Council to again review rail surcharge cap
DENNIS ODA / Nov. 12
Crews raise a huge column of rebar that eventually will help support a portion of the rail along Farrington Highway in Waipahu.
Honolulu City Council leaders continue to seek a cap on the amount of general excise tax surcharge money that can go toward the construction of the contentious, 20-mile rail transit project.
Bill 23 (2015) authorizing the 0.5 percent surcharge to be extended by five years into 2027 goes before the Council Budget Committee at 9 a.m. today for what may be its last go-round before an expected Jan. 27 final vote of the full Council.
In December, the last time the full Council held a vote on the bill, members voted 7-2 to give it the second of three approvals.
But that vote occurred after a heated debate over whether to remove a cap, which was initially inserted into the bill by Council Chairman Ernie Martin in the fall. Members voted to keep the cap, 5-4.
Council Transportation Chairman Joey Manahan is in the thick of the discussions. A longtime rail supporter, he has been voicing increasing discontent over how the project’s costs have skyrocketed and was among those in favor of a cap during the December vote.
Manahan told the Honolulu Star-Advertiser on Tuesday that he has been working with Martin and leaders of the Honolulu Authority for Rapid Transportation to hash out a new draft of the bill that’s more palatable to all parties.
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“Our goal is to ensure that the rail project receives the funding it needs while satisfying the terms of our full-funding grant agreement with the Federal Transit Administration,” Manahan said in a statement.
“It is also important that it meets the intent of the state Legislature and tightens up the reporting and accountability aspects of the whole project,” he said. “The proposed changes are vitally important because the final version of Bill 23 is the City Council’s main leverage to ensure the integrity and viability of the project.”
The agreement calls for the city to receive $1.55 billion in federal money for the rail project, which is now estimated to cost $6.57 billion. Some, including Mayor Kirk Caldwell and Council Vice Chairman Ikaika Anderson, have warned that inserting a cap could be viewed as a breach of the contract and leave the city exposed to potential penalties.
The draft of the bill from the December vote caps the amount of new revenues going to rail at $910 million of the estimated $1.2 billion to $1.8 billion that would be raised during the extra five years. The $910 million represents the amount HART officials told state lawmakers last spring that they needed to meet additional expenses and contingencies.
Anderson said he will not vote for a bill that includes a cap because HART officials have warned that it won’t be enough to cover the cost of a 20-mile, 21-station project. Martin, meanwhile, said he won’t support a rail extension unless there is a cap that he believes will force transit officials to “stop the bleeding.”
Two key state lawmakers who voted for the surcharge extension last year voiced reservations about a cap.
Senate Transportation Chairwoman Lorraine Inouye (D, Kaupulehu-Waimea-North Hilo) said she’s inclined to think city officials will need to return to the Legislature in order to impose a cap, although she said wants to hear from Senate attorneys.
Inouye said Council actions to date constitute “political football,” and she wants HART to be able to proceed without any restrictions or further delays. “I think it’s just a waste of time. … Enough already.”
Senate Ways and Means Chairwoman Jill Tokuda (D, Kailua-Kaneohe) said city officials might not need to return to the Legislature to set a cap but wants to check with Attorney General Doug Chin’s office. “I think it’s a policy call they ultimately have to make.”
Tokuda said, however, that placing a cap may not be the best way to rein in costs on the project, especially because a five-year extension was approved based on anticipated unforeseen circumstances. “The cap just says you can’t go past this amount,” she said. “If their ultimate goal is to increase transparency and increase accountability, there are a number of other things they have to look at.”
If there is a cap, Tokuda said, the Legislature might need to determine what happens with the remainder of the money, including the possibility of returning it to taxpayers.
46 responses to “Council to again review rail surcharge cap”
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Throwing good money (yours the taxpayer’s) after bad on the rail project is bad judgment. It would be wiser to cancel the project and use whatever money remains to demolish the unsightly ruins and use whatever remains to pay off the contractor. The shopping center rail is an ill conceived, poorly planned and unaffordable and even if completed on time and on budget would bring too little benefit to too few.
I agree with you but Kirk and Grabby should not complain. They asked for 6.57 billion and that’s what the council has given them.
Of course we know that is BS and they will be back asking for more in practically no time.
