Thursday, July 20, 2017

CITYLAB: Honolulu's Rapid Transit Crisis

National publication CITYLAB which used to be Atlantic Cities covered the Honolulu rail boondoggle in Honolulu's Rapid Transit Crisis.


Despite a famously laid-back culture, Honolulu’s traffic is about as bad as it gets. In a bid to unsnarl its highways a bit in 2011, the city embarked on a $5.2 billion Honolulu Rail Transit Project. At the time, the planned 20-mile elevated electric train line was expected to ease traffic congestion on Hawaii’s most densely populated island by 18 percent, with the first trips planned for 2017.

Fast forward six years and the still-sputtering project looks very different. The city now estimates that the rail will cost $10 billion—almost five times the city’s annual budget and twice the original project cost estimate—while civil engineering specialists forecast a price tag closer to $13 billion.

Per capita, the Honolulu rail could become the most expensive transit project in U.S. history, according to the conservative public policy think tank Grassroot Institute of Hawaii. What’s more, the funding source of at least $3 billion in projected costs remains unseen. Meanwhile, the city’s traffic problems have worsened and state lawmakers are left divided and scrambling to craft a plan to pay for the cash-strapped project. All told, 75 percent of the contracts needed to bring the project to completion have been awarded, and the first planned trips along the full track are no longer expected to run before 2025.

So when is it too late to quit a major public-infrastructure project gone awry?

“The project is objectively terrible,” says Panos D. Prevedouros, a professor of civil engineering at the University of Hawaii, whose two failed campaigns for mayor embraced an anti-rail platform. “It reminds me of some proclamations that Trump makes with the beautiful wall he wants to build. Well, in this case, it’s the beautiful train. But it is not beautiful. It’s useless for our population.”

Read the Full Article at CITYLAB.

Sunday, July 16, 2017

Professor Randall Roth: HART Blames Massive Cost Overruns on Lawsuits to Stop Rail. It’s a Lie.

There were two lawsuits. The one in federal court briefly affected the City’s ability to buy land in the downtown segment, but had no impact on rail construction or construction bidding.

The other lawsuit was brought in state court by Paulette Kaleikini. She sued because the City had started construction without first completing an archaeological study, as is required by law. A unanimous state Supreme Court ordered construction stopped until the City completed the study, which took 13 months. Blaming Ms. Kaleikini is comparable to blaming an abuse victim for seeking legal protection. The City and its contractors simply ignored the law (and the law's purpose) in their rush to get construction beyond a point of no return. The dollar impact of the state lawsuit was slightly more than $39 million, according to HART.

While the federal lawsuit did not stop or even slow down rail construction, it did provide access to FTA’s internal email that referred to the City’s “lousy practices of public manipulation,” use of “inaccurate statements,” culture of “never enough time to do it right, but lots of time to do it over,” the observation that the City had put itself in a “pickle” by setting unrealistic start dates for construction, and concern about the City’s “casual treatment of burials.”

The federal lawsuit took longer than it needed to take because the City’s lawyers used every trick in the book to drag it out. They wanted our legal costs to soar, which they did. Raising the money simply to see that lawsuit to a conclusion was like crawling over a constantly expanding field of broken glass. The City spent more than $3 million on lawyers and expert witnesses, and the delay increased costs by another $3.3 million.


According to HART, the lawsuit delay costs come to about $46 million, see figure above, which is only 0.46% of the current cost of HART rail. Rail's final cost before it started construction was proclaimed to be $5.17 Billion, by mayor Carlisle. Rail's current cost was stated at $10 Billion by mayor Caldwell. HART current cost overrun is 93.4%, of which 1% is due to the two lawsuits.