The city Department of Transportation Services would operate and maintain the Honolulu rail line, not the semi-autonomous Honolulu Authority for Rapid Transportation, under a plan that Oahu voters might be asked to approve this fall.

The Honolulu Charter Commission’s four-member Transportation Permitted Interaction Group, chaired by commission member Kevin Mulligan, said in its seven- page report released Monday that all municipal transportation systems — TheBus, HandiVan and rail — should all fall under the DTS’ authority.

The group was critical in its conclusions on current HART governance: “The loss of public confidence in HART and the rail project is a major concern. The problems at HART are in part structural and can be improved by specific changes to the Charter.”

The full commission will decide whether the proposal should advance after public testimony is taken on the idea at 3:30 p.m. June 2.

DTS, which is led by a director appointed by the mayor and confirmed by the Council, now oversees all bus and HandiVan operations while HART makes all decisions involving the now $8 billion rail project.

The report used strong language in arguing that placing all transit operations in the hands of DTS would make them more accountable since that agency answers to the managing director, the mayor, the City Council and, ultimately, voters.

“We believe the current governance structure within HART is ineffectual because the board is limited to policy and prohibited from involvement with the administrative responsibilities of its executive director,” the report said.

“This leads to inadequate oversight, lack of transparency even for board members, and overall dysfunction,” the report said. “It inappropriately separates HART from accountability expected from elected officials until a crisis emerges such as a major cost overrun. In addition, decisions that impact funding and financial responsibilities are too far removed from elected decision-makers and taxpayers.”

The report added, “The rail project requires additional oversight, along with a commitment to openness, new ideas and real accountability.”

Under the proposal, HART would still oversee construction for the project.

Another key component of the proposal is its call to create a new rate commission that would study and recommend fares for the various public transit modes annually, “taking into consideration such factors as transportation equity, accessibility, sustainability and effect on ridership,” the report said.

Those recommendations would then be sent to the Council, which would make the final decisions based on the same factors, the report said.

Melding transit operations with those of bus and paratransit duties under DTS was pressed by Mayor Kirk Caldwell, who made the call for the change in his State of the City address in March.

DTS Director Mike Formby told commission members in March that incorporating all transportation operations into his department would be “transportation equity” by taking into consideration all commuters.

The report also pushes for DTS to seek “non-fare revenues” by, among other things, creating innovative business partnerships; increasing ridership; increasing advertising, concessions and parking in and around transit facilities; and selling or leasing city-owned surplus lands near transit.

“We are looking at other ways of raising revenue for the transportation system other than fares,” Mulligan told colleagues, saying research found rail transit systems in other municipalities typically looked at different revenue opportunities.

Not all support transferring authority over rail operations away from HART. Former City Councilman Gary Okino testified in March that HART was designed to take the politics out of important rail decisions. He pointed out that he’s seen elected officials raid the sewer fund and other special funds for other purposes.

HART Executive Director Dan Grabauskas agreed that all transportation modes should come under one jurisdiction, but did not state a preference on where. He did, however, tell commission members that he believed HART board members have been responsive to the public.

The commission has until Aug. 22 to submit Charter amendment proposals to the city clerk in order for them to be placed on the Nov. 8 general election ballot.

To see the report and the proposal, go to 808ne.ws/1R5xWSF.

P I G Report – Transportation by Honolulu Star-Advertiser