HART Announces its Top 5 Resolutions for 2020 *

In a surprise move today, the Honolulu Authority for Rapid Transit (HART) management issued a press release with its top resolutions for the new year. According to Andrew Robbins, HART’s Executive Director and Chief Executive Officer, “We admit we were headed down the wrong track and need to turn things around.”

Outside consultants from various professions were given a flat-rate contract to help HART develop the resolutions and an implementation plan. The contract disallows change orders and requires updates until rail is built. The contract end date was not specified but is now estimated to be December 2030.

The resolutions are as follows:

Resolution 1 – to provide complete and consistent information to the HART board, Honolulu City Council, state legislators, mayor and the public;

Resolution 2 – to mitigate the risk of fraud, waste and abuse by implementing a whistleblower hotline and fraud policy and adequately funding the new internal auditor function;

Resolution 3 – to implement strategies to stay within budget, including a redesign of the remaining rail stations;

Resolution 4 – to fully cooperate with all auditing and investigating agencies; and

Resolution 5 – to discontinue spending taxpayer money trying to sell the public on rail.

Initial reactions to the resolutions were positive. Ikaika Anderson, Chair of the Honolulu City Council said, “We look forward to getting correct and timely information, so we can make good decisions on behalf of the residents and taxpayers of Oahu.”

Anderson said that includes the affordability limits for the public-private partnership (P3) contract for the City Center Guideway and Stations, Pearl Highlands parking garage and 30 years of operations and maintenance. The affordability limits were provided to the potential bidders as well as Mayor Kirk Caldwell months ago.

Panos Prevedouros, University of Hawaii Professor and Chair of the Civil and Environmental Engineering Office, said, “This is definitely good news. It shows HART has finally listened to concerns I and others have been raising for over a decade.”

As part of HART’s strategy to meet budget requirements, station designs are being overhauled. After analysis of ridership updates and consideration of ride-sharing and other changes in transportation, “we felt it would be best to scale back station platforms,” said Robbins.

DSCF8432 for commentary
New station design takes into account rail’s budget and reduced ridership estimates.

When asked about the resolutions, HART Board Chairman Tobias “Toby” Martyn responded, “Since I’ve taken the reins, we have reviewed the history of this rail project. The board will be taking a more active role in the oversight of rail construction and will be setting a strong tone at the top that fraud, waste and abuse are not acceptable.”

Martyn further stated that the board will ask councilmembers to reduce and reallocate some amounts from next year’s budget, including decreasing the number of public information staff from eight to a more reasonable two. Staffing for the new internal auditor function will be increased.

After years of speculation about rail’s power source, HART representatives confirmed rail will be run by 100% renewable energy. Designs for the power sources came from the Mainland, where freight trains often rely on these power generating systems.

DSCF8437
Power for rail will come from about 1,000 solar panel stations along the 20-mile route.

A HART representative also confirmed that HART board members as well as Mayor Caldwell and Honolulu City Councilmembers have committed to regularly riding rail and have already purchased their HOLO cards. They will be provided special parking spots at various points along rail.

DSCF8434Reserved parking will be available for HART board members and certain other elected officials.

* This is satire and meant for entertainment and wishful thinking purposes only.

Community Projects Major Part of Council District 4

As I was gathering pictures for our family calendar for 2019, I was reminded of all of the community projects we did with Our Community Changing Campaign. Volunteers and I took a different approach to my campaign for Honolulu City Council, and I’m proud of the work we did. While I didn’t win the election, I know we made a difference in neighborhoods from Hawaii Kai to Ala Moana and in the process provided an example of what can be done when we work together.

Following are the projects we worked on:

• Cleaned up at Hanauma Bay with the Friends of Hanauma Bay;
• Assisted with the annual Hawaii Food Bank food drive at Koko Marina Shopping Center;
• Weeded a neighbor’s yard;
• Cleaned up the Niu Valley playground equipment and removed graffiti for its second anniversary;
• Cleaned up after flooding at Angel Network Charities and Aina Haina Library;
• Assisted Honolulu Waldorf School with clean up and set up at temporary high school location at St. Lutheran Church on University Avenue after flooding;
• In Niu Valley, Aina Haina and Kahala inspected 500 storm drains and labeled over 400 with “Drains to Ocean. Do Not Dump.”
• Picked up trash and weeded planter boxes on Waialae Avenue;
• Cleaned up vacant lot on Kapahulu Avenue, including removal of engine that had been on site for several years;
• Painted over graffiti on temporary storefront wall on Kapahulu Avenue;
• Picked up trash, initiated campaign for removal of derelict vehicles on side street off Kapahulu Avenue and removal of orange fencing along part of Kapahulu Avenue;
• Cleaned up Crane park, including repainting of park benches;
• Picked up trash along Ala Wai Blvd.;
• Pulled invasive seaweed at the Honolulu Aquarium;
• Picked up trash along Kalanianaole Hwy. instead of sign waving.

