The Desperate Statements for a Failed Rail Project

Honolulu's sewers ate Mayor Hannemann's rail. See

Sewer settlement will cost Honolulu $4.7 billion over 25 years

Recall that in 2008 when we voted for rail and 50.6% said yes, the cost of the rail was $4.6 Billion. Now sewers alone are costing us $4.5 Billion.

Now compare items (1) and (2) below to get a sense of the mayor's desperation.

(1) MUFI HANNEMANN

(Wed., July 14, 2010)—Mayor Mufi Hannemann today said he is very pleased that Congressman Jim Oberstar, chairman of the U.S. House Committee on Transportation and Infrastructure, yesterday publicly referred to Honolulu’s rail project “the premier transit project in the entire country.”

(2) ACTUAL FEDERAL TRANSIT ADMINISTRATION ASSESSMENT

We are listed in Preliminary Engineering for 2011

No money for Honolulu this year

Read Page 139 BARELY passable overall MEDIUM rating.

Capital Costs gets a Low rating

Operating Costs etc. gets a Medium-Low rating

Capital Cost Estimates, Planning Assumptions, and Financial Capacity: Low

· Assumptions regarding growth in GET revenues and Section 5309 bus discretionary funds are

optimistic compared to historical experience. Financing costs appear to be understated.

· The capital cost estimate is considered reasonable.

· The financial plan show the City has little ability to address funding shortfalls or cost increases.

The GET surcharge revenues that will be applied to project-related debt service provide very slim Operating Cost Estimates, Planning Assumptions, and Financial Capacity: Medium-Low

· Assumptions regarding state operating subsidies and growth in rail unit operating costs and bus and paratransit operating costs are optimistic compared to historical experience.

· The operating cash flow assumes a balanced budget, with no accrual of an operating surplus or reserve.

Abandoned, Unfinished, Elevated Rail ... For the Children

When all arguments in favor of a six billion dollar elevated rail boondoggle on Oahu prove to be myths, then proponents say, "we need rail for the sake of our children."

Unfortunately, they fail to realize that the six billion rail is heavily mortgaged and payments will be heavy and permanent "for the children."

Here is how an abandoned, unfinished, elevated rail can be turned into an asset for the children.



This story has two lessons:
(1) Elevated rail can be stopped and abandoned long after construction has started.
(2) A playground is a far better and far more affordable quality-of-life addition than ugly elevated rail.

America's Energy Policy...

... managed by politicians.

A brilliant 7-minute summary by Jon Stewart.

http://www.thedailyshow.com/watch/wed-june-16-2010/an-energy-independent-future

Politicians anyone?

Why Cities Are Broke or, There is Something Tragic About a Train...

Nick Gillespie is editor in chief of Reason.tv and Reason.com. He asks... "Why cities are broke or, there is something tragic about a train or a light rail system or a streetcar boondoggle that just makes people (well, pols and their civilian enablers) wet their pants over the prospect of tossing 19th-century technology and 21st century debt obligations at cities and states and countries that are already dead broke." It's a great brief that you can read HERE.

New Rail Systems – Obama Administration Position is Loud and Clear, but Hawaii Politicians Too ______ to Hear

Published in Hawaii Reporter: New Rail Systems – Obama Administration Position is Loud and Clear, but Hawaii Politicians Too ______ to Hear

Honolulu needs rail transit to “reduce our carbon footprint, save energy and get us off the maddening addiction to cars” NOT!

Railigious Argument: Honolulu needs rail transit to “reduce our carbon footprint, save energy and get us off the maddening addiction to cars.” And, “the environmental community in Honolulu is strongly behind rail.”

AntiPlanner 1: My former colleagues in the environmental movement have become so innumerate that they would support a turkey like the Honolulu elevated rail plan. The final environmental impact statement for that project is now available. Let’s see what it says about saving energy, carbon, and driving.

... Table 4-21 of the FEIS says the project will save 144,540 million BTUs per year. Page 4-206 says project construction will produce 7.48 trillion BTUs. That means it will take 52 years of savings to pay back the energy cost. Long before 52 years are up, huge energy investments will be needed to replace rail cars, worn out track, and other infrastructure.

AntiPlanner 2: The [rail] bootleggers, of course, are the crony capitalists who will make tens or hundreds of millions in profits building this unsightly monstrosity. I hope in the future more environmentalists will open their eyes and support things that are truly good for the environment, not just feel-good projects that cost a lot of money.

Read it all here: http://ti.org/antiplanner/?p=3350

Honolulu's Sewage Treatment -- A Very Costly Problem

I have held several "Talk Story with Panos" this year and I am astounded of how little people know about our sewers. Of course sewers is not a routine matter for a city's residents but nothing about Honolulu sewers is routine.

