The Honolulu Authority for Rapid Transportation’s board of directors Wednesday approved a federal plan to fund the city rail line’s ongoing construction to a planned station in Kakaako.
The board’s action tentatively makes available $744 million from the Federal Transit Administration to finish the long-delayed, over-budget Skyline system.
Approved under Resolution 11 by HART’s board, the so-called Full Funding Grant Agreement, or FFGA, is next scheduled for City Council review and potential approval.
Afterward, Mayor Rick Blangiardi is expected to formally sign the agreement between the federal agency and City and County of Honolulu, which will operate and maintain the entire Skyline system once it’s built by 2031.
The FFGA — received by the city and HART on Nov. 20 — is still under a 30-day review period by the U.S. Congress, the city says.
“The resolution acknowledges that this is still undergoing review,” city Deputy Corporation Counsel Kathleen Kelly told the board prior to its vote.
Kelly added that board approval of the FFGA was subject to changes “pursuant to the federal review process.” However, she said the board’s resolution “defines that if changes are made to things like the project budget, the project schedule, the grant amount” then it could return for board review.
In 2022 the Blangiardi administration, under what became known as the recovery plan, truncated the last 1.25 miles of guideways and the planned final two stations near Ward Avenue and Ala Moana Center.
That action reduced costs from more than $12.45 billion for a 20-mile, 21-station rail route down to a $9.9 billion system with an 18.9-mile, 19-station line terminating at Halekauwila Street.
The initial nine-station, 11-mile route from East Kapolei to Halawa opened to the public June 30.
Meantime, the FTA is expected to release the grant’s $744 million balance in five installments, between the end of this year and September 2027. That funding release will be based on milestones that include awarding construction contracts and completing contracted work.
The funding range is likely from $119 million to $250 million.
Upon executing the document, which is expected by the end of the year, $125 million of the grant’s balance would be released.
Prior to the vote, board member Natalie Iwasa raised concerns over the apparent lack of documentation — including the city’s 2022 recovery plan — attached to the FFGA relating to rail project costs, operations and maintenance, and similar financial information.
“As I mentioned there are a lot of documents that are being incorporated by reference,” Iwasa said. “And if we don’t even know what those documents are, how can the mayor sign this document, how can the board approve it?”
She added, “I think we need to have clarification on exactly which documents are incorporated because if I’m looking at the wrong thing then I shouldn’t even be asking about this.”
In response, board Chair Colleen Hanabusa questioned Iwasa — a nonvoting HART board member — over those comments.
“So Natalie, are you recommending that we reject the amended FFGA that’s been approved by the FTA, and it’s posted congressionally now, and it’s made it through the congressional committees because of what you consider to be that flaw in the document, that it doesn’t incorporate it?” Hanabusa asked.
Iwasa replied, “I’m not recommending anything except stating that the board should be clear on what is being incorporated” in the FFGA.
“Because if we don’t know what is incorporated how can we even be sure to follow it?” Iwasa asked.
According to Kelly, the city’s recovery plan was “incorporated” into the FFGA.
Later, board member Anthony Aalto said he believes any questions involving rail operations and maintenance had nothing to do with the FFGA or the rail agency.
“We’re not the City and County of Honolulu, we’re HART, we’re building the system,” Aalto said. “Our portion is the capital piece of it, we’re not tasked with (operations and maintenance).”
Ultimately, Hanabusa said the board’s approval of the FFGA would be “up to each board member that votes, when they cast their votes, as to whether or not they believe the information they have before them is sufficient for them to approve this amended FFGA or not.”
Still, Iwasa noted other issues, including Skyline’s future ridership numbers, which were previously forecast to be 119,500 monthly by year 2030.
“Now, I just want to note that we’re down to 84,000 by the year 2032, which is an 11% decrease,” she said. “I think the public really lacks confidence in this project because of the swing in the numbers, and they don’t seem to improve, they seem to mostly be going down.”
According to the city Department of Transportation Services, Skyline’s current ridership totals for the month of October was 92,578, while September tallied 91,088 riders.
After the board meeting, Council Communications Director Kevin Imanaka told the Honolulu Star-Advertiser that the FFGA document was still pending Council review.
“The Council has not received it, but once we do, it will be introduced as a resolution,” Imanaka said via email. “Upon introduction, it will go to Committee and then to the full Council.”
The next committee week is Jan. 9-11, while the next full Council meeting following that will be Jan. 24, he added.
Meanwhile, Scott Humber, the mayor’s communications director, told the Star-Advertiser that the mayor’s office and the managing director received the FFGA agreement this week.
“It is currently under review by both,” Humber said via email.
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Star-Advertiser staff writer Andrew Gomes contributed to this report.
