Why Panos Prevedouros left Hawaii

Mahalo to Dr. Keli'i Akina for the invitation and probing questions.

The state is at risk of a major natural catastrophe, he says, and its “suicidal” energy policy will just make everything worse

Hawaii’s policy mandate to go to 100% renewable energy is nothing short of suicidal.

That was the message of Panos Prevedouros, former chairman of the University of Hawaii civil engineering department, who spoke with host Keli’i Akina, president of the Grassroot Institute, on the June 22 episode of “Hawaii Together.”

Described by Akina as “one of Hawaii’s leading public intellectuals,” Prevedouros moved just last year from Honolulu, his home of 31 years, to Reno, Nevada. During his half-hour conversation with Akina, he explained why. Foremost was his concern about Hawaii’s energy policy and its relation to personal safety.

Because of its geographical isolation, he said, Hawaii needs reliable energy. In the event of a natural disaster, for example, Hawaii’s hospitals “must have reliable electricity for 10, 15, 20 days, or however long it takes for the military and other external providers of health assistance to come help a highly populated island like Oahu or Maui.”

Renewable options like wind and solar farms are not highly reliable, he said, especially since they can be totally demolished by the strong hurricane winds. Thus, Hawaii should be making reliability its top priority, even if that means using coal.

In general, Prevedouros said, Hawaii is totally unprepared for a natural disaster.

“I don’t see the [power] plants [or airports] being hardened. … Our harbors are absolutely not prepared to deal with a major surge from a hurricane or a major surge from a tsunami. Our harbors will be a complete mess. There will be cranes and they’re toppled and there will be containers all over the place.”

And when the Navy arrives from San Diego to help, he warned, “there will be nowhere for them to dock. Nobody is preparing plans to have resilience in our harbor.” 

He said the failure of Hawaii’s politicians to prepare better for a disaster is not peculiar to Hawaii.

“That’s a malaise that exists almost everywhere politically, because politicians, really, do not take a 1% to 2% risk very seriously, and plan to invest big money in that. However, unfortunately, bad luck … really catches up with these things, and we really need to protect the population.” 

Prevedouros said aside from his fears for his family’s safety, he left his beloved Hawaii because of a litany of “wrong” policy decisions.

“One wrong decision does not really change the whole picture,” he said. “There were so many wrong decisions, a litany of which, that, actually after that, I said, ‘Enough is enough.’” 

Well known as a critic of the Honolulu rail, Prevedouros said the recent proposal to stop the system a mile or so short of Ala Moana Center is “definitely a step in the right direction, but it’s not enough. They should have had the guts to stop it at Middle Street, and they probably will be forced to do something like that because now we have the other gift: inflation” — which is sure to drive up its construction costs.

To watch the entire conversation, click here.

Is Hawaii Becoming a Perfect Contradiction?

 

1. The state depends on tourism but cannot guarantee covid regulations for conventions in 2022.
2. An island state without ferries but more than enough "environmentalists" that killed the Superferry.
3. A state with the best astronomy in the world, but with enough cultural opposers that killed the 30 Meter Telescope.
4. A place where people have multiple jobs and things to do that they cannot carpool two or three at a time, but will take a train 500 at a time.
5. A place where politicians such as Ige and Caldwell do not deserve one term, but were voted into top office twice.
6. A state with a button pusher who drove us all nuts, and still kept his state job.
7. The state with the most workers per capita, but 15 months after the lockdown does not have nearly enough workers to clear the unemployment benefits backlog.
8. The Aloha State takes care of ohana, but has the most homeless per capita.
9. A state with modest incomes and high cost of (basic) living has exorbitant housing costs and a high preference for private K-12 education at $20,000 or more per year!
10. A state having among the highest taxation delivers among the worst public K-12 education in the US.
11. A state that has a waste to energy plant that makes electricity, but prefers to ship recycled paper waste 2,000 miles away.
12. A state that has no connection to external electric grids for help, but focuses on unreliable intermittent energy for baseload power supply.
13. A state with a rich volcanic reservoir enough to solve its energy problem, but hates geothermal energy development (New Zealand has a profit sharing scheme for use of culturally sensitive geothermal energy for the benefit of the indigenous Maori.)
14. A state that has an 85% dependency on imported food, but converts prime agricultural lands such as Koa Ridge and Aloun Farms to cookie cutter suburban subdivisions (that are primarily car dependent too.)

Finally an Article that Describes Me Well: Why Some People Are Willing to Challenge Wrongs

"The traits of a moral rebel

First, moral rebels generally feel good about themselves. They tend to have high self-esteem and to feel confident about their own judgment, values and ability. They also believe their own views are superior to those of others, and thus that they have a social responsibility to share those beliefs.