Mahalo nui loa to all of the volunteers who helped with these efforts, and thank you again to everyone who supported me during my run for Council District 4.

Storm Drain Report Kahala & Diamond Head

As we near the end of the year, it’s a good time to clean up and finish tasks.  In September I gave a report to the Waialae-Kahala Neighborhood Board regarding Our Community Changing Campaign’s work on storm drains in that area.

The most important thing we observed during our work on the drains was the way paving was done on some of the roads.  In some cases, the area in front of the drains was significantly reduced.  Our concern was that water flow into the drains may be reduced.  We provided the report, which includes pictures, to the Department of Facility Maintenance and were informed that the contractors followed city specs.

Thank you to the volunteers who assisted with this effort.

Ozawa’s Voting Record: Pro-rail in a Pinch

Councilmember Ozawa is chair of the Honolulu City Council Committee on Budget and for about four months has been holding two resolutions that would authorize bonds to pay for rail. The Federal Transit Administration (FTA) has forced the issue by giving a 60-day deadline in a letter they released September 21.

By not putting these resolutions on the committee’s agenda, Ozawa has already cost taxpayers $300,000 – $600,000 in extra bond issuance costs, according to Nelson Koyanagi, Director of Budget and Fiscal Services. But let’s take a closer look at some of the other rail measures.

Bill 22 (2018), CD2, HART’s Capital Budget for Fiscal Year 2019

Earlier this year Ozawa used a sneaky tactic to try to authorize the use of city funds to pay for rail. In a floor draft of Bill 22, CD2, HART’s capital budget, Ozawa included a one-sentence proviso:

(g) Notwithstanding the provisions of Ordinance 07-001, City revenues may be used to pay for the debt service for the $44 million appropriated from the general improvement bond fund. (Emphasis added.)

During discussion on June 6, he stated he came up with “this solution,” because no one had any other suggestions. There had been no discussion of this option during prior meetings. Other councilmembers were therefore concerned that there hadn’t been adequate notice to the public, and the amendment did not pass.

By the way, Ozawa’s support of this proviso isn’t “adamant opposition to using property taxes to pay for rail construction” as he stated in a recent email.

Bill 42 (2017), CD1, Authorizing the Use of City Funds for Rail

In order to address the deadline given by the FTA, the Council recently held special meetings to discuss Bill 42. The bill would allow the use of city taxpayer funds, e.g., real property taxes, to be used to pay for rail. Ozawa voted “no,” but this was a safe vote for him, because Councilmember Ann Kobayashi was the only other no vote. The bill continues to move forward and will be up for final reading on October 30.

When the pressure is on, however, Ozawa pulls through for pro-rail groups, as evidenced by his votes on two measures in 2017.

Bill 34, (2017), CD1, Authorization to Issue Bonds Equal to HART’s Capital Budget

Bill 34 (2017) is the initial authorization to issue bonds to cover capital costs of rail. Ozawa voted “no” on second reading, then switched to “yes” at the final hearing, June 7, 2017. From the Honolulu StarAdvertiser:

City Councilman Trevor Ozawa represented the swing vote, switching from a “no” to a “yes” after he read a statement from the dais at Honolulu Hale.”

All bond issuances must be approved for specific dollar amounts after the general authorization is approved. In this case, Ozawa again shows his pro-rail position when voting on Resolution 17-173.

Resolution 17-173, Authorizing the Sale of $350,000,000 in Bonds to Finance Capital Costs for Rail

On July 12, 2017, Ozawa voted “yes” on Resolution 17-173, which was the authorization for HART’s first bond issuance. Councilmembers Fukunaga, Kobayashi and Martin voted “no.” Six votes are needed to approve bond issuance. Had Ozawa voted “no,” the resolution would not have passed.

Ozawa also does not act with fiscal prudence regarding HART’s budgets.

Bill 21 (2018), CD2, HART’s Operating Budget for Fiscal Year 2019

In testimony before the Honolulu City Council, I asked councilmembers to cut HART’s budget, especially public relations (PR). Ozawa initially cut two PR staff, but then he added them back for final reading. In addition, he gave them $44 million more to spend. Roy Amemiya, city managing director, expressed concerns about this, because it means the city will have less oversight of the $44 million.

Bills 17 and 18 (2015), HART’s Operating and Capital Budgets for Fiscal Year 2016

During the March 31, 2015, meeting of the Hawaii Kai Neighborhood Board, Ozawa stated he made cuts to the HART budget. The record shows, however, that he made no cuts.

According to the FTA, there’s still a $134 million shortfall in HART’s projected revenues. In addition, with a budget of only $848 million for the City Center Guideway and Stations from Middle Street to Ala Moana, it’s very likely that additional funding will be requested. Ozawa may vote “no” on rail measures prior to the election, but when the pressure is on and voters aren’t able to exert much influence, I’m sure we’ll see his pro-rail nature shine through.

Note:  This is a re-post from my site.

