate Bills in question are
presented for your review and evaluation.
1. SB985 SD1 HD1 CD1 - Authorizes the issuance of special purpose revenue bonds to assist
Pearl Harbor Floating Drydock, LLC, for the construction of a purpose-built floating drydock at
Pearl Harbor to service submarines and surface ships. Introducers: Kidani, Inouye, Nishihara,
Shimabukuro, Wakai. <https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=985&year=2019>
2. SB972 SD1 HD1 CD1 - Establishes the Ship Repair Industry Tax Credit to offset costs
incurred to construct and put into service a purpose-built floating drydock at Pearl Harbor for
use by the United States Navy. Introducers: Kidani, S. Chang, Shimabukuro.
<https://www.capitol.hawaii.gov/measure_indiv.aspxbilltype=SB&billnumber=972&year=2019>
SPECIAL PURPOSE REVENUE BONDS
1. Special purpose revenue bonds (SPRBs) are a type of municipal revenue bond authorized by
Hawaii'sLegislature that can be issued by the State to provide loan financing to assist qualifying
private capital improvement projects (for example, certain hospital or school construction) in
the public interest. The bonds do not constitute a general obligation of the State and are not
State monies. SPRBs are sold to private investors, who provide the actual funds and invest their
funds in exchange for tax-exempt or taxable interest payments. The borrowers are required to
secure the loans with revenues as part of the loan agreements. For the State, selling SPRBs is a
way to facilitate loans for certain categories of private business projects without spending
taxpayers' money or placing the State's credit at risk.
2. The process begins with a borrower securing legislative authorization for the Department of
Budget and Finance (B&F) to issue the SPRB. Negotiations between the borrower, B&F,
underwriter and trustee regarding the terms of the SPRB issuance follow. The underwriter sells
the SPRBs to investors, the investors' money is conveyed to the trustee, and the trustee loans
those proceeds to the borrower. The borrower makes payments of principal and interest to the
trustee, who in turn makes payments of principal and interest back to investors.
3. The SPRB financing mechanism considers the merits of the project, not financial need
of the borrower, and the financing mechanism takes the form of lower interest loans, not
grants or subsidies.
Source: Hawaii Department of Budget and Finance. <https://budget.hawaii.gov/wp-content/uploads/2012/11/SPRB-FAQ.pdf>
QUESTION FOR THE HAWAII LEGSLATURE
MERIT OF DRYDOCK FACILITIES FOR PEARL HARBOR
UNITED STATES SHIPYARDS
<https://ipfs.io/ipfs/QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco/wiki/List_of_shipbuilders_and_shipyards.html>
GOVERNMENT (PUBLIC) SHIPYARDS
1. Boston Navy Yard, Charlestown, Massachusetts
2. Brooklyn Navy Yard, Brooklyn, New York
3. Charleston Naval Shipyard, Charleston, South Carolina
4. Mare Island Naval Shipyard, Vallejo, California
5. Marinette Marine, Wisconsin
6. Norfolk Naval Shipyard, Portsmouth, Virginia
7. PEARL HARBOR NAVAL SHIPYARD, PEARL HARBOR, HAWAII
8. Philadelphia Naval Shipyard, Philadelphia, Pennsylvania
9. Portsmouth Naval Shipyard, Kittery, Maine
10. Puget Sound Naval Shipyard, Bremerton, Washington
11. United States Coast Guard Yard, Curtis Bay, Baltimore, Maryland
NAVY NEEDS MORE DRY DOCKS FOR REPAIRS, SAYS FIRST-EVER
MAINTENANCE REPORT
By: Megan Eckstein. U.S. Naval Institute
March 21, 2019, accessed April 30, 2019
The Navy released its first-ever long-range ship maintenance and modernization plan amid a growing
fleet and a growing backlog of repair work, and the report highlights challenges in dealing with chronic
mismatches between maintenance requirements and yards' capacity.
The report, Report to Congress on the Long-Range Plan for Maintenance and Modernization of Naval
Vessels for Fiscal Year 2020, highlights a shortage of dry docks for SURFACE SHIP maintenance and
the need to improve existing infrastructure at public and private yards to keep up with newer classes of
ships, as well as the need for process improvements to allow private shipyards and the supply chain to
grow their capacity and move faster to respond to a growing fleet size.
“The ratio of ships to dry docks present in the Pacific presents a significant challenge that reduces
margin for schedule changes and growth. The Navy has conducted a market survey of
available/potential dry docks and is developing a long-range plan to increase the number of certified
dry docks in the Pacific (and elsewhere if required) to reduce this shortfall,” reads the report.
[Emphasis Supplied]
Note Supplied. Please note that the U.S. Naval Institute article covers non-nuclear surface ships. 15
submarines are homeported at Pearl Harbor.