HART and the mayor needs to come clean and just fess up that the rail is going to cost 12 billion or more.
A cap will only hinder the project’s progress. The City Council should only require more transparency and that expenditures are done responsibly. Rail is to provide benefits for the very long term future where current costs will lose relevancy. H-3 had cost overruns but who cares now?
RUSTY THE HATED SCREECHING ELEVATED STEEL ON STEEL GIANT CEMENT STATIONED RAIL REARS ITS UGLY HEAD AGAIN & AGAIN. Built on deception, Lies & backroom Deals that smell of bribery and a tainted ethics commission. We the people do NOT WANT RAIL AND WILL NOT RIDE THE MONSTER. Will You?
why?
Ukuleleblue said “”A cap will only hinder the project’s progress””
I’m confused here ukuleleblue. Giving the rail project the money they said they need hinders the project in what way?
uku=BS
Do not compare H-3 with a train. H-3 is a highway. Highways are the king of infrastructure, and provide more benefits per dollar spent and quality life to the community and society than a train ever will.
The very long term future? Shave and a hair-cut, two bits. You are such a POS. I am leaving now. I no longer have any skin in this game. I will be closing our my subscription from a thousand miles.
ukuleleblue says: “H-3 had cost overruns but who cares now?”
Americans, who have borrowed from China against their children and grandchildren’s future for politically expediency right now.
But Hawaii doesn’t have the option of borrowing money from the Chinese to support the irresponsible price gouging of connected contractors. That money needs to come out of the household budgets of struggling families for the next ten years and so far, Mayor Caldwell and his and Mufi’s cronies have tried to keep the operations and maintenance budget off the radar, because your children and grandchildren WILL be paying for the mall train while the developers, construction cronies, and mall owners laugh all the way to the bank.
Speaking of which, would this be a good morning to tell everyone where on the mainland that you live and what your connection is to this mess of a rail project?
Indeed a cap will delay rail.
Yes. No “locals” can get on the train at West Kapolei, unless they move there. No “locals” from Waipahu can reasonably use the train. Very, very few are within walking distance. Waipio,Mililani, out of the question. Pearl City? The first stop is at Leeward Community College. No parking, no benefit for Pearl City Locals. The second stop, after that beautiful but short roller coaster ride, is at where? Come to think of it, you know those banana patchers will probably see a huge benefit, but there are only a handful. Yes, these first four stops do not benefit “local” westsiders. In fact, we now have a big mohonking serpent rolling through mainstreet. You have got to be kidding me. RIP rail, and bye-bye Honolulu. I will see you in the funny pages.
Oh,, I see. It will benefit “locals” at Kakaako who want to take a slum trip to Waipahu? Or those from Ala Moana who go to school at Leeward CC?
Enough grandstanding. Pass the funding already. The legislature will not support a second round of rail debate at the capitol just to make Martin appear to be a viable mayoral candidate or the other council members somehow more viable for reelection. It won’t happen.
What’s wrong with giving HART the amount of money that they are assuring is right this time?
It’s almost like they don’t believe their own numbers and don’t expect us to either. HART’s promises, assurances, and numbers are simply a farce, and not even they pretend there is any truth to them any more.
Right. We know that this is just another case of grandstanding by the rail officials. I would be my life savings that 6.57 billion is not going to be the final cost of rail construction.
Not to mention the fact that rail has made traffic worse and destroyed some local businesses.
Yep. Costs are wildly out of control and they have not even begun to build the most difficult and costly parts of the rail project. The council is burying their head in the sand and are not doing anything to stop the bleeding. The taxpayers of Oahu are being scammed into paying for the most outrageously expensive rail project anywhere in the free world.
Yep. They had so much faith in this project that they started at the fag end of a pumpkin patch. Now. tell us, UKB, which “locals” are going to benefit from rail? Not so much the people in Waipahu, as they have one depot on Kunia Rd with no parking. How about Pearl City? Oh I am sure they all love it. Just loving it. How about Mililani or Wiapio or Halewa or … No not so much. How about the locals in Nanakuli or Waianae or Ewa or Kapolei. No not so much. I admit there are a few hundreds of these Waipahu or Pearl City folks who live within walking distance of one station. (Few hundreds!)
