The federal government has approved up to $184.7 million for construction activities on Honolulu's rail project, allowing work to start before a final federal funding commitment of $1.55 billion. The entire project is estimated to cost $5.27 billion, with various funding sources being considered, including a local tax surcharge. Despite significant lobbying efforts, the project's cost has escalated since its initial budget, raising concerns about its necessity and future financing.

2. RAIL CONSTRUCTION GOT A GO SIGN
The federal government has granted approval
on Monday that will allow the city to begin up to
$184.7 million
in construction and other activities on the city’s
rail project, including erecting the first sections of
raised guideway from East Kapolei to Pearl Highlands
Approval announced by Sen. Daniel Inouye
allows the city to move forward with construction
before the federal government has actually
committed to contributing its proposed
$1.55 billion
share of funding for the 20-mile rail project.
The city hopes to obtain a final commitment for federal assistance by October.

3. RAIL CONSTRUCTION GOT A GO SIGN
WHO GAVE THE APPROVAL?

4. RAIL CONSTRUCTION GOT A GO SIGN
WHO GAVE THE APPROVAL?
THE FEDERAL TRANSIT ADMINISTRATION

5. RAIL CONSTRUCTION GOT A GO SIGN
WHO GAVE THE APPROVAL?
THE FEDERAL TRANSIT ADMINISTRATION
-An agency within the United States Department of Transportation (DOT)
that provides financial and technical assistance to local public transit systems
-Public transportation includes buses, subways, light rail, commuter rail,
monorail, passenger ferry boats, trolleys, inclined railways, and people movers.
-The federal government, through the FTA, provides financial assistance
to develop new transit systems and improve, maintain, and operate existing systems.
-The FTA oversees grants to state and local transit providers,
primarily through its ten regional offices.
-These grantees are responsible for managing their programs
in accordance with federal requirements,
and the FTA is responsible for ensuring that grantees follow federal mandates
along with statutory and administrative requirements.

6. RAIL CONSTRUCTION GOT A GO SIGN
REQUIREMENTS BY
THE FEDERAL TRANSIT ADMINISTRATION

7. 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

8. 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
PRE-AWARD AUTHORITY
-issued Dec 29, 2011
-phase where Honolulu can relocate utilities, procure vehicles
and acquire real estate
-move into final design phase
-project sponsors and the public that the project are eligible
For reimbursement

9. 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
PRE-AWARD AUTHORITY
-issued Dec 29, 2011
-phase where Honolulu can relocate utilities, procure vehicles
and acquire real estate
-move into final design phase
-project sponsors and the public that the project are eligible
For reimbursement
LETTER OF NO PREJUDICE
-the City has to explain the requirements of the project to the public
-City and County of Honolulu can start building pillars

10. RAIL CONSTRUCTION GOT A GO SIGN
However there are some limitations.
The city is only allowed to spend
$184.7 million
on this phase of the project.

11. RAIL CONSTRUCTION GOT A GO SIGN
However there are some limitations.
The city is only allowed to spend
$184.7 million
on this phase of the project.
Concrete pillars can only begin in the following areas:
• the West Oahu/Farrington Highway guideway,
• the Kamehameha Highway guideway,
• the maintenance & storage facility
• near Leeward Community College
• all Farrington Highway stations

12. 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

13. 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
The estimated total cost is
$5.27 billion
($865 million or 20% is set aside as contingency)

14. HOW ARE WE GOING TO GET THAT $
There is no assurance yet:
A full funding grant agreement
$1.55 billion
for the city to receive
(expected from federal funding)

15. HOW ARE WE GOING TO GET THAT $
There is no assurance yet:
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

16. HOW ARE WE GOING TO GET THAT $
There is no assurance yet:
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

17. HOW ARE WE GOING TO GET THAT $
Local Funding:
The ½ 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 )

18. HOW ARE WE GOING TO GET THAT $
Local Funding:
The ½ 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

19. 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

20. 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

21. ADDITIONAL COST FACTORS
City Council approved $400,000
for anticipated new legal cost on
Jan. 27, 2012
BUT…… HART says…..
Construction contracts come in about
$300 million under budget,
as companies compete for jobs
in the tight economy.

22. DO WE REALLY NEED THIS?

23. DO WE REALLY NEED THIS?
Prior to the 2008 Honolulu general elections,
the City spent over $5 million on lobbying
and a public information campaign for the project.
From June 30, 2008, to July 31, 2009,
the city spent nearly$1.97 million on
community outreach efforts, which included
speaker’s 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
Honolulu City Council on steel rail transit system. Nevertheless, at the time
of the vote, voters were under the impression that
Budget Chair
the rail project was to cost only $3 billion.
Ann Kobayashi (District 5) Nearly four years later, the project is now estimated
to cost $5.3 billion.
(according to Feb 8, 2012 Hawaii Reporter )

24. 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.
Government’s role is to make
something a success, and if this
rail’s going be a success, we can’t
bump along and ignore basically
Councilman half of the island population that
Tom Berg (District 1) begs to differ about the idea of
Investing $5 to $10 billion on a
Problematic train that relies on old
and expensive technology.

25. DO WE REALLY NEED THIS?
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