Nine years have passed since city voters supported construction of elevated rail here — with frustration over congested roads outweighing worries about the gasp-inducing cost, then gauged at $4.28 billion.
Jarring spending increases in recent years that nearly doubled the overall projected price tag have rightly rattled even ardent supporters of the half-completed 20-mile, 21-station rail route.
A target of criticism has been the Honolulu Authority for Rapid Transportation board of directors, which has mostly said “yes,” often voting unanimously, to cost-boosting requests.
So the board’s move last week to hit the pause button on cutting a $20.3 million check to Hawaiian Electric Co. (HECO) seemed uncharacteristic. The proposed deal was years in the making, and deferring the matter was unexpected.
HART and HECO signed an agreement last year that allows for most of the overhead lines along the first 11 miles of the rail route to stay put, with the city instead buying 15 specialized vehicles and other gear for the utility so it can maintain the lines. Otherwise, HART would be tapped to spend an estimated $200 million to relocate them.
Given the unpalatable choices, the agreement appears to be the reasonable option going forward. But some board members now want to see if HART should receive some compensation if the vehicles are used for non-rail purposes. Like it or not, if some board members are still worried that HART is not getting a fair deal, then this short pause should be used optimally to ensure soundness for taxpayers.
A report filed by city Auditor Edwin Young in 2016 sharply criticized HART’s financial planning, citing a need to “improve financial management, planning, project management, contract administration and other operations to ensure the rail project costs are minimized.” With a follow-up audit now in the works, the HART board appears to responding with a sharper eye on spending.
In November, the board delivered a “no” when it rejected a request by rail staff to increase a key engineering contract by nearly $18 million, with several board members asserting they didn’t have enough information to approve the additional spending. At that time, Terrence Lee, HART board vice chairman, justifiably asked staff to be “hyper diligent” about scrutinizing cost increases. “When you’re dealing with an $8.2 billion project, there’s a temptation to say, ‘Well, you know, $10,000 — that’s nothing,’” Lee said. “But it is something.” Indeed it is, to taxpayers footing the bill for the rail route.
Also concerning: Due to a recent reshaping of the board, a single member, John Henry Felix, was able to nix the HECO deal, 7-1, last week. Eight votes were needed to meet a quorum requirement set last year when the board expanded — from 10 members to 14 — even though new members (financial experts, all) are non-voting and ex-officio.
The high bar set by the Legislature, with the passage of Senate Bill 4 (now Act 1) in a special session in August, could result in unreasonable delays in efforts to strike efficient and cost-effective deals. (Indeed, the HART board decided in executive session to reconsider the 7-1 vote in apparent hopes of salvaging the HECO agreement, which will be taken up again next month).
The quorum count should be lowered to include voting members only — without losing the new members, who are needed to help guide the rail project into its final, most difficult stretch in the city’s center.
Mayor Kirk Caldwell has proposed amending the City Charter to clarify the quorum rule — so it could be fewer than the normal “majority of the entire membership.” The City Council should give that proposal serious consideration, and approve a measure that can be placed before the voters in November’s general election.
Back in 2008, when voters narrowly backed the controversial rail project, the city envisioned limited rail service starting in November 2013 followed by full service by the end of 2018. We’re already shouldering hefty costs tied to unnecessary setbacks. Going forward, the HART board will need to watch both money and time, and strike a wise balance between the two.