Let’s fight to eliminate delays and cost increases in rail project

On Sept. 15, the City Council chairman and I were informed that there is a possible schedule slippage of a year or more for the rail project, at an increase to the budget of about $200 million.

I stated that I cannot accept these potential setbacks as inevitable.

Contrary to what some have stated, it is rare that the Federal Transit Authority (FTA) agrees to an amendment to the Full Funding Grant Agreement to allow for a delay in project completion.

I met with Peter Rogoff (prior FTA administrator and now undersecretary of transportation for policy, U.S. Department of Transportation) last January, and he told me that the FTA is very reluctant to do so because delays usually mean more money expended than budgeted. Just cause must be given before any extension is granted.

In response to the recent news, I am proposing the following remedies to the Honolulu Authority for Rapid Transportation (HART) as a means to do everything possible to minimize the loss of time and money. I expect HART to do everything in its power to keep as close to the original budget and timeline as possible.

>> Provide specific details on what has changed between now and the legislative session that warrants the change of completion date and cost increases.

During the 2015 Legislature, HART provided information detailing the rail construction budget, schedule and procurement estimates. I testified, based on this information, that extending the general excise tax (GET) surcharge for rail would enable HART to complete the project by the first quarter of 2020.

>> Raise the profile of "schedule adherence" at HART’s board of directors level. Every delay means added costs.

I propose that the board, at every meeting, discuss project schedule and budget as a standing agenda item and report to the public.

>> Conduct a workshop for the HART board, as an open public meeting. It’s critical that every board member have a deeper understanding of project phasing, budget and schedule in order to responsibly oversee the organization.

>> Look at speeding up construction rather than slowing it down to mitigate traffic impacts. Traffic is going to be bad no matter what. Rather than prolong the torture, let’s consider getting it done more quickly so that businesses and residents don’t have to suffer any longer than absolutely necessary.

Adding to that, I am asking that HART insert into its remaining contracts explicit language mandating the contractors assume responsibility for mitigating business interrup- tion, which includes mitigating traffic impacts, preserving vehicle, bike and pedestrian access, assisting in signage and way-finding and responding to community concerns 24/7.

Most urgently, the City Council must take action on the bill to extend the GET surcharge.

The lack of action on this vote signals uncertainty to potential bidders for the remaining construction contracts. Uncertainty forces businesses to either increase their bids to protect themselves, or not bid at all. There is an additional threat that the FTA could withhold further federal funding for the project until the Council votes on the measure.

I ask the Council to take up the debate without further delay.

My support for rail has not wavered. Our economy, our quality of life, how we grow and shape our city, depends on building our rail transit system. Neither the state nor the city is planning new freeways, highways or roadways, and it would be 20 years before we saw the completion of those projects. We will continue to go through many challenges with rail, but it is a game changer for Oahu. It’s worth fighting for.