OFFICE OF THE MAYOR Mufi Hannemann, Mayor Kirk W. Caldwell, Managing Director • Trudi S. Saito, Deputy Managing Director TRANSPORTATION The 2009 fiscal year was chock-full of milestones for the City and County of Honolulu’s rail transit project. Charter Amendment Honolulu’s mass transit project passed a major milestone in November 2008 when Oahu voters solidly endorsed a City Charter question authorizing the City to establish a steel-wheel-on-steel-rail transit system by a 53 percent to 47 percent margin. On the heels of that approval, the City released the draft environmental impact statement for public comment in November and followed that in February with a request for proposals for the first segment of the system. The DEIS examined the environmental, economic, and community impacts and benefits of four future alternatives between Kapolei and the University of Hawaii at Manoa: three potential routes for a rail transit line from Kapolei to Ala Moana Center were analyzed in comparison to the no-build alternative. The City then issued a request for proposals in February for the construction of the first segment of the elevated guideway, from East Kapolei to Pearl Highlands, approximately 6.5 miles. The RFP is for an estimated $550 million to $600 million design-build contract that includes track installation and surface restoration in addition to the guideway viaduct. Stations along the guideway are to be constructed in future contracts. Transit-Oriented Development In March, the mayor approved Bill 10 (2008), which defines the City’s approach to transit-oriented development (TOD) around sta- tions for the planned rail transit system. The measure creates the framework for neighborhood TOD plans to be adopted by City Council resolution. The plans will focus on creating economically vibrant communities that are healthier and more pedestrian-friendly. These plans will become the foundation for specific zoning regulations and financial incentives. Zoning regulations will address parking standards, new density provisions, open space, and affordable housing. Financial incentives could include public-private partnerships, real property tax credits, and infrastructure financing. The Department of Planning and Permitting held a series of TOD public meetings in Waipahu to stimulate discussion on plans in that community, and was making similar plans for Kapolei. Transit Stations Another opportunity for public input came in a number of workshops to educate communities from Kapolei to Waipahu about rail stations to be built along the transit route and seek public input on the appearance of the seven stations. The areas of the station to be discussed were the “touch down” sections where the elevated portions of the stations meet the ground level. Some of the categories included color, landscaping, entry way design, exterior and interior wall finishes, seating areas, and plaques and monu- ments for the station. More than a dozen local architecture firms are working on rail stations, and a design guidebook has been developed by Dan Chun, a noted local architect and past president of the Honolulu chapter of the American Institute of Architects. Transit Symposium Residents heard from rail and transit experts from the United States, Canada, and the United Kingdom at the third Rail Transit Symposium in June—and the experts’ testimony validated Honolulu’s plans and echoed its experiences with its rail project. Nearly 500 people attended the all-day event at the Neal Blaisdell Exhibition Hall. Speakers at this year’s event included Bill Millar of the American Public Transportation Association; Dan Doyle, executive vice president of the 2010 Vancouver Olympic Games; Joni Earl, CEO of Seattle’s Sound Transit system; Ian Mulcahey of the architectural firm Gensler; Chatham Olive, environmentalist and sustainability advocate; Richard Simonetta, CEO of the Valley Metro Rail system in Phoenix; and Wellington Webb, former mayor of Denver. Doyle talked about the advantages of an elevated rail system in Vancouver similar to Honolulu’s planned system, while Simonetta and Earl discussed how the new train systems and extensions in their respective cities have created jobs and helped their local economies. Groundbreaking for the first segment construction was slated for the end of the 2009 calendar year. Service for the first leg of the route will take place in 2013. TheBoat Ends The mayor announced in May that the City would end TheBoat demonstration project after June 2009, but did not rule out a return to service. TheBoat was a passenger ferry service operated by the City that ran between Kalaeloa Harbor and Aloha Tower during peak workday traffic periods. Although intraisland passenger ferry service had been tested before, TheBoat was the