Moral rebels are also less socially inhibited than others. They aren’t worried about feeling embarrassed or having an awkward interaction. Perhaps most importantly, they are far less concerned about conforming to the crowd. So, when they have to choose between fitting in and doing the right thing, they will probably choose to do what they see as right."

That's right!

SOURCE:  Analysis: Why some people are willing to challenge behavior they see as wrong despite personal risk

Urban Transit After COVID-19

 Excellent input by transportation experts Robert Poole and Steve Polzin.

==============

Urban Transit After COVID-19

Here is a recent set of headlines from a couple of reputable sources, to introduce a discussion of how urban transit will need to change when we enter the post-pandemic period:

• “Remote Work Is Here to Stay. Manhattan May Never Be the Same,” Matthew Haag, The New York Times, March 29, 2021
• “If Rush Hour Dies, Does Mass Transit Die with It?” Henry Grabar, Slate, Feb. 11, 2021
• “Riders Are Abandoning Buses and Trains. That’s a Problem for Climate Change,” Somini Sengupta, et al., The New York Times, March 25, 2021

The reporters of these stories reflect genuine concerns, but my impression is that many in the transportation community have not fully thought through the implications for urban transit in the “after” COVID-19 times.

One expert who has is Steve Polzin, a former transit official, university professor, and most recently as a senior advisor for research and technology at the U.S. Department of Transportation. After reading a detailed paper that he and a colleague produced while at DOT last fall, Reason Foundation commissioned Polzin to write a policy brief focusing specifically on how transit will have to change, and why. The new report, “Public Transportation Must Change after COVID-19,” was published last week and you can find it here.

Polzin first reminds us that in the five years prior to the coronavirus pandemic, transit experienced a significant loss of ridership, before appearing to stabilize at a lower level by 2019. Then the pandemic led to former transit riders avoiding buses and rail transit in favor of cars, bikes, walking, and working at home. Comparing January 2020 (pre-pandemic) with January 2021, unlinked transit trips were 65% less (though transit vehicle miles of service decreased only 23% for the same months).

Alas for those hoping for a post-pandemic return to “normal,” among the factors leading to permanent changes are, of course, some degree of permanent shifts to working from home, either part-time or full-time, along with the continued popularity of network companies like Lyft and Uber, a millennial generation that is getting older and buying houses in the suburbs, and a general movement of people and companies from higher-density to lower-density locations.

Polzin points out that even if many people work at home Mondays and Fridays, but still work in the office mid-week, this will “make it harder to justify peak capacity capital investments and complicate service scheduling.” In terms of permanent work-at-home shifts, he notes that if this share doubles from pre-pandemic levels of 5.7% to about 12% of people working from home, that could mean 15%-to-20% fewer downtown workers, a major change for downtown-focused rail transit systems.

Another section of the brief looks at declining vehicle occupancy by transit mode: bus, light rail, heavy rail, and commuter rail. All four are down significantly, but some much more than others. And this makes a surprising difference in the environmental friendliness of these modes. Here is his comparison of pre-pandemic vs. December 2020 fuel economy of various commuter modes, drawn from the U.S. Department of Energy Alternative Fuels Data Center plus estimated occupancies from the National Transit Database. The metric is passenger miles per gasoline gallons equivalent; hence the highest numbers are best.

Commuting Mode	Pre-COVID	Current
Heavy rail	50.4	18.0
Automobiles	41.7	41.7*
Commuter rail	39.6	10.9
Light trucks/SUVs	36.1	36.1*
Transit bus	26.6	14.5
Demand response (Uber, Lyft)	9.2	9.2*

*assumed to be unchanged

As of December 2020, the most fuel-efficient means of commuting was the car, followed by light trucks—but only because occupancy embedded in the transit calculations was so drastically low. Obviously, when we get past the pandemic those figures should rise but whether mass transit will be able to rebuild enough ridership to be more fuel-efficient (and hence more carbon-friendly) remains to be seen, and as you can see from the current numbers, transit has a long way to go.

A major premise of the Biden administration’s transportation agenda is to greatly increase federal spending on transit, compared with only modest, constrained increases for highways (with very little scope for adding highway capacity). This approach poses major risks of putting billions of taxpayer dollars into projects that will have costs far greater than their benefits (e.g., light rail systems for medium-sized cities, megaproject expansions of heavy rail and commuter rail systems, etc.).

At the very least, it is premature at this juncture to commit funding for major new rail transit projects before we have some idea of the extent of transit ridership in the first several years after nationwide vaccinations.

Belated Praise from Bob Jones!