Kalaheo you are so right. Leave it to Ernie Martin to mess things up even further. We need to finish the rail and not delay it anymore. the 910 million was an old figure. Also who said there was support to further tax us and use it for a different cause. They also need to get rid of Grabuskas
That 910 million is not old. It is the most current estimate of additional needed funds to complete rail. It should not be a delay to provide what the mayor and HART are requesting.
grandstanding. Ernie wants to be mayor.
So what? You work for the mayor.
I encourage anyone interested in this topic to read Civil Beat’s far more indepth article:
http://www.civilbeat.com/2016/01/five-unanswered-questions-about-honolulus-6-6-billion-rail-project/
Good article and it confirms what we already knew. Rail is a boondoggle and the spending is out of control with no accountability. And rail is at least 2 years behind schedule.
Our lawmakers need to get “real” and quit the flogging. Almost everyone knew from the beginning that
this rail was going to cost 8 billion dollars and yet the council supported the rail. the council will never kill the rail so just throw more good money at it and get it over with. Our lawmakers are just saving face with these antics because they know deep down that the 910 million cap is not enough.
Actually we will be lucky if rail only costs 8 billion.
Are you including the new fossil fuel generator that HECO or NextERA will have to build, ALL at Hawaii taxpayer expense, just to power the rail? What about the fuel costs to pay for electricity the rail will need AND the cost for maintenance of the new power plant FOREVER? Hawaii has the highest electrical rates in the nation and a 72,000 pound (empty) rail car using turn of the century train technology will require MASSIVE amounts of electrical power. 10 BILLION is more realistic price and possibly 300 MILLION per year for cost of maintenance and electricity FOREVER.
Incompetence reigns in Hawaii. What is the FINAL COST ? Why has the cost doubled from 3.2 billion to over 6.7 and YET NO ONE even knows the total price. This is insane and a huge burden for all of the taxpaying citizens. Complete WASTE of money while our roads are NOT improved or expanded.
Why doesn’t HART buy a powerball ticket if they want more money? Because the odds are better that our do nothing council will just approve it with reservations. You know what, if you have reservations then the answer should be NO!
No matter where the money comes from, it still is a waste of money on the rail.
Seems like the Federal Funding is capped at 1.55 billion. Whats wrong with capping the GET take?
Time to cut the losses and end the rail at Middle Street. It is not going to UH so it will not help the traffi.
Council members just do not pass the extension because another and another after that will happen. Just build the rail as far as what can be done with the monies available. You people talk about the federal funds we will lose? I. 55 billion is not even 25% of the total cost and the federal funds is not a percentage of the cost but just a dollar value. Let’s see what kind of council you people are-I think you people are all waha(mouth). Big shibai all of you. Also voting should be yes or no cause (with reservations is always counted as yes).. And members voting wil always say they did not vote yes when things go wrong.
Sorry here I am again. Whe council members like Pine insist on the rail and use the traffic congestion right now is wrong(a lot of the traffic jams right is due to the construction going on and the rail will not ease congestion in the future cause more cars will be on the roads. Also Pine and threat of you pro-rail council members PLEASE show the people how it’s done and start riding the public transportation to get your cars off the roads. Being a council member or any other elected or appointed official does not give you the fight to use your cars to and from work. I say all of you are all waha
Rail has not only cost a ton of money, it’s made traffic worse! Even when rail is running, it will not have a significant effect on traffic. Commute times will be longer for those who do not live and work very close to the rail. Imagine catching a bus to the rail, riding the rail and then having to catch another bus to your destination and repeating the process home.
And the buses on both ends used to connect the rail line will be caught in the increased traffic all because of the rail line. To get from Ala Mo center to UH takes about 30-45 minutes when you include traffic, waiting for the bus to arrive and having to make all those stops. I would think the same amount to time it would take to get from Ewa Beach or Kapolei to the first train stop at Hoopili. Add about 45 minutes for the 20 stop, 20 mile train line and a West Oahu to UH commuter will OR West Oahu to private school in the Makiki/Manoa area commute use bus/train/bus route will easily take over 2 hours. Everyone knows it is the UH/private school commuting crowd that cause the heaviest gridlock traffic on Oahu during the weekday and given the train is useless to them, the train will NOT improve Oahu weekday traffic. People who work downtown or even Waikiki are not the rate limiting factor, it is the school commuting crowd. What cost would it take to have the train go from Ala Mo Center to UH and from Hoopili to Ewa Beach? Add many extra BILLIONS more because unlike the fields of Kapolei, Farrington Hwy or Kam Hwy fronting Sams club, those int own areas have maximum residential density and minimal width roads that are completely saturated with old gas, water and sewer lines that are not accurately mapped.