Storm Drain Report – Niu Valley & Aina Haina

Last Thursday I had the privilege of presenting a Storm Drain Report to Kuliouou-Kalani Iki Neighborhood Board members and residents. The report has also been given to city representatives.

One of my main concerns was the way the roadways had been repaved in Aina Haina. Specifically, gutters were paved over, and access to storm drains has been reduced. According to a resident, she had checked with the city several years ago when crews were working and was told the repaving project was designed that way.

At a minimum, the standard that allows repaving to be done in this manner should be looked at, and unless there is a very good reason for almost blocking off access to storm drains, the practice should be disallowed.

Here’s an example of a drain that has been almost blocked off. This one is near Diamond Head. I will post a report about Kahala storm drains next week.

Diamon Head almost closed 7-1-18

HART Meeting Tomorrow: More Broken Promises and Lack of Transparency

The Honolulu Authority for Rapid Transit (HART) board of directors will meet at 8 a.m. tomorrow, and there are several things we should all be concerned about:

• a resolution requesting that the Honolulu City Council approve a bond float for the much-talked-about $44 million for HART marketing and personnel costs;

• the potential that the board “may” go into Executive Session regarding several issues that should be discussed in public; and

• the lack of a discussion item regarding the state auditor’s concern about HART management recording employees during interviews.

When I read the agenda, I was shocked to see a resolution requesting that the Honolulu City Council approve the issuance of bonds to cover the $44 million. This $44 million was initially put into the city’s capital improvement (CIP) budget by the mayor and then moved to HART’s CIP budget by the council.

During two months of budget discussions, we were told several times that HART had the money to pay these costs. We were reassured that no bonds would be needed for next fiscal year. Even as recently as the June 6 full council meeting, the $44 million was referred to as just “a placeholder,” similar to having a line of credit available.

Who knew that this was not correct? When did they know it? When will we be given accurate and complete information?

It’s also important to note that this resolution calls for the $44 million to be repaid with city funds, which breaks another promise that was made to us with respect to the rail project, i.e., that no city money (read “real property taxes”) would be used for rail construction.

If that isn’t enough for people to be concerned about rail finances, the HART board may go into “Executive Session” on five items including approval of the budgets that the council just passed, the bond approval requests (there’s another one for $450 million), a change order and the discussion on public-private partnerships. (This last one is a biggie, because it will cover the City Center Guideway and Stations – the last major piece of the rail project to be contracted.) All of these issues should be discussed in the open. Executive sessions are closed to the public, however.

What are they trying to hide? Have costs gone up yet again?

And finally, it’s notable that there is no discussion slated regarding management’s policy of recording employees during state audit interviews. During the last HART board meeting, Les Kondo, the state auditor, expressed serious concerns about this practice and asked that it be stopped. A former state attorney general has said it is illegal to record employees in this manner, and at least two board members had questions about the issue. No discussion took place, because corporation counsel stated it wasn’t allowed due to sunshine law restrictions. (Thank you to Tom Yamachika for the reminder that the board could have voted to sunshine the item onto the agenda.) Most employees will likely not feel free to openly discuss their concerns in this type of environment, yet there appears to be no follow up by the board.

I agree with HART board member John Henry Felix -– it’s time for a “forensic audit.” We cannot afford to continue the way we have.

The HART board meeting will be broadcast live on Olelo 53.

A Sneaky Way to Approve City Funds for Rail

 

Buried in a proposed amendment to the bill for HART’s capital improvement budget (Bill 22, CD2, FD1) is the statement:

 

“Notwithstanding the provisions of Ordinance 07-001, City revenues may be used to pay for the debt service for the $44 million appropriated from the general improvement bond fund.”

 

We were told no city funds would be used to pay for rail.  Last year, however, the state legislature passed Act 1, which prohibits the general excise tax surcharge from being used to pay HART’s administrative or marketing costs, including personnel costs.  By default, that means that the bulk of these costs will need to be paid by city funds. Councilmembers then started discussions on Bill 42, which added “city” to the list of funding sources for rail.  It was opposed by most testifiers, and no final decision was made on it.

 

The mayor put $44 million of HART administrative and marketing costs into the city capital improvement (CIP) budget for next fiscal year.  Several councilmembers decried this as bad policy but then merely moved those costs to HART’s CIP budget.  

 

When asked about the $44 million, HART representatives stated they had enough cash to pay it, but according to their cash flow projections, bonds would be floated and apparently used to pay a significant portion of it.  There was no additional discussion of how the $44 million would be funded.

 

We deserve an open discussion of how and when city funds will be used to pay for rail and what councilmembers’ plans are to cover the $44 million.

 

As a side note, it is also important to consider that no significant cuts to HART’s administrative or marketing costs have been made.

 

There is one final hearing on this bill Wednesday. I will be there to oppose this bill and the manner in which the amendment is being done. I encourage others to testify as well.  The agenda and instructions on providing testimony are available here.