Praise from Bob Jones? It's 2020 after all! Mahalo for the acknowledgement. When it's all said and done, I'll be 3x correct. Plus one. The first three were cost, complexity of delivery, and low ridership (~50% off TheBus.) The plus one is the new normal: Zoom and telecommuting, distancing requirements, shrinkage of services, and Uber and automated vehicles/robotaxis.

===============

Covid-19 is, understandably, #1 on the news cycle in Honolulu these days. But we have a Primary election coming Saturday and I wonder if everyone will forget and forgive about the train cost and delay.

The local gadfly Panos Prevadouros — who’s probably a much better civil engineer and professor than a would-be politician — got some of it strikingly right in his long fight against the elevated train project.

When the cost was just $5 billion, he showed that even if it served 7% of Oahu travelers (the City figure) it would be an irresponsible expenditure.

Little did we guess that the final cost might be $10 billion and the finish date so far in the future that we might all be traveling by air cars or rocket packs by then!

And to think that we embarked on this project with just 50.6% of those who voted saying yes to it. Not exactly a resounding huzzah.

Picking Your Candidates? Don’t Forget The Train, The Train, The Train, The Train

================

My June Commentary on Trump and the Pandemic, Masks, and Hawaii Tourism

The late June Covid-19 situation in AZ, FL and TX (see 1) is a second chance for Trump to re-set his stance on the pandemic, for a chance to win. Or he can double down on absurdities and toast himself... because he isn't losing thanks to Biden's abilities and platform.

A consistent, transparent and measured response to the virus will do it:

• Promote open air activities,
• Use disinfection,
• Keep distancing,
• Use masks in crowded environs, and
• Educate people with Covid-19 pre-conditions to avoid crowded indoor environments (even with family and friends.)

The anti-mask rhetoric has become absurd: We all know that decades of use of masks by doctors, nurses and the Japanese did not asphyxiate them, and did not turn them into communist peons or face covering Muslims. Relax and protect yourself. Remember the virus loves a crowd and gets to you via the nose or mouth.

Use your common sense. For example, my common sense says to use the mask inside a Costco or any supermarket because some isles are crowded and usually someone will cough or sneeze during the time I am there. My common sense says to pass on using the mask at Costco gas or any gas station. It's open air, I'm there for 2-3 minutes only, and typically there's nobody near me.

It doesn't matter much what rules Hawaii will establish for tourism... Given the anti business mindset of the people in charge, Hawaii will make itself even less attractive than other sunny places, thus prolonging its economic misery.

The facts are these: (1) airport travel volume is around 10% compared to 2019, (2) no large hotels will open to operate at 10% capacity and at nearly 100% cost, and (3) marketing Hawaii as a safe destination makes little sense since it involves a 12 or 17 hour round trip in an airplane from California or Japan; this is a much higher risk than time spent at the beach or in a spaced out restaurant.

Bottom line, tourism will happen at its own terms, not at ours. Politicians and regulators are clearly part of the problem in this arena, in making rules that mostly inconvenience Hawaii based travelers.

Note (1): That's the problem with summer... hot and humid weather in AZ, FL, TX, etc. which makes the outdoors less inviting for long periods, and air conditioned spaces highly desirable... thus crowding many people in enclosed spaces with recirculating chilled air. Just what the virus needed for spreading. On a positive note, the crowds seem to include less vulnerable people, so in some states case numbers are way up, but Covid-19 fatalities are nowhere near what NY had in March.

Hawaii Wakes Up to Fake Missile Attack

Hawaii suffers from government unions which are the institutionalized protection (if not cultivation) of incompetence, laziness and un-accountability. These unions have become so big and powerful that most of the time succeed in electing politicians of their choosing, and control them to their liking. All this dysfunction lead to today's international embarrassment of the fake ballistic missile attack.

This must not be another day in paradise. Heads should roll. Preferably 38, one for each minute of absurdly incompetent failure to recall the alarm.

The Great Train Robbery

"The now nearly 50-year experiment with transit subsidies has fallen well short of expectations. A more practical result could be obtained by better prioritization of funding to meet the greatest needs in the metropolitan reality as it currently exists. . . . In the cities without legacy cores, and in the suburbs of cities with legacy cores, we should focus on the needs of those unable to provide their own mobility. This is far more socially responsible than adding expensive services such as urban rail that have shown virtually no evidence of reducing driving alone. . . . In the vast majority of markets, transit has not lured drivers from their cars to relieve congestion or improve air quality. And it is wasteful to commit transit funds to achieve purposes other than improved transportation, such as city-building or place-making. Transportation is too important to economic growth and prosperity to be subject to utopian notions."