NOTE, SUPPLIED
HOMEPORT: JOINT BASE PEARL HARBOR-HICKAM, HI
25 WARSHIPS
15 ATTACK SUBMARINES
9 GUIDED-MISSILE DESTROYERS
1 GUIDED-MISSILE CRUISER
NAVAL VESSEL REGISTER
THE OFFICIAL INVENTORY OF U.S. NAVAL SHIPS AND SURFACE CRAFT
Last updated: April 29, 2019
https://www.nvr.navy.mil/NVRSHIPS/HOMEPORT_SHIP_PH.HTML
Class Hull Name
CG 47 CG 73 PORT ROYAL
DDG 51 DDG 53 JOHN PAUL JONES
DDG 51 DDG 70 HOPPER
DDG 51 DDG 88 PREBLE
DDG 51 DDG 90 CHAFEE
DDG 51 DDG 93 CHUNG-HOON
DDG 51 DDG 97 HALSEY
DDG 51 DDG 108 WAYNE E MEYER
DDG 51 DDG 110 WILLIAM P LAWRENCE
DDG 51 DDG 112 MICHAEL MURPHY
SSN 688 SSN 717 OLYMPIA
SSN 688 SSN 724 LOUISVILLE
SSN 688 SSN 759 JEFFERSON CITY
SSN 688 SSN 763 SANTA FE
SSN 688 SSN 766 CHARLOTTE
SSN 688 SSN 770 TUCSON
SSN 688 SSN 771 COLUMBIA
SSN 688 SSN 772 GREENEVILLE
SSN 688 SSN 773 CHEYENNE
SSN 774 SSN 775 TEXAS
SSN 774 SSN 776 HAWAII
SSN 774 SSN 777 NORTH CAROLINA
SSN 774 SSN 780 MISSOURI
SSN 774 SSN 782 MISSISSIPPI
SSN 774 SSN 786 ILLINOIS
Additionally, engineering analysis to support optimized layouts at the four yards “will restore
badly outdated facilities while simultaneously reducing total personnel and material travel and
movement by an average of 65 percent, which equates to recovering 328K man-days per year.

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Pearl Harbor Hawaii - Drydock Facilities - Time is of the Essence

  • 1. SHIP DRYDOCK FOR PEARL HARBOR ALLEGATIONS OF POLITICAL INTRIGUE - SWEET HEART DEALS VALID? VENOMOUS? WHY PLANS FOR A NEW NAVY DRY DOCK LEAVE SHIP REPAIR INDUSTRY DIVIDED Proponents say a state plan to help a well-connected maritime firm is needed to save hundreds of jobs By Stewart Yerton. Honolulu Civil Beat. April 30, 2019 <https://www.civilbeat.org/2019/04/why-plans-for-a-new-navy-dry-dock-leave-ship-repair-industry-divided/?utm_source=Civil%20Beat%20Master%20List&utm_campaign=420745a96a- EMAIL_CAMPAIGN_2019_04_29_08_58&utm_medium=email&utm_term=0_51c2dd3cf3-420745a96a-401774257&mc_cid=420745a96a&mc_eid=6febbff0b1> __________ The merits and validity of arguments in favor and in opposition the Senate Bills in question are presented for your review and evaluation. 1. SB985 SD1 HD1 CD1 - Authorizes the issuance of special purpose revenue bonds to assist Pearl Harbor Floating Drydock, LLC, for the construction of a purpose-built floating drydock at Pearl Harbor to service submarines and surface ships. Introducers: Kidani, Inouye, Nishihara, Shimabukuro, Wakai. <https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=985&year=2019> 2. SB972 SD1 HD1 CD1 - Establishes the Ship Repair Industry Tax Credit to offset costs incurred to construct and put into service a purpose-built floating drydock at Pearl Harbor for use by the United States Navy. Introducers: Kidani, S. Chang, Shimabukuro. <https://www.capitol.hawaii.gov/measure_indiv.aspxbilltype=SB&billnumber=972&year=2019> SPECIAL PURPOSE REVENUE BONDS 1. Special purpose revenue bonds (SPRBs) are a type of municipal revenue bond authorized by Hawaii'sLegislature that can be issued by the State to provide loan financing to assist qualifying private capital improvement projects (for example, certain hospital or school construction) in the public interest. The bonds do not constitute a general obligation of the State and are not State monies. SPRBs are sold to private investors, who provide the actual funds and invest their funds in exchange for tax-exempt or taxable interest payments. The borrowers are required to secure the loans with revenues as part of the loan agreements. For the State, selling SPRBs is a way to facilitate loans for certain categories of private business projects without spending taxpayers' money or placing the State's credit at risk. 2. The process begins with a borrower securing legislative authorization for the Department of Budget and Finance (B&F) to issue the SPRB. Negotiations between the borrower, B&F, underwriter and trustee regarding the terms of the SPRB issuance follow. The underwriter sells the SPRBs to investors, the investors' money is conveyed to the trustee, and the trustee loans those proceeds to the borrower. The borrower makes payments of principal and interest to the trustee, who in turn makes payments of principal and interest back to investors. 3. The SPRB financing mechanism considers the merits of the project, not financial need of the borrower, and the financing mechanism takes the form of lower interest loans, not grants or subsidies. Source: Hawaii Department of Budget and Finance. <https://budget.hawaii.gov/wp-content/uploads/2012/11/SPRB-FAQ.pdf>
