Federal agency reneges
on funds

The FTA withholds $20M for
rapid transit because work began
before it was approved

A federal agency has put the brakes on about $20 million in funding that the city sought to complete the first phase of the Bus Rapid Transit project.

The Federal Transit Administration said in a letter earlier this week that the city's Bus Rapid Transit project -- with frequent service and limited stops between Iwilei and Waikiki -- was no longer eligible for the funding because the city started the project before the federal approval process was completed.

"Unfortunately, the (city's) actions to begin incurring costs in the final design and construction of the (initial operating segment) absent FTA approvals precludes further FTA participation," wrote Leslie Rogers, FTA regional administrator.

But city Managing Director Ben Lee said the decision is not a setback because Hawaii U.S. Sen. Daniel Inouye has moved to re-appropriate the money.

"We're not losing any of the money. The senior senator has been working ... to make sure that the money is secure, and it's up to the future mayor to decide whether to expand the BRT program or do other transportation improvements," Lee said.

The money would be used for any bus-related projects such as buying buses, building transit centers, widening roads and other transportation improvements but not specifically for Bus Rapid Transit, Lee said. But because the Bus Rapid Transit would not be in the title of the appropriation, the same restriction that derailed the initial funding would not apply, Lee said.

The $20 million rejected by the federal government would have been used to widen Ala Moana Boulevard and Kalia Road and other work.

Construction has already begun with $31 million in improvements under way along Kuhio Avenue in Waikiki. Lee said those improvements should be completed by December.

The City Council voted 5-4 in March on a resolution urging the administration not to proceed with construction on the in-town Bus Rapid Transit until federal funds were received. But Mayor Jeremy Harris said the city was going to ignore the resolution and continue with construction.

Council Budget Chairwoman Ann Kobayashi, who voted for the resolution, said: "This is what I have been asking. I've been saying, 'Where's the federal money, why haven't you applied?' And they didn't apply until this year, and the project started last year. I think it's very irresponsible to play with taxpayers' money this way."

Kobayashi and Councilman Charles Djou said the project should be stopped. "After the city initial appropriation is done, we shouldn't be spending any more money on the BRT," Djou said.