–Joel Kotkin and Wendell Cox, "The Great Train Robbery: Urban Transportation in the 21^st Century," Center for Demographics & Policy, Chapman University, 2017

Experts split on rail’s options

Experts split on rail’s options was the title of an article by Kathleen Gallagher in the Pacific Business News on November 20, 2015.

The experts are I, Paul Migliorato, research analyst at the Pacific Resource Partnership, and Mayor Caldwell.

My take was as follows: “The pain of having the project go through town is insufferable,” said Panos Prevedouros, department chairman and professor of transportation engineering at the University of Hawaii. “It’s only going to get worse, the council should do their best to shrink the project. It’s not just about financials, it will kill our reputation and quality. We will become the laughingstock of the tourist industry.”

Paul Migliorato made excuses: the issue with the budget is that the original estimate was “unrealistic”. “The problem is when creating the budget they didn’t make it project specific so it wasn’t realistic.”

Paul's statement directly points to the failure of the Federal Transit Administration to insist on a reasonable instead of a rosy budget, as I exposed in $10 Billion: The Ultimate Price Tag for Honolulu Rail.

And the mayor is wrong, as always: "Stopping the project now also sets Honolulu at risk of[to] become a “laughingstock” of the federal government, according to Caldwell."

Honolulu, HART and its contractors are the laughingstock of the not only the federal government but the nation as a whole for achieving expenditures similar to the Big Dig for their "light rail."

Mayor Caldwell, nobody is stopping your rail.  We are asking you to use good sense and make lemonade with the lemons that you bought instead of railroading our town for the sake of wasting ten billion dollars.

Highlights of HART Rail Project (2004 to 2015)

2004: Newly elected mayor Hannemann asserts that 34 miles of rail will cost $2.7 Billion.

Mid-2006: Hannemann switches to the Minimum Operating Segment: 20 miles will cost about $3 B.

Late-2006: Alternatives Analysis sets the cost at $4.6 B (this figure and all following figures include contingency funds).

Spring 2008: Hawaii legislature approves a 0.5% tack-on to Hawaii’s GET tax that applies to every transaction. Against expectations, Republican Governor Linda Lingle opted to save her political career and let the rail tax stand without a veto. The rail is expected to generate about $2 B. The gravy train has thus been established.

Summer 2008: Mayor Hannemann up for reelection gives a helicopter ride to Senator Oberstar who then says that the Feds will give Honolulu $900 M. Hannemann declares that “the train has left the station.”

2008: The author runs against Hannemann in a three way ray, garners 17% of the vote, and forces Hannemann to the general election which he won. The public is deluged with city, union, Hannemann campaign and FTA-approved “Light Rail” commercials, emails and letters, and a 50.6% “yes to rail” is obtained. Hannemann’s was clearly an rail project financed campaign.

2009: Rail’s budget cannot pass scrutiny – President pro tempore Senator Inouye of Hawaii joins the rail party. FTA is strong-armed to pay $1.55 B.

2010: Four years after the Alternatives Analysis was completed, and three years after the start of tax collection, the project has no environmental clearance, no cultural resources clearance and no robust budget. During the elections, a referendum to create HART is approved. Hannemann quits, runs for governor and loses. A three way race for the remaining term for mayor among Carlyle, Caldwell and the author is won by city prosecutor Carlisle.

2010: The cost is up to $5.4 Billion not counting the expensive Airport Runway proximity error; $150 M realignment is necessary to avoid coming near a major runway. Nobody is punished for this error that HDOT had informed the city in advance. Costs were “absorbed” by contingencies.

2010: Outgoing Governor Linda Lingle releases an independent financial analysis of the project by IMG and Thomas Rubin which concluded that construction cost will likely be more than the $5.4 B projection, ridership projections were both very high and would require passenger loads significantly higher than that of any U.S. transit operator, future rail renewal and replacement costs were ignored, operating subsidies were significantly understated, and many projected revenues were significantly overstated.  Mayor Carlisle dismissed the report as “a product of rail opponents.”

2011: Mayor Carlisle performs a “ceremonial groundbreaking” but only utility relocation occurs afterwards. The project still aims for a 2019 completion.

2011: Mayor Carlisle claims a steel price reduction due to the slowing of the Chinese economy and the project’s budget drops to $5.17 B. However, at this point the budget language has changed and the “unallocated contingency” is only about $300 M. FFGA is signed at year’s end.

2012: Both a NEPA and a Hawaiian burial ground desecration lawsuit are filed, the former in Federal court the latter in State court. Only the second lawsuit causes construction restrictions in areas where archeological surveys had not been done.

