BUDGET ON

HONOLULU RAIL TRANSIT PROJECT

RAIL CONSTRUCTION GOT A GO SIGN

federal government has granted approval Monday that will allow the city to begin up to

construction and other activities on the citys l project, including erecting the first sections of sed guideway from East Kapolei to Pearl Highlands

84.7 million

roval announced by Sen. Daniel Inouye ows the city to move forward with construction ore the federal government has actually mitted to contributing its proposed

re of funding for the 20-mile rail project. city hopes to obtain a final commitment for federal assistance by October.

.55 billion

RAIL CONSTRUCTION GOT A GO SIGN THE APPROVAL? WHO GAVE

RAIL CONSTRUCTION GOT A GO SIGN THE APPROVAL? WHO GAVE

THE FEDERAL TRANSIT ADMINISTRATION

HE FEDERAL TRANSIT ADMINISTRATION

RAIL CONSTRUCTION GOT A GO SIGN O GAVE THE APPROVAL?

n agency within the United States Department of Transportation (DOT) at provides financial and technical assistance to local public transit systems

ublic transportation includes buses, subways, light rail, commuter rail, norail, passenger ferry boats, trolleys, inclined railways, and people movers.

he federal government, through the FTA, provides financial assistance develop new transit systems and improve, maintain, and operate existing systems.

he FTA oversees grants to state and local transit providers, imarily through its ten regional offices.

hese grantees are responsible for managing their programs accordance with federal requirements, d the FTA is responsible for ensuring that grantees follow federal mandates ong with statutory and administrative requirements.

RAIL CONSTRUCTION GOT A GO SIGN REQUIREMENTS BY

THE FEDERAL TRANSIT ADMINISTRATION

RAIL CONSTRUCTION GOT A GO SIGN REQUIREMENTS BY

THE FEDERAL TRANSIT ADMINISTRATION

RECORD OF DECISION -issued Jan 18, 2011 -City and County of Honolulu met all of the laws and regulations of the environmental review

RAIL CONSTRUCTION GOT A GO SIGN EQUIREMENTS BY

HE FEDERAL TRANSIT ADMINISTRATION

ECORD OF DECISION issued Jan 18, 2011 City and County of Honolulu met all of the laws nd regulations of the environmental review

RE-AWARD AUTHORITY issued Dec 29, 2011 phase where Honolulu can relocate utilities, procure vehicles nd acquire real estate move into final design phase project sponsors and the public that the project are eligible or reimbursement

RAIL CONSTRUCTION GOT A GO SIGN QUIREMENTS BY

E FEDERAL TRANSIT ADMINISTRATION

CORD OF DECISION sued Jan 18, 2011 ty and County of Honolulu met all of the laws d regulations of the environmental review

E-AWARD AUTHORITY sued Dec 29, 2011 ase where Honolulu can relocate utilities, procure vehicles d acquire real estate ve into final design phase oject sponsors and the public that the project are eligible r reimbursement

TTER OF NO PREJUDICE e City has to explain the requirements of the project to the public ty and County of Honolulu can start building pillars

However there are some limitations.

RAIL CONSTRUCTION GOT A GO SIGN

The city is only allowed to spend

$184.7 million

on this phase of the project.

However there are some limitations.

RAIL CONSTRUCTION GOT A GO SIGN

The city is only allowed to spend

$184.7 million

on this phase of the project.

oncrete pillars can only begin in the following areas: he West Oahu/Farrington Highway guideway, he Kamehameha Highway guideway, he maintenance & storage facility ear Leeward Community College ll Farrington Highway stations

SO HOW MUCH DOES IT COST? The entire rail project:

-20 miles rail line -21 stations (high-level platforms) -From East Kapolei to Ala Moana Center -uses 720 concrete columns -80 vehicles

SO HOW MUCH DOES IT COST?

he entire rail project:

0 miles rail line 1 stations (high-level platforms) rom East Kapolei to Ala Moana Center ses 720 concrete columns 0 vehicles

he estimated total cost is

865 million or 20% is set aside as contingency)

$5.27 billion

There is no assurance yet:

HOW ARE WE GOING TO GET THAT $

A full funding grant agreement

$1.55 billion

for the city to receive

(expected from federal funding)

There is no assurance yet:

HOW ARE WE GOING TO GET THAT $

A full funding grant agreement

$1.55 billion

for the city to receive

(expected from federal funding) For planning and design, Congress appropriated

$65 billion Obama Administration awarded another $55 million

There is no assurance yet:

HOW ARE WE GOING TO GET THAT $

A full funding grant agreement

$1.55 billion

for the city to receive

(expected from federal funding)

ts ha T $65 billion ot Obama Administration awarded another n h! ug $55 million eno

For planning and design, Congress appropriated

ocal Funding:

HOW ARE WE GOING TO GET THAT $

$810.4 million

he percent surcharge on the eneral Excise and Use Tax (GET) aid by residents, business and tourists

as of January 23, 2012, according to Honolulu.gov )

otal surcharge revenue collected to date, 5 percent of GET estimated revenue

Local Funding:

HOW ARE WE GOING TO GET THAT $

The percent surcharge on the General Excise and Use Tax (GET) Paid by residents, business and tourists

$810.4 million

Total surcharge revenue collected to date, 25 percent of GET estimated revenue

as of January 23, 2012, according to Honolulu.gov )

The GET surcharge dedicated for the Honolulu Rail system began in January 2007 and set to expire on Dec. 31, 2022

ADDITIONAL COST FACTORS

The state financial study, publicly released on December 2, 2010, indicated that the project would likely experience a $1.7 billion overrun above the $5.3 billion projected cost, and that collections from the General Excise Tax would be

30% below forecasts

ADDITIONAL COST FACTORS

Project delay cost at least $15 million West Oahu/Farrington Highway Guideway)

A federal lawsuit including former Gov. Ben Cayetano totaled more than $1.87 million with seven law firms hired for legal bills (as of Jan 26, 2012, according to Star-Advertiser)

State Supreme Court lawsuit to stop work until archaeological survey along the entire road is completed

ADDITIONAL COST FACTORS

City Council approved $400,000 for anticipated new legal cost on Jan. 27, 2012 says.. contracts come in about under budget, compete for jobs economy.

BUT HART Construction $300 million as companies in the tight

DO WE REALLY NEED THIS?

DO WE REALLY NEED THIS?

Prior to the 2008 Honolulu general elections, the City spent over on lobbying and a public information campaign for the project. From June 30, 2008, to July 31, 2009, the city spent nearly on community outreach efforts, which included speakers bureaus, workshops, a public television show, and community events.Over $700,000 was also spent on printed material related to the project. The campaign successfully advocated the proposed rail system to the general public and elected officials, as 53% of voters voted in favor of the charter amendment establishing a steel wheel on steel rail transit system. Nevertheless, at the time of the vote, voters were under the impression that the rail project was to cost only $3 billion. Honolulu City Council Nearly four years later, the project is now estimated to cost $5.3 billion. Budget Chair (according to Feb 8, 2012 Hawaii Reporter )

$5 million

$1.97 million

Ann Kobayashi (District 5)

DO WE REALLY NEED THIS?

Berg voted against the additional funding, saying he would rather the city revisit the environmental Impact statement and adopt a different rail technology such as magnetic levitation. Governments role is to make something a success, and if this rails going be a success, we cant bump along and ignore basically half of the island population that begs to differ about the idea of Investing $5 to $10 billion on a Problematic train that relies on old and expensive technology.

Councilman Tom Berg (District 1)

DO WE REALLY NEED THIS?

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