  • 2. QUESTION FOR THE HAWAII LEGSLATURE MERIT OF DRYDOCK FACILITIES FOR PEARL HARBOR UNITED STATES SHIPYARDS <https://ipfs.io/ipfs/QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco/wiki/List_of_shipbuilders_and_shipyards.html> GOVERNMENT (PUBLIC) SHIPYARDS 1. Boston Navy Yard, Charlestown, Massachusetts 2. Brooklyn Navy Yard, Brooklyn, New York 3. Charleston Naval Shipyard, Charleston, South Carolina 4. Mare Island Naval Shipyard, Vallejo, California 5. Marinette Marine, Wisconsin 6. Norfolk Naval Shipyard, Portsmouth, Virginia 7. PEARL HARBOR NAVAL SHIPYARD, PEARL HARBOR, HAWAII 8. Philadelphia Naval Shipyard, Philadelphia, Pennsylvania 9. Portsmouth Naval Shipyard, Kittery, Maine 10. Puget Sound Naval Shipyard, Bremerton, Washington 11. United States Coast Guard Yard, Curtis Bay, Baltimore, Maryland NAVY NEEDS MORE DRY DOCKS FOR REPAIRS, SAYS FIRST-EVER MAINTENANCE REPORT By: Megan Eckstein. U.S. Naval Institute March 21, 2019, accessed April 30, 2019 The Navy released its first-ever long-range ship maintenance and modernization plan amid a growing fleet and a growing backlog of repair work, and the report highlights challenges in dealing with chronic mismatches between maintenance requirements and yards' capacity. The report, Report to Congress on the Long-Range Plan for Maintenance and Modernization of Naval Vessels for Fiscal Year 2020, highlights a shortage of dry docks for SURFACE SHIP maintenance and the need to improve existing infrastructure at public and private yards to keep up with newer classes of ships, as well as the need for process improvements to allow private shipyards and the supply chain to grow their capacity and move faster to respond to a growing fleet size. “The ratio of ships to dry docks present in the Pacific presents a significant challenge that reduces margin for schedule changes and growth. The Navy has conducted a market survey of available/potential dry docks and is developing a long-range plan to increase the number of certified dry docks in the Pacific (and elsewhere if required) to reduce this shortfall,” reads the report. [Emphasis Supplied] Note Supplied. Please note that the U.S. Naval Institute article covers non-nuclear surface ships. 15 submarines are homeported at Pearl Harbor.
  • 3. NOTE, SUPPLIED HOMEPORT: JOINT BASE PEARL HARBOR-HICKAM, HI 25 WARSHIPS 15 ATTACK SUBMARINES 9 GUIDED-MISSILE DESTROYERS 1 GUIDED-MISSILE CRUISER NAVAL VESSEL REGISTER THE OFFICIAL INVENTORY OF U.S. NAVAL SHIPS AND SURFACE CRAFT Last updated: April 29, 2019 https://www.nvr.navy.mil/NVRSHIPS/HOMEPORT_SHIP_PH.HTML Class Hull Name CG 47 CG 73 PORT ROYAL DDG 51 DDG 53 JOHN PAUL JONES DDG 51 DDG 70 HOPPER DDG 51 DDG 88 PREBLE DDG 51 DDG 90 CHAFEE DDG 51 DDG 93 CHUNG-HOON DDG 51 DDG 97 HALSEY DDG 51 DDG 108 WAYNE E MEYER DDG 51 DDG 110 WILLIAM P LAWRENCE DDG 51 DDG 112 MICHAEL MURPHY SSN 688 SSN 717 OLYMPIA SSN 688 SSN 724 LOUISVILLE SSN 688 SSN 759 JEFFERSON CITY SSN 688 SSN 763 SANTA FE SSN 688 SSN 766 CHARLOTTE SSN 688 SSN 770 TUCSON SSN 688 SSN 771 COLUMBIA SSN 688 SSN 772 GREENEVILLE SSN 688 SSN 773 CHEYENNE SSN 774 SSN 775 TEXAS SSN 774 SSN 776 HAWAII SSN 774 SSN 777 NORTH CAROLINA SSN 774 SSN 780 MISSOURI SSN 774 SSN 782 MISSISSIPPI SSN 774 SSN 786 ILLINOIS
  • 4. Additionally, engineering analysis to support optimized layouts at the four yards “will restore badly outdated facilities while simultaneously reducing total personnel and material travel and movement by an average of 65 percent, which equates to recovering 328K man-days per year.