2012: Construction accelerates at the casting yard and the first piers appear in the middle of prime agricultural land. The first four miles of the project are on agricultural land. Carlisle loses in the primary. Two Democrats, Kirk Caldwell (pro rail) wins the mayor race over past governor Ben Cayetano (anti rail.) Although some frame it as another victory for the rail project, Cayetano’s battles with unions during his eight years in the governor’s office were a major cause for his loss.

Mid-2014: 9^th Circuit court appeal ends unsuccessfully for the plaintiffs of a NEPA-based suit.

December 2014: HART reveals a $910 projected deficit and asks and gets for more tax monies.

December 2015: HART proposes to open 10 miles of rail service in 2018.

Letter to the Honolulu City Council: Hoopili Doesn’t Fit

Mahalo to Honolulu Civil Beat for publishing my Letter to the Honolulu City Council: Hoopili Doesn’t Fit.

This version includes the pictures in Appendices A and B.

I concluded by saying that it baffles me beyond belief that the Honolulu City Council is serially approving future development such as Ho'opili and transportation projects like the rail that are certifiably calamitous for our island community.

What Can We Do About The Rail? Nothing. Tackle Traffic Congestion!

Originally published in the Honolulu Civil Beat.

Various groups are energized and urge me and each other to do something about stopping Honolulu’s rail project.  The recent commotion has been brought about by (1) the large delays;  the project is roughly three years behind schedule because the city did a poor job with the archaeological inventory and then deliberately delayed and obstructed the two lawsuits; (2) the revelations last December that the project is already about $900 million over budget, and (3) the City Ethics Commission’s investigation on the non-disclosure of rail project related gifts to five City Council Members, which could potentially reverse some important pro-rail votes and approvals.

So what can be done about stopping the rail project now? Nothing, other than holding HART and the City accountable for project expenditures. Unfortunately this is easier said than done given that between FY 2008 and FY 2012 more than $550 million were spent and hardly any project was laid on the ground!

Other agencies on the mainland can complete a 10-mile multilane freeway including all planning, design and clearances for this sum of money.  But for $550 million we got TV and newspaper ads, building and office rentals, salaries, travelling expenses for planners and officials, piles of Xeroxing and plain and 3-hole paper, laptop and desktop computers, cellphone and courier bills, and magazine subscriptions.

And a lot more traffic congestion since 2006 when the rail project started.

What’s the bottom line on traffic congestion on Oahu?

Honolulu has among the worst traffic flow conditions in the nation because it is grossly lane deficient, that is, Honolulu has too few lane miles for its population and travel patterns.

Honolulu rail will never provide any congestion relief for the traveling public. By the time some usable portion of the project is done, say, Kapolei to Pearl City, its (tiny) traffic reduction will be already surpassed by traffic growth given the tens of thousands of planned new homes west of Aloha Stadium.

Starting this year, there will be extensive lane closures to build the guideway and the street-spanning stations.  HART can’t build 21 roughly football field sized concrete stations 30 ft. in the air and leave lanes open to traffic under it during construction. In a typical scenario, half of Farrington Fwy., Kamehameha Hwy., and Dillingham Blvd. will have to be closed for many months at a time.  

Next year the project may be in the vicinity of Pearl Harbor and Aloha Stadium. As a result, word will get out in the tourist market that Oahu is one huge traffic and construction mess.

Assuming that construction progresses normally, around year 2017, construction by the airport will have major impacts on the access and land-side operations at the Honolulu International Airport. This will be quite annoying to frequent interisland travelers and on occasion it may result in missed flights.

Around year 2020, several street blocks in downtown and Kakaako will be closed for months at a time. A long, dissecting portion of Kakaako will be an active construction site. Neither shop owners nor patrons can be allowed in a construction site. Mauka-makai movements between Chinatown and Ala Moana will be critically affected. Kakaako’s revitalization will be heavily impacted.

Despite all this, given Hawaii's political and decision making reality, at this time there is no point to “fight the rail.” But there is a clear need to fight for traffic congestion solutions. This is what Oahu needed to begin with.

What can be done about congestion?

First let’s not forget that the Hawaii State DOT added a lane on each side of the central part of the H-1 Freeway in 2014. This has helped a lot!

Also, the Hawaii State DOT is adding a lane on each side of the Pearl City viaduct on the H-1 Freeway. It’ll help somewhat, but this one lane per direction addition is not enough for the current, let alone future levels of demand to/from west Oahu.

There are also some plans to add a lane at the H-1/H-2 merge.  This lane addition, if implemented, will be “too little too late” but will provide some congestion relief. The long queues and long periods of stop-and-go congestion will get a little shorter.

There are many more options. Here is a sample of past suggestions, many of which are readily applicable today:

• Slideshow of sample solutions and initiatives.
• Descriptions of short and long term solutions.