For starters, our sewer system is quite old, frail and undersized. As a result we have sewage main failures, sewer line failures, and sewage plant failures. This is the good news. They are normal, but we have too many of them. The Sierra Club made a career out of successfully suing the city for these spills. These spills are terrible for our coastal environment which is enjoyed by residents and tourists alike.

Yet our old sewers issue is still the good news because the City has this problem under partial control. The bad news is that Honolulu is the only metropolitan area of its size that does not have secondary sewage treatment. We basically filter the solids and discharge all the rest of the sewage 1.5 miles out in the ocean. Just like the sewage from Waikiki was discharged into the Ala Wai.

The difference is that we discharge almost 10 times the quantity of the Waikiki sewage every day! EPA did not agree with Honolulu's practice. We lost the suit and the appeal against the EPA. What does this mean? A $1.2 Billion liability for the city is a reality. (Yet another reason for Mayor Hannemann to get of the mayor's train.) See this 2009 report in the Star Bulletin: http://www.starbulletin.com/news/20090107_EPA_ruling_could_cost_city_1B.html#fullstory

Now Andrew Pereira of KHON News reports that the City has settled with the EPA.(http://www.khon2.com/news/local/story/City-close-to-settling-wastewater-lawsuit/DTER-Iz07EK6I-wNRa_ShQ.cspx) I am sure that the Hannemann administration is working hard to spin this in a pleasant way. But there is no doubt that Senator Inouye was correct in 2008 when he said that this $1.2 Billion liability "can break the back of the city."

How so? If EPA gives us till 2020 to come into compliance, then that's only 10 years to build a $1.2 Billion secondary treatment infrastructure. So the cost with interest comes to roughly $150 million per year. That's about the same cost of TheBus to operate for one year. So, for example, if we have no other funds, then TheBus has to shut down for 10 years in order to afford this commitment.

This analogy frames the cost of a $1.2 Billion project for Oahu. Rail is five times that. I'll leave it to the reader to frame that cost for Oahu.

The Sneaky Business of Transit Oriented Development -- Part 2: TOD Mean More Taxes, and Less Appeal to the Citizen

Honolulu Council Member Donovan Dela Cruz’s TOD angle about rail is a tired and by U.S. conditions largely false argument. First he needs to be reminded of Tom Berg’s excellent 2009 article in the Honolulu Star Bulletin “Fruitless in Fruitvale”:

See http://archives.starbulletin.com/2007/12/09/editorial/commentary4.html.

Ironically, the city's monthly propaganda on rail, paid by Honolulu taxpayers, May 2010 issue, pictures Oakland's Fruitvale Village TOD as a success. If success is noise and abandonment, then it is a success. This video proves it.

Many TOD as "automobile hate zones," their mobility is abysmally low and no small or large business can survive there unless it has its own (costly) parking.

Then there are these three fundamental points for the City Administration's and Dela Cruz’s enlightenment.

• TOD is Taxes Offered to Developers in multiple ways, (1) Upfront incentives which means taxes handed out to them as incentives, and (2) Reduced or waived property taxes for a number of years. Our city is in bad fiscal shape and in bad repair. Yet the typical politician proposes more taxes to benefit special interests but, as politicians do, they window dress taxes as a benefit for the "little guy."

• In January, 2009, The Urban Land Institute’s local chapter (ULI-Hawaii) commissioned a survey of housing attitudes among the public. The phone survey was of 600 Oahu residents. They are huge proponents of transit and smart growth, yet, among the conclusions is this: “there is relatively much less support for the smart growth idea of higher-density use of existing urban areas – perhaps in part because people here generally still would rather live in suburban/rural settings themselves.

• Portland, Oregon is the “poster child” of Light Rail advocacy and TODs. Research by Bruce Podobnik of the Department of Sociology at the Lewis and Clark College in Portland, Oregon dated July 15, 2009 concludes as follows:

“This study examines the extent to which specific social and environmental objectives have been achieved in the new urbanist community of Orenco Station (Portland, Oregon). House-level surveys were conducted in Orenco Station, as well as a traditional suburb and two long established urban neighborhoods.

“The analysis also reveals a higher level of walking, and an increase in the occasional use of mass transit, in the new urbanist community. However, the majority of residents in all four neighborhoods (including the new urbanist neighborhood) rely on single occupancy vehicles for their regular commute.”

So when it comes to rail-based Land Use for TODs and Smart Growth, the argument that these work is all political hot air. Buses and roadways can do much much better at a fraction of the cost to the public.

A great example of this is the total remake on Kapiolani Boulevard between McMully and South Street with the Convention Center, the doubling of Ala Moana Center, the Nauru Towers complex, multiple other residential towers, the large, elegant dealerships, etc.

What's the Kapiolani Boulevard lesson? Huge investment for development and redevelopment and much increased densities took place in the absence of rail. However, if Mayor Fasi’s rail was built along Kapiolani Boulevard in the early 1990s, then rail proponents would have credited all this billion dollar investment to rail.