Would give a current grade of “D” to their efforts at transparency and accountability. A good place to start would be to expand beyond their initial argument that rail would greatly help alleviate traffic congestion. It is critical that they get the TOD issue, in particular lower income housing developments, correct. It is the crux of rail. The current development plans on the west side is urban sprawl, which TOD is supposed to prevent. In other words, the current and proposed west side development will not encourage usage of rail, and to argue that it would, is folly.
There are many issues to be dealt with for TOD. Constitutional issues will arise. Perceived improprieties will arise. The public will and most certainly should demand nothing less than to be involved in the process of TOD. If elected officials get these issues wrong, the rail vision will not have a chance of succeeding. As it is, it looks to be a poor fit. Currently, the State of Hawaii does not have the necessary business infrastructure to make rail a good fit.
So, what kind of concessions will the State, the people of Hawaii, have to make in the future? As it stands, there are critical needs that must first be addressed. Need an example? How about our aging infrastructure? Water main breaks and sewage issues are common. Have our lawmakers considered sustainability? How does this translate when our State economy supposedly grows but wages are flat? People lose their jobs and can’t find full time work?
The theoretical aspects of rail and TOD is questionable. Google it and you will of course find pro and con arguments. But someone needs to take responsibility and make sure the public is kept properly apprised and educated about this critical issue. And it should start with the Mayor’s office, because it is the public who is paying for this. Now would be a good time to start.
There are not as many pro-rail comments anymore, and do you know why? Because they have no answers. We have been asking for years about transparency, and answers, about “future bus routes”, price of ticket, yearly omg costs (I know), Ala Moana station design, power, train specs, etcetera. (For example train specs. if it averages 30 miles per hour, when moving, then the trip would take 40 minutes of travel time, and what, twenty minutes at the stations, or what will be the average speed? I just don’t believe it can average much more than that if the top speed is 55. Acceleration and deceleration take time…….)But we never got any answers. The only supporters are probably handsomely rewarded. You know, the types like Kirk Montalban and Daniel Villachez.
The pro rail comments are coming from those who are paid to write propaganda or those who directly benefit from rail. Good examples would be ukuleleblue or wiliki.
IF THERE IS A CAP THERE NEEDS TO BE A DISINCENTIVE IF IT DOES NOT HAPPEN ..ON TIME.
we need transparency and push back …it is only normal ….for being fair and efficient
THIS CAP . WAS IT VOTED IN BEFORE OR IS THIS THE SAME ONE ..CAUSE I HEARED THAT THIS WAS TO BE VOTED FOR 5-6 YEARS TAX .. CAN’T
THEY FIND ANOTHER WAY TO PAY THIS RAIL .. EVERY THING IN THIS ISLAND IS ALREADY HIGH . I YET WE PEOPLE HAVE TO SUFFER MORE FOR
OTHER PEOPLES MISTAKES IN THIS LONG AWAITED RAIL WHEN IT WAS SUGGESTED BY THE LATE MR .FASI AND OTHER PEOPLE LIKE TAKE THE CREDIT
FOR THIS ITS OUTRAGEOUS .DUMBFOUNDED .NOW WE ARE ALL SUFFERING WITH THIS UNKNOWN AMOUNT THIS KEEPS CLIMBING WITH NO END …..
Ask the residents who are actually paying for this tax.
If the rail muni bonds is revenue, I will avoid it for a lack of ridership. Only if it is a general obligation bond from taxes would I consider it.
Hey Council People – more and more keeps coming out of my pocket. I would like to have Enough left to psy my rent and have meals. STOP the bottomless Pit!
Fire Ernie. He’s delaying rail.
It’s the mayor and grabby causing the delay. Fire them.