How can Oahu get congestion relief?

Fundamentally, we must:

• Get a grip with reality and stop believing that rail will reduce traffic congestion on Oahu at any time in the future.
• Aggressively install lane additions, contraflow lanes, bypass lanes and bus-on-shoulder operations before the impacts of rail construction choke west Oahu’s mobility.
• Realize that Saudis and fracking will keep the cost of fossil fuels at moderate levels, and Congress won't tax transportation fuels in a substantial way. Economic brakes to driving won't apply for several more years.  Thus traffic will grow and so will congestion.
• Promote effective solutions for traffic congestion relief through the government channels. Additions of new traffic lanes should be a priority.
• Create a non-governmental Oahu Mobility Group. Currently businesses and business organizations are asleep at the wheel when it comes to traffic congestion, which costs them dearly, while government is relying on silly projections of congestion relief with public transit, smart growth, TODs and complete streets. The government is working on improvements for the 10% of the travelers with “alternative transportation and life styles.” It largely ignores the 90% of the travelers that use cars, carpools, mopeds, motorcycles and buses on congested streets. A strong voice is needed to set transportation priorities right.

Once again, what can be done about Honolulu’s rail project?

I think that in a few years there will be substantial appetite to terminate the rail at the airport or at the Iwilei end of Dillingham Blvd. and to continue the rail's original Ala Moana, Waikiki and University routes with bus circulators on priority lanes. The powers that be may adopt this as a win-win compromise if the effect of rail construction is too much for locals, and for tourism arrivals and operations. Or if the electorate (finally) gets mad at them.

Hawaii's Demise Through the Eyes of the Economist

Homelessness in Hawaii is now international news. The local socialist mindset proposed to offer the homeless houses for free so we can get them off the streets so Honolulu doesn't look bad.  If this happens, the result is predictable: We will get even more of them.

In fact all this is old news: Homeless? Buy a One-Way Ticket to Hawaii -- Hawaii "is attracting homeless people from the mainland US by offering food, a bed, and health care for just $3 a day."

Obviously we are seeing the payoffs of decades of socialism:

• Homelessness
• Dilapidated infrastructure
• Poorly performing public schools
• Unfunded pensions
• Quick approvals for million dollar apartments in Kakaako
• Destruction of agriculture for cookie-cutter homes (Ho'opili)

 and of course,

• A useless multi-billion dollar rail.

In another article, the political base of Pres. Obama, Illinois, is called America's Greece!

Next year they'll do a follow up: Is Hawaii America's Spain? Spain sunk billions in renewables, trains and overbuilt subdivisions. And they sunk their country.

Smart Growth v. Suburbanization Score is 0-1

The Economist: A Suburban World explains that urban trends are driven more by the masses and less by the political, academic and "environmental" elites that love to dictate how the hoi polloi should live.

In short, despite rules, penalties and incentives Smart Growth lost to Suburbanization.  The following highlights from the article show why.

• The planet as a whole is fast becoming suburban. In the emerging world almost every metropolis is growing in size faster than in population. Having bought their Gucci handbags and Volkswagens, the new Asian middle class is buying living space, resulting in colossal sprawl. 

• Neither the car nor the motorway caused suburban sprawl, although they sped it up: cities were spreading before either came along. Nor was the flight to the suburbs caused by racism.  The real cause was mass affluence. As people grew richer, they demanded more privacy and space. Only a few could afford that in city centers; the rest moved out.

• Romantic notions of sociable, high-density living—notions pushed, for the most part, by people who themselves occupy rather spacious residences—ignore the squalor and lack of privacy [that comes with high density].

• The Western suburbs to which so many aspire are healthier than their detractors say. Even as urban centers revive, more Americans move from city center to suburb than go the other way.

• Suburbanites tend to use more roads and consume more carbon than urbanites. But this damage can be alleviated by a carbon tax, by toll roads and by charging for parking. 

• It is foolish to try to stop the spread of suburbs. Green belts [urban boundary policies], the most effective method for doing this, push up property prices and encourage long-distance commuting.

• A wiser policy would be to plan for huge expansion. Acquire strips of land for roads and railways, and chunks for parks, before the city sprawls into them. This is not the dirigisme* of the new-town planner—that confident soul who believes he knows where people will want to live and work, and how they will get from one to the other. It is the realism needed to manage the inevitable.

(*) Dirigisme is an approach to economic development emphasizing the positive role of governmental intervention.

America's Infrastructure: Roads are Crumbling, Congress is Fiddling

America's transportation infrastructure, once an engine of mobility and productivity, has fallen into such disrepair that it's become an economic albatross.
From the article Shoddy U.S. roads and bridges take a toll on the economy in LA Times.

