Mayor Peter Carlisle highlighted his administration’s achievements and outlined a vision for the city’s future that hinges on the $5.27 billion rail project in his State of the City address Thursday.
But Carlisle also acknowledged a list of concerns that have helped turn public opinion against the project.
Citing issues including the awarding of the first contracts before the federal grant money is approved, potential for escalating costs due to change orders and lawsuits, skyrocketing property taxes and potential blight on the city landscape, Carlisle acknowledged the concerns and pledged to be more open and transparent as the project moves forward.
"It starts with leadership and expecting the (Honolulu Authority for Rapid Transportation) board to provide the necessary oversight to satisfy the public," Carlisle said during his address in the Mission Memorial Auditorium, next to Honolulu Hale. "It means setting clear rules regarding change orders, delays, shoddy workmanship and oversight."
Carlisle has said he and his administration will provide more facts on the rail project to counter negative information he says rail opponents are spreading.
"I recognize many residents question the city’s ability to answer questions transparently, to address issues that have been raised and to deliver the project on time and under budget," he said. "Given its price tag, you have a right to scrutinize it and to feel concerned. I feel those concerns as well."
The mayor’s remarks came on the same day the Star-Advertiser reported that city Managing Director Douglas Chin quietly approved a request to suspend city debt guidelines last year to clear the way for significant borrowing needed to finance the project.
Chin’s decision in October to put aside "debt affordability guidelines" the City Council adopted was not publicly announced, and Council Budget Chairwoman Ann Kobayashi said she was never notified.
Other Council members also expressed concerns about not being notified.
"He should at least let us know," Councilman Romy Cachola said. "When it comes to transparency, it has to be improved for us to be working together."
Council Chairman Ernie Martin said the administration, in general, has made efforts to be open and transparent, but "sometimes they still miss the boat."
"Perhaps on that particular issue, where there was no firm legislative mandate to notify the Council on that matter, I think in hindsight they should have, as a courtesy," Martin added.
Chin has said there was no legal requirement to notify the Council, and acknowledged the administration never wrote to Council members. However, Chin said Budget Director Mike Hansen provided the Council with budget data last March showing that borrowing for the rail project would cause the city to exceed the Council’s debt guidelines in the years ahead.
Carlisle on Thursday backed up Chin’s statements, saying the information was provided to the Council last March in communications between the administration and the Budget Committee, which at the time was chaired by Martin.
"I don’t know whether he (Martin) knew the significance of it or whether he actually didn’t see it," Carlisle told reporters after his speech. "It may have been lost somewhere. It was sent over as part of the budget presentation."
Meanwhile, Carlisle’s opponents in this year’s election were quick to criticize his address, pouncing on his pledge of transparency.
Former Gov. Ben Cayetano, who has vowed to kill the rail project if elected, said the debt guidelines suspension calls into question the mayor’s credibility.
"When they talk about transparency, the way they did it leaves a cloud that it wasn’t transparent," Cayetano said. "People have to look at the process they followed and make their own decisions."
Kirk Caldwell, the former managing director and acting mayor, said Carlisle owes the people an apology.
"This shows a total disregard for the public, in my mind," Caldwell said. "This kind of behavior is unacceptable.
"By not doing it in the bright light of day, you create mistrust," he added. "You create fear and that sets the project back."
Cayetano and Caldwell are both looking to unseat Carlisle, who won the job in a special election in September 2010 to fill the final two years of the term vacated by Mufi Hannemann. He won with a plurality among four main candidates, taking 38.8 percent of the vote. Caldwell was second with 34.6 percent.
In the regular elections this year, a candidate can win outright in the Aug. 11 primary with 50 percent plus one vote. Otherwise the top two candidates go to a runoff in the November general election.
A Honolulu Star-Advertiser/Hawaii NewsâNow poll this month showed Cayetano in the lead, followed closely by Carlisle, with Caldwell further back.
Carlisle attributed some of that to name recognition but also to public opinion turning against the rail project. He said he would combat rail opponents by doing more to promote the project and touting its benefits, but he does not expect the election to hinge on that issue.
"I think there are people who have genuine disagreements with me about rail, and they’ve looked at what facts they’ve looked at and they said, ‘You know, I don’t agree with it, but frankly that’s not the only issue,’" Carlisle said.
Cayetano said he expects to be painted as a single-issue candidate, but noted that rail is the only issue that affects all other aspects of city government.
He said Carlisle and Caldwell, both strong rail supporters, should focus more on Hawaii’s identity as a tourist destination.
"You can’t screw up the landscape and the environment and the views and all of that for a city that is basically oriented to tourism," Cayetano said. "People come here because they don’t have to put up with that kind of stuff."
MARTIN SAID he is looking forward to seeing Carlisle’s operating budget for the coming fiscal year, which is scheduled to be delivered to the Council on March 2.
"I noticed he didn’t talk about any proposed fee increases, so that’s something I think we’re going to take a look at," Martin said. "I think the (Capital Improvement Program) budget is going to be very interesting to see how the mayor is outlining what he sees as priorities for the city."
The CIP budget outlines city construction projects, such as road and sewer improvements.
Carlisle provided an update on the city’s progress toward meeting the 2010 federal consent decree governing the city’s wastewater collection system, noting that 122 projects are under way and more than $100 million in construction has been completed in the last year.
"The city is on schedule, in some areas ahead of schedule, and we are in compliance with the consent decree," he said, adding that parties met with a federal judge in January to review the city’s compliance effort.
"I am happy to report no issues or concerns were raised," he said.
On roads, Carlisle said his administration has paved 263 miles of roads, while 261 miles of paving is under way, contracts to pave 97 miles have been awarded and work on 504 miles is pending bidders for paving contracts.
He said the Department of Facility Maintenance was developing a "Pavement Management System" that will allow the city to prioritize the improvements of roads while maintaining the ones already improved.
Carlisle said he does believe the city can afford the rail project along with the improvements to city roads and wastewater treatment.
"We can afford all of those things, and we can do it in a reasonable time as you spread it out over the years," Carlisle said.
HawaiiNewsNow Video: Mayor Carlisle defends rail in State of the City address
Correction: The city is paving 261 miles of roads. An earlier version of this story said 26 miles of paving is underway.