first to seam- lessly integrate ferry service with dedicated shuttle service from TheBus. Mayor Hannemann said, “The City gained invaluable hands-on experience with ferry operations for the next go-around. We linked TheBoat and TheBus to demonstrate the effectiveness of a multimodal transportation system and offered a welcome commut- ing alternative for West Oahu residents tired of spending hours in rush-hour traffic. I remain a staunch supporter of multimodal MAY-171 transportation, which includes the bus, the ferry, and rail transit that breaks ground later in 2009. We have not ruled out a return of TheBoat in the future.” TheBoat carried about 110,000 passengers since its inception on September 2007, averaging about 270 riders per day. Despite an early vessel reliability problem, TheBoat enjoyed a 95-percent on-time and in-service performance. Community response was positive and those who rode TheBoat reported in surveys that they liked the service. Despite its popularity among commuters, ridership on TheBoat hovered around 30 percent of capacity. Increasing ridership hinged on obtaining a western terminus located in Ewa instead of at Kalaeloa Harbor. An Ewa terminus would have provided a trip of 30 minutes to downtown Honolulu, half that of the Kalaeloa Harbor journey. Additionally, an Ewa terminus would have opened TheBoat to a larger rider base. CABINET Mayor Hannemann made new appointments to his cabinet to coincide with his reelection to office: • Kirk Caldwell, managing director; • Jeoffrey Cudiamat, director and chief engineer of the Department of Facility Maintenance; • Rix Maurer III, director of the Department of Budget and Fiscal Services; • Craig Nishimura, director of the Department of Design and Construction; • David Tanoue, director of the Department of Planning and Permitting; • Tim Steinberger, director of the Department of Environmental Services; • Manny Lanuevo, deputy director of the Department of Environmental Services; • Collins Lam, deputy director of the Department of Design and Construction; • Sandra Sagisi, deputy director of the Department of Customer Services; • Robert Sumitomo, deputy director of the Department of Planning and Permitting; and • Sharon Ann Thom, deputy director of the Department of Transportation Services. In June, Dana Takahara-Dias, the director of the Department of Customer Services, was named the new head coach for the University of Hawaii Rainbow Wahine basketball team following a nationwide search. Takahara-Dias left the administration in mid- July and was replaced by Gail Haraguchi, who had been serving as deputy director of the Department of Parks and Recreation. Haraguchi’s position was filled by Richard Haru, who was an administrator at Castle High School and a member of the Parks and Recreation Commission. BUDGET Mayor Hannemann signed into law the administration’s Fiscal Year 2009 operating and capital budgets, which strongly emphasize public health and safety, fiscal discipline, and saving money for long-term obligations. “As in previous years, the Fiscal Year 2009 budgets place a premium on financial prudence and accountability, with a steadfast commitment to basic City services like public safety, sewers and solid waste, parks and public facilities, and transportation,” said Hannemann at the time, echoing the theme of his previous budgets. “These budgets provide a combination of new proposals, such as beefing up security in our parks and beginning planning for the rail transit system, with the tried-and-true priorities of catching up on our backlog of sewer and road work and properly maintaining public facilities.” For FY 09, the executive operating budget is $1.81 billion and the capital improvement budget is $954.8 million. The budgets include $340 million for sewer and trash disposal programs and $77 million for rehabilitation of major roads to battle the long-neglected and deteriorating roadways on Oahu. The Hannemann administration did not request any increases in tax rates or fees to support these budgets, which the City Council approved on June 4. Mindful of recent increases in real property values, the administration also budgeted for a $100 real property tax credit for qualifying homeowners. The operating budget is impacted by non-controllable costs, such as debt service and pension and health requirements, as well as arbitrated pay raises. Excluding these factors, the FY 09 operating budget for executive agency operations represents a 4.8 percent increase over the previous fiscal year. The budget appropriates $91.9 million for other post-employment benefits, specifically the City’s long-term obligations to fund health insurance for retirees. “‘Other post-employment benefits’ is a term that may not be familiar to the general public, but which