A comprehensive summary with startling video by 60 Minutes is titled Falling apart: America's neglected infrastructure where Steve Kroft reports on why roads, bridges, airports and rail are outdated and need to be fixed.

All along the American Society of Civil Engineers has been providing biannual assessments of American infrastructure with overall grades typically ranging between D- and D+. Here's is ASCE's 2013 report card for the American infrastructure.

Ironically, Congress and States "cannot find" monies to fix and improve what we have, but they do find (pork barrel) billions for boondoggles such as the California High Speed Rail and the Honolulu Snail Rail.

Much like Nero, the roads are crumbling while Congress is fiddling (and misappropriating.)

AIKEA FOR HONOLULU No. 37 – 2014 Election Commentary

I hardly ever give election advice.  You, my readers, mostly independent and almost evenly split Democrat and Republican have your opinions.  So I just offer some brief comments.

For governor my choice is between Duke Aiona and David Ige.  Duke was a judge and he’s trustworthy. He’s pro small business of which Hawaii has plenty. David is an engineer with a keen knowledge of the state budget.  He has a good working relation with Hawaii’s one-sided Legislature. Both have a grasp of Hawaii’s problems and what a governor can do about them.  I think Hawaii will do OK with either of them. 

Both Duke and David appear to be calm and collected enough to weather a major storm. It’s almost certain that the next economic recession will occur in the coming four years and it won’t be mild. Hawaii’s fragile economy will be clobbered by pension and EUTF liabilities, by Obamacare cost increases and by military cuts; and by the constant parasitic impacts of rail’s construction and tax.

My advice to the next Governor: Take the time to focus on transportation and energy.  The renewable mandates make Hawaii more unaffordable and the mothballed interisland cable is yet another boondoggle; it costs more than the funds needed to mitigate Oahu’s dependency on oil! Rail won’t do anything for traffic congestion, not upon opening (when?) not ever.  Do get serious about tackling the mounting traffic congestion. Upgrade the Honolulu Airport, now ranked 3^rd worst in the nation: Fully enclose and air condition all terminals, expand and improve the passport control area, and electrify the Wiki-Wiki asap. Promise to work on these and you’ll get my vote!

I definitely know who to vote for Congress.  Both Charles Djou and Mark Takai are smart, decent and knowledgeable candidates. I think Charles has better answers to important issues for Hawaii. The important question is this: What’s the right choice for Hawaii in the U.S. Congress? Answer: A Republican. Luckily, we have a highly competent moderate Republican candidate.

Hawaii’s congressional seniority has dropped from stellar to minimal.  In a Republican controlled Senate and House, sending four Democrats is stupid, plain and simple. We’ve already been pushed to the back burner; next we’ll be permanently delegated to the pantry.  Charles has congressional seniority and will be positioned in the right side of the aisle. It’s a strategic move to Hawaii’s advantage.

I wish that we finally elect some (centrist) energetic people who will own the mess of state and national debt which jeopardizes the long-term well-being of our state:

Five states with Highest Liability per Taxpayer. Hawaii is in the top-5, of course.

Government Debt per Person. The U.S. has a larger debt per capita than Greece!

The New York Times on Los Angeles' Infrastructure Woes. And an astute commentator wrote: “Can't repair the pipes; can't repair the sidewalks; can't repair the roads. But come hell or high water (pun intended) LA is going to find many tens of $billions for toy trains. Lala Land is no misnomer.”  Honolulu does the same. Is it then Honolala Land?

Aloha!
Panos

Highway Funding: Do Roads Pay for Themselves? No Because of "Theft"

Here is a brief analysis by Jack Mallinckrodt,  PhD in Electrical Engineering, Stanford University who made U.S. transportation planning his retirement hobby and has developed a series of well thought out articles at his website www.urbantransport.org:

"
The current intense search for additional sources of highway user revenue is grossly misdirected.

Based on FHWA “Highway Statistics” data for 2004 (typical), “highway user fees”, defined as all tax payments by highway users paid as a “necessary condition of their use of the highway system”, are already yielding revenues of $245 billion/yr (2004).  That’s enough to easily pay the full current annual costs of right-of-way, planning, building, maintaining,  and operating, and financing  the entire U.S. highway system, with a surplus (in business called  a “profit”) of $98 billion/yr.

 The fact that they don’t do so is due entirely to:

1. An arbitrary (not rational) redefinition of “Highway User Fees” hs that counts only about half of the ACTUAL highway user fees paid, and
2. State and federal politicized congressional misappropriation of those  surplus revenues, (“Diversions) to earmarked political favorites (street cars, bullet trains etc.) that provide little or no congestion reduction capacity at 90 or more times the net the cost per passenger-mile.

As someone might have said: “We don’t have a revenue problem, we have a revenue distribution problem.”. The revenue distribution process is a leaky sieve. The revered “Highway Trust Fund” initiated long ago as a solution to highway funding, with its latter day revisions has become instead, part of the problem.

No conceivable additional revenue collection mechanism, not increased fuel taxes, not tolling, nor mileage charge system, will resolve this funding gap until we fix the real highway fund leakage problem.  Our first priority must be to fix the highway user fee receipt distribution process. Otherwise we will simply be spinning our wheels faster. There is much more to this story, derived and explained in “Highway User Fee Surplus.”
"

CitiBike? No, SillyBike

• "The CitiBike program aimed at putting 10,000 bikes in 600 locations around New York City for commuters to share in the name of environmentalism, health and being hip."
• "CitiBike has put out 6,000 bikes at 325 locations at a cost of $6,833 per bike."
• "For a $95 annual fee bike-share members in Manhattan get all-you-can-use access to the silly looking CitiBike in 45 minute increments."
• For $200 one can find a good used bike from an online list, pay $200... and keep it!
• Worse yet: "In recent months, the program’s operators approached the administrations of Mr. Bloomberg and his successor, Mayor Bill de Blasio, about raising the cost of an annual membership, proposing rates up to $140"

Sample Sources:
Another Liberal Amenity for the Urban Upper Class Courtesy Taxpayers

Citi Bike System Successful, but Wobbly From the Start

Bike Share’s Rough Ride

AIKEA FOR HONOLULU No. 36 – Offshore Nuclear Power Plants Can Be Effective. Well, I Said So Four Years Ago!

The Economist: Researchers find advantages in floating nuclear power stations. You may recall that I proposed this as mayor candidate in 2010: Nuclear Power in Oahu's Future?  I know that my proposal went nowhere, but it feels great to be four years ahead of MIT. Furthermore, my idea is more economical than theirs. There is no need to construct floating platforms.  The Navy has many large decommissioned ships that float just fine and can be refurbished at a lower cost.

Before Honolulu hits the energy wall and desperation sets in, problems with potable water may arise due to drought, sea level rise or other reasons. So another billion dollar project may be needed for Desalination, as I explain in this article based on a large desalination plant currently under construction in San Diego.

The impact of executive priorities is clear if one compares the economic trajectories of a few countries say since 1990: Greece vs. Israel, Russia vs. China, Argentina vs. Brazil, and France vs. Germany to name a few. All of them faced a number of local and regional adversities but each pair has a clear economic winner now. Priorities and selection of wise transportation, infrastructure, energy and investment options made most of the difference.

Here are two examples of infrastructure where Hawaii made major wrong choices and placed itself in the loser column.

Renewables. They are expensive and their intermittency is highly problematic.  They depend on heavy subsidies.  To deal with intermittency HECO plans to invest heavily on … batteries. (Our politicians needed wind mills with giant labels: Batteries Not Included.) See Hawaii Wants 200MW of Energy Storage for Solar, Wind Grid Challenges. This is purely throwing good money after bad.

Rail. Simply put, rail is way too much buck for the bang. For the five billion dollars of Honolulu heavy rail we could have spent:

• One billion dollars on LNG conversion and a modest floating nuclear power plant to reduce Oahu’s dependence on oil from over 75% to 25% or less, instead of blowing tens of millions in the wind.
• Two billion dollars on HOT lanes and other mitigations to truly reduce traffic congestion.
• One billion dollars to redevelop ex-Navy lands and buildings at Kalaeloa to preserve the rich history of the site and relieve Oahu’s pressing homeless and low income housing problems.
• And one billion on desalination to anticipate water shortage problems.

Join me at the 38th Annual SBH Business Conference, Tuesday, May 13, 2014, 8:00 AM to 2:00 PM, Hibiscus Ballroom, Ala Moana Hotel. Luncheon keynote speaker is entrepreneur, author, coach and motivator, Patrick Snow, who will speak on “Proven Principles for Prosperity.”

The business  program features Mike McCartney (Hawaii Tourism Authority), Tom Yamachika (Tax Foundation), Bob Sigall (Author and Educator), Mark Storfer (Hilo Hattie), Naomi Hazelton-Giambrone (Element Media), Dale Evans (Charley's Taxi), and Peter Kay (Your Computer Minute). Contact: Sam Slom (349-5438) or SBH (396-1724). Don’t miss it!

Aloha!

Panos


Panos D. Prevedouros, PhD
Professor of Civil Engineering
Member, SBH Board of Directors